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HomeMy WebLinkAbout05-0880 ROBERT J. DONOHUE, JR., ESQUIRE DONOHUE, McKEE, MATTSON & GREEN Attorney J.D. #83485 1100 Township Line Road Havertown, PA 19083 (610) 853-4400 RICHARD L. McGUIRE IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA INRE: NO. oS" - f?6 C;..;, C-T8L~ ... PETITION TO APPROVE SALE AND PURCHASE OF STRUCTURED SETTLEMENT PAYMENTS PURSUANT TO 40 P.S. SECTION 4003 et. seq. AND NOW comes Petitioner, STRUCTURED SETTLEMENT INVESTMENTS, Ltd., by and through their counsel, ROBERT J. DONOHUE, JR., ESQUIRE, who respectfully represents the following: 1. Petitioner, STRUCTURED SETTLEMENT INVESTMENTS, Ltd. (hereinafter "Transferee"), submits this Petition seeking approval for the transfer of structured settlement payment rights pursuant to 40 P.S. S 4001. 2. Petitioner has been contacted by RICHARD L. McGUIRE, (hereinafter "Payee"), an adult individual who resides at 6412 Carlisle Pike, Lot 110, Mechanicsburg, Cumberland County, Pennsylvania 17050. 3. Payee is entitled to receive certain structured settlement annuity payments as a result of a personal injury action related to an automobile accident and settled by a Release. A detailed list of payments which Payee is entitled to receive is attached as Exhibit "A". 4. The settlement of the personal injury action was not approved by Court. 5. Payee intends to sell the right to receive a payment of $20,000.00 due on June 4, 2008, pursuant to the Purchase Agreement attached as Exhibit "B". 6. Payee is an employee ofOallagher Basset Services. 7. Payee has no dependents, as defined by the Pennsylvania Structured Settlement Protection Act. 8. It is in the best interest of Payee to be authorized by this Court to enter into the Purchase Agreement, as Payee intends to use the money as a down payment to purchase a house since is planning to get married which would benefit Payee. WHEREFORE, Payee respectfully requests this Honorable Court to Approve the Sale of Payee's rights to receive structured settlement annuity payments to Structured Settlement Investments, Ltd. ROBERT 1. DONOHUE, JR., ESQUIRE Attorney for Petitioner Structured Settlement Investments, Ltd. VERIFICATION I, ROBERT J. DONOHUE, JR., ESQUIRE, being duly authorized by the Petitioner herein, do make this Verification on the Petitioner's behalf; I do verifY that the facts set forth in the foregoing pleadings are true and correct to the best of my knowledge, information and belief; I do further verifY that the information contained in the aforesaid pleading was provided to me by the Plaintiff and I have reason to believe that the aforesaid is true and correct; that as the authorized representative. These statements are made pursuant to the penalties of 18 P A C.S. Section 4904 relating to unsworn falsification to authorities. DATED: \, ) '>") I EXHIBIT A TO PURCHASE AGREEMENT 1. DATE OF PURCHASE AGREEMENT: 12/3012004 2. PARTIES TO PURCHASE AGREEMENT: A. Seller - Richard L. McGuire, 6412 Carlisle Pike Lot#1 10, Mechanicsburg, PA, 17050, SSN: 185-68-9147, Phone: 717-796-6531 B. Purchaser -- Structured Settlement Investments, Ltd. 666 Fifth Avenue, #349 New York City, NY 10103 3. ANNUITY DOCUMENTS INFORMATION: A. Annuity Issuer: Employers Life Insurance Company ofWausau B. Annuity Owner: Nationwide Mutual Insurance Company C. Annuity Policy#: 32 Cert. Number: 1532 D. Annuity Payments: As stated in the annuity contract (or similar document) set forth as Exhibit B to this Agreement 4. PERIODIC PAYMENTS: 5. PURCHASE PRICE: A payment of $20,000.00 due 06/04/2008. $10,981.49 6. ALLOCATION OF PURCHASE PRICE: (set forth amount of our chase nrice allocated to each payment) 6/4/08 20,000.00 10,981.49 This Exhibit A is incOlporated into and made a part of the Purchase Agreement to which this Exlubit A is attached, and the other Transaction Documents as if fully set forth and incorporated into said agreements, contracts, and documents, at length. Seller acknowledges that it is his/her intent to assign, sell, transfer, and convey to Purchaser the Periodic Payments descn"bed above. Seller acknowledges that the closing and funding of the Tnmsaction described herein and in the Transaction Documents is expressly contingent upon entry of a Court Order, as described in section 5.5 of the Purchase Agreement. PURCHASE AGREEMENT - Page 18 of 18 ~ 032449.0001 NEW YORK 376215 vi EXH/8rr ''lIlt I ,/--" " , ) ! PURCHASE AGREEMENT This Purchase Agreement (the "Agreement"), dated and effective as of 12/30/2004, is being entered into by and between Structured Settlement Investments, Ltd. ("Purchaser"), located at 666 Fifth Avenue, #349, New York City, NY, 10103, and Richard L. McGuire ("Seller") who currently resides at 6412 Carlisle Pike Lot#llO, Mechanicsburg PA, 17050. RECITALS A Seller, or Seller's predecessor in interest, has previously entered into a settlement, release, indemnity, compromise, andior other agreement or document, andior was subject to a court order, judgment, or decree, in connection with the settlement of a lawsuit and/or personal injury or wrongful death claim. The decree, order, judgment, release, settlement, indemnity, compromise andior other agreement is set forth and described in more detail in Exhibit "A" attached hereto and, together with any amendments, modifications, and revisions to same, shall hereafter be referred to in this Agreement as the "Settlement Agreement." Pursuant to the Settlement Agreement, Seller is entitled to receive certain periodic settlement paymente in the dollar amounts and on the dates set forth and described in the Settlement Agreement. (The payments which are due and payable to Seller pursuant to the Settlement Agreement shall hereafter be referred to as the "Settlement Payments"). B. Nationwide Mutual Insurance Company ("Settlement Obligor") agreed to make the Settlement Payments to Seller under the terms of the Settlement Agreement andior assumed the obligation to make the Settlement Payments due Seller pursuant to a qualified assignment andior other assignment, assumption or similar agreement (the qualified assignment, assumption agreement, or similar agreement or document is set forth and described in Exhibit "Ii' and shall hereafter be referred to as the "Qualified Aesignment"). In order to fund its obligation to make the Settlement Payments, the Settlement Obligor purchased andior caused to be issued an annuity (the "Annuity") by Employers Life Insurance Company of Wausau (the "Annuity Issuer"). Nationwide Mutual Insurance Company (sometimes, referred to as the "Annuity Owner") is the owner of the Annuity. (The Annuity is set forth and described in Exhibit B.) The Annuity Issuer is obligated to make certain payments under the terms of the Annuity (the "Annuity Payments"), in the amounts and on dates which correspond to the Settlement Payments. Seller is the "Annuitant" or "Payee" named in the Annuity andior is the beneficiary of the original named AnnuitantlPayee named in the Annuity or is otherwise entitled to receive the payments to be made,under the terms of the Settlement Agreement, Qualified Assignment, and/or Annuity. Copies of the Settlement Agreement, Qualified Assignment, and the Annuity (if available) andior a payment letter or other documents which adequately and sufficiently describe and confirm, in the sole discretion of the Purchaser, the payment obligations of the Settlement Obligor, Annuity Owner and/or Annuity Issuer have been provided to the Purchaser. The Settlement Agreement, the Qualified Assignment, the Annuity, and any agreements, releases, letters, assignments, judgments, orders, decrees and other documents which reflect or evidence the Settlement Payments and the payment obligations ofthe Settlement Obligor, Annuity Owner, and Annuity Issuer shall hereafter be collectively referred to as the "Settlement Documents." C. Purchaser desires to purchase and acquire from the Seller, and the Seller desires to sell, assign, transfer, and convey to Purchaser, all of Purchaser's right, title, and interest in and to, including the right to receive, certain of the Settlement Payments and Annuity Payments, in the amounts and on the dates due and payable to Seller, as set forth and described in Exhibit A. (The payments which are the subject of this Agreement and which are to be sold, assigned, and transferred to Purchaser by Seller shall hereafter PURCHASE AGREEMENT - Page 1 of 18 Initials D32449,OOOt NEW YORK 376215 vi Ex;-/ 11.311' lIB 'I /,r_"" ) ! be referred to as the "Periodic Payments".) Purchaser and seller acknowledge that each Periodic Payment represents a separate debt instrument and that the Purchase Price (as defined herein) represents the total of all the purchase prices for all of the Periodic Payments transferred in the Transaction. D. Ai> used herein, "Term" means the period beginning with the earlier ofthe Closing Date (as hereinafter defined) or the dats of the first Periodic Payment and ending with the last Periodic Payment which is the subject of this Agreement. The "Transaction" shall refer to the assignment of the Periodic Payments by Seller to Purchaser, as set forth and described in this Agreement. The "Transaction Documents" shall refer to this Agreement and any and all other agreements, applications, letters, contracts, pleadings, affidavits, and other documents executed, signed, and/or submitted by the Seller in connection with the Transaction. "Court Order" shall refer to the order or judgment rendered or to be rendered in connection with the court approval of the Transaction in accordance with an applicable state statute as provided in Section 5.5. NOW, THEREFORE, in consideration of the mutual covenante, representations, warranties and agreements contained in this Agreement and the other Transaction Documents, the receipt and sufficiency ,of which is acknowledged, and subject to the terms, conditions, provisions, and contingencies set forth in this Agreement and in the other Transaction DocJUDents, the parties agree, covenant, and promise as follows: AGREEMENT ARTICLE 1 PURCHASE AND SALE OF PERIODIC PAYMENTS 1.1 Purchase and Sale. Seller hereby sells, assigns, transfers, and conveys to the Purchaser, and Purchaser purchases and acquires from Seller, the Periodic Payments. Seller makes such sale and assignment of the Periodic Payments to Purchaser free and clear of any and all right, title, interest or claim in or to the Periodic Payments or any lien, pledge, mortgage, security interest, or other encumbrance of or in the Periodic Payments of any nature whatsoever (collectively the "Encumbrances"). 1.2 Purchase Price. In return for the sale and assignment to Purchaser of Seller's right, title, and interest in the Periodic Payments, and the other promises, covenants, and agreements of Seller set forth in this Agreement, including the right of first refusal granted to Purchaser in Section 8.18 below, Purchaser agrees to pay to Seller the amount set forth and described in Exhibit A as the "Purchase Price." Purchaser and Seller agree that the Purchase Price will be allocated among the several Periodic Payments as set forth .in Exhibit A under the heading "Allocation of Purchase Price." Purchaser will pay the Purchase Price to Seller on the Closing Date (as defined in Section 2.3 hereo/). 1.3 Adiustment of Purchase Price; Advances. The Seller acknowledges and agrees that the Purchase Price may be adjusted, if necessary, by subtracting an amount equal to the sum of (j) all Periodic Payments received by Seller after the date of this Agreement until Closing; plus (;j) any payments and advances made to Seller or made on behalf of Seller to a third party a or prior to Closing. Purchaser shall not be obligated to make any advances to Seller or any payments to third parties on Seller's behalf prior to PURCHASE AGREEMENT - Page 2 of 18 ~ 032449.0001 NEW YORK 316215 vi ') I Closing. Any advances and payments to third parties by Purchaser shall be made, if at all, in Purchaser's sole and absolute discretion. 1.4 Manner of Pavment. The Seller may elect to have the Purchase Price paid by wire transfer to such account or accounts of the Seller <maintained in Seller's name) that has been designated by Seller in writing prior to the Closing, or by a check drawn on any deposit account maintained by the Purchaser. ARTICLE 2 CLOSING 2.1 Closine: Defined, The closing of the Transaction described in this Agreement (the "Closing") shall occur on a date designated by the Purchaser, which date shall be as soon as reasonably practicable after entry of the Court Order and after the Purchaser, in its sole and absolute discretion, has determined that all of the conditions and contingencies required by this Agreement and the other Transaction Documents have been satisfied, have occurred, and/or have been performed and complied with, as the case may be, and that no event or condition has occurred or exists that would require this Agreement to be terminated. Seller agrees to cooperate with Purchaser and use Seller's best efforts to secure the Court Order and close the Transaction in accordance with this Agreement. 2.2 Timine: of Closine:. The Seller and the Purchaser understand and agree that each of them will be taking various actions necessary to satisfy, perform, and fulfill the conditions and contingencies required to close this Transaction and that some conditions and contingencies are subject to various actions that must be completed by persons or entities that are not parties to this Agreement (Le. entry of the Court Order). It is not possible to predict the precise date on which Closing will occur and Purchaser makes no representations regarding the specific dste of Closing. 2.3 Closine: Dste. The day on which funds representing the Purchase Price (adjusted, if necessary, as provided in Section 1.2) are paid and delivered to the Seller shall be the "Closing Date." All events that are to occur on the Closing Date shall, for all purposes, be deemed to occur simultaneously, except to the extent that a specific order of occurrence is otherwise prescribed herein. ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER In order to induce Purchaser to enter into this Agreement, pay the Purchase Price and purchase the Periodic Payments, the Seller represents and warrants to the Purchaser as follows: 3.1 Authoritv and Enforceabilitv. The Seller has all requisite power and authority and has taken all action necessary to execute and enter into this Agreement and each of the Transaction Documents, to conclude the Transaction contemplated in this Agreement, and to perform the Seller's obligations under this Agreement. This Agreement has been, and each of the Transaction Documents has been or will be by Closing, duly executed and delivered by the Seller. This Agreement and each of the Transaction Documents are legal, valid and binding obligations ofthe Seller enforceable against the Seller in accordance with their terms. 3.2 No Breach or Default: No Violation of Law: No Consents. The execution and delivery by the Seller of this Agreement and the Transaction Documents and the closing of the Transaction does not and PURCHASE AGREEMENT - Page 3 of 18 c1f~ 032449.0001 NEW YORK 376215 vi ) \ ! will not: Q) constitute a breach of, or result in a default under, the Settlement Documents; (U) give rise to a right of termination or cancellation under the Settlement Documents; or (U) breach or violate any existing contract or agreement of the Seller or any obligation of the Seller under any court or administrative orders, writs, judgments or decrees; (jii) violate any statute or regulation; or uv) except for the court approval referenced in Section 5.5, require the consent, authorization, or approval of any other person, entity, court, regulatory agency, administrative body, or any federal, state, local or other governmental agency or authority. 3.3 The Settlement Documents. True and correct copies of the Settlement Documents have been, or will be prior to Closing, provided and delivered to Purchaser. These copies of the Settlement Documents are true and correct and include all amendments, supplements, addendums, or modifications to same and have not been changed or altered in any way. None of the Settlement Documents are in default nor have any of them been breached or violated by the parties to same. 3.4 Title to the Periodic Pavments. The Seller owns the Periodic Payments free and clear of any Encumbrances. Except as specifically and expressly disclosed to Purchaser in writing prior to entering into this Agreement, Seller has not previously sold, transferred, assigned, pledged, encumbered, mortgaged, or granted a security interest in any of the Periodic Payments or any of the Settlement Payments. Except as specifically and expressly disclosed to Purchaser in writing, none of the Periodic Payments or Settlement Payments have ever been attached, levied, foreclosed upon, seized, restricted, or subjected to garnishment or any other legal process or proceeding. Closing of the Transaction will vest in Purchaser good, marketable and defensible title to the Periodic Payments, free and clear of any and all Encumbrances and shall divest Seller of all right, title, interest, claim, and demand, either at law or in equity, in and to the Periodic Payments. 3.5 Canacitv; Marital Status; Proof of Identification. Seller has furnished to Purchaser true, correct and complete documents concerning any prior divorce, annulment, marital separation, marriage, premarital agreement, custody, guardianship, trusteeship, bankruptcy, assignment for benefit of creditors, or other legal proceeding affecting Seller's capacity or ability to enter into or close this Transaction or to transfer or convey title to the Periodic Payments. The true, current marital status of the Seller is setforth in the Due Diligence Disclosure Form executed in connection with this Transaction and the full, true, and correct name and mailing address of Seller's spouse, if any, is also set forth in the Due Diligence Disclosure Form. If Seller has been divorced or if any of Seller's marriages have been annulled prior to the date of this Agreement, Seller has provided to the Purchaser a true, correct, complete and legible copy of the Seller's prior divorce or annulment decree(s) and related property settlement/division documents and agreements. Seller shall provide true and accurate copies of Seller's driver's license and/or government issued In card and Seller's social security identification card or other evidence of Seller's social security number acceptable to Purchaser in its sole and absolute discretion. Seller shall also provide to Purchaser, if requested by Purchaser, a copy of a check stub or bank record evidencing Seller's receipt of or a direct deposit of a recent Periodic Payment or Settlement Payment, which shall match and/or correspond to the Settlement Documents. 3.6 No Jud=ents or Actions. Other than those specifically and expressly disclosed to Purchaser by Seller in writing, there are no unsatisfied, outstanding judgments or liens against Seller and there is no action, suit, or proceeding pending or threatened against or affecting the Seller or the Seller's assets, including, without limitation, the Periodic Payments or the Settlement Payments. The Seller has received no notice (whether oral or written) that any such proceeding is pending or contemplated. PURCHASE AGREEMENT - Page 4 of 18 ~~~ 032449.0001 NEW YORK :376215 vt " ) 3.7 No Brokers. Except as specifically disclosed by the Seller in writing, no broker, agent or finder has acted in connection with this Agreement or the transactions contemplated by this Agreement and no brokerage, sales, or other commission or finder's fee shall be earned, dus or payable to any person by the Purchaser in connection with the Transaction. 