COMPENSATION PLAN

commission advances. For advancement criteria, please refer to the Advancement Criteria Document ASSOCIATE JR. ASSOCIATE Personal Sales Advance Cumula*ve Override Bonus Advances - Paid to First Ac*ve Upline at a Higher Level When an Associate in your organiza'on makes a sale, you will receive the Override Bonus Advance for each level between yourself and the next ac've Associate in your downline.<br><br> Sale is made by your Jr. Associate: Sale is made by your Associate: Sale is made by your Sr. Associate: Sale is made by your Manager: Sale is made by your Director: Sale is made by your Jr.<br><br> Associate: Sale is made by your Associate: Sale is made by your Sr. Associate: Sale is made by your Manager: Sale is made by your Jr. Associate: Sale is made by your Associate: Sale is made by your Sr.<br><br> Associate: Sale is made by your Jr. Associate: Sale is made by your Associate: Sale is made by your Jr. Associate: At the 8rst level of the compensa'on plan, there are no override advances available.<br><br> As you advance in the compensa'on plan, you will become eligible to receive these advances. LEVERAGE EXAMPLE: You also receive this bonus if there are other Associates between you and the person who made the sale. For example, If you are a Director, and a person you recruited reached Manager level, and recruits a new Associate who makes a sale, you would receive the bonus between you and your Manager.<br><br> Copyright, 2010 " Pre-Paid Legal Services, Inc. " 00000 NOTICE: All amounts listed represent advance amounts. If a membership cancels before the end of the advance period, chargebacks will occur.<br><br> Director Breakaway Bonus Advance If you are a Director and have at least 15 organiza'onal sales with no more than 5 sales in any organiza'on OR have at least 15 personal sales, you qualify! (You can combine personal and organiza'onal sales!) QUALIFIED EXECUTIVE DIRECTORS DISTANCE FROM THE SALE: DIRECTOR 6 BREAKAWAY DIRECTOR 5 BREAKAWAY DIRECTOR 4 BREAKAWAY DIRECTOR 3 BREAKAWAY DIRECTOR 2 BREAKAWAY DIRECTOR 1 BREAKAWAY Director Override Advance You qualify in one month and receive the bonus on the next month 9s business. Amounts are advanced through 6 Director cGenera'ons. d EXAMPLE: DIRECTOR ($$ DIRECTOR 4 BREAKAWAY) Sr.<br><br> Associate Manager DIRECTOR ($$ DIRECTOR 3 BREAKAWAY) DIRECTOR ($$ DIRECTOR 2 BREAKAWAY) Director DIRECTOR ($$ DIRECTOR 1 BREAKAWAY) Director Manager DIRECTOR (Director Override Advance) MANAGER (SALE IS MADE HERE) $26.00 Expanded Plan ($25 Expanded Plan + $1 Legal Shield) $25.00 $50.00 $100.00 $125.00 $150.00 $182.50 $157.50 $132.50 $82.50 $57.50 $32.50 $125.00 $100.00 $50.00 $25.00 $100.00 $75.00 $25.00 $75.00 $50.00 $25.00 52532 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $25.00 Copyright, 2010 " Pre-Paid Legal Services, Inc. " 00000 Pre-Paid Legal Services, Inc. Compensation | Executive Director Revised June 15, 2010 Commissions are paid based on membership sales, either personal sales or when an eligible associate on your team makes a sale.<br><br> Commission amounts shown represent advances. If a membership cancels during the advance period, you will be charged back again st future commission advances. Compensa&on is subject to change without no&ce and is subject to all PPLSI Policies and Procedures.<br><br> All associates with a prod uc&on date prior to the latest revision of the Advancement Criteria will need personal ac&vity (which may include a personal membership sale or personal recru it) to promote through new Ad- vancement Criteria. Organiza&onal counters include all personal and downline counters. You will be charged a $35 Non-Taken Fe e (in addi&on to the chargeback amount) for memberships on which money is not collected.