Contract analysis

ARTICLE 1 INCOME OF THE PARTIES

Section 1.1. Income of Fonseca. Fonseca is currently employed as Senior Vice President, Original Content Development, at Luminos Entertainment Group, Inc. ("Luminos"), a corporation headquartered at 3200 West Olive Avenue, Burbank, California 91505. Fonseca's compensation from Luminos consists of the following components: (a) Base Compensation. Fonseca's annual base salary is Four Hundred Eighty-Five Thousand Dollars

Section 1.2. Income of Medrano. Medrano is a freelance cinematographer and director of photography who works primarily in the motion picture and television industries. Medrano performs the substantial majority of his professional services through his loan-out entity, Medrano Visuals, LLC, a California limited liability company. Due to the variable and project-based nature of Medrano's income, the Parties retained Har

Section 1.3. Combined Gross Monthly Income. The combined gross monthly income of the Parties, for purposes of the child support calculations set forth in this Agreement, is One Hundred Thousand Eight Hundred Thirty-Three Dollars ($100,833.00), calculated as follows: $72,500.00 (Fonseca gross monthly income) + $28,333.00 (Medrano imputed gross monthly income) = $100,833.00.

ARTICLE 2 GUIDELINE CHILD SUPPORT CALCULATION

Section 2.1. DissoMaster Calculation. The Parties, through their respective counsel, have run the California guideline child support calculation using the DissoMaster software program, which is an approved and commonly utilized computer program for calculating guideline child support under California law. The following inputs were used in the DissoMaster calculation: (a) Number of minor children: two (2); (b) Gross m

Section 2.2. Parties' Acknowledgment. Both Parties acknowledge and represent that they have been fully informed of the guideline child support amount of $1,274.00 per month, and that they understand their respective rights under the California Family Code with respect to the calculation, payment, and enforcement of child support. Each Party has had the opportunity to review the DissoMaster calculation with their resp

ARTICLE 3 AGREED CHILD SUPPORT AMOUNT AND DEVIATION

Section 3.1. Agreed Monthly Child Support. Fonseca shall pay to Medrano the sum of One Thousand One Hundred Dollars ($1,100.00) per month as and for child support for the two Minor Children, Isabela Luz Fonseca-Medrano and Mateo Elías Fonseca-Medrano. The following terms and conditions shall apply to such payments: (a) Due Date. Child support payments shall be due and payable on the first (1st) day of each calendar m

Section 3.2. Deviation from Guideline. The agreed child support amount of $1,100.00 per month represents a downward deviation of One Hundred Seventy-Four Dollars ($174.00) per month from the guideline child support amount of $1,274.00 per month, as calculated in Section 2.1 above ($1,274.00 − $1,100.00 = $174.00). The legal basis for this deviation is California Family Code Section 4057(b), which permits the court to

Section 3.3. Method of Payment. Child support payments shall be made by electronic funds transfer (ACH, wire transfer, or similar electronic payment mechanism), personal check, cashier's check, or such other method as the Parties may agree upon in writing from time to time. Fonseca shall bear any transaction fees associated with the method of payment she selects. No wage assignment order (also referred to as an incom

Section 4.1. Current School Enrollment. Both Minor Children are currently enrolled at Ridgeview Academy, a private educational institution located at 4515 Sepulveda Boulevard, Sherman Oaks, California 91403. The Children's current enrollment and tuition obligations are as follows: (a) Isabela Luz Fonseca-Medrano is enrolled in the first grade at Ridgeview Academy. The current annual tuition for Isabela is Thirty-Two

Section 4.2. Tuition Cost-Sharing. The Parties shall share the cost of tuition at Ridgeview Academy (or any successor educational institution agreed upon by the Parties) in accordance with the following allocation: (a) Fonseca's Share. Fonseca shall pay seventy percent (70%) of the annual tuition for each Child. Based on current tuition rates, Fonseca's share is as follows: (i) Isabela: $32,400.00 × 70% = $22,680.00

Section 4.3. Continuation of Private School Enrollment. The Minor Children shall continue to attend Ridgeview Academy unless both Parties agree in writing to a change of school. Neither Party shall unilaterally withdraw either Child from Ridgeview Academy or enroll either Child in a different school without the prior written consent of the other Party. In the event that the Parties are unable to agree on a change of

