Document:

Exhibit 10.3

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

          This Second Amendment to the Employment Agreement is effective the 17th day of November, 2006 (the “Second Amendment”), by and between MICROS SYSTEMS, INC., a Maryland corporation, with offices located at 7031 Columbia Gateway Drive, Columbia, MD 21046 (hereinafter referred to as the “Company”), and Thomas L. Patz, whose address is 7031 Columbia Gateway Drive, Columbia, Maryland 21046 (hereinafter referred to as the “Executive”).

          WHEREAS, the Executive and the Company entered into an Employment Agreement dated May 28, 1997, as amended by the First Amendment to the Agreement dated October 1, 1998 (individually and collectively, the “Agreement”);

          WHEREAS, the Executive agrees to the changes to the Agreement as provided in this Second Amendment.

          NOW, THEREFORE, the Company and the Executive, for good and valuable consideration, and pursuant to the terms, conditions, and covenants contained herein, hereby agree as follows:

1.           Section 16(a) of the Agreement shall be amended to add a new Section 16(a)(1) to read in its entirety as follows, and the remainder of Section 16(a) of the Agreement shall be renumbered (2) through (4) accordingly:

	
  
 
  	
  
“(1)
  	
  
“Change in Control” shall   mean the occurrence of any of the following events:
  

	
  
 
  	
  
          a)          Any   “person” (as such term is used in sections 13(d) and 14(d) of the Securities   Exchange Act of 1934 (the “Exchange Act”)) becomes a “beneficial owner” (as   defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of   securities of the Company representing 40% or more of the voting power of the   then outstanding securities of the Company; provided that a Change in Control   shall not be deemed to occur as a result of a transaction in which the   Company becomes a subsidiary of another corporation and in which the   stockholders of the Company, immediately prior to the transaction, will   beneficially own, immediately after the transaction, shares entitling such   stockholders to more than 60% of all votes to which all stockholders of the   parent corporation would be entitled in the election
of directors (without   consideration of the rights of any class of stock to elect directors by a   separate class vote);
  
	
   
  	
  
 
  
	
  
 
  	
  
          b)          The   consummation of (i) a merger or consolidation of the Company with another   corporation where the stockholders of the Company, immediately prior to the   merger or consolidation, will not beneficially own, immediately after the   merger or consolidation, shares entitling such stockholders to more than 60%   of all votes to which all stockholders of the surviving corporation would be   entitled in the election of directors (without consideration of the rights of   any class of stock to elect directors by a separate class vote), or where the   members of the Company’s Board of Directors, immediately prior to the merger   or consolidation, would not, immediately after the merger or consolidation,   constitute a majority of the board of directors of the surviving corporation,   (ii) a sale or other disposition of all or substantially all
of the assets of   the Company, or (iii) a liquidation or dissolution of the Company; or
  

	
  
 
  	
  
          c)          After   November 17, 2006, directors are elected such that a majority of the new   members of the Company’s Board of Directors shall be different than the   directors who were members of the Company’s Board of Directors immediately   prior to the election or nomination, unless the election or nomination for   election of each new director who was not a director was approved by a vote   of at least two-thirds of the directors then still in office who were   directors at the beginning of such period.”
  

	
  
2.
  	
  
Section 16(b)(4) of the   Agreement shall be amended in its entirety to read as follows:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
“(4)     By   the Executive for Good Reason or Other Reasons Unrelated to a Change in   Control.  The Executive may terminate   this Agreement (i) for Good Reason or (ii) upon fifteen (15) days prior   written notice, for any other reason, other than, in either case, that   provided in clause (5) below.”
  
	
  
 
  	
  
 
  
	
  
3.
  	
  
A new Section 16(b)(5)   shall be added to Section 16 of the Agreement to read as follows:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
“(5)     By   the Executive After a Change in Control.    At any time within the thirty (30) day period following a Change in   Control, the Executive may terminate this Agreement with or without Good   Reason.”
  
	
   
  	
  
 
  
	
  
4.
  	
  
Section 16(c)(3) and   16(c)(4) of the Agreement shall be amended in their entirety to read as   follows:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
“(3)     Payment Upon   Termination By The Company.  Except as   provided in clause (5) below, if the Company terminates the Executive’s   employment for any reason other than Good Cause, the Executive shall be   entitled to receive from the Company and the Company shall pay to the   Executive in one lump sum, within fifteen (15) days following the Executive’s   termination of employment, the sum of: (i) all of the salary payments   provided for in Sections 4 of this Agreement for the period beginning on the   date of the Executive’s termination of employment and through the expiration   date of the Agreement, as amended; and (ii) three times the eligible Target   Bonus for the fiscal year in which his employment was terminated.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
If the Company terminates Executive’s employment for   Good Cause, the Executive shall be entitled to salary through the date of   termination.  Any and all salary and   Target Bonus payments shall thereupon cease and terminate.
  
