Choose your own directionBuilding a business as an Allstate Exclusive Agent

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Building a Business As an Allstate Exclusive Agent

The following overview highlights the R3001 Start-up Agency opportunity.* Agency owners are independent contractors and are not employees of Allstate. Multiple factors contribute to the success of an Allstate Agency. As such, individual results will vary. The information in this overview is for the 2008 R3001 Start-up Agency opportunity. All information, including bonus, revenue, compensation, and education information is subject to change.

See the 2008 R3001 Exclusive Agency Agreement, the Exclusive Agency Independent Contractor Manual, the Exclusive Agency Independent Contractor Reference Guide, the Supplement for the R3001 Agreement, and the Allstate Agency Standards for full details.

* Excludes New York and New Jersey

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Join an Industry Leader

ENJOY THE BENEFITS OF WORKING WITH ALLSTATEAllstate provides you with support that is among the best in the industry

High brand-name recognitionA comprehensive education programUnlimited money-making potentialOwnership of the economic interest in the book of business your agency writesAgency Technology Allowance for Agency Choice Technology (ACT)In-house claims organization with 24 x 7 serviceA targeted direct-mailing program with hundreds of Allstate-approved marketing materials designed to help you generate revenue for your agencyAn exciting awards and recognition program that rewards you for achieving business objectives established by AllstateSupport from Allstate’s field distribution leadership groupPotential to own multiple locations

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Getting Started

WHAT YOU NEED TO SUCCEED AT ALLSTATERequirements

Available start-up capital to meet cash flow market requirementP&C and Life/Health licensesFinancial Industry Regulatory Authority (FINRA) Series 6 license (and Series 63 license if required by state law), which will need to be obtained within a certain time after agency appointment

Characteristics Proven track record of successSelf-motivated Goal and success-orientedWilling to take risksAble to hire, develop, and manage staffPossess an entrepreneurial spiritDriven to succeed and make a lot of money

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Navigating Your Business Options

DECIDE HOW TO RUN YOUR BUSINESS

Develop your business planResearch market demographicsConduct cash flow review

Find your locationAssist with identifying office location and get field distribution leadership approvalNegotiate your leaseEstablish office set-up

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Becoming an Exclusive Agent

BENEFITS OF REPRESENTING ALLSTATESupport from an industry leaderAccess to education, 24-hour customer service and dynamic recognition programsAttractive compensation package

WAYS TO EARN REVENUEProperty and Casualty (P&C) commissionsAllstate Financial commissions Education BonusAgency Establishment BonusAgency Development Bonus IAgency Development Bonus IIAgency Performance Profile Agency Bonus

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Property and Casualty Commissions

P&C COMMISSIONS SCALE

* Excludes state exceptions

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Allstate Financial Opportunity

TWO WAYS TO EARN ALLSTATE FINANCIAL REVENUE

Write life and financial products on your own (“Solo” business)

Partner with an Exclusive Financial Specialist (“Shared” business)

Allstate Financial enhanced commission scales are based on your productivity – the more you write, the higher the commission scale

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Comprehensive Education Program

ALLSTATE-PROVIDED EDUCATION TO HELP YOU GET AHEAD

Sign the Education Agreement

Complete Allstate-determined education program on Allstate’s products, recommended sales techniques and processes

Program is approximately 5 weeksEducation is conducted regionally and at Allstate’s National Sales Education Center (NSEC)

Receive Education Bonus Successfully complete education program$3,000 payable in first month of R3001 Agreement

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Allstate Support

BRANDED RETAIL ENVIRONMENT (BRE)

Includes furniture, lighting, signage and sales displays to leverage the strength of the Allstate brand in your agencyIn order to receive a $3,000* non-cash award, you must participate in the BRE Welcome Suite Plus Package program

YELLOW PAGES AND CO-OP

Yellow Pages: First year of advertising in the Yellow Pages will be paid by Allstate (approximately $2,500)

Co-op: Receive up to 50% reimbursement for company-approved advertising expenses per year (approximately $4,500)

10* In the states of Illinois, Alaska, and Hawaii, the non-cash award is valued at a different amount

Allstate Support, Continued

EXECUTIVE ADVANTAGEGIVE YOUR AGENCY AN EDGE

Your agency can earn a cash value based on agency performanceFunds used for goods and services aimed at fueling profitable growthYou can use these funds at the Executive Advantage Web page to buy goods and services that can help:

Brand My AgencyGrow My AgencyManage My Agency

Agency Choice Technology (ACT)

ACT: Provides you flexibility to lease/purchase technology (within Allstate’s specifications) that meets your unique needsYou select the technology vendor for installation and support; you may use Verizon, Allstate’s preferred vendor for ACT, or any vendorAgency Technology Allowance can assist with the cost of your ACT

During your first year of agency affiliation, you will be given a base Agency Technology Allowance of $1,750, which will be pro-rated based on your first month of affiliationIn subsequent years, your additional Agency Technology Allowance dollars will be based on your agency’s policies in force (PIF)

