THESCO BENEFITS, LLC COMPENSATION ARRANGEMENTS

Thesco Benefits, LLC. is typically compensated via commissions paid by the insurance carriers. All commissions are disclosed to our clients as part of our new business and renewal presentations. Commissions are also detailed in the Form 5500 Schedule A for those clients subject to reporting for ERISA. This information is typically supplied directly by the carrier to our client.

Thesco maintains additional compensation (bonus) arrangements with many carriers based upon factors dictated by the individual carrier. The carriers file all bonus arrangements with the New York State Insurance Department. The additional compensation is not customarily attributable to a particular client. The factors that determine additional compensation typically include new business production and renewal persistency. None of our bonus arrangements are based upon profitability of our business with a particular carrier.

Any client wishing to see our bonus agreement with any specific carrier should request the same and it will be provided. Bonuses paid to Thesco Benefits, LLC equate to approximately 5% of our overall revenue. Bonus payments during the last five years were as follows:

Companies	2003	2004	2005	2006	2007	2008
Aetna	0	43,812	30,343	13,569	101,959	285,733
Blue Cross Plans	0	4,790	1,500	9,950	27,438	82,332
CIGNA	457,772	25,000	87,706	73,422	1,152	12,713
First Reliance	5,928	0	2,215	20,358	46,986	42,343
Guardian	53,591	62,764	134,334	165,834	108,990	94,883
Hartford	0	1,514	0	0	0	27,881
Health Net	0	9,300	145,435	151,659	133,269	19,452
Humana	0	0	0	0	0	425
Jefferson Pilot	0	0	0	454	2,550	0
Kaiser Permanente	0	4,700	12,630	2,753	0	0
Lincoln Financial	0	0	0	0	0	5,801
MetLife	6,879	12,844	17,552	22,563	62,282	140,483
Prudential	3,804	0	102,133	37,359	93,983	129,123
Standard Insurance	0	0	1,088	1,449	1,308	2,883
UnitedHealthcare	197,381	424,962	242,513	174,665	215,984	298,222
UNUM	64,238	21,775	4,568	1,675	57,785	27,610
Various	669	25,874	0	0	0	0
Total	790,262	637,335	782,017	675,710	853,686	1,169,883