Amendment to Minimum Premium Financial Agreement

EX-10.2 3 h48637exv10w2.htm AMENDMENT TO MINIMUM PREMIUM FINANCIAL AGREEMENT exv10w2
 

*** indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission. A complete copy of this agreement has been filed separately with the Securities and Exchange Commission.
Exhibit 10.2
AMENDMENT TO THE MINIMUM PREMIUM
FINANCIAL AGREEMENT,
AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2005,
BY AND BETWEEN
ADMINISTAFF OF TEXAS, INC.,
AND
UNITED HEALTHCARE INSURANCE COMPANY
     THIS AMENDMENT TO THE MINIMUM PREMIUM FINANCIAL AGREEMENT, as amended and restated effective January 1, 2005, (the “MP Financial Agreement”) is entered into as of July 2, 2007, by and between Administaff of Texas, Inc., a Texas corporation, and United Healthcare Insurance Company, a Connecticut corporation (this “Amendment”).
RECITALS
     WHEREAS, on or about June 25, 2002, the Employer and the Company executed the Minimum Premium Financial Agreement effective January 1, 2002 (“Original Agreement”), and on or about December 3, 2004, the Employer and the Company executed an amendment to the Original Agreement; and
     WHEREAS, effective January 1, 2005, the Employer and the Company executed the MP Financial Agreement to amend and restate the Original Agreement (terms capitalized in this Amendment not for grammatical reasons and not otherwise defined in this Amendment shall have the meanings ascribed to them in the MP Financial Agreement); and
     WHEREAS, the Employer and the Company now wish to further amend the MP Financial Agreement pursuant to the terms of this Amendment effective January 1, 2008, unless otherwise stated herein.
     NOW, THEREFORE, in consideration of the following mutual covenants and promises, the parties agree as follows:
ARTICLE I
     Section 1.1 ***. Section 4 of Exhibit A to the MP Financial Agreement is revised to add a new section 4.c., effective May 10, 2007:
In consideration for the changes reflected in this Amendment and the contemporaneous Amendment to the Minimum Premium Administrative Services Agreement, the parties acknowledge that (i) the *** for the Arrangement Month of May 2007 in the amount of $3.26 million and (ii) such amount shall be taken into consideration for the purposes of determining any future actions, if

 

 

any, which may be necessary to manage the Redetermined Accumulated Surplus in accordance with Exhibit A to the MP Financial Agreement, and (iii) such amount shall not be recognized as Policy Revenue.
     Section 1.2. Entire Agreement, Amendment and Waiver. Section 10.f of the MP Financial Agreement is hereby amended and restated in its entirety to read, effective May [10], 2007:
     Absent extraordinary and unforeseen circumstances, neither party shall seek, with respect to the 2008, 2009 and 2010 Arrangement Years, an amendment or modification to the Agreement, the MP Administrative Services Agreement relating to ***; and provided, further, that the Company’s rights under section 5(a) of the Agreement shall be suspended with respect to changes for the 2008, 2009 and 2010 Arrangement Years (except with regard to a modification consistent with a change in actual premium tax expense).
     Section 1.3. Management of the Redeteimined Accumulated Surplus/Deficit. Sections 6.b and 6.c of Exhibit A of the MP Financial Agreement are hereby amended and restated in their entirety to read, effective for Quarterly or Annual Reviews of Arrangement Quarters beginning on or after January 1, 2007:
  b.   If, as part of a Quarterly Review or Annual Review, the Company determines that the Redetermined Accumulated Surplus for the Preceding Quarter exceeds $9 million, then commencing 15 days after such determination, the Company shall waive the Employer’s then current obligation to fund the Claims Account, if any, in an amount equal to the Redetermined Accumulated Surplus amount less $9 million. Any Claims Account funding waived by the Company under this subparagraph 6.b. shall not be recognized as Policy Revenue (e.g., as Health Benefits Paid from the Claims Account or otherwise) but the claims funded by such waiver shall be included as Incurred Claims.
 
      The parties acknowledge that the Company waived Additional Quarterly Premium due in 2007 with respect to the first Arrangement Quarter of 2007 in the amount of $2,000,000.00 and (i) such amount shall be taken into consideration for the purposes of determining any further actions, if any, which may be necessary to manage the Redetermined Accumulated Surplus (initially calculated as of June 30, 2007) in accordance with Exhibit A to the MP Financial Agreement, and (ii) such amount shall not be recognized as Policy Revenue.

