Case 1:10-cv-02031-DLI-JMA Document 253-1 Filed 12/03/12 Page 1 of 8 PageID #: 6523 EFiled:Nov30201211:13AMEST TransactionID48049471 CaseNo.

7180VCG INTHECOURTOFCHANCERYFORTHESTATEOFDELAWARE SOLUTIONFUNDING,LLC, : : Plaintiff, : : v. : C.A.No.7180VCG : BUSINESSTALKRADIO.NETACQUISITIONS : CORP.(f/k/aBUSINESSTALKRADIO.NET, : INC.),etal., : : Defendants. : : BUSINESSTALKRADIO.NETACQUISITIONS : CORP.(f/k/aBUSINESSTALKRADIO.NET, : INC.),etal., : : Defendant/ThirdPartyPlaintiff, : : v. : : B.MICHAELPISANIandMICHAELB.PISANI, : : ThirdPartyDefendants. : STIPULATIONANDORDERFORENTRYOFJUDGMENT ANDDISMISSALOFTHIRDPARTYCLAIMS Plaintiff Solution Funding LLC (Plaintiff), Defendants and Third Party

GRANTED

Plaintiffs BusinessTalkRadio.Net Acquisitions Corp. et al. (Defendants) and Third PartyDefendantsB.MichaelPisaniandMichaelB.Pisani(ThirdPartyDefendants), herebystipulateandagreeasfollows,subjecttoapprovalbytheCourt: WHEREAS, Plaintiff filed a Complaint in this action seeking judgment for amounts claimed to be due under a certain loan and for the appointment of a receiver pursuanttothetermsofthatcertainFinancingAgreementthatwasattachedtoPlaintiffs ComplaintasExhibit1

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WHEREAS, Defendants sought to assert, as affirmative defenses to Plaintiffs claimsandasthirdpartyclaims,certainclaimsagainstB.MichaelPisani(PisaniSr.) andMichaelB.Pisani,Esquire(PisaniJr.)(togethertheThirdPartyDefendants) WHEREAS, by order of this Court dated July 18, 2012 (July 18 th Order), MichaelCravenwasappointedReceiveroverDefendantswithauthorityto,amongother things, sell Defendants assets and settle Defendants liabilities on such terms the Receiver determines to be fair and appropriate and to perform all other acts which Receiver determines are necessary or proper to satisfy Defendants obligations to Plaintiff under the Financing Agreement and related loan agreements, as qualified by paragraph10oftheJuly18thOrder WHEREAS, the Receiver with the advice of counsel acknowledges that this Court, in granting Plaintiffs Motion for Partial Summary Judgment seeking appointmentoftheReceiver,determinedthatPlaintiffhadacquiredtheentirerighttitle and interest of the original lender parties under the Financing Agreement and related loandocumentspursuanttotheLoanPurchaseAgreementdatedMarch3,2010,byand betweenPlaintiffandtheinitiallenderparties,thatPlaintiffwasentitledtoenforcethe Financing Agreement and related loan documents in accordance with their terms, that DefendantsowedPlaintiffanunpaidLoanBalancethatwasmorethan deminimisand that the alleged actions of the ThirdParty Defendants upon which Defendants based their affirmative defenses and claims against the ThirdParty Defendants were not, whatevertheirmerits,imputabletoPlaintiff WHEREAS, the Receiver and/or Receivers counsel has met or communicated withcounselforPlaintiff,andwithMarandaFritz,Esq.,whoenteredanappearancefor

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Defendantsinthisaction,whohandledPlaintiffsMotionforPartialSummaryJudgment onbehalfofDefendants,andwhocausedtobefiledtheaffirmativedefensesandthird party claimsbasedupontheallegedconductoftheThirdPartyDefendantsinorderto ensurethathehasafullandcompleteunderstandingof,andtheabilitytoevaluate,the amountsclaimedbyPlaintiffagainstDefendantsinthisaction WHEREAS,theReceiverorReceiverscounselhasalsoreviewedandevaluated thePlaintiffsrecordssupportingtheamountsitclaimsinthisaction WHEREAS,applyingtherelevantprovisionsoftheFinancingAgreementandthe Forbearance Agreement dated December 8, 2007, a copy of which is attached to the ComplaintasExhibit5,theReceiverhasconfirmedthattheamountofPlaintiffsclaim undertheLoanwasinexcessof$3millionasofJuly31,2012andis,underthetermsof the Loan Documents, subject to the ongoing accrual of interest as specified in the FinancingAgreement,asmodifiedbytheForbearanceAgreement WHEREAS, Plaintiff has expressed a willingness, in order to avoid the unnecessaryexpenditureofDefendantsanditsownassetsinlitigation,andinorderto preserveDefendantsassetstothemaximumextentpossibleforDefendantscreditors, tocompromiseitsclaimsinreturnforaconsentjudgmentof$2.5million WHEREAS, the Receiver with the advice of counsel has determined that a judgmentreflectingsuchacompromisewouldeffectafairandappropriateresolutionof Defendants obligations to Plaintiff under the Loan Documents and would avoid the unnecessary expenditure of Defendants limited assets in attempting to defend against validclaims

