Complaint,Petition: In Re: J.G. Wentworth Originations, LLC

On January 26, 2024 a Complaint,Petition was filed involving a dispute between J.G. Wentworth Originations, Llc, and Annuitant, Redacted, for Other Civil - Under $250,000 in the District Court of Montgomery County.

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CAUSE NO.

IN RE § IN THE DISTRICT COURT OF
§
§ MONTGOMERY COUNTY, TEXAS

J.G. WENTWORTH ORIGINATIONS, LLC § JUDICIAL DISTRICT

APPLICATION FOR APPROVAL OF SALE
OF PARTIAL PAYMENT RIGHTS

TO THE HONORABLE JUDGE OF THE COURT:

Applicant, JG. WENTWORTH ORIGINATIONS, LLC, files this Application for

Approval of Sale of Partial Payment Rights pursuant to the Texas Structured Settlement
Protection Act, Chapter 141 of the Texas Civil Practice & Remedies Code (“the Act”), and
requests that the Court approve the transfer to Applicant, J.G. WENTWORTH
ORIGINATIONS, LLC, its successors or assigns, by Re of his/her

rights to certain structured settlement payments. In support of this Application, J.G.
WENTWORTH ORIGINATIONS, LLC respectfully shows the Court as follows:

Discovery Control Plan:

1 A discovery control plan is not required for the adjudication of this application.
2 This application is filed in accordance with CPRC § 141.006 (d), effective date
June 15, 2017. Per the law, Applicant has redacted all identifiable information about the Payee.

Interested Parties:

3 Applicant J.G. WENTWORTH ORIGINATIONS, LLC is a limited liability
company under the laws of the State of Delaware, and having its principal place of business in
the State of Pennsylvania. Applicant is the proposed Transferee and is requesting approval of a
transfer of structured settlement payment rights (hereinafter referred to as “Transferee” or
“JGW”).
4 Re (“Payee”) is an individual over the age of eighteen,
and meets the jurisdictional requirements under Tex. Civ. Prac. & Rem. Code § 141.002(2).
Payee currently is receiving tax-free payments under a structured settlement. Payee proposes to
transfer certain payment rights under the structured settlement to Transferee pursuant to the Act.

Application for Approval of Page 1
A Transfer of Structured Settlement Payment Rights
The other parties interested in this Applicationare listed as follows:
ty Issuer

ty Owner:

ependents residing with Payee: Spouse; child, age 19.
Dependents not residing with Payee: None.
ther Interested Parties/Named Beneficiaries:

Venue and Jurisdiction:

Venue and jurisdiction are proper in this Court pursuant to the ActThi
plication is properly brot in the c ty or dist tict court of the county in which the Payee
sides, or the court of original jurisdiction that authorized or approved the structured settlement,
without regard to the amount subject to the potential transfer, since the Act does not specify an
ount which would prohibit a County Court or a Probate Court om hearing an appli ion.
Tex. Civ. Prac. & Rem. Code § 141.002(2).

Background on Structured Settlements Generally:

Contrary to popular misc onception, structured s tilements typically result froma
voluntary settlement of an underlying tort claim. While many believe tha tructured settlements
are typically
court approved, court ordered or otherwise mandated by the court as a form of
spendthnift trust, this is simpy not true Structured _ tilements are a convenient
and cost
effective way to settle personal injury claims, particularly where there is disagreement over the
size of the settlement as the perceived value of future payments is generally
higher than theirtrue
value. Simply put, structured settlements are a cost effective way for insurancami _ ers to settle
ess onal injury claims on favorable terms and are often used for garden variety cases. In the vast
majority of cases they are simply the result of a negotiated settlement between plaintiff and
defendant with no substantive court involvement.
Anti-assignment provisions are often included in structured settlement agreements
under the mistaken belief that they are required to prevent the application of the “construc e
receipt” x doctrine. These anti assignment provisions were not included as a form of
spendthnift trust nor were they intended as a restriction on alienation of the right to receive
structure settlement payments. Rather they are a result of an overly utious rea_ ding of several
private letter rulings from
the early 1980's and a misunderstanding of the constructive receipt tax

