Document:

EX-10.1 FORM OF EMPLOYEE MATTERS AGREEMENT

 

Exhibit 10.1

EXHIBIT B

FORM OF EMPLOYEE MATTERS AGREEMENT

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	SECTION 1 DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	1.1
	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	1.2
	 	GENERAL INTERPRETIVE PRINCIPLES	 	 	7	 
	 
	 	 	 	 	 	 
	SECTION 2 GENERAL PRINCIPLES	 	 	8	 
	 
	 	 	 	 	 	 
	 
	 	(a) Synovus	 	 	8	 
	 
	 	(b) TSYS	 	 	8	 
	 
	 	(c) Reimbursements	 	 	8	 
	 
	 	 	 	 	 	 
	2.2
	 	TSYS PARTICIPATION IN SYNOVUS BENEFIT PLANS	 	 	8	 
	 
	 	 	 	 	 	 
	2.3
	 	COMPARABLE COMPENSATION AND BENEFITS	 	 	9	 
	 
	 	 	 	 	 	 
	2.4
	 	SERVICE RECOGNITION	 	 	9	 
	 
	 	 	 	 	 	 
	SECTION 3 INDIVIDUAL ACCOUNT RETIREMENT PLANS	 	 	9	 
	 
	 	 	 	 	 	 
	3.1
	 	TSYS 401(k) PLAN	 	 	9	 
	 
	 	 	 	 	 	 
	 
	 	(a) Establishment of the TSYS 401(k) Plan	 	 	9	 
	 
	 	(b) Transfer of Synovus 401(k) Plan Assets	 	 	10	 
	 
	 	(c) Continuation of Elections	 	 	10	 
	 
	 	 	 	 	 	 
	3.2
	 	TSYS PROFIT SHARING PLAN	 	 	11	 
	 
	 	 	 	 	 	 
	 
	 	(a) Establishment of the TSYS Profit Sharing Plan	 	 	11	 
	 
	 	(b) Transfer of Synovus Profit Sharing Plan Assets	 	 	11	 
	 
	 	(c) Continuation of Elections	 	 	12	 
	 
	 	 	 	 	 	 
	3.3
	 	TSYS MONEY PURCHASE PENSION PLAN	 	 	12	 
	 
	 	 	 	 	 	 
	 
	 	(a) Establishment of the TSYS Money Purchase Pension Plan	 	 	12	 
	 
	 	(b) Transfer of Synovus Money Purchase Plan Assets	 	 	13	 
	 
	 	(c) Continuation of Elections	 	 	13	 
	 
	 	 	 	 	 	 
	3.4
	 	RECIPROCAL PROVISIONS FOR SYNOVUS DTEs	 	 	13	 
	 
	 	 	 	 	 	 
	 
	 	(a) Transfer of Delayed TSYS Plan Assets	 	 	13	 
	 
	 	(b) Continuation of Elections	 	 	14	 
	 
	 	(c) Service and Compensation Credit	 	 	14	 
	 
	 	 	 	 	 	 
	3.5
	 	Required Plan Provisions	 	 	14	 
	 
	 	 	 	 	 	 
	SECTION 4 DEFERRED COMPENSATION PLANS AND CHANGE IN CONTROL ARRANGEMENTS	 	 	14	 

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	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	4.1
	 	SYNOVUS DCP	 	 	14	 
	 
	 	 	 	 	 	 
	 
	 	(a) Synovus Participants	 	 	14	 
	 
	 	(b) TSYS Participants	 	 	15	 
	 
	 	 	 	 	 	 
	4.2
	 	CHANGE IN CONTROL ARRANGEMENTS	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 5 SELF-INSURED MEDICAL COVERAGE AND VEBA	 	 	16	 
	 
	 	 	 	 	 	 
	 
	 	(a) Adoption of TSYS Retiree Medical Plan, TSYS Employee Health Plan and TSYS VEBA	 	 	16	 
	 
	 	(b) Assumption of Liabilities by TSYS	 	 	16	 
	 
	 	(c) Transfer of Assets	 	 	16	 
	 
	 	 	 	 	 	 
	SECTION 6 HEALTH, WELFARE AND OTHER PLANS	 	 	17	 
	 
	 	 	 	 	 	 
	6.1
	 	ADOPTION OF HEALTH, WELFARE AND OTHER PLANS	 	 	17	 
	 
	 	 	 	 	 	 
	 
	 	(a) Adoption of the TSYS Welfare Plans	 	 	17	 
	 
	 	(b) Terms of Participation in TSYS Welfare Plans and TSYS Miscellaneous Plans	 	 	17	 
	 
	 	(c) Continuation of Elections	 	 	18	 
	 
	 	 	 	 	 	 
	6.2
	 	LIABILITIES FOR CLAIMS	 	 	18	 
	 
	 	 	 	 	 	 
	 
	 	(a) TSYS Employees and Former TSYS Employees	 	 	18	 
	 
	 	(b) TSYS DTEs	 	 	19	 
	 
	 	(c) Synovus Liabilities	 	 	19	 
	 
	 	 	 	 	 	 
	SECTION 7 FLEXIBLE SPENDING ACCOUNT PLANS	 	 	19	 
	 
	 	 	 	 	 	 
	7.1
	 	PLANS	 	 	19	 
	 
	 	 	 	 	 	 
	7.2
	 	CASH TRANSFERS	 	 	19	 
	 
	 	 	 	 	 	 
	7.3
	 	SYNOVUS DTEs	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 8 COBRA	 	 	20	 
	 
	 	 	 	 	 	 
	8.1
	 	TSYS PARTICIPANTS	 	 	20	 
	 
	 	 	 	 	 	 
	8.2
	 	TSYS DTEs	 	 	20	 
	 
	 	 	 	 	 	 
	8.3
	 	SYNOVUS DTEs	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 9 LONG-TERM DISABILITY	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 10 WORKERS’ COMPENSATION	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 11 SEVERANCE BENEFITS	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 12 ANNUAL INCENTIVE PLANS	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 13 EQUITY INCENTIVE PLANS	 	 	22	 

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	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	13.1
	 	EQUITY INCENTIVE AWARDS	 	 	22	 
	 
	 	 	 	 	 	 
	13.2
	 	TREATMENT OF OUTSTANDING SYNOVUS OPTIONS	 	 	22	 
	 
	 	 	 	 	 	 
	 
	 	(a) Synovus Employees	 	 	22	 
	 
	 	(b) TSYS Employees	 	 	23	 
	 
	 	(c) Synovus DTEs and TSYS DTEs	 	 	23	 
	 
	 	 	 	 	 	 
	13.3
	 	TREATMENT OF OUSTANDING TSYS OPTIONS	 	 	24	 
	 
	 	 	 	 	 	 
	13.4
	 	TREATMENT OF OUTSTANDING RESTRICTED STOCK	 	 	25	 
	 
	 	 	 	 	 	 
	 
	 	(a) General	 	 	25	 
	 
	 	(b) Tax Aspects	 	 	25	 
	 
	 	(c) Forfeitures	 	 	26	 
	 
	 	 	 	 	 	 
	13.5
	 	STOCK PURCHASE PLANS	 	 	26	 
	 
	 	 	 	 	 	 
	SECTION 14 TIME OFF BENEFITS	 	 	26	 
	 
	 	 	 	 	 	 
	14.1
	 	TSYS EMPLOYEES AND TSYS DTES	 	 	26	 
	 
	 	 	 	 	 	 
	14.2
	 	SYNOVUS DTE	 	 	26	 
	 
	 	 	 	 	 	 
	SECTION 15 DIRECTOR PLANS	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 16 INDEMNIFICATION	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 17 GENERAL AND ADMINISTRATIVE	 	 	27	 
	 
	 	 	 	 	 	 
	17.1
	 	SHARING OF INFORMATION	 	 	27	 
	 
	 	 	 	 	 	 
	17.2
	 	TRANSFER OF EMPLOYEE RECORDS	 	 	27	 
	 
	 	 	 	 	 	 
	17.3
	 	REASONABLE EFFORTS/COOPERATION	 	 	28	 
	 
	 	 	 	 	 	 
	17.4
	 	EMPLOYER RIGHTS	 	 	28	 
	 
	 	 	 	 	 	 
	17.5
	 	NO THIRD-PARTY BENEFICIARIES	 	 	28	 
	 
	 	 	 	 	 	 
	17.6
	 	CONSENT OF THIRD PARTIES	 	 	28	 
	 
	 	 	 	 	 	 
	17.7
	 	BENEFICIARY DESIGNATION/RELEASE OF INFORMATION/RIGHT TO REIMBURSEMENT	 	 	28	 
	 
	 	 	 	 	 	 
	17.8
	 	NOT A CHANGE IN CONTROL	 	 	29	 
	 
	 	 	 	 	 	 
	SECTION 18 MISCELLANEOUS	 	 	29	 
	 
	 	 	 	 	 	 
	18.1
	 	EFFECT IF DISTRIBUTION DOES NOT OCCUR	 	 	29	 
	 
	 	 	 	 	 	 
	18.2
	 	RELATIONSHIP OF PARTIES	 	 	29	 
	 
	 	 	 	 	 	 
	18.3
	 	INDIRECT ACTION	 	 	29	 
	 
	 	 	 	 	 	 
	18.4
	 	NOTICES	 	 	29	 

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	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	18.5
	 	ENTIRE AGREEMENT	 	 	29	 
	 
	 	 	 	 	 	 
	18.6
	 	AMENDMENTS AND WAIVERS	 	 	30	 
	 
	 	 	 	 	 	 
	18.7
	 	GOVERNING LAW	 	 	30	 
	 
	 	 	 	 	 	 
	18.8
	 	HEADINGS	 	 	30	 
	 
	 	 	 	 	 	 
	18.9
	 	COUNTERPARTS	 	 	30	 
	 
	 	 	 	 	 	 
	18.10
	 	ASSIGNMENT	 	 	30	 
	 
	 	 	 	 	 	 
	18.11
	 	SEVERABILITY	 	 	30	 

	 	 	 
	SCHEDULES	 	SECTION
	 
	Schedule A

	 	Section 4.2

	
Schedule B

	 	Section 4.2

	
Schedule C

	 	
Section 6.1(a)

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FORM OF EMPLOYEE MATTERS AGREEMENT

     This Employee Matters Agreement (the “Agreement”), dated as of                     , 2007 is
by and between Synovus Financial Corp., a Georgia corporation (“Synovus”) and Total System
Services, Inc., a Georgia corporation (“TSYS”).

     WHEREAS, the Board of Directors of Synovus has determined that it is in the best interests of
Synovus to separate Synovus and TSYS into two independent public companies on the terms and subject
to the conditions set forth in the Agreement and Plan of Distribution, dated as of                     ,
2007, (the “Distribution Agreement”);

     WHEREAS, in furtherance of the foregoing, Synovus has announced its intention to distribute
its 81% equity interest in TSYS to its shareholders;

     WHEREAS, in furtherance of the foregoing, Synovus, Columbus Bank and Trust Company, a Georgia
bank and trust company (“CB&T”) and TSYS have entered into the Distribution Agreement and
other Ancillary Agreements that will govern certain matters relating to the relationship between
Synovus and TSYS prior to and following the Distribution; and

     WHEREAS, pursuant to the Distribution Agreement, Synovus and TSYS have agreed to enter into
this Agreement for the purpose of allocating Assets, Liabilities and responsibilities with respect
to certain employee compensation and benefit plans and programs between and among them.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

SECTION 1

DEFINITIONS

     1.1 DEFINITIONS. Capitalized terms used, but not defined in this Agreement, shall have the
meanings assigned to such terms in the Distribution Agreement. The following terms shall have the
following meanings:

     “Agreement” shall have the meaning set forth in the preamble to this Agreement.

     “Benefit Plan” means, with respect to an entity, each plan, program, arrangement, agreement or
commitment (whether written or unwritten, formal or informal) that is an employment, consulting,
non-competition or deferred compensation agreement, or an executive compensation, incentive bonus
or other bonus, employee pension, profit sharing, savings, retirement, supplemental retirement,
stock option, stock purchase, stock appreciation rights, restricted stock, other equity-based
compensation, severance pay, salary continuation, life,
health, hospitalization, sick leave, vacation pay, disability or accident insurance plan,
corporate-owned or key-man life insurance or other employee benefit plan, program, arrangement,

 

 

agreement or commitment, including any “employee benefit plan” (as defined in Section 3(3) of
ERISA), sponsored or maintained by such entity (or to which such entity contributes or is required
to contribute or has any liabilities, directly or indirectly, contingent or fixed) and excluding
any Indemnification Obligations.

     “COBRA” means the continuation coverage requirements for “group health plans” under Title X of
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Code
Section 4980B and Sections 601 through 608 of ERISA, and any similar purpose state group health
plan continuation Law.

     “Delayed 401(k) Assets” shall have the meaning set forth in Section 3.1(b)(ii) of this
Agreement.

     “Delayed Price Ratio” means, with respect to a TSYS DTE, the quotient obtained by dividing (i)
the official NYSE only closing price for TSYS Common Stock on the last Trading Day on the NYSE
immediately before such TSYS DTE’s Transfer Date by (ii) the official NYSE only closing price for
Synovus Common Stock on the last Trading Day on the NYSE immediately before such TSYS DTE Transfer
Date.

     “Delayed Share Ratio” means, with respect to a TSYS DTE, the quotient obtained by dividing (i)
the official NYSE only closing price for Synovus Common Stock on the last trading day on the NYSE
immediately before such TSYS DTE’s Transfer Date by (ii) the official NYSE only closing price for
TSYS Common Stock on the last Trading Day on the NYSE immediately before such TSYS DTE’s Transfer
Date.

     “Delayed TSYS Plan Assets” shall have the meaning set forth in Section 3.4(a) of this
Agreement.

     “Distribution Agreement” shall have the meaning set forth in the recitals to this Agreement.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Former Synovus Employee” means, as of the Distribution Date, any former employee of Synovus
or a Subsidiary of Synovus, other than a Former TSYS Employee.

     “Former TSYS Employee” means, as of the Distribution Date, any former employee of TSYS or a
Subsidiary of TSYS, other than individuals to whom long-term disability benefits are being paid
under a Synovus Benefit Plan, (1) whose active employment ended on or before the Distribution Date
while such employee was employed by TSYS or a Subsidiary of TSYS and (2) who has an account balance
under the Synovus 401(k) Plan, the Synovus Profit Sharing Plan or the Synovus Money Purchase Plan,
who has elected or is entitled to elect retiree medical coverage under the Synovus Retiree Medical
Plan or who holds outstanding Synovus Options.

     “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended.

2 

 

     “Indemnification Obligations” means, as of the Distribution Date, any Liabilities of Synovus
or a Subsidiary of Synovus to indemnify any employee, officer, director, or agent, or to advance to
such person expenses before a judicial or administrative determination that such person is entitled
to indemnification, such Liabilities being memorialized or otherwise provided for in a separate
agreement, Articles of Incorporation or Bylaws.

     “IRS” means the Internal Revenue Service.

     “Participating Company” means Synovus or any Person (other than an individual) participating
in a Synovus Benefit Plan.

     “Remaining Synovus Option” shall have the meaning set forth in Section 13.2(a) of this
Agreement.

     “Subsidiary” means any corporation, any limited liability company, any partnership or other
legal entity of which a person or its subsidiaries owns, directly or indirectly, more than 50% of
the stock or other equity interests entitled to vote on the election of the members of the board of
directors or similar governing body.

     “Synovus” shall have the meaning set forth in the Preamble to this Agreement.

     “Synovus Benefit Plan” means any Benefit Plan sponsored, maintained or contributed to by
Synovus or any Subsidiaries of Synovus including, without limitation, the Synovus 401(k) Plan, the
Synovus Profit Sharing Plan, the Synovus Miscellaneous Plans, the Synovus Money Purchase Plan, the
Synovus Flexible Spending Account Plan, the Synovus DCP, the Synovus Retiree Medical Plan, and the
Synovus Welfare Plans.

     “Synovus Committee” means the compensation committee of the Board of Directors of Synovus.

     “Synovus DCP” means the Synovus Financial Corp./Total System Services, Inc. Deferred
Compensation Plan.

     “Synovus DTEs” means those TSYS Employees who transfer from the TSYS Group to the Synovus
Group after the Distribution Date but prior to the first anniversary of the Distribution Date (or
such later date as mutually agreed to by the Parties).

     “Synovus Employee” means any individual who immediately before and immediately following the
Distribution Date is employed by Synovus or any member of the Synovus Group as a common law
employee, including active employees and employees on vacation, approved leave of absence or serial
severance.

     “Synovus Employee Stock Purchase Plan” shall have the meaning set forth in Section 13.5 of
this Agreement.

3

 

     “Synovus Flexible Spending Account Plan” shall have the meaning set forth in Section 7.1 of
this Agreement.

     “Synovus 401(k) Plan” means the Synovus/TSYS 401(k) Savings Plan.

     “Synovus 401(k) Trust” means the trust which is part of the Synovus 401(k) Plan.

     “Synovus Group” means Synovus and its “affiliates” (as such term is defined in the Tax Sharing
Agreement dated                     , 2007 by and among Synovus, CB&T and TSYS).

     “Synovus Miscellaneous Plan” shall have the meaning set forth in Section           of this
Agreement.

     “Synovus Money Purchase Plan” means the Synovus/TSYS Money Purchase Pension Plan.

     “Synovus Money Purchase Trust” means the trust which is part of the Synovus Money Purchase
Plan.

     “Synovus Option” shall have the meaning set forth in Section 13.2(a) of this Agreement.

