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HomeMy WebLinkAbout06-5167 COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION No. C(,. - sll.. '1 e;oLL /&...~ ~. DOUGLAS E. MADE 1045 Eppley Road Mechanicsburg, PA 17055 (717) 691-5624 Joint Petitioner, pro se LAW OFFICES OF MICHAEL A. GREEN, P.c. By: Michael A. Green, Esquire LD. No. 73450 1831 Chestnut Street Suite 300 Philadelphia, P A 19103 (215) 972-5520 Attorney for Joint Petitioner Stone Street Capital, Inc. IN RE: TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS BY DOUGLAS E. MADE JOINT PETITION FOR COURT APPROVAL OF A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS TO THE HONORABLE JUDGES OF THIS COURT: Petitioners DOUGLAS E. MABE and STONE STREET CAPITAL, INC. hereby jointly petition this Honorable Court for approval of a transfer of structured settlement payment rights pursuant to the Pennsylvania Structured Settlement Protection Act, 40 P.S. ~ 4001 et. seq. (the "Act"), and in support thereof state as follows: 1. Douglas E. Mabe (hereinafter "Mabe" or "Payee") is an adult individual who resides at 1045 Eppley Road, Mechanicsburg, Cumberland County, PA 17055. 2. Stone Street Capital, Inc. ("Stone Street") is a Pennsylvania corporation, which has a primary place of business at 7316 Wisconsin Avenue, Fifth Floor, Bethesda, MD 20814 and bears a tax identification number of23-2617276. 3. By the terms of a 1988 personal injury settlement (the "Settlement"), Mabe became entitled to receive periodic payments. Annuitv No. 1476007 -, 4. The structured settlement obligor is St. Paul Travelers Companies, Inc., successor in interest to United States Fidelity and Guaranty Company ("St. Paul Travelers" or "Obligor"). 5. Pursuant to the Settlement, the Obligor purchased two annuities to fund the settlement: annuity contract numbers 1476007 and 1476008 (the "Annuities") from Fidelity and Guaranty Life Insurance Company ("FGLIC" or "Annuity Issuer"), naming Mabe as annuitant. 6. Pursuant to the Annuities, FGLIC makes the Periodic Payments required of the Obligor pursuant to the Settlement directly to the Payee. 7. Pursuant to the Settlement and Annuities, Mabe became entitled to receive the following guaranteed Periodic Payments: . $11,207.00 on February 1, 1993; . $17,846.00 on February 1, 1998; . $25,620.00 on February 1,2003; · $36,780.00 on February 1,2008; . $51,706.00 on February 1,2013; . $70,179.00 on February 1,2018; . $92,593.00 on February 1,2023; · $119,304.00 on February 1,2028; and . $150,102,00 on February 1,2033. Annuitv No. 1476008 · $700.00 per month, beginning on February I, 1988, increasing at 3% per year for life with forty years guaranteed; (the "Periodic Payments.") 8. Mabe, desiring to receive a lump sum payment in lieu of a portion of the Periodic Payments he would otherwise receive pursuant to the Settlement and Annuity, has agreed to transfer to Stone Street and its successors and assigns the following Periodic Payments: · All but One Thousand and 00/100 Dollars ($1,000.00) of monthly payments of One Thousand One Hundred Ninety and 70/100 Dollars ($1,191.70) increasing 3% each February beginning with the payment on November I, 2 2006 through and including the final payment on October 1, 2021 (from annuity contract number 1476008); . Thirty six thousand seven hundred eighty dollars and 00/100 ($36,780.00) due and payable on February 1,2008 (from annuity contract number 1476007); . Fifty one thousand seven hundred six dollars and 00/100 ($51,706.00) due and payable on February 1,2013 (from annuity contract number 1476007); and . Seventy thousand one hundred seventy nine dollars and 00/100 ($70,179.00) due and payable on February 1,2018 (from annuity contract number 1476007). -" (sometimes the "Assigned Payments"). 10. On July 27, 2006, Mabe executed a Periodic Payment Right Purchase Agreement (defined as a "Transfer Agreement" under 40 P.S. ~ 4002) to effect the transfer of the Assigned Payment. A true and correct copy of the Transfer Agreement and amendment thereto is attached and incorporated as Exhibit A. II. Stone Street timely provided to Mabe a Disclosure Statement, as required by 40 P.S. ~ 4003 (a)(2), more than ten days prior to the date on which the Payee was first to incur any obligation with respect to the transfer. A true and correct copy of the Disclosure Statement and amendment thereto is collectively attached and incorporated as Exhibit B. 12. The aggregate total of the Assigned Payments is: Two hundred fifty thousand six hundred twenty one dollars and 93/100 ($250,621.93) 13. The gross payment to Payee is One hundred two thousand four hundred forty seven dollars and 00/100 ($102,447.00). 14. The net payment to Payee is Nine hundred ninety nine thousand nine hundred forty seven dollars and 00/100 ($99,947.00). 15. The Payee has been provided with the required "IMPORTANT NOTICE" in the form and manner prescribed by 40 P.S. ~ 4003 (3)(b). A true and correct copy of the notice is attached hereto and incorporated as Exhibit C. 3 19. The transfer complies with the requirements of 40 P.S. ~ 4001 et sea. and does not -. 16. The Payee has duly executed a separate written acknowledgment which acknowledges he has received independent legal advice regarding this transaction from Mark W. Allshouse, Esquire. A true and correct copy of the acknowledgment is attached and incorporated as Exhibit D. 17. Timely written notice of the transfer and the transferee's name, address, and taxpayer identification number for each annuity was given to the Annuity Issuer and the Obligor. True and correct copies of the Notices of Assignment are attached collectively and incorporated as Exhibit E.1 18. Additionally, the Annuity Issuer and Obligor have also been timely provided with a copy of the instant Petition, the exhibits hereto, and the proposed form of Order. See Certificate of Service attached hereto. contravene any other applicable federal or state statutes or the order of any court or responsible administrative or govermnental authority or any applicable law limiting the transfer of workers' compensation claims. 20. Mr. Mabe is umnarried and has one dependent, his daughter Brittany Mabe, aged 14. 