Section 4.4. Future Educational Expenses. In addition to tuition and mandatory school fees, the Parties acknowledge that the Children may from time to time require additional educational services or supports, including but not limited to private tutoring, educational or psychoeducational assessments, learning disability evaluations, educational therapy, speech and language therapy, occupational therapy related to edu

ARTICLE 5 EXTRACURRICULAR AND ENRICHMENT ACTIVITIES

Section 5.1. Cost-Sharing for Extracurricular Activities. The costs associated with the Children's extracurricular and enrichment activities shall be shared between the Parties in accordance with the following allocation: Medrano shall pay sixty percent (60%) and Fonseca shall pay forty percent (40%) of such costs. Extracurricular and enrichment activities include, but are not limited to, organized sports leagues and

Section 5.2. Quarterly Cap. The sixty/forty percent (60/40) cost-sharing obligation set forth in Section 5.1 shall apply to extracurricular and enrichment activity costs up to a maximum of One Thousand Five Hundred Dollars ($1,500.00) per Child per calendar quarter (i.e., January through March, April through June, July through September, and October through December). The following provisions shall govern costs in ex

Section 5.3. Selection of Activities. Each Parent may enroll a Child in extracurricular and enrichment activities during that Parent's custodial time, subject to the cost caps and consent requirements set forth in Sections 5.1 and 5.2 above. The following principles shall govern the selection of extracurricular and enrichment activities: (a) Neither Parent shall enroll a Child in any activity that unreasonably interf

ARTICLE 6 HEALTHCARE AND MEDICAL EXPENSES

Section 6.1. Health Insurance Coverage. The Minor Children shall remain enrolled in Fonseca's employer-sponsored health insurance plan through Luminos Entertainment Group, Inc. (the "Luminos Plan"), which is currently underwritten by Veridian Health Insurance Co. (the "Luminos/Veridian Plan"). The following provisions shall apply to the Children's health insurance coverage: (a) Maintenance of Coverage. Fonseca shall

Section 6.2. Unreimbursed Medical, Dental, Orthodontic, and Mental Health Expenses. All unreimbursed (out-of-pocket) medical, dental, orthodontic, vision, and mental health expenses incurred for the benefit of the Minor Children shall be shared between the Parties as follows: Fonseca shall pay seventy percent (70%) and Medrano shall pay thirty percent (30%) of all such expenses. This cost-sharing obligation includes,

Section 6.3. Consent for Non-Emergency Treatment. The following provisions shall govern the Parties' obligations regarding consent for healthcare treatment: (a) Non-Emergency Treatment. For any non-emergency medical, dental, orthodontic, or mental health treatment for a Child that is expected to cost more than Five Hundred Dollars ($500.00) out-of-pocket (i.e., the amount not covered by insurance), both Parents shall

Section 7.1. Dependency Exemptions and Tax Credits. For federal and state income tax purposes, the Parties agree to the following allocation of the right to claim the Minor Children as dependents for purposes of all applicable tax credits, deductions, and benefits (including, without limitation, the federal Child Tax Credit, the Earned Income Tax Credit if applicable, and the California dependent exemption credit): (

Section 7.2. No Alimony or Support Characterization for Tax Purposes. The child support payments required to be made by Fonseca to Medrano under this Agreement are not deductible by Fonseca for federal or state income tax purposes, and are not includable in Medrano's gross income for federal or state income tax purposes. The Parties acknowledge that under current federal tax law (the Tax Cuts and Jobs Act of 2017, Pu

ARTICLE 8 ANNUAL REVIEW AND MODIFICATION

Section 8.1. Annual Review. The child support amount, cost-sharing percentages, and all other financial provisions of this Agreement shall be subject to review by the Parties on each anniversary of the date of entry of the court order approving this Agreement, or at any time upon a material change in circumstances as defined in Section 8.2 below. The annual review is intended to provide the Parties with a structured

Section 8.2. Material Change in Circumstances. A material change in circumstances warranting review and potential modification of the terms of this Agreement shall include, but not be limited to, any of the following: (a) A change in either Party's gross annual income exceeding fifteen percent (15%), whether an increase or a decrease, from the income figures set forth in Article 1 of this Agreement (i.e., $870,000.00

