EXAMINATION UNDER OATH OF ARICH SYPRASERT

EXAMINATION UNDER OATH OF ARICH SYPRASERT Claim No. 1014746149-1 NOVEMBER 12, 2009 -ooo- -ooo- Location: 1421 West Main Street Visalia, CA 93291 Reported by: MARTHA S. GUERRA, Certificate No. 6398 1

I N D E X EXAMINATION PAGE LINE By Mr. Knapp... 8 7 -ooo- INFORMATION REQUESTED Tavorn's last name... 71 11 Fred's last name... 86 16 Air/Heating business... 88 4 White male customer... 107 21 2

EXHIBIT BOOK Exhibit One - Letter dated October 22, 2009 to Mr. Arich Syprasert, Ms. Boualiene Syprasert; from Knapp & Spurlock (10 pages)... 17 20 Exhibit Two - Document titled "Rental Benefit" (1 page)... 17 25 Exhibit Three - Document titled "Spending for 1933 W. Sunnyside" (1 page)... 45 15 Exhibit Four - Receipt from Stephen O. Sparshott (1 page)... 46 11 Exhibit Five - Statement from Dunn Engineering (1 page)... 47 13 Exhibit Six - Document titled "Payment History - B090345" (1 page)... 48 12 Exhibit Seven - Ferguson Enterprises, Inc. invoices (6 pages)... 48 22 Exhibit Eight - Sales Receipts from JB's Cement (3 pages)... 49 20 Exhibit Nine - Weyrick Companies, Inc. Invoice Detail (1 page)... 50 16 3

1 Exhibit Ten - Documents from Tulare 2 County Environmental Health (3 3 pages)... 51 21 4 Exhibit 11 - Documents from C and C 5 Construction (5 pages)... 53 7 6 Exhibit 12 - Documents from ABC Comp 7 (3 pages)... 54 15 8 Exhibit 13 - Lowe's Worklist (1 9 page)... 55 13 10 Exhibit 14 - Letter from Visalia 11 Lumber Co (1 page)... 56 18 12 Exhibit 15 - Handwritten document 13 from The Home Depot (1 page)... 57 18 14 Exhibit 16 - Chicago Title Company, 15 "Alcoholic Beverage License 16 Transfer Escrow Instructions" 17 (31 pages)... 74 2 18 Exhibit 17 - Chicago Title Company, 19 "Sale Escrow Instructions" (7 20 pages)... 74 2 21 Exhibit 18 - General Closing 22 Instructions (35 pages)... 74 13 23 Exhibit 19 - Inspection Card (1 24 page)... 81 19 25 Exhibit 20 - Mid Valley Services 4

1 Inc. documents (142 pages)... 88 25 2 Exhibit 21 - Copy of keys (1 page)... 101 8 3 Exhibit 22 - Diagram (1 page)... 102 12 4 Exhibit 23 - Handwritten document 5 titled "Building 1933 W. 6 Sunnyside" (3 pages)... 123 25 7 Exhibit 24 - Fax to Steven Redd, 8 from Arich Syprasert; re 9 "Tools" (4 pages)... 127 25 10 Exhibit 25 - Verizon Wireless 11 document (9 pages)... 142 14 12 Exhibit 26 - Fax to Dan Gil, from 13 Arich Syprasert; re Proof of 14 Loss (3 pages)... 145 16 15 Exhibit 27 - Department of Alcoholic 16 Beverage Control bill (1 page)... 153 19 17 Exhibit 28 - Check stub from Mid 18 Valley Services, Inc. (1 page)... 154 11 19 Exhibit 27-A - Air Quality 20 Compliance Solutions 21 "Consulting Service Agreement" 22 (4 pages)... 155 3 23 Exhibit 28-A - "'Limited' Asbestos 24 Survey" (13 pages)... 155 9 25 Exhibit 29 - Document titled "T. 5

1 Brooks & Associates, Inc. IAQ 2 Project Information" (2 pages)... 155 19 3 Exhibit 30 - California Water 4 Service Company documents (3 5 pages)... 156 2 6 Exhibit 31 - Mid Valley Services, 7 Inc. bills (5 pages)... 156 10 8 Exhibit 32 - Grant Deed (2 pages)... 156 17 9 Exhibit 33 - Document entitled 10 "Policy Declarations" (66 pages 11 - double-sided)... 157 2 12 Exhibit 34 - Plans (13 blueprint 13 sized pages. One copy provided 14 to Mr. Knapp only; not attached 15 to transcript, per Mr. Knapp's 16 request.)... 163 14 17 -ooo- 18 19 20 21 22 23 24 25 6

1 A P P E A R A N C E S 2 KNAPP & SPURLOCK LLP BY: RICHARD O. KNAPP, ESQ. 3 395 2nd Street Laguna Beach, CA 92651 4 (949) 715-5580 5 FARMERS INSURANCE GROUP BY: NANCY KEECH-BROWN, 6 General Investigator 31858 Castaic Road, #313 7 Castaic, CA 91384 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (805) 587-6674 -ooo- 7

1 ARICH SYPRASERT, 2 called as a witness herein, being by 3 me first duly sworn, was examined and 4 testified as is hereinafter set forth. 5 -ooo- 6 11:02 A.M. VISALIA, CA 7 EXAMINATION BY MR. KNAPP 8 Q. Good morning. Could you please state your 9 full name for the record? 10 A. My name's Arich Syprasert. 11 Q. As you know, we're here today for your 12 Examination Under Oath pursuant to a claim with Truck 13 Insurance Exchange in relation to a fire loss at a 14 business with a reported date of loss of September 22, 15 2009, which the insurance company assigned claim number 16 1014746149. Do you understand that? 17 A. Yes, sir. 18 Q. The reporter who's sitting to your right has 19 placed you under oath, which obligates you to tell the 20 truth to the best of your ability and carries with it 21 the penalty of perjury. 22 A. Yes, sir. 23 Q. Do you have any questions about your 24 obligation to give truthful and accurate testimony 25 today? 8

1 A. I don't have nothing. 2 Q. Great. Because you're giving testimony under 3 oath, it's important you make sure you understand the 4 questions before responding. 5 A. Yes, sir. 6 Q. So if you feel a question is not clear or need 7 some further explanation, just tell me, I'll be glad to 8 either restate it or rephrase it. 9 A. Sure. 10 Q. Don't take offense. I ask everyone the same 11 question. 12 Are you aware of any conditions today, such as 13 being under the influence of drugs or alcohol, that 14 would not allow you to give truthful or accurate 15 testimony? 16 A. Nothing at all. Only drink water. 17 Q. Good. Water's good for you. 18 Also, you were notified that you could have an 19 attorney here if you wanted to, it had to be your own 20 choice and your own expense, and I see you're not 21 represented today. Do you want to proceed today? 22 A. No, I don't have anyone. 23 Q. Do you want to proceed without an attorney? 24 A. No. 25 Q. You don't want to proceed without an attorney? 9

