FULL DESCRIPTION / PPD
Pre-Paid Legal Services, Inc. designs, underwrites and markets legal expense plans. The Company’s life events legal plans (referred to as Memberships) provide for a range of legal services. In many states and provinces, standard plan benefits include preventive legal services, motor vehicle legal defense services, trial defense services, internal revenue service (IRS) audit services and a 25% discount off legal services not specifically covered by the Membership. It also offers Identity Theft Shield (IDT) to new and existing members. The identity theft related benefits include a credit report and related instructional guide, a credit score and related instructional guide, credit report monitoring with daily online and monthly offline notification of any changes in credit information and identity theft restoration services. As of December 31, 2009, the Company had 1,547,585 Memberships in force with members in all 50 states, the District of Columbia and the Canadian provinces of Ontario, British Columbia, Alberta and Manitoba. Approximately 90% of such Memberships were in 29 states and provinces.

Family Legal Plan
The Family Legal Plan consists of five basic benefit groups that provide coverage for a range of preventive and litigation-related legal expenses. The Family Legal Plan accounted for approximately 92% of the Company’s Membership fees during the year ended December 31, 2009. In addition to the Family Legal Plan, the Company markets other specialized legal services products.

Preventive Legal Services generally offer unlimited toll-free access to a member's provider law firm for advice and consultation on any legal matter. These benefits also include letters and phone calls on the member's behalf, review of personal contracts and documents, each up to 10 pages in length, last and testament preparation for the member and annual reviews at no additional cost.

Motor Vehicle Legal Protection benefits offer legal assistance for matters resulting from the operation of a licensed motor vehicle. Members have assistance available to them at no additional cost for defense in the court of original jurisdiction of moving traffic violations deemed meritorious; defense in the court of original jurisdiction of any charge of manslaughter, involuntary manslaughter, vehicular homicide or negligent homicide as the result of a licensed motor vehicle accident; up to 2.5 hours of assistance per incident for collection of minor property damages (up to $2,000) sustained by the member's licensed motor vehicle in an accident; up to 2.5 hours of assistance per incident for collection of personal injury damages (up to $2,000) sustained by the member or covered family member while driving, riding or being struck as a pedestrian by a motor vehicle, and up to 2.5 hours of assistance per incident in connection with an action, including an appeal, for the maintenance or reinstatement of a member's driver's license, which has been canceled, suspended, or revoked.
Trial Defense benefits offer assistance to the member and the member's spouse through an increasing schedule of benefits based on Membership year. Up to 60 hours are available for the defense of civil or job-related criminal charges by the provider law firm in the Membership year. The criminal action must be within the scope and responsibility of employment activities of the member or spouse. Up to 2.5 hours of assistance are available prior to trial, and the balance is available for actual trial services. This benefit excludes domestic matters, bankruptcy, deliberate criminal acts, alcohol or drug-related matters, business matters and pre-existing conditions. IRS Audit Protection Services offer up to 50 hours of legal assistance per year in the event the member, spouse or dependent children receive written notification of an IRS audit or are summoned in writing to appear before the IRS concerning a tax return.

Legal Shield Benefit
In 47 states and four Canadian provinces, the Legal Shield plan can be added to the standard or expanded Family Legal Plan and provides members with 24-hour access to a toll-free number for provider law firm assistance if the member is arrested or detained. The Legal Shield member, if detained, can present their Legal Shield card to the officer that has detained them to make it clear that they have access to legal representation and that they are requesting to contact a lawyer. The benefits of the Legal Shield plan are subject to conditions imposed by the detaining authority, which may not allow for the provider law firm to communicate with the member on an immediate basis. There were approximately 1,110,000 Legal Shield subscribers as of December 31, 2009.

Identity Theft Shield Benefit
By adding the Identity Theft Shield to their existing family Membership, members have toll free access to the identity theft specialists at Kroll Inc. This benefit can be added to a legal service Membership for or purchased separately. The identity theft-related benefits include a credit report and related instructional guide, a credit score and related instructional guide, credit report monitoring with daily online and monthly offline notification of any changes in credit information and comprehensive identity theft restoration services. There were approximately 804,000 subscribers as of December 31, 2009.

Canadian Family Plan
The Family Legal Plan is marketed in the Canadian provinces of Ontario, British Columbia, Alberta and Manitoba. Benefits of the Canadian plan include preventive benefits, including assistance with Canadian Government agencies, warranty assistance and small claims court assistance, as well as the preferred member discount. Canadian Membership fees collected during 2009 were approximately $7.9 million.

Officers and directors

Harland C. Stonecipher
Chairman of the Board
Age: 70

Randy Harp
President, Co-Chief Executive Officer, Chief Operating Officer
Age: 54