2

 

  c.   If, as part of a Quarterly Review or Annual Review, the Company determines that the Redetermined Accumulated Surplus for a Preceding Quarter is less than $9 million or a Redetermined Accumulated Deficit exists, then the Employer shall, within 15 days of the redetermination pay to the Company an amount equal to the difference between $9 million and either (A) the Redetermined Accumulated Surplus amount as of the redetermination date or (B) the Redetermined Accumulated Deficit amount (expressed as a negative value) as of the redetermination date, as applicable. Such payment shall be treated as additional Policy Revenue for purposes of this Exhibit A.
     Section 1.4. Non-MP Policies. Exhibit B to the MP Financial Agreement is hereby amended and restated in its entirety to read, effective May 1, 2007:

3

 

Exhibit B – Non-MP Policies
     The insurance policies, HMO contracts and similar arrangements on the following list are considered “Non-MP Policies” for purposes of the Agreement. Such list shall be deemed modified by the Current Policy List provided by the Company as part of the Quarterly Review, unless the Employer objects within 30 calendar days of receipt.
                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  247936    
***
  1/1/2002    
  247974    
***
  1/1/2002   5/28/2003
  247977    
***
  1/1/2002   3/1/2002
  247989    
***
  1/1/2002   5/27/2003
  247996    
***
  1/1/2002   9/1/2002
  248003    
***
  1/1/2002   3/1/2003
  248006    
***
  1/1/2002   1/22/2002
  248026    
***
  1/1/2002   11/19/2005
  248030    
***
  1/1/2002   1/1/2007
  248035    
***
  1/1/2002   1/1/2002
  248041    
***
  1/1/2002   2/1/2004
  248056    
***
  1/1/2002   1/11/2002
  248063    
***
  1/1/2002   1/1/2004
  248110    
***
  1/1/2002   1/1/2007
  248128    
***
  1/1/2002   1/1/2006
  248131    
***
  1/1/2002   10/1/2003
  248133    
***
  1/1/2002   9/1/2005
  248135    
***
  1/1/2002   2/22/2002
  248144    
***
  1/1/2002   8/15/2003
  248151    
***
  1/1/2002   8/1/2002
  248163    
***
  1/1/2002   1/1/2002
  248165    
***
  1/1/2002   7/1/2002
  248180    
***
  1/1/2002   6/1/2002
  248197    
***
  1/1/2002   11/1/2002
  248208    
***
  1/1/2002   6/16/2002
  248241    
***
  1/1/2002   1/1/2005
  248263    
***
  1/1/2002   11/22/2002
  248271    
***
  1/1/2002    
  248291    
***
  1/1/2002   3/4/2003
  248306    
***
  1/1/2002   5/1/2003
  248314    
***
  1/1/2002   9/4/2002
  248324    
***
  1/1/2002    
  248325    
***
  1/1/2002   5/31/2002
  248339    
***
  1/1/2002   9/8/2003
  248346    
***
  1/1/2002    
  248352    
***
  1/1/2002   3/30/2002
  248370    
***
  1/1/2002   6/1/2002
  248371    
***
  1/1/2002   4/28/2002

