LIFE SETTLEMENT CONTRACT. This Life Settlement Contract (the Contract ) is entered into between:

Transcription

1 LIFE SETTLEMENT CONTRACT This Life Settlement Contract (the Contract ) is entered into between: and on the following date: Name of Funder: Street Address of funder: City, State, ZIP: Telephone: Name: ( you, your ) Street: City, State, Zip: Telephone: ( Contract Date ) for FUNDER s purchase from you of the life insurance Policy identified in Exhibit B (the Policy ) insuring the life of the following individual: Name: ( Insured ) Street: City, State, Zip: Telephone: at the price and according to the terms that are described on Exhibit B attached to this Contract. Acting on behalf of the funding entity is: Life Settlement Financial, LLC ( LSF ) P. O. Box 3437 San Rafael, CA Telephone: (415) Oregon Life Settlement Provider license No: This Contract explains the terms under which you agree to sell your Policy and under which FUNDER agrees to purchase your Policy. Any terms that you see capitalized in this Contract have the meaning given to them in Exhibit A. Life Settlement Contract - 1

2 SECTION 1. RESCINDING THIS CONTRACT 1.1 Right to Rescind. You may rescind this Contract at any time during the Rescission Period, which begins on the Contract Date and ends on the Last Day to Rescind, which is the earlier of the following two dates: the 60 th day after the Contract Date stated on the first page of this Contract, or the 30th day after you receive the proceeds of the Purchase Price. 1.2 Procedure for Rescinding. If you decide to rescind this Contract before the Last Day to Rescind, you must do all of the following: (c) you must notify LSF in writing at the address that appears beside LSF s name on the first page of this Contract; you must return all of the money, if any, that you received from FUNDER that was paid to you for your Policy; and you must reimburse FUNDER for any premiums that FUNDER paid on the Policy. 1.3 Additional Rescission Notice. Not later than the Closing Date, LSF will provide you with an additional written statement of the date on which the Rescission Period expires. The notice will also include a reminder that any rescission that you attempt to elect is not complete until the full payment, including any premiums paid by FUNDER, is returned to FUNDER not later than the 30 th day after the Contract Date. 1.4 Automatic Rescission. If the Insured dies on or after the Contract Date but on or before the Last Day to Rescind, this Contract is automatically rescinded and FUNDER will return the amount by which the insurance proceeds, according to the terms of the Policy, exceed the Purchase Price and any premiums paid by FUNDER, so that all parties, including any Beneficiaries, are returned to their original positions under the Policy. However, in no case will FUNDER be required to pay more than the amount by which the insurance proceeds exceed the Purchase Price and any premiums on the Policy paid by FUNDER. 1.5 Postmark on First Class Mail. If notice of rescission is given by mail, it will be considered to be given when deposited in the United States mail, first class postage prepaid. 1.6 Additional Information about Rescission. You may contact LSF at the address and phone number listed on the first page of this Contract for more information concerning your right to rescind this contract and your Last Day to Rescind. Life Settlement Contract - 2

3 SECTION 2. RETAINED BENEFITS AND RIDERS 2.1 Right to Retain Benefits and Riders. Although you are assigning your entire Policy to FUNDER, you have the right to retain any additional benefits or optional riders that were part of the Policy, including but not limited to: (c) (d) (e) (f) guaranteed insurability options; accidental death benefits and dismemberment benefits; disability income or loss-of-income protection; family, spousal, or children s riders or benefits; double indemnity benefits; and dividend options. 2.2 Election to Retain Certain Benefits and Riders. You have elected to keep in force those additional benefits or optional riders attached to the Policy that you identified on your application, and that are now set forth on Exhibit B ( Retained Benefits and Riders. ) The Retained Benefits and Riders will remain in effect even though you are entering into this Contract. 2.3 Payment of Premiums. FUNDER will pay the premiums on any Retained Benefits and Riders you have elected for the remaining duration of the life of the Insured. 2.4 Right to Surrender Value. FUNDER does not have the right to any cash surrender value under the Policy unless all Retained Benefits and Riders are in a paid-up status and unless none of the Retained Benefits and Riders will be affected by any change in the cash surrender value. 2.5 Notification of Options. LSF will notify you of any option that may arise to select any supplemental benefits or riders. 2.6 Termination of Other Benefits and Riders. Your right to any benefit or optional rider that is attached to the Policy that is not specifically listed on Exhibit B under the category Retained Benefits and Riders will be terminated, and neither you nor your Beneficiaries will have any rights to any benefits under those benefits or riders. SECTION 3. ASSIGNMENT OF POLICY 3.1 Designation of Beneficiary. Except for any Retained Benefits and Riders described in Section 2, and contingent upon Closing, you designate FUNDER as the sole Beneficiary of the Policy as of the Assignment Effective Date. You understand and agree that upon the death of the Insured, FUNDER or Life Settlement Contract - 3

