Document:

EMPLOYMENT
		AGREEMENT
	 

	 
		Employers Insurance Company of
		Nevada, a Nevada corporation, (the “Company”) and Douglas D. Dirks
		(the “Executive”) enter this Employment Agreement (this
		“Agreement”) as of this 1st day of February, 2006 (the
		“Commencement Date”).
	 

	 
		RECITALS
	 

	 
		A. Executive has knowledge and
		experience applicable to the position of Chief Executive Officer.
	 

	 
		B. The Company is an insurance
		company, owning workers compensation insurance and service companies (the
		“Business”).
	 

	 
		C. The Company desires to
		employ Executive to perform certain services for the Company, and Executive
		desires to be so employed by the Company.
	 

	 
		D. This Agreement is the
		entire agreement between the parties concerning the subject matter hereof, and
		supersedes all prior agreements concerning the same subject.
	 

	 
		In consideration of the
		premises and mutual covenants and promises set forth herein, and other good and
		valuable consideration, the receipt and sufficiency of which are mutually
		acknowledged, the parties agree as follows:
	 

	 
		TERM
	 

	 
		1. Employment. The Company agrees to employ Executive, and Executive
		accepts such employment upon the terms and conditions specified herein.
		Executive agrees to devote substantially all of his time and effort during
		working hours to the business and affairs of the Company and its affiliates in
		the performance of the duties called for herein and agrees that any other
		non-employment related duties (i.e., industry related groups, service on
		boards, etc.) will not be allowed to materially interfere with the performance
		of the duties called for herein.
	 

	 
		2. Term. The term of this Agreement shall commence on the
		Commencement Date, and continue for an initial term of three (3) years, until
		January 31, 2009, subject to two (2) automatic one-year extensions, the first
		beginning on the first anniversary of the Commencement Date of this Agreement
		and the second beginning on the second anniversary date unless either party
		provides written notice of intent to reject the extension at least ninety (90)
		days prior to such anniversary date, and further subject to earlier termination
		in accordance with this Agreement. Provided there has been no such termination,
		the Agreement will expire (the “Expiration Date”) on the later of
		January 31, 2009 or three (3) years after the anniversary date following any
		extension, but in no event later than January 31, 2011.
	 

	 
		3. Services and Duties. Executive shall serve as Chief Executive
		Officer and shall perform such duties as may be assigned by the Board of
		Directors (the “Board”) from time to time. The Executive shall report
		solely to the Board of Directors. At the request of the Board, Executive shall
		also serve as a director of the Company and/or one or more of the
		Company’s parent, subsidiaries or affiliates at no additional
		compensation. Executive agrees that upon the termination of his employment with
		the Company, he shall resign from any and all Boards effective on the date of
		the termination of employment.
	 

	 
		4. Insurance. The Executive agrees to submit to a physical
		examination at a reasonable time as requested by the Company for the purpose of
		the Company’s obtaining life insurance on the life of the Executive for
		the benefit of the Company; provided, however, that 
	 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 
	 
		the Company shall bear the
		costs for such examinations and shall pay all premiums on any life insurance
		obtained as a result of such examinations. Executive further agrees to submit
		to drug testing in accordance with the Company policy.
	 

	 
		5. Termination.
	 

	 
		(a) The Company, at any time,
		may terminate this Agreement immediately for Cause. Cause is defined as:

	 

	 
		(i) A material breach of this
		Agreement by Executive;
	 

	 
		(ii) Failure or inability of
		Executive to obtain or maintain any required licenses or certificates;
	 

	 
		(iii) Willful violation by
		Executive of any law, rule or regulation, including without limitation, any
		material insurance law or regulation, which violation may, as determined by the
		Company, adversely affect the ability of Executive to perform his duties
		hereunder or may subject the Company to liability;
	 

	 
		(iv) Election by the Company
		to discontinue the Company’s business; or,
	 

	 
		(v) Conviction of any felony
		or crime including moral turpitude.
	 

	 
		(b) The Executive may
		terminate this Agreement immediately in the event of:
	 

	 
		(i) A material breach of this
		Agreement by the Company; or
	 

	 
		(ii) Willful violation by
		Employer of any law, rule or regulation, including without limitation, any
		material insurance law or regulation, which violation may, as determined by the
		Executive, adversely affect the ability of Executive to perform his duties
		hereunder or may subject the Executive to liability.
	 

	 
		(c) The Company may also
		terminate this Agreement upon the occurrence of one or more of the following
		events, subject to applicable law:
	 

	 
		(i) Death of Executive;

	 

	 
		(ii) Executive is deemed to be
		disabled in accordance with the policies of the Company and the law or if
		Executive is unable to perform the essential job functions of Executive’s
		position with the Company, with or without reasonable accommodation, for a
		period of more than 100 business days in any 120 consecutive business day
		period. Executive is entitled to any and all short term or long term disability
		programs, like any other employee, in accordance with the policies of the
		Company, whether or not this Agreement is terminated;
	 

	 
		(iii) Any event, occurrence,
		or factual situation that, in the sole and absolute discretion of the Company,
		shall make the continued employment of Executive ineffective, inadvisable, or
		unnecessary.
	 

	 
		6. Duties Upon Termination.
	 

	 
		(a) If the Company terminates
		this Agreement for any reason before the Expiration Date as extended by any
		automatic extensions provided for under Section 2 of this Agreement other than
		specified above in subsection 5(a) for Cause, 5(c)(i), for the death of the
		Executive, or 5(C)(ii) for disability, or if the Executive terminates this
		Agreement for Cause which has not been cured by the Company within thirty (30)
		days of receipt of written notice of the alleged breach pursuant to Paragraph
		5(b), the Executive shall receive the following severance pay (the
		“Severance Pay”):
	 

	 
		(i) An amount equal to the
		greater of his current Base Salary for the remainder of the contract term or
		the sum of two (2) years of his current Base Salary payable within thirty (30)
		days of the effective date of the termination;
	 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 

	 
		(ii) Amounts due under the
		Annual Incentive and any other amounts due under bonus plans of which the
		Executive has been a participant, pro-rated for the period of the calendar year
		in which the Executive last performed services for the Company, in accordance
		with such bonus plans in effect on the date of the termination and payable
		either in a lump sum within thirty (30) days of the effective date of the
		termination or in accordance with the payment schedule of such plans in effect
		on the date of the termination, such election to be made at the option of the
		Company;
	 

	 
		(iii) The payment amounts set
		forth hereunder shall be subject to normal payroll deductions at
		Executive’s then-elected rate, Executive agrees to pay any federal or
		state taxes, which are required to be paid by Executive beyond the amount of
		any withholding by the Company; and
	 

	 
		(iv) Continuation of the
		insurance coverage in effect on the date of the termination, for a period of 18
		(eighteen) months with the Company paying the employer portion of the premium
		and the Executive paying the employee portion, including dependents if
		applicable, of the premium during the eighteen (18) month period, provided
		Executive elects to continue such insurance coverage under the Consolidated
		Omnibus Budget Reconciliation Act of 1985 (“COBRA”). Executive is
		solely responsible for taking the actions necessary to exercise his rights
		under COBRA for the insurance coverage Executive has in effect, including
		dependents if applicable, on the date of termination.
	 

