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HomeMy WebLinkAbout13-3216 Chad J. Julius 1 l iJ 0 T j"j P y Jacobson, Julius &McPartland 8150 Derry Street s ' `` A N 9: 5 7 Harrisburg, PA 17111 CU,c. 717.909.5858c 717.909.7788 (facsimile) Counsel for Novation Funding, LLC d/b/a Novation Capital COURT OF COMMON PLEAS OF CUMBERLAND COUNTY TWELFTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION SALLYOANN DARHOWER No. 11(/1 AND NOVATION FUNDING, LLC : d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT RIGHTS PETITION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS Pursuant to 40 §§ 4001-4009 of the Structured Settlement Protection Act(the "Act"), the Pennsylvania Rules of Civil Procedure, and the Cumberland County Local Rules, Petitioners, Sallyann Darhower a/k/a Sallyann C. Darhower("Payee") and Novation Funding, LLC d/b/a Novation Capital ("Transferee" or"Novation Funding"), respectfully submit this Petition for Approval of Transfer of Structured Settlement Payment Rights (this "Petition"): FACTUAL BACKGROUND 1. Pursuant to a Release of All Claims and Structured Settlement Agreement, Payee became entitled to receive Three Hundred Fifty Nine (359) monthly payments of Four Hundred Dollars ($400.00) commencing October 7, 1998 through and including August 7, 2028. In addition, Payee is entitled to receive Thirty One Thousand Nine Hundred Sixty Three Dollars ($31,963.00) as a guaranteed lump-sum payment on July 26, 2014. A true and correct copy of the Release is attached hereto, made part hereof, and marked as "Exhibit A". amP 7� - 2 - L147 OeLT �f 0� 2. In order to fund its obligation to pay the aforementioned payments, Allstate Settlement Corporation,the "Owner"purchased an annuity policy from Allstate Life Insurance Company ("Issuer"). A true and correct copy of the Structured Settlement Agreement and Uniform Qualified Assignment is attached hereto, made part hereof, and marked as "Exhibit B". 3. On or about May 15, 2013, Payee entered into an Agreement for Sale of. Structured Settlement Payments (the "Sale Agreement") with Transferee. A true and correct copy of the Sale Agreement is attached hereto, made part hereof, and marked as "Exhibit C". 4. Pursuant to the Sale Agreement, Payee agreed to transfer, in consideration of payment to her by Transferee of Nineteen Thousand Dollars and Zero Cents ($19,000.00), monthly payments of$400.00 due on or about January 7, 2015 through and including December 7, 2024. See "Exhibit C". 5. The net amount payable to the Payee after deduction of all commissions, fees, costs, expenses, and charges is $19,000.00. 6. Based on the net amount that the Payee will receive from this transaction ($19,000.00) and the amounts and timing of the structured settlement payments that would be assigned, the Payee is, in effect, paying interest at a rate of 15.623% per year. PETITIONERS HAVE MET THE STATUTORY CONDITIONS REQUIRED TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS UNDER PENNSYLVANIA LAW. 7. By this Petition, Payee and Transferee seek this honorable court's approval of the aforementioned transfer of structured settlement payment rights. 8. The transfer complies with each of the requirements of the Act, and does not contravene any federal or state statutes or regulations, or any other applicable law. See 40 P.S. § 4003(a)(1). - 3 - 9. Transferee has agreed to indemnify the Owner and Issuer from all liabilities arising from this petition and compliance or noncompliance with the Act; therefore,pursuant to 40 P.S. §4003(a)(5)(A), consent from the Owner and Issuer are deemed received by Transferee. 10. Pursuant to 40 P. S. § 4003(b), Payee was advised in writing by Transferee to seek independent professional advice regarding the legal and tax implications of the transfer. A true and correct copy of said letter is attached hereto, made part hereof, and marked as "Exhibit D". 11. Pursuant to the Act, Transferee provided Payee with a Disclosure Statements, more than ten days prior to the time Payee incurred an obligation with respect to the Sale Agreement. A true and correct copy of the Disclosure Statements are attached hereto, made part hereof, and marked as "Exhibit E". 12. Pursuant to 40 P.S. §4003(b), Payee was provided the "Important Notice" as required by the Act. See "Exhibit E". 13. After discussions with family and friends, Payee has elected to waive independent professional advice. A true and correct copy of Payee's Waiver of Independent Professional Advice form is attached hereto, made part hereof, and marked as "Exhibit F". 14. The Disclosure Statement sets forth all of the information required by the Act. 15. Payee believes that the transfer is in her best interests and the terms of the Sale Agreement are fair and reasonable. 16. Payee is 48 years old. 17. Payee is separated but has one dependent son—SD. 18. Payee resides at 3 John Drive, Carlisle, PA 17015 19. Payee is not employed and earns approximately Four Hundred Dollars and Zero Cents ($400.00)through unassigned annuity payments. - 4 - 20. Payee needs the funds from this transfer to make necessary home repairs and auto repairs. In addition, Payee will use the funds to pay attorney's fees and expenses related to an anticipated divorce. See Payee's Affidavit in Support of Petition to Transfer Structured Settlement Rights that is attached hereto, made part hereof, and marked as "Exhibit G". 21. Payee has considered other means of raising the funds necessary to meet her needs, but she does not have any property to sell or collateral to borrow against in order to receive a loan from a conventional lender. 22. Furthermore, Payee has discovered that very few banks are willing to lend or provide loans for the financing she needs in the current economic climate. 23. After weighing all of the options available to Payee, including a sale of a lesser amount of the structured settlement amount, Payee determined that selling a portion of her structured settlement payment rights to be the most efficient, and least expensive, way for her to raise the funds that she needs. 24. The funds Payee seeks to transfer to Transferee are funds that are not currently available to the Payee but could greatly benefit her and her son now. 25. Payee previously petitioned this court to transfer her annuity payments. Pursuant to the Final Order of October 25, 2012 docketed at 12-5463 in this honorable court, Payee transferred the lump sum payment of Thirty One Thousand Nine Hundred Sixty Three Dollars ($31,963.00) due on July 26, 2014. A true and correct copy of this honorable court's Final Order of October 25, 2012 is attached hereto and made part hereof as "Exhibit H." 26. Payee received from Novation Capital Twenty Two Thousand Five Hundred Ninety Two Dollars ($22,592.00) and used the funds to pay down her lot rent,pay doctor bills, pay an electric bill, pay a phone/internet bill, and pay past due Taxes on her trailer. - 5 - 27. If this Transfer is approved, Payee will still receive monthly payments of$400.00 until December 7, 2014. Full annuity payments will resume starting January 7, 2025. 28. The Assigned Payments should be remitted to Novation Funding, LLC. 27. Pursuant to the Act, Transferee has given written notice of Novation Funding's address and taxpayer identification number to the Owner and the Issuer. A true and correct copy of said notice is attached hereto, made part hereof, and incorporated as "Exhibit I". 28. Specifically,Novation Funding's address and taxpayer identification number are: Novation Funding, LLC #701798 P.O. Box 102265 Atlanta, GA 30368-2265 Tax ID 46-0662843 30. No judge has ruled on any other matter with regard to the forgoing Petition. The honorable Judge Placey was assigned to the previous petition docketed at 12-5463. 31. Counsel or Novation Funding, LLC d/b/a Novation Capital has contacted all parties involved in this matter and they neither oppose nor concur in this Petition. - 6 - WHEREFORE, Payee and Transferee have met all of the conditions to transfer Payee's structured settlement payment rights, as set forth in the Act, and respectfully request this Honorable Court enter the attached Order of Court, thereby approving the transfer/sale of the structured settlement payment rights outlined infra. Respectfully submitted, JACOBSON, JULIUPe LAND Date: June 3, 2013 Chad J. Julius 8150 Derry St Harrisburg, P Phone: 717.909.5858 FAX: 717.909.7788 Counsel for Novation Funding, LLC d/b/a Novation Capital - 7 - Exhibit A 08/23/2012 17:14 FAX IM 002/007 RELEASE OF ALL CLAIMS THIS INDENTURE WITNESSETH that, in consideration of the sum of Ninety Thousand and 001100 dollars ($90,000.00), receipt whereof is hereby acknowledged, and the purchase of an annuity to make the payments identified in the Structured Settlement Agreement, which is attached hereto and incorporated herein by reference as "Exhibit A, for ourselves and for our heirs, personal representatives and assigns, we do hereby release and forever discharge Progressive Insurance Company, Mountain Laurel Assurance Company, their heirs, representatives and assigns, from any and all claims, demands, damages, costs, expenses, loss of services, actions and causes of action, claims for uninsured or underinsured motorist benefits, or any other claims, arising from any act or occurrence up to the present time and particularly on account of all personal injury, disability, property damage, loss or damages of any kind already sustained or that we may hereafter sustain, arising out of an accident which occurred on the 20th day of November, 1996 at the intersection of Route 2003 and E. Eppley Drive, South Middleton Township, Cumberland County, Pennsylvania. To procure payment of the said sum, we hereby declare that we are more .than 18 years of age; that no representations about the nature and extent of said injuries, disabilities or damages made by any physician, attorney or agent of any party hereby released, nor any representations regarding the nature and extent of legal liability or financial responsibility of _ any of the parties hereby released, have induced me to make this settlement; that in determining said sum there has been taken into consideration not only the ascertained injuries, disabilities and damages, but also the possibility that the injuries sustained may be permanent and progressive and recovery therefrom uncertain and indefinite, so that consequences not now anticipated may result from the said accident. We hereby agree that, as a further consideration and inducement for this compromise settlement, this settlement shall apply to all unknown and unanticipated injuries and damages resulting from said accident, casualty or event; as well as to those now disclosed. We understand that the parties released admit no liability of any sort by reason of said accidents and that said payment and settlement in compromise is made to terminate further controversy respecting all claims for damages that have heretofore asserted or that our personal representatives might hereafter assert because of said accidents. 08/23/2012 17:15 FAX IM003/007 MEN diffaly or t or i nor a tin e.0 u Signed and sealed this day ofnna, , 1998. CAUTION - READ BEFORE SIGNING Witnessed by -/,e-j r�J ) Sailyan C. Darhower (SEAL) o kdL. a rhower, . STATE OF PENNSYLVANIA SS COUNTY OF On this day of 1998, before me personally appeared Sallyann C. Darhower and Donald L. Darhower, Jr., known to be the persons who executed the foregoing instrument, acknowledged that she executed the same as her free act and deed. NOTARY PUBLIC My Commission Expires: t40Tj&P!A1. ZEAL K.