AMENDED AND RESTATED

                          CERTIFICATE OF INCORPORATION

                                       OF

                          PRE-PAID LEGAL SERVICES, INC.

 

The  undersigned  officers  of  Pre-Paid  Legal  Services,   Inc.,  an  Oklahoma

corporation (the "Corporation"), hereby certify as follows:

 

1. The Articles of  Incorporation  of the Corporation were originally filed with

the  Secretary of State of the State of Oklahoma on January 20,  1976,  and were

amended from time to time thereafter.

 

2. This Amended and Restated  Certificate of Incorporation has been duly adopted

by the Board of Directors and  shareholders  of the  Corporation,  in accordance

with  the  provisions  of  Sections  1077  and  1080  of  the  Oklahoma  General

Corporation  Act,  in order to  reflect  the  repeal  of  Article  EIGHTH of the

Corporation's  Certificate  of  Incorporation  at the  2005  annual  meeting  of

shareholders of the Corporation.

 

3. The text of the Corporation's  Certificate of Incorporation,  as amended,  is

hereby  amended and  restated  in its  entirety  by this  Amended  and  Restated

Certificate of Incorporation as follows:

 

     FIRST. The name of the Corporation is PRE-PAID LEGAL SERVICES, INC.

 

     SECOND.  The address of its  registered  office in the State of Oklahoma is

One Pre-Paid Way, in the City of Ada, County of Pontotoc, 74820. The name of its

registered agent at such address is Randy Harp.

 

     THIRD.  The  purpose of the  Corporation  is to engage in any lawful act or

activity  for which  corporations  may be organized  under the Oklahoma  General

Corporation Act.

 

     FOURTH.  The total number of shares of capital stock which the  Corporation

shall have  authority  to issue is  100,900,000  shares,  consisting  of 400,000

shares of Preferred Stock, par value $1.00 per share,  500,000 shares of Special

Preferred  Stock,  par value $1.00 per share,  and 100,000,000  shares of Common

Stock, par value $.01 per share.

 

     The shares of such classes shall have the following express terms:

 

                                   DIVISION A

                      EXPRESS TERMS OF THE PREFERRED STOCK

 

     The Preferred  Stock may be issued from time to time in one or more series.

The Board of  Directors  is hereby  authorized  to provide  for the  issuance of

Preferred Stock in series and by filing a certificate pursuant to the applicable

law of the State of  Oklahoma,  to  establish  from  time to time the  number of

shares  to be  included  in such  series,  and to fix the  designation,  powers,

preferences and rights of the shares of each such series and the qualifications,

limitations, or restrictions thereof.

 

     The  authority of the Board of Directors  with respect to each series shall

include, but not be limited to, determination of the following:

 

(1)  The  number  of  shares   constituting  that  series  and  the  distinctive

     designation of that series;

 

(2)  The dividend rate on the shares of that series,  whether dividends shall be

     cumulative,  and, if so, from which date or dates,  and the relative rights

     of priority, if any, of payment of dividends on shares of that series;

 

(3)  Whether  that series  shall have voting  rights,  in addition to the voting

     rights provided by law, and, if so, the terms of such voting rights;

 

(4)  Whether that series shall have conversion privileges, and, if so, the terms

     and conditions of such  conversion,  including  provision for adjustment of

     the  conversion  rate  in such  events  as the  Board  of  Directors  shall

     determine;

 

(5)  Whether or not the shares of that  series will be  redeemable,  and, if so,

     the terms and  conditions of such  redemption,  including the date or dates

     upon or after  which  they  shall be  redeemable,  and the amount per share

     payable  in case of  redemption,  which  amount  may vary  under  different

     conditions and at different redemption dates;

 

(6)  Whether  that  series  shall  have a  sinking  fund for the  redemption  or

     purchase of shares of that series, and, if so, the terms and amount of such

     sinking fund;

 

(7)  The  rights of the  shares of that  series  in the  event of  voluntary  or

     involuntary liquidation,  dissolution or winding up of the corporation, and

     the  relative  rights of  priority,  if any,  of  payment of shares of that

     series; and

 

(8)  Any other relative rights, preferences and limitations of that series.

