Supremecourtofthestateofnewyorkcounty of Newyork

SUPREMECOURTOFTHESTATEOFNEWYORKCOUNTY OF NEWYORK

GENERAL ELECTRIC CAPITALCORPORATION,

Plaintiff,

- against-

FRYDMANANDCOMPANY,INC.A/K/A

FRYDMAN ANDCOMPANY,

IndexNo.:DateFiled:

PlaintiffdesignatesNEWYORKCountyastheplaceoftrial

Basisofvenue:

Business

JAN 182005

SUMMONS

Defendants.

TO THE ABOVE-NAMEDDEFENDANT:

YouareherebysummonedtoanswertheVerifiedComplaintinthisactionandtoserveacopyofyourAnsweronthePlaintiffs'Attorney,aslistedbelow,within20daysaftertheserviceofthisSummons,exclusiveofthedateofservice(orwithin30daysaftertheserviceiscompleteifthisSummonsisnotpersonallydeliveredtoyouwithintheStateofNewYork);andincaseofyourfailuretoappearoranswer,judgmentwillbetakenagainstyoubydefaultforthereliefdemandedin theComplaint.

Dated:Astoria,NewYork December 27,2004

By:MaximilianoRinaldiAttorneys forPlaintiff

General Electric CapitalCorporation30-97SteinwayStreet,Suite203 Astoria, New York11103

(718)777-8887

Defendant'sAddress:

FrydmanandCompany,Inc.a/k/a Frydman andCompany111FultonStreet,4lhFloorNewYork,NY10038

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SUPREME COURT OF THE STATE OF NEWYORKCOUNTY OF NEWYORK

GENERALELECTRICCAPITALCORPORATION,IndexNo.:

Plaintiff,

VERIFIED COMPLAINT

-against·

O5100709

FRYDMANANDCOMPANY,INC.A/K/A

FRYDMAN ANDCOMPANY,

Defendant.JAN18.2005

GENERALELECTRICCAPITALCORPORATION("GECCorPlaintiff'),byitsattorneys

NanisRinaldi,LLP.,foritsComplaint,uponknowledgewithrespecttoitselfanditsownacts,anduponinformationandbeliefastoallothermatters,allegesasfollows:

THEPARTIES

1.Atalltimeshereinaftermentioned,Plaintiffwas,andstillis,acorporationorganizedandexistingunderthelawsoftheStateofDelawarewithaplaceofbusinesslocatedat1010ThomasEdison Boulevard, S.W. Cedar Rapids, Iowa52404.

2.Atalltimeshereinaftermentioned,Defendant,FrydmanandCompany,Inc.a/k/aFrydmanandCompany,(°Frydman")was/isadomesticcorporationwithaplaceofbusinesslocatedin New York County, New York.

3.At all times hereinafter mentioned, Frydman was/is a foreign corporationdulyauthorizedtoconductandconductingbusinessintheStateof NewYork.

4.Atalltimeshereinaftermentioned,Frydmanwas/isaforeigncorporationdoingbusiness in the State of NewYork.

5.Atalltimeshereinafter mentioned,Frydmanwas/isadomesticpartnershipduly

existingunderandbyvirtueofthelawsoftheStateofNewYork.

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6.Atalltimeshereinaftermentioned,Frydmanwas/isaforeignpartnershipdulyauthorizedtoconductandconductingbusiness intheStateofNewYork.

7.At all times hereinafter mentioned, Frydman was/is a foreign partnershipdoingbusiness in the State of NewYork.

8.Atalltimeshereinaftermentioned,Frydmanwas/isadomesticsoleproprietorshipdulyexistingunderandbyvirtueofthelawsoftheStateofNewYork.

9.Atalltimeshereinaftermentioned, Frydmanwas/isaforeignsoleproprietorshipdulyauthorizedtoconductandconductingbusinessintheStateofNewYork.

10.Atal1timeshereinaftermentioned,Frydmanwas/isaforeignsoleproprietorshipdoing business in the State of NewYork.

11.Atalltimeshereinaftermentioned,Frydmanwas/isadomesticentitydulyexistingunderandbyvirtueofthelawsoftheStateofNewYork.