Application for Approval of Page 2
A Transfer of Structured Settlement Payment Rights
doctrine. Any lingering doubts as to whether an anti assignment provision is required to prevent
constructive receit wer e dispelled in 200 ith the passage of 26 USC Section 5891, et seq.
which ma clea by wayofa_ anification of existing la that
a sale or transferof structure
payments rights would not alter the tax treatment applicable to the annuitant r ann uity issuers.
Notwithstanding this, an assignment clauses remain a vestige mmon practice
and are
hence present inmany sett lement agreements.
The one common failing of structured settlements is that they are relatively
inflexible. Once estab ished they nnot be al tered. As a consequence,
a secondary market for
structured men ts evolved
in the 1990's. Because of the significant demand from structured
settlement recipients to restructure/refinance how and when they receive these payment , a
econdary market fl ished.In he United States Congress, after heari fore the
Ways and M s committee, passed26 USC Section 5891, et seq. making it clear that structured.
settlements could be transferred and that dverse tax consequ nce would attach. As part of
providing this clarification, Congress required that —ransfer of structured settlement payment
tights be pursuant to a state transfer statute finding that the transfer was in the best interest of the
elling annuitant Emplyees and o cas of th dtitioney U.RM.,, appeared at the
congressional hearing ferenced above and worked tirelessly in the late 90’s and early 2000'sto
obtain the passage of 26 USC Section 5891 and to pass state transfer laws arou he county.
most every ate now ha ___ structured settlement statute which provides for unprec nite
vels
of consume afeguards prior to an individual being permitted to sell a structured
settlement. This is so notwithstanding the fact that the decision to accep the structured
settlement, as outlined above, is typically the result of a simple iation between plaintiff and
defendant and not as consequence of the independent judgment that the recipient is unable to
manage
their financial affairs. The structure settlemenransferstatutes and the provisions of 26
USC Section 5891, et seq. m clear that both federal and state legislators recognized the
need for liquidity in the secondary market for structured settlement payments. Provided
that the
transfer statute is hered to, the court should permit the transfer of the structured sett ent
payments provided that such transfer is in the best interest of the payee.

Application for Approval of Page
A Transfer of Structured Settlement Payment Rights
Statement of Facts:

All claims were settled on behalf of Payee arising out of a personal in ury claim.
The resolution of the matter involved a structured settlement (the “Settlement Agreement”).
As esult of the Settlement Agreement, Payee became entitled to receive
“Periodic Payments” underan annuity.
In order to fulfill the obligationto ayee under e Settlement Agreement,
Structured Settlement Obligor purchased an annuity contract from Annuity Issuer, naming Payee
as the annuitant. Under the annuity, Annuity Issuer is obligated to make, and currently makes
the Periodic Payments directly to Payee.
yee desire o sell a portion of the Periodic Payments in retum for a lump sum
payment for payment for those purposes stated or as may be offered in testimony at the hearing
on this matter. Subject to this Court's approval, Payee, according s agreed
to transfer to
Transferee, the following:

ee
ee
n this regard, Payee executed an Absolute Assignment Agreement (the
“Assignment Agreement”), under which Payee agreed to transfer to Transferee the Assig
Payments. This document constitutes a Transfer Agreement as definedby the Act. (Exhibit 1)
JGW timely provided Payee with the Disclosure Statement required by the Act
not less than three (3) days prior to he date on which Payee executed the Transfer Agreement.
Tex. Civ. Prac. & Rem. Code§ 14.1.003. (Exhibit 2)
Attached
hereto as Exhibit is the Payee’s request that all identifiable
information be redacted pursuant to CPRC § 141.006 (d).

Attached hereto as Exhibit 4 is the Payee Statement of Professional
Representation.

JGW will provide written notice of the transfer to all interested parties, includin
payend the anmuity issuer. Non-redacted exhibits, identical to those redacte exhibits filed
with
the court, have been served
on all pares.

Application for Approval of Page 4
A Transfer of Structured Settlement Payment Rights
The transfer is in the best interests of Payee, taking into account the welfar and.
support of Payee's dependents, any. Payee has been advised in writing to seek independent
professional dvice reg rding the financial, legal nd tax implications
f the t rensfer, as
provided in the Act.
More
than twenty days prior to the hearing or approval of the transfer, Transferee
1 send written notice of the heari = along with Transferee's
name, ddress, ad taxpayer
identification. ber to Annuity
Issu , Annuity Owner, Structured Settlement, Obligor, and
Payee, and all other interest _ parties (if any), and will file same with the Court as provided in
the Act. Spe cifically, Annuity Issuer, Anity Owner Structured Settlement Obligor, Payee, and
alli erestedparties will be provided with the following documents:
A copy of this Appl ation for Approval of a Transfer o tructred
Settlement Payment Rights;
copyof the tran sfer Agreement;
copy of te Disclosure Statement;
Iv. tof Payee's depend t(s), together with each dependent's age;
Notification that any interested party i entitled to support, oppose, or
herwise espond to this A ication, either in person or by counsel, by
submting writ en comments to the court o y participating in
hearing; and
Notification of the time and place of the hearing and notification the
manner in which, and the time whic, written responses to th
Applicationmust be filed in orderto be onsideredby the court.

