DESCRIPTION OF BONUS ARRANGEMENT FOR JEAN-PIERRE LEMONNIER
The incentive bonus paid to Jean-Pierre Lemonnier for each full calendar year included within the term of his
employment is currently determined under a "balanced scorecard" approach, described as follows:
(1) Eligibility for the bonus each year will be based on certain performance indicators for the Consolidated
France operations. These indicators could include (i) Adjusted Operating Profit, (ii) efficiency improvement, as
measured by certain expense ratios,
(iii) the Company's earnings per share, and (iv) other components. The bonus will be based on performance as
compared to pre-established performance goals for each component. The specific components, as well as the
respective weighting and the performance goals for each component, will be determined in the sole discretion of
the Chief Executive Officer no later than January 31 of the relevant year.
(2) The total bonus will equal the sum of the bonus amounts determined for each component. The bonus amount
for each component will equal the amount described in (3), below, multiplied by the weighting factor described in
(3) For each component, goals will be pre-established for threshold, target, and outstanding performance which,
if achieved, will result in a bonus amount for that component as follows:
For performance below threshold, the bonus amount will equal zero. For performance between threshold and
target, or between target and outstanding, the bonus amount will equal the interpolated amount between the
bonus amounts for threshold and target performance, or between target and outstanding performance, as the case
may be. For performance above outstanding, the bonus amount will be capped at the outstanding bonus amount.
In addition to the above, an additional bonus can be earned through a bonus multiplier. The multiplier will range
from 1 times to 1.2 times based upon the achievement of increased net operating profit percentage.