3.8 Consultation with Advisors; Seller's Creditors. Seller has been advised by the Purchaser to consult with the Seller's financial, accounting, tax and legal advisors in connection with the Transaction and has either (i) consulted with such advisors or (;j) has had the opportunity to do so and has knowingly and voluntarily chosen not to seek such advice. The execution and delivery of this Agreement and the other Transaction Documents by the Seller and the consummation of the Transaction have not been concealed from, and will not hinder, delay, or defraud any creditor ofthe Seller. To the extent that Seller was required by applicable law to receive, or to the extent that Seller has received, independent professional advice regarding this Transaction, the person or person with whom Seller consulted has been identified by Seller to Purchaser in writing. 3.9 Full Disclosure; No Adverse Facts. The representations and warranties of the Seller in this Agreement and in the other Transaction Documente and the information furnished to the Purchaser and its representatives in connection with the Transaction do not, and will not at Closing, include any untrue or misleading statement of fact. Seller is not aware of any fact or matter which might (;) diminish the value of the Periodic Payments or the rights and benefits of the Purchaser to be acquired under this Agreement; or (U) impair or delay the Purchaser's ability to receive and collect the Periodic Payments. 3.10 Due Diligence Disclosure Form. Beneficiaries. and Deuendents. Seller has completed, signed, and delivered to Purchaser a Due Diligence Disclosure Form in connection with the Transaction. All of the information stated in the Due Diligence Disclosure Form is true and correct as of the date of this Agreement and shall be true and correct at Closing. Seller has disclosed to Purchaser the true and correct identity and age of Seller's spouse and all of hislher minor children and other dependents. Seller has disclosed to Purchaser the true and correct identity of any beneficiary or other person designated by Seller to receive the Settlement Payments and/or Annuity Payments following the death of Seller. 3.11 Prior or Pendine Insolvencv or Bankruotcv Proceedines. or Other Leeal Proceedines. Except as set forth in the Due Diligence Disclosure Form, Seller has not been a party to any bankruptcy, reorganization, receivership, insolvency, or similar proceeding. If Seller has been a party to any such proceeding, Seller has provided to Purchaser a true and correct copy of the Seller's discharge from such proceedings and/or an appropriate court order approving the Transaction contemplated by this Agreement. 3.12 Other Oblieations. Other than those obligations specifically and expressly disclosed to Purchaser by Seller in writing, Seller is not in default on any obligation for child support or alimony or for the payment of state, federal, or local taxes, inclu,ding federal income taxes. 3.13 Other Attemots to Assim; Cessation of Other Negotiations; Exclusivitv; Third Party Fee. (a) Except as specifically and expressly disclosed to Purchaser in writing in connection with this Transaction. Seller has not, and has not attempted to, sell, assign, transfer, or convey any of the Settlement Payments to any other person or entity, nor has Seller attempted to pledge, encumber or mortgage the Settlement Payments with or to any other person or entity. To the extent that Seller has previously had discussions or negotiations with other persons or entities regarding the possible sale, assignment, transfer. mortgage, encumbrance, pledge or other conveyance of the Settlement Payments, Seller hereby represents and warrants that all such discussions or negotiations have ceased and any and all contracts, agreements, letters of intent and other documents relative to said discussions and/or PURCHASE AGREEMENT - Page 5 of 18 ~ ~ 032449.0001 NEW YORK 376215 vI ) ! negotiations have been cancelled, terminated, and rescinded. Upon signing this Agreement, Seller shall deal exclusively with Purchaser regarding the Settlement Payments. (b) Seller understands, acknowledges, and stipulates that in entering into this Agreement, Purchaser is relying upon Seller's representation and covenant that Seller shall deal exclusively with Purchaser regarding the Settlement Payments and the transaction described in this Agreement. Seller also understands and acknowledges that Purchaser, upon execution of this agreement, will incur substantial costs in time and expenses, in an attempt to continue and finalize its due diligence requirements, and to secure Court Approval of the agreed upon transaction. Amongst other things, upon execution of this agreement, Purchaser shall immediately initiate proceedings in Court to secure Court approval ofthe transaction as contemplated in paragraph 5.5. Purchaser may make advances to Seller of a portion of the Purchase Price (but shall have no obligation to do so under this Agreement) pending approval of the transaction by way of the Court Order and closing of the transaction as contemplated herein and shall incur costs and fees in connection with seeking the Court Order. Purchaser and Seller shall use their best efforts to secure the Court Order and close the transaction. In consideration for Purchaser's promises and covenants in this Agreement and in return for Purchaser's promise to promptly initiate proceedings to secure the Court Order, Seller agrees and promises to pay Purchaser a third party transaction fee of $2,625.00 (the "Third Party Fee"), on or before the day that Seller receives proceeds from Third Party, should Seller desire to pursue an agreement or contract with such a third party relative to a sale, assignment, transfer, conveyance, or encumbrance of all or a portion ofthe Settlement Payments (a "Third Party Transaction") after Seller signs this Agreement. Seller agrees and acknowledges that any Third Party Fee is reasonable and proper in order to compensate Purchaser for its costs and expenses and is not in the nature of a Penalty. To the extent that any of the Third Party Fee is deemed to be a penalty, Seller expressly agrees that those charges not so deemed a penalty are enforceable. Pursuant to section 7.2 ofthis agreement, Seller may cancel this Agreement, with no fee. Notwithstsnding section 7.2 however, Seller agrees to pay Purchaser said Third Party Fee in the event that Seller enters into an agreement or contract with a Third Party relative to the Settlement Payments. The parties hereby agree that within eighteen (18) months from the date this Agreement becomes effective, for purposes of enforcing this paragraph 3.13 regarding exclusivity and the Third Party Fee, that it shall be presumed that Seller has entered into a Third Party Transaction should Seller enter into a contract with a third party within eighteen (18) months after Seller cancels this Agreement. (c) Seller agrees that in the event that a Third Party Fee becomes due and owing to Purchaser under this section 3.13, that Purchaser may receive and collect a portion of the proceeds of any Third Party Transaction to which Seller is a party. Seller hereby agrees that Purchaser may contact any third party purchaser involved in a Third Party Transaction and collect the Third Party Fee directly from said third party purchaser. Additionally, Seller grants to Purchaser a security interest in any of the proceeds or expected proceeds of said Third Party Transaction as collateral security for Seller's promises and agreements under this section 3.13 and agrees that Purchaser may intervene in any court proceeding relative to said Third Party Transaction as an interested party and may assert and pursue a claim for the Third Party Fee in said proceeding and may seek to have the Court direct that a portion of the proceeds of said Third Party Transaction be paid to Purchaser in payment of the Third Party Fee. Seller further agrees that any Third Party Fee may be collected by Purchaser pursuant to the terms of the Special Irrevocable Power of Attorney pursuant to which Purchaser may authorize any financial institution in which Seller maintains any funds (a "Bank Account") to remit to Purchaser monies equal in amount to any Third Party Fee, Additionally, Seller hereby grants to Purchaser a security interest in any Bank Account as security for Seller's obligations with respect to any Third Party Fee Uncluding any and all Advances) and authorizes Purchaser to record all appropriate UCC financing statements or other lien document on Seller's behalf against any such Bank Account and to further contact any such fmancial institution directly in order to enforce the promises and obligations of Seller hereunder. PURCHASE AGREEMENT - Page 6 of 18 ~ 032449.oooJ NEWYORK 376215 vI ) ! (d) Notwithstanding section 7.2, in the event Seller fails to honor its promise to sell to the Purchaser the Settlement Payments hereunder for any reason (other than should Seller enter into a Third Party Transaction) and in consideration for Purchaser's promises and covenants in this Agreement and in return for Purchaser's promise to promptly initiate proceedings to secure the Court order, Seller agrees and promises to pay Purchaser a fee in the amount of $3,000.00 <the "Fee") upon demand made by Purchaser on Seller. Seller agrees and acknowledges that any Fee is reasonable and proper in order to compensate Purchaser for its costs and expenses and is not in the nature of a Penalty. To the extent that any of the Fee is deemed to be a penalty, Seller expressly agrees that those charges not so deemed a penalty are enforceable. Seller further agrees that any Fee may be collected by Purchaser pursuant to the terms of the Special Irrevocable Power of Attomey pursuant to which Purchaser may authorize any financial institution to remit to Purchaser from any Bank Account monies equal to any Fee (including all Advances) and authorizes Purchaser to record all appropriate DCC financing statements or other lien document on Seller's behalf against any such Bank Account and to further contact any such financial institution directly in order to enforce the promises and obligations of Seller hereunder. (e) Seller agrees and acknowledges that any other amounts received by Seller from Purchaser on a transaction (j) that were paid by Purchaser to Seller in error for any reason, (jj) where subsequent to such receipt of funds by Seller a Court Order is vacated or otherwise overturned or rendered void for any reason andlor (jj) that were received by Seller directly from the annuity iS,suer and which should have been paid directly to Purchaser under any Court Order (collectively, the "Other Amounts, may be collected by Purchaser pursuant to the terms of the Special Irrevocable Power of Attorney pursuant to which Purchaser may authorize any financial institution to remit to Purchaser from any Bank Account monies equal to any other amounts and authorizes Purchaser to record all appropriate DCC financing statements or other lien document on Seller's behalf against any such Bank Account and to further contact any such financial . institution directly in order to enforce the promises and obligations of Seller hereunder. Seller agrees and acknowledges that it is reasonable and proper to compensate Purchaser for the costs related to any other amounts, and such compensation is not in the nature of a Penalty. To the extent that any other amounts are deemed to be a penalty, Seller expressly agrees that those charges not so deemed a penalty are enforceable. 3.14 Disclosure Statement. Seller acknowledges that Purchaser has previously provided to Seller a disclosure statement prepared and delivered in accordance with applicable law which sets forth certain of the main terms of the Transaction. Seller has read and understands said disclosure statement and has had the opportunity to review and discuss the disclosure statement and this Transaction with an attorney, CPA, accountant, or other professional advisor of Seller's choice. To the extent that applicable law requires Seller to consult with an attorney, CPA or other licensed professional advisor regarding the Transaction, Seller has done so and has disclosed to Purchaser, in writing, the name and address of such advisor. 3.15 Place of Residence. Seller represents and warrants that Seller resides in the State designated on page 1 of this Agreement. ARTICLE 4 ADDITIONAL AGREEMENTS OF THE SELLER PURCHASE AGREEMENT - Page 7 of 18 ~ 032449.0001 NEW YORK 376215 vi 4.1 Dutv to CooDerate; Periodic Pavments Held in Trust; Guarantv. Upon Closing of the Transaction, the Seller shall cooperate with and shall take all reasonable action necessary to provide the Purchaser the practical benefits of the bargain under this Agreement, specifically including, without limitation, the duty to deliver immediately to the Purchaser any checks, funds or other form of payment made under the Settlement Documents which may be hereafter received by the Seller or anyone (other than the Purchaser) claiming by or through the Seller, to the extent that such payment constitutes a Periodic Payment. Any such Periodic Payment that is at any time received by the Seller or any person claiming by, through, or under the Seller (directly or indirectly) shall be received and held by the Seller (or such other person) in trust for the benefit of the Purchaser. The Seller shall immediately deliver and pay such Periodic Payments to the Purchaser. After Closing, the Seller shall have no interest in any Periodic Payment other than that of a trustee for the benefit of the Purchaser. Seller hereby guarantees the prompt performance of all of the duties and obligations set forth herein and in all of the Transaction Documents. 4.2 Seller's Protection of Third Parties. The Seller releases and waives all claims and objections against each of the Annuity Issuer, the Annuity Owner, the Settlement Obligor and any other person, entity, or party obligated under the Settlement Documents to make the Settlement Payments, the Annuity Payments, and the Periodic Payments (collectively the "Obligors") for (i) making the Periodic Payments to the Purchaser following entry of the Court Order contemplated in Section 5.5 and Closing of the Transaction; (;j) for allowing, permitting, facilitating, not opposing, ancl/or cooperating with the Purchaser and Seller in connection with the Transaction and this Agreement and entry ofthe Court Order; (jjj) for not appearing or objecting in the proceeding in which the Court Order was entered; uv) for failing or refusing to assert any claim that the Periodic Payments were not transferable or assignable; and (v) for honoring the Court Order. Seller agrees to indemnify, hold harmless and defend the Obligors in connection with the releases and waivers set forth in this section 4.2 and from and against any future claims to or against'the Periodic Payments by any person other than the Purchaser or the Purchaser's lawful assigns. 4.3 Access to Information. The Seller agrees and hereby authorizes the Purchaser to obtain and perform credit checks and obtain credit reports on the Seller and secure and perform other information and investigations including, without limitation, lien searches, searches for abstracts of judgmenta or other claims against the Seller, criminal background checks, checks of court records, and contacting Seller's present and previous employers, landlords, creditors, and references. Seller hereby authorizes Purchaser to contact the Settlement Obligor, the Annuity Issuer, ancl/or the Annuity Owner and any other person or entity obligated to make the Settlement Payments ancl/or Annuity Payments to verify any and all information relative to the Settlement Payments ancl/or the Annuity Payments. Seller hereby authorizes, directs, instructs, and consents to the release by the Settlement Obligor, the Annuity Issuer, ancl/or the Annuity Owner and any other person or entity obligated to make the Settlement Payments ancl/or Annuity Payments of any and all information to Purchaser relative to the Settlement Documents, the Settlement Payments, ancl/or the Annuity Payments. The Purchaser shall be under no duty or obligation to perform any such check or investigation and the Seller shall place no reliance on the Purchaser's actions in doing so. Seller further authorizes and consents to Purchaser recording and/or registering information regarding this transaction in the National Association of Settlement Purchasers Anti-Fraud datsbase. 4.4 Disclosure of MisreDresentations and Breaches. The Seller shall immediately notify the Purchaser if any of the representations or warranties of the Seller in this Agreement or any of the Transaction Documents are determined by the Seller to have been incorrect, inaccurate, or misleading when they were made, or which are later determined by the Seller to be incorrect, inaccurate or misleading. PURCHASE AGREEMENT - Page 8 of 18 e 032449.0001 NEW YORK 376215 vi 4.5 Further Assurances. Seller shall promptly execute all other documents, and perform or refrain from performing such additional acts, as may be necessary or reasonably requestsd by the Purchaser to conclude the Transaction and to assure the Purchaser's receipt of all ofthe benefits of the Transaction, including the Periodic Payments. 4.6 This is Not a Loan. THE SALE OF THE PERIODIC PAYMENTS BY THE SELLER TO THE PURCHASER IS AND SHALL CONSTITUTE AN ABSOLUTE AND IRREVOCABLE ASSIGNMENT AND CONVEYANCE BY THE SELLER TO THE PURCHASER OF THE PERIODIC PAYMENTS, AND THE SELLER ACKNOWLEDGES AND AGREES THAT THIS TRANSACTION IS NOT INTENDED IN . ANY RESPECT TO BE A LOAN FROM THE PURCHASER TO THE SELLER OR TO CREATE ANY TYPE OF LENDERlBORROWER RELATIONSHIP, PARTNERSHIP OR OTHER JOINT OWNERSHIP ARRANGEMENT BETWEEN THE SELLER AND THE PURCHASER. UPON THE CLOSING OF THIS TRANSACTION THE SELLER SHALL HAVE NO RIGHT OR ABILITY TO FINANCE OR REFINANCE THE PERIODIC PAYMENTS WITH PURCHASER OR ANY OTHER PERSON OR ENTITY, 4.7 Prior or Other Nel!:otiations To the extent that Seller has previously engaged in negotiations or discussions or has signed or executed a contract with other parties or entities regarding the sale, assignment, transfer, conveyance, mortgage, encumbrance, or pledge ofthe Periodic Payments, Seller has terminated all such negotiations or discussions and/or has canceled and rescinds all contracts, or agreements with such parties or entities. By signing this Agreement, Seller hereby authorizes Purchaser to rescind, terminate and cancel, on Seller's behalf, all discussions, negotiations, contracts, and agreements with such persons or entities. Seller agrees to work and deal exclusively with Purchaser regarding a sale oithe Periodic Payments and secure the Court Order. 4.8 Beneficiaries. Seller acknowledges and agrees that Purchaser shall be entitled to receive the Periodic Payments to the exclusions of any beneficiary, heir, executor, representative, or dependent of Seller. To the extent deemed necessary by Purchaser and/or if requested by Purchaser, Seller shall execute and sign any document, agreement, waiver, beneficiary change, or other document to reflect, evidence, and confirm that Purchaser shall be entitled to receive the Periodic Payments to the exclusion of Seller and/or Seller's heirs, beneficiaries, representatives, dependents, and executors. Upon consummation of this Transaction, entry of the Court Order, and Closing, Seller and Purchaser agree, acknowledge and confirm that Seller and any beneficiary, heir, executor, representative and/or dependent of Seller shall be absolutely and forever divested of any right, title, claim or interest in the Periodic Payments. 