Investment SummaryEtico Litigation Funding (“Etico”) has been developed to service increasing investor interest inthe rapidly expanding area of litigation funding. Working with the UK’s top 500 Law Firms,Etico has been structured to fund a portfolio of high yielding quality legal cases. Etico isseeking to raise ‘seed capital’ in the form of Loan Notes yielding attractive guaranteed rates ofreturn with excellent underlying security providing 100% principle protection of original capital.

Etico is unique as investor interests are protected through a series of mechanisms.

The Loan Notes

These two year Loan Notes have been structured with a rate of return reflecting theperformance of Etico. Returns to investors are based on Etico issuing loans to “Litigants” tofinance litigation with a combination of periodic interest and success fees arising oncompletion of the litigation funded.

Investors will receive:

- 100% principle protection of their original capital

- Guaranteed interest of 8% per annum + a variable interest bonus

- Guaranteed maturity bonus of 8% + a variable maturity bonus (payable at the end of term)

- * Variable maturity “Fund Performance” bonus up to 20% (payable at the end of term)

Return of investor’s capital at the end of 2 years is guaranteed. Minimum levels of quarterlyinterest payments throughout the 2 year investment period are guaranteed. A maturity bonusat the end of 2 years is guaranteed. In addition investors may be paid additional levels ofinterest and/or maturity bonus depending on the overall performance of Etico.

*This element is not guaranteed.

Investor Returns

Interest

Interest on capital is guaranteed at the minimum rate of 8% per annum payable quarterly in arrears.

A total of 16% over 24 months.

Maturity Bonus

A maturity bonus of a guaranteed minimum of 8% will also be paid at the end of the 2 year investment period.

Total returns as a combination of interest and maturity bonus will be guaranteed at 24% over the two year term.

Performance Bonus

A *performance bonus of up to 20% of the total success fees achieved is payable after 2 years at maturity based onthe overall performance of Etico. *This element is not guaranteed.

Key Features

ETICO’S MANDATE

* Secured lending to claimants to support approved cases with high likelihood of success

* Guaranteed interest of 8% per annum + a variable interest bonus

* Guaranteed maturity bonus of 8% + a variable maturity bonus (payable at the end of term)

* Variable maturity “Fund Performance” bonus up to 20% (payable at the end of term)

INVESTMENT TERM MINIMUM INVESTMENT AMOUNTS

* 24 months (max) * £20,000/€20,000/$20,000 (£50m maximum)

COMPREHENSIVE LEVELS OF INVESTOR PROTECTION

* Independent Scheme Administrator: GCEN * Segregated Client Accounts: within Barclays

Bank plc * Original Client Monies Blocked: Separate Credit Line for litigation * Independent Investment

Investment Manager: IFP AG Zurich * Bank Guarantee: issued by HSBC

ALL LITIGATION CASES PROTECTED BY ATE INSURANCE

CHARGES TRANCHE SIZE* No initial charges * GBP £ 50 million maximum

* No annual management charges

* No early redemption charges

Investststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststststmemememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememememementntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntntnt

Unrivalled & Independent Investor Protection

The financing of third-party litigation does carry an element of risk.

To enable Etico to guarantee the original capital invested plus the guaranteed rate of return, and in orderto mitigate that risk, the entire lending program of Etico’s debt facility will be underpinned by the unique additionof investor guarantees and investor protection mechanisms as detailed below:

* Cash and treasury management facilities to which Etico has no access

* “Segregated Client Custodian Account” where all original investor monies are held

* An independent Swiss based and fully regulated Investment Manager

* A Bank Guarantee

* An “After the Event” insurance policy which protects Etico against any losing cases

Independent Investor Protection

Protection 1 – Independent Scheme Administrator

Global Currency Exchange Network (“GCEN”) have been appointed as Independent SchemeAdministrator and will provide Etico with Treasury and Cash Management Services. GCENwill ensure that all necessary documentation is in order and will be responsible for theinitial Know Your Customer (KYC) for all investors.