	 
		(b) The parties agree, in the
		event of a breach of this Agreement by the Company that is not cured in
		accordance with this Agreement, that actual damages are speculative and that
		the amount of the Severance Pay set forth herein is liquidated damages and is a
		reasonable estimate of what damages would be for a breach of this
		Agreement.
	 

	 
		(c) Executive agrees and
		acknowledges that the following must be satisfied by the Executive before he is
		entitled to the Severance Pay called for herein:
	 

	 
		(i) That Executive return any
		and all Company equipment, software, data or Company property or information,
		including documents and records or copies thereof relating in any way to any
		proprietary information of the Company, its parent, subsidiaries or affiliates
		whether prepared by the Executive or any other person or entity. That Executive
		further agrees that he shall not retain any proprietary information of the
		Company, its parent, subsidiaries or affiliates after the termination of his
		employment;
	 

	 
		(ii) That Executive execute a
		Global Release of Liability, in a form substantially similar to the sample
		attached hereto, which releases liability for any and all claims, whether based
		in law or equity, arising from or associated with Executive’s employment
		or with this Agreement. That Executive further acknowledges and agrees that he
		has not made and will not make any assignment of any claim, cause or right of
		action, or any right of any kind whatsoever, arising from or associated with
		the employment of Executive by the Company; and,
	 

	 
		(iii) That Executive reaffirm
		the covenants contained herein, in writing, including but not limited to the
		following: non-disclosure, non-competition and non-solicitation
		covenants.
	 

	 
		(d) The Executive may
		terminate this Agreement for reasons other than those identified in Paragraph
		5(b) upon not less than 60 days prior written notice. If the Executive
		terminates this Agreement pursuant to this paragraph, he shall only be entitled
		to the following:
	 

	 
		(i) Any unpaid salary through
		the effective date of Executive’s resignation from the Company; and

	 

	 
		(ii) Any accrued and unused
		vacation pay.
	 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		7. Compensation, and Benefits.
	 

	 
		(a) During the term of this
		Agreement, the Company shall pay to Executive an annual salary of not less than
		$550,000 (“Base Salary”), which amount shall be paid according to the
		Company’s regular payroll practices. The Company agrees to review the Base
		Salary on an annual basis and adjust the salary to comply with the executive
		compensation policy in effect at the time of the review. Any increase made to
		the annual salary will establish the new Base Salary for the Executive. All
		payments made pursuant to this Agreement shall be reduced by and subject to
		withholding for all federal, state, and local taxes and any withholding
		required by applicable laws and regulations. The Company agrees that if its
		ultimate parent converts to a stock company, it will establish and Executive
		shall participate in such additional compensation plans, subject to regulatory
		approval, as are reasonable and customary to similarly situated executives in
		the property and casualty insurance industry.
	 

	 
		(b) The Company will provide
		an annual incentive (the “Annual Incentive”) to the Executive during
		the term of employment based on the Executive’s and the Company’s
		performance, as determined by the Board (or a committee thereof) in its sole
		discretion. Such plan shall set a combined Annual and Long Term target
		incentive of not less than one hundred seventy-five percent (175%) of Base
		Salary. Such Annual Incentive shall be paid in accordance with the
		Company’s regular practice for its senior officers, as in effect from time
		to time. The Board of Directors (or a committee thereof) shall determine the
		apportionment of the Annual Incentive between Annual and Long Term and cash and
		non-cash components, if applicable, but in no event shall the cash portion of
		the Annual Incentive target be less than 25% of Base Salary. To the extent not
		duplicative of the specific benefits provided herein, the Executive shall be
		eligible to participate in all incentive compensation, retirement, supplemental
		retirement, and deferred compensation plans, policies and arrangements that are
		provided generally to other senior officers of the Company at a level (in terms
		of the amount and types of benefits and incentive compensation that the
		Executive has the opportunity to receive and the terms thereof) determined in
		the sole discretion of the Board;
	 

	 
		(c) Executive agrees that the
		amounts payable under this Agreement including but not limited to the amount
		payable under Paragraph 6(a)(1) is good, valuable and separate consideration
		for the non-competition, assignment and release of liability provisions
		contained herein. Executive acknowledges that he is aware of the effect of the
		non-competition, assignment and release of liability provisions contained
		herein and agrees that the amounts payable under this Agreement including but
		not limited to the amount payable under Paragraph 6(a)(1) is sufficient
		consideration for his agreement to these provisions.
	 

	 
		(d) In addition to the
		compensation called for in this Agreement, Executive shall be entitled to any
		and all benefits and perquisites generally provided from time to time to other
		similarly situated officers as well as the benefits and prerequisites attached
		hereto as Exhibit “A” and incorporated herein by this
		reference.
	 

	 
		8. Licensing. Executive has obtained and possesses, or will obtain
		and possess, and will maintain throughout the Term hereof, all licenses,
		approvals, permits, and authorization (the “Licenses”) necessary to
		perform Executive’s duties hereunder, (if any). Any costs, attorneys fees,
		investigations fees or other expenses incurred in connection with obtaining or
		maintaining such Licenses shall be borne by the Company. Executive warrants
		that Executive is fully eligible, under all standards and requirements, to
		obtain, possess, and maintain such Licenses and that Executive will commit no
		acts during the Term hereof that would jeopardize or eliminate Executive’s
		ability to possess or maintain such Licenses.
	 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 
	 
		9. Rules and Regulations. Executive shall observe, enforce, and
		comply with the policies, philosophies, strategies, rules, and regulations of
		the Company, as they may be promulgated and/or modified from time to time, and
		shall carry out and perform the orders, directions, and policies of the
		Company, as they may be stated and/or amended from time to time, either orally
		or in writing. A violation of this Section 8 by Executive is a material breach
		of this Agreement.
	 