21. The transfer is in the best interest of the Payee, taking into account the welfare and support of his dependents. I Stone Street has subsequently assigned its interest in this transaction to Stone Street Settlement Funding, LLC ("SSSF"), 39121 Treasury Center, Chicago, IL 60694-9100, tax identification number 20-3369290. The Stone Street-SSSF transfer will not affect Mr. Mabe in any way. 4 < WHEREFORE, having satisfied all applicable statutory requirements for the transfer of the structured settlement payment rights identified in this Petition, Petitioners respectfully request that this Honorable Court grant the instant Petition and enter the attached Order. Respectfully submitted, DOUGLAS E. MADE k,,'-~ -~ ~ Douglas ~ Pro se LAW OFFICES OF MI P.C, Michael A. Gree Attorney for Petitioner Stone Street Capital, Inc. 5 . VERIFICATION I, Douglas E. Mabe, verify and state that the facts contained in the foregoing Joint Petition for Approval of a Transfer of Structured Settlement Payment Rights and the exhibits thereto are true and correct to the best of my knowledge, information and belief. I make this Verification subject to 18 P A. C.S.A. 9 4904, relating to penalties for unsworn falsification to authorities. )~~ ~ vv-k Douglas . abe VERIFICATION I, John Ryan, am President and Chief Operating Officer of the Structured Settlement Division of Stone Street Capital, Inc. I am familiar with the file that Stone Street Capital, Inc. maintains for Douglas E. Mabe and I am authorized to make this Verification. I verify and state that the facts contained in the foregoing Joint Petition for Approval of a Transfer of Structured Settlement Payment Rights and the exhibits thereto are true and correct to the best of my knowledge, information and belief. I make this Verification subject to 18 P A. C.S.A. 9 4904, relating to penalties for unsworn falsification to authorities. Date: a/id l! 7 CERTIFICATE OF SERVICE I, MICHAEL A. GREEN, ESQUIRE, certify that I caused to be served a true and correct copy of the foregoing Petition for Approval of a Transfer of Structured Settlement Payment Rights, the exhibits thereto and proposed form of Order, this rday of 4vF~ 2005, via certified mail, return receipt requested, upon the following: Douglas E. Mabe 1045 Eppley Road Mechanicsburg, PA 17055 Service of Process Coordinator St. Paul Travelers Companies, Inc. 385 Washington Street, MC 515A St. Paul, MN 55102 Fidelity and Guaranty Life Insurance Company 100 I Fleet Street Baltimore, MD 21202 8 to --- . .S~~St~~ Amendment to Purchase, Transfer and Assignment Agreement ("Amendment") On our about July 6, 2006, Douglas E, Mabe (referred to as "you" or "your"), executed a Purchase, Transfer and Assignment Agreement (hereafter the "Agreement"), which is a contract between you and Stone Street Capital, Inc. its successors and/or assigns ("Stone Street" or "we," "us", or "our"). a Pennsylvania Corporation. After that time, you and Stone Street have agreed to amend certain key tenns of the contract. The purpose of this Amendment is to set forth the new tenns under which you agree to sell us your structured settlement payments. The Date of this Amendment is August 15,2006. SUMMARY OF KEY TERMS: Instead of the payments originally set forth in your Agreement, you agree to sell, and Stone Street agrees to purchase the following payments: All but One Thousand and 00/100 Dollars ($1,000,00) of monthly payments of One Thousand One Hundred Ninety-One and 70/100 Dollars ($1,191.70) increasing 3% each February beginning with the payment on November 1, 2006 through and including the tinal payment on October 1, 2021; plus one (1) lump sum payment of Thirty-Six Thousand Seven Hundred Eighty and 00/100 Dollars ($36,780.00) due and payable on Febl1lary 1,2008; plus one (1) lump sum payment of Fifty-One Thousand Seven Hundred Six and 00/100 Dollars (S51 ,706.00) due and payable on February 1,2013; plus one (1) lump sum payment of Seventy Thousand One Hundred Seventy-Nine and 00/100 Dollars ($70,179.00) due and payable on February 1,2018 ("the Assigned Payments") Instead of the payments originally set forth in your Agreement, you have agreed to accept the following purchase price in exchange for the Assigned Payments: $102,447.00 (the "Purchase Price") Addendum to Disclosure Statement. Along with this Amendment, we have also provided you with a copy of an Addendum to Disclosure Statement. Among other things, the Disclosure Statement describes the fees that you will be responsible for at the time of funding. The tenns set forth of the Disclosure Statement and the Addendum to the Disclosure Statement are considered a part of this Agreement. You agree that you had the opportunity to read and review the Disclosure Statement and the Addendum to Disclosure Statement, and that you agree to its tenns. Other Terms of Your Al!reement. Other than changes to the Assigned Payments and the Purchase Price as set for above, all other terms and conditions in your Agreement with Stone Street Capital shall remain in full force and effect, and by signing below you represent and promise to Stone Street Capital that you are not aware of any breach or violation of the Agreement as of the date hereof. By signing below, the parties agree to be bound to the tenns of the agreement, including the provisions set forth in the Terms and Conditions attached hereto and incorporated herein by reference. SELLER: f)r,~ ~~ Douglas Mabe 75 . ('8'16G STONE~f\~ILTAL'I~C: By: ~ David M. Lewis, Senior Vice President .stonestreet Capital PuRCHASE, TRANSFER AND AsSIGNMENT AGREEMENT This Purchase, Transfer and Assignment Agreement, which along with the Terms and Conditions attached hereto is referred to herein as the "Agreement", is a contract between Stone Street Capital, Inc: its successors and/or assigns ("Stone Street" or "we," "us", or "our"), a Pennsylvania Corporation, and Douglas E. Mabe (referred to as "you" or "your'~. The purpose of this Agreement is to set forth the terms of a legally binding contract where you agree to sell us your structured settlement payments. SUMMARY OF KEY TERMS: You agree to sell, and Stone Street agrees to purchase the following payments: All but One Thousand and 00/100 Dollars ($1,000.00) of monthly payments of One Thousand One Hundred Ninety and 70/100 Dollars ($1,190.70) increasing 3% each February bq;iuning with the payment on November 1, 2006 through and including the final payment on October 1, 2021; plus one (1) lump sum payment of Thirty-Six Thousand Seven Hundred Eighty and 00/100 Dollars (536,780.00) due and payable on February 1, 2008; plus one (1) lump sum payment of Fifty-One Thousand Seven Hundred Six and 00/100 Dollars (551,706.00) due and payable on February 1,2013; plus one (1) lump sum payment of Seventy Thousand One Hundred Seventy-Nine and 00/100 Dollars ($70,179.00) due and payable on February 1,2018 ("the Assigned Payments") You have agreed to accept the following purchase price in exchange for the Assigned Payments: -+- hi"" <Ai c.kl!.c.:J( f<ir r'"I./t, :r~5 $102,447.00 (the "Purchase Price") . .11 I.