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<br />ORIGINAL <br /> <br />SECOND AMENDMENT TO THE <br />EMPLOYEE ASSISTANCE PROGRAM SERVICES AGREEMENT <br />BETWEEN <br />MANAGED HEALTH NETWORK <br />AND <br />CITY OF REDWOOD CITY <br />GROUP # 5213 <br /> <br />The Employee Assistance Program Services Agreement effective January 1, 2003, ("Agreement") by and <br />between MANAGED HEALTH NETWORK ("MHN"), a California corporation and CITY OF <br />REDWOOD CITY ("Client") is hereby amended by both Parties (hereinafter referred to as "Amendment"). <br /> <br />RECITALS <br /> <br />WHEREAS, in order to continue their existing relationship, the Parties desire to amend the Agreement; <br /> <br />NOW THEREFORE, in consideration of the premises, terms, and conditions set forth herein, the Parties agree <br />to amend the Agreement as follows: <br /> <br />1. Section II, paragraph 2.6 shall be deleted and replaced with the attached updated Exhibit 2.6, "MHN <br />Online Member Services". <br /> <br />2. <br />with: <br /> <br />Section IV, "Compensation of MHN", paragraph 4.1, "Monthly Fee", shall be deleted and replaced <br /> <br />"Client shall pay to MHN a Monthly Fee equal to three dollars and fifteen cents ($3.15) per Subscriber. The <br />Monthly Fee shall be due and payable on or before the first day of each month during the Term. <br />Notwithstanding the provisions of 4.3 below, if there is an increase or decrease in the number of Covered <br />Persons, MHN shall be entitled to adjust the compensation payment on a monthly basis. In the event that Client <br />fails to forward any compensation payment by the due date, Client shall pay MHN a late payment penalty of <br />one percent (1 %) per month on all monies outstanding in excess of thirty (30) days. If the Monthly Fee is not <br />received by MHN as set forth above, MHN may send a Written Notice of Termination effective on the last <br />day of the month for which full payments were received. The Client may automatically reinstate the <br />Agreement by remitting, within fifteen (15) days of the date of Written Notice of Termination, all outstanding <br />invoiced Monthly Fees to MHN." <br /> <br />3. <br /> <br />Section V, "Term and Termination", paragraph 5.1, "Term", shall be deleted and replaced with: <br /> <br />"This Agreement shall commence upon the 1st day of July, 2005 (the "Effective Date"), and shall initially <br />continue in effect for a period of twenty-four (24) months, through the 30th day of June, 2007, following <br />which it shall be automatically extended for successive periods of one (1) year, subject to section 4.3, <br />"Adjustment of Fees", unless either party terminates this Agreement in writing at least sixty (60) days prior to <br />the end of the then current Term, or unless otherwise terminated in accordance with the provisions hereof." <br /> <br />4. All provisions of the Agreement and any written Amendment thereto, not inconsistent herewith, shall <br />remain in full force and effect. <br /> <br />#5213/5/5/2005 <br /> <br />Page 1 of 3 <br /> <br />T'---'~T <br />