Document:

exv10w5

Exhibit 10.5

FEDERAL TAX SHARING AGREEMENT

     This FEDERAL TAX SHARING AGREEMENT (“Agreement”), effective for tax years beginning on or
after the first day of January 2002, is entered into by and among Liberty Mutual Holding Company
Inc. (“LMHC”), a Massachusetts mutual insurance holding company, and the parties to this Agreement
(collectively, “Liberty Mutual Group”).

     WHEREAS, the parties to this Agreement file a consolidated U.S. federal income tax return;

     WHEREAS, the parties to this Agreement desire to set forth their rights and obligations with
respect to the determination and settlement of federal income tax liabilities; to allocate Liberty
Mutual Group’s consolidated U.S. federal income tax liability equitably to each party in accordance
with a rational, systematic formula that will take into account each party’s relative contribution
to such liability; to ensure that an allocation for a particular tax year to each party reflects
the parties’ best estimate of its final liability after adjustments for tax audits or otherwise; to
compensate any party for the use of tax losses and credits by other parties; to promptly settle all
such tax liability allocations; and to allow LMHC to administer and interpret this Agreement for
the collective benefit of Liberty Mutual Group; and

     WHEREAS, Statement of Statutory Accounting Principles No. 10 (“SSAP 10”) requires tax
allocations to be economic transactions, pursuant to a written income tax allocation agreement, and
accounted for consistent with Financial Accounting Standards No. 109, as modified by SSAP 10, in
order to be recognized by reporting entities that file a consolidated income tax return.

     NOW THEREFORE, in consideration of the mutual promises and covenants contained herein,
and consistently applied in accordance with the intentions outlined above, the parties agree
as follows:

	1.	 	DEFINITIONS

     For purposes of this Agreement, the terms set forth below shall be defined as follows:

 

 

	 	a)	 	Tax Reporting Segment (“TRS”): Any legal entity that is part of Liberty
Mutual
Group; or any group of legal entities and/or reporting segments within a legal entity
that operate as a single business unit or division thereof as determined from time to
time. Any legal entity subject to regulation as an insurance company by its state of
domicile shall not be included in a TRS with any other legal entity other than its
wholly-owned subsidiaries.
	 
	 	b)	 	Group Tax Liability: All taxes properly reflected on the U.S. consolidated federal
income tax return of Liberty Mutual Group for tax years beginning on or after the
effective date of this Agreement, or as revised or expected to be revised by amended
return, tax audit, administrative or judicial determination or re-determination or
otherwise, together with any interest, penalties, or other assessments. For purposes
of this definition “taxes” means any income taxes or other taxes, charges or
assessments imposed on corporations by the Internal Revenue Code (“Code”).
	 
	 	c)	 	Member: A corporation that joins or is required to join Liberty Mutual Group’s U.S.
consolidated federal income tax return pursuant to Code section 1504(a) and the
regulations promulgated thereunder.
	 
	 	d)	 	Separate Tax Return Liability: The expected separate federal income tax liability
calculated for each TRS under the applicable provisions of the Code and regulations
promulgated thereunder as though such TRS had always filed a separate federal
income tax return. Any current year, carryover or carrybacks of net operating
losses, net capital losses, excess tax credits, or other tax attributes shall be taken into
account to the extent such carryover, carryback, credit, or other attribute has reduced
the Group Tax Liability in the current or in a prior tax year. To the extent a TRS’
items of separate taxable income would be accorded a different tax treatment by
operation of the consolidated return regulations, such TRS’ Separate Tax Return
Liability shall be computed consistent with the consolidated return provisions to the
extent such item resulted in an increase or decrease to the Group Tax Liability in the
current or in a prior tax year.

	2.	 	TAX SHARING

	 	a)	 	The taxes payable to LMHC (or its authorized designee) by each TRS under this
Agreement shall be based on the Separate Tax Return Liability of each TRS for the
applicable tax year.

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	 	b)	 	To the extent the sum of the Separate Tax Return Liabilities of all TRS exceeds or
is
less than the Group Tax Liability, such difference shall be allocated to each TRS to
the extent such TRS’ items or attributes are reflected in the Group Tax Liability.
	 
	 	c)	 	The surtax exemption and bracket benefits to which Liberty Mutual Group as a
whole is entitled shall be allocated exclusively to Liberty Mutual Insurance Company.
	 
	 	d)	 	Computation of each TRS Separate Tax Return Liability shall be made
periodically
during the year by Corporate Taxation in Liberty Mutual Group’s Corporate
Financial Department, at times consistent with and in accordance with the usual
procedures followed in determining the Group Tax Liability.

	3.	 	ALTERNATIVE MINIMUM TAX (AMT)

	 	a)	 	If the Group Tax Liability includes a liability for AMT, such AMT shall be
proportionally allocated to all TRS whose Separate Tax Return Liability includes a
liability for AMT, but not to exceed the liability for AMT included in the TRS’
Separate Tax Return Liability. Any AMT liability in excess of the sum of each TRS’
Separate Tax Return Liability for AMT shall be allocated to Liberty Mutual Insurance
Company.
	 
	 	b)	 	To the extent a TRS is allocated a liability for AMT, such TRS shall be
allocated an
equivalent minimum tax credit carryforward which shall be taken into account in
such TRS’ Separate Tax Return Liability in subsequent tax years.

	4.	 	SETTLEMENT OF TAXES PAYABLE/RECEIVABLE

     Estimated federal tax payments shall be settled between each TRS and LMHC (or its authorized
designee) on the 12th day of April, June, September, December and March. Payments
reflecting the final tax return liability for a given tax year will be settled after the filing of
Liberty Mutual Group’s federal income tax return. Final settlements will be due within 30 days of
receipt of the statement of balances due or receivable.

	5.	 	MATTERS CONCERNING THE RETURN

	 	a)	 	Filing the Return: LMHC shall file, or cause to be filed, the U.S. consolidated
federal income tax return and any amended returns for each taxable year.

3

 

	 	b)	 	Payment of Group Tax Liability: LMHC (or its authorized designee)
shall pay, or cause to be paid, the Group Tax Liability for each taxable year on behalf
of Liberty Mutual Group.

6. AUDITS AND OTHER ADJUSTMENTS

     Payment of the tax sharing amount is intended to reflect each TRS’ best estimate of its final
tax liability with respect to a given tax year. To the extent the Group Tax Liability is adjusted
for any tax year as a result of an amended return, tax audit, administrative or judicial
determination or re-determination or otherwise, the Separate Tax Return Liability for each TRS
shall be recomputed to give effect to such adjustments. Any resulting additional TRS tax benefit or
tax liability shall be settled with LMHC (or its authorized designee) within 30 days of receipt of
a refund or notice of deficiency with respect to the Group Tax
Liability by LMHC. Copies of all tax
returns, related schedules, work papers, all material records, and other documents shall be
maintained until the expiration of the statute of limitations, including extensions.

7. EARNINGS AND PROFITS

     Pursuant to Code section 1552 and the regulations promulgated thereunder, and to regulation
section 1.1502-33, for the purpose of determining earnings and profits of each Member of the
affiliated group, LMHC (or Liberty Mutual Insurance Company) has filed elections with the Internal
Revenue Service for and on behalf of Liberty Mutual Group to allocate the Group Tax Liability.
Nothing in this Agreement shall be construed to affect the determination or allocation of tax
required pursuant to these elections, or any amendments or modifications thereto, for the purpose
of determining the earnings and profits of the members of Liberty Mutual Group; and LMHC, in its
sole discretion, is authorized to seek any change in the method of calculating earnings and profits
as it deems desirable.

8. CONDUCT OF DISPUTES

     LMHC, as common parent of Liberty Mutual Group, shall be the sole agent for each Member and
any successor of any Member pursuant to regulation section 1.1502-77(a). LMHC shall control the
conduct of any audit and the defense of any suit, action or proceeding resulting therefrom. Each
Member will cooperate with LMHC in these proceedings and provide such assistance and documents,
without charge, as may be requested by LMHC for such purpose. LMHC will provide Members with access
to such records and tax returns as appropriate to facilitate

4

 

such cooperation. Notwithstanding any other provisions in this Agreement, if an increase to the
Group Tax Liability is the result of the failure of a Member to maintain proper records to support
items reflected in Liberty Mutual Group’s consolidated income tax return, such Member shall be
fully liable for such increase as well as any related penalties and interest.

9. MEMBER ENTERING OR DEPARTING GROUP

     It is the intent of the parties that LMHC and all corporations that have consented or are
required to join with LMHC in the filing of a consolidated federal income tax return shall become
a party to this Agreement effective as of the first date such party becomes a Member. Members that
are no longer eligible to join in the filing of a consolidated return with LMHC shall remain a
party to this Agreement for all tax years for which they were included in the consolidated return.

10. SUCCESSORS AND ASSIGNS

     This Agreement and all of its provisions hereof shall be binding upon and shall inure to the
benefit of the parties and their respective successors.

11. INDEMNIFICATION

     Each party shall pay and be responsible for, and shall indemnify, defend and hold harmless all
other parties to this Agreement from and against all liabilities allocated to it under this
Agreement. If any party pays or has paid any Group Tax Liability for which another party to this
Agreement is or becomes liable pursuant to the terms of this Agreement, appropriate reimbursement
shall be made no later than 30 days after demand together with interest calculated on such
reimbursement at the interest rate specified in Code section 6621(a)(2) from the date such payment
is due pursuant to this Agreement to the date of reimbursement. The portion of any refund, rebate
or reimbursement received by any party to which another party is entitled pursuant to this
Agreement shall be paid over within 30 days to the party which is entitled thereto. Any other
payments required to be made between the parties pursuant to this Agreement which are not made in a
timely fashion shall bear interest at the interest rate specified in Code section 6621(a)(2) from
the date the payment is due until the date the payment is made.