	 
		10. Restrictive Covenants. In consideration of the amount payable
		under Paragraph 6(a)(i), the other compensation paid hereunder, and other good
		and valuable consideration, the receipt and sufficiency of which is
		acknowledged by the parties, the parties agree to the following provisions of
		this Section 10:
	 

	 
		(a) Non-Competition.
		Executive understands and agrees that the Company does business throughout the
		State of Nevada and other states. Executive further understands and agrees that
		he is a high ranking officer of the Company and will have access to
		confidential and trade secret information of the Company and to its goodwill
		that will allow Executive to unfairly compete with the Company justifying this
		restriction. For a period of one (1) year following the termination of
		Executive’s employment hereunder for any reason, Executive agrees that,
		without the written permission of the Company, he will not engage (whether as
		owner, partner, controlling stockholder, controlling investor, Executive,
		adviser, consultant, or otherwise) in any business that is in direct
		competition with the Business, as of the Applicable Date (as defined below), in
		Nevada and any other state in which the Company is conducting its Business (the
		“Non-Compete Area”) as of the effective date of the termination.
		“Applicable Date” is the effective date of termination or the date
		the Executive executes the Global Mutual Release of Liability in accordance
		with this Agreement, whichever is later.
	 

	 
		(b) Non-Solicitation.
		Without limiting the generality of the foregoing, Executive agrees that for a
		period of one (1) year following the Applicable Date, he will not, without the
		prior written consent of the Company, directly or indirectly solicit or attempt
		to solicit, within the Non-Compete Area, any business from any person or entity
		that the Company called upon, solicited, or conducted business with as of the
		effective date of the termination, any persons or entities that have been
		customers of the Company or recruit or hire any person who has been or is an
		employee of the Company, its parent, subsidiaries or affiliates during the
		preceding one-year period from the date of termination of this Agreement. In
		addition, Executive agrees that he shall not directly or indirectly solicit or
		encourage any employee of Company to go to work for or with Executive for a
		period of one-year following the date of termination of this Agreement. In the
		event of the violation of this Section 10, the Company will be entitled to, in
		addition to any other remedies provided by law or equity, obtain injunctive
		relief and the specific performance of this covenant. Should Executive violate
		this Section 10, the period of time for this Paragraph will automatically be
		extended for the period of time from which Executive began such violation until
		he permanently ceases such violation. The Executive acknowledges that this
		Section 10 is necessary to protect the interests of the Company, and that the
		restrictions contained herein are reasonable in light of the consideration and
		other value the Executive has accepted pursuant to this Agreement, if any
		provision of this covenant is invalid in whole or in part, it will be limited,
		whether as to time, area covered, or otherwise as and to the extent required
		for its validity under the applicable law and as so limited, will be
		enforceable.
	 

	 
		(c) Confidential
		Information. Executive acknowledges that he has had or will have access to
		the Company’s confidential information and that of its parent,
		subsidiaries and 
	 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 
	 
		affiliates (including, but not
		limited to, records regarding sales, price and cost information, marketing
		plans, customer names, customer lists, sales techniques, distribution plans or
		procedures, and other material relating to the Company’s Business),
		proprietary, or trade secret information (the “Confidential
		Information”), and agrees never to use the Confidential Information other
		than for the sole benefit of the Company and further agrees to never disclose
		such Confidential Information (except as may be required by regulatory
		authorities or as may be required by law) to any entity or person that is not
		an officer or employee (unless at such time such Confidential information is
		subject to a policy of the Company restricting disclosure to non-officers) of
		the Company at the time of such disclosure, without the prior written consent
		of the Company. Executive further acknowledges that this covenant to maintain
		Confidential Information is necessary to protect the goodwill and proprietary
		interests of the Company, its parent, subsidiaries or affiliates and the
		restriction against the disclosure of Confidential Information is reasonable in
		light of the consideration and other value the Executive has received or will
		receive pursuant to this Agreement.
	 

	 
		(d) Executive agrees to
		cooperate with the Company in any litigation, administrative proceeding,
		investigation or audit involving any matters with which Executive has knowledge
		of from his employment with the Company. The Company shall reimburse Executive
		for reasonable expenses, including reasonable compensation for services
		rendered at his hourly rate of compensation on the date of termination of the
		Agreement, incurred in providing such assistance and approved by the
		Company.
	 

	 
		(e) In the event of a
		violation of this Section 10, the Company shall be entitled to any form of
		relief at law or equity, and the parties agree and acknowledge that injunctive
		relief is an appropriate, but not exclusive, remedy to enforce the provisions
		hereof. The existence of any claim or cause of action of Executive against the
		Company, whether predicated on this Agreement or otherwise, shall not
		constitute a defense of the Company’s enforcement of the covenants set
		forth in this Section 10. The Executive hereby submits to the jurisdiction of
		the courts of the State of Nevada and federal courts therein for the purposes
		of any actions or proceedings instituted by the Company to enforce its rights
		under this Agreement, to seek money damages or seek injunctive relief.
		Executive further acknowledges and agrees that the obligations contained in
		Section 10 of this Agreement are fair, do not unreasonably restrict
		Executive’s further employment and business opportunities, and are
		commensurate with the compensation arrangements set out in this Agreement. The
		covenants contained in Section 10 shall each be construed as an Agreement
		independent of any other provisions of this Agreement. Both parties intend to
		make the covenants of Section 10 binding only to the extent that it may be
		lawfully done under existing applicable laws. If a court of competent
		jurisdiction decides any part of any covenant is overly broad, thereby making
		the covenant unenforceable, the parties agree that such court shall substitute
		a reasonable, judicially enforceable limitation in place of the offensive part
		of the covenant and as so modified the covenant shall be as fully enforceable
		as set forth herein by the parties themselves in the modified form.
	 

	 
		(f) Executive acknowledges
		that it is possible that the corporate structure of the Company could change
		during the term of this Agreement. Executive hereby acknowledges and affirms
		that the Company may assign its rights under this Agreement to a third-party
		without the approval of or additional consideration to Executive. Executive
		acknowledges and agrees that the consideration called for herein is good and
		sufficient consideration for the Company’s right to assign its rights
		under this Agreement.
	 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 
	 
		(g) Sections 10(a) through
		(f), inclusive, of this Agreement shall survive either termination of the
		employment relationship or termination of this Agreement for the full period
		set forth in Sections 10(a) through (e), inclusive.
	 

	 
		11. Employee Benefits. Executive shall be entitled to receive
		employee benefits and other employment-related perquisites as shall be
		established or revised by the Company from time to time for similarly situated
		employees. Executive shall receive full medical coverage, dependent medical
		coverage, life insurance, and such other employee benefits on the same terms as
		officers at the same level within the Company.
	 

