2WELCOMEThank you for taking the time to attend our event. In order to create a more comfortable and professional atmosphere, we would like to ask for your cooperation in the following areas:Please turn of all mobile phones and place your pagers onvibrate during the presentation.If you have to use the restroom, please do so before thepresentation begins.If you have to leave the room, you will only be allowedback in during a break in the presentation.Thank you for your cooperation.
3FIVE AREAS TO EVALUATE The Company The Need/Marketplace The Product The CompensationThe Timing
4THE COMPANY THE COMPANY THE COMANY Over 30 Years In Business Began With A Serious Auto AccidentPublic Company Since 1976 (NYSE:PPD)Harland C. StonecipherFounder, Chairman,and CEO
5THE COMPANY Recent News In a recent letter to Founder, Chairman, CEO HarlandStonecipher, Thomas J. Donahue, President/CEO of theUnited States Chamber of Commerce wrote:"I'd like to officially welcome you to the Board ofDirectors of the U.S. Chamber of Commerce." 6/20/03In a recent press release Harry C. Alford, President andCEO of the National Black Chamber of Commerce wasquoted as saying:Pre-Paid Legal Services ". . . number one opportunity . . .immense opportunity in terms of income and badly neededservice."12/04/03 PR Newswire: Pre-Paid Legal Services, Inc. Changing Lifestyles of African Americans
6THE COMPANY THE COMPANY Recent News February 28, 2003 Keynote Speech Notes, RobertKiyosaki, Author and Speaker: Rich Dad Poor Dad"I should have started your business (PPL) before I did my own.”"Yours is the best compensation plan I have EVER seen!”"Wealth potential is technically unlimited here with PPL!”In a recent report by Insurance Letter magazine, HarlandStonecipher was named one of the 100 Most PowerfulPeople in the Insurance Industry in North America 1/18/02
7THE COMPANYPre-Paid Legal Has Been Featured in Many Major PublicationsPre-Paid Legal was most recently featured in the Success from Home magazine.
8THE COMPANY Sales History Our sales history continues to improve as $400$350$300$250$200GROSS REVENUEIN MILLIONS$150$100$196 $255 $303 $350 $361 $386Our sales history continues to improve aswe move up and to the right each year.
993 36 THE NEED/MARKETPLACE You Are More Than Twice As Likely To Be In 93Million36MillionHospitalizationsin 2002*Court Filingsin 2002**You Are More Than Twice As Likely To Be InCourt Than You Are To Be Hospitalized!* Hospital Statistics, American Hospital Association, 2002 Edition ** Examining the Work of State Courts, 2002
10THE NEED/MARKETPLACE Have You Ever... Been Overcharged For A Repair? Tried To Return A Defective Product?Received A Traffic Ticket?Lost A Security Deposit?Been Audited?Signed a Contract?Purchased A Home?Prepared A Will?
11THE NEED/MARKETPLACE The Main Reasons People Don’t Seek Legal Counsel: They Are Intimidated By LawyersThey Don’t Know Who To CallThey Believe It Would Cost Too MuchThe Most Common Responses To A Legal Dispute Are To:Ignore The ProblemTry To Handle It Personally
12THE PRODUCT What Do We Do? Simply put, a Pre-Paid Legal Plan does for attorney and legal bills what medical insurance does for doctor and hospital bills.
13THE PRODUCT Who Is Covered By The Pre-Paid Legal Membership? 1) The Member2) The Member’s Spouse3) Never Married Dependent ChildrenUnder 21 Living At Home4) Dependent Children Under Age 18For Whom The Member Is Legal Guardian5) Full Time College Students Up To Age 23Never Married, Dependent Children6) Physically Or Mentally Challenged ChildLiving At Home
14THE PRODUCT Five Areas of Coverage - Expanded Family Plan 25% PreventiveLegalServicesMotorVehicleLegalServicesTrialDefenseServicesIRS AuditLegal ServicesOtherLegalServices
15THE PRODUCT I. Preventive Legal Services These services are available to you immediately when you enroll!!Phone Consultation on an Unlimited Number of MattersA Letter Written or Phone Call Made on an UnlimitedNumber of Personal Issues for You and Your FamilyAn Unlimited Number of Personal Contracts andDocuments Reviewed Up To 10 Pages EachStandard Will Preparation and Yearly UpdatesIncluded for the Member, Available to Covered FamilyMembers for an Additional $20UNDER TITLE I: A letter or phone call per subject matter is available if advisable in your Provider Attorney’s sole discretion. Nevada residents limited to 50 hours of telephone consultation per year and five personal legal documents reviewed per year. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province.