4.9 No Snecial Relationshin with Purchaser. Seller acknowledges that Purchaser is not Seller's agent, representative, or fiduciary and Seller is not Purchaser's customer or client and the only relationship by and between Seller and Purchaser is an s.rtnslength relationship of seller and purchaser under this Agreement. ARTICLE 5 CONDITIONS TO CLOSING The obligations of the Purchaser to effect the Transaction contemplated in this Agreement shall be subject to the performance and satisfaction, prior to the Closing Date, of each of the following conditions, unless waived in writing by the Purchaser: PURCHASE AGREEMENT - Page 9 of 18 ~ 032449.0001 NEW YORK 376215 vl ) r-'~, . ) ! . 5.1 Deliverv of Documents. The Seller shall have delivered to the Purchaser duly executed originals (mcluding all attachments and exhibits) of the following documents, each of which shall be in form, scope and substance satisfactory to the Purchaser in its sole and absolute discretion: (i) This Agreement, along with all required schedules, exhibits and addendums hereto: (jj) The Seller's Affidavit certifying certain information about the Seller, in form and substance acceptable to Purchaser, in its sole and absolute discretion; (ill) The original or true and aCClllate copies of the Settlement Documents; <iv) A signed Spousal Consent form; copies of prior divorce and/or annulment decrees, including property divisions and settlements; a current driver's license or government issued ID card; a social security card or other evidence or Seller's social security number, acceptable to Plllchaser, in its sole and absolute discretion; if requested by Purchaser; copies of a recent check, payment stub or bank account records and statements showing a deposit to Seller's account a recent Settlement Payment (v) A completed and signed Due Diligence Disclosure Form; (vi) Executed Irrevocable Special Power of Attorney in favor of the Purchaser, its successors, assigns or designees, and granting, among other powers, the power to endorse and negotiate all checks and other instruments distributed by the Annuity Issuer, or other person, in payment of the Periodic Payments, as provided herein; (vii) Executed copies of all other agreements, documents, instruments, certificates, opinions of counsel, reports or other writings of any nature whatsoever required by this Agreement or deemed necessary, advisable or desirable by Purchaser to consummate the Transaction. 5.2 Renresentations And Warranties. All of the Seller's representations and warranties in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though such representations and warranties were made on and as of the Closing Date. All of the Seller's representations and warranties set forth in this Agreement shall survive the Closing and shall remain effective during the Term of this Agreement. 5.3 Performance Of Oblie:ations. The Seller shall have performed, observed, satisfied, and complied with all covenants under this Agreement and the Transaction Documents on or before the Closing Date. 5.4 Absence of Liens. The Purchaser shall perform, at its own expense, such credit checks and lien searches on the Seller as the Plllchaser deems necessary. Seller grants to, Purchaser the right to offset from any sums due to the Seller the amount of any lien, or other obligation of Seller that Purchaser determines may affect Purchaser's title to and/or her rights to receive the Periodic Payments. If requested by Purchaser, Seller agrees to obtain confirmation from the IRS or other taxing authorities that there are no outstanding federal, state or local tax liabilities (whether income tax or otherwise) beyond the current tax year in which this Agreement shall be executed. 5.5 Colllt Apnroval of the Transaction. Seller understands and acknowledges that the Transaction contemplated by this Agreement must be approved by a court of competent jurisdiction in accordance with PURCHASE AGREEMENT - Page 10 of 18 ~ 032449.0001 NEWYORK 376215 vi ) I an applicable state transfer statute of a state ofthe United States of America and must be structured, consummated, closed and approved in accordance with certain applicable laws of the United States of America. A further condition and contingency to the Closing of the Transaction is that the Purchaser and/or the Seller shall have procured and/or received a court order, judgment, or decree (the Court Order, as previously defined) approving the sale, assignment, and transfer of the Periodic Payments to Purchaser. Seller shall cooperate with and assist Purchaser, in all respects, to secure said Court Order. Ifthe Court Order is denied, Purchaser may, but shall have, no obligation to, appeal such denial. If, however, Purchaser does pursue an appeal of such denial, Seller shall fully cooperate and assist Purchaser in connection with said appeal. 5.6 Other Reauirements. Such other requirements as Purchaser may in writing inform Seller, in Purchaser's sole discretion, are required to be satisfied. ARTICLE 6 WAIVER OF RESTRICTIONS; INDEPENDENT ADVICE; EXEMPTIONS; INDEMNITIES 6.1 Restrictions on Assirnabilitv. Seller acknowledges that, to the extent that the Settlement Documents pmport to contain any restriction on the ability, right, or power of the Seller to assign, sell, transfer, mortgage, encumber, alienate, or convey the Periodic Paymente, that such restrictions were included in the Settlement Documents for Seller's benefit and not for the benefit or protection of any other person. Seller, on behalf of himself and his heirs, beneficiaries, executors, administrators, successors, and legal representatives, hereby WAIVES AND RELEASES all rights and benefits of the Seller in, to, or under, any and all restrictions on assignability contained in the Settlement Documents. To the extent that any such restrictions were included to insure favorable tax treatment or benefits for the Seller or for any other pmpose, Seller acknowledges that Seller is not relying upon any representation or warranty of the Purchaser with respect to the tax consequences of the Transaction or the waiver contained herein. 6.2 Indeuendent Advice. Seller acknowledges and agrees that (i) Seller has had the opportunity to receive legal, tax, financial, accounting and/or business or personal advice regarding the Transaction from Seller's own legal, tax, financial, accounting and/or other advisors and has either received such advice or has knowingly and voluntarily waived and declined the opportunity to seek such advice; (ill Seller has not received any financial, accounting, tax, legal, business, or other advice from the Purchaser; and uv) Seller has relied solely upon the advice of Seller's own financial, accounting, tax, legal, business and..,ther advisors in entering into this Agreement and consummating the Transactions. SELLER FURTHER ACKNOWLEDGES THAT SELLER IS FULLY AWARE OF THE ECONOMIC CONSEQUENCES OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT. THIS IS AN IMPORTANT FINANCIAL TRANSACTION AND SELLER SHOULD CONSULT WITH HISIHER OWN ADVISORS REGARDING SAlD TRANSACTION. 6.3 Waiver of Exemptions. Seller has signed this Agreement and is entering into this Transaction of his own free will and volition and hereby expressly and voluntarily W AlVES and RELEASES all rights and benefits of Seller in, to, or under all applicable laws and statutes and all provisions and principles of the common law, regulations, and any constitution which pmport to exempt the Periodic Payments and/or any payments due or payable under the Settlement Documents from any claims or damages by, through or on behalf of Purchaser or its successors or assigns or which exempt the Periodic Payments from execution, attachment, garnishment, seizure or other process by Purchaser, which may be necessary to enforce this Agreement or allow Purchaser to receive the practical benefits of the Transaction. PURCHASE AGREEMENT - Page 11 of 18 -6) Initials 032449.0001 NEW YORK 376215 vI ) /~") " 6.4 Indemnities. The Seller further agrees and covenants (both for Seller and on behalf of Seller's heirs, executors, administrators, representatives, successors, and assigns): CD to release, indemnify and hold the Purchaser harmless from any claim that the Periodic Payment Rights were not assignable; (ij) to never claim, either in a suit or in the defense of an action by the Purchaser or any other person, that the Periodic Payment Rights were not assignable. 6.5 Seller's Protection of Third Parties. Seller acknowledges that the Settlement Agreement, Annuity andlor other Settlement Documents may contain provisions that restrict or purport to restrict the assignment of the Periodic Payments. Seller hereby (j) releases the Annuity Owner, the Annuity Issuer, the Settlement Obligor and all other persons or entities obligated to make the Periodic Payments pursuant to the terms of the Settlement Agreement andlor Annuity from any claims, causes of action, or liability, for complying with Seller's instructions regarding the Periodic Payments; (j.i) releases and waives all claims, causes of action, or liability against the Annuity Owner, the Annuity Issuer, and Settlement Obligor and all other persons or entities obligated to make the Periodic Payments for failing and refusing to oppose the Transaction based on the presence of anti'assignment or anti-encumbrance language in the underlying Settlement Documents or for any other reason; (ill) for making and sending the Periodic Payments to Purchaser in accordance with the terms of this Agreement and the Court Order; (iv) for allowing, permitting, facilitating, cooperating with, andlor not opposing the Transaction and entry of the Court Order; (v) for not appearing or objecting in the proceeding in which the Court Order was entered; (vi) for failing or refusing to assert that any claim, defense, or position that the Periodic Payments were not transferable or assignable; and (vii) for honoring and complying with the Court Order. Seller and Purchaser acknowledge and agree that the Annuity Owner, Annuity Issuer, andlor Settlement Obligor will discharge their obligation to make the Periodic Payments due under the Settlement Agreement andlor Annuity by delivering said Periodic Payments to Purchaser in accordance with this Agreement and the Court Order. Seller agrees to indemnify, hold harmless, and defend the Obligors in connection with the releases and waivers set forth in this section 6.5. Seller and Purchaser agree to indemnify, hold harmless, and defend Obligors from and against any future claims to or against the Periodic Payments by any person or entity other than the Purchaser and the Purchaser's successors and assigns. Seller agrees that this protection of third parties shall be binding upon Seller and Seller's heirs, executors, administrators, representatives, successors, estate, and any person or entity claiming by, through or under Seller (directly or indirectly), and shall survive the consummation of this Agreement. ARTICLE 7 TERMINATION & RESCISSION 7.1 Termination. Unless otherwise provided by applicable law or unless agreed or extended in writing by the Purchaser and the Seller, this Agreement shall automatically terminate one hundred eighty (180) days from the date hereof if any condition to the Purchaser's obligations hereunder has not been satisfied prior to that date, unless the failure to satisfy such conditions is the result of a msterial breach of this Agreement by the Seller. Provided, however, that if the Purchaser has filed and is working to secure the Court Order, then this Agreement may not be terminated by Seller until and unless the Court Order proceeding is resolved and decided, one way or another, except with the written consent of Purchaser. Purchaser may terminate this Agreement at anytime, even after the proceeding to secure the Court Order has 'been filed. In the event of termination of this Agreement as provided in this Article, this Agreement shall forthwith become void and of no further force or effect, and there shall be no liability or obligation on the part of any of the parties hereto or any of their respective officers, directors, employees, agents, attorneys, partners, trustees, affiliates, or associates, except that the obligations of the parties set forth in PURCHASE AGREEMENT -Page12of18 @ 032449.oooJ NEW YORK 376215 vi J Articles 6, 7 and 8 shall survive the termination of this Agreement for a period of five (5) years from and after the date of termination hereof, and except that the obligations of the parties set forth in Article a, Section a.la, shall survive the termination of this Agreement for a period of eighteen (IB) months from and after the date of termination hereof. To the extent that the termination of this Agreement results from the willful breach by the Seller of any of the Seller's representations, warranties, covenants or agreements set forth in this Agreement, nothing herein shall prejudice the ability of the Purchaser from seeking damages from the Seller for any breach of this Agreement, including, without limitation, attorneys' fees and the right to pursue any remedy at law or in equity, subject to and in accordance with applicable law. 7.2 Rescission. Unless prohibited, expanded, or otherwise provided by applicable law, Seller shall have a three (a) day right of rescission after execution of this Agreement, during which Seller may rescind and cancel this Agreement without any further duty, liability, or obligation to Purchaser. If applicable law provides for a longer period during which the Seller may rescind this Agreement, then Seller shall have until the end of the time period provided by applicable law to rescind and cancel this Agreement without any further duty, liability, or obligation to Purchaser. Seller must exercise any right of rescission by notifying Purchaser, in writing, of Seller's intent to rescind and cancel this Agreement within the time period provided by this section 7.2 or applicable law, as the case may be. Notice of Seller's intent to rescind and/or cancel the contract shall be timely as long as it is delivered to Purchaser or post"marked by the deadline for exercising such right of rescission and cancellation. ARTICLE 8 GENERAL PROVISIONS 8.1 Notices. Any notice or demand given under this Agreement shall be given by (j) hand delivering it, (ti) mailing it by certified or registered mail, postage prepaid, return receipt requested, or (ili) overnight courier service such as Federal Express, in each case addressed to the Purchaser or to the Seller, at the addresses set forth on age 1 of this Agreement or at such other place as either party may specify in writing to the other party. B.2 Governin~ Law. This Agreement, the Transaction Documents, and the rights, duties, and obligations of the parties under said documents and agreements, shall be governed, interpreted, construed, and enforced in accordance with the laws ofPA and the United States of America. Venue for any cause of action arising out of a breach of this Agreement shall be proper in the Stste or Commonwealth ofPA. 8.a Entire Aereement. This Agreement, the exhibits, and the Transaction Documents set forth the entire agreement of the Seller and the Purchaser with respect to the Transaction and supersede all prior agreements, arrangements, and understandings relating to the Transaction, whether oral or written. 8.4 Amendment; Waiver. This Agreement and the Transaction Documents may be amended, modified, superseded or canceled, and any term, provision, or obligation of this Agreement and the Transaction Documents may be waived, by a written instrument signed by the parties to same. In the case of a waiver of an obligation, term, or provision of this Agreement, any such waiver must be in writing and signed by the party waiving compliance with same. The failure of any party to require performance of any provision ofthis Agreement or any of the Transaction Documents shall in no way affect the right to enforce the same. No waiver by any party of any condition contained in this Agreement or any of the Transaction Documents, or of the breach of any term, provision, representation, warranty or covenant of same shall be PURCHASE AGREEMENT - Page 13 of18 Q Initials 032449.0001 NEWYORJ( 376215 vI ) deemed to be or construed as a further or continuing waiver of any such condition or breach, or as a waiver of any other condition or of the breach of any other term, provision, representation, warranty or covenant. 8.5 Severability. If any provision of this Agreement or any Transaction Document is held to be to any extent unenforceable or invalid then the parties hereto agree that such provision shall be deemed to be modified for purposes of performance of this Agreement or any Transaction Document to the extent necessary to render it lawful and enforceable, or if such a modification is not possible without materially altering the intention of the parties hereto, then such provision shall be severed from the agreement or document for purposes of the performance or enforcement of same. The validity of the remaining provisions of the Agreement and the Transaction Documents shall not be affected by any such modification or severance. Any such finding of unenforceability or invalidity of a provision or this Agreement in any given jurisdiction shall not prevent the enforcement of any such provision or any other provision of this Agreement in any other jurisdiction to the maximum extent permitted by law. 8.6 Availabilitv of Eouitable Remedies. Since a breach of the provisions of this Agreement by the Seller could not adequately be compensated by money damages, the Purchaser shall be entitled, either before or after the Closing, in addition to any other right or remedy available to the Purchaser, to an injunction restraining such breach or a threatened breach and to specific performance of any such provision of this Agreement, and in either case, no bond or other security shall be required in connection therewith, and the Seller hereby consents to the issuance of such injunction and to the ordering of specific performance. 8.8 Attornevs' Fees and Court Costs. In the event of any action at law or in equity between the parties hereto to enforce any of the provisions hereof, the unsuccessful party to such action or litigation shall pay to the successful party all costs and expenses, including, without limitation, actual attorneys' fees expended or incurred in connection therewith by such successful party; and if the successful party shall recover judgment in any such action or proceeding, such costa, expenses and attorneys' fees may be included in and as a part of such judgment. 8.9 Headings; Gender; Numbers; Interoretation. All of the headings contained in this Agreement are for purposes of conveuience or reference only, and shall not be deemed to be a part of this Agreement or to affect the meaning, construction, interpretation or scope of this Agreement or any of the provisions hereof in any way. All references in this Agreement to the masculine, feminine, or neuter gender, shall, where appropriate, be deemed to include all other genders. All plurals used in this Agreement or any Transaction Document shall, where appropriate, be deemed to be singular, and vice versa, and shall refer solely to the parties hereto except where otherwise specifically provided. The normal rule of contractual construction that any ambiguities in a contract are to be resolved against the drafting party shall not be ,.used in the interpretation ofthis Agreement, any ofthe Transaction Documents, or any amendments or exhibits to same and no presumptions regarding the interpretation of said documents and agreements shall be made as a result of the drafting of said agreement and documents. 8.10 Survival. All of the representations, warranties, covenants, agreements, indemnifications, obligations, duties, and liabilities of the Seller and the Purchaser set forth in this Agreement and the other Transaction Documents shall survive until the fifth (5th) anniversary of the Purchaser's actual receipt of good funds representing the last of the Periodic Payments, and shall not be deemed merged into the Transaction Documents. 