�T►lpF,:dF. C. ;i.1tA:1.'1, Nas�ry �;t!I� . Twp•, Yt-Ic :oi:rtSy. P!'n^ Exhibit B 08/23/2012 17:15 FAX la 004/007 STRUCTURED SETTLEMENT AGREEMENT WHEREFORE, THIS --- - DAY OF CGiL. , 1998, THE PARTIES HERETO AGREE AS FOLLOWS: A. PROGRESSIVE INSURANCE COMPANY (hereinafter "Assignor") shall pay the cash sum of Ninety Thousand Dollars ($90,000,00) upon the execution of this Structured Settlement Agreement and the execution of any other required documents. B. SALLYANN C. DARHOWER (hereinafter "Claimant") shall receive Periodic Payments as set forth in the Schedule of Periodic Payments which is attached hereto, made a part hereof-and marked Exhibit"A". C. Any Periodic Payments, designated as guaranteed in the Schedule of Periodic Payments, to be made after the death of Claimant pursuant to the terms of this Structured Settlement Agreement shall be made to such person as shall be designated in the Schedule of Periodic Payments. If no person is so designated, or if the person designated is not living at the time of Claimant's death, such Periodic Payments shall be made to the Estate of the Claimant. D. The Parties hereto acknowledge and agree that Assignor may make a "Qualified Assignment" (hereinafter "Assignment") within the meaning of Sections 104(x)(2) and 130(c) of the Internal Revenue Code of 1986, as amended (hereinafter "the Code") to ALLSTATE SETTLEMENT CORPORATION (hereinafter "Assignee") of its liability to make said Periodic Payments as damages on account of personal injury or sickness in a case involving physical injury or physical sickness. Such Assignment shall be accepted by Claimant without right of rejection and shall completely release and discharge Assignor from such obligations hereunder as are assigned. Claimant recognizes that, in the event of such an Assignment, Assignee shall be the obligor with respect to the obligations assigned, and that all other releases with respect to the Periodic Payments obligation that pertain to the liability of Assignor shall thereupon become final, irrevocable and absolute. If Assignor makes an Assignment of its liability to make said Periodic Payments: 1. Periodic Payments from the Assignee cannot be accelerated, deferred, increased, decreased, or otherwise changed. 2. Claimant has no rights against Assignee greater than those of a general — creditor. 3. Assignee's obligation to Claimant on account of the Assignment is no .i greater than Assignor's obligation immediately preceding the Assignment. Page 1 of 4 08/23/2012 17:16 FAX 005/007 4. Allstate Insurance Company will Issue a Surety Bond that guarantees the Periodic Payment obligations of the Assignee. E. Assignor or its Assignee, in order to fund its obligation to make Periodic Payments, may purchase a "Qualified Funding Asset" within the meaning of Section 130(d) of the Code in the form of a single premium annuity contract from ALLSTATE LIFE INSURANCE COMPANY (hereinafter "Annuity Issuer") with Claimant specifically designated as the "Measuring Life" under said annuity contract. All rights of ownership and control of said annuity contract shall be and remain vested in the Assignor or its Assignee exclusively. Assignor or its Assignee may have Annuity Issuer mail Periodic Payments under any Qualified Funding Asset purchased hereunder directly to Claimant or the Payee specked in the Schedule of Periodic Payments. Such direction of payments shall be solely for Assignor's or its Assignee's convenience and shall not provide the Claimant or any Payee with any rights of ownership or control over the Qualified Funding Asset or against the Annuity Issuer. Claimant shall be responsible for maintaining the currency of her proper mailing address and mortality information to the Assignor or its Assignee. Assignor or its Assignee shall provide counsel for the Claimant with a copy of the annuity contract. F. The obligation of the Assignor or its Assignee with respect to any required Periodic Payment shall be discharged upon the mailing on or before the due date of a valid check in the amount specified to the address of record, or transmitting such payment via electronic funds transfer into an account shown in Assignor's or its Assignee's records as most recently designated by the Claimant. In the event a check for a Periodic Payment is lost or stolen, Assignor or its Assignee will issue a replacement check upon successfully stopping payment of the previous check. G. Neither Assignor nor its Assignee is required to segregate or set aside specific assets to secure the Periodic Payments required herein. No part of the Periodic Payments called for herein is to be subject o. execution or any legal process for any obligation in any manner, nor shall Claimant have the power to sell or mortgage or encumber same, or any part thereof, nor anticipate the same, or any part thereof, by assignment or otherwise. H. It is agreed and understood that Assignor and its Assignee are not responsible to the Claimant for any income or estate tax consequences from this Structured Settlement Agreement. It is further agreed and understood that the Assignor and its Assignee are not responsible for any change in the tax law, by statute, administrative ruling or judicial decision which is subsequent to the date of this Structured Settlement Agreement. Page 2 of 4 08/23/2012 17:16 FAX Q006/007 1. The choice of law governing this Structured Settlement Agreement shall be the law of the Commonwealth of Pennsylvania. IN WITNESS WHEREOF, and intending to be legally bound, the undersigned execute this Structured Settlement Agreement the day and year aforesaid. WITNESS: W. Scott Hennin Esquire Sallya C. Darhower Attorney for Clai ant PROGRESSIVE INSURANCE COMPANY By: Title: Page 3 of 4 08/23/2012 17:16 FAX 121007/007 EXHIBIT"A' S.ghedule of Periodic Payments Payee: Sallyann C. Darhower(DEB 07-26-64) Beneficiary: Donald L. Darhower Jr. (husband) Substitute Beneficiary: 'Matthew N. Stephens, minor child (son) Amount and Timing of Payments: $400.00 paid monthly for 359 months certain and guaranteed, commencing on October 7, 1 998, and concluding on August 7, 2028. $31,963.00 guaranteed lump-sum payment on July 26, 2014. (end of schedule] Sallyann C. Darhower may request in writing that Assignor or its Assignee change the beneficiary designation under this'Agreement, Assignor or its Assignee may do so but will not be liable for any periodic payments made prior to receipt of the request or so soon thereafter that payment could not reasonably be stopped. Page 4 of 4 09/10/2012 11:46 FAX I?I 001 . I Uniform Qualified Assignment "Claimant, Wlyann C. Ilarhower "Assignor" Frogressi Insurance Company i "Assignee" Allstate Settlement Corporation "Annuity Issuer" Allstate Life Insurance Company 'Effective Date" 9 This Agreement is made and entered into by and between 3. The Assignee's liabiiity to make the Periodic the parties hereto as of the Effecthre Date with reference to Payments Is no greater than that of the Assignor the following facts: I Immediately preceding this Agreement. Assignee Is A Claimant has executed a settlement agreement or not required to set aside specific assets to secure the release dated October -8 a set 8 ent r Periodic Payments. The Claimant has no rights (the"Settlement Agreement'9 that provides far the against the Assignee greater than a general creditor. (the nor a make o�tn periodic None of the Periodic Payments may be accelaratod, Assignor period payments to or for deferred,increased or decreased and may not be the benefit of the Cialmarn as started in Addendum anticipated.sold,assigned or encumbered. Na 1 (the"Periodic Payment.0;and 8. The parties desire to affect a I qualified assignment" 4. The obligation assumed by Assignee with respect to I arty required payment shall be discharged upon the within the meaning and subJed to the conditions of malling on or before the due date of a valid check in Section 130(c)of the Internal Revenue Cede of 19tifi the amount specified to the address of record. S. This Agreement shall be governed by and interpreted In accordance with the laws of the NOW,THEREFORE,In consideration of the foiegoing and State of_ Penns77 yaaia other good and valuable consldsiatbn,the panles agree 8. The Assignee may fund the Periodic Payments by as follows: purchasing a"quallfied funding asset"within the { I_ The Assignor hereby assigns and the AssigneeNnB d Section 130(4)at the Code in the form of hereby assumes all of the Ato make an annuity contract issued by the Annuity Issuer. AN ssignor's liability the Periodic Payments. The Assignee assumes no rights ct ownership and remain v t dud►annuity liability to make any payment not specifiid in contract shag be and remain vested In the Assignee Addendum No. 1. exclusively. . The Periodic Payments oonstltute damages on 7. The Assignee may have the Annuhy Issuer send account of personal In)ury�or sickness in a case payments under arty directly funding asses° Involving physical injury or physical sickness within specified I hereunder directly to the payee(s)too the meaning of Sections 104(a)(2)and 130(c)of the a In Addendum No.t. Such direction of Code paymbnts shall be solely for the Assignee's corwenlance and shalt not provide the Claimant or any payee with any rights of ownership or control ' over the"qualified funding asset"or against the Annuity Issuer. 09/10/2012 11:48 FAX 0 001 8, Assignee's liablifty to make the Periodic Payments asset"purchased hereunder to Assignor,and shag Continue without diminution reprdtess of any Assignee's liability for the Periodic Payments shaft bankruptcy or Insolvoncy of the Assignor. teaninate. 0. In the event the Settlement Agreement is declared 10. This Agreement shall be binding upon the respective terminated by a court of law or In the event that representatives.heirs.successors and assigns of the Socilon 00(c)of tho Code has not been satisfied, Claimant,the Assignor and the Assignee and upon this Agreement shall terminate. The Assignee shall any person of entity that may assert arty right then assign ownership of any"qualified funding hereunder or to any of the Periodic Payments. Assignor:~ Pro uess:ive Insurance Company Assignee: All ate Settlement Corporation. . _ By: BY A ed fie se pklmodzed R raulpe Tie Tftle NnnedInUM t. -ra !National Structured Settlements Trade Association LJOA ED.488 09/10/2012 11:50 FAX 001 Addendum No. 1 Description of Periodic Payments Payee: Sallyanr C. Darhower(DOB 07-26-64) i I . Beneficiary: Donald L. Darhower Jr. (husband) Amount and Timing ofd Payments:' $400.00 paid monthly for 359 months certain and guaranteed, commencing on October 7, 1998,and concluding on August 7,2028. !f f $31,563.00 guaranteed lump-sum payment on July 26,2014. [end of schedule] Sallyann C. Darhower may request in wilting that Assignee change the beneficiary i designation under this Agreement. Assignee may do so but will not be liable for any periodic payments made prior to rec:elpt of the request or so soon thereafter that payment could not reasonably be stopped. Initials Assignor: Assignee: ' Printed in USA UOA 50.448 09/10/2012 11:99 FAX 001 WAllstatell, You're in good Bands. August 30, 2012 SALLYANN C DARHQWER 3 JOHN DRIVE CARLISLE PA 170157782 Re: Duplicate Contract Request Annuitant:Sallyann C Darhower Contract#90830816 Dear Sallyann C Darhower: Regarding Your Duplicate Contract Request Per your request,we have enclosed a duplicate copy of your original contract. Please understand that we do not send copies to third parties. However, please keep in mind that the contracts that provide the right to receive your structured settlement annuity payments also exclude you from assigning your right to those payments or creating a security interest in them. Additionally, any assignment or creation of a security interest would materially increase the burden or risk to Allstate in connection with your settlement due to tax issues,administrative costs,and other factors. As a result, Allstate is not waiving any rights in relation to your request,and we will not approve any such assignment or creation of a security interest. Have Questions? Please Contact Us If you have any questions regarding the information in this letter, please call us toll free at 1-800-840- 3870.We want to make sure you have all the information you need regarding your coverage. Thank You We are committed to providing you excellent service. Should you need assistance in the future,please do not hesitate to contact us. Sincerely, vet-�w � Deborah Williams Payout Annuities Enclosure: Copy of Contract Allstate Life Insurance Company Payout Annuities—InForce Processing PO Box 660191 Was TX 75266-0191 T 800.840.3870 F 877.690.4092 09/10/2012 11:45 FAX Q001 w �t4 ALLSTATE YNSU NC 'l COMPAN j HO1Y SLOJTICE•NORTHBROOk.tis,1141ols (i:* OCI:ItiSI it1Nc't=Ctsrtt'11?