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Small Biz 50 (50 or fewer Employees)

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Dear Member:

By paying the membership fee and abiding by the terms of this Contract, the following services (“Services”)

are available to the Member (“Member”) which is the actual business entity. The Services will be provided

by licensed, practicing attorneys selected by Pre-Paid Legal Casualty, Inc. dba LegalShield (the “Company”).

The attorneys are referred to as the “Provider Law Firm”, “Provider Attorney” or “Referral Attorney”. All requests

for Services must be directed through the Provider Law Firm in a prompt manner to allow sufficient

time for preparation and response. This Contract covers domestic legal matters within the state where the

Member’s principal place of business is located. Matters involving foreign law are not covered. Should the

Member’s principal business location change states, the Provider Law Firm and Company must be notified.

The Member will be transferred to a membership in the new state, if available.

The Member is the business named on the membership application with 50 or fewer employees. The Member

may have only one Employer Identification Number. The Member must be a legal, for profit entity. The

Member may not be a publicly-traded business. Individual employee actions are not included as services of

the Member.

Any reference to “Contract” refers to this Contract between the Member and the Company. All services under

this Contract are part of and are subject to the General Provisions. Please refer to the General Provisions

and other sections of this Contract for the definition of capitalized terms.

The “Effective Date” of the Contract is the date on the membership application or the date the application is

submitted via the internet. If the application is dated more than 14 days prior to when the Company receives

the application, the Effective Date will be the date the application is processed.

The Company may cancel this Contract by giving the Member a 30 day written notice at the Member’s address

according to the records of the Company. This Contract will be terminated immediately for fraud, or

intentional misrepresentation of any facts in the application form or of any matter submitted to the Provider

Law Firm, or an attempt to utilize services for a person or entity not eligible for services pursuant to this

Contract.

PHONE ACCESS

The Member may receive advice about the Member’s legal matters through toll-free phone calls. A consultation

will last as long as the Provider Law Firm deems needed to adequately advise the Member on each

legal matter. The Provider Law Firm will use its Professional Judgment in such instances. If the legal matter

cannot be resolved by the first phone consultation, up to one hour of legal research will be provided.

Further services will be provided at a discount of 25% from the Provider Law Firm’s standard corporate rate.

In obtaining advice, the Designated Spokesperson may call the phone number listed on the membership

card during regular office hours.

Limitations:

1) This Contract excludes coverage for any matter raised an excessive number of times without substantial

change of circumstances.

OFFERED BY:

PRE-PAID LEGAL CASUALTY, INC.

ONE PRE-PAID WAY – P.O. BOX 145

ADA, OKLAHOMA 74820

1-800-654-7757

LSTN-940(11/15) SMALL BIZ 50

SAMPLE

2) The Provider Law Firm may assign an attorney to handle specific legal issues covered under other services

of this Contract. Legal matters covered under other sections of this Contract will be provided under

that service. The Designated Spokesperson shall speak only with the specific attorney or attorneys handling

those specific issues. This limitation provides the most effective representation of the Member.

3) Legal matters covered under Designated Consultations are not covered under this section.

LETTERS & CALLS

The consulting Provider Attorney will determine when a letter written on behalf of the Member would be of

assistance with a legal matter not specifically covered elsewhere in this Contract. The first such letter for

each non-related legal subject matter per Membership Year will be written at no additional charge. If a response

is received from a third

SAMPLE

document. The Provider Attorney will advise the Member’s Designated Spokesperson by phone of any suggested

changes. Each review of a document after the first review shall count as a separate document review

toward the annual total of 30. If legal services are required beyond the basic document review including, but

not limited to, specific research or the negotiation of or drafting of changes, the services will be provided at a

discount of 25% from the Provider Law Firm’s standard corporate rate. Advice and comment on documents

in excess of 15 consecutive pages or documents beyond six in a month or 30 per year will be provided at a

discount of 25% from the Provider Law Firm’s standard corporate rate.