12.Atalltimeshereinaftermentioned,Frydmanwas/isaforeignentitydulyauthorizedtoconductandconductingbusinessintheStateofNewYork.

13.Atalltimeshereinaftermentioned,Frydmanwas/isaforeignentitydoingbusinessintheStateofNewYork.

14.At all times hereinafter mentioned, Frydman was/is a domestic limitedliabilitycompanyexistinginandbyvirtueoftheStateofNewYork.

15.Atalltimeshereinaftermentioned,Frydmanwas/isaforeignlimitedliability

companyauthorizedtoandconductingbusinessintheStateofNewYork.

16.Atalltimeshereinaftermentioned,Frydmanwas/isaforeignlimitedliabilitycompanydoingbusinessintheStateofNewYork.

THELEASES

17.OnoraboutSeptember27,200l,Frydman,aslessee,executedanddeliveredalease

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agreement to Toshiba America Information Systems, Inc. ,("Toshiba") as Lessor. ("Lease l").Lease1coversequipmentlistedintheLease(the"Equipment'').(AccountScheduleNo.:6982094-001).GECCistheultimateholder/assigneeofLease1.

18.PursuanttothetermsofLease1,FrydmanleasedtheEquipmentatamonthlyrateof

$599.00plusapplicabletaxesforatermof63months.

19.OnoraboutFebruary12,2002,Frydman,aslessee,executedanddeliveredaleaseagreementtoToshiba,asLessor.("Lease2'').Lease2coversequipmentlistedintheLease(the"Equipment'').(AccountScheduleNo.:7100777-001).Lease2wasmodifiedonoraboutFebruary22,2002toaddFrydman'saddress.GECCisalsotheultimateholder/assigneeofLease2.

20.PursuanttothetermsofLease2,FrydmanleasedtheEquipmentatamonthlyrateof

$790.00plusapplicabletaxesforatermof60months.Lease1andLease2shallhereafterbereferredtoasthe"Leases".

21.TheLeasesprovidethatFrydmanwillbeliableforalllegalfeesandothercostsandexpensesincurredinconnectionwith,orarisingorresultingfromanyeventofdefaultortheexerciseof GECC's remedy under theLease.

22.TheLeasesprovidethatuponanyeventofdefault,GECCmayrecoverfromFrydmanasliquidateddamagesforlossofbargainandnotasapenaltythepresentvalueof(i)anyandallamountswhichmaybedueandpayablebyFrydmantoGECCundertheLeases,plus;(ii)allrentpaymentsremainingthroughtheendoftheleaseterm,plus;(iii)thePurchaseOptionamount,ifstated,orifnofixedPurchaseOption amount isgiven,GECC'sreasonableestimateofthefairmarketvalueoftheEquipmentasoftheendoftheleaseterm,alldiscountedatthehigherof6%orthe lowest rate allowed bylaw.

23.TheLeasesprovidethatGECCmaychargeFrydmanalatechargeofequaltothehigherof10%ofanylatepaymentor$22.00,butnomorethanthehighestlegalrate.

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24.TheLeasesprovidethatinterestwillaccrueatthelowerof18%perannumorthehighest legal rate from the date due untilpaid.

DEFENDANT'SDEFAULTS

25.FrydmandefaultedonitsobligationspursuanttothetermsoftheLeases by, inter alia,failingtomakepaymentscommencingonJune24,2004throughdatepursuanttoLeaselandJune18, 2004 pursuant to Lease2.

26.ThetotalamountduetoGECCpursuanttotheLeasesis$51,233.16($21,787.69pursuanttoLease1and$29,445.47pursuanttoLease2)plusinterestatthedefaultrate,latecharges,attorneys' fees incurred and other collection expenses (the"Debt").

27.GECCdemandedpaymentoftheDebtfromFrydman.

28.FrydmanfailedtosatisfytheDebtdespitedemand.

29.UndertheLeases,FrydmanhasreturnedtheEquipmenttoGECC.

FIRST CAUSE OF ACTION AGAINST FRYDMAN

30.GECC repeats the allegations in paragraphs 1 through29.

31.FrydmanhasfailedtopayGECCtheamountsowingpursuanttotheLeasesdespitedemand.

