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HomeMy WebLinkAbout06-6095 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA CIVIL DIVISION INRE: PETITION OF ROBERT E. GOLOFSKY TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS No. Ol.. -"O~ (!LO;tr~ PETITION TO TRANSFER STRUCTURED SETTLEMENT PAYMENT RIGHTS Petitioner, ROBERT E. GOLOFSKY, brings forth the following Petition to Transfer Structured Settlement Payment Rights pursuant to, and in compliance with, the Structured Settlement Protection Act, 40 P.S. SS 4001-4009, and in support states as follows: 1. The Petitioner is ROBERT E. GOLOFSKY, by his Attorney-in-fact, LINDA S. GOLOFSKY, an adult individual whose date of birth is March 4, 1980. Mr. Golofsky is currently incarcerated in SCI - Camp Hill located in Cumberland County, Pennsylvania, and therefore he is now domiciled in Cumberland County. 2. This Court has venue pursuant to the Structured Settlement Protection Act, because the Petitioner is domiciled in Cumberland County, Pennsylvania. 3. As a result of his incarceration, Mr. Golofsky has appointed his mother, Linda S. Golofsky, as his Attorney-in-fact to act on his behalf in this and other matters. A true and correct copy of a Power of Attorney executed by Robert E. Golofsky, appointing Linda S. Golofsky his Attorney-in-fact is attached as Exhibit "A." 4. On or about August 21, 1981, the Petitioner suffered personal injuries as a result of a dog bite accident. Thereafter, on or about February 6, 1987, the Petitioner, by and through his parents and natural guardians, Richard and Linda S. Golofsky, entered into a Settlement Agreement and Release with Lumbermens Mutual Casualty Insurance Company. The Agreement provided that the Petitioner would receive lump sum payments on December 30 in the following years and in the following amounts: 1998 - $12,000.00; 1999 - $13,000.00; 2000 - $15,000.00; 2001 - $20,000.00; and 2020 - $50,000.00. The Agreement further provided that Petitioner would receive 228 monthly payments of $884.00, commencing January 30, 2002, through and including December 30, 2020. A true and correct copy of the Settlement Agreement and Release including confirmation of the benefits schedule is attached as Exhibit "B." 5. Lumbermens Mutual Casualty Company is the Structured "Settlement Obligor" as defined by 40 P.S. g 4002. Lumbermens Mutual Casualty Company is located at One Kemper Drive, Long Grove, IL 60049. 6. As authorized by the terms of the Agreement, Lumbermens Mutual Casualty Company funded the obligation by purchasing an annuity from First Colony Life Insurance Company, the "Annuity Issuer." Id. First Colony Life Insurance Company is located at 3100 Albert Lankford Drive, Lynchburg, VA 24501. 7. On October 3, 2006, Petitioner executed an Absolute Assignment and UCC Article 9 Security Agreement (the "Transfer Agreement"), a true and correct copy is attached and incorporated herein as Exhibit "C." The Transfer Agreement provides for the assignment of Petitioner's right and interest in receiving: 48 monthly payments each in the amount of $884.00 commencing on January 30, 2017, through and including December 30, 2020; and one lump sum payment of $20,000.00 due on or about December 30, 2020 (the "Assigned Payments"), to 2 Settlement Funding, LLC (the "Transferee"). Settlement Funding, LLC d/b/a Peachtree Settlement Funding ("Settlement Funding") is a Georgia Limited Liability Company with its principal place of business at 3301 Quantum Boulevard, Boynton Beach, FL 33426. 8. The Transfer Agreement was executed by the Transferee on October 4,2006. 9. The Petitioner shall retain all right and interest in receiving the remaining balance not assigned of: a partial lump sum payment of $30,000.00 due on December 30, 2020 (the "non- assigned payment"). 1 O. Additionally, as set forth in further detail in the Affidavit dated October 3, 2006, attached and incorporated herein as Exhibit "D," Petitioner avers that: a. He desires to sell the Assigned Payments to Settlement Funding, LLC. b. The transaction contemplated by the Transfer Agreement is in his best interest, it will improve his standard of living, and he has thoroughly considered all of the ramifications of the transaction. c. He will use the proceeds from this transaction to re-pay obligations incurred for raising his bail and attorney fees. d. He has been advised to obtain, but has declined independent professional advice from an attorney or other professional. 11. Petitioner has been provided, and has acknowledged receipt at least 10 days prior to receipt of the Transfer Agreement, of the "Transfer Disclosure" required by 40 P.S. 9 4003 (a)(2) attached and incorporated as Exhibit "E." As set forth in greater detail in the Transfer Disclosure, the following terms have been disclosed to the Petitioner: a. The amounts and due dates of the structured settlement payments to be transferred are: 48 monthly payments each in the amount of $884.00 commencing on January 30, 2017, through and including December 30, 2020; and one lump sum payment of $20,000.00 due on or about December 20, 2020. b. The aggregate amount of the structured settlement payments to be transferred is $62,432.00. 3 c. The discounted present value of the payments transferred using the most recently published applicable federal rate for determining the value of an annuity is $29,145.67. d. The federal discount rate used to determine the discounted present value is the effective annual rate of 6.0% as of 9120/06. e. The gross amount payable to Petitioner in exchange of the transferred payments is $9,088.78. f. The good faith itemized listing of all broker's commISSIOns, service charges, legal fees, notary fees, costs etc. deductible from the gross amount otherwise payable to the Petitioner is: Legal Fees of $2,000.00 and processing fee of $200.00. g. The net amount payable to Petitioner after deduction of the above commissions, legal fees, etc., is $6,888.78 minus any advances made to Petitioner against the amount payable to Petitioner. h. The quotient is 23.64%. 1. The amount of penalty and aggregate amount of any liquidated damages inclusive of penalties payable by the Petitioner in the event of any breach of the transfer agreement by the Petitioner is: NONE. 12. Petitioner has been provided, and has acknowledged receipt, at least 10 days prior to receipt of the Transfer Agreement, of the written "Important Notice" in bold print 12-point type required by 40 P.S. S 4003 (b). A true and correct copy of Petitioner's acknowledgement of the receipt ofthe S 4003 (b) notice is attached as Exhibit "F." 13. Petitioner has been advised to obtain but has waived independent legal advice regarding the implications of the transfer, including tax ramifications of the transfer, as set forth in the acknowledgement attached as Exhibit "G." 14. On January 24, 2002, "The Victims of Terrorism Tax Relief Act," PL 107-134, 115 Stat. 2427, was enacted, which in part, amends the Internal Revenue Code of 1986. The Act amends 26 U.S.C.A. 9 5891 and now provides for favorable tax treatment of "structured 4 settlement payment factoring transactions" that are approved in advance by a qualified court order approving the transaction. 26 U.S.C.A. S 5891 (b)(l). A "structured settlement payment factoring transaction" is defined as "a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration." 