Document:

Exhibit 10.25.1 NUFICClaimsServiceAgreementandAmendments2

EXHIBIT 10.25.1

AMENDMENT NO. 2 
to the 
CLAIMS SERVICES AGREEMENT 
between
NATIONAL UNION FIRE INSURANCE COMPANY OF 
PITTSBURGH, PA. 
And Its Affiliated Companies 
(hereinafter collectively called "Insurer")
and
LOTSOLUTIONS, INC. 
(hereinafter called "Third Party Administrator")
This Amendment No. 2 ("Amendment"), entered into effective January 1st, 2012 ("Effective Date"), amends the Claims Service Agreement by and between Third Party Administrator and Insurer dated December 1, 2008 (the "Agreement"), as amended by Amendment No. 1 dated August 1, 2010 (hereafter collectively referred to as the "Agreement"). Capitalized terms used, but not otherwise defined, herein shall have the meanings ascribed to them in the Agreement.
In consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
		
	1.
	Section C(a) of Article VI of the Agreement shall be deleted in its entirety and replaced with the text below:

a. Deadlines. At all times, one hundred percent (100%) of all new claims, re-opened claims and appealed claims from Bank of America Insureds shall be processed and adjusted within five (5) business days of receipt and one hundred percent (100%) of all new claims, re-opened claims and appealed claims from non-Bank of America Insureds shall be processed and adjusted within twelve (12) business days of receipt of all information reasonably required by Third Party Administrator, unless Insurer provides in writing a longer period of time. These performance standards are required to be reported weekly to the insurer via email.
		
	2.
	Exhibit A of the Agreement shall be deleted in its entirety and replaced with new Exhibit A in the form attached hereto and made part hereof.

		
	3.
	Exhibit C of the Agreement shall be deleted in its entirety and replaced with new Exhibit C in the form attached hereto and made part hereof

		
	4.
	Exhibit D of the Agreement shall be deleted in its entirety and replaced with new Exhibit D in the form attached hereto and made part hereof.

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All other terms and provisions of the Agreement not in conflict with this Amendment shall remain unchanged and in effect. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and he same instrument. Counterpart signature pages to this amendment transmitted by facsimile transmission, by electronic mail in "portable document format" (".pdf ') form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

IN WITNESS WHEREOF the parties, by their respective duly authorized officers, have caused this Amendment to be executed as of the Effective Date.
LOTSOLUTIONS, INC.

By:      /s/ Alex Halikias        
Title:  President
Date:      1/30/2012            

NATIONAL UNION FIRE INSURANCE COMPANY PITTSBURGH, PA.

By:      /s/ M. J Stevenson        
Title:  As Its Attorney-In-Fact
Date:      2/1/12                

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EXHIBIT A 
TO CLAIMS SERVICE AGREEMENT

COMPENSATION
Claims Adjusting Service Fee Structure
In addition to the provisions of Section V(B) of the Agreement, Claims Adjusting Services also shall include the following:
		
	1.
	Claim form production, mailing all appropriate claim forms to claimants, and delivery,

		
	2.
	Claim form processing, including opening mail, establishing a claim on claim administration system, assigning a claim number, and scanning any mail received and attaching such records to the applicable policy,

		
	3.
	Claim adjudication including payment, denials, and requests for additional information,

		
	4.
	Follow-up with claimants for additional information shall be performed in accordance with the procedure described in Exhibit C, Sections Z, AA, and BB.

		
	5.
	Claim Appeals shall be performed in accordance with the procedure described in Exhibit C, Section CC.

Compensation for Services provided pursuant to this Agreement shall be as follows: A. Bank of America Qualified Claims 
		
	1.
	Physician Office Visit — A fee of $11.94 will he charged per Qualified Claim processed under each policy.

		
	2.
	Emergency Room Treatment - A fee of $22.46 will be charged per Qualified Claim processed under each policy.

		
	3.
	Hospitalization, Family Leave, Home Care, Recuperation - A fee of $26.14 will be charged per Qualified Claim processed under each policy.

		
	4.
	Permanent Total Disability - A fee of $60.64 will be charged per Qualified Claim processed under each policy.

		
	5.
	Accidental Death & Dismemberment - A fee of $60.64 will he charged per Qualified Claim processed under each policy.

Any Bank of America Qualified Claim closed after sixty (60) calendar days due to no activity by the claimant that is reopened will be subject to a new fee at (80%) of the applicable Qualified Claim fee.
Insurer shall have the right, exercisable upon one hundred twenty (120) days prior written notice to Third Party Administrator, to add types of Qualified Claims, or delete types of Qualified Claims from, the foregoing list of Bank of America Qualified Claims.