}o-' I ft..e~<.. c..",>JR.rS"\.'i-i~ c.i'\ ~J:;;t'-06 h.. Disclosure Statement. To comply with state and federal law, we gave you a Disclosure Statement that\- explained the financial terms of this Agreement. Among other things, the Disclosure Statement describes the fees that you will be responsible for at the time of fimding. The terms set forth of the Disclosure Statement, including any later amendments to the document, are considered a part of this Agreement. You agree that you had the opportunity to read and review the Disclosure Statement, and that you agree to its terms. Date of the Al!reement. The date of this Agreement is July 16,2006, and you have no obligation under this Agreement before that date. By signing below, the parties agree to be bound to the terms of the agreement, including the provisions set forth in the Terms and Conditions attached hereto and incorporated herein by reference. SELLER: . ~o_~ o,,~ This foregoing ins ent was acknowledged before me this ay of 200~ by Douglas E. Mabe, who is ei (i) 0 wn m (ii) who h pro By: <ro~rm~ David M. Lewis, Senior Vice President otary Signature /J 1"1 Notary Public in and for the State of f/ /'7 My Commission Expires: -,:J Page I , ~ TERMS AND CONDITIONS The purpose of this Terms Summary is to set forth additional terms of a legally binding contract where you agree to sell structured settlement payments to Stone Street Backgrouud A. You (or someone acting on your behalf) settled a lawsuit or a claim sometime before the date of this Agreement, and as a result of that settlement, you became entitled to receive payments payable over time. The terms of that agreement are documented in a Settlement Agreement or a similar document (the "Settlement Agreement"). The defendants or their insurers in your lawsuit or claim assigned their obligation to make those payments to a third party, the Settlement Obligor (the "Obligor"). The Settlement Obligor purchased an annuity (the "Annuity") from an insurance company (the "Issuer") to make sure that you would receive the payments according to the terms of the Settlement Agreement. You are entitled to receive payments from the Annuity. B. You have decided that receiving your payments according to the timetable set forth in the Settlement Agreement does not satisfy your financial needs. After thinking about other ways of addressing your financial situation, you have decided to sell some of your payments to Stone Street in exchange for a cash payment. 1. The Sale and Purchase. You agree to sell the settlement payments identified as the "Assigned Payments" on the Summary of Key Terms to which this Terms Summary was attached. Stone Street agrees to pay you, and you agree to accept, cash in the amount identified as the "Purchase Price" stated on the Summary of Key Terms to which this Terms Summary was attached 2. How the Purchase 'Price Will be Paid to You. We will pay you by any means you choose, including an electronic wire transfer directly to your bank account or by check. If you elect an electronic wire transfer, we will On1~~ payment to a bank account in your name. PA-i 8j C.~L ~) 3 What Must HaDDen Beior Funifinl!:. Before the Assigned Payments are transferred to Stone Street, a court must approve this Agreement. After court approval, there are additional conditions that must be met before we can pay you your Purchase Price. First, the Issuer must acknowledge, in writing, the receipt of a court order that: (a) directs the Obligor and Issuer to make the Assigned Payments to Stone Street to the address and entity that we name; (b) makes all fmdings required by applicable law; and (c) cannot be appealed. Second, we must confirm that all of your obligations under the Agreement have been satisfied including providing us with all necessary documentation. Last, we must review the transaction, the supporting documents, lien, judgment, bankruptcy and other searches to verify that there is no right or condition that exists that would require us to terminate this Agreement. When these steps are satisfied, your transaction will close and fund. 4. The PavmeDts We Do Not Buv. If you decided to sell us only a portion of your payments, this Agreement does not affect the payments that you did not sell. You will continue to receive the unsold portion of the payments unless those payments were previously sold, encumbered or subject to court ordered garnishment or execution. In some cases, the court, the Obligor or the Issuer may require that the entire structured settlement payment be paid to us, and, upon receipt, we shall remit the unassigned portion of the structured settlement payment back to you. If such a circumstance arises in your transaction, you agree to this payment servicing arrangement. 5. Other Documents. Stone Street will expeditiously and diligently work to get a court order Page 2 approving this Agreement. To assist us in this process, you agree to execute additional documents that may be required by the court, the Obligor or the Issuer. You agree to provide us with complete copies of your Settlement Agreement and Annuity, and other documents necessary to complete the transaction. 6. You Own and Can SeD Your Pavments. We must establish that you own the payments that you are selling to us, and that no one else could claim an interest in the Assigned Payments. Unless you tell us in writing otherwise, you represent and promise to us that: (a) You have the right to receive and sell the Assigned Payments; (b) This Agreement does not conflict with any of your other obligations; (c) The Assigned Payments are not subject to any community property or spousal rights of any person; (d) There is no dispute, lawsuit, or challenge relating to your right to receive the payments under the Settlement Agreement; ( e) Neither you nor anyone else has sold, pledged or otherwise transferred the Assigned Payments nor attempted to do so; (f) No other person or business claims a security interest, lien, right, title, or interest of any kind in the Assigned Payments; (g) All applicable child support, alimony, and tax obligations are up to date; (h) There are no unsatisfied judgments against you; (i) You are not in bankruptcy; and G) If one or more of these statements becomes untrue before the Purchase Price is paid to you, you agree to notify us in writing. In all events, you authorize us to conduct credit checks, judgment and lien searches, and criminal background searches to confirm that there are no claims against the Assigned Payments. 