4

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  248372    
***
  1/1/2002    
  248373    
***
  1/1/2002   2/25/2002
  248374    
***
  1/1/2002    
  248375    
***
  1/1/2002    
  248376    
***
  1/1/2002   11/1/2002
  248379    
***
  1/1/2002   5/31/2002
  248382    
***
  1/1/2002   12/21/2005
  248384    
***
  1/1/2002   1/1/2005
  248388    
***
  1/1/2002   3/19/2005
  248390    
***
  1/1/2002   6/26/2002
  248396    
***
  1/1/2002   4/15/2003
  248399    
***
  1/1/2002   1/1/2005
  248404    
***
  1/1/2002   7/1/2002
  248405    
***
  1/1/2002    
  248407    
***
  1/1/2002   12/2/2002
  248408    
***
  1/1/2002    
  248409    
***
  1/1/2002    
  248410    
***
  1/1/2002   7/1/2002
  248411    
***
  1/1/2002    
  248412    
***
  1/1/2002   3/1/2002
  248413    
***
  1/1/2002   6/1/2003
  248414    
***
  1/1/2002    
  248415    
***
  1/1/2002    
  248416    
***
  1/1/2002   1/1/2005
  248417    
***
  1/1/2002   6/12/2003
  248418    
***
  1/1/2002    
  248421    
***
  1/1/2002   6/1/2002
  248429    
***
  1/1/2002    
  248433    
***
  1/1/2002   1/1/2002
  248442    
***
  1/1/2002    
  248457    
***
  1/1/2002   1/1/2003
  248463    
***
  1/1/2002   10/26/2002
  248466    
***
  1/1/2002   2/1/2005
  248473    
***
  1/1/2002    
  248474    
***
  1/1/2002   6/15/2002
  248478    
***
  1/1/2002   8/8/2002
  248480    
***
  1/1/2002    
  248486    
***
  1/1/2002   10/1/2005
  248494    
***
  1/1/2002   4/1/2003
  248495    
***
  1/1/2002   7/1/2002
  248497    
***
  1/1/2002    
  248501    
***
  1/1/2002   10/1/2005
  248516    
***
  1/1/2002   1/1/2003
  248519    
***
  1/1/2002    
  248521    
***
  1/1/2002   1/1/2003

5

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  248524    
***
  1/1/2002   10/16/2002
  248528    
***
  1/1/2002    
  248532    
***
  1/1/2002   2/1/2003
  250136    
***
  1/1/2002   7/1/2002
  250197    
***
  1/7/2002   7/1/2003
  250201    
***
  1/1/2002    
  250656    
***
  1/1/2002   6/1/2003
  250657    
***
  1/1/2002   1/1/2003
  250658    
***
  2/1/2002    
  250659    
***
  2/1/2002   2/1/2004
  250660    
***
  1/1/2002   2/16/2005
  250669    
***
  2/15/2002   12/9/2002
  252657    
***
  3/1/2002    
  252926    
***
  3/1/2002   6/1/2002
  253683    
***
  3/4/2002   3/18/2002
  253774    
***
  3/1/2002   2/19/2003
  253775    
***
  3/1/2002    
  253778    
***
  2/27/2002   8/28/2002
  254553    
***
  4/1/2002   5/21/2002
  254678    
***
  4/1/2002   5/31/2002
  254741    
***
  4/1/2002   4/1/2006
  255675    
***
  4/1/2002   10/9/2002
  255701    
***
  4/1/2002   8/3/2005
  255709    
***
  4/1/2002   4/1/2002
  256410    
***
  2/4/2002   2/4/2002
  256498    
***
  2/4/2002   8/12/2002
  256505    
***
  4/1/2002   1/2/2004
  257668    
***
  4/15/2002   5/2/2003
  261873    
***
  6/1/2002   10/1/2004
  262606    
***
  7/1/2002   1/1/2003
  262614    
***
  6/1/2002    
  262616    
***
  6/1/2002   7/1/2004
  262666    
***
  6/1/2002   3/6/2003
  263961    
***
  6/7/2002   8/1/2002
  264562    
***
  7/1/2002   10/22/2004
  264565    
***
  7/1/2002    
  266459    
***
  7/28/2002   5/3/2004
  266473    
***
  7/28/2002   9/3/2006
  267825    
***
  9/1/2002   3/3/2004
  268747    
***
  9/1/2002   1/15/2004
  271606    
***
  10/1/2002   1/1/2003
  272924    
***
  11/1/2002   5/1/2003
  273651    
***
  10/16/2002   8/1/2006
  274488    
***
  11/20/2002   1/1/2003
  277124    
***
  1/1/2003   1/1/2005