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B. Non-Bank of America Qualified Claims

		
	1.
	Physician Office Visit ("POV") Claims - A fee of $8.89 will be charged per Qualified Claim processed under each policy.

		
	2.
	Emergency Treatment, Emergency Transportation - A fee of $19.71 will be charged per Qualified Claim processed under each policy.

		
	3.
	Hospitalization, Family Leave, Home Care, Recuperation - A fee of $23.46 will be charged per Qualified Claim processed under each policy.

		
	4.
	Accidental Death & Dismemberment - A fee of $57.89 will be charged per Qualified Claim processed under each policy.

		
	5.
	Total Temporary Disability (TTD), Permanent Total Disability Single (PTD) — A fee of $57.89 will be charged per Qualified Claim processed under each policy.

Pre-Existing Condition - In the event a Qualified Claim requires an investigation into the presence of a "Pre-existing Condition" (as defined in the applicable policy under which the Qualified Claim is being adjudicated) related to such Qualified Claim, a fee of $65.25 will be charged for any such Qualified Claim processed instead of the fees described in Subsections B(1) through B(5) above. For the avoidance of doubt, Insurer shall not be charged for any fees in excess of $65.25 for the processing of Qualified Claims where the investigation of a "Pre-Existing Condition" occurred.
Any Non-Bank of America Qualified Claim under each policy closed after sixty (60) calendar days due to no activity by the claimant that is reopened will be subject to a new fee at (80%) of the applicable Qualified Claim fee.
Insurer shall have the right, exercisable upon one hundred twenty (120) days prior written notice to Third Party Administrator, to add types of Qualified Claims to, or delete types of Qualified Claims from the foregoing list of Non-Bank of America Qualified Claims.
C. Claim Form and Document Processing Only — A fee will be charged for Claim form and Document processing only, including opening mail, establishing a claim, policy record creation, and passing claim information and Document Images to Insurer for adjudication.
This following fee(s) will apply to the following Qualified Claim Type(s):
• Accident Medical Expense — A fee of $37.63 will be charged per claim.

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D. Claim Form Production and Delivery — A fee of $1.35 will be charged for the production and physical mailing of a claim form. A fee of $1.00 will be charged for the productions and c-mailing of a claim form. Claim forms will be produced and delivered for each claim when requested in either of the following methods:

		
	1.
	Insurer, or its designated administrators - The collection of information from an insured and data entered into the Third Party Administrator's file by the Insurer, or its designated administrator.

		
	2.
	Interactive Voice Recognition (IVR) and Web — Information received by the Third Party Administrator from the Insurer's IVR and/or Web services required for production and mailing of forms requested.

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EXHIBIT C

TO CLAIMS SERVICE AGREEMENT
AIG 
 CLAIMS SERVICE 
CLAIMS HANDLING GUIDELINES 
F 0 R DOMESTIC ACCIDENT & HEALTH DIVISION 
CLAIMS ADMINISTRATORS

These guidelines will establish procedures for adjusting losses on behalf of AIG Claims Service (AIGCS) and AIG Member Companies (hereinafter referred to as the "Insurer"), to which all Third Party Administrators are required to adhere, under the terms and conditions of the Claims Service Agreement.
The claim handling, reporting and consulting guidelines outlined in these instructions have been established by AIGCS and the Insurer. The claims administrator (hereinafter referred to as the "Third Party Administrator") may not deviate from these guidelines without prior approval from AIGCS.
The Third Party Administrator, administering claims on behalf of the Insurer, will, to the best of its ability, comply with all rules, regulations and reporting requirements promulgated by Federal, State/Commonwealth, Municipal and Provincial Regulatory Authorities relating to adjusting, licensing, claim settlement and payments for all lines of business, and all jurisdictions, in each state where claims adjusting activities are contemplated or where claims adjusting takes place.
The Third Party Administrator will comply, to the best of its ability, with the Insurer's Claims Handling Guidelines, outlined herein, and incorporate the consulting and reporting criteria, agreed upon with AIGCS and its insureds, in the Third Party Administrator Account Service Instructions.