	
  
 
  	
  
 
  
	
   
  	
  
(4)     Payment   Upon Termination By The Executive.    Except as provided in clause (5) below, if the Executive terminates   his employment with the Company for Good Reason, he shall be entitled to   receive from the Company and the Company shall pay to the Executive in one   lump sum, within fifteen (15) days following the date of the Executive’s   termination of employment, the sum of: (i) all of the salary payments   provided for in Sections 4 of this Agreement for the period beginning on the   date of the Executive’s termination of employment and through the expiration   date of the Agreement, as amended; and (ii) three times the eligible Target   Bonus for the fiscal year in which his employment was terminated.
  

	
  
 
  	
  
Except as provided in clause (5) below, if the   Executive terminates this Agreement for any reason other than Good Reason, he   shall be entitled to salary through the date of termination.  Any and all salary and Target Bonus   payments shall thereupon cease and terminate.”
  
	
  
 
  	
  
 
  
	
  
5.
  	
  
A new Section 16(c)(5)   shall be added to Section 16 of the Agreement to read as follows:
  
	
  
 
  	
  
 
  
	
   
  	
  
“(5)     Payment   Upon Termination By The Executive After a Change in Control.  If the Executive terminates his employment   with the Company with or without Good Reason at any time within the thirty   (30) day period following a Change in Control, he shall be entitled to   receive from the Company and the Company shall pay to the Executive in one   lump sum, within fifteen (15) days following the Executive’s termination of   employment, 2.99 times the sum of (i) his highest annual base salary prior to   his date of termination and (ii) his eligible Target Bonus for the fiscal   year of his termination as provided for in Sections 4 and 5 of this   Agreement.  In addition, for a period   of thirty-six (36) months following the date of the Executive’s termination,   the Executive shall continue to receive the medical and dental coverage in   effect as of the date of the Executive’s termination (or generally
comparable   coverage) for himself and, where applicable, his spouse and dependents, at   the same premium rates as may be charged from time to time for employees of   the Company generally, as if the Executive had continued in employment during   such period.”
  
	
  
 
  	
  
 
  
	
  
6.
  	
  
All other provisions of   the Agreement shall remain in full force and effect.
  

[SIGNATURE PAGE FOLLOWS]

          IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the dates indicated below, the effective date of this Second Amendment being the 17th day of November, 2006.

	
  
 
  	
  
 
  	
  
COMPANY:
  	
  
 
  	
  
 
  
	
  
ATTEST:
  	
  
 
  	
  
MICROS SYSTEMS, INC.
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
   
 
	
  
 
  	
  
 
  	
  
By:
  	
  
 
  	
  
 
  	
  
(SEAL)
  
	
  

  	
   
  	
  
 
  	
  

  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
A.L. Giannopoulos
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
Chairman, President and
   Chief Executive Officer
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  [Corporate Seal]
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
EXECUTIVE:
  	
  
 
  	
  
 
  
	
  
WITNESS:
  	
  
 
  	
  
 
  	
  
THOMAS L. PATZEX-10.1

APPENDIX X

	 	 	 	 	 
	Agency Code 12000

Period

	 	7/1/1998 — 6/30/2007
	 	Contract No. C-015473

Funding Amount for Period $272,906,633

This is an AGREEMENT between THE STATE OF NEW YORK, acting by and through the Department of
Health, having its principal office at Corning Tower, Empire State Plaza, Albany, NY,
(hereinafter referred to as the STATE), and Care Plus Health Plan hereinafter referred to as the
CONTRACTOR), for modification of Contract Number

C-015473 as reflected in the attached revisions to Section I.B.1 of the Agreement and Appendices A,
A-2, E and L, and to extend the period of the contract through June 30, 2007.

All other provisions of said AGREEMENT shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT as of the dates appearing
under their signatures.

CONTRACTOR SIGNATURE STATE AGENCY SIGNATURE

     //s// Peter Haytaian     Peter Haytaian
Judith Arnold

Title: Chief Executive Officer Title: Deputy Commissioner

and President Division of Planning, Policy, & Resource Development

Date:11/16/06 Date:

State Agency Certification:

“In addition to the acceptance of this contract, I
also certify that original copies of this signature
page will be attached to all other exact copies of
this contract.”