6

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  278257    
***
  12/1/2002   11/29/2004
  279171    
***
  1/1/2003   7/1/2003
  279197    
***
  1/6/2003   2/12/2004
  279225    
***
  12/15/2002   4/1/2003
  281742    
***
  1/1/2003   1/1/2006
  282005    
***
  1/1/2003   12/1/2003
  282007    
***
  1/1/2003    
  282062    
***
  1/6/2003   3/1/2004
  286373    
***
  2/1/2003    
  288802    
***
  3/1/2003   3/1/2004
  303058    
***
  7/1/2003    
  303075    
***
  5/1/2003    
  303083    
***
  5/1/2003   6/1/2005
  310924    
***
  5/22/2003    
  311776    
***
  8/11/2003   8/16/2005
  314764    
***
  7/1/2003   10/1/2004
  314770    
***
  7/1/2003   11/16/2005
  315038    
***
  7/1/2003   4/1/2004
  326974    
***
  9/1/2003   8/16/2004
  334639    
***
  9/14/2003    
  338429    
***
  10/1/2003   8/1/2005
  345349    
***
  9/1/2003   9/6/2006
  348740    
***
  10/1/2003   3/1/2004
  348746    
***
  10/1/2003   2/18/2004
  353316    
***
  11/1/2003   11/1/2004
  369064    
***
  1/1/2004   12/1/2005
  378384    
***
  1/1/2004   1/1/2004
  389529    
***
  1/1/2004   6/1/2005
  391528    
***
  3/1/2004   10/1/2005
  395396    
***
  3/1/2004   10/1/2004
  399283    
***
  2/16/2004   6/12/2004
  400182    
***
  2/16/2004   3/18/2005
  400899    
***
  2/19/2004   5/5/2004
  420189    
***
  5/3/2004   5/1/2005
  421616    
***
  6/1/2004    
  426244    
***
  2/1/2004   9/28/2004
  428344    
***
  7/1/2004   9/4/2005
  429009    
***
  5/12/2004   5/12/2004
  429057    
***
  5/12/2004   5/12/2004
  430384    
***
  7/1/2004    
  433257    
***
  6/13/2004   10/15/2004
  433886    
***
  6/21/2004   10/1/2004
  436305    
***
  7/15/2004   11/1/2004
  445040    
***
  9/5/2004   11/1/2006
  456752    
***
  10/1/2004   9/28/2005
  461332    
***
  11/1/2004   5/1/2005

7

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  462865    
***
  11/2/2004   2/17/2005
  464334    
***
  1/1/2005    
  467310    
***
  1/1/2005    
  468171    
***
  1/1/2005   3/1/2005
  469055    
***
  12/20/2004   11/21/2005
  469086    
***
  1/1/2005   1/1/2005
  469115    
***
  1/1/2005   8/1/2006
  469117    
***
  1/1/2005    
  472227    
***
  1/1/2005   7/7/2005
  473377    
***
  1/3/2005   6/24/2005
  473385    
***
  1/28/2005    
  474789    
***
  1/29/2005   1/1/2006
  475654    
***
  1/30/2005    
  475961    
***
  1/31/2005    
  476007    
***
  2/1/2005   11/1/2005
  476271    
***
  2/2/2005   7/1/2005
  478946    
***
  1/1/2005    
  478950    
***
  1/1/2005    
  481120    
***
  3/1/2005    
  481138    
***
  3/1/2005   9/1/2006
  482143    
***
  4/1/2005    
  485156    
***
  4/1/2005   4/7/2006
  485726    
***
  4/16/2005   6/10/2006
  488018    
***
  5/9/2005   12/1/2005
  490568    
***
  6/1/2005   11/4/2006
  492332    
***
  6/6/2005   9/1/2005
  492601    
***
  7/1/2005   7/1/2006
  494007    
***
  7/1/2005   7/1/2006
  495680    
***
  7/15/2005   8/1/2006
  496820    
***
  8/1/2005    
  499842    
***
  9/1/2005   12/1/2005
  502882    
***
  9/1/2005    
  505860    
***
  10/1/2005    
  506464    
***
  10/1/2005   1/1/2007
  506578    
***
  10/16/2005    
  507063    
***
  10/16/2005    
  507115    
***
  10/16/2005    
  507408    
***
  10/1/2005    
  507509    
***
  5/1/2005   1/1/2006
  507823    
***
  11/1/2005    
  508107    
***
  11/1/2005    
  509757    
***
  12/1/2005    
  510325    
***
  12/1/2005   12/1/2005
  510608    
***
  12/1/2005   12/1/2005
  511462    
***
  12/1/2005    
  515539    
***
  1/1/2006    

