11% GROWTH AVG. 20 YEAR CUMULATIVE RATE

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2 THE STRENGTH TO LEAD In 2009, the global economic downturn continued to put great pressure on most businesses. Cottingham & Butler felt this pressure as well. However, while most firms in our industry retrenched, we continued to make significant investments in our team so we could more effectively serve our clients. In these difficult times, you want a partner who has the strength to lead, who will invest in their capabilities so they can serve you better. In 2009, we expanded our employee benefits business through an acquisition of Baker-Tilly Employee Benefits LLC. This acquisition unites our historical benefits expertise with a very strong benefits consulting business and expands our geographic footprint to include three new offices in Wisconsin. We continued to add great talent to our team, including the addition of our Nashville office. We created several new service processes that enable our team to more effectively identify our clients risks and to develop action plans for helping them address these risks. JOHN BUTLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER DAVID BECKER PRESIDENT AND CHIEF OPERATING OFFICER 11% GROWTH AVG. 20 YEAR CUMULATIVE RATE We recognize that our clients are competing in a global environment where risks are increasing. Our commitment is to consistently bring the best insurance solutions to them solutions that provide the coverages they need at the right price. Our 2009 Annual Report highlights our talented team and the roles they play in serving our clients. These individuals continue to push our company forward against our three strategies: being a Top Employer, Top Provider, and a Top Performer. With their commitment and dedication, Cottingham & Butler continues to have the strength to serve our clients with distinction. 5

3 COTTINGHAM & BUTLER ANNUAL REPORT TRANSPORTATION GROUP (LARGE FLEET) Chris Patrick Senior vice president - Large fleet Cottingham & Butler s Transportation Practice is a leading provider of insurance and risk management solutions to the transportation industry across the United States. We have over 2,500 clients in 47 states and provide an array of traditional and non-traditional insurance solutions. With more than 110 trucking companies insured in our captives, we are also the leading provider of alternative risk solutions for the trucking industry. In 2009, we demonstrated our strength to lead by: We work hard to structure programs that save clients money without compromising the coverage they need. INCREASing revenue by 16% creating an analysis tool to help reduce collateral commitments for our clients 2

4 CAPTIVES AND PROGRAMS Mark Fitzjerrells vice president - captives & programs We give our clients the ability to own their own insurance company, allowing them to share in the underwriting profits and investment income that comes with having great loss experience. Cottingham & Butler s Captives and Programs Division provides well-run companies the opportunity to own their own insurance company. These companies are leaders in their industry that are committed to risk management and view the control over their insurance costs as a competitive advantage. Captive members can obtain the financial benefits that would otherwise be captured by the insurance company. In 2009, we demonstrated our strength to lead by: 98% retaining 98% of captive members eligible for renewal $1.3 $4.6 $7.6 $ distributing over $8.7 million in dividends to our clients launching a fourth trucking captive 3

5 COTTINGHAM & BUTLER ANNUAL REPORT TRANSPORTATION GROUP (SMALL FLEET) STEVE SCHILL Senior vice president - small fleet Our team works to reduce our clients costs and improve their profitability. We are advisors, not just sales people, which allows us to establish great client relationships. Our National Specialized Transportation Division (NSTD) works closely with individual operators and smaller trucking fleets was a difficult year for our clients, and we worked hard to help them overcome the challenging business environment. We utilized our access to over 30 insurance companies, along with alternative risk and packaged coverage options, to make certain our client were getting the coverage they needed at a competitive price. In 2009, we demonstrated our strength to lead by: INCREASing REVENUE by 3.4% FROM 2008 ADDing 374 NEW TRUCKING CLIENTS 4

6 SAFETY MANAGEMENT David Franson Senior vice president - CBCS & safety We work with our clients to reduce their losses. We are passionate about making a difference as our team recognizes that what we really do is protect people. We take pride knowing that our services have prevented thousands of injuries. Safety Management Services Company (SMSC) is a team of certified safety professionals who specialize in risk reduction, giving our clients access to experts rather than generalists. SMSC offers solutions that help clients deal with immediate pressing challenges as well as create lasting long-term change that can significantly reduce losses over time. We are able to assist clients in such specific areas of business management as risk evaluation, job safety analysis, safety cultures, safety accountability systems, regulatory compliance and safety leadership. In 2009, we demonstrated our strength to lead by: REDUCing Liability claims by 21% in OUR LARGEST GROUP CAPTIVE (per million miles) ENHANCing OUR WEB- BASED toolkit TO INCLUDE IMPLEMENTATION GUIDES AND SAMPLE policies FOR OSHA- RELATED PROGRAMS 5 9

