Summary of IMPERIAL HOLDINGS, INC.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 2, 2012, the Board of Directors (the "Board") of Imperial Holdings, Inc. (the "Company") appointed Andrew Dakos, Phillip Goldstein and Gerald Hellerman to serve as directors of the Company. As further discussed in Item 8.01 below, in connection with these appointments, Opportunity Partners L.P. ("Opportunity") has, on behalf of itself and its affiliates, withdrawn its demand for a special meeting of shareholders (the "Special Meeting Request"), which it had submitted to the Company on May 23, 2012 and has agreed to execute a stipulation dismissing its lawsuit, filed in the 15th Judicial Circuit in and for Palm Beach County, Florida, to compel an annual meeting of shareholders (the "Annual Meeting Litigation"). None of Messrs. Dakos, Goldstein and Hellerman has any direct or indirect material interest required to be disclosed pursuant to Item 404(a) of Regulation S-K.

Messrs. Dakos, Goldstein and Hellerman will receive compensation consistent with the other non-management directors of the Company. Such compensation currently includes an annual cash retainer of $40,000, and a committee retainer of $5,000 and $2,000 for membership on the Audit Committee and other Board committees, respectively.

The Company intends to amend this Current Report on Form 8-K with updated committee memberships of the Board once those determinations have been made.

As previously disclosed in a Current Report on Form 8-K filed on July 20, 2012, Walter Higgins and A. Penn Wyrough have resigned from the Board, effective on August 2, 2012, in connection with the appointment of Messrs. Dakos, Goldstein and Hellerman. The resignations of Messrs. Higgins and Wyrough are not due to any disagreement with the Company or the Board.

Item 8.01 Other Events.

On August 2, 2012, the Company entered into a settlement with Opportunity whereby Opportunity agreed to execute a stipulation dismissing the Annual Meeting Litigation and, pursuant to the settlement, has withdrawn its Special Meeting Request. In connection with the settlement, the Company agreed to pay Opportunity for reasonable and documented costs and expenses incurred in connection with the Annual Meeting Litigation and Special Meeting Request, including attorneys' fees and expenses related to Opportunity's proxy solicitation of shareholders.