8

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  516080    
***
  1/1/2006    
  516355    
***
  1/1/2006    
  516359    
***
  1/1/2006    
  516372    
***
  12/1/2005    
  516376    
***
  12/1/2005    
  516459    
***
  1/1/2006   8/16/2006
  516460    
***
  1/1/2006    
  516463    
***
  1/1/2006    
  516606    
***
  1/1/2006    
  516690    
***
  1/1/2006    
  516696    
***
  1/1/2006    
  516730    
***
  1/1/2006   1/20/2007
  516733    
***
  1/1/2006   1/20/2007
  516919    
***
  1/1/2006    
  517265    
***
  1/1/2006    
  517267    
***
  1/1/2006    
  517272    
***
  1/1/2006   10/1/2006
  517314    
***
  1/1/2006   6/16/2006
  517398    
***
  1/1/2006    
  517475    
***
  1/1/2006   4/19/2006
  517480    
***
  1/1/2006   1/20/2007
  517515    
***
  1/1/2006    
  517605    
***
  1/28/2006   1/28/2007
  517617    
***
  1/23/2006    
  517871    
***
  1/1/2006    
  517876    
***
  2/1/2006   12/1/2006
  518177    
***
  2/1/2006    
  518187    
***
  2/1/2006   1/25/2007
  518189    
***
  2/1/2006   1/25/2007
  518266    
***
  1/9/2006   2/26/2007
  518271    
***
  1/1/2006    
  518459    
***
  2/1/2006    
  518507    
***
  11/28/2005   11/28/2005
  518632    
***
  2/1/2006   12/1/2006
  520851    
***
  1/28/2006    
  520857    
***
  1/28/2006    
  520959    
***
  2/1/2006   8/23/2006
  521502    
***
  3/1/2006    
  521538    
***
  4/1/2006    
  521543    
***
  4/1/2006    
  522179    
***
  2/1/2006   5/9/2006
  522217    
***
  3/1/2006    
  523129    
***
  3/1/2006    
  525060    
***
  4/1/2006    
  525064    
***
  4/1/2006    
  525406    
***
  4/1/2006    

9

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  525632    
***
  4/26/2006    
  525956    
***
  4/1/2006    
  526514    
***
  3/1/2006    
  527434    
***
  4/28/2006    
  527515    
***
  4/28/2006    
  528767    
***
  1/25/2006    
  528870    
***
  4/1/2006   7/7/2006
  528883    
***
  6/1/2006    
  529102    
***
  5/17/2006   10/1/2006
  529253    
***
  4/16/2006    
  530009    
***
  5/1/2006    
  530927    
***
  6/1/2006    
  532376    
***
  6/1/2006    
  532719    
***
  7/1/2006    
  532727    
***
  7/1/2006    
  533813    
***
  7/1/2006    
  533818    
***
  7/1/2006    
  534014    
***
  7/1/2006    
  534026    
***
  5/28/2006    
  534331    
***
  7/1/2006   1/16/2007
  534336    
***
  7/1/2006   1/16/2007
  535663    
***
  7/1/2006   10/1/2006
  536206    
***
  8/1/2006   8/19/2006
  536926    
***
  8/6/2006    
  538492    
***
  8/1/2006    
  538925    
***
  8/7/2006    
  539879    
***
  9/1/2006    
  540257    
***
  7/24/2006   7/24/2006
  542302    
***
  8/28/2006   1/1/2007
  542608    
***
  9/1/2006    
  542986    
***
  10/1/2006   1/27/2007
  543149    
***
  7/28/2006    
  543770    
***
  9/9/2006    
  544043    
***
  9/23/2006    
  544697    
***
  10/1/2006    
  545056    
***
  9/25/2006   1/6/2007
  545333    
***
  9/11/2006   9/11/2006
  545886    
***
  11/1/2006   2/20/2007
  545891    
***
  11/1/2006    
  545901    
***
  11/1/2006    
  546303    
***
  9/25/2006    
  546591    
***
  11/1/2006    
  546881    
***
  11/1/2006    
  546885    
***
  10/14/2006    
  547606    
***
  11/1/2006    
  547607    
***
  11/1/2006    