8.11 Binding Effect. Subject to the restrictions on transfers and encumbrances set forth herein, all :.:::':=. ==,7::;"""M",,"Asre_m~'''' fuo"__D_--e 032449.0001 NEW YORK 376215 vI I , ) ) inure to the benefit of and be binding upon and be enforceable by the undersigned parties and their respective heirs, executors, administrators, representatives, successors and permitted assigns. NOTWITHSTANDING ANY CONTRARY PROVISION OF THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, IT IS EXPRESSLY INTENDED AND AGREED THAT THE SELLER'S SALE TO THE PURCHASER OF THE PERIODIC PAYMENT RIGHTS SHALL BE BINDING ON THE SELLER'S ESTATE AND THE SELLER'S HEIRS, EXECUTORS, BENEFICIARIES, REPRESENTATIVES AND ADMINISTRATORS, IRRESPECTIVE OF ANY DESIGNATION OF THE SELLER'S ESTATE AS THE BENEFICIARY UNDER THE SETTLEMENT DOCUMENTS. 8.12 Purchaser's Ri"ht to Assilm. The Purchaser (and each and any assignee of the Purchaser) may assign all of its right, title, and interest in and to this Agreement, the other Transaction Documents, the Annuity, the Settlement Documents, and the Periodic Payments either before or after the Closing and without any requirement of prior consent from or notice to the Seller. Without limiting the generality of the foregoing, the Seller shall upon request of the Purchaser or any assignee of the Purchaser execute and deliver, any such documents as the Purchaser or any such assignee may require to effectuate and consummate the transactions contemplated hereby. 8.13 Recitals Incoroorated. Each of the recitals to this Agreement is hereby incorporated and included in this Agreement by this reference, as if fully set forth at length. 8.14 Holdback. In the event that the Closing occurs within sixty (60) days ofthe first scheduled monthly payment of the Periodic Payments, Purchaser may, in its discretion at Closing, hold in Purchaser's bank account and deduct from the Purchase Price, an amount equal to no more than the first two (2) monthly payments to be received by Purchaser hereunder. Upon the receipt by Purchaser of the first monthly payment from the Annnity Owner (thereby insuring the effective change of Payment address), Purchaser shall immediately release such funds withheld from the Purchase Price to the Seller. Purchaser shall have the right to retain funds sufficient to cover any payments not received by Purchaser. 8.16 Multillle Orilrinals. This Agreement may be executed in multiple originals, each of which shall be deemed an original Agreement. 8. 17 Usury Savinors Clause. THIS IS NOT A LOAN. It is the intention of Purchaser and Seller that the provisions of this Agreement constitute a purchase and sale of all of Seller's right, title and interest in and to the Periodic Payments and it is not, nor should it be construed as, a loan. Nonetheless, in order to protect against any conceivable determination that the conveyance was not effective, it is the intent of Purchaser and Seller to conform to and contract in strict compliance with applicable usury law from time to time in effect. All agreements between Purchaser and Seller are hereby limited by the provisions of this paragraph which shall override and control all such agreemsnte, whether now existing or hereafter arising and whether written or oral. In no way, nor in any event or contingency (including but not limited to prepayment, default, demand for payment, or acceleration of the maturity of any obligation) shall the rate of interest taken, reserved, contracted for, charged or received under this Agreement or otherwise, exceed the Maximum Lawful Rate (defined below). If, from any possible construction of any document, interest would otherwise be payable in excess of the Maximum Lawful Rate, 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 or new document. As used herein, the term "Maximum Lawful Rate" means the maximum nonusurious rate of interest per annum permitted by whichever of applicable United States federal law or applicable state law permits the higher interest rate. PURCHASE AGREEMENT - Page 15 of 18 (9 Initials 032449.0001 NEW YORK 37621S vi } /'-~." 1 , , 8.18 Rie:ht of First Refusal. Seller agrees that during the Term, Seller will not sell, assign, borrow against, pledge, or otherwise encumber anyone or more of the Settlement Payments not included in the Periodic Payments assigned to Purchaser without first giving Purchaser written notice of the terms of any such proposed loan or sale, whether such proposal was made orally or in writing. If, within ten (10) business days of receiving such notice, Purchaser informs Seller that it elects to match the terms of any such proposed loan or sale, then Seller shall execute all documents necessary to consummate such transaction with Purchaser on those terms. The foregoing right of first refusal shall survive the exercise of any right of cancellation or rescission that Seller or Purchaser may have under this Agreement, or applicable law. This right of first refusal is assignable by Purchaser, however Purchaser may elect, at its sole option, not to permit the assignment of this right of first refusal upon the assignment of this Agreement, in which event this right of first refusal shall remain the property of Purchaser. PURCHASE AGREEMENT - Page 16 of 18 fi7 Initials 032449.0001 NEW YORK 376215 vi ) ) , , IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives effective as ofthe date first set forth above. SELLER: ~ }111St1 ~ Richard L. McGuire 1-/t.j~05' Date Acknowledl!1l1ent For ( State Of P-e..h "5Y I VGlt\ t"'- ~ CountyOf~ ) ss: , I, a Notary Public of the County and State aforesaid, do hereby certify that ~whose name is signed to the foregoing Purchase Agreement bearing a date of \ -I <.f - 05"" . has this day acknowledged the same before me and that said signatory has signed said Purchase Agreement as said signatory's free act and deed. Given under my hand this \Llili day of \Jd. huo..r'-( . ~oG. ~r~-,<;('~ Notary ~c ' State of ~.<ly/vC\nlo... KOlAR S CRYSTAL FlIEY-SCllADE. NOTARY MOO MECHAHICSBURG BDRO., CUMBERlAND co. MY COMMISSION EXl'l DEC. 2D Print Name Here:~ ~ IT ~ -ScP-.o.J-e... My Commission Expire . . :;:).-c;-- t;" PURCHASER: STRUCTURED SETTLEMENT INVESTMENTS, Ltd. By: Date Its: PURCHASE AGREEMENT - Page 17 of 18 ~ 032449.0001 NBWYORK 376215 vI 0' j ) j 'I 0 I EXHIBIT A TO PURCHASE AGREEMENT 1. DATE OF PURCHASE AGREEMENT: 12/3012004 2. PARTIES TO PURCHASE AGREEMENT: A. Seller.- Richard L. McGuire, 6412 Carlisle Pike Lot#1I0, Mechanicsburg, PA, 17050, SSN: 185-68-9147, Phone:717-79~531 B. Purchaser -. Structured Settlement Investruents, Ltd. 666 Fifth Avenue, #349 New York City, NY 10103 3. ANNUITY DOCUMENTS lNFORMATION: A. Annuity Issuer: Employers Life Insurance Company of Wausau B. Annuity Owner: Nationwide Mutual Insurance Company C. Annuity Policy#: 32 Cert. Number: 1532 D. Annuity Payments: As stated in the annuity conlract (or similar document) set forth as Exhibit B to this Agreement 5. PURCHASE PRICE: A payment of $20,000.00 due 06/04/2008. $10,981.49 4. PERIODIC PAYMENTS: 6. ALLOCATION OF PURCHASE PRICE: (set forth amount ofnurchaseprice allocated to each naVlnent) 6/4/08 20,000.00 10,981.49 1bis Exhibit A is incorporated into and made a part of the Purchase Agreement to which this Exhibit A is attached, and the other Transaction Documents as if fully set forth and incorporated into said agreements, contracts, and documents, at length. Seller acknowledges that it is hislher intent to assign, sell, transfer, and convey to Purchaser the Periodic Payments described above. Seller acknowledges that the closing and funding of the Transaction described herein and in the Transaction Documents is expressly contingent upon entry of a Court Order, as described in section 5.5 of the Purchase Agreement. PURCHASE AGREEMENT - Page 18 of 18 ~ 032449.0001 NEW YORK 376215 vI p ~ 1-'l~ - C> 0- ~ ~ -u ~ 0t F <>0 ~ ::b -(- r- ......~ c., ';':',~ ';{j ,-l -('1 ~1- I I'" L.i"' [.... ~,' i ~"'", --J. ((;) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW *** INRE: RICHARD L. McGUIRE NO. DS- -J>J15 f)' . I '---r::: l;IVl \... t'</L.Yl--l PRAECIPE FOR ENTRY OF APPEARANCE TO THE OFFICE OF THE PROTHONOTARY: Kindly enter my appearance on behalf of the Petitioner, STRUCTURED SETTLEMENT INVESTMENTS, LTD., in the above-captioned matter. RO E J. DONOHU Attorney for Petitioner Attorney J.D. #83485 DONOHUE, McKEE, MATTSON & GREEN 1100 Township Line Road Havertown, P A 19083 (610) 853-4400 ATED: February 11,2005 -t'l r.;'l Cj (- _,_J ,~) ROBERT J. DONOHUE, JR., ESQUIRE DONOHUE, McKEE, MATTSON & GREEN Attorney I.D. #83485 1100 Township Line Road Havertown, P A 19083 (610) 853-4400 FEB 1 7 2005z',J pi INRE: RICHARD L. McGUIRE IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA NO. 05 - pro n. . / '----r:: Lr u,l ,ft?..y>--7 ... PRELIMINARY ORDER AND NOW, this J. 3 t1I day of {i8.1.fL 0- , 2005 upon the Petition to Approve the Sale and Purchase of a Structured Settlement Annuity, this matter is listed for a Hearing to be held on the #t .1d:- I "3 day of Courtroom S- at 10 : O(J ,2005 in the Court of Common Pleas of Cumberland County, o'clock4. M. BY THE COURT: ,00 . f}r>:J 0'4- ], . FEB 1 7 Z005.p IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW *** INRE: RICHARD L. McGUIRE NO. D~ - 00 C", u', l ~-'->1 PRAECIPE FOR ENTRY OF APPEARANCE TO THE OFFICE OF THE PROTHONOTARY: Kindly enter my appearance on behalf of the Petitioner, STRUCTURED SETTLEMENT INVESTMENTS, LTD., in the above-captioned matter. -~~5JsS Attorney for Petitioner Attorney LD. #83485 DONOHUE, McKEE, MATTSON & GREEN ' . 1100 Township Line Road Havertown, P A 19083 (610) 853-4400 ,,, ~ ATED: February 11,2005 1..;';,. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PEN SYLVANIA CIVIL DIVISION *** INRE: RICHARD L. McGUIRE No. 05-880 Civil Term *** CERTIFICATE OF SERVICE I, ROBERT J. DONOHUE, JR., ESQUIRE, hereby certify that I caused a true and correct copy of the Notice of Proposed Transfer of Structured Settlement Payment Rights and a opy of the Notice ofIdentity of Proposed Transferee upon the Structured Settlement Obligor and uity Issuer by Certified Mail, Return Receipt Requested, Restricted Delivery as follows: Nationwide Mutual Insurance Company One Nationwide Plaza Columbus, OR 43215-2220 Employers Life Insurance Compan 115 W. Wausau Avenue P.O. Box 8013 Wausau, WI 54402-8013 Date of Mailing: March 12,2005 Copies of the United States Postal Service Domestic Return Receipts executed b Nationwide Mutual Insurance Company on March 12, 2005 and Employers Life Insurance Company ofWausau on March 15, 2005 are attached hereto as Exhibit "A". I understand that false statements made herein are made subject to the penalties 0 18 Pa. P.S. 94904 relating to unsworn falsification to authorities. ROBERT J. DONOH Attorney for the Plaintiff Attorney LD. #83485 DONOHUE, McKEE, MATTSON & GRE N, LTD. 11 00 Township Line Road Havertown. P A 19083 . . Complete Rems 1, 2, and 3. Also complete Rem 4 n RestrIcted Delivery Is desired. . Print your name and address on the reverse so that we can retum the card to you. . Attach this card to the back of the mailpiece, or on the Iront n space permits. 1. Article Addl'8SS8d to: Employers Life Ins Co of Wausau 115 W. Wausau Avenue Wausau, WI 54402-8013 3. Service li'PO III CeftIfIed Mall l:J Expr&s8 Mall l:J RegisleIod l:J Retum Receipt l:J Insured Mall l:J C.O.D. 4. Restr1clod Delivery? (Extra Fee) 7003 0500 0004 3584 595-02-M-1540 2. Article Number (I/Bn_from -label) PS Form 3811. August 2001 ~ Rolum ReceIpt 1 SENDER COMPLETE THIS "f LIVEr v . Complete Rems 1, 2, and 3. Also complete Item 4 n Restrtcted Delivery Is desired. . Print your name and address on the reverse so that we can return the card to you. . Attach this card to the back of the mailpiece, or on the Iront n space permits. 1. Article Addressed to; A. Signature B. Received by (Printed Name) x D.lsdellveryaddressdtfferentfrom m 17 If YES. enter delivery address below: Nationwide Mut. Ins. Co One Nationwide Plaza Columbus, OH 4321502229 :\: ServIce Type IllI Ceo1IIIed Mall l:J Expr&s8 Mall l:J Registered l:J Retum ReceIpt r Men;handlse l:J Insured Mall l:J C.O.D. 4. Restricted Delivery? (Extra Fee) l:J Yes 2. ArtIcle Number (r~from_1abeI) PS Form 3811, Auguoll2001 7003 0500 0004 3584 4447 eon.tlc -... ReceIpt '7 q 129" 02595-02-M-1540 EXHIBIT "A" OBERT J. DONOHUE, JR., ESQUIRE ONOHUE, McKEE, MATTSON & GREEN ttorney LD. #83485 1100 Township Line Road avertown, PA 19083 610) 853-4400 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PE NSYLVANIA CIVIL DIVISION *** INRE: RICHARD L. McGUIRE No. 05-880 Civil Term *** NOTICE OF IDENTITY OF PROPOSED TRANSFEREE UNDER P,S, SECTION 4003(6) 0: Nationwide Mutual Insurance Company One Nationwide Plaza Columbus,OH 43215-2220 A Petition has been filed with the Court of Common Pleas of Cumberland Co nty, Pennsylvania equesting the Court to approve the sale and purchase of structured settlement payme t rights for ichard L. McGuire ("Payee") to Structured Settlement Investments, Ltd., ("Transfer e"). Pursuant to 40 P.S. 94003(6) this is to provide you notice of certain informati relevant to the roposed Transferee. Structured Settlement Investments, Ltd. ddress of Transferee: 666 Fifth Avenue, #349 New York, NY 10103-0001 27- 0052765 If you have any questions concerning this matter contact the undersigned, DONOHUE, MCKEE, MATTSON & G EN, LTD. By: ..--':xI ROBERT J. DON ~ ROBERT J. DONOHUE, JR., ESQUIRE DONOHUE, McKEE, MATfSON & GREEN Attorney I.D. #83485 . I 100 Township Line Road Havertown, PA 19083 (610) 853-4400 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PE NSYLV ANIA CIVIL DIVISION *** INRE: RICHARD L, McGUIRE No. 05-880 Civil Term *** NOTICE OF PROPOSED TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS TO: Nationwide Mutual Insurance Company One Nationwide Plaza Columbus, OR 43215-2220 A Petition has been filed with the Court of Common Pleas of Cumberland Co nty, Pennsylvania requesting the Court to approve the sale and purchase of structured settlement payme rights from Richard L. McGuire ("Payee") to Structured Settlement Investments, Ltd. ("Transfere "). The structure settlement obligation exists because of a personal ~ury suffered by Payee as the result of a personal injury action which was settled out of Court. The Structured Sett1 ment Obligor is Nationwide Mutual Insurance Company. The Annuity Issuer is Employers Life Insur ce Company of Wassau, Contract Number 32 Cert. Number: 1532 with Payee as annuitant being the easuring life. A hearing has been scheduled for April 13, 2005 at 10:00 A.M. in Courtroom ,in the Court of Common Pleas of Cumberland County, Pennsylvania requesting that the Court appro e the Sale of certain structured settlement annuity payments due from you. You are hereby notified that you have the right to support, oppose, or otherwis respond this Petition, either in person, through counsel, or by written comment submitted to the Co rt and Transferee's counsel noted below, orby participating in the hearing, which will be h don April 13, 2005 in the Court of Common Pleas of Cumberland County, Pennsylvania, Written r sponses must be filed with the Court within twenty (20) days of your receipt of this notice in order to e considered by the court, . Attached to this notice are the following documents: 1) Petition to Approve Sale and Purchase of Structured Settlement Paym Pursuant to 40 P,S. Section 4001 et. seq. 2) Purchase Agreement between Payee and Structured Settlement Inves 3) Disclosure Statement signed by Payee DONOHUE, MCKEE, MATTSON & G By: ROBERT J. DONOR , JR., ES UIRE Attorney for Structured Settlement I vestments, Ltd. - Transferee '.'--- J ROBERT J. DONOHUE, JR., ESQUIRE DONOHUE, McKEE, MATTSON & GREEN Attorney I.D. #83485 . 1100 Township Line Road Havertown, P A 19083 (610) 853-4400 F B 1 7 zoo~J INRE: RICHARD L. McGUIRE IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA NO. oS - pro Oi ~L lffLvJ *** PRELIMINARY ORDER AND NOW, this J. 3 <PI day of ~f4?F ,2005 upon the Petition to pprove the Sale and Purchase of a Structured Settlement Annuity, this matter is listed for a Hearing to b held on the .fit IL...~ ~ I "3 day of .!:!"J'--"'" , 2005 in the Court of Common Pleas of Cumber! d County, Courtroom ~ at 10 : of) 0' clock4 . M. BY THE COURT: J. r:B 1 7 2005/ \ . ROBERT J. DONOHUE, JR., ESQUIRE DONOHUE, McKEE, MATTSON & GREEN . Attorney I.D. #83485 1100 Township Line Road Havertown, P A 19083 (610) 853-4400 RICHARD L. McGUIRE IN THE COURT OF COMMON] LEAS OF CUMBERLAND COUNTY, PENNSYL VANIA INRE: NO. OS - Pf() r C/U~C 1~ *** PRELIMINARY ORDER AND NOW, this day of , 2005 upon the Petition to Ap prove the Sale and Purchase of a Structured Settlement Annuity, this matter is listed for a Hearing to be b eld on the day of , 2005 in the Court of Common Pleas of Cumberlanc County, Courtroom at o'clock M. BY THE COURT: J. ROBERT J. DONOHUE, JR., ESQUIRE DONOHUE, McKEE, MA TISON & GREEN Attorney LO. #83485 . 1100 Township Line Road Havertown, P A 19083 (610) 853-4400 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNS VANIA CIVIL DIVISION INRE: NO. RICHARD L. McGUIRE *** FINAL ORDER AND NOW, this day of , 2005 upon the Petitione s Petition to Approve the Purchase of a Structured Settlement, any responses thereto, and after a Hearing held on the day of , 2005 this Court specifically finds that: (1) The interested parties in this matter are: Payee: Richard L. McGuire 64 I 2 Carlisle Pike, Lot # 110 Mechanicsburg, PA 17050 Structured Settlement Obligor: Nationwide Mutual Insurance Company One Nationwide Plaza Columbus, OH 43215-2220 Annuity Issuer: Employers Life Insurance Company ofWausau 115 W. Wausau Avenue P. O. Box 8013 Wausau, WI 54402-8013 (2) the transfer complies with the requirements of 40 P.S. Section 4001 et, se and will not contravene other applicable Federal or State Statutes or Regulations; (3) at least ten (10) days prior to the execution of the Purchase Agreement, Tr sferee, Structured Settlement Investments, Ltd., provided Payee a "Disclosure Statement" sett ng forth all the requirements contained in 40 P.S. Section 4003(a)(2); (4) the transfer of the Assigned Payments is in the best interest of the Payee, r ferenced in 26 D.S.C. g5891(b)(2)(A)(ii), taking into account the welfare and support of the Pa ee's dependants, if any; (5) Payee has been noticed in writing by Structured Settlement Investments, td. to seek independent professional advise regarding the transfer and has either received the advi e or has knowingly waived the advise in writing; (6) the transfer has been expressly approved by the Payee, Structured Settlem nt Obligor and the Annuity Issuer; or such approval is not required by law; (7) written notice of the Transferee's name, address and tax identification n ber was sent to the Annuity Issuer and the Structured Settlement Obligor and a copy of such n tice has been filed with this Court. (8) Transferee has provided written notice of the Application to the Annuity I suer, Structured Settlement Obligor, and any other interested parties as required by 40 P.S. 4004. (9) Jurisdiction and venue are proper for this Court, and proper notices were g ven to the Annuity Owner and Annuity Issuer. Based on the foregoing findings, it is hereby ORDERED AND DECREED at the "Purchase Agreement" attached to the Petition is hereby Approved and no party to thi proceeding shall hereafter refuse to honor this approved transfer. Employers Life Insurance Company ofWausau and Nationwide Mutual Insur ce Company are hereby Ordered to remit the annuity payment of $20,000.00 under Annu ty Policy #32, Certificate #1532 due on June 4, 2008 to Structured Settlement Investments, Ltd. or its registered successors, assigns, affiliates and/or beneficiaries by wire or Electronic Fun s Transfer, within seven (7) days of the payment due date, to the following account: ABA# 021-000-021 A/C #739154494 Account Name: Structured Settlement Investments Bank Name: JP Morgan Chase In the event that it is administratively impossible for the Annuity Owner and e Annuity Issuer to send the Assigned Payments via electronic funds transfer to the account liste above, payments are to be forwarded to an address designated in writing by Structured Settle ent Investments, Ltd. or its successors and/or assigns. It is further Ordered and Decreed that the Assigned Payments shall be paid to tructured Settlement Investments, Ltd., or its registered successor, assigns, affiliates and/or ben ficiaries, regardless of whether the Payee is living or deceased when the Assigned Payment bec mes due. It is further Ordered and Decreed that Structured Settlement Investments, Ltd., or its registered successors and/or assigns, may change the payment address where the Assi ned Payments are to be sent without further Order of this Court. Nationwide Mutual Insurance Company and Employers Life Insurance Comp yof Wausau are directed to issue a formal acknowledgment letter of the transfer within tw ty (20) days of the receipt of this Order. The formal acknowledgment letter shall be delivered to Structured Settlement Investments, Ltd. 666 Fifth Avenue, #349, New York, NY 1010 -0001. BY THE COURT: J. ROBERT J. DONOHUE, JR., ESQUIRE DONOHUE, McKEE, MA TISON & GREEN Attorney I.D. #83485 1100 Township Line Road Havertown, P A 19083 (610) 853-4400 INRE: IN THE COURT OF COMMON LEAS OF CUMBERLAND COUNTY, PENNSYLVANIA RICHARD L. McGUIRE NO. *** PETITION TO APPROVE SALE AND PURCHASE OF STRUCT D SETTLEMENT PAYMENTS PURSUANT TO 40 P.S. SECTION 400 et. seq. AND NOW comes Petitioner, STRUCTURED SETTLEMENT INVESTMENTS, Ltd., by and through their counsel, ROBERT J. DONOHUE, JR., ESQUIRE, who respectfully rep esents the following: 1. Petitioner, STRUCTURED SETTLEMENT INVESTMENTS, Ltd. (herein fter 'Transferee"), submits this Petition seeking approval for the transfer of structured settlem nt payment rights pursuant to 40 P.S. 9 4001. 