IDENTITY THEFT RESTORATION & INSURANCE SERVICES

If a Merchant becomes a victim of personal identity theft, the plan administrator assigns a Privacy Advocate to manage the case and activate the members of the Recovery Team (fraud investigators, legal counsel, and other experts) needed to help with the recovery process from beginning to end.

Privacy Advocates will:

• Assess damage
• Issue fraud alerts with major credit reporting agencies
• Follow up with affected agencies, creditors and financial institutions
• Call/email/send documentation to state agencies/financial institutions
• Complete and mail "Fraud Packet" via certified mail
• Assist with restoration of identity to its pre-theft state

Insurance Coverage

Each Merchant will also receive up to $25,000 worth of insurance coverage* provided by AISLIC (American International Specialty Lines Insurance Company, a member company of American International Group, Inc.). This coverage will help offset some of the cost of restoring their identity to its original status including:

• Lost wages: $500.00 per week, for 4 weeks maximum
• Re-filing of loans
• Defense cost for certain civil law suits, and
• Reimbursement of fees (a) Reasonable and necessary costs incurred in the United States by the insured for re-filing applications for loans, grants or other credit instruments that are rejected solely as a result of a stolen identity event; (b) reasonable and necessary costs incurred in the United States by the insured for notarizing affidavits or other similar documents, long distance telephone calls and postage solely as a result of the insured's efforts to report a stolen identity event and/or amend or rectify records as to the insured's true name or identity as a result of a stolen identity event ; and (c) reasonable and necessary costs incurred by the insured for up to six credit reports from established credit bureaus (with no more than two reports from any one credit bureau) dated within 12 months after the insured's discovery of a stolen identity event.

* Identity Theft Insurance is not available in NY. Insurance covers enrolled member only.

Online Recovery Education Portal

In addition to having access to recovery advocates and being insured, Merchants will have 24/7 access to the Identity Theft Education web site. This site will provide Merchants with numerous online tools to assist them in determining their own level of security and assist them in resolving Personal Identity Theft issues.

Merchants will be able to:

• Receive a monthly tips newsletter
• Receive timely anti-theft articles
• Take the Identity Theft Protection test
• Develop their own protection plan
• Check out fraud alerts and headlines

Eligibility

The Discover Merchant and his family, including children and dependents living with the Merchant may take advantage of this program's benefits. The Identity Theft insurance component will only cover the Merchant and the Merchant's business.

LEGAL SERVICES

Merchants, their business and their family will have access to a nationwide network of plan attorneys that have contracted with Legal Club to provide them with free and discounted legal services. Upon enrollment, Merchants will be referred to a plan attorney based on location, area of law required, and language preference.

Business Related Matters

Fee Services:*

• Unlimited phone consultations for each new legal matter. Merchants can access plan attorneys by phone during normal business hours to consult on each new business related matter, for free. After the initial free consultation the plan attorney and the Merchant can decide on the next legal step to take. (No time limit on initial phone consultations).
• Attorney review of 5 independent documents each month (10 page maximum each).
• Merchants can have plan attorneys make initial phone calls on behalf of their business (2 separate calls and legal matters per month).
• Plan attorneys will write an initial letter on behalf of the merchant's business (3 per month, one letter per business matter).
• 10 initial collection letters will be written on the Merchant's behalf each month (10 per month).
• Plan attorneys will provide Merchants with in-person consultation for any new legal matter (30 minutes maximum).
• Merchants can use a plan attorney as their registered agent for their business (in the state where they are incorporated).

Guaranteed Low Hourly Rates for Business Related Matters:

Plan attorneys have contracted to never charge more that $89.00 per hour for out-of-court representation for business matters. In-court representation is available from participating attorneys for no more than $109.00 per hour for business matters. In most cases, attorneys can accurately estimate the hours for any given case.

Contingency Fee Discounts for Business Related Matters:

Attorneys often work on a contingency fee basis on cases like personal injury and collections. This fee is usually expressed as a percentage of the amount collected or awarded. In collection matters, plan attorneys will accept 18% if the case is settled before formal court proceedings begin. After proceedings begin, the fee is 27%. On all other contingency matters, there is a 10% discount on the lower of either the state maximum or the attorney's standard rate.

