Document:

Exhibit (10-7)

                THE PROCTER & GAMBLE 1993 NON-EMPLOYEE DIRECTORS'
                                   STOCK PLAN
                           (as amended July 11, 2000)

ARTICLE A -- PURPOSE.

     The purpose of The Procter & Gamble 1993 Non-Employee Directors' Stock Plan
(hereinafter referred to as the "Plan") is to strengthen the alignment of
interests between non-employee Directors (hereinafter referred to as
"Participants") and the shareholders of The Procter & Gamble Company
(hereinafter referred to as the "Company") through the increased ownership of
shares of the Company's Common Stock. This will be accomplished by allowing
Participants to elect voluntarily to convert a portion or all of their cash fees
for services as a Director into Common Stock, by granting Participants a fixed
value of shares of Common Stock restricted until retirement (hereinafter
referred to as "Retirement Shares") and by granting Participants non-qualified
options to purchase shares of Common Stock (hereinafter referred to as "Stock
Options").

ARTICLE B -- ADMINISTRATION.

     1. The Plan shall be administered by the Compensation Committee
(hereinafter referred to as the "Committee") of the Board of Directors of the
Company (hereinafter referred to as the "Board"), or such other committee as may
be designated by the Board. The Committee shall consist of not less than three
(3) members of the Board who are "Non-Employee Directors" as defined in Rule
16b-3 under the Securities Exchange Act of 1934, as amended, or any successor
rule or definition adopted by the Securities and Exchange Commission, to be
appointed by the Board from time to time and to serve at the discretion of the
Board.

     2. It shall be the duty of the Committee to administer this Plan in
accordance with its provisions and to make such recommendations of amendments or
otherwise as it deems necessary or appropriate. A decision by a majority of the
Committee shall govern all actions of the Committee.

     3. Subject to the express provisions of this Plan, the Committee shall have
authority to allow Participants the right to elect to receive fees for services
as a director in either cash or an equivalent amount of whole shares of Common
Stock of the Company, or partly in cash and partly in whole shares of the Common
Stock of the Company, subject to such conditions or restrictions, if any, as the
Committee may determine. The Committee also has the authority to make all other
determinations it deems necessary or advisable for administering this Plan.

     4. The Committee may establish from time to time such regulations,
provisions, and procedures within the terms of this Plan as, in its opinion, may
be advisable in the administration of this Plan.

     5. The Committee may designate the Secretary of the Company or other
employees of the Company to assist the Committee in the administration of this
Plan and may grant authority to such persons to execute documents on behalf of
the Committee.

ARTICLE C -- PARTICIPATION.

     Participation in the Plan shall be limited to all non-employee Directors of
the Company.

ARTICLE D -- LIMITATION ON NUMBER OF SHARES FOR THE PLAN.

     The total number of shares of Common Stock of the Company that may be
awarded each year shall not exceed 50,000 shares.

ARTICLE E -- SHARES SUBJECT TO USE UNDER THE PLAN.

     Shares of Common Stock to be awarded under the terms of this Plan shall be
treasury shares.

ARTICLE F -- RETIREMENT SHARES.

     1. Commencing January 2, 1997 and on the first business day in each January
thereafter, each Participant shall receive Retirement Shares with a fair market
value of $20,000 on the date of grant.

     2. All shares awarded under this Article shall be valued as set forth in
Article I.

ARTICLE G -- STOCK OPTIONS.

     1. Each Participant shall, on the fifteenth day of September or on the next
preceding business day if such day is not a business day, automatically be
granted a Stock Option to purchase 2,000 shares of Common Stock (with such
amount subject to adjustment as set forth in Article H) having an exercise price
of one hundred percent (100%) of the fair market value of the Common Stock on
the date of grant. On February 26, 1999, each Participant shall receive a
one-time Stock Option grant to purchase 1,000 shares of Common Stock having an
exercise price of one hundred percent (100%) of the fair market value of the
Common Stock on the date of grant.

     2. The Stock Options shall have a term of fifteen (15) years from the date
of grant, subject to earlier termination as provided herein, and shall be
exercisable three (3) years from the date of grant, except in the case of death,
in which case the Stock Options shall be immediately exercisable.

     3. Stock Options are not transferable other than by will or by the laws of
descent and distribution. Legatees, distributees and duly appointed executors
and administrators of the estate of a deceased Participant shall have the right
to exercise such Stock Options at any time prior to the expiration date of the
Stock Options.

     4. If a Participant ceases to be a Director while holding unexercised Stock
Options, such stock options are then void, except in the case of (i) death, (ii)
disability, (iii) retirement at the end of a term, (iv) retirement after
attaining the age of sixty-nine (69) or (v) resignation from the Board for
reasons of the antitrust laws or the conflict of interest, corporate governance
or continued service policies.

