Pre-Paid Legal Extends Term of Marketing Pact

THE JOURNAL RECORD, January 26, 1994 | Go to article overview

Pre-Paid Legal Extends Term of Marketing Pact


ADA _ Pre-Paid Legal Services Inc. has extended the initial term of its marketing agreement with Roger Staubach and The Staubach Co., it was announced Tuesday.

Pre-Paid Legal, based in Ada, entered into an agreement with Staubach in December 1992. The agreement called for Staubach to provide assistance in marketing Pre-Paid's legal services to major business prospects.

Staubach, a former Dallas Cowboys quarterback, was granted warrants to purchase 4.99 percent of Pre-Paid's outstanding common stock. If the agreement is extended beyond June 30, 1994, Pre-Paid has agreed to grant Staubach fiveyear warrants covering an additional 10 percent of the outstanding common stock in two blocks of 5 percent each.

One of the options will be exercisable only if the company's common stock price exceeds $5 per share within 2 years and the other is exercisable only the company's common stock prices exceeds $10 per share within 4 years, said Harland C. Stonecipher, chairman and chief executive officer of Pre-Paid.

On Tuesday, Pre-Paid's common stock closed at 111/16, down in trading on the American Stock Exchange. …

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