The transfe atisfies all statut y requirements of the Structured Settlement
Protection Act, Chapter 141 of the Tex Civil Practice and Remedies Code, not
contravene any applicable statute or an order of any court or her govermental authority; the
transfer
also satisfies th Intemal Revenue Code Section 5891 and does not contravene any
Federal or State st ute or the orderof any court or responsib e administrative _ thorit

Application for Approval of Page
A Transfer of Structured Settlement Payment Rights
PRAYE

sed upon the foregoing, Applint, J.G. Wentworth Originations, LLC, respectfully
requests that the court grant this Application and appre the transfer of the Assigned Payment
to Applicant, J.G. Wentworth Originations, LLCits successors or assigns.
Respectfu ly submitt

Korduba& Rogers, LLP
19535 Champion Forest Dr.
Spring, Texas 77379
KordubaRogers@gmail.com
(Telep ne)
1180 (Facsimile)
KordubaRogers@gmail.com

Laryssa Korduba
Laryssa Korduba
State Bar No.:

TORNEY FOR PPLICANT
J.G. WENTWORTH ORIGINATIONS,

Application for Approval of Page
A Transfer of Structured Settlement Payment Rights
DocuSign Envelope ID: OEBCD47D-854F-4D01-ACA2-7E6EC3465097

Account ID: 2053430

PURCHASE CONTRACT
EXHIBIT 1

This is a Purchase Contract (“Contract”) for the sale of structured settlement payments between
EEE (You, Your), and J.G. Wentworth Originations, LLC (We, Us, Our)
3993 Howard Hughes Parkway, Suite 250, Las Vegas, NV 89169-6754.

BACKGROUND
A. In connection with the resolution of a personal injury claim, You or someone acting for You, signed a
Settlement Agreement that entitles You to receive certain future payments (“Settlement Payments”),
according to a set schedule.
Those Settlement Payments are being paid to You from an annuity policy (“Annuity Policy”) purchased by the Person
responsible for making the Settlement Payments to You (“Obligor”).
Rather than wait for the Settlement Payments to be made to You in the future, You want to sell all or some of those
Settlement Payments (“Purchased Payments”) to Us now for a lump sum.

THIS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH YOU SHOULD READ
CAREFULLY, AS IT WILL HAVE A SUBSTANTIAL IMPACT ON HOW DISPUTES BETWEEN YOU AND
US ARE RESOLVED.

DEFINED WORDS

Certain words used in this Contract have specific meanings, shown below.

Affiliate An entity controlled by, controlling. or under common control with, another entity.

Annuity Policy The policy purchased by the Obligor to ensure that the Settlement Payments are made to You as
required by the Settlement Agreement.

Closing Documents Any documents necessary to carry out the purchase of the Purchased Payments, other
than the “Contract or Contract Documents” as defined below.

Contract or Contract
Documents Collectively, only this Contract and the Disclosure Statement.

Contract Date The date Your signature at the end of this Contract is E-signed and date stamped.
However, if You happen to sign this Contract before the number of days stated at the end
of Your Disclosure Statement for waiting has passed, You will have no obligation under
Your Contract until that time has passed.

Court Order A legally binding ruling issued by a judge or properly empowered administrative officer,
approving the sale of the Purchased Payments to Us (“Court Approval”).
Disclosure Statement The document which identifies for You, the Purchased Payments, expenses, Purchase Price
and various other disclosures.

Encumbrance Any claim, right, lien, policy loan, or restriction. In addition, this includes any
limits on rights of ownership (such as the use, voting, transfer, receipt of income, etc.).
Funding Date The date We pay You the Net Purchase Price.
Issuer The insurance company that issued the Annuity Policy.
PURCHASE CONTRACT FORM 1
DocuSign Envelope ID: OEBCD47D-854F-4D01-ACA2-7E6EC3465097

Account ID: 2053430

Obligor The Person who is obligated to make payments to You under the Settlement Agreement.