Original client monies are not sent to Etico.

Upon receipt by GCEN, client monies are then deposited for the two year term into a fully segregated and ring-fenced clientCustodian account within Barclays Bank plc.

The Management Team of Etico have no access to these monies.

From this Custodian account a credit line is derived to fund litigation cases.

At no point during the investment term will the investor’s capital be available to the Investment Manager (or anyone else)except to repay capital to investors at the end of the term. Therefore at no time during the investment term will the investorsoriginal capital leave the segregated account with Barclays Bank plc.

GCEN are fully regulated by the UK’s Financial Services Authority and in the highly unlikely event that they were to experienceany ‘difficulties’ whatsoever, investors original capital will always be fully protected by virtue that it is being held in a fullysegregated and ring fenced client account within Barclays Bank plc.

Please see the Investor Security Pack for further information.

Independent Scheme Administrator

Protection 2 – Segregated Client Accounts

Client’s capital is never exposed to risk because it is held in ring-fenced and fully “Segregated Client Accounts” within Barclays Bank plc. throughout the two year investment term.

* All funds will be held in completely segregated client accounts at Barclays Bank plc.

* GCEN and the Investment Manager are able to view the bank accounts

* GCEN can verify payments but cannot authorise and release an outward payment

* The Investment Manager can authorise to release outward payments, but cannot verify payments

* Both GCEN and the Investment Manager’s authority is needed to release any funds

* The Investment Manager can only access the account to pay back investor capital at the end of the two year

investment term

* These accounts are sufficiently distinguished that even Barclays Bank have no access to them

As a result of the above, these Segregated Client Accounts provide 100% Principle Protection and ensure that client monies will always have a 100% Guarantee of original capital.

Please see the Investor Security Pack for further information.

Segregated Client Account

Protection 3 – Separate Credit Line

To enable Etico to guarantee the capital invested plus the agreed rate of return Etico will hold the capital in acustodian account throughout the two year investment term.

From this custodian account a credit line is derived to fund litigation cases.

Original investor’s capital is never used to directly invest in the litigation cases being funded thereforeensuring that the capital is never exposed to risk.

It is therefore the credit line that is at risk and not the investor’s capital.

To facilitate such a credit line the business model has undergone extensive due diligence from independentparties.

In addition to this, Etico’s strategy is to mitigate the risks involved in providing funding to the claimants byway of ATE Insurance.

Separate Credit Line

Protection 4 – Independent Investment Manager

IFP Independent Financial Partners AG (IFP) based in Zurich, Switzerland have been appointed

as independent Investment Managers and will provide Etico with investment management expertise.

The Investment Manager will ensure the following:

1. IFP on behalf of Etico and its investor’s will purchase the HSBC bank guarantee once a minimum of GBP £6m of initial seed capital has been raised.

2. If this target of £6m is not achieved the investment capital will be returned to investors without deduction by IFP.

3. Under the terms of the Loan Note issued to investors the HSBC bank guarantee can be subject to forced encashment by any investor that does not receive returns as stipulated in the Loan Note.

4. IFP will meet obligations to investors from any funds received from the HSBC bank guarantee on the basis that investors are first beneficiaries rather than Etico.

5. The HSBC bank guarantee can be called upon by investors if Etico fails to return the stated interest and maturity bonus for whatever reason.

Please see the Investor Security Pack for further information.

Independent Investment Manager

Protection 5 – HSBC Bank Guarantee

The final element of protection provided involves a Bank Guarantee which has been arranged with HSBC.

In the highly unlikely event that one or more of the previous protection mechanisms were for whateverreason to fail, then Etico has had the entire scheme guaranteed through a Bank Guarantee from HSBC.

The Bank Guarantee will cover any shortfalls on returns to investors up to a maximum of US$100 million.

This Bank Guarantee includes the return of client’s original capital; any outstanding interest payments due to clients;and/or any outstanding maturity bonus yet to be paid to clients.

