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2. Nature of Periodic Payments The Periodic Payments constitute, I, damages (other than punitive damages), whether by suit or agreement, or i, compensation under a workers' compensation act, on account of personal injury or slokness In a case involving physical injury or physical sickness, within the meaning of Sections 130(c) and 104(a) of the Code. 3, Extent of Assignee's Liability. Assignee's liability to make the Periodic Payments shall be no greetsrthan the lability of Assignor immediately priorto the Effective pate. Assignee assumes no liability other than the liability to make the Periodic Payments. Assignee's Ilability to make the Periodic Payments shall be unaffected,by any bankruptcy or insolvency of Assignor. 4. Qualified Fundlhg Asset, Assignee will fund the Periodic Payments by purchasing from Annuity .Issuer a "qualified funding asset" as defined in Section 130(d) of the Code, in the form of an annuity contract (the "Annuity") issudd by Annuity Issuer and providing for payments corresponding to the Periodic Payments, Assignee shall be designated as the owner of the Annuity. All rights'of legal ownership and control of the Annuity shall (subject to paragraph 9 of this Agreement) be and remain vested exclusively in Assignee; provided, however, that the Annuity shall be used by Assignee to fund the Periodic Payments and shall at all times be designated by Assignee on its records as being taken Into account, under Section 130 of the Code, with respect to this Agreement. Notwithstanding anything to the contrary contained in this Agreement, neither any Claimant nor any Successor Payee shall have any rights with respect to the Annuity or the payments thereunder 'that1would cause anyaniount attributable to the Annuity to be currently includible in the recipient's income or would otherwise affect the determination of "an any recipient Is treated as having received any payment for income tax purposes, or would otherwise prevent this Agreement from satisfying all of the conditions for a "qualified assignment" within the meaning of Section 130(c) of the Code. 6. Delivery of Payments. Assignee may have Annuity Issuer send payments directly to a Claimant, or, if applicable, to a Successor Payee (as defined in earaoraoh 8 of this Agreement) -or deliver payments by electronlc funds transfer to an F2 In depository institution in the United States for credit (directly or indirectly) to an insured account In the name of such Claimant or Su'ocessor Payee. Such direction of payments under the Annuity shall not be deemed to afford the Claimant or any Successor Payee any rights of ownership or control of'the Annuity. Each Claimant and any Successor Payee shall at all times keep Annuity Issuer apprised of such Claimant's or Successor Payee's currentstreet address eirtd telel)W-Te comber and, If such Claimant or Successor Payee receives payments by electronic funds transfer, the. name, address, bank Identifier number (routing number) and telephone number of the applicable depository Institution and the account number of the account to which the payments are to be credited. 6. Discharge of Liability. The Assignee's liability to make each Periodic Payment to the Claimant or Successor Payee designated to receive such payment shall be discharged automatically at such time as a corresponding payment Is made to such Claimant or Successor Payee by the Annuity Issuer. 7, Acceleration, Transfer of Payment Rights, None of the Periodic Payments and no rights to or Interest in any of the Periodic Payments (all of the foregoing being hereinafter collectively referred to as "Payment Rights") can be 1. Accelerated, deferred, Increased or decreased by any recipient of any of the Periodic Payments; or 11, Sold, assigned, pledged, hypothecated or otherwise transferred or encumbered, either directly or Indirectly, unless such sale, assignment, pledge, hypothecation or other transfer or encumbrance (any such transaction being hereinafter referred to as a "Transfer") has been approved in advance in.a "Qualified Order" as defined In Section 5891(b)(2) of the Code (a "Qualified Order") and otherwise complies with appllcable state law, including without limitation any applicable state structured settlement protection statute. 10/11(PL ISS OAR] Page 2 of 6 W26140 -11A