"ALL SECTIONS MARKED WITH TWO ASTERISKS ("**") REFLECT PORTIONS WHICH HAVE
BEEN REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION BY PROSPECT MEDICAL HOLDINGS, INC. AS PART OF A REQUEST FOR
CONFIDENTIAL TREATMENT."
LETTER OF AGREEMENT
SERVING AS ADDENDUM TO THE 1997 MEDICAL SERVICES AGREEMENT
BETWEEN BLUE CROSS OF CALIFORNIA AND
PROSPECT MEDICAL GROUP
FOR
CALIFORNIACARE, BLUE CROSS PLUS AND PERSONAL CALIFORNIACARE
This will serve as confirmation that BLUE CROSS OF CALIFORNIA ("BLUE CROSS") has
agreed to the following terms of the CaliforniaCare Medical Services Agreement
between BLUE CROSS and PROSPECT MEDICAL GROUP ("PARTICIPATING MEDICAL GROUP")
effective January 1, 1997.
Effective January 1 1997, BLUE CROSS shall increase professional capitation
rates (excluding Durational Benefit Plans, AIM, CalKids, and non-commercial
products such as Workers' Compensation, Medi-Cal and Medicare Risk) for
PARTICIPATING MEDICAL GROUP by [ ** ], which rates shall remain in effect
through December 31, 1997.
Effective January 1, 1998 BLUE CROSS shall increase the above mentioned rates
by another [ ** ] to remain in effect through December 31, 1999.
Upon acceptance of the parties, this Addendum shall become part of the
CaliforniaCare Medical Services Agreement between PARTICIPATING MEDICAL GROUP
and BLUE CROSS effective January 1, 1997.
BLUE CROSS PARTICIPATING MEDICAL
GROUP
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ M.D.
------------------------------- -------------------------------
Signature: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ Signature: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
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Title: Vice President Title: President
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Date: 2/13/97 Date: 11-26-96
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