Document:

Unassociated Document

    
      RURBANC
        DATA SERVICES, INC.

      

      DATA
        PROCESSING SERVICES AGREEMENT

    

     

    
      This
        agreement is entered into effective as of February
        16, 2005, by and between Rurbanc Data Services, Inc., a wholly
        owned, subsidiary of Rurban Financial Corporation, an Ohio Corporation located
        at 401 Clinton Street, Defiance, Ohio 43512 (there after referred to as “RDSI”),
        and

      

      Bank
        of Birmingham

      33583
        Woodward Ave.

      PO
        Box 2540

      Birmingham,
        MI 48012-2540

      

      (hereinafter
        referred to as “Bank”).

      

      
        	I.     
                	
                GENERAL
                  STATEMENT CONCERNING
                  SERVICES

              

      

      

      The
        Bank
        agrees that RDSI may perform for the Bank certain services as described in
        the
        schedule(s) attached hereto (the “Services”), and RDSI agrees to perform such
        Services pursuant to the terms and conditions of this Agreement. The Bank
        agrees
        to compensate RDSI for the Services in accordance with the term of the
        Agreement.

      

      The
        Bank
        and RDSI agree that, during the term of this Agreement, RDSI shall be the
        exclusive provider of all of the Services that are provided
        hereunder.

       

      
        	II.    
                	
                TERM
                  OF THE AGREEMENT

              

      

       

      The
        initial term of the Agreement (the “Initial Term”) shall commence on the first
        date on which Services are provided to the Bank hereunder (the “Commencement
        Date”) and shall continue for a period of FIVE (5) years. Thereafter, the term
        of the Agreement shall automatically continue until it is terminated by the
        Bank
        or RDSI in accordance with the terms hereof.

      

      In
        addition to any other termination rights that exist under other Sections
        of this
        Agreement, either the Bank or RDSI may terminate the Agreement as of the
        end of
        Initial Term or at any time thereafter by providing one hundred and eighty
        (180)
        days prior written notice to the other party.

      

      
        	III.     
                	
                FEES
                  FOR SERVICES

              

      

       

      
        	A.  	
                For
                  the Services provided hereunder, the Bank shall initially pay to
                  RDSI the
                  fees specified in the Fee Schedule attached hereto as Addendum
                  A (the “Fee
                  Schedule”). The bank acknowledges that RDSI may (i) decrease such fees at
                  anytime, and (ii) by providing thirty (30) days prior written notice
                  to
                  the Bank, increase any such fees at any time after the second anniversary
                  of the Commencement Date and the Bank agrees to pay such increased
                  or
                  decreased fees. RDSI and the Bank have agreed that during the first
                  two
                  years of the Agreement, rates shall be fixed at such rates as described
                  in
                  the attached Addendum A-Fee Schedule. Notwithstanding the foregoing,
                  RDSI
                  agrees that it will not increase its fees, in the aggregate, by
                  more than
                  five percent (5%) in either the third, fourth and fifth years of
                  the
                  Initial Term.

              

      

       

      
        	B.  	
                The
                  only exceptions to this Pricing Agreement will be those related
                  to
                  increased account and transaction volumes of the Bank; new applications
                  and services not presently utilized by the Bank; increased number
                  of
                  terminals or workstations supported; Saturday processing; services
                  not
                  presently covered by this Agreement; and tariff revisions for data
                  communication line service which result in additional expenses
                  to RDSI
                  with respect to those data communication lines obtained to provide
                  data
                  processing service under this Agreement. Bank agrees to purchase
                  its own
                  paper supplies, statements, checks,
                  etc.

              

      

       

      
         

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        
          	C.  	
                  Bank
                    acknowledges that the Fee Schedule does not include charges for
                    ground
                    transportation/courier services. To the extent utilized by the
                    Bank, such
                    transportation charges in addition to those specified in Section
                    III.A.
                    above, will be calculated and invoiced by RDSI to Bank based
                    on allowable
                    Internal Revenue Service mileage and maintenance guidelines,
                    plus salary
                    considerations, and will be subject to change by RDSI. RDSI agrees
                    to
                    obtain Bank approval prior to utilizing any ground transportation/courier
                    services.

                

        

         

      

      
        	D.  	
                Bank
                  further acknowledges that the Services provided do not include
                  Saturday
                  processing; and that if, in the future, RDSI provides Saturday
                  processing
                  to the Bank as part of the Services, RDSI charges for such additional
                  Services will be in addition to those called for in Section III.A.
                  above.

              

      

      

      
        	IV.     
                	
                CONVERSION

              

      

       

      All
        expenses of conversion will be paid by the Bank, and will include conversion
        and
        training fees, equipment purchases and modifications, communication equipment
        and lines, ITI formal training classes, new forms and supplies and other
        conversion cost items. The conversion expenses will also include a conversion
        fee to RDSI in the amount of
        $10,000.00, plus
        any out
        of pocket expenses incurred by RDSI in direct relation to the conversion
        (i.e.,
        lodging, meals, mileage, etc.), plus
        any
        other out of pocket expenses incurred by RDSI in direct relation to the
        deconversion of the Bank's existing processing system. The RDSI conversion
        fee
        will be due upon invoicing. RDSI will provide the Bank with the results of
        any
        conversion tests that are performed by RDSI. The Bank agrees to notify RDSI
        of
        any potential problems which it recognizes as a result of its review of such
        test results.