2. Petitioner has been contacted by RICHARD L. McGUIRE, (hereinafter "P ee"), an adult individual who resides at 6412 Carlisle Pike, Lot 110, Mechanicsburg, Cumberland ounty, Pennsylvania 17050. 3. Payee is entitled to receive certain structured settlement annuity payments a result of a personal injury action related to an automobile accident and settled by a Release. A d tailed list c~ -0 -r-: --I --r- in '.Of' C;'; < ' (,.) ~_.J of payments which Payee is entitled to receive is attached as Exhibit "A". 4. The settlement of the personal injury action was not approved by Court. 5. Payee intends to sell the right to receive a payment of $20,000.00 due on J e 4, 2008, pursuant to the Purchase Agreement attached as Exhibit "B". 6. Payee is an employee of Gallagher Basset Services. 7. Payee has no dependents, as defined by the Pennsylvania Structured Settle ent Protection Act. 8. It is in the best interest of Payee to be authorized by this Court to enter int the Purchase Agreement, as Payee intends to use the money as a down payment to purchase a house since is planning to get married which would benefit Payee. WHEREFORE, Payee respectfully requests this Honorable Court to Approve the ale of Payee's rights to receive structured settlement annuity payments to Structured Settlement Investments, Ltd. ROBERT 1. DONOHUE, JR., ESQ Attorney for Petitioner Structured Settlement Investments, Ltd. VERIFICATION I, ROBERT J. DONOHUE, JR., ESQUIRE, being duly authorized by the Petition r herein, do make this Verification on the Petitioner's behalf; I do verifY that the facts set forth in the forego ng pleadings are true and correct to the best of my knowledge, information and belief; I do further verify at the information contained in the aforesaid pleading was provided to me by the Plaintiff and I have reason 0 believe that the aforesaid is true and correct; that as the authorized representative. These statements are made pursuant to the penalties of 18 P A C.S. Section 4904 r lating to unsworn falsification to authorities. DATED: '.. } j. ,) ) EXHIBIT A TO PURCHASE AGREEMENT L DATE OF PURCHASE AGREEMENT: 12130/2004 2. PARTIES TO PURCHASE AGREEMENT: A. Seller -- Richard L. McGuire, 6412 Carlisle Pike Lot#110, Mechanicsburg, PA, 17050, SS : 185-68-9147, Phone: 717-796-6531 B. Purchaser -- Structured Settlement Investments, Ltd. 666 Fifth Avenue, #349 New York City, NY 10103 3. ANNUITY DOCUMENTS INFORMATION: A. Annuity Issuer: Employers Life Insurance Company ofWausau B. Annuity Owner: Nationwide Mutual Insurance Company C. AnnuityPolicy#: 32 Cer!. Number: 1532 D. Annuity Payments: As stated in the annuity contract (or similar document) set fo as Exhibit B to this Agreement 4. PERIODIC PAYMENTS: A payment of $20,000.00 due 06/04/2008. 5. PURCHASE PRICE: $10,981.49 6. ALLOCATION OF PURCHASE PRICE: set orth amount of urchas 'ce ch a t 6/4/08 20,000.00 10,981.49 This Exlnbit A is incorporated into and made a part of the Purchase Agreement to which this E and the other Transaction Documents as if fully set forth and incorporated into said agreements, contracts, at length. Seller acknowledges that it is hislher intent to assign, sell, transfer, and convey to Purchaser the Payments descnbed above. Seller acknowledges that the closing and funding of the Transaction describe the Transaction Documents is expressly contingent upon entry of a Court Order, as descnbed in section 5. Agreement. it A is attached, documents, eriodic herein and in of the Purchase PURCHASE AGREEMENT Page 18 of 18 ~ 032449.0001 NEW YORK 376215 vi E)( J-/ J8rr ''1/ 'I l ) ! PURCHASE AGREEMENT This Purchase Agreement (the "Agreement"), dated and effective as of 1213012004, is eing entered into by and between Structured Settlement Investmente, Ltd. ("Purchaser"), located at 666 h Avenue, #349, New York City, NY, 10103, and Richard L. McGuire ("Seller") who currently resides at 412 Carlisle Pike Lot#I1O, Mechanicsburg P A, 17050. RECITALS A. Seller, or Seller's predecessor in interest, has previously entered into a settlement release, indemnity, compromise, and/or other agreement or document, and/or was subject to a court 0 der, judgment, or decree, in connection with the settlement of a lawsuit and/or personal injury or rongful death claim. The decree, order, judgment, release, settlement, indemnity, compromise and/o other agreement is set forth and described in more detail in Exhibit "A" attached hereto and, toget er with any amendments, modifications, and revisions to same, shall hereafter be referred to in this Agre ment as the "Settlement Agreement." Pursuant to the Settlement Agreement, Seller is entitled to receive certain periodic settlement payments in the dollar amounts and on the dates set forth and described the Settlement Agreement. (The payments which are due and payable to Seller pursuant to the ettlement Agreement shall hereafter be referred to as the "Settlement Payments"). B. Nationwide Mutual Insurance Company ("Settlement Obligor") agreed to make th Payments to Seller under the terms of the Settlement Agreement and/or assumed the obliga the Settlement Payments due Seller pursuant to a qualified assignment and/or other assi assumption or ,similar agreement (the qualified assignment, assumption agreement, or simil agreement or document is set forth and described in Exhibit "An and shall hereafter be referred to as the "Qualified Assignment"). In order to fund its obligation to make the Settlement Payments, the Settleme t Obligor purchased and/or caused to be issued an annuity (the "Annuity") by Employers Life Insuran Company of Wausau (the "Annuity Issuer"). Nationwide Mutual Insurance Company (sometimes, referre to as the "Annuity Owner") is the owner of the Annuity. (The Annuity is set forth and described in E 'bit B.) The Annuity Issuer is obligated to make certain payments under the terms of the Annuity (the" uity Payments"), in the amounts and on dates which correspond to the Settlement Payments. Sel r is the "Annuitant" or "Payee" named in the Annuity and/or is the beneficiary of the original named AnnuitantJPayee named in the Annuity or is otherwise entitled to receive the paymentS to be ade'under the terms of the Settlement Agreement, Qualified Assignment, and/or Annuity. Copies of the Settlement Agreement, Qualified Assignment, and the Annuity (if available) and/or a payment letter or 0 her documents which adequately and sufficiently describe and confirm, in the sole discretion of t Purchaser, the payment obligations of the Settlement Obligor, Annuity Owner and/or Annuity Issuer, h e been provided to the Purchaser. The Settlement Agreement, the Qualified Assignment, the Ann ty, and any agreements, releases, letters, assignments, judgments, orders, decrees and other documents hich reflect or evidence the Settlement Payments and the payment obligations of the Settlement Obligor, uity Owner, and Annuity Issuer shall hereafter be collectively referred to as the "Settlement Doc ents." C. Purchaser desires to purchase and acquire from the Seller, and the Seller desires transfer, and convey to Purchaser, all of Purchaser's right, title, and interest in and to, inclu to receive, certain of the Settlement Payments and Annuity Payments, in the amounts and 0 the dates due and payable to Seller, as set forth and described in Exhibit A. (The payments which are t this Agreement and which are to be sold, assigned, and transferred to Purchaser by Seller sh PURCHASE AGREEMENT - Page 1 of 18 Initials 032449.0001 NEW YORK. 376215 vI Ex;-/ /1.311' 1'8 'I \ ,_\.- , ) .v be referred to as the ''Periodic Payments".) Purchaser and seller acknowledge that each Pe represents a separate debt instrument and that the Purchase Price (as defined herem) repr of all the purchase prices for all of the Periodic Payments transferred in the Transaction. D. As used herein, "Term" means the period beginning with the earlier of the Clos' Date (as hereinafter defined) or the date of the first Periodic Payment and ending with the last Perio . c Payment which is the subject of this Agreement. The "Transaction" shall refer to the assignment of t e Periodic Payments by Seller to Purchaser, as set forth and described in this Agreement. The "Trans ction Documents" shall refer to this Agreement and any and all other agreements, applications, Ie ters, contracts, pleadings, affidavits, and other documents executed, signed, and/or submitted by he Seller in connection with the Transaction. "Court Order" shall refer to the order or judgment render d or to be .rendered in connection with the court approval of the Transaction in accordance with an ap licable state statute as provided in Section 5.5. NOW, THEREFORE, in consideration of the mutual covenants, representations, w anties and agreements contained in this Agreement and the other Transaction Documents, the receipt d sufficiency ,of which is acknowledged, and subject to the terms, conditions, provisions, and contingencie set forth in this Agreement and in the other Transaction Doc\1Dlents, the parties agree, covenant, and p omise as follows: AGREEMENT ARTICLE 1 PURCHASE AND SALE OF PERIODIC PAYMENTS 1.1 Purchase and Sale. Seller hereby sells, assigns, transfers, and conveys to the P chaser, and Purchaser purchases and acquires from Seller, the Periodic Payments. Seller makes such s Ie and assignment of the Periodic Payments to Purchaser free and clear of any and all right, title, . terest or claim in or to the Periodic Payments or any lien, pledge, mortgage, security interest, or othe encumbrance of or in the Periodic Payments of any nature whatsoever (collectively the "Encumbrances"). 1.2 Purchase Price. In return for the sale and assignment to Purchaser of Seller's . ght, title, and interest in the Periodic Payments, and the other promises, covenants, and agreementa of Se er set forth in this Agreement, including the right of first refusal granted to Purchaser in Section 8.18 bel w, Purchaser agrees to pay to Seller the amount set forth and described in Exhibit A as the "Purchase Pri .n Purchaser and Seller agree that the Purchase Price will be allocated among the several Periodic Paym nts as set forth .in Exhibit A under the heading "Allocation of Purchase Price." Purchaser will pay the Pure ase Price to Seller on the Closing Date (as defined in Section 2.3 hereof'). 1.3 Adiustment of Purchase Price; Advances. The Seller acknowledges and agrees t at the Purchase Price may be adjusted, if necessary, by subtracting an amount equal to the sum of ;) all Periodic Payments received by Seller after the date of this Agreement until Closing; plus (ti) any pa ents and advances made to Seller or made on behalf of Seller to a third party a or prior to Closing. P chaser shall not be obligated to make any advances to Seller or any payments to third parties on Seller's ehalfprior to PURCHASE AGREEMENT - Page 2 of 18 ~ 032449.0001 NEW YORK 376215 vi ) J Closing. Any advances and payments to third parties by Purchaser shall be made, if at all, . sole and absolute discretion. 1.4 Manner of Pavment. The Seller may elect to have the Purchase Price paid by w' e transfer to such account or accounts of the Seller (maintained in Seller's name) that has been designate by Seller in writing prior to the Closing, or by a check drawn on any deposit account maintained by the P chaser. ARTICLE 2 CLOSING 2.1 Closin\! Defined. The closing of the Transaction described in this Agreement (th "Closing") shall occur on a date designated by the Purchaser, which date shall be as soon as reasonably racticable after entry of the Court Order and after the Purchaser, in its sole and absolute discretion, ha determined that all of the conditions and contingencies required by this Agreement and the other Transa Documents have been satisfied, have occurred, and/or have been performed and complied wi ,as the case may be, and that no event or condition has occurred or exists that would require this Agreem nt to be terminated. Seller agrees to cooperate with Purchaser and use Seller's best efforts to secure e Court Order and close the Transaction in accordance with this Agreement. 2.2 Timin\! of Closin\!. The Seller and the Purchaser understand and agree that ach of them will be taking various actions necessary to satisfy, perform, and fulfill the conditions and con . gencies required to close this Transaction and that some conditions and contingencies are subject to arious actions that must be completed by persons or entities that are not parties to this Agreement G..e. en ofthe Court Order). It is not possible to predict the precise date on which Closing will occur and Purchas r makes no representations regarding the specific date of Closing. 2.3 Closin\! Date. The day on which funds representing the Purchase Price (adjuste as provided in Section 1.2) are paid and delivered to the Seller shall be the "Closing Date." are to occur on the Closing Date shall, for all purposes, be deemed to occur simultaneously, e extent that a specific order of occurrence is otherwise prescribed herein. , if necessary, events that cept to the ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER In order to induce Purchaser to enter into this Agreement, pay the Purchase Price the Periodic Payments, the Seller represents and warrants to the Purchaser as follows: 3.1 Authority and Enforceabilitv. The Seller has all requisite power and authority d has taken all action necessary to execute and enter into this Agreement and each of the Transaction Do ents, to conclude the Transaction contemplated in this Agreement, and to perform the Seller's obliga . ons under this Agreement. This Agreement has been, and each of the Transaction Documents has been r will be by Closing, duly executed and delivered by the Seller. This Agreement and each ofthe Transa . on Documents are legal, valid and binding obligations of the Seller enforceable against the Sell r in accordance with their terms. 3.2 No Breach or Default; No Violation of Law; No Consents. The execution and de Seller of this Agreement and the Transaction Documents and the closing of the Transaction PURCHASE AGREEMENT - Page 3 of 18 0r? 032449.0001 NEW YORK 376215 vi J ) "\ ,) I will not: (j) constitute a breach of, or result in a default under, the Settlement Documents; . give rise to a right of termination or cancellation under the Settlement Documents; or (j;) breach or violat any existing contract or agreement of the Seller or any obligation of the Seller under any court or admini trative orders, writs, judgments or decrees; (ill) violate any statute or regulation; or uv) except for the court approval referenced in Section 5.5, require the consent, authorization, or approval of any other perso ,entity, court, regulatory agency, administrative body, or any federal, state, local or other governmental ag ncy or authority . 3.3 The Settlement Documents. True and correct copies ofthe Settlement Docume ts have been, or will be prior to Closing, provided and delivered to Purchaser. These copies of the Settlem nt Documents are true and correct and include all amendments, supplements, addendums, or modification to same and have not been changed or altered in any way. None of the Settlement Documents are in de! t nor have any ofthem been breached or violated by the parties to same. 3.4 Title to the Periodic Pavments. The Seller owns the Periodic Payments free an clear of any Encumbrances. Except as specifically and expressly disclosed to Purchaser in writing prior entering into this Agreement, Seller has not previously sold, transferred, assigned, pledged, encumbered, ortgaged, or granted a security interest in any of the Periodic Paym!3nts or any of the Settlement Payme . Except as specifically and expressly disclosed to Purchaser in writing, none of the Periodic Payments 0 Settlement Payments have ever been attached, levied, foreclosed upon, seized, restricted, or subjected to garnishment or any other legal process or proceeding. Closing of the Transaction will vest in Purchaser d, marketable and defensible title to the Periodic Payments, free and clear of any and all Ene brances and shall divest Seller of all right, title, interest, claim, arid demand, either at law or in equity,' and to the Periodic Payments. 3.5 CaDacitv; Marital Status; Proof of Identification. Seller has furnished to Purch er true, correct and complete documents concerning any prior divorce, annulment, marital separatio ,marriage, premarital agreement, custody, guardianship, trusteeship, bankruptcy, assignment for bene t of creditors, or other legal proceeding affecting Seller's capacity or ability to enter into or close this Trans ction or to transfer or convey title to the Periodic Payments. The true, current marital status of the Sell r is setJorth in the Due Diligence Disclosure Form executed in connection with this Transaction and the , true, and correct name and mailing address of Seller's spouse, if any, is also set forth in the Due Dilige ce Disclosure Form. If Seller has been divorced or if any of Seller's marriages have been annulled prior to e date of this Agreement, Seller has provided to the Purchaser a true, correct, complete and legible co y of the Seller's prior divorce or annulment decree(s) and related property settlement/division docum nts and agreements. Seller shall provide true and accurate copies of Seller's driver's license and/or overnment issued ID card and Seller's social security identification card or other evidence of Seller's s . security number acceptable to Purchaser in its sole and absolute discretion. Seller shall also provide Purchaser, if requested by Purchaser, a copy of a check stub or bank record evidencing Seller's receipt 0 or a direct deposit of a recent Periodic Payment or Settlement Payment, which shall match and/or corre pond to the 'Settlement Documents. 