7. Your Promises to Us. Stone Street is relying upon the statements you have made to us and the documents you have provided regarding you, your situation, the payments you are receiving, and the payments you are now selling, including the following: (a) You completed and signed an application along with this Agreement, and the information contained in the application is complete and correct; (b) You believe that selling the Assigned Payments is in the best interest of you and your dependents; ( c) You are 18 years of age or older, are of sound mind, not under the influence of drugs or alcohol; (d) You understand and agree that you are not considered a "consumer" in this transaction, and that you waive the protection of various consumer protections laws; (e) You understand that we are not assuming any of your obligations under the Settlement Agreement, Annuity, Uniform Qualified Assignment or other related documents; (f) You understand and agree to the terms of this Agreement; (g) No one has forced you to sign this Agreement nor has anyone promised you anything other than what is stated in this Agreement in an effort to persuade you to sign it. 8. IndeDendent Advisor. Before you sign this Agreement, you may wish to consult with an independent advisor to seek legal, financial or other expert advise regarding the legal, financial, and tax consequences of this Agreement. By'signing this Agreement, you acknowledge that Stone Street has advised you of this right in writing. 9. Deductions from the Purchase Price. We will deduct from your Purchase Price any fees that are set forth on your Disclosure Statement. In addition, you may have elected to sell payments to pay off debts, liens, and past due obligations. If you owe back taxes, past due child support, or have judgments or liens recorded against you or your assets, we may require that some of those debts, claims, Page 3 . or liabilities be paid at the time the transaction is funded. If it is reasonably necessary to pay certain debts before funds are released to you so that the Assigned Payments are not subject to such debts, Stone Street will pay those debts for your account and deduct the payment from your Purchase Price. 10. Payments Received Before FundiBl~. You acknowledge that it may take some time for the Obligor and Issuer to receive and process the court order. Accordingly, you could receive payments that were supposed to be sold to Stone Street. If you receive some payments before we pay you the Purchase Price, the amount of payments received by you will be deducted from the Purchase Price. 11. Amount Heldback from Purchase Price. As set forth above, it may take the Obligor and Issuer some time to process the court order. We may withhold an amount from the Purchase Price equal to the amount of the payments to be paid within two to six months of the closing (depending upon the insurer and its practices). When the Assigned Payments begin to be received by Stone Street, the am?unt ~thheld will be released to yo~ less the amount of any payments Pai)over to you in error whi).e the msurlWce company was proc~ssm~ the addres~ chanie. I ~(d' . v'At.. ~ ~ ret.. f'V\ /<-1 -:r "..,..t"J ND~ ,N'J ("..,Il/ 10 ~ re , <.> U ,,_.? iO -18 b 12. Receiyinl!: Payments In Error. The Obligor and Issuer may send an Assigned Payment to you in error. In the event that you receive a payment that you have sold to Stone Street, you agree to hold those payments in trust and immediately turn them over to Stone Street. 13. Limited Power of Attomev. Some insurance companies will continue to make the Assigned Payments payable in your name after the transaction is closed. You hereby grant Stone Street, or its successors, assigns or agents, an irrevocable limited "power of attomey" granting us the right to cash these checks and to deposit the money into our collection account. 14. Chanl!:es in the Terms of your Structured Settlement by the Issuer. From time to time, insurance companies have financial problems that cause them to be placed in receivership, rehabilitation, liquidation or subject them to other similar proceedings. As a result, the payments paid under your structured settlement could be reduced. If the payments are reduced, you agree that the reduction is first taken from any payments that we did not purchase. Also, if there is a payment from an insurance fund benefit to make up for the reduction, the payment is first distributed to make up for any deficiency in the Assigned Payments so that Stone Street is made whole. After we are made whole, the remaining insurance fund payment shall be attributed to payments that Stone Street did not purchase. 15. Grant of Securitv Interest. You intend to sell and Stone Street intends to purchase your rights, title and interest in and to the Assigned Payments. This Agreement is not a loan. Subject to the court's approval of the sale, you grant to Stone Street a security interest under Article 9 of the Uniform Commercial Code in your rights and interest in the Assigned Payments. These rights have been assigned to Stone Street as a payment intangible or general intangible under Article 9 of the Uniform Commercial Code. This Agreement shall function as a security agreement, and the security interest secures payment of the rights assigned and performance of your obligations under this Agreement. In the event that the transaction is for any purpose characterized as a loan, a financing or extension of credit or anything other than a true sale by any court, you grant us a security interest and all rights of a secured party lender under the Uniform Commercial Code. We may file a UCC-I financing statement or continuation statement evincing and perfecting our rights in the jurisdictions that we deem appropriate. 