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12. COMPLETE AGREEMENT

     This Agreement shall constitute the entire agreement among the parties with respect to the
subject matter hereof and shall supersede any previous agreements, negotiations, commitments and
writings with respect to such subject matter effective for tax years beginning after January 1,
2002.

13. GOVERNING LAW

     This Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts, without regard to its principles of conflicts of law.

14. AMENDMENTS

     This Agreement may not be modified or amended except by an agreement in writing signed by the
parties hereto.

15. ADMINISTRATION

     This Agreement shall be administered by the Vice President and Director of Corporate Taxation
of LMHC, or in his absence, by an individual designated by the Chief
Financial Officer of LMHC.

6

 

     IN WITNESS WHEREOF, the parties have caused their signatures to be affixed to this
Agreement effective as of the date first above written, by their respective duly authorized officers.

	 	 	 	 	 	 	 	 	 

	LIBERTY MUTUAL HOLDING COMPANY INC.	 	CONSOLIDATED INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	AMERICA FIRST INSURANCE COMPANY	 	EMPLOYERS INSURANCE COMPANY
          OF WAUSAU	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	AMERICA FIRST LLOYDS INSURANCE
          COMPANY 	 	EXCELSIOR INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gulf States AIF INC
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	It’s attorney in fact

          by Gary J. Ostrow, Vice President 	 	Title:
	 	Vice President	 	 
	 
	AMERICAN AMBASSADOR CASUALTY
          COMPANY 	 	GLOBE AMERICAN CASUALTY COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	BRIDGEFIELD CASUALTY INSURANCE COMPANY	 	GOLDEN EAGLE INSURANCE CORPORATION	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President, Corporation Taxation	 	 
	 
	BRIDGEFIELD EMPLOYERS INSURANCE
          COMPANY 	 	HAWKEYE-SECURITY INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	COLORADO CASUALTY INSURANCE
          COMPANY 	 	INDIANA INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President and Director of Corporate
          Taxation	 	Title:
	 	Vice President	 	 

7

 

    	 	 	 	 	 	 	 	 	 
	LIBERTY INSURANCE COMPANY OF
          AMERICA 	 	LIBERTY NORTHWEST INSURANCE
          CORPORATION	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	LIBERTY INSURANCE CORPORATION	 	LIBERTY PERSONAL INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	LIBERTY INSURANCE UNDERWRITERS INC.	 	LIBERTY SURPLUS INSURANCE CORPORATION	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	LIBERTY LIFE ASSURANCE COMPANY
          OF BOSTON	 	MID-AMERICAN FIRE & CASUALTY
          COMPANY 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	LIBERTY LLOYDS OF TEXAS INSURANCE
         COMPANY	 	NATIONAL INSURANCE ASSOCIATION	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Berkeley management Corporation	 	By: 	 	Gary J. Ostrow	 	 
	
           

        	 	It’s attorney-in-fact
Gary J. Ostrow, Vice President	 	Title: 	 	Vice President	 	 
	 
	LIBERTY MUTUAL FIRE INSURANCE
         COMPANY	 	NORTH PACIFIC INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 		 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	 	 	Title: 	 	Vice President	 	 
	 
	LIBERTY MUTUAL INSURANCE COMPANY	 	OREGON AUTO INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	 	 	PEERLESS INDEMNITY INSURANCE
          COMPANY 	 	 
	 
	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          

        	 	 	 	By: 	 	Gary J. Ostrow	 	 
	
          

        	 	 	 	Title: 	 	Vice President	 	 

8

 

	 	 	 	 	 	 	 	 	 

	PEERLESS INSURANCE COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 
	 
	SAN DIEGO INSURANCE COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 

	Title:

	 	Vice President, Corporate Taxation
	 	 	 	 	 	 
	 
	THE FIRST LIBERTY INSURANCE
          CORPORATION	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 
	 
	THE MIDWESTERN INDEMNITY COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 
	 
	THE NETHERLANDS INSURANCE COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 
	 
	WAUSAU BUSINESS INSURANCE COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 
	 
	WAUSAU GENERAL INSURANCE COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 
	 
	WAUSAU UNDERWRITERS INSURANCE
          COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 

9

 

AMENDMENT NO. 1

(the “Amendment”)

to

FEDERAL TAX SHARING AGREEMENT

(the “Agreement”)

by and among

Liberty Mutual Holding Company Inc., a Massachusetts mutual holding company, and the
parties to the Agreement listed on the signature pages of the Agreement and the signature pages
of this Amendment.

The Agreement is hereby amended as follows:

1. Section 14 of the Agreement is amended and restated as follows:

This Agreement may not be modified, amended or assigned except by an
agreement in writing signed by the parties hereto.

2. Following any and all necessary regulatory approvals, this Amendment shall be
effective retroactively to the effective date of the Agreement.

IN WITNESS WHEREOF, the parties have caused their signatures to be affixed to this
Amendment this 15th day of February, 2006, by their respective duly authorized
officers.

    	 	 	 	 	 	 	 	 	 
	LIBERTY MUTUAL HOLDING COMPANY
          INC. 	 	AMERICAN AMBASSADOR CASUALTY
          COMPANY 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	AMERICA FIRST INSURANCE COMPANY	 	BRIDGEFIELD CASUALTY INSURANCE
          COMPANY 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	AMERICA FIRST LLOYDS INSURANCE
          COMPANY	 	BRIDGEFIELD EMPLOYERS INSURANCE
          COMPANY 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gulf States AIF, Inc.	 	By: 	 	Gary J. Ostrow	 	 
	
          

        	 	Its attorney in fact by

          Gary J. Ostrow, Vice President	 	Title: 	 	Vice President	 	 
	 	 	COLORADO CASUALTY INSURANCE
          COMPANY	 	 
	 
	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          

        	 	 	 	By: 	 	Gary J. Ostrow	 	 
	
          

        	 	 	 	Title: 	 	Vice President	 	 
	 

1

 

    	 	 	 	 	 	 	 	 	 
	CONSOLIDATED INSURANCE COMPANY	 	LIBERTY INSURANCE CORPORATION	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	EMPLOYERS INSURANCE COMPANY
          OF WAUSAU	 	LIBERTY INSURANCE UNDERWRITERS
          INC. 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	EXCELSIOR INSURANCE COMPANY	 	LIBERTY LIFE ASSURANCE COMPANY
          OF BOSTON	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	GLOBE AMERICAN CASUALTY COMPANY	 	LIBERTY LLOYDS OF TEXAS INSURANCE
          COMPANY 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Berkeley management Corporation	 	 
	
          Title: 

        	 	Vice President 	 		 	It’s attorney-in-fact
Gary J. Ostrow, Vice President	 	 
	 
	GOLDEN EAGLE INSURANCE CORPORATION	 	LIBERTY MUTUAL FIRE INSURANCE
          COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President, Corporate Taxation	 	Title: 	 	Vice President	 	 
	 
	HAWKEYE-SECURITY INSURANCE COMPANY	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	INDIANA INSURANCE COMPANY	 	LIBERTY NORTHWEST INSURANCE
          CORPORATION	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	By: 	 	Gary J. Ostrow	 	 
	
          Title: 

        	 	Vice President 	 	Title: 	 	Vice President	 	 
	 
	LIBERTY INSURANCE COMPANY OF
          AMERICA 	 	 	 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	
          By: 

        	 	Gary J. Ostrow 	 	 	 	 	 	 
	
          Title: 

        	 	Vice President 	 	 	 	 	 	 

2

 

	 	 	 	 	 	 	 	 	 

	LIBERTY PERSONAL INSURANCE COMPANY	 	NORTH PACIFIC INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	LIBERTY SURPLUS INSURANCE CORPORATION	 	OREGON AUTOMOBILE INSURANCE
          COMPANY 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	LM GENERAL INSURANCE COMPANY	 	PEERLESS INDEMNITY INSURANCE
          COMPANY 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	LM INSURANCE CORPORATION	 	PEERLESS INSURANCE COMPANY 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	LM PERSONAL INSURANCE COMPANY	 	SAN DIEGO INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	LM PROPERTY AND
CASUALTY INSURANCE
          COMPANY	 	THE FIRST LIBERTY INSURANCE
          CORPORATION 	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	MID-AMERICAN FIRE & CASUALTY
          COMPANY 	 	THE MIDWESTERN INDEMNITY COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	Title:
	 	Vice President	 	 
	 
	NATIONAL INSURANCE ASSOCIATION	 	THE NETHERLANDS INSURANCE COMPANY	 	 
	 
	/s/ Gary J. Ostrow	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 
	By:

	 	The National Corporation	 	By:
	 	Gary J. Ostrow	 	 
	 

	 	Its attorney in fact by
Gary J. Ostrow,
          Vice President 	 	Title:
	 	Vice President	 	 

3

 

	 	 	 	 	 	 	 	 	 

	WAUSAU BUSINESS INSURANCE COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 
	 
	WAUSAU GENERAL INSURANCE COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 

	Title:

	 	Vice President
	 	 	 	 	 	 
	 
	WAUSAU UNDERWRITERS INSURANCE COMPANY	 		 	 
	 
	/s/ Gary J. Ostrow	 	 	 	 
	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	
	 	 	 	 
	Title:

	 	Vice President
	 	 	 	 	 	 

4

 

AMENDMENT NO. 2

(the “Amendment”)

to

FEDERAL TAX SHARING AGREEMENT

(the “Agreement”)

by and among

Liberty Mutual Holding Company Inc., a Massachusetts mutual holding company, and the parties
to the Agreement listed on the signature pages of the Agreement and the signature pages of
this Amendment.

