Legal Pre-settlement Agreement

LEGAL PRE-SETTLEMENT AGREEMENT

This Pre-Settlement Agreement (the "Agreement") is entered into as of Effective Date: by and between Claimant Name: , Claimant Address: (hereinafter "Claimant"), and Funder Name: , Funder Address: (hereinafter "Funder").

Recitals

WHEREAS, Claimant has instituted or intends to institute a civil action captioned Case Name: in Court: , Case Number: (the "Action");

WHEREAS, Claimant has requested financial accommodation pending resolution of the Action and Funder is willing to provide an advance on the anticipated recovery of Claimant on the terms and subject to the conditions set forth herein; and

WHEREAS, Claimant and Funder desire to set forth their respective rights and obligations with respect to any advances, repayment, security, and allocation of proceeds arising from the Action prior to any settlement or judgment.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, 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 funded by Funder to Claimant pursuant to Section 2; "Proceeds" means all sums recovered by Claimant from the Action by settlement, judgment, award, or otherwise after deduction of reasonable attorney fees, costs, and disbursements; "Settlement" means any final resolution of the Action that results in payment to Claimant.

2. Advance and Disbursement

2.1 Advance Amount. Subject to the terms and conditions of this Agreement, Funder shall advance to Claimant an aggregate principal amount of (the "Advance").

2.2 Disbursement. The Advance shall be disbursed to Claimant by wire transfer or check within business days following Funder's receipt of a fully executed copy of this Agreement and all required documentation.

3. Fees and Repayment

3.1 Financing Charge. In consideration of the Advance, Claimant agrees to pay a financing charge equal to of the Advance, which shall be payable only from Proceeds as described in Section 3.3.

3.2 No Recourse to Personal Assets. Except as expressly set forth in this Agreement, Funder's sole remedy for repayment of the Advance and Financing Charge shall be payment from Proceeds. This Agreement does not create a personal liability against Claimant for repayment from non-Proceed assets, except in the event of fraud or intentional misrepresentation by Claimant.

3.3 Repayment. Upon entry of Settlement or Judgment, Claimant shall cause any attorney holding Proceeds in trust to disburse to Funder, from the Proceeds, an amount equal to the Advance plus the Financing Charge and any unpaid fees and costs under this Agreement. Funder shall accept such payment in full satisfaction of Claimant's obligations hereunder.

4. Assignment of Proceeds and Security Interest

4.1 Assignment. To secure the obligations under this Agreement, Claimant hereby assigns, transfers and conveys to Funder a security interest in and lien upon any and all right, title and interest Claimant may have in the Proceeds of the Action.

4.2 Perfection. Claimant shall execute and deliver to Funder such financing statements, assignments, and other instruments and shall take such actions as Funder may reasonably request to perfect and enforce Funder's security interest in the Proceeds.

5. Cooperation with Counsel

Claimant authorizes and directs Claimant's counsel to cooperate with Funder and to provide to Funder, upon request, copies of pleadings, discovery responses, settlement demand letters, and updates regarding the status of the Action. Claimant also agrees not to settle, release or otherwise dispose of the Action without giving Funder prior written notice of at least days and providing Funder a reasonable opportunity to receive payment from Proceeds at closing.

6. Representations and Warranties

Claimant represents and warrants that: (a) Claimant is the true and beneficial owner of the claims asserted in the Action; (b) the claims have not been assigned to any third party except as disclosed in writing to Funder; (c) there are no judgments, liens or encumbrances against the Proceeds other than those disclosed to Funder; and (d) all information provided to Funder in connection with the Advance is true, complete, and not misleading in any material respect.

7. Default

7.1 Events of Default. An event of default shall occur if Claimant materially breaches any representation, warranty or covenant in this Agreement, if Claimant institutes a voluntary bankruptcy, or if Claimant intentionally conceals or misrepresents facts material to the Action or the Proceeds.

7.2 Remedies. Upon the occurrence of an Event of Default, Funder shall have all rights and remedies available at law or in equity, including enforcement of the security interest in the Proceeds and specific performance. Funder may also submit written notice to Claimant's counsel to withhold disbursement of funds to Claimant pending resolution of the default.

8. Confidentiality

Except as required by law, court order, or as reasonably necessary to enforce rights under this Agreement, each party shall keep confidential the terms of this Agreement and any non-public information received from the other party. Notwithstanding the foregoing, Claimant may disclose the existence of the Advance to Claimant's counsel and to any party to the Action as necessary to obtain Proceeds.

9. Notices

All notices and communications required or permitted under this Agreement shall be in writing and shall be delivered to the addresses below by hand, overnight courier, or certified mail, return receipt requested:

10. Amendments and Waiver

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties. The waiver by any party of a breach of any provision shall not operate or be construed as a waiver of any other or subsequent breach.

11. Governing Law and Venue

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in the county of for resolution of disputes arising under this Agreement.

12. Entire Agreement; Severability

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, negotiations and discussions, whether oral or written. If any provision of this Agreement is determined to be invalid or unenforceable, such determination shall not affect the remaining provisions, which shall remain in full force and effect.

13. Counterparts; Execution

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures delivered by electronic transmission shall be effective as originals.

14. Miscellaneous Provisions

The headings in this Agreement are for convenience only and shall not affect interpretation. The parties acknowledge that each has had the opportunity to consult counsel and that this Agreement shall not be construed against any party by reason of authorship.

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