1 A. Sorry, I don't understand. You want me -- 2 someone to help me? 3 Q. I'm glad you asked. We notified you you could 4 have an attorney here if you want to. 5 A. Yes, sir. 6 Q. And you don't have one. 7 A. No. 8 Q. So you want to go ahead? 9 A. Just go ahead. I don't have one. I'm sorry. 10 Q. That's okay. But if you feel you're not 11 understanding a question, please tell me so we can make 12 sure. 13 A. Uh-hmm. 14 Q. The reporter is taking down everything we say 15 word-for-word. 16 A. Right. 17 Q. It's going to be typed into a transcript form 18 and sent to you so you can review it, make sure it's 19 accurate to the best of your ability, and then you'll be 20 asked to sign the end of that transcript to affirm the 21 information is true and correct. 22 A. Sure. 23 Q. Then you'll be asked to return that signed 24 booklet to my office as a part of the investigation. 25 Okay? 10

1 A. Sure. 2 Q. When you're reviewing the booklet, if you feel 3 you need to, you can make changes to the testimony 4 before signing and returning it. However, your ability 5 to later change the testimony doesn't relieve you of the 6 oath you just took to tell the truth today. Okay? 7 A. Yes, sir. 8 Q. Any questions about the process? 9 A. No, I don't. 10 Q. Perfect. Want to start with a little 11 background information and then we'll talk about the 12 business location and whatever you can tell us about the 13 fire. 14 A. Sure. 15 Q. First of all, have you ever gone by any other 16 names than the one you gave at the beginning of the 17 proceeding? 18 A. No, sir. 19 Q. And what's your date of birth? 20 A. 5/15/57. 21 Q. And do you know your Social Security number? 22 A. Yes, sir. 472-96-6064. 23 Q. Have you used any different Social Security 24 numbers in the past? 25 A. No, I don't. 11

1 Q. And, to your knowledge, has anyone used yours? 2 A. No. 3 Q. Where do you currently live? 4 A. 12730 West Marlin, Marlin Avenue, Visalia, 5 California, 93291. 6 Q. How long have you lived there? 7 A. Oh, this one about approximately about five, 8 six year. 9 Q. And do you rent or own? 10 A. Own. 11 Q. And if we go back just for the last year, who 12 else would have lived with you at that address or used 13 the address with you? 14 A. Not anyone else. Only my family. 15 Q. Which family members? 16 A. My wife. 17 Q. And what's your wife's name? 18 A. Boualiene Syprasert. You want me to spell for 19 you? 20 Q. No, we've got the spelling. 21 How long have you been married? 22 A. Fifty-two year -- or 22. 1989. 23 Q. And who else besides your wife lives with you? 24 A. My son. 25 Q. What's his name? 12

1 A. Arec. Arec Arich Syprasert. 2 Q. Can you spell it? 3 A. A-r-e-t -- e-c. 4 Q. And how old is Arec? 5 A. I think, 21. 6 Q. Who else lives with you? 7 A. Andy, my son. 8 Q. Okay. How old is Andy? 9 A. Nineteen. 10 Q. Who else? 11 A. My son, Albert, 18. Lily, my daughter. 12 Q. How old is Lily? 13 A. She's 17. 14 Darly, my daughter, 16; and Diane, my 15 daughter, 15. Archris, my son. 16 Q. How would you spell that? 17 A. A-r-c-h-r-i-s. Archris. 18 Q. How old is he? 19 A. Fourteen. My daughter, Arichi, A-r-i-c-h-i. 20 Q. And how old? 21 A. Four. My son, Arich, Jr. Same my name, Jr. 22 Two year. No more. 23 Q. And are you currently employed? Or do you 24 have a source of income? 25 A. Yes. 13

1 Q. What do you do? 2 A. I was employed -- I do employed at store or 3 restaurant. 4 Q. You run a restaurant? 5 A. Yes. I run a restaurant and a grocery store. 6 Q. Okay. Anything besides the restaurant and the 7 grocery store? 8 A. No. Nothing. No. 9 Q. What's the name of the restaurant? 10 A. Sy Salathai. S-l-a-i-t-h, yes. 11 Q. Okay. And where's it located? 12 A. This last one is on 700 North Court. 13 Q. North -- 14 A. 700 North Court, C-o-u-r-t. Court. Visalia, 15 California, 93291. 16 Q. How long have you had that location? 17 A. We start 2000. 18 Q. And is it still operating? 19 A. We sold that. 20 Q. You sold it. When did you sell it? 21 A. We close escrow April something. April 22 something. 23 Q. Of this year? 24 A. This year, 2009. 25 Q. And why did you end up selling the business? 14

1 A. We sell it when we take the money go buy the 2 one that burned out, the new one. We need the money to 3 buy the new one. 4 Q. Okay. And when you sold Sy Salathai, were you 5 the sole owner? 6 A. Yes, sir. 7 Q. How much did you sell it for? 8 A. 50,000. 9 Q. And was that all money that you used for the 10 new business or starting it? 11 A. Yes, sir. 12 Q. Any other restaurants that you've had? 13 A. I have before that. 14 Q. Before Sy Salathai? 15 A. Before Sy Salathai, I had another one. 16 Q. Was it also a Thai restaurant? 17 A. Thai restaurant. 18 Q. Okay. And you also have a grocery store? 19 A. Yes, sir. 20 Q. What's the name? 21 A. Sy Combination. We open Sy Combination. The 22 address, 1410 West Houston Avenue. West Houston. 23 Q. Houston. 24 A. Avenue. Visalia, 93291. 93291. 25 Q. Uh-hmm. And when did you start that business? 15

1 A. 1992. 2 Q. Do you still have the business? 3 A. No. I sold. 4 Q. When did you sell it? 5 A. I think, 2000. 6 Q. About the same time that you started 7 Sy Salathai? 8 A. Yes, sir. 9 Q. Do you remember how much you sold that 10 business for? 11 A. I think, 65,000. Yeah. 12 Q. So since the year 2000, have you had any other 13 jobs or sources of income other than the Sy Salathai 14 restaurant? 15 A. Yes. 16 Q. What else? 17 A. Just from the rental. 18 Q. Rental. And how many rental properties do you 19 have? Just within the last year. 20 A. Just a minute, please. 21 Q. Okay, great. 22 A. Total, approximately 12. Twelve property. 23 Q. And you have a list of them, too? 24 A. Yes, sir. 25 Q. Would it be possible for us to make a 16