STATE OF NEW JERSEY

County of Middlesex

	 	 	 
	On the 16th day of November 2006, before me personally appeared Peter D. Haytaian to me

	 	

	 
	 	 
	 

	 
	 	 
	known, who being by me duly sworn, did depose and say that he/she resides at

	 	420 Little Silver Point Rd,
	
 
	 	 

that he/she is the President & CEO of the Care Plus,
LLC, the corporation described

herein which executed the foregoing instrument; and that he/she signed his/her. name thereto by
order of the board of directors of said corporation.

(Notary) Janet Sweeny

STATE COMPTROLLER SIGNATURE

1

	 	 	 	STATE OF NEW YORK AGREEMENT

Section I.B.1. is revised to read as follows: I. Conditions of
Agreement

B.1. This AGREEMENT is extended through June 30, 2007.

2

STANDARD CLAUSES FOR NYS CONTRACTS APPENDIX A

STANDARD CLAUSES FOR NYS CONTRACTS

The parties to the attached contract, license, lease, amendment or other agreement of any
kind (hereinafter, “the contract” or “this contract”) agree to be bound by the following clauses
which are hereby made a part of the contract (the word “Contractor” herein refers to any party
other than the State, whether a contractor, licenser, licensee, lessor, lessee or any other
party):

I. EXECUTORY CLAUSE. In accordance with Section 41 of the State Finance Law, the State
shall have no liability under this contract to the Contractor or to anyone else beyond funds
appropriated and available for this contract.

2. NON ASSIGNMENT CLAUSE. In accordance with Section 138 of the State Finance Law, this
contract may not be assigned by the Contractor or its right, title or interest therein assigned,
transferred, conveyed, sublet or otherwise disposed of without the previous consent, in writing,
of the State and any attempts to assign the contract without the State’s written consent are null
and void. The Contractor may, however, assign its right to receive payment without the State’s
prior written consent unless this contract concerns Certificates of Participation pursuant to
Article 5-A of the State Finance Law.

3. COMPTROLLER’S APPROVAL. In accordance with Section 112 of the State Finance Law (or, if
this contract is with the State University or City University of New York, Section 355 or Section
6218 of the Education Law), if this contract exceeds $50,000 (or the minimum thresholds agreed to
by the Office of the State Comptroller for certain S.U.N.Y. and C.U.N.Y. contracts), or if this is
an amendment for any amount to a contract which, as so amended, exceeds said statutory amount, or
if, by this contract, the State agrees to give something other than money when the value or
reasonably estimated value of such consideration exceeds $10,000, it shall not be valid, effective
or binding upon the State until it has been approved by the State Comptroller and filed in his
office. Comptroller’s approval of contracts let by the Office of General Services is required when
such contracts exceed $85,000 (State Finance Law Section 163.6.a).

	4.	 	WORKERS’ COMPENSATION BENEFITS. In accordance with Section 142 of the State Finance
Law, this contract shall be void and of no force and effect unless the Contractor shall
provide and maintain coverage during the life of this contract for the benefit of such
employees as are required to be covered by the provisions of the Workers Compensation Law.

	5.	 	NON-DISCRIMINATION REQUIREMENTS. To the extent required by Article 15 of the
Executive Law (also known as the Human Rights Law) and all other State and Federal statutory
and constitutional non-discrimination provisions, the Contractor will not discriminate against
any employee or applicant for employment because of race, creed, color, sex, national origin,
sexual orientation, age, disability, genetic predisposition or carrier status, or marital
status. Furthermore, in accordance with Section 220-e of the Labor Law, if this is a contract
for the construction, alteration or repair of any public building or public work or for the
manufacture, sale or distribution of materials, equipment or supplies, and to the extent that
this contract shall be performed within the State of New York, Contractor agrees that neither
it nor its subcontractors shall, by reason of race, creed, color, disability, sex, or national
origin: (a) discriminate in hiring against any New York State citizen who is qualified and
available to perform the work; or (b) discriminate against or intimidate any employee hired
for the performance of work under this contract. If this is a building service contract as
defined in Section 230 of the Labor Law, then, in accordance with Section 239 thereof,
Contractor agrees that neither it nor its subcontractors shall by reason of race,
creed, color, national origin, age, sex or disability: (a) discriminate in hiring against any
New York State citizen who is qualified and available to perform the work; or (b)
discriminate against or intimidate any employee hired for the performance of work under this
contract. Contractor is subject to fines of $50.00 per person per day for any
violation of Section 220-e or Section 239 as well as possible termination of this contract and
forfeiture of all moneys due hereunder for a second or subsequent violation.