     “Synovus Participant” means any individual who, immediately following the Distribution Date,
is a Synovus Employee, a Former Synovus Employee or a beneficiary, dependent or alternate payee of
any of the foregoing.

     “Synovus Post-Distribution Stock Value” means the average volume-weighted trading price of
Synovus Common Stock for the ten trading days on the New York Stock Exchange immediately following
the Distribution Date.

     “Synovus Pre-Distribution Stock Value” means the official New York Stock Exchange only
“regular way” closing price for Synovus Common Stock on the last Trading Day on the New York Stock
Exchange immediately before the Distribution Date.

     “Synovus Price Ratio” means the quotient obtained by dividing the Synovus Post-Distribution
Stock Value by the Synovus Pre-Distribution Stock Value.

     “Synovus Profit Sharing Plan” means the Synovus/TSYS Profit Sharing Plan.

     “Synovus Profit Sharing Trust” means the trust which is part of the Synovus Profit Sharing
Plan.

     “Synovus Restricted Stock” means a restricted stock award under any of the Synovus Stock
Plans.

     “Synovus Share Ratio” means the quotient obtained by dividing the Synovus Pre-Distribution
Stock Value by the Synovus Post-Distribution Stock Value.

4

 

     “Synovus Stock Plans” means, collectively, the Synovus Financial Corp. 1994 Long-Term
Incentive Plan, the Synovus Financial Corp. 2000 Employee Long-Term Incentive Plan, the Synovus
Financial Corp. 2002 Long-Term Incentive Plan, and the Synovus Financial Corp. 2007 Omnibus Plan
and any other stock option or stock incentive compensation plan or arrangement for employees,
officers or directors of Synovus, other than the Synovus Employee Stock Purchase Plan.

     “Synovus VEBA” shall have the meaning set forth in Section 5(c) of this Agreement.

     “Synovus Welfare Plans” shall have the meaning set forth in Section 7.1(a) of this Agreement.

     “TSYS” shall have the meaning set forth in the Preamble to this Agreement.

     “TSYS Benefit Plan” means any Benefit Plan sponsored, maintained or contributed to by any
member of the TSYS Group after the Distribution Date including, without limitation, the TSYS DCP,
the TSYS 401(k) Plan, the TSYS Profit Sharing Plan, the TSYS Miscellaneous Plans, the TSYS Money
Purchase Plan, the TSYS Flexible Spending Account Plan, the TSYS Retiree Medical Plan and the TSYS
Welfare Plans, and any Benefit Plan assumed or adopted by any member of the TSYS Group.

     “TSYS DCP” shall have the meaning set forth in Section 4.1(b)(i) of this Agreement.

     “TSYS DTEs” means those Synovus Employees who transfer from the Synovus Group to the TSYS
Group after the Distribution Date but prior to the first anniversary of the Distribution Date (or
such later date as mutually agreed to by the Parties).

     “TSYS Employee” means any individual who immediately before and immediately after the
Distribution Date is employed by TSYS or any member of the TSYS Group as a common law employee,
including active employees and employees on vacation, approved leave of absence or serial
severance.

     “TSYS Employee Stock Purchase Plan” shall have the meaning set forth in Section 13.5 of this
Agreement.

     “TSYS 401(k) Assets” shall have the meaning set forth in Section 3.1(b)(i) of this Agreement.

     “TSYS 401(k) Participants” shall have the meaning set forth in Section 3.1(a) of this
Agreement.

     “TSYS 401(k) Plan” shall have the meaning set forth in Section 3.1(a) of this Agreement.

     “TSYS 401(k) Trust” means the trust which is part of the TSYS 401(k) Plan.

5

 

     “TSYS Flexible Spending Account Plan” shall have the meaning set forth in Section 7.1 of this
Agreement.

     “TSYS Group” means TSYS and its “affiliates” (as such term is defined in the Tax Sharing
Agreement dated                                         , 2007 by and among Synovus, Columbus Bank and Trust
Company and TSYS).

     “TSYS Miscellaneous Plans” shall have the meaning set forth in Section 6.1(a) of this
Agreement.

     “TSYS Money Purchase Assets” shall have the meaning set forth in Section 3.3(b)(i) of this
Agreement.

     “TSYS Money Purchase Participants” shall have the meaning set forth in Section 3.3(a)(i) of
this Agreement.

     “TSYS Money Purchase Pension Plan” shall have the meaning set forth in Section 3.3(a)(i) of
this Agreement.

     “TSYS Option” shall have the meaning set forth in Section 13.2(b) of this Agreement.

     “TSYS Participant” means any individual who, immediately following the Distribution Date, is a
TSYS Employee, a Former TSYS Employee, or a beneficiary, dependent or alternate payee of a TSYS
Employee or Former TSYS Employee.

     “TSYS Price Ratio” means the quotient obtained by dividing the TSYS Stock Value by the Synovus
Pre-Distribution Stock Value.

     “TSYS Profit Sharing Participants” shall have the meaning set forth in Section 3.2(a)(i) of
this Agreement.

     “TSYS Rabbi Trust” shall have the meaning set forth in Section 4.1(b)(i) of this Agreement.

     “TSYS Restricted Stock” means a grant of restricted stock made under the TSYS Stock Plans
pursuant to Section 13.4 of this Agreement.

     “TSYS Retiree Medical Plan” shall have the meaning set forth in Section 5(a) of this
Agreement.

     “TSYS Retiree Medical Plan Participants” shall have the meaning set forth in Section 5(a) of
this Agreement.

     “TSYS Stock Plans” means, collectively, the Total System Services, Inc. 2000 Employee
Long-Term Incentive Plan, the Total System Services, Inc. 2002 Long-Term Incentive Plan, and the
Total System Services, Inc. 2007 Omnibus Plan and any other stock option or stock incentive

6

 

compensation plan or arrangement for employees, officers or directors of TSYS, other than the TSYS
Employee Stock Purchase Plan.

     “TSYS Share Ratio” means the quotient obtained by dividing the Synovus Pre-Distribution Stock
Value by the TSYS Stock Value.

     “TSYS Stock Value” means the average volume-weighted trading price of TSYS Common Stock for
the ten trading days on the New York Stock Exchange immediately
following the Distribution Date.

     “TSYS VEBA” shall have the meaning set forth in Section 5(a) of this Agreement.

     “TSYS Welfare Plans” shall have the meaning set forth in Section 6.1(a) of this Agreement.

     “Transaction Change Date” shall mean the date as of which TSYS consummates an “Acquisition
Transaction” (as such term is defined in Section 1 of the Transition Services Agreement dated as of
                    , 2007 by and between Synovus and TSYS).

     “Transfer Date” means, with respect to a TSYS DTE, the date that such TSYS DTE commences
active employment with a member of the TSYS Group, and with respect to a Synovus DTE, the date that
such Synovus DTE commences active employment with a member of the TSYS Group.

     “U.S.” means the United States of America.

     1.2 GENERAL INTERPRETIVE PRINCIPLES. (a) Words in the singular shall include the plural and
vice versa, and words of one gender shall include the other gender, in each case, as the context
requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall,
unless otherwise stated, be construed to refer to this Agreement and not to any particular
provision of this Agreement, and references to Section and Schedules are references to the Sections
and Schedules to this Agreement unless otherwise specified; (c) the word “including” and words of
similar import when used in this Agreement shall mean “including, without limitation,” unless
otherwise specified; (d) any reference to any U.S. federal, state, or local statute or Law shall be
deemed to also refer to all rules and regulations promulgated under such statute or Law, unless the
context otherwise requires; and (e) except as otherwise provided herein, any reference to an TSYS
Benefit Plan or a Synovus Benefit Plan shall be deemed to refer to any such plan as it may have
been, or be, amended, restated or otherwise supplemented from time to time.

7

 

SECTION 2

GENERAL PRINCIPLES

     2.1 ASSUMPTION AND RETENTION OF LIABILITIES; RELATED ASSETS.

     (a) Synovus. As of the Distribution Date, except as otherwise expressly provided for
in this Agreement, Synovus shall, or shall cause one or more members of the Synovus Group to,
assume or retain, as applicable, and Synovus hereby agrees to pay, perform, fulfill and discharge,
in due course in full (i) all Liabilities under all Synovus Benefit Plans, (ii) all Liabilities
with respect to the employment, service, termination of employment or termination of service of all
Synovus Employees, Former Synovus Employees and their dependents and beneficiaries and (iii) any
other Liabilities expressly assigned or allocated to Synovus or any member of the Synovus Group
under this Agreement and TSYS shall have no responsibility for any such Liabilities.

     (b) TSYS. As of the Distribution Date, except as otherwise expressly provided for in
this Agreement, TSYS shall, or shall cause one or more members of the TSYS Group to, assume or
retain, as applicable, and TSYS hereby agrees to pay, perform, fulfill and discharge, in due course
in full (i) all Liabilities under all TSYS Benefit Plans, (ii) all Liabilities with respect to the
employment, service, termination of employment or termination of service of all TSYS Employees,
Former TSYS Employees and their dependents and beneficiaries and (iii) any other Liabilities
expressly assigned or allocated to TSYS or any member of the TSYS Group under this Agreement, and
Synovus shall have no responsibility for any such Liabilities.

     (c) Reimbursements.

     (i) From time to time after the Distribution Date, TSYS shall promptly reimburse Synovus, upon
Synovus’ reasonable request and the presentation by Synovus of such substantiating documentation as
TSYS shall reasonably request, for the cost of any Liabilities satisfied by Synovus or any member
of the Synovus Group that are pursuant to this Agreement the responsibility of TSYS or any member
of the TSYS Group.

     (ii) From time to time after the Distribution Date, Synovus shall promptly reimburse TSYS,
upon TSYS’ reasonable request and the presentation by TSYS of such substantiating documentation as
Synovus shall reasonably request, for the cost of any Liabilities satisfied by TSYS or any member
of the TSYS Group that are pursuant to this Agreement the responsibility of Synovus or any member
of the Synovus Group.

     2.2 TSYS PARTICIPATION IN SYNOVUS BENEFIT PLANS. Except as otherwise expressly provided for
in this Agreement or as otherwise expressly agreed to in writing between the Parties, (i) effective
as of the Distribution Date, TSYS and each member of the TSYS Group shall cease to be a
Participating Company, and (ii) each (A) TSYS Participant and each other employee of the TSYS Group
as of the Distribution Date, and (B) TSYS DTE, effective as of such TSYS DTE’s Transfer Date, shall
cease to participate in, be covered by, accrue benefits
under, be eligible to contribute to or have any rights under any Synovus Benefit Plan, and
Synovus and TSYS shall take all necessary action to effectuate each such cessation.

8

 

     2.3 COMPARABLE COMPENSATION AND BENEFITS. For the period commencing on the Distribution Date
and ending on the earlier of December 31, 2008 or the Transaction Change Date, TSYS (acting
directly or through a member of the TSYS Group) will provide each TSYS Employee with compensation
opportunities (including, without limitation, salary, wages, commissions and bonus opportunities)
and employee benefits that are in TSYS’s opinion, substantially comparable, in the aggregate, to
the compensation opportunities and employee benefits to which such TSYS Employee was entitled to
immediately prior to the Distribution Date. With respect to each TSYS DTE whose Transfer Date
occurs prior to December 31, 2008, for the period commencing on such TSYS DTE’s Transfer Date and
ending on the earlier of December 31, 2008 or the Transaction Change Date, TSYS (acting directly or
through a member of the TSYS Group) will provide such TSYS DTE with compensation opportunities
(including, without limitation, salary, wages, commissions and bonus opportunities) and employee
benefits that are in TSYS’s opinion, substantially comparable, in the aggregate, to the
compensation opportunities and employee benefits to which similarly situated TSYS Employees were
entitled immediately prior to such TSYS DTE’s Transfer Date.

     2.4 SERVICE RECOGNITION. TSYS shall give each TSYS Participant and TSYS DTE full service
credit for purposes of eligibility, vesting, determination of level of benefits, and, to the extent
applicable, benefit accruals under any TSYS Benefit Plan for such TSYS Participant’s service with
any member of the Synovus Group prior to the Distribution Date, or for a TSYS DTE, the applicable
Transfer Date, to the same extent such service was recognized by the corresponding Synovus Benefit
Plan immediately prior to the Distribution Date or for a TSYS DTE, the applicable Transfer Date;
provided, however, that such service shall not be recognized to the extent that
such recognition would result in the duplication of benefits under a TSYS Benefit Plan and a
Synovus Benefit Plan. Synovus shall give each Synovus Participant and Synovus DTE full service
credit for purposes of eligibility, vesting, determination of level of benefits, and, to the extent
applicable, benefit accruals under any Synovus Benefit Plan for such Synovus Participant’s service
with any member of the TSYS Group prior to the Distribution Date or, for a Synovus DTE, prior to
the applicable Transfer Date, to the same extent such service was recognized by the corresponding
TSYS Benefit Plan immediately prior to the Distribution Date or, for a Synovus DTE, immediately
prior to the applicable Transfer Date; provided, however, that such service shall
not be recognized to the extent such recognition would result in the duplication of benefits under
a TSYS Benefit Plan and a Synovus Benefit Plan.

SECTION 3

INDIVIDUAL ACCOUNT RETIREMENT PLANS

     3.1 TSYS 401(k) PLAN.

     (a) Establishment of the TSYS 401(k) Plan.

     (i) TSYS shall establish effective as of January 1, 2008 a 401(k) plan for the benefit of
individuals who are TSYS Employees on such date (the “TSYS 401(k) Participants”) and for
the period commencing on the Distribution Date and ending on the earlier of December 31, 2008 or
the Transaction Change Date, such plan shall have eligibility, contribution and vesting provisions
which are the same as the eligibility, contribution and vesting provisions of the

9

 

Synovus 401(k)
Plan as in effect on December 31, 2007 or, if the Synovus 401(k) Plan is amended after December 31,
2007 and TSYS elects to make such amendments, the Synovus 401(k) Plan as so amended (the “TSYS
401(k) Plan”). Each TSYS DTE shall receive service credit under the TSYS 401(k) Plan pursuant
to Section 2.4 but shall receive no credit under such plan for compensation paid by Synovus for
such service.

     (ii) TSYS before the Distribution Date shall be responsible for taking all appropriate action
to establish and administer the TSYS 401(k) Plan so that it is qualified under Section 401(a) of
the Code and that the trust which is established as part of such plan is exempt under Section
501(a) of the Code. TSYS on the Distribution Date shall be responsible for taking all appropriate
action to administer the TSYS 401(k) Plan so that it remains qualified under Section 401(a) of the
Code.

     (iii) TSYS (acting directly or through a member of the TSYS Group) shall be responsible for
any and all Liabilities (including all Liabilities for funding) with respect to the TSYS 401(k)
Plan.

     (b) Transfer of Synovus 401(k) Plan Assets.

     (i) As soon as reasonably practicable (but not later than thirty (30) days) following the
Distribution Date (or such other date as mutually agreed to by the Parties), Synovus shall cause
the trustee for the Synovus 401(k) Trust to transfer in-kind the assets underlying the account
balances (including any unvested balances, outstanding loan balances and forfeitures) held in the
Synovus 401(k) Trust for the TSYS 401(k) Participants (the “TSYS 401(k) Assets”) to the
TSYS 401(k) Trust, and TSYS shall cause the TSYS 401(k) Trust to accept the transfer of the TSYS
401(k) Assets. TSYS effective as of the date of such transfer shall assume and fully perform, pay
and discharge, all Liabilities of the TSYS 401(k) Plan, including liabilities related to the TSYS
401(k) Assets. The transfer of the TSYS 401(k) Assets shall be conducted in accordance with
Section 414(l) of the Code, Treasury Regulation Section 1.414(1)-1, and Section 208 of ERISA.

     (ii) As soon as reasonably practicable (but not later than thirty (30) days) following the one
year anniversary of the Distribution Date (or such other date as mutually agreed to by the
Parties), Synovus shall cause the trustee for the Synovus 401(k) Trust to transfer in-kind the
assets underlying account balances (including any unvested balances, any outstanding loan balances
and forfeitures) held in the Synovus 401(k) Trust for the TSYS DTEs to the TSYS
401(k) Trust (the “Delayed 401(k) Assets”), and TSYS shall cause the TSYS 401(k) Trust
to accept the transfer of the Delayed 401(k) Assets. The Delayed 401(k) Assets shall include all
contributions required to be made to the Synovus 401(k) Plan on behalf of the TSYS DTEs for 2007.
TSYS effective as of the date of such transfer shall assume and fully perform, pay and discharge,
all Liabilities relating to the Delayed 401(k) Assets as of such transfer date. The transfer of
the Delayed 401(k) Assets shall be conducted in accordance with Section 414(l) of the Code,
Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA.

     (c) Continuation of Elections. The TSYS 401(k) Plan shall recognize all elections,
including deferral, investment and payment form elections, beneficiary designations, and the rights
of alternate payees under qualified domestic relations orders with respect to TSYS 401(k)

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Participants under the Synovus 401(k) Plan. TSYS DTEs will be eligible to enroll in the TSYS
401(k) Plan in accordance with the terms of such plan and will be eligible to make all elections
and beneficiary designations in accordance with the terms of the TSYS 401(k) Plan and the
procedures which TSYS or the TSYS 401(k) Plan has established for the making of such elections and
designations.

     3.2 TSYS PROFIT SHARING PLAN.

     (a) Establishment of the TSYS Profit Sharing Plan.