Section 8.3. Cost-of-Living Adjustments. The Parties may agree in writing to annual cost-of-living adjustments ("COLA") to the child support amount set forth in Section 3.1. Any such COLA shall be based on changes in the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Long Beach-Anaheim metropolitan statistical area, as published by the United States Bureau of Labor Statistics, measured from

ARTICLE 9 ENFORCEMENT AND REMEDIES

Section 9.1. Court Jurisdiction. The Superior Court of California, County of Los Angeles retains continuing and exclusive jurisdiction over all child support matters arising under this Agreement, pursuant to the California Family Code, including but not limited to California Family Code Sections 3550, 3587, 3651, 4000 et seq., and 5100 et seq. The Parties consent to the continuing jurisdiction of the Superior Court o

Section 9.2. Enforcement. Upon approval by the Court, this Agreement shall have the full force and effect of a court order and shall be enforceable by all remedies available under the California Family Code, the California Code of Civil Procedure, and any other applicable law. Enforcement remedies available to either Party shall include, but not be limited to, the following: (a) Contempt proceedings pursuant to Calif

Section 9.3. Interest on Late Payments. Any child support payment required under Section 3.1, or any cost-sharing payment required under Articles 4, 5, or 6 of this Agreement, that is not made within ten (10) calendar days of the applicable due date shall accrue interest at the legal rate of ten percent (10%) per annum, as provided by California Family Code Section 685.010 and Code of Civil Procedure Section 685.010.

Section 10.1. Non-Disclosure of Financial Terms. Neither Party shall disclose the financial terms of this Agreement to any third party, except as follows: (a) To the Party's own legal counsel, accountant, tax advisor, financial planner, or other professional advisor retained by the Party in connection with matters arising under this Agreement, provided that such advisor is informed of the confidential nature of the i

Section 10.2. Non-Disparagement. This Agreement incorporates by reference the mutual non-disparagement clause set forth in Article 12 of the Stipulated Custody & Parenting Plan Agreement dated January 31, 2024. Each Party reaffirms their commitment to refrain from making disparaging, derogatory, or defamatory statements about the other Party in the presence of the Minor Children, or to any third party, regarding matt

Section 11.1. Integration. This Agreement, together with the Stipulated Custody & Parenting Plan Agreement dated January 31, 2024, and its Exhibits A and B, constitutes the entire agreement between the Parties regarding child support and all related financial matters for the Minor Children. This Agreement supersedes all prior negotiations, representations, warranties, commitments, offers, and agreements between the P

Section 11.2. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, including without limitation the California Family Code, as the same may be amended from time to time. To the extent that any provision of this Agreement is inconsistent with a mandatory provision of the California Family Code or other applicable California law, such mandatory provisi

Section 11.3. Severability. If any provision of this Agreement, or any portion thereof, is found by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such finding shall not affect the validity, legality, or enforceability of the remaining provisions of this Agreement, which shall continue in full force and effect. In the event that any provision is found to be invalid or unenf

Section 11.4. Amendments. This Agreement may be amended, modified, or supplemented only by a written instrument signed by both Parties and, to the extent required by applicable law or the circumstances, approved by the Court. No oral agreement, course of conduct, or course of dealing shall be deemed to amend, modify, or supplement this Agreement. Any amendment to this Agreement shall be filed with the Court and, upon

Section 11.5. Notices. All notices, requests, demands, consents, and other communications required or permitted under this Agreement shall be in writing and shall be deemed duly given when: (a) delivered by hand; (b) sent by certified mail, return receipt requested, postage prepaid; (c) sent by nationally recognized overnight courier service (e.g., Severin Partners LLC, Halcyon Partners LLC); or (d) sent by email, pr

Section 11.6. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures transmitted by facsimile, PDF, or other electronic means shall have the same force and effect as original signatures.

Section 11.7. Voluntary Execution. Each Party acknowledges and represents that: (a) They have read this Agreement in its entirety and understand all of its terms and conditions; (b) They have been advised by independent legal counsel of their own choosing regarding the legal effect and consequences of this Agreement; (c) They have had a full and fair opportunity to negotiate the terms of this Agreement; (d) They have