	 
		12. Work for Hire. Executive agrees that any work,
		invention, idea or report which he produces or which results from or is
		suggested by the work Executive does on behalf of the Company, its parent,
		subsidiaries or affiliates is a “work for hire” (hereinafter referred
		to as “Work”) and will be the sole property of the Company. The
		Executive agrees to sign any documents, during or after employment, which the
		Company deems necessary to confirm its ownership of the Work, and Executive
		agrees to cooperate with the Company to allow the Company to take advantage of
		it ownership of such Work.
	 

	 
		13. Assignment of Agreement. Executive agrees that his services are
		unique and personal and that, accordingly, Executive may not assign his rights
		or delegate his duties or obligations under this Agreement. The Company may
		assign its rights, duties, and obligations under this Agreement to any
		successor to its business. This Agreement shall inure to the benefit of and be
		binding upon the Company’s successors and assigns.
	 

	 
		14. Indemnification of
		Executive. The Company
		shall indemnify the Executive and hold him harmless for acts or decisions made
		by him in good faith while performing services for the Company, its parent,
		subsidiaries and affiliates to the full extent allowed by law. The Company
		shall also use its reasonable efforts to obtain coverage for him under any
		insurance policy now in force or hereinafter obtained during the term of this
		Agreement covering the officers and directors of the Company against lawsuits,
		subject to the business judgment of the Board. The Company shall pay all
		expenses, including attorneys’ fees of an attorney selected and retained
		by the Company to represent the Executive, actually and necessarily incurred by
		the Executive in connection with the defense of such act, suit, or proceeding
		and in connection with any related appeal, including the cost of court
		settlements.
	 

	 
		15. Notices. Any notice, document, or other communication
		(hereinafter “Notice”) which either party may be required or may
		desire to give to the other party shall be in writing, and any such notice may
		be given or delivered personally or by mail. Any such notices given or
		delivered personally shall be given or delivered by hand to an officer of the
		entity to which they are being given or delivered or the individual, as the
		case may be, and shall be deemed given or delivered when so given or delivered
		by hand. Any such notices given or delivered by mail shall be deemed given or
		delivered three (3) days after it is deposited in the U.S. mail, certified or
		registered mail, return receipt requested, with all postage and fee prepaid,
		address to the person or entity in question as follows:
	 

	 
		If to the Executive:
	 

	 
		Douglas D. Dirks
	 

	 
		14180 Wild Quail Court
	 

	 
		Reno, Nevada 89511
	 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 
	 
		If to the Company:
	 

	 
		Robert Kolesar
	 

	 
		Chairman of the Board
	 

	 
		Employers Insurance
		Group
	 

	 
		9790 Gateway Drive, Suite
		200
	 

	 
		Reno, Nevada 89521
	 

	 
		With a copy to:
	 

	 
		Robert Kolesar
	 

	 
		Kolesar & Leatham
	 

	 
		3320 West Sahara Avenue, Suite
		380
	 

	 
		Las Vegas, Nevada 89102

	 

	 
		or, in either case, to such
		other address as either party may have previously notified the other pursuant
		to the provisions of this Section 15.
	 

	 
		16. Severability. In the event that any provision hereof shall be
		declared by a court of competent jurisdiction to be void or voidable as
		contrary to law or public policy, such declaration shall not affect the
		continuing validity or enforceability of any other provisions hereof insofar as
		it may be reasonable and practicable to continue to enforce such other
		provision in the absence of the provision which shall have been declared to be
		void and voidable;
	 

	 
		17. Remedy for Breach. Both parties recognize that the services
		to be performed by the Executive are special and unique. The Company will have
		the right to seek and obtain damages and any available equitable remedies for
		Executive’s breach of this Agreement. The Executive’s remedy for any
		breach of this Agreement is strictly limited to the Severance Pay called for
		herein.
	 

	 
		18. Mitigation of Damages. Executive shall not be required to
		mitigate damages or the amount of any payment provided under this Agreement by
		other employment or otherwise after the termination of employment hereunder,
		and any amounts earned by Executive, whether from self-employment or other
		employment shall not reduce the amount of any Severance Pay called for
		herein.
	 

	 
		19. Attorneys’ Fees and
		Costs. In any claim or
		dispute between the parties arising out of or associated with this Agreement or
		the breach hereof, the prevailing party shall be entitled to recover all
		reasonable attorneys’ fees, expenses, and costs thereof or associated
		therewith. The term “prevailing party” means the party obtaining
		substantially the relief sought via litigation or through an action in
		arbitration.
	 

	 
		20. Integration, Amendment, and
		Waiver. This Agreement
		and such other written agreements referenced in this Agreement, constitute the
		entire agreement between the parties pertaining to the subject matter contained
		in it except as expressly provided herein, and supersedes all prior agreements,
		representations, assurances, and understandings of the parties. No amendment
		of, addition to, or modification of this Agreement shall be binding unless
		executed in writing by all the parties. Any term or provision of this Agreement
		may be waived in a signed writing at any time by the party which is entitled to
		the benefit thereof, provided, however, that any waiver shall apply only to the
		specific event or omission waived and shall not
	 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 
	 
		constitute a continuing
		waiver. Any term or provision of this Agreement may be amended or supplemented
		at any time by a written instrument executed by all the parties hereto.
	 

	 
		21. Captions. The captions and section headings of this Agreement
		are for convenience and reference only, and shall have no effect on the
		interpretation or construction of this Agreement.
	 

	 
		22. Applicable Law. The substantive laws of the State of
		Nevada shall govern the validity, construction, interpretation, performance,
		and effect of this Agreement.
	 

	 
		23. Arbitration. Any controversy or claim arising out of this
		Agreement, other than an action to enforce the provisions of Section 10 herein
		or the breach thereof, shall be settled by arbitration according to the rules
		of the American Arbitration Association applicable to disputes arising in
		Nevada and under Nevada law. Any party to the arbitration may enter judgment
		upon the award rendered by the arbitrator in any court having jurisdiction
		thereof. The arbitrator shall not be entitled to amend or alter the terms of
		this Agreement. Notwithstanding this Section 23, the Company shall be entitled
		to seek any available equitable remedy for enforcement of provisions of this
		Agreement.
	 

	 
		24. Authorization. The Company and the Executive,
		individually and severally, represent and warrant to the other party that it
		has the authorization, power and right to deliver, execute and fully perform
		the obligations under this Agreement in accordance with its terms. The
		Executive represents and warrants to the Company that there is no restriction
		or limitation, by reason of this Agreement or otherwise, upon the
		Executive’s right or ability to enter into this Agreement and fulfill his
		obligations under this Agreement.
	 

