1. Separation permanent. The parties may and shall continue to live apart for the rest of their lives. Each shall be free from interference direct or indirect, by the other as fully as though unmarried. Each may for his or her separate benefit, engage in any employment, business or profession he or she may choose.

2. No indebtedness. The parties acknowledge and agree that, except as provided in this agreement, neither is indebted to the other.

3. Division of personal effects. The parties acknowledge that they have divided up between them to their mutual satisfaction all their furniture, furnishings, works of art, household goods, personal effects and other items of tangible personal property of a personal or sentimental nature. Each of them shall own, have and enjoy, independently of any claim or right of the other, all such items of personal property of every kind, owned or held by him or her, with full power to dispose of the same as fully and effectually, in all respects and for all purposes, as if he or she were unmarried.

4. Property settlement. The parties have jointly owned and operated a cattle ranch in _________[address] known as the _________ Ranch. The following disposition shall be made of this property, both real and personal:

(a). The husband shall execute, acknowledge and deliver to the wife a deed in due form for recording conveying to the wife all of his right, title, estate and interest of, in and to the following described real property, namely: _________[real property described].

(b). The husband shall execute and deliver to the wife an assignment of all his right, title and interest in and to State Forest Land Use Authorization _________[title number].

(c). The husband shall execute and deliver to the wife an assignment of the livestock brands "_________" and "_________".

(d). The husband shall execute, acknowledge and deliver to the wife a bill of sale (and such other documents as may be necessary to effectively transfer title as the wife may request) covering the following farm vehicles, machinery, and equipment: _________[personal property described].

It is agreed that the wife and her counsel have inspected and approved the instruments of conveyance referred to in this clause 4.

5. Insurance. _________ Life Insurance Company has issued certain policies of insurance on the husband's life, namely: _________[description of policies]. The wife was the owner and beneficiary of each of those policies. As a part of this property settlement agreement, the wife has assigned ownership of those policies to the children and caused the children to be designated as beneficiaries of them. The husband shall pay all premiums on those policies falling due on or after January 1, 19__ so long as he lives, but may do so by making gifts to the children with which to pay such premiums.

The husband shall pay all gift taxes incident to the transfer of ownership of those policies from the wife to the children, the parties agreeing, however, to file a joint return with respect to them. It is specifically agreed that the provisions contained in this paragraph 5 are for the benefit of the children and not for the benefit of the wife, and shall be enforceable only by the children.

6. Custody of children. _________, being of the age of _________ and _________ being of the age of _________, it is agreed that the custody of each daughter shall be subject to the individual wishes of each daughter.

7. Support of children. The husband has set up a separate trust for each of the children with _________ Trust Company, of _________[city, state] as follows: _________[description of each trust].

The wife agrees that the support of the children after they attain the age of 21 is sufficiently provided for by the 2 trust agreements and that a certified copy of each has been supplied to the wife. The husband agrees to pay for the support, maintenance and education of the children until each attains the age of 21 or sooner dies. The husband further agrees to pay for all college and university education and expenses, including any graduate work, for each of the children after they attain the age of 21 to the extent each desires such college and university training, provided, however, that the husband's obligation in this respect shall terminate as to each as she attains the age of 25 or upon the prior death of the husband. It is further agreed that the husband shall be entitled to claim both of the children as exemptions on his federal and state income tax returns for 19__ and subsequent years and that the wife shall not claim them or either of them as exemptions even though they may be residing with her.

8. Support and alimony for wife—trust as security. The husband, for himself, his heirs, executors, administrators and assigns, agrees to pay to the wife for her support and maintenance, and as alimony in the event of divorce, $_____ per year commencing with the year 19__, in quarterly installments of $_____, to continue for so long as the wife lives, irrespective of whether she remarries or the husband predeceases her; provided, however, that the husband's obligation to make such quarterly payments to the wife shall terminate with the last quarterly payment due before the death of the wife. In order to secure to the wife the due performance by the husband of the above provisions of this clause 8, the husband, as the named trustor, and _________ Trust Company, of _________[city, state], as the named trustee have each executed an agreement of irrevocable trust of this date in form and text identical to that attached, marked "Exhibit A," and by this reference made a part of this agreement, and has deposited with _________ Trust Company, as trustee, the securities described in Schedule A attached to and made a part of the agreement of irrevocable trust, the aggregate value of which is approximately $_____. Husband agrees to furnish to the wife a full executed counterpart of the agreement of irrevocable trust immediately upon receipt by him of the counterpart executed by _________ Trust Company as trustee.

It is understood and agreed that if the trust established pursuant to this clause 8 shall ever be insufficient to pay the quarterly sum of $_____, the husband, if living, or his estate, if deceased shall be obligated to pay it. It is further understood and agreed that it shall be the obligation of the wife to pay all federal and state income taxes consequent on the annual payments aggregating $_____.

9. Taxes. The parties have since their marriage filed joint income tax returns.

(a). The husband represents and warrants to the wife that he has duly paid all income taxes due on such returns; that he does not owe any interest or penalties with respect to them; that no tax deficiency proceeding is pending or threatened against him on them; and that no audit is pending with respect to any such return.

