The document summarizes Juristec, a company that automates debt collection litigation to efficiently manage high volumes of bad debt. It compares Juristec's solutions to traditional law firms and collection agencies, highlighting how Juristec can collect 20-30% of bad debt through increased litigation of small and late-stage debts. Appendices provide context on rising consumer debt and delinquency rates, demonstrating increased need for effective collection solutions.

1. Debt Collections
Legal Solutions
5383 South 900 East | Suite 103 | Salt Lake City, UT 84117
(801) 361-0502 | www.juristec.com

2. Table of Contents
• Juristec Overview
– Comparison to Traditional Solutions
– Value Proposition
– Proven Results
– Why Juristec?
• Appendix A: Market Direction
– Increase in Debt to Household Income
– Increase in Delinquency Rates
– Increase in Debt Write-offs
– Debt Collection Industry
• Appendix B: Juristec Details
– Juristec Technology
– Juristec Features
– Security & Confidentiality
– Juristec Tenets of Excellence
– Management Team
– Frequently Asked Questions
2

3. Executive Summary
• Juristec automates the process of collection litigation to efficiently
and cost effectively manage high volumes of bad debt.
• Our goal is to provide solutions for debt that is currently not being
effectively collected including late-stage and small-balance bad
debt.
• Our focus is on the needs of our clients and how we can enable
them to capture value lost through bad debt.
• Our team has tremendous experience in collection litigation, strategy
planning and consulting, and technology implementation for ASP
services.
• Our mission is to provide best-in-class technology and services that
will enable clients to better manage and collect their bad debt.
3

4. Advantage in Debt Collection Over Traditional
Law Firms
Clients using Juristec are fundamentally better at collecting on bad debt because clients can
collect on “affordable” debt.
High-balance debtors have a greater likelihood of
filing for bankruptcy and defaulting on their debt.
Law firms typically settle for what they can get.
High
$50,000
Written
Traditional
Bad Debt Balance
Juristec pushes the cost
Off of each case down
Law Firms making it possible to
(“The Can’ts”) pursue low-balance
debtors that traditional
law firms can not pursue
$5,000
Clients Using Juristec Low-balance debtors
have a greater capacity
to pay off their debt and
can make manageable
“The Won’ts” installment payment
rather than defaulting.
$500
Low
Low Ability To Pay High
4

5. Advantage in Debt Collection Over Traditional
Collection Firms
Current solutions for collecting late-stage debt are inadequate. Juristec significantly improves
the effectiveness of collecting older debts.
35%**
C
A) Industry average for
collections is 14% (ACA
international).
20% A
B) The probability of collecting
late stage debt is 72-87%
less than collecting at an
earlier stage.
10% 25%
B
C) With Juristec
15% Clients/Attorneys utilize the
effectiveness of litigation
4% with the high volumes of
collection agencies.
Collection Collection Late-Stage/Secondary Placement
Industry Industry Collection Through
Total Late-Stage/ Juristec*
Early Stage/Primary Secondary Placement
*Based on five-year average of Peterson & Simpson’s debt collection law practice. Cases received by Peterson & Simpson are late-
stage (8-14 months) and low-balance ($1,000-$1,250 average) and are focused mainly in Health Care.
**Average reaches 35% when excluding skips.
5

6. Complaints to the FTC
The FTC continues to receive more complaints about third-party debt collectors than about any other
single industry. The number of these complaints has been increasing steadily for a number of years,
reaching nearly 70,000 in 2006.
- Deborah Platt Majoras, Chairman, Federal Trade Commission
80
Complaints to the FTC, In Thousands
70
60 3rd-Party
50 In-House
40
30
20
10
0
05
06
01
02
03
04
99
00
20
20
20
20
20
20
19
20
Nilson Report (835, 857, 880)
6

7. Comparisons
Collection Agency Traditional Law Firm Client Using Juristec
Collection Calls, Demand Letters (non Demand Letters, Litigation, Demand Letters, Litigation,
Capabilities legal), Credit Checks Garnishment, Bench Warrants Garnishment, Bench Warrants
Regulations Tightly regulated by Partially regulated by FDCPA Partially regulated by FDCPA
FDCPA but has many more options but has many more options
through litigation through litigation
Obstacles Under FDCPA, collectors Bankruptcy Bankruptcy
can no longer contact if
debtor requests no contact.
Does not take legal action.
Contingency Fees 50% 33-50% 25-40%*
Collection Stage Early: 60-180 days Any Any (Typically late-stage: 180+
days)
Case Load 10,000-25,000 per year 200-500 per year 10,000-25,000 per year
Average Case Size 1,000 5,000 1,000
% Collected 10-15% 20-30% 20-30%
*By increasing volume of cases to a law practice and providing the means to process
them, client can better negotiate legal fees with attorney.
7

