CRYSTAL RUN HEALTH PLANS BROKER AGREEMENT

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1 CRYSTAL RUN HEALTH PLANS BROKER AGREEMENT Crystal Run Health Plan, LLC and Crystal Run Health Insurance Company, Inc. (collectively Crystal Run Health Plans ) hereby agree to contract with who is licensed as a New York State health insurance broker and who is an individual person or is organized under the laws of the State of (hereinafter Broker ) to solicit applications for group health insurance and self insurance administrative services offered by or through Crystal Run Health Plans. A. Definitions: 1. Contract means an insurance or health coverage contract between Crystal Run Health Plans and a Group under which Crystal Run Health Plans provides benefit plans to subscribers. 2. Group means an employer, welfare fund, trust or other entity that has entered into a Contract for the benefit of its employees, welfare fund members, trust beneficiaries or other entity members. 3. Products means insured and self-insured HMO, POS, EPO, PPO health benefit plans offered to large and small Group subscribers. B. Authority 1. This Agreement authorizes Broker to solicit applications for those plans offered by Crystal Run Health Plans only while properly licensed by and/or registered with the appropriate government agency or authority and to service such Contracts issued on those applications. Broker shall not perform the following acts on behalf of Crystal Run Health Plans: a. incur any indebtedness or liability on behalf of Crystal Run Health Plans; b. make, alter, bind, reject, accept or discharge any Contracts on behalf of Crystal Run Health Plans; c. commence or compromise any legal action in any manner pertaining to Crystal Run Health Plans business without prior written consent of Crystal Run Health Plans; d. change rates quoted by Crystal Run Health Plans; e. make any payment or extend the time for payment of any premium on behalf of Crystal Run Health Plans; f. waive payment in cash on behalf of Crystal Run Health Plans or any other obligation due; g. receive or collect any monies on behalf of Crystal Run Health Plans, except the initial premium as provided under Crystal Run Health Plans rules on insurance necessary to put the policy in force; h. submit to Crystal Run Health Plans any application which Broker has not personally reviewed and believes to be accurate and complete and that meet Crystal Run Health Plans rules and requirements; i. hold himself/herself out as a Broker of Crystal Run Health Plans in any manner or for any other purpose than is expressly described in this Agreement;

2 j. violate any federal or state statute, rule or regulation or any rule of Crystal Run Health Plans, involving Crystal Run Health Plans Products; k. modify or change any of Crystal Run Health Plans rules or requirements; l. withhold any monies or property of Crystal Run Health Plans; m. rebate or offer to rebate all or any part of a premium or deposit on a Contract issued or to be issued by Crystal Run Health Plans; n. induce or endeavor to induce any Crystal Run Health Plans policyholder or client to discontinue payment of premium or service fees or relinquish any Contract (except if replaced by another Crystal Run Health Plans Product); o. use any form of advertising bearing Crystal Run Health Plans name, other than that furnished by Crystal Run Health Plans, in negotiations, solicitations or advertising without such advertising being submitted to and approved by Crystal Run Health Plans. Advertising includes all forms of communication by any medium including, but not limited to, print, radio, television, internet, billboards, direct mail, business cards and stationery; p. prepare or render any premium notice; q. pay, settle or reject any claim for benefits under any insurance Contracts issued by Crystal Run Health Plans. 2. Licensure and Insurance At all times while this Agreement remains in effect, Broker shall maintain all valid New York State Insurance Department licenses and registrations, as well as any other licenses, permits or registrations necessary for fulfilling its duties and obligations hereunder. Broker shall immediately notify in writing Crystal Run Health Plans in the event that any such license, permit or registration is suspended or terminated, or if Broker is the subject of any disciplinary action initiated by the Department of Financial Services of the State of New York or any other regulatory or governmental body or court, or of any other material civil, criminal or administrative action involving Broker.. Broker shall also maintain at all times General Liability/Errors and Omissions insurance coverage in an amount not less than one million (1,000,000) dollars. Upon request, Broker shall provide Crystal Run Health Plans with a Certificate of Insurance evidencing said coverage. Broker shall immediately notify Crystal Run Health Plans in the event such liability insurance is terminated or modified. 3. Relationship of Parties Broker agrees to be governed in the performance of his/her duties by the terms and conditions of this Agreement, and by the rules established by Crystal Run Health Plans. Broker shall be considered an independent contractor for purposes of this Agreement. As an independent contractor, Broker reserves the right to exercise independent judgment as to the time, place and manner of soliciting applications for insurance. No other provisions of this Agreement or any rule or regulation of Crystal Run Health Plans shall be construed to abridge this right or create the relationship of employer and employee. 4. Broker has no authority except as stated in this Agreement. No other authority may be implied from