4 FUNDER s designee or assign(s) will be the only party entitled to collect any benefits or the proceeds under the Policy. You revoke any previous designation of a Beneficiary or a Contingent Beneficiary that you may have made prior to this Contract. You will designate FUNDER as the sole Beneficiary of the Policy by accurately completing and executing the appropriate forms provided for that purpose by the Insurer. 3.2 Absolute Assignment of Policy. Except for any Retained Benefits and Riders described in Section 2, and contingent upon Closing, you assign and transfer to FUNDER or its nominees as of the Assignment Effective Date, all right, title and interest in and to, arising out of, or in connection with, the Policy, free and clear of all Liens. Assignment is limited to the portion of the proceeds purchased as agreed to on the contract data page. Except for your right to rescind the contract discussed in Section 1, your assignment is not revocable which means you may not later change your mind. You will assign your interests in the Policy by accurately completing and executing the appropriate forms provided for that purpose by the Insurer. You are assigning and transferring to FUNDER all of the rights that an Owner of the Policy has under the terms of the Policy, including the following rights: (c) (d) Beneficiary Change. FUNDER will have the exclusive right to designate the Beneficiary and any Contingent Beneficiary of the Policy. Contributions to Policy. FUNDER will have the right to make any required or optional contributions or payments of premiums under the Policy Further Assignment. FUNDER will have the exclusive right to sell or assign the Policy to any other person. Surrender the Policy. FUNDER will have the exclusive right to continue making payments under the Policy, or to surrender and allow the Policy to lapse. (e) Right to Cash Surrender Value. Except as explained in Section 2.4, FUNDER will have the right to any cash surrender value of the Policy. (f) (g) (h) Borrow from the Policy. FUNDER will have the exclusive right to exercise any borrowing rights available under the terms of the Policy. Notification. FUNDER will have the exclusive right to be notified by the Insurer about any and all matters relative to the Policy. All Other Policy Rights. FUNDER will have all rights under the terms of the Policy that are afforded to the Owner of the Policy, including any rights to apply for and maintain a waiver of premium, and to convert the benefits payable under the Policy. Life Settlement Contract - 4

5 (i) Investment agent does not have the right to contact the owner or the insured or have knowledge of the identity of the owner or insured. 3.3 Relinquishment of Rights. You relinquish all rights that you have to, that arise out of, or that are associated with the Policy. 3.4 Documentation and Authorization. You agree to deliver to all of the following agreements, documents, and authorizations to LSF. (c) SECTION 4. Contract. You agree to deliver to LSF this Contract with your original signature. Related Documents. You agree to deliver the original versions of the Related Documents as set forth in Exhibit C. (Some of those documents will be provided to you at a later date by the Escrow Agent, as provided in Section 4.2.) Other Authorizations. You agree to deliver any other fully executed forms or written authorizations necessary or desirable to effect a change in both the Beneficiary and the Owner of the Policy, as contemplated by this Contract, and such other information and documentation as LSF may reasonably expect. PAYMENT OF PURCHASE PRICE AND TRANSFER OF POLICY THROUGH ESCROW 4.1 Opening of Escrow Account. After you have signed and returned this Contract to LSF, LSF will place the original version of this Contract and other documents with the Escrow Agent identified in Exhibit B. 4.2 Escrow Agent. The Escrow Agent will obtain from the Insurer copies of the change of Beneficiary and/or change of ownership and forms that are necessary to transfer the Policy from you to FUNDER according to the requirements of the Insurer (the Conveyance Forms. ) Information requested from the insurer will be provided within 30 calendar days. The Escrow Agent will send you the Conveyance Forms and other required forms to complete and sign. You must accurately complete and sign those forms and return them to the Escrow Agent within five (5) days of receiving them, or FUNDER will have the option to terminate this agreement under Section 4.8. The Escrow Agent will provide copies of all documents received to LSF for a final review and approval by LSF. 4.3 Verification of Coverage. The life settlement provider shall submit in writing a request for verification of coverage from the insurer on the status of the life insurance policy or certificate of a policyholder and the request must include the provider is licensed as a life settlement provider in this state and must disclose its license number. Life Settlement Contract - 5