Please see the Investor Security Pack for further information.

These extensive and independent levels of investor protection significantly exceed what is available from any

other litigation fund, and provide prospective investors with a truly unique and robust investment opportunity

that guarantees not only original capital but also a pre-determined minimum level of returns.

$100M Bank Guarantee

Global Currency Exchange Network (“GCEN”)

Etico has retained the services of GCEN to provide it with Treasury and Cash Management services.

Why are your funds safe with GCEN?

* GCEN comply fully with all of the FSA & HMRC requirements, set out below, as an authorised payment institution

* GCEN hold fully segregated client accounts within Barclays Bank – Barclays Bank have no call on client funds at GCEN

* GCEN transactions and accounts are automatically reconciled daily by a third party London based accountancy practice as

an authorised payment institution

* GCEN are subject to a high level of regulatory scrutiny and have to comply with various financial requirements and policies

set out by the FSA

Some of these requirements include:

* Holding a defined level of capital adequacy at all times as a margin cash cover Enforcement of various policies and

procedures - including Anti-Money laundering, risk, complaint and fraud prevention policies and procedures

* Directors and principals are subject to "fit and proper" tests

Global Currency Exchange

Investment Manager Independent Financial Partners AG

Etico has appointed Independent Financial Partners AG Zurich (IFP) to act as Investment Manager.

IFP was incorporated in Switzerland as a limited liability company on 14 February 1996 and is regulated by the “Polireg” inSwitzerland. IFP is an asset management company that specialises in the management and structuring of assets of high networth individuals as well as the promotion of investments funds. As of 31 December 2009, IFP had in excess of CHF 200million funds under management.

IFP will manage the company funds and, in conjunction with the investment and legal advisers to Etico, will approve the casesput forward for funding.

The Investment Manager are completely independent from any other party involved in the offering.

IFP Management Team (www.ifpartners.ch)

The Principals and Directors of the Investment Manager are Raymond Porchet, Mauro Tempini, and Alexandre Weintraubwhose detailed biographies appear in the Private Placement Memorandum.

* Raymond Porchet – 20 years at Bank Julius Baer AG; 10 years Sté Générale du Luxembourg

* Mauro Tempini – 14 years as a portfolio manager initially with UBS AG

* Alexandre Weintraub – 20 years banking experience with both Bank Sal. Oppenheim jr. & Cie (Schweiz) AG and Multi

Commercial Bank both in Zurich

Independent Financial Partners AG

Protection of the Trading Model – After The Event Insurance

Without ATE insurance litigants that are involved in a court case run the risk, should the case fail, of not only having to paytheir opponent’s legal costs but also being unable to recover their own legal expenses. An individual ATE insurance policy isobtained on all funded cases and should the case be lost, the ATE insurance pays the funding provided thereby returning theoriginal loan capital to Etico.

If a case applying for litigation funding from Etico cannot be insured then the application will be declined.

To further mitigate risk the interest chargeable to the case is retained by Etico on day one of the loan period. It is from thisretained interest that Etico are able to guarantee investors their income payments which are payable quarterly in arrears. TheATE insurance guarantees that Etico will receive back any payments made to it’s investors.

Quarterly interest payments are paid to another segregated client account within Barclays Bank plc. and then GCEN will makethe relevant income payment to each investor. Once again these monies are fully protected on exactly the same basis as thesegregated accounts holding the original capital.

All ATE Insurers utilised for the purposes of Etico are minimum ‘A’ rated specialist insurance companies and all are UK based.As a result, all are fully regulated by the UK’s Financial Services Authority and in the event of default by any of these Insurers,the policyholder (Etico), would have recourse to the UK’s Financial Services Compensation Scheme (“FSCS”).

ATE Insurance

The Insurers

Etico will rely on the expertise of Tobell Insurance Services to source and structure the most cost effective and thoroughATE Insurance coverage. This will be provided by a combination of policy issuers and underwriters as a further way ofmanaging the risk rather than just relying on one insurer.