     (i) TSYS shall establish effective as of January 1, 2008 a profit sharing plan for the benefit
of individuals who are TSYS Employees on such date (the “TSYS Profit Sharing Participants”)
and for the period commencing on the Distribution Date and ending on the earlier of December 31,
2008 or the Transaction Change Date, such plan shall have eligibility, contribution and vesting
provisions which are the same as the eligibility, contribution and vesting provisions of the
Synovus Profit Sharing Plan as in effect on December 31, 2007 or, if the Synovus Profit Sharing
Plan is amended after December 31, 2007 and TSYS elects to make such amendments, the Synovus Profit
Sharing Plan as so amended (the “TSYS Profit Sharing Plan”). Each TSYS DTE shall receive
service credit under the TSYS Profit Sharing Plan pursuant to Section 2.4 but shall receive no
credit under such plan for compensation paid by Synovus for such service.

     (ii) TSYS shall be responsible for taking all appropriate action to establish and administer
the TSYS Profit Sharing Plan so that it is qualified under Section 401(a) of the Code and that the
trust which is a part of such plan is exempt under Section 501(a) of the Code. TSYS shall be
responsible for taking all appropriate action to administer the TSYS Profit Sharing Plan so that it
remains qualified under Section 401(a) of the Code.

     (iii) TSYS (acting directly or through a member of the TSYS Group) shall be responsible for
any and all Liabilities (including all Liabilities for funding) with respect to the TSYS Profit
Sharing Plan.

     (b) Transfer of Synovus Profit Sharing Plan Assets.

     (i) As soon as reasonably practicable (but not later than thirty (30) days) following the
Distribution Date (or such other date as mutually agreed to by the Parties), Synovus shall cause
the trustee for the Synovus Profit Sharing Trust to transfer in-kind the assets underlying the
account balances (including any unvested balances, outstanding loan balances and forfeitures) held
in the Synovus Profit Sharing Trust for the TSYS Profit Sharing Participants (the “TSYS Profit
Sharing Assets”) to the TSYS Profit Sharing Trust, and TSYS shall cause the TSYS Profit Sharing
Trust to accept the transfer of the TSYS Profit Sharing Assets. TSYS effective as of the date of
such transfer shall assume and fully perform, pay and discharge, all Liabilities of the TSYS Profit
Sharing Plan, including liabilities related to the TSYS Profit Sharing Assets. The transfer of the
TSYS Profit Sharing Assets shall be conducted in accordance with Section 414(l) of the Code,
Treasury Regulation Section 1.414(1)-1, and Section 208 of ERISA.

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     (ii) As soon as reasonably practicable (but not later than thirty (30) days) following the one
year anniversary of the Distribution Date (or such other date as mutually agreed to by the Parties), Synovus shall cause the trustee for the Synovus Profit Sharing Trust to transfer in-kind the
assets underlying account balances (including any unvested balances, any outstanding loan balances
and forfeitures) held in the Synovus Profit Sharing Trust for the TSYS DTEs to the TSYS Profit
Sharing Trust (the “Delayed Profit Sharing Assets”), and TSYS shall cause the TSYS Profit
Sharing Trust to accept the transfer of the Delayed Profit Sharing Assets. The Delayed Profit
Sharing Assets shall include all contributions required to be made to the Synovus Profit Sharing
Plan on behalf of the TSYS DTEs for 2007. TSYS effective as of the date of such transfer shall
assume and fully perform, pay and discharge, all Liabilities relating to the Delayed Profit Sharing
Assets as of such transfer date. The transfer of the Delayed Profit Sharing Assets shall be
conducted in accordance with Section 414(l) of the Code, Treasury Regulation Section 1.414(l)-1,
and Section 208 of ERISA.

     (c) Continuation of Elections. The TSYS Profit Sharing Plan shall recognize all
elections, including deferral, investment and payment form elections, beneficiary designations, and
the rights of alternate payees under qualified domestic relations orders with respect to TSYS
Profit Sharing Participants under the Synovus Profit Sharing Plan. TSYS DTEs will be eligible to
enroll in the TSYS Profit Sharing Plan in accordance with the terms of such plan and will be
eligible to make all elections and beneficiary designations in accordance with the terms of the
TSYS Profit Sharing Plan and the procedures which TSYS or the TSYS Profit Sharing Plan has
established for the making of such elections and designations.

     3.3 TSYS MONEY PURCHASE PENSION PLAN.

     (a) Establishment of the TSYS Money Purchase Pension Plan.

     (i) As soon as practical and in any event before December 31, 2008, TSYS shall establish
effective as of January 1, 2008 a money purchase pension plan for the benefit of individuals who
are TSYS Employees on such date (the “TSYS Money Purchase Participants”), and for the
period commencing on the Distribution Date and ending on the earlier of December
31, 2008 or the Transaction Change Date, such plan shall have eligibility, contribution and
vesting provisions which are the same as the eligibility, contribution and vesting provisions of
the Synovus Money Purchase Plan as in effect on December 31, 2007 or, if the Synovus Money Purchase
Plan is amended after December 31, 2007 and TSYS elects to make such amendments, the Synovus Money
Purchase Plan as so amended (the “TSYS Money Purchase Pension Plan”). Each TSYS DTE shall
receive service credit under the TSYS Money Purchase Plan pursuant to Section 2.4 but shall receive
no credit under such plan for compensation paid by Synovus for such service.

     (ii) TSYS shall be responsible for taking all appropriate action to establish and administer
the TSYS Money Purchase Pension Plan so that it is qualified under Section 401(a) of the Code and
that the trust which is a part of such plan is exempt under Section 501(a) of the Code. TSYS shall
be responsible for taking all appropriate action to administer the TSYS Money Purchase Pension Plan
so that it remains qualified under Section 401(a) of the Code.

12

 

     (iii) TSYS (acting directly or through a member of the TSYS Group) shall be responsible for
any and all Liabilities (including all Liabilities for funding) with respect to the TSYS Money
Purchase Pension Plan.

     (b) Transfer of Synovus Money Purchase Plan Assets.

     (i) As soon as reasonably practicable (but not later than thirty (30) days) following the date
the TSYS Money Purchase Plan is established (or such other date as mutually agreed to by the
Parties), Synovus shall cause the trustee for the Synovus Money Purchase Trust to transfer in-kind
the assets underlying the account balances (including any unvested balances, outstanding loan
balances and forfeitures) held in the Synovus Money Purchase Trust for the TSYS Money Purchase
Participants (the “TSYS Money Purchase Assets”) to the TSYS Money Purchase Trust, and TSYS
shall cause the TSYS Money Purchase Trust to accept the transfer of the TSYS Money Purchase Assets.
TSYS effective as of the date of such transfer shall assume and fully perform, pay and discharge,
all Liabilities of the TSYS Money Purchase Pension Plan, including liabilities related to the TSYS
Money Purchase Assets. The transfer of the TSYS Money Purchase Assets shall be conducted in
accordance with Section 414(l) of the Code, Treasury Regulation Section 1.414(1)-1, and Section 208
of ERISA.

     (ii) As soon as reasonably practicable (but not later than thirty (30) days) following the one
year anniversary of the Distribution Date (or such other date as mutually agreed to by the
Parties), Synovus shall cause the trustee for the Synovus Money Purchase Trust to transfer in-kind
the assets underlying account balances (including any unvested balances, any outstanding loan
balances and forfeitures) held in the Synovus Money Purchase Trust for the TSYS DTEs to the TSYS
Money Purchase Trust (the “Delayed Money Purchase Assets”), and TSYS shall cause the TSYS
Money Purchase Trust to accept the transfer of the Delayed Money Purchase Assets. The Delayed
Money Purchase Assets shall include all contributions required to be made to the Synovus Money
Purchase Plan on behalf of the TSYS DTEs for 2007. TSYS effective as of the date of such transfer
shall assume and fully perform, pay and discharge, all Liabilities relating to the Delayed Money
Purchase Assets as of such transfer date. The transfer of the Delayed Money
Purchase Assets shall be conducted in accordance with Section 414(l) of the Code, Treasury
Regulation Section 1.414(l)-1, and Section 208 of ERISA.

     (c) Continuation of Elections. The TSYS Money Purchase Pension Plan shall recognize
all elections, including investment and payment form elections, beneficiary designations, and the
rights of alternate payees under qualified domestic relations orders with respect to TSYS Money
Purchase Participants under the Synovus Money Purchase Plan. TSYS DTEs will be eligible to enroll
in the TSYS Money Purchase Pension Plan in accordance with the terms of such plan and will be
eligible to make all elections and beneficiary designations in accordance with the terms of the
TSYS Money Purchase Pension Plan and the procedures which TSYS or the TSYS Money Purchase Pension
Plan has established for the making of such elections and designations.

     3.4 RECIPROCAL PROVISIONS FOR SYNOVUS DTEs.

     (a) Transfer of Delayed TSYS Plan Assets. As soon as reasonable practicable (but not
later than thirty (30) days) following the one year anniversary of the Distribution Date (or

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such
other date as mutually agreed to by the Parties), TSYS shall cause the one or more trustees for the
TSYS Money Purchase Pension Plan, the TSYS Profit Sharing Plan and the TSYS 401(k) Plan to transfer
in-kind the assets underlying the account balances (including any unvested balances, any
outstanding loan balances and forfeitures) for each such Synovus DTE to the Synovus Money Purchase
Pension Plan, the Synovus Profit Sharing Plan and the Synovus 401(k) Plan, whichever is applicable
(the “Delayed TSYS Plan Assets”), and Synovus shall cause the trusts maintained with
respect to each of the Synovus Money Purchase Pension Plan, the Synovus Profit Sharing Plan and the
Synovus 401(k) Plan to accept the transfer of its respective portion of the Delayed TSYS Plan
Assets. The Delayed TSYS Plan Assets shall include all contributions required to be made to the
TSYS Money Purchase Pension Plan, the TSYS Profit Sharing Plan and the TSYS 401(k) Plan on behalf
of Synovus DTEs for 2007. Synovus effective as of the date of such transfer shall assume and fully
perform, pay, and discharge, all Liabilities relating to the Delayed TSYS Plan Assets. The
transfer of the Delayed TSYS Plan Assets shall be conducted in accordance with Section 414(l) of
the Code, Treasury Regulation Section 1.414(l)-1, and Section 208 of ERISA.

     (b) Continuation of Elections. To the extent a Synovus DTE has elections and
designations (including deferral, investment and payment form elections, beneficiary designations,
and alternate payee designations) under the TSYS Money Purchase Pension Plan, the TSYS Profit
Sharing Plan and the TSYS 401(k) Plan, such elections and designations shall be recognized and
continued under any corresponding Synovus plan for such Synovus DTE.

     (c) Service and Compensation Credit. Each Synovus DTE shall receive service credit
under the Synovus Money Purchase Pension Plan, the Synovus Profit Sharing Plan and the Synovus
401(k) Plan pursuant to Section 2.4 but shall receive no credit under such plans for compensation
paid by TSYS for such service.

     3.5 Required Plan Provisions. The TSYS 401(k) Plan, the TSYS Profit Sharing Plan, and
the TSYS Money Purchase Pension Plan shall provide that a Synovus DTE who transfers to Synovus
prior to December 31, 2008 will be treated as satisfying any last day of the year requirement in
such plans for purposes of receiving any contributions for periods prior to the Transfer Date
provided such Synovus DTE is employed by Synovus on December 31, 2008. The Synovus 401(k) Plan,
the Synovus Profit Sharing Plan, and the Synovus Money Purchase Plan shall be amended to provide
that a TSYS DTE who transfers to TSYS prior to December 31, 2008 will be treated as satisfying any
last day of the year requirement in such plans for purposes of receiving any contributions for
periods prior to the Transfer Date provided such TSYS DTE is employed by TSYS on December 31, 2008.

SECTION 4

DEFERRED COMPENSATION PLANS

AND CHANGE IN CONTROL ARRANGEMENTS

     4.1 SYNOVUS DCP.

     (a) Synovus Participants. Synovus shall retain all Liabilities under the Synovus DCP
with respect to Synovus Participants.

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     (b) TSYS Participants.

     (i) Effective as of January 1, 2008, TSYS shall establish a TSYS deferred compensation plan
for the benefit of individuals who are TSYS Participants on such date, and for the period
commencing on the Distribution Date and ending on the earlier of December 31, 2008 or the
Transaction Change Date, such plan shall have eligibility, contribution, vesting and distribution
provisions which are the same as the eligibility, contribution, vesting and distribution provisions
in the Synovus DCP as in effect on December 31, 2007 or, if the Synovus DCP is amended after
December 31, 2007 and TSYS elects to make such amendments, the Synovus DCP as so amended (the
“TSYS DCP”). TSYS shall administer the TSYS DCP in accordance with applicable law,
including Section 409A of the Code. Effective as of January 1, 2008, TSYS shall also establish a
rabbi trust to hold all contributions and earnings credited pursuant to the TSYS DCP, which rabbi
trust shall mirror the terms of the rabbi trust maintained with respect to the Synovus DCP as in
effect on December 31, 2007 or, if the Synovus rabbi trust is amended after December 31, 2007 and
TSYS elects to make such amendments, the Synovus rabbi trust as so amended (“TSYS Rabbi
Trust”). TSYS shall maintain the TSYS Rabbi Trust for the period commencing on the
Distribution Date and ending on the earlier of December 31, 2008 or the Transaction Change Date.

     (ii) TSYS (acting directly or though a member of the TSYS Group) shall be responsible for all
Liabilities with respect to the TSYS DCP.

     (iii) As soon as practical (but not later than thirty (30) days) following the Distribution
Date (or such other date as mutually agreed to by the Parties), Synovus shall transfer assets to
the TSYS Rabbi Trust equal to the Liabilities under the Synovus DCP with respect to TSYS
Participants (determined on the date of the asset transfer) and effective upon such transfer,
Synovus shall have no Liability with respect to TSYS Participants. In addition, as soon as
practical following the date a TSYS DTE who is a participant in the Synovus DCP is transferred to
TSYS (or such other date or dates as mutually agreed to by the Parties), Synovus shall transfer
assets to the TSYS Rabbi Trust equal to the Liabilities under the Synovus DCP with respect to such
participant (determined on the date of the asset transfer) and effective upon such transfer,
Synovus shall have no Liability with respect to such participant.

     4.2 CHANGE IN CONTROL ARRANGEMENTS. For each TSYS Employee with whom TSYS has entered into a
change in control agreement and who is identified on Schedule A to this Agreement, effective as of
the Distribution Date, TSYS shall (subject to obtaining any consent required from the affected TSYS
Employee) amend such agreement to exclude any change in control of Synovus from the definition of a
change in control under the agreement. TSYS shall use reasonable efforts to obtain any such
required consents from affected TSYS Employees. In addition, TSYS shall establish as of the
Distribution Date a change in control plan for TSYS Participants identified on Schedule B to this
Agreement which for the period commencing on the Distribution Date and ending on the earlier of
December 31, 2008 or the Transaction Change Date is identical in all material respects (except that
a change in control shall be limited to a change in control of TSYS) to the Synovus change in
control plan, as in effect for these TSYS Participants immediately before the Distribution Date.
Synovus shall amend its change of control plan to exclude TSYS Participants and to eliminate the
change of control definition for such TSYS Participants.

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SECTION 5

SELF-INSURED MEDICAL COVERAGE AND VEBA

     (a) Adoption of TSYS Retiree Medical Plan, TSYS Employee Health Plan and TSYS VEBA.
Effective no later than the Distribution Date and continuing for the period commencing on the
Distribution Date and ending on the earlier of December 31, 2008 or the Transaction Change Date,
TSYS shall, or shall have caused one or more members of the TSYS Group to, adopt a retiree medical
plan, a group health plan, and a related trust which is intended to be tax-exempt under Section
501(c)(9) of the Code (i) to provide retiree medical benefits in accordance with the terms of the
Synovus Retiree Medical Plan as in effect on December 31, 2007 (or, if the Synovus Retiree Medical
Plan is amended after December 31, 2007 and TSYS elects to make such amendments, the Synovus
Retiree Medical Plan as so amended) to TSYS Participants who immediately prior to the Distribution
Date were participants in the Synovus Retiree Medical Plan, and (ii) to provide group health
benefits in accordance with the terms of the Synovus Employee Health Plan as in effect on December
31, 2007 (or, if the Synovus Employee Health Plan is amended after December 31, 2007 and TSYS
elects to make such amendments, the Synovus Employee Health Plan as so amended) (A) to TSYS Participants who
immediately prior to the Distribution Date were participants in the Synovus Employee Health Plan,
and (B) to each TSYS DTE who immediately prior to his or her Transfer Date is a participant in the
Synovus Employee Health Plan (such retiree medical plan, the “TSYS Retiree Medical Plan”,
such group health plan, the “TSYS Employee Health Plan”, such medical trust, the “TSYS
VEBA”, and such TSYS Participants, the “TSYS Self-Insured Plan Participants”). TSYS
shall be responsible for taking all appropriate action to adopt and administer the TSYS Retiree
Medical Plan and TSYS Employee Health Plan and to timely file the appropriate request with the
Internal Revenue Service for a tax exemption for the TSYS VEBA under Section 501(c)(9) of the Code.