26 U.S.C.A. S 5891 (c )(3)(A) (parentheses in original). A "structured settlement" is defined as an arrangement established by "agreement for the periodic payment of damages excludable from the gross income of the recipient under [Internal Revenue Code] section 104 (a)(2)..." and under which the periodic payments are "of the character described in subparagraphs (A) and (B) of section 130(c)(2)." A true and correct copy of 26 U.S.C.A. S 5891 is attached hereto as Exhibit "H. " 15. 26 U.S.C.A. S 5891 (d)(l) was also added by the Act and provides: [I]f the applicable requirements of sections 72, 104(a)(l), 104(a)(2), 130, and 461 (h) were satisfied at the time the structured settlement involving structured settlement payment rights was entered into, the subsequent occurrence of a structured settlement factoring transaction shall not affect the application of the provisions of such sections to the parties to the structured settlement (including an assignee under a qualified assignment under section 130) in any taxable year. (Emphasis added). Accordingly, a favorable tax result is in effect at the time the Payee and the Transferee propose to enter into the Transfer Agreement. 16. Since a favorable tax result is in effect, approvals of the Settlement Obligor and the Annuity Issuer to the proposed transfer are not required. 40 P.S. S 4003 (a)(5)(i)(A). 17. The structured settlement did not arise out of a workers' compensation claim. 5 18. Petitioner has seriously contemplated this transaction, and due to his personal circumstances and needs, believes that this assignment is in his best interests, taking into account the welfare and support of Petitioner's dependents. 19. Petitioner acknowledges that counsel, Jones, Gregg, Creehan & Gerace, LLP has not been engaged to render professional advice with respect to the advisability, or the implications of the transfer, including the tax ramifications of the transfer. Counsel has been engaged solely to prepare and present the within Petition, based upon Petitioner's independent determination and/or professional advice obtained from others, with respect to the advisability and ramifications of the transfer. WHEREFORE, Petitioner prays that this Honorable Court schedule a hearing as set forth in 40 P.S. ~ 4004, to consider this Petition to Transfer Structured Settlement Payment Rights. Respectfully submitted, Jones, Gregg, Creehan & Gerace, LLP By: /~. , 7d;;--p~ Robert L. Monks P A LD.# 52760 411 Seventh Avenue Suite 1200 Pittsburgh, P A 15219 412-261-6400 Counsel for Petitioner, Robert E. Golofsky, by his Attorney-in-fact, Linda S. Golofsky 6 VERIFICATION I, Robert E. Golofsky, by his Attorney-in-Fact Linda S. Golofsky, have read the foregoing Petition to Transfer Structured Settlement Payment Rights and hereby aver that the statements contained therein are true and correct to the best of my knowledge, information and belief. This Verification is made subject to the penalties of 18 Pa. C. S. A. Section 4904 relating to the unsworn falsification to authorities. Dated: !o-!3-r;,/}t :::-~,-~ ........ ...----:"" Gl':NERA.I. DURABLE POVVER OF ATTORNEY ..... RE:_. .~;;'. ~... .... --......-- NOTICE '11IB PURPOSE OFTlIIS PO~ OF A'lTORNEYlS TO GI:VB THE PERS01VYOU DESIGNATE (l'O(JR "AG.8NT7 BROADPoWF.RS TO HANDLE YO.lJR P.ROPER~ WHr01 MAY l:.VCT..UDE POWERS TO SELX OR OT1mRW'ISE l'J.o,;POSE OF ANY Rlt4L OR l"El.l..ClOJ'V.-1L l!ROPERn: W1Tl10ur ADVANCF.N017(."E TO YOU ()RAPPROV~ 8YyoU. THIS POweR OF.ATTORNEY DOP.:SNOT IMf>OSE A DllTYONU~URAGP.NT TO f;}.{ERClS.rz OR4l.'n'DPOWlrRS, BCJ'1'W1:lEN J't,)WERSAllE 1::XERcrSElJ, l'OlJRltUENT .MUST US.E.OW! CARJ.; 1"0 ACT FOR VO~ BENEFIT ANn L.V ACCORDANCE ""-T711 TfflS POWER OF AnUAN~~ '. lVC1RA'GB'lrrlfLl1' .nERt'}~1{7~ POWI'-:Bs GiW lIERE 77mOlTGHOtlT i"ovx UFBTlJt.lll. EVEN AF1'ER YOU BELU1UE lNCAPACITA77JD. UNLEss YOU E..YPRE.9..<lLY I.lMIT . 7'1:1H DURAnON OF T1fESE POH-'XRS OR. YOU REVIJKB TH.B8f! POWER..~ OR A CO Vltr ACTING ON YOU1lBF..1LU.F T.RRM.l:N'AT.Es l"OURAGEm"SAV771()Rt.f.Y. YDURAGEN1'MUsT KEEP YOV'R ~s ~ARAm FROM YOUR AG.f.:NT"S FllNDS. A COtIJIT C.tNTAREA iV.4Y.77.rB POWF.RS OF youR AG'ENT.IF rr FINDs YOUR A.GE1'v71S NOTActJ:NG'PjUJPERT..l.... . . . . . ~ . . . . '1'1ie: rowlm~;ANll Dm7:CS OF AN AGENT UiVDERA PO"WER OF Ar:roRNF.y ARE EXP1..MNEDMOR.13~YIN:;lOP~....c...CJ. C11..5~: .' . . IFTHE:R.l! IS",ilVYmlNG AR0l.1TTH18 FORMUt'1 Tl'OCroo NOT ffND1-:RSTA..V.O, 'ltnJ SlIOU1.J.?~JC4. L..nl...~:cR OJ" }'OVR OH-N CHOOSLVGTOl1rcPL.UN1T TO I'DV'. 1 RA~ READ OR .E.l.4.D E..'Y{PLAIN1!..D TO Mlo: T1l131V071CB ~-l^7> :r tTNDliR,r;J'J(NJ) ris ~ -J1...L.4.,/~~ . ~_Cili ....\)... t....,... 6Olo"?!;7~ . (J'.l'indpal) .' (Date) ,', 1;'" .. ......- ....... '.'--'--:' - ...- .:--.. ...~...-... L L,'rN't~1 ~ . the prind""". ,h" "'.~e'. bcl.. of .>nnd ",ind .~d a tl!Sidont of Itf') ~m 'L\A., · a.'M:)t~<'(city/tQwn). Pennsylvanhl J;>.4~(~ip code), . . dO,a.uthoriZl! and designate ~Y.\k~' (, ~ --' WhOSll ~ddrllss :lIthe Lime ('If !his W'ntmg is knowlI to be 31 0 .,......,~.rl M~(oe.v~,~__... (diy/town), Pennsylwmia ~!.~ (zip code), a~ my true nlld lawful Agent. I ftnther Blttborb:e nlY Agent to appear Or) IlIY.behalf, and sign my rlLlm~ to any document Q.!l if I Wi:ls present. I flll'ther . cmjl'()wcr my Agent to do' n05 of the al1tho~~ed dllri~s assig.ned according t~ 20 P~:L.~.s.A. Ser.tionil 5602. 5003 and 5604- . . ..". .' .'. ~l"'. .: :\., .~~ -.,.,. . ',. :fl. I. Exhibit A ] .!: , , 1:h-e powers Kl1lnted to Illy Agent ':.tre limited to the d'ur:ltion (If my incarCc::!ratioll jn:the ' , ". AIlegh'en)',County 33 if and sb..n tl~rOljnatc at the t!OlI! O(.fOY ~elet1.se:', I.furt!ull' state thilt I retltin the tight to terminate thilj power 'Of attorney Jlt any tilne by notifying my Agent in Wfitin~ of nlY Intention. The dutieo.s aha n include: 1. Power to make l~ired gifts in my nanlc. 2. Power to r.l'eate a trust for my benefit. ,3. Power 10 make ndditions to an exio;ling trust for my benefit. 4. Power to engage in real property .tranSO(:nollS inr.{uding the colJ~tiOI\ of reTlt or m~rlg~gP.s OW~Jp ,D:le., . ,', ',:. ',... _'" ',,' ..~ ,_ ~.,: .:. ._:- ._: ,_. " , Pow." ;.. .~g.., in b"king .nd fi"'ncio1t&""ioo". incl.dl.g 'h. ,;""1",, or eh"'b, draft<; or money' ordeJ:S, make withdrawal.,; from my savings and eheCking accOullts, ' r deposit monies into Jlnyof my ~cePllnt.~, pay just debt~, including taxes, medical bills, etc:, ,Power to authorize admission ~I) a medIcal faCility and to llUthorize medical prOCedllres. ,7~: ,~ ~\)wCJ t9 e!,lter;;uu.: safe dep(lsit,~ox beld In my,nerine, but does Dot authorize ~e AgelJt to place his/het name on $aId box lIS a joil1t owner, , , .1 rult.., .~ my Ag.n, .to h... po""" to .du .'1)'thing th., 1 might do u.nO! descril?cd herein. 5. 6. 8. , .,' , , . 'I hl:!tebj- s\'{(!cu th~t I ha~'e cre:-tterl this Genel'al Durable .Power of Attorney document as an apticm of In}' OWn free "ill and decision. ! further ~tate tllll.t r bay!:: not been tIlI'e3telll~d Or ,coerced to the sa Ine, -~,R. _' ~ri~~tJ.r ~aolc>&'s. :~p -Co 'I'" gJ.4.....7 Social Security NtlD1~r --- . ~~~ · NO!lUy ~ubll, in .nd for ",Id C",anon"",.,th and County,hR>' I,", d.y wirn._ U.. slguing 0' thl. Co..tal Durahi. Powe", """"'.y doe''''''n! nnd ''''''i' thntthc Pl"incipnl siglledofhis OWt] o'ee.vill and lIt:cot'd. " ~ ,\ W;'n"""'d and 'igned this _~__ dayor_~ . ~' ~ /~~.... . .,' '., SYLVAN ~N~_ _I!: _"_ ~ ary'public ',' '- , . NclfQISeaI , CYnlhfI ~~~~, . .... ,'- Of-'""""A~""","i . ay~~Oct.fL_ - ,f .'