WHEREAS, The Ohio Casualty Insurance Company, an Ohio corporation (“OCIC”), American Fire and
Casualty Company, an Ohio corporation (“AFCC”), Ohio Security Insurance Company, an Ohio
corporation (“OSIC”), Ohio Casualty of New Jersey, Inc., an Ohio corporation (“OCNJ”), West
American Insurance Company, an Indiana corporation (“WAIC”) and Avomark Insurance Company, an
Indiana corporation (“AIC”) are member companies of the Liberty Mutual Agency Markets strategic
business unit, of the Liberty Mutual Group under which certain insurance companies within Liberty
Mutual Group market their insurance products to the public using independent agents; and

WHEREAS the parties deem it in their best interests to add OCIC, AFCC, OSIC, OCNJ, WAIC and AIC as
parties to the Agreement;

NOW, THEREFORE, the parties hereto agree to amend the Agreement effective as of August 24, 2007.

1. OCIC, AFCC, OSIC, OCNJ, WAIC and AIC are hereby added to the Agreement and are hereby
deemed to be included in the definition of “Member” as outlined in section 1(C) of the
Agreement.

2. This Agreement may be executed in any number of counterparts, each of which will be an original
and all of which will constitute together but one and the same document.

IN WITNESS WHEREOF, The parties hereto have caused this Amendment No. 2 to the Federal Tax Sharing
Agreement, effective as of the date first written above, to be executed by their respective
authorized officers.

IN WITNESS WHEREOF, the parties have caused their signatures to be affixed to this Amendment
this 1st day of November, 2007, by their respective duly authorized officers.

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY MUTUAL HOLDING COMPANY INC.	 	AMERICAN AMBASSADOR CASUALTY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	AMERICAN FIRE AND CASUALTY COMPANY	 	AVOMARK INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	AMERICA FIRST INSURANCE COMPANY	 	EXCELSIOR INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	AMERICA FIRST LLOYDS INSURANCE
COMPANY
(by Gulf States AIF, Inc.,
its attorney-in-fact)	 	GLOBE AMERICAN CASUALTY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	BRIDGEFIELD CASUALTY INSURANCE COMPANY	 	GOLDEN EAGLE INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	BRIDGEFIELD EMPLOYERS INSURANCE COMPANY	 	HAWKEYE-SECURITY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	COLORADO CASUALTY INSURANCE COMPANY	 	INDIANA INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	CONSOLIDATED INSURANCE COMPANY	 	LIBERTY INSURANCE COMPANY OF AMERICA	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	EMPLOYERS INSURANCE COMPANY OF 

WAUSAU	 	LIBERTY INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY INSURANCE UNDERWRITERS INC.	 	LIBERTY SURPLUS INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY LIFE ASSURANCE COMPANY OF BOSTON	 	LM GENERAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY LLOYDS OF TEXAS INSURANCE COMPANY	 	LM INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	LM PERSONAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY MUTUAL INSURANCE COMPANY	 	LM PROPERTY AND CASUALTY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY NORTHWEST INSURANCE CORPORATION	 	MID-AMERICAN FIRE & CASUALTY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY PERSONAL INSURANCE COMPANY	 	NATIONAL INSURANCE ASSOCIATION (by
The National Corporation, its
attorney-in-fact)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	NORTH PACIFIC INSURANCE COMPANY	 	SAN DIEGO INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	THE OHIO CASUALTY INSURANCE COMPANY	 	THE FIRST LIBERTY INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	OHIO CASUALTY OF NEW JERSEY, INC.	 	THE MIDWESTERN INDEMNITY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	OHIO SECURITY INSURANCE COMPANY	 	THE NETHERLANDS INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	OREGON AUTOMOBILE INSURANCE COMPANY	 	WEST AMERICAN INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	PEERLESS INDEMNITY INSURANCE COMPANY	 	WAUSAU BUSINESS INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	PEERLESS INSURANCE COMPANY	 	WAUSAU GENERAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 
	WAUSAU UNDERWRITERS INSURANCE COMPANY

 	 	 
	/s/ Gary J. Ostrow
 	 	 
	By:              Gary J. Ostrow      	 	 
	Title:  	Vice President 	 	 
	 

 

 

AMENDMENT NO. 3

(the “Amendment”)

to

FEDERAL TAX SHARING AGREEMENT

(the “Agreement”)

by and among

Liberty Mutual Holding Company Inc., a Massachusetts mutual holding company, and the parties
to the Agreement listed on the signature pages of the Agreement and the signature pages of
this Amendment.

WHEREAS, Liberty Mutual Personal Insurance Company became a member company of Liberty Mutual Group
effective January 1, 2006; and

WHEREAS the parties deem it in their best interests to add Liberty Mutual Personal Insurance
Company as party to the Agreement;

NOW, THEREFORE, the parties hereto agree to amend the Agreement, as follows:

1. Liberty Mutual Personal Insurance Company is hereby added to the Agreement effective January 1,
2006 and is hereby deemed to be included in the definition of “Member” as outlined in section 1(C)
of the
Agreement.

2. This Agreement may be executed in any number of counterparts, each of which will be an
original and all of which will constitute together but one and the same document.

IN WITNESS WHEREOF, The parties hereto have caused this Amendment No. 3 to the Federal Tax
Sharing Agreement, effective as of the date first written above, to be executed by their respective
authorized officers.

IN WITNESS WHEREOF, the parties have caused their signatures to be affixed to this Amendment
this 15 day of February, 2008, by their respective duly authorized officers.

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY MUTUAL HOLDING COMPANY INC.	 	AMERICAN AMBASSADOR CASUALTY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	AMERICAN FIRE AND CASUALTY COMPANY	 	AVOMARK INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 	 	By:
	 	Gary J. Ostrow	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	AMERICAN FIRST INSURANCE COMPANY	 	 	 	EXCELSIOR INSURANCE COMPANY OF WAUSAU	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	AMERICA FIRST LLOYDS INSURANCE
COMPANY (by Gulf States AIF, Inc.,
its attorney-in-fact)	 	 	 	GLOBE AMERICAN CASUALTY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	BRIDGEFIELD CASUALTY INSURANCE COMPANY	 	 	 	GOLDEN EAGLE INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	BRIDGEFIELD EMPLOYERS INSURANCE COMPANY	 	 	 	HAWKEYE-SECURITY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	COLORADO CASUALTY INSURANCE COMPANY	 	 	 	INDIANA INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	CONSOLIDATED INSURANCE COMPANY	 	LIBERTY INSURANCE COMPANY OF AMERICA	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	EMPLOYERS INSURANCE COMPANY OF 

WAUSAU	 	LIBERTY INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY INSURANCE UNDERWRITERS INC.	 	LIBERTY SURPLUS INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY LIFE ASSURANCE COMPANY OF BOSTON	 	 	 	LM GENERAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY LLOYDS OF TEXAS INSURANCE COMPANY	 	 	 	LM INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 	 	LM PERSONAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY MUTUAL INSURANCE COMPANY	 	 	 	LM PROPERTY AND CASUALTY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY NORTHWEST INSURANCE CORPORATION	 	 	 	MID-AMERICAN FIRE & CASUALTY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	LIBERTY PERSONAL INSURANCE COMPANY	 	 	 	NATIONAL INSURANCE ASSOCIATION (by

The National Corporation, its
attorney-in-fact)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	NORTH PACIFIC INSURANCE COMPANY	 	 	 	SAN DIEGO INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	THE OHIO CASUALTY INSURANCE COMPANY	 	THE FIRST LIBERTY INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	OHIO CASUALTY OF NEW JERSEY, INC.	 	THE MIDWESTERN INDEMNITY COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	OHIO SECURITY INSURANCE COMPANY	 	THE NETHERLANDS INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	OREGON AUTOMOBILE INSURANCE COMPANY	 	WEST AMERICAN INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	PEERLESS INDEMNITY INSURANCE COMPANY	 	WAUSAU BUSINESS INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 

	PEERLESS INSURANCE COMPANY	 	WAUSAU GENERAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

	 	 	 	 	 	 	 	 	 	 	 

	WAUSAU UNDERWRITERS INSURANCE COMPANY	 	 	 	LIBERTY MUTUAL PERSONAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Gary J. Ostrow	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:

	 	Gary J. Ostrow
	 	 
	 	By:
	 	Gary J. Ostrow
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	Vice President	 	 

 

 

AMENDMENT NO. 4

(the “Amendment”)

to

FEDERAL TAX SHARING AGREEMENT

(the “Agreement”)

by and among

Liberty Mutual Holding Company Inc., a Massachusetts mutual holding company, and the parties
to the Agreement listed on Exhibit A.

WHEREAS the parties deem it in their best interests to include as parties to the Agreement every
other corporation that subsequently consents to or is required to
join with LMHC in the filing of a
consolidated federal income tax return;

NOW, THEREFORE, the parties hereto agree to amend the Agreement, effective as of September
22, 2008, as follows:

	1.	 	The opening paragraph of the Agreement is amended and restated as follows:
	 
	 	 	This FEDERAL TAX SHARING AGREEMENT (“Agreement”), effective for tax years beginning on or
after the first day of January 2002, is entered into by and among Liberty Mutual Holding
Company Inc. (“LMHC”), a Massachusetts mutual holding company, and the several
companies listed on Exhibit A and any other corporation that subsequently consents to or is
required to join with LMHC in the filing of a consolidated federal income tax return
(collectively, “Liberty Mutual Group”).
	 
	2.	 	Section 9 of the Agreement is amended and restated as follows:
	 
	 	 	MEMBER ENTERING OR DEPARTING GROUP
	 
	 	 	In addition to LMHC and the other corporations that are currently parties to this Agreement,
any corporation that consents to or is required to join with LMHC in the filing of a
consolidated federal income tax return shall automatically become a party to this Agreement
effective as of the date such corporation becomes a Member. Members that are no longer
eligible to join in the filing of a consolidated federal income tax return with LMHC shall
remain as parties to this Agreement for all tax years for which they were included in such
consolidated return. LMHC is authorized to revise Exhibit A from time to time to reflect the
addition or deletion of Members, and this Agreement need not be amended to give effect to
such revised Exhibit A.
	 
