The current climate of economic uncertainty and looming recession has created enormous challenges for law firms and their clients involved in or contemplating litigation. Clients need to pursue and defend business-critical claims while preserving capital, and firms must maintain the continuity and profitability of their litigation practices. Find out how litigation finance can help.

1. Litigation Finance for Crisis Recovery
Spring 2020

2. | 2
What Shape Will Recovery Take?

3. | 3
POST C19
NORMAL
LAW FIRM
LIQUIDITY
CLIENT
FINANCIALS
STRATEGIC
GROWTH
CLIENT SERVICE
INNOVATIONS
LONG TERM
FINANCIALS
Funding for Each Stage of C-19 Economic Recovery
RETURN OF
REVENUE
RECOVERY
CAUTIOUS
RECOVERY
VIRAL PEAK
F U N D I N G S O L U T I O N S
L A W F I R M F I N A N C I A L C O N S I D E R A T I O N S B Y S T A G E
Firms convert plaintiff-
side hourly cases into
contingency fee cases
Firms offer 50% fee
discounts for defense
cases (Validity pays
additional 25%, for
success fees)
Convert existing full
contingency cases to
partial contingency, firms
receive 50% of fees
Monetize the firm’s
interests in existing cases
where merits strong.
Funding for Practice
Groups for COVID-
related areas (including
insurance and
bankruptcy groups).
Offer clients hybrid
contingency fee
arrangements backed
by Validity funding.
Offer clients fixed fee
arrangements with
success fees, supported
by funding
Lateral funding to
offset hiring costs in
year one to enable
growth or strategic
practice areas
Create a law firm
portfolio that combines
plaintiff and defense
cases with funding.
Create a portfolio of
cases with alternative
fee agreements in
exchange for
contingency success
bonuses
Help monetize the
client’s interest in
existing cases by
providing working
capital or by monetizing
claims
Obtain funding for a
bankruptcy estate, so
the estate can pursue
meritorious litigation

4. | 4
L A W F I R M
Invest 50%
of Fee Budget
20%
Recovery
Client Recovers 60%
Pays Portion of Costs
Invest 50%
of Fee Budget
20%
Contingency
Single-Case
Risk Sharing:
50/50
1. Client represented by
exceptional trial lawyers on
full contingency
2. Firm and Validity target
identical return of 3x to 5x
3. Returns are time-based to
reflect increased risk
H O W D O E S I T W O R K ?

5. | 5
Portfolio
Risk Sharing
Validity’s Portfolio Benefits
Law Firms Dramatically:
1. Validity’s return is capped at
a low multiple (no %)
2. Law firm’s return is double
Validity’s
3. Funding in annual tranches
restarts return clocks
4. Waterfall: 1x – 90%/10%;
thereafter – 65%/35%
5. Validity management have
funded over 25 portfolios
L A W F I R M
Legal Services Firm Receives Majority of
Proceeds (4x-7x)
Invest 50% of Hourly
Fees/Costs in
Annual Tranches
Recover Capped Multiple of
2x (0-18 months), 2.5x (18-
36 months) or 3x (36+)
Plaintiff Plaintiff Plaintiff Defense
Client Case 4Client Case 1 Client Case 2 Client Case 3
H O W D O E S I T W O R K ?

6. | 6
Validity’s investment team is among the most experienced in the US
with an average of more than 18 years of trial experience and over 4
years of funding experience.
In every interaction, we are committed to delivering:
Fairness – Our goal is for clients to recover 50-60% of any
monetary award or settlement.
Agility – Clients deserve swift funding decisions and immediate
capital to begin paying fees and costs.
Clarity – Validity’s term sheets are clear, short, and concise. Our
investment agreements are 18 pages, in plain English.
Strategy – Our elite trial lawyers offer strategic advice, as needed.
Ethics – Validity professionals put our clients above our profits,
and deliver the most ethical standards in the industry.
77%
$300M
Invested in
over 65 cases
Meet Validity
Management’s
Track Record
Success rate

7. | 7
Our Legal Team
A B O U T V A L I D I T Y
Ralph J. Sutton
Chief Executive Officer
New York
1 646 798 7168
ralph@validity-finance.com
David J. Kerstein
Chief Risk Officer & Senior
Investment Manager, New York
1 646 798 7168
dave@validity-finance.com
Laina Miller Hammond
Investment Manager
Houston
1 346 214 2165
laina@validity-finance.com
Julia Gewolb
Director of Underwriting
Denver
1 720 547 2286
julia@validity-finance.com
William C. Marra
Portfolio Counsel
New York
1 646 798 7168
will@validity-finance.com
Wendie Childress
Portfolio Counsel
Houston
1 346 214 2165
wendie@validity-finance.com
Joshua Libling
Portfolio Counsel
New York
1 646 798 7168
joshua@validity-finance.com
Allen Fagin
Senior Advisor
New York
1 646 798 7168
allen@validity-finance.com
Jim Amend
Investment Advisor
Chicago
1 646 798 7168
Jim.amend@validity-finance.com
Ronit Cohen
Portfolio Counsel
New York
1 646 798 7168
ronit@validity-finance.com

8. | 8
Our Five Client Commitments
A B O U T V A L I D I T Y
(No) Control
When a home-owner
gets a mortgage, the
bank doesn’t get to
decorate the house.
Likewise, a litigation
funder should never try
to substitute its judgment
for yours. You are
entitled to full control of
your litigation including
selecting counsel,
obtaining legal advice on
your funding agreement,
establishing your case
strategy and whether or
when to settle.
Client-focused
Returns
You are not someone
else’s “financial asset.”
Litigation funding has
begun to attract
financiers who care more
about their rate of return
than about empowering
you to resolve your cases.
At Validity we believe the
client is entitled to the
majority of any damages
award and we strive to
ensure that you receive at
least 50%.
Capital
You must be able to bank
on your funder’s promise
of capital, literally. You
should never have to
worry that a funder will
default on its capital
commitment to you. At
Validity we have $250
million in assets to draw
upon and we’re backed
by a leading private
equity firm. We have the
resources to fund our
commitments all the way
to resolution.
Confidentiality
You deserve a partner and a
confidant. Confidentiality is
the foundation of our legal
process and ethical code.
Our client relationships
always start with a non-
disclosure agreement that
fully protects your sensitive
and privileged information.
Clarity
You are entitled to a
clear, concise funding
agreement - because
life’s too short for
legalese. Our funding
agreement is 19 pages of
plain English, and it
clearly articulates the
amount of capital, how
returns will be divided
and a fair dispute
resolution process.
At Validity, believe every client has the right to a fair deal, clear term sheets, strategic advice, and
swift and timely responses.

9. info@validity-finance.com
www.validity-finance.com Trust Matters.