~, Pen.,.. "9'~""""~ ,\; . .... ,.' , ,. . .' ,,,. '-. ....1 ...! : .':, .~ . ACKNOWLEDGEMENT I, Linda Golofsky. have read the attached power of attorney and am .he person identified as the agent for the prtndpal. I hereby acknowledg. I that in the absence of a specific provision to the contrary In the power of attomey or in 20 Pa.C.S. when I act as an agent: 1 shall exercise the powers for the benefit of the principal. 1 shall keep the assets of the principal separate from my assets. I shall exercise reasonable caution and prudence. I shall keep a full and E-:JCCUrate record of all actions, receipts and disbursements on behalf of the principal. ~~~~ (Si eel I~~C?()L (Date) STATE OF ~ YI nsy Ilia 4"'f I 'e.... COUNTY OR CITY OF A / lei A IhvJ On the 9 f4 day of Oe..f{)h~ . in tbe year 2.aJ6 before me, the undemigned, persooally appand Linda Golof'sky, personally known to me or proved "me on the basis of satis&ctoty evidem:c to be the iDctividuaI(a) whose DilIIII:(s) is (are) mbscri.1: ~ to the within instnlment, and acJtn<.wleclged \10 mo that hclshdtbcy _=utcd the same in his !len'their capacity(ies), and tbt by ~ sipature(s) on tho iostnlmcnt, the iDdividuaJ(. . or the p.nO"_b_ofvlO<h~__')_~~ Notary My Commission expires on __7 -/ 'f' - ;:u.o~ COMMONWEALTH OF PENNSYLVANIA NoIariaI Seal George J.l<oIbakes. Notary PubDc MurrysvlIle BOlO. WesM1a8Iand 0cUIIV My CornmIssicn Expires July 14. 2008 Member p,.nnl'ylv..ola Assodlltion Of Notarie. I I t. NOV-17-2003 1S:es tfXAAD I I! ! , 412 623 4810 P.B2 ......-.- - i, I I. , ! I i I SETTLE NT AGUBHEJllJ' I Ii This Settleanent Agreement lease (t'Settlement Agreement h 'is 1I4de and entered illto thiS It. 'i "y of UU~ ' · 1981, ,by and bet"eell. ROKllT GOrrPSKY. a m1n~: b his parent~. GhCKM\O t. GOLOFSKY and LINDA S. GOLOPSXY, his ~ard anS. and RICHARD E., GOL01SX! and LINDA S. GOf.,OPSKY, hi~ wi! e t (lIPla1nt rrs ") and THOMAS WINSTON I II and DOf{OTHY IJINS'rON. his w1fe, ('IDefendan S"). \ :! A, The plaintlffs flled a eomplain asainet the defenda~~. in the Court of Co~on Pliee of A1ie~enY County at No. GD 83-l273b which complaint arose out or certain tnju ies and damages allegedly f ' suUered by the Plaintifff e. the r"1le f 8J\ ine1dent "hieh oceurred on or about Augu6t 21, 19 l. in or abQut he premises ~hen owned b~ the cJefen~ant8. 9. The part1ea des re4 to ent.~ 0 this Settlement Agreementj order eo prbvi~e for cer~ln payments\1n Ul1 .ettlement and dl~eharge of all c18.1ms which are 01 misht have I bee the subject of the complain ,UP,on the terms and cond1 t one let ror~h h reirt. J J, Agreement. The partieS here,to . f, 1. ii;ii~~i~i~!i!~ii:ii:~~ and their i surer. and the1 8arvants, r presentat1v~S. oth8~ perso St firms, or co c. agree as follows: entrs ealleci for '1 c.omple1;e11 e the derendan~$ attorneys. egents, nd assign$ and all poration8, of and ".' .:1 I Ii' ., .. Exhibit B t-O)-17-2003 15:08 " I ;. . ! I Cl..CGV 412 623 4819 P.03 3. i . from any a~ all paat,jpresent or f~t~re claims, de ndl, cb111.~1~ns, aotion8J eaU5&9 of action, wrons!ul1 d,at~ elalms, r1shtsJ. dama&ee, C 6tS. 10.s of iserv1ces, e~p.nse8 and compensat1on or an, natur~ whatsoever, whether based on 1.1 tort. c'ontr~C'1; or other theol'Y of Z'.oovery. and whether for ~ompenlatlon or., ' pun1t1ve ~~male8, wh1ch.the pla1nt1ffs now ha~e, or ~h1ch j~Y hereafter'acrue or otherwise be acquired, on a~eount ot~ or in any vay irow~ng ou~ of, Ortl ~h1cb are th~ subje~t ot, the com~la1nt (and all rela~ed Pleadings), tncluding, ~1thout 1 m1tat1on;. any and all known or u~known claims to bo"1,11 and personal injury to the, plaintifr or any rutur. wrongful 4eath cla1ms, whiCh hav relulted o~ ~a.y ~e5ult trom the all.sed a t5 or om1ss1bns of the defendante. 1his rele se, on ~he ~art of the. pla~nt1fts shall be a fully 1nd1ng anc1 complete 8et~leE:lent bet\fleen the plainiiffs ana th~ d.!endants and 1naurers of the de endants. the1~ &ss1gns and 8ucce6sors~ &~Ve only the exeoutorYI~rov1$1onB of th1& settleme", asreement. ~e plaint1!fs hereby , agree to etendj inde~n~!y and hold the defendants and their in8urers harmless from and against all such 01&1 5, demands. !o~lisations, aet1on~~ causes of aotion. damagts, coste and expens.s. I :' In eons1deration ot t~~'telea6e set forth above, the de{en~ants and th+ir 1nsurer hereby agree to pay the followinl sums in the tollowinc manner: . I : I Please reter to IISchedule A" attaehed hereto. Pl&intlCrl. Rl~t to pa~~nt: The de!en~bants and/o~:1~s~r.rs shall not segregate or set aSide any of their assets to tund the . payments to the plaintiffs ~equired h.~e1nl 1t be1ng un erstood thatlp~aint1rf' arean4 shall be lener 1 cred1tol"S ;to'the defendan1:& and/or ' the insu~er. Said payments canno~ ~e aecelerateo~ deferred, increased or ~eQrea.ed b~ ~h. pla1ntiffa and no part of the payme~t~ called for herein or any assets 0 defendants and/or the in6urer is to be . sUbjee~ 10 ex.cut1ono~~ any lesal process for an~ . ~~ligat1on 1%1 any__mann.er, .~or Iha11 the pl~1nt1!r6 . ..!. ',\ ' "" . " , , 2. .Payment&: ~-17-2003 15:B8 " I r , I I I I I . -" i r t I ! i ,.' .. " I I I' HCCRAD ClLOGY 412 623 4910 P.04 have ~he p wer to sell or'mortgag. a~ encumber same, or a y part thereof, nor anticipate the same, or I Y part tberec!t~. bV assignment: or otherwise. I Il. 1'1 ht to P chase U\ Mn:u," t I I " The defend nt. and their ~nsurer reaerVQ tne right to f~d the l1ab~~ity" ~o make periodic P&7ments t oUSh the p~~ehas. of an ennu1ty pol'.cy fro the First F~lo"n1 L1felnsurance Co~pan,. ~h. d.rendanlt~ or the1r 1nsurer shall be ~. owner of t~e annuity policy, and shall have all ris'hts of ownership, '!'he defe" ants and th811xt insurer may have the annu1ty 0 rr1er, the ~1~$t Colony LiCe Insurance company, a11 payment~ ~1~ect17 to the plaintiffs. The plain 1fts shall ~e!re$ponS1ble for maintaininl the curre cy of their prdper mailing ad4~eB. and mortal1ty 1ntormat1on tQ:the First Colony Life Insurance Company. I , ' "5. Pla1nt1ft t Senet1elar, ~ I Any payme ts to be ma~e;.rter the death of Robert Go oriky, a miner.. purs\lant to tbe teroms of this s ttlement'agr.eemerit shall be made to such perl n or entitJla~:shall be des1~at.d 1n writing b the guardla.nio~ guardians of Robert Golof$ky, a minor. I~ n9 person O~ entity 15 . 80 deSisn~ted~ such p.y~ent shall ~e made to the Estate oflRobert Golofs~y. a"minor. No sueh de611nat1 n or any revo~atton thereof shall be effective unless it 18 1n wr1t1ns. D1schar e or Ob11 &t1&ni The Oblig t10n of th.lc5~re~dants and the:ir 1nsurer tc make e eh installat,iQP payment shall be dlscharged upon the 11ing of a vt11d check in the amount of 8uch p yment to ~h, .~dress designated by the party ~e ho~ the payment 11 requlred to be made under. th1 settl.men~1 &$reement. 66 7. i: General ,.The :pJ.a1 the rele s.eneral :. t.1!.fs .h.ere.b11. ~~kno~l~dge an~ .~gr~e that. se let forth! 1n Paragraph 1 hereof is a ,lease and ~he~ Curther expressly ~a~v. ! I NQU-17-2e03 15:09 I '.' , I and assume tbe risk of! .rlY 0 and all cla1 for damages which ex1It:a~ ot this date ~hich the ~la1nti!!s dD;n~t kno~ or SUI exist. Whe~'her th~c~h ~8n~rance, overs 'negl1Sence, or otherwise) .nd. which. 1t ~ou14 mate tally atfect[tbt plaintiff.' to enter ~to thlS 8ett~ern~~~'a8reement ~lalnt1rt6 further alr~, tn1t t~eY have payment 0 the .