	3.	 	This Agreement may be executed in any number of counterparts, each of which will be an
original and all of which will constitute together but one and the same document.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment, effective as of the date first
written above, to be executed by their duly authorized officers.

[SIGNATURE PAGES TO FOLLOW]

 

 

Exhibit A

to

Federal Tax Sharing Agreement

Access Insurance Services, Co.

Ambco Capital Corporation

America First Insurance Company

America First Lloyds Insurance Company

American Ambassador Casualty Company

American Fire & Casualty Insurance Company*

Avomark Insurance Company*

Berkeley Holding Company Associates, Inc.

Berkeley Management Corporation

Bridgefield Casualty Insurance Company

Bridgefield Employers Insurance Company

Capitol Agency, Inc. (Arizona corporation)

Capitol Agency, Inc. (Ohio corporation)

Capitol Agency, Inc. (Tennessee corporation)

Cascade Disability Management, Inc.

Colorado Casualty Insurance Company

Companies Agency Insurance Services of California

(dissolved 8/15/2008)

Companies Agency of Alabama, Inc. (dissolved 8/18/2008)

Companies Agency of Georgia, Inc. (dissolved 8/15/2008)

Companies Agency of Kentucky, Inc. (dissolved 8/14/2008)

Companies Agency of Massachusetts, Inc. (dissolved 8/29/08)

Companies Agency of Michigan, Inc. (dissolved 8/15/2008)

Companies Agency of New York, Inc.

Companies Agency of Pennsylvania, Inc.

Companies Agency of Phoenix, Inc.

Consolidated Insurance Company

Copley Venture Capital, Inc.

Countrywide Services Corporation

Diversified Settlements, Inc.

Employers Insurance Company of Wausau

Excelsior Insurance Company

Florida State Agency, Inc.

Globe American Casualty Company

Golden Eagle Insurance Corporation

Gulf States AIF, Inc.

Hawkeye-Security Insurance Company

Heritage-Summit Healthcare of Florida, Inc.

Indiana Insurance Company

LEXCO Limited

Liberty Assignment Corporation

Liberty Energy Canada, Inc.

Liberty Financial Services, Inc.

Liberty Hospitality Group, Inc.

Liberty Insurance Company of America

Liberty Insurance Corporation

Liberty Insurance Holdings, Inc.

Liberty Insurance Underwriters, Inc.

Liberty Life Assurance Company of Boston

Liberty Life Holdings, Inc.

Liberty Lloyds of Texas Insurance Company

Liberty Management Services, Inc.

Liberty Mexico Holdings, Inc.

Liberty Mutual Fire Insurance Company

Liberty Mutual Group Inc.

Liberty Mutual Holding Company, Inc.

Liberty Mutual Insurance Company

Liberty Mutual Personal Insurance Company

Liberty Northwest Insurance Corporation

Liberty Personal Insurance Company

Liberty RE (Bermuda) Limited

Liberty Sponsored Insurance (Vermont) Inc.

Liberty Surplus Insurance Corporation

Liberty — USA Corporation

LIH-Re of America Corporation

LIH U.S. P&C Corporation

LIU Specialty Insurance Agency, Inc.

LM General Insurance Company

LM Insurance Corporation

LM Personal Insurance Company

LM Property & Casualty Insurance: Company

LMHC Massachusetts Holdings, Inc.

LRE Properties, Inc.

Mid-American Agency, Inc.

Mid-American Fire and Casualty Company

Missouri Agency, Inc.

North Pacific Insurance Company

Oregon Automobile Insurance Company

OCASCO Budget, Inc.

OCI Printing, Inc.

Ohio Casualty Corporation

Ohio Casualty of New Jersey, Inc.

Ohio Life Brokerage Services, Inc.

Ohio Security Insurance Company

Peerless Indemnity Insurance Company

Peerless Insurance Company

San Diego Insurance Company

State Agency, Inc. (Indiana corporation)

State Agency, Inc. (Wisconsin corporation)

St. James Insurance Company

Summit Consulting, Inc.

Summit Consulting, Inc. of Louisiana

Summit Holding Southeast, Inc.

The First Liberty Insurance Corporation

The Midwestern Indemnity Company

The National Association

The Netherlands Insurance Company

The Ohio Casualty Insurance Company

Wausau Service Corporation

Wausau Business Insurance Company

Wausau General Insurance Company

Wausau Underwriters Insurance Company

West American Insurance Company

American Economy Insurance Company

American States Insurance Company

American States Insurance Company of Texas

American States Lloyds Insurance Company

American States Preferred Insurance

Capital Court Corporation

Commercial Aviation Insurance, Inc.

Emerald City Insurance Agency, Inc.

F.B. Beattie & Company, Inc.

First National Insurance Company of America

General America Corporation

General America Corporation of Texas

General Insurance Company of America

TSA Ex. A effective 9/22/08

 

 

Exhibit A

to

Federal Tax Sharing Agreement

Insurance Company of Illinois

Open Seas Solutions, Inc.

Pilot Insurance Services, Inc.

Rianoc Research Corporation

S.C. Bellevue, Inc.

Safecare Company, Inc.

Safeco Corporation

Safeco General Agency, Inc.

Safeco Insurance Company of America

Safeco Insurance Company of Illinois

Safeco Insurance Company of Indiana

Safeco Insurance Company of Oregon

Safeco Lloyds Insurance Company

Safeco National Insurance Company

Safeco Properties, Inc.

Safeco Surplus Lines Insurance Company

SCIT, Inc.

Winmar Company, Inc.

Winmar-Metro, Inc.

Winmar of the Desert, Inc.

Winmar Oregon, Inc.

TSA Ex. A effective 9/22/08

 

 

	 	 	 	 	 	 	 

	ACCESS INSURANCE SERVICES, CO.

	 	 	 	AMERICAN FIRE & CASUALTY
INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	AMBCO CAPITAL CORPORATION

	 	 	 	AVOMARK INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	AMERICA FIRST INSURANCE COMPANY

	 	 	 	BERKELEY HOLDING COMPANY ASSOCIATES, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	AMERICA FIRST LLOYDS INSURANCE COMPANY
(by Gulf States AIF, Inc., its attorney-in-fact

	 	 	 	BERKELEY MANAGEMENT CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	AMERICAN AMBASSADOR
CASUALTY COMPANY

	 	 	 	BRIDGEFIELD CASUALTY
INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	BRIDGEFIELD EMPLOYERS
INSURANCE COMPANY

	 	 	 	COLORADO CASUALTY
INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	CAPITOL AGENCY, INC. (ARIZONA CORPORATION)

	 	 	 	COMPANIES AGENCY OF NEW YORK, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	CAPITOL AGENCY, INC. (OHIO CORPORATION)

	 	 	 	COMPANIES AGENCY OF PENNSYLVANIA, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	CAPITOL
AGENCY, INC. 
(TENNESSEE CORPORATION)

	 	 	 	COMPANIES AGENCY OF PHOENIX, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	CASCADE DISABILITY MANAGEMENT, INC.

	 	 	 	CONSOLIDATED INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	COPLEY VENTURE CAPITAL, INC.

	 	 	 	FLORIDA STATE AGENCY, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	COUNTRYWIDE SERVICES CORPORATION

	 	 	 	GLOBE AMERICAN CASUALTY COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	DIVERSIFIED SETTLEMENTS, INC.

	 	 	 	GOLDEN EAGLE INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	EMPLOYERS INSURANCE COMPANY OF WAUSAU

	 	 	 	GULF STATES AIF, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	EXCELSIOR INSURANCE COMPANY

	 	 	 	HAWKEYE-SECURITY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	HERITAGE-SUMMIT
HEALTHCARE OF FLORIDA, INC.

	 	 	 	LIBERTY FINANCIAL SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	INDIANA INSURANCE COMPANY

	 	 	 	LIBERTY HOSPITALITY GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LEXCO LIMITED

	 	 	 	LIBERTY INSURANCE COMPANY OF AMERICA	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY ASSIGNMENT CORPORATION

	 	 	 	LIBERTY INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY ENERGY CANADA, INC.

	 	 	 	LIBERTY INSURANCE HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	LIBERTY INSURANCE UNDERWRITERS, INC.

	 	 	 	LIBERTY MEXICO HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY LIFE ASSURANCE COMPANY OF BOSTON

	 	 	 	LIBERTY MUTUAL FIRE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY LIFE HOLDINGS, INC.

	 	 	 	LIBERTY MUTUAL GROUP INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY LLOYDS OF TEXAS INSURANCE COMPANY
(by Berkeley Management Corporation, its
attorney-in-fact)

	 	 	 	LIBERTY MUTUAL HOLDING COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY MANAGEMENT SERVICES, INC.

	 	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	LIBERTY MUTUAL PERSONAL INSURANCE COMPANY

	 	 	 	LIBERTY SURPLUS INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY NORTHWEST INSURANCE CORPORATION

	 	 	 	LIBERTY-USA CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY PERSONAL INSURANCE COMPANY

	 	 	 	LIH-RE OF AMERICA CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY RE (BERMUDA) LIMITED

	 	 	 	LIH U.S. P&C CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Authorized Signatory

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LIBERTY SPONSORED INSURANCE (VERMONT) INC.

	 	 	 	LIU SPECIALTY INSURANCE AGENCY, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 

	LM GENERAL INSURANCE COMPANY

	 	 	 	LRE PROPERTIES, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LM INSURANCE CORPORATION

	 	 	 	MID-AMERICAN AGENCY, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LM PERSONAL INSURANCE COMPANY

	 	 	 	MID-AMERICAN FIRE AND CASUALTY COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LM PROPERTY & CASUALTY INSURANCE COMPANY

	 	 	 	MISSOURI AGENCY, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	LMHC MASSACHUSETTS HOLDINGS, INC.

	 	 	 	NORTH PACIFIC INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	OREGON AUTOMOBILE INSURANCE COMPANY

	 	 	 	OHIO CASUALTY OF NEW JERSEY, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	OCASCO BUDGET, INC.