3.6 No Judlnllents or Actions. Other than those specifically and expressly disclosed Purchaser by Seller in writing, there are no unsatisfied, outstanding judgments or liens against Seller nd there is no action, suit, or proceeding pending or threatened against or affecting the Seller or the Seller' assets, including, without limitation, the Periodic Payments or the Settlement Payments. The Selle has received no notice (whether oral or written) that any such proceeding is pending or contemplated. PURCHASE AGREEMENT - Page 4 of 18 032449.0001 NEW YORK 376215 vi ~ ~ " ) j 3.7 No Brokers. Except as specifically disclosed by the Seller in writing, no broker, has acted in connection with this Agreement or the transactions contemplated by this Agree brokerage, sales, or other commission or finder's fee shall be earned, due or payable to any p Purchaser in connection with the Transaction. 3.8 Consultation with Advisors; Seller's Creditors. Seller has been advised by the P consult with the Seller's financial, accounting, tax and legal advisors in connection with the and has either (i) consulted with such advisors or Ui) has had the opportunity to do so and ha and voluntarily chosen not to seek such advice. The execution and delivery of this Agreemen and the other Transaction pocuments by the Seller and the consummation ofthe Transaction have n t been concealed from, and will not hinder, delay, or defraud any creditor of the Seller. To the exte that Seller was required by applicable law to receive, or to the extsnt that Seller has received, independ t professional advice regarding this Transaction, the person or person with whom Seller cons ed has been identified by Seller to Purchaser in writing. ent or finder ent and no son by the 3.9 Full Pisclosure; No Adverse Facts. The representations and warranties of the Se er in this Agreement and in the other Transaction Pocuments and the information furnished to the P chaser and its representatives in connection with the Transaction do not, and will not at Closing, includ any untrue or misleading statement of fact. Seller is not aware of any fact or matter which might (i)' . sh the value of the Periodic Payments or the rights and benefits of the Purchaser to be acquired un r this Agreement; or Ui) impair or delay the Purchaser's ability to receive and collect the Periodic P yments. 3.10 Pue Pilieence Pisclosure Form. Beneficiaries. and PelJendents. Seller has comp etsd, signed, and delivered to Purchaser a Pue Piligence Pisclosure Form in connection with the Transac on. All of the information stated in the Pue Piligence Pisclosure Form is true and correct as of the date of s Agreement and shall be true and correct at Closing. Seller has disclosed to Purchaser the tr and correct identity and age of Seller's spouse and all of hislher minor children and other dependents. er has disclosed to Purchaser the true and correct identity of any beneficiary or other person design ted by Seller to receive the Settlement Payments and/or Annuity Payments following the death of Seller. 3.11 r or din In80lven r ankru Pr eedin s or t al ro as set forth in the Due Diligence Disclosure Form, Seller has not been a party to any bankru reorganization, receivership, insolvency, or Aimil~T proceeding. If Seller has been a party to proceeding, Seller has provided to Purchaser a true and correct copy ofthe Seller's discharge proceedings and/or an appropriate court order approving the Transaction contsmplatsd by ny such om such s Agreement. 3.12 Other Oblieations. Other than those obligations specifically and expressly discl Purchaser by Seller in writing, Seller is not in default on any obligation for child support or the payment of state, federal, or local taxes, including federal income taxes. 3.13 her A m A si of Other 'ati ns' Ex SIVl, . d (a) Except as specifically and expressly disclosed to Purchaser in writing in connectio Transaction, Seller has not, and has not attempted to, sell, assign, transfer, or convey any of Settlement Payments to any other person or entity, nor has Seller attempted to pledge, encu mortgage the Settlement Payments with or to any other person or entity. To the extent that ller has previously had discussions or negotiations with other persons or entities regarding the possib e sale, 'assignment, transfer, mortgage, encumbrance, pledge or other conveyance ofthe Settlement ayments, Seller hereby represents and warrants that all such discussions or negotiations have ceased d any and all contracts, agreements, letters of intent and other documents relative to said discussions d/or PURCHASE AGREEMENT - Page 5 of 18 ~ ~ 032449.0001 NEW YORK 376215 vI . ) ( ) , j negotiations have been cancelled, terminated, and rescinded. Upon signing this Agreement, Seller shall deal exclusively with Purchaser regarding the Settlement Payments. (b) Seller understands, acknowledges, and stipulates that in entering into this Agre ment, Purchaser is relying upon Seller's representation and covenant that Seller shall deal exclusi ely with Purchaser regarding the Settlement Payments and the transaction described in this Agree ent. Seller also understands and acknowledges that Purchaser, upon execution of this agreement, will' cur substantial costs in time and expenses, in an attempt to continue and finalize its due dilige requirements, and to secure Court Approval of the agreed upon transaction. Amongst other hings, upon execution of this agreement, Purchaser shall immediately initiate proceedings in Court to se ure Court approval of the transaction as contemplated in paragraph 5.5. Purchaser may make advanc s to Seller of a portion of the Purchase Price (but shall have no obligation to do so under this Agreement) p nding approval ofthe transaction by way of the Court Order and closing of the transaction as con mplated herein and shall incur costs and fees in connection with seeking the Court Order. Purchase and Seller shall use their best efforts to secure the Court Order and close the transaction. In considera . on for Purchaser's promises and covenants in this Agreement and in return for Purchaser's promi to promptly initiate proceedings to secure the Court Order, Seller agrees and promises to pay Purchaser third party transaction fee of $2,625.00 (the "Third Party Fee"), on or before the day that Seller receives proceeds from Third Party, should Seller desire to pursue an agreement or contract with such a third p relative to a sale, assignment, transfer, conveyance, or encumbrance of all or a portion of the Settlement ayments (a "Third Party Transaction") after Seller signs this Agreement. Seller agrees and acknowledg s that any Third Party Fee is reasonable and proper in order to compensate Purchaser for its costs and xpenses and is not in the nature of a Penalty. To the extent that any of the Third Party Fee is deemed to e a penalty, Seller expressly agrees that those charges not so deemed a penalty are enforceable. Pursua t to section 7.2 of this agreement, Seller may cancel this Agreement, with no fee. Notwithstanding section .2 however, Seller agrees to pay Purchaser said Third Party Fee in the event that Seller enters into an a eement or contract with a Third Party relative to the Settlement Payments. The parties hereby agree t within eighteen (18) months from the date this Agreement becomes effective, for purposes of enfor . g this paragraph 3.13 regarding exclusivity and the Third Party Fee, that it shall be presumed tha Seller has entered into a Third Party Transaction should Seller enter into a contract with a third party within eighteen (18) months after Seller cancels this Agreement. (c) Seller agrees that in the event that a Third Party Fee becomes due and owing to urchaser under this section 3.13, that Purchaser may receive and collect a portion of the proceeda of y Third Party Transaction to which Seller is a party. Seller hereby agrees that Purchaser may contact an third party purchaser involved in a Third Party Transaction and collect the Third Party Fee directly fro said third party purchaser. Additionally, Seller grants to Purchaser a security interest in any ofthe p ceeds or expected proceeds of said Third Party Transaction as collateral security for Seller's promises and agreements under this section 3.13 and agrees that Purchaser may intervene in any court p eding relative to said Third Party Transaction as an interested party and may assert and pursue a claim for the Third Party Fee in said proceeding and may seek to have the Court direct thst a portion of e proceeda of said Third Party Transaction be paid to Purchaser in payment of the Third Party Fee. Selle further agrees that any Third Party Fee may be collected by Purchaser pursuant to the terms of the pecial Irrevocable Power of Attorney pursuant to which Purchaser may authorize any financial ins . tution in which Seller maintains any funds (a "Bank Account") to remit to Purchaser monies equal in mount to any Third Party Fee, Additionally, Seller hereby grants to Purchaser a security interest in any ank Account as security for Seller's obligations with respect to any Third Party Fee (including any and all dvances) and authorizes Purchaser to record all appropriate UCC financing statements or other lien d cument on Seller's behalf against any such Bank Account and to further contact any such financial inst' ution directly in order to enforce the promises and obligations of Seller hereunder. PURCHASE AGREEMENT - Page 6 of 18 ~ 032449.0001 NEW YORK 376215 vI , J , ) j I {d) Notwithstanding section 7.2, in the event Seller fails to honor its promise to sell the Purchaser the Settlement Payments hereunder for any reason (other than should Seller ente into a Third Party Transaction) and in consideration for Purchaser's promises and covenants in this Agre ment and in return for Purchaser's promise to promptly initiate proceedings to secure the Court order, Se er agrees and promises to pay Purchaser a fee in the amount of $3,000.00 (the "Fee") upon demand ma e by Purchaser on Seller. Seller agrees and acknowledges that any Fee is reasonable and proper order to compensate Purchaser for its costs and expenses and is not in the nature of a Penalty. To th extent that any of the Fee is deemed to be a penalty, Seller expressly agrees that those charges not so de meda penalty are enforceable. Seller further agrees that any Fee may be collected by Purchaser p SUllnt to the terms of the Special Irrevocable Power of Attorney pursuant to which Purchaser may autho any financial institution to remit to Purchaser from any Bank Account monies equal to any Fee . cluding all Advances) and authorizes Purchaser to record all appropriate UCC financing statements or er lien document on Seller's behalf against any such Bank Account and to further contact any such ancial institution directly in order to enforce the promises and obligations of Seller hereunder. (e) Seller agrees and acknowledges that any other amounts received by Seller from transaction (i) that were paid by Purchaser to Seller in error for any reason, (n) where subse receipt of funds by Seller a Court Order is vacated or otherwise overturned or rendered void r any reason and/or (ii) that were received by Seller directly from the annuity iS,suer and which should ha e been paid directly to Purchaser under any Court Order (collectively, the "Other Amounts, may be colle d by Purchaser pursuant to the terms of the Special Irrevocable Power of Attorney pursuant to w . ch Purchaser may authorize any financial institution to remit to Purchaser from any Bank Account monie equal to any other amounts and authorizes Purchaser to record all appropriate UCC financing statemen or other lien document on Seller's behalf against any such Bank Account and to further contact any such cial 'institution directly in order to enforce the promises and obligations of Seller hereunder. Sell r agrees and acknowledges that it is reasonable and proper to compensate Purchaser for the costa related any other amounts, and such compensation is not in the nature of a Penalty. To the extent that any ot er amounts are deemed to be a penalty, Seller expressly agrees that those charges not so deemed a penal are enforceable. 3.14 Disclosure Statement. Seller acknowledges that Purchaser has previously provi ed to Seller a disclosure statement prepared and delivered in accordance with applicable law which sets fo certain of the main terms of the Transaction. Seller has read and understands said disclosure stateme t and has had the opportunity to review and discuss the disclosure statement and this Transaction wit an attorney, CPA, accountant, or other professional advisor of Seller's choice. To the extent that applicab law requires Seller to consult with an attorney, CPA or other licensed professional advisor regarding the ansaction, Seller has done so and has disclosed to Purchaser, in writing, the name and address of such dvisor. 3.15 Place of Residence. Seller represents and warrants that Seller resides in the St te designated on page 1 of this Agreement. ARTICLE 4 ADDITIONAL AGREEMENTS OF THE SELLER PURCHASE AGREEMENT - Page 7 of 18 ~ 032449.0001 NEW YORK 376215 vI I j j I 4.1 Dutv to CooDerate; Periodic Pavmente Held in Trust; Guarantv. Upon Closin of the Transaction, the Seller shall cooperate with and shall take all reasonable action necessary to rovide the Purchaser the practical benefits of the bargain under this Agreement, specifically including, ithout limitation, the duty to deliver immediately to the Purchaser any checks, funds or other form f payment made under the Settlement Documents which may be hereafter received by the Seller or any ne (other than the Purchaser) claiming by or through the Seller, to the extent that such payment cons utes a Periodic Payment. Any such Periodic Payment that is at any time received by the Seller or y person claiming by, through, or under the Seller (directly or indirectly) shall be received and held by e Seller (or such other person) in trust for the benefit of the Purchaser. The Seller shall immediately de . er and pay such Periodic Payments to the Purchaser. After Closing, the Seller shall have no interest in ny Periodic Payment other than that of a trustee for the benefit of the Purchaser, Seller hereby guaran s the prompt performance of all of the duties and obligations set forth herein and in all of the Transaction ocuments. 4.2 Seller's Protection of Third Parties. The Seller releases and waives all claims an objections against each of the Annuity Issuer, the Annuity Owner, the Settlement Obligor and any othe person, entity, or party obligated under the Settlement Documents to make the Settlement Paymen the Annuity Payments, and the Periodic Payments (collectively the "Obligors") for (j) making the Periodic Payments to the Purchaser following entry of the Court Order contemplated in Section 5.5 and Closing of e Transaction; (jj) for allowing, permitting, facilitating, not opposing, and/or cooperating with e Purchaser and Seller in connection with the Transaction and this Agreement and entry of the Court Or r; (ill) for not appearing or objecting in the proceeding in which the Court Order was entered; uv) for f .. g or refusing to assert any claim that the Periodic Payments were not transferable or assignable; d (v) for honoring the Court Order. Seller agrees to indemnify, hold harmless and defend the Obligo in connection with the releases and waivers set forth in this section 4.2 and from and against any future s to or againstlthe Periodic Payments by any person other than the Purchaser or the Purchaser's la assigns. 4.3 Access to Information. The Seller agrees and hereby authorizes the Pur-chaser perform credit checks and obtain credit reports on the Seller and secure and perform other' ormation and investigations including, without limitation, lien searches, searches for abstracts of judgment or other claims against the Seller, criminal background checks, checks of court records, and contactin Seller's present and previous employers, landlords, creditors, and references. Seller hereby authorize Purchaser to contact the Settlement Obligor, the Annuity Issuer, and/or the Annuity Owner and any oth r person or entity obligated to make the Settlement Payments and/or Annuity Payments to verify any an all information relative to the Settlement Payments and/or the Annuity Payments. Seller hereb authorizes, directs, instructe, and consents to the release by the Settlement Obligor, the Annuity Issuer, nd/or the Annuity Owner and any other person or entity obligated to make the Settlement Payments d/or Annuity Payments of any and all information to Pm:chaser relative to the Settlement Documents, the ettlement Payments, and/or the Annuity Payments. The Purchaser shall be under no duty or obligatio to perform any such check or investigation and the Seller shall place no reliance on the Purchaser's actio in doing so. Seller further authorizes and consents to Purchaser recording and/or registering informa 'on regarding this transaction in the National Association of Settlement Purchasers Anti-Fraud tabase. 4.4 Disclosure of MisreDresentations and Breaches. The Seller shall immediately no' the Purchaser if any of the representations or warranties of the Seller in this Agreement or any 0 the Transaction Documents are determined by the Seller to have been incorrect, inaccurate, or . leading when they were made, or which are later determined by the Seller to be incorrect, inaccurate r misleading. PURCHASE AGREEMENT - Page 8 of 18 032449.0001 NEW YORK 376215 vi tii? !) ! 4.5 Further Assurances. Seller shall promptly execute all other documents, and pe orm or refrain from performing such additional acts, as may be necessary or reasonably requested by the P chaser to conclude the Transaction and to assure the Purchaser's receipt of all of the benefits ofthe Tr nsaction, including the Periodic Payments. 4.6 This is Not a Loan. THE SALE OF THE PERIODIC PAYMENTS BY THE SE R TO THE PURCHASER IS AND SHALL CONSTITUTE AN ABSOLUTE AND IRREVOCABLE ASSI NMENT AND CONVEYANCE BY THE SELLER TO THE PURCHASER OF THE PERIODIC PA NTS, AND THE SELLER ACKNOWLEDGES AND AGREES THAT THIS TRANSACTION IS NOT I ENDED IN ,ANY RESPECT TO BE A LOAN FROM THE PURCHASER TO THE SELLER OR TO CRE TE ANY TYPE OF LENDER/BORROWER RELATIONSHIP, PARTNERSHIP OR OTHER JOINT 0 RSHIP ARRANGEMENT BETWEEN THE SELLER AND THE PURCHASER. UPON THE CLOSI G OF THIS TRANSACTION THE SELLER SHALL HAVE NO RIGHT OR ABILITY TO FINANCE OR EFINANCE THE PERIODIC PAYMENTS WITH PURCHASER OR ANY OTHER PERSON OR ENTITY 4.7 Prior or Other Nee:otiations To the extent that Seller has previously engaged in egotiations or discussions or has signed or executed a contract with other parties or entities regarding the ale, assignment, transfer, conveyance, mortgage, encumbrance, or pledge of the Periodic Paymen ,Seller has terminated all such negotiations or discussions and/or has canceled and rescinds all contra , or agreements with such parties or entities. By signing this Agreement, Seller hereby autho' s Purchaser to rescind, terminate and cancel, on Seller's behalf, all discussions, negotiations, contracts, a d agreements with such persons or entities. Seller agrees to work and deal exclusively with Purchaser reg ding a sale of the Periodic Payments and secure the Court Order. 