32.PursuanttotheLeases,FrydmanmadeavailabletoGECCtheEquipmentandGECCrepossessedtheEquipment.PursuanttotheLeases,FrydmanisobligatedtopaytoGECCthedeficiency balance.

33.Accordingly,FrydmanisliabletoGECCforandGECChasbeendamagedintheamountof$51,233.16plusinterest atthedefaultrate,latecharges,co11ectionexpenses,includingattorney'sfeesandcosts,pursuanttotheLeaselessanyamountsrecoveredbyGECCinthesaleof

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theEquipment.

SECONDCAUSEOFACTIONAGAINSTFRYDMAN

34.GECC repeats the allegations in paragraphs 1 through33.

35.PursuanttothetermsoftheLeases,FrydmanhasagreedtopayallofGECC'sexpenses,includingattorneys'feesandcosts,incurredinenforcingandprotectingitsrightsundertheLease.

36.Therefore,FrydmanisliabletoGECCforcollection expenses,includingitsreasonableattorney'sfeesandcostsinanamountwhichcannotbedeterminednow,butisestimatedto be not less than$6,000.00.

WHEREFORE,GECCdemandsjudgmentagainsttheDefendantasfollows:

(a)onitsfirstcauseofactionagainstFrydman,intheamountof

$51,233.16plusoutstandinginterestatthedefaultrate,latechargesandcollectionexpenses,includingattorney's feesand costs,lessanyamountsrecoveredbyGECCinthesaleoftheEquipment.

(b)onitssecondcauseofactionagainstFrydmanforcollectionexpenses,includingattorneys'feesandcosts;

(c)suchotherandfurtherreliefastheCourtdeemsappropriate.

Dated:Astoria,NewYorkDecember27,2004

Attorneys forPlaintiff

GeneralElectricCapitalCorporation30-97SteinwayStreet,Suite203Astoria,NewYork11103

(718)777-8887

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l_Z/)7 /2004 14:211 FAI 718 777 84112NANISRINALDI.. GEEHAIL

' Ill008.

VERIFICATION

STATEOFIOWA)

)SS.:

COUNTY OF LINN)

DEBBWHITE.beingdulysworndeposesandsays:

IamaLitigationSpecialist employed byGeneralElectricCapitalCorporation ("GECC”),thePlaintiff'inthewithinaction; I havereadtheannexedVerifiedComplaint,knowthecontents thereofandthesamearetruetomyknowledge, exceptthosemattersthereinwhicharestatedtobe allegedoninformationandbelief,andastothosemattersIbelievethem.tobetrue.Thebasisforthe allegationsmadeuponinformationandbeliefismyreviewofdocumentsmaintainedbyGECCin theordinarycourseoftheirbusiness.

DEBB WHITE

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SUPREMECOURTOFTHESTATEOFNEWYORKCOUNTY OF NEWYORK

------············------···········------X

GENERAL ELECTRIC CAPITALCORPORATION,

IndexNo.:

Plaintiff,

-against-

FRYDMANANDCOMPANY,INC.A/KIA

FRYDMAN ANDCOMPANY,

Defendant.

·------·-········--x

SUMMONS AND VERIFIBDCOMPLAINT

NANIS & RINALDI, LLP

By: MaximilianoRinaldi

AttorneysforPlaintiff

GENERAL ELECTRIC CAPITALCORPORATION

30-97SteinwayStreet,Suite203Astoria, New York11103

(718)777-8887

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SUPREMECOURTOFTHESTATEOFNEWYORK-NEWYORKCOUNTY

LESLIES.LOWENSTEIN

PRESENT:SPECIALREFEREE·PART 82R

.,,Li

Index Number :100709/2005

GENERAL ELECTRIC CAPITALINDEXNO.

FRYDMAN ANDCOMPANY

Sequence Number:002

HEAR ANDREPORT

MOTIONDATE

MOTION SEQ,NO. MOTION CAL.NO.