	 	 	 	OHIO LIFE BROKERAGE SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	OCI PRINTING, INC.

	 	 	 	OHIO SECURITY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	OHIO CASUALTY CORPORATION

	 	 	 	PEERLESS INDEMNITY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	THE OHIO CASUALTY INSURANCE COMPANY

	 	 	 	PEERLESS INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	SAN DIEGO INSURANCE COMPANY

	 	 	 	SUMMIT CONSULTING, INC. OF LOUISIANA	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	STATE AGENCY, INC. (INDIANA CORPORATION)

	 	 	 	SUMMIT HOLDING SOUTHEAST, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	STATE AGENCY, INC. (WISCONSIN CORPORATION)

	 	 	 	THE FIRST LIBERTY CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	ST. JAMES INSURANCE COMPANY

	 	 	 	THE MIDWESTERN INDEMNITY COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Authorized Signatory

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	SUMMIT CONSULTING, INC.

	 	 	 	THE NATIONAL ASSOCIATION (by The National

Corporation, its attorney-in-fact)	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	THE NETHERLANDS INSURANCE COMPANY

	 	 	 	WEST AMERICAN INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	WAUSAU SERVICE CORPORATION

	 	 	 	AMERICAN ECONOMY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	WAUSAU BUSINESS INSURANCE COMPANY

	 	 	 	AMERICAN STATES INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	WAUSAU GENERAL INSURANCE COMPANY

	 	 	 	AMERICAN STATES INSURANCE COMPANY OF TEXAS	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	WAUSAU UNDERWRITERS INSURANCE COMPANY

	 	 	 	AMERICAN STATES LLOYDS INSURANCE COMPANY
(by General America Corporation of Texas, its attorney-in-fact)	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	AMERICAN
STATES PREFERRED INSURANCE

	 	 	 	GENERAL AMERICA CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	CAPITOL COURT CORPORATION

	 	 	 	GENERAL AMERICA CORPORATION OF TEXAS	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	EMERALD CITY INSURANCE AGENCY, INC.

	 	 	 	GENERAL INSURANCE COMPANY OF AMERICA	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	F.B. BEATTIE & COMPANY, INC.

	 	 	 	INSURANCE COMPANY OF ILLINOIS	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	FIRST NATIONAL INSURANCE COMPANY OF AMERICA

	 	 	 	OPEN SEAS SOLUTIONS, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	RIANOC RESEARCH CORPORATION

	 	 	 	SAFECO INSURANCE COMPANY OF OREGON	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	SAFECARE COMPANY, INC.

	 	 	 	SAFECO LLOYDS INSURANCE COMPANY (by General
America Corporation of Texas, its attorney-in-fact)	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	SAFECO GENERAL AGENCY, INC.

	 	 	 	SAFECO NATIONAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	SAFECO INSURANCE COMPANY OF ILLINOIS

	 	 	 	SAFECO PROPERTIES, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	SAFECO INSURANCE COMPANY OF INDIANA

	 	 	 	SAFECO SURPLUS LINES INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 

	SAFECO CORPORATION

	 	 	 	WINMAR OF THE DESERT, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	S.C. BELLEVUE, INC.

	 	 	 	WINMAR OREGON, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	SCIT, INC.

	 	 	 	WINMAR-METRO, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	SAFECO INSURANCE COMPANY OF AMERICA

	 	 	 	PILOT INSURANCE SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	WINMAR COMPANY, INC.

	 	 	 	COMMERCIAL AVIATION INSURANCE INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Gary J. Ostrow

	 	 	 	/s/ Gary J. Ostrow	 	 
	 	 	 	 	 	 	 
	By:    Gary J. Ostrow

	 	 	 	By:    Gary J. Ostrow	 	 
	Title: Vice President

	 	 	 	Title: Vice Presidentexv10w203

Exhibit 10.203

CHANGE IN CONTROL

SEVERANCE AGREEMENT

THIS AGREEMENT, effective 3/28, 2007, is made by and between Safeco
Corporation, a Washington corporation (“Safeco”), and Michael H. Hughes (the “Executive”).

WHEREAS, Safeco (together with its subsidiaries, collectively, the “Company”), considers it
essential to the best interests of its shareholders to foster the continued employment of key
management personnel; and

WHEREAS, Safeco recognizes that, as is the case with many publicly held corporations, the
possibility of a Change in Control exists and that such possibility, and the uncertainty and
questions which it may raise among management, may result in the departure or distraction of
management personnel to the detriment of the Company and its stockholders; and

WHEREAS, Safeco has determined that appropriate steps should be taken to reinforce and encourage
the continued attention and dedication of members of the Company’s management, including the
Executive, to their assigned duties without distraction in the face of potentially disturbing
circumstances arising from the possibility of a Change in Control;

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the
Company and the Executive agree as follows:

1. Defined Terms. The definitions of capitalized terms used in this Agreement are provided
in Section 15.

2. Term of Agreement. The Term of this Agreement shall commence on the date hereof and
shall continue in effect until the earlier of (i) the date it is terminated by written agreement
between the Company and the Executive and (ii) seventh anniversary of a Change in Control.

3. Company’s Covenants Summarized. In order to induce the Executive to remain in the employ
of the Company and in consideration of the Executive’s covenants stated in Section 4, the Company
agrees, under the conditions described herein, to pay the Executive the Severance Payments and the
other payments and benefits described herein. Except as provided in Section 5.1, Section 5.4,
Section 6.2(A), and Section 9.1, no amount or benefit shall be payable under this Agreement unless
there shall have been a termination of the Executive’s employment with the Company following a
Change in Control and during the Term. This Agreement shall not be construed as creating an express
or implied contract of employment and, except as otherwise agreed in writing between the Executive
and the Company, the Executive shall not have any right to be retained in the employ of the
Company.

4. The Executive’s Covenants. The Executive agrees that, subject to the terms and
conditions of this Agreement, in the event of a Potential Change in Control during the Term, the
Executive will remain in the employ of the Company until the earliest of (i) a date which is six
(6) months from the date of such Potential Change of Control, (ii) the date of a Change in

 

 

Control, (iii) the date of termination by the Executive of the Executive’s employment for Good
Reason or by reason of death, Disability or Retirement, or (iv) the termination by the Company of
the Executive’s employment for any reason.

5. Compensation Other Than Severance Payments.

     5.1 Salary During Incapacity or Illness. Following a Change in Control and during the
Term, during any period that the Executive fails to perform the Executive’s fulltime duties with
the Company as a result of incapacity due to physical or mental illness, the Company shall pay the
Executive’s full salary to the Executive at the rate in effect at the commencement of any such
period, together with all compensation and benefits payable to the Executive under the terms of any
applicable compensation or benefit plan, program or arrangement maintained by the Company during
such period, until the Executive’s employment is terminated by the Company for Disability.

     5.2 Salary During Term. If the Executive’s employment shall be terminated for any
reason following a Change in Control and during the Term, the Company shall pay the Executive’s
full salary to the Executive through the Date of Termination at the rate in effect at the time the
Notice of Termination is given or, if higher, the rate in effect immediately prior to the first
occurrence of an event or circumstance constituting Good Reason, together with all compensation and
benefits payable to the Executive through the Date of Termination under the terms of the Company’s
compensation and benefit plans, programs or arrangements.

     5.3 Post-Termination Compensation and Benefits. If the Executive’s employment shall be
terminated for any reason following a Change in Control and during the Term, the Company shall pay
to the Executive the normal post-termination compensation and benefits as such payments become due.
Such post-termination compensation and benefits shall be determined under, and paid in accordance
with, the Company’s applicable retirement, insurance and other compensation or benefit plans,
programs and arrangements as in effect immediately prior to the Date of Termination or, if more
favorable to the Executive, as in effect immediately prior to the first occurrence of an event or
circumstance constituting Good Reason.

     5.4 Incentive Awards.

     (A) Stock Options and SARs. Immediately prior to the Change in Control, all awards of
stock options and stock appreciation rights (“SARs”) previously granted to the Executive shall
become fully vested and exercisable. The phrase “immediately prior to the Change in Control” shall
be understood to mean sufficiently in advance of a Change in Control to permit the Executive to
take all steps reasonably necessary to exercise all options and SARs and to deal with the shares of
stock underlying the awards of stock options and SARs so that such shares may be treated in the
same manner as the shares of stock of other shareholders in connection with the Change in Control.

     (B) Performance Stock Rights. To the extent deemed earned, each outstanding
performance stock right (“PSR”) previously granted to the Executive shall become immediately
payable in cash upon a Change in Control, and the remainder of each outstanding PSR shall be

2

 

canceled for no value. All outstanding PSRs shall be deemed to have been earned to the extent of
the greater of:

	 	(i)	 	the number of shares determined by the Committee based on the extent to which
the performance goals specified in the PSR award agreement have been achieved during
the portion of the performance period ending on the last day of the last fiscal
quarter of the Company ending on or before the date of the Change in Control, and
	 
	 	(ii)	 	the number of shares equal to the product of the target shares identified in
the PSR award agreement multiplied by a fraction with a numerator equal to the whole
number of calendar months beginning with the month in which the PSR was granted and
ending on the date of the Change in Control and a denominator equal to the whole
number of calendar months in the entire performance period covered by the PSR award
agreement and less any shares previously issued under the PSR award agreement.

     (C) Restricted Stock Rights. All restrictions with respect to restricted stock rights
(“RSRs”) shall lapse upon a Change in Control, and all outstanding RSRs of the Executive shall be
immediately settled by a cash payment.

     (D) Leadership Performance Plan. Executive shall be eligible to receive an incentive
award pursuant to the terms of the Leadership Performance Plan.

     (E) Other Incentive Awards. All other restrictions with respect to outstanding
incentive awards of the Executive not described in subsections (A) through (D) of this Section 5.4
shall lapse upon a Change in Control, and such awards shall be fully vested and nonforfeitable.