6. WAGE AND HOURS PROVISIONS. If this is a public work contract covered by Article 8 of
the Labor Law or a building service contract covered by Article 9 thereof, neither Contractor’s
employees nor the employees of its subcontractors may be required or permitted to work more than
the number of hours or days stated in said statutes, except as otherwise provided in the Labor Law
and as set forth in prevailing wage and supplement schedules issued by the State Labor Department.
Furthermore, Contractor and its subcontractors must pay at least the prevailing wage rate and pay
or provide the prevailing supplements, including the premium rates for overtime pay, as determined
by the State Labor Department in accordance with the Labor Law.

7. NON-COLLUSIVE BIDDING CERTIFICATION. In accordance with Section 139-d of the State
Finance Law, if this contract was awarded based upon the submission of bids, Contractor affirms,
under penalty of perjury, that its bid was arrived at independently and without collusion aimed at
restricting competition. Contractor further affirms that, at the time Contractor submitted its
bid, an authorized and responsible person executed and delivered to the State a non-collusive
bidding certification on Contractor’s behalf.

8. INTERNATIONAL BOYCOTT PROHIBITION. In accordance with Section 220-f of the Labor Law
and Section 139-h of the State Finance Law, if this contract exceeds $5,000, the Contractor
agrees, as a material condition of the contract, that neither the Contractor nor any substantially
owned or affiliated person, firm, partnership or corporation has participated, is participating,
or shall participate in an international boycott in violation of the federal Export Administration
Act of 1979 (50 USC App. Sections 2401 et seq.) or regulations thereunder. If such Contractor, or
any of the aforesaid affiliates of Contractor, is convicted or is otherwise found to have violated
said laws or regulations upon the final determination of the United States Commerce Department or
any other appropriate agency of the United States subsequent to the contract’s execution, such
contract, amendment or modification thereto shall be rendered forfeit and void. The Contractor
shall so notify the State Comptroller within five (5) business days of such conviction,
determination or disposition of appeal (2NYCRR 105.4).

9. SET-OFF RIGHTS. The State shall have all of its common law, equitable and statutory
rights of set-off. These rights shall include, but not be limited to, the State’s option to
withhold for the purposes of set-off any moneys due to the Contractor under this contract up to
any amounts due and owing to the State with regard to this contract, any other contract with any
State department or agency, including any contract for a term commencing prior to the term of this
contract, plus any amounts due and owing to the State for any other reason including, without
limitation, tax delinquencies, fee delinquencies or monetary penalties relative thereto. The State
shall exercise its set-off rights in accordance with normal State practices including, in cases of
set-off pursuant to an audit, the finalization of such audit by the State agency, its
representatives, or the State Comptroller.

	10.	 	RECORDS. The Contractor shall establish and maintain complete and accurate books,
records, documents, accounts and other evidence directly pertinent to performance under this
contract (hereinafter, collectively, “the Records”). The Records must be kept for the balance
of the calendar year in which they were made and for six (6) additional years thereafter. The
State Comptroller, the Attorney General and any other person or entity authorized to conduct
an examination, as well as the agency or agencies involved in this contract, shall have
access to the Records during normal business hours at an office of the Contractor

3

STANDARD CLAUSES FOR NYS CONTRACTS

within the State of New York or, if no such office is available, at a mutually agreeable
and reasonable venue within the State, for the term specified above for the purposes of
inspection, auditing and copying. The State shall take reasonable steps to protect from public
disclosure any of the Records which are exempt from disclosure under Section 87 of the Public
Officers Law (the “Statute”) provided that: (i) the Contractor shall timely inform an appropriate
State official, in writing, that said records should not be. disclosed; and (ii) said records
shall be sufficiently identified; and (iii) designation of said records as exempt under the
Statute is reasonable. Nothing contained herein shall diminish, or in any way adversely affect,
the State’s right to discovery in any pending or future litigation.

11. IDENTIFYING INFORMATION AND PRIVACY

NOTIFICATION. (a) FEDERAL EMPLOYER IDENTIFICATION NUMBER and/or FEDERAL SOCIAL SECURITY
NUMBER. All invoices or New York State standard vouchers submitted for payment for the sale of
goods or services or the lease of real or personal property to a New York State agency must include
the payee’s identification number, i.e., the seIler’s or lessor’s identification number. The number
is either the payee’s Federal employer identification number or Federal social security number, or
both such numbers when the payee has both such numbers. Failure to include this number or numbers
may delay payment. Where the payee does not have such number or numbers, the payee, on its invoice
or New York State standard voucher, must give the reason or reasons why the payee does not have
such number or numbers.

(b) PRIVACY NOTIFICATION. (1) The authority to request the above personal information from a seller
of goods or services or a lessor of real or personal property, and the authority to maintain such
information, is found in Section 5 of the State Tax Law. Disclosure of this information by the
seller or lessor to the State is mandatory. The principal purpose for which the information is
collected is to enable the State to identify individuals, businesses and others who have been
delinquent in filing tax returns or may have understated their tax liabilities and to generally
identify persons affected by the taxes administered by the Commissioner of Taxation and Finance.
The information will be used for; tax administration purposes and for any other purpose authorized
by law.