\lIftS sp.ecir~.l~d. here1n as cotnPl'orn1s4j of matters I1nvolv.1ng d1sp\lte or law an~ fact and t~e1 &$!ume the r1s the Xacts or law mal 'be otherwise then believe. lIt is understooa and alr.ed b that this settlemen~ 18,& co~prom1se of and 41sputed ela1~ end the patments.are construedlas an adm~laion or liab111tJ part of t~t deCendants#1 by whom l1a~111 expreSSlY denied. . i DeliverY ~f cert1!1Caie~ of Settlement and D1scoat1nuance: 1 I Conc~rr~n"11 with the:e~ecution of tb1s agreement~ counsel for ~he Plai~tlfCs h to the eounlel for the ~efen4an~S a Cer of settlebent and Discontinuancl': or the aet10n dotedbG in ..ee~tal "An above. Warranty ~r Capacity ~~ Execute Alreement: L f . The Pla1~1!f8 repres~nl: and warriant that no other per.~n 0 ent1t7 has ~~ hie had any interest in cla1ms~ emanch~ obl11~t1ona or causes or action referred to in this &e~tlement &Kreement accept as othe~ile eet forth ~er.1n and that they have the sol~.lr1&ht and eiclus1ve a.uthl~ritY to execute thiB sett1emen~ agreement and receive the Bum 5pecif1ec' in it; and t~at they'have not sold, 8aeisnedl transferred, conveyed or otherwise d1spoaed or any ot the !claim', demands, obligations, or causel of aetion referred to in th1$ settle~en~ agreernen~ . Ii: Ent1re Al reement ~ I i . 1 HCCRAC ~ (LOGY , I , 8. g. 10. ~ 412 623 481B P.0S Me but of pact to 1lht. error, known, decision .' The accepted. a COl'll'Olete d issues k that they' 'J the part.1es a c10ubtful Z'lot t D be on the ty is settlement a8 delive'rd t1f1e.ate e1v11 This set lement .agreement contains '~ne entire . agreemen~ between th~ plaint1ffs, tr.e defendanta, and th~1f insure~ w1~h'reSard to the matter set forth herein and sha111,be. ."o-inding upcJ:l al')o "n.":1r.e O' . . to .the bre!i.t of t~ i"ecuto.... a4Jllin,1.t....to.... I i presentative,'.!. :he1ra, l~cce$SDrSJ and each. I , 10n of Comp~ehen&10n ot Document: . I;" into this ~e~tlement alreement, the plaint ffB ~eprese"t. that theJ bave relied upon the 1 gal adv1ce ~~:~h.1r attornera who is their a tcrne1 of cboice an4 that the terms of this settl ment agre~m+n~,have been completelY read and e pla1ned to ~~em b7 thi8 attorney, and those erm8 are Culliy understood and I I , vol~ntar11 accepted by .them. I . Governing aWl: I \ I ' This settl ment agreem$nt' shall be construed and interp, eted in accp~dance with the lawS ot the Comzno 'ea.lth or Pennsylvania. I 1:- I ' This.sett ement agree~enti shall be~om. effective. Collowlna exeeutlon.o1 ~:l oC the following: I !' , o' I I ;. r t-QJ-17-2983 15: 09 IfXRAD CLOGY ll. 12. 13. E!tect1ve I ! I I ! i. r I . , , I I I I I I ., I ~ . \ . .. ...... I I ! i I ___.__l. 412 623 4910 P.e6 [, ~&~~/~~ I. ,; I, !i - ! .' . . <OIl . .- 1O)-17-200J 15:09 I eLOGY 412 623 4810 p.e7 . ,.: SCD~ ~"Att. I i , . The dafan<lantj and ~hdr +,lirer. the LUJIlbe","",," Mutual Ca!Ualty Insurance .coa,np,n1. agree t1 1&1(8 the followinc payments with1n thi!'ty' (30) days 01' execution ~y i the pla1ntl!fl or the . , SettlemEnt Agreement ane Release: 1. Richard E OoloCsky and; L1J'14s $.. Oolofsky $~O J 000. ot ; I ' 2. Robert S. Ad~s. Esqu~r.. $16.000.00. I ; Defendants anc the1r 1nsuner the Lumbermens Matual Casualty Insurance Comp~ny agree tolma~e the fOllOWing future , payment. to Robert OOlotek7: I 1. December ~o, 1998 - $12~OOO.OO 2. Decembe~ 30. 1999 - $13jOOO.OO 3. December fO. 2000 - $1S!OOO.oo ". Deeember ~o. 2001 - $~O~OOO.OO 5. December JOi 2020 ~ $50~OOO.OO I; . C~qmencins on January 3D,/2?02t an4 continuing monthly thereafter for a term ot nineteen rears certa1n. the Gum ot I I ! $884.00 per Month. At fhe con01U8i~iot this nineteen 1ear ter~, no further payments of lny nature whatsoever will be due ana owing. ., ABSOLUTE ASSIGNMENT AND uee ARTICLE 9 SECURITY AGREEMENT (THE II AGREEMENT") September 30, 2006 I, Linda S. Golofsky as Power of Attorney for Robert E. Golofsky, ("I", "Me" or "Assignor") residing at 110 Tyrolia Dr, Monroeville, PA 15146-3734 am entitled to 228 monthly payments each in the amount of $884.00 commencing on January 30, 2002 through and including December 30, 2020, and one lump sum payment of $50,000.00 due on December 20, 2020 (the "Periodic Payments") on account of the settlement of a certain personal injury claim, the settlement of which is memorialized in that certain settlement agreement dated February 6, 1987 (the "Settlement Agreement"). The Periodic Payments are due to me from Lumbermens Mutual Casualty Company (the "Settlement Obligor") under the terms of the Settlement Agreement and are being funded by an annuity issued by First Colony Life Insurance Company (the "Annuity Issuer") bearing annuity contract number 0440986. A. I hereby sell, assign and convey to Settlement Funding, L.L.C. (the "Assignee") or its assigns all of my rights to and interest in and to the following payments due or to become due under the Settlement Agreement: 48 monthly payments each in the amount of $884.00 commencing on January 30, 2017 through and including December 30, 2020. One lumpsum payment of $20,000.00 due on or about December 20,2020 (the "Assigned Payments"). In consideration for this assignment, Assignee shall pay to me the sum of: $9,088.78 (the "Assignment Price"). B. I hereby make the following unconditional representations, warranties and promises: 1. No one other than me has any interest or claim of any kind or nature in, to or under the Assigned Payments I am assigning hereunder. 2. I am not indebted to anyone that would affect in any way either the assignment of the Assigned Payments referenced above or Assignee's absolute rights to receive same. 3. I agree to conduct my affairs so as to ensure that Assignee obtains all of the benefits of the assignment contemplated hereby. C. I agree that the fOllowing shall be considered an event of default by me under this Absolute Assignment Agreement: 1. The representations set forth in Paragraphs B 1 and B 2 above are at any time n,ot true. 2. Failure by me to perform the promise set forth in Paragraph B 3 above. 3. Failure by the Settlement Obligor or the Annuity Issuer to make anyone or more of the Assigned Payments as a result of any act by me, my estate or any of my heirs. 4. Failure by the Settlement Obligor or Annuity Issuer to forward one or more Assigned Payments to Assignee as a result of any act by me, my estate or any of my heirs. 5. Failure by me to forward promptly to Assignee any Assigned Payment received by me from the Settlement Obligor or the Annuity Issuer. 6. Failure by me to fulfill any other obligation of mine under this Agreement. D. The following are conditions precedent to Assignee's obligation to pay me the Assignment Price: 1. Assignee shall be satisfied, in its sole discretion, that there are no claims or interests of any kind or nature whatsoever that do or may affect Assignee's rights to or interest in the Assigned Payments and Assignee's ability actually to receive same on the dates and in the amounts set forth herein. 