	 
		25. Acknowledgment. Executive acknowledges that he has given
		a reasonable period of time to study this Agreement before signing it.
		Executive certifies that he has fully read, has received an explanation of, and
		completely understands the terms, nature, and effect of this Agreement.
		Executive further acknowledges that he is executing this Agreement freely,
		knowingly, and voluntarily and that Executive’s execution of this
		Agreement is not the result of any fraud, duress, mistake, or undue influence
		whatsoever. In executing this Agreement, Executive does not rely on any
		inducements, promises, or representations by the Company or any person other
		than the terms and conditions of this Agreement.
	 

	 
		IN WITNESS WHEREOF, we have
		executed this Agreement on the day and year herein above written.
	 

	 
		 
	 

	 
			
				
				  COMPANY:
				

			 	
				
				   
				

			 	
				
				  EXECUTIVE:
				

			 
	
				
				  By: 
				

			 	
				
				  
 /s/ Robert
				  Kolesar
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				  
 /s/ Douglas D.
				  Dirks
				

			 
	
				
				   
				

			 	
				
				

				
 	
				
				   
				

			 	
				
				   
				

			 	
				
				

				
 
	
				
				   
				

			 	
				
				  Name: Robert
				  Kolesar
				

			 	
				
				   
				

			 	  	
				
				  Name: Douglas D.
				  Dirks
				

			 

 

	 
		 
	 

	 
		 
	 

	 

	 
	 

	 
	 
		Appendix A
	 

	 
		Perquisites
	 

	 
		 
	 

	 
			
				
				  1.
				

			 	
				
				  Automobile Allowance
				  in the amount of $1,300.00 per month
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  Annual Executive
				  Physical Examination as a part of the Company’s executive wellness
				  program
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Life Insurance as a
				  part of the Company’s group life insurance program in an amount equal to 3
				  times the Executive’s Base Salary as defined in this employment
				  agreement.Exhibit 10.10
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		EMPLOYERS INSURANCE GROUP’S
	 

	 
		INCENTIVE BONUS PLAN
	 

	 
		

	 

	 
		TABLE OF CONTENTS
	 

	 
		

	 

	 
		SECTION I – INTRODUCTION AND PLAN PURPOSE
	 

	 
		

	 

	 
		SECTION II – PLAN PROVISIONS
	 

	 
		

	 

	 
		1.
	 

	 
		Definitions
	 

	 
		

	 

	 
		2.
	 

	 
		Term
	 

	 
		

	 

	 
		3.
	 

	 
		Eligibility of Plan Participants
	 

	 
		

	 

	 
		4.
	 

	 
		Performance Periods and Payment of Award
	 

	 
		

	 

	 
		5.
	 

	 
		Incentive Award Opportunities
	 

	 
		

	 

	 
		6.
	 

	 
		Performance Metrics
	 

	 
		

	 

	 
		7.
	 

	 
		Award Determination
	 

	 
		

	 

	 
		8.
	 

	 
		Termination of Employment
	 

	 
		

	 

	 
		9.
	 

	 
		Notification to Plan Participants
	 

	 
		

	 

	 
		10.
	 

	 
		Administration of the Plan
	 

	 
		

	 

	 
		11.
	 

	 
		Miscellaneous Provisions
	 

	 
		

	 

	 
		

	 

	 
		Appendix A
	 

	 
		Corporate Performance and Incentive Targets
	 

	 
		

	 

	 
		Appendix B
	 

	 
		Eligible Employees
	 

	 
		

	 

	 
		Appendix C
	 

	 
		Calculation Examples
	 

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		Section I – Introduction and Plan Purpose
	 

	 
		

	 

	 
		The Incentive Bonus Plan (the “Plan”) for the companies of
		Employers Insurance Group (the “Company”) is designed to:
	 

	 
		

	 

	 
		•
	 

	 
		Promote the achievement of the
		Company’s strategic and financial goals;
	 

	 
		

	 

	 
		•
	 

	 
		Reinforce and reward the officers of the
		Company for achieving annual goals and performance benefiting the stakeholders
		in the Company; and
	 

	 
		

	 

	 
		•
	 

	 
		Attract and retain the resources necessary
		to successfully lead and manage the Company.
	 

	 
		

	 

	 
		The Plan is designed to allow for a streamlined administrative process,
		with individual performance targets closely aligned with the strategic and
		financial goals of the Company.
	 

	 
		
 

	 

	 
		1
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		Section II – Plan Provisions
	 

	 
		

	 

	 
		1.
	 

	 
		Definitions
	 

	 
		

	 

	 
		For purposes of the Plan, the following terms shall have the meanings
		assigned to them:
	 

	 
		

	 

	 
		(a)
	 

	 
		“Annual Incentive Award” means remuneration paid to the
		Plan Participant pursuant to the terms of this Plan.
	 

	 
		

	 

	 
		(b)
	 

	 
		 “Annual Salary” means the amount paid to the Plan
		Participant in base salary during the Performance Period, exclusive of car
		allowance or other perquisites.
	 

	 
		

	 

	 
		(c)
	 

	 
		“Company” means Employers Insurance Group, Inc. and its
		parent, subsidiary and affiliated companies.
	 

	 
		

	 

	 
		(d)
	 

	 
		“Compensation Committee” means the Compensation
		Committee of the Board of Directors of Employers Insurance Group, Inc.
	 

	 
		

	 

	 
		(e)
	 

	 
		“Officer(s)” means all appointed officers of the
		Company.
	 

	 
		

	 

	 
		(f)
	 

	 
		“Plan” means the Incentive Bonus Plan set forth herein.
	 

	 
		

	 

	 
		(g)
	 

	 
		“Plan Participant(s)” means an employee who serves as an
		Officer of the Company.  Although an employee may serve in more than one
		officer position, an employee may only participate as a single officer.
	 

	 
		

	 

	 
		(h)
	 

	 
		“Performance Period” means January 1 through December 31
		of any given year of the Plan during which achievement of established goals
		shall be measured.
	 

	 
		

	 

	 
		2.
	 

	 
		Term
	 

	 
		

	 

	 
		The Plan shall commence January 1, 2006 and terminate at such time as the
		Plan is terminated by the Compensation Committee in its sole discretion.
	 

	 
		

	 

	 
		3.
	 

	 
		Eligibility of Plan Participants
	 

	 
		

	 

	 
		All Officers of the Company participate as Plan Participants for the full
		calendar months they are engaged in active employment as an Officer of the
		Company during a Performance Period.  An Officer who becomes eligible to
		participate in the Plan during the Performance Period shall have his/her Annual
		Incentive Award calculated on an annual basis and prorated for the full
		calendar months of the Performance Period during which the Officer was a Plan
		Participant.
	 