Imotionto/for------

PAPERSNUMBERED

NoticeofMotion/OrdertoShowCause-Affidavits,Exhibits... AnsweringAffidavits-Exhibits------

ReplylngAffidavits------

Cross-Motion: Yes No

Upontheforegoingpapers,ItIsorderedthatthismotion

Dated: AUG 8, 2008LESLIE S. LOWENSTEIN

SPECIAL REFEREE

Check one: [ ] FINALDISPOSITION

NON-FINALDISPOSITION

Check ifappropriate:[l DO NOTPOSTREFERENCE

SUPREMECOURTOFTHESTATEOFNEWYORUPIREMECOURTOFTHESTATEOFNEW'IORK

COUNTY OFNEW YORK71 THOMASSTREET

------·------·------x NEWYORK,NY10013-3821

GeneralElectricCapitalCorporation,·

Plaintiff,

-against-

INDEX NO.100709/05

FrydmanandCompany,Inc.,a/k/aFrydman andCompany,

Defendant.

REFEREE'S REPORT

RECOMMENDATIONS

------x

TO THE SUPREME COURT NEW YORK COUNTY: A PART17

LESLIES.LOWENSTEIN

APPEARANCES:

For Plaintiff:

NanisRinaldi, LLPby,Maximiliano Rinaldi,Esq.30-97 SteinwayStreetAstoria, NY11103

ForDefendant:

WrobelSchatzLLPby,StevenI.Fox,Esq.

l 040 Avenue of theAmericasNew York, NY10018

SPECIALREFEREE

Bydecision andorderofJustice EmilyJaneGoodmandatedJanuary 13,2006andfiledwith the OfficeoftheSpecialRefereeonJanuary20,2006theissueofcalculatingthesumsdueplaintifffrom defendantwithrespecttothefirstandsecondcausesofactionassertedintheplaintiffscomplaint was; referred toaSpecialRefereetohearandreportwithrecommendations.

Thepartiestothisproceedingappeared beforetheundersignedforhearingonJune29,2006.The parties wererepresentedasdenominatedabovethroughoutallproceedings.ThehearingwascommencedandcompletedonJune29,2006.

Thecompletetranscriptionoftheproceedingaccompaniesthisreport.Thepartieswereaffordedthe

opportunitytosubmitbyAugust4.2006posthearingmatterintheformofamemorandumoflaw.Post hearingmailerwastimelyreceivedfrombothparties.Theforegoingmatterislikewisefiledtogether withthisreportasare:thedocuments(exhibits)that wereadmitted intoevidenceat thehearingheld beforetheundersigned.

ltake judicial notice(CPLR 4401)ofthefileoftheCountyClerkwhichcontainspapersrelativeto thisac11on.

FACTS

Thefactsintheinstantproceedingareasfollows.

This is an action commenced in 2005 wherein the plaintiff seeks a recovery from defendant for sums due and owing relative to two equipment leases entered into by the defendant with non party Toshiba America Information Systems, Inc (hereinafter Toshiba). The defendant leased two photocopiers under separate leasing agreements with Toshiba. Toshiba assigned the leasing agreements to the plaintiff herein. Defendant defaulted upon the leasing agreements. Plaintiff thereafter commenced the instant action to effect collection of the sums due and owing upon the leasing agreements.

The court as per its decision and order of January 13, 2006 granted summary judgment in favor of the plaintiff upon the first two causes of action of its complaint. Plaintiff’s first cause of action seeks a recovery from the defendant for sums due under the two leasing agreements. Plaintiff’s second cause of action seeks a recovery of counsel fees and costs in the instant action.

ThecourtasperiitsdecisionandorderofJanuary13,2006directedthatthemailerofcalculating theplaintiffsrecoveryofiitsdamagesandcounselfeesbereferredtoaSpecialRefereetohearand reportwithrecommendations.

Thematterwasheardandisreporteduponasindicatedbelow.

HEARING

AtthehearingtheplaintiffcalledMs.BarbaraBishopasawitness.