DEBT COLLECTION LETTERS

The Member may use this Service only after demand for payment has been unsuccessful. The Provider Law

Firm may write up to 10 separate, initial collection letters per month at no charge. A follow-up letter may be

available based on response. Additional collection letters will be provided at a discount of 25% from the Provider

Law Firm’s standard corporate rate. The Provider Law Firm may require additional documents and other

written authorization as necessary before proceeding with Services as part of this section.

TRIAL DEFENSE

The Provider Law Firm will provide an annual sum of 75 hours of attorney time for all covered lawsuits in a

Membership Year. This time will be used for all lawsuits in which the Member is the named defendant in a

covered civil action. The covered lawsuit must be related to the Member’s business activities and filed in a

state or federal district court. Of the total of 75 hours of attorney time, a maximum of 15 hours will be provided

at no extra charge for any and all legal services rendered in defense of all covered lawsuits prior to

the actual trial. Such legal services include conferences with associated parties and their attorneys or

agents, phone conversations or other efforts to settle cases, arbitration, pre-trial conferences, settlement

conferences prior to trial, courts appearances, interrogatories, depositions, briefs and pleadings. The remaining

60 hours shall be available for actual trial time.

Total Services provided under Trial Defense shall not exceed the annual sum per membership amount of 75

hours.

Exclusions (this Service does not cover defense of the following items):

1) Claims or charges relating to worker’s compensation, inquiries or actions by a government agency,

bankruptcy or alcohol, drugs, substance abuse, chemical abuse or dependency.

2) Class actions, amicus curiae filings or interventions filed in which the Member is a party or potential party.

3) Pre-existing Conditions: Pre-existing Conditions are defined as those acts which give rise to a lawsuit

which are alleged to have occurred prior to the Member’s enrollment, even though the lawsuit was not filed

until after such date.

4) Any claim for which the Provider Law Firm cannot substantiate a defense.

5) Garnishment, attachment or any other post-judgment relief action. The Provider Law Firm will provide

services in accordance with the Contract up to the point of final judgment by the court of record.

6) Any claim or charge where the Member has access to coverage by an insurance policy.

The Trial Defense section is a part of and is subject to all General Provisions of this Contract.

REDUCED FEE SERVICES

Services for litigation representation and other legal work within the Member’s state of the principal place

of business are available at a 25% reduction from the Provider Law Firm’s standard corporate rate. This

discount does not apply to legal services rendered pursuant to the Designated Consultations section of this

Contract, contingency fee cases or fees set by the court.

REDUCED CONTINGENCY FEE SERVICES

The Member may receive up to a five percent discount from the Provider Law Firm’s standard contingency

fee for legal representation on those matters normally handled on a contingency fee basis. The Provider

Law Firm and the Designated Spokesperson will agree to the discount for each given legal service. The

Designated Spokesperson must have legal authority to bind the Member. This agreement must be made

prior to start of said services. This agreement is subject to the terms of the Attorney-Client Contract.

Page 3 of 6 LSTN-940(11/15) SMALL BIZ 50

SAMPLE

GENERAL PROVISIONS

A. Designated Spokesperson: The Member shall designate, in writing, up to three spokespersons to

speak with the Provider Law Firm. The Designated Spokespersons must be employees, owners, partners

or officers. The Designated Spokespersons must have authority to legally bind the Member. In the

event a Designated Spokesperson is no longer associated with the Member for any reason, the Member

must notify the Company. If the formerly Designated Spokesperson was speaking with the Provider Law

Firm about an on-going legal matter, the Member should also advise the Provider Law Firm. If the Provider

Law Firm is not made aware of Designated Spokesperson changes, the attorney and firm are not

responsible for any legal issue that may result.

B. Availability of Services: For any matter involving both the Member and an owner or Designated

Spokesperson, only the Member may use the Services. The Member may use the Services outlined in

this Contract only to the point such Services are available and permitted by the laws of the state having

jurisdiction over the legal matter.

C. Entire Agreement: This Contract and the Member’s application shall form the entire contract between

the parties.

