Criteria Middle Market Eligible personnel Criteria Middle Market Managers  Meet 100% of their New Business Written Premium objective; and  Regional must meet QA objective of 90%; and  Regional/Branch/Division must meet its budgeted profit target    (3 Year weighted ROE Goal) and  Team Total  Written Premium Objective  Winner's Circle Qualification  Under $45M  $45M - $70M  Over $70M  125% of Total WP Objective  120% of Total WP Objective  115% of Total WP Objective Middle Market Regional Office Sales Teams  Sales underwriters must be at 100% of objective and write a    minimum of $3.3 million in New Business Written Premium; and  Renewal underwriters premium renewal retention must be    at least 5 points greater than the Regional Office objective; and  Individual meet QA Standard of 87%; and  92% of the Team's total book must be in Superior, High    and Average; and  Regional/Branch must meet its budgeted profit target    (3 Year weighted ROE Goal).  Team Total  Written Premium Objective  Winner's Circle Qualification  Under $10M  $10M - $15M  $15M - $20M  Over $20M  120% of Total WP Objective  115% of Total WP Objective  112% of Total WP Objective  110% of Total WP Objective Middle Market Sales and Service Office Underwriters  Must write $1.6 million in New Business Written Premium; and  Total WP must be at least $5M; and  92% of the total book must be in Superior, High and Average; and  Must meet QA Standard of 87%; and  Division must meet its budgeted profit target    (3 Year Ultimate Accident Year Loss Ratio). Total Written Premium Objective  Winner's Circle Qualification  $5M - $10M  Over $10M  120% of Total WP Objective  115% of Total WP Objective  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Specialty Construction Eligible personnel Criteria Field Underwriters  Achieve a minimum of 115% of net written premium budget  Achieve an aggregate QAT score of 85% or higher  Renewal retention by account of 85% or better  3-year weighted ultimate accident year loss ratio must meet or    exceed your target Home Office Underwriting Office and Directors  Achieve aggregate QAT of 85% or better for all assigned territories  Achieve a minimum of 115% of new written premium budget  3-year weighted ultimate accident year loss ratio must meet or    exceed your target  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Alternative Markets 1 Winner Eligible personnel Criteria Program Managers Assistant Program Managers Underwriters  One winner will be selected based on the following:  Growth in premium base for captives assigned  Quality of program management including client relationship    management  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Specialty Programs Eligible personnel Criteria Field Underwriters  Underwriters must be at 100% of objective and write a minimum of  $3.0 million in Individual New Business Written Premium; and  Individual must meet QA Standard of 87%; and  Specialty Programs must meet its budgeted profit target    (3 Year weighted ROE Goal)  Program Total Written Premium Objective  Winner's Circle Qualification  Under $8M  $8M - $12.5M  $12.5M - $17.5M  Over $17.5M  120% of Total WP Objective  115% of Total WP Objective  112% of Total WP Objective  110% of Total WP Objective Home Office Underwriting Office and Directors  Achieve aggregate QAT of 85% or better for all assigned territories  Achieve a minimum of 115% of new written premium budget  3-year weighted ultimate accident year loss ratio must meet or    exceed your target  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Risk Management 3 Winners Eligible personnel Criteria Practice Leaders  Top three Practice Leaders, based on the following criteria:  Greatest increase in total in force book [# accounts in 2005 vs. 2004]  Minimum Qualifiers  Premium Renewal retention of 90%  Minimum 90% QA standard  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Marine Eligible personnel Criteria Marine Underwriters  Minimum $1.8 million in New Business Written Premium;    and meet 110% of objective  Regional/Branch must meet budgeted 3yr weighted Ultimate    Ac Yr loss ratio goal ex cats  Underwriter must meet QA Standard of 85%.  Underwriters meeting the above minimum requirements and meeting  or exceeding their Total Written Premium Objective will attend  Winners' Circle.  Total Written Premium Objective  Winner's Circle Qualification  Under $5M  $5M - $7M  Over $7M  125% of Total WP Objective  115% of Total WP Objective  105% of Total WP Objective Marine Managers  Minimum of $3 million in New Business Written Premium;    and meet 110% of objective  Regional/Branch must meet its budgeted 3 year weighted Ultimate    Acc Yr loss ratio goal ex cats  Must have a minimum average underwriter QA score of 85%  Managers meeting the above minimum requirements and meeting  or exceeding their Total Written Premium Objective will attend  Winners' Circle.  