THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Arthur J. Gallagher & Co. (AJG)

4/7/2006 Proxy Information

For the year ended December 31, 2005, and during the year 2006 to date, the Company and certain of its subsidiaries have retained the law firm of Lord, Bissell & Brook, LLP to provide legal advice and perform legal services to the Company in the ordinary course of business. One of the CompanyÕs directors, Kay W. McCurdy, is a partner at Lord, Bissell & Brook, LLP. All of these transactions were on substantially the same terms as those prevailing at the time for comparable transactions with unrelated parties. The Company anticipates that it will continue to engage in such transactions with Lord, Bissell & Brook, LLP in the ordinary course of business during the remainder of 2006. Fees paid by the Company to Lord, Bissell & Brook, LLP for the fiscal year ended December 31, 2005 for services rendered were $86,500. None of the fees paid to Lord, Bissell & Brook, LLP during 2005 were, or for 2006 are expected to be, in excess of five percent (5%) of the CompanyÕs or Lord, Bissell and BrookÕs consolidated revenues in either of such years.

Certain directors and executive officers have immediate family members who are employed by the Company. The compensation of each such family member was established by the Company in accordance with its employment and compensation practices applicable to employees with equivalent qualifications and responsibilities and holding similar positions and is comparable to compensation paid to unrelated third parties for similar services. A sister of J. Patrick Gallagher, Jr. was employed by the Company in 2005, was paid an aggregate amount of $358,800 in salary and bonus and received a stock option grant of 3,500 shares. A brother of J. Patrick Gallagher, Jr. was employed by the Company in 2005, was paid an aggregate amount of $649,100 in salary and bonus and received a stock option grant of 25,000 shares and had a $120,000 relocation related loan forgiven. A brother-in-law of J. Patrick Gallagher, Jr. was employed by the Company in 2005, was paid an aggregate amount of $468,400 in salary and bonus and received a stock option grant of 16,500 shares. Another brother-in-law of J. Patrick Gallagher, Jr. was employed by the Company in 2005, was paid an aggregate amount of $84,000 in salary and bonus and received a stock option grant of 500 shares. A son of Robert E. Gallagher was employed by the Company in 2005, was paid an aggregate amount of $148,800 in salary and bonus and received a stock option grant of 3,000 shares. A brother of James W. Durkin, Jr. was employed by the Company in 2005, was paid an aggregate amount of $336,300 in salary and bonus and received a stock option grant of 8,000 shares. A son of J. Patrick Gallagher, Jr., was employed by the Company in 2005, was paid an aggregate amount of $100,000 in salary and bonus and received a stock option grant of 500 shares. A son of James W. Durkin, Jr. was employed by the Company in 2005 and was paid an aggregate amount of $74,200 in salary and bonus.

In 2005 and 2004 the Company paid $459,000 and $418,700, respectively, to Advanced Group for certain personnel related services. A brother of J. Patrick Gallagher, Jr. is an Executive Vice President of Advanced Group. The Company engaged Advanced Group in the ordinary course of business in accordance with its normal procedures for engaging service providers and on terms no less favorable than could be obtained from unaffiliated third parties.

The law firm of Sidley Austin LLP provides legal services to the Company. A son-in-law of Robert E. Gallagher is a partner at Sidley Austin LLP. Fees paid by the Company to Sidley Austin LLP for the fiscal year ended December 31, 2005 for services rendered were $3,164,500, which did not exceed five percent of such law firmÕs gross revenues for its last fiscal year.

4/11/2005 Proxy Information

For the year ended December 31, 2004 and during the year 2005 to date, the Company and certain of its subsidiaries have engaged in brokerage and other transactions on behalf of CNA Financial and certain of its subsidiaries in the ordinary course of business. From January 1, 2004 through April 28, 2004, one of the CompanyÕs directors, Bernard L. Hengesbaugh, was Chairman of the Board of Directors of CNA Financial. All of these transactions were on substantially the same terms as those prevailing at the time for comparable transactions with unrelated parties. The Company anticipates that it will continue to engage in such transactions with CNA Financial in the ordinary course of business during the remainder of 2005. None of the transactions in which the Company engaged with CNA Financial during 2004 were, or for 2005 are expected to be, in excess of five percent (5%) of the CompanyÕs or CNA FinancialÕs consolidated gross revenues for either of such years.

Certain directors and executive officers have immediate family members who are employed by the Company. The compensation of each such family member was established by the Company in accordance with its employment and compensation practices applicable to employees with equivalent qualifications and responsibilities and holding similar positions and is comparable to compensation paid to unrelated third parties for similar services. A sister of J. Patrick Gallagher, Jr. was employed by the Company in 2004, was paid an aggregate amount of $371,305 in salary and bonus and received a stock option grant of 2,500 shares. A brother of J. Patrick Gallagher, Jr. was employed by the Company in 2004, was paid an aggregate amount of $616,685 in salary and bonus, received stock option grants of 31,502 shares and had a $120,000 relocation related loan forgiven. A brother-in-law of J. Patrick Gallagher, Jr. was employed by the Company in 2004, was paid an aggregate amount of $525,724 in salary and bonus and received a stock option grant of 15,000 shares. A son of Robert E. Gallagher was employed by the Company in 2004, was paid an aggregate amount of $144,167 in salary and bonus and received a stock option grant of 3,000 shares. A brother of James W. Durkin, Jr. was employed by the Company in 2004, was paid an aggregate amount of $328,994 in salary and bonus and received a stock option grant of 10,000 shares. A son of James W. Durkin, Jr. was employed by the Company in 2004 and was paid an aggregate amount of $69,000 in salary and bonus.

In 2004 and 2003 the Company paid $387,000 and $306,000, respectively, to Advanced Group for certain personnel related services. A brother of J. Patrick Gallagher, Jr., is an Executive Vice President of Advanced Group. The Company engaged Advanced Group in the ordinary course of business in accordance with its normal procedures for engaging service providers and on terms no less favorable than could be obtained from unaffiliated third parties.

4/5/2004 Proxy Information

Robert E. Gallagher is an uncle of J. Patrick Gallagher, Jr.

Robert E. Gallagher has been Chairman of Arthur J. Gallagher & Company since 1990 and served as Chief Executive Officer from 1963 to 1994.

For the year ended December 31, 2003 and during the year 2004 to date, the Company and certain of its subsidiaries have engaged in brokerage and other transactions on behalf of CNA Financial and certain of its subsidiaries in the ordinary course of business. One of the CompanyÕs directors, Bernard L. Hengesbaugh, is Chairman of the Board of Directors of CNA Financial. Mr. Hengesbaugh is not standing for reelection at the April 28, 2004 CNA annual meeting. All of these transactions were on substantially the same terms as those prevailing at the time for comparable transactions with unrelated parties. The Company anticipates that it will continue to engage in such transactions with CNA Financial in the ordinary course of business during the remainder of 2004. None of the transactions in which the Company engaged with CNA Financial during 2003 were, or for 2004 are expected to be, in excess of five percent (5%) of the CompanyÕs or CNA FinancialÕs consolidated gross revenues for either of such years.

4/2/2003 Proxy Information

Robert E. Gallagher is an uncle of J. Patrick Gallagher, Jr.