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M <br />the first year of this Agreement. The Annual Flat Fee will increase <br />to $52,000 for the second year of the agreement. The Annual Flat <br />Fee will increase to $53,000 for the third and final year of the <br />agreement. The claim service fee shall be payable in quarterly <br />installments with the first installment due upon inception of this <br />contract. Each year of this Agreement is from January 1 to January <br />1 of the following year. The total compensation due the <br />Administrator shall be based on a claims service fee provided, and <br />covers claims administration for the life of the claim. The MMSEA <br />claims reporting is now included as part of the annual service fee <br />of this addendum. Bill review services are provided on behalf of <br />the client and the fee for Usual and Customary Reduction is $1.05 <br />per line, and the fee for PPO review and reduction is 230 of <br />savings. <br />Section 8. Employees; Affiliates and Certain Transactions. The <br />Administrator shall employ such competent and skilled personnel as <br />shall be necessary to carry out its duties under this Agreement at <br />its sole cost and expense. with the exception of litigation <br />counsel, the Administrator shall not be required, however, to <br />provide the services of any specific individual with respect <br />thereto. <br />The Administrators dealings with subcontractors or agents are <br />subject to the terms of Section 3. Without limiting the provisions <br />of Section 3, the Administrator shall not enter into any contract, <br />