4.8 Beneficiaries. Seller acknowledges and agrees that Purchaser shall be entitled receive the Periodic Payments to the exclusions of any beneficiary, heir, executor, representative, or dep ndent of Seller. To the extent deemed necessary by Purchaser and/or if requested by Purchaser, Selle shall execute and sign any document, agreement, wsiver, beneficiary change, or other document to reflect, evidence, and confirm that Purchaser shall be entitled to receive the Periodic Payments to the exclusion of eller and/or Seller's heirs, beneficiaries, representatives, dependents, and executors. Upon consummati n of this Transaction, entry of the Court Order, and Closing, Seller and Purchaser agree, acknowledg and confirm that Seller and any beneficiary, heir, executor, representative and/or dependent of Seller sha be absolutely and forever divested of any right, title, claim or interest in the Periodic Payments 4.9 No Snecial Relationshin with Purchaser. Seller acknowledges that Purchaser is ot Seller's agent, representative, or fiduciary and Seller is not Purchaser's customer or client and the 0 y relationship by and between Seller and Purchaser is an arms length relationship of seller an purchaser under this Agreement. ARTICLE 5 CONDITIONS TO CLOSING The obligations of the Purchaser to effect the Transaction contemplated in this Agre subject to the performance and satisfaction, prior to the Closing Date, of each of the followin unless waived in writing by the Purchaser: PURCHASE AGREEMENT - Page 9 of 18 032449.0001 NEW YORK 376215 vI ent shall be conditions, ({i? 1, J " , , ( ) I 5.1 Deliverv of Documents. The Seller shall have delivered to the Purchaser dul executed originals (including all attachments and exhibits) of the following documents, each of which hall be in form, scope and substance satisfactory to the Purchaser in its sole and absolute discretion: (j) This Agreement, along with all required schedules, exhibits and addendums here (;j) The Seller's Affidavit certifying certain information about the Seller, in form and ubstance acceptable to Purchaser, in its sole and absolute discretion; (fu) The original or true and accurate copies of the Settlement Documents; (iv) A signed Spousal Consent form; copies of prior divorce and/or annulment decree, including property divisions and settlements; a current driver's license or government issued I card; a social security card or other evidence or Seller's social security number, acceptable to Purc aser, in its sole and absolute discretion; if requested by Purchaser; copies of a recent check, pay ent stub or bank account records and statements showing a deposit to Seller's account a recent ettlement Payment (v) A completed and signed Due Diligence Disclosure Form; (vi) Executed Irrevocable Special Power of Attorney in favor of the Purchaser, its su cessors, assignB or designees, and granting, among other powers, the power to endorse and egotiste all checks and other instruments distributed by the Annuity Issuer, or other person, in ayment of the Periodic Payments, as provided herein; remain (vii) Executed copies of all other agreements, documents, instruments, certificates, inions of counsel, reports or other writings of any nature whatsoever required by this Agreem nt or deemed necessary, advisable or desirable by Purchaser to consummate the Transaction. 5.2 Reoresentations And Warranties. All of the Seller's representations and warra Agreement shall be true and correct on and as of the Closing Date with the same effect as representations and warranties were made on and as of the Closing Date. All of the Seller's representations and warranties set forth in this Agreement shall survive the Closing and sh effective during the Term of this Agreement. 5.3 Performance Of Oblil'(ations. The Seller shall have performed, observed, satisfie complied with all covenants under this Agreement and the Transaction Documents on or be Date. ,and re the Closing 5.4 Absence of Liens. The Purchaser shall perform, at its own expense, such credit hecks and lien searches on the Seller as the Purchaser deems necessary. Seller grants to, Purchaser e right to offset from any sums due to the Seller the amount of any lien, or other obligation of Seller t t Purchaser determines may affect Purchaser's title to and/or her rights to receive the Periodic Payment. If requested by Purchaser, Seller agrees to obtsin confirmation from the IRS or other taxing authorities t there are no outstanding federal, state or local tax liabilities, (whether income tax or otherwise) beyon the current tax year in which this Agreement shall be executed. 5.5 Court Aooroval ofthe Transaction. Seller understands and acknowledges that t contemplated by this Agreement must be approved by a court of competent jurisdiction in a e Transaction ordance with ~ PURCHASE AGREEMENT Page 10 of 18 032449.0001 NEW YORK 376215 vI J I an applicable state transfer statute of a state of the United States of America and must be s ctured, consummated, closed and approved in accordance with certain applicable laws of the Unite States of America. A further condition and contingency to the Closing of the Transaction is that the urchaser and/or the Seller shall have procured and/or received a court order, judgment, or decree (th Court Order, as previously defined) approving the sale, assignment, and transfer of the Periodic Paymen to Purchaser. Seller shall cooperate with and assist Purchaser, in all respects, to secure said Court Order. If the Court Order is denied, Purchaser may, but shall have,no obligation to, appeal such denial. If, how ver, Purchaser does pursue an appeal of such denial, Seller shall fully cooperate and assist Pure aser in connection with said appeal. 5.6 Other Reauirements. Such other requirements as Purchaser may in writing w rm Seller, in Purchaser's sole discretion, are required to be satisfied. ARTICLE 6 WAIVER OF RESTRICTIONS; INDEPENDENT ADVICE; EXEMPTIONS; INDE TIES 6.1 Restrictions on Assilffiabilitv. Seller acknowledges that, to the extent that the S ttlement Documents purport to contain any restriction on the ability, right, or power of the Seller to ssign, sell, transfer, mortgage, encumber, alienate, or convey the Periodic Payments, that such restri . ns were included in the Settlement Documents for Seller's benefit and not for the benefit or protecti of any other person. Seller, on behalf of himself and his heirs, beneficiaries, executors, sdminiAtrators, s ccessors, and legal representatives, hereby WAIVES AND RELEASES all rights and benefits of the Selle in, to, or under, any and all restrictions on assignability contained in the Settlement Documents. To e extent that any such restrictions were included to insure favorable tax treatment or benefits for th Seller or for any other purpose, Seller acknowledges that Seller is not relying upon any representation 0 warranty of the Purchaser with respect to the tax consequences of the Transaction or the waiver contain d herein. 6.2 IndeDendent Advice. Seller acknowledges and agrees that (j) Seller has had th opportunity to receive legal, tax, financial, accounting and/or business or personal advice regarding the Tr s8ction from Seller's own legal, tax, financial, accounting and/or other advisors and has either received s ch advice or has knowingly and voluntarily waived and declined the opportunity to seek such advice; (ill eller has not received any financial, accounting, tax,legal, business, or other advice from the Purchaser; d (iv) Seller has relied solely upon the advice of Seller's own financial, accounting, tax, legal, business ~ther advisors in entering into this Agreement and consummating the Transactions. SELLER F THER ACKNOWLEDGES THAT SELLER IS FULLY AWARE OF THE ECONOMIC CONSEQUE CES OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT. THIS IS AN IMPORT FINANCIAL TRANSACTION AND SELLER SHODID CONSULT WITH HISIHER OWN REGARDING SAID TRANSACTION. 6.3 Waiver of ExemDtions. Seller has signed this Agreement and is entering into t of his own free will and volition and hereby expressly and voluntarily WAIVES imd RELE ES all rights and benefits of Seller in, to, or under all applicable laws and statutes and all provisions and rinciples of the common law, regulations, and any constitution which purport to exempt the Periodic Pa ments and/or any payments due or payable under the Settlement Documents from any claims or damages y, through or on behalf of Purchaser or its successors or assigns or which exempt the Periodic Payments m execution, attachment, garnishment, seizure or other process by Purchaser, which may be necessary to enforce this Agreement or allow Purchaser to receive the practical benefits of the Transaction. PURCHASE AGREEMENT - Page II of 18 W Initials 032449.0001 NEW YORK. 376215 vi ) ( ) 6.4 Indemnities. The Seller further agrees and covenants (both for Seller and on b half of Seller's heirs, executors, administrators, representatives, successors, and assigns): (;) to release, ind mnify and hold the Purchaser harmless from any claim that the Periodic Payment Rights were not assi able; (i;) to never claim, either in a suit or in the defense of an action by the Purchaser or any other per on, that the Periodic Payment Rights were not assignable. 6.5 Seller's Protection of Third Parties. Seller acknowledges that the Settleme t Agreement, Annuity and/or other Settlement Documents may contain provisions that restrict or purpo to restrict the assignment of the Periodic Payments. Seller hereby (;) releases the Annuity Owner, the uity Issuer, the Settlement Obligor and all other persons or entities obligated to make the Periodic Pa ents pursuant to the terms of the Settlement Agreement and/or Annuity from any claims, causes of action, r liability, for complying with Seller's instructions regarding the Periodic Payments; (i;) releases and w . es all claims, causes of action, or liability against the Annuity Owner, the Annuity Issuer, and Settleme t Obligor and all other persons or entities obligated to make the Periodic Payments for failing and refusin to oppose the Transaction based on the presence of anti'assignment or anti-encumbrance language in e underlying Settlement Documents or for any other reason; (j;j) for making and sending the Periodi Payments to Purchaser in accordance with the terms of this Agreement and the Court Order; uv) for allowing, permitting, facilitating, cooperating with, and/or not opposing the Transaction and en of the Court Order; (v) for not appearing or objecting in the proceeding in which the Court Order was e tered; (vi) for failing or refusing to assert that any claim, defense, or position that the Periodic Pa nts were not transferable or assignable; and (vii) for honoring and complying with the Court Orde. Seller and Purchaser acknowledge and agree that the Annuity Owner, Annuity Issuer, and/or Settleme t Obligor will discharge their obligation to make the Periodic Payments due under the Settlement Agr ement and/or Annuity by delivering said Periodic Payments to Purchaser in accordance with this Agre ment and the Court Order. Seller agrees to indemnify, hold harmless, and defend the Obligors in conn tion with the releases and waivers set forth in this section 6.5. Seller and Purchaser agree to indemnify, old harmless, and defend Obligors from and against any future claims to or against the Periodic Payments by any person or entity other than the Purchaser and the Purchaser's successors and assigns. Seller a ees that this protection of third parties shall be binding upon Seller and Seller's heirs, executors, inistrators, representatives, successors, estate, and any person or entity claiming by, through or under eller (directly or indirectly), and shall survive the consummation of this Agreement. ARTICLE 7 TERMINATION & RESCISSION 7.1 Termination. Unless otherwise provided by applicable law or unless agreed or ended in writing by the Purchaser and the Seller, this Agreement shall automatically terminate one h dred eighty (180) days from the date hereof if any condition to the Purchaser's obligations hereunder has ot been satisfied prior to that date, unless the failure to satisfy such conditions is the result of a mate' breach of this Agreement by the Seller. Provided, however, that if the Purchaser has filed and is wor . g to secure the Court Order, then this Agreement may not be terminated by Seller until and unless the urt Order proceeding is resolved and decided, one way or another, except with the written consent of P chaser. Purchaser may terminate this Agreement at anytime, even after the proceeding to secure the Court Order has been filed. In the event of termination of this Agreement as provided in this Article, this greement shall forthwith become void and of no further force or effect, and there shall be no liability or bligation on the part of any of the parties hereto or any of their respective officers, directors, employees, a ents, atURtorneys, partnREersE, trustees, paffiliates, or associates, except that the obligations of the partie set fA a in . , p CHASE AG MENT - age 12 of 18 ~ 032449.0001 NEW YORK: 376215 vi \ ) , ) Articles 6, 7 and 8 shall survive the termination of this Agreement for a period of five (5) yea s from and after the date of termination hereof, and except that the obligations of the parties set forth. Article 3, Section 3.13, shall survive the termination of this Agreement for a period of eighteen (18) mo ths from and after the date of termination hereof. To the extent that the termination of this Agreement re ults from the willful breach by the Seller of any of the Seller's representstions, warranties, covenants or a eements set forth in this Agreement, nothing herein shall prejudice the ability of the Purchaser from see . g damages from the Seller for any breach of this Agreement, including, without limitation, attorneys' fe s and the right to pursue any remedy at law or in equity, subject to and in accordance with applicable I w. 7.2 Rescission. Uuless prohibited, expanded, or otherwise provided by applicable la ,Seller shall have a three (3) day right ofrescission after execution of this Agreement, during which Selle may rescind and cancel this Agreement without any further duty, liability, or obligation to Purchaser. If pplicable law provides for a longer period during which the Seller may rescind this Agreement, then Seller shall have until the end of the time period provided by applicable law to rescind and cancel this Agreem nt without any further duty, liability, or obligation to Purchaser. Seller must exercise any right of res . sion by notifying Purchaser, in writing, of Seller's intsnt to rescind and cancel this Agreement wi . the time period provided by this section 7.2 or applicable law, as the case may be. Notice of Seller's in nt to rescind and/or cancel the contract shall be timely as long as it is delivered to Purchaser or post-mar ed by the deadline for exercising such right of rescission and cancellation. ARTICLE 8 GENERAL PROVISIONS 8.1 Notices. Any notice or demand given under this Agreement shall be given by ill nd delivering it, (ij) mailing it by certified or registered mail, postage prepaid, return receipt req ested, or (ill) overnight courier service such as Federal Express, in each case addressed to the Purchaser 0 to the Seller, at the addresses set forth on age 1 of this Agreement or at such other place as either party m y specify in writing to the other party. 8.2 Governin" Law. This Agreement, the Transaction Documents, and the rights, du 'es, and obligations of the parties under said documents and agreements, shall begovemed, interpre d, construed, and enforced in accordance with the laws ofPA and the United States of America. Venue for any cause of action arising out of a breach of this Agreement shall be proper in the State or C mmonwealth ofPA. 8.3 Entire AlZreement. This Agreement, the exhibits, and the Transaction Documen entire agreement of the Seller and the Purchaser with respect to the Transaction and supers agreements, arrangements, and understandings relating to the Transaction, whether oral or 8.4 Amendment; W!\i.ver. This Agreement and the Transaction Documents may be modified; superseded or canceled, and any term, provision, or obligation of this Agreement an Transaction Documents may be waived, by a written instrument signed by the parties to sam . In the case of a waiver of an obligation, term, or provision of this Agreement, any such waiver must be in riting and signed by the party waiving compliance with same. The failure of any party to require perfo ance of any provision of this Agreement or any of the Transaction Documents shall in no way affect the ri ht to enforce the same. No waiver by any party of any condition contained in this Agreement or any of the ansaction Documents, or of the breach of any term, provision, representation, warranty or covenant of s e shall be PURCHASE AGREEMENT - Page 13 of 18 Q Initials 032449.00CH NEW YORK 376215 vl J deemed to be or construed as a further or continuing waiver of any such condition or breach, r as a waiver of any other condition or of the breach of any other term, provision. representation, warranty or covenant. 8.5 Severabilitv. If any provision of this Agreement or any Transaction Document' held to be to any extent unenforceable or invalid then the parties hereto agree that such provision shall b deemed to be modified for purposes of performance of this Agreement or any Transaction Document to the xtent necessary to render it lawful and enforceable, or if such a modification is not possible withou materially altering the intention of the parties hereto, then such provision shall be severed from the agr ement or document for purposes of the performance or enforcement of same. The validity of the rem . . g provisions of the Agreement and the Transaction Documents shall not be affected by any su modification or severance. Any such finding of unenforceability or invalidity of a provision or this Agreem nt in any given jurisdiction shall not prevent the enforcement of any such provision or any other provi on of this Agreement in any other jurisdiction to the maximum extent permitted by law. 8.6 Availabilitv of Eauitable Remedies. Since a breach of the provisions of this Agre ment by the Seller could not adequately be compensated by money damages, the Purchaser shall be entitl d, either before or after the Closing, in addition to any other right or remedy available to the Purchase , to an injunction restraining such breach or a threatened breach and to specific performance of any uch provision of this Agreement. and in either case, no bond or other security shall be required in connection therewith, and the Seller hereby consents to the issuance of such injunction and to the orde . g of specific performance. 8.8 Attornevs' Fees and Court Costs. In the event of any action at law or in equity b ween the parties hereto to enforce any of the provisions hereof, the unsuccessful pa,rty to such action 0 litigation shall pay to the successful party all costs and expenses. including, without limitation, actual ttorneys' fees expended or incurred in connection therewith by such successful party; and if the succes ful party shall recover judgment in any such action or proceeding. such costs, expenses and attorneys' es may be included in and as a part of such judgment. 8.9 Headin"s; Gender; Numbers; Intel'llretation. All ofthe headings contained in thi Agreement are for purposes of convenience or reference only, and shall not be deemed to be a part of this greement or to affect the meaning. construction, interpretation or scope of this Agreement or any of the pr visions hereof in any way. All references in this Agreement to the masculine. feminine, or neuter ge der, shall, where appropriate, be deemed to include all other genders. All plurals used in this Agreeme t or any Transaction Document shall, where appropriate, be deemed to be singular, and vice versa. an shall refer solely to the parties hereto except where otherwise specifically provided. The normal rule of ntractual construction that any ambiguities in a contract are to be resolved against the drafting party all not be -med in the interpretation of this Agreement, any of the Transaction Documents, or any ame ents or exhibits to same and no presumptions regarding the interpretstion of said documents and a eements shall be made as a result of the drafting of said agreement and documents. 