     (b) Assumption of Liabilities by TSYS. TSYS (acting directly or through a member of
the TSYS Group) shall be responsible for any and all Liabilities (including Liabilities for
funding) with respect to the TSYS Retiree Medical Plan and the TSYS Employee Health Plan.
Effective as of the Distribution Date, TSYS (acting directly or through a member of the TSYS Group)
hereby agrees to cause the TSYS Retiree Medical Plan and the TSYS Employee Health Plan to assume,
and to fully perform, pay and discharge, all accrued but unpaid benefits as of the Distribution
Date, including incurred but unreported claims for benefits, and any credits under the Synovus
Retiree Medical Plan and the Synovus Employee Health Plan relating to all TSYS Self-Insured Plan
Participants as of the Distribution Date with respect to individuals described in Section 5(a)(i)
and Section 5(a)(ii)(A) and as of the applicable Transfer Date with respect to individuals
described in Section 5(a)(ii)(B), provided that Synovus has caused the Synovus Retiree Medical Plan
for the period following the date hereof and through the Distribution Date or applicable Transfer
Date (as the case may be) to follow such plan’s standard policies and practices for processing and
paying incurred and reported claims with respect to TSYS Employees, Former TSYS Employees and TSYS
DTEs. Synovus shall have no Liability for TSYS Participants as of the Distribution Date or for
TSYS DTE as of their respective Transfer Dates for any self-insured medical benefits.

     (c) Transfer of Assets. The Synovus Retiree Medical Plan and the Synovus Employee
Health Plan are funded through a trust Synovus maintains which is intended to be tax

16

 

exempt under
Section 501(c)(9) (the “Synovus VEBA”). As of the Distribution Date, Synovus and TSYS
shall determine the portion of the assets held in the Synovus VEBA attributable to Liabilities for
medical benefits payable to TSYS Participants and transfer such portion of the assets to the TSYS
VEBA. The portion of the assets attributable to Liabilities for medical benefits payable to TSYS
Participants shall be determined by multiplying the fair market value of the assets in the Synovus
VEBA as of the Distribution Date by a fraction, the numerator of which is the number of TSYS
Participants participating in either the Synovus Retiree Medical Plan or the Synovus Employee
Health Plan on the Distribution Date and the denominator of which is the total number of Synovus
Participants and TSYS Participants participating in the Synovus Retiree Medical Plan or the Synovus
Employee Health Plan on the Distribution Date. This transfer of assets is intended to fund
Liabilities under both the TSYS Retiree Medical Plan and the TSYS Employee Health Plan.

SECTION 6

HEALTH, WELFARE AND OTHER PLANS

     6.1 ADOPTION OF HEALTH, WELFARE AND OTHER PLANS.

     (a) Adoption of the TSYS Welfare Plans. In addition to the long-term disability plan
addressed in Section 9, Synovus or one or more of its Subsidiaries maintain each of the health and
welfare plans set forth on Schedule B to this Agreement (collectively the “Synovus Welfare
Plans” and individually a “Synovus Welfare Plan”) and each of the other plans set forth
on Schedule C to this Agreement (collectively the “Synovus Miscellaneous Plans”) and
individually a “Synovus Miscellaneous Plan” for the benefit of eligible Synovus
Participants and TSYS Participants. Effective as of the Distribution Date and continuing for the
period commencing on the Distribution Date and ending on the earlier of December 31, 2008 or the
Transaction Change Date, TSYS shall, or shall cause a member of the TSYS Group to adopt for the
benefit of eligible TSYS Participants (i) health and welfare plans which provide benefits which are
the same as the benefits provided under the corresponding Synovus Welfare Plans in which such
individuals participate on December 31, 2007 as each such plan is then in effect or if a Synovus
Welfare Plan is amended after December 31, 2007 and TSYS elects to make such amendment, the Synovus
Welfare Plan as so amended (collectively the “TSYS Welfare Plans” and individually an
“TSYS Welfare Plan”), and (ii) plans which provide the same benefits as the benefits
provided under the Synovus Miscellaneous Plans in which such individuals participate on December
31, 2007 or if a Synovus Miscellaneous Plan is amended after December 31, 2007 and TSYS elects to
make such amendment, the Synovus Miscellaneous Plan as so amended (collectively the “TSYS
Miscellaneous Plans” and individually a “TSYS Miscellaneous Plan”).

     (b) Terms of Participation in TSYS Welfare Plans and TSYS Miscellaneous Plans. TSYS
(acting directly or through a member of the TSYS Group) shall cause each TSYS Welfare Plan, the
TSYS long-term disability plan and each TSYS Miscellaneous Plan, if applicable, to (i) waive all
limitations as to preexisting conditions, exclusions, and service conditions with respect to
participation and coverage requirements applicable to TSYS Participants and TSYS DTEs, other than
limitations that were in effect with respect to (A) TSYS Participants as of the Distribution Date
and (B) each TSYS DTE as of such TSYS DTE’s Transfer Date, in each case under the corresponding
Synovus Welfare Plan, Synovus long-term disability plan or Synovus

17

 

Miscellaneous Plan, (ii) honor
any deductibles, out-of-pocket maximums, and co-payments incurred by TSYS Participants and TSYS
DTEs under the corresponding Synovus Welfare Plan, Synovus long-term disability plan or Synovus
Miscellaneous Plan in satisfying any applicable deductibles, out-of-pocket maximums or co-payments
under a TSYS Welfare Plan, TSYS long-term disability plan or TSYS Miscellaneous Plan during the
same plan year in which such deductibles, out-of-pocket maximums and co-payments were made, and
(iii) waive any waiting period limitation or evidence of insurability requirement that would
otherwise be applicable to an TSYS Participant following the Distribution Date or to a TSYS DTE
following such TSYS DTE’s Transfer Date, to the extent such TSYS Participant or TSYS DTE, as
applicable, had satisfied any similar limitation under the corresponding Synovus Welfare Plan,
Synovus long-term disability plan or Synovus
Miscellaneous Plan; provided, however, that in regard to the application of this Section
6.1(b) to the TSYS long-term disability plan, TSYS shall be deemed to have complied with this
Section 6.1(b) to the extent TSYS uses commercially reasonable efforts to do so.

     (c) Continuation of Elections. With respect to TSYS Participants, as of the
Distribution Date, TSYS (acting directly or through a member of the TSYS Group) shall cause each
TSYS Welfare Plan, TSYS long-term disability plan and TSYS Miscellaneous Plan to recognize all
elections and designations (including all coverage and contribution elections and beneficiary
designations) made by TSYS Participants under the corresponding Synovus Welfare Plan, Synovus
long-term disability plan or Synovus Miscellaneous Plan, as applicable, and apply such elections
and designations under the TSYS Welfare Plan, TSYS long-term disability plan or TSYS Miscellaneous
Plan for the remainder of the period or periods for which such elections or designations are by
their original terms applicable. With respect to each TSYS DTE, as of such TSYS DTE’s Transfer
Date, TSYS (acting directly or through a member of the TSYS Group) shall cause each TSYS Welfare
Plan, TSYS long-term disability plan and TSYS Miscellaneous Plan to recognize all elections and
designations (including all coverage and contribution elections and beneficiary designations) made
by such TSYS DTE under, or with respect to, the corresponding Synovus Welfare Plan, Synovus
long-term disability plan or Synovus Miscellaneous Plan, as applicable, and apply such elections
and designations under the TSYS Welfare Plan, TSYS long-term disability plan or TSYS Miscellaneous
Plan for the remainder of the period or periods for which such elections or designations are by
their original terms applicable.

     6.2 LIABILITIES FOR CLAIMS.

     (a) TSYS Employees and Former TSYS Employees. Effective as of the Distribution Date,
TSYS shall, or shall have caused one or more members of the TSYS Group to, assume all Liabilities
under the Synovus Welfare Plans and the Synovus Miscellaneous Plans for claims incurred by TSYS
Employees and Former TSYS Employees, in each case, regardless of whether such Liabilities relate to
claims incurred before, on or after the Distribution Date, and TSYS agrees to pay, perform and
discharge all such Liabilities; provided, however, that notwithstanding the foregoing, TSYS and
members of the TSYS group shall not assume any Liability under such plans related to a claim
incurred by a TSYS Employee or Former TSYS Employee before the Distribution Date to the extent such
claim is covered under an insurance contract held by Synovus or a member of the Synovus Group.

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     (b) TSYS DTEs. Effective as of the Transfer Date for each TSYS DTE, TSYS shall, or
shall have caused one or more members of the TSYS Group to, assume all Liabilities under the
Synovus Welfare Plans and the Synovus Miscellaneous Plans for claims incurred by such TSYS DTE,
regardless of whether such Liabilities relate to claims incurred before, on or after, his or her
Transfer Date, and TSYS agrees to pay, perform and discharge all such Liabilities; provided,
however, that notwithstanding the foregoing, TSYS and members of the TSYS group shall not assume
any Liability under such plans related to a claim incurred by a TSYS DTE before his or her Transfer
Date to the extent
such claim is covered under an insurance contract held by Synovus or a member of the Synovus
Group.

     (c) Synovus Liabilities. Synovus shall retain all Liabilities under the Synovus
Welfare Plans and the Synovus Miscellaneous Plans for claims incurred by Synovus Employees and
Former Synovus Employees, and Synovus (subject to Section 6.2(a) and Section 6.2(b)), shall cause
the Synovus Welfare Plans and the Synovus Miscellaneous Plans to continue to process and pay all
claims incurred and reported before the Distribution Date for TSYS Employees and Former TSYS
Employees and all claims incurred and reported for a TSYS DTE before his or her Transfer Date in
accordance with each such plan’s standard policies and practices for processing and paying claims.
TSYS shall reimburse Synovus for any claims processed and paid under Section 6.2(c) for TSYS
Employees, Former TSYS Employees and TSYS DTEs in accordance with Sections 6.2(a) and (b).

SECTION 7

FLEXIBLE SPENDING ACCOUNT PLANS

     7.1 PLANS. Effective as of the Distribution Date and continuing for the period commencing on
the Distribution Date and ending on the earlier of December 31, 2008 or the Transaction Change
Date, TSYS (acting directly or through a member of the TSYS Group) shall establish flexible
spending account plans (the “TSYS Flexible Spending Account Plans”) with features that are
the same as those in the Synovus flexible spending account plans on December 31, 2007 or, if the
Synovus flexible spending account plans are amended after December 31, 2007 and TSYS elects to make
such amendments, the Synovus flexible spending account plans as amended (the “Synovus Flexible
Spending Account Plans”). Effective as of the Distribution Date, TSYS (acting directly or
through a member of the TSYS Group) shall assume responsibility for administering all reimbursement
claims under the TSYS Flexible Spending Account Plans for TSYS Participants with respect to
calendar year 2008. With respect to each TSYS DTE, effective as of such TSYS DTE’s Transfer Date,
TSYS (acting directly or through a member of the TSYS Group) shall assume responsibility for
administering all reimbursement claims under the TSYS Flexible Spending Account Plans for such TSYS
DTE with respect to the calendar year in which such TSYS DTE’s Transfer Date occurs, whether
arising before, on, or after such Transfer Date.

     7.2 CASH TRANSFERS. As soon as administratively practicable following a TSYS DTE’s Transfer
Date, Synovus shall cause to be transferred to TSYS an amount in cash equal to (i) the sum of all
contributions to the Synovus Flexible Spending Account Plans made with respect to calendar year
2008 by or on behalf of such TSYS DTE for the calendar year in which the Transfer Date for such
TSYS DTE occurs, reduced by (ii) the sum of all claims incurred in

19

 

the calendar year in which the
applicable Transfer Date occurs and paid by the Synovus Flexible Spending Account Plans with
respect to each TSYS DTE. If a TSYS DTE has a negative balance in the Synovus Flexible Spending
Account Plans related to health care expenses on the Transfer Date, TSYS shall reimburse Synovus
for such shortfall to the extent of the payroll deductions TSYS collects from the TSYS
DTE after the Transfer Date and before the end of the calendar year in which the Transfer Date
occurs. All assets or obligations relating to all participants in the Synovus Flexible Spending
Account Plans with respect to periods ending on or before December 31, 2007 (or December 31, 2008
for each TSYS DTE with a Transfer Date in calendar year 2009) will be retained by Synovus.

     7.3 SYNOVUS DTEs. The administration of reimbursement claims under the Synovus Flexible
Spending Account Plans for a Synovus DTE and the related cash transfers shall be handled in the
same manner (although the respective duties and obligations of Synovus and TSYS are reversed) as
the administration and cash transfers are handled for a TSYS DTE under Section 7.1 and Section 7.2.

SECTION 8

COBRA

     8.1 TSYS PARTICIPANTS. Effective as of the Distribution Date, TSYS (acting directly or
through a member of the TSYS Group) shall assume, or shall have caused the TSYS Welfare Plans to
assume, responsibility for compliance with the health care continuation coverage requirements of
COBRA with respect to TSYS Participants who, as of the day prior to the Distribution Date, were
covered under a Synovus Welfare Plan pursuant to COBRA or who had a COBRA qualifying event (as
defined in Code Section 4980B) prior to the Distribution Date.

     8.2 TSYS DTEs. Effective as of a TSYS DTE’s Transfer Date, TSYS (acting directly or through a
member of the TSYS Group) shall assume, or shall have caused the TSYS Welfare Plans to assume,
responsibility for compliance with the health care continuation coverage requirements of COBRA with
respect to such TSYS DTE (and his or her qualified beneficiaries under COBRA) to the extent such
TSYS DTE was, as of the day prior to such TSYS DTE’s Transfer Date, covered under a Synovus Welfare
Plan pursuant to COBRA or who had a COBRA qualifying event (as defined in Code Section 4980B) prior
to the TSYS DTE’s Transfer Date.

     8.3 SYNOVUS DTEs. Effective as of a Synovus DTE’s Transfer Date, Synovus (acting directly or
through a member of the Synovus Group) shall assume, or shall have caused the Synovus Welfare Plans
to assume, responsibility for compliance with the health care continuation coverage requirements of
COBRA with respect to such Synovus DTE (and his or her qualified beneficiaries under COBRA) to the
extent such Synovus DTE was, as of the day prior to such Synovus DTE’s Transfer Date, covered under
a TSYS Welfare Plan pursuant to COBRA or who had a COBRA qualifying event (as defined in Code
Section 4980B) prior to the Synovus DTE’s Transfer Date.

20

 

SECTION 9

LONG-TERM DISABILITY

     (a) Effective as of the Distribution Date and continuing until the earlier of December 31,
2008 or the Transaction Change Date, TSYS (acting directly or through a member of the TSYS Group)
shall establish a long-term disability plan with eligibility and benefits that are the same as the
eligibility and benefits provided under the Synovus long-term disability plan on December 31, 2007
or, if the Synovus long-term disability plan is amended after December 31, 2007 and TSYS elects to
make such amendments, the Synovus long-term disability plan as so amended. Each TSYS Participant
and each Synovus Participant who is receiving long-term disability benefits as of the Distribution
Date shall continue (subject to any applicable plan limitations) to receive benefits on or after
the Distribution Date under the same long-term disability plan that is providing such benefits
immediately before the Distribution Date. In the event a TSYS Participant or Synovus Participant
incurs an illness or injury before the Distribution Date which would entitle such TSYS Participant
or Synovus Participant to receive long-term disability benefits beginning on or after the
Distribution Date, such individual shall be entitled to receive (subject to any applicable plan
limitations) long-term disability benefits on or after the Distribution Date under the long-term
disability plan in which such TSYS Participant or Synovus Participant participated immediately
before the Distribution Date.

SECTION 10

WORKERS’ COMPENSATION

     Synovus shall be responsible for all liabilities for workers’ compensation claims incurred by
TSYS Participants before the Distribution Date and TSYS shall be responsible for all liabilities
for workers’ compensation incurred by TSYS Participants on or after the Distribution Date.

SECTION 11

SEVERANCE BENEFITS

     Synovus and TSYS acknowledge and agree that the transactions contemplated by the Distribution
Agreement will not cause any TSYS Participant or Synovus Participant to be entitled to benefits
under any policy, plan, program or agreement of Synovus or TSYS or any member of the Synovus Group
or the TSYS Group that provides for the payment of severance or similar benefits in the event of a
termination of employment.

SECTION 12

ANNUAL INCENTIVE PLANS

     Synovus shall be responsible for all Liabilities and fully perform, pay and discharge all
annual bonus obligations relating to any annual incentive plan for Synovus Employees for 2008 and
thereafter, and TSYS shall be responsible for all Liabilities and fully perform, pay and discharge
all annual bonus obligations, relating to any annual incentive plan for TSYS

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Employees for 2008 and
thereafter. However for each TSYS DTE, TSYS shall be responsible for all Liabilities and fully
perform, pay and discharge all annual bonus obligations to such individual for the calendar year
which includes such individual’s Transfer Date, regardless of whether such obligations arise under
a Synovus bonus plan, a TSYS bonus plan, or a combination of such plans, and for each Synovus DTE,
Synovus shall be responsible for all Liabilities and fully perform, pay and discharge all annual
bonus obligations to such individual for the calendar year which includes such individual’s
Transfer Date, regardless of whether such obligations arise under a Synovus bonus plan, a TSYS
bonus plan, or a combination of such plans, provided that in either case in no event shall the
amount payable in respect of the portion of the calendar year preceding the applicable Transfer
Date be less than a pro-rata portion of the bonus that would have been earned under the plan in
effect during such period had participation in such plan continued for the remainder of the
calendar year. Synovus shall be responsible for all Liabilities and fully perform, pay and
discharge all annual bonus obligations in respect of 2007 for each individual who was on a Synovus
payroll for the entirety of 2007, and TSYS shall be responsible for all Liabilities and fully
perform, pay and discharge all annual bonus obligations in respect of 2007 for each individual who
was on a TSYS payroll for the entirety of 2007, regardless whether such person is a Synovus
Employee or a TSYS Employee. Notwithstanding the foregoing, in no event shall a Person receive a
duplication of benefits under this Section 12.

SECTION 13

EQUITY INCENTIVE PLANS

     13.1 EQUITY INCENTIVE AWARDS. This Section 13 sets forth obligations and agreements between
the Parties with respect to the treatment of outstanding equity incentive awards as of the
Distribution Date.

