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ADDENDUM TWO CONSIDERATION PAYABLE BY EMPLOYER CAPITATED ON A PER SUBSCRIBER BASIS 1. Monthly prepayment fees. Prepayment fees payable by Employer to OHS are calculated on a capitated basis based on the number'of Members enrolled as of the first day of each month during the term of this Group Agreement as follows: $1.91 per Subscriber per month. 2. Time for payment. Employer shall promptly pay to OHS the foregoing monthly prepayment fees on or before the first day of each month. Payments shall be made payable to Occupational Health Services and sent to Attn: Lockbox, Dept. 098-61, Box 45110, San Francisco, California 94145-0110. 3. Prepayment fees payable by Subscribers. Employer shall determine what portion, if any, of the prepayment fees shall be contributed by Subscribers, either by payroll deduction or by direct payment. Employer is responsible for the collection of such contributions unless other arrangements acceptable to OHS are made. 4. Eligibility information. Employer shall furnish accurate, current and timely eligibility information (including Medicare eligibility related information) to OHS. OHS may rely upon the latest information received as correct without further verification. If Employer submits inaccurate information to OHS, Employer is responsible for prepayment fees associated with the periods of time and coverages extended based on the inaccurate information. OHS will not refund any prepayment fees to Employer paid for an ineligible person if: (a) the request for such refund is made later than 30 days after the receipt of payment by OHS for said ineligible person; OR (b) Covered Services were received by the ineligible person during such period. OHS reserves the right to verify eligibility data maintained by Employer and to review all Member records maintained by Employer as they relate to establishment and maintenance of eligibility for OHS membership, provided, however, that such right shall be limited to the extent permitted by law and the requirement for confidentiality of Employee and Member information is upheld. 5. Change in consideration. The amount of the monthly prepayment fees and other consideration for any annual period subsequent to the first contract year may be determined and changed at the end of any contract year by OHS, provided, however, that Employer shall be notified of any change at least 90 days in advance of the effective - 10 - '" '" .""""..,...,..,,, ....'..,,'" ,,' " '