(b). If there is a deficiency assessment on any of the returns, the husband shall give the wife immediate notice in writing. He shall pay the amount ultimately determined to be due, together with interest and penalties, if any, as well as all expenses that may be incurred if he decides to contest the assessment.

(c). The husband shall hold the wife harmless from any claim, damage or expense arising out of the returns and any deficiency assessment in connection with them.

(d). If there is any refund on any of the returns, it shall belong to the husband.

(e). The wife shall join with husband in executing federal and state income tax returns for the year 19__, if he so requests, but the husband shall pay all taxes due on them, and the provisions of paragraphs (b), (c) and (d) of this clause 9 shall be applicable to such returns.

(f). Except for the income taxes which will be payable by the wife on the payments provided for in clause 8 of this agreement, the husband agrees to pay all gift, transfer or other taxes required in any way by or consequent on this agreement or the incorporation of it by reference or otherwise in any decree of divorce entered in any suit between them.

10. Attorney's fees of wife. The counsel fees of the wife which amount to $_____ have been paid simultaneously herewith by the husband to the wife's attorneys _________ with offices at _________[address], who have accepted the same in full payment of their services in the preparation and execution of this agreement and all negotiations prior to it, and in the pending divorce action, through entry of any decree which may be entered in it. This payment shall extinguish all liability of the husband for attorney's fees incurred by the wife.

11. Provisions fair. The wife acknowledges that the provisions made in this agreement for division of property and for her support and maintenance, and for the support, maintenance and education of the children, are fair, adequate and reasonable, and satisfactory to her. Accordingly she accepts the same in lieu of and in full and final settlement and satisfaction of any and all claims and rights that she may have against the husband for her support and maintenance or for alimony in the event of divorce, and for the support, maintenance and education of the children.

12. Wife's covenant. The wife represents and warrants that, except with respect to the obligation for counsel fees referred to in clause 10, the only debt of obligation she has incurred for which he or his estate may be liable, is $_____ due to _________, Certified Public Accountants, _________[address], for services in connection with this agreement. The husband undertakes to, and shall pay or reimburse the wife for the same. So long as he duly performs all his obligations under this agreement, the wife shall not incur any bills, debts or obligations for which he or his estate may be liable, and shall hold the husband in all respects harmless from them.

13. Default: Breach. If the husband fails in the due performance of his obligations under this agreement, the wife shall have the right, at her election, to sue for damages for a breach of this agreement, or to rescind the same in whole or in part and seek such legal remedies, as may be available to her, and reasonable attorney's fees shall be allowed to the wife. Nothing contained in this agreement shall be construed to restrict or impair the wife's right to exercise this election.

14. General release. Except as otherwise expressly provided in this agreement, the parties mutually remise, release and forever discharge each other from any and all actions, suits, debts, claims, demands and obligations, both in law and in equity, which either of them ever have against the other or by reason of any matter, cause, or thing up to the date of the execution of this agreement.

15. Waiver of estate claim. Each party releases and relinquishes any and all rights that he or she may now have or may acquire as spouse under the present or future laws of any jurisdiction (a) to share in the estate of the other party upon the latter's death; and (b) to act as executor or administrator of the other party's estate. This provision is intended to constitute a mutual waiver by the parties to take against each other's last wills under the present or future laws of any jurisdiction.

16. Modification: Waiver. No modification or waiver of any of the terms of this agreement shall be valid unless in writing and signed by both the parties. No waiver of any breach of or default under this agreement shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

17. Divorce. Nothing contained in this agreement shall be construed to bar or prevent the wife from maintaining her pending suit for divorce or the husband from defending the same, or either party from suing for absolute divorce in any competent jurisdiction because of any past or future fault on the other's part. The execution of this agreement shall not be deemed to constitute a waiver or forgiveness by either party of any conduct on the part of the other constituting grounds for divorce. However, the wife shall not, in any such divorce suit, seek or accept any order, judgment or decree providing for alimony, counsel fees or any other provision for her benefit other than as provided in this agreement. She shall request the court that it (a) recognize this agreement with respect to such matters, (b) expressly approve and adopt this agreement, (c) incorporate the same by reference in the judgment or decree granting divorce, and (d) provide in such judgment or decree, to the extent permitted by law, that the court does not reserve the right to modify any of the provisions of such judgment or decree with respect to such matters. Nevertheless, this agreement shall not be merged into such judgment or decree, but shall survive it and be binding and conclusive on the parties.

18. Situs. This agreement shall be governed by the laws of the State of _________.

19. Additional instruments. Each party shall take any and all steps and execute, acknowledge and deliver to the other party any and all further instruments and assurances that the other party may reasonably require for the purpose of giving full force and effect to the provisions of this agreement.

20. Notices. Any and all notices given under this agreement shall be in writing and shall be sent by certified mail, return receipt requested,

Either party may by notice similarly sent, specify a different address for the sending of notices. Each party shall at all times keep the other party informed of his or her place of residence and address, so that they may confer with respect to the children.

21. Entire agreement. This agreement constitutes the entire understanding of the parties. It supersedes any and all prior agreements between them. There are no representations or warranties other than those expressly set forth in this agreement.

22. Binding effect. Except as otherwise stated in this agreement, all provisions of this agreement shall be binding upon the heirs, next of kin, executors and administrators of the parties.