(2) The personal information is requested by the purchasing unit of the agency contracting to
purchase the goods or services or lease the real or personal property covered by this contract or
lease. The information is maintained in New York State’s Central Accounting System by the Director
of Accounting Operations, Office of the State Comptroller, 110 State Street, Albany, New York
12236.

12. EQUAL EMPLOYMENT OPPORTUNITIES FOR

MINORITIES AND WOMEN. In accordance with Section 312 of the Executive Law, if this contract
is: (i) a written agreement or purchase order instrument, providing for a total expenditure in
excess of $25,000.00, whereby a contracting agency is committed to expend or does expend funds in
return for labor, services, supplies, equipment, materials or any combination of the foregoing, to
be performed for, or rendered or furnished to the contracting agency; or (ii) a written agreement
in excess of $100,000.00 whereby a contracting agency is committed to expend or does expend funds
for the acquisition, construction, demolition, replacement, major repair or renovation of real
property and improvements thereon; or (iii) a written agreement in excess of $100,000.00 whereby
the owner of a State assisted housing project is committed to expend or does expend funds for the
acquisition, construction, demolition, replacement, major repair or renovation of real property and
improvements thereon for such project, then: .

(a) The Contractor will not discriminate against employees or applicants for employment because of
race, creed, color, national origin, sex, age, disability or marital status, and will undertake or
continue existing programs of affirmative action to ensure that minority group members and women
are afforded equal employment opportunities without discrimination. Affirmative action shall mean
recruitment, employment, job assignment, promotion, upgradings, demotion, transfer, layoff, or
termination and rates of pay or other forms of compensation;

(b) at the request of the contracting agency, the Contractor shall request each employment agency,
labor union, or authorized representative of workers with which it has a collective bargaining or
other agreement or understanding, to furnish a written statement that such employment agency,
labor union or representative will not discriminate on the basis of race, creed, color, national
origin, sex, age, disability or marital status and that such union or representative will
affirmatively cooperate in the implementation of the contractor’s obligations herein; and

(c) the Contractor shall state, in all solicitations or advertisements for employees, that, in the
performance of the State contract, all qualified applicants will be afforded equal employment
opportunities without discrimination because of race, creed, color, national origin, sex, age,
disability or marital status.

Contractor will include the provisions of “a”, “b”, and “c” above, in every subcontract over
$25,000.00 for the construction, demolition, replacement, major repair, renovation, planning or
design of real property and improvements thereon (the “Work”) except where the Work is for the
beneficial use of the Contractor. Section 312 does not apply to: (i) work, goods or services
unrelated to this contract; or (ii) employment outside New York State; or (iii) banking services,
insurance policies or the sale of securities. The State shall consider compliance by a contractor
or subcontractor with the requirements of any federal law concerning equal employment opportunity
which effectuates the purpose of this section. The contracting agency shall determine whether the
imposition of the requirements of the provisions hereof duplicate or conflict with any such
federal law and if such duplication or conflict exists, the contracting agency shall waive the
applicability of Section 312 to the extent of such duplication or conflict Contractor will comply
with all duly promulgated and lawful rules and regulations of the Governor’s Office of Minority
and Women’s Business Development pertaining hereto.

13. CONFLICTING TERMS. In the event of a conflict between the terms of the contract
(including any and all attachments thereto and amendments thereof) and the terms of this Appendix
A, the terms of this Appendix A shall control.

14: GOVERNING LAW. This contract shall be governed by the laws of the State of New York
except where the Federal supremacy clause requires otherwise.

15. LATE PAYMENT. Timeliness of payment and any interest to be paid to Contractor for late
payment shall be governed by Article 11-A of the State Finance Law to the extent required by law.

16. NO ARBITRATION. Disputes involving this contract, including the breach or alleged
breach thereof, may not be submitted to binding arbitration (except where statutorily authorized),
but must, instead, be heard in a court of competent jurisdiction of the State of New York

17. SERVICE OF PROCESS. In addition to the methods of service allowed by the State Civil
Practice Law & Rules (“CPLR”), Contractor hereby consents to service of process upon it by
registered or certified mail, return receipt requested. Service hereunder shall be complete upon
Contractor’s actual receipt of process or upon the State’s receipt of the return thereof by the
United States Postal Service as refused or undeliverable. Contractor must promptly notify the
State, in writing, of each and every change of address to which service of process can be made.
Service by the State to the last known address shall be sufficient. Contractor will have thirty
(30) calendar days after service hereunder is complete in which to respond.