3 the authority expressly granted herein. C. Privacy, Security and HIPAA Requirements Broker shall maintain the privacy and security of all health and financial information pertaining to Crystal Run Health Plan s members in accordance with applicable federal, state and local laws and regulations and in accordance with the terms of Appendix A of this Agreement. Broker further acknowledges and agrees that it serves as a business associate of Crystal Run Health Plans pursuant to 45 C.F.R. Parts 160 and 164 (the "HIPAA Regulations") and that Broker shall satisfy all terms and conditions set forth in Appendix A of this Agreement. Upon termination of this Agreement, Broker shall: a) if feasible, return or destroy all Protected Health Information as defined in Appendix A received from, or created or received by Broker on behalf of, Crystal Run Health Plans that Broker still maintains in any form, and Broker shall retain no copies of such information; or b) if Broker and Crystal Run Health Plans reasonably determine that such return or destruction is not feasible, extend the protections of Appendix A to such information and limit further uses and disclosures to those purposes that make the return or destruction of the Protected Health Information infeasible. D. Withdrawal Crystal Run Health Plans may at its discretion withdraw from Broker the privilege of writing a particular type of policy. Crystal Run Health Plans may withdraw from any territory, product line or product design without liability to Broker. E. Termination Broker or Crystal Run Health Plans may immediately terminate Broker s appointment under this Agreement, with or without cause, by written notice sent by ordinary mail to the last known address of the other party. Upon termination, Broker shall immediately deliver to Crystal Run Health Plans or its representatives all rate manuals, policyholder record cards, application forms, letters, written correspondence with policyholders, clients and representatives of Crystal Run Health Plans, records, sales material, equipment and all other supplies and materials connected with or belonging to Crystal Run Health Plans or its affiliates. Termination of appointment as used in this Agreement shall mean termination due to either cancellation of the appropriate license or registration required above or termination of this entire Agreement pursuant to this paragraph E. F. Compensation 1. Commissions payable to Broker shall be subject to the terms and conditions of this Agreement, and established rules of Crystal Run Health Plans. 2. To be entitled to commissions, this Agreement must be in effect, Broker s name must appear as Soliciting Agent on the application for the policy, Broker must be the broker of record for the Group when commissions and fees become payable, Broker must provide services to the Group in that capacity, and the policy must have been secured through the efforts of said Broker.

4 3. Commissions and/or service fees shall be paid to Broker only after the appropriate premium or deposit has been paid in cash and accepted by Crystal Run Health Plans. All commission compensation shall be due and payable after premium is received and credited by Crystal Run Health Plans. All commission compensation shall be calculated based upon premium received by Crystal Run Health Plans and in accordance with Crystal Run Health Plans rules and protocols for crediting premium; said rules and protocols may be amended from time to time. 4. No commission and/or service fee shall be payable on any premium paid in advance until the due date of the premium and then only if Crystal Run Health Plans retains such premium. 5. Crystal Run Health Plans shall have the right, at its discretion, to prospectively change at any time any vesting provisions, commission schedules and bonus programs. 6. If Crystal Run Health Plans returns premium or deposits on a policy, for any reason whatsoever, the Broker shall repay Crystal Run Health Plans on demand any commissions or service fee received on such premium or deposit. 7. In the event of conversion or replacement, commissions shall be allowed in accordance with the rules of Crystal Run Health Plans in force at the effective date of the conversion or replacement. 8. Commissions on policies reinstated after 90 days of the due date of the first premium in default are payable to the original broker only if the policy is wholly reinstated through the efforts of the original broker. 9. No commission shall be payable on any premium paid to Crystal Run Health Plans via a third party collection agency. Credit memos applied to a Group invoice as a write-off or bad debt write- off are not eligible for commissions. 10. No commission shall be payable for any interest earned or due on any unpaid premium charges. 11. Crystal Run Health Plans shall have the right to offset against any payments to broker any amounts due to Crystal Run Health Plans by Broker. G. Continuous Payment of Commissions Crystal Run Health Plans shall only pay commissions provided that: (1) the Broker is living or if a corporation, that the corporation remains an entity; (2) the Broker continues to service the businesses pursuant to the terms of this Agreement; (3) the Broker is actively and continuously engaged as a licensed agent or broker in the insurance business and services the active business written pursuant to this Agreement; and (4) the Broker is not terminated as defined by this Agreement. Notwithstanding the above paragraph, if Broker dies, becomes totally disabled, or is absent due to service in the U.S. Armed Forces during the Agreement term, money otherwise payable to Broker will be payable to Broker s estate, spouse or other authorized assignee, provided the executor or administrator of the estate, Broker s spouse, or other assignee presents evidence of a valid New York Broker s license. No moneys will be paid under this Agreement to any person who does not possess a valid New York Broker s license.