+1'.1iliRl l�CAlll:tiAt,tfiT�1T} f1R TM7.COMPANY) KNQAV AI.L ht}%BY T1111-HE PM;E%TS:Thal jQ$dAt lrttutA=+Company,a cwpor.tion ca rWiUA uwd ex64ing urKkt the laws eflhe SWt of 111wMii ud hating i4�principal otfroe at Albute Mom,Xorshh"ook,Ccu:ry 61 Coat:,Sratc of lililb0hC dog!"cehy apiwira- ♦l.......do$*...... 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All palkias of itulrrmm imcd by dig Con"ay shall comply wivb Ow laws of the FcRx liw tom+,tariuwks a Jrrrisdielions in wthiel"d"e palicks at 6w t& All bmdt,aadutakirlgtr,aerlifttytea of inwru"ot,cover fades.tam�"itat"aea.otsK"set�aC 4Y�dipulatiat"t,vasiaw>4 owoatta of atr!aia6, et~mm A041piug"or sgranssont;wrs y and w#ueey&6stimms And ArwAxm&urAavwT wg undoulcing;and all oeh&iwuho sa+rs pmuzn +E to the i*eawnce boa nest st oldw Carr>,mV.tball be.validly exavAc0 WFw o siVW oaf behalf of Ow C4otpany by(1)Vw Chairn".n of the Bo w4.(2)1be Ptmidem,(d)ow Viol Proddmv or Aniaam Wood Pzesldvr,rr(4)any od"w adTixr,emple4w.app,a atttwswy-in-fam st""haiud in WhiAS to w sip"by Use Chainm*raw 8oud,the PtaidcAl.a any Via 14tsidtrft All pt"tiva"of imurwtoa d"sll bear the sirwurc of dw Fna<idbtt or a Sceik r'Vioe he"Onk and of dw Satrtsrry.vdwdc siqutUm may be fscrimiks,sad dull be oouMcrsignod by s duly Gee.sad raidcet sett when ao rogt"ked by law ar ttgulatien A faaindk eigAaturt ad a fort"nr ofTim thall ba of the WK validity as"of an erissing officer. The affirronZ of the CwNwty's$"I OW1 twt be emewry to the valid sxeerution of any inwlt"TIt1N but the Scucwy,any Am:tmd Sow+tWy.w any otfw&, ur"pivya,agp"t,ar anormy4n-fad authorized id writing so sod*by the Setfttwy,any Am istad Santwy.or any Vial prcis dcnt.may aflis else Coapany's Sts! tharlo. This Power of Atwnry is tioW end seated by fatximiie undo►and by autho"ily attics foliawina Remlodm voted by the Board of Dirattort of Alhu&c Ird4 t ; Cant any at a med6ji 40y aallad and held an the i e day of Deam,ber i m. mE IT Ps-SOLVE4.Ibm the signs om of the Avldmtt,IM Sowaary,a"ry'Via I'VetWas.or any A&IdVtt Viet Nesidau,arfd tht"d ofdW CVnVwgy may be al ind by favcimile io&W pumer or■naruy er to any ontif"a k ttlm6 l;dmvio appamlbtg wormyPirrfad tar the:purpose of eamaing and Adding bonds and usdatak;np and cdw+4ri►inge obligatory in tie judum dw*4 and any suth power of mcnw'y ea mtifteate to anoaaad by and bearing w&fabin ile apunw4 or s Vp4uvL and t`aa6ule seal tdtall be valid and binding upon the Cormpaoy.ar4 ie paejCU sr,shall be Valid and binding in the Ttrttaa with tt*W to*atybaad or undwtaking w eU"ct earning obligatory n the nslufe ihww(le whirl"h is Anadnad for mob prwpw- 1N WTitJISS WHEREt?F,ALLSTAI E INSCI Y twlR eavuo d thus prsatYds to be aiptod by its vial prnident gad Corttsutler toed its Car1"art"le final to br ltrado afiiaad oe the 27 b dayaf v 1t ;.•'!� ALLSTATE INSUPAKCE COWANY Fes:cp a t.� u Vice Ptv sidatt and S ceelralior 'STATE OF ILLANOiS as. s a;' COUNTY OF4000K } • tbwkL, .>L a Notary TubfiG do pvaomlly kno"to be do acme person vfiw is Wife 1?smid d and Como1kr oh1"e Allli CATS INSURAWZ(70MPANY,c oxp mdka afdw Sale of Ulinaa,wbombed b tl,a famsgaing bWn=ML appMW bdone Itta an the 2'M daytf1mimary.A.fR 19M in 0 edam gad sEt4userw3W d did be b dog 4bermma**akdhmiuA 4pmA sealed soot Adivwed the said kowu to zs o the Rea and vabusWy ate of mid oopondw sad its 14 own 6a a"td vrtlw%my act for watt NO ptstpovs If c sd A%A y OFFICIAL BENNIE L BURTON A Myaormi>a�iorsexpires -Frlb"vidy14.2001_ .... NOTii WPCI m w mi Of ILumm W COMM M1014 EXPM9.102/141�D} CWTIMCAT1 ON L dw ft&m m V"ee 1Metd4wtl sad Qmuaw afAtis A-M DUMW;M COIAPANY,Db MM CERTIFY the the f4tggaie4 rowcaf A0%my h am is i1rG foes and ttfa4, •.j.� signed teed t"KW a Nanh6wak.111600is this 2M 4W afJatwary AM,IM Ua pit :"�;��f�"� �� Y.oe Presided sad C:odrdlof Ij,�yp�,S tt6litA..ii " 09/10/2012 11:43 FAX Q001 i A!lsto `e' ELI TA-ri:v;,to!KA,`;Ct.COsrrv.l r�c���l:ssll'KI:,"mKI SK(M.11.1'Now Mastcr Bond Number; 05116 301159 Obligco: sally ant C. I arhoyer 6 . Datc of Qualifled AssigninJ1311 Sept 8, 1995 _ Know all then by theso present,that we.ALLSTATE SETTLEMENT COW"ORATION,a Nebraska rogation,as Principal,and ALLSTATE INSURANCE,Cf)htFANY,an Illinois(corporation,as Surerv,arc held and firmly bound lmewxkr 10 the Obligee to"c outain scheduled pa)rnettts dire from itte Priodpal to the Obligoe under the terms of a Qualified Assignment,a cop�of which is attached hereto and bcwntes a part Ise eO&for which curt,well and truly to be paid,-At bind ourselves.our heirs,exo utors,administrators,suocessors and assigns,jointly and severally,firmly by these Presents. Tltc condition of this obligation is such,that: VAIEREA5,the Principal has,assumed,wider a Qualified Assignine,n,the obligation to make ccrUin sclhcdulcd payments to the Obligoc.and ; ti4'IiEREAS,tho Principal's assumption of said paynnent obligation has been consented to by tltt Obiigcc and bas been auamplished within the meaVing or Section 130(1)of the Internal Re%-tout Code of 1986,as amended,by means of afortsaid Qualifrcd Assignment,and WHEREAS,the Principal bas purchased a qualified funding Met within the moaning of Section I30(d)of the Code,the procA*4s of which will apply to discharge said scheduled payment ment obligation to the Obligee. MOW,TUERE ORE.if the Principal shall fail to male any scheduled payrnutts to the Obligee as assumed under said QUALIRED ASSIGI'NMENT,�(hen the Surety shall make such schedulvil Mment or payments within 10 days after receipt of notice by the Obligoo. ]Notice to the Surety shall be by certified or registered mail sent to Allstate Insurance Compaq.3075 Sanders 13rid it Suite H2A,Northbrook,IL 60062-7127. Any diRM4 v,Yith respect to the interpretation of this bond or pedortitance of the obligation set forth herein shall be guvcrr M by theta%%%of the State of Nebraska. 1 4 �$ Sealed with our serils,and date(t this 10tht day of Tw r _ .l9 ALLSTATE?SETTLEMENT CORPORK170N 8y �� (T.je) ALLSTATE INSUlt1tt�+}' ' Countersignod: t' .....S (^ i` t +$y .• By Jonathan A_Foremast (Attorney-in-Fact) I (Ft31X1S-t9 i _ 09/10/2012 11:41 FAX U001 W l tat Syr You're in good hands. Allstate Advanced Funding Exchange@ As a service to our payees,Allstate Settlement Corporation("Allstate Settlement"), in certain circumstances,will consider permitting an arrangement whereby a structured settlement payee may obtain an Immediate lump sum payment(based on a specified discount rate) in exchange for the rights to future guaranteed structured settlement payments(hereinafter,an"Advanced Funding Exchange"). Although structured settlement agreements are designed to provide future payments on a fixed schedule, many payees decide that,due to unforeseen financial circumstances,an Advanced Funding Exchange may be in their best interests or in the best interests of their dependents. Consistent with the Internal Revenue Code Section 5891,and related state statutes,only those Advanced Funding Exchanges that are approved by a court or applicable administrative authority are permitted.An Advanced Funding Exchange is only an option in states that have a structured settlement transfer act(not all states qualify).An Advanced Funding Exchange requires the payee to enter into a contractual relationship with Allstate Settlement.Allstate Settlement will consider each Advanced Funding Exchange request on a case-by-case basis and reserves the right to decline any request. Allstate Settlement is here to provide you with excellent service throughout this process. For more information on this service, please contact us toll-free at 1-866-739-2318 or you can reach us via email at AFEUnit@Alistate.com.We look forward to hearing from you. Allstate Settlement Corporation Allstate Life Insurance Company—Payout Annuities—InForce Processing PO Box O6O191DaI1aSTX75266-019j T800.840.3070 F877.690.4092 09/10/2012 11:52 FAX X1001 i ,Allstate Life Insurance Company A Stock Company-Home Office Address: Northbrook,Illinois 60062 Single Premium Immediate Certain Annuity CONTRACT This contract is issued to Allstate Settlement Corporation(called"ASC")in consideration of the application,a copy of which is attached,and the payment of the single premium, The contract and the application are the entire contact. All statements made in the application are representations and not warranties. No statement will be used by us in defense of a claim,or to void this contract unless it is in the signed application. Only our officers may change this contract or waive a,right or requirement. No agent may do this. Allstate Life Insurance Com{aany(called"we"or"us")will make the payments shown on Page 3 to the Measuring Life or other payee designated by ASC,provided that the Measuring Life.is alive. In addition,if the Measuring Life is not living„any payments shown on Page 3 will be made to the beneficiary. # This contract stops when all payments have been made. RIGHT TO CANCEL—IfIASC is not satisfied with this contract,it may be vended by returning it to Allstate Life Insurance Company,Northbrook,Illinois 60062,or our agent. ASC must notify us and return the policy by midnight of the 10'day after ASC receives it, Notice given by mail is effective on' being postmarked,properly addressed and postage prepaid. We will return the single premium,less any payments already made,within 10 days after we receive the policy and notice. This is a legal contract betwe ` en ASC and us. READ THIS POLICY CAREFULLY_ COPY E Signed for ALLSTATE L. FE INSURANCE co PANY at our Home Office in Northbrook, Illinois. Secret ry President Page 1 LU3406 09/10/2012 11:54 FAX 01001 TABLE OF CONTEN'D'S Contract...................................................... 1 Issue))ate ............... 3 Rightto Cancel ........................................... 1 Beneficiary ...............................................4 Schedule of Payments...............................3 Incontestability ......... .......................... 4 Measuring Life Information.......................3 Minimum Values ......................................4 Contract Number....I............... Non-Participating ...............................-.4 Owner .....................3 Non-Assignable ........................................ 