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STANDARD CLAUSES FOR NYS CONTRACTS APPENDIX A

18. PROHIBITION ON PURCHASE OF TROPICAL HARDWOODS. The Contractor
certifies and warrants that all wood products to be used under this contract award will be in
accordance with, but not limited to, the specifications and provisions of State Finance Law §165.
(Use of Tropical Hardwoods) which prohibits purchase and use of tropical hardwoods, unless
specifically exempted, by the State or any governmental agency or political subdivision or public
benefit corporation. Qualification for an exemption under this law will be the responsibility of
the contractor to establish to meet with the approval of the State.

In addition, when any portion of this contract involving the use of woods, whether supply or
installation, is to be performed by any subcontractor, the prime Contractor will indicate and
certify in the submitted bid proposal that the subcontractor has been informed and is in
compliance with specifications and provisions regarding use of tropical hardwoods as detailed in
§165 State Finance Law. Any such use must meet with the approval of the State; otherwise, the bid
may not be considered responsive. Under bidder certifications, proof of qualification for
exemption will be the responsibility of the Contractor to meet with the approval of the State.

19. MACBRIDE FAIR EMPLOYMENT PRINCIPLES. In accordance with the MacBride Fair Employment
Principles (Chapter 807 of the Laws of 1992), the Contractor hereby stipulates that the Contractor
either (a) has no business operations in Northern Ireland, or (b) shall take lawful steps in good
faith to conduct any business operations in Northern Ireland in accordance with the MacBride Fair
Employment Principles (as described in Section 165 of the New York State Finance Law), and shall
permit independent monitoring of compliance with such principles.

20. OMNIBUS PROCUREMENT ACT OF 1992. 11 is the policy of New York State to maximize
opportunities for the participation of New York State business enterprises, including minority and
women-owned business enterprises as bidders, subcontractors and suppliers on its procurement
contracts.

Information on the availability of New York State subcontractors and suppliers is available from:

NYS Department of Economic Development

Division for Small Business 30 South Pearl St — 7th Floor
Albany, New York 12245 Telephone: 518-292-5220 Fax: 518-292-5884

http://www.empire.state.ny.us

A directory of certified minority and women-owned business enterprises is available from:

NYS Department of Economic Development

Division of Minority and Women’s Business Development

30 South Pearl St — 2nd Floor Albany, New York 12245 Telephone:
518-292-5250 Fax: 518-292-5803

http://www.empire.state.ny.us

The Omnibus Procurement Act of 1992 requires that by signing this bid proposal or contract, as
applicable, Contractors certify that whenever the total bid amount is greater than $1 million:

(a) The Contractor has made reasonable efforts to encourage the participation of New York State
Business Enterprises as suppliers and subcontractors, including certified minority and women-owned
business enterprises, on this project, and has retained the documentation of these efforts to be
provided upon request to the State;

(b) The Contractor has complied with the Federal Equal Opportunity Act of 1972 (P.L. 92-261), as
amended;

(c) The Contractor agrees to make reasonable efforts to provide notification to New York State
residents of employment opportunities on this project through listing any such positions with the
Job Service Division of the New York State Department of Labor, or providing such notification in
such manner as is consistent with existing collective bargaining contracts or agreements. The
Contractor agrees to document these efforts and to provide said documentation to the Slate upon
request; and

(d) The Contractor acknowledges notice that the State may seek to obtain offset credits from
foreign countries as a result of this contract and agrees to cooperate with the State in these
efforts.

21. RECIPROCITY AND SANCTIONS PROVISIONS. Bidders are hereby notified that if their
principal place of business is located in a country, nation, province, state or political
subdivision that penalizes New York State vendors, and if the goods or services they offer will
be substantially produced or performed outside New York State, the Omnibus Procurement Act 1994
and 2000 amendments (Chapter 684 and Chapter 383, respectively) require that they be denied
contracts which they would otherwise obtain. NOTE: As of May 15, 2002, the list of discriminatory
jurisdictions subject to this provision includes the states of South Carolina, Alaska, West
Virginia, Wyoming, Louisiana and Hawaii. Contact NYS Department of Economic Development for a
current list of jurisdictions subject to this provision.

22. PURCHASES OF APPAREL. In accordance with State Finance Law 162 (4-a), the State shall
not purchase any apparel from any vendor unable or unwilling to certify that (i) such apparel was
manufactured in compliance with all applicable labor and occupational safety laws, including, but
not limited to, child labor laws, wage and hours laws and workplace safety laws, and (ii) vendor
will supply, with its bid (or, if not a bid situation, prior to or at the time of signing a
contract with the State), if known, the names and addresses of each subcontractor and a list of
all manufacturing plants to be utilized by the bidder.