16THE PRODUCT II. Motor Vehicle Legal Services These services are available just 15 days after enrollment!!Call your Provider Law Firm immediately whenyou receive a moving traffic ticket so properassistance can be arranged.Representation for Certain Motor Vehicle RelatedCriminal ChargesUp to 2.5 hours for help with driver’s licenseassistance and/or personal injury/propertydamage collection assistance of $2,000 or less.UNDER TITLE II: Representation under this benefit is provided as a result of the operation of a properly licensed motor vehicle. Your membership helps you with the cost of representation for moving traffic violations and defense of motor vehicle related criminal charges. You are responsible for any court costs, fines, and related fees. Pre-existing conditions, charges of DUI/DWI, hit and run, drug-related matters, and unmeritorious cases are excluded. Commercial vehicles with more than two axles are not covered. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province.
17THE PRODUCT III. Trial Defense If 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 in force, the more valuable it becomes!1st year - 75 hours (17.5 pretrial hours/57.5 trial hours)2nd year hours (23 hours pretrial/117 trial hours)3rd year hours (28.5 pretrial hours/176.5 trail hours)4th year hours (34 pretrial hours/236 trial hours)5th year hours (39.5 pretrial hours/295.5 trial hours)UNDER TITLE III: Trial Defense Services cover the member and spouse for covered civil actions or for criminal actions which arise out of the performance of the covered person’s employment responsibilities. Not covered are dissolution of marriage, separation, annulment, child custody or other divorce-related matters, bankruptcy, charges of DUI/DWI, or drug-related matters. Acts or matters occurring prior to the membership that give rise to a lawsuit even though the lawsuit may be filled after enrollment are excluded as pre-existing conditions. You may use your 25% discount and the unlimited toll-free consultation benefit for any of these exclusions. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province.
18THE PRODUCT IV. Federal Tax Audit Legal Services Up to 50 hours of Provider Law Firm services once you receive written notice from the IRS that you are being audited or if you are requested to appear at the IRS office regarding your tax return.Coverage for this service begins with the tax return due April 15th of the year you enroll.UNDER TITLE IV: This portion of the plan does not cover audits of Schedule C only, charges of tax fraud or evasion, corporate, trust, or business returns. In New York, these benefits are provided at a reduced fee. Check benefit availability in your state/province.
19THE PRODUCT V. Other Legal Work Your Provider Law Firm will render assistance at a preferred rate which is 25% less the normal hourly rate for legal services not otherwise covered by 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.UNDER TITLE V: 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.
20THE PRODUCT Legal Shield The Legal Shield gives you and your family 24-hour access to legal consultation if you are detained, for only $1 a month - as an additional benefit to your Family Plan membership.To contact your Provider Law Firm, simply call thetoll-free number on your Legal Shield card. You willreach the Pre-Paid Legal offices, who will then putyou in contact with your Provider Law Firm, so youcan consult with an attorney about your detainment.It’s that easy.The Legal Shield service 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 the member is being detained for outstanding warrants. Check benefit availability in your state.
21THE PRODUCT What Do You Think This Would Cost Well, with a Pre-Paid Legal membership you receive all of this for only $26 a month! Isn't your family worth it?That's less than the price of a cup of coffee a day!
22THE PRODUCT Identity Theft Shield "America's fastest Growing Crime" In September 2003, the Federal Trade Commission issued a report on the impact of Identity Theft in the United States and the numbers are alarming:And what’s worse, new records are expected this year.27.3 million victims - last 5 years9.9 Million victims in 2002 alone$53 Billion in losses
23IT’S NO SECRET: Identity Theft is a major problem in America. THE PRODUCTIT’S NO SECRET: Identity Theft is a major problem in America.q Do you hand your credit card to servers at restaurants?q Do you supply personal information over the internet?q Do you keep your Social Security number in your wallet or purse?q Do you leave mail at your home or business for the postal carrier to collect?q Do you throw away unwanted mail with personal information without shredding it first?
24THE PRODUCT PPL Launches the Identity Theft Shield Through Kroll, Inc. Kroll Background America is the world’s leading risk consulting company with more than 30 years of experience.They have been involved in many notable cases:Assisted the Kuwaiti government in investigating SaddamHussein's financial networkResponsible for the restructuring of Enron
25THE PRODUCT Credit Report You’ll receive an up-to-date credit report through Experian at no additional charge with your membership. You will also receive a personal credit score calculated by an independent scoring service and a detailed analysis of that score.Continuous Credit MonitoringYour credit files will be regularly monitored. Suspiciousactivity will be brought to your attention, providing youwith early detection.You’ll receive prompt notice if any new accounts are openedin your name... or if derogatory notations are added to your credit report…
26THE PRODUCT Identity Restoration If your identity is stolen, get more than just information about howto restore your name and credit rating. As an Identity Theft Shield member you can rest easy knowing experienced professionals are working for you!Fraud alert notifications will be sent on your behalf andapplicable follow up will be done with affected agencies andinstitutionsProactive searches of applicable local and national databaseswill be made on your behalf to look for information you maynot have known aboutIdentity 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.