<br><br> Commission amounts on the Pre-Paid Legal Compensa&on Plan represent a dvances. If a member- ship cancels during the advance period, you will be charged back against future commission advances. Personal Sales Advance Cumula)ve Override Bonus Advances - Paid to First Ac)ve Upline at Higher Level When an Associate in your organiza&on makes a sale, you will receive the Override Bonus Advance for each level between yourself and the next ac&ve Associate in your downline.<br><br> EXECUTIVE DIRECTOR (ED) BRONZE ED SILVER ED GOLD ED PLATINUM ED PLATINUM 2 ED PLATINUM 3 ED PLATINUM 4 ED PLATINUM 5 ED PLATINUM 6 ED PLATINUM 7 ED NOTICE: All amounts listed represent advance amounts. If a membership cancels before the end of the advance period, chargebac ks will occur. Execu)ve Director (ED) Breakaway Bonus Advance If you are an Execu&ve Director and have at least one Execu&ve Director in your organiza&on, you qualify!<br><br> You qualify in one month and receive the bonus on the next month 9s business. EXAMPLE If you are at Pla&num 2 ED level, and your Execu&ve Director sells a membership, you will receive a cumula&ve override of all a mounts between you and the Execu&ve Director (if there are no other qualifying EDs between you and the sale). QUALIFIED EDs DISTANCE FROM THE SALE: ED 7 BREAKAWAY ED 6 BREAKAWAY ED 5 BREAKAWAY ED 4 BREAKAWAY ED 3 BREAKAWAY ED 2 BREAKAWAY ED 1 BREAKAWAY PLUS!<br><br> Platinum Breakaway Bonuses! Receive this bonus on all memberships through three (3) genera&ons of Pla&num Execu&ve Directors. Applicable to Associates at Pla&num or above at the &me of the membership sale.<br><br> EXAMPLE: ED ($$ ED 4 BREAKAWAY) Manager Q Director (DIR 2) ED ($$ ED 3 BREAKAWAY) ED ($$ ED 2 BREAKAWAY) Director (not qualifed) ED ($$ ED 1 BREAKAWAY) Q Director (DIR 1) Manager ED (ED Bonus Override Advance) DIRECTOR (SALE IS MADE HERE) $26.00 ($25 Expanded Plan + $1 Legal Shield) $182.50 $189.50 $194.50 $198.50 $200.50 $201.00 $201.50 $202.00 $202.50 $203.00 $203.50 $32.50 $7.00 $5.00 $4.00 $2.00 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $1.00 $1.00 $3.00 $5.00 $10.00 $1.00 Pre-Paid Legal Services, Inc. Compensation | Renewals Revised June 15, 2010 Renewals Renewals are amounts you earn on memberships that crenew d or con+nue paying a der the crst 12 months (1-year) or 36 months (3-ye ar) of the life of the membership. Since you recei-e a commission ad-ance amount represen+ng your commissions for the crst 12 or 36 months of payments made, all addi+onal payments made by the member a der months 12 or 36 represent renewals payments which you earn.<br><br> Compensa+on is subject to change without no+ce and is subject to all PPLSI Policies and Procedures. All associates with a produc+on date prior to the latest re-ision of the Ad-ancement Criteria will need personal ac+-ity (which may include a personal membership sale or personal recruit) to promote through new Ad-ancement Criteria. Organiza+onal counters include all personal and downline coun- ters.<br><br> You will be charged a $35 Non-Taken Fee (in addi+on to the chargeback amount) for member- ships on which money is not collected. Commission amounts on the Pre-Paid Legal Compensa+on Plan represent ad-ances. If a membership cancels during the ad-ance period, you will be charged back against future commission ad-ances.<br><br> When will I be paid? You will begin earning renewals from residuals at the beginning of month 13 (1-year) or month 37 (3-year). Renewal earnings begin in month 16 (cumula+-e), a der a 3-month e-alua+on +me, under the 1-year plan.<br><br> Renewal earnings begin in month 37 under the 3-year plan. Under both op+ons, earnings will crst be applied to any outstanding debit balance you may ha-e. Should I choose the 1-Year or the 3-Year earnings plan?