16. Testamentary Al!:reement. If you should die prior to the due date of the last Assigned Payment, Stone Street will continue to receive the Assigned Payments on the dates set forth in the Summary of Key Terms. You are giving up your rights to the Assigned Payments, and the rights of your heirs, successors, beneficiaries, and/or any other person claiming by, through or under you. Accordingly, this Agreement is a Testamentary Agreement in which you irrevocably agree to name Stone Street or its Page 4 assigns as the party that will inherit the Assigned Payments upon your death. You understand that you no longer have the power to amend, modify, alter or otherwise change this beneficiary designation. Also, you agree to sign a form designating Stone Street as the sole beneficiary under the Annuity during the term of the Assigned Payments. 17. Restrictions on Assilmment. Your Settlement Agreement may contain language prohibiting your right or power to accelerate, defer, increase, decrease or assign your payments. You hereby waive and release any such restriction if your Settlement Agreement or the Annuity contains this or similar language, As such, you understand and agree that you will never claim or assert that the payments you are now selling were not transferable, or that this language renders this Agreement void. 18. Arbitration. Any claim or dispute ("Claim") by either you or us against the other, or against the employees, agents, successors or assigns of the other, arising from or relating in any way to this Agreement or any prior agreement (whether under a statute, in contract, tort, or otherwise and whether for money damages, penalties or declaratory or equitable relief) including Claims regarding the applicability of this arbitration clause or the validity of the entire Agreement or any prior agreement, shall be resolved by binding arbitration. The arbitration shall be conducted by National Arbitration Forum (''NAF'') under the Code of Procedure in effect at the time the Claim is filed. NAP Rules and forms may be obtained and Claims may be filed at any NAP office, www.arb-forum.com. or at PO Box 50191, Minneapolis, Minnesota 55405, telephone (800) 474-2371. We or you may, upon approval of the other, substitute another nationally recognized, independent arbitration organization that uses a similar code or procedure. This arbitration agreement is made pursuant to a transaction involving interstate commerce, and shall be govemed by the Federal Arbitration Act, 9 U.S.C. ~~ 1-16 ("FAA"). Any arbitration award shall be final, and judgment upon the award may be entered in an court having jurisdiction. No Claim submitted to arbitration is heard by a jury, and no Claim may be brought as a class action or as a private attorney general. You do not have the right to act as a class representative or participate as a member of a class of claimants with respect to any Claim. I KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WAIVE MY RIGHT TO A JURY TRIAL UNDER TIllS AGREEMENT. 19. Construction of this Aereement. All of the headings contained in this Agreement are for convenience only. They are not part of this Agreement, and that shall not affect its meaning, construction or interpretation. This Agreement, the Disclosure Statement, and the attached exhibits make up the entire agreement between you and Stone Street and replace all prior arrangements and understandings, written or spoken. If we amend this Agreement, the terms of the amendment shall control over terms that set forth herein. 20. Severabilitv. Should any provisions of this Agreement is held to be invalid, illegal, unenforceable or in conflict with the law of any jurisdiction, that provisions shall be deemed to be modified to the extent necessary to render it lawful and enforceable. If such a modification is not possible, that provisions shall be severed from the Agreement and shall not in any way affect or impair the validity, legality and enforceability of the remaining provisions in this Agreement. 21. Future Assil!Dment Bv Stone Street. Stone Street (and any future assignee) may assign all of its right, title, and interest in and to this Agreement, the other related docwnents, the Annuity, and the Assigned Payments either before or after the closing and without any requirement of prior consent from or notice to you. 22. Annlicable Law. Except as otherwise required by applicable statutory law, this Agreement shall be governed by and interpreted in accordance with the law of the jurisdiction where we sought court approval of this Agreement. Page 5 AUTHORIZATION TO RELEASE INFORMATION To Whom It May Concern: You are hereby authorized to release any information which I am entitled to receive regarding my structured settlement annuity. This authorization specifically applies to any insurance company who is the issuer or owner of the structured settlement annuity from which I currently receive certain periodic payments. This authorization also applies to any attorney, law firm, settlement broker, court clerk or insurance company that may have copies of any settlement agreement, release or similar document that I executed, or was executed for my benefit, that is related to the above referenced structured settlement annuity. This authorization also applies to all creditors, including any child support agency, taxing authority, and structured settlement purchasing company, to whom I am currently indebted or have been indebted to in the past. This authorization specifically authorizes those creditors to discuss and/or divulge in writing any outstanding debt I owe. This authorization is for the specific use by Stone Street Capital, Inc. with its principal place of business at 7316 Wisconsin Avenue, Suite 500, Bethesda, Maryland 20814, its successors and assigns. A photocopy of this authorization shall be considered as the original. ~o~t, '- "'~ Douglas E Mabe Acknowledgement The above person, known to me to be the person whose name is subscribed to this instrument, personally appeared before me and acknowledged to me that he/she has read this instrument and that the instrument has been executed by himlher. Given under my hand this _ day of ,200_. Notary Public State of Print Name Here: My Commission Expires: . Douglas E. Mabe To Whom It May Concern: Please change your records to show the Estate of Douglas E. Mabe as the beneficiary after my death under the above referenced annuity contract. Please confirm this beneficiary change in writing at your earliest conveni~ce. ""'" yon ro.y"''''_ ''''':=>'1' Q ~ . ljc~T s Acknowledllement The above person, known to me to be the person whose name is subscribed to this instrument, personally appeared before me and acknowledged to me that he/she has read this instrument and that the instrument has been executed by him!her. Given under my handthis~dayof J;L/f./ ,20oiL. J}(l//$ lil otary Public State of fft Print Name Here: 8alhe flJJ3hoflSe.