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EXHIBIT 10.25.1

A.ACKNOWLEDGMENTS:
State insurance regulations require prompt acknowledgment of receipt of claims. The Third Party Administrator shall be responsible for compliance with such regulations.
B.AUDITS:
All claim files are the property of the Insurer and are subject to open and closed file audits. Results of an audit will be discussed with the Third Party Administrator and a letter will be sent by the Insurer setting forth the findings. A follow up audit will determine if corrective action has been taken by the Third Party Administrator. Results will be monitored and failure to comply may result in either suspension or termination of the Third Party Administrator. Any audit reports, written or oral, are confidential and shall not be released to any third parties without the prior written consent of the Insurer and Third Party Administrator, which consent may not be unreasonably withheld.
C.BONDS:
The Third Party Administrator does not have authority to purchase bonds of any type on behalf of the Insurer. In the event a bond is needed for appeals or other purposes, contact the Insurer.
D.COMPLAINTS:
Refer any written inquiry, complaint or request from an Insurance Department, other Regulatory Agency to the Insurer.
E.COVERAGE CONFIRMATION AND COVERAGE ISSUES:
All files must reflect proper documentation that coverage has been reviewed and is in order. All competing or conflicting contractual coverage issues must be reported to the Insurer. The Third Party Administrator must report same to the Insurer by e-mail within two (2) business days of discovery by the Third Party Administrator, including pertinent documentation. Insurer will respond to the Third Party Administrator by e-mail providing guidance on how the competing or conflicting contractual coverage should be interpreted. Third Party Administrator will refrain from proceeding further until such time as Third Party Administrator receives an e-mail from Insurer that provides guidance on how the competing or conflicting contractual coverage issues should be interpreted. Third Party Administrator shall be required to follow-up with Insurer within a reasonable period of time after the initial request for clarification is submitted.
For purposes of this provision of Exhibit C, "coverage issues" shall include, without limitation, questions arising out of or resulting from:
		
	•
	interpretations of policy provisions, including, without limitation, the trigger event, the amount of benefits available, and/or the application of an exclusion; and/or

		
	•
	interpretations of applicable statutes, regulations or prevailing case law as may he applicable to a claim.

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F.DRAFT ISSUANCE:
Drafts/checks should be issued in accordance with the rules, regulations and laws applicable to the jurisdictions involved. All drafts/checks will be issued by the Third Party Administrator. It is the responsibility of the Third Party Administrator to timely request funds from AIGCS to insure a continuous flow of payments as necessary.
G.EX GRATIA PAYMENTS:
The Third Party Administrator personnel do not have authority to make an "Ex Gratia Payment" without prior written approval from the Insurer.
H.FILE RETENTION/DESTRUCTION PROCEDURES: See Exhibit B of the Agreement.
I.FORMS:
Third Party Administrator shall only use forms provided by Insurer in the routine handling of claims.
J.INVESTIGATION:
The Third Party Administrator is required to perform an appropriate investigation and adjust each claim occurring within the Insurer's contract period in accordance with the terms and conditions of the Claims Service Agreement and of the applicable laws of the jurisdiction involved. Investigation should commence with the receipt of the claim and the scope of such investigation shall be commensurate with the type of loss and provide information sufficient to bring the claim to a timely and equitable conclusion.
Initial investigation is to be completed within the timeframe specified in Exhibit D. All claim activity must be documented in the file.
K.LITIGATION MANAGEMENT:
Insurer shall control litigation arising out of claims adjudicated by Third Party Administrator under this Agreement.
L.PENALTIES/FINES:
The Third Party Administrator will be held responsible for any fines, penalties, or interest charges incurred by the Insurer as a result of the Third Party Administrator's failure to comply with the rules, regulations and laws by which these penalties are assessed.
Penalties/fines may not be charged as an Allocated Loss Expense to the claim file unless specific written authorization is received from the Insurer.
M.PROCESSING RECOVERIES:

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All refunds and voided checks should be made payable to the Third Party Administrator on behalf of the Insurer and processed through the Third Party Administrators handling branch and/or supervisory department.
Drafts and checks will be deposited by the Third Party Administrator to the individual insured's account and coded as a recovery through the Third Party Administrator's statistical loss reporting system.
N. REPORTABLE FILES:
The Third Party Administrator is required to report to the Insurer:
		
	•
	Accidental Death claims in excess of $99,999.00.

		
	•
	All lawsuits naming the Insurance Company as a defendant, lawsuits involving class actions, allegations of bad faith, and violation of an unfair claims practices act

		
	•
	Any data requested by insurer as result of changes in state law, reserving, settlement or legal precedent.

O. REPORTING REQUIREMENTS:
A twenty (20%) percent increase in claims volume within a week for permanent temporary disability, accidental death and dismemberment, and/or accident medical expense claims should be reported immediately, by phone or e-mail, to the Insurer.
P.SIGNATURES (CHECKS AND DOCUMENTS)
Any check or draft which requires a signature from the Insurer, should be sent with a letter of explanation and a return envelope to Insurer.
Q.CONTACT PERSONS: Insurer:
Name, Title, and Company: Eileen Duffy, Assistant Vice President, AIG Claim Services, Inc. Address: Rockwood Plaza, 503 Carr Road, 3rd Floor, Wilmington, DE 19809
Phone Number: 302 765-1760
Fax Number: 302 830-4530
E-mail Address:  eileen.duffy@chartisinsurance.com
Third Party Administrator:
Name, Title and Company: Alex Halikias, President, LOTSolutions, Inc. Address: 10151 Deerwood Parkway Blvd,
Building 100, Suite 300, Jacksonville , FL 32256
Phone Number: (904) 350-9660
Fax Number: (904) 354-4525
E-mail Address: ahilikias@consecta.com