Party One of You or Us. Parties means both You and Us.

Person Any natural person or legal entity.

Purchased Payments Only those certain payments that We are purchasing from You under this Contract.

Purchase Price:

Gross Purchase Price The amount shown as the “gross amount payable to the seller (You)” on the Disclosure
Statement. This is the sum We have agreed to pay You before any deductions as set
forth in the Contract Documents.

Net Purchase Price The amount shown as the “net amount payable to the seller (You)” on the Disclosure
Statement. This is the sum We have agreed to pay You after any deductions as set forth
in the Contract Documents.

Settlement Agreement The agreement that You and the Obligor signed to resolve Your personal injury claim.
Settlement Payments All of the payments that the Obligor has agreed to make to You in the Settlement
Agreement.

We, Our, or Us J.G. Wentworth Originations, LLC, along with any of its successors, assigns,
and designees. Some of the Contract Documents or Closing Documents may refer to Us
as the purchaser.
You or Your The Person named on this Contract’s first page. Some of the Contract Documents or
Closing Documents may refer to You as the seller.

You and We agree as follows:

1 SALE OF THE PURCHASED PAYMENTS

A. Upon the signing of this Contract and subject to certain conditions including Court Approval. You sell, transfer
and assign to Us the right to receive the Purchased Payments specifically identified in the Disclosure Statement.

We will pay You the Net Purchase Price as agreed to in the Contract Documents, subject to certain conditions,
including meeting Our underwriting requirements, Court Approval and satisfactory completion of the Closing
Documents. We will do this in exchange for You:

. selling the Purchased Payments to Us:

changing the beneficiary of the Annuity Policy to Your estate and not changing it again until We have
been paid all of the Purchased Payments;

having any current beneficiaries waive their rights to the Purchased Payments: and

fulfilling Your promises under this Contract.

If We are buying only a portion of Your payments, this will have no effect upon Your rights in the unsold portion.
You will continue to receive the unsold portion unless You have already sold or encumbered that portion.
However, sometimes the Issuer, the Obligor or the court may require Us to receive the entire amount of Your
payment. If so, We will then forward the portion of the payment still due to You and You hereby agree to this
payment servicing arrangement.
PURCHASE PRICE

A. The Gross and Net Purchase Prices are shown on the Disclosure Statement and are fair and acceptable to You and Us.
PURCHASE CONTRACT FORM 1
DocuSign Envelope ID: OEBCD47D-854F-4D01-ACA2-7E6EC3465097

Account ID: 2053430

We will pay You the Net Purchase Price in the manner You designate for Us.

Before we pay You, You agree that We will adjust for the following amounts, if applicable:

. Purchased Payments Owed to Us — The Issuer may have already paid You some of the Purchased
Payments before We have paid You for them. If that happens, We will deduct the amount of those
Purchased Payments.

Holdbacks — Due to possible delays in the Issuer beginning to make the Purchased Payments to Us
instead of You, We will hold back an amount equal to any Purchased Payments that the Issuer owes Us
post Court Approval, that are due within 90 days of the Funding Date. If We subsequently receive those
particular Purchased Payments directly, We will return the amount of any related holdback to You.

Payment of Debts Owed — If You owe any past due child support, bankruptcy payoffs or taxes, or have
any judgments or liens against You or Your assets, We may pay those amounts and deduct them from the
amount We pay You, and You hereby provide Us with specific authority to take such action. We will
provide You with notice of the amounts that We are going to pay, prior to actual payment.
If any Purchased Payments are mistakenly sent to You after We have paid You for them, You will immediately contact
Us. If We then determine that any deductions or holdbacks as set forth above are not enough to reimburse Us, We will
advise You of the amount You owe Us. You agree to immediately send that amount to Us by bank or certified check.
YOUR REPRESENTATIONS AND WARRANTIES

‘You represent and warrant to Us the following:
A. You understand that THIS IS A SALE AND NOT A LOAN.