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Tier Structure

USE OF TIERS

Four tiers based on P&C performance in relation to your cash flow Tier 1: at least 225% of your baseline cash flowTier 2: 150% to 224% of your baseline cash flowTier 3: 90% to 149% of your baseline cash flowTier 4: <90% of your baseline cash flow

Tiers are determined monthly

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Agency Establishment Bonus

AGENCY ESTABLISHMENT BONUS

Bonus payout is based on your tier

Your tier will be based on your cumulative production in months 1 – 3 relative to your baseline cash flow for months 1 – 3

Tier 1: $10,000Tier 2: $7,500Tier 3: $5,000Tier 4: $0

Agency Establishment Bonus will be paid in month 4 of affiliation

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Validation Requirements

Validation Requirements

Two production requirements (one for Property & Casualty – P&C, and one for Allstate Financial – AF) need to be achieved within the first 6 months of agency affiliation

The P&C requirement is derived from your baseline cash flow– The minimum P&C requirement is 90% of the baseline cash flow (Tier 3 level)

The Allstate Financial requirement is $5,000 or more in Allstate Financial production credit

Additional validation will occur at month 12 of affiliationThe minimum P&C requirement is 90% of the baseline cash flow (Tier 3 level)

All validation requirements are conditions of the agency owner relationship. Failure to meet the validation requirements will lead to termination of the Agency Agreement.

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Agency Development Bonus I

Agency Development Bonus I (ADB I)

ADB I is eligible to be received/paid in months 2 – 37* of affiliation

Based on your tier for a given month, a bonus rate (see next slide) will be applied to your current month’s net new P&C written premium to determine a bonus

A bonus will be paid in the following month (if you qualify)

See next slide for bonus rates by tier and month

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* ADB I will also be paid in months 38-49 for any month you achieve Tier 1 status during months 37-48; ADB I will also be paid in months 38-43 for any month you achieve Tier 2 status during months 37-42

Agency Development Bonus I, Continued

AGENCY DEVELOPMENT BONUS I (ADB I) SCHEDULE

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Agency Development Bonus II

Agency Development Bonus II (ADB II)

ADB II is eligible to be received/paid in months 3 – 38* of affiliation

Based on your tier for a given month, a dollar amount (see next slide) will be applied to your current month’s P&C net Policy in Force (PIF) growth over prior month – special rules apply when PIF growth is negative

A bonus will be paid two months later (if you qualify)

See next slide for dollar amounts by tier and month

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* ADB II will also be paid in months 39-50 for any month you achieve Tier 1 status during months 37-48; ADB II will also be paid in months 39-44 for any month you achieve Tier 2 status during months 37-42

Agency Development Bonus II, Continued

AGENCY DEVELOPMENT BONUS II (ADB II) SCHEDULE

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Agency Performance Profile Agency Bonus

AGENCY PERFORMANCE PROFILE AGENCY BONUS

Agency Bonus for agency owners with 36 months or less of affiliation is determined by performance on the Agency Performance Profile measurement system

Calculated as a % of total P&C written premiumAnnual bonus, with the bonus period running from January through December of calendar yearBonus is paid after the end of the calendar year

Agency Performance Profile measurement system for agency owners with 36 months or less of affiliation who are eligible for Start-up Agency incentive compensation is built on three independent measurement categories:

RetentionPolicy growth over cash flow policy growth goalAllstate Financial production credit

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Revenue Summary for New Exclusive Agents

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Receive Support from Allstate

TO HELP YOU MEET BUSINESS OBJECTIVES, YOU’LL HAVE SUPPORTFROM FIELD DISTRIBUTION LEADERS

Support from a New Agency Consultant (NAC) for the first 18 months

Ongoing support from field distribution leaders, including scheduled Agency Status Reviews at certain months

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Awards and Recognition

AS AN EXCLUSIVE AGENT, YOU’LL HAVE THE OPPORTUNITY TOQUALIFY FOR ALLSTATE’S EXCITING AWARDS AND RECOGNITIONEVENTS

Regional Champions ConferenceOvernight event with spouse or guest

Chairman’s ConferenceCompany-wide conference trip with spouse or guest

Chairman’s Inner CircleAdd-on trip to Chairman’s Conference with spouse or guest

Leaders ForumBusiness meeting for top agency owners to network, share a wealth of ideas and learn from the “best of the best”

Short-term/local promotions may be available throughout the year

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This overview is confidential and proprietary information which is the exclusive property of Allstate Insurance Company and its affiliates, and subsidiaries, including Allstate Life Insurance Company (the “Company”), and may not be disclosed to third parties, other than outside advisors or as required by law, without first having obtained written permission from Allstate Insurance Company.

Securities offered through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. 877-525-5727.

Commission and bonus amounts are subject to change.Allstate is an Equal Opportunity Company.

For more information, contact Allstate toll-free at 877-258-9012, or visit allstateagent.com.

©2008 Allstate Insurance Company. allstate.com

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