accurately evaluate our firm. We analyze our own performance through employee/client satisfaction surveys, report analysis/feedback and client meetings. We firmly believe in ongoing training, especially in todays every changing environment and conduct educational sessions at least monthly. Therefore, in addition to the statutory continuing education requirements, at least annually, all employees must go through a formal and thorough performance evaluation with the Managing Partner. This evaluation addresses industry knowledge, office procedures, use of technology and client satisfaction. Fees G. Fees 1. Please provide a detailed, all-inclusive breakdown of fees included in the proposal. 2. What are the fees for set-up? 3. Is your fee quote fixed for a period of time? If so, how long? 4. Please list any additional costs the Company will incur that you have not included in your fees. Meridian Compensation Meridian is very transparent regarding our level of compensation from our clients. We agree to disclose the amount we are compensated by the Iroquois account at any point upon request, but no less than annually. Meridian offers the choice of three (3) different methods of compensation; commission based, fee-based or hybrid. Our fees never contain any ‘set-up’ costs. Commission-based arrangement: This is the way Meridian is typically compensated by small to mid-sized groups and is the most popular and preferred arrangement for groups that are fully insured or level-funded. In a commission-based arrangement we only accept amounts that the carrier deems as their standard. These commissions are pre-built into the plans and are paid to Meridian monthly by the insurance carrier. Based on client size and carrier, sometimes the carrier cannot back out commissions, if they are state filed rates. Fee-based arrangement: under this arrangement we would remove all commissions from the programs and invoice Iroquois on a monthly or quarterly basis for services. Based upon the size of Iroquois and the scope of services our fee would be $35,000 annually and guaranteed for a minimum of 3 years. We commit to only amending our fee in the future, if the population of Iroquois changes by +/- 20% or Iroquois requires an additional value-added-service that totals $5,000 or more in cost to Meridian. Hybrid arrangement – under this arrangement we would remove the commissions from the medical program and invoice Iroquois on a monthly or quarterly basis for services. All other lines of coverage would remain in a commission-based arrangement at the carrier standard level. Based upon the size of Iroquois and the scope of services our fee would be $30,000 annually and guaranteed for a minimum of 3 years. We commit to only amending our fee in the future, if the population of Iroquois changes by +/- 20% or Iroquois requires an additional value-added-service that totals $5,000 or more in cost to Meridian. These are the value-added services that are offered with all our compensation arrangements, any additional charges are clearly highlighted. 26