     5. Upon the exercise of a Stock Option, payment in full of the exercise
price shall be made by the Participant. The exercise price may be paid for by
the Participant either in cash, shares of the Common Stock of the Company to be
valued at their fair market value on the date of exercise, or a combination
thereof.

ARTICLE H -- ADJUSTMENTS.

     The amount of shares authorized to be issued annually under this Plan will
be subject to appropriate adjustment in the event of future stock splits, stock
dividends, or other changes in capitalization of the Company to prevent the
dilution or enlargement of rights under this Plan; following any such change,
the term "Common Stock" shall be deemed to refer to such class of shares or
other securities as may be applicable. The number of shares and exercise prices
covered by outstanding Stock Options and the number of shares to be granted as
Stock Options pursuant to Article F, paragraph 1 shall be adjusted to give
effect to any such stock splits, stock dividends, or other changes in the
capitalization.

ARTICLE I -- TRANSFER OF SHARES.

     1. The Committee may transfer Common Stock of the Company under the Plan
subject to such conditions or restrictions, if any, as the Committee may
determine. The conditions and restrictions may vary from time to time and may be
set forth in agreements between the Company and the Participant or in the awards
of stock to them, all as the Committee determines.

     2. The shares awarded shall be valued at the average of the high and low
quotations for Common Stock of the Company on the New York Stock Exchange on the
day of the transfer to a Participant. All shares awarded shall be full shares,
rounded up to the nearest whole share.

ARTICLE J -- ADDITIONAL PROVISIONS.

     1. The Board may, at any time, repeal this Plan or may amend it from time
to time except that no such amendment may amend this paragraph, increase the
annual aggregate number of shares subject to this Plan, or alter the persons
eligible to participate in this Plan. The Participants and the Company shall be
bound by any such amendments as of their effective dates, but if any outstanding
awards are affected, notice thereof shall be given to the holders of such awards
and such amendments shall not be applicable to such holder without his or her
written consent. If this Plan is repealed in its entirety, all theretofore
awarded shares subject to conditions or restrictions transferred pursuant to
this Plan shall continue to be subject to such conditions or restrictions.

     2. Every recipient of shares pursuant to this Plan shall be bound by the
terms and provisions of this Plan and of the transfer of shares agreement
referable thereto, and the acceptance of any transfer of shares pursuant to this
Plan shall constitute a binding agreement between the recipient and the Company.

     3. Notwithstanding anything to the contrary in the this Plan, stock options
and stock appreciation rights granted hereunder shall vest immediately and any
conditions or restrictions on Common Stock shall lapse upon a "Change in
Control." A "Change in Control" shall mean the occurrence of any of the
following:

     (a)  An acquisition (other than directly from the Company) of any voting
          securities of the Company (the "Voting Securities") by any "Person"
          (as the term person is used for purposes of Section 13(d) or 14(d) of
          the Exchange Act), immediately after which such Person has "Beneficial
          Ownership" (within the meaning of Rule 13d-3 promulgated under the
          Exchange Act) of twenty percent (20%) or more of the then outstanding
          Shares or the combined voting power of the Company's then outstanding
          Voting Securities; provided, however, in determining whether a Change
          in Control has occurred pursuant to this Section 4(a), Shares or
          Voting Securities which are acquired in a "Non-Control Acquisition"
          (as hereinafter defined) shall not constitute an acquisition which
          would cause a Change in Control. A "Non-Control Acquisition" shall
          mean an acquisition by (i) an employee benefit plan (or a trust
          forming a part thereof) maintained by (A) the Company or (B) any
          corporation or other Person of which a majority of its voting power or
          its voting equity securities or equity interest is owned, directly or
          indirectly, by the Company (for purposes of this definition, a
          "Related Entity"), (ii) the Company or any Related Entity, or (iii)
          any Person in connection with a "Non-Control Transaction" (as
          hereinafter defined);

     (b)  The individuals who, as of July 11, 2000 are members of the Board (the
          "Incumbent Board"), cease for any reason to constitute at least half
          of the members of the Board; or, following a Merger (as hereinafter
          defined) which results in a Parent Corporation (as hereinafter
          defined), the board of directors of the ultimate Parent Corporation;
          provided, however, that if the election, or nomination for election by
          the Company's common stockholders, of any new director was approved by
          a vote of at least two-thirds of the Incumbent Board, such new
          director shall, for purposes of this Plan, be considered as a member
          of the Incumbent Board; provided further, however, that no individual
          shall be considered a member of the Incumbent Board if such individual
          initially assumed office as a result of either an actual or threatened
          "Election Contest" (as described in Rule 14a-11 promulgated under the
          Exchange Act) or other actual or threatened solicitation of proxies or
          consents by or on behalf of a Person other than the Board (a "Proxy
          Contest") including by reason of any agreement intended to avoid or
          settle any Election Contest or Proxy Contest; or

