Larry smith briefing

Pre-Paid Legal Services, Inc.

and subsidiariesServing Families Since 1972

Areas to Evaluate

The Company

The Product

The Need

The Compensation

The Timing

Harland C. StonecipherFounder & Chairman

THE COMPANYProven Track Record

Founded in 1972

Publicly traded since 1976 (NYSE:PPD)

Began with a serious auto accident

THE COMPANY3rd Party Validation

Pre-Paid Legal

Services, Inc. was most recently

featured in Forbes

Nov 8, 2010

Why Pre-Paid Legal?• The name Pre-Paid Legal always provokes

interesting thoughts……like

• “I’ve never used an attorney, so why do I need this?”• “I’ve never been in trouble”

• “Why would I pre-pay for something I don't think I’ll ever use?

• “My family member is an attorney, so I’ll call them if I need one!?

• After all, how many times have YOU used an attorney in the last 12 months?

THE PRODUCTWhat Do We Do

Simply put a Pre-Paid Legal membership does for attorney and legal bills what medical insurance does for doctor and hospital bills.

Preventive Legal Services

Phone consultation is available to you and your covered family members on an unlimited number of matters.

When your Provider Attorney feels it is in your best interest, a letter will be written or a phone call will be made on an unlimited number of personal issues for you and your family.

A letter or phone call per subject matter is available if advisable in your Provider Law Firm’s sole discretion.

These services are available to you immediately when you enroll!

Preventive Legal Services

When you are faced with signing a contract, have your Provider Law Firm review it first! An unlimited number of personal contracts and documents that are 10 pages or less in length will be reviewed as a part of your membership.

Standard Will preparation and yearly updates are included for the member. Your spouse may have their Will prepared for no additional fee if requested within 60 days of purchasing the membership. After that time, your spouse may have their Will prepared, along with other covered family members for an additional $20.

These services are available to you immediately when you enroll!

Motor Vehicle Legal Services

Call your Provider Law Firm immediately when you receive a moving traffic ticket so proper assistance can be arranged.

Representation for certain motor vehicle related criminal charges

Up to 2.5 hours for help with driver’s license assistance and/or personal injury/property damage collection assistance of $2,000 or less.

These services are available just 15 days after enrollment!

Representation under this benefit is provided when the member has a valid driver’s license and is driving a properly licensed motor vehicle. Pre-existing conditions, charges of DUI/DWI related matters, drug-related matters, hit-and-run related charges, leaving the scene of an accident, and unmeritorious cases are excluded. Commercial vehicles with more than two axles are not covered. Driver’s license and personal injury/property damage recovery assistance is limited to two and one-half (2-1/2) hours of lawyer time per claim, does not include the filing of a lawsuit, and excludes personal injury and property claims exceeding $2,000.

Trial Defense ServicesIf you or your spouse face a civil suit or job-related criminal charges, your Provider Law Firm will provide up to 75 hours of service - at no added cost - to defend you. Additional pre-trial and trial services are available at a 25% discount from the Firm’s standard hourly rate.

The longer you keep your membership, the more valuable it becomes! 1st year - 75 hours (17.5 pretrial/57.5 trial)

2nd year - 140 hours (23 pretrial/117 trial)

3rd year - 205 hours (28.5 pretrial/176.5 trial)

4th year - 270 hours (34 pretrial/236 trial)

5th year - 335 hours (39.5 pretrial/295.5 trial)

Matters not covered under Plan benefits and which you may use your preferred member rate for services are: Dependents (covers member and spouse only), Bankruptcy, divorce, separation, annulment, child custody or other divorce or domestic-related matters, Charges of DUI/DWI, drug-related matters (whether prescribed or not), hit-and-run, leaving the scene of an accident, and civil or criminal charges occurring as a result of operating a commercial vehicle with more than two axles, Plan benefits apply only to charges of job-related criminal actions. Benefits do not cover instances in which you are named in a civil lawsuit or have criminal charges filed against you because you are listed as an owner, manager or associate of the business and you had no direct involvement with the act or matter that gave rise to the lawsuit or criminal charge, Lawsuits filed because of something that occurred prior to your enrollment or because of conditions that were reasonably anticipated or foreseeable prior to your enrollment (even if the lawsuit is filed after you become a member), Class actions, interventions or amicus curiae filings in which the covered member is a party (or potential party), Garnishment, attachment or any other appeal, Claims, defenses, or legal positions which your Provider Law Firm determines will not prevail in court or are frivolous or without merit.