 

                                   DIVISION B

                  EXPRESS TERMS OF THE SPECIAL PREFERRED STOCK

 

     Section 1. The Special  Preferred  Stock may be issued from time to time in

one or more series.  Subject to the  provisions  of Section 2 of this  Division,

which  provisions  shall  apply to all  Special  Preferred  Stock,  the Board of

Directors is authorized to provide for the issuance of Special  Preferred  Stock

in series and by filing a  certificate  pursuant  to the  applicable  law of the

State of  Oklahoma,  to  establish  from time to time the number of shares to be

included in such series,  and to fix the  designation,  powers,  preferences and

rights of the shares of each such series and the qualifications, limitations, or

restrictions thereof.

 

     The  authority of the Board of Directors  with respect to each series shall

include, but not be limited to, determination of the following:

 

(1)  The  number  of  shares   constituting  that  series  and  the  distinctive

     designation of that series;

 

(2)  The dividend rate on the shares of that series,  whether dividends shall be

     cumulative,  and, if so, from which date or dates,  and the relative rights

     of priority, if any, of payment of dividends on shares of that series;

 

(3)  Whether  that series  shall have voting  rights,  in addition to the voting

     rights provided by law, and, if so, the terms of such voting rights;

 

(4)  Whether that series shall have conversion privileges, and, if so, the terms

     and conditions of such  conversion,  including  provision for adjustment of

     the  conversion  rate  in such  events  as the  Board  of  Directors  shall

     determine;

 

(5)  Whether or not the shares of that  series will be  redeemable,  and, if so,

     the terms and  conditions of such  redemption,  including the date or dates

     upon or after  which  they  shall be  redeemable,  and the amount per share

     payable  in case of  redemption,  which  amount  may vary  under  different

     conditions and at different redemption dates;

 

(6)  Whether  that  series  shall  have a  sinking  fund for the  redemption  or

     purchase of shares of that series, and, if so, the terms and amount of such

     sinking fund;

 

(7)  The  rights of the  shares of that  series  in the  event of  voluntary  or

     involuntary liquidation,  dissolution or winding up of the Corporation, and

     the  relative  rights of  priority,  if any,  of  payment of shares of that

     series; and

 

(8)  Any other relative rights, preferences and limitations of that series.

 

     Section 2. The Special  Preferred Stock shall be on a ranking junior to the

Preferred Stock as to payment of dividends and as to  distributions in the event

of a voluntary  or  involuntary  liquidation,  dissolution  or winding up of the

corporation. Accordingly, holders of shares of Preferred Stock shall be entitled

to  receive  dividends  and  distributions  in  priority  to  any  dividends  or

distributions to holders of shares of Special Preferred Stock in accordance with

the express terms of the Preferred Stock or any series thereof.

 

                                   DIVISION C

                        EXPRESS TERMS OF THE COMMON STOCK

 

     The Common  Stock  shall be subject to the express  terms of the  Preferred

Stock and the Special Preferred Stock in any series thereof.  The holders of the

Common  Stock  voting  together as one class  shall have the sole and  exclusive

right to elect the directors of the Corporation, subject to any voting rights of

any outstanding shares of Preferred Stock or Special Preferred Stock.

 

     Dividends  on the  Common  Stock  may be  declared  at or for such time and

periods as the Board of Directors may from time to time, in its sole discretion,

determine out of funds legally available therefor.

 

     In the event of a voluntary  or  involuntary  winding up,  distribution  or

liquidation of this Corporation, after distribution of any amounts distributable

to holders of securities of the Corporation  having a preference in liquidation,

all funds,  assets or property  available for distribution shall be ratably paid

and distributed among the holders of the issued and outstanding Common Stock.