      

      
        	V.     
                	
                AUDIT

              

      

      

      RDSI
        employs an internal auditor responsible for ensuring the integrity of its
        processing environments and internal controls. In addition, RDSI provides
        for
        periodic independent audits of its operations. In each instance, RDSI will
        provide the Bank with a copy of the independent audit within a reasonable
        time
        after its completion, and will charge the Bank and each of its other clients
        a
        fee based on the pro rata cost of the independent audit. RDSI will also provide
        a copy of the independent audit to the appropriate regulatory agency having
        jurisdiction over RDSI's provision of Services hereunder.

      

      
        	VI.     
                	
                CORRECTION
                  OF ERRORS

              

      

      

      All
        Services provided by RDSI hereunder shall be deemed acceptable to the Bank
        unless the Bank, within 30 days
        following
        its receipt of the Services, has provided to RDSI a written notice which
        reasonably identifies the claimed error together with supporting documentation
        which reasonably supports the claim. In each such instance, RDSI promptly
        and in
        good faith (i) will review such claim and where the claim is meritorious
        (ii)
        will attempt to reprocess or otherwise remedy the problem at its own cost
        and
        expense, subject to the limitations set forth in Section VIII below. Work
        reprocessed due to error in data supplied by Bank, on Bank's behalf by a
        third
        party, or by Bank's failure to follow procedures set forth by RDSI will be
        billed to the Bank at RDSI's then current rates as additional services
        hereunder.

      

      
        	VII.     
                	
                WARRANTIES

              

      

       

      
        
          	A.  	
                  
                    RDSI
                      represents and warrants that: (i) the Services will conform
                      to the
                      specifications, if any, set forth in the schedules attached
                      to this
                      Agreement, (ii) RDSI will perform the Bank's work accurately
                      and in
                      accordance with the provisions of the Agreement, including
                      Section XIV
                      hereof, provided that the Bank supplies accurate data and information
                      and
                      follows the procedures described in all of RDSI's documentation,
                      notices
                      and advice's; (iii) RDSI personnel will exercise due care in
                      providing the
                      Services; (iv) RDSI's performance hereunder will comply in
                      all material
                      respects with all Federal and State laws that are in existence
                      as of the
                      effective date of this Agreement; (v) RDSI has implemented
                      appropriate
                      measures which are designed to meet the objectives of the “Guidelines”
                      that, as of the effective date of this Agreement, have been
                      established by
                      the Bank’s regulators with respect to Section 5.01(b) of the
                      Gramm-Leach-Bliley Act [15 U.S.C. 6801(b);and (vi) the Services
                      will be
                      capable of supporting Year 2000 functionality and will function
                      in
                      accordance with the specifications of a multi-century, multi-millennium
                      environment. As used in the Section VII.A., "supporting Year
                      2000
                      functionality" shall mean that the Services provided hereunder
                      will
                      provide fault-free performance in the processing of dates and
                      date-related
                      data, including but not limited to calculating, comparing and
                      sorting
                      individually and in combination with other RDSI products and
                      services. As
                      used in this Section, "fault-free performance" shall mean the
                      correct
                      manipulation of data containing dates prior to, through and
                      beyond January
                      1, 2000 (including leap year computations), without human intervention.
                      Any modifications required to conform the Services provided
                      by RDSI
                      hereunder to Year 2000 functionality will be made by RDSI at
                      its own
                      expense. However, associated costs for assistance and testing
                      of the data
                      of Bank, files and equipment that may be required by various
                      regulatory
                      authorities will be the responsibility of the
                      Bank.

                  

                

        

         

        
          
            RURBANC
              DATA SERVICES, INC.

          

          
            PAGE
              2

            
              

            

          

          
            
            

          

        

         

      

      
        	B.  	
                THE
                  WARRANTIES STATED IN SECTION VII.A. ABOVE ARE LIMITED WARRANTIES
                  AND ARE
                  THE ONLY WARRANTIES MADE BY RDSI. RDSI DOES NOT MAKE, AND THE BANK
                  HEREBY
                  EXPRESSLY WAIVES, ALL OTHER WARRANTIES, INCLUDING WARRANTIES OF
                  MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE STATED
                  EXPRESS
                  WARRANTIES ARE IN LIEU OF ALL LIABILITIES OR OBLIGATIONS OF RDSI
                  FOR
                  DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE DELIVERY, USE
                  OR
                  PERFORMANCE OF THE SERVICES.

