HomeMy WebLinkAboutResolution - 2006-R0109 - Contract - Maxorplus Ltd - Pharmacy Benefits Management - 03/08/2006Resolution No. 2006-RO109
Marey 8, 2006
Item No. 5.10
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock, a Contract for pharmacy
benefits management and provision of prescription drugs for all participants of the City of
Lubbock Health Benefits Plan between MaxorPlus, Ltd. and the City of Lubbock, and
related documents. Said Contract is attached hereto and incorporated in this resolution as
if fully set forth herein and shall be included in the minutes of the City Council.
Passed by the City Council this 8th day of March , 2006.
A�l
MACCDOUGAL, MAYOR
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTE
VkA
Scott Snider, birector of Human Resources
APPROVED AS TO FORM:
M. Knight, Assist ity orney
gs/res.MaxorPlos
March 1, 2006
MAXORPLUS, LTD.
PHARMACY SERVICE AGREEMENT
This Pharmacy Service Agreement (the "Agreement"), dated as of April 1, 2006 (the
"Effective Date"), is between MaxorPlus, Ltd., ("MAXORPLUS") and City of Lubbock
("CLIENT").
WHEREAS, MAXORPLUS is engaged in the business of providing to various
customers pharmacy benefit management services, including prescription drug benefit
design, participating pharmacy contracting and network management, eligibility management,
claims processing, reporting, and clinical pharmacy services.
WHEREAS, CLIENT offers prescription drug benefits to eligible employees,
dependents and retirees; and
WHEREAS, CLIENT intends to engage MAXORPLUS to perform the pharmacy benefit
management services required by CLIENT to fulfill its obligations to the eligible persons with
whom it has contracted; and
WHEREAS, CLIENT desires disclosure of all charges and discounts associated with its
prescription drug benefit program; and
WHEREAS, CLIENT requires the lowest available purchase price and pass through
pricing from its pharmacy benefit manager on all of its drugs purchased through a retail
pharmacy network or through a mail order pharmacy; and
WHEREAS, MAXORPLUS is qualified to perform such services and is willing to do so
through a COMPLETE DISCLOSURE PROGRAM upon and subject to the terms and
conditions of this Agreement;
WHEREAS, MAXORPLUS pledges to provide the Pharmacy Benefit Management
Services under this contract in accordance with the Code of Ethics set forth in Exhibit E;
NOW, THEREFORE, in consideration of the mutual promises and agreements herein
contained, CLIENT and MAXORPLUS hereby agree as follows:
A. Definitions
AWP — "AWP" means the price defined and distributed by First Data Bank for each
drug in the database. This price shall be based on the 11 digit NDC number submitted forthe
dispensed medication. AWP prices will be updated in the claims processing system at least
on a weekly basis to reflect the most current AWP pricing.
Co -Payment — "Co -Payment" means the amount of money that, according to the terms
of the Plan, the Eligible Member is required to pay towards the receipt of a Covered
Prescription Medication provided by a Participating Pharmacy.
MaxorPlus Initials: AV -
CLIENT Initials:
Covered Prescriptions — "Covered Prescriptions" means any prescription medication
or device that meets the requirements for coverage set forth in the Prescription Drug Rider,
after applying all conditions and exclusions set forth therein, and that is dispensed by a
Participating Pharmacy to an Eligible Member.
Eligible Member— "Eligible Member" means an individual who is enrolled in the Plan
and who is entitled to Covered Prescription Medications under the Prescription Drug Rider for
the Plan. Information relating to the eligibility of members is established and maintained by
CLIENT.
Formulary— "Formulary" means the document prepared by MAXORPLUS or CLIENT
and provided to Participating Pharmacies, physicians, and other health care providers forthe
purpose of guiding the prescribing, dispensing and purchase of pharmaceutical products.
Law — "Law" means any federal, state or local constitution, act, statute, code, rule,
regulation, standard; any objective criteria contained in any applicable permit or approval; any
legislative or administrative action of the United States of America or of any state or agency,
department, authority, political subdivision or other instrumentality thereof; and any decree,
judgment or order of a court.
Manufacturers — "Manufacturers" shall mean a pharmaceutical company which has
entered into an agreement with MAXORPLUS or an affiliate or agent of MAXORPLUS to offer
rebates for pharmaceutical products in connection with Formulary services.
Maximum Allowable Cost (MAC) — "MAC" means the lowest published price for a
Covered Prescription, as set forth on the applicable GMS MAC list, Texas state list or the
MaxorPlus MAC list. The MAC will be determined without regard to the manufacturer of the
Covered Prescription actually dispensed by a Participating Pharmacy.
Net Acquisition Cost — "Net Acquisition Cost" means MaxorPlus' unit price for
pharmaceutical products as invoiced by the wholesaler or manufacturer to MaxorPlus Mail
Order Pharmacy.
Participating Pharmacy [or Participating Pharmacies] — "Participating Pharmacy" or
"Participating Pharmacies" means those pharmacies with whom MAXORPLUS has contracted
to provide various services in connection with the sale by those pharmacies of Covered
Prescriptions to Eligible Members, as listed in the MAXORPLUS Pharmacy Directory.
Patient Profile — "Patient Profile" means a specific history of drugs dispensed by a
Participating Pharmacy to an Eligible Member. The history shall include information on drugs
dispensed, allergies, and the Eligible Member's general health condition, if available.
Pharmacy Benefit Management Services — "Pharmacy Benefit Management
Services" means those services described in paragraph B of this Agreement that
MAXORPLUS provides to CLIENT.
MaxorPlus Initials:
CLIENT Initials:
Physicians — "Physicians" means licensed physicians and other providers who have
contracted to provide services to Eligible Members and who are authorized by the Plan to
write prescriptions for Eligible Members.
Plan — "Plan" means the agreement or other arrangement between an Eligible Member
and CLIENT that entitles the Eligible Member to receive reimbursement for, or payment of,
medical expenses, including, without limitation, Covered Prescriptions.
Point -of -Sale (POS) — "POS" means the method of submitting claims for adjudication
by the on-line claim adjudication process of MAXORPLUS which includes interactive
communications between a terminal located at a Participating Pharmacy and MAXORPLUS.
POS Approval — "POS Approval" means approval by MAXORPLUS via Point -of -Sale
(POS) claim submission of a claim for reimbursement of, or payment for, a Covered
Prescription by a Participating Pharmacy.