Thewitnessofferedinitialtestimonywhereinshesetforththatsheisanaccountmanagerforthe plaintiff.Twoleasingagreementswereintroducedintoevidence.Thewitnessdescribedthetwoleasingagreementsatissueinthisaction.ThewitnesstestifiedthatoneoftheleasingagreementsinvolvedinthisactionrelatestoaToshiba5570copier.Theleasingagreementforthisequipmentcalledfor63monthlypayments atarateof$599permonth.ThesecondleasingagreementrelatedtoaSavin413copier.Thisleasingagreementcalledfor60monthlypaymentsatarateof$790permonth.Thetermsoftheleasingagreementsweredescribedbythewitnessasbeingidenticalwiththeexceptionofthelengthoftheleaseandthemonthlypayments.

lnadditiontoofferingtestimonyastothegeneraltermsoftheleasesthewitnesstestifiedastothespecificleasetermsassamedealwithdefaultsthatmayoccurintheseleases.Thewitnessthendescribedvariousremedies thattheplaintiffwasentitledtoeffectwithrespecttotheleasingagreementsincludingtheentitlementbytheplaintifftorepossesstheleasedequipmentandeffectthesalethereof.

Thewitnessthentestifiedthatthedefendanthaddefaultedupontheleasingagreementrelative

totheToshiba5570copieronJune24,2004andthatthedefendanthaddefaultedupontheleaserelativetotheSavin413copieronJune18,2004.

Further testimonywasadducedofthewitnesswhich setforththattheToshiba5570copierwasrecoveredbytheplaintifffromthedefendantinSeptemberof2004.Thewitnesstestifiedthatwithrespecttothisequipmentunderthetermsoftheleasingagreementthereremaineddueandowingunderthetermsoftheleasingagreementthesumof$21,787.69.Thewitnessthensetforththatthedefendantwasgivena$200creditforthesaleofthecopierwhichreducedthedefendant'sarrearsto$21,587.69.Interestattheallowablecontractualdefaultrateof18%forthedefaultperiod runningfromJune24,

2004throughJune30,2006resultedinadditionalarrearsof$7,836.33.ThewitnessconcludedthatthetotalarrearsdueandowingbythedefendanttotheplaintiffundertheagreementrelativetotheToshiba5570copierthroughJune30,2006was$29,424.02.

ThewitnesscontinuedhertestimonywithrespecttotheSavin413copiersettingforththatastheresultofthedefendant'sdefaultundertheleasingagreementrelativetothisequipmentarrearstotalinginthesumof$29,445.47hadaccrued.Thedefendantwasgivenacreditof$800forthesaleoftheequipmentwhichreducedthedefendant'sarrearsto$28,645.47.InterestfortheperiodofthedefaultrangingfromJune18,2004throughJune30,2006attheallowablecontractualdefaultrateof18%resultedinadditionalarrearsof$t0,484.24. ThewitnessconcludedthatthetotalarrearsdueandowingbythedefendanttotheplaintiffthroughJune30,2006undertheagreementrelativetotheSavin413copier was$39,129.71.

ThesumandsubstanceofthetestimonyofthiswitnesswasthatthetotalarrearsdueandowingbythedefendanttotheplaintiffunderthetermsofthetwoequipmentleasesrelativetotheabovedescribedphotocopyingmachinesthroughJune30,2006was$68,553.73.

Thereafterthewitnesswascrossexaminedbythedefendant.

Testimonywasadducedfromthewitnesssettingforththatthelowresalepriceforthe leasedequipmentatissueinthisactionwasroutineandprimarilyduetorapidlychangingtechnologywhichmakesaphotocopierobsoleteoverashortperiodoftime.

Inthecontextofthecrossexamination,counselforthedefendantappliedfortheproductionofcertaindocumentarymatterandtoadjourntheinstantreference.Theapplicationsweredeniedupontherecord.

Abriefredirectexaminationtookplacefollowingthecompletionofcrossexaminationwhereinthewitnesssetforththatunderthetermsoftheleasingagreementstheplaintiffwasundernoobligationto

sellthesubjectequipmentandthatsamewasdiscretionary.

Uponcompletionoftheredirectexaminationthetestimonyofthewitnesswasconcluded.ThereafterMaximilianoRinaldi,Esqwascalledasawitnessfortheplaintiff.

Thewitnessofferednarrativedirecttestimonywithrespecttothesecondcauseofactionfortherecoveryofcounselfeesandcostsuponwhichthecourthadgrantedtheplaintiffsummaryjudgment.