5 H. Indebtedness of Broker Crystal Run Health Plans shall have a first lien on all commissions and any other compensation payable hereunder for any debt due from Broker to Crystal Run Health Plans, to any of Crystal Run Health Plans affiliates, and to any other person or corporation acting on behalf of Crystal Run Health Plans or any of its affiliates. Such debt shall include loans and advances made to Broker and charges made to Broker s commission account. Such debt shall also include any actual expenses incurred and paid by Crystal Run Health Plans as a result of Broker s breach of the prohibitions listed in Paragraph B.1., above. Crystal Run Health Plans may at any time deduct from any monies payable under this Agreement and any supplement and/or amendment hereto, any such debts due from Broker, including interest on such debts. The lien shall not be eliminated by the termination of Broker s appointment under this Agreement. This provision shall not be construed in any way to limit any indebtedness of Broker to the value of the commissions and other compensation payable under this Agreement. In the event of termination of Broker s appointment, the unpaid balance of Broker s indebtedness shall be immediately due and payable without demand or notice. I. Accounting Crystal Run Health Plans shall provide to Broker, on a monthly or otherwise regular basis, a statement setting forth commissions earned and payable to Broker along with an accounting of charges to Broker s commission account. J. Amendments/Assignments No modifications or amendments/assignments of this Agreement nor any assignment of commissions payable hereunder shall be valid unless approved in writing by an authorized officer of Crystal Run Health Plans. K. Reservation of Rights Crystal Run Health Plans specifically reserves the following rights, subject to appropriate regulatory approval where applicable: 1. To discontinue or withdraw from sale any certificate, contract, marketing material, proposal or special marketing concept; 2. To modify, change, cancel or amend any certificate or contract; 3. To determine all terms, conditions and limitations on any certificate or contract; 4. To modify, change or amend the terms and condition under which any certificate or contract may be offered; 5. To modify, change, amend, delete or add any Crystal Run Health Plans procedure;

6 6. To require Brokers to sign an acknowledgment of relationship or any other disclosure forms which Crystal Run Health Plans deems necessary; 7. Upon reasonable notice, to audit and make copies of any and all records in the Broker s possession which relate to the Broker s performance of its obligations under this Agreement; 8. To decline Broker s request to appoint a sub or Broker. L. Indemnification Broker agrees to indemnify, defend and hold harmless Crystal Run Health Plans and its directors, officers, employees, agents, independent contractors, affiliated companies, successors and assigns from and against any and all claims, demands, penalties, liabilities, losses, damages, suits, settlements, judgments, expenses, or costs, including reasonable attorney s fees, which may arise from: (i) the acts or omissions related to Broker s services, (ii) any unauthorized express or implied Product warranties by Broker, (iii) any breach of Broker s agreements, obligations, representations and warranties hereunder, or (iv) any Broker violation of federal, state or local laws, regulations or requirements by either Broker or Broker s brokers, officers, employees, agents or independent contractors. M. Vesting There is no vesting of commissions. Commissions or service fees are payable only if Broker provides health coverage broker services to the Group and is considered the agent of record by the policyholder. N. Group Premium 1. The term group premium means premiums on policies of group health coverage. 2. Premiums received under all such policies shall be totaled and considered as a single group premium where such policies issued by Crystal Run Health Plans cover: (a) the same or substantially the same individuals; (b) employees of the same or affiliated employers; or (c) a combination of (a) and (b). Commissions shall be computed in the same manner as if such premium had been paid on a single policy. O. Policy Year The term policy year shall mean a 12 month period commencing with the effective date of insurance under the group policy or policies except in situations where Crystal Run Health Plans has agreed to a new anniversary date for a Group. P. Miscellaneous 1. All parties will comply with all federal, state, municipal and local laws, rules and regulations that may be applicable to this Agreement. 2. The failure of either party to exercise any rights hereunder shall not constitute a waiver of the rights granted herein with respect to any subsequent default. 3. Section titles as to the subject matter of particular sections herein are for convenience only and are in no way to be construed as part of this Agreement or as a limitation of the scope of the particular sections to which they refer.