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R. INQUIRY RESOLUTION:

The Third Party Administrator will cease any responsibility for maintaining and managing the direct customer service call center inquiries related to claims. Effective October 1st, 2011, all customer Inquiry Resolutions, defined as issues raised by customers that require review and response back to the customer, will be the responsibility of the Insurer, or its designee, and no customer contacts will be made by Third party Administrator's personnel in response to any customer Inquiry, unless otherwise agreed upon.
Inquiry Resolutions will be defined as:
		
	1.
	Check Traces and Check Copies — such requests will be forwarded to the Third Party Administrator for resolution and are to be resolved within five (5) business days.

		
	2.
	Additional Information — claims pended for additional or clarifying information by the Third Party Administrator, and which result in an Inquiry Resolution, will be resolved to the best of its ability by the Insurer, or its designee. Insurer, or its designee, will communicate with the claimant and note the claim record accordingly. If, during the course of this resolution, the Insurer recommends additional action by the Third Party Administrator, the recommendation will be forwarded to the Third Party Administrator as a customer escalation action. If, during the course of this resolution, the Insurer identifies a potential adjudication error or omission, or needs further detail or clarification from the Third Party Administrator, then the issue will be forwarded to the Third Party Administrator as a customer escalation for review and research of customer records to determine the cause of the issue. Thereafter, Third Party Administrator shall resolve the issue, and respond appropriately to the customer.

		
	3.
	Establishing Additional Claims, Post Adjusting — the Insurer, or its designee, will make every attempt to establish a Claim for each possible claim incident and/or customer policy. In the event Insurer, or its designee, identifies more policies for a claimant than Third Party Administrator, then Third Party Administrator shall check the system for more policies and open more claims, as applicable, if additional policies are found. Omissions resulting in an inquiry will be provided to the Third Party Administrator for Claim Adjusting. When adjusting claims, The Third Party Administrator will contact the insurer if a claim incident is found to be omitted and the Insurer will attempt to contact the customer to establish the appropriate additional Claim Form for submission.

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S.DISPUTE RESOLUTION:
The Third Party Administrator will provide Legal Department assistance for gathering data to assist with responses to Department of Insurance Complaints, Better Business Bureau complaints, and Attorney General and regulatory inquiries, as well as for any other administrative-type support requested by Insurer or its designated administrators not otherwise described herein. The Third Party Administrator will respond to 21 level appeals, disputes referred to Third Party Administrator by Insurer, and Attorney Letters; Third Party Administrator will consult with the Insurer for guidance with respect to threats of litigation involving class action or bad faith complaints. Such Legal Department internal fees for dispute resolution activities are part of and included in the Qualified Claims Fee Structure.
T.NON-ROUTINE REPORTS:
Upon request, Third Party Administrator will produce special reports above and beyond the standard information produced as of the Effective Date, any additional reports deemed necessary for reporting Service Level Agreement results. The parties will agree in advance on a price for such reports.
U.RETURN MAIL:
The Third Party Administrator will be responsible for managing all Return Mail related to Claims Adjusted under this Agreement. The Third Party Administrator will prepare files for the Insurer or Insurer's designee on a weekly basis that will include all Return Mail Items requiring follow-up. The Third Party Administrator will scan all Return Mail, including the envelope and will store the original, including the envelope until instructed otherwise by the Insurer. The Insurer must be notified of all specific Return Mail received within seven (7) business days of original receipt.
V.OUTSIDE PROFESSIONAL SERVICES:
Fees for outside professional services, including, but not limited to, and without limitation, attorney fees, audit fee, medical peer review fee, toxicology expert review fee, medical record fee, postage rate increases, tax fee or technical support, will be passed through at cost to the Insurer without prior written approval; however, the Third Party Administrator will obtain prior approval for attorney, audit, postage and technical support fees. Third Party Administrator is not required to obtain prior written approval to submit any claim for a peer or toxicology expert review. Third Party Administrator will provide detailed billing information to the insurer, for such outside professional services.
W.NON-ROUTINE OR EXPRESS MAILINGS:
The Insurer will be billed at cost, and be provided with detailed billing information from the Third Party Administrator, for any expedited postal service, express delivery or courier service requested by the Insurer, unless such costs are due to an act or omission of Third Party Administrator in its performance of the Service hereunder.
X.CUSTOMER SERVICE CALLS:

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The Third Party Administrator will cease all responsibility for maintaining a customer service call center or an Interactive Voice Recognition System (IVR/Web) for the Insurer effective September 30, 2011. Effective October 1st, 2011, the Insurer shall assume all responsibility for the customer service call center and IVR/Web.
Y. LICENSING:
The Third Party Administrator will be required to use licensed staff to handle all claims adjusting for Insurer. Licensing of all individuals must be maintained in every state which requires licensing. The Third Party Administrator will have:
		
	•
	Until May 1, 2012 to ensure that a minimum of 50% of all claim adjusters are appropriately licensed,

		
	•
	Until September 30, 2012 to ensure that 100% of all claim adjusters employed by Third Party Administrator as of the Effective Date of Amendment No. 2 are appropriately licensed.