6 4.4 Deposit of Purchase Price in Escrow. Immediately upon LSF s receipt of all of the documents described in Section 3.4 in a timely manner and in a form and in substance satisfactory to LSF, the following actions will occur: LSF acting on behalf of the FUNDER will pay by wire transfer or by cashier s check the entire Purchase Price to the escrow or trust account managed by the Escrow Agent under the terms of the Escrow Agent. the Escrow Agent will forward the Conveyance Forms to the Insurer. 4.5 Incomplete or Unacceptable Documentation. In the event you do not provide all of the documents described in Section 3.4 within 30 days of the Contract Date, or if upon examination of the documents, LSF determines the documents are unacceptable, LSF may take one of the following actions at the discretion of LSF. Terminate Contract. LSF may terminate Contract as provided in Section 4.8. Opportunity to Correct Documentation. LSF may notify you of the identity of the missing document(s), or the reason(s) for the deficiency(ies) in the documents, and allow you an opportunity to provide the missing documentation or to remedy the deficiency(ies) in the documentation. After you receive that notification, you will have 20 days to provide the missing documentation or to remedy the deficiency(ies) or this Contract may be terminated by LSF as provided in Section Transfer of Funds to You. Immediately upon receipt of the acknowledgment from the Insurer of both the successful transfer of the Policy to FUNDER and the successful change in Beneficiary to FUNDER, the Escrow Agent will conduct the Closing of the transaction by undertaking the following actions: The Escrow Agent will transfer, as required under the Escrow Agreement, the entire amount of the Purchase Price due to you in a single lump sum in the form of a wire transfer to your designated account, or in the form of a cashier s check made payable to you. The Escrow Agent will provide to LSF the original versions of the Policy, this Contract, and the Related Documents. 4.7 Return of Escrow to FUNDER. In the event that the Insurer refuses, with or without sufficient reason, to change the ownership or Beneficiary designation as contemplated by this Contract, the Contract may be terminated by LSF according to Section 4.8 and the escrow will be returned to FUNDER. 4.8 Termination of Contract. Life Settlement Contract - 6

7 This Contract may be terminated by funder and without further obligation to FUNDER, LSF or you, in the case of any of the following events: (1) the Insurer refuses, with or without sufficient reason, to change the ownership or Beneficiary designation as contemplated by this Contract; (2) FUNDER reasonably believes that any representation contained in this Contract or any document described in Section 3.4 is false, incomplete, inaccurate, misleading, fraudulent, or made under duress or improper influence; (3) FUNDER is unable to obtain financing due to incomplete or inaccurate information supplied by you or Insured; or (4) FUNDER or their agent, LSF, fails to receive any document described in Section 3.4 in form and substance satisfactory to LSF. (5) you fail to return the Conveyance and other documents provided to you by the Escrow Agent as described in Section 4.2 within five (5) days. (c) This Contract is void and will terminate automatically if LSF acting on behalf of FUNDER does not make funds available to you to purchase the Policy by the Assurance Date presented in Exhibit A. Upon termination of the Contract under this Section 4.8, LSF will notify you of the termination and FUNDER, LSF and you will no further obligations under this Contract. The Escrow Agent will do the following: (1) The Escrow Agent will return to you all documents described in Section 3.4, including the original of this Contract and the Conveyance Documents; and (2) The Escrow Agent will return any funds deposited into escrow to FUNDER. SECTION 5. USE OF PROCEEDS AND BROKER 5.1 No Limits on Use of Proceeds. This Contract places no limitation or restriction on how you use the money that FUNDER pays you for your Policy. 5.2 No Obligation for Additional Purchases. You are under no obligation to purchase any additional products or services from LSF or from the Broker who helped arrange this transaction. Life Settlement Contract - 7