              

      

      

      
        	C.  	
                The
                  Bank represents and warrants that: (i) no contractual obligations
                  exist
                  that would prevent the Bank from entering into the Agreement; (ii)
                  that
                  throughout the term of this Agreement, it will comply with all
                  applicable
                  regulatory requirements, including without limitation, all applicable
                  requirements to issue privacy notices to individual consumers and
                  customers; and (iii) it has requisite authority to execute, deliver
                  and
                  perform this Agreement. The Bank shall indemnify and hold harmless
                  RDSI,
                  its officers, directors, employees and affiliates against any and
                  all
                  claims by third parties arising out of the performance and nonperformance
                  of the Service by RDSI hereunder; provided, that such indemnity
                  on the
                  part of the Bank shall not preclude the Bank from recovering direct
                  damages from RDSI pursuant to the terms and subject to the limitations
                  of
                  the Agreement.

              

      

      

      
        	VIII.    
                	
                LIMITATION
                  OF LIABLITY

              

      

      

      
        	A.  	
                Except
                  as otherwise provided in the penultimate sentence of Section VII.A.
                  above,
                  IN NO EVENT SHALL RDSI BE LIABLE FOR LOSS OF GOOD WILL, OR FOR
                  SPECIAL,
                  INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING
                  FROM THE
                  BANK'S USE OF THE SERVICES OR RDSI'S SUPPLY OF EQUIPMENT OR SOFTWARE,
                  REGARDLESS OF WHETHER SUCH CLAIM ARISES IN TORT OR IN CONTRACT.
                  RDSI'S
                  AGGREGATE LIABILITY FOR ANY AND ALL CAUSES OF ACTION RELATING TO
                  THE
                  SERVICES SHALL BE LIMITED TO THE TOTAL FEES PAID BY THE BANK TO
                  RDSI
                  HEREUNDER FOR THE SERVICES RESULTING IN SUCH LIABILITY IN THE TWO-MONTH
                  PERIOD PRECEEDING THE DATE THE CLAIM ACCRUED; AND RDSI'S AGGREGATE
                  LIABILITY FOR A DEFAULT RELATING TO EQUIPMENT OR SOFTWARE SHALL
                  BE LIMITED
                  TO THE AMOUNT PAID BY THE BANK FOR THE EQUIPMENT OR
                  SOFTWARE.

              

      

      

      
        	B.  	
                If
                  the Bank's records or other data submitted for processing are lost
                  or
                  damaged as a result of any failure by RDSI, its employees or agents
                  to
                  exercise reasonable care to prevent such loss or damages, RDSI's
                  liability
                  on account of such loss or damages shall not exceed the reasonable
                  cost of
                  reproducing such records or data from exact duplicates thereof
                  in the
                  Bank's possession.

              

      

      

      
        	IX.     
                	
                DISASTER
                  RECOVERY

              

      

      

      
        	A.  	
                RDSI
                  maintains a disaster recovery plan (the "Disaster Recovery Plan")
                  with
                  respect to each of the Services. For purposes of the Agreement,
                  a
                  "Disaster" shall mean any unplanned interruption of the operations
                  of or
                  inaccessibility to RDSI's service center in which RDSI, using reasonable
                  judgement, requires relocation of processing to a recovery location.
                  RDSI
                  shall notify the Bank as soon as possible after RDSI deems a service
                  outage to be a Disaster. RDSI shall move the processing of the
                  Bank's
                  standard services to a recovery location as expeditiously as possible
                  and
                  shall coordinate the cut-over to back-up telecommunication facilities
                  with
                  the appropriate couriers. The Bank shall maintain adequate records
                  of all
                  transactions during the period of service interruption and shall
                  have
                  personnel available to assist RDSI in implementing the switchover
                  to the
                  recovery location. During a Disaster, optional or on-request services
                  shall be provided by RDSI only to the extent adequate capacity
                  exists at
                  the recovery location and only after stabilizing the provision
                  of base
                  services.

              

      

       

      
        
          
            RURBANC
              DATA SERVICES, INC.

          

          
            PAGE
              3

            
              

            

          

          
            
            

          

        

         

      

      
        	B.  	
                RDSI
                  will work with the Bank to establish a plan for alternative communications
                  in the event of a Disaster.

              

      

      

      
        	C.  	
                RDSI
                  will test the Disaster Recovery Plan periodically. The Bank agrees
                  to
                  participate in and assist RDSI with such test, if requested by
                  RDSI. Upon
                  the Bank's request, test results will be made available to the
                  Bank's
                  management, regulators, auditors and insurance underwriters. RDSI
                  will
                  charge the Bank and each of its clients a fee based on the pro
                  rata cost
                  of the Disaster Recovery Plan.

              

      

      

      
        	D.  	
                RDSI
                  will release to the Bank information necessary to allow the Bank
                  to
                  develop, and the Bank agrees to develop with respect to its own
                  internal
                  operations and equipment, a disaster recovery plan that operates
                  in
                  concert with the Disaster Recovery
                  Plan.

              

      

      

      
        	E.  	
                The
                  Bank understands and agrees that the Disaster Recovery Plan is
                  designed to
                  minimize, but not eliminate, risks associated with a disaster affecting
                  RDSI's service center. RDSI does not warrant that the Services
                  will be
                  uninterrupted or error free in the event of a Disaster, and no
                  performance
                  standards shall be applicable during the pendency of any Disaster.
                  The
                  Bank shall be responsible for adopting a disaster recovery plan
                  relating
                  to disasters affecting the Bank's facilities and for securing business
                  interruption insurance or other insurance necessary for the Bank's
                  protection.