Thewitnesssetforththenatureofhisfeearrangementwiththeplaintiffwhichincludedaflatrateof$2,500relativetocollectioneffortswhichbecomecontested.Thewitnesstestifiedthatonceatrialcommencestheplaintiffagreedtopayhisfirmanhourlyrate.Thewitnessstatedthathehasbeenpaid

$2,500bytheplaintifftodate.

Thewitnessfurtherstatedthathewasseekinganadditionalrecoveryofcounselfeesfor6.5hoursattherateofS162perhourforadditionalserviceswhichhadnotyetbeenbilledtotheplaintiff.

Thedefendantsetforthupontherecordthatthesumsoughtforrecoveryasandforcounselfeesandcostsinthismatterwasnotanunreasonablesumandwaivedcrossexamination1•

Uponcompletionofthetestimonyofthiswitnesstheinstantproceedingwasconcluded.

FINDINGS OF FACT/CONCLUSIONS OFLAW

The undersignedhavingconsideredtheproof,testimonyandevidenceadducedatthehearingaswellastheposthearingsubmissionsofthepartiesherewithmakesthefollowingfindingsbasedupontheprinciplesoflawsetforthbelow.

Withrespecttotheplaintiffsfirstcauseofactiontheundersignedhasreviewedtheproof,testimonyandevidenceadducedinthecontextofthetestimonyofferedbyplaintiff’switnessMs.BarbaraBishop.I find the testimony of this witness to be credible and same was furthermore based uponcredibleevidenceadmittedatthehearing.Thewitnessappropriatelyattestedtothedamagesincurredbythe

plaintiffunderthetermsofthetwoequipmentleasingagreementsatissueandsetforththedefendant'sliabilitythereunder.lnsumthewitnesssufficientlyestablishedtheaccuracyoftheplaintiff’scontentions andcomputationswithrespecttodefendant's defaultsunderthetwoequipment leasingagreementswhicharcthesubjectofthisactionandtheundersigned'sreference.

As such I find that there is due and owing by the defendant to the plaintiff with respect totheequipmentleasingagreementrelativetotheToshiba5570photocopierthesumof$29,424.02.IfurtherfindthatwithrespecttotheequipmentleasingagreementrelativetotheSavin413photocopierthereisdueandowingthesumof$39,129.71.ThesumtotaldueandowingbythedefendanttotheplaintiffunderthetermsofthetwoequipmentleasingagreementsthroughJune30,2006is$68,553.73

Withrespecttotherecoveryofattorneysfeesandcostsassoughtbytheplaintiffinitssecondcauseofaction,theundersignedhasconsideredthecircumstancesofthismattertodetem1inctheextentoftherecoveryofcounselfeesandcostsbyplaintiff.

Withregardtotherecoveryofsumsrelativetothelegalservicesprovidedonbehalfoftheplaintiff,ithasbeenheldasamatteroflawthatanawardofcounselfeesmustbesupportedbyproofofbillingsandservicesrendered,[CwiklinskivCwiklinski,115AD2d951(4thDept.l985)].TI1ecourtshavesetforththeguidelinesfordeterminingappropriatecounselfees.

Indeterminingtheproprietyandreasonablenessofanattorney'sclaimforservices,thecourtshould considerthetimespentandthedifficultiesinvolvedinthematterforwhichtheserviceswererendered, thenatureoftheservices,theamountinvolved,theprofessionalstandingofthecounsel,andtheresults obtained,[MatterofKarp, 145AD2d20R(I'1 Dept. 1989)].

lnthematterathandlfinduponconsiderationofthetestimony,proof,evidenceandthememorandasubmittedherewiththatdefendanthassetforthontherecordthattotheextentthatplaintiffmightbeentitledtotherecoveryofacounselfee,defendanthadnoobjectiontoplaintiff’srecoveryofa

counselfeesummingintheamountofabasefeeof$2.500plusanadditionalamountof6.5hoursforlegalservicesrenderedattherateof$162perhour.Thesumtotaldueandowingasandforcounselfeesandcostsisthereforedeterminedbytheundersignedtobe$3,553.00.

RECOMMENDATIONS

Theundersignedhavingcomputedabovethesumsdueandowingunderthefirstandsecondcausesofactionintheplaintiffscomplaintherewithmakethefollowingrecommendations.