10

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  548027    
***
  12/1/2006   3/10/2007
  548039    
***
  10/1/2006   12/21/2006
  548056    
***
  12/1/2006    
  549262    
***
  1/1/2007    
  549993    
***
  12/1/2006    
  550439    
***
  1/1/2007    
  550588    
***
  12/1/2006    
  551508    
***
  12/4/2006   12/21/2006
  552481    
***
  1/1/2007    
  552561    
***
  1/1/2007    
  552953    
***
  1/1/2007    
  553575    
***
  1/1/2007    
  556151    
***
  12/20/2006    
  556153    
***
  12/24/2006    
  556155    
***
  1/1/2007   2/14/2007
  556157    
***
  1/1/2007   2/14/2007
  556161    
***
  1/1/2007    
  556163    
***
  1/1/2007   2/14/2007
  557712    
***
  1/1/2007    
  559103    
***
  2/1/2007    
  559109    
***
  1/1/2007   1/1/2007
  559124    
***
  1/1/2007   1/2/2007
  567965    
***
  2/26/2007    
  569809    
***
  4/1/2007    
  569825    
***
  4/1/2007    
  570491    
***
  4/1/2007    
  250579    
***
  1/16/2002   5/1/2002
  250671    
***
  1/22/2002   3/4/2002
  251016    
***
  1/13/2002   3/1/2005
  256129    
***
  3/1/2002   7/1/2002
  256904    
***
  1/1/2002   6/1/2002
  256960    
***
  3/20/2002   6/1/2002
  257422    
***
  3/26/2002   6/1/2002
  257424    
***
  4/9/2002   4/9/2002
  259230    
***
  4/2/2002   11/1/2002
  259740    
***
  4/14/2002   7/9/2002
  260298    
***
  4/2/2002   8/2/2002
  260303    
***
  4/16/2002   7/16/2002
  263976    
***
  4/3/2002   6/26/2002
  265506    
***
  6/20/2002   3/24/2003
  265510    
***
  6/1/2002   11/1/2002
  265515    
***
  6/1/2002   9/21/2002
  265560    
***
  6/1/2002   10/12/2002
  268687    
***
  7/1/2002   7/1/2002
  268689    
***
  8/8/2002   11/1/2002
  268694    
***
  7/24/2002   11/24/2002

11

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  269888    
***
  8/1/2002   8/1/2002
  269896    
***
  8/1/2002   8/1/2002
  269898    
***
  8/1/2002   8/1/2002
  269899    
***
  7/18/2002   11/17/2002
  274864    
***
  10/15/2002   4/15/2003
  274873    
***
  10/16/2002   1/13/2003
  274875    
***
  10/16/2002   12/1/2002
  274880    
***
  10/16/2002   11/16/2002
  274914    
***
  10/16/2002   11/16/2002
  275044    
***
  9/12/2002   11/30/2002
  280221    
***
  12/1/2002   3/1/2003
  280224    
***
  11/1/2002   2/1/2003
  280225    
***
  1/1/2003   7/1/2003
  280327    
***
  12/4/2002   6/4/2004
  281701    
***
  1/1/2003   10/3/2003
  282549    
***
  12/10/2002   2/10/2004
  283649    
***
  11/20/2002   1/20/2004
  286556    
***
  12/27/2002   9/1/2003
  288804    
***
  1/21/2003   1/21/2005
  293814    
***
  2/1/2003   5/27/2003
  293891    
***
  2/27/2003   2/1/2003
  310933    
***
  5/1/2003   11/1/2003
  315060    
***
  6/12/2003   7/1/2003
  315099    
***
  6/12/2003   0/1/2003
  315132    
***
  6/2/2003   0/1/2003
  343286    
***
  8/21/2003   12/17/2003
  355898    
***
  9/15/2003   3/15/2005
  360528    
***
  9/1/2003   2/1/2004
  373490    
***
  11/11/2003   12/11/2004
  375159    
***
  12/3/2003   3/1/2005
  386745    
***
  2/1/2004   3/1/2005
  388711    
***
  11/26/2003   1/1/2004
  390767    
***
  2/1/2004   3/1/2005
  390903    
***
  2/6/2004   3/1/2005
  390937    
***
  1/7/2004   3/1/2005
  397824    
***
  3/3/2004   8/1/2005
  397852    
***
  3/3/2004   8/1/2005
  397859    
***
  3/3/2004   12/4/2004
  397876    
***
  3/3/2004   7/1/2005
  397881    
***
  3/3/2004   5/4/2004
  398067    
***
  3/3/2004   5/4/2005
  398089    
***
  3/15/2004   7/1/2005
  398122    
***
  3/3/2004   8/1/2005
  398159    
***
  3/3/2004   9/1/2004
  401392    
***
  3/1/2004   4/1/2004
  406144    
***
  2/19/2004   6/6/2004

12

 