7 4. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. Any lawsuit arising from this Agreement shall be commenced in a court of the State of New York located in New York, Orange County, or in a United States District Court of the Southern or Eastern District of New York. 5. If any of the provisions of this Agreement are held to be invalid or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby. 6. During the term of this Agreement and at all times thereafter Broker agrees not, to directly or indirectly, disclose to any person or entity any confidential information which it has obtained by reason of its association with Crystal Run Health Plans about the business of Crystal Run Health Plans or about Crystal Run Health Plans insureds or Groups nor shall Broker use such information in any way that may adversely affect Crystal Run Health Plans, except that Broker may cooperate with any bona fide legal or regulatory proceeding. 7. This Agreement supersedes all previous agreements between Broker and Crystal Run Health Plans.

8 CRYSTAL RUN HEALTH PLAN, LLC and CRYSTAL RUN HEALTH INSURANCE COMPANY, INC. By: INDIVIDUAL BROKER By: Broker Signature Social Security Number OR Corporate Broker or Corporate Brokerage Agency By: President Tax Identification Number OR Partnership (All Partners Sign) By: By: By: By: Tax Identification Number

9 ATTACHMENT A COMMISSION SCHEDULE Small Group (2-50) Large Group (51+) 4% of Premium Paid Monthly 4% of Premium Paid Monthly

10 ATTACHMENT B BROKER OF RECORD PROCEDURES Submission and Confirmation Requirements Broker of Record letters must be on company letterhead and signed by the company President, an Officer, or other decision maker of the employer group and should include a fax number for confirmation purposes. The Broker of Record letter must be sent directly to Crystal Run Health Plans Sales Department. Broker of Record letters may be mailed, faxed, or scanned and ed. Mail: Crystal Run Health Plans 155 Crystal Run Road Middletown, NY Attn.: Sales Department Fax/ mireay@crystalrunhealthcare.com We cannot guarantee a Broker of Record change unless the letter is mailed, faxed, or scanned and ed directly to the Sales Department. Upon receipt of the Broker of Record letter, the Sales Department will mail or fax confirmation of the effective date of assignment to both the new and the previous broker. If you have not received your fax confirmation within 48 hours of submission, please contact the Sales Department at Broker of Record letters must be confirmed by the Sales Department, or they will not be honored. The previous broker has ten days from the date of the confirmation notice from the Sales Department to dispute the new assignment. Crystal Run Health Plans Sales Department will settle all disputes. Commission Payments The new Broker of Record will become eligible to receive commissions on the first day of the month following the Commissions Department s receipt of the Broker of Record letter, provided that the broker is licensed and appointed with Crystal Run Health Plans before the effective date of the Broker of Record letter. Commissions will not be paid retroactively on retroactive Broker of Record Letters. Monthly commission statements are mailed out by the fifteenth day of the month following the month in which the premium is received.