Prescription — "Prescription" means a lawful written, electronic or verbal order of a
health care practitioner licensed for a particular medication.
Prescription Drug Rider — "Prescription Drug Rider" means the prescription drug
benefit coverage, limitations and exclusions set forth in the Plan, as amended from time to
time by the CLIENT.
Proprietary or Confidential Information — "Proprietary or Confidential Information"
means any information, however recorded, related to performance, sales, financial,
contractual, and marketing information; software; technical data; the Formulary; and concepts
and processes, which have not (i) previously been published or otherwise disclosed to the
general public; (ii) previously been made available to the receiving party or others without
restrictions; or (iii) normally been furnished to others without compensation, and which the
disclosing party desires to protect against unrestricted disclosure or competitive use.
Rebates — "Rebates" shall mean for any period, rebates, reimbursements or other
discounts received under a manufacturer's rebate program with respect to pharmaceutical
products dispensed to an Eligible Member under the Plan during such period.
Usual and Customary Pricing — "Usual and Customary Pricing" means the lowest
price a Participating Pharmacy would charge to a patron, who is not an Eligible Member, if
that patron were to pay cash for a Covered Prescription. Such price shall reflect any incentive
or other discounts offered to the patron by Pharmacy.
B. MAXORPLUS Services. MAXORPLUS shall provide the following products and
services to CLIENT in accordance with the Plan:
MaxorPlus Initials:
CLIENT Initials:
1. Pharmacy Benefit Management Services
(a) Network of Participating Pharmacies. MAXORPLUS will enter into
contracts with Participating Pharmacies pursuant to which those Participating Pharmacies will
agree to dispense Covered Prescriptions to Eligible Members and MAXORPLUS will agree to
pay or reimburse the Participating Pharmacies for Covered Prescriptions dispensed by them
to Eligible Members. MaxorPlus agrees to invoice CLIENT on the same discounted AWP
price or MAC price that MaxorPlus pays the network pharmacy.
(b) _Claims Processing and Adjudication. MAXORPLUS will accept,
process and adjudicate requests for authorization to dispense Covered Prescriptions
submitted by Participating Pharmacies through the MAXORPLUS POS system.
(c) Customer Service. MAXORPLUS will maintain and operate toll-free
customer service lines for the benefit of Participating Pharmacies and Eligible Members from
7:00 a.m, to 9:00 p.m. Central Standard or Daylight Time, Monday through Friday, and 8:00
a.m. to 6:00 p.m. Central Standard or Daylight Time, Saturday and 9:00 a.m. to 5:00 p.m.
Central Standard or Daylight time, Sunday (excluding holidays).
(d) Formulary Management. MAXORPLUS will assist Client in developing
a Formulary for the Plan. CLIENT hereby authorizes MAXORPLUS to manage the Formulary
for prescription drug benefits covered under the Plan for retail and mail order Covered
Prescriptions dispensed in accordance with this Agreement. The cost of postage, printing,
and distribution ofthe Formularyand any subsequent update thereto or reports hereunderwill
be borne by the CLIENT as set forth in Exhibit "A" under Administrative Services and Fees.
CLIENT agrees that MAXORPLUS may certify to MAXORPLUS' contracting pharmaceutical
manufacturers that CLIENT is participating in such Formulary Program forthe CLIENTS' retail
and mail order Covered Prescriptions as provided herein. CLIENT acknowledges that
MAXORPLUS maintains a Formulary that allows, subject to the determination of an
independent pharmacy and therapeutics committee, the inclusion of any covered prescription
drug product approved by the FDA for use in the United States. CLIENT'S formulary will be
identified in Exhibit C and made available to CLIENT.
(e) Rebate Contracts. MAXORPLUS will attempt to contract with certain
manufacturers for rebate programs. CLIENT acknowledges that whether and to what extent
manufacturers are willing to provide rebates to CLIENT will depend upon the Plan design
adopted by CLIENT, and the Formulary used.
The CLIENT recognizes that MAXORPLUS' Clinical, PharmacoEconomic, and Rebate
Departments have negotiated contracts with manufacturers which will result in rebates being
paid by manufacturers. MAXORPLUS will pass through to CLIENT all rebates received on
the pharmaceutical products dispensed to members once each calendar quarter as follows:
within ninety (90) days of the beginning of each quarter, MAXORPLUS will pay CLIENT such
rebates received.
MAXORPLUS shall not be required to institute litigation to collect rebates from
manufacturers. If MAXORPLUS does elect to bring suit to recover rebates from
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MaxorPlus Initials
CLIENT Initials:
manufacturers, MAXORPLUS shall be entitled to deduct all reasonable attorney's fees and
other expenses incurred in such litigation prior to payment of the rebates to CLIENT.
Neither party shall be responsible to the other party, its affiliates, directors, employees,
agents, successors, and permitted assigns for any claim arising from;
(i) any failure by a manufacturer to pay any rebate;
(ii) any breach of an agreement relating to the transactions
contemplated by or otherwise relating to this Agreement by any
manufacturer; or
(iii) any negligence or misconduct of any manufacturer.
To the extent that an ERISA, the ADA, or any other law, requires any disclosure to
Eligible Members regarding Rebates or other discounts on pharmaceutical products, CLIENT
acknowledges that it has the sole responsibility for such disclosures to its Eligible Members.
(f) Drug Utilization Reviews and Interaction Monitoring. MAXORPLUS
will provide to Participating Pharmacies through the POS system computerized drug
interaction monitoring of Eligible Members based upon the available Patient Profile and,
subject to prescriber approval and applicable Law, will provide Drug Utilization and
pharmaceutical cost containment ("DUR") services, including generic and therapeutic
substitutions.
(g) Limitations on Drug Utilization Review Services. The information
generated in connection with DUR services is intended as an economical supplement to, and
not a substitute for, the knowledge, expertise, skill and judgment of physicians, pharmacists,
or other healthcare providers and patient care. Providers are individually responsible for
acting or not acting upon information generated and transmitted through the DUR services,
and for performing services in each jurisdiction consistent with the scope of their licenses. In
performing DUR services, MAXORPLUS shall not, and is not required by this Agreement to
deny claims or require physicians, pharmacists, or patient compliance with any norm or
suggested drug regimen, or in any way substitute MAXORPLUS' judgment for the
professional judgment or responsibility of the physician or pharmacist.