- My Commission Expires: ,j-.2'I-,J()'Jfj OF NalarIIIs.I SIIIe~lIha_p"~ c.nou ........ My CommIIIlon EllIlhS M8r. .2008 ADDENDUM TO DISCLOSURE STATEMENT This Addendum to the Disclosure Statement dated August 15, 2006 (hereinafter "Addendum") is made by and between STONE STREET CAPITAL, INC. ("Stone Street") and Douglas E. Mabe ("Mabe"). RECITALS WHEREAS, Mabe executed a Disclosure Statement on or about July 6, 2006 (hereinafter "Disclosure Statement"); and WHEREAS, the parties have mutually agreed to modify the tenns of the Disclosure Statement by the execution of this Addendum; NOW, THEREFORE, in consideration of the mutual promises set forth herein as well as other valid consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. The recitals set forth above are hereby incorporated into this Addendum and made a part hereof 2. Paragraph No. I of the Disclosure Statement pertaining to the amounts and due dates of payments transferred is hereby corrected to read as follows: I. Amounts and Due Dates ofPavments to be Transferred. You will assign to Stone Street all of your right, title and interest in and to all but One Thousand and 00/100 Dollars ($1,000.00) of monthly payments of One Thousand One Hundred Ninety-One and 70/100 Dollars ($1,19..70) increasing 3% each February beginning with the payment on November 1,2006 through and including the final payment on October 1,2021; plus one (1) lump sum payment of Thirty-Six Thousand Seven Hundred Eighty and 001100 Dollars ($36,780.00) due and payable on February 1, 2008; plus one (1) lump sum payment of Fifty-One Thousand Seven Hundred Six and 001100 Dollars ($51,706.00) due and payable on February 1,2013; plus one (1) lump sum payment of Seventy Thousand One Hundred Seventy- Nine and 00/100 Dollars ($70,179.00) due and payable on February 1, 2018 out ofthose certain payments due under the Settlement Agreement and Release. 3. Paragraph No.2 of the Disclosure Statement pertaining to the aggregate amount of payments transferred is hereby corrected to read as follows: J19171,OI 4. Gross Amount Pavable. The gross amount payable to you in exchange for the transferred payments is One Hundred Two Thousand Four Hundred Forty-Seven and 00/100 Dollars ($102,447.00). 2. Al!l!ret!:ate Amount of Pavments Transferred. The aggregate amount of the payments to be transferred to Stone Street totals Two Hundred Fifty Thousand Six Hundred Twenty-One and 93/100 Dollars ($250,621.93). 4. Paragraph No.3 of the Disclosure Statement pertaining to the Internal Revenue Service Discounted Present Value is hereby corrected to read as follows: 3. Internal Revenue Service Discounted Present Value. The Internal Revenue Service discounted present value of the payments to be transferred is One Hundred Fifty-Nine Thousand Eight Hundred Fifteen and 56/100 Dollars ($159,815.56) determined by discounting the future payments to be transferred using a rate most recently published for determining the present value of an annuity by the Internal Revenue Service, which rate is 6.0%. This is a calculation of the current value of the transferred structured settlement payments under federal standards for valuing annuities. THIS IS NOT THE RATE USED TO CALCULATE YOUR PURCHASE PRICE. It is also not the market rate for transfers of annuity payments of structured settlement payments. 5. Paragraph No.4 of the Disclosure Statement pertaining to the gross amount payable is hereby corrected to read as follows: 6. Paragraph No.6 of the Disclosure Statement pertaining to the net amount payable is hereby corrected to read as follows: 6. Net Amount Pavable. The net amount payable to you in exchange for the transferred payments is Ninety-Nine Thousand Nine Hundred Forty-Seven and 001100 Dollars ($99,947.00). 7. Paragraph No.7 of the Disclosure Statement pertaining to the quotient is hereby corrected to read as follows: 31')17)01 7. Quotient. The quotient (expressed as a percentage) obtained by dividing the net payment amount by the discounted present value of the payments is 62.54% (#6 divided by #3). By David . Lewis, Esq. Its General Counsel o c-p- '7-~ Douglas E. Ma e '8 - {~ - 06 319173.01 DISCLOSURE STATEMENT This Disclosure Statement is being provided by Stone Street Capital, Inc. ("Stone Street") to you, Douglas E. Mabe, on July 6, 2006 in connection with your agreement to transfer and assign to Stone Street Capital, Inc. or its assigns certain structured settlement payment rights. 1. Amounts and Due Dates ofPavments to be Transferred. You will assign to Stone Street all ofyonr right, title and interest in and to all but One Thousand and 00/100 Dollars ($1,000.00) of monthly payments of One Thousand One Hundred Ninety and 701100 Dollars ($1,190.70) increasing 3% each February beginning with the payment on November 1,2006 through and including the final payment on October 1, 2021; plus one (1) lump sum payment of Thirty-Six Thousand Seven Hundred Eighty and 00/100 DoIlars ($36,780.00) due and payable on February 1,2008; plus one (1) lump sum payment of Fifty-One Thousand Seven Hundred Six and 00/100 Dollars ($51,706.00) due and payable on February 1, 2013; plus one (1) lump sum payment of Seventy Tbousand One Hundred Seventy-Nine an 001100 Dollars ($70,179.00) due and payable on February 1, 2018 out of those certain payments due under tbe Settlement Agreement and Release. 2. Mf!'reeate Amount of Payments Transferred. The aggregate amount oftbe payments to be transferred to Stone Street total Two Hundred Fifty Thousand Six Hundred Twenty-One and 93/100 DoUars ($250,621.93). 