              

      

      

      
        	X.     
                	
                OWNERSHIP
                  AND CONFIDENTIALITY

              

      

      

      
        	A.  	
                It
                  is understood that the Bank is the legal owner of all data and
                  records
                  relative to itself which may be in the possession of RDSI and that
                  such
                  data and records may be obtained by the Bank via machine readable
                  form at
                  a reasonable charge determined by RDSI, as stated in Section XVIII
                  (Deconversion Considerations) of the Agreement. RDSI is the owner
                  of all
                  programs and documentation.

              

      

      

      
        	B.  	
                RDSI
                  and the Bank each agree that all information including, but not
                  limited to
                  business methods, internal operations data and customer records,
                  communicated to it by the other either before or after the effective
                  date
                  of this Agreement, was and shall be received in strict confidence,
                  shall
                  be used only for the purposes of this Agreement, and that no such
                  information shall be disclosed by the recipient party without the
                  prior
                  written consent of the other party, and each agrees that each party
                  will
                  prevent the disclosure to outside parties of the terms and provisions
                  hereof, except as may be necessary by reasons of legal, accounting,
                  or
                  regulatory requirements beyond the reasonable control of RDSI or
                  the Bank,
                  as the case may be.

              

      

      

      
        	C.  	
                This
                  Agreement absolutely prohibits either party from disclosing confidential
                  information of the other, except as required by law or court order
                  or
                  disclosure of information already in the public domain through
                  no fault of
                  either party to the Agreement. Both parties agree to notify the
                  other of
                  any breach of confidentiality.

              

      

      

      
        	D.  	
                RDSI
                  and the Bank agree to indemnify and hold harmless the other from
                  any
                  direct loss, damage cost or expense which the other may sustain
                  or incur
                  by reason of any wrongful use by RDSI or the Bank, as the case
                  may be, of
                  confidential information of the other obtained in the course of
                  the
                  performance of this Agreement. In no event, shall such indemnification
                  extend to claims by or information communicated by third parties
                  not
                  subject to the Agreement.

              

      

      

      
        	E.  	
                RDSI
                  agrees that it will comply with all applicable Federal and State
                  Banking
                  regulations governing the use of disclosure of information provided
                  by the
                  Bank.

              

      

       

      
        
          
            RURBANC
              DATA SERVICES, INC.

          

          
            PAGE
              4

            
              

            

          

          
            
            

          

        

         

      

      
        	F.  	
                RDSI
                  shall establish and maintain reasonable safeguards against the
                  destruction
                  or loss of the Bank's data in the possession of
                  RDSI.

              

      

      

      
        	G.  	
                RDSI
                  will notify the Bank of any system changes that will effect the
                  Bank's
                  procedures, reports, etc.

              

      

      

      
        	H.  	
                RDSI
                  and the Bank each agree that all Bank information, including hard
                  copy
                  report media as well as on-line data, and all Bank customer data,
                  shall be
                  held in strict confidence, and shall be used only for purposes
                  of the
                  Agreement, and that no such information shall be disclosed without
                  the
                  prior written consent of the Bank. RDSI and Bank each agrees to
                  take all
                  reasonable precautions to prevent the disclosure to outside parties
                  of the
                  terms of this Agreement, except as required by
                  law.

              

      

      

      
        	XI.    
                	
                PAYMENTS
                  AND BILLING

              

      

      

      Each
        month, RDSI will invoice the Bank for the fees referenced in Section III
        above
        and for any other amounts that may be owing from the Bank to RDSI under the
        terms of this Agreement. If any invoice is not paid in full within thirty-one
        (31) days after the date of the invoice, the unpaid portion will be subject
        to,
        and the Bank agrees to pay, a service charge of one percent (1%) per month
        on
        such unpaid portion.

      

      
        	XII.    
                	
                GENERAL

              

      

      

      
        	A.  	
                The
                  Bank acknowledges that it has not been induced to enter this Agreement
                  by
                  any representation or warranty not set forth in this Agreement.
                  This
                  Agreement, together with the addenda and schedules attached hereto,
                  contain the entire agreement of the parties with respect to its
                  subject
                  matter hereof, and supersedes all existing agreements and all other
                  oral,
                  written or other communications with respect to such matters. This
                  Agreement may not be modified in any way except by a writing signed
                  by
                  both parties. If at any time after the effective date of the Agreement,
                  RDSI and the Bank agree upon the provision of additional Services
                  not
                  originally covered by this Agreement, such additional Services
                  shall be
                  dealt with in an Addendum to this Agreement signed by both RDSI
                  and the
                  Bank.

              

      

      

      
        	B.  	
                This
                  Agreement may not be assigned by the Bank, in whole or in part,
                  without
                  the prior written consent of RDSI. This Agreement shall be binding
                  upon
                  and shall insure to the benefit of RDSI and the Bank and their
                  respective
                  successors and permitted assigns.

