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IV. <br />V. <br />D. Funding Frequency: Daily <br />E. Method of Funding: ACH <br />Administrative Fees: <br />A. Administrative fees during the first and second year of the <br />Agreement: <br />$22.00 per contract per month <br />B. Administrative fees after the termination of the Agreement: 5.92% of <br />claims paid. <br />Late Payment Penalty <br />A. A daily charge of .00038 times the amount of overdue <br />administrative fees. <br />VI. Expected Enrollment <br />A. The administrative fees and reserve requirement referenced above <br />are based on an expected enrollment of: Single - 416; Family - <br />881. <br />B. If the actual enrollment is materially different from this expected <br />enrollment, the Administrator reserves the right to adjust the <br />administrative fees and the reserve requirement as set forth in the <br />Agreement. Actual administrative fees will be charged based on <br />actual enrollment. <br />960904.1b 2 <br />