	 
		

	 

	 
		
 

	 

	 
		2
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		4.
	 

	 
		Performance Periods and Payment of Award
	 

	 
		

	 

	 
		The first performance period begins on January 1, 2006.  Subsequent
		performance periods will begin each January 1 thereafter, until such time as
		the Plan is terminated.  
	 

	 
		

	 

	 
		The Compensation Committee must approve the Annual Incentive Award before
		it is distributed.  The Annual Incentive Award shall be paid no later than
		March 15 or as soon as administratively practicable thereafter following the
		end of the applicable Performance Period.  
	 

	 
		

	 

	 
		5.
	 

	 
		Incentive Award Opportunities
	 

	 
		

	 

	 
		Annual Incentive Awards are based upon the achievement of the corporate
		performance target(s) of the Company and the Plan Participant’s individual
		annual goals.  The achievement of goals and/or objectives shall be
		weighted as set forth in Appendix A.    The Annual Incentive
		Award for each Plan Participant is expressed as a percentage of the Annual
		Salary of the Plan Participant for the Performance Period based on performance
		for the measures selected.  Annual corporate performance target(s) are
		established by the Compensation Committee and will be distributed to Plan
		Participants annually by the Chief Executive Officer no later than (30) days
		after the commencement of a new Performance Period other than the first
		Performance Period of the Plan.  The performance target(s), achievement
		thereof and corresponding Annual Incentive Award shall be recommended by the
		Chief Executive Officer to the Compensation Committee for approval.  The
		Compensation Committee shall determine the Annual Incentive Award of the Chief
		Executive Officer.  
	 

	 
		

	 

	 
		6.
	 

	 
		Performance Metrics
	 

	 
		

	 

	 
		(a)
	 

	 
		General.  The Annual Incentive Award for the Plan Participant
		is intended to reflect the Company’s achievement of specific corporate
		goals and each Plan Participant’s level of achievement of individual
		goals.
	 

	 
		

	 

	 
		(b)
	 

	 
		Establishing the Overall Company Performance Measures.  Prior
		to the beginning of each Performance Period, corporate performance targets will
		be recommended by the Chief Executive Officer and approved by the Compensation
		Committee.  Corporate performance targets will be consistent with the
		Company’s goals for the year and will always include at least one
		financial performance measure.
	 

	 
		

	 

	 
		(c)
	 

	 
		Individual Performance Goals.  Individual performance
		measures for each Plan Participant will be established prior to the beginning
		of each Performance Period.  Individual performance goals should focus on
		individual activities that (i) contribute to achievement of the Company’s
	 

	 
		
 

	 

	 
		3
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		goals and objectives and those of the Plan Participant’s department
		or division; and (ii) demonstrate that the Plan Participant is providing
		leadership in his/her position.  The Compensation Committee will establish
		individual performance goals for the Chief Executive Officer in collaboration
		with the Chief Executive Officer.  The Chief Executive Officer will
		establish performance goals for all other Plan Participants in collaboration
		with the Plan Participant and/or their direct supervisor.  
	 

	 
		

	 

	 
		(d)
	 

	 
		Annual Performance Appraisal and Modification of the Goals.
		 A Plan Participant’s achievement of his/her individual performance
		goals shall be evaluated by his/her supervisor in a written performance
		appraisal no later than March 1 of each year following the conclusion of a
		Performance Period
	 

	 
		.  
	 

	 
		

	 

	 
		(e)
	 

	 
		Unanticipated Corporate Events.  During a Performance Period,
		internal organizational changes in the Company, changes in Company priorities,
		or external events may affect achievement of corporate performance targets
		selected for that Performance Period.  Such corporate events include, but
		are not limited to, extraordinary, nonrecurring, or unusual events,
		acquisitions or dispositions of businesses or assets by the Company, material
		changes in revenue-sharing or other similar allocations between divisions or
		units of the Company.  To address these contingencies, as soon as
		administratively practical following each Performance Period, the Chief
		Executive Officer will review the corporate performance targets in the context
		of these events (if any); the events’ impact on the progress toward
		attaining the corporate performance targets; and the appropriateness of
		modifying any performance measure or corporate performance target in the
		context of these events.  Proposed changes to the measures used to
		evaluate achievement of corporate performance targets shall be recommended by
		the Chief Executive Officer for approval by the Compensation Committee.
		 The Compensation Committee shall determine whether any change in a
		measure being used, or a performance target related to that measure, should be
		made and how any adjustment shall be reflected in measurement of achievement of
		the corporate performance targets.
	 

	 
		

	 

	 
		7.
	 

	 
		Award Determination
	 

	 
		

	 

	 
		(a)
	 

	 
		The Compensation Committee, based on the Chief Executive Officer’s
		recommendations, will approve the Annual Incentive Award for each Plan
		Participant for the Performance Period.  
	 

	 
		

	 

	 
		(b)
	 

	 
		The amount of any Plan Participant’s Annual Incentive Award will be
		determined, in part, by the achievement of the established corporate
		performance targets and shall be factored into the Plan Participant’s
	 

	 
		
 

	 

	 
		4
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		Annual Incentive Award in accordance with Appendix B attached hereto.
		 The Compensation Committee shall evaluate the achievement of the
		corporate performance targets with the assistance of the Chief Executive
		Officer of the Company and in accordance with Appendix A attached hereto.
		   
	 

	 
		

	 

	 
		(c)
	 

	 
		The amount of any Annual Incentive Award for a Plan Participant for a
		Performance Period also will be determined, in part, during the annual
		appraisal by comparing actual performance, financial as well as non-financial,
		of the Plan Participant against the individual performance goals established
		annually for the Plan Participant.  Assessment of a Plan
		Participant’s performance will be made by the Chief Executive Officer, in
		his or her discretion, with information and recommendations from the Plan
		Participant’s supervisor.  The Chief Executive Officer may, in his
		sole discretion, increase an Annual Incentive Award for any Plan Participant if
		he determines (i) that a Plan Participant deserves recognition for
		extraordinary achievement during a Performance Period; or (ii) that (a) the
		progress to attain performance targets or goals or the appropriateness of such
		targets or goals for a Performance Period have been affected by one or more
		corporate or other events; and (b) a Plan Participant has been impacted
		negatively by such events.
	 

	 
		

	 

	 
		(d)
	 

	 
		The Compensation Committee shall determine the Annual Incentive Award for
		the Chief Executive Officer based upon the achievement of the corporate
		performance target(s) and in accordance with Appendix A.  However, the
		Compensation Committee may increase the Annual Incentive Award of the Chief
		Executive Officer above the levels set forth in Appendix A in its sole
		discretion based on sound business judgment.
	 