              

      

      

      
        	C.  	
                If
                  any provision of the Agreement shall be held to be invalid, illegal
                  or
                  unenforceable, the validity, legality or enforceability of the
                  remainder
                  of the Agreement shall not in any way be affected or impaired
                  thereby.

              

      

      

      
        	D.  	
                The
                  Headings in this Agreement are intended for convenience of reference
                  and
                  shall not affect its
                  interpretation.

              

      

      

      
        	E.  	
                The
                  individuals executing this Agreement on behalf of RDSI and the
                  Bank do
                  each hereby represent and warrant that they are duly authorized
                  by all
                  necessary action to execute the Agreement on behalf of their respective
                  principals.

              

      

      

      
        	F.  	
                This
                  Agreement shall be governed by and construed in accordance with
                  the laws
                  of the State of Ohio.

              

      

      

      
        	G.  	
                Neither
                  RDSI nor the Bank will be responsible for delays or failures in
                  performance resulting from acts reasonably beyond the control of
                  that
                  party. Such acts will include, but not be limited to (i) mechanical
                  failures or breakdown of electronic data processing equipment,
                  (ii)
                  shortages in supplies or materials, (iii) strikes, lockouts, riots,
                  civil
                  disturbance, war or insurrection, (iv) fire, epidemics or other
                  casualty;
                  (v) earthquakes, floods, tornadoes, storms or similar acts of God,
                  (vi)
                  destruction of data communication lines, or (vii) governmental
                  regulations
                  or interference.

              

      

       

      
        
          
            RURBANC
              DATA SERVICES, INC.

          

          
            PAGE
              5

            
              

            

          

          
            
            

          

        

         

      

      
        	H.  	
                RDSI
                  and the Bank agree that if at anytime documentation or other information
                  is in transit via ground courier from Bank to RDSI or from RDSI
                  to Bank,
                  the party making the shipment will maintain or cause the courier
                  to
                  maintain reasonable insurance with respect to such
                  items.

              

      

      

      
        	I.  	
                If
                  at any time RDSI is required to incur costs for the express and
                  limited
                  purpose of complying with changes in the law that (i) occur after
                  the
                  effective date of this Agreement and (ii) relate directly to the
                  provision
                  of Services hereunder, RDSI will be entitled to charge the Bank
                  and each
                  of its other clients a pro rata fee based upon such compliance
                  costs
                  incurred by RDSI.

              

      

       

      
        	J.  	
                The
                  parties agree that the services to be provided by RDSI under the
                  Agreement
                  are not regulated services, public utility services or telecommunications
                  services. If at any time any court holds or any public agency asserts
                  that
                  RDSI is providing regulated services, public utility services or
                  telecommunications services under this Agreement, the parties agree
                  to
                  modify the Agreement to eliminate the provisioning of such activities
                  by
                  RDSI.

              

      

       

      

      
        	XIII.    
                	
                INTERNAL
                  REVENUE SERVICE

              

      

      

      As
        part
        of the Services, RDSI shall at all times attempt to comply with all applicable
        Internal Revenue Service ("IRS") reporting requirements. In that regard,
        if at
        any time, the IRS assesses a fine or penalty against the Bank based upon
        information provided to the IRS by RDSI, and RDSI, in its reasonable judgement,
        determines that the fine or penalty did not result from erroneous information
        previously provided to RDSI by the Bank, then subject to the liability
        limitations contained in Section VIII hereof, RDSI will indemnify and save
        the
        Bank harmless from such fines and penalties.

      

      
        	XIV.    
                 	
                ON-LINE
                  AVAILABILITY AND OTHER
                  MATTERS

              

      

      

      
        	A.  	
                RDSI
                  will make every reasonable effort to have On-Line Inquiry Services
                  available during the following
                  hours:

              

      

      
         

        
          	
                  On-Line
                    Availability

                	
                  Schedule

                
	
                  8:00
                    a.m. - 7:00 p.m.

                  8:00
                    a.m. - 7:00 p.m.

                  8:00
                    a.m. - 7:00 p.m.

                  8:00
                    a.m. - 7:00 p.m.

                  8:00
                    a.m. - 7:00 p.m.

                  8:00
                    a.m. - 3:00 p.m.

                  Not
                    Available Unless Previously Arranged

                  Not
                    Available Unless Previously Arranged 

                	
                  Monday

                  Tuesday

                  Wednesday

                  Thursday

                  Friday

                  Saturday

                  Sunday

                   

                  Scheduled
                    Holidays

                  *Based
                    on Federal Reserve Holiday
                    Schedule

                

        

      

      
         

        
          	B.  	
                  RDSI
                    will provide system updates nightly for the Bank, Monday through
                    Friday,
                    excluding Federal Reserve holidays. Saturday's work will be posted
                    or
                    updated during Monday's nightly update. In addition, Friday's
                    actual
                    reports typically will not be delivered to the Bank until the
                    following
                    Monday morning, with delivery being made by ground courier, via
                    Director
                    Report Storage and Retrieval System, the MACROFICHE Report Storage
                    and
                    Retrieval System, by the RECALL Optical Disk Systems, or by other
                    RDSI
                    supported Report Storage and Retrieval System. Although processing
                    will
                    not occur on Saturdays, the on-line system will be available
                    to the Bank
                    on Saturday, so that regular business may be
                    conducted.