11 APENDIX A PRIVACY & SECURITY OF CRYSTAL RUN HEALTH PLANS MEMBER HEALTH & FINANCIAL INFORMATION 1. Definitions The following definitions shall apply to this Appendix A: "Protected Health Information" shall mean Individually Identifiable Health Information (as defined below) that is transmitted or maintained in any form or medium. However, it does not include Individually Identifiable Health Information in education records covered by the Family Educational Right and Pri vacy Act, as a me n d ed ( 20 U.S. C. 1232g), records described at 20 U.S.C. 1232g(a)(4)(B)(iv), and employment records held by a HIPAA covered entity in its role as an employer. Individually Identifiable Health Information shall mean health information, including demographic information collected from an individual, that: (a) is created or received by a health care provider, health plan (including Crystal Run Health Plans), employer or health care clearinghouse; and (b) relates to the past, present or future physical or mental health or condition of an individual, the provision of health care to an individual or the past, present or future payment for the provision of health care to an individual and that: (1) identifies the individual or (2) with respect to which there is a reasonable basis to believe the information can be used to identify the individual. Financial Information shall mean personally identifiable financial information and any list description or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information other than publicly available information. For purposes of this definition, personally identifiable financial information means any information other than Protected Health Information: (a) (b) (c) a consumer provides to Crystal Run Health Plans, or to Broker on behalf of Crystal Run Health Plans, to obtain an insurance product or service from Crystal Run Health Plans; about a consumer resulting from a transaction involving an insurance product or service between Crystal Run Health Plans, or Broker on behalf of Crystal Run Health Plans, and a consumer; or Crystal Run Health Plans, or Broker on behalf of Crystal Run Health Plans, otherwise obtains about a consumer in connection with providing an insurance product or service to that consumer. "Required by Law" shall mean a mandate contained in law that compels the use or disclosure of Protected Health Information and that is enforceable in a court of law. It includes, but is not limited to: court orders and court ordered warrants; subpoenas or summons issued by a court, grand jury, a governmental or tribal inspector general or an administrative body authorized to require the production of information; a civil or an authorized investigative demand; Medicare conditions of participation with respect to health care providers participating in the program; and statutes or regulations that require the production of information, including statutes or regulations that require such information if payment is sought under a government program providing public benefits.

12 2. Permitted Uses and Disclosures of Protected Health Information Broker may use or disclose Protected Health Information received or created by Broker pursuant to this Agreement solely for the following purposes: A. Broker may use or disclose Protected Health Information as necessary to carry out its responsibilities and duties under this Agreement. B. Broker may use or disclose Protected Health Information for its proper management and administration or to fulfill any present or future legal responsibilities of Broker; provided, however, that if Broker discloses Protected Health Information to a third party under this Paragraph 2(B), Broker shall: (i) (ii) (iii) in advance of the disclosure, notify the Crystal Run Health Plans Privacy Office in writing of the disclosure and supply to Crystal Run Health Plans such information as may be requested by the Crystal Run Health Plans Privacy Office to enable Crystal Run Health Plans to account for the disclosure in accordance with 45 C.F.R ; obtain reasonable assurances from the person to whom the Protected Health Information is disclosed that it will be held confidentially and used or further disclosed only as Required by Law or for the purpose for which it was disclosed; and obligate such person to notify Broker of any instances of which it is aware in which the confidentiality of the Protected Health Information has been breached. C. Broker may use or disclose Protected Health Information as Required By Law provided that Broker, in advance of the disclosure, notifies the Crystal Run Health Plans Privacy Office in writing of the disclosure and supplies to Crystal Run Health Plans such information as may be requested by the Crystal Run Health Plans Privacy Office to enable to Crystal Run Health Plans to account for the disclosure in accordance with 45 C.F.R Disclosures Require by Law, include, but are not limited to disclosures pursuant to: court orders and court ordered warrants; subpoenas or summons issued by a court, grand jury, a governmental or tribal inspector general or an administrative body authorized to require the production of information; a civil or an authorized investigative demand; Medicare conditions of participation with respect to health care providers participating in the program; and statutes or regulations that require the production of information, including statutes or regulations that require such information if payment is sought under a government program providing public benefits. Broker agrees that it will comply with all applicable state and federal laws regarding the use and disclosure of Protected Health Information to the extent that such laws are not pre-empted by the HIPAA Regulations when using or disclosing Protected Health Information pursuant to this Agreement. Broker shall not use Protected Health Information received or created by B r o k e r pursuant to this Agreement for data aggregation services. Data aggregation services means the combining of Protected Health Information by Broker with the protected health information received by Broker in