3. Internal Revenue Service Discounted Present Value. The Internal Revenue Service discounted present value of the payments to be transferred is One Hundred Fifty-Nine Tbousand Eight Hundred Fifteen and 561100 Dollars ($159,815.56) determined by discounting the future payments to be transferred using a rate most recently published for determining the present value of an annuity by the Internal Revenue Service, which rate is 6.0%. This is a calculation of the current value of the transferred structured settlement payments under federal standards for valuing annuities. TH S Jj~^v\ (Initial here) IS NOT mE RATE USED TO CALCULATE YOUR PURCHASE PRICE. It is also not the market rate for transfers of annuity payments of structured settlement payments. 4. Gross Amount Payable. The gross amount payable to you in exchange for the transferred payments is One Hundred Two Thousand Four Hundred Forty~Seven and 00/100 Dollars ($102,447.00). -t j r(;C','~ ch.ec.J( P.<::I"'a.. ,JI'> Cl-N>lil.;'<.J,..;oJ o~ b - ~(, . alL() ~ 5. Good Faith Estimate of Fees and Expenses. Y 00 will be -.:. Ii responsible for paying the following commissions, fees, expenses, charges, and costs in connection with the closing of this transaction: Legal fees of $2,500. 5 6. Net Amount Pavable. The net amount payable to you in exchange for the transferred payments is Ninety~Nine Thousand Nine Hundred Forty~Seven and 00/100 Dollars ($99,947.00). + '$ (CD,~. C~i( (J<,r, ~fl... 5, C ""..J va U"'~l"',j ON (, -'<;>b . \1,(. 7. Quotient. The quotient (expressed as a percentage) obtained by dividing the net payment amount by the discounted present value of the payments is 62.54% (#6 divided by #3). r ~~ 8. Breach of Contract. The amount of any penalty and the aggregate amount of any liquidated damages (inclusive of penalties) payable by the payee in the event of any breach of the transfer agreement by the payee shaD be: None. By signing this Disclosure Statement where provided below, you acknowledge and agree that you have read and fully understand e foregoing Disclosure Statement, that you have been advised by Stone Street to discuss the Disclosure Statement and the details 0 the proposed transaction with your financial advisors and attome s and have been provided an opportunity to do so. ~~ ~ - )) ElfIt (Initial here) RECEIVED, AGREED AND ACKNOWLEDGED: ~.~ (, -',:; 7 -0i. Date c D Choose one: ~ I have received independent professional advice from \ an Attorney, Licensed inancial PI et, CPA) whose office is locatesl at I (I phone number @JSfQ -'} ()IJi. regarding e I al, tax and financial implications of the transfer of my structured settlement payment rights. ST ATE~NT ON INDEPENDENT P~QFESSIONAL ADVICE Stone Street Capital, Inc. is required by law to advise you of your right to consult with an independent professional advisor regarding the legal, tax and financial implications of the transfer of your structured settlement payment rights. Acknowledl!ement I, Douglas E. Mabe understand that I may consult with an independent professional advisor and acknowledge that Stone Street has informed me of that right. -OR- o I have knowingly and voluntarily chosen not to consult with an independent professional advisor and hereby expressly waive the right to do so. I am aware of the legal, tax and financial implications of the proposed transfer and I desire to have the court approve the transfer of structured settlement payment rights as described in the Purchase, Transfer and Assignment Agreement. ":00..0 ~J Douglas E. ~ DOUGLAS E. MABE 1045 Eppley Road Mechanicsburg, P A 17055 (717) 691-5624 Joint Petitioner, pro se LAW OFFICES OF MICHAEL A, GREEN, p,c. By: Michael A. Green, Esquire J.D. No. 73450 1831 Chestnut Street Suite 300 Philadelphia, PA 19103 (215) 972-5520 Attorney for Joint Petitioner Stone Street Capital, Inc. IN RE: TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS BY DOUGLAS E. MADE COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION No. NOTICE OF ASSIGNMENT Transferor: Transferee: Annuity Owner: Douglas E. Mabe Stone Street Capital, Inc. and its successors and assigns St. Paul Travelers Companies, Inc., successor in interest to United States Fidelity and Guaranty Company Fidelity and Guaranty Life Insurance Company 1476007 Annuity Issuer: Annuity Numbers: Pursuant to Section 4003 of the Pennsylvania Structured Settlement Protection Act, 40 P.S. ~ 4001 et seq. (the "Act"), notice is hereby given that the above-referenced transferor has entered into agreements with the above-referenced transferee to transfer all of his right, title, and interest in certain payments due under the above-referenced annuity in exchange for consideration. The transferred payments are as follows: · $36,780.00 on February 1,2008; · $51,706.00 on February 1,2013; and · $70,179.00 on February 1,2018. The Transferee's taxpayer identification number is 23-2617276. Neither the Annuity Issuer nor the Annuity Owner is being asked to honor the transfer at this time. Pursuant to the Pennsylvania Structured Settlement Protection Act, the Transferee and Transferor will be seeking court approval of the transfer in the Court of Common Pleas of the County in which the Annuitant resides and will provide both the Annuity Owner and the Annuity Issuer with a copy of the court's order. While neither the Annuity Issuer nor Annuity Owner is required to appear or participate in the court approval proceedings, the Annuity Issuer and Annuity Owner are entitled, under the Act, to support, oppose, or otherwise respond to the Petition, either in person or by counsel, or by submitting written comments to the court or by participating in the hearing. Any such written comments or objections must be filed with the Court and served upon the undersigned counsel for Petitioners within twenty (20) calendar days from the date of this Notice. Under Section 4004 of the Act, upon entry of an order by the court approving the transaction, the Annuity Issuer and Annuity Owner will both be released from all liability for making the payments which are the subject of the assignment to all parties except the Transferee. The form of order submitted to the court will also provide that nothing in the order shall be interpreted to negate, impair or modify the ownership or control over the annuity contract by the Annuity Owner or Annuity Issuer. LAW OFFICES OF MICHAEL A. GREEN, P.C. "~ ~ichael A. n Attomey for Petitioner Stone Street Capital, Inc. . CERTIFICATE OF SERVICE I, MICHAEL A. GREEN, certify that I caused to be served a true and correct copy of the foregoing Notice of Assignment this 'W~ay of tJv1 lJf r ,2006 via certified mail, return receipt requested, upon