 

     FIFTH. The bylaws may be adopted, altered, amended or repealed by the Board

of  Directors.  Election of directors  need not be by written  ballot unless the

bylaws so provide.

 

     SIXTH.  Whenever a  compromise  or  arrangement  is proposed  between  this

Corporation  and its  creditors,  or any  class  of  them  and/or  between  this

Corporation  and its  shareholders  or any class of them, any court of equitable

jurisdiction  within the State of Oklahoma,  on the application in a summary way

of  this  Corporation  or of  any  creditor  or  shareholder  thereof  or on the

application of any receiver or receivers  appointed for this  Corporation  under

the provisions of Section 1106 of Title 18 of the Oklahoma Statutes (Supp. 1986)

or on the application of trustees in dissolution or of any receiver or receivers

appointed for this Corporation  under the provisions of Section 1100 of Title 18

of the Oklahoma  Statutes (Supp.  1986), may order a meeting of the creditors or

class of creditors,  and/or of the shareholders or class of shareholders of this

Corporation,  as the case may be,  to be  summoned  in such  manner as the court

directs.  If a majority in number  representing  three-fourths (3/4) in value of

the  creditors or class of  creditors,  and/or of the  shareholders  or class of

shareholders of this  Corporation,  as the case may be, agrees to any compromise

or arrangement and to any reorganization of this Corporation as a consequence of

such  compromise  or   arrangement,   the  compromise  or  arrangement  and  the

reorganization,  if  sanctioned by the court to which the  application  has been

made, shall be binding on all the creditors or class of creditors, and/or on all

the shareholders or class of shareholders,  of this Corporation, as the case may

be, and also on this Corporation.

 

     SEVENTH.  (1) To the fullest extent that the Oklahoma  General  Corporation

Act as it existed on  December  16, 1987 (the  original  date of filing with the

Oklahoma  Secretary  of  State  of  the  Amended  and  Restated  Certificate  of

Incorporation  originally  containing  this  Article  SEVENTH)  (the  "Effective

Date"), permits the limitation or elimination of the liability of directors,  no

director  of  this  Corporation  shall  be  liable  to this  Corporation  or its

stockholders for monetary damages for breach of fiduciary duty as a director. No

amendment to or repeal of this Article SEVENTH shall apply to or have any effect

on the liability or alleged liability of any director of this Corporation for or

with respect to any acts or omissions of such  director  occurring  prior to the

time of such amendment or repeal.

 

     (2) If the Oklahoma General  Corporation Act is amended after the Effective

Date to further limit or eliminate liability of this Corporation's directors for

breach of  fiduciary  duty,  then a director  of this  Corporation  shall not be

liable for any such  breach to the  fullest  extent  permitted  by the  Oklahoma

General  Corporation Act as so amended.  If the Oklahoma General Corporation Act

is amended  after the  Effective  Date to increase or expand  liability  of this

Corporation's  directors for breach of fiduciary  duty, no such amendment  shall

apply to or have  any  effect  on the  liability  or  alleged  liability  of any

director of this  Corporation  for or with  respect to any acts or  omissions of

such  director  occurring  prior  to the  time of such  amendment  or  otherwise

adversely  affect  any right or  protection  of a director  of this  Corporation

existing at the time of such amendment.

 

     EIGHTH. Repealed.