8. Value Proposition
Juristec adds value to clients, attorneys and debtors. Enables clients to maintain a
professional relationship with debtors through litigation.
Client
•Allows client to capture 20-30% more of their bad debt. •Informs client through real-time reports.
•Lowers costs and minimizes losses. •Provides full audit trail of case work and payments.
•Retains control over handling of individual cases. •Enforces client’s procedures and policies.
•Enables the collection of small-balance and late-stage •Extends the statute of limitations allowing client
cases. longer time to collect.
Attorney Debtor
•Includes checks to prevent legal errors, •Permits debtor to pay manageable
malpractice, and missed deadlines. installments without undue cost.
•Increases professionalism and •Allows debtor’s payments and costs
decreases risk of counter suits. to be accurately posted and tracked.
•Allows attorney to handle greater •Reduces Attorney’s fees, for which
caseload. debtor is liable, through efficiency.
•Tracks all money transactions for •Provides due process to debtor
auditing. through court.
•Collates similar cases for efficient work •Allows debtor inquiries to be quickly
distribution. and accurately handled.
•Automates repetitive procedures to
reduce processing costs.
8

9. Legal Process is Complicated
Client In-House collections
contact debtor
Payments made. Debtor is encouraged to
pay off debt or set up payment plan at any
Client can forgive the time during the process. Attorneys can move
Debts not paid sent to
Debtor’s debt at any case along without undue cost or loss of
legal team
time in the process efficiency if payments are missed
Compiles cases and Debtor receives Debtor
generates batch of demand letter
demand letters.
Demand letters sent
Debtor files answer
Payment Received with firm/court.
Summons and
Complaint are Supplemental
delivered by legal proceedings:
officer to debtor and is Summary Judgment Judgment extends
filed with the court. Judgment statute of limitations
from 4 to 8 years.
Default Judgment Attorney can garnish
Firm files with court. wages/bank account if
(Debtor doesn’t
Pre-Trial / appear) debtor is non-
Attorney Trial compliant.
Judgments place liens on real property and
Court can prevent debtors from obtaining further
credit.
9

10. Juristec is the Solution
Client has access to
Juristec database with all
case information. Database
Client is backed up on a secure
network daily.
Juristec tracks time
intervals and generates
filings for the court.
Attorney has several
Attorney litigation options to obtain
judgment.
Juristec tracks payment
and creates ability for
periodic payment from
debtors.
Debtor
Juristec creates error-free
pleadings completed in
one-step process. Cases
can be sent electronically
to the court.
Juristec updates case
Courts proceeding quickly and
easily, assigns ticklers for
further proceedings.
10

11. Proven Results
When demand letters are no longer effective, litigation should begin.
Demand Letter Pleadings Trial/Judgment Post-Judgment
Juristec automates Most responsive Court orders debtor Attorneys may
all litigation debtors settle or to pay. Attorney garnish wages or
procedures, tracks make payment can question debtor place liens on
deadlines and arrangements about personal property to compel
payments. before going to finances. debtor to pay.
trial.
Greater Most cases are Judgments can
effectiveness when Legal officer serves ruled in favor of the prevent debtors
demand comes pleadings directly creditor. from obtaining
from an attorney. to the debtor. future credit such
FDCPA prohibits Judgment allows as home/auto
other collectors attorney to take loans.
from personal appropriate action
visits. against the debtor.
43% Collected Pre Judgment* 57% Collected Post Judgment
*Based on five year average of Peterson & Simpson’s debt collection practice
11

12. Proven Results – Case Study
Juristec ASP is a proven technology that has been used to collect over $75 million in late-stage
collections.
Peterson & Simpson was a small, but very effective legal practice with two
attorneys, one paralegal, a few administrative assistants and part-time file Total Remittances:
clerks. $300 Million
The firm received 500 new cases per week with an average case size around
$1,000, with $500 as the minimum. Cases were received between 8 and 14
months past due after several collection attempts had been made.
Each case was prosecuted to judgment and a debtor's exam unless paid or
settled. Cases that warranted it were garnished. The office staff created a Collected:
Collected:
series of pleadings and letters with minimal input and without resorting to word $75 Million
$75 Million
processing, which provided a complete audit trail of pleadings and
transactions. The firm allowed debtors to make installment payments; the
program calculated a per diem interest rate. The firm was able to move
forward on those who defaulted in payments without any loss of efficiency.
The platform allowed the firm to maintain a high level of professionalism in
their practice, enforcing the office standard forms, eliminating human error,
and automatically calculating interest, costs, attorney fees and balances.
Judges appreciated the firm’s pleadings because of this efficiency. Collections for Peterson &
Simpson, Attorneys at Law
The client received monthly reports including payments, costs, and important
status changes. Development of the first electronic filing system with the
Sandy Court in Utah increased ease of filing cases. The firm collected 20-
30% of outstanding debt per year, double the average of traditional agencies.
12