IRS Audit Legal Services One hour of consultation, advice or assistance when you are notified of an audit by the IRS

An additional 2.5 hours if a settlement is not achieved within 30 days

If your case goes to court, you’ll receive 46.5 hours of your Provider Law Firm’s services

Coverage for this service begins with the tax return due April 15 of the year you enroll

Coverage includes the return due on April 15th of the first membership year. Does not cover garnishment, attachment or any other appeal, class actions, interventions or amicus curiae filings, charges of tax fraud or income tax evasions, Trust returns, business and/or corporate tax returns, payroll and information returns, partnerships, corporation returns or portions thereof that are included in the member’s tax returns, pre-existing conditions—where member has been notified by the IRS prior to enrollment, and services rendered by an enrolled agent.

25% Preferred Member Discount

Your Provider Law Firm will render assistance at the preferred rate for legal services not specifically covered by the benefits of the membership. Even pre-existing matters can be covered under this portion of the plan!

If you own a business and wish representation for the entity, you will receive a preferred rate of 25% less the Provider Law Firm’s corporate hourly rate*.

Five business days advance notice is required for preparation in court representation.

*Hourly rates for Referral Lawyers and court appearances may vary.

The information contained in this material is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the coverage you have selected. Please remember that only the plan contract can give actual terms, coverage, amounts, conditions, and exclusions. Check benefit availability in your state/province.

Legal ShieldThe Legal Shield gives you and your family 24-hour access to legal consultation for the following situations:

If you are detained by a law enforcement officer If you are injured in an accident If authorities attempt to remove your child from your home or custody If you are served with a warrant

To contact your Provider Law Firm, simply call the toll-free number on your Legal Shield card. You will reach the Pre-Paid Legal offices, who will then put you in contact with your Provider Law Firm, so you can consult with an attorney. It’s that easy.

The Legal Shield membership will not apply if the member is alleged to be under the influence of or impaired by alcohol, intoxicants, controlled substances, chemicals or medicines, whether prescribed or not; the member is alleged to be involved with domestic violence or stalking; and/or assistance in making, posting, or obtaining bond, bail or other security required for release. Check benefit availability in your state.

You are more than twice as likely to be in court than you are to be hospitalized!* American Hospital Association, 2007 Annual Survey ** Examining the Work of State Courts, Court Statistics Project 2007

100 M

75 M

50 M

25 M

0

37Million

102Million

Hospitalizationsin 2007*

Court Filingsin 2007**

THE NEEDIt’s Not If, But When

Why Don’t People Call Attorneys

They are intimidated by lawyers. They don’t know who to call. They believe it would cost too much.

The Main Reasons People Don’t Seek Legal Counsel:

That’s Why The Most Common Responses to a Legal Dispute Are to:

Ignore the problem Try to handle it personally

After all, if YOU were an attorney, how much would you charge per month for all of this?

1. The Member

2. The Member’s Spouse

3. Never Married Dependent Children

under 21 living at Home

4. Full Time College Students - never married, dependent children

5. Physically or mentally challenged child

living at home

Who Is Covered?The Pre-Paid Legal membership covers:

Five Common Types of Identity Theft

Identity Theft is not just about credit cards! Identity theft is an international crime and access to an attorney may be critical.

Drivers License

Medical FinancialSocial Security

Character/ Criminal

Credit Report and Continuous Monitoring You will receive an up-to-date credit report

through Experian at no additional charge with your membership.

Your credit files will be regularly monitored. Suspicious activity will be brought to your attention, providing you with early detection.

You’ll receive prompt notice if any new accounts are opened in your name...

or if derogatory notations are added to your credit report.

Restoration ServicesIf your identity is stolen, you need more than just information about how to restore your name and credit rating. As an Identity Theft ShieldSM member you can rest easy knowing experienced professionals are working for you!

Fraud alert notifications will be sent on your behalf and applicable follow up will be done with affected agencies and institutions.

Proactive searches of applicable local and national databases will be made on your behalf to look for information you may not have known about.

Identity Restoration will not apply if the identity theft is the result of a dishonest, criminal, malicious, or fraudulent act you, your spouse, or your child participated in, directed, or had knowledge of. Restoration services will not be provided for a known stolen identity event that occurred prior to enrollment date. You must be an active member to receive restoration services. Services provided do not cover financial losses arising from the identity theft. A signed limited power of attorney must be provided to Kroll when an Identity Theft Restoration case is opened in order for Kroll to work on your behalf and/or provide the Proactive Database Searches listed. A stolen identity event does not include the theft or unauthorized or illegal use of your business name, d/b/a, or any other method of identifying your business activity.