MAXORPLUS' DUR services are highly automated. Any focus professional review
would also be based upon automated analysis of eligible members' profiles. Therefore, the
DUR services are necessarily limited bythe amount and type of patient information available
to MAXORPLUS. Meaningful patient information which may not be available to MAXORPLUS
includes, but is not limited to, patient diagnosis, utilization of drugs obtained without utilizing
the MAXORPLUS POS System or otherwise not included in the patient's profile or claim data.
MAXORPLUS shall have no obligation to acquire information concerning any .patient beyond
the information which is included in the CLIENT'S eligibility records or the claim data
submitted by the participating pharmacies in connection with the Plan. MAXORPLUS shall
update its DUR databases on a reasonable basis to reflect changes in available standards for
pharmaceutical prescribing; provided, however, no data base will be required to contain all
currently available information on accepted medical practices or prescribing practices.
s
MaxorPlus Initials:
CLIENT Initials:
(h) Maintenance of Records/Audit/Member Review. MAXORPLUS will
maintain such business records as may be required by Law or as may be necessary to
properly document the delivery of, and payment for, Covered Prescriptions ("Claims
Information") and the provision of services by MAXORPLUS under this Agreement. Such
records may be reviewed by CLIENT or its representatives upon 48 hours prior request and at
CLIENT'S expense; provided, however, that no such review shall relate to records for
Covered Prescriptions dispensed more than two (2) years prior to the date such review is
requested. Should MaxorPlus' supply contract prohibit disclosure of such contract, MaxorPlus
will provide satisfactory documentation to verify pricing, discounts and rebates. If an Eligible
Member or a Member's agent or designee shall request to review or duplicate any records of
that Member's claims' information, MAXORPLUS shall refer such member to CLIENT, which
may request any such records under this paragraph. Compliance with random or specific data
sampling requests shall require thirty (30) days prior written notice. In the case of review by
representatives of CLIENT, such representatives shall agree in writing to abide by the
confidentiality and indemnity provisions of this Agreement. Except as required by Law,
MAXORPLUS shall not make any of its records available to others for any purpose otherthan
the provision of products and services under this Agreement; provided, however such data
may be combined and used by MAXORPLUS in preparing statistical reports or for other
business purposes that may be made available to others, in which event information
pertaining to CLIENT or Eligible Members shall not be identifiable. If MAXORPLUS receives
a court order, subpoena, or governmental request for such records; MAXORPLUS may
comply with such order, subpoena, or request and, if such order, subpoena, or request relates
to the records of the CLIENT or any Eligible Member and not to MAXORPLUS' businesses
generally, CLIENT shall reimburse MAXORPLUS for all costs incurred in connection
therewith.
(i) MaxorPlus will not use repackaged or relabeled NDC numbers for mail
order pricing unless the unit AWP is less than the un -repackaged price which MaxorPlus
would have paid.
2. Mail Order Service Pharmac .
MAXOR MAIL SERVICE PHARMACY will provide to client members the following
services:
(a) Fill Prescriptions by mail during normal business hours, subject to the
professional judgment of the dispensing Pharmacist; and
(b) Based upon the Prescriptions actually written and applicable Law,
maintain an inventory equal to a ninety (90) day supply for each Prescription.
CLIENT acknowledges that Maxor Mail Service Pharmacy has negotiated on behalf of
MAXORPLUS contracts with prime vendors which result in substantial discounts but which
contracts require Maxor Mail Service to prepay such vendors, and that MAXORPLUS passes
on such prepayment discounts to CLIENT.
3. Chronic In`ectable/S ecialt Pharmac .
MaxorPlus Initials:
CLIENT Initials:
Maxor Specialty will be the exclusive provider of chronic injectables, biological medications
and specialty oral medications and will provide to client members the following services:
(a) Fill prescriptions by mail, common carrier or overnight as dictated by
stability requirements of medications, during normal business hours
(b) Coordination of nursing services as required
(c) 24 hour pharmacy education and consultation
(d) Home or office delivery
(e) Patient monitoring and follow-up for compliance and outcomes
(f) Other infusion services
(g) Coordination of benefits
(h) Contact insurance company to verify coverage under medical benefit
(i) Toll-free customer service phone number
4. Additional Services. If (i) CLIENT requests MAXORPLUS to provide services
other than the pharmacy benefit management services and mail order pharmacy services
specified above, including special research projects, reports, additional identification cards or
other tasks to be specifically performed for or on behalf of CLIENT, or (ii) to initially implement
the Plan or to implement changes to the Plan MAXORPLUS is required to make system
changes; then, in either event, CLIENT shall pay to MAXORPLUS an additional charge as set
forth in Exhibit "A," or if not specifically set forth in Exhibit "A," as mutually agreed upon by the
parties in writing before such services ("Additional Services") are provided.
5. Member Reimbursement. If an Eligible Member submits a request for
reimbursement for a Covered Prescription to MaxorPlus within 90 days of service date,
MaxorPlus will reimburse such Eligible Memberatthe contracted participating pharmacy rate.
C. Joint Obligations.
1. Implementation. CLIENT and MAXORPLUS shall cooperate to achieve
implementation of this Agreement in accordance with a timetable agreed to by CLIENT and
MAXORPLUS. The plan for implementation of this Agreement shall be approved by CLIENT
not later than sixty (60) days prior to the date when MAXORPLUS first provides services to
Participating Pharmacies under this Agreement.
2. Communications. MAXORPLUS shall provide to CLIENT the following
materials in implementation kits for distribution to Eligible Members: (i) introductory cover
letter and (ii) mail order service information packet. Individual envelopes shall be addressed
MaxorPlus Initials:
CLIENT Initials:
by MAXORPLUS with Eligible Members names and addresses, provided CLIENT has
provided MAXORPLUS such information in MAXORPLUS' standard format. Postage shall be
at CLIENT'S expense in the case of distribution of implementation kits directly to Eligible
Members. MAXORPLUS shall bulk ship implementation kits directly to the CLIENT at no
charge. Distributions or reprints after the initial mailing of implementation kits or customized
materials shall be at CLIENT'S expense. Custom materials require three (3) weeks to
produce following CLIENT approval.