2. Assignee shall have received a final non-appealable court order, or a signed acknowledgment from Settlement Obligor and the Annuity Issuer satisfactory to Assignee in its sole discretion (such court order or acknowledgement together are hereinafter referred to as the "Order"), authorizing the transfer by assignment of the Assigned Payments (which may continue to be made out to my name) to Assignee, and directing that the Periodic Payments due on or after the day of the Order be forwarded, or authorizing the forwarding of the Periodic Payments, directly to Assignee. E. Under this Agreement and only to the extent permitted by law Assignee and I intend to create a security interest under Article 9 of the U r- "'" rr-' of the state designated in Paragraph F below, in my rights to and interest in pa Exhibit C e Settlement Agreement, which rights have been assigned to Assignee as General Intangibles under Article 9 of the Uniform Commercial Code of the state designated in Paragraph F below. This Agreement shall also function as a security agreement. This security interest secures payment of the rights assigned and performance of my obligations under Paragraph B above. Assignee may direct any account debtor, obligor on an instrument, including, without limitation, the Settlement Obligor or Annuity Issuer, to make periodic payments directly to Assignee as contemplated by the Uniform Commercial Code. Assignee may file a UCC-1 financing statement to perfect its rights hereunder. F. Except as otherwise required by applicable statutory law, this Agreement shall be governed by and interpreted in accordance with the law of the state of residence of the Assignor on the date of this Agreement. ARBITRATION Any and all controversies, claims, disputes, rights, interests, suits or causes of action arising out of or relating to this Agreement and the negotiations related thereto, or the breach thereof, shall be settled by binding arbitration administered by the American Arbitration Association. The demand for arbitration shall be filed in writing with the other party to this Agreement and with the American Arbitration Association offices in your state of residence. The arbitration shall be held in the largest city in your state of residence. The arbitration shall be held before a single arbitrator selected in accordance with the Commercial Arbitration Rules of the American Arbitration Association in effect at the time that the demand for arbitration is filed. Discovery, specifically including interrogatories, production of documents and depositions shall be at the discretion of the arbitrator and to the extent permitted shall be conducted in accordance with, and governed by the Federal Rules of Civil Procedure. A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question has arisen. In no event, shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question, would be barred by the applicable statute of limitations. No arbitration arising out of or relating to this Agreement shall include, by consolidation or joinder or in any other manner, an additional person or entity not a party to this Agreement, except by written consent of the parties hereto, containing a specific reference to this Agreement and signed by the entity sought to be joined. Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of any claim, dispute or other matter in question not described in the written consent or with a person or entity not named or described therein. The foregoing agreement to arbitrate and other agreements to arbitrate with an additional person or entity duly consented to by parties to this Agreement, shall be specifically enforceable in accordance with applicable law in any court having jurisdiction thereof. The award rendered by the arbitrator shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. Such arbitrator shall identify the substantially prevailing party and shall include legal fees and expenses for the substantially prevailing party. This provision does not apply to the extent inconsistent with applicable state law regarding the transfer of structured settlement payments. In such case any disputes between the parties will be governed in accordance with the laws of the domicile state of the payee and the domicile state of the payee is the proper venue to bring any cause of action arising out of a breach of the agreement. G. I hereby grant to Assignee an Irrevocable Power of Attorney with full powers of substitution to do all acts and things that I might do regarding the Assigned Payments and any and all rights I have under the Settlement Agreement, including, without limitation, the power to endorse checks, drafts or other instruments, the power to alter, edit and change payment instructions and/or beneficiary designations and any other act which, in the sole discretion of Assignee as my Attorney-in-Fact is necessary or expedient for it to obtain all of the benefits of the bargain contemplated by this transaction. This power of attorney is coupled with an interest and shall survive my death or disability. H. In the event that prior to the consummation of the transaction contemplated hereby I receive any of the Assigned Payments, or any portion thereof, the Assignment Price shall be reduced in like amount and the terms of this Agreement regarding the payments to be assigned shall be deemed to be adjusted accordingly. In the event Assignee receives or otherwise comes into possession of any of the Periodic Payment(s) or portion(s) thereof which are not included in the payments being absolutely assigned to Assignee hereunder, Assignee shall forward such amount(s) to me at the address set forth above within seven (7) days of receipt of such amount(s). I. Assignee shall be entitled to discharge any adverse claims against Assignor or any of the Assigned Payments whether or not such adverse claims are disclosed. Assignee may, provided Assignee furnishes prior written notice to Assignor, pay any and all amounts necessary or, if the Assignment Price has been deposited into an escrow account, instruct the escrow agent to pay any and all amounts necessary to discharge such liens or other adverse claims, and the Assignment Price shall be reduced by the amount of any such payment. Adverse claims may include disclosed amounts to be deducted by Assignee from the Assignment Price to pay Assignee, as servicer for Peachtree Finance Company, LLC, to enable Assignor to obtain Peachtree Finance Company, LLC's release of its encumbrance on a portion of the Assigned Payments, which portion of Assigned Payments relate to prior transfer transaction(s) consummated prior to the effective date of the applicable transfer act( s) which encumbrance must be released for the transaction contemplated herein to be consummated. J. I know that it will take some time for the Settlement Obligor and the Annuity Issuer to receive and process the court order once it is granted. I would like to receive the Assignment Price or a portion thereof as soon as possible thereafter. Accordingly, I hereby request Assignee to pay me a portion of the Assignment Price as soon as possible after the court order is granted and authorize Assignee to hold in escrow an amount it deems necessary or advisable from the Assignment Price (the "Escrow Amount") until all conditions precedent have been satisfied, including, without limitation, the receipt by Assignee of the Settlement Obligor and the Annuity Issuer's acknowledgment of the terms of the court order in writing and their agreement to honor and comply with same. At such time or earlier as Assignee may determine, I understand that Assignee will send the Escrow Amount to me minus any Assigned Payments that the Annuity Issuer and/or Settlement Obligor sent to me while the Settlement Obligor and the Annuity Issuer were processing the court order. K. This Agreement shall take effect on the date it is signed by me (the Assignor) or on such later date prescribed by applicable statutory law. L. All disclosure statements are a material part of this Agreement and shall be read in pari materia herewith. In witness whereof I hereunto set m Linda S. Q I \ STATE OF ~ eJ.1Yl5yIVarll~ COUNTYO CITY of Allefhpu1 ~lIo--t-f-J On the :5 ~ day of Oc ~ ~ ,in the year 2aJG before me, the undersigned, personally appeared Linda S. Golofsky as Power of Attorney for Robert E. GOlofsky, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by hislher/their signature(s) on the instrument. the individual(s), or the person upon behalf of which the individual(s act ecuted t e instru nt. My Commission expires on 7 - / y- 6:J C7 g- PLEASE DO NOT SIGN THIS DOCUMENT UNTIL 09/30/2006 COMMONWEALTH OF PENNS'I VANIA Nolarial Seal George J. Korbakes, Nolary PIIUllv Murrysville Bore, Westmoreland Ccxr\ty My Commission Expires July 14. 