                

        

      

      

      
        	C.  	
                RDSI
                  assures on-line availability for balance verification and transaction
                  authorization to the RDSI Enterprise Server (host computer) at
                  least
                  ninety-five percent (95%) of the processing time each month (excluding
                  scheduled down time for normal system maintenance) provided the
                  Bank's
                  network and data communication lines are available. The Bank shall
                  be
                  notified at least one (1) week in advance of any scheduled Enterprise
                  Server (host computer) downtime.

              

      

       

      
        
          
            
              RURBANC
                DATA SERVICES, INC.

            

            
              PAGE
                6

              
                

              

            

            
              
              

            

          

           

        

      

      
        	D.  	
                On
                  a monthly basis, RDSI will assure that its on-line computing facilities
                  are available for the processing of the Bank's on-line transactions
                  at a
                  minimum of ninety-five percent (95%) of the time, measured over
                  a calendar
                  month at the point of departure from the RDSI Enterprise Server
                  (host
                  computer).

              

      

      

      
        	E.  	
                On-line
                  response time is a direct function of the data communication line
                  speed
                  and the Bank's internal network. If requested by the Bank, RDSI,
                  as an
                  additional service performed at its standard rates, will assist
                  the Bank
                  in analyzing and maintaining an acceptable and satisfactory response
                  time
                  and, when necessary, will assist the Bank in attempting to improve
                  the
                  response time.

              

      

      

      
        	F.  	
                As
                  part of its customer service, RDSI will endeavor to respond to
                  the Bank's
                  questions within an average response time of two (2) hours after
                  RDSI is
                  contacted at its Customer Support
                  Center.

              

      

      

      
        	G.  	
                RDSI
                  will notify the Bank of any errors in the RDSI software or operating
                  system procedures that appear to impact the Bank whenever such
                  errors are
                  detected by or reported to RDSI. Such notification shall include
                  a plan
                  for correction of the error.

              

      

      

      
        	H.  	
                RDSI
                  will provide the Bank two (2) weeks notice of any change in routing
                  operating procedures. Changes falling into this category include
                  but are
                  not limited to: (i) persons to notify in the event of a problem;
                  (ii) form
                  of communications; (iii) change in processing or contact location;
                  and
                  (iv) hours of service, etc.

              

      

      

      
        	I.  	
                RDSI
                  will notify the Bank, in writing, of any enhancements or new releases
                  of
                  the RDSI software not less than one (1) week prior to implementation
                  of
                  such changes.

              

      

      

      

      
        	J.  	
                In
                  addition to the analysis RDSI will provide to Bank with respect
                  to on-line
                  response time of the data line speed pursuant to Section XIV.E.,
                  it is
                  understood and agreed by the parties that RDSI has and will continue
                  to
                  analyze, negotiate and execute contracts with the telecommunications
                  carrier providing data line service for the benefit of Bank. The
                  data
                  communication service that has been or will be obtained and maintained
                  by
                  RDSI includes [dedicated
                  high speed access service and frame relay service].
                  RDSI will use its best efforts to enter into a contract with a
                  term that
                  is coincident with the term of the Agreement, but may be required
                  to enter
                  into a contract with a shorter term. RDSI will provide further
                  support and
                  maintenance service to Bank by interfacing with the telecommunications
                  carrier providing such data lines with respect to any billing and
                  maintenance issues that may arise during the term of contract with
                  the
                  carrier. The fees for analysis, negotiation, maintenance and support
                  services for the data lines shall be as specified on the Fee Schedule,
                  as
                  revised from time to time. Although the data lines may be obtained
                  in the
                  name of RDSI, it is understood and agreed that such services are
                  a
                  necessary component in providing data processing services to Bank
                  under
                  the Agreement and, therefore, are being obtained for the sole purpose
                  of
                  providing such services to the
                  Bank.

              

      

      

      
        	XV.    
                	
                TERMINATION

              

      

      

      
        	A.  	
                In
                  the event that any correct invoice submitted by RDSI to the Bank
                  remains
                  unpaid thirty-one (31) days after the date of the invoice, RDSI,
                  at its
                  option, may terminate this Agreement. For purposes of this Section
                  XV.A.,
                  any invoice submitted by RDSI shall be deemed correct unless, within
                  thirty (30) days of the date of the invoice, the Bank provides
                  a written
                  notice to RDSI which states, with reasonable particularity and
                  detail, the
                  nature of the claimed error.

              

      

       

      
        
          
            
              RURBANC
                DATA SERVICES, INC.

            

            
              PAGE
                7

              
                

              

            

            
              
              

            

          

           

        

      

      
        	B.  	
                RDSI
                  may terminate this Agreement if the Bank breaches the “exclusive provider”
                  arrangements provided for in Section I
                  above.

              

      

      

      
        	C.  	
                Either
                  RDSI or the Bank may terminate the Agreement in the event that
                  (i) the
                  other party becomes the subject of any proceeding under the Bankruptcy
                  Code, or (ii) if any substantial part of the other party's property
                  becomes subject to levy, seizure, attachment or sale by creditor
                  or
                  governmental agency, whether pursuant to a receivership proceeding
                  or
                  otherwise.