3. Eligibility Data. CLIENT shall furnish MAXORPLUS Eligible Member eligibility
data in an agreed-upon medium and in the format requested by MAXORPLUS. Such eligibility
data updates shall identify only changes, additions or terminations of Eligible Members.
CLIENT agrees that MAXORPLUS may actin reliance upon the accuracy of all data received
from CLIENT under this paragraph C.3. CLIENT shall be responsible for notifying
MAXORPLUS of the termination of an Eligible Member from coverage under the Plan.
CLIENT shall be responsible for all claims incurred by MAXORPLUS with respect to an
Eligible Member until CLIENT has provided MAXORPLUS with an updated list of Eligible
Members. CLIENT shall provide the initial list of Eligible Members at leastforty-five (45) days
prior to implementation of services for CLIENT and a final list at least seven (7) days prior to
initiation of services for CLIENT. If CLIENT submits eligibility data in a format other than that
requested by MAXORPLUS, CLIENT shall incur a fee at MAXORPLUS'then prevailing rate to
transform that data into MAXORPLUS' standard format. Thereafter, CLIENT shall furnish
MAXORPLUS with eligibility, adds, changes and deletes updates on a weekly basis, with full
eligibility loads as requested by MAXORPLUS.
4. Plan Changes. CLIENT shall notify MAXORPLUS in writing at least sixty (60)
days in advance of any changes in the Plan that results in a change of any of the Pharmacy
Benefit Services to be provided by MAXORPLUS under the terms of this Agreement. If such
changes have a material impact on MAXORPLUS' obligations under this Agreement,
MAXORPLUS may terminate this Agreement in accordance with paragraph F (2) (b) hereof or
modify its charges to reflect such change in accordance with Exhibit "A".
5. Confidentiality.
(a) MAXORPLUS and CLIENT shall ensure compliance with federal
regulations under the Health Insurance Portability and Accounting Act (HIPAA) regarding
privacy of all protected health information (PHI) and shall take steps and do all things
reasonably necessary to ensure that the terms of this Agreement, all information relating to
Eligible Members, and all Proprietary or Confidential Information obtained during the term of
this Agreement disclosed or made use of outside the business of such other party for the
purposes of meeting their obligations under this Agreement remains confidential; provided,
however, that the foregoing shall not apply to information: (i) provided to voluntary
accreditation agencies, government agencies or third party payors as required by Law or
consented to bythe affected party; (ii) reasonably required by health care providers providing
health care services to Eligible Members; (iii) that either party can show was known to it prior
to disclosure by the other party; or (iv) that is or becomes public knowledge through no fault of
the party to whom the disclosure is made.
MaxorPlus Initials:
CLIENT Initials:
(b) CLIENT acknowledges that the MAXORPLUS Formulary contains
proprietary information of MAXORPLUS and agrees that MAXORPLUS owns all rights to the
Formulary, including but not limited to, rights associated with publication, trade secrets,
copyrights, trademarks, and patents, and any rights that CLIENT may have in the Formulary
are hereby assigned to MAXORPLUS. Accordingly, copies in any medium distributed to
CLIENT and its participating physicians remain the property of MAXORPLUS and may be
used only by CLIENT and such participating physicians for the purposes and transactions
contemplated by this Agreement. Other than as expressly authorized in this Agreement, no
copies of the Formulary shall be distributed or disclosed except as reasonably necessary for
performance of this Agreement, and in particular, no copy shall be distributed or disclosed to
any competitor of MAXORPLUS.
(c) CLIENT acknowledges that any unauthorized disclosure or use of
MAXORPLUS information will cause MAXORPLUS immediate and irreparable injury or loss.
Accordingly, should CLIENT fail to comply with this Section, MAXORPLUS shall be entitled to
specific performance including immediate issuance of a temporary restraining order and/or
preliminary injunction enforcing this Agreement, and to judgment for damages (including
attorney's fees) caused by the breach, and to any other remedies provided by applicable law.
6. indemnification.
(a) MAXORPLUS shall defend, indemnify and hold harmless CLIENT and
each of its officers, directors, employees, agents and stockholders, from and against any and
all claims, liabilities, damages or expenses of any kind (including reasonable attorneys' fees
and disbursements) (collectively, "Indemnified Amounts") incurred by any of those parties as
a result of MAXORPLUS` negligence or breach of its obligations under this Agreement.
(b) If a party seeks indemnification under this Agreement, that party shall
notify the other in writing within a reasonable time 30 days of the assertion of any claim, orthe
commencement of any action or proceeding, for which indemnity may be sought under this
Agreement. Failure to notify the other party shall result in the waiver of indemnity rights with
respect to such claim, suit, action or proceeding. The parties shall cooperate with each other
in the defense and settlement of any such claim, action or proceeding.
D. Obligations of Client
9. Payment. CLIENT shall pay MAXORPLUS for the Pharmacy Benefit Services
provided by MAXORPLUS under the terms of this Agreement in accordance with the
schedules set forth in Exhibit "A". CLIENT shall also pay to MAXORPLUS all amounts to be
disbursed on its behalf to Participating Pharmacies by MAXORPLUS. In no event shall
MAXORPLUS have any obligation to forward any claims payments to participating
pharmacies unless and until CLIENT has submitted payment to MAXORPLUS when required.
CLIENT shall remain responsible for payment of all claims.
2. Security. MAXORPLUS agrees that based upon CLIENT'S present financial
condition, MAXORPLUS shall not require security; provided, however, if at anytime and from
time to time during the term of this Agreement MAXORPLUS shall determine, based on
)
MaxorPlus Initials:/
CLIENT Initiais:
Claims volume, payment record and/or CLIENT'S latest financial information, that there are
reasonable grounds for insecurity on the part of MAXORPLUS as to the ability of CLIENT to
meet its financial commitments hereunder as they become due, MAXORPLUS shall have the
right to require CLIENT to provide a letter of credit from the CLIENT'S bank or security
deposit in such amount and form and at such time as MAXORPLUS deems necessary, not to
exceed two cycles of claims activity. CLIENT shall provide such security within ten (10) days
of MAXORPLUS' request. CLIENT agrees to furnish audited financial statements to
MAXORPLUS from time to time upon MAXORPLUS' request. Such financial statements shall
be kept confidential by MAXORPLUS and used solely for internal review purposes to
determine credit requirements.
