Law Finance Group Management Company

Item 5 - Fees and Compensation
As compensation for investment advisory services rendered to Funds, LFGMC typically
receives a management fee (each, a “Management Fee”) for each such Fund. The precise
amount of, and the manner and calculation of, the Management Fee may differ from one Fund
to another, as set forth in such Fund’s Governing Documents received by each investor prior
to investment. The Management Fee is typically calculated as a percentage of the total capital
commitments of the investors during the investment period and thereafter as a percentage of
unresolved investments. In certain cases, LFGMC pays, out of the Management Fee it receives
from the Funds, Servicing Fees (sometimes referred to in a Fund’s Governing Documents as
“Sub-Servicing Fees”) to Law Finance Group LLC, an affiliate of LFGMC, in consideration
of transaction support provided to LFGMC and the Funds.
Management Fees are payable monthly in advance, and are either called from investors, or
withheld from distributions to investors.
The Firm is also entitled to a performance fee (“Carried Interest Distributions”) based on
cumulative net profits from investments. Carried Interest Distributions, if applicable, are
withheld from distributions to investors.

The Firm receives fees for Co-Investment Opportunities as described in Item 4 – Advisory
Business. Compensation terms for Co-Investment Opportunities are negotiated on a
transaction-by-transaction basis.

Other Fees of the Adviser and its Affiliates
In addition to the Management Fee and Carried Interest Distributions, certain Funds charge
other additional fees as further described below (collectively, these other fees are referred to
as “Additional Fees”).
Initial Fee. With respect to certain Funds, the Firm is entitled to receive a one-time, non-
recoupable fee based on a percentage of the total amount advanced by an affiliate of the Firm
to the lawyer or plaintiff relating to a law transaction.
The Firm may charge additional fees with respect to a Fund and investors are strongly
encouraged to refer to the respective Fund’s Governing Documents for details of such fee
arrangements.
Expenses
To the extent provided in the Governing Documents of the Funds, LFGMC is responsible for
paying certain ordinary overhead and administrative expenses, including salaries of its
personnel, rent and equipment expenses. In addition to the Management Fees, and the Carried
Interest Distributions, the following is a list of expenses typically borne by the Funds (and
indirectly by the investors in the Funds). This list is not intended to be exhaustive; prospective
investors are advised to review the applicable Governing Documents for a more extensive
description of the expenses associated with an investment in a Fund.

   •   Legal, audit, accounting, fund administration fees;

   •   Expenses incurred with respect to distributions, communication and other clerical
       work relating to current investors in the Funds;

   •   Expenses of limited partner advisory committee meetings; and

   •   Any other expenses, including investment expenses, related to the business of the
       Funds.

Item 7 - Types of Clients
The Firm currently provides investment advisory services to the Funds. Investment advice is
provided directly to the Fund and not individually to investors in the Fund. The Funds’
investors are limited to individuals and entities that meet certain suitability criteria including
“accredited investors”, “qualified clients” and “qualified purchasers”.

As of the date of this brochure, the Funds are currently closed to new investors. The minimum
requirement to make an investment in a Fund has been generally $1,000,000 for new investors,
and $500,000 for investors who have participated in prior investment vehicles managed by
LFGMC or its affiliates. LFGMC had the option to waive these minimum requirements in its
sole discretion. LFGMC may in the future offer funds with a different minimum investment
requirement.