1 photocopy of the list? 2 A. Yes, sure. No problem. I can make copy. 3 MR. KNAPP: Why don't we go off record and 4 make a copy of it. 5 (Off the record discussion.) 6 MR. KNAPP: We're back on record. 7 Q. And we have a photocopy of your list. When we 8 talk about documents today, we're going to give them 9 exhibit numbers and attach photocopies to the transcript 10 you'll receive. 11 A. Yes, sir. 12 Q. Hopefully that will help you in your review 13 later on; plus, it will give us a good record of what 14 we're discussing. I'm going to start by marking as 15 Exhibit One my October 22, 2009 letter to you and your 16 wife to let you know about the need for the examination 17 and, starting on the third page, some documents and 18 things that were requested to be here. So that's 19 Exhibit One. 20 (Whereupon, the document 21 was marked as Examination 22 Exhibit One.) 23 MR. KNAPP: Now, the photocopy of your binder 24 for the rental properties, I'll mark as Exhibit Two. 25 (Whereupon, the document 17

1 was marked as Examination 2 Exhibit Two.) 3 MR. KNAPP: And can you look at that list and 4 confirm for me that those are all rental properties that 5 you own? 6 A. Yes, sir. 7 Q. And there are numbers or figures to the right 8 of the properties. What is the first number? Number 9 one, for instance, is $850. What does that stand for? 10 A. Rental per month. 11 Q. That's income you get from that property? 12 A. Yes, sir. 13 Q. Okay. And then after that there's a figure on 14 the first one, which is -- 15 A. Column for one year. I put year in it. This 16 stand for year, this stand for month, "MO," month, "Y," 17 year. I figure out. 18 Q. So that's how much you would receive over the 19 course of a year? 20 A. Yes, sir. 21 Q. Did you have all 12 of these properties for 22 all of 2009? 23 A. Yes, sir. 24 Q. Are any of them being offered for sale or 25 trade? 18

1 A. No, sir. Only that one. Approximately I put 2 one -- one building, divide by -- we have A, B, C. I 3 put a number. 109. 109 have A, C and B, three unit. 4 Q. Okay. So that's a triplex. 5 A. Triplex, yes, sir. 6 Q. Is that -- you're offering that triplex for 7 sale? 8 A. No, no sale. No. For rent. 9 Q. So none of them are being offered for sale? 10 A. No. 11 Q. Do all of the properties have mortgages? 12 A. Some of them. Some just mortgage, some no. 13 Some they pay up. 14 Q. Can you look at them and tell me which ones 15 you have a mortgage? Just by referring to its number? 16 A. Can I put "no" on here or just point it? 17 Q. Oh, yeah. 18 A. This one, 1410, no mortgage. 19 1400, no mortgage. 20 700, no mortgage. 21 Q. Why don't we identify the ones that do have a 22 mortgage. So does number three have a mortgage? 23 A. Yes. 24 Q. Does number four? 25 A. Yes. 19

1 Q. And number five through seven? 2 A. Yes. 3 Q. Number eight? Oop, that's all part of the 4 same thing? 5 A. Same thing. 6 Q. Number nine? 7 A. No. 8 Q. And number ten, does that have a mortgage? 9 A. Yes. 10 Q. Number 11? 11 A. Yes. 12 Q. And number 12? 13 A. Yes. 14 Q. So on the chart that you gave us that we 15 marked as Exhibit Two, we have what would be an annual 16 income figure. For the last year have all of these 17 properties had tenants? 18 A. Some of them. 19 Q. Do you know what the actual income is -- 20 A. Sorry. Sorry. I didn't understand. Sorry. 21 What do you mean? Explain it. 22 Q. What I'm trying to find out is on your list 23 you've got how much you would charge if there's a 24 tenant. Have they all been occupied in the last year? 25 A. Oh, yes. Yes. 20

1 Q. There's no vacancies in them? 2 A. Oh, no. 3 Q. And do you have any idea what your net profit 4 would be on the properties after paying, you know, 5 taxes, insurance, mortgages, things like that? 6 A. Usually I don't make too much money. Even. 7 Just keep the property only. I don't make money 8 probably in the month. 9 Q. So, really, the rental properties are a 10 break-even, but it's a good investment? 11 A. Yes, sir. 12 Q. Any other jobs or sources of income in the 13 last year? 14 A. Only from my self-employed. 15 Q. From -- 16 A. From my self-employed. Self-employed, only 17 the restaurant. 18 Q. Do you have any idea how much you earned from 19 the restaurant this year in 2009? 20 A. 2009. 2009. No, 2009 I sold already. 21 Q. Did you make any money from it this year 22 besides selling it? 23 A. No, I don't make nothing. Only just pay rent. 24 From April come up only. April and May until now. 25 Q. So you own the building that the restaurant's 21

1 in? 2 A. Before I own business. I own building only. 3 Q. You own the building only now? 4 A. Yes, sir. 5 Q. Which building is it? What's the -- oh, we 6 have the address on North Court. 7 A. Yeah. 700. And 700 and 1410 and 1400, all 8 this I own building. This is business there right now. 9 Q. So if the rental properties are break even, 10 have you had any income in 2009? Any source of income 11 or support? 12 A. No. 13 Q. And what have you been living off of for the 14 day-to-day expenses, things like that? 15 A. What only money I get from the rental. 16 Q. Do you have other savings or investments 17 besides the real estate? 18 A. I have before. All my money drop out to 19 the -- I have checking, CD, alls money -- I take all 20 money out, go drop to the place burned out. 21 Q. Oh, you invested that all in the business you 22 were trying to fix up? 23 A. Yes. That's the money I pay for material to 24 build up, to remodel it. I use that money for 25 remodeling. 22

1 Q. Were you and your wife having any financial 2 difficulties at the time of this fire, in September of 3 2009? 4 A. 2009. 2009. Since I build it, a little 5 problem now because my credit not too good. Because 6 some mortgage behind. 7 Q. So were you and your wife having any financial 8 difficulties at the time of this fire? 9 A. Oh, no. 10 Q. September 22, 2009? 11 A. No. 12 Q. And have you and your wife had any 13 bankruptcies, judgments against you, or liens? 14 A. Nothing at all. We don't have anything like 15 that. 16 Q. In the six months before this fire -- 17 A. Yes. 18 Q. -- have you and your wife fallen behind on any 19 regular financial obligations? Like rent, mortgages, 20 credit cards, loans, anything like that? 21 A. Yes. Yes. 22 Q. What have you fallen behind on? 23 A. Because we don't have money to pay them. 24 Q. Which things did you fall behind on? 25 A. Excuse me. Say again? 23

1 Q. Can you identify what you fell behind on? 2 A. We don't have money to pay them. Enough. 3 Q. Not why, but what. 4 A. What. 5 Q. What bills? 6 A. Property. Property rental. The property. On 7 some property we behind. 8 Q. Which properties did you fall behind on? You 9 could just identify them on number on Exhibit Two. 10 A. This behind. (Indicating.) 11 Q. Number three? 12 A. Three. 13 Q. How far behind did you fall on number three? 14 A. I think about four months or something. For 15 month or three months, like that. 16 Q. Do you remember what the monthly mortgage is? 17 A. I think this one about 800 maybe. 800 18 something. 19 Q. And did it go into foreclosure? 20 A. No. No. 21 Q. What's the status of that property or the 22 loan? 23 A. What, number three? 24 Q. Yes. 25 A. I don't know when you say "status." Please 24