8 5.3 Lump Sum Payment and Other Annuity Options. FUNDER will pay you the entire value of the Purchase Price in a single lump sum as provided in Section 4.6. The Broker or other licensed insurance agents in the State of Oregon may offer you the opportunity to purchase an annuity or other financial or insurance product. If you choose to purchase such a product, or any other product with the proceeds of the Purchase Price you receive, LSF will not be a party to that separate transaction and LSF makes no representation or warranty with respect to the appropriateness or viability of that product. You should check with an independent advisor such as an attorney and/or accountant before undertaking such a separate transaction. 5.4 Broker Commissions. LSF acting on behalf of FUNDER may pay a commission to the Broker for helping to arrange this Contract. The Broker may not charge you, and you are under no obligation to pay any additional fees or charges to the Broker. 5.5 Broker Obligation. The broker exclusively represents the owner and acts in the best interest of the owner. SECTION 6. COVENANTS AND REPRESENTATIONS 6.1 Your Representations. You represent to LSF that the following are all true: (c) (d) (e) (f) (g) you received a copy of the Disclosure Statement for Life Settlement Contracts with this Contract and have read and understood its contents; you are over the age of twenty one, have full legal capacity to enter into this Contract, are mentally competent to enter into the Contract and are not under duress, undue influence or the influence of any mind-altering substance; you are the sole and undisputed Owner of the Policy; other than you and any named Beneficiaries of the Policy on record with the Insurer, no other person or entity has an right, title and/or interest in the Policy; the face amount of, and net death benefit payable under the Policy as well as other information relating to the Policy set forth in Exhibit B is correctly set forth in Exhibit B; the benefits under the Policy, including any portion of the death benefits, are incontestable, as set forth in the incontestable section of the Policy and there are no facts or circumstances in existence as of the Contract Date which could serve as a defense to payment by the Insurer upon the death of the Insured; there are no Liens on the Policy; Life Settlement Contract - 8

9 (h) (i) (j) (k) (l) the Policy is not subject to any assignment for the benefit of creditors of any person or entity; nothing prohibits or restricts you from executing this Contract and/or from transferring the ownership of the Policy and changing the Beneficiary designation as contemplated by this Contract and you have the full right and authority to transfer the Policy and change the Beneficiary; there are no restrictions on the transfer of the Policy; there are no unpaid premiums on the Policy; there are currently no bankruptcy proceedings pending or threatened against you; (m) the Policy is in full force and effect and has not lapsed, and you had an insurable interest in the life of the Insured at the time the Policy was first issued; and (n) all of the information contained in the application or any of the documents that you delivered to LSF are true, complete and correct; no information or representation that you made in any document or otherwise contained any untrue statement of material fact, or omitted to state a material fact necessary to make such information and/or representation not misleading in light of the circumstances under which the statements were made. Any person who knowingly presents false information in this application is guilty of a crime and may be subject to fines and confinement in prison. 6.2 Your Agreed Actions. You also agree to take the following actions: (c) You will take all actions that may be necessary or desirable in LSF s discretion, including executing all documents as may be required by FUNDER, LSF or the Insurer, to complete the transfer of ownership and change the designation of Beneficiary of the Policy as contemplated by this Contract; You will inform LSF within 30 days of any changes in personal information, including address and telephone number; and You will continue to pay all premiums on the Policy until the Assignment Effective Date. 6.3 LSF s Agreed Actions. LSF agrees to the following actions: Life Settlement Contract - 9