7 COTTINGHAM & BUTLER ANNUAL REPORT 6 RISK MANAGEMENT Dean fair Senior vice president - risk management We make sure our clients understand all the current and future risks they face. We then help them implement strategies to address these risks in the most cost efficient manner. Our Risk Management Division primarily focuses on large middle-market accounts. The group executes a clear and unique business model by providing greater expertise, capabilities and service than the smaller local agent, while providing a greater level of attention and continuity than the national brokers provide. New clients are not earned by a me too, but cheaper approach. Rather, we offer prospects a thorough, comprehensive, and diagnostic audit of their current insurance and risk management program. This approach not only identifies issues and problems, but offers solutions. We leverage our integrated infrastructure to act as our clients in-house risk management department, where we can leverage our claims attorney, TPA, safety consultants and captive solutions. In 2009, we demonstrated our strength to lead by: INCREASING NET NEW BUSINESS BY 16% OVER 2008 Launching a certificate management and tracking tool to help our clients better manage certificates of subcontractors Developing and implementing our proprietary audit system

8 TRIBAL CONSULTING ben butler vice president - tribal consulting Working with Tribal Nations provides our team the opportunity to not only produce significant cost savings for our clients, but to have a positive impact on the lives and health of tribal members and their families. Cottingham & Butler Tribal Consulting is the leader in integrating health plans, tribal clinics, and Contract Health Service dollars to maximize coverage levels and resources for our clients. Health care is of vital importance to tribes, their members, and employees. Our proven strategic planning process and comprehensive wellness initiatives are not only benefiting our clients bottom line, but improving the health of tribal members and employees. Our full suite of tribal-centric consulting services such as risk management, compliance, and human resources help create peace of mind for all the Tribes we serve. In 2009, we demonstrated our strength to lead by: 100% RETAINing 100% OF OUR CLIENTS introducing property and casualty services such as safety, loss control, and claims management to our long-term client base 7 11

9 COTTINGHAM & BUTLER ANNUAL REPORT 8 EMPLOYEE BENEFITS CONSULTING brad plummer senior vice president - employee benefits As the employee benefits landscape changes, our benefits practice evolves to provide our clients the services and strategies they need to provide better benefits at a sustainable costs. The Employee Benefits group helps employers lower their overall benefits costs. By getting to the details of what is driving premium increases, we are able to help implement a plan to make measurable improvements. The integration with our wellness division enables us to offer our clients a program that can improve the overall health of their employees and reduce costs going forward. We also provide additional services such as dependent eligibility audits and CORBA and FMLA administration that allow our clients to reduce administrative tasks and focus on their most important strategic initiatives. Our team is a leader in providing the tools and deliverables to clients that enable them to make informed, intelligent choices that are consistent with their business strategy and culture. In 2009, we demonstrated our strength to lead by: growing new business revenue by 21% over 2008 increasing net new business revenue by 27% over 2008

10 COTTINGHAM & BUTLER CONSULTING SERVICES susanne chemerow vice president - Cottingham & Butler Consulting services As an independent health and welfare benefits consultant, our clients look to us for answers. Our expertise and knowledge provides solutions that help clients educate employees and utilize their benefits effectively. Baker Tilly Employee Benefits LLC was acquired by Cottingham & Butler on July 27, Now known as Cottingham & Butler Consulting Services, we are a leader in providing the tools and deliverables that enable clients to make informed, intelligent choices that are consistent with their business strategy and culture. Our proven combination of plan analysis, compliance assistance and strategic planning aids the client in navigating the maze of legislative and economic roadblocks to a successful employee benefit package. In 2009, we demonstrated our strength to lead by: Offering clients a monthly webinar series on pertinent benefits and human resources topics completing 24 compliance audits focusing on legislative and regulatory requirements 9 13

11 COTTINGHAM & BUTLER ANNUAL REPORT CBCS (COTTINGHAM & BUTLER CLAIMS SERVICES) David Franson Senior vice president - CBCS & safety Cottingham & Butler Claims Services (CBCS) is an independent Third Party Administrator with national workers compensation and liability claims capabilities. Our highly skilled professionals work closely with our clients throughout the claims management process. We are stewards of our clients money and keep them up to speed on the status of all of their claims. In 2009, we demonstrated our strength to lead by: We aggressively manage claims, giving our clients the best possible outcome. When our clients have caused injuries, our adjuster and nurse case managers work closely together to ensure that injured claimants receive the best and most appropriate medical care, driving faster recovery and lower claim costs. improving customer service satisfaction scores by more than 10% in our largest trucking captives IMPLEMENTing A COST FREE MEDICARE COMPLIANCE REPORTING FEATURE FOR OUR CLIENTS 10

12 ADMINISTRATION Tim berns chief financial officer nicole pfeiffer vice president - human resources mark roling chief sales officer angie long director of strategic initiatives We take great pride serving our internal customers so they have the knowledge, skills and abilities to serve our external customers with distinction. In 2009, we did more with less, a testament to our team s ability to create efficiencies and their commitment to best-in-class service. In 2009, we demonstrated our strength to lead by: 24% having 24% of employees achieve a technical designation Producing $3.4 million in net new recurring revenue company-wide 11 15

