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V. BCBSF may offset any of Employer's funds held by BCBSF (including any amounts held <br />as a Deposit or Letter of Credit) against any amounts owed to BCBSF by Employer, <br />including any amounts which may be owed pursuant to Section V, Item C. <br />VI. There will be no interest accrued or payable by BCBSF on any funds held pursuant to this <br />Agreement. However, during the term of this Agreement, should the Employer not make <br />payment in accordance with the provisions of this Exhibit, amounts due shall be subject to <br />a late charge of 1.0% per month. The late charge shall be billed separately to the Employer. <br />The Employer warrants and agrees that the late charge will be paid solely from Employer's <br />funds and not from the funds of any employee welfare plan or trust. <br />VII. Employer understands and acknowledges that BCBSF may deny any claims that are <br />processed while any amount is past due or delinquent under this Agreement. <br />VIII. In the event of default in reimbursements directly to BCBSF and/or its Designated Agent as <br />required under the terms of this Agreement, and if such default remains uncured for a period <br />of thirty (30) days after written notice of such default is provided to Employer, BCBSF shall <br />have the right to terminate the Agreement. Such right to terminate shall be in addition and <br />not limitation of any right to terminate under the other provisions of this Agreement. <br />IX. Employer will make payments to BCBSF required under this Agreement (regardless of <br />any Stop -Loss Insurance coverage Employer obtained from a carrier other than BCBSF) <br />that may cover such claims and regardless of the existence of any pending Stop -Loss <br />Insurance reimbursement that has not been paid to Purchaser. <br />X. Employer has separately contracted with a Pharmacy Benefit Manager for pharmacy <br />management services (the "PBM Vendor"). BCBSF shall be entitled to rely on any <br />information provided to it by Employer's PBM Vendor. BCBSF shall base certain <br />eligibility coverage and other determinations in the performance of its responsibilities under <br />this Agreement in reliance on the information so provided; and shall not be required to <br />confirm or verify the accuracy, authenticity or completeness of any information so provided. <br />BCBSF shall not be liable for any damages that may result from its reliance on and/or <br />utilization of inaccurate or incomplete information received from Employer's PBM Vendor. <br />XI. This Agreement may be terminated or amended pursuant to the provisions of the <br />Agreement. In the event of such termination, BCBSF's Designated Agent will continue to <br />pay benefits for claims incurred prior to the date of termination ("Run -out claims") for a <br />period of twelve months, unless the Employer notifies BCBSF in writing at the time of <br />such termination that the Employer does not require such services. <br />Employer shall pay BCBSF for these services as set forth below. The parties agree that <br />such fees shall not be payable, nor shall such services be provided by BCBSF unless <br />Employer provides weekly wire funding for the claims. <br />The Administrative Fees paid to BCBSF for post -termination services under this Agreement <br />shall be calculated as follows, based upon the Administrative Fees and enrollment in place <br />at the time of termination: three (3) months per employee per month. <br />These amounts will be paid to BCBSF by the Employer in the manner mutually agreed to <br />by both parties at the time of notification of termination. At the end of the twelve (12) <br />28 <br />