		
	•
	After September 30, 2012, all new claim adjusters must be appropriately licensed within six (6) months from their respective beginning employment dates as outlined above.

Failure to maintain licensing will be considered a breach of contract; provided, however that a reasonable amount of time shall be permitted to enable compliance with any change in applicable laws, rules and regulations, not to exceed the effective date of compliance specified in any such law, rule, or regulation.
Z. CLAIMS ADJUSTING FOLLOW-UP PROCEDURE FOR PHYSICIAN OFFICE VISIT, EMERGENCY ROOM & HOSPITALIZATION CLAIMS:
Follow up with claimants for additional information will occur as follows:
		
	1.
	An initial follow-up letter is to be mailed via first class mail twenty (20) calendar days following the mailing of the original request.

		
	2.
	If additional information is not received after (35) calendar days from the original request, a letter and or email (if customer opted in for email) will be sent to customers reminding them of the missing information and the need to contact the Customer Service Center to finalize their claim. No additional fees will be charged for these services as they are covered in the per claim fees described in Exhibit A.

		
	3.
	If additional information is not received after the above communications, a final close-out letter will be mailed sixty (60) calendar days following the mailing of the original request. No additional fees will be charged for these services as they are covered in the per claim fees described in Exhibit A.

Any Bank of America Qualified Claim, under each policy, closed after sixty (60) calendar days due to no activity by the claimant that is reopened will be subject to a new adjusting service fee at the reduced cost described in Exhibit A. Fees for the adjusting of reopened claims will be billed separately on the monthly invoice and the back-up must show the policy numbers associated with these claims.

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Any Non-Bank of America Qualified Claim under each policy closed after sixty (60) calendar days due to no activity by the claimant that is reopened will be subject to a new adjusting service fee at the reduced cost described in Exhibit A. Fees for the adjusting of reopened claims will be billed separately on the monthly invoice and the back-up must show the policy numbers associated with these claims.
AA. CLAIMS ADJUSTING FOLLOW-UP PROCEDURE FOR PERMANENT TOTAL DISABILITY, TOTAL TEMPORARY DISABILITY and ACCIDENTAL DEATH & DISMEMBERMENT CLAIMS:
Effective March 1, 2012, follow-up with claimants for additional information will occur as follows:
		
	1.
	An initial follow-up letter is to be mailed via first class mail twenty (20) calendar days following the mailing of the original request.

		
	2.
	If additional information is not received after (35) calendar days from the original request, Third Party Administrator will place an outbound automated telephone call and/or send a follow-up email (if customer opted in for email) to claimants reminding them of the missing information and the need to get in-touch with us to finalize their claim. No additional fees will be charged for these services as they are covered in the per claim fees described in Exhibit A.

		
	3.
	If additional information is not received after the above communications, a final close-out letter will be mailed sixty (60) calendar days following the mailing of the original request. No additional fees will be charged for these services as they are covered in the per claim fees described in Exhibit A.

Any Bank of America Qualified Claim, under each policy, closed after sixty (60) calendar days due to no activity by the claimant that is reopened will be subject to a new adjusting service fee at the reduced cost described in Exhibit A. Fees for the adjusting of reopened claims will be billed separately on the monthly invoice and the back-up must show the policy numbers associated with these claims.
Any Non Bank of America Qualified Claim under each policy closed after sixty (60) calendar days due to no activity by the claimant that is reopened will be subject to a new adjusting service fee at the reduced cost described in Exhibit A. Fees for the adjusting of reopened claims will be billed separately on the monthly invoice and the back-up must show the policy numbers associated with these claims.
BB. CLAIMS OPEN & CLAIMS STATUS CHANGE PROCEDURE FOR ALL CLAIM TYPES:
Third Party Administrator will send an email alert and/or an automated outbound telephone call to all claimants upon sending out or receipt of a claim form. Third Party Administrator will send an email alert and/or automated outbound telephone call to all claimants whenever a claims status changes to denied or approved.

