July 8, 1993
Xx. Xxxxx X. Xxxxxx
0000 Xxxxx Xxxx Xxxxx
Xxxxxxxx, XX 00000
Dear Xxxx:
Am writing this letter to confirm in writing our discussions and agreements at
our meeting in Oklahoma City on July 1, 1993.
As you recall, those in attendance at the meeting were myself, Xxxxx Xxxxxx,
Xxxxx Xxxx, Xxxx Xxxx and Xxxxxxx Xxxxx.
One of the basic reasons for the meeting was to work out an arrangement with
Xxxx Xxxx and AMS that can be satisfactory to you and to all of us at Pre-Paid
Legal Services, Inc.
It is anticipated that on July 12, 1993, you will begin receiving an above the
structure override of one percent (1%) first year, and one-half percent (1/2%)
renewal each year thereafter. This would include the marketing of all Pre-Paid
Legal Services, Inc. memberships marketed by Pre-Paid Legal Services, Inc. and
its subsidiaries at present and AMS.
As of July 12, 1993, you will become and continue to be responsible in the
assisting of developing business, recruiting, training and doing those things
necessary to generate sales of the Pre-Paid Services, Inc. membership and assist
in any way possible the maintaining and servicing of all existing Pre-Paid Legal
Services, Inc.
memberships.
As of January 1, 1994, you will cease to personally recruit first level
associates. You can and are encouraged to assist those in your downline and
those not in your downline on an equal basis.
With the effective date of September 1, 1993 for an associate fee of $49.00 you
will begin, at this time, to receive a one time $2.00 per sponsorship of new
associates as a management fee, with the exception of AMS. No management fee
will be paid on AMS sponsorships.
This sponsorship bonus will offset and replace your travel expenses as of
January 1, 1994.
Any or all of the above is subject to change upon your receipt of written notice
by Pre-Paid Legal Services, Inc.
This letter outlines the agreements between Pre-Paid Legal Services, Inc. and
its subsidiaries to Xxxxx X. Xxxxxx.
The relationship of Xxxxx X. Xxxxxx to Pre-Paid Legal Services, Inc. is that of
an independent contractor and nothing in this letter shall be construed as
creating an employer-employee relationship or any other relationship other than
that of an independent contractor.
You are not authorized, without prior written approval, to make any contract or
incur any debt in the name of Pre-Paid Legal Services, Inc. or its subsidiaries.
You also agree to devote your best efforts to the marketing of Pre-Paid Legal
Services, Inc. memberships.
You recognize and agree that one of the most valuable assets that Pre-Paid Legal
Services, Inc. owns is its experience, expertise and knowledge gained as a
pioneer in the prepaid legal field.
You recognize that materials, supplies, actuarial data, product development,
information, training, company information, marketing expertise, and
administrative systems have been developed by considerable time and expense on
the part of management and at considerable expense to Pre-Paid Legal Services,
Inc. shareholders. We consider these items to be the key to our success and,
therefore, our trade secrets.
You, Xxxxx X. Xxxxxx, agree that to appropriate any information and trade
secrets for your own use or the use of another would be a loss to Pre-Paid Legal
Services, Inc. and would be subject to the Oklahoma Deceptive Trade Practices
Act that would provide and allow certain remedies on the part of Pre-Paid Legal
Services, Inc. and its subsidiaries.
Any employment, association, consulting arrangement, independent contractor
status with any other company and/or individual involved in the business of
legal services within three years of termination of association with Pre-Paid
Legal Services, Inc. may be viewed by Pre-Paid Legal Services, Inc. as a misuse
of trade secrets gained through association with Pre-Paid Legal Services, Inc.
Violation of any of the above would be sufficient reason to justify Pre-Paid
Legal Services, Inc. to terminate payment of any future commission or other
compensation.
Pre-Paid Legal Services, Inc. and Xxxxx X. Xxxxxx agree that either party may
terminate this agreement at any time for any reason. Such termination will be
done by Certified Mail and considered effective upon receipt.
Cordially,
Pre-Paid Legal Services, Inc.
/s/ Xxxxxxx X. Xxxxxxxxxxx
-----------------------------
Xxxxxxx X. Xxxxxxxxxxx
President
Accepted:
/s/ Xxxxx X. Xxxxxx
-----------------------------------
Xxxxx X. Xxxxxx (Date)