4 Page 2 09/10/2012 11:56 FAX 001 SCHEDULE OF PAYMENTS I DAJE - AMOYST OCT 7, 1998 4 400.00 MONTHLY THROUGH AUG 7, 2028 JUL 26, 2024 $ 31963.00 i ,. NAME SEX DATE OF .BIRTH MEASURING LIFE: SALLYANN C. DARHOWER FEMALE JUL 26, 1964 FIRST PAYMENT: 0 400.00 ON OCT 7, 1998 LAST PAYMENT: 0 400.00 ON AUG 7, 2028 CONTRACT NUMBER: 90830816 OWNER: ALLSTATE SETTLEMENT CORP ISSUE DATES SEP 8, 19,9a PAGE 3 POLICY DATA PAGE FOR LU3406 09/10/2012 11:58 FAX [a 001 r ]REN]&pICIARy-LUnless changed by ASC,the beneficiary is as mined in the applicatioiL If there is no beneficiary named or living,the beneficiary,is the Measuring Life's estate, For purposes of this se6 Lion,"living"shall mean living on the earlier of, 1, The day we receive due proof of the Measuring Life's death;or 2. The 1 Sd'day past the Measuring Life's death. Unless ASC statesiotherwise by irrevocably naming a beneficiary, ASC may change the beneficiary while the Measuring Life is alive. A change must be made to us in writing. The change must be acceptable to us. Once we accept the change,it takes effect as of the day ASC signed the request` Each change is subject to any payment we make or action we take before we accept it. Any payments due a beneCcia.y will be paid on their specified due dates,and will not be commuted or paid;in a lump sum. " i TNC'ONTEST AHi LYTY—We may not contest this contract after it is issued. MINIMUM VALUES--Tine payments provided by this contract are not less than the minimum values required by the state in which this contract is sold. NON-PARTICIPATING--This contract does not pay dividends. I NON-,ASSIGNABLE---Payments may not be anticipated,assigned or pledged as collateral. Payment elates andiamounts may not be chanS4 either to provide for earlier payment or longer deferral. Ilse contract has no cash surrender or policy loan value. t So far as the law allows,all payments to any person named by ASC to receive them are exempt from that person's creditors,debts and contracts,and from seizure or attachment by court order or other legal process. i i Page 4 09/10/2012 11:57 FAX [j001 AL.L,S LIFE INSURANCE OMPANY Horne Office: Northbrook,unnois 60002 Application for Single Premium Immediate Annuity c 1. Measuring life Full Name: __Sallyann C. Darhowe Phone:(7171 243--9557 Address: 65 Betty Nelson Court, Carlisle, PA 17013 Social Security Na.: 9856 i Date of Birth: 07-2,6-64 Sex* Female I Joint Measuring Life(if applicable) Full Name: Phone:( ) Address, j Social Security No.: Date of Birth: Sex: Relationship to Measuring Life: , 3. Owner Full Name: Allstate Settlement Corporation °ASO Phone'( ) Address: 4. Payee(will be Measuring life if left blank) Full Name: Phone:(' ) Address: Relationship to Measuring life: , S. Payment Information (Submit proof of age for life or joint life payments.) Start Type(e.g., certalln, life, Number of Frequency of Date lump sum,iolnt) Amount Payments Payments 10-07-98 Certain - $400.00 359 Monthly 07-26-14 Lump-sum $31,963.00 1 1 a. Geneftlary(will be !:state of Measuring Life If left blank) Full Name: �lonald _L. D�rhower Jr. Phone:( 7171 243-9557 } Address: 65 Betty Nelson 11Court, Carlisle, PA 17013 Social Security No.: _2470 Relationship to Measuring Llfe: husband 7. Premium valuable consideration The Applicant represents that all statements and answers on this Application are true to the best of his or her knowledge and belief and completely r co a herein. f Applicant: ASC by owner signature&Title LR$77 t 1 Exhibit C Novation Capital Agreement for Sale of Structured Settlement Payments Sallyann Darhower This is an Agreement between Sallyann Darhower (referred to as "you" in this Agreement) and Novation Funding, LLC dba Novation Capital ("Novation").This Agreement sets forth the terms of a legally binding contract in which you agree to sell structured settlement payments to Novation. This Agreement and all its terms are subject to the approval of a court, which, by law, must approve the Agreement before it is carried out. Background A. Some time ago, you (or someone acting for you) entered into a Settlement Agreement. You have told Novation that you have the right to receive certain payments due under that Settlement Agreement. B. In connection with that Settlement Agreement, an insurance company agreed to make the settlement payments now due to you. In turn, that insurance company arranged for the purchase of an Annuity Policy so that certain settlement payments would be made .on an agreed schedule. C. Because the settlement payments are funded by an annuity, your risk of not getting paid by the insurance company is low. However, those settlement payments will be made in the future, on a schedule that may no longer meet your needs. D. Accordingly, and after considering other ways of raising current cash, you have decided that you want to sell some (or all) of your settlement payments. Simply stated, you now want to give up the right to receive certain future settlement payments in a trade for a lump-sum cash payment from Novation. THEREFORE: 1. The Sale: You agree to sell and Novation agrees to buy the settlement payments identified as the "Assigned Payments" at the very end of this Agreement. In exchange, Novation agrees to pay you (and you agree to accept) cash in the amount of the Purchase Price stated at the very end of this Agreement. 2. Payment to You: You can choose to be paid by wire transfer or by check. If you elect to be paid by some other means (for example, by "money order") any charges imposed by the bank or money transfer service will be deducted from your purchase price. 3. Court Approval: A court must approve your sale of payments before the Assigned Payments can be transferred and monies will be paid to you. You understand and agree that you will not be paid by Novation until the company that is making the settlement payments has acknowledged receipt of a final court order that: (a) cannot be appealed; (b) directs the Annuity Owner and Issuer to make the Assigned Payments to Novation (or to an entity named by Novation); and (c) makes all findings required by applicable state and federal law. Page 1 in0�i�iii��IINIIIIIoIIIIO�IInI�I01111dInI�IIIV�I�I�dulal�lllnl�llllall�9�l�ll@ iiiu0iii2-u�iiui).i�Ai��i�i�iii�iNn Reserved nii�ii�u Novation Capital e 4. Best Efforts and Working Together: Novation agrees to use its best efforts to obtain the required court approval in an uncontested court proceeding. You agree to cooperate with Novation in that effort and to do all things reasonably necessary to cooperate With Novation in its effort to complete this transaction. Among other things, you agree to promptly provide Novation with complete and legible copies of the Settlement Agreement and the Annuity, as amended and now in effect, and execute such documents which may be necessary to obtain court approval of your sale to Novation. 5. We Rely Upon What You Tell Us: All facts or statements in this Agreement (including any attachments to this Agreement) regarding you, your situation, the payments you are receiving, and the payments you are now selling are based upon documents and information that you have provided to Novation. In entering into this Agreement, Novation is relying upon the truth of the statements you have made and the documents you have provided. 6. Your Money, Your Decision: You have told us that you are 18 years of age or older, are of sound mind, not under the influence of drugs or alcohol, and understand and agree to the terms of this Agreement. Further,you agree that no one has forced you to sign this Agreement nor has anyone promised you anything other than what is stated in this Agreement in an effort to persuade you to sign it. 7. Facts About Your Payments: Novation must determine whether anyone-other than you is claiming an interest in the structured settlement payments you are selling us. Unless you tell us in writing otherwise,we will assume: (a) You alone have the right to receive the Structured Settlement payments that you are now selling and the payments are guaranteed, not life contingent; (b) Neither you nor anyone else has sold or pledged or otherwise transferred the Assigned Payments nor attempted to do so; (c) No other person (or business) claims a lien, right, title, or interest of any kind in the Assigned Payments; (d) You are not in bankruptcy; (e) You are "up to date" in your child support (if any), alimony (if any), and tax payments; (f) There are no unsatisfied judgments or liens against you; -(g) No lawsuit has been filed or threatened against you or your assets; and (h) As far as you know, there is no dispute about your right to receive the payments under the Settlement Agreement and no one has challenged or threatened to challenge your right to receive those payments. Page 2 Novation Fundin LLC dba Novation Caitat(2002-20131.All Ri nits Reserved s Novation Capital (i) The payments you are now selling are scheduled to be paid to You (or your heirs, beneficiaries, or assigns) whether or not you or some other person is still living at the time of payment. If one or more of these statements becomes untrue before the Purchase Price is paid to you, you agree to notify Novation in writing. In all events, you authorize Novation to conduct credit checks and judgment and lien searches to confirm that there are no claims against the Assigned Payments. 8. Facts About Your Life Situation: You have told us that neither you nor those who depend on you rely upon the payments you are now selling for food, shelter, medical care, or the other necessities of life. You understand that you may be asked to set forth additional facts about your circumstances and life situation so that the court can better understand your reasons for wanting to sell some or all of your structured settlement payments. Your name, date of birth, marital status, current and former addresses, social security number, and other personal information is fully and truthfully set forth on the application you provided to Novation. Your social security number will not be revealed by us In any public filings. 9. Certain Debts Paid: Many people choose to sell future settlement payments because they want to clear up their debts, pay off liens, and bring their past due obligations current. If you owe back taxes, past due child support, or have judgments or liens recorded against you or your assets, Novation will review any such obligations with you and determine which debts, claims, or liabilities must be paid at the closing. If it is necessary to pay certain debts before funds are released to you, Novation will pay those debts for your account and deduct the payment from your Purchase Price. 10. Other Possible Deductions from the Purchase Price: If some of the payments being sold to Novation under this contract are paid over to you (and not Novation) before the Purchase Price is paid to you, the payments received by you (rather than Novation) will be deducted "dollar for dollar" from the Purchase Price. 11. "Holdbacks" While Address Change Is Processed: The insurer making payments may take several months to process the change. Accordingly, Novation may withhold from the Purchase Price: (a) the sum of assigned payments, if any, due to be received within three to six months following the closing; or (b) 107o of the Purchase Price; or (c) $1,000.00, whichever is greater, until the insurer begins to re-direct payments to Novation (or other parties) pursuant to the court's order or the insurer making the payments confirms in writing the change of payee for the Assigned Payments. When the Assigned Payments begin to be received by Novation (or other third party designated in the order) or the insurer confirms in writing the change of payee, any amounts withheld will be paid over to you, less any monies paid to you in error while the insurance company was processing the address change. 