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CC. CLAIMS APPEAL PROCEDURE:

Claims Appeals will be processed when presented in writing and should include additional evidence or information that would warrant re-opening and re-adjudicating the claim. Any Bank of America Qualified Claim and any Non Bank of America Qualified Claim that is reopened due to an Initial Appeal will be subject to a new adjusting service fee, unless there is a change to the claim due to an error or omission by The Third Party Administrator. Fees for the adjusting of reopened claims will be billed separately on the monthly invoice and the back-up must show the policy numbers associated with these claims.

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EXHIBIT D 
SERVICE LEVEL STANDARDS

A. SERVICE STANDARDS:
Third Party Administrator shall provide Insurer written reports on a monthly basis on the results for each of the service level standards ("Service Standards") described below on an average monthly basis.
1. Response to Written General Correspondence:
a.)Eight-five (85%) or more within five (5) business days.
b.)One hundred percent (100%) within seven (7) business days of receipt.
Written General Correspondence shall not include any communication that contains complaints, threats of litigation, appeals, or other forms of grievance.
The Insurer must review and approve any non standard or ad-hoc communications sent out by the Third Party Administrator in advance.
2. Response to a request from Insurer by the end of the next business day.
3. Request for a Claim Form:
a.) Form Request: One hundred percent (100%) within two (2) business days of receipt.
4. Check traces must be resolved and information provided to the Insurer or Insurer's designee within five (5) business days of receipt of a written request by the Third Party Administrator.
5. Return Mail must be processed and forwarded to the Insurer or Insurer's designee within seven (7) business days of receipt
6. Customer Escalations that are forwarded to the Third Party Administrator for review and for Third Party Administrator to provide additional information, must be reviewed, acknowledged and responded to within three (3) business days of receipt by Third Party Administrator.
7. Insurer and Insurer's designee must have access to the Third Party Administrator's servicing tool (Customer Connect) 8am-10pm (ET) Monday through Friday and Sam-3pm (ET) on Saturday. Third Party Administrator will ensure 99.5% availability during these hours of operation. Availability is to be measured by the Third Party Administrator via the internet and not locally at the Third Party Administrator.
8. Invoices for all charges billed and services provided in the prior month are due to the Insurer by the 15th of the following month.

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	9.
	Maintain adequate personnel, training and procedures to ensure that in written and oral communication with Insureds, customer service personnel provide accurate information specific to the Policies in all material respects with an overall error rate of less than five percent (5%) per month.

		
	10.
	One hundred percent (100%) of all new and re-opened Bank of America Qualified Claims must be processed and adjusted within five (5) business days of receipt of all information reasonably required by Third Party Administrator.

		
	11.
	One hundred percent (100%) of all new and re-opened Non-Bank of America Qualified Claims must be processed and adjusted within twelve (12) business days of receipt of all information reasonably required by Third Party Administrator; provided, however, that in the event that the volume of new claims in a given week has increased by twenty (20%) percent or more over the previous twelve-week average, Third Party Administrator shall have until the applicable regulatory deadline to process and adjust such claims.

B. SERVICE STANDARD PENALTIES:
1. If the Third Party Administrator fails to meet any one of the above Service Standards for two (2) consecutive months or fails to meet any three (3) Service Standards within any six (6) month period, the Third Party Administrator will credit the Insurer ten percent (10%) of the total amount of the Monthly Claims invoice for the most recent month in which Third Party Administrator failed to meet the Service Standard. A new six month period will begin in the month following the month in which the last penalty was assessed. The credit shall appear on the next monthly invoice issued by Third Party Administrator following the month in which the penalty is assessed.
1. The Third Party Administrator shall not be responsible for a failure to meet any Service Standard to the extent that such failure is directly attributable to any of the following:
a. Insurer or any of its subcontractors (including other suppliers, except to the extent such suppliers are engaged as direct or indirect subcontractors of the Third Party Administrator) materially breaches the Agreement or materially interferes with the Third Party Administrator's ability to meet the applicable Service Standards. In the event the Third Party Administrator cannot meet Service Standards due to reasons stated in this Subsection, the Third Party Administrator shall notify Insurer of such issue as soon as reasonably practicable in order to enable Insurer to resolve such issue.
		
	c.
	Any occurrence that qualifies as a Force Majeure.

		
	d.
	Any errors, omissions, willful misconduct, or violations of law by Insurer or its subcontractors, except to the extent that such subcontractors are engaged as direct or indirect subcontractors of the Third Party Administrator. 