Personal and Family Related Matters

Free Services:*

• Unlimited phone consultations for each new legal matter (no time limit).
• Unlimited face-to-face consultations for each new legal matter (no time limit).
• Review of independent legal documents (6 page maximum per document, no limit to the number of new independent documents).
• Plan attorneys will prepare a free simple will for the Merchant and his or her family, as well as update the will annually for free.
• A state specific, web based, free living will form is available to Merchants. This form can be notarized by a Notary Public.
• Plan attorneys will help Merchants represent themselves in small claims court.
• Assistance in solving problems with government programs.
• Write letters on the Merchant's behalf (one letter per legal matter, with no limit on the number of new legal matters).
• Make phone calls on the Merchant's behalf (one phone call per legal matter, with no limit on the number of new legal matters).

Deeply Discounted Legal Services for Personal and Family Related Matters:

These are eight (8) commonly used legal services for which plan attorneys have agreed to charge a one-time, deeply discounted fee.**

Guaranteed Low Hourly Rates for Personal and Family Related Matters:

Plan attorneys have contracted to never charge more than $125.00 per hour, or when appropriate, provide a 40% discount off their usual and customary hourly rate, for personal and family legal care that goes beyond the free and discounted services. After the free letters, calls and consultations take place, Merchants and their attorneys will have to decide what course of action to take next. In many cases, Merchants will have no choice and litigation may ensue. This is the point in time that plan attorneys charge the reduced hourly rate for personal and family legal care.

Contingency Fee Discounts for Personal and Family Related Matters:

Contingency fee will be a 10% reduction of the state maximum rate or the attorney's usual rate, whichever is lower.

* In many states Attorney liability may require Plan Attorneys to obtain a retainer from the member prior to providing some of the free member benefits.

** The fees listed above do not include additional filing fees, costs, or administrative expenses. They are for legal services rendered.

TAX PREPARATION & ADVICE SERVICES

The Merchant Protection Program includes comprehensive business and personal tax benefits for the Merchants with Free tax return preparation and unlimited, toll-free, tax related advice during normal business hours. Additionally, Merchants will have access to most commonly used tax related services free of charge or at a significantly discounted rate.

Merchant Tax Related Benefits:

• Unlimited advice for personal and business matters on federal taxation via toll-free phone call/fax/e-mail (no time or frequency limitations).
• Free tax return preparation (includes 1040EZ, 1040A, and 1040)*
• Deep discounts on numerous tax schedules
• IRS audit assistance
• Tax professionals will review any notice or letter issued by the IRS and provide advice on how to understand and solve the matter.
• Merchants also have access to a web-based IRS audit tutorial, as well as an IRS notification tutorial.
• IRS notification assistance
• Tax planning
• Review of prior year's tax return
• Merchant portal with:
  • tax tips
  • tax law changes
  • tax organization area
  • IRS audit area
  • IRS notification area
  • Merchant advice on-line

All tax and financial assistance is provided by tax attorneys, financial analysts, CPA's, former auditors and/or Enrolled Agents certified by the IRS. Additionally, all tax and financial advice is backed by a $1 million liability policy.

Professionals will also review a Merchant's prior year's tax return.

* Limit one per member

DEFINITIONS AND MISCELLANEOUS

Definitions:

BANKRUPTCY CHAPTER 7 includes preparation of the petition, documents, and schedules. Filing fees, court appearances and costs are additional. Attorneys may charge one fixed rate, which would include the basic fixed fee plus costs, court time and expenses.

CORPORATION (REGULAR) includes preparation of the incorporation documents, articles of incorporation, by laws, and the minutes. Does not include filing fees, costs or the corporate kit. Any extended work for the new corporation is not eligible for family plan discounts.

DIVORCE (SIMPLE) is when the plan member's spouse is not represented by separate counsel, there are no minor children under age 18, marital assets are less than $70,000 and all issues are agreed to without aid of counsel. This does not include court appearances, the filing or preparation of documents affecting property or costs, or separation agreements.

ELIGIBLE FAMILY MEMBERS are the plan member's significant other and unmarried dependent children household who are under the age of 23 and any categorically dependent individuals living in the plan member's home. NAME CHANGE obtaining name change for plan members and eligible family members where it is not contested or challenged. This includes preparation and filing of documents only. Court representation, filing fees and costs additional.

NON-COMMERCIAL REAL ESTATE CLOSING includes reviewing purchase or sale agreements, one hour of telephone counseling, and a one hour appearance at closing for the purchase or sale of residential real estate not used for business or investment purposes. Title policy, other documentation and extended counseling (if any) is an additional charge.