12. Misrouted Payments: On rare occasions, even after a court has approved a sale, an Assigned Payment may be misrouted or mislabeled by the insurance company. In the Page 3 Co ri t,Novation Fundin LLC dba Novation UAW(2002-2013).All Ri is Reserved Novation Capital event that payments you have sold to Novation are instead sent to you, you agree to hold those payments in trust and immediately turn them over to Novation. Similarly, in the event that payments you have sold to Novation are sent to Novation but made payable to you, you hereby grant Novation an irrevocable limited "power of attorney" authorizing Novation to cash any such checks and deposit them to Novation's collection account. In some cases, if the Assigned Payments only constitute a portion of your structured settlement payments, the court or your insurance company may require that the entire structured settlement payment be paid to Novation and Novation remit the unassigned portion of the structured settlement payment back to you. If such a circumstance arises in your transaction, you agree to this payment servicing arrangement. 13. Grant of Security Interest: You intend to sell and Novation intends to buy your rights in and to the "Assigned Payments. " Subject to the court's approval of the sale, you grant to Novation a "first priority security interest" in the Assigned Payments. Accordingly, you agree that Novation shall have all of the rights of a secured party under the Uniform Commercial Code and may exercise the remedies of a secured party. 14. Change of Beneficiary: The payments you are selling (the Assigned Payments) are to be paid to Novation in accordance with a set timetable — even if you are no longer living at the time the payments come due. To confirm that, you will sign and deliver to Novation Attached Exhibit B which names your estate as the sole beneficiary of the Assigned Payments under the Annuity during the term of the Assigned Payments. In addition and to similar effect, this Agreement is and shall be deemed a "Testamentary Agreement" in which you agree, for all time, to name Novation or its assigns as the party that will inherit the Assigned Payments in the event of your death. You cannot and will not amend, modify, alter or otherwise change the beneficiary designation or this Testamentary Agreement without Novation's express prior written consent. 15. Agreement Binding on You and Your Successors: You agree that this Agreement in its entirety, including the Testamentary Agreement set forth in the immediately preceding paragraph and the beneficiary designation attached as Exhibit B, shall be binding upon you, your heirs, successors, assigns, and any person claiming by, through, or under you. 16. You Want to Sell Your Payments: Many Structured Settlements were set up before enactment of the laws that now allow people to sell their structured settlement payment rights. Accordingly, your Structured Settlement Agreement may contain one or more provisions that suggest that your payment rights cannot be sold. To the extent that your Settlement Agreement or the Annuity contains such a provision that purports to restrict or limit your ability to sell your payments, you hereby waive and release any such restriction. Consistent with the forgoing, you also agree that you will never claim or contend that the payments you are now selling were not transferable. 17. Novation Can Assign: Novation and/or its designated assignee may pledge or assign all or any portion of its right, title, and interest in and to this Agreement, the Settlement Agreement, the Annuity, and the Assigned Payments, without your further consent. If Page 4 iCv�i�ui I�ht,IINoIBIItiIIIIIIFIIunInIImI�IIIL�I�IIIIIIIaI�Novation�118111iIIIII1Ila�1�198Ull1ll��l�All nIts��Reserved�ll V��I i Novation Capital and when that happens, all references to Novation in this Agreement shall be read and understood to refer to Novation's immediate or subsequent assigns. 18. This is a Sale, Not a Loan: You are selling your payment rights. You agree that this is not a loan. If, from any possible construction of any document, it were determined that this Agreement somehow calls for the payment of "interest" and if such interest would be payable in excess of the Maximum Lawful Rate permitted by applicable laws, any such construction shall be automatically reformed and the interest payable shall be automatically reduced to the maximum lawful rate, without the necessity of execution of any amendment of new document. 19. What Happens If Court or Other Authority Says "No:" It is always possible that someone who has not signed this Agreement (such as your insurance company) could try and oppose the request for court approval. That could result in unanticipated expense and delay. You understand and agree that if someone opposes or contests the request for court approval, Novation may choose to cancel this contract without further obligation. Similarly, if someone who did not sign this Agreement (such as an insurance company) appeals a court's approval, you agree that Novation may choose to cancel the transaction rather than incur the expense and delay of litigation. If a nationally recognized rating agency (such as Standard & Poor's, Moody's, or Fitch ) should "downgrade" or otherwise take adverse rating action either with respect to the annuity issuer making the structured settlement payments or with respect to structured settlement payments assigned pursuant to Court order by residents of your state, Novation may choose to cancel this contract without further obligation. In the vast majority of cases involving structured settlement transfers, Novation wins court approval without undue expense or delay. But if, for some reason, the court does not approve the sale, or if Novation elects to cancel in light of the opposition of some other person or in response to rating agency action, no payments will be transferred from you, no monies will be paid to you, you will have no further obligation to Novation, and Novation will have no further obligation to you. 20. General Provisions: The headings in this Agreement are to make it easier to read and shall not affect the meaning of this Agreement. This Agreement and the attached exhibits make up the entire agreement between you and Novation and replace all prior arrangements and understandings, written or spoken. This Agreement can only be changed, replaced, or canceled by a writing signed by you and Novation. If any part of this Agreement is ever held to be to invalid under any applicable law, that provision shall be deemed modified to the extent necessary to render it enforceable. If modification is not possible, then the provision shall be severed and the validity of the remaining provisions shall not be affected. In the event of a lawsuit to enforce this Agreement, the unsuccessful party shall pay to the successful party all costs and expenses, including, without limitation, actual attorneys' fees, expended or incurred. Any dispute under this Agreement shall be resolved in a court in the state where you are now residing, under the laws of that state. All of the terms and conditions of this Agreement shall be binding on and be enforceable by you and Novation and you and Novation's respective heirs, successors and assigns. All notices shall be in writing and shall be deemed to have been duly given if mailed first class, postage prepaid, certified Page 5 iCiO�i�iiift,ii Novation ui�anidiiii�iiiii�iiiiCiiiiiiai�Novation uiiii�iliuli(20�ii2i-e0 ini�iui�Alil�i�iifiiiits��iu�iiirveiii�ii��i Novation Capital a United States mail, return receipt requested. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties hereto and delivered to the other parties, it being understood that all parties need not sign the same counterpart thereof. 21. The Payments You Are Selling: The payments you are selling and their amount(s) and due dates are described on Exhibit "A". These payments you are selling are referred to as the "Assigned Payments". 22. Purchase Price: Novation has agreed to pay you (and you have agreed to accept) the sum stated on Exhibit "A" as the "Purchase Price" for the Assigned Payments. You acknowledge that Novation has provided a written Disclosure Statement to you prior to your signing this Agreement as required by applicable state and federal law. 23. Independent Advisor: By signing this Agreement below, you acknowledge that Novation has advised you In writing to seek, and you have had the opportunity to seek, independent legal or other expert advice regarding the legal, financial, and tax consequences of this Agreement. By signing below, you agree to be bound by all of the terms of this Agreement. SELLER Novation Funding, LLC dba Novation Capital By: Betty Castellanos D Sally arhower Its: Operations Manager The foregoing ins jry -M ment was a k ledaed before me this 15�- ay of A 2013 by the above signed,who is either(n ersonally known to me or (0) who has produced MdEN UCH I- as identification. NOTARIAL IAL SEAL JAM R TAYLOR C-1 OTARIAL SEAL WILLIAM R TAYLOR h�fcaijsignaf&e�— Notary Public SPRING COUNTY A Notary Public in and or the State of pll� SPRING TVVR,PERRY COU14TY Printed Name: 0 1 LLA My commission Expires Jan 27,2014 Commission Expires<Tft) '057 M Page 6 C II I Novation Fund' LLC dba Novatio 11 Novation Capital Exhibit "A" to Agreement for Sale of Structured Settlement Payments The Structured Settlement Payments you have agreed to sell to Novation Capital are: Monthly payments of $400.00 due on or about January 7, 2015 through and including December 7, 2024 The Purchase Price you have agreed to accept in exchange for the sale of the Structured Settlement Payments stated above is: S 19,000.00 SELLER Sallyan arhower Copyright,Novation Funding,LLC dba Novation Capital(2002-2013).All Rights Reserved ��N�II II I I�IN N I�v II II I SIN II I I NCI II MINI II N I ICI�I N I Na�I I I���I I IINI N SIN CBI III�I�I ICI ICI II�� Exhibit D f N OVATI O N CAPITAL a Novation Ventures Company 1641 Worthington Road,Suite 410 West Palm Beach, Florida 33409 (800)747-6472 NovationCap.com Via Email May 15, 2013 Ms. Sallyann Darhower 3 John Drive Carlisle, PA 17015-7782 Re: Disclosure Statement Dear Ms. Darhower: Please find enclosed the Disclosure Statement that Novation must provide to you not less than ten (10) days prior to you incurring an obligation to transfer your structured settlement payments. Please read and sign the enclosed document. Novation recommends that you seek the advice of an attorney or licensed financial professional (example: certified public account or certified financial planner). If you have any questions or concerns, please do not hesitate to contact me. Sincerely, Robert Ton Funding Executive Novation Funding, LLC dba Novation Capital Enclosure Exhibit E DISCLOSURE STATEMENT NAME: Sallyann Darhower 1. DESCRIPTION OF TRANSFERRED PAYMENTS I am transferring the following structured settlement payments: Monthly payments of $400.00 due on or about January 7, 2015 through and including December 7, 2024 The aggregate total of these payments is $48,000.00. 2. GROSS ADVANCE AMOUNT In exchange for these payments, I will receive a gross amount of $19,000.00. Funding will not occur until all conditions required under the transfer agreement have occurred. 3. TRANSFER EXPENSES F understand that the following fees and expenses will be deducted from the Gross Advance Amount payable to me or my account: Legal Fees best estimate $0.00 Broker Commission $0.00 Charges $0.00 Fees $0.00 Costs $0.00 Expenses $0.00 4. NET ADVANCE AMOUNT I understand that the Gross Advance Amount, as described above, shall be reduced by the Transfer Expenses described above resulting in the Net Advance Amount below: Net Advance Amount 1 $19,000.00 I understand that I will receive this Net Advance Amount, minus (a)any advances made to me or on my behalf by Novation for notary fees, for cash advances related to attorney fees to seek court approval; and IIIIIIII�NI I�IIIIIIN�DU IItiIIIIIINIFuIIIIIiI�IILIIIINIIIIbIMIIIINvItIoIVVIIII�IIINIIN�200IINlllll�a�l @II�IIIIUIplllllpll� Reserved (b)any amounts necessary to satisfy any outstanding liens, judgments, and credit-based obligations, pursuant to the terms of the transfer agreement. 