B. The Annuity Policy is in full force, You are the sole and undisputed recipient of the right to the Purchased Payments,
have the right to sell them free and clear of any Encumbrances and have not previously sold any of the Purchased
Payments to any other Person.
You understand that Court Approval is required for this purchase; and You agree to fully cooperate with Us to
obtain that approval.
You gave Us all requested information and signed all documents necessary to complete the purchase.
Every statement made by You in the Contract Documents and Closing Documents is true and complete.

No law, divorce decree or other legal obstacle:

. requires You to keep the Purchased Payments for the benefit of a current or former spouse. dependent children.
or other person; or

legally prevents You from contracting with Us, selling the Purchased Payments or changing the Annuity
Policy’s beneficiary.

Either:

You have never filed for bankruptcy, will not do so before the Funding Date and there are no lawsuits or efforts
by any of Your creditors to put You into bankruptcy or take any of the Purchased Payments; or

If You filed for bankruptcy, the Purchased Payments were not subject to the claims of Your creditors. You will
give Us a copy of any of Your bankruptcy documents that We request including evidence of a final bankruptcy
payoff or case closing. if any.
We can rely on Your representations, warranties, and promises in this Contract. These representations, warranties, and
promises are for Our benefit and the benefit of any future owners of the Purchased Payments. You understand that Our
reliance on any intentional misrepresentation by You may result in Our enforcing Our rights against You in court.
PURCHASE CONTRACT FORM 1
DocuSign Envelope ID: OEBCD47D-854F-4D01-ACA2-7E6EC3465097

Account
ID: 2053430

You had enough time to consider the sale of the Purchased Payments. understand the terms of the Contract Documents
and Closing Documents (including the arbitration provision), are of legal contracting age and sound mind, not under the
influence of drugs or alcohol, and freely and voluntarily, enter into this Contract and agree to all of its terms.

You were advised by Us to obtain independent legal advice and professional tax advice about the sale of the Purchased
Payments and to have those advisors review the terms and legal, tax and other effects of this Contract with You prior to
Your execution of this Contract. You have also explored all appropriate financial options before
entering into this transaction.

We did not provide tax, financial, or legal advice to You about this Contract and have advised You that We may not refer
You to any specific attorney for such purpose.

If You are married, Your spouse understands all of the terms and conditions of this Contract including, but not limited to
the fact that, after the Funding Date, You (and Your spouse) will not receive the same amount of money on the same
payment schedule as You would have received under the Annuity Policy. Your spouse has been provided with
all information relating to the transaction and has had every opportunity to review the terms of the transaction and to
seek any advice relating thereto. Your Spouse also understands that he or she will be giving up any property or contract
rights that he or she may have in the Purchased Payments.
We may sell, transfer, or assign Our right to the Purchased Payments in a sale, securitization, or other financing
transaction (resale). Any resale would involve disclosing certain information about You (including Your personal
information) to the parties to a resale.
Any future owner of the right to the Purchased Payments will have all of the same rights We have, including the right to
the duties You owe Us under this Contract. This includes the right to make a claim against You for violating any of the
representations, warranties, or promises You made in this Contract.
YOUR PROMISES TO US

Before and after the Funding Date:

A. You will tell us right away if Your address or telephone number changes and do
everything necessary, including completing and signing all documents to:

sell the right to the Purchased Payments to Us:

change the beneficiary as required by this Contract; and

You will also tell Us if any of the following occurs:

¢ anything that could negatively affect the Annuity Policy, the Purchased Payments, or this Contract.

You will not:

. agree to sell the Purchased Payments to any Person other than Us:

. change the Annuity Policy’s beneficiary to any Person other than Your estate until We have collected all of the
Purchased Payments: or

. withdraw cash from. borrow against, or change the Annuity Policy.

D. You will give Us information necessary to update Your representations, warranties, and promises in this Contract. You
will also update any documents and information so they will be true and complete on the Funding Date.
PURCHASE CONTRACT FORM 1
DocuSign Envelope ID: OEBCD47D-854F-4D01-ACA2-7E6EC3465097

Account ID: 2053430

We are now, and will continue in the future, to rely on the representations and warranties You have given Us. We will
confirm the accuracy of Your representations and warranties. You must cooperate with this confirmation and provide
complete access to any information We believe necessary.

You agree that updating representations, warranties, promises, documents and other information will not cure a breach
of any representation or warranty made by You that was not true and complete.

You agree that Our obligation to You under this Contract is strictly limited to the requirement to pay You what We owe
You under the terms of this Contract, after receipt and approval of the Closing Documents, final underwriting approval
and Court Approval. Under no circumstances will We be liable for any consequential damages.