13 COTTINGHAM & BUTLER ANNUAL REPORT HEALTHCHECK360º michael kelly director - healthcheck360º HealthCheck360 is a performance-based wellness solution that allows our clients to manage their benefits like they manage their business with employee accountability, specific goals and measurable outcomes. Our unique approach empowers employers to take control of health care costs by creating a culture of employee accountability and health awareness. HealthCheck360 provides the quantitative data and metrics needed to treat health as a serious business strategy. In 2009, we demonstrated our strength to lead by: In order for our company and our clients to be successful, our team has to help people improve their health. We get up every morning knowing that our work has real value and we take pride in knowing that we have contributed to so many people who have made dramatic health and lifestyle improvements. angie long director of strategic initiatives 40% INDUSTRY 82% HC360 Achieving an EMPLOYEE PARTICIPATION RATE OF 82% VS. INDUSTRY AVERAGE OF 40% 65% ASSISTING 65% OF OUR HIGH RISK PARTICIPANTS TO MAKE A SIGNIFICANT IMPROVEMENT IN THEIR HEALTH FROM 2008 WORKING WITH OVER 70 BUSINESSES AND TOUCHING over 20,000 EMPLOYEE LIVES 12

14 HEALTHCORP dr. james hall medical director - healthcorp Our team provides advice and resources so our clients employees and their families can attain the highest quality health care at the most reasonable cost. HealthCorp assists self-insured employer groups in providing efficient and progressive health care management services. HealthCorp provides registered nurses, a full-time medical director, and two assistant medical directors to help our clients, their employees and dependents navigate a complex health care system. In a nation in turmoil over what to do about escalating costs, our services represent a model system that reduces excessive and inappropriate services, as well as abusive charges in medical care. In 2009, we providing a 6:1 ROI for clients that implemented nurse case management SavING clients $8.8 million through managed care efforts Expanding managed care services to new third party administrators demonstrated our strength to lead by: 13 17

15 COTTINGHAM & BUTLER ANNUAL REPORT SISCO (SELF INSURED SERVICES CORPORATION) dick sigwarth vice president - sisco SISCO is a professional benefit administration firm specializing in solutions embedded within a high-touch, flexible service environment. SISCO offers a comprehensive range of services to include all aspects of health plan administration, as well as online enrollment and administrative support for FMLA, Reimbursement Accounts and Eligibility Audits. SISCO helps employers and employees get the most value for their benefit dollar. We understand the financial and personal significance of every transaction we manage on behalf of our clients. Our approach integrates clinical expertise and best-in-class information systems. Examples of our integration includes: clinical staff (MDs and RNs), subrogation, complex bill review, reimbursement accounts, hospital bill audits and online enrollment. In 2009, we demonstrated our strength to lead by: 14

16 SISCO (SELF INSURED SERVICES CORPORATION) providing claims services for fully insured and Selffunded plans implementing eligibility audits for our clients that have shown a minimum first year roi of 800% Saving clients over $3.8 million through audits of all ppo bills received Offering a nationwide limited medical plan with the american worker program 15 19

17 COTTINGHAM & BUTLER ANNUAL REPORT FOLSOM, CA 7 DENVER, CO AUSTIN, TX 3

18 MINNEAPOLIS, OLIS, MN 10 WAUSAU, WI 1 CRESCO, O, IA APPLETON, WI SATELLITE OFFICES MADISON, WI WAVERLY, IA A ANKENY, IA SCHAUMBURG, URG, IL 22 IOWA CITY, IA A NAPERVILLE, IL 1155 VALPARAISO, IN COLUMBUS, OH Our central location in the heart of the United States gives us the distinct advantage of easily reaching many major metropolitan cities and, more importantly, remote locations around the country. Additionally, we continue to increase our footprint across the nation in an effort to make certain we are giving the best service to our clients across the country. In 2009, Cottingham & Butler continued its geographic expansion by acquiring an employee benefits operation with locations in Madison, Appleton and Wausau, Wisconsin, and by bringing an additional Transportation producer on board in Franklin, Tennessee. We continue to search out and hire the best professionals across the country that share our passion for winning and providing top-of-the-line services. At the end of 2009, the company had: - Employee presence in 11 states - Clients located in 47 states NASHVILLE, TN ORLANDO, FL 13 Dubuque, Iowa (corporate) 1. Appleton, Wisconsin 2. Ankeny, Iowa 3. Austin, Texas 4. Columbus, Ohio 5. Cresco, Iowa 6. Denver, Colorado 7. Folsom, California 8. Iowa City, Iowa 9. Madison, Wisconsin 10. Minneapolis, Minnesota 11. Naperville, Illinois 12. Nashville, Tennessee 13. Orlando, Florida 14. Schaumburg, Illinois 15. Valparaiso, Indiana 16. Wausau, Wisconsin 17. Waverly, Iowa 21