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(b) Neither Sponsor nor Covered Entityshall request Business Associate to use or disclose PHI in any rnanner that would not be permitted or required by law if done by covered Entity, (c) Covered 'Entity shall notify Business Associate in writing of any restriction to the use or disclosure of PI -11 that Covered Entityhas agreed to in accordance with e15 CTR § 164.522. rND-F'MNjfI AjjQ-N. (ti) Business Associate agrees to indemnify, defend, and hold harmless the covered Esutity, its trustees, officers, directors, employees, agents, or representatives, from anyclaim or penaltyarising out of any improper use and/or disclosure of PI -H r"rt violation of the PrivacyRegulation, to the extent that such improper use and/or disclosure resulted from Business Associate's negligence or failure to comply with the teams of this Agreement or the Privacy Regulation. (b) The Sponsor and Covered Entity agree to indemnify, defend and hold harmless Business Associate and/or all of Business Associate's officers, directors, employees, agents, or representatives, from any claim or penalty from any improper use anti/or disclosure of PPII, to the extent that such improper use and/or disclosure resulted from the Sponsor's or Covered Emityrs negligence, failure to comply with the terms of this Agreement or the Privacy Regulation, or was based upon the Sponsor's or Covered Entity's written direction to use and/or disclose PI -11 in the manner challenged. SLIORM Business Associate agrees to; a) Implement safeguards that reasonably and appropriately protect the confidentiality; integrity, and availability of the electronic PHI that it creates, receives, maintains, or transnuts on behalf of the Covered Entity; u) Ensure that any Subcontractor, to whom it provides this infornlation agrees to implement reasonable and appropriate safeguards; iii) Report on a quarterly basis to the Covered Entity, in writing, any Security Incident involving Covered Entity's data. If, however, a Security Incident results in the unauthorized disclosure of Unsecured PHI, Business Associate shall notify Covered Entity in accordance with the Breach notification provisions below. iv) Notify Covered Entity no latter than ten (10) days after discovery of a Breach of Unsecured PER,' v) Performthe four factor riskassessrnent of anyMaeh that is discovered in accordance wth the HIPAA Rules to determine if notification is required, and advise Covered Entityof its findings. Covered Entity has 60 flays from the discovery date of s. reportable Breach to report said Breach to tine Individual and 1-I1-1.8 (ifl3reach involves 500 or more Individuals.) I<.unnwi & Assaniaw - tireme 40,151271 business Assoeli , Commut (Scatti nday) (Rev.07/29/13j Page 5 of S