NON-SUPPORT (SPOUSE/CHILD) includes the preparation for and the attendance at a single hearing for judgments or contempt citations for non-payment of alimony, child support or maintenance and one hour of collection efforts after the hearing. Preparation does not include obtaining or discovering evidence, extended court time, and extended collections work.

PLAN/PARTICIPATING ATTORNEYS are licensed and qualified to practice law in your state, are required by the company to maintain professional liability insurance, and have contracted with Legal Club of America to provide legal services to plan members as outlined in this Plan member Guidebook for the law areas that they handle and the cases that they accept.

PLAN MEMBER is any person who has contracted with the Legal Club of America for a membership in the plan and has a current paid membership.

SIMPLE WILL (NO CHARGE WILL) a will distributing personal property and homestead generally and not involving trusts, specific bequests, real estate, tax matters, guardianships, living wills, health care proxy, or partitions.

TRAFFIC DEFENSE generally includes the preparation of court documents and attendance at a one-time only court hearing to settle the issue. Does not include court costs, fines, additional hearings or other related expenses. Does not apply in jurisdictions that consider traffic offenses to be criminal matters.

WILL WITH SIMPLE MINOR'S TRUST a simple will with a minor's trust for the surviving minor children of the plan member. This will is eligible for the guaranteed low fixed fee. It does not cover other kinds of trusts, complex tax matters, administration or estate planning. These additional estate planning matters can be handled under the guaranteed low hourly rate.

Miscellaneous Information:

• Participating attorneys are bound by their state's professional code of ethics. They will advise you if they have a conflict of interest in taking your case. Attorneys have the inherent right to decline a case for any reason. If this occurs, you may be referred to another attorney on the plan by calling the customer service center of Legal Club of America for assistance.
• You may cancel your membership at any time by written notification only. Membership dues are fully refundable for thirty (30) days following the initial enrollment unless otherwise contracted.
• Attorney fees are paid directly to your plan attorney. Participating attorneys are not employees of Legal Club of America and have no financial obligation to the company.
• Legal Club of America is not liable to indemnify or reimburse any plan member or participating attorney for any attorney fees or costs generated by the plan member.
• Legal Club Financial, its subsidiaries, State Bar Associations and other regulatory agencies do not guarantee the quality or quantity of legal services that are provided by plan attorneys. However, all participating attorneys are checked by the company with the attorney's respective Bar Associations periodically, not less than annually, to verify that they are in good standing.
• The plan attorneys in their attorney/client relationship have the sole responsibility for providing legal services to the plan member.
• Legal Club Financial is not a law firm, insurance carrier or a provider of legal services.
• All memberships shall automatically renew at the end of each membership term, unless Legal Club is notified in writing at least thirty (30) days prior to the end of the term.
• The term "guarantee" as used in this guidebook refers to the guarantee that Legal Club will find and refer its members to an attorney that will abide by the fee schedule outlined herein. If Legal Club cannot find such an attorney for a member, the member's only recourse is a refund of their membership fee.
• Court filing fees, expert witness fees, court costs, court reporter fees, transcript expenses, photocopying costs, postage, telephone toll charges and any other incidental expenses incurred by the plan member are excluded from discounted rates under any of the three pricing formulas described in this guidebook. Travel expenses are not eligible at discounted rates when the attorney must travel to represent a plan member's interests.

EXCLUSIONS

The following matters are excluded from your plan privileges:

• Legal matters involving the laws of jurisdictions outside the United States or its subdivisions.
• Legal matters where the plan member has already retained participating counsel at their usual rates prior to enrollment in the Legal Club.
• Frivolous legal matters as determined by the plan attorney in accordance with the professional code of ethics in their state.
• Any action involving Legal Club of America, plan attorneys, affiliated companies or any of their company's or affiliated company's directors, officers, employees or agents in any matter in which they have interests adverse to the plan member's.
• Legal matters against the plan sponsor, employer, directors, officers, agents or employees, where Legal Club membership was gained through the sponsor or employer's efforts.
• In matters where the plan member and eligible family member have adverse interests, only the original plan member is eligible for plan discounts and not the family member unless both parties provide written authorization and consent otherwise.

  ® © Legal Club Financial Corporation

The hiring of a lawyer is an important decision. Before you decide to hire the lawyer to whom you are referred, please ask the lawyer for written information about the lawyer's qualifications and experience.

This membership is for a period of one year and will automatically renew unless written cancellation is received thirty (30) days prior to the renewal date.