3. Pricing Changes. After the initial term of this Agreement, MAXORPLUS and
CLIENT may renegotiate the Administrative Fees or Finance Charges applicable to a Plan by
MAXORPLUS giving CLIENT ninety (90) days' prior written notice of expiration and request to
renegotiate.
4. Control of Plan. CLIENT shall have sole authority to control and administer the
Plan. Nothing in this Agreement shall be deemed to confer upon MAXORPLUS the (a) status
of fiduciary as defined in either the Employee Retirement Income Security Act of 1974, as
amended, or the Americans with Disabilities Act ("ADA") or (b) any responsibility for the terms
or validity of the Plan. CLIENT represents that it has all necessary authorizations from
Eligible Members to receive, review and audit Patient -Specific Data. To the extent permitted
by law, CLIENT agrees to defend, indemnify, and hold harmless MAXORPLUS and each of
its officers, directors, employees, agents, and stockholders from and against any and all
claims, liabilities, damages, or expenses of any kind (including reasonable attorney's fees and
disbursements) which MAXORPLUS may incur as a result of any claim by an employee or
former employee of CLIENT or any of its affiliates under law that protects the rights of such
employees and their beneficiaries, including, without limitation, the Employee Retirement
Income Security Act ("ERISA") and the Americans With Disabilities Act ("ADA").
5. Disclosure Obligations. CLIENT acknowledges and agrees that it is
responsible for disclosing to Eligible Members any and all matters relating to the Plan as are
required by law to be disclosed, including any matter relating to the calculation of co-
payments, co-insurance amounts, deductibles or any other amounts that are payable by an
Eligible Member in connection with the Plan. CLIENT further agrees to inform Eligible
Members that claims submitted after 90 days from origination will not be covered by
MaxorPlus.
6. Compliance with Law. CLIENT agrees to comply with all Laws applicable to its
prescription drug benefit plan. CLIENT acknowledges that MAXORPLUS shall have no
responsibility to advise CLIENT regarding CLIENT's compliance with any applicable law,
including, without limitation, ERISA, the ADA, and tax laws. MAXORPLUS makes no
representation or warranty that the Plan design selected by CLIENT shall be in compliance
with applicable law. Upon CLIENT'S request and at its expense, MAXORPLUS shall
cooperate and take reasonable steps to comply with any laws applicable to the creation and
maintenance of a pharmacy network, including any willing provider laws. CLIENT shall
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MaxorPlus Initials:
CLIENT Initials:
furnish MAXORPLUS, in a timely manner, all information necessary for such cooperation and
compliance efforts.
7. Confirmation Reports. From time to time, MAXORPLUS may provide CLIENT
with reports confirming (i) all or some portion of the Plan information submitted to
MAXORPLUS, (ii) member enrollment or eligibility data, (iii) claims or billing activity during a
specific period, and/or (iv) any action or actions taken by MAXORPLUS in performing
administrative services or additional services hereunder. CLIENT shall review such report
and notify MAXORPLUS in writing of any errors or objections within thirty (30) days of receipt
of the report. Until CLIENT notifies MAXORPLUS of any errors or objections, MAXORPLUS
shall be entitled to rely on the information contained in the report. If CLIENT does not notify
MAXORPLUS of any errors or objections within such thirty (30) day period, the information
contained in the report shall be deemed accurate, complete and acceptable to CLIENT.
8. Other Rebate Arrangements. With respect to Eligible Members covered by
this Agreement, CLI ENT will not participate in any other formulary or similar discount program
(including any such program which may be available through a mail order pharmacy
designated by CLIENT) not managed by MAXORPLUS during the term of the Agreement and
shall not independently create any formulary during the term of the Agreement. Also, with
respect to such Eligible Members, CLIENT agrees not to enter into any direct or indirect
contracts with pharmaceutical manufacturers for discounts during the term of the Agreement
or any extension thereof. Nothing in this section shall prohibit CLIENT from entering into
arrangements with other pharmaceutical management companies offering formulary services
after the term of the Agreement.
E. Dillina and Fundinq; Remedies.
1. Payment Due Date and Service Fee. MAXORPLUS shall invoice CLIENT at
the time specified on Exhibit B to this Agreement. All payments by CLIENT shall be made
within fifteen (15) days after invoice date. Late payments shall bear a service fee of one and
one-half percent (1.5%) for each thirty (30) days that payment is late, beginning on the
sixteenth (16th) day after invoice date; provided however, that if the service fee charged
would exceed the maximum legal rate for interest permitted by law, the service fee shall be
reduced to the maximum amount of periodic interest permitted by law.
2. Certain Remedies. If at any time CLIENT shall fail to pay MAXORPLUS by the
due date the amount owing to MAXORPLUS hereunder, MAXORPLUS shall have the right,
upon two (2) business days written notice to CLIENT, to (i) suspend performance of any and
all of MAXORPLUS' obligations under or in connection with this Agreement, (including
MAXORPLUS' obligation to process claims using the POS System), (ii) immediately advise
CLIENT that MAXORPLUS' POS system is not available in connection with the Plan, (iii)
apply all or any portion of any security posted by CLIENT with MAXORPLUS to CLIENT'S
delinquent account, and (iv) set off against any amounts otherwise payable to CLIENT under
this Agreement (including, if any, rebates MAXORPLUS receives from a manufacturer on
behalf of the CLIENT) any amounts due from CLIENT under this Agreement. CLIENT shall
be responsible for all costs of collection and agrees to reimburse MAXORPLUS for such costs
and expenses, including reasonable attorney's fees. Nothing in this Agreement shall limit,
it
MaxorPlus Initials:
CLIENT Initials:
and the parties agree that in addition to the rights specified in this Section MAXORPLUS shall
retain, any and all rights MAXORPLUS may have at law, equity or under this Agreement.
F. Term and Termination
1. Term. This Agreement shall become effective on April 1, 2006 (the "Effective
Date") and thereafter shall continue to be in effect for three (3) year(s). The term shall be
automatically renewed for additional one (1) year periods, unless terminated in accordance
with paragraph F (2) hereof, or as otherwise provided in this Agreement.
2. Termination.
(a) Either party may terminate this Agreement upon thirty (30) days prior
written notice to the other party in the event of a material breach by such other party and the
failure of such other party to cure such breach within the thirty (30) day period following such
notice.