     (F) Fair Market Value. For purposes of this Section 5.4, with respect to determining
the cash equivalent value of an RSR or PSR or the spread payable upon exercise of an SAR, the fair
market value of a share of the Company’s stock shall be deemed to equal the greater of (i) the fair
market value of a share of stock as of the date on which a Change in Control occurs and (ii) the
highest price of a share of stock which is paid or offered to be paid, by any person or entity, in
connection with any transaction which constitutes a Change in Control.

     5.5 Deferral Election. The Executive may elect to defer all or a portion of the
payments that are to be made to the Executive under Section 6.1(A) and Section 6.2. The Executive
may exercise such election by delivering a notice of election (in accordance with Section 10)
prior to the occurrence of the Change in Control, which notice shall state the portion of such
payments that is to be deferred (expressed as a dollar amount or as a percentage (“the Deferred
Benefit”)), the date the payment of the Deferred Benefit shall commence (“the Deferred Benefit
Commencement Date”), and the number of equal consecutive monthly installments (not to exceed 120)
that the Deferred Benefit is to be paid in. In no event shall the Deferred Benefit Commencement
Date be subsequent to the first day of January of the year immediately following the Executive’s
sixty-fifth birthday. In the event such an election is made:

3

 

     (A) The amount that would have otherwise been paid under the provisions of Section 6.1 (A) and
Section 6.2 shall be reduced by an amount equal to the Deferred Benefit.

     (B) The Deferred Benefit, together with simple interest calculated at an annual rate of ten
percent (10%) on the unpaid balance of the Deferred Benefit from the date that payment of the
Deferred Benefit would have otherwise been made, shall be paid in the number of equal consecutive
monthly installments selected by the Executive, with the first such installment being made on the
Deferred Benefit Commencement Date and a subsequent payment being made on the first day of each
month thereafter.

     (C) If the Executive dies prior to receiving the full amount of the Deferred Benefit, the
Company shall continue to pay the Deferred Benefit to the estate of the Executive in the same
manner as the Deferred Benefit would have been paid to the Executive if the Executive had not died.

     (D) The Deferred Benefit shall in no event be set aside or deposited to a separate account or
fund, and the rights of the Executive to the Deferred Benefit shall not be greater than the rights
of any other general, unsecured creditor of the Company.

     (E) The Executive, the Executive’s spouse, and any other person or entity claiming through or
under the Executive shall not have any power or authority to commute, encumber, or dispose of any
right to receive payment of the Deferred Benefit, all of which payments are expressly declared to
be non-assignable. In the event of any attempt at assignment or other disposition, the Company
shall have no further liability to pay the Deferred Benefit. The Deferred Benefit provided for in
this Agreement shall not be subject to seizure for the payment of any debts, judgments, alimony,
separate maintenance or child support, or be reached or transferred by operation of law, or in the
event of bankruptcy, insolvency or otherwise.

6. Severance Payments.

     6.1 Severance Payments Enumerated. The Company shall pay the Executive the payments
described in this Section 6.1 (the “Severance Payments”) upon the termination of the Executive’s
employment following a Change in Control and during the Term, in addition to any payments and
benefits to which the Executive is then entitled under Section 5, unless such termination is (i)
by the Company for Cause, (ii) by reason of death, Disability or Retirement, or (iii) by the
Executive without Good Reason. Additionally, during the one-month period beginning with the first
day of the month immediately following the first anniversary of the Change in Control, the
Executive may voluntarily terminate his employment for any reason and, upon such termination, the
Company shall pay the Executive the Severance Payments and the Gross-Up Payment, in addition to
any payments and benefits to which the Executive is then entitled under Section 5. For purposes of
this Agreement, the Executive’s employment shall be deemed to have been terminated following a
Change in Control by the Company without Cause or by the Executive with Good Reason, if (i) the
Executive’s employment is terminated by the Company without Cause prior to a Change in Control and
such termination was at the request or direction of a Person who has entered into an agreement
with the Company the consummation of

4

 

which would constitute a Change in Control, (ii) the Executive terminates his employment with Good
Reason prior to a Change in Control and the circumstance or event which constitutes Good Reason
occurs at the request or direction of such Person, or (iii) the Executive’s employment is
terminated by the Company without Cause prior to a Change in Control and the Executive reasonably
demonstrates that such termination is otherwise in connection with or in anticipation of a Change
in Control.

     (A) In lieu of any further salary payments to the Executive for periods subsequent to the Date
of Termination and in lieu of any severance benefit otherwise payable to the Executive, the Company
shall pay to the Executive a lump sum severance payment, in cash, equal to three (or, if less, the
number of years, rounded to the nearest hundredth of a year, remaining until December 31 of the
year in which the Executive attains age 65) times the higher of the Executive’s annual base salary
in effect immediately prior to the occurrence of the event or circumstance upon which the Notice of
Termination is based and the Executive’s base salary in effect immediately prior to Date of
Termination.

     (B) For the thirty-six (36) month period immediately following the Date of Termination or, if
shorter, for the period commencing immediately following the Date of Termination and ending on
December 31 of the year in which the Executive attains age 65 (such applicable period, the
“Severance Period”), the Company shall arrange to provide the Executive with life, disability,
accident and health insurance benefits substantially similar to those which the Executive is
receiving immediately prior to the Date of Termination; provided, however, that,
unless the Executive consents to a different method (after taking into account the effect of such
method on the calculation of “parachute payments” pursuant to Section 6.2), such health insurance
benefits shall be provided through a third-party insurer. Benefits otherwise receivable by the
Executive pursuant to this Section 6.1 (B) shall be reduced to the extent comparable benefits are
actually received by or made available to the Executive (other than benefits available pursuant to
the Consolidated Omnibus Budget Reform Act of 1985) during the Severance Period (and any such
benefits actually received by or made available to the Executive shall be reported to the Company
by the Executive).

     (C) Notwithstanding any provision of any annual or long-term incentive plan to the contrary,
the Company shall pay to the Executive a lump sum amount, in cash, equal to the sum of (i) any
incentive compensation which has been allocated or awarded to the Executive for a completed year or
other measuring period preceding the Date of Termination under any such plan and which, as of the
Date of Termination, is contingent only upon the continued employment of the Executive to a
subsequent date, and (ii) a pro rata portion to the Date of Termination of the aggregate value of
all contingent incentive compensation awards to the Executive for all then uncompleted periods
under any such plan, calculated as to each such award by multiplying the award that the Executive
would have earned on the last day of the performance award period, assuming the achievement, at the
level that would produce the maximum award, of the individual and corporate performance goals
established with respect to such award, by the fraction obtained by dividing the number of full
months and any fractional portion of a month during such performance award period through the Date
of Termination by the total number of months contained in such performance award period.

5

 

     6.2 “Gross-Up Payment.”

     (A) Whether or not the Executive becomes entitled to the Severance Payments, if any of the
payments or benefits received or to be received by the Executive in connection with a Change in
Control or the Executive’s termination of employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company, any Person whose actions
result in a Change in Control or any Person affiliated with the Company or such Person) (such
payments or benefits, excluding the Gross-Up Payment, being hereinafter referred to as the “Total
Payments”) will be subject to the Excise Tax, the Company shall pay to the Executive an additional
amount (the “Gross-Up Payment”) such that the net amount retained by the Executive, after deduction
of any Excise Tax on the Total Payments and any federal, state and local income and employment
taxes and Excise Tax upon the Gross-Up Payment, and after taking into account the phase out of the
itemized deductions attributable to the Gross-Up Payment, shall be equal to the Total Payments.

     (B) For purposes of determining whether any of the Total Payments will be subject to the
Excise Tax and the amount of such Excise Tax, (i) all of the Total Payments shall be treated as
“parachute payments” (within the meaning of section 280G(b)(2) of the Code) unless, in the opinion
of tax counsel selected by the accounting firm which was, immediately prior to the Change in
Control, the Company’s independent accountant (the “Accountant”) and which tax counsel is
reasonably acceptable to the Executive (“Tax Counsel”), such payments or benefits (in whole or in
part) do not constitute parachute payments, including by reason of section 280G(b)(4)(A) of the
Code, (ii) all “excess parachute payments” within the meaning of section 280G(b)(l) of the Code
shall be treated as subject to the Excise Tax unless, in the opinion of Tax Counsel, such excess
parachute payments (in whole or in part) represent reasonable compensation for services actually
rendered (within the meaning of section 280G(b)(4)(B) of the Code) in excess of the Base Amount
allocable to such reasonable compensation, or are otherwise not subject to the Excise Tax, and
(iii) the value of any noncash benefits or any deferred payment or benefit shall be determined by
the Accountant in accordance with the principles of sections 280G(d)(3) and (4) of the Code. For
purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay
federal income tax at the highest marginal rate of federal income taxation in the calendar year in
which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Executive’s residence on the Date of Termination
(or if there is no Date of Termination, then the date on which the Gross-Up Payment is calculated
for purposes of this Section 6.2), net of the maximum reduction in federal income taxes which could
be obtained from deduction of such state and local taxes.

     (C) In the event that the Excise Tax is finally determined to be less than the amount taken
into account hereunder in calculating the Gross-Up Payment, the Executive shall repay to the
Company, at the time that the amount of such reduction in Excise Tax is finally determined, the
portion of the Gross-Up Payment attributable to such reduction (plus that portion of the Gross-Up
Payment attributable to the Excise Tax and federal, state and local income and employment taxes
imposed on the Gross-Up Payment being repaid by the Executive to the extent that such repayment
results in a reduction in Excise Tax and/or a federal, state or local income or

6

 

employment tax deduction) plus interest on the amount of such repayment at 120% of the rate
provided in section 1274(b)(2)(B) of the Code. In the event that the Excise Tax is determined to
exceed the amount taken into account hereunder in calculating the Gross-Up Payment (including by
reason of any payment the existence or amount of which cannot be determined at the time of the
Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of such excess
(plus any interest, penalties or additions payable by the Executive with respect to such excess)
at the time that the amount of such excess is finally determined. The Executive and the Company
shall each reasonably cooperate with the other in connection with any administrative or judicial
proceedings concerning the existence or amount of liability for Excise Tax with respect to the
Total Payments.