You hereby appoint Us and any of Our designees, with full power of substitution as your Attomey in Fact, to act in
Your name and place for the purpose of assigning and transferring ownership of any and all right, title and interest that
‘You have in the Purchased Payments and for Us to obtain all benefits contemplated by this transaction. You also give
Us full authority to act in any way proper and necessary to exercise this Attomey in Fact appointment including, but not
limited to: (1) negotiating, endorsing and executing checks, drafts and other instruments in Your name; and
(2) instituting, maintaining, compromising, settling and terminating any litigation or other proceedings related to the
Purchased Payments. This power of attomey is coupled with an interest and shall survive death or disability.
CANCELLATION BY US

We may cancel this Contract before the Funding Date if:
A. You breach any representation, warranty, or promise in any Contract Documents or Closing Documents.
B. The petition for the Court Order is contested, opposed, or not approved.
We are sued or threatened with a lawsuit or an arbitration about this Contract or the Annuity Policy.

There is any threatened, pending. or final action, or change in law or rule challenging the legality of, or negatively
affecting this transaction.

You file for. or are forced into bankruptcy.

You die.

Final approval has not been given by Our underwriting department.

The Purchase Contract is not signed by You and received back by Us by February 29, 2024.

A major rating agency downgrades the Issuer’s credit rating.

The Issuer is, or becomes insolvent, or under regulatory supervision.

With respect to A through J above, to the extent permitted by applicable law, the arbitration provision in Section 9 of
this Contract shall survive the termination, cancellation or rescission of this Contract.

CANCELLATION BY YOU

A. (1) YOU MAY CANCEL THIS CONTRACT WITHOUT PENALTY OR FURTHER OBLIGATION AT ANY
TIME WITHIN FIVE (5) BUSINESS DAYS AFTER THE DATE YOU RECEIVE PAYMENT
HEREUNDER FROM US. IN ORDER FOR THE CANCELLATION TO BE EFFECTIVE, YOU MUST
SEND A NOTICE POSTMARKED AT ANY TIME WITHIN FIVE BUSINESS DAYS AFTER YOU
RECEIVE PAYMENT HEREUNDER FROM US (This is the rescission period).

(2) YOUR NOTICE IS TO BE SENT EITHER BY CERTIFIED OR REGISTERED MAIL (RETURN
RECEIPT REQUESTED) OR FEDEX OR ANOTHER MAJOR OVERNIGHT DELIVERY SERVICE. THE
NOTICE MUST INCLUDE A BANK OR CERTIFIED CHECK MADE PAYABLE TO US, IN THE FULL
PURCHASE CONTRACT FORM 1
DocuSign Envelope ID: OEBCD47D-854F-4D01-ACA2-7E6EC3465097

Account ID: 2053430

AMOUNT RECEIVED BY YOU. YOUR NOTICE MUST BE SENT TO:

J.G. Wentworth Originations, LLC
Attention: Manager of Operations
3993 Howard Hughes Parkway, Suite 250
Las Vegas, NV 89169-6754

GEORGIA RESIDENTS: YOU MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO 5:00 P.M.
OF THE TWENTY-FIRST DAY FOLLOWING RECEIPT OF THE ENCLOSED “NOTICE OF
CANCELLATION RIGHTS” FORM, OR AT THE HEARING ON THE APPLICATION FOR
AUTHORIZATION OF A TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS, OR AT ANY
TIME WITHIN FIVE (5) BUSINESS DAYS AFTER YOU RECEIVE PAYMENT HEREUNDER FROM US,
WHICHEVER EVENT OCCURS LAST (This is the Georgia rescission period). INORDER FOR THE
CANCELLATION TO BE EFFECTIVE, YOU MUST SIGN THE ENCLOSED “NOTICE OF
CANCELLATION RIGHTS” FORM AND MAIL OR DELIVER IT TO US AS SPECIFIED IN THAT
NOTICE AND YOU MUST RETURN ALL AMOUNTS (PURCHASE PRICE OR OTHERWISE) RECEIVED
BY YOU ACCORDING TO THE REQUIREMENTS OF 6 (A) (2) ABOVE.