10 LSF will maintain medical information concerning the Insured in confidence, any disclosure contemplated by this Contract and the Related Documents and reasonable requirements of LSF s business; Except for any contacts instigated by you or the Insured, after entering into this Contract, except to carry out any of the terms, notices, or purposes of this Contract, LSF will not make contact with you or the Insured: (1) more frequently than once every three months if the Insured has a life expectancy of more than one year; or (2) more frequently than once each month if the Insured has a life expectancy of one year or less. SECTION 7. CONDITIONS PRECEDENT 7.1 Conditions Precedent to LSF s Obligations. This Agreement will not be binding upon LSF and FUNDER until the following conditions have been satisfied or waived in writing by LSF: (c) this Contract, along with the documents described in Section 3.4, in each case in form and substance satisfactory to LSF, in its sole discretion, must be received and accepted by LSF; there has not been any action, proceeding or governmental action and there has not been any change or interpretation of the applicable laws or regulations that challenges or questions the validity of the transaction contemplated by this Contract; and no insolvency, reorganization, bankruptcy, or like proceedings have been commenced or threatened against you or the Insurer. 7.2 Conditions Precedent to Your Conveyance. The change of Beneficiary and assignment provided by Section 3.1 and Section 3.2, and the effect of the Conveyance Forms provided by Section 4.2 will not be binding until the Closing has occurred. SECTION 8. GENERAL 8.1 Time of Essence. Time is of the essence with respect to all dates and time periods in this Contract. 8.2 No Assignment. You may not assign or delegate any of your rights or obligations under this Contract to any person without the prior written consent of LSF, which LSF may withhold in LSF s sole discretion. Life Settlement Contract - 10

11 8.3 Binding Effect. This Contract will be binding on the parties and their respective heirs, personal representatives, successors, and permitted assigns, and will inure to their benefit. 8.4 Amendment. This Contract may be amended only by a written document signed by the party against whom enforcement is sought. 8.5 Notices. All notices or other communications required or permitted by this Contract: must be in writing; must be delivered to the parties at the addresses set forth on the first page, or any other address that a party may designate by notice to the other party. 8.6 Waiver. No waiver will be binding on a party unless it is in writing and signed by the party making the waiver. A party s waiver of a breach of a provision of this Contract will not be a waiver of any other provision or a waiver of a subsequent breach of the same provision. 8.7 Severability. If a provision of this Contract is determined to be unenforceable in any respect, the enforceability of the provision in any other respect and of the remaining provisions of this Contract will not be impaired. 8.8 Further Assurances. The parties will sign other documents and take other actions reasonably necessary to further effect and evidence this Contract. 8.9 Termination. Except as otherwise provided in Section 4.8, the termination of this Contract, regardless of how it occurs, will not relieve a party of obligations that have accrued before the termination Survival. All provisions of this Contract that would reasonably be expected to survive the termination of this Contract will do so Attachments. Any exhibits, schedules, and other attachments referenced in this Contract are part of this Contract Remedies. The parties will have all remedies available to them at law or in equity. All available remedies are cumulative and may be exercised singularly or concurrently Governing Law. This Contract is governed by the laws of the State of Oregon, without giving effect to any conflict-of-law principle that would result in the laws of any other jurisdiction governing this Contract Arbitration. Life Settlement Contract - 11

