Exhibit 10.12

 

Summary of Compensatory Arrangements with Executive Officers

 

In December 2004, the compensation committee of the board of directors approved
a schedule of the following fiscal year 2005 base salaries for each of our named
executive officers:

 

Name and Principal Position

--------------------------------------------------------------------------------

   Base Salary

--------------------------------------------------------------------------------

Michael F. Neidorff

Chairman and Chief Executive Officer

   $ 850,000

Joseph P. Drozda, Jr., M.D.

Executive Vice President, Operations

   $ 380,000

William N. Scheffel

Senior Vice President, Specialty Companies

   $ 285,000

Lisa M. Wilson

Senior Vice President, Investor Relations

   $ 400,000

Karey L. Witty

Senior Vice President, Chief Financial Officer, Secretary and Treasurer

   $ 300,000

 

In July 2005, the compensation committee approved an increase in the base salary
of Mr. Scheffel to $360,000 and an increase in the base salary of Mr. Witty to
$340,000.