2008 Memo'" Ponn<:vlvanj.. Association Of Notaries Accepted: Settlement Funding, L.L.C. \ fMJ . JJL,^ . Title:\ ,:9' Date: JDJ4/clo I I Authorization For Deductions Pursuant to the terms of the Agreement, Assignee may deduct from the Purchase Price the full amount due to any and all third party creditors, judgment holders, holders of child support obligations, the holder of any other outstanding lien or claim (collectively the "Judgments/Claims") including life insurance policy payment(s) or any attorney fees in connection with the consummation of this transaction. If Assignee is able to satisfy in full the Judgments/Claims for less than the full amount due, Assignee shall be entitled to keep the difference between the amount deducted and the amount actually paid. Authorization to Conduct Credit and Criminal Backaround Checks I, Linda S. Golofskyas Power of Attorney for Robert E. Golofsky residing at 110 Tyrolia Dr, Monroeville, PA 15146-3734, hereby authorize Settlement Funding or any of its agents or designees, to conduct any and all criminal background reports, searches or checks and any and all credit history reports, searches or checks which it in its sole discretion and judgment deems necessary or advisable. Authorization to Release Information I, Linda S. Golofsky as Power of Attorney for Robert E. Golofsky, hereby request and authorize Lumbermens Mutual Casualty Company, First Colony Life Insurance Company, or any of their successors, assigns, designees, agents or administrators, or my attorney to disclose, or any other parties that may possess any information deemed necessary by Settlement Funding, or any of its agents or designees to be disclosed, make available and furnish to Settlement Funding, or any of its agents or designees any and all information pertaining to my personal injury settlement as set forth in a certain Release dated February 6, 1987 or any other documents deemed necessary by Settlement Funding, or any of its agents or designees. I specifically direct that Lumbermens Mutual Casualty Company, First Colony Life Insurance Company, or any of their successors, assigns, designees, agents or administrators or any other person or entity that this authorization is given to, cooperate with Settlement Funding or any of their agents or designees regarding disclosure of information pertaining or related to my settlement or other required documentation. Please provide copies via fax or otherwise of any and all documents requested by Settlement Funding or their agents or designees regarding my settlement. Dated/tJ d-tJ b ~ 11 ) STATE OF e.. AS' ,I 4-. COUNTY OR CI~ OF Y rjZ; /u~J1 On the "3.)t day of Oc-f(}h~, in the year 2..tJo' before me, the undersigned, personally appeared Linda S. Golofsky as Power of Attorney for Robert E. Golofsky, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the Individual{s) acted, ~ My Commission expires on 7 -I V- ? CI 0 ~ C0MMONWEAL TH OF PE!',,'r.". ""'I ..\oJ I ...\'("'!-.~ t. A Notarial Seal ~ J. Korbakes. Notary Public Murrys\lille ~~. Westmoreland County My CommISSlOl1 Expires July 14, 2008 Member, Pennsy/vaniaAssOciafJon Of Notaries AFFIDAVIT I, Linda S. Golofsky as Power of Attorney for Robert E. Golofsky, of full age, being duly sworn according to law, upon my oath depose and say: 1. I, Linda S. Golofskyas Power of Attorney currently reside at 110 Tyrolia Dr, Monroeville, PA 15146-3734. 2. I, Linda S. Golofskyas Power of Attorney am the recipient of certain guaranteed payments under a structured settlement approved by court on February 6,1987. The entity presently obligated to make the payments due under the structured settlement is Lumbermens Mutual Casualty Company. In order to fund its payment obligations under the structured settlement Lumbermens Mutual Casualty Company purchased an annuity contract 0440986 from First Colony Life Insurance Company. 3. I, Linda S. Golofskyas Power of Attorney voluntarily entered into an Absolute Assignment and UCC Article 9 Security Agreement (the "Agreement") dated September 30,2006 with Settlement Funding, LLC d/b/a Peachtree Settlement Funding ("Peachtree"). Under that Agreement, I agreed to sell and assign to Peachtree the following payments due to Robert under the structured settlement: 48 monthly payments each in the amount of $884.00 commencing on January 30, 2017 through and including December 30, 2020. One lumpsum payment of $20,000.00 due on or about December 20,2020 (the "Assigned Payments"). 4. I, Linda S. Golofsky as Power of Attorney understand I will forego receipt of the Assigned Payments under the Agreement. I understand that Robert's beneficiaries/heirs and Robert will no longer receive any of the Assigned Payments or any portion of the Assigned Payments. I understand that all of the Assigned Payments will go to Peachtree or the assigns of Peachtree. 5. I, Linda S. Golofskyas Power of Attorney also understand that this Affidavit is submitted for use in the court approval process initiated by Peachtree and myself to seek court approval of the transfer of payments to Peachtree. 6. I, Linda S. Golofskyas Power of Attorney also received from Peachtree a Disclosure Statement detailing the terms of the Agreement, which I signed and returned to Peachtree. I carefully reviewed the Disclosure Statement and fully and completely understand all terms of the Disclosure Statement. 7. In the Disclosure Statement, Peachtree advised me to seek professional advice regarding the Agreement from an attorney, accountant or other professional of my choice. [ Exhibit D ] ~s: I chose not to retain or consult with such a professional. I understand that at all times, including at the time I entered the Agreement and received the Disclosure Statement, and for all times, I knowingly waive the right to seek or obtain for myself independent professional advice regarding the Agreement. _ Initials: I chose to retain or consult with an attorney, accountant or other licensed professional advisor of my choice. 8. Robert E. Golofsky is currently incarcerated and not employed. I, Linda S. Golofskyas Power of Attorney for Robert S. Golofsky am employed with Dialysis Clinic earning $14,400.00 annually. In addition I receive $1,000.00 per month from VA. Therefore, I have other sources of income other than the structured settlement payments that I wish to transfer and assign to Settlement Funding on Robert S. Golofsky's behalf. 