WEST VIRGINIA RESIDENTS: IN ORDER FOR YOUR CANCELLATION TO BE EFFECTIVE, YOUR
NOTICE CAN BE SUBMITTED VIA PHONE, MAIL, OR FACSIMILE. ANY AMOUNTS ADVANCED BY
US IN CONTEMPLATION OF THE TRANSFER SHALL BE IMMEDIATELY REFUNDED TO US. IF YOU
DISMISS YOUR ACTION AFTER APPOINTMENT OF A GUARDIAN AD LITEM, OR RESCIND YOUR
TRANSFER AGREEMENT (PURCHASE CONTRACT) WITHIN THE RESCISSION PERIOD IN
6(A) (1) ABOVE, YOU SHALL BE RESPONSIBLE FOR THE FILING FEE AND ANY GUARDIAN AD
LITEM FEES.

With respect to A through C above, to the extent permitted by applicable law, the arbitration provision in Section
9 of this Contract shall survive the termination, cancellation or rescission of this Contract.

7. NOTICES

All notices about this Contract must be in writing.

All notices must be sent either by: (1) certified or registered mail (return receipt requested); or (2) FedEx or another major
overnight delivery service with a delivery tracking system and are considered given when delivered as follows: If to You:
to the most recent address for You listed in Our files. If to Us: to the address listed in Section 6(A) (2) of this Contract.

8. EVENTS OF DEFAULT

You will be in default if You:

A. fail to comply with any terms or conditions of this Contract; or

B. breach any of Your representations, warranties and promises in this Contract.

If You are in default, even if You have not rejected the arbitration provision (see Section 9 of this Contract), We have the right to
enforce Our rights against You in court to make You perform Your promises or to get money from You. If We sue You in court
in connection with a Claim that is subject to arbitration under the arbitration provision in Section 9 of this Contract, and You have
not rejected the arbitration provision, You will have the option of remaining in court or seeking to compel arbitration of that
Claim under the terms of the arbitration provision.

PURCHASE CONTRACT FORM 1
DocuSign Envelope ID: OEBCD47D-854F-4D01-ACA2-7E6EC3465097

Account ID: 2053430

9. ARBITRATION PROVISION

To the extent permitted by applicable law, You and We agree to the following arbitration provision.

YOU HAVE THE RIGHT TO REJECT THIS ARBITRATION PROVISION AS SET FORTH BELOW. If You do not reject
this arbitration provision and a Claim is arbitrated, You will not have the right to: (1) have a court or a jury decide the Claim;
(2) engage in information gathering (discovery) to the same extent as in court; (3) participate in a class action in court or in
arbitration; or (4) join or consolidate a Claim with claims of any other person. The right to appeal is more limited in
arbitration than in court and other rights in court may be unavailable or limited in arbitration.

Claims Subject to Arbitration. A “Claim” subject to arbitration is any claim, dispute or controversy between You and Us (other than
an Excluded Claim or Proceeding as set forth below), whether preexisting, present or future, which arises out of, or relates to the
Contract, the negotiations related thereto, the breach thereof or any other transaction conducted with us in connection with the
Contract. “Claim” has the broadest possible meaning and includes initial claims, counterclaims, cross-claims, third-party claims and
federal, state, local and administrative claims. It includes disputes based upon contract, tort, consumer rights, fraud and other
intentional torts, constitution, statute, regulation, ordinance, common law and equity and includes claims for money damages and
injunctive or declaratory relief. Upon the demand of You or Us, Claim(s) will be resolved by individual (not class or class-wide)
binding arbitration in accordance with the terms specified in this arbitration provision.

Special Definitions. Solely for purposes of this arbitration provision, in addition to the meanings set forth in this Contract: (1) “We,”
“Us” and “Our” also (a) refer to Our employees, officers, directors, parents, controlling persons, subsidiaries and affiliates and (b)
apply to third parties if You assert a Claim against such third parties in connection with a Claim you assert against Us; and (2) “You”
or “Your” also refer to Your current or former spouse(s). children. heirs, estate, executors, successors, assigns, representatives and
beneficiaries.

Excluded Claim or Proceeding. Notwithstanding the foregoing, “Claim” does not include any dispute or controversy about the
validity, enforceability, coverage or scope of this arbitration provision or any part thereof (including, without limitation, the “Class
Action Waiver” set forth below and/or this sentence); all such disputes or controversies are for a court and not an arbitrator to decide.
However, any dispute or controversy that concerns the validity or enforceability of the Contract as a whole is for the arbitrator, not a
court, to decide. In addition, We will not require You to arbitrate any individual action brought by You in small claims court or Your
state’s equivalent court, unless such action is transferred, removed, or appealed to a different court.