1 say again? 2 Q. What's the status of the loan? Are you still 3 paying it? 4 A. Oh, I still pay. I still pay, yeah. I still 5 pay. I keep month by month. I pay this month, next 6 month I save money go pay another one. Keep like that. 7 Q. So property number three is still behind? 8 A. Yes. 9 Q. What other properties fell behind in the six 10 months before the fire? 11 A. Talk about this one behind. This one behind. 12 Q. What's that, number four also? 13 A. Yeah. 14 Q. What's the monthly mortgage on property number 15 four? 16 A. I believe 900 -- 989, something like that. 17 Q. How far behind did you fall on that? 18 A. I think it's about five months maybe. Yeah. 19 Q. Did that property go into foreclosure? 20 A. No. 21 Q. What other properties did you fall behind on? 22 A. On 3932. No. No. 3932, yes, fell behind one 23 month. 24 Q. So property number ten you fell behind. 25 A. Number ten, yes. 25

1 Q. Okay. Any other properties you fell behind 2 on? 3 A. 14 -- 12664 Avenue -- 12664 Avenue 320. 4 Q. So the property number 11 -- 5 A. Number 11, yes. 6 Q. The address should really be 12662? 7 A. No. I write wrong. Yeah, this is wrong. The 8 other address is wrong. The real address be 12664 9 Avenue 320. 10 Q. How far behind did you fall on that property? 11 A. I think this is four months. 12 Q. Four months. And did that ever fall into 13 foreclosure? 14 A. No. We just do a home modification right now. 15 Q. Has the modification been approved? 16 A. They have to wait. They not approve yet. 17 Q. Did they say the property was in foreclosure? 18 A. Yes, they say that, but not done yet. 19 Q. And you're trying to get that resolved? 20 A. Yes, sir. 21 Q. Any other properties that you fell behind on? 22 A. The last one, number 12. 23 Q. And what's the mortgage on that property? 24 A. Mortgage. They have two loan on this one. 25 One loan have been approve already. I pay them two 26

1 months already. The other, 311 down, they have two 2 loan. First loan and second loan. 3 Q. How much is the first? 4 A. First loan the payment 12 -- almost 1300. I 5 put 1300. 6 Q. And how much is the second mortgage? 7 A. Second payment, 317. Not behind this one. I 8 current. I pay them two months already. I've been pay 9 two months already. 10 Q. So for that property we're calling number 12 11 on 311 West Whitendale -- 12 A. Yeah. 13 Q. -- did you fall behind on it? 14 A. That's one I say have two loan. One loan, no. 15 One loan, still one behind. 16 Q. Which loan did you fall behind on? 17 A. 1,300, that one fall behind. 18 Q. That's the first. 19 A. Yeah, first loan. 20 Q. How far behind did you fall on that? 21 A. Approximately about four months. Yeah. They 22 do paperwork on home modification. 23 Q. Did that property go into foreclosure also? 24 A. Yes. They say that, but not yet. 25 Q. So it went to foreclosure but you're working 27

1 on the modification? 2 A. Yes, sir. 3 Q. Did any -- so that's all the properties that 4 you fell behind on? 5 A. Yes. 6 Q. Only two of the properties went into 7 foreclosure? 8 A. No, three. 9 Q. Which -- 10 A. One, two, three, four. 11 Q. The ones that I have that went into 12 foreclosure are property number 11, property number 12. 13 A. Uh-huh. 14 Q. Was there another one that fell into 15 foreclosure? 16 A. Oh, three, yeah. You're right. Three 17 property. 18 Q. What's the third one? 19 A. The number 3932. 20 Q. Okay. That's property number ten. 21 A. Uh-huh. Number ten. Oh, number ten is okay 22 because I put to call the pre trial payment, number 23 3932. 24 Q. So it went to foreclosure but you're working 25 on that, too? 28

1 A. Yes. Yes. 2 Q. So three properties in foreclosure? 3 A. Right. 4 Q. Were all three of those properties in 5 foreclosure when the fire occurred? 6 A. Say again? 7 Q. Back in September when the fire occurred, were 8 those -- all three of those properties in foreclosure? 9 A. Yes. Uh-hmm. 10 Q. And you're working on modifications but 11 they've not yet been approved? 12 A. Not yet. 13 Q. So what happened that -- this year to make you 14 fall behind on all the properties? Why did that happen? 15 A. Oh, because I usually collect rent, I help 16 make building, to pay to my new building. 17 Q. So instead of using the rent to pay the 18 mortgages, you put it into the new building? 19 A. Yes. 20 Q. Were there any other financial obligations 21 besides the houses that you and your wife fell behind in 22 in the six months before the fire? 23 A. No. 24 Q. So just mortgages? 25 A. Just mortgage only. Uh-huh. 29

1 Q. And we're here today for an insurance claim. 2 Have you or your wife had any insurance claims in the 3 past? That could include another -- a fire, a theft, a 4 vandalism. Could even be an accident or an injury 5 claim. 6 A. No. 7 Q. A claim could obviously involve another 8 business, a home, or even a car. 9 A. No, sir. 10 Q. This is the first claim? 11 A. First claim. For my. 12 Q. Have any of your family members had any claims 13 in the past, insurance claims? 14 A. So far I don't know. 15 Q. Okay. And we're here today for a claim with 16 Truck Insurance Exchange. How long have you been 17 insured with them for your buildings or businesses? How 18 long have you had the same insurance company? 19 A. Oh, long time. Pretty long time. I think, 20 approximately, about four year. Four or five year 21 something. Different -- different, look like some car 22 or something like that. Different. 23 Q. Have you had the same agent the whole time? 24 A. Yes, sir. 25 Q. Who's your agent? 30

1 A. Maria. I know her only Maria. 2 Q. When you deal with the agent's office, do you 3 deal directly with Maria? 4 A. Yes. I talk to Maria, yes. 5 Q. And in your dealings with Maria for 6 applications for insurance, adding policies, changing 7 policies, have you been truthful to the best of your 8 ability? 9 A. Yes. 10 Q. Are you the only one for your family that 11 deals with Maria, or does your wife also? 12 A. No. No. Only me. Only me. I shop -- buy 13 insurance by myself. I look, she give me good price 14 something like that. Good cover. 15 Q. In the last year have you had insurance with 16 someone else other than Maria? 17 A. For what kind? 18 Q. For anything. For businesses or properties? 19 A. Yes. 20 Q. Who else do you have with? 21 A. Allied. 22 Q. Do you remember who your agent is for Allied? 23 A. Kleppe & Nash. Kleppe & Nash something. On 24 Acequia. 25 Q. Who do you deal with over there? 31