	 
		

	 

	 
		8.
	 

	 
		Termination of Employment
	 

	 
		

	 

	 
		Plan Participants on a duly authorized leave of absence will be eligible
		to participate only for the full calendar months during which they are or were
		actively at work during the Performance Period.  Subject only to the
		exceptions outlined below, a Plan Participant is eligible for payment of the
		Annual Incentive Award only if that Plan Participant is employed by the Company
		as of December 31 of the year immediately preceding the payment.  
	 

	 
		

	 

	 
		In the event any Plan Participant ceases to be an employee of the Company
		before the end of a Performance Period during which such Plan Participant is
		participating in the Plan, the Plan Participant’s Annual Incentive Award
		for that Performance Period will be determined based upon the type of
		termination event, as described below:
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		
 

	 

	 
		5
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		(a)
	 

	 
		Involuntary Termination.  
	 

	 
		

	 

	 
		(1) A Plan Participant who is terminated prior to the end of a
		Performance Period for unacceptable performance or misconduct (including but
		not limited to failure to comply with Company policy, unauthorized disclosure
		of Company confidential information, or insubordination), as determined by the
		Compensation Committee in its sole discretion, will not be entitled to receive
		any Annual Incentive Award for the Performance Period.
	 

	 
		 (2)  A Plan Participant who is subject to an involuntary
		termination other than as described in paragraph 8(a)(1) above prior to the end
		of a Performance Period will be entitled to an Annual Incentive Award prorated
		for the full months of active employment with the Company during the
		Performance Period.
	 

	 
		

	 

	 
		(b)
	 

	 
		Voluntary Termination.  In general, a Plan Participant who
		voluntarily terminates employment will not be entitled to receive any Annual
		Incentive Award for the Performance Period in which the voluntary termination
		occurs.  However, in the event that the termination of employment is
		governed by a separate agreement between the Plan Participant and the Company
		which provides for the Plan Participant to resign his/her employment with the
		Company, the terms of the separate agreement shall set forth the amount of the
		Annual Incentive Award to be paid to the Plan Participant.  If the
		separate agreement does not address the Annual Incentive Award, the Plan
		Participant will not be entitled to receive any Annual Incentive Award.
	 

	 
		

	 

	 
		9. 
	 

	 
		Notification to Plan Participants
	 

	 
		

	 

	 
		The Chief Executive Officer of the Company shall notify each Plan
		Participant of his/her eligibility in the Plan, the level of participation for
		which they qualify in accordance with Appendix B, and the corporate performance
		target(s) for the new Performance period.  This notification shall be sent
		to the Plan Participants no later than January 31 of each Performance Period
		other than the first Performance Period of the Plan.  Individual
		performance goals shall be established for each Plan Participant during the
		annual appraisal described in paragraph 7(c) hereinabove.
	 

	 
		

	 

	 
		10. 
	 

	 
		Administration of the Plan
	 

	 
		

	 

	 
		The Compensation Committee shall have full discretionary power and final
		authority to construe, interpret, and administer the Plan.  No member of
		the Committee shall be personally liable for damages to any Plan Participant
		with respect to the administration of this Plan.  The determinations of
		the Compensation Committee shall be final and binding on all Plan Participants.
		 The Compensation Committee may rely upon advice, counsel and assistance
		of the Chief Executive Officer (“CEO”) or any other member of the
		executive management of the Company in carrying out the Plan, except with
		respect to any
	 

	 
		
 

	 

	 
		6
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		award concerning that executive officer.  The Compensation Committee
		may engage professional services as needed to assist it in administering the
		Plan.
	 

	 
		

	 

	 
		

	 

	 
		11.
	 

	 
		Miscellaneous Provisions
	 

	 
		

	 

	 
		(a)
	 

	 
		Amendment and Termination of Plan.  The Compensation
		Committee reserves the right to make amendments to the Plan that it believes
		appropriate or to terminate the Plan at any time, with or without notice, in
		whole or in part, in its sole discretion.
	 

	 
		

	 

	 
		(b)
	 

	 
		No Right to Continued Employment.  The designation of an
		individual as a Plan Participant under the Plan does not alter the nature of
		the Plan Participant’s employment relationship or otherwise entitle the
		Plan Participant to continued employment by the Company.
	 

	 
		

	 

	 
		(c)
	 

	 
		Relationship to Other Plans.  Participation in and payments
		under this Plan shall not affect or be affected by participation or payments
		under any other plan sponsored by the Company.
	 

	 
		

	 

	 
		(d)
	 

	 
		Non-transferability of Awards.  No amount payable at any time
		under the Plan shall be subject to alienation, sale, transfer, assignment,
		bankruptcy, pledge, attachment, charge or encumbrance of any kind nor in any
		manner be subject to the debts or liabilities of any person and any attempt to
		so alienate or subject any such amount shall be void.
	 

	 
		

	 

	 
		(e)
	 

	 
		Governing Law. This Agreement shall be governed by and construed
		in accordance with the laws of the State of Nevada
	 

	 
		

	 

	 
		(f)
	 

	 
		Dispute Resolution. Any unresolved differences of opinion between
		the Company and a Plan Participant arising out of or relating to this Incentive
		Bonus Plan shall be settled by referral to the Chief Executive Officer of the
		Company.  If the Chief Executive Officer is unable to resolve the dispute
		within thirty (30) days after reference to him, any party involved in the
		dispute may require the dispute to be referred to mediation under the
		commercial mediation rules of the American Arbitration Association.  If
		mediation is not successful in resolving the dispute, any involved party may
		require that the dispute be referred to arbitration in front of a single
		arbitrator in accordance with the Commercial Arbitration Rules of the American
		Arbitration Association and the Expedited Procedures thereof. Judgment upon the
		award rendered by the arbitrator may be entered in any court having
		jurisdiction thereof.  The arbitration shall take place in Washoe County,
		Nevada.
	 