13. Proven Results
“There is a unique power in utilizing the court; however, it’s certainly fair and effective to use a court to
collect a debt which has not been paid after years of debt collection efforts in many cases.”
- Adam Olshan, Past President of the National Association of Retail Collection Attorneys
A) Most traditional collection attorneys C
are not able to handle large volumes
nor low-balance debt. Because A
high-balance debt is often difficult for 20% B
debtors to manage financially, Collection
Volume
attorneys face less actual collections
and more bankruptcies.
25%
B) Average collection for industry 10% 20%
players is approximately 15% (ACA, 15%
2005).
C) Only with Juristec can
clients/attorneys utilize the
effectiveness of litigation with the Current Collection With
Attorneys Industry Juristec*
high volume practice of collection
agencies.
*Based on five-year average of Peterson & Simpson’s debt collection practice. Cases received by
Peterson & Simpson are late-stage (8-14 month) and low-balance ($1,000 average).
13

14. Why Juristec?
Juristec provides both technology and services that allow clients to cost effectively litigate on
a high volume of low-balance and late-stage bad debts while maintaining control of the case.
Juristec enables its clients to:
– Capture revenue that has been written off to bad debt by the
client.
– Focus on collecting a higher volume of small-balance and
late-stage debt.
– Collect 20-30% of qualified delinquent debt through
litigation.
– Increase the ease and professionalism of their debt
collection process.
– Maintain oversight of the collection process. Allows client
to have adequate communication with customers and
prevents over-zealous collection practices.
– Track and document each case and efforts for collection.
14

15. Table of Contents
• Juristec Overview
– Comparison to Traditional Solutions
– Value Proposition
– Proven Results
– Why Juristec?
• Appendix A: Market Direction
– Increase in Debt to Household Income
– Increase in Delinquency Rates
– Increase in Debt Write-offs
– Debt Collection Industry
• Appendix B: Juristec Details
– Juristec Technology
– Juristec Features
– Security & Confidentiality
– Juristec Tenets of Excellence
– Management Team
– Frequently Asked Questions
15

16. Outstanding debt to Income
“The household sector is much more exposed to consumer credit than it has
been for a long time; in fact, than it ever has been. We are at a record level
now of the ratio of total debt outstanding to household income.
- Bill Hampel, Senior Vice President, Credit Union National Association
16

17. Debt to Household Income
Innovation in the financial services marketplace has given consumers many more choices, including
an array of options for paying for goods and services, and these innovations, of course, have an
impact on the willingness and ability of consumers to borrow money.
20.00
18.00
16.00
14.00
12.00
10.00
Mortgage
8.00
6.00
4.00
Consumer
2.00
-
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Q
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80
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92
19
Federal Reserve Flow of Funds, Commerce Department
17

18. Debt to Household Income
“If all of the debt is held by people with really high incomes, it’s much less of a concern than if it tends
to be concentrated in lower income groups.”
Bill Hampel, Senior Vice President, Credit Union National Association
Income All Household Debt
45% 42.70%
40%
35% 32.40%
30%
23.90%
25%
19.50%
20% 18.20%
14.90% 15.10%
15% 12.30%
10% 7.40% 7.40%
5% 3.10% 3.30%
0%
1st Quintile 2nd Quintile 3rd Quintile 4th Quintile Next 10% Top 10%
Federal Reserve, 2004 Survey of Consumer Finances
18

19. 19
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
85
Q
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Q
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All
19 3
93
Q
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Q
19 1
Business
94
Q
19 4
95
Q
19 3
96
Q
19 2
Residential
97
Q
19 1
97
Q
19 4
98
Q
19 3
99
Credit Cards
Q
20 2
00
Q
20 1
00
Q
20 4
01
Q
20 3
02
Other Consumer
Q
20 2
03
Q
20 1
03
Q
20 4
04
Q
20 3
05
Q
20 2
06
Q
20 1
06
Q
20 4
07
Q
Commercial Banks Delinquency Rates
20 3
08
Q
2