D. Provider Law Firm: The Provider Law Firm is an attorney or law firm who has contracted with the Company

to provide the Services described in this Contract. This does not require all legal Services under the

Contract to be performed by the Provider Law Firm. The Provider Law Firm or the Company, under certain

circumstances, may refer matters to a referral attorney (“Referral Attorney”). Referral Attorney and Provider

Attorney may collectively be referred to in this Contract as the Provider Law Firm. The Provider Law Firm

may be contacted directly at the number provided on your membership card. Information as to how legal

services may be obtained is available by calling your Provider Law Firm or by writing the Company at P.O.

Box 145, Ada, OK 74821-0145 or by calling the Company at 1-800-654-7757.

E. Native American Legal Issues Exclusion: Native American legal issues are excluded from Services.

Such issues include legal matters before federal, tribal and/or state courts. This includes, but is not limited

to, administrative bodies, arbitration panels or arbitrators, tribunals and/or hearing panels, judges or officers.

F. Eligibility Period: The Eligibility Period begins on the Effective Date of the Contract. The Eligibility Period

will cease without notice if the Company cancels the plan for fraud. Should the Member cancel the

Contract, either in writing or by non-payment of membership fees, the Eligibility Period shall cease on the

date the membership is no longer paid current to the Company. The Member has a 30 day grace period to

pay all past due fees in order to keep the Contract without a lapse in Services.

G. Membership Year: The Membership Year shall be defined as the period of time beginning on the Effective

Date of the Contract, extending for a period of one year, and each one year period thereafter.

H. General Exclusions: The following items are excluded from this Contract. These items shall not be

included under any provision of this Contract:

1. Any matter, issue, consultation, action, proceeding or dispute between the Member and any owner

of the business. Any issue which raises or could raise a conflict between any owner or Designated

Spokesperson and the Member. Any issue between any owner and any Designated Spokesperson

which affects the Member.

2. Fines, court costs, filing fees, ad litem fees, penalties, expert witness fees, bonds, bail bonds and

out-of-pocket expenses.

3. Any person or entity that starts or joins in a lawsuit against the Company or any of its subsidiaries

or affiliates shall be excluded from any legal Services of this Contract. Any person or entity that is

named as a defendant or respondent in a lawsuit started by the Company or any of its subsidiaries or

affiliates shall be excluded from receiving any of the legal Services of this Contract during such lawsuit

or until its outcome.

4. Any matter, issue, consultation, action, proceeding, lawsuit or dispute between the Member and the

Provider Law Firm or the Member and the Company.

5. Any matter which the Provider Law Firm decides is resolved or has been raised an unreasonable

number of times without a vast change of circumstance.

6. Any matters which are covered by any insurance policy.

I. Attorney-Client Contract and Representation: Any Services which require payment of anticipated

costs shall be subject to the terms of an Attorney-Client Contract. This Attorney-Client Contract is to be

agreed upon by the Member and the Provider Law Firm prior to the time Services are rendered. The

Page 4 of 6 LSTN-940(11/15) SMALL BIZ 50

SAMPLE

Provider Law Firm will decide all retainers and anticipated costs to be paid by the Member. When applicable,

eligibility for receipt of Services under the Contract is contingent upon payment of such retainers

and anticipated costs prior to the start of legal representation. All Services and legal representation will

be limited to those available under this Contract. The Provider Law Firm has no duty or relationship beyond

the Services in this Contract.

J. Provider Law Firm’s Professional Judgment: The Company will in no way attempt to influence or affect

the Provider Law Firm’s judgment in any matter. The Provider Law Firm will make the decision whether

to accept any case, including a contingency case, or whether to appeal any judgment or legal decision. The

Provider Law Firm will select the defense, as permitted by law, to be used for any legal matter.

K. Examination Right: The Member shall have 10 days after delivery to examine the Contract. If not satisfied

for any reason, the Member may send written notice rescinding the Contract and have the paid membership

fee refunded. Upon the delivery of written notice of rescission of the Contract to the Company within

10 days of delivery, the Contract shall be void from the beginning and the parties shall be in the same position

as if this Contract had not been issued.