 

     NINTH.   Notwithstanding   anything   contained  in  the   Certificate   of

Incorporation or the bylaws of the Corporation to the contrary:

 

     Section 1.  Number,  Election  and  Terms.  The Board of  Directors  of the

Corporation  shall  consist  of not less than  three  nor more than  twenty-four

members  with the  exact  number  to be fixed  from time to time by the Board of

Directors.  Upon the  adoption of this Article  NINTH,  the  directors  shall be

divided into three classes,  designated Class A, Class B, and Class C, as nearly

equal in number as possible, with the term of office of the Class C directors to

expire at the 1988  annual  meeting of  shareholders,  the term of office of the

Class B directors to expire at the 1989 annual meeting of shareholders,  and the

term of office of the Class A directors to expire at the 1990 annual  meeting of

shareholders.   At  each  meeting  of   shareholders   following   such  initial

classification and election,  the number of directors equal to the number of the

class whose term  expires at the time of such  meeting  shall be elected to hold

office until the third succeeding annual meeting of shareholders.  Each director

shall hold office  until his  successor is elected and  qualified,  or until his

earlier resignation or removal.

 

     Section  2.  Newly  Created  Directorships  and  Vacancies.  Newly  created

directors  resulting from any increase in the authorized number of directors and

any  vacancies  in the Board of  Directors  resulting  from death,  resignation,

retirement,  disqualification,  removal from office or other cause may be filled

only by the  affirmative  vote of 80% of the directors then in office,  although

less  than a quorum,  and  directors  so chosen  shall  hold  office  for a term

expiring at the annual meeting of shareholders at which the term of the class to

which they have been  elected  expires  and until his  successor  is elected and

qualified.

 

     Section 3. Removal. At a meeting of shareholders or directors,  as the case

may be, called expressly for that purpose, any director,  or the entire Board of

Directors,  may be removed from office at any time, with or without cause,  only

by the affirmative vote of the holders of at least 80% of the outstanding shares

of the  Corporation  then entitled to be voted in an election of directors or by

the  affirmative  vote of at least  two-thirds  (2/3) of the  directors  then in

office.

 

     Section 4. Amendment,  Repeal,  Etc. The affirmative vote of the holders of

at least 80% of the outstanding  shares of the  Corporation  then entitled to be

voted in an election of directors  shall be required to alter,  amend or repeal,

or to adopt any provision inconsistent with, this Article NINTH.

 

     TENTH.  Except upon the affirmative  vote of  shareholders  holding all the

issued and outstanding shares of stock of the Corporation,  no amendment to this

Certificate  of  Incorporation  may be adopted by the  Corporation  which  would

impose personal  liability for the debts of the Corporation on the  shareholders

of the  Corporation or which would amend,  alter or repeal this Article TENTH or

would adopt any provision inconsistent with this Article TENTH.

 

     ELEVENTH.  The shareholders of the Corporation duly adopted the Amended and

Restated  Certificate  of  Incorporation   originally  containing  this  Article

ELEVENTH  (as filed with the  Oklahoma  Secretary of State on December 16, 1987)

for the purpose of  definitively  providing  that all provisions of the Oklahoma

General  Corporation Act will apply to the  Corporation and its  shareholders to

the  fullest  extent,  and that from and after the  filing of such  Amended  and

Restated  Certificate with the Oklahoma Secretary of State the provisions of the

Oklahoma  Business  Corporation  Act  and  any and  all  rights,  privileges  or

immunities  thereunder shall be of no further force or effect with regard to the

Corporation and its shareholders.

 

     TWELFTH.  Subject  to the  limitations  set  forth in this  Certificate  of

Incorporation,  the Corporation  reserves the right to amend,  alter,  change or

repeal any provision  contained in this  Certificate  of  Incorporation,  in the

manner now or hereafter  prescribed by statute,  and all rights  conferred  upon

shareholders herein are granted subject to this reservation.

 

     IN WITNESS  WHEREOF,  the undersigned  officers of Pre-Paid Legal Services,

Inc. have signed this Amended and Restated  Certificate  of  Incorporation  this

24th day of June, 2005.

 

 

                           PRE-PAID LEGAL SERVICES, INC.

 

 

 

                           By:   /s/ Randy Harp

                                ------------------------------------------------

                                Randy Harp, Chief Operating Officer

 

 

 

ATTEST:

 

 

 

/s/ Kathleen S. Pinson

-----------------------------

Kathleen S. Pinson, Secretary