     13.2 TREATMENT OF OUTSTANDING SYNOVUS OPTIONS.

     (a) Synovus Employees. Each option to purchase shares of Synovus Common Stock (each,
a “Synovus Option”) outstanding under the Synovus Stock Plans on the Distribution Date
which is held by any Person other than an TSYS Employee or a Former TSYS Employee shall remain an
option to purchase Synovus Common Stock issued under the Synovus Stock Plans (each such option, a
“Remaining Synovus Option”). Each Remaining Synovus Option shall be subject to the same
terms and conditions after the Distribution Date as the terms and conditions applicable to the
corresponding Synovus Option immediately prior to the Distribution Date. The exercise price and
number of shares subject to each Remaining Synovus Option shall be adjusted by action of the
Synovus
Committee under the applicable Synovus Stock Plan as follows: (i) the number of shares of Synovus
Common Stock subject to each such Remaining Synovus Option shall be equal to the product of (x) the
number of shares of Synovus Common Stock subject to the corresponding Synovus Option immediately
prior to the Distribution Date and (y) the Synovus Share Ratio, with fractional shares rounded down
to the nearest whole share and (ii) the per-share exercise price of each such Remaining Synovus
Option shall be equal to the product of (x) the per-share exercise price of the corresponding
Synovus Option immediately prior to the Distribution Date and (y) the Synovus Price Ratio, rounded
up to the nearest whole cent;

22

 

provided, however, in all circumstances the adjustment shall be made
in a manner that satisfies Section 409A of the Code.

     (b) TSYS Employees. Each Synovus Option outstanding under the Synovus Stock Plans
which is held by a TSYS Employee or a Former TSYS Employee on the Distribution Date shall be
converted as of the Distribution Date into an option to purchase shares of TSYS Common Stock (each
such option, an “TSYS Option”) pursuant to the terms of the TSYS Stock Plans subject to
terms and conditions after the Distribution Date that are substantially similar to (to the extent
practicable) the terms and conditions applicable to the corresponding Synovus Option immediately
prior to the Distribution Date. The exercise price and number of shares subject to such TSYS
Option shall be determined as follows: (i) the number of shares of TSYS Common Stock subject to
each such TSYS Option shall be equal to the product of (x) the number of shares of Synovus Common
Stock subject to the corresponding Synovus Option immediately prior to the Distribution Date and
(y) the TSYS Share Ratio, with fractional shares rounded down to the nearest whole share and (ii)
the per-share exercise price of each such TSYS Option shall be equal to the product of (x) the
per-share exercise price of the corresponding Synovus Option immediately prior to the Distribution
Date and (y) the TSYS Price Ratio, rounded up to the nearest whole cent; provided, however, in all
circumstances the adjustment shall be made in a manner that satisfies Section 409A of the Code.

     (c) Synovus DTEs and TSYS DTEs.

     (i) Each Remaining Synovus Option held by a TSYS DTE on the Distribution Date shall be
adjusted under Section 13.2(a) on the same basis as any other Synovus Option.

     (ii) Each Remaining Synovus Option that is held by a TSYS DTE on such TSYS DTE’s
Transfer Date shall be amended as of such Transfer Date to treat such TSYS DTE’s employment
with TSYS the same as employment with Synovus for purposes of any vesting schedule
applicable to such Remaining Synovus Option and for purposes of determining when the
exercise period for such Remaining Synovus Option has ended due to a termination of such
TSYS DTE’s employment. Upon the exercise of such a Remaining Synovus Option, the exercise
price shall be paid to (or otherwise satisfied to the satisfaction of) Synovus in accordance
with the terms of the Remaining Synovus Option, and Synovus shall be solely responsible for
the issuance of Synovus Common Stock and for taking reasonable steps to ensure the
withholding of all applicable tax on behalf of TSYS and the remittance of such withholding
tax to TSYS. TSYS shall be responsible for the satisfaction of all tax reporting
requirements in respect
of such exercise, shall be responsible for remitting the appropriate withholding amounts to
the appropriate taxing authorities, and shall be entitled to the benefit of any tax
deduction in respect of the exercise of such Remaining Synovus Option. To the extent TSYS
is entitled to the benefit of any tax deduction in respect of the exercise of such Remaining
Synovus Option by a TSYS DTE, or to the extent TSYS is entitled to the benefit of any tax
deduction in respect of the exercise of a TSYS Option by a TSYS Employee who transfers from
the Synovus Group to the TSYS Group prior to the Distribution Date, TSYS shall reimburse
Synovus within fifteen (15) days after

23

 

such exercise occurs for an amount equal to the
“Option Tax Benefit Reimbursement Amount”. The Option Tax Benefit Reimbursement Amount for
this Section 13.2(c)(ii) shall be equal to the benefit of the tax deduction received by TSYS
with respect to such exercise multiplied by a fraction, the numerator of which fraction
shall be equal to the number of calendar months such employee was employed with the Synovus
Group during the term of said option and the denominator of which fraction shall be equal to
the number of calendar months from the grant date of the option to the exercise date of such
option. Any accounting expense under FAS 123R for each Remaining Synovus Option that is
held by a TSYS DTE as of such TSYS DTE’s Transfer Date shall be borne by TSYS effective as
of such Transfer Date.

     (iii) Each TSYS Option held by a Synovus DTE on such Synovus DTE’s Transfer Date shall
be amended as of such Transfer Date to treat such Synovus DTE’s employment with Synovus the
same as employment with TSYS for purposes of any vesting schedule applicable to such option
and for purposes of determining when the exercise period for such TSYS Option has ended due
to a termination of such Synovus DTE’s employment. Upon the exercise of such a TSYS Option,
the exercise price shall be paid to (or otherwise satisfied to the satisfaction of) TSYS in
accordance with the terms of such TSYS Option, and TSYS shall be solely responsible for the
issuance of TSYS Common Stock and for taking reasonable steps to ensure the withholding of
all applicable tax on behalf of Synovus and the remittance of such withholding tax to
Synovus. Synovus shall be responsible for the satisfaction of all tax reporting
requirements in respect of such exercise, shall be responsible for remitting the appropriate
withholding amounts to the appropriate taxing authorities, and shall be entitled to the
benefit of any tax deduction in respect of the exercise of such TSYS Option. To the extent
Synovus is entitled to the benefit of any tax deduction in respect of the exercise of such
TSYS Option by a Synovus DTE, or to the extent Synovus is entitled to the benefit of any tax
deduction in respect of the exercise of a Remaining Synovus Option by a Synovus Employee who
transfers from the TSYS Group to the Synovus Group prior to the Distribution Date, Synovus
shall reimburse TSYS within fifteen (15) days after such exercise occurs for an amount equal
to the “Option Tax Benefit Reimbursement Amount”. The “Option Tax Benefit Reimbursement
Amount” for this Section 13.2(c)(iii) shall be equal to the benefit of the tax deduction
received by Synovus with respect to such exercise multiplied by a fraction, the numerator of
which fraction shall be equal to the number of calendar months such employee was employed
with the TSYS Group during the term of said option and the denominator of which fraction
shall be equal to the number of calendar months from the grant date of the option to the
exercise date of such option. Any accounting expense under FAS 123R for each TSYS
Option that is held by a Synovus DTE as of such Synovus DTE’s Transfer Date shall be borne
by Synovus effective as of such Transfer Date.

     13.3 TREATMENT OF OUSTANDING TSYS OPTIONS. Each option to purchase TSYS Common Stock held by
an employee of TSYS who transfers to Synovus on the Distribution Date shall be converted into a
Synovus Option using the same basic procedure set forth in Section 13.2(b).

24

 

     13.4 TREATMENT OF OUTSTANDING RESTRICTED STOCK.

     (a) General. Each individual who holds shares of Synovus Restricted Stock outstanding
under a Synovus Stock Plan as of the Distribution Date shall continue to hold such shares of
Synovus Restricted Stock and, in addition, shall receive a dividend of TSYS Common Stock the same
as any other holder of outstanding shares of Synovus Common Stock on the Distribution Date. Such
TSYS Common Stock shall (to the extent practicable) be subject to the same terms, conditions and
restrictions as the related Synovus Restricted Stock. Synovus shall treat employment by TSYS and
each member of the TSYS Group as employment by Synovus under the Synovus Stock Plans with respect
to outstanding Synovus Restricted Stock grants which are held by TSYS Employees and TSYS DTEs and
TSYS shall treat employment by Synovus and each member of the Synovus Group as employment by TSYS
under the TSYS Stock Plans with respect to TSYS Restricted Stock grants which are held by Synovus
Employees and Synovus DTEs.

     (b) Tax Aspects. Upon the lapse of the restrictions on a share of Synovus Restricted
Stock held by a TSYS Employee or TSYS DTE, Synovus shall be responsible for taking reasonable steps
to ensure the withholding of all applicable tax on behalf of TSYS and the remittance of such
withholding tax to TSYS. Upon the lapse of the restrictions on a share of TSYS Restricted Stock or
a share of TSYS Common Stock issued on the Distribution Date to a holder of Synovus Restricted
Stock held by a Synovus Employee or Synovus DTE, TSYS shall be responsible for taking reasonable
steps to ensure the withholding of all applicable tax on behalf of Synovus and the remittance of
such withholding tax to Synovus. TSYS or Synovus as the employer of a TSYS DTE or Synovus DTE,
respectively, on the date, if any, that the restrictions on the restricted stock lapse shall be
entitled to the benefit of any tax deduction with respect to such shares of restricted stock and
shall be responsible for the satisfaction of all tax reporting requirements upon such lapse of the
restrictions and shall be responsible for remitting the appropriate withholding amounts to the
appropriate taxing authorities. To the extent TSYS is entitled to the benefit of any tax deduction
in respect of the lapse of the restrictions on a share of Synovus Restricted Stock held by a TSYS
DTE, or by a TSYS Employee who transfers from the Synovus Group to the TSYS Group prior to the
Distribution Date, TSYS shall reimburse Synovus within fifteen (15) days after such lapse of
restrictions occurs for an amount equal to the “Synovus Restricted Stock Tax Benefit Reimbursement
Amount”. The “Synovus Restricted Stock Tax Benefit Reimbursement Amount” shall be equal to the
benefit of the tax deduction received by TSYS with respect to such lapse of restrictions multiplied
by a fraction, the numerator of which fraction shall be equal to the number of calendar months such
employee was employed with the Synovus Group during
the term of said restricted stock and the denominator of which fraction shall be equal to the
number of calendar months from the grant date of the restricted stock to the date such restrictions
lapse. Any accounting expense under FAS 123R for the shares of Synovus Restricted Stock that are
held by a TSYS DTE as of such TSYS DTE’s Transfer Date shall be borne by TSYS effective as of such
Transfer Date. To the extent Synovus is entitled to the benefit of any tax deduction in respect of
the lapse of the restrictions on a share of TSYS Restricted Stock (or a share of TSYS Common Stock
issued on the Distribution Date to a holder of Synovus Restricted Stock) held by a Synovus DTE, or
by a Synovus Employee who transfers from the TSYS Group to the Synovus Group prior to the
Distribution Date, Synovus shall reimburse TSYS within fifteen (15) days after such occurs for an
amount equal to the “TSYS Restricted Stock Tax Benefit Reimbursement Amount”. The “TSYS Restricted
Stock

25

 

Tax Benefit Reimbursement Amount” shall be equal to the benefit of the tax deduction received
by Synovus with respect to such lapse of restrictions multiplied by a fraction, the numerator of
which fraction shall be equal to the number of calendar months such employee was employed with the
TSYS Group during the term of said restricted stock and the denominator of which fraction shall be
equal to the number of calendar months from the grant date of the restricted stock to the date such
restrictions lapse. Any accounting expense under FAS 123R for the shares of TSYS Restricted Stock
(or a share of TSYS Common Stock issued on the Distribution Date to a holder of Synovus Restricted
Stock) that are held by a Synovus DTE as of such Synovus DTE’s Transfer Date shall be borne by
Synovus effective as of such Transfer Date.

     (c) Forfeitures. If a share of TSYS Restricted Stock or a share of TSYS Common Stock
issued on the Distribution Date to a holder of Synovus Restricted Stock is forfeited, such share of
stock shall revert to TSYS and shall be cancelled by TSYS. If a share of Synovus Restricted Stock
is forfeited, such share of stock shall revert to Synovus and shall be cancelled by Synovus.

     13.5 STOCK PURCHASE PLANS. Synovus shall continue to maintain the Synovus Employee Stock
Purchase Plan (the “Synovus Employee Stock Purchase Plan”) for Synovus Employees and TSYS
shall continue to maintain the TSYS Employee Stock Purchase Plan (the “TSYS Employee Stock
Purchase Plan”) for TSYS Employees as of the Distribution Date. For purposes of the Synovus
Employee Stock Purchase Plan, Synovus shall grant service credit in accordance with Section 2.4
hereof, and for purposes of the TSYS Employee Stock Purchase Plan, TSYS shall grant service credit
in accordance with Section 2.4 hereof.

SECTION 14

TIME OFF BENEFITS

     14.1 TSYS EMPLOYEES AND TSYS DTES. Effective as of the Distribution Date for TSYS Employees
and effective as of the Transfer Date for each TSYS DTE, TSYS shall, or shall have caused one or
more members of the TSYS Group, to assume all Liabilities for vacation time, paid days off, major
medical and other time-off benefits with respect to such individuals, in each case,
regardless of whether such Liabilities relate to claims incurred before, on or after the
Distribution Date or, where applicable, a Transfer Date, and TSYS agrees to pay, perform and
discharge all such Liabilities. Effective as of the Distribution Date, TSYS shall credit each TSYS
Employee with the amount of accrued but unused vacation time, paid days off, major medical and
other time-off benefits pursuant to this Section 14.1 as of the Distribution Date, or with respect
to each TSYS DTE, as of his or her Transfer Date. Notwithstanding the foregoing, TSYS shall not be
required to credit any TSYS Employee or TSYS DTE with any accrual to the extent that a benefit
attributable to such accrual is provided by the Synovus Group.

     14.2 SYNOVUS DTE. Effective as of the Transfer Date for each Synovus DTE, Synovus shall, or
shall have caused one or more members of the Synovus Group, to assume all Liabilities for vacation
time, paid days off, major medical and other time-off benefits with respect to such individuals, in
each case, regardless of whether such Liabilities relate to claims incurred before, on or after the
Transfer Date and Synovus agrees to pay, perform and discharge

26

 

all such Liabilities. Effective as
of the Transfer Date, Synovus shall credit each Synovus DTE with the amount of accrued but unused
vacation time, paid days off, major medical and other time-off benefits pursuant to this Section
14.2 as of the Transfer Date. Notwithstanding the foregoing, Synovus shall not be required to
credit any Synovus DTE with any accrual to the extent that a benefit attributable to such accrual
is provided by the TSYS Group.

SECTION 15

DIRECTOR PLANS

     Synovus and TSYS shall take the necessary and appropriate steps to timely separate (on an
individual company basis) any vendor agreements and administration arrangements that apply to
Synovus and TSYS on a combined basis as of the Distribution Date with respect to any plans,
programs and arrangements maintained for the benefit of members of the Board of Directors of
Synovus and the Board of Directors of TSYS.

SECTION 16

INDEMNIFICATION

     The indemnification provisions in the Indemnification and Insurance Matters Agreement shall
apply to this Agreement as if such provisions were set forth in this Agreement.

SECTION 17

GENERAL AND ADMINISTRATIVE

     17.1 SHARING OF INFORMATION. Synovus and TSYS (acting directly or through members of the
Synovus Group or TSYS Group, respectively) shall provide to the other and their respective agents
all Information in accordance with Article 5 of the Distribution Agreement. The Parties also
hereby agree to enter into any agreement that may be required for the sharing of any Information
pursuant to this Agreement to comply with the requirements of HIPAA and any other applicable Law.

     17.2 TRANSFER OF EMPLOYEE RECORDS. Subject to applicable Law, as soon as practicable
following the Distribution Date, Synovus shall transfer and assign to TSYS all Employee Records
relating to TSYS Participants. For purposes of this Agreement, Employee Records shall mean, as
applicable, records that pertain to (a) skill and development training (I-learn), (b) employment
histories, (c) salary and benefit information, such as, all payroll deduction authorizations and
elections, whether voluntary or mandated by law, including but not limited to W-4 forms and
deductions for benefits such as insurance, flexible spending account and retirement savings,
charitable giving, insurance beneficiary designations, and flexible spending account enrollment
confirmations, (d) I-9 forms and work authorization records (“Immigration Records”), (e)
Occupation, Safety and Health Administration reports and records and (f) active medical restriction
forms. Subject to applicable law, Synovus shall transfer and assign to TSYS all Employee Records
relating to TSYS DTEs on the Transfer Date, or as soon as practicable following the Transfer Date,
for each TSYS DTE. Synovus may retain originals

27

 

of, copies of, or access to the Employee Records,
in accordance with applicable Law, and as long as necessary by Synovus to provide services to TSYS
or on its behalf pursuant to a Transition Services Agreement. Subject to applicable law, TSYS
shall transfer and assign to Synovus all Employee Records for Synovus DTEs on the Transfer Date, or
as soon as practicable following the transfer date, for each Synovus DTE and shall transfer and
assign to Synovus all Employee Records for TSYS employees who transfer to Synovus on the
Distribution Date. Immigration Records for Synovus DTEs and TSYS DTEs will, if and as appropriate,
become a part of Synovus’s or TSYS’s H-1B visa public access files, as applicable.