     6.3 Severance Payments Pay Date. The payments provided in subsections (A) and (C) of
Section 6.1 and in Section 6.2 shall be made not later than the fifth day following the Date of
Termination; provided, however, that if the amounts of such payments cannot be
finally determined on or before such day, the Company shall pay to the Executive on such day an
estimate, as determined in good faith by the Executive or, in the case of payments under Section
6.2, in accordance with Section 6.2, of the minimum amount of such payments to which the Executive
is clearly entitled and shall pay the remainder of such payments (together with interest on the
unpaid remainder (or on all such payments to the extent the Company fails to make such payments
when due) at 120% of the rate provided in section 1274(b)(2)(B) of the Code) as soon as the amount
thereof can be determined but in no event later than the thirtieth (30th) day after the Date of
Termination. In the event that the amount of the estimated payments exceeds the amount subsequently
determined to have been due, such excess shall constitute a loan by the Company to the Executive,
payable on the fifth (5th) business day after demand by the Company (together with interest at 120%
of the rate provided in section 1274(b)(2)(B) of the Code). At the time that payments are made
under this Section, the Company shall provide the Executive with a written statement setting forth
the manner in which such payments were calculated and the basis for such calculations including,
without limitation, any opinions or other advice the Company has received from Tax Counsel, the
Accountant or other advisors or consultants (and any such opinions or advice which are in writing
shall be attached to the statement).

     6.4 Executive’s Legal Fees. The Company also shall pay to the Executive all legal fees
and expenses incurred by the Executive in disputing in good faith any issue hereunder relating to
the termination of the Executive’s employment, in seeking in good faith to obtain or enforce any
benefit or right provided by this Agreement or in connection with any tax audit or proceeding to
the extent attributable to the application of section 4999 of the Code to any payment or benefit
provided hereunder. Such payments shall be made within five (5) business days after delivery of the
Executive’s written requests for payment accompanied with such evidence of fees and expenses
incurred as the Company reasonably may require.

7. Termination Procedures and Compensation During Dispute.

     7.1 Notice of Termination. After a Change in Control and during the Term, any
purported termination of the Executive’s employment (other than by reason of death) shall be
communicated by written Notice of Termination from one party hereto to the other party hereto in
accordance with Section 10. For purposes of this Agreement, a “Notice of Termination” shall

7

 

mean a notice which shall indicate the specific termination provision in this Agreement relied
upon and shall state in reasonable detail the facts and circumstances claimed to provide a basis
for termination of the Executive’s employment under the provision so indicated. Further, a Notice
of Termination for Cause is required to include a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a
meeting of the Board which was called and held for the purpose of considering such termination
(after reasonable notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel, to be heard before the Board) finding that, in the good faith opinion of the
Board, the Executive was guilty of conduct stated in clause (i) or (ii) of the definition of Cause
herein, and specifying the particulars thereof in detail.

     7.2 Date of Termination. “Date of Termination,” with respect to any purported
termination of the Executive’s employment after a Change in Control and during the Term, shall mean
(i) if the Executive’s employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have returned to the full-time
performance of the Executive’s duties during such thirty (30) day period), and (ii) if the
Executive’s employment is terminated for any other reason, the date specified in the Notice of
Termination (which, in the case of a termination by the Company, shall not be less than thirty (30)
days (except in the case of a termination for Cause) and, in the case of a termination by the
Executive, shall not be less than fifteen (15) days nor more than sixty (60) days, respectively,
from the date such Notice of Termination is given).

     7.3 Dispute Concerning Termination. If within fifteen (15) days after any Notice of
Termination is given, or, if later, prior to the Date of Termination (as determined without regard
to this Section 7.3), the party receiving such Notice of Termination notifies the other party that
a dispute exists concerning the termination, the Date of Termination shall be extended until the
earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally
resolved, either by mutual written agreement of the parties or by a final judgment, order or decree
of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to
which the time for appeal therefrom has expired and no appeal has been perfected);
provided, however, that the Date of Termination shall be extended by a notice of
dispute given by the Executive only if such notice is given in good faith and the Executive pursues
the resolution of such dispute with reasonable diligence.

     7.4 Compensation During Dispute. If a purported termination occurs following a Change
in Control and during the Term and the Date of Termination is extended in accordance with Section
7.3, the Company shall continue to pay the Executive the full compensation in effect when the
notice giving rise to the dispute was given (including, but not limited to, salary) and continue
the Executive as a participant in all compensation, benefit and insurance plans in which the
Executive was participating when the notice giving rise to the dispute was given, until the Date of
Termination, as determined in accordance with Section 7.3. Amounts paid under this Section 7.4 are
in addition to all other amounts due under this Agreement (other than those due under Section 5.2)
and shall not be offset against or reduce any other amounts due under this Agreement.

8

 

8. No Mitigation. The Company agrees that, if the Executive’s employment with the Company
terminates during the Term, the Executive is not required to seek other employment or to attempt in
any way to reduce any amounts payable to the Executive by the Company pursuant to Section 6 or
Section 7.4. Further, the amount of any payment or benefit provided for in this Agreement (other
than Section 6.1(B)) shall not be reduced by any compensation earned by the Executive as the result
of employment by another employer, by retirement benefits, by offset against any amount claimed to
be owed by the Executive to the Company, or otherwise.

9. Successors; Binding Agreement.

     9.1 Safeco Successors. In addition to any obligations imposed by law upon any
successor to Safeco, Safeco will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
Safeco to expressly assume and agree to perform this Agreement in the same manner and to the same
extent that Safeco would be required to perform it if no such succession had taken place. Failure
of Safeco to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change in
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination.

     9.2 Executive’s Successors. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive shall die while any amount
would still be payable to the Executive hereunder (other than amounts which, by their terms,
terminate upon the death of the Executive) if the Executive had continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the executors, personal representatives or administrators of the Executive’s estate.

10. Notices. For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
addressed, if to the Executive, to the address inserted below the Executive’s signature on the
final page and, if to the Company, to the address stated below, or to such other address as either
party may have furnished to the other in writing in accordance herewith, except that notice of a
change of address shall be effective only upon actual receipt:

To the Company:

Safeco Corporation

Safeco Plaza

Seattle, WA 98185

Attention: Chief Legal Officer

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11. Miscellaneous. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and signed by the Executive
and an officer of Safeco. No waiver by either party hereto at any time of any breach by the other
party hereto of, or of any lack of compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. This Agreement supersedes any other
agreements or representations, oral or otherwise, express or implied, with respect to its subject
matter which have been made by either party. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the state of Washington. All
references to sections of the Exchange Act or the Code shall be deemed also to refer to any
successor provisions to such sections. Any payments provided for hereunder shall be paid net of any
applicable withholding required under federal, state or local law and any additional withholding to
which the Executive has agreed. The obligations of the Company and the Executive under this
Agreement which by their nature may require either partial or total performance after the
expiration of the Term (including, without limitation, those under Sections 6 and 7) shall survive
such expiration. The parties acknowledge that this Agreement may need to be modified in the future
to comply with new Section 409(A) of the Code (added to the Code pursuant to the Jobs Creation Act
of 2004) but such modifications will not diminish the benefits to which Executive is entitled
unless Executive receives substantially comparable benefits in substitution.

12. Validity. The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provision of this Agreement, which shall
remain in full force and effect.

13. Counterparts. This Agreement may be executed in several counterparts, each of which
shall be deemed to be an original but all of which together will constitute one and the same
instrument.

14. Settlement of Disputes; Arbitration.

     (A) All claims by the Executive for benefits under this Agreement shall be directed to and
determined by the Committee and shall be in writing. Any denial by the Committee of a claim for
benefits under this Agreement shall be delivered to the Executive in writing and shall state the
specific reasons for the denial and the specific provisions of this Agreement relied upon. The
Committee shall afford a reasonable opportunity to the Executive for a review of the decision
denying a claim and shall further allow the Executive to appeal to the Committee a decision of the
Committee within sixty (60) days after notification by the Committee that the Executive’s claim has
been denied.

     (B) Any further dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration in Seattle, Washington in accordance with the rules of
the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s
award in any court having jurisdiction. Notwithstanding any provision of this Agreement to the
contrary, the Executive shall be entitled to seek specific performance of the Executive’s right to
be paid until the Date of Termination during the pendency of any dispute or

10

 

controversy arising under or in connection with this Agreement.

15. Definitions. For purposes of this Agreement, the following terms shall have the
meanings indicated below:

     (A) “Accountant” shall have the meaning stated in Section 6.2.

     (B) “Affiliate” shall have the meaning stated in Rule 12b-2 promulgated under Section 12 of
the Exchange Act.

     (C) “Base Amount” shall have the meaning stated in section 280G(b)(3) of the Code.

     (D) “Beneficial Owner” shall have the meaning stated in Rule 13d-3 under the Exchange Act.

     (E) “Board” shall mean the Board of Directors of Safeco.

     (F) “Cause” for termination by the Company of the Executive’s employment shall mean (i) the
willful and continued failure by the Executive to substantially perform the Executive’s duties with
the Company (other than any such failure resulting from the Executive’s incapacity due to physical
or mental illness or any such actual or anticipated failure after the issuance of a Notice of
Termination for Good Reason by the Executive pursuant to Section 7.1) after a written demand for
substantial performance is delivered to the Executive by the Board, which demand specifically
identifies the manner in which the Board believes that the Executive has not substantially
performed the Executive’s duties, or (ii) the willful engaging by the Executive in conduct which is
demonstrably and materially injurious to the Company or its subsidiaries, monetarily or otherwise.
For purposes of clauses (i) and (ii) of this definition, (x) no act, or failure to act, on the
Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not
in good faith and without reasonable belief that the Executive’s act, or failure to act, was in the
best interest of the Company and (y) in the event of a dispute concerning the application of this
provision, no claim by the Company that Cause exists shall be given effect unless the Company
establishes to the Committee by clear and convincing evidence that Cause exists.