8.10 SurvivaL All of the representations, warranties. covenants, agreements, indem obligations, duties, and liabilities of the Seller and the Purchaser set forth in this Agreement d the other Transaction Documents shall survive until the fifth (5th) anniversary of the Purchaser's actu receipt of good funds representing the last of the Periodic Payments. and shall not be deemed merged' to the Transaction'Documents. 8.11 Bindin" Effect. Subject to the restrictions on transfers and encumbrances set fo th herein. all ' :''::::=~:~7':,7::"di'~Of_-'..m~d rho T<~_=Doo '"6) 032449.0001 NEW YORK 376215 vI ] } ) I inure to the benefit of and be binding upon and be enforceable by the undersigned parties an their respective heirs, executors, administrators, representatives, successors and permitted assi NOTWITHSTANDING ANY CONTRARY PROVISION OF THIS AGREEMENT OR ANY 0 HER TRANSACTION DOCUMENT, IT IS EXPRESSLY INTENDED AND AGREED THAT THE ELLER'S SALE TO THE PURCHASER OF THE PERIODIC PAYMENT RIGHTS SHALL BE BINDI G ON THE SELLER'S ESTATE AND THE SELLER'S HEIRS, EXECUTORS, BENEFICIARIES, REPRESENTATIVES AND ADMINISTRATORS, IRRESPECTIVE OF ANY DESIGNATIO OF THE SELLER'S ESTATE AS THE BENEFICIARY UNDER THE SETTLEMENT DOCUMENTS. 8.12 Purchaser's RiI,ht to Asshm. The Purchaser (and each and any assignee of t Purchaser) may assign all of its right, title, and interest in and to this Agreement, the other Transaction Documents, the Annuity, the Settlement Documents, and the Periodic Payments either before or after th Closing and without any requirement of prior consent from or notice to the Seller. Without limiting the g nerality of the foregoing, the Seller shall upon request of the Purchaser or any assignee of the Purchase execute and deliver,any such documents as the Purchaser or any such assignee may require to effectuate d consummate the transactions contemplated hereby. 8.13 Recitals Inl'Oroorated. Each of the recitals to this Agreement is hereby inco included in this Agreement by this reference, as if fully set forth at length. 8.14 Holdback. In the event that the Closing occurs within sixty (60) days of the st scheduled monthly payment of the Periodic Payments, Purchaser may, in its discretion at Closing, hold in Purchaser's bank account and deduct from the Purchase Price, an amount equal to no more an the first two (2) monthly payments to be received by Purchaser hereunder. Upon the receipt by Purc aser of the first monthly payment from the Annuity Owner (thereby insuring the effective change of Pa ent address), Purchaser shall immediately release such funds withheld from the Purchase Price the Seller. Purchaser shall have the right to retain funds sufficient to cover any payments not received y Purchaser, 8.16 MultiDle Orilrinals. This Agreement may be executed in multiple originals, e ch of which shall be deemed an original Agreement. 8. 17 Usurv Savini'S Clause. THIS IS NOT A LOAN. It is the intention of Purch that the provisions of this Agreement constitute a purchase and sale of all of Seller's ght, title and interest in and to the Periodic Payments and it is not, nor should it be construed 'as, a loan. Nonetheless, in order to protect against any conceivable determination that the conveyance was not ef!; 've, it is the intent of Purchaser and Seller to conform to and contract in strict compliance with appli ble usury law from time to time in effect. All agreements between Purchaser and Seller are hereby . ited by the provisions of this paragraph which shall override and control all such agreements, whether ow existing or hereafter arising and whether written or oral. In no way, nor in any event or contingency . cluding but not limited to prepayment, default, demand for payment, or acceleration of the maturity of y obligation) shall the rate of interest taken, reserved, contracted for, charged or received under this greement or otherwise, exceed the Maximum Lawful Rate (defined below). If, from any possible cons ction of any document, interest would otherwise be payable in excess of the Maximum Lawful te, any such construction shall be automatically reformed and the interest payable shall be automatically educed to the Maximum Lawful Rate, without the necessity of execution of any amendment or new doc ent. As used herein, the term "Ml'lyirnum Lawful Rate" means the maximum nonusurious rate of inter per annum permitted by whichever of applicable United States federal law or applicable state law pe 'ts the higher interest rate. PURCHASE AGREEMENT - Page 15 of 18 67 Initials 032449.0001 NEW YORK 376215 vi } t '1 .':', 8.18 Ri..ht of First Refusal. Seller agrees that during the Term, Seller will not se ,assign, borrow against, pledge, or otherwise encumber anyone or more of the Settlement Payments ot included in the Periodic Payments assigned to Purchaser without first giving Purchaser written notice 0 the terms of any such proposed loan or sale, whether such proposal was made orally or in writing. If, wit . ten (10) business days of receiving such notice, Purchaser informs Seller that it elects to match the rms of any such proposed loan or sale, then Seller shall execute all documents necessary to consumma such transaction with Purchaser on those terms. The foregoing right of first refusal shall survive he exercise of any right of cancellation or rescission that Seller or Purchaser may have under this Agreem t, or applicable law. This right of first refusal is assignable by Purchaser, however Purchaser m y elect, at its sole option, not to permit the assignment of this right of first refusal upon the assignment of this Agreement, in which event this right of first refusal shall remain the property of Purchaser. PURCHASE AGREEMENT - Page 16 of 18 032449.0001 NEW YORK 376215 vi 9 Initials I i IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives effective as ofthe date first set forth above. SELLER: ~ t11101 ~ Richard L. McGuire j-/q,e5" Date -' Acknowledlrn1ent For r State Of P-e..v.l\SY I ~<lHIl"'-- ~ County Of~ ) SS: I, a Notary Public of the County and State aforesaid, do hereby certify that \ whose name is signed to the foregoing Purchase Agreement bearing a date of , -I L/ O~ . h s this day acknowledged the same before me and that said signatory has signed said Purchase Agreem t as said signatory's free act and deed. Given under my hand this \'-j"tl'\ day of 0-- ~ fl..$'-ra=:l F'1U<f -S'('kdfL Notarya>vPlic 0 ' State ofJ<e-h~SY IUCH11lA.. PrintNameHere:~! f=f~-ScRc.d~ My Commission Expire. '::>.-c;-- c;-- NOTARIAL S CRYSTAl FRFf-SCHAOE, NOTARY PUBlIC MECHANICSBUftG BOlIO., CUMBERLAND co. MY COMMISSION EXPI DE 2005 PURCHASER: STRUCTURED SETTLEMENT INVESTMENTS, Ltd. By: Date Its: PURCHASE AGREEMENT - Page 17 of 18 ~ 032449.0001 NEW YORK 376215 vJ \, ) , I EXHIBIT A TO PURCHASE AGREEMENT 1. DATE OF PURCHASE AGREEMENT: 12/30/2004 2. PARTIES TO PURCHASE AGREEMENT: A. Seller -- Richard L. McGuire, 6412 Carlisle Pike Lot#110, Mechanicsburg, PA, 17050, SS : 185-68-9147, Phone: 717-796-6531 B. Purchaser -- Structured Settlement Investments, Ltd. 666 Fifth A venne, #349 New York City, NY 10103 3. ANNUITY DOCUMENTS INFORMATION: A. Annuity Issuer: Employers Life Insurance Company of Wausau B. Annuity Owner: Nationwide Mutual Insurance Company C. Annuity Policy#: 32 Cert. Number: 1532 D. Annuity Payments: As stated in the annuity contract (or similar document) set fo as ExhibitB to this Agreement 5. PURCHASE PRICE: A payment of $20,000.00 due 06/0412008. $10,981.49 4. PERIODlCPAYMENTS: 6. ALLOCATION OF PURCHASE PRICE: set forth amount of urcbase rice all aled ach a ent 6/4/08 20,000.00 10,981.49 This Exhibit A is incOIporated into and made a part of the Purchase Agreement to which this E and the other Transaction Documents as if fully set forth and incorporated into said agreements, contracts, at length. Seller acknowledges that it is hislher intent to assign, sell, transfer, and convey to Purchaser the Payments described above. Seller acknowledges that the closing and funding of the Transaction descnbe the Transaction Documents is expressly contingent upon entry of a Court Order, as described in section 5. Agreement. it A is attached, d documents, eriodic herein and in of the Purchase PURCHASE AGREEMENT - Page 18 of 18 ~ 032449.0001 NEW YORK 376215 vI \, } ) I P A TRANSFER DISCLOSURE Payee Richard L. McGuire resident of: P A; A. The effective date of the PURCHASE AGREEMENT shall b deemed to be the date that the Agreement is signed by the pee. B. Amounts and due dates of the structured settlement payment to be transferred: A payment of $20,000.00 due 06/04/2008. C. Aggregate amount of the structured settlement payments to transferred: $20,000.00. D. Gross amount of all expenses, if any, to be deducted from the to be paid to the payee in exchange for the payments to be transferred: $0 . No other amounts will be deducted from th Purchase Price unless, subsequent to the date of this disclosu e,(i) the payee, in writing, requests Purchaser to advance some p rtion of the Purchase Price or pay some expense on the Payee's beha and (ii) the Payee consents, in writing, to have such advance or e penses deducted from the purchase price. E. Amount payable to Payee, net of all expenses, in exchange for the payments to be transferred: $10,981.49. No other amounts wi be deducted from the Purchase Price unless, subsequent to the d te of this disclosure,(i) the payee, in writing, requests Purchaser to advance some portion of the Purchase Price or pay some exp nse on the Payee's behalf and (ii) the Payee consents, in writing, to h ve such advance or expenses deducted from the purchase price. F. Discounted present Value of the payments: $17,126.19; determined by applying the most recently published (cliscoun ) rate of 4.40% as of 12/30/2004. G. YOU WILL BE PAYING THE EQUIVALENT INTEREST TE OF 19.10% PER YEAR. Based on the net amount that you will receive from us and th Amounts and timing of the structured settlement payments t at you Are transferring to us, if the transferred structured settleme t 'payments were installment payments on a loan, with each pa ment applied first to accrued unpaid interest and then to principal it ) would be as if you were paying interest to us of 19.59% per y ar, assuming funding on the effective date of transfer. H. The quotient (64.12)% obtained by dividing the net payment mount by the discounted present value of the payments. I. You (the Payee) may cancel the Transfer agreement at no co tor Further Obligation by providing written notice of cancellati to: Structured Settlement Investments, Ltd. 666 Fifth Avenue # 349 New York, NY 10103-0001 You may cancel the Transfer up to 10 Days from the date up n which you executed this disclosure. Hyou redirect this transfer, pursuant to the provisions of Paragraphs 3.13(b) and 3.13(c) of the Purchase Agreement you ree to pay our reasonable costs of relying upon this agreement in the a ount of 25% of the amount payable to the payee or $2,625.00, which c vers our administrative and legal expenses of seeking court approval or this transfer. In addition, if you cancel this agreement for any other eason (other than pursuant to the provision of Paragraph 7.2 ot1the Pu chase Agreement) after 10 Days business days from the date uppn whi h you executed this disclosure, you agree to pay our reasonable fee of $3,000.00. J. You have the right to obtain independent Professional advice regarding any federal and state income tax consequences aris ng from the proposed transfer, in addition to having the right to seek counsel regarding the proposed transfer and petition. You m y chose to waive the right to seek such professional advise if yo wish to do so by advising us in writing. K. IF YOU FEEL THAT YOU WERE TREATED UNF,URLY ENTERING INTO TillS AGREEMENT, YOU SHOVLD THOSE CmCUMSTANCES TO YOUR LOCAL DISTRIC ATTORNEY OR THE OFFICE OF THE ATTORNEY GE L. Payment to the Payee pursuant to the transfer agreement is contingent upon court approval of the transfer agreement. : ) ) . M. Payment to Payee pursuant to the transfer agreement will be delayed up to 30 days or more in order for the court to revie and approve the transfer agreement. N. Payee acknowledges receipt of, and acknowledges to have re d and understood, the above disclosure statement and information required to be disclosed by Payee's applicable state statute(s) Initials c=::> QJ \. a-v~ -L -fY!sr..\ Il~ Richard L. McGuire Date -oS '- o ~.) , ..:., ";'q '., - IN RE: RICHARD L. McGUIRE IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 05-880 CIVIL TERM ORDER OF COURT AND NOW, this 13th day of April, 2005, final hearing in this matter is continued until Friday, May 6, 2005, at 1:00 p.m., to give the Petitioner the opportunity to look into alternative financing with an interest rate less than 19.1 percent. We have indicated to the purchaser's counsel that he need not be here at the hearing on May 6, but rather he may participate by telephone. By the Court, ~' .."'''.~ /-,- / ~ Edward E. Guido, J. ". ;~ichard L. McGuire, Esquire 6412 Carlisle Pike, Lot 110 Mechanicsburg, PA 17050 ;> ~bert J. Donohue, Jr., Esquire Donohue, McKee, Mattson & Green 1100 Township Line Road Havertown, PA 19083 srs ~l ~ o (/,j-05 "', 'i\. ~) ~, .7 I) \ {"' Ii' \1 I\>)' Cr;'17 "IS "... t:'J I <';o::Ji ,J\.;Uv AtJ/lG-'.;C'H_,.:JJd :Ji---11 .=10 :()L'HO~O:n;:-J ~ ~ DONOHUE, McKEE, MATTSON & GREEN, LTD. A PROFESSIONAL CORPORATION ATIORNEYS AT LAW 1100 TOWNSIllP LINE ROAD TOWNSHIP LINE AND NORTH DREXEL AVENUE HAVERTOWN, PENNSYLVANIA 19083 CHARLES E. McKEE JOSEPH T. MAITSON ROBERT J. DONOHUE. JR. Honorable Edward E. Guido Court of Common Pleas of Cumberland County Attn:Carl S, Hanover Street Carlisle, P A 17103 ROBERT J. DONOHUE (1934'1999) ..."''''...''' DELAWARE COUNTY (610) 853-4400 Fax: (610) 853-1801 May 6, 2005 Re: Petition of Richard L, McGnire CCP # 05-880 Dear Judge Guido: I have spoken with your law clerk with respect to the above referenced Petition, and he informed that you would like something in writing from Mr. McGuire indicating that he wished to proceed on the Petition. Enclosed please find a Request to Proceed which has been signed by Mr. McGuire. If you require any additional documentation please advise. Thank you for your consideration of this matter. RJD/kkh Enclosure cc: Richard L. McGuire 05/05/2005 16:58 FAX ;g]I.IVL, Utl.!. ... ,.- ___, 85(~,~120e5 16: 4 ; 618B53lsel D~NDHUE MCKEE MAnso PAGE e2 IN THE (OURT OF COMM:ON PLEAS OF CUMBERLAND COUNTY, PENNSYLVA.,"'UA CIVIL DIVISION .... IN BE: In ~RD L. McGUIRE No, 05-880 Civil Term .... Request to Proc:eed_ 1, l :ichard L. McGuire, hereby certify that I am aware of the Petition that was file requesting the Cow.t :0 approve the l:Il<Mfer of my stnlctured settlement paymClllt rights. I futtber certifY thAt 1 appeared: t a hearing which was held before the Hononble Edward E. Guido on Aprill:;, 200S, The COL" graciously con1iDued the heariog until May 6,2005 in order to provide me time to see/;; altemati'" ,financing. I , Ilrtify that r bllv~ ell:plored the possibility of alternate financing by coftw:Uld two COlXltllet':: a1 blll)lc& ir1 an attempt to obtain Dlore attractive rates, However, the banb I conta<;fe(l wwld M ptoVide financina. I, theceforc:, wish to pro<;CCd with the Petition. filed in tbis matter and respedfl~ 1)/ requut the C.ou(t to enter the Fin.a.l Orderpmwted at theheMi.ng 0.Il Apl'iI13, 2005. )[ I ndent...d that fills_ sta=enlll ml\d~ herein are aubject to the I"'nalties of 18 Pa. P.S. *,,904 rd ItWg to unsworn fal.ilication to autborlties, f~.J.<> j 7~~_ Richarcl L, MC("JUire r::_'; () (:_~~ -,1 C-Fl --1 :,,'.: -r, :"'-" i" -- (..,,) - ~ , en ...1.) " , ~J r:o r \) L~ r ~ ~~ j ~ ('I { ROBERT 1. DONOHUE, JR., ESQUIRE DONOHUE, McKEE, MATTSON & GREEN Attorney I.D. #83485 1100 Township Line Road Havertown, P A 19083 (610) 853-4400 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL V ANlA CIVIL DIVISION INRE: NO. 05-880 RICHARD L. McGUIRE *** FINAL ORDER AND NOW, this J 3 J'l^ day of fYLv-r , 2005 upon the Petitioner's Petition to Approve the Purchase of a Structured Settlement, any responses thereto, and after a Hearing held on the 13th day of April, 2005 this Court specifically finds that: (I) The interested parties in this matter are: Payee: Richard L. McGuire 6412 Carlisle Pike, Lot #110 Mechanicsburg, P A 17050 Structured Settlement Obligor: Nationwide Mutual Insurance Company One Nationwide Plaza Columbus, OH 43215-2220 Annuity Issuer: Employers Life Insurance Company ofWausau lIS W. Wausau Avenue P. O. Box 8013 Wausau, WI 54402-8013 , (2) the transfer complies with the requirements of 40 PS. Section 4001 et. seq. and will not contravene other applicable Federal or State Statutes or Regulations; (3) at least ten (10) days prior to the execution of the Purchase Agreement, Transferee, Structured Settlement Investments, Ltd., provided Payee a "Disclosure Statement" setting forth all the requirements contained in 40 P.S. Section 4003(a)(2); (4) the transfer of the Assigned Payments is in the best interest of the Payee, referenced in 26 U.S,C. 95891 (b )(2)(A)(ii), taking into account the welfare and support of the Payee's dependants, if any; (5) Payee has been noticed in writing by Structured Settlement Investments II, Ltd. to seek independent professional advise regarding the transfer and has either received the advise or has knowingly waived the advise in writing; (6) the transfer has been expressly approved by the Payee, Structured Settlement Obligor and the Annuity Issuer; or such approval is not required by law; (7) written notice of the Transferee's name, address and tax identification number was sent to the Annuity Issuer and the Structured Settlement Obligor and a copy of such notice has been filed with this Court. (8) Transferee has provided written notice of the Application to the Annuity Issuer, Structured Settlement Obligor, and any other interested parties as required by 40 P,S. ~4004. (9) Jurisdiction and venue are proper for this Court, and proper notices were given to the Annuity Owner and Annuity Issuer, . Based on the foregoing findings, it is hereby ORDERED AND DECREED that the "Purchase Agreement" attached to the Petition is hereby Approved and no party to this proceeding shall hereafter refuse to honor this approved transfer. Employers Life Insurance Company ofWausau and Nationwide Mutual Insurance Company are hereby Ordered to remit the annuity payment of $20,000.00 under Annuity Policy #32, Certificate #1532 due on June 4, 2008 to Structured Settlement Investments II, Ltd., or its registered successors, assigns, affiliates and/or beneficiaries by first class mail, within seven (7) days of the payment due date, to an address to be designated in writing by Structured Settlement Investments II, Ltd, or its successors and/or assigns. It is further Ordered and Decreed that the Assigned Payments shall be paid to Structured Settlement Investments II, Ltd., or its registered successor, assigns, affiliates and/or beneficiaries, regardless of whether the Payee is living or deceased when the Assigned Payment becomes due. It is further Ordered and Decreed that Structured Settlement Investments II, Ltd" or its registered successors and/or assigns, may change the payment address where the Assigned Payments are to be sent without further Order of this Court, Nationwide Mutual Insurance Company and Employers Life Insurance Company of Wausau are directed to issue a formal acknowledgment letter of the transfer within twenty (20) days of the receipt of this Order. The formal acknowledgment letter shall be delivered to Structured Settlement Investments II, Ltd. 666 Fifth Avenue, #349, New York, NY 10103-0001. --.......... BY TCUR, '-T' ) , / ~/ J. r;c 13 - 6':) ~~ /L~,LL ,]lh c~) - .,\ .~ - ./ 0' ~. ....-:. tJ' ..j.J - --