Table of Contents

This Litigation Finance Agreement (Agreement) is dated as of [date], and is by and between [plaintiff’s name] (Plaintiff) and [Funder’s name] (Funder).

[Recitals]

Now, therefore, it is agreed as follows:

1.0 Definitions

2.0 Representations and Warranties
2.1 Representations and Warranties of the Plaintiff

2.1.1 Authority
2.1.2 Common Interest
2.1.3 Full Disclosure
2.1.4. Ownership of Information
2.1.5 Fully Informed
2.1.6 No Impairment
2.1.7 Solvency
2.1.8 Independent Counsel:
Alternate:
[2.1.8 Advice on this Agreement]
2.1.9 Completeness and Accuracy

 2.2 Representations and Warranties of the Funder(s)

2.2.1 Authorization
2.2.2 Funds
2.2.3 Fully Informed
2.2.4 No Conflicts of Interest
2.2.5 No Waiver of Privilege
2.2.6 Ownership of Information
2.2.7 Secondary Market Financing
2.2.8 Completeness and Accuracy

3.0 Additional Convenants
3.1 Covenants of the Plaintiff

3.1.1 Representations Remain True
3.1.2 Duty to Cooperate
3.1.3 Duty to Inform
3.1.4 No Change in Litigation Counsel Without Funder Notice
3.1.5 Funder Participation in Settlement Decisionmaking

3.2 Covenants of the Funder

3.2.1. Representations Remain True
3.2.2 Fiduciary Duty
Alternate:
[3.2.2 Fiduciary Duty]

4.0 Common Interest and Confidentiality

4.1 Common Interest
4.2 Non-Disclosure Generally
4.3 Potentially Enforceable Disclosure Requests

5.0 Funding Terms

5.1. Committed Capital
5.2 Purchase of Litigation Proceed Rights
5.3 Sale of Litigation Proceed Rights

5.3.1 The Initial Closing
5.3.2 The Discovery Closing

5.4 Accelerated Investment
5.5 Supplemental Investment
5.6 Re-pricing Litigation Proceed Rights

5.6.1 Invoking Right to Reprice
5.6.2 The Purpose of Re-pricing
5.6.3 Mechanism of Re-pricing

5.7 Minimum Plaintiff Proceeds
5.8 No Commitment for Additional Financing
5.9 New Funder Participation

6.0 Funder Right to Terminate Investment Without Cause
6.1 Termination at Milestones
6.2 Termination at Any Time
6.3 Termination at Any Time With Replacement Funding

7.0 Termination For Cause

8.0 Security Interest

9.0 Miscellaneous

9.1 Governing Law
9.2 Forum Selection
9.3 Entire Agreement
9.4 Amendments and Waivers
[9.4 Amendments and Waivers, multiple funders]
9.5 Severability
9.6 Notices
9.7 Counterparts
9.8 Titles and Subtitles

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