9. I, Linda S. Golofskyas Power of Attorney for Robert S. Golofsky have thoroughly considered this transaction, his alternatives and the use to which I will put the proceeds of this sale. I have considered the impact of this transaction on Robert. Robert will be able to improve his present standard of living if I am permitted to transfer and assign his right to receive the Assigned Payments to Settlement Funding as described in this Affidavit. After considering these factors I believe that this transaction is in Robert's best interest. 10. I, Linda S. Golofskyas Power of Attorney for Robert S. Golofsky intend to use the proceeds I receive from Peachtree under the Agreement to pay Robert's bail bond and to hire an attorney. Robert is currently incarcerated and awaiting trial. Therefore, I would like to use $500.00 of the proceeds from this transaction to pay for Robert's bail bond so that he can be released and focus on getting back on his feet. Being able to afford better legal representation could have a dramatic impact on the outcome of Robert's situation. Therefore, I wish to use the remaining funds, approximately $6,300.00, to pay for the expenses associated with legal representation, so that Robert can improve his chances of being released and a productive future. I, Linda S. Golofsky as Power of Attorney am not in a position to hire a defense attorney, and as such Robert is at a disadvantage. The proceeds of this transaction will enable me to overcome this obstacle. Without the proceeds from this transaction, I lack the financial wherewithal from my current finances to accomplish the aforementioned. 11 . I will not be using any portion of the proceeds from the Agreement for day-to-day expenses. I have never assigned, sold or pledged any of the structured settlement payments that I am proposing to transfer and assign herein to any party or entity. In addition, Robert S. Golofsky has no dependents. I do not believe A. B. that approval of this transfer will negatively affect his standard of living or harm him in any way. Therefore, I have determined that the proceeds from the Agreement with Peachtree is in Robert's best interest and will improve his quality of life. Linda S. STATE OF ~'4-';}.~~/'1ftt! "- COUNTY OR ell',' OF /I 1 kl/f~ On the 3~ day of a--C-d~, in the year 2el/G"efore me, the undersigned, personally appeared Linda S. Golofsky as Power of Attorney for Robert E. Golofsky, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, ~~ Notary My Commission expires on J ~ ~ Y'~ l....tf'v~ . PLEASE DO NOT SIGN THIS DOCUMENT UNTIL 09/30/2006 COMMONWEALTH OF PENNSYLVANIA Notarial Seal M George J. Korbakes, Notary Public lIn'ySviUe ~~, WeslmoreJand County My CommlsslOl1 Expires July 14, 2008 Member, Pennsvlval1ia ~~~ncia!!on Of Notaries PENNSYLVANIA TRANSFER DISCLOSURE Payee: Linda S. Golofsky as Power of Attorney for Robert E. Golofsky; resident of: P A A. Amounts and due dates of the structured settlement payments to be transferred: 48 monthly payments each in the amount of $884.00 commencing on January 30, 2017 through and including December 30, 2020 and one lump sum payment of $20,000.00 due on or about December 20, 2020. B. Aggregate amount of such payments: $62,432.00 C. (1) Discounted present value of such payments: $29,145.67. (2)The discount rate used in determining such discounted present value: 6.00 percent as of September 20, 2006. D. Gross amount payable to the Payee in exchange for such payments: $9,088.78 E. Itemized listing of all brokers' commissions, service charges, application or processing fees, closing costs, filing or administrative charges, legal fees, notary fees and other commissions, fees, costs, expenses and charges payable by the Payee or deductible from the gross amount otherwise payable to the Payee: Legal Fees: $2,000.00; Processing Fee: $200.00. F. Net amount payable to Payee after deduction of all commissions, fees, costs, expenses and charges described above: $6,888.78 minus any advances made to Payee against the amount payable to Payee. G. The quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments: 23.64% H. 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: NONE I Exhibit E 1 I. Payee acknowledges receipt of, and acknowledges to have read and understood, the above disclosure statement and information required to be ~ by Payee's applicable state statute(s). Initials: By signing below you are confirming that you received a copy of this disclosure at least 10 days prior to receipt of this contract. /fJ"?7J (, Date NOTICE (fA} Payee: Linda S. Golofskyas Power of Attorney for Robert E. Golofsky. IMPORTANT NOTICE: You are strongly urged to consult with an attorney who can advise you of the potential tax consequences of this transaction. I aCknowledge receipt of the above notice. By signing below you are confirming that you received a copy of this disclosure at least 10 days prior to receipt of this contract. ;j#f~/~W ower of Attorney for Robert E. Golofsky (' IO~3-tk Date ExhibitF" ...., ACKNOWLEDGEMENT (eAl Payee: Linda S. Golofsky as Power of Attorney for Robert E. Golofsky (Please Initial one of the following statements which applies to you) I have received independent legal advice regarding the implications of the transfer, including considerations of the tax ramifications of the transfer. (Initials) I expressly waive independent legal advice regarding the implications of the transfer, including considerations of the tax ramifications of the tr sfer. I have waived independent legal advice but I have received independent professional advice regarding the implications of the transfer, including considerations of the tax ramifications of the transfer. /JtJ~4f rc:~ as Power olAttorney for Robert E. Golofsky /(J ~ :S --l~ Date I ----........- --~....... , Exhibit G ] 26 USCA ~ 5891 26 U.S.C.A. ~ 5891 Page 1 I.R.C. ~ 5891 UNITED STATES CODE ANNOTATED TITLE 26. INTERNAL REVENUE CODE SUBTITLE E--ALCOHOL, TOBACCO, AND CERTAIN OTHER EXCISE TAXES CHAPTER 55--STRUCTURED SETTLEMENT FACTORING TRANSACTIONS Copr. ~ West Group 2002. No claim to Orig. U.S. Govt. Works. Current through P.L. 107-136, approved 1-24-02 ~ 5891. St11lctured settlement factoring transactions (a) Imposition of tax.--There is hereby imposed on any person who acquires directly or indirectly structured settlement payment rights in a structured settlement factoring transaction a tax equal to 40 percent of the factoring discount as determined under subsection (c)(4) with respect to such factoring transaction. (b) Exception for certain approved transactions.-- (1) In generaI.--The tax under subsection (a) shall not apply in the case of a structured settlement factoring transaction in which the transfer of structured settlement payment rights is approved in advance in a qualified order. (2) Qualified order.--For purposes of this section, the term "qualified order" means a final order, judgment, or decree which-- (A) fmds that the transfer described in paragraph (1)-- (i) does not contravene any Federal or State statute or the order of any court or responsible administrative authority, and (ii) is in the best interest of the payee, taking into account the welfare and support of the payee's dependents, and (B) is issued-- (i) under the authority of an applicable State statute by an applicable State court, or (ii) by the responsible administrative authority (if any) which has exclusive jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement. (3) Applicable State statute.