     17.3 REASONABLE EFFORTS/COOPERATION. Each of the Parties will use its commercially reasonable
efforts to promptly take, or cause to be taken, all actions and to do, or cause to be done, all
things necessary, proper or advisable under applicable Laws and regulations to consummate the
transactions contemplated by this Agreement.

     17.4 EMPLOYER RIGHTS. Nothing in this Agreement shall prohibit TSYS or any member of the TSYS
Group from amending, modifying or terminating any TSYS Benefit Plan, at any time within its sole
discretion provided that any such amendment, modification or termination shall not relieve TSYS
from any obligation herein and shall comply with the requirements of the Tax Sharing
Agreement. Nothing in this Agreement shall prohibit Synovus or any member of the Synovus
Group from amending, modifying or terminating any Synovus Benefit Plan, at any time within its sole
discretion provided that any such amendment, modification or termination shall not relieve Synovus
from any obligation herein and shall comply with the requirements of the Tax Sharing Agreement.

     17.5 NO THIRD-PARTY BENEFICIARIES. This Agreement is solely for the benefit of the Parties
and their respective successors and permitted assigns, and nothing in this Agreement, express or
implied, is intended to or shall confer upon any other Person or Persons any rights, benefits or
remedies of any nature whatsoever under or by reason of this Agreement, including any TSYS
Participant and any Synovus Participant. Furthermore, nothing in this Agreement is intended (i) to
confer upon any employee or former employee of Synovus, TSYS or any member of the Synovus Group or
TSYS Group any right to continued employment, or any recall or similar rights to an individual on
layoff or any type of approved leave, or (ii) to be construed to relieve any insurance company of
any responsibility for any employee benefit under any Benefit Plan or any other Liability.

     17.6 CONSENT OF THIRD PARTIES. If any provision of this Agreement is dependent on the consent
of any third party and such consent is withheld, the Parties shall use their reasonable best
efforts to implement the applicable provisions of this Agreement to the fullest extent practicable.
If any provision of this Agreement cannot be implemented due to the failure of such third party to
consent, the Parties shall negotiate in good faith to implement the provision in a mutually
satisfactory manner; provided, however, TSYS shall not have any obligation under this Agreement to
Synovus to obtain a novation with respect to obligations which Synovus or any member of the Synovus
Group might have with respect to any TSYS Participant.

     17.7 BENEFICIARY DESIGNATION/RELEASE OF INFORMATION/RIGHT TO REIMBURSEMENT. To the extent permitted by applicable Law and except as otherwise

28

 

provided for in this Agreement, all beneficiary
designations, authorizations for the release of Information and rights to reimbursement made by or
relating to TSYS Participants under Synovus Benefit Plans shall be transferred and assigned to and
be in full force and effect under the corresponding TSYS Benefit Plans until such beneficiary
designations, authorizations or rights are replaced or revoked by, or no longer apply to, the
relevant TSYS Participant.

     17.8 NOT A CHANGE IN CONTROL. The Parties acknowledge and agree that the transactions
contemplated by the Distribution Agreement and this Agreement do not constitute a “change in
control” for purposes of any Synovus Benefit Plan or TSYS Benefit Plan.

SECTION 18

MISCELLANEOUS

     18.1 EFFECT IF DISTRIBUTION DOES NOT OCCUR. Notwithstanding anything in this Agreement to the
contrary, if the Distribution Agreement is terminated prior to the Distribution Date, then all
actions and events that are, under this Agreement, to be taken or occur effective immediately prior
to, as of or following the Distribution Date, or otherwise in connection with the Separation, shall
not be taken or occur except to the extent specifically agreed to in writing by Synovus and TSYS
and neither Party shall have any Liabilities to the other Party under this Agreement.

     18.2 RELATIONSHIP OF PARTIES. Nothing in this Agreement shall be deemed or construed by the
Parties or any third party as creating the relationship of principal and agent, partnership, joint
venture or other fiduciary relationship between the Parties, it being understood and agreed that no
provision contained herein, and no act of the Parties, shall be deemed to create any relationship
between the Parties other than the relationship set forth in this Agreement.

     18.3 INDIRECT ACTION. Each of Synovus and TSYS shall cause to be performed, and hereby
guarantees the performance of, all actions, agreements and obligations set forth in this Agreement
to be performed indirectly by such Party or by the Synovus Group or the TSYS Group, respectively.

     18.4 NOTICES. All notices, requests, claims, demands and other communications under this
Agreement shall be provided in accordance with the Notice provision of the Distribution Agreement.

     18.5 ENTIRE AGREEMENT. This Agreement, the Distribution Agreement, and each other Ancillary
Agreement, including any related annexes, schedules and exhibits, as well as any other agreements
and documents referred to in this Agreement and in any such Ancillary Agreement, shall together
constitute the entire agreement between the Parties with respect to the subject matter hereof and
thereof and shall supersede all prior negotiations, agreements and understandings of the Parties of
any nature, whether oral or written, with respect to such subject matter.

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     18.6 AMENDMENTS AND WAIVERS. This Agreement may not be modified or amended except by an
instrument or instruments in writing signed by an authorized officer of each Party. Except as
otherwise provided in this Agreement, any failure of any of the Parties to comply with any
obligation, covenant, agreement or condition herein may be waived by the Party entitled to the
benefits thereof only by a written instrument signed by an authorized officer of the Party granting
such waiver, but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure.

     18.7 GOVERNING LAW. This Agreement and any dispute arising out of, in connection with or
relating to this Agreement shall be governed by and construed in accordance with the Laws of the
State of Georgia, without giving effect to the conflicts of laws principles thereof.

     18.8 HEADINGS. The section and other headings contained in this Agreement are inserted for
convenience of reference only and shall not affect in any way the meaning or interpretation of this
Agreement.

     18.9 COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute one and the same
Agreement.

     18.10 ASSIGNMENT. This Agreement may not be assigned by either Party except as provided in
the Distribution Agreement with respect to an assignment under such Distribution Agreement.

     18.11 SEVERABILITY. The invalidity or unenforceability of any term or provision of this
Agreement shall not affect the validity or enforceability of this Agreement or of any other term or
provision of this Agreement, which shall remain in full force and effect; provided, however, if any
term or provision of this Agreement is determined to be invalid or unenforceable, the Parties shall
negotiate in good faith to amend such term or provision so that it will be valid and enforceable.
If it is ever held that any restriction hereunder is too broad to permit enforcement of such
restriction to its fullest extent, each Party hereby agrees that such restriction may be enforced
to the maximum extent permitted by Law, and each Party hereby consents and agrees that such scope
may be judicially modified accordingly in any proceeding brought to enforce such restriction.

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day
and year first above written.

	 	 	 	 	 
	 	Synovus Financial Corp.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

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	 	Total System Services, Inc.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

31EX-10.2 FORM OF TRANSITION SERVICES AGREEMENT

 

Exhibit 10.2

EXHIBIT D

FORM OF TRANSITION SERVICES AGREEMENT

     THIS TRANSITION SERVICES AGREEMENT, dated as of                     , 2007 (this “Agreement”),
is made by and between Synovus Financial Corp., a Georgia corporation (“Synovus”), and
Total System Services, Inc., a Georgia corporation (“TSYS”). Synovus and TSYS may each be
referred to herein as a “Party” and/or the “Parties” as the case may require.

WITNESSETH:

     WHEREAS, Synovus, Columbus Bank and Trust Company and TSYS are parties to an Agreement and
Plan of Distribution, dated as of October 25, 2007 (the “Distribution Agreement”), pursuant
to which Synovus will, subject to the terms and conditions in the Distribution Agreement,
distribute to its shareholders all of the common stock of TSYS held by it as of a certain date;

     WHEREAS, in connection with the transactions contemplated by the Distribution Agreement,
Synovus and TSYS wish to enter into this Agreement for purposes of continuity and transition; and

     WHEREAS, TSYS desires to cause Synovus and its appropriate Subsidiaries (as defined below) to
provide to TSYS and its appropriate Subsidiaries the Services (as defined below) set forth on
Schedule A hereto, and Synovus is willing to provide, or cause its appropriate Subsidiaries
to provide, such Services, and Synovus desires to cause TSYS and its appropriate Subsidiaries to
provide to Synovus and its appropriate Subsidiaries the Services set forth on Schedule B
hereto, and TSYS is willing to provide, or cause its appropriate Subsidiaries to provide, such
Services, all on the terms and conditions set forth below.

     NOW, THEREFORE, the Parties, in consideration of the foregoing and the mutual covenants
contained herein, agree as follows:

     SECTION 1. SPECIFIC DEFINITIONS.

     In addition to the terms defined elsewhere in this Agreement, as used in this Agreement, the
following terms have the respective meanings set forth below:

     “Acquisition Transaction” shall mean, with respect to any Party, a transaction (i) in
which such Party acquires (by merger, asset purchase, stock purchase or otherwise) the business of
a Third Party that has annual revenues in the fiscal year preceding such transaction equal to or
greater than thirty percent (30%) of the consolidated revenues of such Party in the fiscal year
preceding such transaction, (ii) in which such Party merges with or into a Third Party that has
annual revenues in the fiscal year preceding such transaction equal to or greater than thirty
percent (30%) of the consolidated revenues of such Party in the fiscal year preceding such
transaction or (iii) that would result in a Change in Control of such Party.

 

 

     “Applicable Rate” shall mean the rate of interest per annum announced from time to
time by Columbus Bank and Trust Company as its prime lending rate.

     “Ancillary Agreement” shall have the meaning given to it in the Distribution
Agreement.

     “Bankruptcy Event” with respect to a Party shall mean the filing of an involuntary
petition in bankruptcy or similar proceeding against such Party seeking its reorganization,
liquidation or the appointment of a receiver, trustee or liquidator for it or for all or
substantially all of its assets, whereupon such petition shall not be dismissed within sixty (60)
days after the filing thereof, or if such Party shall (i) apply for or consent in writing to the
appointment of a receiver, trustee or liquidator of all or substantially all of its assets, (ii)
file a voluntary bankruptcy petition, (iii) make a general assignment for the benefit of creditors
or (iv) file a petition or an answer seeking reorganization or an arrangement with its creditors or
take advantage of any insolvency Law with respect to itself as debtor.

     “Change in Control” shall mean, with respect to Synovus or TSYS, as the case may be,
the occurrence of any of the following: (a) after the Effective Time, any Person or group of
Persons acquires the beneficial ownership of more than thirty-five percent (35%) of the outstanding
voting power of Synovus or TSYS, as applicable (within the meaning of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended, and the applicable rules and regulations thereunder),
or (b) during any period of 12 consecutive months commencing after the Effective Time, individuals
who on the first day of such period were directors of Synovus or TSYS, as applicable (together with
any replacement or additional directors who were nominated or elected by a majority of directors
then in office), cease to constitute a majority of the Board of Directors of Synovus or TSYS, as
applicable.

     “Confidential Disclosure Agreement” shall have the meaning given to it in the
Distribution Agreement.

     “Confidential Information” shall have the meaning given to it in the Confidential
Disclosure Agreement.

     “Contaminant” shall mean any virus, worm, trojan horse, software lock, “drop dead”
device, trap door, time bomb, or any other contaminant or material that is designed in substantial
part to access and modify or delete in an unauthorized manner, disrupt or damage any data files or
other computer programs, software or hardware or any material that provides access to any such
contaminants or materials.

     “Distribution Agreement” shall have the meaning set forth in the recitals.

     “DRP” shall have the meaning set forth in Section 2.9.

     “Effective Time” shall have the meaning given to it in the Distribution Agreement.

     “Governmental Authority” shall mean any federal, state, local, foreign or
international court, government, department, commission, board, bureau, agency, official or
regulatory, administrative or governmental authority.

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     “Law” shall mean all laws, statutes and ordinances and all regulations, rules and
other pronouncements of Governmental Authorities having the effect of law of the United States, any
foreign country, or any domestic or foreign state, province, commonwealth, city, country,
municipality, territory, protectorate, possession or similar instrumentality, or any Governmental
Authority thereof.

     “Loss” shall mean all losses, liabilities, damages, claims, demands, judgments or
settlements of any nature or kind, known or unknown, fixed, accrued, absolute or contingent,
liquidated or unliquidated, including all reasonable costs and expenses (including reasonable legal
fees, accounting fees or otherwise as such costs are incurred) relating thereto.

     “Person” shall mean any natural person, corporation, business trust, limited liability
company, joint venture, association, company, partnership or government, or any agency or political
subdivision thereof.

     “Restricted Assignment Period” shall have the meaning given to it in the Distribution
Agreement.

     “Services” shall mean (as the context permits) the Synovus Services and/or the TSYS
Services.

     “Subsidiary” shall have the meaning given to it in the Distribution Agreement.

     “Synovus Services” shall mean, subject to Section 2.1(c), those services to be
provided by Synovus or its appropriate Subsidiaries to TSYS or any of its appropriate Subsidiaries
designated by TSYS, as set forth on Schedule A hereto or as otherwise set forth herein.

     “Systems” shall have the meaning set forth in Section 2.10.

     “Third Party” shall mean a Person who is not a Party or a Subsidiary thereof.

     “TSYS Services” shall mean, subject to Section 2.1(c), those services to be
provided by TSYS or its appropriate Subsidiaries to Synovus or any of its appropriate Subsidiaries
designated by Synovus, as set forth on Schedule B hereto or as otherwise set forth herein.

     SECTION 2. SERVICES.

     Section 2.1 Services. (a) Synovus shall provide, or cause its appropriate Subsidiaries to
provide, to TSYS and its appropriate Subsidiaries each Synovus Service for the term set forth
opposite the description of such Synovus Service in Schedule A.

          (b) TSYS shall provide, or cause its appropriate Subsidiaries to provide, to Synovus and its
appropriate Subsidiaries each TSYS Service for the term set forth opposite the description of such
TSYS Service in Schedule B.

          (c) Notwithstanding anything to the contrary in this Agreement, the Services shall not
include, nor shall this Agreement in any way apply to, any services or products provided pursuant
to those agreements between the Parties set forth on Schedule C hereto.

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     Section 2.2 Additional Services. (a) From time to time after the Effective Time, the Parties
may identify additional services that will be provided in accordance with the terms of this
Agreement (the “Additional Services”). The Parties may agree in writing on Additional
Services during the term of this Agreement by supplementing Schedule A or Schedule
B, as the case may be.

          (b) Except as set forth in the last sentence of this Section 2.2(b), the Party that is
to provide or cause its Subsidiary to provide any Additional Service shall be obligated to perform
such Additional Service, so long as such Additional Service: (1) was provided by the providing
Party or its Subsidiary immediately prior to the Effective Time and is reasonably believed by the
receiving Party to have been inadvertently or unintentionally omitted from Schedule A or
Schedule B, as the case may be, or (2) is necessary to effectuate an orderly transition
under this Agreement and the Distribution Agreement, unless in either case such performance would
significantly disrupt the providing Party’s operations or cannot be performed using the existing
resources of the providing Party taking into account other commitments and needs of the providing
Party. The fee for providing an Additional Service under this Section 2.2(b) will be a
reasonable charge as agreed to by the Parties prior to the performance of such Additional Service.
If the providing Party reasonably believes the performance of Additional Services required under
clauses (1) or (2) above would significantly disrupt the providing Party’s operations or cannot be
performed using the existing resources of the providing Party, the providing Party and the
receiving Party shall negotiate in good faith to establish terms under which the providing Party
can provide such Additional Services; provided, however, that the providing Party
shall not be obligated to provide such Additional Services if, following good faith negotiation,
the Parties are unable to reach agreement on such terms.

     Section 2.3 Standard of Service. The Services shall be provided by each Party in good faith
and, except as otherwise set forth on Schedule A or Schedule B for a specific
Service, at substantially the same level of service that such Services have historically been
provided by the providing Party.

     Section 2.4 Service Boundaries. (a) Except as otherwise provided in Section 2.4(b)
or Section 2.4(c) below, (i) each of Synovus and TSYS shall be required to provide, or
cause its appropriate Subsidiaries to provide, the Services to the other Party and its appropriate
Subsidiaries only to the extent and only at the locations such Services are being provided
immediately prior to the Effective Time, (ii) the Services will be available only for purposes of
conducting the business of the Party receiving the Services and (iii) each Party acknowledges and
agrees that the providing Party shall have no obligation to provide Services to segments of the
receiving Party’s business that have been added or acquired subsequent to the Effective Time, in
connection with a Change in Control of the receiving Party or otherwise.

          (b) At any time prior to May 31, 2008, (i) a Party receiving any Service may provide written
notice to the providing Party of any location that is additional to those locations at which such
Service is being provided immediately prior to the Effective Time and, within a reasonable period
of time as mutually agreed by the Parties, which period of time shall in no event be later than
ninety (90) days following receipt of such notice, the providing Party shall be required, for a
reasonable charge, to provide, or cause its appropriate Subsidiaries to provide, such Service to
the receiving Party or any of its appropriate Subsidiaries at such additional

4

 

location for the then-remaining duration of the term of the applicable Service or for such
other duration as may be agreed in writing by the Parties, and (ii) a Party receiving any Service
may provide written notice to the providing Party requesting that such Service be made available to
the receiving Party for purposes of conducting its business in a manner substantially different
from the manner its business was conducted prior to the Effective Time and, within a reasonable
period of time as mutually agreed by the Parties, which period of time shall in no event be later
than ninety (90) days following receipt of such notice (which notice shall include a reasonably
detailed description of the manner in which the conduct of business has or is to be changed and the
resulting increase in the scope of the applicable Service), the providing Party shall be required,
for a reasonable charge as agreed to by the Parties prior to the performance of such Service, to
provide, or cause its appropriate Subsidiaries to provide, such Service to the receiving Party or
any of its appropriate Subsidiaries for purposes of conducting the business of the receiving Party
in such substantially different manner for the then-remaining duration of the term of the
applicable Service or for such other duration as may be agreed in writing by the Parties, unless,
in case of either Section 2.4 (b)(i) or Section 2.4(b)(ii), such performance would
significantly disrupt the providing Party’s operations or increase in an unduly burdensome manner
the scope of its responsibility under this Agreement.