20. 19
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
85
1 9 Q1
85
20
1 9 Q3
86
1 9 Q1
86
1 9 Q3
87
1 9 Q1
87
1 9 Q3
88
1 9 Q1
88
1 9 Q3
89
1 9 Q1
89
1 9 Q3
90
1 9 Q1
90
1 9 Q3
91
1 9 Q1
The Federal Reserve Board
91
1 9 Q3
92
1 9 Q1
92
1 9 Q3
93
All
1 9 Q1
93
1 9 Q3
94
1 9 Q1
94
1 9 Q3
Business
95
1 9 Q1
95
1 9 Q3
96
1 9 Q1
96
1 9 Q3
Residential
97
1 9 Q1
97
1 9 Q3
98
1 9 Q1
98
1 9 Q3
Credit Cards
99
1 9 Q1
99
2 0 Q3
00
2 0 Q1
00
2 0 Q3
01
2 0 Q1
Other Consumer
01
2 0 Q3
02
2 0 Q1
02
2 0 Q3
03
2 0 Q1
03
2 0 Q3
04
2 0 Q1
04
2 0 Q3
05
2 0 Q1
05
2 0 Q3
06
2 0 Q1
06
2 0 Q3
07
2 0 Q1
Commercial Bank Charge-offs Rates
07
2 0 Q3
08
Q1

21. Commercial Bank Charge-Offs
25,000
In Millions $$
Q2 ‘08: $20,461,000,000
20,000
15,000
10,000
5,000
-
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2
Q
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85
85
86
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90
91
91
92
93
94
94
95
96
97
97
98
99
00
00
01
02
03
03
04
05
06
06
07
08
19
(5,000)
All Commercial / Industrial Real Estate Consumer Residential Credit Cards Other Commercial Real Estate
The Federal Reserve Board
21

22. Debt Collection
“Debt collection plays a vitally important role in this system of consumer credit.
Collecting on a debt, of course, benefits individual creditors who are repaid
money they're owed, but it also has much broader economic benefits.
If consumers don't repay their debts, then sellers will seek to increase the
prices of the goods and services to those of us who are paying to cover the
cost, and if consumers don't repay their debts, creditors will be less willing in
the end to lend money to consumers, and that will decrease our future
purchases.
So, obviously debt collection plays a key role in keeping prices low and
ensuring that consumer credit remains widely available across sectors of our
economy.”
- Deborah Platt Majoras, Chairman, Federal Trade Commission
22

23. Table of Contents
• Juristec Overview
– Comparison to Traditional Solutions
– Value Proposition
– Proven Results
– Why Juristec?
• Appendix A: Market Direction
– Increase in Debt to Household Income
– Increase in Delinquency Rates
– Increase in Debt Write-offs
– Debt Collection Industry
• Appendix B: Juristec Details
– Juristec Technology
– Juristec Features
– Security & Confidentiality
– Juristec Tenets of Excellence
– Management Team
– Frequently Asked Questions
23

24. Juristec Technology
Juristec Utilizes Cutting-Edge Technology to Provide Greater Security and Flexibility
•Oracle has proven to be the most reliable and most
secure database in the industry. Used by more than
50% of the top Fortune 100 companies and the
American Hospital Association.
•Combining Sun's Enterprise Servers with the latest
Solaris Operating Environment delivers enhanced
security, manageability and performance. Sun™
Open Net Environment (Sun ONE) is based on
Health Insurance Portability and Accountability Act
(HIPAA) regulations regarding encryption for privacy
of patient records.
•The Java™ platform is the foundation for networked
and Web services. Java's "run anywhere" technology
provides a highly flexible and highly scalable
solution.
•Intellivex: Through our Security Solutions Co-
location Provider, Juristec provides a veritable
fortress for our clients protected data.
24