(b) Either party may terminate this Agreement as of the end of the primary
term of this Agreement, or any renewal period thereafter, by providing written notice to the
other party of their intent to terminate the Agreement not more than one hundred twenty (120)
days but not less than ninety (90) days from the end of the primary term or renewal period.
(c) MAXORPLUS may terminate this Agreement upon thirty (30) days prior
written notice to CLIENT if CLIENT changes, modifies or amends the Plan in a mannerthat,
in the sole discretion of MAXORPLUS, materially or adversely affects MAXORPLUS or
significantly increases the responsibilities of MAXORPLUS under this Agreement.
(d) Either party may terminate this Agreement at anytime upon written notice
to the other party in the event of any of the following: (i) the commencement of any
proceedings, whether under court supervision or otherwise, for the liquidation of the other
party; (ii) the insolvency of the other; (iii) the appointment of a receiver or similar officer for the
other; or (iv) the filing of a petition in bankruptcy by or against the other under any state or
federal bankruptcy statute or debtors law for its relief or reorganization or for the composition,
extension, arrangement, or readjustment of its obligations.
3. Obligations Upon Termination. Termination of this Agreement shall have no
effect upon the rights and obligations of the parties arising out of any transactions occurring
prior to the effective date of such termination. In the event of termination of this Agreement
for any reason, MAXORPLUS shall continue to process mail order prescriptions not requiring
clarification that are received prior to the termination date. CLIENT shall remain liable to
MAXORPLUS for all fees incurred prior to such termination and for all expenses incurred by
MAXORPLUS in forwarding to CLIENT Prescriptions received thereafter. Duties of
confidentiality under the Agreement shall survive its termination and shall continue for six (6)
years following termination (unless such materials have been previously returned or
destroyed), at which time all remaining confidential information retained by one party of the
other shall be returned or destroyed.
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G. Miscellaneous
1. Assignment. Neither party may assign this Agreement without the prior written
consent of the other party, provided, however, that MAXORPLUS may assign this Agreement
to any of its affiliates at any time or as part of a sale of all or substantially all of its assets.
This Agreement is a service contract specific to the CLIENT, and MAXORPLUS cannot be
required without its consent by assignment to perform its services for any entity other than the
CLIENT.
2. Compliance with Law. Each party shall comply with the provisions of all
applicable Laws and regulations in connection with the subject matter of this Agreement.
Neither party shall make payments or perform any services under this Agreement that would
be prohibited by Law. No part of this Agreement shall be construed to induce or encourage
the referral of patients, and no payment made pursuant to this Agreement or any other
agreement between MAXORPLUS and CLIENT shall be construed as an inducement forthe
purchase, lease, order or arrangement for the furnishing of health care products or services.
3. Exclusivity. CLIENT shall make MAXORPLUS the exclusive provider to its
Eligible Members of the Pharmacy Benefit Management Services during the term of this
Agreement.
4. Force Maieure. Except for payment obligations, neither party shall be liable for
failure or delay of performance arising from an act of God or other events beyond control of
such party; including the acts of a regulatory agency, fires, floods, explosions, strikes, labor
stoppages, war and rebellion.
5. Limitation of Liability. Except as otherwise expressly set forth in this
Agreement, MAXORPLUS makes no representations or warranties, express or implied,
including but not limited to any warranty of merchantability or fitness for a particular purpose.
In no event shall MAXORPLUS be liable for any incidental or consequential damages.
6. Amendment of Agreement. This Agreement may not be modified except in
writing signed by both parties.
7. Governing Law/Change in Law. This Agreement and its interpretation shall be
governed by the laws of the State of Texas with venue in PotterLubbock County, Texas. If
there occurs any change in law which materially alters the rights or obligations of either party
under this Agreement, the parties shall equitably adjust the terms of this Agreement to take
into account such change in law. If the parties are unable to agree upon an equitable
adjustment within sixty (60) days after either party notifies the other of such a change in law,
this Agreement shall terminate.
8. Severability. If any provision of this Agreement is held to be invalid or
unenforceable for any reason, such invalidity or unenforceability shall not affect the remainder
of this Agreement, which shall be in full force and effect and enforceable in accordance with
its remaining terms.
13
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CLIEN]' Initials:
9. Entire Agreement: Waiver. This Agreement supersedes all prior or
contemporaneous understandings or contracts, and constitutes the entire agreement existing
between the parties regarding the subject matter of this Agreement. No waiver or discharge
of any breach of this Agreement shall be effective unless it is in writing signed by both parties.
Any waiver of any breach of any provision of this Agreement shall not be a waiver of any
subsequent breach of any provision of this Agreement.
10. Notices. Any notice given under this Agreement shall be in writing and shall be
deemed received if sent by hand delivery, facsimile transmission, receipt confirmed, overnight
courier that provides confirmation of delivery, or certified mail, return receipt requested, to the
applicable party at its address set forth beneath its signature to this Agreement, or to such
other address or to the attention of such other person as either party may designate in writing
pursuant to this Section.
11. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.
12. Agreement Dispute Resolution. Should a dispute arise concerning either
party's failure to fulfill its obligations under this Agreement, the aggrieved party will seek
resolution of the dispute by good -faith negotiations between the CEO of each party or his or
her designee. Should the negotiations fail to resolve the dispute within fifteen (15) days of
their beginning, the parties shall attempt, in good faith, to settle the dispute through
mediation. Failure to agree on a mediator will be resolved by submitting the dispute to the
local equivalent of a dispute resolution center. If the mediation fails to resolve the dispute, the
parties agree to submit the matter to binding arbitration in the venue of the responding party
under the rules of the American Arbitration Association.
13. Exhibits. The following exhibits are made a part of this Agreement.
EXHIBIT A - Client Payments
EXHIBIT B - Invoice Schedule
EXHIBIT C - Flan Description and Co -payments
EXHIBIT D - MaxorPlus Mail Service Pharmacy Clinical Pharmacy Services
EXHIBIT E — MaxorPlus Code of Ethics
EXECUTED this day of , 2000 by affixing an authorized
signature hereto and initialing each page in the spaces provided.
4
MaxorPlus Initials:
CLIENT Initials:
MAXORPLUS, LTD.