          (c) If at any time prior to May 31, 2008 a Party receiving Services under this Agreement
enters into a definitive agreement with respect to, or consummates, an Acquisition Transaction,
such receiving Party may (but is not required to) notify the providing Party in writing on or prior
to May 31, 2008 of such receiving Party’s election to convert its systems directly to the systems
of the Third Party to such Acquisition Transaction. Upon timely receipt of such a notice of
election, the providing Party shall provide reasonable cooperation and assistance to the receiving
Party in effecting such conversion; provided, however, the receiving Party shall
reimburse the providing Party for all reasonable expenses incurred by the providing Party in
connection with such conversion efforts.

     Section 2.5 Representations and Warranties. Each Party represents and warrants to the other
that it has the right to enter into and perform this Agreement, this Agreement has been validly
executed by a duly authorized representative, and once executed, will impose valid and binding
legal obligations upon it; and, except as set forth on Schedule D, its entry into and
performance of this Agreement will not conflict with any of its existing obligations or
undertakings, or any other agreement to which it is a party or bound by.

     Section 2.6 DISCLAIMER OF OTHER WARRANTIES. EXCEPT AS EXPRESSLY SET FORTH HEREIN, NEITHER
SYNOVUS NOR TSYS MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING
BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,
WITH RESPECT TO THE SERVICES OR OTHER DELIVERABLES PROVIDED BY IT OR ITS APPROPRIATE SUBSIDIARIES
HEREUNDER.

     Section 2.7 Systems. TSYS is contracting for use of Synovus’s systems, and Synovus is
contracting for use of TSYS’s systems, on an “as-is” basis. Subject to the following sentence, it
will be at Synovus’s discretion as to whether enhancements or modifications to its systems will be
made available to TSYS and it will be at TSYS’s discretion as to whether enhancements or

5

 

modifications to its systems will be made available to Synovus. After the Effective Time,
there will be no enhancements or modifications to the systems of Synovus or TSYS at the other
Party’s request, unless the providing Party consents in writing to such enhancement or
modification; provided, however, if the requesting Party agrees in writing to pay,
or reimburse the providing Party for, any and all of the reasonable costs associated with such
enhancement or modification, including, without limitation, any reasonable costs associated with
“winding down” such enhancement or modification following the termination of the applicable
Service, and such enhancement or modification is reasonably necessary in order for the
requesting Party to comply with then applicable Law, then such consent shall not be required and
the providing Party shall make such enhancement or modification.

     Section 2.8 Contaminants. Both Parties agree to implement and maintain reasonable
anti-Contaminant software programs and firewalls and to take reasonable measures to prevent the
introduction of Contaminants into Systems used in connection with the Services. If a Contaminant
is found to have been introduced into the Systems used in connection with the Services, the Parties
shall reasonably cooperate to eradicate and reduce the effects of such Contaminant and, if the
Contaminant causes a loss of operational efficiency or loss of data, reasonably cooperate to
mitigate any losses of operational efficiency or data caused by it.

     Section 2.9 Disaster Recovery. During the term of this Agreement the providing Party shall
maintain business continuation and disaster recovery plans that it maintained for the Services
during the twelve (12) months immediately preceding the Effective Time (the “DRP”). The
providing Party shall update and test the operability of the DRP with the same frequency and
testing mechanisms that it used during the twelve (12) months immediately preceding the Effective
Time, and shall make available to the receiving Party the results of such tests.

     Section 2.10 Systems Security. If a Party (or any of its Subsidiaries) is given access to the
other’s computer system(s) or software (“Systems”) in connection with performance of the
Services, such Party that is given access shall comply (and shall cause its Subsidiaries to comply)
with the other Party’s system security policies, procedures, and requirements, will not tamper
with, compromise or circumvent any security or audit measures employed by the other Party, and
shall ensure that it accesses the other Party’s Systems solely as reasonably necessary to perform
the Services in accordance with the provisions of this Agreement. Each Party shall take reasonable
steps to ensure that only those users who are specifically authorized to gain access to the other
Party’s Systems do gain such access and to prevent unauthorized destruction, alteration or loss of
information contained therein. Each Party undertakes to inform promptly the other Party when it
becomes aware of any unauthorized access to the other Party’s Systems. If at any time an employee
of a Party or a Subsidiary thereof or any other individual (i) has sought to circumvent or has
circumvented the security regulations or mechanisms of the other Party, (ii) has accessed or has
attempted to access the other Party’s Systems without authorization or (iii) has engaged in
activities that are reasonably likely to lead to the unauthorized access, destruction or alteration
of the Systems or loss of data or information thereon, the Party whose Systems have been so
circumvented, accessed, destroyed or altered may suspend or limit the access of any such employee
or individual to the Systems or Services as necessary to address such unauthorized circumvention,
access, destruction or alteration and shall promptly notify the other Party. Upon such suspension
or limitation, the Parties shall cooperate with each other and act reasonably to determine the
appropriate steps to take in response thereto, in order to minimize the effects of

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such unauthorized circumvention, access, destruction or alteration and to restore the
suspended or limited access as soon as practicable.

     Section 2.11 Cooperation to Effect Separation of Parties. Each Party will use its
commercially reasonable efforts to implement its own independent systems and services and to
completely separate from the other Party’s systems and services on or before the date on which this
Agreement terminates. The Parties shall cooperate with one another to maintain an orderly transfer
of Services provided hereunder and shall provide necessary assistance for an orderly transfer
thereof. Each receiving Party agrees to bear its own costs in connection with the implementation
of its own systems for the purpose of conducting its business after the termination or expiry of
the Services provided to it or any of its Subsidiaries by the other Party or any of its
Subsidiaries.

     SECTION 3. COOPERATION; LICENSES AND PERMITS.

     Section 3.1 Cooperation; Consents. The Parties will use good faith efforts to cooperate with
each other in matters relating to the provision and receipt of Services. Such cooperation shall
include exchanging information, providing electronic access to technology systems used in
connection with the Services and obtaining all third party consents, licenses, sublicenses or
approvals necessary to permit each Party to perform its obligations hereunder (including by way of
example, not by way of limitation, rights to use third party software needed for the performance of
Services), including those set forth in Schedule D. The costs of obtaining the third party
consents, licenses, sublicenses or approvals listed in Schedule D shall be borne by the
Party specified in the Schedule as responsible to pay such costs or proportion of such costs;
provided, however, where the necessary third party consent, license, sublicense or
approval is not listed in Schedule D, the costs of obtaining such consent, license or
approval shall be borne by the providing Party, unless the third party consent, license, sublicense
or approval is obtained for the primary purpose of providing the Services to the receiving Party,
in which case the receiving Party will pay such costs. In the event that a consent required to
perform a Service in accordance with this Agreement is not obtained, the Parties shall cooperate
with each other and act in good faith to ascertain and obtain reasonable alternative arrangements
to allow the Service(s) in question to be provided.

     Section 3.2 Licenses and Permits. Each Party warrants and covenants that all duties and
obligations (including with respect to Synovus, all Synovus Services and with respect to TSYS, all
TSYS Services) to be performed hereunder shall be performed in compliance in all material respects
with all applicable federal, state, provincial and local Laws, rules and regulations. Each Party
shall obtain and maintain all material permits, approvals and licenses necessary or appropriate to
perform its duties and obligations (including with respect to Synovus, the Synovus Services and
with respect to TSYS, the TSYS Services) hereunder and shall at all times comply in all material
respects with the terms and conditions of such permits, approvals and licenses.

     Section 3.3 Policies. To the extent that a Party is performing Services at the other Party’s
premises, it shall use its commercially reasonable efforts to, and shall use its commercially
reasonable efforts to cause its personnel to, comply with the other Party’s policies, guidelines
and regulations applicable to each work location that it has been informed of in

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writing (including but not limited to rules and policies relating to access, conduct, and
other rules and policies otherwise in effect at the receiving Party’s premises).

     SECTION 4. PAYMENT.

     Section 4.1 Service Fees. (a) In consideration for the provision of each of the Synovus
Services, TSYS shall pay to Synovus the fee set forth for such Synovus Service on Schedule
A.

          (b) In consideration for the provision of each of the TSYS Services, Synovus shall pay to TSYS
the fee set forth for such TSYS Service on Schedule B.

     Section 4.2 Costs and Expenses. (a) In addition to the fees payable in accordance with
Section 4.1(a), TSYS shall reimburse Synovus for any and all reasonable and necessary out-of-pocket
costs and expenses (including postage and other delivery costs, telephone, telecopy and similar
expenses) incurred by Synovus or its appropriate Subsidiaries with respect to third parties in
connection with the provision of Synovus Services to TSYS pursuant to the terms of this Agreement
or paid by Synovus or its appropriate Subsidiaries on behalf of TSYS, including any costs incurred
by Synovus related to the provision of such Synovus Services; provided, however,
any such out-of-pocket costs and expenses for any month exceeding, in aggregate, $10,000 shall
require advance written approval by the receiving Party.

          (b) In addition to the fees payable in accordance with Section 4.1(b), Synovus shall reimburse
TSYS for any and all reasonable and necessary out-of-pocket costs and expenses (including postage
and other delivery costs, telephone, telecopy and similar expenses) incurred by TSYS or its
appropriate Subsidiaries with respect to third parties in connection with the provision of TSYS
Services to Synovus pursuant to the terms of this Agreement or paid by TSYS or its appropriate
Subsidiaries on behalf of Synovus, including any costs incurred by TSYS related to the provision of
such TSYS Services; provided, however, any such out-of-pocket costs and expenses
for any month exceeding, in aggregate, $10,000 shall require advance written approval by the
receiving Party.

          (c) Without limiting the foregoing, each Party agrees to reimburse the other Party for any
costs or expenses incurred by the other Party in connection with the conversion of the reimbursing
Party to the reimbursing Party’s own systems.

     Section 4.3 Invoices; Payment. (a) Synovus will invoice TSYS in U.S. dollars: (i) as of the
last day of each calendar month for any fees payable by TSYS in accordance with Section 4.1(a) for
Synovus Services listed on Schedule A provided pursuant to the terms of this Agreement
during such month; (ii) as of the last day of each calendar month for any amounts payable by TSYS
in accordance with Section 4.2(a) for any out-of-pocket costs and expenses incurred during the
immediately preceding month to the extent Synovus has received an invoice from such third party;
and (iii) as of the last day of each calendar month for any taxes (excluding taxes determined, in
whole or in part, by net income, net receipts or net worth) payable with respect to the provision
of Synovus Services to TSYS during such month. Synovus shall deliver or cause to be delivered to
TSYS each such invoice within thirty (30) days following the last day of the calendar month to
which such invoice relates. TSYS shall pay each such invoice received

8

 

by electronic funds transfer within thirty (30) days of the date on which such invoice was
received.

          (b) TSYS will invoice Synovus in U.S. dollars: (i) as of the last day of each calendar month
for any fees payable by Synovus in accordance with Section 4.1(b) for TSYS Services listed on
Schedule B provided pursuant to the terms of this Agreement during such month; (ii) as of
the last day of each calendar month for any amounts payable by Synovus in accordance with Section
4.2(b) for any out-of-pocket costs and expenses incurred during the immediately preceding month to
the extent TSYS has received an invoice from such third party; and (iii) as of the last day of each
calendar month for any taxes (excluding taxes determined, in whole or in part, by net income, net
receipts or net worth) payable with respect to the provision of TSYS Services to Synovus during
such month. TSYS shall deliver or cause to be delivered to Synovus each such invoice within thirty
(30) days following the last day of the calendar month to which such invoice relates. Synovus
shall pay each such invoice received by electronic funds transfer within thirty (30) days of the
date on which such invoice was received.

          (c) Subject to the Distribution Agreement and each other Ancillary Agreement, each Party shall
provide to the other Party all information, data and exemption certificates as such other Party may
from time to time reasonably request and otherwise fully cooperate with such other Party in
connection with the reporting and payment of any taxes with respect to the Services. Each Party
shall cooperate with the other Party and take any action reasonably requested which does not cause
the Party to incur any cost or inconvenience in order to minimize any taxes payable with respect to
the Services.

          (d) A Party’s obligation to make any required payments under this Agreement shall not be
subject to any unilateral right of offset, set-off, deduction or counterclaim arising under the
Distribution Agreement or any other Ancillary Agreement.

     Section 4.4 Late Payment. (a) Any amount not paid when due shall be subject to a late
payment fee computed daily at a rate equal to the Applicable Rate. Notwithstanding the foregoing,
if a Party (the “Disputing Party”) disputes the accuracy of any invoice, that Party shall
timely pay the undisputed portion of such invoice as provided herein, and the Parties will promptly
meet and seek to resolve the disputed amount of the invoice. If, upon resolution of the dispute,
the Disputing Party is found to have underpaid the amount actually due, the Disputing Party shall,
within five (5) Business Days after the date on which the dispute is resolved, remit any amount due
plus interest at the Applicable Rate from the due date until paid. To avoid doubt, (i) a Party
shall be required to timely pay any undisputed amounts due, notwithstanding the fact that such
Party may be disputing other amounts due and (ii) failure to pay an amount the subject of a bona
fide dispute under this Section 4.4 does not constitute a breach of this Agreement by the
Disputing Party.

          (b) Each Party agrees to pay the other Party’s reasonable attorneys’ fees and other costs
incurred in collection of (i) any undisputed amounts owed to such other Party hereunder and not
paid when due, (ii) disputed amounts not paid in accordance with Section 4.4(a) upon
resolution of the dispute, and (iii) a disputed amount where a court or arbitrator determines that
the amount was not the subject of a bona fide dispute. Where a court or arbitrator determines that
the Party issuing the disputed invoice did not act in good faith by not

9

 

resolving the dispute, that Party must pay the Disputing Party’s reasonable attorneys’ fees
and other costs incurred in resolving the dispute.

     Section 4.5 Fees, Etc. Upon Termination of Services. In the event of a termination of
Services pursuant to Section 7.1, with respect to the calendar month in which such Services cease
to be provided, the recipient of such Services shall be obligated to pay a pro rata share of the
fee for such Service set forth on Schedule A or Schedule B, as applicable, equal to
the product of (x) the fee set forth on Schedule A or Schedule B, as applicable,
multiplied by (y) a fraction, the numerator of which is the number of days in the calendar month in
which such Services cease to be provided preceding and including the last date on which such
Services are provided, and the denominator of which is 30.

     SECTION 5. INDEMNIFICATION AND LIABILITY.

     Section 5.1 Indemnification by Principal. (a) TSYS agrees to indemnify, defend and hold
Synovus and its appropriate Subsidiaries harmless from and against any Loss to which Synovus or its
appropriate Subsidiaries may become subject arising out of, by reason of or otherwise in connection
with the provision hereunder by Synovus or its appropriate Subsidiaries of Synovus Services, other
than Losses resulting from Synovus’s or its appropriate Subsidiaries’ gross negligence, willful
misconduct or material breach of its obligations pursuant to this Agreement. Notwithstanding any
provision in this Agreement to the contrary, TSYS shall not be liable under this Section 5.1 for
any consequential, special or punitive damages (including lost profits).

          (b) Synovus agrees to indemnify, defend and hold TSYS and its appropriate Subsidiaries
harmless from and against any Loss to which TSYS or its appropriate Subsidiaries may become subject
arising out of, by reason of or otherwise in connection with the provision hereunder by TSYS or its
appropriate Subsidiaries of TSYS Services, other than Losses resulting from TSYS’s or its
appropriate Subsidiaries’ gross negligence, willful misconduct or material breach of its
obligations pursuant to this Agreement. Notwithstanding any provision in this Agreement to the
contrary, Synovus shall not be liable under this Section 5.1 for any consequential, special or
punitive damages (including lost profits).

     Section 5.2 Indemnification by Provider. (a) Synovus agrees to indemnify, defend and hold
TSYS and its appropriate Subsidiaries harmless from and against any Loss to which TSYS or its
appropriate Subsidiaries may become subject arising out of, by reason of or otherwise in connection
with the provision hereunder by Synovus or its appropriate Subsidiaries of Synovus Services to TSYS
or its appropriate Subsidiaries where such Losses resulted from Synovus’s or its appropriate
Subsidiaries’ gross negligence, willful misconduct or material breach of its obligations pursuant
to this Agreement.

          (b) TSYS agrees to indemnify, defend and hold Synovus and its appropriate Subsidiaries
harmless from and against any Loss to which Synovus or its appropriate Subsidiaries may become
subject arising out of, by reason of or otherwise in connection with the provision hereunder by
TSYS or its appropriate Subsidiaries of TSYS Services to Synovus or its appropriate Subsidiaries
where such Losses resulted from TSYS’s or its appropriate Subsidiaries’

10

 

gross negligence, willful misconduct or material breach of its obligations pursuant to this
Agreement.

     Section 5.3 Control of Indemnification Claims. Indemnification claims hereunder shall be
subject to the procedure set forth in the Indemnification and Insurance Matters Agreement of even
date between the Parties.