the following: Douglas E. Mabe 1045 Eppley Road Mechanicsburg, PA 17055 Service of Process Coordinator St. Paul Travelers Companies, Inc. 385 Washington Street, MC 515A St. Paul, MN 55102 Fidelity and Guaranty Life Insurance Company 100 I Fleet Street Baltimore, MD 21202 . DOUGLAS E. MADE 1045 Eppley Road Mechanicsburg, P A 17055 (717) 691-5624 Joint Petitioner, pro se LAW OFFICES OF MICHAEL A, GREEN, P.C. By: Michael A. Green, Esquire I.D. No. 73450 1831 Chestnut Street Suite 300 Philadelphia, P A 19103 (215) 972-5520 Attorney for Joint Petitioner Stone Street Capital, Inc. IN RE: TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS BY DOUGLAS E. MABE COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION No. NOTICE OF ASSIGNMENT Transferor: Transferee: Annuity Owner: Douglas E. Mabe Stone Street Capital, Inc. and its successors and assigns St. Paul Travelers Companies, Inc., successor in interest to United States Fidelity and Guaranty Company Fidelity and Guaranty Life Insurance Company 1476008 Annuity Issuer: Annuity Numbers: Pursuant to Section 4003 of the Pennsylvania Structured Settlement Protection Act, 40 P.S. S 4001 et seq. (the "Act"), notice is hereby given that the above-referenced transferor has entered into agreements with the above-referenced transferee to transfer all of his right, title, and interest in certain payments due under the above-referenced annuity in exchange for consideration. The transferred payments are as follows: · All but One Thousand and 00/100 Dollars ($1,000.00) of monthly payments of One Thousand One Hundred Ninety and 70/100 Dollars ($1,191.70) increasing 3% each February beginning with the payment on November I, 2006 through and including the final payment on October I, 2021. The Transferee's taxpayer identification number is 23-2617276. , Neither the Annuity Issuer nor the Annuity Owner is being asked to honor the transfer at this time. Pursuant to the Pennsylvania Structured Settlement Protection Act, the Transferee and Transferor will be seeking court approval of the transfer in the Court of Common Pleas of the County in which the Annuitant resides and will provide both the Annuity Owner and the Annuity Issuer with a copy of the court's order. While neither the Annuity Issuer nor Annuity Owner is required to appear or participate in the court approval proceedings, the Annuity Issuer and Annuity Owner are entitled, under the Act, to support, oppose, or otherwise respond to the Petition, either in person or by counsel, or by submitting written comments to the court or by participating in the hearing. Any such written comments or objections must be filed with the Court and served upon the undersigned counsel for Petitioners within twenty (20) calendar days from the date of this Notice. Under Section 4004 of the Act, upon entry of an order by the court approving the transaction, the Annuity Issuer and Annuity Owner will both be released from all liability for making the payments which are the subject of the assignment to all parties except the Transferee. The form of order submitted to the court will also provide that nothing in the order shall be interpreted to negate, impair or modify the ownership or control over the annuity contract by the Annuity Owner or Annuity Issuer. Michael A. Gre n Attorney for Pe . 'oner Stone Street Capital, Inc. . CERTIFICATE OF SERVICE I, MICHAEL A. GREEN, certify that I caused to be served a true and correct copy of the foregoing Notice of Assignment this ~daY of JJv;; v (r, 2006 via certified mail, return receipt requested, upon the following: Douglas E. Mabe 1045 Eppley Road Mechanicsburg, PA 17055 Service of Process Coordinator St. Paul Travelers Companies, Inc. 385 Washington Street, MC 515A St. Paul, MN 55102 Fidelity and Guaranty Life Insurance Company 1001 Fleet Street Baltimore, MD 21202 A:> (;) ~ rc; jk i ~ . ~ 0 r--:> 0 ~? c,~ = -n ...... 0" f3 ~ ----r:t-- U) :;:l Pi fn~ f", -U ~ ~ -r:J I ~ - p::: 0" (~1t -U -1~ i;:j, ~ ..-..~ ;.:~rn N ~"/ .. 'l~ ::( ::0 O? .< DOUGLAS E. MABE 1045 Eppley Road Mechanicsburg, PA 17055 (717) 691-5624 Joint Petitioner, pro se RECEIVED SEP 0 6 2006 BY: , . LAW OFFICES OF MICHAEL A. GREEN, P.e. By: Michael A. Green, Esquire LD, No, 73450 1831 Chestnut Street Suite 300 Philadelphia, PA 19103 (215) 972-5520 Attorney for Joint Petitioner Stone Street Capital, Inc, IN RE: TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS BY DOUGLAS E. MABE COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION · L'-t- No. C:J.- -5/1..7 (!'OL I~ RULE AND NOW, this I J.-/j. day of ~ 2006 upon consideration of the Joint Petition for Court Approval of the Transfer of Structured Settlement Payment Rights by Douglas E, Mabe ("Mabe") to Stone Street Capital, Inc. and its successors and assigns (collectively "Stone Street") pursuant to 40 P.S. g 4001 et. seq., a Rule is hereby issued upon Mabe and Stone Street to show cause why the relief requested in the Petition should not be granted. RULE RETURNABLE and to be heard the 5-4:JL day of O~'\. , 2006 at I 0'.00 a.m./p.m. in Courtroom ~ . BY J, ~ ?5 r>:..\ o / ,.. ~, IJ~:,,, .7 .. ".J . "J '1 (I s. H... IN RE: TRANSFER OF STRUCTURED: IN THE COURT OF COMMON PLEAS OF SETTLEMENT PAYMENT RIGHTS BY CUMBERLAND COUNTY, PENNSYLVANIA DOUGLAS E. MABE 06-5167 CIVIL TERM AND NOW, this ORDER OF COURT ~ day of October, 2006, following a hearing, the joint petition for court approval of a transfer of structured settlement payment rights, IS DENIED.1 ~chael A. Green, Esquire 1831 Chestnut Street Suite 300 Philadelphia, PA 19103 For Stone Street Capital, Inc, ~UglaS E. Mabe 1045 Eppley Road Mechanicsburg, PA 17055 :sal 1 We find that the payee has not established that the transfer is in his best interest or the best interest of his dependent daughter. The cost at a 13.02% nominal discount rate is not warranted given the payee's stated purpose of seeking to secure funds now that will enable him to purchase a home. The next periodic payment on Annuity No. 1476007 in the amount of $36,780 will be made on February 1, 2008. It is in the payee's best interest and the best interest of his daughter to wait until that time to secure funds for a down payment that will enable him to obtain a mortgage at a market rate, >- cc ~ t.....~. U.J ~--j ~~c: ;~~~ U.Jo.... ......J ;-;-tLf ~r= LL G 0'\ C'J C'? C:: 1......, I }- (....) o vZ> C::-:_i- = C"'-I .::~ . .~ -, (.)