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EXHIBIT 10.25.1

Page 17 of 16                                        Initials:Exhibit 10.26.1 Amended Form of Restricted Stock Agreement - Directors

EXHIBIT 10.26.1

    
Fortegra Financial Corporation
2010 Omnibus Incentive Plan
RESTRICTED STOCK AWARD AGREEMENT

THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is made effective as of the grant date designated in Schedule A hereto (the “Grant Date”) by and between Fortegra Financial Corporation, a Delaware corporation (with any successor, the “Company”), and the participant designated in Schedule A hereto (the “Participant”).
R E C I T A L S:
WHEREAS, the Company has adopted the Fortegra Financial Corporation 2010 Omnibus Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and
WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the restricted stock provided for herein to the Participant pursuant to the Plan and the terms set forth herein.
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:
1.Restricted Stock Award.  Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Participant the number of Shares designated in Schedule A hereto (the “Restricted Shares”), which shall vest and become nonforfeitable in accordance with Section 3 except as otherwise set forth in this Agreement or the Plan.   
2.Certificates.  Certificates representing the Restricted Shares shall be issued by the Company and shall be registered in the name of the Participant on the stock transfer books of the Company promptly following execution of this Agreement by the Participant, but shall remain in the physical custody of the Company or its designee at all times prior to the vesting of such Restricted Shares pursuant to Section 3.  As a condition to the receipt of this Agreement, the Participant shall deliver to the Company a stock power, duly endorsed in blank, relating to the Restricted Shares. 
3.Vesting.    
(a)Vesting Schedule.  Subject to the Participant's continued Service on each vesting date, and except as otherwise provided in Sections 3(b), 3(c) and 4, the Restricted Shares shall vest in accordance with the vesting terms set forth in Schedule A; provided, however, that if the Participant's Service is terminated due to the Participant's retirement from the Company and the Participant has reached the age of seventy (70) and has provided at least five (5) calendar years of Service as of the date of such retirement (a “Qualifying Retirement”), then the 

EXHIBIT 10.26.1

Restricted Shares shall continue to vest during the Participant's retirement in accordance with the vesting terms set forth in Schedule A, subject to Section 4.
(b)Accelerated Vesting upon Change of Control.  Upon the occurrence of a Change of Control, all then-unvested Restricted Shares shall immediately vest in full, so long as the Participant's Service has not been terminated before the date of the consummation of the Change of Control.
(c)Accelerated Vesting upon Non-Election.  If the Participant is a member of the Board of Directors of the Company and fails to be re-elected to the Board following his nomination by the Board for re-election, then all then-unvested Restricted Shares shall immediately vest in full.
4.Forfeiture; Recovery Due to Accounting Restatement.
(a)Subject to Sections 3(b) and 3(c), if the Participant's Service is terminated for any reason other than a Qualifying Retirement, the Restricted Shares, to the extent not then vested, shall be forfeited by the Participant without consideration.
(b)If the Participant's Service is terminated due to a Qualifying Retirement and the Participant thereafter dies, then the Restricted Shares, to the extent not vested as of the date of such death, shall be forfeited by the Participant without consideration.
(c)Notwithstanding Sections 1, 3 and 4, if the Board or the Committee determines that the recovery of some or all of the compensation paid or payable to the Participant pursuant to this Agreement is required under any applicable law, regulation or listing requirement, or any policy of the Company concerning the recovery of compensation as a result of an accounting restatement due to the Company's material noncompliance with any financial reporting requirement under the securities laws, then to the extent provided by, and in accordance with, the terms of such law, regulation, listing requirement or policy: (i) the Restricted Shares, or any portion thereof, including any vested Restricted Shares, shall be immediately forfeited by the Participant without consideration; and (ii) the Company shall have the right to recover from the Participant all Restricted Shares credited or delivered to the Participant, and if the Participant has transferred any Restricted Shares, the Company shall have the right to recover the Fair Market Value of such transferred Restricted Shares (as of the date on which such Restricted Shares were transferred) from the Participant in cash.  
5.No Right to Continued Service.  The granting of the Restricted Shares evidenced hereby and this Agreement shall impose no obligation on the Company or any Affiliate to continue the Service of the Participant and shall not lessen or affect any right that the Company or any Affiliate may have to terminate the Service of such Participant.
6.Securities Laws/Legend on Certificates.  The issuance and delivery of Restricted Shares shall comply with all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company's securities may then be traded.  If the Company deems it necessary to ensure that the issuance of securities under the Plan is not required to be registered under any applicable securities laws, each Participant to whom such security would be issued shall deliver to the Company an agreement or certificate containing such representations, 

2

EXHIBIT 10.26.1

warranties and covenants as the Company which satisfies such requirements. The certificates representing the Restricted Shares shall be subject to such stop transfer orders and other restrictions as the Committee may deem reasonably advisable, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.
7.Transferability.  Prior to vesting in accordance with Section 3, the Restricted Shares may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.  Restricted Shares transferred by will or by the laws of descent and distribution shall continue to be subject to the terms and conditions of this Agreement, and no such permitted transfer of the Restricted Shares to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof. 