     Section 5.4 DISCLAIMER OF LIABILITY. NOTWITHSTANDING ANY PROVISION IN THIS AGREEMENT TO THE
CONTRARY, NO PARTY SHALL BE LIABLE HEREUNDER FOR ANY CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES
(INCLUDING LOST PROFITS), EXCEPT TO THE EXTENT THAT SUCH CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES
RELATE TO A LOSS RESULTING FROM A CLAIM AGAINST THE INDEMNIFIED PARTY BY AN UNAFFILIATED THIRD
PARTY.

     SECTION 6. CONFIDENTIALITY.

     Each Party shall keep, and shall cause its appropriate Subsidiaries to keep, confidential the
Schedules to this Agreement and all information received from the other Party regarding the
Services, including any information received with respect to Synovus and its Subsidiaries or TSYS
and its Subsidiaries, in accordance with the Confidential Disclosure Agreement, and shall use such
information only for the purpose set forth in this Agreement unless otherwise agreed to in writing
by the Party from which such information was received.

     SECTION 7. TERM.

     Section 7.1 Duration. (a) Subject to Sections 7.1(a), 7.2,
7.3, 7.4, 7.6 and 7.9, this Agreement will continue in full force
and effect with respect to each Service until the earlier of (i) the last expiration date with
respect to such Service set forth on Schedule A or Schedule B, as applicable and
(ii) the termination of such Service in accordance with Section 7.1(b) or 7.4.

          (b) Each Party acknowledges that the purpose of this Agreement is for Synovus to provide the
Synovus Services to TSYS on an interim basis until TSYS can perform the Synovus Services for
itself, and for TSYS to provide the TSYS Services to Synovus on an interim basis until Synovus can
perform the TSYS Services for itself. Accordingly, each of Synovus and TSYS shall use its
commercially reasonable efforts to make or obtain such approvals, permits and licenses and
implement such systems, as shall be necessary for it to provide the appropriate Services for itself
as promptly as practicable. As TSYS becomes self-sufficient with respect to, or engages other
sources to provide, any Synovus Service, TSYS shall be entitled to release Synovus from providing
any or all of the Synovus Services hereunder by delivering a written notice thereof to Synovus at
least thirty (30) days prior to the effective date of release (such notice to expire on the last
day of a calendar month) of such Synovus Service(s). At the end of such thirty (30) day period (or
such shorter period as may be agreed by the Parties), Synovus shall discontinue the provision of
the Synovus Services specified in such notice and any such Synovus Services shall be excluded from
this Agreement, and Schedule A shall be deemed to be amended accordingly. As Synovus
becomes self-sufficient with respect to, or engages other sources to provide, any TSYS Service,
Synovus shall be entitled to release TSYS from

11

 

providing any or all of the TSYS Services hereunder by delivering a written notice thereof to
TSYS at least thirty (30) days prior to the effective date of release (such notice to expire on the
last day of a calendar month) of such TSYS Service(s). At the end of such thirty (30) day period
(or such shorter period as may be agreed by the Parties), TSYS shall discontinue the provision of
the TSYS Services specified in such notice and any such TSYS Services shall be excluded from this
Agreement, and Schedule B shall be deemed to be amended accordingly.

          (c) Provided that the receiving Party has used commercially reasonable efforts to transition
off the Services by the applicable Termination Date, if it has nevertheless not been possible for
the receiving Party to transition off a particular Service prior to its applicable Termination Date
(other than as a result of the receiving Party (i) requesting a modification of the form, scope or
nature of the particular Service or (ii) electing any conversion of its systems or plans to systems
or plans that materially differ from the systems and plans in effect on the date hereof, provided
that the limitations in clauses (i) and (ii) shall not apply to any of the Services set forth in
Section 01 of Schedule A (Human Resources (HR), Compensation, Recruiting and Compliance)), then
upon the receiving Party’s request the Parties shall negotiate in good faith commercially
reasonable terms for an extension (in any event not to exceed three months from the initial
Termination Date for such Service) of the Termination Date for such existing Service to be provided
in the same form, scope and nature that such Service is being provided as of the Termination Date.

     Section 7.2 Early Termination by Synovus. Synovus may terminate this Agreement by giving
written notice to TSYS under the following circumstances:

          (a) if TSYS shall default in the performance of any of its material obligations under, or
breach any of its covenants set forth in, this Agreement, and such default or breach shall continue
and not be remedied for a period of thirty (30) days after Synovus has given written notice to TSYS
specifying such default or breach and requiring it to be remedied; or

          (b) if a Bankruptcy Event has occurred with respect to TSYS and TSYS has ceased to make
payments due under this Agreement in accordance with its terms.

     Section 7.3 Early Termination by TSYS. TSYS may terminate this Agreement by giving written
notice to Synovus under the following circumstances:

          (a) if Synovus shall default in the performance of any of its material obligations under, or
breach any of its warranties set forth in, this Agreement and such default or breach shall continue
and not be remedied for a period of thirty (30) days after TSYS has given written notice to Synovus
specifying such default or breach and requiring it to be remedied; or

          (b) if a Bankruptcy Event has occurred with respect to Synovus and Synovus has ceased to make
payments due under this Agreement in accordance with its terms.

     Section 7.4 Force Majeure. If the performance by TSYS or Synovus of their respective duties
or obligations hereunder (other than payment obligations under Section 4 hereof) is interrupted or
interfered with by an event beyond the reasonable control of the performing Party which by its
nature could not have been foreseen by that Party, or if it could have been foreseen, was
unavoidable, and includes fire, storm, flood, earthquake or other natural

12

 

disaster, explosion, war or terrorism, strike or labor disruption, rebellion, insurrection,
quarantine, act of God, boycott, embargo, unavailability of raw materials, riot or any governmental
Law, regulation or edict (collectively, the “Force Majeure Events”), the Party affected by
such Force Majeure Event shall not be deemed to be in default of this Agreement by reason of its
nonperformance due to such Force Majeure Event, but shall give prompt written notice to the other
Party of the Force Majeure Event and the extent and anticipated duration of its inability to
perform its obligations. The Party affected by the Force Majeure Event shall use its commercially
reasonable efforts to mitigate the effect of the Force Majeure Event, and shall cooperate with the
other Party in obtaining, at the other Party’s sole expense, an alternative source for the affected
Services, and the other Party shall be released from any payment obligation to the Party affected
by the Force Majeure Event with respect to such Services during the period of such Force Majeure
Event. Additionally, upon and during the occurrence of a Force Majeure Event, at the sole option
of the Party receiving the Services affected by the Force Majeure Event, the term of this Agreement
shall be tolled with respect to such Services. If the Force Majeure Event still persists following
thirty (30) consecutive days, the unaffected Party may terminate this Agreement with respect to the
affected Services and any Services associated therewith by service of written notice in writing to
the Party unable to perform due to the Force Majeure Event. Upon the cessation of the event of
Force Majeure, the affected Party shall promptly notify the other Party in writing of such
cessation.

     Section 7.5 Consequences on Termination. If this Agreement expires or is terminated in
accordance with this Section 7, then (a) all Services to be provided will promptly cease, (b) each
of Synovus and TSYS shall promptly return all Confidential Information received from the other
Party in connection with this Agreement (including the return of all information received with
respect to the Services of Synovus or TSYS, as the case may be), without retaining a copy thereof,
and (c) each of Synovus and TSYS shall honor all credits and make any accrued and unpaid payment to
the other Party as required pursuant to the terms of this Agreement, and no rights already accrued
hereunder shall be affected.

     Section 7.6 Survival. Notwithstanding anything to the contrary in this Section 7,
Sections 5, 6, 7, 8, 9, 10, 11 and
12 of this Agreement shall survive the termination hereof in accordance with their
respective terms.

     Section 7.7 Accrued Rights. Any termination or expiration of this Agreement (howsoever
caused) shall not affect any accrued rights or liabilities of either Party nor shall it affect the
coming into force or the continuance in force of any provision hereof which is expressly or by
implication intended to come into or continue in force on or after such termination or expiration.

     Section 7.8 Termination Assistance. On the expiration or termination of a Service the Parties
shall act reasonably and cooperate with each other to (if requested by the Party receiving the
Service), at the sole cost and expense of the receiving Party, migrate such Service to the
replacement service provider, as designated by the receiving Party. Each Party shall in such
co-operation take into account the need to minimize both the cost of such migration and the
disruption to the ongoing business activities of the Parties, and shall provide reasonable access
to information and data regarding the relevant Service(s) to enable an orderly assumption of the
Service(s) by the receiving Party’s replacement service provider.

13

 

     Section 7.9 Effectiveness. This Agreement shall become effective upon the Effective Time and
prior thereto shall be of no force or effect. If the Distribution Agreement shall be terminated in
accordance with its terms prior to the occurrence of the Effective Time, this Agreement and any
actions or agreements contemplated hereby shall automatically be terminated and of no force or
effect.

     SECTION 8. RECORDS.

     Each of the Parties shall create and, for a period of six (6) years after the termination or
expiration of this Agreement, maintain full and accurate books in connection with the provision of
the Services, and all other records relevant to this Agreement, and upon reasonable notice from the
other Party shall make available for inspection and copy by such other Party’s agents such records
during reasonable business hours.

     SECTION 9. INTELLECTUAL PROPERTY, DATA.

     Section 9.1 Ownership. This Agreement and the performance of this Agreement will not affect
the ownership of any copyrights or other intellectual property rights allocated in the Distribution
Agreement or the other Ancillary Agreements. Neither Party will gain, by virtue of this Agreement,
any rights of ownership of copyrights, patents, trade secrets, trademarks or any other intellectual
property rights owned by the other Party. Except as otherwise set forth in any of the Ancillary
Agreements, the Party providing the applicable Service will own all copyrights, patents, trade
secrets or other intellectual property rights subsisting in any deliverable that subsists in whole
or in part of software, firmware or other computer code and any other works developed by such Party
for purposes of this Agreement. Each Party acknowledges and agrees that each shall retain
exclusive ownership of its own respective data and other intellectual property provided to the
other pursuant to this Agreement. Neither Party shall use the other Party’s data for any purpose
other than the performance of this Agreement in accordance with its provisions. The receiving
Party will own all data generated by or for it in the course of performing the applicable Services,
and shall at all times have a right to access and be provided with copies of that data.

     SECTION 10. DISPUTE RESOLUTION.

     Section 10.1 Dispute Resolution under Distribution Agreement. Any dispute arising out of or
relating to the performance, breach or interpretation of this Agreement shall be handled in
accordance with Section 5.5 of the Distribution Agreement.

     Section 10.2 Continuity of Service and Performance. Unless otherwise agreed herein or in
writing, the Parties will continue to provide Services and honor all other commitments under this
Agreement and each Ancillary Agreement during the course of dispute resolution pursuant to the
provisions of this Section 10 with respect to all matters not subject to such dispute, controversy
or claim.

     SECTION 11. NOTICES.

     All notices and other communications hereunder shall be in writing and shall be deemed
effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one (1)

14

 

Business Day after being delivered by facsimile (with receipt of appropriate confirmation), or
(iv) one (1) Business Day after being deposited with an overnight courier service and addressed to
the respective parties as follows:

To Synovus:

Synovus Financial Corp.

1111 Bay Avenue

Suite 500

Columbus, GA 31901

Attention: Thomas J. Prescott

                    Chief Financial Officer

Telephone: 706-649-2401

Facsimile: 706-649-4819

With a copy to:

Synovus Financial Corp.

1111 Bay Avenue

Suite 500

Columbus, GA 31901

Attention: B. Scott McGlaun

                    Chief Information Officer

Telephone: 706-649-4916

Facsimile: 706-464-4730

To TSYS:

Total System Services, Inc.

1600 First Avenue

Columbus, GA 31901

Attention: James B. Lipham

                    Chief Financial Officer

Telephone: 706-649-2262

Facsimile: 706-644-1725

With a copy to:

Total System Services, Inc.

1600 First Avenue

Columbus, GA 31901

Attention: Ryland L. Harrelson

                    Executive Vice President of Administrative Services

Telephone: 706-649-4840

Facsimile: 706-615-2716;

15

 

or to such other address as the Party to whom notice is given may request by notifying the other
in writing in the manner set forth above. As used in this Section 11, “Business
Day” means any day other than a Saturday, a Sunday or a day on which banking institutions
located in the city of Columbus, Georgia are authorized or obligated by law or executive order to
close.

     SECTION 12. MISCELLANEOUS.

     Section 12.1 Termination of Management Agreements. On and from the Effective Time, the
Parties agree that each of the agreements set forth on Schedule E shall be terminated with
immediate effect and without the need for any Party to take any further action.

     Section 12.2 Waivers, Modifications, Amendments. Any provision of this Agreement may be
amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case
of an amendment, by TSYS, on the one hand, and Synovus, on the other hand, or in the case of a
waiver, by the Party against whom the waiver is to be effective. No failure or delay by any Party
in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies herein provided shall be
cumulative and in addition to other or further remedies provided by law or equity.

     Section 12.3 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF GEORGIA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE
OF GEORGIA.

     Section 12.4 Severability. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or enforceability of
the other provisions hereof. If any provision of this Agreement, or the application thereof to any
person, corporation, partnership or other entity or any circumstance, is invalid and unenforceable,
(a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far
as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision
and (b) the remainder of this Agreement and the application of such provision to other persons,
corporations, partnerships or other entities or circumstances shall not be affected by such
invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity
or enforceability of such provision, or the application thereof, in any jurisdiction.

     Section 12.5 Reference; Interpretation. References in this Agreement to any gender include
references to all genders, and references to the singular include references to the plural and vice
versa. The words “include”, “includes” and “including” when used in this Agreement shall be deemed
to be followed by the phrase “without limitation.” Unless the context otherwise requires,
references in this Agreement to Sections and Schedules shall be deemed references to Sections of,
and Schedules to, this Agreement. Unless the context otherwise requires, the words “hereof”,
“hereby” and “herein” and words of similar meaning when used in this Agreement refer to this
Agreement in its entirety and not to any particular Section or provision of this Agreement. This
Agreement shall not be construed against either Party as the principal drafter hereof.

16

 

     Section 12.6 Entire Agreement. This Agreement, the Distribution Agreement and the
Confidential Disclosure Agreement (including all Schedules to such agreements) contains the entire
agreement between the Parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral or written, with respect to such matters.

     Section 12.7 Assignment. (a) This Agreement shall inure to the benefit of and be binding
upon the Parties and their respective legal representatives and successors, and nothing in this
Agreement, express or implied, is intended to confer upon any other Person any rights or remedies
of any nature whatsoever under or by reason of this Agreement; provided, however,
except as otherwise expressly provided for in this Agreement, this Agreement shall not be
assignable, in whole or in part, by any Party without the prior written consent of the other Party,
and any attempt to assign any rights or obligations arising under this Agreement without such
consent shall be null and void; and provided further, that a Party may assign this
Agreement without such prior written consent in connection with: (i) a merger transaction in which
such Party is not the surviving entity or (ii) the sale, transfer, exchange or other disposition by
such Party of all or substantially all of its assets, so long as, in either case, if such merger or
asset sale transaction occurs during the Restricted Assignment Period, the rating of the assignee,
following the consummation of such merger or asset sale transaction, shall be BBB- or better from
Standard & Poor’s and Baa3 or better from Moody’s Investor Services, Inc. (or if Standard & Poor’s
or Moody’s Investor Services, Inc. shall change their rating designations after the date of this
Agreement, a comparable rating or better under such new designations), and upon the effectiveness
of any such valid assignment the assigning Party shall be released from all of its obligations
under this Agreement if the surviving entity of such merger or the transferee of such assets shall
agree in writing, in form and substance reasonably satisfactory to the other Party, to be bound by
the terms of this Agreement as if named as a “Party” hereto.

          (b) Nothing contained herein shall prevent a Party from providing Services through or with the
assistance of third parties or subcontractors whom such Party regularly used to provide such
Services prior to the date hereof or will regularly use to provide similar services to its own
organization thereafter; provided, however, a providing Party will at all times
remain responsible for the fulfillment of its obligations under this Agreement, notwithstanding the
performance of the obligations by another person.

          (c) For the avoidance of doubt, the providing Party shall not be relieved of its obligation to
provide Services by reason of (i) any event referred to in this Section 12.7, or (ii) a
Change of Control of the receiving Party, provided in either case that such event or Change of
Control does not materially alter the scope or volume of Services being provided to the receiving
Party by the providing Party.

     Section 12.8 Binding Effect. This Agreement shall be binding upon each Party and its
Subsidiaries who receive or provide Services under this Agreement, and their respective successors
and permitted assigns, if any, and except as provided herein, shall inure to the benefit of the
Parties and their respective successors and permitted assigns, if any. Nothing in this Agreement,
express or implied, is intended to confer upon any other Person any rights or remedies of any
nature whatsoever under or by reason of this Agreement.

17

 

     Section 12.9 Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, and all of which shall constitute one and the same Agreement.

     Section 12.10 No Agency or Partnership. Nothing in this Agreement will create, or will be
deemed to create, a partnership or the relationship of principal and agent or of employer and
employee between the Parties.

     Section 12.11 Provisions Unaffected. Nothing contained in this Agreement shall affect the
rights and obligations of Synovus and TSYS pursuant to the Distribution Agreement.

     Section 12.12 Conflict. Notwithstanding any other provision in this Agreement to the
contrary, in the event and to the extent of conflict between this Agreement and any Schedule, the
Schedule shall prevail.

[Signature page follows]

18

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered on behalf of the
Parties as of the date first herein above written.

	 	 	 	 	 
	 	SYNOVUS FINANCIAL CORP.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 
	 	TOTAL SYSTEM SERVICES, INC.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

[Signature page to Transition Services Agreement]

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