     (c)  The consummation of:

          (i)  A merger, consolidation or reorganization with or into the
               Company or in which securities of the Company are issued (a
               "Merger"), unless such Merger is a "Non-Control Transaction." A
               "Non-Control Transaction" shall mean a Merger where:

               (A)  the stockholders of the Company, immediately before such
                    Merger own directly or indirectly immediately following such
                    Merger at least fifty percent (50%) of the combined voting
                    power of the outstanding voting securities of (x) the
                    corporation resulting from such Merger (the "Surviving
                    Corporation") if fifty percent (50%) or more of the combined
                    voting power of the then outstanding voting securities of
                    the Surviving Corporation is not Beneficially Owned,
                    directly or indirectly by another Person (a "Parent
                    Corporation"), or (y) if there is one or more Parent
                    Corporations, the ultimate Parent Corporation;

               (B)  the individuals who were members of the Incumbent Board
                    immediately prior to the execution of the agreement
                    providing for such Mergerconstitute at least half of the
                    members of the board of directors of (x) the Surviving
                    Corporation, if there is no Parent Corporation, or (y) if
                    there is one or more Parent Corporations, the ultimate
                    Parent Corporation; and

               (C)  no Person other than (1) the Company, (2) any Related
                    Entity, (3) any employee benefit plan (or any trust forming
                    a part thereof) that, immediately prior to such Merger was
                    maintained by the Company or any Related Entity, or (4) any
                    Person who, immediately prior to such merger, consolidation
                    or reorganization had Beneficial Ownership of twenty percent
                    (20%) or more of the then outstanding Voting Securities or
                    Shares, has Beneficial Ownership of twenty percent (20%) or
                    more of the combined voting power of the outstanding voting
                    securities or common stock of (x) the Surviving Corporation
                    if there is no Parent Corporation, or (y) if there is one or
                    more Parent Corporations, the ultimate Parent Corporation;

          (ii) A complete liquidation or dissolution of the Company; or

          (iii) The sale or other disposition of all or substantially all of the
               assets of the Company to any Person (other than a transfer to a
               Related Entity or under conditions that would constitute a
               Non-Control Transaction with the disposition of assets being
               regarded as a Merger for this purpose or the distribution to the
               Company's stockholders of the stock of a Related Entity or any
               other assets).

     Notwithstanding the foregoing, a Change in Control shall not be deemed to
occur solely because any Person (the "Subject Person") acquired Beneficial
Ownership of more than the permitted amount of the then outstanding Shares or
Voting Securities as a result of the acquisition of Shares or Voting Securities
by the Company which, by reducing the number of Shares or Voting Securities then
outstanding, increases the proportional number of shares Beneficially Owned by
the Subject Persons, provided that if a Change in Control would occur (but for
the operation of this sentence) as a result of the acquisition of Shares or
Voting Securities by the Company, and after such share acquisition by the
Company, the Subject Person becomes the Beneficial Owner of any additional
Shares or Voting Securities which increases the percentage of the then
outstanding Shares or Voting Securities Beneficially Owned by the Subject
Person, then a Change in Control shall occur.

ARTICLE K -- DURATION OF PLAN.

     This Plan shall be effective as of January 1, 1994. This Plan will
terminate on December 31, 2003 unless a different termination date is fixed by
the shareholders or by action of the Board but no such termination shall affect
the prior rights under this Plan of the Company or of anyone to whom shares have
been transferred prior to such termination.

Plan adopted November 9, 1993
Plan Amended January 10, 1995
Plan Amended June 11, 1996
Adjusted for August 22, 1997 stock split
Plan amended January 12, 1999
Plan amended July 11, 2000PRE-PAID LEGAL SERVICES, INC.

                                    FORM 8-K

                               September 13, 2000

                                  EXHIBIT INDEX

        Exhibit No.                        Description
        -----------                        -----------
        4.1                                Restated Certificate of Incorporation
                                           of  the  Company  as  filed  with the
                                           Secretary  of  State of  Oklahoma  on
                                           August 29, 2000.

<PAGE>

                                                                     EXHIBIT 4.1

                                    RESTATED

                          CERTIFICATE OF INCORPORATION

                                       OF

                          PRE-PAID LEGAL SERVICES, INC.