5. QUOTIENT The net amount that you will receive from us in exchange for your future structured settlement payment(s) represents 42.82 % of the estimated current value of the payments based upon the discounted value using the applicable federal rate. 6. DISCOUNTED PRESENT VALUE This provides the calculation of the estimated current value of the transferred structured settlement payments under federal standards for valuing annuities. The Federal Rate that is used to make this calculation is provided below in addition to the Discounted Present Value. Federal Rate used to 1.20% calculate the Discount Present Value Discount Present Value $44,370.89 7. PENALTY IN THE EVENT OF BREACH OF CONTRACT The amount of any penalty or liquidated damages, inclusive of penalties, payable by me in the event 1 breach the transfer agreement is zero. 8. You will not incur any obligation under a transfer agreement until the tenth (10 ) day after you receive this disclosure statement. IMPORTANT NOTICE TO PENNSYLVANIA RESIDENTS ONLY: You are strongly urged to consult with an attorney who can advise you of the potential tax consequences of this transaction. Sal nn Darhower ation Ca IIIIoI� �II ht,IIIIIIIQIItiIIIIIIIIQw111d10� ll�lllClll IIIIIIaIQIAIIIIIII���II il�ll��ll lll� Reserved a DISCLOSURE STATEMENT NAME: Sall ann Darhower Pursuant to the law governing the transfer of structured settlement payments, below are the required disclosures that must be made by Novation Funding, LLC dba Novation Capital ("Novation") 1. DESCRIPTION OF TRANSFERRED PAYMENTS You are interested and have agreed to transfer the following structured settlement payments to Novation in exchange for a lump sum: Monthly payments of $400.00 due on or about January 7, 2015 through and including December 7, 2024 The aggregate total of these payments is $48,000.00. 2. GROSS ADVANCE AMOUNT In exchange for these payments, I will receive a gross amount of $19,000.00. Funding will not occur until all conditions required under the transfer agreement have occurred. 3. TRANSFER EXPENSES I understand that the following fees and expenses will be deducted from the Gross Advance Amount payable to me or my account: Legal Fees best estimate $0.00 Broker Commission $0.00 Service Charges $0.00 A lication Fees $0.00 Processing Fees $0.00 Closing Costs $0.00 Filing Fees $0.00 Referral Fees $0.00 iiii�� iuI lji oiuoiiii��iiii�uNi��ii i�iiii iiiiibii�i�giuiii ini�Iai�iitifliii2uiiiiniii0i1iuiii�i All Ainii iiiiiiii�iisii� Administrative Fees $0.00 Le al Fees $0.00 Notary Fees $0.00 4. NET ADVANCE AMOUNT I understand that the Gross Advance Amount, as described above, shall be reduced by the Transfer Expenses described above resulting in the Net Advance Amount below: Net Advance Amount $19,000.00 I understand that I will receive this Net Advance Amount, less (a) any advances made to me or on my behalf by Novation; and (b)any amounts necessary to satisfy any outstanding liens, judgments, and credit-based obligations, pursuant to the terms of the transfer agreement. 6. DISCOUNTED PRESENT VALUE This provides the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities. The Federal Rate that is used to make this calculation is provided below in addition to the Discounted Present Value. Federal Rate used to 1.20% calculate the Discount Present Value Discount Present Value $44,370.89 Quotient 42.82% 6. PENALTY IN THE EVENT OF BREACH OF CONTRACT The amount of any penalty or liquidated damages, inclusive of penalties, payable by me in the event I breach the transfer agreement is zero. Co Yi�IIVNIYI�IIVIIbYIIIIYFIYIYdIiII�YILIIICIAIIIIIIIIIYo,,IiIIIAY�BII�Iitili(iuYiiYiYiYi0Y1YiYiiiYY All YR* iiYiiYiReserved 7. 1 understand that I have the right to cancel the transfer agreement without penalty or further obligation upon myself if I do so not later than the third business day after I have signed the transfer agreement. Sall nn Darhower 1111N1I16 lfl1�o91ato�I�If�I�dIin II�ILIIC�IIIIIf�I�IQtVDIn%I1111�I�111111 @II�IaIInInIIh�All loll Reseved llv Exhibit F Novation Capital Waiver of Independent Professional Advice I,Sallyann Darhower, have been advised by Novation Capital in writing, to seek independent professional advice from a professional such as an attorney, an accountant or financial planner regarding the implications of transferring my future rights to structured settlement payments. I have considered this option but I have chosen not to seek such advice. Sallya arhower Copyright,Novation Funding,LLC dba Novation Capital(2002-2013).All Rights Reserved I�I��IIIII�I�IIIIII�III 111111 I1101111n111 II�III Il�llllll�lllllllllnl�l�lllollll�lll�ll��IIIIIII�I���� Exhibit G IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. AND NOVATION FUNDING, LLC DB/A NOVATION CAPITAL FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PETITION FOR APPROVAL OF PAYMENT RIGHTS TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS AFFIDAVIT OF SALLYANN DARHOWER IN SUPPORT OF THE PETITION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS I am Sallyann Darhower a/k/a Sallyann Belt and I make the following Affidavit based upon my personal knowledge: 1. I am an adult individual and I firmly believe in the obligations of an oath. 2. I reside at 3 John Drive, Carlisle, PA 17015. Never Married; Married; X Separated; Divorced; _Widowed 3. Minor children and other dependants: Name Age Place of Residence Shawn Darhower 13 years 3 John Drive Carlisle, PA 17015 4. Income: (a) I am not employed but receive SSI Monthly Income Source $400.00 unassigned annuity payments (b) If presently married, spouse's monthly income and sources: N/A. G 5. Child support, alimony or alimony pendente lite: Obligation to pay: Yes X No If yes, state the amount of the obligation, to whom payable, and whether three are arrearages: Amount of Obligation Payable to Arrearag_es 6. Previous transfers: Have you previously filed a petition to transfer payment rights under the structured settlement that is the subject of this petition? X Yes No If yes, for each petition that you filed (a) If the transfer was submitted for court approval, list the court, the case caption and case number, and state whether the court approved or disapproved the transfer: Court Case Caption Case Number Annroval/Disapproval Cumberland Court of In Re: Petition of 12-5463 Approved Common Pleas Sallyann Darhower, Jr. and Novation Capital, LLC for the Approval of the Transfer of Structured Settlement Payment Rights (b) if the transfer was approved, (i) State the name of the transferee and identify (listing due dates and payment amount(s)) the payments involved in the transfer: Name of Transferee Payment Amounts and Due Date Novation Capital One lump sum payment of$31,963.00 due on July 26, 2014 (ii) State the amount of money and the manner in which the money was used: Amount of Money Manner Used $22,592.00 Purchased a car; Paid taxes on trailer; Paid household and doctor bills; re-paid personal loan (c) Have you ever transferred payments without court approval: Yes X No If so, please explain: 7. Reason for transfer: Describe in detail your reasons for the proposed transfer, including an explanation as to why a sale of a lesser amount of the structured settlement amount will not better serve your interests: I am using the funds from this transfer to pay a retainer to a divorce attorney, pay for car repairs and pay for extensive home repairs. Before entering into this transaction, I was advised by Novation Funding, LLC to seek professional legal and tax advice regarding the ramifications of this transaction. I have considered other means of raising the funds necessary to meet my needs, but I do not have any property to sell or collateral to borrow against in order to receive a loan from a conventional lender. I have weighed all of the options available to me, including a sale of a lesser amount of the structured settlement amount, and I determined that selling my structured settlement payment rights to be the most efficient, and least expensive, way to raise the funds that I need. Before entering into this transaction, I was advised by Novation Funding, LLC to seek professional legal and tax advice regarding the ramifications of this transaction, and I received independent professional advice regarding the legal, tax, and financial implications of this transfer. After consulting with advisors of my own choosing, I have determined that this transfer is in my best interest. 8. Payment of debts: If you seek the transfer in order to pay debts, list each debt, including the name of the creditor and the amount presently owed: Debt Creditor Amount Owed I verify that the statements made in this affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904, relating to unworn falsification to authorities. Dated: Mao 2013 Sallya Darhower Exhibit H C') r•a c-' COURT OF COMMON PLEAS OF CUMBERLAND COUNTY C: TWELFTH JUDICIAL DISTRICT rn o rn COMMONWEATH OF PENNSYLVANIA z -n CIVIL DIVISION cn Q© C� IN RE: PETITION OF c= �c-a SALLYANN DARHOWER No. 12-5463 Civil Drl AND NOVATION CAPITAL, LLC FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS FINAL ORDER AND NOW, this day of October,'2012, it is ordered that the Petition for Transfer of Structured Settlement Payment Rights is granted. The Court specifically finds that: 1. The payee, Sallyann Darhower a/k/a Sallyann C. Darhower("Ms. Darhower"), has established that the transfer is in the best interest of Ms. Darhower and her dependents, taking into account the welfare and support of her dependents. 2. Based on the certification by an attorney for the transferee,Novation Capital, LLC ("Novation"), and the Court having not been made aware of any statute, regulation or order that would be incompatible with the proposed transfer, the transfer will not contravene any applicable federal or state statute or regulation, or the order of any court or responsible administrative authority, or any applicable law limiting the transfer of workers' compensation claims, 3. The transfer complies with the remaining requirements of the Pennsylvania Structured Settlement Protection Act, 40 P.S. § 4001 et seq., including sections 4003(a)(2), 4003(a)(4), 4003(a)(5), and 4003(a)(6). Based upon the foregoing findings, IT IS HEREBY ORDERED that: 13601/906641.2 I. The payment that is to be transferred is designated as follows: one lump sum payment of$31,963.00 due on July 26, 2014 (the"Assigned Payment"). 2. The annuity issuer, Allstate Life Insurance Company ("Allstate Life"), shall forward the Assigned Payment, within 7 days of the date due, to Novation's designated assignee, Acrospire, LLC ("Acrospire"), by check made payable to "Acrospire, LLC #524381," at P.O. Box 102728, Atlanta, GA 30368-2728 (the "Designated Address"), as follows: one lump sum payment of$31,963.00 due on July 26, 2014. 3. The terms of this Order shall survive the death of Ms. Darhower and shall be binding on Ms. Darhower's heirs, beneficiaries and assigns, and her death shall not affect the right of Acrospire to receive the Assigned Payment. 