8.Definitions.
(a)“Cause” shall have the meaning set forth in the Participant's employment agreement with the Company or its Affiliates, if any, or if the Participant is not a party to an employment agreement with a definition of “Cause”, then “Cause” means that the Board has determined that any one or more of the following has occurred:  (i) the Participant shall have been indicted for, or shall have pleaded guilty or nolo contendere to, any felony; (ii) the Participant shall have failed or refused to carry out the reasonable and lawful instructions of Chief Executive Officer of the Company, the executive to whom the Participant reports, or the Board (other than as a result of illness or disability) concerning duties or actions consistent with the Participant's position and such failure or refusal shall have continued for a period of ten (10) days following written notice from the Board; (iii) the Participant  shall fail to adhere to any material written Company policy; (iv) the Participant shall have engaged in any gross or willful misconduct resulting in a substantial loss to the Company or any of its Affiliates or substantial damage to any of their reputations; or (v) the Participant shall have committed any fraud, embezzlement, misappropriation of funds, breach of fiduciary duty or other act of dishonesty against the Company.

9.Adjustment of Restricted Shares.  Adjustments to the Restricted Shares shall be made in accordance with the terms of the Plan.
10.Withholding.  The Participant may be required to pay to the Company or any Affiliate and the Company shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Restricted Shares, their grant, vesting or otherwise and to take such other action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes.
11.Notices.  Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and

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EXHIBIT 10.26.1

fees prepaid.  A notice shall be addressed to the Company, Attention: General Counsel, at its principal executive office and to the Participant at the address that he or she most recently provided to the Company.
12.Entire Agreement.  This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof.  They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.
13.Waiver.  No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.
14.Successors and Assigns.  The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Participant, the Participant's assigns and the legal representatives, heirs and legatees of the Participant's estate, whether or not any such person shall have become a party to this Agreement and agreed in writing to be joined herein and be bound by the terms hereof.
15.Choice of Law; Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction.
SUBJECT TO THE TERMS OF THIS AGREEMENT, THE PARTIES AGREE THAT ANY AND ALL ACTIONS ARISING UNDER OR IN RESPECT OF THIS AGREEMENT SHALL BE LITIGATED IN THE FEDERAL OR STATE COURTS IN NEW YORK.  BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR ITSELF, HIMSELF OR HERSELF AND IN RESPECT OF ITS, HIS OR HER PROPERTY WITH RESPECT TO SUCH ACTION.  EACH PARTY AGREES THAT VENUE WOULD BE PROPER IN ANY OF SUCH COURTS, AND HEREBY WAIVES ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH ACTION.  
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
16.Restricted Shares Subject to Plan.  By entering into this Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan.  The Restricted Shares are subject to the Plan.  The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference (subject to the limitation set forth in Section 18).  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.  The Participant has had the opportunity to retain counsel, and has read carefully, and understands, the provisions of the Plan and the Agreement. 
17.Amendment.  The Committee may amend or alter this Agreement and the Restricted Shares granted hereunder at any time; provided that, subject to Articles 11, 12 and

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EXHIBIT 10.26.1

13 of the Plan, no such amendment or alteration shall be made without the consent of the Participant if such action would materially diminish any of the rights of the Participant under this Agreement or with respect to the Restricted Shares.
18.Section 83(b) Election.  In the event the Participant determines to make an election with the Internal Revenue Service (the “IRS”) under Section 83(b) of the Code and the regulations promulgated thereunder (the “83(b) Election”), the Participant shall provide a copy of such form to the Company promptly following its filing, which is required under current law to be filed with the IRS no later than thirty (30) days after the Grant Date of the Restricted Shares.  The Participant is advised to consult with his or her own tax advisors regarding the purchase and holding of the Restricted Shares, and the Company shall bear no liability for any consequence of the Participant making an 83(b) Election or failing to make an 83(b) Election.
19.Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
20.Signature in Counterparts/Electronic Signature.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement may be signed electronically with the same force and effect as if signed manually.

5

EXHIBIT 10.26.1

IN WITNESS WHEREOF, the parties hereto have executed this Restricted Stock Award Agreement as of the Grant Date set forth in Schedule A.

FORTEGRA FINANCIAL CORPORATION, a Delaware corporation

By:  __________________________
Name:
Title:

Acknowledged and agreed to by the Participant as
of the Grant Date set forth on Schedule A:

    
Print Name:
    

6

EXHIBIT 10.26.1

Schedule A
	
		
	Grant Date:
	 

	Participant:
	 

	Plan:
	Fortegra Financial Corporation 2010 Omnibus Incentive Plan

	Number of Restricted Shares:
	 

	Vesting:
	Subject to the terms of this Agreement, one-third (1/3) of the Restricted Shares shall vest on the first, second and third anniversaries of the Grant Date.

7

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