--For purposes of this section, the term "applicable State statute" means a statute providing for the entry of an order, judgment, or decree described in paragraph (2)(A) which is enacted by-- (A) the State in which the payee of the structured set:tlement is domiciled, or (B) if there is no statute described in subparagraph (A), the State in which either the party to the structured settlement (including an assignee under a qualified assignment under section 130) or the person issuing the funding asset for the structured settlement is domiciled or has its principal place of business. (4) Applicable State court.--For purposes of this section-- (A) In generaI.-- The term "applicable State court" means, with respect to any applicable State statute, a court of Copr. ~ West 2 ". TT ~ r.. t. Works Exhibit H L_ 26 USCA ~ 5891 26 U.S.C.A. ~ 5891 Page 2 the State which enacted such statute. (B) Special rule.--In the case of an applicable State statute described in paragraph (3)(B), such term also includes a court of the State in which the payee of the structured settlement is domiciled. (5) Qualified order dispositive.nA qualified order shall be treated as dispositive for purposes of the exception under this subsection. ( c) Definitions.-- F or purposes of this section-- (1) Structured settlement.-- The term "structured settlement" means an arrangement-- (A) which is established byn (i) suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or (ii) agreement for the periodic payment of compensation under any workers' compensation law excludable from the gross income of the recipient under section 104( a)( 1), and (B) under which the periodic payments are-- (i) of the character described in subparagraphs (A) and (B) of section 130( c )(2), and (ii) payable by a person who is a party to the suit or agreement or to the workers' compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130. (2) Structured settlement payment rights.-- The term "structured settlement payment rights" means rights to receive payments under a structured settlement. (3) Structured settlement factoring transaction.-- (A) In general.--The term "structured settlement factoring transaction" means a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration. (B) Exception.--Such term shall not include-- (i) the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution in the absence of any action to redirect the structured settlement payments to such institution (or agent or successor thereot) or otherwise to enforce such blanket security interest as against the structured settlement payment rights, or (ii) a subsequent transfer of structured settlement payment rights acquired in a structured settlement factoring transaction. (4) Factoring discount.--The term "factoring discount" means an amount equal to the excess of-- (A) the aggregate undiscounted amount of structured settlement payments being acquired in the structured settlement factoring transaction, over (B) the total amount actually paid by the acquirer to the person from whom such structured settlement payments are acquired. (5) Responsible administrative authority.-- The term "responsible administrative authority" means the Copr. @ West 2002 No Claim to Orig. U.S. Govt. Works 26 USCA ~ 5891 26 U.S.C.A. ~ 5891 Page 3 administrative authority which had jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement. (6) State.--The term "State" includes the Commonwealth of Puerto Rico and any possession of the United States. (d) Coordination with other provisions.-- (1) In general.--If theapplicable requirements of sections 72, I 04(a)(1), 104 ( a)(2), 130, and 461 (h) were satisfied at the time the structured settlement involving structured settlement payment rights was entered into, the subsequent occurrence of a structured settlement factoring transaction shall not affect the application of the provisions of such sections to the parties to the structured settlement (including an assignee under a qualified assignment under section 130) in any taxable year. (2) No withholding of tax.-- The provisions of section 3405 regarding withholding of tax shall not apply to the person making the payments in the event of a structured settlement factoring transaction. CREDIT(S) 2002 Pocket Part (Added Pub.L. 107-134, Title I, ~ 115(a), Jan. 23, 2002, 115 Stat. 2436.) <General Materials (GM) - References, Annotations, or Tables> HISTORICAL AND STATUTORY NOTES Revision Notes and Legislative Reports 2002 Acts. Statement of President, see 2001 U.S. Code Congo and Adm. News, p. 1812. Effective and Applicability Provisions 2002 Acts. Pub.L. 107-134, Title I, & 115(c), Jan. 23, 2002,115 Stat. 2438, provided that: "(1) In general.-- The amendments made by this section [enacting this chapter] (other than the provisions of section 5891(d) of the Internal Revenue Code of 1986, as added by this section [26 U.S.C.A. ~ 5891(d)]) shall apply to structured settlement factoring transactions (as defined in section 5891(c) of such Code (as so added) [26 U.S.C.A. ~ 589 I (c)]) entered into on or after the 30th day following the date of the enactment of this Act [Jan. 23, 2002]. "(2) Clarification of existing law.--Section 5891(d) of such Code (as so added) [26 U.S.c.A. ~ 5891(d)] shall apply to structured settlement factoring transactions (as defined in section 5891(c) of such Code (as so added) [26 U.S.C.A. ~ 5891(c)]) entered into before, on, or after such 30th day. "(3) Transition rule.--In the case of a structured settlement factoring transaction entered into during the period beginning on the 30th day following the date of the enactment of this Act [Jan. 23, 2002] and ending on July I, Copr. @ West 2002 No Claim to Orig. U.S. Govt. Works 26 USCA S 5891 26 U.S.C.A. S 5891 Page 4 2002, no tax shall be imposed under section 5891(a) of such Code [26 U.S.C.A. S 5891(a)] if-- "(A) The structured settlement payee is domiciled in a State (or possession of the United States) which has not enacted a statute providing that the structured settlement factoring transaction is ineffective unless the transaction has been approved by an order, judgment, or decree of a court (or where applicable, a responsible administrative authority) which finds that such transaction-- "(i) does not contravene any Federal or State statute or the order of any court (or responsible administrative authority); and "(ii) is in the best interest of the structured settlement payee or is appropriate in light of a hardship faced by the payee; and "(B) the person acquiring the structured settlement payment rights discloses to the structured settlement payee in advance of the structured settlement factoring transaction the amounts and due dates of the payments to be transferred, the aggregate amount to be transferred, the consideration to be received by the structured settlement payee for the transferred payments, the discounted present value of the transferred payments (including the present value as determined in the manner described in section 7520 of such Code [26 U.S.C.A. * 75201), and the expenses required under the terms of the structured settlement factoring transaction to be paid by the structured settlement payee or deducted from the proceeds of such transaction." 26 U.S.C.A. 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