Withrespecttotheplaintiff’sfirstcauseofactionIrecommendthatupontheissuanceofanorderofthecourtconfirmingthisreport,plaintiffshouldbegrantedarecoveryinthesumof $68,553.73uponitsfirstcauseofactionwithadditionalinteresttoaccruethereonattherateof18%untileithersaidsumissatisfiedoruntiljudgmentisenteredbytheplaintiff.

Withrespecttotheplaintiffssecondcauseofactiontheundersignedrecommendsthatuponconfirmationofthisreportthecourtdirectthedefendanttopaytheplaintiffcounselfeesinthesumof

$3,553.00foralllegalservicesrenderedbyplaintiff’s counselonbehalfofplaintiff.

Ifurtherrecommendthatdefendantbedirectedbythecourttosatisfythesumsdueandowinguponthetwoequipmentleasesandforcounselfeeswithinthirtydaysafterserviceuponthedefendantofacopyofthecourt'sordertogetherwithnoticeofentry.

Tntheeventthatthedefendantfailstotimelypaythesumsdueandowinguponthetwoequipmentleasesandcounselfeesasawardedherein,plaintiffshouldbepermittedbythecourttoenteramoneyjudgmentinitsfavoragainstthedefendantforlikesumstogetherwithcosts,interestanddisbursements

• ,u,14; .,,...·....

SUPREMECOURTOFTHESTATEOFNEW YORK –NEW YORK COUNTY

PRESENTEMILY JANE GOODMANPART 17

IndexNumber:100709/2005

GENERAL ELECTRICCAPITALINDEXNO.

FRYDMAN ANDCOMPANY

Sequence Number :003CONFIRM/EJECTREFEREEREPORT

MOTIONDATE

MOTION seq.NO. MOTION CAL.NO.

Thefollowing papers.numbered 1to werereadonthismotionto/for------

PAPERSNUMBERED

NoticeofMotion/OrdertoShowCause-Affidavits-Exhibits...

AnsweringAffidavits -Exhibits------

ReplyingAffidavits------'------

Cross-Motion:OYes  No

Upontheforegoingpapers.ItIsorderedthatthismotion to confirm Referee’s Report date 8/6/06 is resolved per so ordered stipulation of settlement, dated 4/13/07 (copy attached)

Dated:

4/20/02

EMILY JANEGOODMAN.

Check one: FINALDISPOSITIONO NON-FINALDISPOSITION

Check if appropriate:0 DO NOT POST

WROBEL50-iATZLLP

NANIS6.RINALDI

PAGE02/04

fl!00%

SUPREMECOURTOF11IESTATEOfNBWYORK

COUNTY OF NEWYORK

GENERAL ELECTRIC CAPITALCORPORATION.

indexNo.:l00709/0S

Plaintiff',

SOORDERED

-against-STIPULATION

FRYDMAN AND COMPANY, INC. A/K/A

FRYDMAN ANDCOMPANY,

Defendant.

UPONreadingandfilingofthereportofSpecial Referee Leslie S. Lowenstein,Esq

(the“Referee”),datedAugust8,2006,unenteredAugust21120061theaffirmation of Maximiliano

RinaldidatedAugust29,2006,thenoticeofmotiondatedAugust29,2006,theaffirmationinoppositionof.StevenI.Fox,datedSeptember1),2006,thereplyaffirmationof MaximilianoRinaldi,dated October 2, ·2006, and all of the exhibits annexed thereto, and upon the pleadingsandproceedingshadhereinandthemotionhavingbeensubmittedonOctober5,2006;Plaintiff'sGeneralElectricCapitalCorporation's("GECC"or"Plaintiff'')MotiontoConfirmthe:Referee’sReportisresolvedasfollows:

1.Plaintiff’s motionisgrantedinitsentiretyandtheClerkoftheCourtisdirectedtoenterjudgmentagainsttheDefendantFrydmanandCompany,Inc.a/klaFrydmanandCompany("Frydman” or “Defendant”)intheamount of $68,553.73plusinterestatthedefaultrateofinterestof18%fromJulyl,2006untilthe datejudgmentisentered,plusattorney'sfeesintheamountof