27THE PRODUCT THE PRODUCT How much is this peace of mind going to cost?The value of these services is priceless, but we had to put a price tag on it.Only $9.95 a month, in addition to your PPL membership, both you and your spouse receive the benefits of the Identity Theft Shield.This membership is also available as a stand-alone product for just $12.95/month.
28THE COMPENSATION The Pre-Paid Legal Opportunity is simply telling other people aboutthis legal service and ourbusiness!It’s even easier now, justshare this magazine witheveryone.
29THE COMPENSATION What You Get For Your $249 Investment Fast Start To Success Training Kit - three training CDs,Success Guide and applicationsFast Start To Success Training (FSTS) - four hourCorporate approved training by a Corporate trainerEasy to Duplicate, Proven Systems for SuccessTax Benefits of a Home Based Business
30THE COMPENSATION What You Get For Your $249 Investment A Marketing Services Department to support you andyour Associates' needsAn Accounting Department to pay you and your teamyour commissions, as well as provide your 1099 annuallyA Customer Care Department to handle customers needsCarefully selected, quality law firms to service membersAn Attorney Resources Department with quality controlsystems in place
31THE COMPENSATION Advanced Commissions on the $26 Plan PersonalSales AdvanceTeam OverrideAdvanceExecutive Director182.5032.50All you have to do is collect:Director150.0025.00$ st Month's fee+ $ One Time Enrollment$36.00Manager125.0025.00Senior Associate100.0025.00Associate75.00Residual income begins after the advance period. That meansyou get paid month after month for the life of the membership.Associate level commissions are paid as they are earned. Fast Start to Success recruits will begin receiving commissions and overrides, paid as a 1-year advance, after their third personal sale.
32THE COMPENSATION Advanced Commissions $35.95 $12.95 Executive Director $26 PPL Family Plan +$9.95 Identity Theft Shield$12.95Stand-AloneIdentity Theft ShieldPersonalSales AdvanceTeam OverrideAdvancePersonalSales AdvanceTeam OverrideAdvanceExecutive Director252.3590.9044.9416.19Director207.4134.5774.7112.45Manager172.8434.5762.2612.45Senior Associate138.2734.5749.8112.45Associate103.7137.36Your immediate goal is to sell five combination memberships!$ X 5 = $518.55
33EVERY DAY! WE GET PAID THE COMPENSATION Monday Tuesday Wednesday Pre-Paid Legal Services, Inc.One Pre-Paid WayAda, OklahomaPay to the order ofdollarsCommissionMondayTuesdayWednesdayThursdayFriday
35THE COMPENSATION This Business is Easy Just let the tools do the work for you!Hand OutMail OutCallDVDsWebsiteThird PartyCDsRecordings
36The Timing $15-$25 Already Have Or Can Afford Legal Access Access To Legal Aid or Public DefenderTop10%Bottom10%Pre-Paid Legal Services®, Inc. gives middle income North America equal access to justice.Target Customer$15-$25Billion Market
37THE TIMING The Market Timing Is Perfect 100 % 75 % 50 % 25 % 0 % Less than 2% ofNorth Americans HaveA Pre-Paid LegalServices MembershipApproximately 80%Of Europeans HaveLegal Coverage
38THE TIMING Current Market Penetration Less than 1% penetration 1% to 2%More than 2%Plan not availableThis map illustrates Pre-Paid Legal Services®, Inc.’s current market penetration. Percent of population based on households utilization of 2.5 household members per membership.
39THE TIMINGHistory shows that when an industry hits a 2% market penetration, critical mass can be achieved.THE GROWTH OF HMO’S60 %50 %40 %30 %20 %10 %0 %It took 10 Years for HMO’s to reach 2% market penetrationAfter that, it took just seven more years to reach 52% market penetration
41SPECIAL GUEST SPEAKER! PRE-PAID LEGAL Tonight's event was great, and we appreciate your being here. . .but next week will be even better.SPECIAL GUEST SPEAKER!Be sure to write it down because you definitely want to be here. And, bring people with you!