Legal Funding Stipulation Agreement

LEGAL FUNDING STIPULATION AGREEMENT

This Legal Funding Stipulation Agreement (Agreement) is entered into as of by and between Funder Name: (Funder), an entity whose organizational status is: Individual Corporation LLC Other, and Recipient Name: (Recipient), an entity whose organizational status is: Individual Corporation LLC Other.

The parties acknowledge that the Recipient has asserted claims in the matter styled in the , Case No. .

Recitals

WHEREAS, Recipient has requested, and Funder has agreed to provide, non-recourse or limited-recourse funding to finance litigation-related expenses and/or to provide a cash advance to Recipient prior to resolution of the matter described above;

WHEREAS, the parties desire to set forth the terms on which Funder will advance funds, the method and timing of repayment from any settlement, judgment, award, or other recovery, and the stipulation to any court or escrow agent necessary to effect payment to Funder from settlement proceeds;

WHEREAS, the parties intend that the terms of this Agreement be binding on the parties, their successors, assigns, and, if applicable, any insurer, escrow agent, or other person charged with disbursing settlement proceeds.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth below, the parties agree as follows:

1. Definitions

For purposes of this Agreement, the following terms shall have the meanings set forth below:

"Advance" means the principal amount advanced by Funder to Recipient pursuant to this Agreement, in the initial aggregate principal sum of (Funding Amount).

"Funding Fee" means the compensation payable to Funder as a percentage of the Advance or of recovered proceeds, as specified in Section 2 below.

"Proceeds" means any and all amounts recovered by Recipient by settlement, judgment, award, or otherwise in connection with the Case, whether obtained directly by Recipient, by its counsel, or by an insurer.

2. Funding Terms

2.1 Advance. Subject to the terms of this Agreement, Funder shall advance to Recipient the Advance in a single disbursement or multiple disbursements as agreed in writing by the parties. The initial Advance amount is .

2.2 Funding Fee and Repayment. Recipient agrees to pay Funder a Funding Fee equal to of the Advance or an agreed repayment cap of , whichever is applicable under the parties' written schedule. Repayment of the Advance and Funding Fee shall be made exclusively from Proceeds, prior to distribution of any remaining funds to Recipient or counsel, unless otherwise agreed in writing.

2.3 Maturity. If no Proceeds are obtained by (Maturity Date), the Advance shall be deemed due and payable to the extent provided in this Agreement; provided, however, that the parties acknowledge that this Agreement contemplates repayment primarily from Proceeds and not personal liability except as expressly set forth herein.

3. Stipulation to Payment from Proceeds and Security

3.1 Stipulation. Recipient and, where applicable, Recipient's counsel hereby agree to stipulate to any court, mediator, insurer, escrow agent, or settling party as may be necessary to effectuate payment of Funder's repayment obligation from Proceeds. Such stipulation shall direct that Funder be paid directly from settlement or judgment proceeds in the amount required to satisfy the Advance and Funding Fee prior to any distribution to Recipient or counsel.

3.2 Security Interest. To secure repayment of the Advance and Funding Fee, Recipient grants Funder a security interest in and to all Proceeds of the Case to the fullest extent permissible under applicable law. Recipient shall execute such financing statements, assignments, stipulations, and other documents reasonably requested by Funder to perfect and maintain such security interest.

4. Representations and Warranties

4.1 Recipient represents and warrants that: (a) Recipient is the holder of the claims in the Case and has full authority to grant the security interest and stipulations required by this Agreement; (b) there are no existing assignments, liens, encumbrances, or agreements that would conflict with the rights granted to Funder hereunder except as disclosed in writing to Funder; and (c) all information provided to Funder in connection with the Advance is true, complete, and accurate in all material respects.

4.2 Funder represents and warrants that it has the corporate or other organizational power and authority to enter into this Agreement and to perform its obligations hereunder.

5. Covenants

5.1 Recipient covenants that, until Funder is fully repaid in accordance with this Agreement, Recipient will not enter into any settlement, release, or disposition of the Case that would impair Funder’s ability to recover from Proceeds without first providing written notice to Funder and obtaining Funder’s written consent, which shall not be unreasonably withheld.

5.2 Recipient shall promptly execute any documents reasonably requested by Funder to effectuate the terms of this Agreement, including but not limited to stipulations to the court, escrow instructions, assignments of proceeds, and financing statements.

6. Default and Remedies

6.1 Events of Default include: (a) Recipient's material breach of any representation, warranty, covenant, or obligation under this Agreement; (b) failure to cooperate in stipulating payment to Funder from Proceeds; or (c) falsification of material facts provided to Funder.

6.2 Upon the occurrence of an Event of Default, and following at least ten (10) days' written notice with opportunity to cure where cure is possible, Funder may pursue any and all remedies available at law or in equity, including enforcement of the security interest, recovery of amounts due, and the costs of collection and enforcement, including reasonable attorneys' fees and expenses.

7. Notices

Notices to Funder

Notices to Recipient

All notices required or permitted under this Agreement shall be in writing and shall be delivered personally, by nationally recognized overnight courier, or by certified mail, return receipt requested, to the addresses set forth above or to such other address as a party may specify in writing pursuant to this Section.

8. Assignment; Delegation

Funder may assign or transfer its rights under this Agreement, in whole or in part, without the consent of Recipient, provided that any assignee agrees in writing to be bound by the terms of this Agreement. Recipient may not assign its rights or obligations under this Agreement without the prior written consent of Funder.

9. Amendments and Waiver; Counterparts

No amendment or modification of this Agreement shall be effective unless in writing and signed by both parties. No failure or delay by any party in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof.

This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be deemed to be original signatures.

10. Governing Law; Entire Agreement; Severability

This Agreement shall be governed by and construed in accordance with the laws of the state specified below without regard to its conflicts of law principles. The parties hereby submit to the exclusive jurisdiction of the state and federal courts located within that state for resolution of disputes arising from this Agreement.

Governing Law State:

This Agreement constitutes the entire understanding and agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral, relating to such subject matter. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining provisions shall continue in full force and effect.

11. Attorneys' Fees and Costs

In the event of any action or proceeding to enforce any provision of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys' fees and costs incurred in such action or proceeding, in addition to any other relief to which it may be entitled.

12. Additional Terms

Collateral / Additional Security (if any)

Other Agreed Provisions

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