1 A. I deal with the Manuel. Manuel Hernandez. 2 His name Manuel something. 3 Q. What sorts of policies do you have with 4 Allied? 5 A. Car, auto and some rental. That's it. 6 Q. In the last year, have you had any insurance 7 policies that were either canceled, refused, or 8 rescinded? 9 A. No. 10 Q. So tell me about the property that we're here 11 for today. Can you describe it to me? Size, location, 12 address, whatever you want to do. 13 A. Excuse me, what kind of location? The burned 14 out? 15 Q. The fire, right. 16 A. The fire? 17 Q. What do you call the property? 18 A. What I call the property? What's that mean I 19 have to call property. I don't understand. 20 Q. Sometimes people make up their own name for 21 the property. You may call it whatever the restaurant 22 was. 23 A. I use the same name. I use -- put Sy Salathai 24 name, paperwork for. Because we do that, we have 25 paperwork from State Board, we have license, everything, 32

1 for the CD, everything, just put Sy Salathai name. 2 Q. What's the address of the property? 3 A. 1933 West Sunnyside Avenue, Visalia, 93277. 4 77, yeah. 5 Q. And how did you first learn about the 6 property? 7 A. Oh. This a long story. Because I have the 8 restaurant on North Court, Sy Salathai on North Court, I 9 have a lot of customer. Business grew a lot. A lot 10 customer -- more people coming, they don't pay to sit, 11 and I know the lady she do the restaurant. 12 Q. Who is that? 13 A. I forgot her name. And I said I'm looking for 14 a new place go to south side. Because my old one north 15 side, this south side. I'm looking for a place. Oh, 16 she saw on newspaper on internet or something. Oh, 17 let's pray for south. 18 Q. Why did you want to move from the north side 19 to the south side? 20 A. Because a big location. 21 Q. It's a better location? 22 A. Better location. More white people, south 23 side better, more white people, like, in south side. 24 Asian and Mexican people live north side. I say, okay, 25 we can move over there. And I found out the price. The 33

1 first, for the property, sell very high. They cost 2 about 750,000 to sell. 3 Q. You're talking about the -- 4 A. The burned. 5 Q. -- Sunnyside? 6 A. Sunnyside. Yes, sir. 7 Q. Uh-hmm. 8 A. I say, no, too much. Now, we tried to offer, 9 go down. The owner don't sell. Offer, they don't sell. 10 It's too low. Forget about it. Real estate guy come in 11 say, "Hey, I see the sign, it for sale." "Yeah, I did 12 already. They want to sell too high. I cannot buy it." 13 He said, "Okay, I can help you." You say, okay, some 14 amount I can pay. He say okay. He help me do that. 15 Q. Who said they could help you? 16 A. His name Ramon, R-a-m-o-n something. 17 R-a-m-o-n something. Ramon. This guy help me get this 18 property. 19 Q. He helped you buy it? 20 A. He helped me buy it. 21 Q. Is he a real estate person? 22 A. Yeah, he real estate person. He help me to 23 buy the property. He can go negotiable with the 24 lender -- the owner own the property, make the price 25 drop down, I can buy the property. 34

1 Q. Is Ramon a realtor? 2 A. Yes, sir. 3 Q. Do you have, like, a phone number or last name 4 or where he worked for, anything like that? 5 A. I have. 6 Q. I'll leave a blank in the transcript just in 7 case and you can fill it in later. Unless you have it. 8 A. I have in my phone. 9 Q. Okay. Great. 10 A. Can I see for you a minute -- 11 Q. Of course. 12 A. -- his phone number? 13 Q. On your phone it says Ramon Rivas, R-i-v-a-s. 14 A. Yeah. 15 Q. And we have a phone number of 300-2369, 16 correct? 17 A. Yes, sir. 18 Q. What's the area code? 19 A. To be (559). 20 Q. That's what I thought. 21 How did you meet Ramon Rivas? 22 A. He come -- he's customer. He come to eat my 23 food. 24 Q. Did he represent you in the transaction? 25 A. Yes, sir. 35

1 Q. And he helped you negotiate down the price? 2 A. Yes, sir. 3 Q. He didn't give you money -- 4 A. Oh, no. No. No. No. No. 5 Q. When did you start looking for a property on 6 the south side? 7 A. Oh, couple year before I buy. Couple year 8 before I buy. Yeah. Before the stock market go up. 9 Q. When did you first put Sy Salathai on the 10 north side, that restaurant, when did you first put it 11 up for sale? 12 A. I don't quite understand. Please. 13 Q. You sold the other restaurant. 14 A. Yes. 15 Q. When did you start selling it, trying to sell 16 it? 17 A. Try to sell it. No, not too long. Just 18 because I sell the property to my cousin only. Yeah. 19 He have restaurant, small one, he looking for a little 20 more bigger. I say, "Come to buy mine, I give you good 21 price, family." Yeah. 22 Q. So when the Sunnyside property was first 23 listed, it was 750,000? 24 A. Yes, sir. 25 Q. What were you able to negotiate as the price? 36

1 A. Yes. 2 Q. What was the price? 3 A. Oh, we negotiable until that one we offer 300. 4 They don't -- say no. They don't sell. 5 Q. Did they take 300? 6 A. No. They take 350. Yeah. The real price 7 350. 8 Q. Uh-hmm. And when did you purchase the 9 property? 10 A. I think January -- January or February we 11 close escrow. 12 Q. Of 2009? 13 A. 2009, yes. 14 Q. How did you pay the purchase price? 15 A. How did I pay purchase price? 16 Q. 350,000, yeah. 17 A. I get a loan from Mid Valley. 18 Q. For the entire amount? 19 A. Yes. 20 Q. Did you have any trouble getting the loan? 21 A. That one, no. No, no trouble to get a loan. 22 Q. Before you purchased the property -- well, let 23 me ask a different question. What was the condition of 24 the property when you bought it? 25 A. Not too good. I don't like. Not too good. 37

1 Q. What were you going to have to do to get it 2 ready to have a restaurant? 3 A. We tried to open in November. 4 Q. No, what work did you need to do? 5 A. Oh, what work I need to do? I fix -- first 6 time I get permit to do the roofing. 7 Q. Roof. 8 A. Roof no good. I get permit from the City. I 9 pay, done completely roof, pass. And after I go down to 10 do floor, and done. And then I do the wall, make the 11 restroom by the plan here. (Indicating.) Bathroom. 12 Yeah. Restroom. And I do bigger kitchen, all high 13 stuff. Plumbing, water, all high, the working. Floor, 14 wall, ceiling, yeah. I put it in. 15 Q. So you had to do everything at this building. 16 A. Yes. Yes. 17 Q. When you bought the building, was there -- 18 were there any tenants? 19 A. No. Empty. Vacant. 20 Q. How long had the building been vacant? 21 A. Oh, so far I don't know. 22 Q. Before you bought it you don't know? 23 A. I don't know. Maybe five or six months, 24 maybe. I don't know. 25 Q. Did you have a budget as to how much you 38