<br><br> Most Associates choose the 1-Year plan due to the ability to earn out an advance and begin receiving renewals more quickly, however it 1 6 you 5 cho 1c\xf. Add 1 8o 3a 2 2y, u 3d\xf 5 th\xf 1-Y\xfa 5 plan, your good business persistency can in- crease your renewal income. To help you de- cide, please consider the following: " Under the 1-Year Earnings Plan, 100% of the unearned advance on cancelled memberships will be deducted from your future commission ad-ances.<br><br> It only takes ONE YEAR to earn back an advance! " Under the 3-Year Earnings Plan, 100% of the unearned ad-ance will be split as follows: 50% of the unearned advance on memberships will be deducted from your future commission ad-ances, and the remaining 50% will remain in your debit balance (if at least one membership payment has been made). It takes THREE YEARS to earn back an advance!<br><br> " If the member cancels a der you ha-e earned back the ad-ance (1 or 3 years), you will not be charged back because you will ha-e fully earned your ad-ance amount. What is a cpersistency level d and what does it mean for my renewal income? Persistency le-el is the a-erage number of memberships s+ll on the books at the end of month 15.<br><br> For example, if you sell 10 mem- berships in one month, and 15 months later 7 are s+ll ac+-e, then your persistency le-el for that month 9s business is 70%. You can calculate your earnings for the life of those remaining memberships from the third column. This ap- plies to the 1-year earnings plan.<br><br> (If you choose the 3-year earnings plan, it takes 37 months instead of 13 to begin receiving renewals, and the calcula 5on is a simple 1/37th of the original advance. See note at right for example.) *Due to rounding, the above mul 5pliers may not produce exact \x9gures. A variance of $0.01 to $0.03 should be expected.<br><br> PERSISTENCY LEVELS UP TO 55% 56965% 66975% 76985% OvER 85% JR. Associate Associate Senior Associate Manager Director Execu+-e Director Bronze ED Sli-er ED Gold ED Pla+num ED Pla+num 2 Pla+num 3 Pla+num 4 Pla+num 5 Pla+num 6 Pla+num 7 Director Breakaway 1 Director Breakaway 2 Director Breakaway 3 Director Breakaway 4 Director Breakaway 5 Director Breakaway 6 ED Breakaway 1 ED Breakaway 2 ED Breakaway 3 ED Breakaway 4 ED Breakaway 5 ED Breakaway 6 ED Breakaway 7 Pla+num Genera+on 1 Pla+num Genera+on 2 Pla+num Genera+on 3 3 fYeAr renewAl eArnings: To calculate your annual renewal amount based on the 3-year earnings plan , di-ide your original ad-ance on the sale by 3. With the 3-year plan, you be- gin recei-ing renewals with the 37th month payment.<br><br> One YeAr renewAl eArnings With the 1-year plan, you earn renewals with the 13th month 9s payment! Copyright, 2010 " Pre-Paid Legal Ser-ices, Inc. " 00000 $26.00 ($25 Expanded Plan + $1 Legal Shield) 1.57 3.14 4.71 6.28 7.85 1.57 3.14 4.71 6.28 7.85 3.14 6.28 9.42 12.56 15.69 1.57 3.14 4.71 6.28 7.85 1.57 3.14 4.71 6.28 7.85 2.04 4.08 6.12 8.16 10.20 0.44 0.88 1.32 1.76 2.20 0.31 0.63 0.94 1.26 1.57 0.25 0.50 0.75 1.00 1.26 0.13 0.25 0.38 0.50 0.63 0.03 0.06 0.09 0.13 0.16 0.03 0.06 0.09 0.13 0.16 0.03 0.06 0.09 0.13 0.16 0.03 0.06 0.09 0.13 0.16 0.03 0.06 0.09 0.13 0.16 0.03 0.06 0.09 0.13 0.16 0.38 0.75 1.13 1.51 1.88 0.31 0.63 0.94 1.26 1.57 0.25 0.50 0.75 1.00 1.26 0.19 0.38 0.56 0.75 0.94 0.13 0.25 0.38 0.50 0.63 0.06 0.13 0.19 0.25 0.31 0.63 1.26 1.88 2.51 3.14 0.31 0.63 0.94 1.26 1.57 0.19 0.38 0.56 0.75 0.94 0.06 0.13 0.19 0.25 0.31 0.06 0.13 0.19 0.25 0.31 0.03 0.06 0.09 0.13 0.16 0.03 0.06 0.09 0.13 0.16 0.06 0.13 0.19 0.25 0.31 0.06 0.13 0.19 0.25 0.31 0.06 0.13 0.19 0.25 0.31<br><br>

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