Only insurers regulated by the UK Financial Services Authority (“FSA”) and those covered by the UK’s Financial ServicesCompensation Scheme (“FSCS”) will be used. In the unlikely event that an insurer went under the FSCS would pay outand Etico would be repaid.

A selection of those insurers and their respective credit ratings are as follows:

Allianz Insurance – S & P Credit Rating ‘AA’

Meadowbrook Insurance Group – S & P Credit Rating ‘AA’

QBE Insurance – S & P Credit Rating ‘A’

Brit Insurance – A M Best Credit Rating ‘A’

IGI Insurance – A M Best Credit Rating ‘A -’

The ATE policy insures that in the event of a case being lost, both the original loan capital and the interest payments dueare paid back to Etico and it’s investors. In addition, the overall investment proposal provides further protection in the formof a custodian account for capital and an interest and maturity bonus guarantee offered irrespective of the outcome of thelitigation.

The Insurers

HSBC Bank Guarantee – up to US $100 million

As mentioned previously, in the unlikely event that all other protection mechanisms were to fail Etico has arranged a BankGuarantee that operates once GBP£6m has been invested.

This unconditional Bank Guarantee issued by HSBC covers any shortfall on returns to investors up to a maximum ofUS$100 million. This is the ultimate guarantee and effectively insures against any unforeseen shortfall.

The guarantee covers the return of client’s original capital; any outstanding interest payments due to clients; and/or anyoutstanding maturity bonus yet to be paid to clients.

First beneficiaries of this bank guarantee are the investor’s and not Etico. The Investment Manager has control over thisbank guarantee not Etico.

Overview of Investor Protection

Detailed below is an overview of the levels of protection provided for the investors capital when investing in the Etico Litigation program.

What is 3rd Party Funding?Third party litigation funding ‘invests’ in litigation or arbitration matters by way of financing theassociated costs for an agreed return of the awarded damages or pre-agreed funding fees.

The investment is made in litigation within the UK and only where the litigant is claiming afinancial award, and has good prospects of succeeding. Financial elements to a litigation casecomprise of two principal components:

- costs (both the litigant and the defendants), and- damages

Costs include court related disbursements, solicitors fee and insurance. Damages are a financialaward to the litigant over and above costs. Damage claims by the litigant are specified when thecase is lodged and is based on established law or precedent and on the advice of legal counsel.

Critical to the investment in litigation cases is case assessment on both legal and financial grounds.

Actions that could, and do, make use of litigation funding in various jurisdictions around the world include cases involvingmatters such as relatively small value claims such as personal injury claims, through to divorce actions, patentinfringement and contract disputes.

It is often the case that a litigant is unable to proceed with a claim, not due to lack of merits, but because they do not havethe funds to do so - in some cases due to the actions of those against who they are looking to bring the claim. The costsof bringing a case can be prohibitive. Whilst the general position is that when a case concludes, the losing party has topay the successful party’s costs, this does not help with the cost of achieving that conclusion.

What is 3rd Party Funding? cont

The introduction of what is known as After the Event (“ATE”) Insurance has removed the riskelement of litigating and losing, thus enabling the pursuit of cases to become conditionallyrisk-free, but not cost-free. This is because an ATE Insurance policy will only pay out if andwhen a case loses – it does not help with the cost of bringing that case to a conclusion.Of course, if a case succeeds, then the costs are usually ordered to be paid by the losingopponent in any event.

In its most basic form, third party funding of disputes permits a party to a potential lawsuitor arbitration to obtain funding for some or all of the legal costs and expenses associatedwith that dispute in return for a share of any recovery whether through settlement or ultimateadjudication.

It will “level the playing field” between parties in a dispute, especially when one side has vastfinancial resources and is looking to stifle their opponent’s claim with what is known as “deep pocket” litigation.