13 its capacity as a business associate of another HIPAA covered entity, to permit data analyses that relate to the health care operations of Crystal Run Health Plans and the other entity. Broker shall also not de-identify Protected Health Information received or created by Broker pursuant to this Agreement or use such de-identified Protected Health Information for any purpose. 3. Disclosure to Agents In the event that Broker discloses to any agent, including a subcontractor, Protected Health Information received from, or created or received by Broker on behalf of, Crystal Run Health Plans, Broker shall obligate each such agent to agree to the same restrictions and conditions regarding the use and disclosure of Protected Health Information as are applicable to Broker under this Appendix. 4. Safeguards Broker shall use appropriate administrative, technical and physical safeguards, consistent with the size and complexity of Broker s operations, to prevent the use or disclosure of Protected Health Information in any manner inconsistent with the terms of this Appendix A. Broker shall maintain a written security program describing such safeguards, a copy of which shall be available to Crystal Run Health Plans upon request. 5. Reporting of Improper Disclosures Broker shall report to Crystal Run Health Plans any unauthorized or improper use or disclosure of Protected Health Information within one (1) business day of the date on which Broker becomes aware of such use of disclosure. Broker shall report such uses or disclosures to Crystal Run Health Plans by telephone by calling the Crystal Run Health Plans Privacy Tip Line at (212) and in writing to: Crystal Run Health Plans Privacy Office, P.O. Box 2871, New York, N.Y In the event that the telephone notice is received by Crystal Run Health Plans through an automated recording device, the notice must include the name and telephone number of the appropriate contact person of the Broker and the reason for the call. Broker shall mitigate, to the extent practicable, any harmful effect that is known to Broker of a use or disclosure of Protected Health Information by Broker in violation of this Appendix. 6. Access to Protected Health Information by Crystal Run Health Plans. A. Within ten (10) days of a request by Crystal Run Health Plans, Broker shall provide to Crystal Run Health Plans all Protected Health Information in Broker s possession necessary for Crystal Run Health Plans to provide Crystal Run Health Plans members or their representatives with access to or copies thereof in accordance with 45 C.F.R B. In advance of any disclosure of Protected Health Information that is not for a purpose necessary to carry out Broker s responsibilities and duties under this Agreement, Broker shall notify the Crystal Run Health Plans Privacy Office in writing of the disclosure and supply to Crystal Run Health Plans such information as may be requested by the Crystal Run Health Plans Privacy Office regarding the disclosure to enable Crystal Run Health Plans to maintain an accounting of disclosures in accordance with 45 C.F.R In addition, within ten (10) days of any request by Crystal Run Health Plans, Broker shall provide to Crystal Run Health Plans all information and records in Broker s possession necessary for Crystal Run Health Plans to provide Crystal Run Health Plans members or their representatives with an accounting of disclosures thereof in accordance with 45 C.F.R