12 (c) (d) (e) Except as otherwise provided in Section 8.14(e), any controversy or claim arising out of this Contract will be settled by arbitration before a single arbitrator in Portland, Oregon. If the parties agree on an arbitrator, the arbitration will be held before the arbitrator selected by the parties. If the parties do not agree on an arbitrator, each party will designate an arbitrator and the arbitration will be held before a third arbitrator selected by the designated arbitrators. Each arbitrator will be an attorney knowledgeable in the area of business law. The arbitration will be conducted in accordance with the then-current rules of Judicial Arbitration Services of Oregon. The resolution of any controversy or claim as determined by the arbitrator will be binding on the parties. A party may seek from a court an order to compel arbitration, or any other interim relief or provisional remedies pending an arbitrator s resolution of any controversy or claim. Any such action or proceeding or any action or proceeding to confirm, vacate, modify, or correct the award of the arbitrator will be litigated in courts located in Multnomah County, Oregon Jurisdiction. For the purposes set forth in Section 8.14(e), each party consents and submits to the jurisdiction of any local, state, or federal court located in Multnomah County, Oregon Attorney s Fees. If any arbitration or litigation is instituted to interpret, enforce, or rescind this Contract, including but not limited to any proceeding brought under the United States Bankruptcy Code, the prevailing party on a claim will be entitled to recover with respect to the claim, in addition to any other relief awarded, the prevailing party s reasonable attorney's fees and other fees, costs, and expenses of every kind, including but not limited to the costs and disbursements specified in ORCP 68 A(2), incurred in connection with the arbitration, the litigation, any appeal or petition for review, the collection of any award, or the enforcement of any order, as determined by the arbitrator or court Entire Agreement. This Contract contains the entire understanding of the parties regarding the subject matter of this Contract and supersedes all prior and contemporaneous negotiations and agreements, whether written or oral, between the parties with respect to the subject matter of this Contract. The contract, application, required written statements, and the contract proposal Exhibit B, make up the entire contract No Third Party Beneficiaries. It is not the intention of the Contract or of you or LSF to confer any benefit to a third party whatsoever. Life Settlement Contract - 12

13 8.19 Incontestability. The contract is incontestable except for failure by the life settlement provider to tender the life settlement by the date disclosed in the proposal Signatures. This Contract may be signed in counterparts. A fax transmission of a signature page will be considered an original signature page. At the request of a party, the other party will confirm a fax-transmitted signature page by delivering an original signature page to the requesting party. This Contract is not effective until signed by both parties. LSF will not sign this Contract until LSF has confirmed that LSF has received all required documentation, including but not limited to all of the Related Documents listed in Exhibit C. In agreement with the terms contained in this Contract, the parties enter this Contract, effective on the Contract Date printed on the first page, by signing their names on the signature lines below. Life Settlement Financial, LLC By: Its: Policy Owner / Seller By: Signature Its: Life Settlement Contract - 13

14 Exhibit A - Definitions Exhibit A Definitions Assignment Effective Date means the date that the Insurer unconditionally transfers the ownership interest in the Policy from you to the FUNDER. Assurance Date means the date presented in Exhibit B which represents the date by which FUNDER must make funds available to you to purchase the Policy. If FUNDER is unable to make funds available to you by the Assurance Date, the contract is void. Beneficiary means the person(s) or entity(ies) entitled to receive the benefits payable under the terms of the Policy. Although you may have already chosen a Beneficiary in the past, by entering into this Contract, you are designating FUNDER as the new Beneficiary, and you will not be able to change this. Broker means the person or persons listed in Exhibit B who may have assisted in arranging for this Contract between you and the FUNDER. The Broker is an agent of LSF, and may not seek or obtain any compensation from you for having assisted in the arrangement of this Contract. Closing means the final step in the sale and purchase of the Policy, in which you receive the Purchase Price and LSF receives the acknowledgement from the Insurer of the change of ownership and the change in Beneficiary and the final copies of the conveyance documents. Closing Date means the date on which you receive the Purchase Price for the Policy. Contingent Beneficiary means the person(s) or entity(ies) who are designated as an alternate person or entity entitled to receive the benefits payable pursuant to the terms of the Policy if the Beneficiary dies or is dissolved before the Insured dies. Contract Date means the date identified on the first page of this Contract which is the date the Contract was signed by you and LSF. Conveyance Forms means all those forms required by the Insurer to change the Beneficiary and Owner of the Policy from you to FUNDER. Escrow Agent means the independent third party identified in Exhibit B that is responsible to LSF and you for holding the Purchase Price in a trust account pending the acknowledgment of the transfer of the Policy by the Insurer. The Escrow Agent is required to transfer the proceeds due to FUNDER immediately upon receipt of acknowledgment of the transfer from the Insurer. Escrow Agent means the agreement between LSF, you, and the Escrow Agent in which the Escrow Agent agrees to be responsible to LSF and you for holding the