5

APPENDIX A-2

PROGRAM SPECIFIC CLAUSES

	 	 	Section IlI.N.2 is revised to
read as follows:	 

	2.	 	Targeted Verification	 

The CONTRACTOR shall verify the information taken by their marketers/facilitators with the
family or employer (if applicable), using a sample of applications, which include the
following three categories:

	 	•	 	Applications with non-applying children or adults (if applicable) that impact
eligibility.

	 	•	 	Applications with a self-declaration of income.

	 	•	 	Applications with a declaration of no income/letter of support.

CONTRACTORS that do not take applications from applicants other than through the mail shall not
be required to conduct verification phone calls provided such applications do not contain a high
volume of the above three categories as determined by the STATE. The STATE will
conduct special audits of the applications taken by these plans through the mail to determine
whether additional verification is required.

The CONTRACTOR shall conduct verification phone calls on a stratified sample of applications to
confirm the information provided by the applicant prior to its being submitted to the LDSS,
another health plan, or enrolled in CHPIus B. The CONTRACTOR may develop its own process for
conducting the verification phone calls. The sample may be drawn monthly or quarterly. For large
plans (more than 300 applications completed by facilitators per month) the sample shall be at
least 10 percent of all applications in the period (month or quarter). Smaller plans (less than
300 per month) will need to verify 30 applications in these categories, collectively, per
period. The CONTRACTOR is not required to track applications by the three categories above. That
is one option for drawing the sample. Another option is to take a random sample of all
applications at a percent believed to be high enough that the sample captures applications from
each of the three categories above. The CONTRACTOR’S methodology for completing the verification
phone calls shall be approved by the STATE prior to implementation and must be based on a
projected number of applications to be received within each category.

The CONTRACTOR shall over sample in the categories to be verified to permit replacement of those
the plan is unable to reach. The CONTRACTOR may drop and replace applicants they are unable to
verify due to an inability to reach the family after three attempts. There is no limit on the
number that can be replaced as long as the final sample meets the number agreed upon in the
CONTRACTOR’S plan approved by the STATE that shall be submitted pursuant to this agreement The
CONTRACTOR is required to provide information to the STATE on the dropped cases including the
number dropped in a period, the reasons for replacement (e.g., unable to contact, refused to
cooperate). The CONTRACTOR shall make at least three attempts to contact the ‘family at
different times of the day (e.g., morning, afternoon, evening) prior to dropping the case. The
replacement case shall fall within the same category as the sample case. For example, if the
dropped case includes non-applying people affecting eligibility, the replacement case shall
include non-applying people.

Applications must be verified by the CONTRACTOR on a prospective basis; however, the CONTRACTOR
is prohibited from delaying enrollment in order to implement such verification. The CONTRACTOR
shall determine the sample and conduct the calls on an ongoing basis so as not to delay
enrollment. The CONTRACTOR shall develop a methodology to conduct verification, based on the
expected number of applications in each category.

If the applicant concurs with all the information on the application, the CONTRACTOR is not
required to take additional steps to verify the information. The CONTRACTOR must still complete
the checklist.

If the CONTRACTOR, through a verification phone call, finds that the application includes
inaccurate information or misrepresentation of the applicant’s circumstances, the CONTRACTOR
must make best efforts to determine if the inaccuracy was due to actions of the
marketer/facilitator. The CONTRACTOR must investigate if the marketer/facilitator acted with the
intent to falsify the application. The CONTRACTOR must not enroll the applicant if the new
information renders them ineligible.

If the CONTRACTOR finds that the marketer/facilitator action did result in false information on
the application, the CONTRACTOR shall remove the employee as a facilitator immediately and
follow the CONTRACTOR’S process for employee disciplinary action. In addition, the CONTRACTOR
shall review one month of prior applications taken by that marketer/facilitator.

If evidence of fraud is found on any one of those applications, the CONTRACTOR shall review
an additional two months of prior applications taken by the marketer/facilitator.

If the intent is unclear or it is determined the marketer/facilitator made a mistake, the
CONTRACTOR shall retrain the employee immediately. The CONTRACTOR shall review all subsequent
applications submitted by the marketer/facilitator for the next month to ensure compliance. If
continued mistakes are found on those applications, the CONTRACTOR shall remove the employee as
a facilitator immediately and follow the CONTRACTOR’S employee disciplinary action procedures.
The review of individual marketer/facilitator applications shall encompass all applications for
the period and does not need to be sorted into the three categories above.