         The undersigned officers of Pre-Paid Legal Services,  Inc., an Oklahoma
corporation (the "Corporation"), do 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 Restated  Certificate of Incorporation has been duly adopted by
the Board of Directors of the Corporation in accordance with Section 1080 of the
Oklahoma General Corporation Act.

         3. This Restated  Certificate of Incorporation  restates and integrates
and does not further amend the  provisions of the  Corporation's  Certificate of
Incorporation,  as amended, and there is no discrepancy between those provisions
and the  provisions of this Restated  Certificate  of  Incorporation,  except as
permitted by Section 1080.C of the Oklahoma General Corporation Act.

         4. The text of  the  Corporation's  Certificate  of  Incorporation,  as
amended, is  hereby  restated  in  its  entirety by this 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 321 East Main, in the City of Ada, County of Pontotoc, 74820. The name of its
registered agent at such address is Harland C. Stonecipher.

         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 no, 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 creditor,  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, agree 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  Corpora-
tion 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:   The provisions of this Article EIGHTH  shall apply to  any of
the following transactions (hereinafter referred to as "Business Combinations"):

                  (a) any merger, consolidation or reorganization of the Corpor-
ation or any significant subsidiary of the Corporation  in  any manner permitted
by law with or into any Related Person; or

                  (b) any  sale,  lease,  mortgage,  pledge,  exchange  or other
         disposition (in one transaction or series of related  transactions)  of
         all or  substantially  all of the assets of the  Corporation  or of any
         significant subsidiary of the Corporation to any Related Person, or

                  (c) any  sale,  lease,  mortgage,  pledge,  exchange  or other
         disposition (in one transaction or a series of related transactions) by
         any  Related  Person  to  the  Corporation  or  any  subsidiary  of the
         Corporation  of any  assets  in  exchange  for  voting  securities  (or
         securities,   or  options,   warrants  or  rights  to  purchase  voting
         securities or securities  convertible  into or exchangeable  for voting
         securities)  constituting 5% or more of the  outstanding  securities of
         the Corporation after such transaction; or

                  (d) any  reclassification  of securities,  recapitalization or
         other transaction which has the direct or indirect effect of increasing
         the voting  power,  whether  or not then  exercisable,  of any  Related
         Person; or

                  (e) the adoption  of  any plan or proposal for the liquidation
         or dissolution  of  the  Corporation  proposed  by  or on behalf of any
         Related Person.

A corporation, person or other entity which is the beneficial owner, directly or
indirectly,  of 5% or more of the total voting power of the  outstanding  voting
securities of the Corporation is herein referred to as the "Related Person."

         Section 1. No Business  Combination  may be effected  unless all of the
         ---------
following conditions, to the extent applicable, are fulfilled:

                           (a) The Related  Person  shall not have  acquired any
                  voting   securities,   directly   or   indirectly,   from  the
                  Corporation  except in a  Business  Combination  to which this
                  Article  did not apply or in a Business  Combination  to which
                  this  Article  did  apply  and  which  satisfied  all  of  the
                  requirements of this Article.

                           (b) After the time when the Related Person became the
                  beneficial owner, directly or indirectly, of 5% or more of the
                  total voting power of the outstanding voting securities of the
                  Corporation,  the Related  Person  shall not have (i) received
                  the benefit,  directly or indirectly,  of any loans, advances,
                  extensions of credit,  guarantees,  pledges or other financial
                  assistance or tax benefits  provided,  directly or indirectly,
                  by the  Corporation,  or (ii)  made or  caused  to be made any
                  major changes in the Corporation's  business or equity capital
                  structure  without the unanimous  approval of the directors of
                  the Corporation then in office.

                           (c) A proxy statement complying with the requirements
                  of the  Securities  Exchange  Act of 1934,  or any  similar or
                  superseding federal statute, as at the time in effect (whether
                  or not  the  provisions  of  such  act  or  statute  shall  be
                  applicable to the Corporation) shall be mailed to shareholders
                  of the Corporation  for the purpose of soliciting  shareholder
                  approval of the Business  Combination and shall contain at the
                  front thereof, in a prominent place, any recommendations as to
                  the   advisability   (or   inadvisability)   of  the  Business
                  Combination which any of the directors may choose to state and
                  an opinion of a reputable investment banking firm stating that
                  the terms of the Business  Combination are fair from the point
                  of view of both the  Corporation  and the  shareholders of the
                  Corporation other than any Related Person.

         Section 2. No  Business  Combination  shall be  effected  unless  it is
         ----------
approved  at an  annual  meeting  or a  special  meeting  of  the  Corporation's
shareholders called for that purpose. The affirmative vote in person or by proxy
of the  holders  of not less  than 80% of the  voting  power of all  outstanding
voting stock of the Corporation, voting as a single class, shall be required for
approval of any such Business Combination.