Mark Brown
Co-Chief Executive Officer
Age: 56

Steve Williamson
Chief Financial Officer
Age: 48


Kathleen S. Pinson
Vice President - Regulatory Compliance and Secretary
Age: 56


LATEST KEY DEVELOPMENTS
Pre-Paid Legal Services, Inc. Announces Evaluation Of Strategic Alternatives To Enhance Shareholder Value
Monday, 25 Oct 2010 08:31am EDT
Pre-Paid Legal Services, Inc. announced that it is evaluating strategic alternatives, including a possible sale of the Company and alternatives that do not involve a sale, to enhance shareholder value. The Board of Directors has established a special committee comprised of independent directors to lead the process. As part of the process, special committee has been evaluating an offer received by the Company from a well-known private equity firm to acquire all of the outstanding shares of the Company's common stock in a merger at a price of $60.00 cash per share. Among other terms, the proposal allows for the offeror to pay a to-be-determined amount to the Company as the offeror's sole recourse in the event that it is not able to obtain financing to complete the transaction. Counsel for the offeror has notified the Company that in the event of a public disclosure by the Company or its advisors of the offeror's proposal, the proposal will be deemed withdrawn. The special committee has not set a definitive timetable for completion of its evaluation of strategic alternatives and there can be no assurances that the process will result in any transaction being announced or completed. The Company does not intend to disclose any developments regarding the process unless and until the special committee has approved a specific course of action. The special committee has retained Berenson & Company, LLC to act as its financial advisor and Mayer Brown LLP to act as its legal advisor.

Pre-Paid Legal Services, Inc. Announces FTC Closes Investigation Without Taking Action
Monday, 26 Jul 2010 10:02pm EDT
Pre-Paid Legal Services, Inc. announced that the Federal Trade Commission (FTC) has stated it is closing the investigation of the Company without taking action. The FTC has determined to close the investigation that commenced on March 27, 2007, with the receipt of a Civil Investigative Demand relating to its Identity Theft Shield and Affirmative Defense Response System Program.

Pre-Paid Legal Services, Inc. Announces Management Change
Wednesday, 3 Mar 2010 05:00pm EST
Pre-Paid Legal Services, Inc. announced that effective April 2, 2010, its founder and current Chief Executive Officer, President and Chairman of the Board, Mr. Harland C. Stonecipher, will relinquish the title and responsibilities of Chief Executive Officer and President. The Board of Directors unanimously approved that the title and responsibilities of Chief Executive Officer will be shared equally by two co-CEOs Randy Harp, Pre-Paid's current Chief Operating Officer, and Mark Brown, Pre-Paid's current Chief Marketing Officer. The Board also named Mr. Harp as Pre-Paid's President.

Pre-Paid Legal Services, Inc. Announces Additional Stock Repurchase Authorization
Wednesday, 2 Dec 2009 05:41pm EST
Pre-Paid Legal Services, Inc. announced that Board of Directors has authorized an additional repurchase of 1 million shares, as we have purchased virtually all of previously announced stock repurchase authorizations totaling 15 million shares. The Company will make purchases at prices it considers attractive. The Company has not set a time limit for completion of the additional share repurchases.

Pre-Paid Legal Services, Inc. Announces Inquiry
Tuesday, 6 Oct 2009 11:33am EDT
Pre-Paid Legal Services, Inc. announced that it as part of a fact-finding inquiry, it has received a subpoena from the Division of Enforcement of the Securities and Exchange Commission (SEC). The subpoena requires to produce a variety of documents pertaining to our treasury stock repurchase program; ADRS program and other marketing practices; membership statistical information; segment reporting; the FTC contingency disclosure; and other operational practices. This investigation is a fact-finding inquiry and does not mean that the SEC has reached any conclusions.

Pre-Paid Legal Services, Inc. Partners With Blastoff
Wednesday, 16 Sep 2009 08:03am EDT
Pre-Paid Legal Services, Inc. announced the re-launch of its marketing program through a partnership with Blastoff Communications, LLC of Dallas, Texas. The Company's special partnership agreement with Blastoff will allow the Company to leverage the power of its large existing network of independent sales associates with the new online Pre-Paid Legal/Blastoff network.

Pre-Paid Legal Services, Inc. Announces Additional Share Repurchase Authorization
Monday, 23 Feb 2009 08:32am EST
Pre-Paid Legal Services, Inc. announced that the Board of Directors have authorized an additional repurchase of 1 million shares. No time limit has been set for completion of the additional share repurchases.

Pre-Paid Legal Services, Inc. Announces Completion of $10 Million Financing
Friday, 6 Jun 2008 08:31am EDT
Pre-Paid Legal Services, Inc. announced that it has received additional financing from Bank of Oklahoma for $10 million on an unsecured basis repayable in 12 equal monthly payments beginning June 30, 2008, together with interest at LIBOR plus 165 basis points. The $10 million has been funded and is immediately available to the Company and is in addition to existing debt of approximately $65 million.

Pre-Paid Legal Services, Inc. Announces Additional Share Repurchase Authorization
Tuesday, 1 Apr 2008 06:29pm EDT
Pre-Paid Legal Services, Inc. announced that the Board of Directors has authorized an additional repurchase of 1 million shares. Purchases pursuant to the new repurchase authorization will be made at prices that the Company consider attractive. The Company expects to continue purchases after 2008 first quarter earnings conference call scheduled for April 30, 2008. No time limit has been set for completion of the additional share repurchases.

Pre-Paid Legal Services, Inc. Announces Extension Of Kroll Relationship
Tuesday, 10 Apr 2007 11:37am EDT
Pre-Paid Legal Services, Inc. announced that it has entered into an extension of contract with Kroll Background America Inc. (KBA), a subsidiary of Kroll Inc., effective April 1, 2007, through the end of 2010 to provide services related to Identity Theft Shield membership.

http://www.reuters.com/finance/stocks/keyDevelopments?symbol=PPD

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