1 thought it would cost to fix up the property? 2 A. Yes. 3 Q. What was your budget? 4 A. I think when I figure out, minimum, 5 completely, about 175,000. Yeah. To complete. 6 Q. And how much -- when were you supposed to open 7 your restaurant by your plan? 8 A. Yes. 9 Q. When was it going to open? 10 A. Oh, we tried to open on November 1st, 2009. 11 For this month. If not happen, we open this month. 12 Q. Okay. So before this fire occurred, you were 13 still going to open on November of 2009? 14 A. Yes, sir. 15 Q. When the fire occurred, what percentage of 16 your property was completed? 17 A. Not complete or been complete? Been complete 18 already? I'm sorry. You ask me how many portion I 19 complete, right? 20 Q. If you had to put a percent, like 50 percent 21 or 100 percent? 22 A. To complete. 23 Q. Yeah, complete. How far were you -- 24 A. Oh, should be 75 percent. Seventy-five 25 percent complete. Yeah. Left only 25 percent left. 39

1 Q. Twenty-five percent left? 2 A. Left. Seventy-five percent complete. 3 Q. Right. How much money had you spent on fixing 4 up the property by the time the fire occurred? 5 A. No, I have a paper right here. 6 Q. What sort of paperwork? 7 A. The one I spending for, to buy material, that 8 what you talking about? 9 Q. Great. 10 A. Okay. See on this one -- let me explain for 11 you, go back a little bit further. For the property, 12 1933 West Sunnyside, the property burn down. 13 Q. Yeah. 14 A. I loan from Mid Valley right here amount 15 375,000. 16 Q. Okay. Why did they give you 375 instead of 17 350? 18 A. Oh, because the closing cost and stuff, pay 19 for all kinds of stuff. I don't know. I have paperwork 20 right here. They give 375,000, they give me, borrow, 21 okay? 22 Q. Okay. 23 A. And I put my own money, too, in there. 5,000 24 for deposit. 25 Q. For the deposit to purchase the property? 40

1 A. Yes, sir. Before we do go negotiable. The 2 owner say, "Hey, sorry, not nice because it -- if you 3 willing to buy it, I need 5,000 deposit." I say yes. I 4 write 5,000 to them. Okay? 5 Q. Okay. 6 A. And I pay 2000 for the appraisal, the property 7 appraisal. 8 Q. How much did the property appraise for? 9 A. Oh, I don't know. I just pay money, but they 10 don't give me the amount. 11 Q. Do you still have the appraisal? 12 A. I don't. 13 Q. Do you remember who did the appraisal? 14 A. Lender. Mid Valley. 15 Q. Okay. You don't know the company they chose? 16 A. Oh, I know Mid Valley the name of the company. 17 Oh, do the appraisal? 18 Q. Yeah. 19 A. I don't know. They do. I just pay them. 20 They say pay, they do themself. 21 Q. Okay. 22 A. And this one appraisal for the 1933, plus 23 before I buy this I have to appraisal the property I, 24 owner, to get the -- how do you call -- it can help me 25 get the money here. Appraisal my -- 41

1 Q. Which property did you appraise along with 2 Sunnyside? 3 A. The appraisal, 101. 101. We appraisal this 4 one. (Indicating.) 5 Q. So on Exhibit Two it's property number five? 6 A. Number five. 7 Q. Okay. 8 A. And appraisal right here, number two. 9 Q. And number two. Okay. 10 A. I appraisal. And appraisal to number 700, 11 number nine. 12 Q. Okay. 13 A. We have to appraisal for, they see how much 14 equity I have the property I own before he give me, 15 borrow the money on 375. 16 Q. Did they use those other properties to -- 17 A. He lien my property right now. 18 Q. Two, five and nine, they used that as 19 security? 20 A. Yes, sir. 21 Q. So you used those three properties also for 22 security for the Sunnyside loan? 23 A. Yes. 24 Q. Okay. So we were talking about how much money 25 you had into the property at the time of the fire. 42

1 A. Okay. 2 Q. And you've told me you've got the loan for 3 375, $5,000 deposit, and $2,000 appraisal. 4 A. Right. 5 Q. Okay. 6 A. Yes, sir. The amount I spending for -- you 7 talking about amount I spending, right? To buy 8 material. 9 Q. Right. 10 A. I have the -- talk about material. Material, 11 I spent about 152,341. Material. Okay? 12 Q. So that's a very specific number. How did you 13 calculate that? 14 A. This one I pay people and buy material and I 15 adding together, this number come up. 16 Q. Do you have the receipts for the material? 17 A. Some of them, yes. 18 Q. Do you have receipts for the payments for 19 labor? 20 A. Only they write down only. I pay cash. 21 Q. Who did the labor for you? 22 A. Looked like people come to help me. My son, 23 his friend. And some company did something -- helping, 24 thing I cannot do, I had people do. 25 Q. So do you have a list of all the people that 43

1 you paid to do the work? 2 A. Before they -- they pay, they finish it, just 3 give me money, go away. 4 Q. Who paid? 5 A. I paid. I have to carry money in my pocket 6 all the time when I go work there. 7 Q. So you're just saying you paid cash? 8 A. Paid cash. 9 Q. You have no record of how much you paid? 10 A. No. 11 Q. You didn't keep any records? 12 A. No. 13 Q. If you didn't keep records, how did you come 14 up with the 152,341 dollar figure? 15 A. I keep a number. For example, Albert this 16 amount, I pay this guy amount. That's it. 17 Q. Do you have that record somewhere of who you 18 paid and how much you paid? 19 A. Yes. 20 Q. Do you have it with you today? 21 A. No, not right now. Not today. 22 Q. Okay, good. Maybe you can get that, because 23 that will help. 24 A. Yeah. And material, yes. Material, yes. 25 Material and labor. Material, look like I buy from 44

1 lumber, all kinds of stuff, some Lowe, Home Depot, 2 something like that. Yes, I have. 3 Q. Can you get those records that show the 4 materials? Do you have those with you today? 5 A. Yeah. 6 Q. Okay. Good. Can we mark them? 7 A. Material. 8 MR. KNAPP: While we're doing that, let's go 9 off record. 10 (Off the record discussion.) 11 MR. KNAPP: Let's go back on record. 12 We have a copy of the page from your binder 13 that says "Spending for 1933 West Sunnyside." We'll 14 mark that page as Exhibit Three. 15 (Whereupon, the document 16 was marked as Examination 17 Exhibit Three.) 18 MR. KNAPP: Q. And you were also going to 19 look and see if you can get the evidence of the 20 materials that you purchased. 21 A. Yeah. 22 Q. What were you able to find? 23 A. We find material. 24 Q. You were saying you had the receipts or 25 invoices or something. 45