The fact that provisions are already in place to cover the costs through the use of ATE insurance, makes litigationfunding an investment opportunity with mitigated risk. Etico marries investors with good strong litigation for whichfunding is needed.

Only cases with strong merits are chosen, as the best investment returns will come from cases that succeed. However,because the pursuit of cases can already be made conditionally risk-free with the use of ATE insurance, then it is alsopossible to not only secure excellent returns by way of careful selection of cases, but also to ensure that the capitalinvestment is conditionally protected.

After the Event InsuranceRisk Mitigation and CoverageWithout ATE Insurance, litigants that are involved in a court case run the risk, should the case fail,of not only having to pay their opponent’s legal costs, but also being unable to recover their ownlegal fees, as the usual way in which a Court will deal with costs in civil litigation is to order thatthe losing party pays the costs of the winning party.

ATE Insurance is a form of legal expenses cover which insures a litigant against that risk, so that if the case is lost, the insurance will repay the legal costs that have been paid throughoutthe case, and also pay out any costs liability to a successful opponent.

The ATE Insurance cover is self-insuring, so the cost of the insurance premium is included within thecover and forms part of the overall funding that the ‘borrower’ is applying for, and therefore repaid in the event of a loss.

If a litigant is successful, the insurance will not pay out anything, but the cost of the insurance premium and the litigant’s otherlegal costs, will be recoverable from their opponents.

ATE Insurance succeeds as a product by way of those underwriting the cover ensuring that they only cover cases which arelikely to succeed. Highly experienced ATE Insurance and Funding underwriters, with a reputation for success, will considereach and every case for which an application for funding is made, as for a case to be funded, it must be insurable if courtproceedings are required.

If a case is won then the losing party will repay both the original capital used to finance the loan as well as the interest accruedon the loan back to Etico.

the

After the Event Insurance cont

In the event that a case is lost then the ATE policy provider will repay the original loan capital used to finance the loan as well as the interest accrued on the loan back to Etico.

Win or lose, Etico will always be able to recover the original loan monies from the Borrower as well as all interestdue on the loan.The ATE insurance gives comfort to the Claimant and because it is an insurance policy, it provides as an ‘initial’ although, conditional guarantee, of the investors original capital and income payments.

However, it does not affect the unconditional HSBC Bank Guarantee.

Case Example How it worksCase ExampleLitigant X is a medium sized construction company owed 5,000,000 by a Local Authorityfor completion of the first stage of the contract. A dispute has arisen over the future of theworks due to uncertainty of future funds for the project. The claimant would be seekingdamages amounting to monies lost including any interest plus opportunity cost relating todelays directly or indirectly appertaining to the situation.Funding is required for 450,000 disbursements (disbursements are such items such ascourt fees, expert witness fees, medical expenses or any other professional services thatmay be required in order to support the claimants compensation claim), 900,000solicitor s fees based on a worst case forecast of time to final court judgement, and the up-front cost of an ATE insurance policy of 787,000 to cover the possible costs of losing :

450,000 Disbursements (see explanation above)900,000 Solicitor fees787,000 ATE premium (50% deferred)412,000 Annual interest payments on total Funding outlay over 18

months.150,000 Contingency is held in case of additional disbursement fees

that may be required to be funded=========2,699,000 Total funding budgeted for.

Case SucceedsA. Case succeeds at end of 12 months.

Litigant X is awarded 5,000,000 damages from his opponents, in addition to recovery of his non interest costsof 2,287,000, incorporating disbursements, solicitor fees, and the ATE Premium. Most of the capital is thereforeeffectively repaid by the opponents.The litigant pays the total amount of interest ( 412,000 in this case held by Etico on outset of case) out ofdamages, together with a win bonus of 20% of recovered damages (agreed with the Litigant as part of thefunding agreement) namely 1,000,000 which also comes out of damages.Additionally there are ATE Commissions paid to Etico which equate to 157,500 for each successful case.Total amount paid by client is 1,420,000 for the funding arrangement.The Litigant is still left with 71.6% of his damages after payment of funding costs.In total Etico receives 1,420,000 from the claimant and 1,687,000 from the otherSide therefore providing a 42.88% margin.

