1996-033-RES WHEREAS, CITY COUNCIL DID HERETOFORE ON THE 13TH DAY OF FEBRUARY 1995

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4.03 If this Agreement is terminated by Purchaser, except as provided in Paragraph 4.02, above, Purchaser agrees to pay to Contractor a termination fee in an amount equal to twice the average of the monthly administration fee due for all months immediately preceding termination. Such termination fee is due and payable within thirty (30) days after notice of termination, or immediately upon tennination ifno notice is given, and is in addition to any monthly administration fee, or portion thereof, or any other monies due and payable to Contractor under this Agreement. 4.04 If this Agreement is terminated for cause by Purchaser under Paragraph 4.02, above, the Purchaser shall not be liable for any termination fees or charges. Moreover, Purchaser may withhold from the current administration fees due Contractor, the costs incurred by Purchaser in attempting to gain Contractor's performance of the Agreement. SECTION FIVE ADMINISTRATION FEES AND REIMBURSEMENT 5.01 Purchaser agrees to pay Contractor a monthly administration fee which shall be due and payable in full on or before the first (I st) day of each month at its home office in Richardson, Texas, during the term of this Agrcement. a. In the event payment of the monthly administration fee is not paid by the twentieth (20th) day of the month, Contractor may suspend its performance under this Agreement without notice until such fees and late charges are paid. b. After the twentieth (20th) day of the month, a late charge may be assessed each day for late. payment of all monies owed to Contractor by Purchaser under this Agreement. The late charge shall be charged as interest and equal to ten percent (10%) of the past-due amount owed, or the maximum amount permitted by state law, whichever is less. c. After the thirty-first (3 I st) day the Contractor may terminate this Agreement for non- payment of fees. 5.02 The amount of the administration fee shall be determined in accordance with the specifications contained in Item One of the current Exhibit to this Agreement, if any. 5.03 The administration fee shall be subject to change by Contractor as follows: a. On each anniversary of the Effective date of this Agreement, upon thirty (30) days' prior written notice to purchaser; b. On the implementation date of any changes in the Benefit Program which would increase Contractor's cost of administration; c. On any date that increased expenses are incurred by Contractor because of changes imposed by governmental entities--limited to increases sufficient to recover the additional expenses; or 5