         Section 3. For the purposes of this Article, any corporation, person or
         ---------
entity will be deemed to be the beneficial owner of any voting securities of the
Corporation:

                           (a) which it owns directly, whether or not of record;
                  or

                           (b) which it has the right to acquire pursuant to any
                  agreement or arrangement or understanding or  upon exercise of
                  conversion  rights,  exchange  rights,  warrants or options or
                  otherwise; or

                           (c)  which  are  beneficially   owned,   directly  or
                  indirectly  (including  shares  deemed  to  be  owned  through
                  application  of  clause  (b)  above),  by any  'affiliate'  or
                  'associate'  as those  terms as  defined  in Rule 12b-2 of the
                  General Rules and  Regulations  of the Securities and Exchange
                  Commission adopted pursuant to the Securities  Exchange Act of
                  1934 as in effect on the date hereof; or

                           (d)  which  are  beneficially   owned,   directly  or
                  indirectly  (including shares deemed owned through application
                  of clause  (b)  above),  by any other  corporation,  person or
                  entity   with  which  it  or  any  of  its   'affiliates'   or
                  'associates' has any agreement or arrangement or understanding
                  for the purpose of acquiring,  holding, voting or disposing of
                  voting securities of the Corporation.

         For the purposes only of determining  whether a corporation,  person or
other entity owned beneficially, directly or indirectly, 5% or more of the total
voting  power of the  outstanding  voting  securities  of the  Corporation,  the
outstanding  voting  securities of the Corporation will be deemed to include any
voting securities that may be issuable pursuant to any agreement, arrangement or
understanding or upon exercise of conversion rights, exchange rights,  warrants,
options  or  otherwise  which  are  deemed  to be  beneficially  owned  by  such
corporation, person or other entity pursuant to the foregoing provisions of this
Section 3.

         Section 4. The provisions of this Article shall not apply to a Business
         ---------
Combination  which  (a)  (i)  does  not  change  any  voting  security  holder's
percentage  ownership of voting power in any successor of the  corporation  from
the  percentage  of  voting  power  beneficially  owned  by such  holder  in the
Corporation,  (ii)  provides for the  provisions  of this  Article,  without any
amendment,  change,  alteration  or deletion,  to apply to any  successor to the
Corporation,  and  (iii)  does  not  transfer  all or  substantially  all of the
Corporation's assets other than to a wholly-owned subsidiary of the corporation;
or (b) shall have been authorized by a majority of the Board of Directors of the
Corporation  prior to the time that the  Related  Person  became the  beneficial
owner,  directly or  indirectly,  of 5% or more of the total voting power of the
outstanding voting securities of the Corporation.

         Section 5. The  affirmative  vote  required by this  Article will be in
         ---------
addition  to the vote of the  holders  of any  class or  series  of stock of the
Corporation otherwise required by law, or this Certificate of Incorporation,  or
the  resolution  providing  for the issuance of a class or series of stock which
has been  adopted  by the  Board of  Directors,  or any  agreement  between  the
Corporation and any national securities exchange.

         Section 6. The Board of  Directors  of the  Corporation  shall make all
         ---------
determinations pursuant to this Article, including,  without limitation, (i) the
amount of  voting  power  beneficially  owned  directly  or  indirectly,  by any
corporation, person or entity, and (ii) the status of any corporation, person or
entity  as  an  affiliate  or  associate  of  another.  Any  such  determination
reasonably  made in good  faith  by the  Board  of  Directors  on the  basis  of
available information shall be conclusive and binding, and no director will have
any liability to the Corporation, or any other corporation,  person or entity by
reason of any such determination so made.

         Section 7. This   Article  EIGHTH  shall  not be  altered,  amended  or
         ---------
repealed,  nor shall any  provision  inconsistent  with this  Article  EIGHTH be
adopted,  except by the affirmative vote of at least eighty percent (80%) of the
voting power of the  outstanding  voting stock of the  Corporation,  voting as a
single class.

         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,  by 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,  Pre-Paid  Legal  Services,  Inc.  has caused this
Certificate to be signed and attested by its duly authorized  officers as of the
28th day of August, 2000.

ATTEST:                                   PRE-PAID LEGAL SERVICES, INC.

/s/  Kathryn Walden                       By: /s/  Harland C. Stonecipher
------------------                        -----------------------------
Kathryn Walden, Secretary                 Harland C. Stonecipher,
                                          Chairman and Chief Executive
                                          Officer

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