              

      

      

      
        	D.  	
                Either
                  RDSI or the Bank may terminate this Agreement as provided in Section
                  II
                  above.

              

      

      

      
        	E.  	
                In
                  addition to the termination rights previously provided for in this
                  Section
                  XV., either RDSI or the Bank may terminate this Agreement in the
                  event
                  that any other material breach of this Agreement by the other party
                  is not
                  cured within ninety (90) days following written notice stating,
                  with
                  reasonable particularity and detail, the nature of the claimed
                  breach.

              

      

      

      
        	F.  	
                Notwithstanding
                  any provisions in this Agreement to the contrary, should Bank terminate
                  this Agreement for any reason prior to the conclusion of the term
                  of the
                  Agreement or terminate the use of any data communication line used
                  to
                  provide data processing services herein, Bank shall continue to
                  reimburse
                  RDSI for costs incurred by RDSI under contract with a telecommunications
                  carrier for data communication lines obtained by RDSI to provide
                  data
                  processing services under this Agreement. Costs to be reimbursed
                  may
                  include, but are not limited to, early termination charges which
                  may be
                  imposed by the telecommunications carrier. Such reimbursement shall
                  continue until the contract with the telecommunications carrier
                  terminates, provided that RDSI must exercise every right available
                  to
                  terminate such contract and will work with Bank to negotiate any
                  early
                  termination with the telecommunications
                  carrier.

              

      

       

       

      
        	XVI.    
                	
                REMEDIES

              

      

      

      
        	A.  	
                If
                  at any time during the Initial Term of this Agreement, RDSI terminates
                  this Agreement pursuant to Section XV.A., Section XV.B. or Section
                  XV.C or
                  Section XV.E. above, then, in any such instance, RDSI shall be
                  entitled to
                  recover from the Bank - in addition to any amount accrued for Services
                  performed prior to the date of termination - as liquidated damages
                  and not
                  as a penalty, an amount equal to the present value of all payments
                  remaining to be made hereunder for the remainder of the Initial
                  Term of
                  this Agreement. For purposes of the preceding sentence, the present
                  value
                  shall be computed using the "prime" rate (as published in The Wall
                  Street
                  Journal) in effect at the date of termination and "all payments
                  remaining
                  to be made" shall be calculated based on the average of RDSI's
                  invoices
                  for the three (3) months in which its billings to the Bank were
                  the
                  highest during the 12-month period immediately preceding the date
                  of
                  termination (or such shorter period as is applicable if this Agreement
                  has
                  not been in effect for 12 months) multiplied by the number of months
                  remaining in the Initial Term of the Agreement. RDSI and the Bank
                  acknowledge and agree that in the event of a termination of the
                  character
                  described in this Section XVI.A., RDSI will suffer substantial
                  damages
                  that are difficult or impossible to quantify; that the amount calculated
                  under the terms of this Section XVI.A. is a reasonable estimate
                  of RDSI's
                  probable damages; and that such amount shall be payable as liquidated
                  damages hereunder in the event of any such termination. The Bank
                  agrees to
                  reimburse RDSI for any expenses, including reasonable attorney's
                  fees,
                  that RDSI incurs in enforcing its remedies under this Section
                  XVI.A.

              

      

      

      
        	XVII.    
                	
                ARBITRATION

              

      

      

      
        	A.  	
                Any
                  dispute or controversy arising out of this Agreement of its interpretation
                  shall be submitted to and resolved exclusively by arbitration under
                  the
                  rules then prevailing of the American Arbitration Association,
                  upon
                  written notice of demand for arbitration by the party seeking arbitration,
                  setting forth the specifics of the matter in controversy or the
                  claim
                  being made. The Arbitration shall be heard before an arbitrator
                  mutually
                  agreeable to the parties; provided, that if the parties cannot
                  agree upon
                  the choice of arbitrator within ten (10) days after the first party
                  seeking arbitration has given written notice thereof, the arbitration
                  shall be heard by three arbitrators, one chosen by each party and
                  the
                  third chosen by those two arbitrators. The arbitrators will be
                  selected
                  from a panel of persons having experience with and knowledge of
                  information technology. A hearing of the merits of any claim for
                  which
                  arbitration is sought by either party shall be commenced not later
                  than
                  ninety (90) days from the date demand for arbitration is made by
                  the first
                  party seeking arbitration. Any award by the arbitrator(s) in any
                  such
                  arbitration proceeding shall be final and binding upon the parties
                  and a
                  judgement thereon may be entered in any court of competent
                  jurisdiction.

              

      

       

      
        
          
            
              RURBANC
                DATA SERVICES, INC.

            

            
              PAGE
                8

              
                

              

            

            
              
              

            

          

           

        

      

      
        	B.  	
                Any
                  arbitration proceedings shall be governed by the United States
                  Arbitration
                  Act. The arbitrators shall apply the substantive law of the State
                  of Ohio,
                  without reference to provision related to conflict of laws. The
                  arbitrators shall not have the power to alter, modify, amend, add
                  to or
                  subtract from any term or provision of the Agreement. The arbitrators
                  shall have the authority to grant any legal remedy that would have
                  been
                  available had the parties submitted the dispute to a judicial
                  proceeding.