Safeguard for Minors

• Children under the age of 18 have a much higher risk of identity theft than is commonly realized. Thieves target them because the child’s information may be used for years without discovery … until the minor is old enough to establish credit.

• Education, early detection, and expert consultation make for a powerful package of tools to minimize this risk.

• Up to four minor children can be enrolled for monitoring to detect existing credit files and it will cost the member only $1 more per month per family.

• All dependent children up to 18 are covered for consultation and restoration.

How Much Will Peaceof Mind Cost?

With the Pre-Paid Legal Life Events Legal Plan you will receive all these benefits for just $26.00 or less per month! And the Identity Theft Shield can be added for an additional $9.95 per month.

$35.95 per month!

That’s less than the price of a bottle of water a day. Add $1 for Minors

Our Business!

“When people see our product and understand the power of it, not only do they want to become a member, they want to become an associate!

People Helping People ~The Mission: Equal Justice Under Law!

Harland C StonecipherChairman & Founder

Advanced Commissions - $35.95

•New Associates will receive $34.57 immediately after their first member enrolls, and the additional $69.13 will be paid out when the New

Associate Fast Start Qualifies. (See next slide)

($26.00 PPL Family Plan + $9.95 Identity Theft Shield + $10 Set Up Fee)

252.35 44.94

207.41

172.84

138.27

103.70

34.57

34.57

34.57

Team OverrideAdvance

Personal Sales

Advance

Senior Associate Recruit 1 Fast Start Associate & Enroll 3

Members OR Enroll 5 Members in 45 days

Manager3 Sr. Associate Teams or 100 Organizational

Memberships

Director3 Manager Team or 250 Org Memberships

Executive Director(Monthly Qualification)

Associate Welcome!

-

Commission amounts shown represent advances. If a membership cancels during the advance period, you will be charged back against future commission advances.

You FSQ and Advance to Sr Associate by:

You Earn $311(OR)Based on the $35.95 plan

45 Day Fast $tart Qualification Incentive

Enroll Member$103.70

Enroll Member and F$ Associate $103.70

You

Enroll Member$103.70

$34.57 Advanced Until You Complete the Fast $tart Qualification

EnrollMember$69.70

You Earn $348.50Based on the $35.95 plan

$34.57 Advanced Until You Complete the Fast $tart Qualification

You FSQ and Advance to Associate by:You

EnrollMember$69.70

EnrollMember$69.70

EnrollMember$69.70

EnrollMember$69.70

30 Day Fast $tart Qualification Incentive

No Time, No Problem!Let the tools do the work for you!

Hand Outs Brochures DVDs and CDs Mail Outs Calls Recordings Website Third-party validations

When people buyour service, we get paid!

Pre-Paid Legal Pays You Every Day

Commissions are paid daily

by direct deposit!

Player’s Club

The program requires additional requirements to be met. Review the Player’s Club flier for full details regarding this program.

Qualify for the Player’s Club monthly and your car bonus can range from $300 to $500!

Success StoriesNow, it is time to show you how Pre-Paid Legal really works. We’re going to share with you real stories from real people who have been helped either by the membership, the business opportunity or both.

Your Business!Your Investment Package!

• Associate Agreements• Membership Applications• Product Brochures• CD’s• DVD’s• 4 Hour Classroom Fast Start Course• Three Months Website Service• Three Months Televox Broadcast

• No Annual Renewal Fees• Marketing Support of Corporate Office• Customer Service Support• Provider Law Firm Network• Identity Theft Provider System

Your Business!Your Investment Package!

$249!

Currently: $149!

Earn $311-$518 in 45 days or LESS!

Timing Is KeyHistory shows that when an industry hits a 2% market penetration, critical mass can be achieved.

THE GROWTH OF HMO’S

• It took 10 Years for HMO’s to reach 2% market penetration•After that, it took just seven more years to reach 52% market penetration

60%

50%

40%

30%

20%

10%

0%1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

TIMING IN YOUR LIFE!• 5 Years ago, what were you doing?• What are you doing today?• How does your future look? Retirement?• Do you think you could find a few people who would

have an interest in obtaining financial security, working only part time?

• Do you think they could do the same thing? That’s Leveraged Income!

• Over the next 5 years, do you think Identity Theft will still be around?

• Do you think Attorneys will drop their rate to $20 per hour?

Become a Member

Become an Associate

Attend Fast Start Training

Action Steps

Thank you for your time.