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WHEREAS, the United States District Court for the Eastern District of New York,inthatcertainactionentitledSecuritiesandExchangeCommissionv.Spongetech DeliverySystems,Inc.andpendingatCivilActionNo.10cv2031DLIJMA (theSECAction),uponthejointmotionoftheUnitedStatesSecuritiesandExchange Commission and Defendant BusinessTalkradio.Net Acquisitions Corp., and with the consentoftheUnitedStatesTrusteefortheEstateofSpongetechDeliverySystems,Inc. and Plaintiff, has entered an order requiring that Defendant BroadcastTalkRadio.Net Acquisitions Co., which is a relief defendant in that action, deliver the entire net proceedsfromanysaleofitsassetstotheClerkofCourtoftheEDNYfordepositinto aninterestbearingaccountwiththeCourtRegistryInvestmentSystem(CRIS) WHEREAS,theCourtintheSECactionhasestablishedaclaimsadministration process allowing any person asserting a claim to such proceeds to bring a summary action for purposes of determining the priority of such partys claim relative to the claimsofotherclaimants WHEREAS, the claims administration process established by the Court in the SEC Action provides a forum in which the priority of claims upon the assets of DefendantscanbedecidedfairlyandwithminimalexpensetoDefendants WHEREAS, Plaintiff claims to have a first priority lien on all of Defendants assets, but has agreed to participate in and be bound by the claims administration establishedbytheCourtintheSECAction WHEREAS,theReceiverwiththeadviceofcounselhasdeterminedthat,inthese circumstances,itisinthebestinterestofDefendantsandispropertosatisfyDefendants obligationstoPlaintiffundertheFinancingAgreementandrelatedloanagreements,for

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the Defendants to consent to the entry of judgment in favor of Plaintiff and against Defendants for the Loan Balance as compromised by Plaintiff in the amount of $2.5 million WHEREAS,inacallwithcounselfortheReceiveronOctober10,2012,Charles Lanktree,thesolememberofSolutionFunding,confirmedthattherearenosidedeals wherebyPisaniSr.,anyentityownedorcontrolledbyPisaniSr.,oranyfamilymember ofPisaniSr.couldbecomeamemberofSolutionFundinginthefuture. WHEREAS,Mr.LanktreealsoconfirmedthatPisaniSr.hasnoprofitinterestin SolutionFunding,andthereisnoagreementtoprovidePisaniSr.,anyentitycontrolled by Pisani Sr., or any family member of Pisani Sr. with a profit interest in Solution Fundinginthefutureprovided,however,thatitisunderstoodbyallpartiesthatPisani, Jr.actsandhasactedasattorneyforSolutionFundingandhasreceivedandexpectsto receivepaymentfromSolutionFundingforservicesrenderedinthatcapacity WHEREAS, the Receiver with the advice of counsel has determined that the Third Party Claims are unlikely to survive a dispositive motion by the Third Party Defendants, and that it is not in the best interests of the company to use its limited resourcesprosecutingsuchclaimsand WHEREAS,theThirdPartyDefendantsareagreeabletodismissaloftheclaims against them with prejudice on the basis that they will bring no claims against Defendants based upon the assertion or prosecution of those claims, whether for indemnification,advancement,orotherclaims:

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NOWTHEREFORE,Plaintiff,Defendants(includingDefendantsasThirdParty Plaintiffs), B. Michael Pisani and Michael B. Pisani, stipulate and agree as follows subjecttoapprovalbytheCourt: 1. Judgment in the amount of TWO MILLION FIVE HUNDRED

THOUSANDDOLLARS($2,500,000)shallbeenteredinfavorofPlaintiffsandagainst Defendants 2. Plaintiffs shall participate in and be bound by the claims administration

established by the court in the SEC Action, and shall forbear enforcement of this judgmentoutsideofthatclaimsadministrationprocessforaperiodof120daysfromthe dateofentryofthisjudgment,plusanyadditionalcontiguousperiodnotexceeding90 daysduringwhichasaleofanyBTRradiostationornetworkispendingpursuanttoan executed asset purchase agreement under which the purchaser has placed in escrow a depositofnotlessthan5%ofthepurchasepriceuponcommerciallyreasonableterms, and on the condition that Michael Craven remain as Receiver throughout such period, and with the express specification that subject to this forbearance Solution Funding retains all rights afforded to it under the Financing Agreement and related loan documentsand 3. The ThirdParty claims by Defendants against B. Michael Pisani and

Michael B. Pisani, Esquire shall be and are hereby dismissed with prejudice, in consideration of which B. Michael Pisani and Michael B. Pisani, Esq. shall be barred fromadvancinganyclaimagainstDefendants,oranyofthem,basedupontheassertion or prosecution of the ThirdParty claims, including but not limited to any claims for advancementorindemnification.

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DRINKERBIDDLE&REATHLLP /s/ToddC.Schlitz ToddC.Schlitz(DEBarNo.3253) KarenV.Sullivan(DEBarNo.3872) 1100NorthMarketStreet,Suite1000 Wilmington,DE198011254 Telephone:(302)4674225 Facsimile:(302)4674201 Email:todd.schlitz@dbr.com Email:karen.sullivan@dbr.com AttorneysforSolutionFunding,LLC B.MICHAELPISANI /s/B.MichaelPisani ThirdPartyDefendant,ProSe

MORRISJAMESLLP /s/BrettD.Fallon BrettD.Fallon(DEBarNo.2480) 500DelawareAvenue,Suite1500 P.O.Box2306 Wilmington,DE198992306 Telephone:(302)8886888 Facsimile:(302)5711750 Email:bfallon@morrisjames.com Proposed Attorneys for Receiver, Michael Craven MICHAELB.PISANI /s/MichaelB.Pisani ThirdPartyDefendant,ProSe

APPROVEDANDSOORDEREDthis____dayof______________,2012. SamGlasscock,ViceChancellor

7
5970155/2

Case 1:10-cv-02031-DLI-JMA Document 253-1 Filed 12/03/12 Page 8 of 8 PageID #: 6530

Judge: SamGlasscock File&Serve TransactionID: 48019560 CurrentDate: Nov30,2012 CaseNumber: 7180VCG CaseName: SolutionFundingLLCvsBusinessTalkRadioNetAcquisitionsCorpetal

/s/JudgeGlasscock,Sam