4. Acrospire is authorized to make subsequent assignments or transfers of the Assigned Payment (a "Reassignment") except that, regardless of any such Reassignment, the Assigned Payment will continue to be serviced by Acrospire (or an agent on its behalf). In other words, the Assigned Payment will continue to be made by Allstate Life and the structured settlement obligor, Allstate Settlement Corporation (collectively, "Allstate"), to Acrospire at the Designated Address only, regardless of any Reassignment. However, if for reasons beyond the control of Acrospire,or due to Acrospire being merged with or acquired by another entity, or for traditional address change purpose the Designated Address is no longer valid (i.e., if Acrospire moves or for other reasons the Designated Address is no longer a viable address for Acrospire to receive payment), Allstate agrees to make the Assigned Payment to a new payee and/or payment address. Notwithstanding the foregoing, this Order and the parties' Stipulation ("Stipulation") will remain binding and fully enforceable against Novation, Acrospire, and Ms. Darhower. BE01/906641.2 - 2 - 5. All remaining structured settlement payments (and/or portions thereof), if any, that are not the subject of the Proposed Transfer and not previously assigned, shall be made payable to Ms. Darhower and will be forwarded by Allstate Life, when due, to Ms. Darhower's most recent known address or any payment address designated by Ms. Darhower, subject to Allstate's consent. 6. Novation and Acrospire shall defend, indemnify, and hold harmless Allstate and its directors, shareholders, officers, agents, employees, servants, successors, and assigns, and any parent, subsidiary, or affiliate thereof, and their directors, shareholders, officers, agents, employees, servants, successors, and assigns, past and present, from and against any and all liability, including but not limited to costs and reasonable attorneys' fees, for any and all claims asserted by any person or entity, including but not limited to any claims asserted by any person or entity not a party hereto, claiming an interest in the Assigned Payment, and any and all other claims.made in connection with, related to, or arising out of the Agreement for Sale of Structured Settlement Payments between Ms. Darhower and Novation, the proposed transfer, the Assigned Payment, any Reassignment, or Allstate's compliance with the parties' Stipulation or this Order, except with respect to claims by Novation and Acrospire against Allstate to enforce Allstate's obligations to Novation and Acrospire under the parties' Stipulation-. To the extent Novation or Acrospire fails to honor this indemnification and defense obligation, Allstate may, in addition to all other remedies afforded by law, satisfy the same by withholding to its own credit the Assigned Payment. 7. Allstate's lack of opposition to this matter, or its or the other parties' stipulation hereto or compliance herewith, shall not constitute evidence in this or any matter, and is not intended to constitute evidence in this or any matter, that: BEO1/906641.2 - 3 - (a) payments under a structured settlement contract or annuity or related contracts can be assigned or that"anti-assignment" or"anti-encumbrance" provisions in structured settlement contracts or annuities or related contracts are not valid and enforceable; or (b) other transactions entered into by Novation and/or Acrospire and their customers constitute valid sales and/or loans; or (c) Allstate has waived any right in connection with any other litigation or claims; or (d) Novation or Acrospire has waived any right other than as expressly set forth in the parties' Stipulation and/or this Order. 8. Ms. Darhower shall receive from Novation the amount of$22,592.00 from which no funds are owed for counsel fees, administrative fees, or other costs, fees or expenses. THE CO R Judge - w 4.. VLAcey TRUE COPY FROM RECORD In Testimony whereof, I here unto set my hand and the se of said Co tut atCCarlisle,Pa. This day of=_ .20 Prothonotary A—/ BEO1/90664L2 - 4 - I Exhibit I r JACOBSON, JULIUS & McPARTLAND ATTORNEYS&COUNSELORS AT LAW LESLIE DAVID JACOBSON a 16o DERRY STREET,SUITE A CHAD J.JULIUS HARRISBURG,PA 17111-&mo SCOTT McPARTLAND Phone:(717)909-6868 Fax:(717)909-7788 June 3, 2013 Allstate Life Insurance Co. Allstate Settlement Corporation 3100 Sanders Road,N3 3100 Sanders Road,N3 Northbrook, IL 60062 Northbrook, IL 60062 RE: Application of Novation Funding, LLC DBA Novation Capital for Approval and Authorization of the Transfer of Structured Settlement Payment Rights by Sallyann Darhower Dear Sir/Madam: Pursuant 40 P.S. § 4003(a)(6),please be advised that Novation Funding, LLC DBA Novation Capital has entered into a transaction with the above referenced Annuitant. Said Annuitant is seeking to transfer certain payments under an annuity issued by Allstate Life Insurance Company and owned by Allstate Settlement Corporation. The Commonwealth of Pennsylvania requires court approval for all such transfers. We are currently seeking that court approval. Pursuant to the Pennsylvania Statute, please note the following information about the transferee: Novation Funding LLC Novation Funding, LLC d/b/a Novation Capital #701798 1641 Worthington Road, Ste. 410 P.O. Box 102265 West Palm Beach,FL 33409 Atlanta, GA 30368-2265 Tax ID #: 46-0662843 Tax ID: 46-0662843 If you should have any questions or comments, please feel free to contact me at your convenience. Thank you and I remain c#Juli Cha c: Client Sallyann Darhower www.ljacobsonlaw.com VERIFICATION I,Michael Damore, Special Counsel for Nova-(u� ,h� , LLC, being duly authorized to make this verification,do hereby verify that the facts stated in the foregoing Petition are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unworn falsification to authorities. Date: S `2 8 J2D%3 By: Michael Damore 0 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY TWELFTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. AND NOVATION FUNDING, LLC : d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT RIGHTS CERTIFICATION OF ATTORNEY FOR THE TRANSFEREE NOVATION FUNDING, LLC DB/A NOVATION CAPITAL 1, Chad J. Julius, Counsel for Novation Funding, LLC d/b/a Novation Capital hereby certify that to the best of my knowledge, information and belief, formed after reasonable inquiry, and information provide by Novation Funding, LLC, that the transfer will comply with the requirements of the Structured Settlement Protection Act and will not contravene any other applicable federal or state statute or regulation or the order of any court or administrative authority. Respectfully submitted, JACOBSO JULIUS & MCPARTLAND Date: June 3, 2013 Chad J. Jul%S' 209496 8150 Derry eet Harrisburg, PA 17111 Phone: 717.909.5858 FAX: 717.909.7788 Counsel for Novation Funding, LLC d/b/a Novation Capital - 8 - COURT OF COMMON PLEAS OF CUMBERLAND COUNTY TWELFTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. AND NOVATION FUNDING, LLC : d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT : RIGHTS NOTICE OF HEARING ON PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS To: Allstate Life Insurance Co. Allstate Settlement Corporation 3100 Sanders Road,N3 3100 Sanders Road,N3 Northbrook, IL 60062 Northbrook, IL 60062 Donald Darhower, Jr. Drinker Biddle & Reath LLP 423 First Street, Apt. 423 Ingrid Hopkinson Carlisle, PA 17013 One Logan Square, Suite 2000 Philadelphia, PA 19103 Robin Gay Sallyann Darhower Allstate Life Insurance Co. 3 John Drive 3100 Sanders Road,N3 Carlisle, Pa 17015 Northbrook, IL 60062 You are hereby given notice that Sallyann Darhower and Novation Funding, LLC d/b/a Novation Capital filed a Petition to Transfer Structured Settlement Payment Rights. A hearing in this matter has been scheduled for at am. in Courtroom at the Cumberland County Courthouse, 1 Courthouse Square, Carlisle, PA 17013. The payee shall bring income tax returns for the prior two (2) years to the hearing. You are entitled to support, oppose or otherwise respond to the payee's petition, either in person or by counsel, by filing written comments with the court prior to the hearing or by attending the hearing. Date: Chad J. Julius, PA ID# 209496 8150 Derry Street Harrisburg, PA 17111 Phone: 717.909.5858 4, COURT OF COMMON PLEAS OF CUMBERLAND COUNTY TWELFTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. AND NOVATION FUNDING, LLC : d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT RIGHTS CERTIFICATE OF SERVICE The foregoing Notice of Hearing on Petition to Transfer Structured Settlement Payment Rights has been served upon the following interested parties via regular first-class mail,postage prepaid, this_day of , 2013, addressed as follows: Allstate Life Insurance Co. Allstate Settlement Corporation 3100 Sanders Road,N3 3100 Sanders Road,N3 Northbrook, IL 60062 Northbrook, IL 60062 Donald Darhower, Jr. Drinker Biddle& Reath LLP 423 First Street, Apt. 423 Ingrid Hopkinson Carlisle, PA 17013 One Logan Square, Suite 2000 Philadelphia, PA 19103 Robin Gay Sallyann Darhower Allstate Life Insurance Co. 3 John Drive 3100 Sanders Road,N3 Carlisle, Pa 17015 Northbrook, IL 60062 Elizabeth Rhoades, Paralegal COURT OF COMMON PLEAS OF CUMBERLAND COUNTY TWELFTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARI TOWER No. 13-3216 c o AND NOVATION FUNDING, LLC : -o d/b/aNOVATION CAPI"I'AL FOR APPROVAL OF TRANSFER PETITION FOR APPROV4PF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTQtw ° = PAYMENT RIGHTS SETTLEMENT PAYMEN-E�m oT; RIGHTS n_c° - c-, PRAECIPE TO ADD TO THE PROTHONOTARY OF SAID COURT: Please add the attached Notice to the above captioned case. Thank you. JACOBcPARTLAND Dated: June 6, 2013 By: ID# 209496 Attorney for Novation Funding, LLC 8150 Derry Street Harrisburg, PA 17111-5260 717-909-5858 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY TWELFTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. 13-3216 AND NOVATION FUNDING. LLC : d/b/aNOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT RIGHTS CERTIFICATE OF SERVICE The foregoing Pelinon jor Approval of Transfer ol Structured Settlement Payments Rights has been served upon the following interested parties via certified mail, return receipt requested, and regular first-class mail, postage prepaid, this 6°' day of.tune, 2013 addressed as follows: Allstate Life Insurance Co. Allstate Settlement Corporation 3100 Sanders Road, N3 3100 Sanders Road, N3 Northbrook, IF 60062 Northbrook, IL 60062 Donald Darhower, Jr. Drinker Biddle & Reath LLP 423 First Street, Apt. 423 Ingrid Ilopkinson Carlisle, PA 17013 One Logan Square, Suite 2000 Philadelphia, PA 19103 Robin Gay Sallyann Darhower Allstate Life Insurance Co. 3 John Drive 3100 Sanders Road, N3 Carlisle, Pa 17015 Northbrook, IF 60062 Elizttyeth Rhoades, Paralegal COURT OF COMMON PLEAS OF CUMBERLAND COUNTY { 1ATT��r rclx'fT FTU JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF • 2 SALLYANN DARHOWER : No. ' �J f AND NOVATION FUNDING, LLC : d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER : PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS : SETTLEMENT PAYMENT : RIGHTS INITIAL ORDER OF COURT AND NOW on this ok 131- day of J U liar, 2013, it is ordered that a hearing on this Petition to Transfer Structured Settlement Payment Rights will be held on %j. 4u,e,us-r p.0(3 , in Courtroom 3 L yC, at :33 o'clock at the Cumberland County Courthouse, 1 Courthouse Square, Carlisle, PA 17013. The Payee shall bring income tax returns for the prior two (2) years to the hearing. Within seven(7) days, the transferee shall give notice of the hearing date to the payee, the structured settlement obligor, the annuity issuer, the payee's spouse and any person receiving child support, alimony, or alimony pendent elite. The transferee shall attach a certificate of service to the notice of hearing date. A copy of the notice with the certificate of service shall be filed with the court prior to the hearing. BYOei . ! • - _ _e _ . • >- L F_. twi rl Q is C3 LJQ J. IJ Thomas A. Placey e•-> common Pleas Judge m Y - 1 - r � COURT OF COMMON PLEAS OF CUMBERLAND COUNTY NINTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. 