	 
		

	 

	 
		(g)
	 

	 
		No Funding.  The right of a Participant to benefits under
		this Plan shall constitute a contractual liability of the Company to the
		Participant.  All amounts payable to a Participant under the Plan shall be
		paid out of the Company’s general
	 

	 
		
 

	 

	 
		7
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		assets.   The Company shall not be required to establish or
		maintain any special or separate fund, or otherwise segregate assets, to assure
		that payments under the Plan shall be made.  No Participant shall have any
		interest in any particular assets of the Company by reasons of its obligations
		hereunder.  To the extent that any person acquires a right to receive
		payment from the Company under this Plan, such right shall be no greater than
		the right of an unsecured creditor of the Company.
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		2006 Incentive Bonus Plan MLN rev 4-04-06
	 

	 
		
 

	 

	 
		8
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		APPENDIX A
	 

	 
		

	 

	 
		The corporate performance target for 2006 is a combined ratio of 102.
		 The combined ratio shall be calculated from statutory financial
		statements as follows:
	 

	 
		

	 

	 
		Combined Ratio = [LAE + Loss/Earned Premium] + [Underwriting expense/Net
		Written Premium]
	 

	 
		

	 

	 
		Accomplishment of this target shall be weighted in the corporate
		component of a Plan Participant’s Annual Incentive Award as follows:
	 

	 
		

	 

	 
		Percentage of
	 

	 
		Combined Ratio
	 

	 
		Goal Accomplishment
	 

	 
		

	 

	 
		98
	 

	 
		150%
	 

	 
		

	 

	 
		99
	 

	 
		135%
	 

	 
		

	 

	 
		100
	 

	 
		120%
	 

	 
		

	 

	 
		101
	 

	 
		110%
	 

	 
		

	 

	 
		102
	 

	 
		100%
	 

	 
		

	 

	 
		103
	 

	 
		80%
	 

	 
		

	 

	 
		104
	 

	 
		70%
	 

	 
		

	 

	 
		105
	 

	 
		60%
	 

	 
		

	 

	 
		106
	 

	 
		45%
	 

	 
		

	 

	 
		107
	 

	 
		25%
	 

	 
		

	 

	 
		108
	 

	 
		0%
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		
 

	 

	 
		9
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
		Annual Incentive Awards shall be based upon a Plan Participant’s
		position in the Company and calculated as a percentage of the Plan
		Participant’s Annual Salary for the Performance Period as set forth below:

	 

	 
		

	 

	 
		

	 

	 
		Officer Level
	 

	 
		Percentage of Salary
	 

	 
		

	 

	 
		Vice President
	 

	 
		40%
	 

	 
		

	 

	 
		Senior Vice President
	 

	 
		&
	 

	 
		60%
	 

	 
		Regional President
	 

	 
		

	 

	 
		Executive Vice President &
	 

	 
		70%
	 

	 
		President and COO
	 

	 
		

	 

	 
		CEO
	 

	 
		TBD
	 

	 
		

	 

	 
		

	 

	 
		Annual Incentive Awards shall be apportioned between corporate
		performance and individual performance as follows:
	 

	 
		

	 

	 
		Corporate Performance
	 

	 
		60%
	 

	 
		Individual Performance
	 

	 
		40%
	 

	 
		
 

	 

	 
		10
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		APPENDIX B
	 

	 
		

	 

	 												
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Executive Bonus Plan – 2006
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Eligible Employees
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Tier 1
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Title
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Employee
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				CEO
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Douglas Dirks
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Tier 2
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				President and COO
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Martin Welch
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Executive Vice Presidents
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				General Counsel
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Lenard Ormsby
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Chief Financial Officer
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				William (Ric) Yocke
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Strategy and Corporate Development
			 

		  	
			 
				 
			 

		  	
			 
				Ann Nelson
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Tier 3
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Senior Vice Presidents
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Chief Administrative Officer
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				John Nelson
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Chief Claims Officer
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Stephen Festa
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Chief Information Officer
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Paul Ayoub
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Chief Underwriting Officer
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				OPEN
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Chief Operating Officer – EOH
			 

		  	
			 
				 
			 

		  	
			 
				Mary Lushina
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Regional Presidents
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Western Region
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				George Tway
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Strategic Markets
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				David Quezada
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Pacific Region
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				OPEN
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				

			 

			 
				

			 

			 
				

			 

			 
				

			 

			 
				

			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  

	 
		
 

	 

	 
		11
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
	 

	 
		

	 

	 

	 												
	
			 
				Tier 4
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				All Vice Presidents
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Underwriting
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Western Region
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Patrick Maxwell
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Strategic Markets
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				James Konewko
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Pacific Region
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				OPEN
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Claims
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Western Region
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Christina Ozuna
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Pacific Region
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Richard Crosby
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Assistant General Counsel
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Mary Lynn Newman
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Don Smith
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Michael Stock
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Jean Parraguirre
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Lori Brown
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Government Relations
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Jim Werbeckes
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Corporate Business Solutions
			 

		  	
			 
				 
			 

		  	
			 
				Regina Harris
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Marketing
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Earl Paige
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Shayla Mulder
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Gil Hubbell
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Patrick O'Brien
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Chief Actuary
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Douglas Zearfoss
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Corporate Controller
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Cynthia Morrison
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Collections
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Sharon Morgan
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Administration
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Diane Maxey
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				IT Infrastructure
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Richard Hallman
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				IT Applications
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Jim Jones
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Loss Prevention
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				OPEN
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  

	 
		
 

	 

	 
		12
	 

	 
		

	 

	 
		

	 

	 
	 
		________________________________________________________________________________________________

	 

	 
		Incentive Bonus Plan
	 

	 
		

	 

	 
		

	 

	 
		Appendix C
	 

	 
		

	 

	 
		Example 1
	 

	 
		

	 

	 
		The Company achieves a combined ratio of 101 for 2006.  John Doe,
		Senior Vice President accomplishes ninety percent (90%) of his designated
		divisional/departmental and individual goals.  His salary is $200,000 as
		of December 31, 2006.  Mr. Doe’s bonus would be calculated as
		follows:
	 

	 
		

	 

	 
		$200,000 x 60% = $120,000
	 

	 
		Target bonus
	 

	 
		

	 

	 
		$120,000 x .6 x 110% =
	 

	 
		$79,200.00
	 

	 
		corporate component
	 

	 
		

	 

	 
		$120,000 x .4 x 90%  =
	 

	 
		$43,200.00
	 

	 
		individual/departmental component
	 

	 
		

	 

	 
		$122,400.00
	 

	 
		Annual Incentive Award
	 

	 
		

	 

	 
		Example 2
	 

	 
		

	 

	 
		Using the calculation above in Example 1, assume that John Doe is
		involuntarily terminated from employment due to a layoff on November 4, 2006,
		or Jake Smith joins the Company February 26, 2006 as a Senior Vice President
		and whose individual achievement matches that of John Doe, their bonuses would
		be:
	 

	 
		

	 

	 
		$122,400/12 x 10 = $102,000
	 

	 
		

	 

	 
		

	 

	 
		
 

	 

	 
		13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]