CITY OF LUBBOCK
By: By:
hn Q. Ward
Title: CEO
Title:
Date: 3/'B%6 Date: March 8, 2006
320 South Polk, Suite 200
Amarillo, Texas 79101
Fax No: (806) 324-5495
ATTEST:
Rebecca Garza, City Secret
APPROVED AS TO C TENT:
Scott Snider
Director of Human Resources
APPROVED AS TO FORM:
C
n M. Knighttorne'
Assistant City y
15
MaxorPlus Initials:
CLIENT Initials:
Fax No: 806-775-3983
.'-0 ""1
M rc c ougal, Mayor
EXHIBIT "A"
CLIENT PAYMENTS
1. Retail Prescriptions. For each Prescription dispensed by a Participating Pharmacy to
an Eligible Member, CLIENT shall reimburse MAXORPLUS an amount equal to the
MAXORPLUS Pharmacy Reimbursement Rate.
Pharmacy Reimbursement Rate — For the purpose of this Exhibit A "Pharmacy
Reimbursement Rate" means for (i) brand name drugs, AWP minus 13 to 15 percent plus
$2.50 fill fee, and (ii) generic drugs, MAC plus $2.50 fill fee. CLIENT is responsible for the
payment of any applicable sales or use taxes, and CLIENT shall reimburse MAXORPLUS for
all taxes paid on its behalf to Participating Pharmacies.
If CLIENT requests MAXORPLUS to add a pharmacy to the network that is contracted at
different reimbursement rates than set out above, CLIENT shall be invoiced at the applicable
contracted MAXORPLUS Pharmacy Reimbursement Rate.
2. Mail Order Pharmacy. For each Prescription dispensed by the MAXORPLUS Mail
Order Pharmacy to an Eligible Member, CLIENT shall pay MAXORPLUS net acquisition cost
plus $12.50 fill fee less co -payment and deductibles established by CLIENT. In the event an
Eligible Member submits to MAXORPLUS a Co -payment in an insufficient amount, and
MAXORPLUS is unable to collect the correct Co -payment amount from the Eligible Member,
then MAXORPLUS may invoice CLIENT for the amount of the uncollected Co-payment(s),
and CLIENT shall be liable for payment of such co -payment amount.
3. Chronic Injectable/Specialty Pharmacy. For each prescription dispensed by Maxor
Specialty to an eligible member, CLIENT shall pay MAXORPLUS AWP less 17% plus $2.50
less co -payment as established by CLIENT for Tier 1 Specialty Drugs; AWP less 19% plus
$2.50 less co -payment as established by CLIENT for Tier 2 Specialty Drugs; AWP less 21 oto
plus $2.50 less co -payment as established by CLIENT for Tier 3 Specialty Drugs; or AWP
less 24% plus $2.50 less co -payment as established by CLIENT for Tier 4 Specialty Drugs as
designated by MAXORPLUS. The AWP less the applicable discount plus $2.50 shall cover
shipping fees and necessary overnight delivery due to stability of medications. In the event
an Eligible Member submits to MAXORPLUS a Co -payment in an insufficient amount, and
MAXORPLUS is unable to collect the correct Co -payment amount from the Eligible Member,
then MAXORPLUS may invoice CLIENT for the amount of the uncollected Co -payments) on
a regular basis, and CLIENT shall be liable for payment of such co -payment amount.
4. Special Reimbursement for Certain Drugs. Certain drugs that become available on
the market from time to time will be priced separately from, and thus not subject to the
reduced contracted reimbursement rate, due to, among other things, specialized
manufacturer processes, limited availability or extraordinary shipping requirements. Such
drugs include compounds. MAXORPLUS shall provide CLIENT with a list of such drugs, and
their corresponding reimbursement rates (which are generally no less than full AWP), upon
request. Participating Pharmacies may dispense these drugs to Eligible Members unless the
16
MaxorPlus Initials:
CLIENT Initials:
CLIENT'S plan design would otherwise exclude these drugs or the CLIENT notifies
MAXORPLUS in writing of its objections.
CLIENT hereby agrees to the following: All payments made by CLIENT to MAXORPLUS shall
include all applicable fees, including, but not limited to ingredient cost and dispensing fee.
5. MaxorPlus Mail Order PharmacV Clinical Pharmacy Services.
a. Prescription Clinical Intervention.
CLIENT shall receive 100% of all savings realized as a result of MAXORPLUS
providing the Prescription Clinical Intervention Services described in Exhibit D.
6. Administrative Services and Fees.
Administrative Fee*
Rebate Sharing
ID Cards (additional or replacement)
Administrative Prior Authorizations (PA)
Clinical Prior Authorizations (PA)
Paper Claims Processing
Manual Eligibility Data Entry
Formulary Postage, Printing and
Distribution
$3.00 per prescription
100% to CLIENT
No Charge
No Charge
No Charge
No Charge
No Charge
No Charge
* Administrative fee is subject to an annual inflation adjustment according to the Consumer Price Index.
7. Additional Services - With the exception of the costs incurred as part of the services
described in paragraph B of this Agreement, CLIENT shall be responsible for all mutually
agreed upon costs and charges incurred by MAXORPLUS in connection with this Agreement.
Such costs shall include costs associated with responding to CLIENT requests, costs
necessitated by the acts or omissions of CLIENT and any cost incurred by MAXORPLUS in
performing services in conjunction with this Agreement which may be requested or required of
MAXORPLUS and not specifically included in the scope of services described in paragraph B.
MAXORPLUS and CLIENT agree to negotiate in good faith the cost of any services
requested by CLIENT outside the scope of services described in Paragraph B of this
Agreement.
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MaxorPlus Initials:
CLIENT Initials:
EXHIBIT "B"
INVOICE SCHEDULE
Invoices shall be issued according to the following schedule:
Retail and Mail Order Prescription Claims Payment
Administrative Service Fees
Additional Service Fees and Costs
MAXORPLUS Mail Order Pharmacy
Prescription Clinical Intervention Services
is
MaxorPlus Initials:
CLIENT Initials:
Semi-monthly
Semi-monthly
Semi-monthly
Monthly
EXHIBIT 45C"
PRESCRIPTION DRUG RIDER
(Drug Rider to Fallow)
19
MaxarFlus Initials:
CLIENT Initials:
EXHIBIT "D"
MAXORPLUS MAIL SERVICE PHARMACY
CLINICAL PHARMACY SERVICES
Prescription Clinical Intervention Services
MAXORPLUS shall:
A. Analyze available patient data to determine the appropriateness and cost
effectiveness of current Mail Order Prescriptions provided to Eligible Members;
B. Based upon the foregoing analysis, MAXORPLUS shall contactthe prescriber
where appropriate to suggest modifications to the prescribed therapy to either a therapeutic
or generic equivalent; and
C. Dispense Prescriptions as authorized by the prescriber.
20
MaxvrPlus Initials:
CLIENT Initials:
EXHIBIT "E"
MAXORPLUS CODE OF ETHICS
Maxor National Pharmacy Services Corporation is committed to always representing the best
interests of its Clients in all PBM activities under its COMPLETE DISCLOSURE PRICING program.