13-3216 AND NOVATION FUNDING, LLC: d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT RIGHTS PRAECIPE TO ADD TO THE PROTHONOTARY OF SAID COURT: -:7 Please add the attached Notice to the above captioned case. Thank you. JACOBSO VUS & &ARTLAND Dated: June 26, 2013 By: Ch J. J lius ID #2094 Attorney for Novation Funding, LLC 8150 Derry Street Harrisburg, PA 17111-5260 717-909-5858 ti COURT OF COMMON PLEAS OF CUMBERLAND COUNTY NINTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. 2013-3216 Civil AND NOVATION FUNDING, LLC: d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT RIGHTS NOTICE OF HEARING ON PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS To: Allstate Life Insurance Co. ' Allstate Settlement Corporation 3100 Sanders Road,N3 3100 Sanders Road,N3 Northbrook, IL 60062 Northbrook, IL 60062 Donald Darhower, Jr. Drinker Biddle&Reath LLP 423 First Street, Apt. 423 Ingrid Hopkinson Carlisle, PA 17013 One Logan Square, Suite 2000 Philadelphia, PA 19103 Robin Gay SallyannDarhower Allstate Life Insurance Co. 3 John Drive 3100 Sanders Road,N3 Carlisle, Pa 17015 Northbrook, IL 60062 You are hereby given notice that Sallyann Darhower and Novation Funding, LLC d/b/a Novation Capital filed a Petition to Transfer Structured Settlement Payment Rights. A hearing in this matter has been scheduled for August 21, 2013 at 3:30 p.m. in Courtroom 6 at the Cumberland County Courthouse, 1 Courthouse Square, Carlisle, PA 17013. The payee shall bring income tax returns for the prior two (2) years to the hearing. Y u ar entitled to support, oppose or otherwItc d to t payee's petition, either in person r y co set, by filing written comments wi r the hearing or by attendi t ej Date: li , A ID# 209496 8150 Derry Str et Harrisburg,PIA 1 1 1 Phone: 717.909.5858 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY I JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. AND NOVATION FUNDING, LLC : d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT: TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT RIGHTS INITIAL ORDER OF COURT AND NOW on thisQL&day of 2013,it is ordered that a hearing on this Petition to Transfer Structured Settlement Payment Rights will be held on in Courtroom Pj�, at2:16ATjo'clock at the Cumberland County Courthouse, I Courthouse Square, Carlisle,PA 17013. The Payee shall bring income tax returns for the prior two (2)years to the hearing. Within seven(7)days,the transferee shall give notice of the hearing date to the payee, the structured settlement obligor,.the annuity issuer,the payee's spouse and any person receiving child support,alimony, or alimony pendent elite. The transferee shall attach a certificate of service to the notice of hearing date. A copy of the notice with the certificate of service shall be filed with the court prior to the hearing. BY ORDER OF THE COURT: L41 C"7 CD U-C) Cn --U-J WLLJ TRUE Copy FROM RECOF in Testimony whereof, I here unto set MY rara and the seal of said court at canisle,Pa This _ wA- his 6—*ay of %wk f-,24-2— COURT OF COMMON PLEAS OF CUMBERLAND COUNTY NINTH JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF SALLYANN DARHOWER No. 2013-3216 Civil AND NOVATION FUNDING, LLC: d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER PETITION FOR APPROVAL OF OF STRUCTURED SETTLEMENT : TRANSFER OF STRUCTURED PAYMENT RIGHTS SETTLEMENT PAYMENT RIGHTS CERTIFICATE OF SERVICE The foregoing Notice of Hearing on Petition to Transfer Structured Settlement Payment Rights has been served upon the following interested parties via regular first-class mail, postage prepaid,this 26th day of June, 2013, addressed as follows: Allstate Life Insurance Co. Allstate Settlement Corporation 3100 Sanders Road,N3 3100 Sanders Road,N3 Northbrook, IL 60062 Northbrook, IL 60062 Donald Darhower, Jr. Drinker Biddle &Reath LLP 423 First Street,Apt. 423 Ingrid Hopkinson Carlisle, PA 17013 One Logan Square, Suite 2000 Philadelphia, PA 19103 Robin Gay Sallyann Darhower Allstate Life Insurance Co. 3 John Drive 3100 Sanders Road,N3 Carlisle, Pa 17015 Northbrook, IL 60062 E ' abeth Rhoades, Paralegal COURT OF COMMON PLEAS OF CUMBERLAND COUNTY N A114 JUDICIAL DISTRICT COMMONWEALTH OF PENNSYLVANIA CIVIL DIVISION IN RE: PETITION OF 1nV3 SALLYANN DARHOWER No. 13-3216 Civil Xrn AND NOVATION FUNDING, LLC tnA PO d/b/a NOVATION CAPITAL FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS —•► :� FINAL ORDER AND NOW, this 21 day of August, 2013, it is ordered that the Petition for Transfer of Structured Settlement Payment Rights is granted. The Court specifically finds that: 1. The payee, Sallyann Darhower a/k/a Sallyann C. Darhower("Ms. Darhower"), has established that the transfer is in the best interest of Ms. Darhower and her dependents, taking into account the welfare and support of her dependents. 2. Based on the certification by an attorney for the transferee,Novation Funding, LLC d/b/a Novation Capital ("Novation Funding"), and the Court having not been made aware of any statute, regulation, or order that would be incompatible with the proposed transfer, the transfer will not contravene any applicable federal or state statute or regulation, or the order of any court or responsible administrative authority, or any applicable law limiting the transfer of workers' compensation claims. 3. The transfer complies with the remaining requirements of the Pennsylvania Structured Settlement Protection Act, 40 P.S. § 4001 et seq., including sections 4003(a)(2), 4003(a)(4), 4003(a)(5), and 4003(a)(6), and 26 U.S.C. § 5891, and does not contravene other applicable law, including 215 ILCS 153/1 et seq. BE01/965936.2 Based upon the foregoing findings, IT IS HEREBY ORDERED that: 5 1. The payments that are to be transferred are designated as follows: monthly payments of$400.00 each, beginning on January 7, 2015 through and including December 7, 2024 (the "Assigned Payments"). 2. The annuity issuer, Allstate Life Insurance Company ("Allstate Life"), shall forward the Assigned Payments, within 7 days of the date due, by check made payable to "Novation Funding, LLC #701798," at P.O. Box 102265, Atlanta, GA 30368-2265 (the "Designated Address"), as follows: monthly payments of$400.00 each, beginning on January 7, 2015 through and including December 7, 2024. 3. The terms of this Order shall survive the death of Ms. Darhower and shall be binding on Ms. Darhower's heirs, beneficiaries and assigns, and her death shall not affect the right of Novation Funding to receive the Assigned Payments. 4. Novation Funding is authorized to make subsequent assignments or transfers of the Assigned Payments (a"Reassignment") except that, regardless of any such Reassignment, the Assigned Payments will continue to be serviced by Novation Funding (or an agent on its behalf). In other words, the Assigned Payments will continue to be made by Allstate to Novation Funding at the Designated Address only, regardless of any Reassignment. However, if for reasons beyond the control of Novation Funding, or due to Novation Funding being merged with or acquired by another entity, or for traditional address change purpose the Designated Address is no longer valid (i.e., if Novation Funding moves or for other reasons the Designated Address is no longer a viable address for Novation Funding to receive payments), Allstate agrees to make the Assigned Payments to a new payee and/or payment address. Notwithstanding the foregoing, BE01/965936. 2 2 this Order and the parties' Stipulation("Stipulation") will remain binding and fully enforceable against Novation Funding and Ms. Darhower. 5. All remaining structured settlement payments (and/or portions thereof), if any, that are not the subject of the Proposed Transfer and not previously assigned, shall be made payable to Ms. Darhower and will be forwarded by Allstate Life, when due, to Ms. Darhower's most recent known address or any payment address designated by Ms. Darhower, subject to Allstate's consent. 6. Novation Funding shall defend, indemnify, and hold harmless Allstate and its directors, shareholders, officers, agents, employees, servants, successors, and assigns, and any parent, subsidiary, or affiliate thereof, and their directors, shareholders, officers, agents, employees, servants, successors, and assigns, past and present, from and against any and all liability, including but not limited to costs and reasonable attorneys' fees, for any and all claims asserted by any person or entity, including but not limited to any claims asserted by any person or entity not a party hereto, claiming an interest in the Assigned Payments, and any and all other claims made in connection with, related to, or arising out of the Agreement for Sale of Structured Settlement Payments between Ms. Darhower and Novation Funding, the proposed transfer, the Assigned Payments, any Reassignment, or Allstate's compliance with the parties' Stipulation or this Order, except with respect to claims by Novation Funding against Allstate to enforce Allstate's obligations to Novation Funding under the parties' Stipulation. To the extent Novation Funding fails to honor this indemnification and defense obligation, Allstate may, in addition to all other remedies afforded by law, satisfy the same by withholding to its own credit any remaining Assigned Payments. BE01/965936. 2 3 7. Allstate's lack of opposition to this matter, or its or the other parties' stipulation hereto or compliance herewith, shall not constitute evidence in this or any matter, and is not intended to constitute evidence in this or any matter, that: (a) payments under a structured settlement contract or annuity or related contracts can be assigned or that"anti-assignment" or"anti-encumbrance" provisions in structured settlement contracts or annuities or related contracts are not valid and enforceable; or (b) other transactions entered into by Novation Funding and its customers constitute valid sales and/or loans; or (c) Allstate has waived any right in connection with any other litigation or claims; or (d) Novation Funding has waived any right other than as expressly set forth in the parties' Stipulation and/or this Order. 8. Novation Funding and Ms. Darhower, for themselves and for their respective directors, shareholders, officers, agents, employees, servants, successors, heirs, beneficiaries, contingent beneficiaries, executors, administrators, and assigns, and any parent, subsidiary, or affiliate thereof, and their directors, shareholders, officers, agents, employees, servants, successors, and assigns, past and present (the "Releasors"), hereby remise, release, and forever discharge Allstate and its directors, shareholders, officers, agents, employees, servants, successors, and assigns, and any parent, subsidiary, or affiliate thereof, and their directors, shareholders, officers, agents, employees, servants, successors, and assigns, past and present (the "Allstate Releasees"), of and from any and all manner of actions and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements,judgments, settlements, damages, claims, and demands whatsoever, in law or in equity, in connection with, related to, or arising out of any claim or allegation that was or could have been asserted in connection with, related to, or arising out of the Purchase Agreement, the Assigned Payments, the Proposed Transfer, or the parties' Stipulation, which the Releasors have or had from the beginning of the world through the BE01/965936. 2 4 date of this Order, except for claims of the Releasors against the Allstate Releasees to enforce the Allstate Releasees' obligations to the Releasors, if any, under the parties' Stipulation. 9. Ms. Darhower shall receive from Novation Funding the net amount of Nineteen Thousand Dollars and Zero Cents ($19,000.00) from which no funds are owed for counsel fees, administrative fees, or other costs, fees, or expenses. S1'' DONE IN OPEN COURT this 12 1 d , Judge -q" A. P G P BE01/965936. 2 5