14 C. Within ten (10) days of a request by Crystal Run Health Plans, Broker shall provide to Crystal Run Health Plans all Protected Health Information in Broker s possession necessary for Crystal Run Health Plans to respond to a request by a Crystal Run Health Plans member to amend such Protected Health Information in accordance with 45 C.F.R At Crystal Run Health Plans direction, Broker shall incorporate any amendments to a Crystal Run Health Plans member's Protected Health Information made by Crystal Run Health Plans into the copies of such information maintained by Broker. 7. Access by HHS Broker shall make its internal practices, books and records relating to the use and disclosure of Protected Health Information received from Crystal Run Health Plans, or created or received by Broker on behalf of Crystal Run Health Plans, Crystal Run Health Plans or to the United States Department of Health and Human Services in accordance with the Health Insurance Portability and Accountability Act of 1996 and the regulations promulgated thereunder. 8. Financial Information A. Broker acknowledges and agrees that it is required by law to comply with all applicable requirements of New York State Insurance Regulation 169, including but not limited to providing notice and opportunity to opt out to the consumer or customer, with respect to Broker s use and disclosure of Financial Information. For purposes of this Paragraph 8, a consumer is an individual who seeks to obtain, obtains or has obtained an insurance product or service, directly or through a legal representative, from Crystal Run Health Plans (or through Broker on behalf of Crystal Run Health Plans), and a customer is a consumer with a continuing relationship, as defined by 11 N.Y.C.R.R (h) (i), with Crystal Run Health Plans. B. Notwithstanding Paragraph 8(A) of this Appendix A, Broker shall not be subject to the notice and/or opt out requirements of Regulation 169 if Broker discloses Financial Information regarding consumers and customers only to Crystal Run Health Plans or Crystal Run Health Plans affiliates in accordance with 11 N.Y.C.R.R (p)(2), or pursuant to an exception set forth at 11 N.Y.C.R.R , or provided that the disclosure is within the scope of its agency relationship with Crystal Run Health Plans and complies with Crystal Run Health Plans prevailing privacy notice provisions relating to financial information. For purposes of this paragraph, the parties acknowledge that Crystal Run Health Plans complies with, and provides the notices required by, New York State Insurance Regulation 169 with respect to its customers and consumers. 9. Security Standards Broker agrees to comply with the requirements of 45 C.F.R. Parts 160 and 164 pertaining to the standards for the security of electronic Protected Health Information. Broker shall: A. Implement administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of electronic Protected Health Information that it creates, receives, maintains, or transmits on behalf of Crystal Run Health Plans; B. Ensure that any agent, including a subcontractor, to whom it provides electronic Protected Health Information agrees to implement reasonable and appropriate safeguards to protect such electronic Protected Health Information; C. Promptly report to Crystal Run Health Plans any security incident involving electronic Protected

15 Health Information of which it becomes aware; and D. Comply with any other requirements that the Secretary of Health and Human Services may require from time to time with respect to electronic Protected Health Information by the issuance of additional guidance or regulations pursuant to HIPAA. 10. Electronic Data Interchange Broker shall satisfy all applicable provisions of the HIPAA standards for electronic transactions and code sets, also known as the Electronic Data Interchange (EDI) Standards, codified at 45 C.F.R. Part 162. Broker further agrees to ensure that any agent, including a subcontractor, that conducts standard transactions, as such term is defined at 45 C.F.R , on its behalf will comply with the EDI standards. 11. Termination If Crystal Run Health Plans reasonably determines that Broker has breached a material term of this Appendix A, including, without limitation, any provision governing the use and disclosure of Protected Health Information, Crystal Run Health Plans may immediately terminate this Agreement. In the alternative, Crystal Run Health Plans at its option may provide Broker with written notice specifying the nature of the breach and allow Broker the opportunity to cure the breach. If Broker fails to cure such breach within thirty (30) days of Crystal Run Health Plans written notice, Crystal Run Health Plans may immediately terminate this Agreement. 12. Return of Protected Health Information Upon Termination Upon termination of this Agreement, Broker shall: (a) if feasible, return or destroy all Protected Health Information received from, or created or received by Broker on behalf of, Crystal Run Health Plans that Broker still maintains in any form, and Broker shall retain no copies of such information; or (b) if Broker and Crystal Run reasonably determine that such return or destruction is not feasible, extend the protections of this Appendix A to such information and limit further uses and disclosures to those purposes that make the return or destruction of the Protected Health Information infeasible. 13. Construction This Appendix is intended to reflect the applicable requirements of the HIPAA Regulations and New York State Insurance Regulation 169. In the event of any inconsistency between the definitions and terms of this Appendix other than the definition of Financial Information and Paragraph 8, and the definitions and mandatory provisions of the HIPAA Regulations, as amended, the HIPAA Regulations shall control. In the event of any inconsistency between the definition of Financial Information and the terms of Paragraph 8 of this Appendix and the terms of New York State Insurance Regulation 169, as amended, the terms of New York State Insurance Regulation 169 shall control. In the event that Crystal Run Health Plans believes in good faith that any provision of this Appendix fails to comply with the then current requirements of the HIPAA Regulations and/or New York State Insurance Regulation 169, Crystal Run Health Plans shall have the right to amend the terms of this Appendix as necessary and appropriate to bring it into compliance.

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