$3,553.00andcoststobedeterminedbytheClerkoftheCourtuponreviewofthebillofcostsfromPlaintiff(the"Judgment").GECCmayentertheJudgmentinanyCountyintheStateofNewYork.However,GECCandtheClerkoftheCourtarestayedfromenteringtheJudgmentcontingenton

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NANISRINALDI

PAGE03/04

iOD3

Defendant'ssatisfactorycomplianceandcompletionofallofthefollowingconditions:

DefendantshallpaytoGBCCtheamount$30,000.00(the''SettlementAmount")asfollows:

A.Paymentof $10,000.00tobereceivedGECCbyonorbefore April 16, 2007;

B.Paymentof $I0,000.00tobereceivedGECCbyonorbeforeApril30,2007;

C. Paymentof $10,000.00tobereceivedGECCbyonorbeforeMay25,2007;

ThepaymentsmadepursuanttothisStipulationshallbepayabletoGeneralElectricCapitalCorporationandshallbe deliveredtoGECC.1010ThomasEdisonBlvd.S.W.,CedarRapids,LA

52404,Attn.:Ms.CandaceBoyer.PAYMENTSMUSTBERECEIVEDBYGECCBYONOR

BEFORETHEDUE DATES.TIMEISOF THE ESSENCEWITRRESPECTTOTHE

PAYMENTS.If Defendant shall comply with all the terms of this Stipulation and make all of the payments when due and the payments clear, GECC shall deliver to Defendant’s counsel a stipulation of discontinuance and Defendant and Plaintiff shall be deemed to have also executed and exchanged mutual limited releases, limited to the actions and claims that were raised or could have been raised between the parties to this Stipulation pertaining to the Leases as defined in the Complaint. Defendant’s counsel shall file the discontinuance within five (5) business days and provide a copy of the filed discontinuance to Plaintiff’s counsel upon receipt of same.

2. Defendantshallbeindefaultpursuant to this Stipulation,oranyagreement.document orinstrumententeredintoinconnectionherewith,forfailuretomaketheabove paymentswhendue andfailuretocureuponfive(5)businessdayswrittennoticetoDefendant'scounselvia facsimileatthefacsimilenumbersetforthbelow.UponDefendant'sdefaultanditsfailuretotimelycurethe defaultpursuanttothenotice,theSettlementAmountshallbedeemedvacatedandofnoforce;and effect and the Clerk of the Cout1shall on enter the full amount of the Judgment, onnotice to Defendant'scounsel.viafacsimileno lessthan24hourspriortoentryofJudgment,lesscreditfor

04/20/200711:47212-42,1.-817

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anypaymentsmadeonaccountofthisStipulationplu.,theamountoflegalfeesincurred(notto exceed$1,000.00)asaresultoftheenforcementofthisStipulation.AnaffidavitfromGECCand/oranaffirmationofitscounselshallbesufficienttoestablishproofrequitedtoenterjudgment,includingproofoftheremainingamountdue,Defendant'sdefaultandfailuretotimelycurethedefault.Uponpresentmentoftheabove,theClerkshallentertheJudgmentforthwith.

J.ThisStipulationmaybeexecutedinoneor morecounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogethershallconstituteoneandthesameagreement.Afacsimilesignatureshallbedeemed anoriginalforthepurposesofthisStipulation.

4.CounselforthepartieshaveactualauthoritytobindtheirclientswithrespecttothetermsofthisStipulation.

INWITNESSWHEREOF,counselforthepartiesheretohaveexecutedthisStipulationas

ofthedateandyearsetforthoppositetheirnames.

Dated:Astoria,NewYork April 13, 2007

NANJSRINALDI,LLP

Attorneys forPlaintiff

By:_,__,_

MaximilianoRinaldi,Esq.

30-97Steinway Street, Suite203

Astoria.NewYork11103

(718)777-8887

(718)777-8452(facsimile)

WROBEL SCHATZLLP

Attorneysfi

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Steven Fox,

1040AvenueoftheAmericas,11111Fl.

NewYork,NowYork10018

(212)421-8100

(212) 421-8170(facsimile