Verification of a specific facilitator’s applications cannot substitute for the CONTRACTOR’S
sample review required by this section of the AGREEMENT. The CONTRACTOR must make the
appropriate adjustments to claims for CHPlus B applications found to be ineligible and must
report their findings to the STATE. If CHPIus A, Medicaid, or CHPIus applicants appear
ineligible for those programs, the CONTRACTOR shall refer those cases to the appropriate LDSS
for review and action.

The CONTRACTOR shall protect applicants who have been subjected to facilitator fraud. For those
applications that are verified prior to enrollment the CONTRACTOR shall:

• Enroll applicants or forward to the LDSS those applications in which the information
is verified by the applicant.

	 	•	 	Enroll applicants or forward with corrections to the LDSS those applications in
which information was omitted by the facilitator, but the individual is still
eligible. The CONTRACTOR may obtain the corrected information over the phone,
initial the application, and send a copy of the updated information to the
applicant.	 

	 	•	 	Forward all signed Medicaid applications to LDSS batched according to whether
applicants appear eligible or ineligible.

For cases in which the CONTRACTOR retroactively reviewed the applications of a facilitator
found to have committed fraud, the CONTRACTOR shall:

• Do nothing with enrollees who confirm the information on the application.

• Inform the LDSS of any Medicaid enrollees who may not be eligible
based on the retrospective review.

	 	•	 	Allow CHPIus B enrollees to reapply if it appears that they may still be
eligible for coverage. Coverage for a CHPlus B enrollee may be continued for two
months while the new application is completed and processed. During this time any
CHPlus B applicant found to be eligible in a higher family contribution category will
be permitted to remain enrolled provided they remit the appropriate family
contribution. A new code will be added to the KIDS system to permit the CONTRACTOR to
track these children.	 

	 	•	 	Forward all new CHPIus A, Medicaid, and CHPIus applications to the LDSS with an
explanation of the results of the verification.	 

If during the course of the verification process, the CONTRACTOR identifies cases of fraud
committed by applicants and/or enrollees, those cases, with supporting evidence, shall be
submitted to the STATE.

	 	 	Section III.N.5 is revised to read
as follows: 5. Reports	 

The CONTRACTOR must submit quarterly reports on the results of these monitoring activities. The
report is due 30 days after the end of the quarter beginning immediately after the STATE has
approved the field monitoring programs. Thereafter, each quarterly report shall be due within 30
days following the end of the quarter. The reports shall include:

	 	•	 	The total number of applications received each month and the number of
applications requiring further review.

	 	•	 	The number of applications in each of the three categories to be verified.

	 	•	 	The number of observed interviews and/or secret shopping encounters.

This report will be added to the current list of reports, via certified letter to the
CONTRACTOR’S Chief Executive Officer, and subject to the 2 percent penalty for late
reports.

6

APPENDIX E

Financial Information

Sections A is revised to read as follows:

A. Care Plus Health Plan shall receive, for the period January 1, 2007 through June 30,
2007, an amount up to, but not to exceed, $15,800,000 to provide and administer a Child Health Plus
program for uninsured children in the counties identified in Appendix A-2, Section II.B.1 of this
AGREEMENT or as modified by the STATE. Payment of this amount is based on the CONTRACTOR meeting
the responsibilities provided in this AGREEMENT.

Additional Premium Information:

For Kings, New York, Queens and Richmond
county(ies): The total monthly premium shall be:
$109.85

The State share of the total monthly premium shall be $109.85 or the total monthly premium
for children in families with gross household income less than 160% of the federal poverty
level and children who are American Indians or Alaskan Natives (AI/AN).

The State share of the total monthly premium shall be $100.85 or the total monthly premium
minus $9 for children in families with gross household income between 160% and 222% of the
federal poverty level with a maximum of $27 per month per family. The State share
is the total monthly premium less $9 for each of the first three children. For
additional children, the State share is the total monthly premium.

The State share of the total monthly premium shall be $94.85 or the total monthly premium
minus $15 for children in families with gross household income between 223% and
250% of the federal poverty level with a maximum of $45 per month per family. The State
share is the total monthly premium less $15 for each of the first three children. For
additional children, the State share is the total monthly premium.

In the absence of an approved premium modification by the Department of Health and State
Insurance Department, the premium above or subsequent premium approved (whichever is in effect)
shall continue as the State’s subsidy through June 30, 2007.

7

Appendix L

Privacy and Confidentiality

Section II is revised as follows:

II. Effective April 14, 2003, the CONTRACTOR shall comply with the following agreement:

Federal Health Insurance Portability and Accountability Act (HIPAA)

Business Associate Agreement (“Agreement”)

This Business Associate Agreement between the New York State Department of Health and
Care Plus Health Plan hereinafter referred to as the Business Associate, is effective on
April 14, 2003 to June 30, 2007.

8

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