her

Case Fails

B. Case fails at end of Year 1.Litigant X is insured by his ATE insurance for all disbursements and opponents costs. He is not insured for some or all ofhis own solicitors costs or interest payable on capital.This represents a credit risk to Etico (but not the investor due to the nature of the financial guarantee and defaultinsurance) of potentially all legal fees i.e. 900,000 & Interest of 412,000. Depending upon the terms agreed withLitigant X at the outset and the Litigants own credit worthiness there could be a loss to Etico of 900,000 in the case.The 412,000 interest payment would not be lost as the interest payments are held on day one by Etico.All interest that is attributable to each case is held within Etico upon the outset of each case. All Solicitors fees that areattributable to each case are reserved within Etico and are paid out to the Solicitor on a monthly draw down basis againstpre-approved budget which is established as a part of the initial contract with the claimant.The business model assumes a 30% loss of cases and assumes full loss of these sums. However they can be mitigated;Etico can seek to insure some or all of the Solicitors fees under the ATE by negotiation.Etico can seek to agree with the Litigant at the outset to meet these fees as a reasonableand proportionate share of risk.

able

Investment Advisors

The Legal/Investment Advisors will manage the litigation investments and originate, evaluate,structure (including budget and ATE insurance) and propose cases for the approval of the InvestmentManager. The team comprises:Matthew Roddan Etico Litigation Funding (Legal) www.eticoinvestments.comMatthew qualified from Kingston Upon Thames with a Honours Degree in Law and followed this with aMasters Degree in Employment Law & Practice from Staffordshire University. He began practising asa Solicitor in 1992 with Eastleys Solicitors and swiftly rose to become a partner in 1998 and a fullequity partner by 2000. During his time as a practising Solicitor Matthew has seen the advent andimplementation of Lord Woolf s reforms in the form of the creation of the Civil Procedure rules and theAccess to Justice Act 1999. These encompassed the introduction of Conditional Fee Agreements (NoWin No Fee) and the availability of After the Event insurance. Under this regime Matthew has beenmanaging partner of a Litigation Department which has successfully concluded over 2000 cases. Hisfirm is one of a handful to have established their own Cell Captive for insurance purposes and theyreceive referrals throughout the UK for their specialism in industrial disease litigation. EastleysSolicitors are fully regulated by the Solicitors Regulation Authority.Andy Ellis Ellis Grant (Legal Costs) - www.ellisgrant.co.ukAndy is a founding Director of civil litigation costs consultants Ellis Grant Ltd and the innovativelitigation budgeting software firm Feasibility Ltd . Since 1991 Andy has been instructed by leading lawfirms in many of the highest value costs cases in the commercial litigation, publication and groupaction sectors. Andy contributed to Lord Justice Jackson's Review of Civil Litigation Costs and is aleading light in the fast developing field of active litigation costs management.Andy is a straight-talking no-nonsense operator with a commercial approach that consistently

achieves good outcomes. Harvey Kass, Legal Director, Associated Newspapers

Investment Advisors cont

David Wallis DW Costs Consulting (Legal Costs)David joined leading city litigation law firm Herbert Smith in 1983 as one of a busy departmentdealing with their costs in commercial, insurance and reinsurance matters. This involvedappearing in costs matters emanating from all divisions of the High Court, the Court of Appeal,the Privy Council and the House of Lords as it was then known.Since 1992 David has practised independently as a consultant for many City, Central Londonand niche practices to whom he regularly lectures on various costs issues. David was involved inthe case which defined the indemnity principle and has also served as a Council Member of theAssociation of Law Costs Draftsman. David was one of the first in his profession to qualify as aCosts Lawyer when the qualification was introduced in 2007.