To clarify Maxor's pledge to its Clients under this program, the following code of ethical behavior has
been adopted by Maxor and is incorporated into every COMPLETE DISCLOSURE PRICING
contract with Maxor:
• Maxor pledges its total dedication to the highest ideals of honesty and integrity in all PBM
activities.
• Maxor shall strive to provide the highest level of service possible and will always prioritize
the best interests of the Client and its employees in all PBM activities.
• Maxor pledges to fully disclose all financial activities related to every transaction affecting the
Client.
• Maxor pledges that it will always use its best efforts to obtain the best value on all drug
purchases for the Client in both the retail network and through Maxor's mail-order pharmacy.
• Maxor pledges to always bill the Client the same discounted AWP or MAC price that it pays
the network pharmacy.
• Maxor pledges that it will never use "spread pricing" for purchasing drugs sold in its mail
order pharmacy.
• Maxor pledges that it will never use repackaged or relabeled NDC numbers for its mail order
pricing unless the unit cost to the Client is less than the oiginal manufacturer's price.
• Maxor pledges to pass through to the Client all discounts from prime vendors.
• Maxor pledges to pass 100% of all rebates, administrative fees and other revenue received
from drug manufacturers through to the Client.
• Maxor guarantees that it will never sell data related to Client's members or Client's account
without first obtaining Client's approval, and when data is sold, 100% of the revenue from
such a transaction will be passed through to the Client.
• Maxor guarantees that the only revenue retained by Maxor under its COMPLETE
DISCLOSURE PRICING program shall be the administrative fees charged to the Client and
the dispensing fees charged on prescriptions filled in Maxor's mail-order pharmacy. All other
revenues and expenses shall flow through to the Client.
• Maxor pledges to always disclose all fees or commissions associated with the Client's
account that are paid to Third Party Administrators, Brokers or Consultants.
• Maxor pledges to use its best efforts to provide data related to Client's activities in a timely
fashion upon request.
• Maxor pledges its total commitment to providing a fully auditable program, including allowing
Client's auditors access to all rebate contracts and purchase agreements with drug
manufacturers or suppliers, as well as access to Client's billing file and pharmacy payment
file for all PBM activity.
21
MaxorPlus Initials:
CLIENT Initials:
r-
ACCDRIP CERTIFICATE OF LIABILITY INSURANCE
12/28/a 5'
PRODUCER (806) 376-6301 FAX (806) 376-1449
Neely, Craig & Walton, LLP
P. 0. Box 506
Amarillo, TX 79105
ACSR, Phyllis Garrison
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
INSURERS AFFORDING COVERAGE NAIC #
INSURED Maxor National P armaCy Services Corp
DBA: Maxor Pharmacies
320 S. Polk St. #500
Amarillo, TX 79101
INSURERA- Hartford
INSURER B: Liberty Insurance Underwriters
INSURER C:
INSURER D:
INSURER E:
t,uvcrr+uca
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECTTO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
ADDT
TYPE OF INSURANCE
POLICY NUMBER
POLICY EFFECTIVE
ATE (MMIDONY]
POLICY EXPIRATION
LIMITS
Insured Copy
GENERAL LIABILITY
46UUNUX1630
01/01/2006
01/01/2007
EACHOCCURRENCE $ 1,()00,00
DAMAGE TO RENTED $ 300 , 0()
X COMMERCIAL GENERAL LIABILITY
MED EXP (Any one person) $ 10,00(
CLAIMS MADE ® OCCUR
PERSONAL & APV INJURY $ 1,000,00(
A
GENERAL AGGREGATE $ 2,000,00
GEN"L AGGREGATE LIMIT APPLIES PER:
PRODUCTS - COMP/OP AGG $ 2,000,00(
POLICYF—j JECT D LOC
AUTOMOBILE
LIABILITY
46UENUX1726
01/01/2006
01/01/2007
COMBINED SINGLE LIMIT $
(Ea accldanl) 1,000,00()
ANY AUTO
BODILY INJURY S
X
ALL OWNED AUTOS
(Pe(pion)
SCHEDULED AUTOS
A
X
HIREDAUTOS
BODILY INJURY $
X
NON-OMFD AUTOS
(Per acddent)
PROPERTY DAMAGE S
(Per acl]dent)
GARAGE LIABILITY
AUTO ONLY - EA ACCIDENT S
OTHER THAN EA ACC $
ANY AUTO
AUTO ONLY: AGG S
EXCESSIUMBRELLA LIABILITY
EACH OCCURRENCE $ 15,000,0
AGGREGATE $ 15,000,000
X OCCUR CLAIMS MADE
LQ1871183958016
01/01/2006
01/01/2007
$
B
$
DEDUCTIBLE
_
$
RETENTION $
WORKERS COMPENSATION AND
46WEPH2O22
01/01/2006
01/01/2007
1 Ync STAT()- OTH.
E.L. EACH ACCIDENT S 1,000,000
EMPLOYERS' LIABILITY
A
ANY PROPRkETORIPARTNERIEXECiITIVE
OFFICERIMEMBER EXCLUDED?
E.L. DISEASE - EA EMPLOYE $ 11000,00
E.L. DISEASE - POLICY LIMIT S 11000,000
I yes, describe under
SPECIAL PROVISIONS below
OTHER
DESCRIPTION OF OPERATIONS 1 LOCATIONS I VEHICLES I E-XCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS
^A L-1 1 ATIl Ll'
ACORD 25 (2001108) OACORD CORPORATION 19BU
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL
10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY
OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES.
AUTHORIZED REPRESENTATIVE
Insured Copy
Stephen Walton, CIC/PKG
ACORD 25 (2001108) OACORD CORPORATION 19BU