15 Purchase Price in a trust account pending the acknowledgment of the transfer of the Policy by the Insurer. The Escrow Agent is required to transfer the proceeds due to FUNDER immediately upon receipt of acknowledgment of the transfer from the Insurer. Insured means the person whose life is insured by the Policy. Upon the death of the Insured, the Insurer will have an obligation to make a payment or provide other benefits to the Beneficiary of the Policy. Insurer means the insurance company or its successor that issued the Policy that is the subject of this Contract, and which is responsible or making a payment or providing other benefits according to the terms of the Policy. Last Day to Rescind means the earlier of the following two dates: the 60th day after the Contract Date stated on the first page of this Contract, or the 30th day after you receive the proceeds of the Purchase Price. Lien means any legal claim or attachment to the Policy, including all liens, security interests, claims, charges, restrictions and encumbrances. LSF means Life Settlement Financial, LLC, a Delaware limited liability company with its principal address at listed on the first page of this Contract. Under the terms of this Contract, LSF is acting on behalf of FUNDER in buying all rights under the Policy from you. Owner means the person or entity under a contractual agreement with the Insurer and having the rights to exercise rights under the Policy as the owner of the Policy, including the right to designate the Beneficiary under the Policy. This Contract changes the Owner of the Policy from you to FUNDER. Policy means the life insurance policy, including all benefits, riders and endorsements on the Policy that is the subject of this Contract and that is identified on Exhibit B. Purchase Price means the amount FUNDER agrees to pay you for the Policy, as presented in Exhibit B. Related Documents means all of the documents required to be delivered by you to LSF in this Contract, as provided in Exhibit C. Retained Benefits and Riders means those additional benefits or optional riders attached to the Policy that are set forth on Exhibit B that you have elected to keep in force. Your right to any benefit or optional rider that is attached to the Policy that is not specifically listed on Exhibit B will terminate. Exhibit A - Definitions

16 Terminally ill means that the insured has an illness or sickness that can reasonably be expected to result in death in 24 months or less, including but not limited to one or more of the following: a. A medical condition that will result in a drastically limited life span not exceeding 24 months b. A medical condition that has required or requires extraordinary medical intervention such as a major organ transplant or continuous artificial life support, without which the insured person would die. c. Any condition that usually requires continuous confinement in a nursing home, convalescent center or other care facility, if the insured person is expected to remain there for the rest of the insured person s life. d. A medical condition that in the absence of extensive or extraordinary medical treatment will result in a drastically limited life span. Such medical conditions include but are not limited to the following: A. Coronary artery disease requiring surgery B. Permanent neurological deficit resulting from cerebral vascular accident C. End stage renal failure or D. Acquired immune deficiency syndrome you, your means the individual identified on the first page of this Contract who is the Owner of the Policy, and who is entering into this Contract to sell the Policy to FUNDER. Exhibit A - Definitions

17 Exhibit B Contract Data Page Assurance Date: Policy Owner [your] Name and Address: Insured Name and Address: Policy No: Insurer Name and Address: Policy Issue Date: Policy Cash Value: Policy Face Amount: Net Death Benefit: Current Policy Beneficiaries and Addresses: Purchase Price: Broker Name: Broker Fee to be Paid by Buyer: Master Producer Fee to be Paid by Buyer: Escrow Agent: Retained Policy Benefits or Riders : Description of Retained Benefit or Rider Premium 1. $ 2. $ 3. $ Exhibit B Contract Data Page

18 Exhibit C Related Documents 1. Disclosure Statement for Life Settlement Contracts 2. Life Settlement Contract 3. Insured s Contact Information 4. Physician s Certificate 5. Physician s Statement of Terminal Illness 6. Spousal Consent to Life Settlement Contract 7. Incumbency Certificate 8. Witnessed Consent of Beneficiaries 9. Witnessed Consent of Seller 10. Affidavit of Seller 11. Authorization to Provide Death Certificate 12. Limited Power of Attorney 13. The Conveyance Forms (Change of Beneficiary / Change of Ownership Form specific to the Insurer forms will be provided later by Escrow Agent in accord with Section 4.2 of the Contract.) 14. Verification of Coverage form (to be provided later by Escrow Agent) 15. Copy of Original Policy Exhibit C Related Documents