Neil Smith Tobell Insurance (ATE Insurance) - www.tobell.co.ukOwner and Manager of Tobell Insurance. Neil Founded and launched the company in 2007.Tobell is a London market wholesale broking group which has rapidly expanded to incorporatethree core operating units under the Tobell Insurance Services umbrella, providing financiallysecure and specialist insurance products to a wide range of businesses across the world. Thecompany has established its reputation for expertise in it’s chosen sectors of scheme businessin particular through After the Event Insurance, Warranty, Payment protection and Assetprotection product lines, establishing a track record of delivering innovative products andbespoke solutions for clients' needs. Neil brings critical skills in underwriting and caseassessment.

Tobell Insurance are fully regulated by the UK FSA.

The Litigation Funding Market

UK MARKETA commissioned analysis, such as that undertaken by The UK Lawyer publication, evidenced that in2008 the total revenue for UK law firms to be in excess of US $33 billion. With the advent of litigationlending in the UK market this figure could be expected to double with litigation lending providing theopportunity for plaintiffs in large litigation matters to proceed with claims that they otherwise may nothave been able to afford.Traditionally, the common law and legislative provisions in the UK prevented litigation lending in all buta few areas. Most significant of these is the rule against champerty and maintenance. That is to saythe prohibition on interference with the litigation process for financial reward. These barriers havebeen relaxed with the introduction of the UK Legal Services Act 2007, allowing for a growing andprofitable market in litigation financing.Litigation Funding in the UK has recently been scrutinised by Lord Jackson and a number of keyreforms have been recommended. The thrust of the recommendations is to control the costs in termsof legal fees and to force the legal profession to provide accurate assessments from the outset. TheJackson reforms envisage certainty of costs in litigation which in turn will encourage funders and ATEinsurers to assist claimants thereby providing greater access to justice.

Summary - Key Features

ETICO’S MANDATE

* Secured lending to claimants to support approved cases with high likelihood of success

* Guaranteed interest of 8% per annum + a variable interest bonus

* Guaranteed maturity bonus of 8% + a variable maturity bonus (payable at the end of term)

* Variable maturity “Fund Performance” bonus up to 20% (payable at the end of term)

INVESTMENT TERM MINIMUM INVESTMENT AMOUNTS

* 24 months (max) * £20,000/€20,000/$20,000 (£50m maximum)

COMPREHENSIVE LEVELS OF INVESTOR PROTECTION

* Independent Scheme Administrator: GCEN * Segregated Client Accounts:

within Barclays Bank plc * Original Client Monies Blocked: Separate Credit

Line for litigation * Independent Investment Investment Manager: IFP AG

Zurich * Bank Guarantee: issued by HSBC

ALL LITIGATION CASES PROTECTED BY ATE INSURANCE

CHARGES TRANCHE SIZE* No initial charges * GBP £ 50 million maximum

* No annual management charges

* No early redemption charges

Notice to Investors

The contents of this Document should not be treated as investment, tax or legal advice by any prospective investor. Allprospective investors must make their own investigation and evaluation of the opportunity to invest in Etico.Investors should seek to consult with their own advisors concerning the evaluation of the risks of the investment and itssuitability for their individual circumstances. Prior to making an investment prospective investors should read thoroughly thePrivate Placement Memorandum.A summary of certain information relevant to an investment in Etico is provided in this Document. This Document is notintended to be the sole document upon which investors should rely in reaching their investment decision. Etico may fromtime to time provide investors and their advisors the opportunity to receive additional information concerning investment inEtico.No person has been authorised to give any information or to make any representation other than those contained in thisDocument and if made or given such information or representations may not be relied upon as having been authorised byEtico.The Directors of Etico confirm that it is their opinion that this Document when read with the Private Placement Memorandumcontains all material information that a potential investor would reasonably require to be able to make an informed decisionas to whether or not to invest in Etico. To their knowledge such information is true and accurate and is not misleading in anymaterial respect. The opinions, forecasts, assumptions or intentions expressed in this Document are honestly held andmade and are not misleading in any material respect.