1 A. Yes. What, we do something, easy one, skip 2 this one and go back. You want to do step by step or 3 just do -- what do you want me to do? 4 Q. Well, if you have anymore for material stuff. 5 A. Yes. 6 Q. Since it's first. 7 A. Let me show you this one. Look like this one 8 I pay for people drawing plan. Do this. 9 Q. Okay. 10 A. Okay? 11 (Whereupon, the document 12 was marked as Examination 13 Exhibit Four.) 14 MR. KNAPP: Q. So let me mark as Exhibit 15 Four -- 16 A. Right here. 17 Q. -- a receipt from Stephen Sparshott. 18 A. Yes. Draw the plan. 19 Q. Did the plans for you. 20 A. Did the plans for me. 21 Q. It says the total is $2400. 22 A. Yes. 23 Q. Did you pay that entire amount? 24 A. Yes, I pay all of it. 25 Q. Is this receipt the exact receipt you received 46

1 when you paid it? 2 A. Yes. 3 Q. And there's a signature on it. Do you know 4 whose signature that is? 5 A. Him. 6 Q. Stephen Sparshott? 7 A. Yes. 8 Q. What else do you have? 9 A. Okay. Finish that one. Look like this one 10 for engineering. Engineering. 11 MR. KNAPP: Okay. We'll mark as Exhibit Five 12 a statement from Dunn Engineering. 13 (Whereupon, the document 14 was marked as Examination 15 Exhibit Five.) 16 MR. KNAPP: Q. And this is in the amount 17 of -- it doesn't actually have an amount, but it has 18 different balances. 19 A. 15. 20 Q. 15, but then it's got 800 and 700. 21 A. No. 22 Q. Oh, those are payments. 23 A. Payments. 24 Q. So 1500 total. 25 A. Yes. 47

1 Q. Did they actually do this work for you? 2 A. Yes. 3 Q. And did you make the payments that are listed 4 on this document? 5 A. Right. 6 Q. And so you don't owe them anything? 7 A. No. See, balance zero over here. 8 Q. Great. What else do you have? 9 A. I have one from the City. City of Visalia. 10 MR. KNAPP: And this is a payment history. 11 Let me mark that as Exhibit Six. 12 (Whereupon, the document 13 was marked as Examination 14 Exhibit Six.) 15 MR. KNAPP: Q. What are these payments for? 16 A. For the check the plan and for approve plan 17 and permit. 18 Q. And permits. Okay. And these are amounts 19 that you've actually paid? 20 A. Yes. And this one, Ferguson. Ferguson. They 21 don't add for me. I just add by themself. 22 (Whereupon, the document 23 was marked as Examination 24 Exhibit Seven.) 25 MR. KNAPP: Q. Okay. Let me mark as Exhibit 48

1 Six -- Seven, excuse me, a packet from Ferguson 2 Enterprises. And in this there are many different 3 invoices. 4 A. Yes. 5 Q. What did Ferguson do for you? 6 A. I go buy the PVC, the pipe, black pipe. 7 Q. Pipe. 8 A. For the plumbing. 9 Q. Plumbing supplies? 10 A. Plumbing supply. 11 Q. Did they do any work or -- 12 A. No. No. I just buy from them. I do by 13 myself. Yes. 14 Q. And you've paid for all these invoices? 15 A. Yes. I don't owe. This one I pay for JB's 16 Cement. 17 MR. KNAPP: Let me mark as Exhibit Eight three 18 different invoices from JB's Cement. 19 THE WITNESS: Yeah. 20 (Whereupon, the document 21 was marked as Examination 22 Exhibit Eight.) 23 MR. KNAPP: Q. And what did you use cement 24 for at this project? 25 A. I pour cement on the front -- front yard, the 49

1 front. On the front to get in to make a rail, handicap. 2 Q. Inside the restaurant or outside? 3 A. Outside. Attached to the building. Step. 4 They call it step to get in the building. And the back 5 and patio. 6 Q. And are these amounts in the JB's Cement 7 invoices, amounts that you actually paid? 8 A. Yeah. 9 Q. Do you still owe them any money? 10 A. No, I don't owe. I pay off already. 11 Q. Okay. What else do you have? 12 A. This one I pay for -- this one for beam. 13 Beam. 14 Q. Uh-hmm. 15 A. Big beam across the building. 16 (Whereupon, the document 17 was marked as Examination 18 Exhibit Nine.) 19 MR. KNAPP: Okay. So let me mark this package 20 as Exhibit Nine. 21 Q. Who did you buy those beams from? 22 A. From that, the company. They called 23 Gang-Nail. 24 Q. Oh, is it from Weyrick? 25 A. Weyrick, yeah. They order for me. 50

1 Q. So these invoices are all for beams that were 2 placed on the property? 3 A. Yes. 4 Q. And did you pay all of these invoices? 5 A. Yes. 6 Q. And are the invoices true and correct to the 7 best of your ability? 8 A. Exactly true, yes, sir. 9 Q. What did you have to use beams for? 10 A. Oh, you have to follow this one, sir. This. 11 (Indicating.) 12 Q. For the plans? 13 A. For plan. To support the ceiling. To support 14 the roof. Yeah. After look at it. 15 Q. We'll get that later. 16 Any other documents from the work that was 17 done? 18 A. Tulare, the Health Department. 19 MR. KNAPP: Let me mark as Exhibit Ten some 20 documents from the Tulare Company Environmental Health. 21 (Whereupon, the documents 22 were marked as Examination 23 Exhibit Ten.) 24 MR. KNAPP: Q. What were these payments for? 25 A. The payment, total paid? 51

1 Q. Why did you have to pay the money? 2 A. Have to pay them because we have to get the 3 permit from them. Okay we can build restaurant or okay 4 to operate, something like that. From the State of 5 California we have to do that. 6 Q. Did they actually come and inspect? 7 A. Yes, sir. 8 Q. Do you remember when they inspected? 9 A. They come look at two, three time. I don't 10 remember when they come. 11 Q. Do you remember how long before the fire they 12 were there? 13 A. I think, approximately, about two -- two or 14 three week before, they go in. Yeah. They come too 15 many time. They could see what we do, something like 16 that. 17 Q. And so they would have had to keep coming out 18 until it was done; is that right? 19 A. Yes, sir. 20 Q. And this, for Exhibit Ten, are the actual 21 amounts that you had paid, right? 22 A. Yes, paid. Give me little time to do things. 23 You see ABC some right here? ABC come? 24 Q. Not yet. 25 A. No? Probably mix over there. I missing ABC. 52