25. Juristec Features
Juristec is a feature-rich application that allows attorneys and clients to manage the process of
bad debt litigation.
SYSTEM FEATURES BENEFITS Juristec’s provides:
Case Management Stores case work and allows instantaneous •Security and reliability
tracking and manipulation of cases on screen. •Increased professionalism and decreased errors
of legal documents and pleadings
Debtor Management/Cost and Tracks payment and creates ability for
Payment Management installment payments from debtors. •Flexibility to handle high volume of cases with
smaller debts
•Easy and rapid implementation with low
Easy-to-use, Multi-User Legal/non-legal staff can create error-free
maintenance
Access pleadings and updates though a secure
access. •Low-scale investment in technology or in-staff
training
Court/Judge Database Tracks information on judges and courts and
matches judges to cases •One-step pleadings processing
•Real-time operating statistics and customizable
Automated Transaction Full record of all cases, payments and per case reporting
Archival and Reporting costs for auditing and reporting to
attorney/client •Auditable payment and transaction tracking
One-step pleadings
•Seamless integration on any operating system
Error-free summons, summary judgments, etc.
completed in one step process •Secure and automated data backup
XML Court Filing Court cases can be directly filed to the
courts over the Internet
25

26. Security & Confidentiality
Juristec facilitates compliance between the Client and Attorneys to protect customer
information.
• Administrative Procedures to Guard • Technical Security Service to Guard Data
Data Integrity, Confidentiality and Integrity, Confidentiality and Availability
Availability. – Role/User based access
– Virus Checking – Data Authentication
– Security Testing – Automatic Log Off
– Awareness Training – Audit Trail
– Incident Reporting
• Physical Safeguards to Guard Data • Technical Security Mechanisms to guard
Integrity, Confidentiality and against Unauthorized Access to Data
Availability Transmitted over a network.
– Access/Biometric Security Controls – Encryption Technology
– UPS (Uninterruptible Power Supply) – Virtual Private Networks
– Protected data backup and storage – Dedicated Firewall
– Data and equipment monitoring – Unique User Names and Passwords
26

27. Juristec Tenets of Excellence
Juristec is an Application Service Provider (ASP) that provides technology to both Clients and
Attorneys for the purpose of collecting bad debt through litigation.
BEST-IN-CLASS SIMPLIFIES INCREASES GREATER SECURITY
TECHNOLOGY COLLECTIONS PROFESSIONALISM & SUPPORT
•Juristec provides a full •Provides document •Enforces Client’s •High-level encryption
technology solution for automation and one-step procedures and policies. standards
collection litigation. pleadings, which speeds
the litigation process, •Increases communication •Secure and automated
•Manages all technical eliminates errors and
reduces costs. between Client and data backup.
aspects including data and Attorney.
database management, •Easy and rapid
•XML/EDI standards to
firewall protection and •Provides full audit trail of implementation with low
import/export cases
encryption. Debtor payments maintenance.
through a secure Web site.
•Provides flexibility to •Includes checks to •Real-time operating
•Attorneys work cases to
handle high volume of prevent legal errors, statistics and
collection and Clients
cases with smaller debts. malpractice, and missed customizable reporting.
monitor the progression.
deadlines
•Proven technology •24X7X365 monitoring
•Payment and interest
currently in operation for 15 •Greater Client control of and comprehensive
tracking system allows
years managing 20-30,000 individual cases. contingency
Debtors to make
cases per year. infrastructure.
installment payments.
27

28. Management Team
Lawrence R. Peterson – Founder, President
• Founding Partner of Peterson & Simpson Attorneys at Law
• 30-year member of Utah State Bar Association
• Member of the Utah Collections Bar Association
• Certified Solaris/Sun Systems Administrator
• Juris Doctorate from University of Utah
Brent Peterson – Director of Business Development
• Manager for the Cicero Group
• Manager at Bond Street Limited, LLC
• Chief Analyst for Blackford Capital, LLC
• B.A. from Brigham Young University, degree in Economics
28

29. Frequently Asked Questions
Will we be subject to counter-lawsuits if we litigate on our bad debt?
Juristec provides greater professionalism and eliminates errors from prosecuting each case. Client
also has the ability to filter out any cases they feel may be in question.
What about those individuals that don’t have the ability to pay for economic reasons?
Those individuals who do not have the ability to pay are virtually unaffected by the process because
they typically do not have assets that can be placed under lien. Often times they can qualify for
charitable contributions by the creditor.
Why aren’t collection agencies able to collect as much as we can with Juristec?
Consumers know that collection agencies tend to make idle threats in suing the consumer but never
do, and therefore, collection letters are typically ignored. With Juristec, consumers will receive a
demand letter from an attorney and will be summoned to court if payment arrangements are not met.
Consumers are much more compelled to pay when faced with a lawsuit and can be forced to pay
when judgment is rendered
If we use Juristec, will we stop using our collection agency?
Juristec is typically utilized for late-stage (greater that 180 days) consumer debt. Most collection
agencies see their results fall the longer the debt is outstanding.
29