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Section 12—Taxes And Assessments <br /> Section 12.1 Payment of Taxes and Expenses. In the event that any Taxes are assessed against United as a claim <br /> administrator in connection with United's services under this Agreement, including all topics identified in Section <br /> 12.3 Customer will reimburse United through the Bank Account for Customer's proportionate share of such Taxes <br /> (but not Taxes on United's net income).United has the authority and discretion to reasonably determine whether any <br /> such Tax should be paid or disputed. Customer will also reimburse United for a proportionate share of any cost or <br /> expense reasonably incurred by United in disputing such Tax,including costs and reasonable attorneys'fees and any <br /> interest, fines, or penalties relating to such Tax, unless caused by United's unreasonable delay or unreasonable <br /> determination to dispute such Tax. <br /> Section 12.2 Tax Reporting.In the event that the reimbursement of any benefits to Participants in connection with <br /> this Agreement is subject to Plan or employer based tax reporting requirements, Customer agrees to comply with <br /> these requirements. <br /> Section 12.3 State and Federal Surcharges, Fees and Assessments. The Plan is responsible for state or Federal <br /> surcharges, assessments, or similar Taxes imposed by governmental entities or agencies on the Plan or United, <br /> including, but not limited to, those imposed pursuant to The Patient Protection and Affordable Care Act of 2010 <br /> ("PPACA"), as amended from time to time. This includes the funding,remittance and determination of the amount <br /> due for PPACA required taxes and fees. <br /> Section 13—Indemnification <br /> Section 13.1 Customer Indemnifies United. Customer will indemnify and hold United harmless to the extent <br /> provided by North Carolina law against any and all losses, liabilities,penalties,fines,costs,damages, and expenses, <br /> United incurs, including reasonable attorneys' fees, which arise out of(i) Customer or its vendors', subcontractors' <br /> or authorized agents' gross negligence or willful misconduct in the performance of Customer or its vendors', <br /> subcontractors' or authorized agents' obligations under this Agreement or any other agreements entered into with <br /> such third parties on Customer's behalf(ii) Customer's material breach of this Agreement(iii)a breach of any other <br /> agreements United enters into with such third parties on Customer's behalf, all as determined by a court or other <br /> tribunal having jurisdiction of the matter(iv) third party claims brought against United as the claims administrator <br /> (e.g. a claim raised by the federal government based on the federal Medicare Secondary Payor laws). This provision <br /> shall survive the termination of this Agreement. <br /> Section 13.2 United Indemnifies Customer.United will indemnify Customer and hold Customer harmless against <br /> any and all losses,. liabilities, penalties, fines, costs, damages, and expenses, that Customer incurs, including <br /> reasonable attorneys'fees,which arise out of(i)United or its vendors' gross negligence or willful misconduct in the <br /> performance of United or its vendors',subcontractors' or authorized agents' obligations under this Agreement or(ii) <br /> United's material breach of this Agreement, all as determined by a court or other tribunal having jurisdiction of the <br /> matter. Notwithstanding the foregoing, Customer will remain responsible for payment of benefits and United's <br /> indemnification will not extend to indemnification of Customer or the Plan against any claims, liabilities,damages, <br /> judgments or expenses that constitute payment of Plan benefits. This provision shall survive the termination of this <br /> Agreement. <br /> Section 14—Plan Benefits Litigation <br /> Section 14.1 Litigation Against United. If a demand is asserted, or litigation or administrative proceedings are <br /> begun by a Participant or healthcare provider against United to recover Plan benefits related to its duties under this <br /> Agreement("Plan Benefits Litigation"),United will select and retain defense counsel to represent its interest. <br /> Section 14.2 Litigation Against Customer. If Plan Benefits Litigation is begun against Customer and/or the Plan, <br /> Customer will select and retain counsel to represent its interest. <br /> Section 14.3 Litigation Against United and Customer. If Plan Benefits Litigation is begun against the Plan and <br /> United jointly,and provided no conflict of interest arises between the parties, the parties may agree to joint defense <br /> counsel. If the parties do not agree to joint defense counsel, then each party will select and retain separate defense <br /> counsel to represent their own interests. <br /> 13 <br />