1. © 2005 Carlson Marketing. All rights reserved. 1 Carlson Companies Be Well Engagement Strategy 2007 Presented August 2006 Updated August 7, 2006

2. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 2 Be Well Goals and Objectives  Be Well Goal  Create a culture of health and well-being, making Carlson Companies a great place for great people to do great work  Objectives  Launch four essential segments of health and well-being at Carlson  Personal Health Awareness  Health Benefit Solutions  Culture of Wellness  The Good Life

3. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 3 Be Well Engagement Goals and Objectives  Wellness Engagement Goal  Stimulate intrinsic and extrinsic motivation towards healthful living  Objectives  In partnership with Carlson Marketing Worldwide, leverage and expand the existing Carlson Rewards incentive and recognition program to reward employees with valuable Gold Points ® for their participation and achievements  Develop a program of incentives that award all participants of the new Be Well program and encourages a healthy lifestyle

4. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 4 Be Well Corporate Alignment  Be Well incentives align with Carlson’s enterprise vision, mission and strategy EnterpriseTotalRewards Be Well Incentives Vision To become the most respected private company on earth To be valued as experts providing TotalRewards solutions that drive achievement of business objectives To create a culture of health and well-being, making our company a great place for great people to do great work Mission Building Better Relationships To provide TotalRewards solutions across the enterprise that attract, reward, retain and motivate great people to do great work To stimulate intrinsic and extrinsic motivation toward healthful living Strategy Build the Team Satisfy the Customer Deliver our Family of Businesses Work Smarter, not Harder TR expertise TR portfolio TR design TR service delivery TR technology TR communication Carlson Rewards incentive and recognition platform Gold Points currency

5. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 5 Be Well Program Engagement  Program Engagement Opportunities  CareAllies Smart Steps Chronic Condition Management  Asthma  Heart Disease  Diabetes  Pulmonary  Back Pain  Targeted such as Stomach, etc.  CareAllies Lifestyle Management  Smoking Cessation  Weight Management  Stress Management  CareAllies Health Coach  Available to employees at risk

6. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 6 Be Well Program Engagement  Program Engagement Opportunities  CareAllies Health Assessment  Carlson Companies Healthy Living Educational Activities  Carlson University Courses  Brown Bags  Webinars  Special Events  Guest Speakers  Evening Out Sessions  Hennepin Health Series  New Moms and Dads

7. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 7 Be Well Engagement Program Assumptions  Incentive Best Practices for Chronic Condition and Lifestyle Management and Health Coaches  Award at the start of program  Smart Steps Chronic Condition Management: Ongoing and no end date for incentives  Based on behavior modification models, awarding at specific intervals garners the greatest success  Lifestyle Management: Timed with ending date  Award at the end of the program, regardless of how long the agreed upon program takes to complete  Stress Management 4 - 6 months  Weight Management 6 - 12 months  Smoking Cessation 6 - 12 months  Health Coach: Timed with ending date  Typically 4 - 6 months  Based on participation and not outcome  Maintain equity of incentives, avoid value judgments on which programs should get “more” or “less” points  Applies to both self-referred and program driven participants

8. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 8 Be Well Engagement Program Assumptions  Projected Participation Rates  12,620 total employees (including Navigant & CHW Managed Hotels)  9,700 employees projected to sign up for benefits  Smart Steps Chronic Condition Management only open to benefits enrolled employees  Lifestyle Management and Health Coach open to entire employee population  15% or 1,455 (15% of 9,700 enrolled) employees are impacted by the disease states covered in Smart Steps Chronic Condition Management  60%, or 873 will work with a Chronic Care Coach

9. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 9 Be Well Engagement Program Assumptions  23% of Americans smoke, or 2,903 Carlson employees could take the Smoking Cessation program via Lifestyle Management  64% of American’s are obese, or 8,077 Carlson employees could get involved in Weight Management via Lifestyle Management  10% of American’s are stressed, or 1,262 Carlson employees could get involved in Stress Management via Lifestyle Management  Lifestyle Management maximum potential employee participation is 12,241  Assuming 25% participation brings total to 3,060 employees who begin the program

10. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 10 Be Well Engagement Program Assumptions  Health Coach maximum potential employee participation is 12,620  Assuming 60% qualify (7,572) and 30% participate, it brings the total to 2,272 employees  Assuming Health Assessment maximum potential employees is 12,620  Approximately 60% will fill out the assessment with an incentive (only 15-20% with no incentive), or 7,572  Carlson Companies Healthy Living Educational Activities will have 25% participation  Total projected employee participation at 25% is 3,155  Employees will take an average of three activities, with approximately one points based activity

11. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 11 Be Well Engagement Recommendations  Smart Steps Chronic Condition Management  50,000 points start of ongoing program  2,000 points each month in program  Lifestyle Management  25,000 points start of timed program  50,000 points upon graduation from program  Health Coach  25,000 points at start of program  10,000 points upon graduation from program

12. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 12 Be Well Engagement Recommendations  CareAllies Health Assessment  20,000 points for completion of HA  Sweepstakes for five $100 gift cards for people who agree to be contacted by a Health Coach  Positively kick off new Be Well program  Provides catalyst for employees who want to live healthful lives  Great offer to employees as part of their overall health benefit package  Leverage in attracting talented employees

13. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 13 Be Well Engagement Recommendations  Carlson Companies Healthy Living Educational Activities  Online Learning Opportunities, two per month  2,500 points for completion  Hennepin Health Series, Carlson University, Webinars  For example, How to be a Healthy Consumer, How to Chose a Doctor  Q4 2005 – Navigant Carlson University classes  Logistics for providing points outside Carlson University to be determined  Brown Bags, one per month  Merchandise giveaways, such as pedometers, water bottles and magnets  Tap into vendors and operating groups, such as CMW Merchandise Group for a luggage giveaway, American Cancer Society for pens, CHW merchandise, etc.

14. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 14 Be Well Engagement Recommendations  Special Events, two per year  Sweepstakes drawing for attendees  Kick-off of Be Well launch and Town Halls for Fall 2007 new benefits  Work with partners to secure trips, free hotel stays, luggage, grills, etc.  Guest Speakers, two per year  Sweepstakes drawing for attendees  Work with partners to secure trips, free hotel stays, luggage, grills, etc.

15. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 15 Be Well Engagement Recommendations  Evening Out Sessions, one per quarter  Giveaways at session, such as pedometers, water bottles and magnets  Tap into vendors and operating groups such as CMW Merchandise Group for a luggage giveaway, American Cancer Society for pens, CHW merchandise, etc.  New Moms and Dads  Giveaways at session, such as pedometers, water bottles and magnets  Tap into vendors and operating groups such as CMW Merchandise Group for a luggage giveaway, American Cancer Society for pens, CHW merchandise, etc.

16. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 16 2007 Be Well Engagement Costs  Cost Rate of Gold Points: $.0018 per point  Transfer rate, no mark up  Smart Steps Chronic Condition Management – 873 employees  50,000 points (start of program) X 873 = 43,650,000 points or $78,570  2,000 points (monthly) X 873 = 1,746,000 points X 12 = 20,952,000 points or $37,714  Total Projected Cost: $116,284  $133.20 per participating employee  Lifestyle Management – 3,060 employees  25,000 points (start of program) X 3,060 = 76,500,000 points or $137,700  50,000 points (graduation) X 3,060 = 153,000,000 points or $275,400  Total Projected Cost: $413,100  $135 per participating employee

17. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 17 2007 Be Well Engagement Costs  Health Coach – 2,271 employees  25,000 points (start of program) x 2,271 = 56,775,000 or $102,195  10,000 points (graduation) x 2,271 = 22,710,000 or $40,878  Total Projected Cost: $143,073  $46.76 per participating employee  Carlson Companies Healthy Living Activities – 3,155 employees  2,500 average points X 3,155 = 7,887,500 or $14,198  $4.50 per course per participating employee

18. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 18 2007 Be Well Engagement Costs  Health Assessment – 7,572 employees  20,000 points X 7,572 = 151,440,000 points or $272,592  Plus $500 for Sweepstakes, and $8,000 for set up of promotion  $281,092 total cost  $37.28 per participating employee  Miscellaneous bucket recommended for responding to Be Well needs throughout the year, i.e. if momentum begins to slow down, initiate a promotion or activity  50,000,000 points or approximately 4,000 per employee (12,620) totaling $90,000  $7.13 per employee

19. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 19 2007 Be Well Engagement Costs  Sweepstakes Opportunities – Best Practices  Participate and Win: Sign up for one activity or program with the Be Well program in 2007 and be entered to win a full year Health Insurance covered by Carlson Companies  Cost approximately $8,000 for Sweepstakes and cost of one year insurance coverage  Grand Total without Health Assessment  $776,654  $61.54 per employee (12,620)  Grand Total with Health Assessment  $1,057,746  $83.82 per employee (12,620)

20. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 20 Be Well Measurement  $15,000 budgeted to review the effectiveness of the Be Well program, including incentives  View overall ROI  Understand number of points given/cost as compared to healthcare cost savings

21. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 21 Be Well Incentive Rules  Currently Established Rules  Points will not be verified if employee claims that they did not receive their points. CMW will simply add points to the employees total  No limit to the number of points an employee can earn in their entire career at Carlson Companies as associated with Wellness  All point claims are subject to review and verification  Carlson Companies reserves the right to change the rules  Employees will receive their points once a month  Health Assessment payout at the end of submission deadline  Employees can sign up for the same Lifestyle Management program or Health Coach program when a new Health Assessment is complete each year, with no limit

22. © 2005 Carlson Marketing. All rights reserved. Updated August 7, 2006 22 Health Care Engagement Summary 2007 Carlson Incentives (Per Year) (Per Person) Best Practices (Per Year) (Per Person) Best Practice Examples2007 Projected Eligible Employees and Active Participation Rates 2007 Projected Cost Health Assessment $37.28$50 - $500Cash, Health Insurance Discounts, Health Reimbursement Account Funds, Health Club Discounts 100% of total population 60% actively participate $281,092 Chronic Care Management $133.20$200 - $600Cash, Health Insurance Discounts, Health Reimbursement Account Funds, Health Club Discounts 15% of benefits enrolled population qualify 60% actively participate $116,284 Lifestyle Management $135$75 - $300Cash, Health Insurance Discounts, Health Reimbursement Account Funds, Health Club Discounts 23% smoke, 64% obese and 10% stressed of total population qualify 25% actively participate $413,100 Health Coach$46.76$50 - $100Rewards60% of total population qualify 30% actively participate $143,073 Carlson Healthy Living Activities $4.50$150 - $300Wellness Credits, Health Club Subsidies, Cash, Sweepstakes 100% of total population 25% actively participate $14,198 Miscellaneous Bucket $7.13TBD$90,000 Sweepstakes$8,000 Set Up Averages 5-10 per year Free Medical Coverage, Hotel Stays, $50 Gift Certificates