Allstate (ALL)

AVERAGE ADJUSTED RETURN ON EQUITY RELATIVE
TO PEER GROUP, 2004-2006 CYCLE

        Target award opportunities approved by the Committee are stated as a percentage of annual base salary. Award opportunities for the named executives are capped at 300% of the target awards. Awards for each cycle are calculated using base salary in effect at the beginning of the cycle, as adjusted by any promotional increases granted during the course of the cycle on a prorated basis. For the 2004-2006 cycle, the long-term cash incentive target awards for the named executives, as a percentage of base salary, were as follows: Mr. Liddy-155%, Messrs. Hale and Simonson-80%, Mr. Sylla-100% and Mr. Wilson-100% for the portion of the cycle prior to his promotion to chief operating officer in June 2005 and 120% for the remainder of the cycle.

        In calculating the long-term cash incentive awards, our achievement with respect to each performance measure for a particular cycle is expressed as a percentage of the target goal, with interpolation applied between the threshold, target, and maximum goals. That percentage is multiplied by the weight assigned to that particular performance measure and the resulting percentage is multiplied by

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the executive's target award opportunity for the cycle. The amount of each executive's long-term cash incentive award for a particular cycle is the sum of these calculations for all performance measures for the cycle, unless otherwise adjusted by the Committee. Long-term cash incentive awards based on the achievement of the performance measures for the 2004-2006 cycle were paid in March 2007 and are included in the amounts reported in the Non-Equity Incentive Plan Compensation column of the Summary Compensation Table and broken out separately from annual cash incentive awards in a footnote to that table. The target and maximum long-term cash incentive award opportunities for the 2006-2008 cycle are included in the Estimated Future Payouts under Non-Equity Incentive Plan Awards column in the Grants of Plan-Based Awards table.