Total Written Premium Objective  Winner's Circle Qualification  Under $10M  $10M - $25M  Over $25M  125% of Total WP Objective  115% of Total WP Objective  105% of Total WP Objective  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Bond 4 Winners in Total (3 field specialists, 1 Bond Center underwriter) Eligible personnel Criteria 3 Field Specialists with the most accumulated points 1 from each LOB: Contract Surety, Commercial Surety, and Fidelity  Points accumulated from a Specialist's LOB, in the following manner,  based on end of year results for 2005:  [4 pts]  Highest percentage of increase over premium objective  for 2005  [4 pts]  Highest percentage of increase over new business objective  for 2005  [4 pts]  Highest percentage of premium increase over 2004  [3 pts]  Highest percentage of RO premium over 2004 Bond Center Underwriter  This last point will include but is not limited to:  BC Management Team to evaluate all Underwriters across  the following categories:  - underwriting skills  - customer service skills  - teamwork  - productivity  - adherence to policies and procedures  - outstanding efforts  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice and rated "Meets Expectations" or better  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Personal Insurance Eligible personnel Criteria PL STD Sales Reps  Achieve a minimum of $2.75 million New Written Premium  Attain Std. New Business Written Premium% to 2005TBP objective    as follows:  If TBP NB Objective <$3.5 million, then you must achieve    120+% to obj.  If TBP NB Objective >/=$3.5 million, then you must achieve    115+% to obj.  If TBP NB Objective >/=$5.0 million, then you must achieve    110+% to obj.  If TBP NB Objective >/= $7.5 million, then you must achieve    105+% to obj.  Attain STD. Total Written Premium for territory of 105+% to 2004  year end.  Achieve Std Total Incentive Bonus Plan (IBP) 3 year weighted  calendar year loss ratio for sales rep's territory < 60% PL Sales Managers  Total Std PL NB WP 120+% of Regional Office Plan  Total Std PL WP 105+% of Regional Office Plan  Std Auto NB Policy count to Total Std NB Policy Count ratio is    50% or greater (60% in FL and TX)  Std PL Current Accident Year L/R </= to Regional Office Plan  or  Sales Manager with 3 or more Sales Representatives meeting    Winner's Circle criteria.  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Select Customer (Excluding Florida) Eligible personnel Criteria Managers  Must achieve a combined Select Customer New Business Objective    (Traditional + Xpand)  Regional/Branch must exceed a 10% 3-year weighted ROE  Individual must exceed their total combined written premium    objectives for all Select Customer (Traditional & Xpand) based    on the following:  Written Premium Objective  Winners' Circle Qualification  Over $125M  $100 - $124.9M  Less than $100M  Meet TWP Objective  104% of TWP Objective  107% of TWP Objective SCSR's  Must have a minimum new business combined (Traditional & Xpand)    objective of $3.5 million.  Individual must meet 100% of their new business combined    objective.  Individual must meet or exceed their total combined written    premium objective for all Select Customer (Traditional & Xpand)    based on the following:  Written Premium Objective  Winner's Circle Qualification  Over $20 Million  $15 - $10 Million  $10 - $15 Million  Under $10 Million  100% of TWP Objective  105% of TWP Objective  110% of TWP Objective  115% of TWP Objective  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Select Customer (Florida only) Eligible personnel Criteria Managers  Regional meets a minimum of 95% - 105% of the combined    Traditional and Xpand Select Customer total written    premium objective.  Regional must produce a 2004 annual ROE of 10% or greater. SCSR's  Individual must meet a minimum of 95% - 105% of their combined    Traditional and Xpand Select Customer total written    premium objective.  Regional must produce a 2004 annual ROE of 10% or greater.  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Omni Eligible personnel Criteria Omni Sales Reps  Attain Spec. New Business Written Premium of 125+% to 2005    Territory Business Plan  Attain Spec. Total Written Premium for territory of 115+% to 2004    year-end  Achieve calendar year loss ratio below the plan established for the    state/territory by Omni Product Management Omni Sales Managers  Total Omni NB WP 120+% to Manager's Plan  Total Omni WP 105+% to Manager's Plan  Omni - Calendar year loss ratio  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Payroll Alliance Center Eligible personnel Criteria Direct Sales Team  Minimum new business written premium of $1,300,000 for    assigned territory.  Must achieve 115% of their new business written premium objective. Agency Sales Team  Minimum new business written premium of $5 million for    assigned territory.  Must achieve 115% of their new business written premium objective.  Overall Criteria  Must be in position as of March 31, 2005.  PAC must achieve or exceed budgeted 3-year ultimate accident year loss ratio objective.  Candidate must be in good standing and achieve a minimum standard of 87% on QA  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top 2005 Individual Risk 3 Winners Eligible personnel Criteria Practice Leaders  Exceeds new business goal, by amount higher than average  Higher than average premium retention on Practice Leader renewals  Meet or exceed QA standard of 90%  Must be in position as of March 31, 2005.  Must be an employee at the time of the award trip  Cannot be on a verbal or written performance notice  Please note: We recognize that changing business conditions can have an impact on our    expected results. If this occurs, there will still be a minimum number of winners per segment    based on top sales performances. top