1 No, that's the person that give me the 2 license. 3 Oh, this one, look. This one, CC -- they help 4 to all kinds of stuff. 5 MR. KNAPP: Let me mark as Exhibit 11, this is 6 a group of documents from C and C Construction. 7 (Whereupon, the document 8 was marked as Examination 9 Exhibit 11.) 10 MR. KNAPP Q. So who is C and C Construction? 11 A. Who? 12 Q. Who is that on your list that we've marked as 13 Exhibit Three? 14 A. Over here. (Indicating.) 15 Q. Oh, Phil Cox. Does he own C and C 16 Construction? 17 A. Yeah. Look like I -- something, material I 18 cannot buy, and he go help me buy and I pay him. 19 Q. Did he do any work for you or did he just 20 do -- 21 A. No. He just help me buy things. 22 Q. Okay. And did you make payment for all of the 23 items that we've marked as Exhibit 11? 24 A. All paid. All paid. I don't owe anyone. 25 Q. And are all these documents true and correct 53

1 documents that you received from C and C Construction? 2 A. Yes, sir. I still looking for ABC. Looking. 3 I lost my paperwork. You see in there somewhere? 4 Should be that one, I think. ABC? 5 Q. Yeah. 6 A. Okay. You got ABC already. 7 Q. Exhibit Nine for Weyrick Company should be 8 just a single document with the amount of $1023. 9 A. Oh, yeah. 10 Q. There's some additional documents. Are these 11 from ABC? 12 A. ABC. 13 MR. KNAPP: Let me mark as Exhibit 12 three 14 documents. 15 (Whereupon, the documents 16 were marked as Examination 17 Exhibit 12.) 18 MR. KNAPP: Q. And you're saying these are 19 from ABC Comp? 20 A. Yes, sir. 21 Q. What is that? What's ABC Comp? 22 A. They sell the roof. They sell the single 23 roof. 24 Q. What did they do for the roof? 25 A. They don't do nothing. I just buy material 54

1 from them. Base roof and stuff like that. 2 Q. And did you make payment for all these items 3 that we've marked Exhibit 12? 4 A. All paid. 5 Q. And these are true and correct copies? 6 A. Yes, sir. 7 Now, look like, for example, this one I bought 8 material from them. They say they not subtract receipt, 9 how much I buy not allowed to keep. If they say 10 insurance want to comply, you have to go hire lawyer or 11 something like that. I don't understand what they said. 12 They don't allow to keep. 13 (Whereupon, the document 14 was marked as Examination 15 Exhibit 13.) 16 MR. KNAPP: Let me mark as Exhibit 13, this is 17 a worklist from Lowe's. 18 A. Same thing this too, Visalia. 19 Q. So for Lowe's they're saying they don't have 20 any of your receipts. 21 A. Right. 22 Q. What did you buy from them? 23 A. I buy the plug, out plug -- outlet. 24 Q. Outlets. 25 A. Outlet plug. Wire and light. And some 55

1 cement. And not enough, I go buy from them. Sheetrock. 2 Wood. Two-by-four, four-by-six something. And 3 two-by-twelve. All kinds stuff I buy from them. Nail. 4 Glue. What thinking about. Should be that's it. You 5 have the Weyrick, right? Weyrick? Okay. 6 Q. Do you have an account with them? 7 A. I don't have. I don't open account with them. 8 Q. Do you get some sort of discount or are you on 9 their contractor's list, something like that? 10 A. No. Pay cash. Pay cash, cash all the time. 11 Q. Do you have any records of the items that you 12 bought from Lowe's or how much you spent, anything of 13 that nature? 14 A. No, I don't have any. 15 Q. Let me mark as Exhibit 14 -- 16 A. No. No. That's a different. This lumber. 17 Q. Mark as Exhibit 14, from Visalia Lumber. 18 (Whereupon, the document 19 was marked as Examination 20 Exhibit 14.) 21 THE WITNESS: Oh, this Visalia Lumber. 22 MR. KNAPP: Right. 23 THE WITNESS: Visalia Lumber, I kept only one 24 receipt only left, gone. Plywood from them, Visalia 25 Lumber. 56

1 MR. KNAPP: Q. Plywood. 2 A. And pole is cheaper. 3 Q. Wooden poles or other ones? 4 A. Wood. 5 Q. Do you still have an invoice from them? 6 A. No, I don't. 7 Q. Do you have any idea how much you spent there? 8 A. I have left only one invoice and if I look 9 stack inside my box. 10 Q. Let me know if you find any. 11 A. I find some only. I get one only 178.05, the 12 receipt I have in my bag. The receipt I will have 13 somewhere. 14 Q. So the only receipt you have is a little bit 15 less than $180, right? 16 A. Yes. Yes. 17 MR. KNAPP: Let me mark as Exhibit 15. 18 (Whereupon, the document 19 was marked as Examination 20 Exhibit 15.) 21 MR. KNAPP: Q. This is a document from Home 22 Depot? 23 A. Home Depot, yes. 24 Q. This is another letter saying they can't 25 identify any receipts for you? 57

1 A. Uh-huh. 2 Q. "Yes"? 3 A. Yes. 4 Q. What did you buy from Home Depot? 5 A. Same thing. Sometimes I buy the wood, some 6 nail. Because I live the north side, sometimes I go 7 over there, sometimes I go over here. Because they more 8 easier to drive from work to go over there. I buy from 9 them. And some tool I buy from them. Oh, tool, too, 10 from the Lowe's, from the Home Depot, I buy from them. 11 Q. Do you have a list anywhere of the tools that 12 you bought from either of those locations? 13 A. On a list, yes. The tool on list. I gave to 14 insurance. 15 Q. So the tools that you know -- for the things 16 that are being claimed damaged? 17 A. Yes. 18 Q. We'll talk about that list when we get to it. 19 A. Okay. 20 Q. Do you have any idea how much you spent at 21 Home Depot? 22 A. I have -- I just do arithmetic only. Look 23 like Home Depot, no receipt, I might pay $3,760 for Home 24 Depot. Lowe, I might estimate 4,750. Yeah. The 25 Visalia Lumber, the one you have the little receipt, I 58

1 might estimate about 2,850 I buy from them. 2 Q. Okay. And those are just estimates. We don't 3 have receipts. 4 A. Yes, sir. 5 Q. Why don't we have receipts? You were telling 6 me before. 7 A. I have receipts, but I put in a box, all 8 burned. I paid cash. I don't pay check for nothing. I 9 have receipt before, but burned down. 10 Q. Did you make any purchases on a credit card, a 11 credit line, anything like that? 12 A. No. No. No. I think -- no. 13 Q. Everything was just cash? 14 A. Everything just cash. 15 Q. And what was the box at the property that had 16 all the receipts in it? What was it like? Was it 17 wooden? Made of metal? 18 A. No. Paper box. 19 Q. Just a paper box. What were you going to do 20 with all those receipts later? 21 A. Well, I have a -- I've got -- if not burned 22 out, I add together how much I spending. And after that 23 I'm going to estimate how much my building cost, total 24 cost on future sale. Maybe couple, five year, ten year 25 I want to sell building, how much you have to sell based 59