     (G) A “Change in Control” shall be deemed to have occurred if the event stated in any one of
the following paragraphs shall have occurred:

     (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of
Safeco (not including in the securities beneficially owned by such Person any securities acquired
directly from Safeco or its affiliates) representing 25% or more of the combined voting power of
Safeco’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in
connection with a transaction described in clause (a) of paragraph (iii) below; or

     (ii) the following individuals cease for any reason to constitute a majority of the number of
directors then serving: individuals who, on the date hereof, constitute the Board and

11

 

any new director (other than a director whose initial assumption of office is in connection with
an actual or threatened election contest, including but not limited to a consent solicitation,
relating to the election of directors of Safeco) whose appointment or election by the Board or
nomination for election by Safeco’s stockholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors on the date
hereof or whose appointment, election or nomination for election was previously so approved or
recommended; or

     (iii) there is consummated a merger or consolidation of Safeco or any direct or indirect
subsidiary of Safeco with any other corporation, other than (a) a merger or consolidation which
would result in the voting securities of Safeco outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity or any parent thereof), in combination with the ownership
of any trustee or other fiduciary holding securities under an employee benefit plan of Safeco or
any subsidiary of Safeco, at least 75% of the combined voting power of the securities of Safeco or
such surviving entity or any parent thereof outstanding immediately after such merger or
consolidation, or (b) a merger or consolidation effected to implement a recapitalization of Safeco
(or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of Safeco (not including in the securities Beneficially Owned by such
Person any securities acquired directly from Safeco or its Affiliates) representing 25% or more of
the combined voting power of Safeco’s then outstanding securities; or

     (iv) the stockholders of Safeco approve a plan of complete liquidation or dissolution of
Safeco or there is consummated an agreement for the sale or disposition by Safeco of all or
substantially all of Safeco’s assets, other than a sale or disposition by Safeco of all or
substantially all of Safeco’s assets to an entity, at least 75% of the combined voting power of
the voting securities of which are owned by stockholders of Safeco in substantially the same
proportions as their ownership of Safeco immediately prior to such sale.

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated transactions immediately
following which the record holders of the common stock of Safeco immediately prior to such
transaction or series of transactions continue to have substantially the same proportionate
ownership in an entity which owns all or substantially all of the assets of Safeco immediately
following such transaction or series of transactions.

     (H) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     (I) “Committee” shall mean (i) the individuals (not fewer than three in number) who, on the
date six months before a Change in Control, constitute the Compensation Committee of the Board,
plus (ii) in the event that fewer than three individuals are available from the group specified in
clause (i) above for any reason, such individuals as may be appointed by the individual or
individuals so available (including for this purpose any individual or individuals previously so
appointed under this clause (ii)).

12

 

     (J) “Company” shall mean Safeco and its subsidiaries, collectively.

     (K) “Date of Termination” shall have the meaning stated in Section 7.2.

     (L)“Deferred Benefit” shall have the meaning stated in Section 5.5.

     (M) “Deferred Benefit Commencement Date” shall have the meaning stated in Section
5.5.

     (N) “Disability” shall be deemed the reason for the termination by the Company of the
Executive’s employment, if, as a result of the Executive’s incapacity due to physical or mental
illness, the Executive shall have been absent from the full-time performance of the Executive’s
duties with the Company for a period of one hundred and thirty (130) consecutive business days,
the Company shall have given the Executive a Notice of Termination for Disability, and, within
thirty (30) days after such Notice of Termination is given, the Executive shall not have returned
to the full-time performance of the Executive’s duties.

     (O) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (P) “Excise Tax” shall mean any excise tax imposed under section 4999 of the Code.

     (Q) “Executive” shall mean the individual named in the first paragraph of this Agreement.

     (R) “Good Reason” for termination by the Executive of the Executive’s employment shall mean
the occurrence (without the Executive’s express written consent) after any Change in Control, or
prior to a Change in Control under the circumstances described in clause (ii) of the second
sentence of Section 6.1 (treating all references in paragraphs (i) through (vii) below to a
“Change in Control” as references to a “Potential Change in Control”), of any one of the following
acts by the Company, or failures by the Company to act, unless, in the case of any act or failure
to act described in paragraph (i), (v), (vi) or (vii) below, such act or failure to act is
corrected prior to the Date of Termination specified in the Notice of Termination given in respect
thereof:

     (i) the assignment to the Executive of any duties inconsistent with the Executive’s status as
a senior executive officer of the Company or a substantial adverse alteration in the nature or
status of the Executive’s responsibilities from those in effect immediately prior to the Change in
Control;

     (ii) a reduction by the Company in the Executive’s annual base salary as in effect on the
date hereof or as the same may be increased from time to time;

     (iii) the relocation of the Executive’s principal place of employment to a location outside
of King County, Washington (or, if different, the county in which such principal place of
employment is located immediately prior to the Change in Control) or the Company’s requiring

13

 

the Executive to be based anywhere other than such principal place of employment (or permitted
relocation thereof) except for required travel on the Company’s business to an extent
substantially consistent with the Executive’s present business travel obligations;

     (iv) the failure by the Company to pay to the Executive any portion of the Executive’s
current compensation, or to pay to the Executive any portion of an installment of deferred
compensation under any deferred compensation program of the Company, within seven (7) days of the
date such compensation is due;

     (v) the failure by the Company to continue in effect any compensation plan (including stock
option, restricted stock, stock appreciation right, incentive compensation and bonus plans) in
which the Executive participates immediately prior to the Change in Control which is material to
the Executive’s total compensation, unless an equitable arrangement (embodied in an ongoing
substitute or alternative plan) has been made with respect to such plan, or the failure by the
Company to continue the Executive’s participation therein (or in such substitute or alternative
plan) on a basis not materially less favorable, both in terms of the amount or timing of payment
of benefits provided and the level of the Executive’s participation relative to other
participants, as existed immediately prior to the Change in Control;

     (vi) the failure by the Company to continue to provide the Executive with benefits
substantially similar to those enjoyed by the Executive under any of the Company’s profit sharing,
pension, savings, life insurance, medical, health and accident, or disability plans in which the
Executive was participating immediately prior to the Change in Control, the taking of any action by
the Company which would directly or indirectly materially reduce any of such benefits or deprive
the Executive of any material fringe benefit enjoyed by the Executive at the time of the Change in
Control, or the failure by the Company to provide the Executive with the number of paid vacation
days to which the Executive is entitled on the basis of years of service with the Company in
accordance with the Company’s normal vacation policy in effect at the time of the Change in
Control; or

     (vii) any purported termination of the Executive’s employment which is not effected pursuant
to a Notice of Termination satisfying the requirements of Section 7.1; for purposes of this
Agreement, no such purported termination shall be effective.

     The Executive’s right to terminate the Executive’s employment for Good Reason shall not be
affected by the Executive’s incapacity due to physical or mental illness. The Executive’s
continued employment shall not constitute consent to, or a waiver of rights with respect to, any
act or failure to act constituting Good Reason hereunder.

     For purposes of any determination regarding the existence of Good Reason, any claim by the
Executive that Good Reason exists shall be presumed to be correct unless the Company establishes
to the Committee by clear and convincing evidence that Good Reason does not exist.

     (S) “Gross-Up Payment” shall have the meaning stated in Section 6.2.

     (T) “Notice of Termination” shall have the meaning stated in Section 7.1.

14

 

     (U) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified
and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) Safeco
or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee
benefit plan of Safeco or any of its Affiliates, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or
indirectly, by the stockholders of Safeco in substantially the same proportions as their ownership
of stock of Safeco.

     (V) “Potential Change in Control” shall be deemed to have occurred if the event stated in any
one of the following paragraphs shall have occurred:

     (i) Safeco enters into an agreement, the consummation of which would result in the occurrence
of a Change in Control;

     (ii) Safeco or any Person publicly announces an intention to take or to consider taking
actions which, if consummated, would constitute a Change in Control;

     (iii) any Person becomes the Beneficial Owner, directly or indirectly, of securities of Safeco
representing 10% or more of either the then outstanding shares of common stock of Safeco or the
combined voting power of the Safeco’s then outstanding securities (not including in the securities
beneficially owned by such Person any securities acquired directly from Safeco or its affiliates);
or

     (iv) the Board adopts a resolution to the effect that, for purposes of this Agreement, a
Potential Change in Control has occurred.

     (W) “Retirement” shall be deemed the reason for the termination by the Company or the
Executive of the Executive’s employment if such employment is terminated on or after the date
Executive attains age 65.

     (X) “Safeco” shall mean Safeco Corporation and, except in determining under Section 15(G)
whether or not any Change in Control has occurred, shall include any successor to its business
and/or assets which assumes and agrees to perform this Agreement by operation of law, or
otherwise.

     (Y) “Severance Payments” shall mean the payments so described in Section 6.1.

     (Z)“Severance Period” shall have the meaning stated in Section 6.1(B).

     (AA) “Tax Counsel” shall have the meaning stated in Section 6.2.

     (BB) “Term” shall mean the period of time described in Section 2 (including any extension,
continuation or termination described therein).

15

 

	 	 	(CC)“Total Payments” shall mean the payments so described in Section 6.2.

	 	 	 	 	 	 	 	 
	Safeco
Corporation	 	Executive	 
	 	 	 	 
	By:  	       /s/ Illegible
 	 	  	       /s/ Michael H. Hughes
 	 
	 	  	 	 	 	Name:  	 	 
	 	 	 	 	Such address as may appear on the personnel records of Safeco or such other Person as Mr. Hughes
may specify in writing 	 

16

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