                 
Policy       Effective   Termination
#   Policyholder   Date   Date
  421429    
***
  4/16/2004   7/1/2004
  421796    
***
  5/6/2004   3/1/2005
  428137    
***
  5/11/2004   6/1/2004
  442733    
***
  7/13/2004   10/4/2004
  452935    
***
  8/13/2004   3/1/2005
  454038    
***
  9/8/2004   3/1/2005
  459689    
***
  10/2/2004   3/1/2005
  462574    
***
  11/19/2004   3/1/2005
  463573    
***
  11/24/2004   1/3/2005
  464871    
***
  12/1/2004   3/1/2005
  465323    
***
  9/2/2004   7/1/2005

13

 

     Section 1.5. Policies, Rates and Factors. Exhibit D to the MP Financial Agreement is hereby amended and restated in its entirety, effective January 1, 2008 to read as follows:

14

 

Exhibit D – Policies, Rates and Factors
I.   The definition of “Policy” for purposes of Section 1(s) of the Agreement shall be as follows:
  •   Effective January 1, 2008:
  o   Policy No. 701648 (Medical ***) (“Policy”)
II.   The “Maximum Monthly Employer Benefit Obligation” shall be the following:
  •   Effective January 1, 2008:
  o   *** of the Quoted Premium for each Policy
  •   Effective January 1, 2009:
  o   *** of the Quoted Premium for each Policy
  •   Effective January 1, 2010:
  o   *** of the Quoted Premium for each Policy
III.   The “MP Premium” shall be the following:
  •   Effective January 1, 2008:
  o   *** of the Quoted Premium for each Policy
  •   Effective January 1, 2009:
  o   *** of the Quoted Premium for each Policy
  •   Effective January 1, 2010:
  o   *** of the Quoted Premium for each Policy
IV.   The “Expense Percentage” shall be the following:
  •   Effective January 1, 2008:
  o   *** for the Policies and Non-MP Policies
  •   Effective January 1, 2009:
  o   *** for the Policies and Non-MP Policies

15

 

  •   Effective January 1, 2010:
  o   *** for the Policies and Non-MP Policies
V.   If the Pooling Option is elected by the Employer, the Pooling Charge shall be based on Employees covered under a Policy or Non-MP Policy (“Covered Employees”) and shall be as follows:
  •   With respect to the 2005 Arrangement Year,
  o   *** per Covered Employee per Arrangement Month.
      For example, assuming that the number of covered Employees for each month of 2005 remains constant at 46,871, the annual Pool Charge for the 2005 Arrangement Year would be the product of (i) 46,871 multiplied by *** and (ii) 12 months, which would equal approximately ***.
  •   with respect to the 2006 Arrangement year,
  o   an amount determined by the Company, but in no event greater than *** per Covered Employee per Arrangement Month.
  •   with respect to the 2007 Arrangement year,
  o   an amount determined by the Company, but in no event greater than *** per Covered Employee per Arrangement Month.
VI.   The percentages contained in this Exhibit D assume an estimated premium tax expense and assessments of *** . The parties agree to review and revise the percentages described in Exhibit D to maintain profit/risk and administrative charges described in the Letter of Agreement dated April 21, 2007 if the actual incurred premium tax expense and assessments total more or less than *** .

16

 

ARTICLE II
COOPERATION
     Section 2.1 Cooperation. The Parties agree to execute such further documents and to take such further actions as may be necessary to implement and carry out the terms and conditions of this Amendment.
ARTICLE III
EFFECTIVE DATE OF AMENDMENT
     Section 3.1 Effective Date. This Amendment shall be effective as of January 1, 2008, unless otherwise stated herein.
[The balance of this page intentionally is left blank. The signature page follows.]

17

 

     IN WITNESS WHEREOF, the parties have caused this Amendment to the MP Financial Agreement to be executed as of the date set forth in the preamble.
             
ADMINISTAFF OF TEXAS, IN   UNITED HEALTHCARE INSURANCE COMPANY
 
            
By:
  /s/ Richard G. Rawson   By:   /s/ Kenneth A. Burdick
 
           
    Authorized Signature   Authorized Signature
 
            
Name:
  Richard G. Rawson   Name:   Kenneth A. Burdick
Title:
  President   Title:   Vice President
Date:
  July 2, 2007   Date:   July 2, 2007

18