R2000-207 AUTHORIZING APPLICATIONS

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4. Conversion Fee: The Claim Administrator shall be compensated$6,000 for each conversion policy issued during the term of this Agreement. The service charges will be computed and payable in accordance with the Section below en- titled "Claim Settlements." B. The service charges, which are guaranteed for a twelve (12) month period from the Effective Date of this Agreement, have been determined in accordance with the Claim Administrator's current regulatory status and the existing benefit program.Should future legislation or admin- istrative rule or regulation (i) obligate the Claim Administrator to pay any new taxes, Sur- charges or other fees imposed upon or resulting from this Agreement, or (ii) mandate a new or modify a current benefit,then the Claim Administrator reserves the right, upon at least sixty (60) days prior notice to the Employer to adjust the service charges within such twelve (12) month period. Further, in the event of termination of this Agreement,the Claim Administrator reserves the right to adjust the service charges applicable to the processing of Claims after the date of termination. C. In addition, the Claim Administrator's compensation for its services under this Agreement shall include the difference between the Net Claim Payments reimbursed to the Claim Administrator by the Employer under this Agreement and the net amounts paid to Providers by the Claim Administrator after giving effect to the Claim Administrator's Separate Financial Arrangements with Providers. VIII. TRANSFER PAYMENT In consideration of the Cfaim Administrator's obligations as set forth in this Agreement and at the end of each Transfer Payment Period,the Employer shall transfer to the Claim Administrator's ac- count number#81880-01258 at Bank of America an amount equal to the Transfer Payment Peri- od's Net Claim Payments plus the applicable service charges. For purposes of this agreement,the Transfer Payment Period shall be weekty. The Claim Administrator shall advise the Employer's Financial Division by facsimile or telephone (at a facsimile or telephone number to be furnished by the Employer priorto the effective date of this Agreement)of the amount of Net Claim Payments pursuant to this Agreement for which reimbursement has not been previously made by Employer to the Claim Administrator, plus the applicable service charges. If any day on which a Transfer Pay- ment is due is a holiday, such payment will be made on the next business day. IX. CLAIM SETTLEMENTS A. A Claim Settlement shall be determined for each monthly period. Such period will be referred to as the"Claim Settlement Period."The Claim Settlement shall reflect the sum of the follow- ing: 1. All Net Claim Payments calculated on the basis of Claim Payments paid by the Claim Ad- ministrator in the particular Claim Settlement Period. 2. All Net Claim Payments calculated on the basis of Claim Payments paid by the Claim Ad- ministrator in prior Claim Settlement Periods that have not been included in a prior Claim Settlement. 3. The service charges specified in Section VII. of this Agreement. � _ The sum of 1., 2., and 3. above shall be referred to as the Claim Settlement Total. 'I B. If, within the Claim Setttement Period, the Claim Settlement Total exceeds the Transfer Pay- ments,the Employer will pay the difference to the Claim Administrator.The Claim Settlement � will be determined within sixty(60)days from the last day of the Claim Settlement Period.The �, Claim Administrator will notify the Employer in writing of the results of the Claim Settlement. I - 5 -