Federal Arbitration Act. Notwithstanding any other provision in this Contract, You and We agree that this Contract evidences a
transaction involving interstate commerce and that the Federal Arbitration Act (Title 9 of the United States Code) (“FAA”) shall
govern its interpretation and enforcement and proceedings pursuant thereto. To the extent state law is applicable under the FAA, the
law of the state of Your domicile (where You regularly reside on the Contract Date) shall apply.

Class Action Waiver. Notwithstanding any other provision of this Contract, if a Claim is arbitrated, neither You nor We will
have the right: (a) to participate in a class action, private attorney general action or other representative action in court or in
arbitration, either as a class representative or class member; or (b) to join or consolidate Claims with claims of any other
Persons. No arbitrator shall have authority to conduct any arbitration in violation of this provision (provided, however, that
the Class Action Waiver does not apply to any lawsuit or administrative proceeding filed against us by a state or federal
government agency even when such agency is seeking relief on behalf of a class of borrowers including You. This means that
We will not have the right to compel arbitration of any claim brought by such an agency). The Class Action Waiver is
nonseverable from this arbitration provision. If the Class Action Waiver is limited, voided or found unenforceable, then this
arbitration provision (except for this sentence) shall be null and void with respect to such proceeding, subject to the right to
appeal the limitation or invalidation of the Class Action Waiver.

Arbitration Procedures. If You or We seek to arbitrate a Claim, the Party seeking arbitration must notify the other Party in writing.
This notice can be given after the beginning of a lawsuit and can be given in papers filed in the lawsuit, such as a motion to compel
arbitration. Otherwise, Your notice must be sent to Us at the address specified in Section 6 (A) (2) of this Contract and Our notice
must be sent to the most recent address for You in our files. Any arbitration hearing that You attend will take place in a venue of Your
domicile. If a Party files a lawsuit in court asserting Claim(s) that are subject to arbitration, and the other Party files a motion to
compel arbitration with the court, which is granted, it will be the responsibility of the Party prosecuting the Claim(s) to select an
arbitration administrator in accordance with the paragraph below and commence the arbitration proceeding in accordance with the
administrator’s rules and procedures.

The arbitration will be administered by the American Arbitration Association (“AAA”), 1633 Broadway, 10% Floor, New York, NY
10019, www.adr.org, 1-800-778-7879 or JAMS, 1920 Main Street, Suite 300, Irvine, CA 92614, www.jamsadr.com, 1-800-352-5267.
PURCHASE CONTRACT FORM 1
DocuSign Envelope ID: OEBCD47D-854F-4D01-ACA2-7E6EC3465097

Account ID: 2053430

The rules and forms of the AAA and JAMS may be obtained by writing to these organizations at the addresses listed above. If the
AAA and JAMS are unable or unwilling to serve as administrator, the Parties may agree upon another administrator or, if they are
unable to agree, a court shall determine the administrator. No company may serve as administrator, without the consent of all Parties.
if it adopts or has in place any formal or informal policy that is inconsistent with and purports to override the terms of this arbitration
provision. In the event of a conflict between the provisions of this arbitration provision, on the one hand, and other provisions of this
Contract or any applicable rules of the AAA or JAMS or other administrator used, on the other hand, the provisions of this arbitration
provision shall control.

A single arbitrator will be appointed by the administrator and must be a practicing attomey with ten or more years of experience or a
retired judge. The arbitrator will not be bound by judicial rules of procedure and evidence that would apply in a court, or by state or
local laws that relate to arbitration proceedings. The arbitrator will honor statutes of limitation and claims of privilege recognized
under applicable law. In determining liability or awarding damages or other relief, the arbitrator will follow this Contract and the
applicable substantive law, consistent with the FAA and this Contract, that would apply if the matter had been brought in court. At
Your written request, we will pay all filing, hearing and/or other fees charged by the administrator and arbitrator to You for Claim(s)
asserted by You in arbitration after You have paid an amount equivalent to the fee, if any, for filing such Claim(s) in state or federal
court (whichever is less) in t

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Complaint,Petition: In Re: J.G. Wentworth Originations, LLC

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