L. Cancellation of Contract: The Member may cancel this Contract either by non-payment of the membership

fees or upon notice to the Company by the Designated Spokesperson with legal authority to bind the

Member. The Company may cancel this Contract by giving the Member a 30 day written notice at the Member’s

address according to the records of the Company. This Contract will be terminated immediately for

fraud, or intentional misrepresentation of any facts in the application form or of any matter submitted to the

Provider Law Firm, or an attempt to utilize services for a person or entity not eligible for services pursuant to

this Contract. In the event of cancellation or termination by the Company, the Member, upon written request,

shall be entitled to be reimbursed by the Company the unused portion of the membership fees paid for this

Contract, the amount to be calculated on a pro-rata basis over the period of the Contract. In the event of

cancellation by the Company, Services will only be provided for those matters reported in writing to the Provider

Law Firm during the Eligibility Period.

M. Settlement of Disputes: All disputes or claims relating to the Company; this Contract; any Company

products or services; any claims or causes of action between the Member, the Company, and any of the

Company’s officers, directors, employees or affiliates, whether in tort or contract, shall be settled by arbitration

according to the Commercial Arbitration Rules of the American Arbitration Association, including the

optional rules for emergency measures of protection. If the Member files a claim or counterclaim against

the Company or any of its officers, directors, employees or affiliates in any such arbitration, it may do so

only on an individual basis and not with any other Member.

N. Mutual Cooperation: The Member and Company shall work together with the Provider Law Firm to provide

effective legal service. At all times, the Member shall act with professionalism and mutual respect.

O. Change of Contract: No change in the Contract shall be valid until approved by an officer of the Company

and endorsed on or attached to the Contract. No agent or sales associate has authority to change the

Contract or to waive any of its provisions. A 30 day notice will be given should there be any change in this

Contract.

P. Reinstatement Procedure: The Member may reinstate this Contract after cancellation if the contract

is still offered by the Company. The Company, at its option, may reinstate this Contract upon payment by

the Member of the appropriate fee. The Effective Date of the reinstatement and availability of Services

shall be the date the reinstatement is accepted and processed by the Company. Services are not available

for any act or occurrence during the lapse period.

Q. Change in Fees: The Company has the right to change the fee for this membership. Changes in the

membership fee will only occur after the current payment period has expired. Should the fee be changed,

the Member will be given a 30 day written notice.

R. Severability: If any provision of this Contract is deemed invalid or unenforceable in any respect, such

provision shall be, to the extent possible, reformed to make it effective. If any provision is deemed invalid

and incapable of being reformed, it shall not impact the validity and enforceability of all other provisions of

this Contract, which shall remain valid and enforceable.

S. Release of Information: Any Member submitting to the Company complaints or inquiries about a Provider

Attorney’s services gives the Provider Law Firm permission to give to the Company any and all communications

between the Member and the Provider Attorney. All communications includes privileged and

confidential information. This information is needed in order to respond to such complaints or questions.

T. Adequate and Timely Notice: The Member must send the Provider Law Firm adequate facts, required

documents and authorizations in a timely manner to receive services. A Trial Defense matter must be reported

to the Provider Law Firm within 10 days of receiving first notice of the matter. Failure to timely submit

adequate documents and facts to the Provider Law Firm shall render any obligation of the Provider Law Firm

to enter an appearance in the matter, or to provide any other Services, null and void.

Page 5 of 6 LSTN-940(11/15) SMALL BIZ 50

SAMPLE

U. Complaints: The Member has the right to file a complaint of unethical conduct by an attorney with the

Board of Professional Responsibility (BPR), Supreme Court of Tennessee. The BPR may be reached at

1101 Kermit Drive, Suite 730, Nashville, TN 37217, (800)486-5715 toll-free, (615)361-7500 local. Emails

may be sent to ethics@tbpr.org.

Jeff Bell

Chief Executive Officer

Page 6 of 6 LSTN-940(11/15) SMALL BIZ 50

 

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Uploaded on August 1, 2018