DEMOCRATIZING LAW May 12, 2016 PRIVATE AND CONFIDENTIAL. DO NOT SHARE WITHOUT PERMISSION.

THE LEGAL LANDSCAPE

SHINING A LIGHT ON THE MIDDLE 320m Americans 115m Households 84% Solos and small firms largely service the middle class Government and non-profits largely service Americans below the poverty line 15% Big Law largely services the top 1% 1%

ACCESS IS ONLY GETTING WORSE Something is amiss… DENSITY OF LAWYERS U.S. lawyer population in select yearsCalifornians using lawyers for divorce INCREASING PRO SE Density more than doubled over 30 years 1971: 1 lawyer / 572 Americans 2000: 1 lawyer / 264 Americans Pro Se jumps 66x-80x Source: American Bar Foundation, National Center for State Courts 2006, Drew Swank “the Pro Se Phenomenon”

A TALE OF TWO WORLDS Representative economics: Big Law and Small Law Top 200 Firms Solo $1.55M (Amlaw 100) 1 $701K (Amlaw 200) 1 1. American Lawyer 2014 data for Am Law 100; American Lawyer 2013 data for Am Law Feb 2012 NALP survey on billable hours; assumes 46 hour week 3. Assumes 25% Overhead tax returns of 354k solos 5. Illustrative assumption Billable hourly rates $1.1M$451 2 $ % Big Law Small Law Law firms20056% Lawyers123, ,000 Revenues / Law firm$500M$61K Revenues / Lawyer$812K$61K 3 7.5% Partner profits$1.1M$49K 4 4.5%

THE ADVANTAGES OF SCALE

SOLOS ARE INHERENTLY INEFFICIENT Source: Feb 2012 NALP survey on billable hours firms 701+, Lexis Nexis Billable Hour Survey Percentage of Unbilled Hours The unbilled hour includes: Marketing Prospecting Bookkeeping Collections Administration Ongoing training The solo inherently has less time to focus on the practice of law.

THE BILLABLE HOUR MACHINE VS UNUTILIZED CAPACITY Billable Hourly Rates$451$200 5 Billable Hours/Year Top 200 Firms Solo 1. Feb 2012 NALP survey on billable hours, firms Billable hour equivalents = Gross revenues/lawyer divided by billable hourly rate, or $61,250/200 Big Law Small Law

AVERAGE SOLO IS HAMPERED BY FEW OPPORTUNITIES TO DEVELOP CRAFT Source: Feb 2012 NALP survey on billable hours firms 701+, Billable hour equivalents = Gross revenues/lawyer divided by billable hourly rate. Big Law lawyers achieve 10k billable hours in an average of 5.6 years Associates quickly build expertise Work is generally specialized in a single practice area A solo can take 30 years+ to get to 10k billable hours Generalists further handicapped by hours spread over multiple practice areas If lawyers could be given sufficient volume in specialized areas, can we solve for both efficiency and quality? Years to 10k billable hours

DEMOCRATIZING LAW

Providing technology-enabled lawyers dedicated to you Leverages technology Consistency of quality Efficiency Convenient Collaboration Matching the correct human capital to the task at hand Lawyer / Paralegal Fulfillment specialists Technology both replaces and reduces labor Built for your needs, not the managing partner Meeting you where you are Communicating in plain English Flat fee, transparent pricing Customers keep lawyers accountable Modern payment solutions ACCESS REQUIRES MORE THAN TECHNOLOGY

SITUATION RECAP 1 NALP 2006 reports 1800 hours worked with firms fewer than 50 employees vs 1880 in firms of 701+ Highly inefficient building block Low utilization Quality hampered by lack of reps 30+ years of diminishing real income Poor fit for the billable hour THE AVERAGE SOLO Most efficient building block High utilization 1 High expertise THE BOUTIQUE LAW FIRM

WHAT IS THE PATH FORWARD? OUR FORMULA We drive Efficiency, Quality, and Value by delivering high volume in specific practice areas to boutique law firms through our platform of people and technology. THE LEGAL PLAN We offer legal consultations (NPS 70+) for a a price that lawyers may charge for a single hour. We have delivered over 200k half hour consultations to small businesses and families via boutique law firms, leveraging our technology platform which enables attorney matching, online appointment scheduling, and ratings/reviews.

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