              

      

      

      
        	C.  	
                If
                  arbitration is required to resolve any disputes between the parties,
                  such
                  proceeding shall be held in Columbus, Ohio or in such other location
                  that
                  is mutually agreed upon by the
                  parties.

              

      

      

      

      
        	XVIII.    
                	
                DECONVERSION
                  CONSIDERATIONS

              

      

      

      
        	A.  	
                Upon
                  termination of this Agreement, the Bank may obtain from RDSI relevant
                  data
                  files and records for the purposes of deconverison to an alternative
                  data
                  processing system via machine readable media under the following
                  pricing
                  arrangement:

              

      

      
         

        
          	B.  	 

        

      

      
        	1.  	
                File
                  Delivery Fee- i.e.: magnetic, pull file, internet, email, CD Rom
                  etc. -
                  $500.00 per file delivered.

              

      

      
        	2.  	
                Bank
                  agrees to purchase from RDSI, at RDSI’s cost, all used special form
                  inventory previously purchased at RDSI’s
                  expense.

              

      

      
        	3.  	
                All
                  data processing line charges yet to be invoiced, calculated to
                  the
                  estimated date of deconversion and actual line disconnect
                  order.

              

      

      
        	4.  	
                Programming
                  and Software Deconversion Charges -
                  $5,000.00

              

      

      
        	5.  	
                Additional
                  charges, if any, directly relating to the Deconversion, as assessed
                  by
                  Information Technology, Inc. (ITI), Lincoln, Nebraska. These charges,
                  if
                  any, as determined by ITI will be passed through directly to the
                  Bank.

              

      

      
        	6.  	
                RDSI
                  Special Report Handling of reports, trials, listings, report writing
                  etc.
                  - $50.00 per report.

              

      

      

      
        	C.  	
                The
                  deconversion activities contemplated by this Section XVIII, shall
                  constitute additional services hereunder and the amounts payable
                  to RDSI
                  therefore (i) shall be in addition to the fees called for in the
                  Fee
                  Schedule referenced in Section III above, and (ii) shall be due
                  prior to
                  RDSI’s release of the information in
                  question.

              

      

      

      
        	D.  	
                The
                  Bank shall not be required to pay any of the deconverison fees
                  or charges
                  provided for in this Section XVIII. in the event this Agreement
                  is
                  terminated by the Bank pursuant to either Section XV.C. or Section
                  XV.E.
                  above.

              

      

      

      
        	XIX.     
                	
                NONSOLICITATION
                  OF EMPLOYEES

              

      

      

      During
        the term of this Agreement and for a period of twelve (12) months thereafter,
        without prior written consent of the other, neither RDSI nor the Bank will
        offer
        employment to or otherwise employ any person employed by the other if the
        person
        was involved with the Services provided under this Agreement.

       

      
        	XX.     
                	
                PATENT
                  INDEMNITY

              

      

      

      Each
        of
        RDSI and the Bank shall indemnify, defend and hold harmless the other from
        any
        and all claims, actions, damages, liabilities, costs and expenses, including
        without limitation reasonable attorney’s fees and expenses, arising out of any
        claims of infringement of any United States letters patent, any trade secret,
        or
        any copyright, trademark, service mark, trade name or similar proprietary
        rights
        conferred by common law or by any law of the United States or any state alleged
        to have occurred because of systems provided or work performed. However,
        this
        indemnity will not apply unless the party seeking indemnity informs the party
        from whom indemnification is sought promptly concerning the matter in question
        and gives such party full opportunity to control the defense thereof, including
        without limitation any agreement relating to settlement.

      

      
        	XXI.    
                	
                NOTICES

              

      

      

      All
        notices and other communications hereunder shall be in writing and will be
        deemed to have been given when delivered by hand or deposited in the United
        States mail, first class (or in the case of a breach, registered or certified,
        return receipt requested with proper postage, registration and certification
        fees prepaid), addressed to the party for whom intended at the respective
        addresses set forth below, or such other address as may be designated pursuant
        hereto:

       

      
        
          	
                  If
                    to RDSI:

                	
                  If
                    to the Bank:

                
	
                  2010
                    Jefferson Avenue

                	
                  33583
                    Woodward Ave.

                
	
                  Defiance,
                    Ohio 43512

                	
                  Birmingham,
                    Michigan 48012-2540

                
	
                  Attention:
                    Jon A. Brenneman

                	
                  Attention:
                    Rich Miller

                

        

      

      

      IN
        WITNESS WHEREOF, RDSI and the Bank have caused the Agreement to be executed
        and
        delivered by their duly authorized representatives effective as of the date
        first above written.

      

      Commencement
        Date: ____________________

      

      

      RURBANC
        DATA SERVICES, INC.

      

      By:
        /s/ Jon A. Brenneman

      

      Title:
        Executive Vice President

      

      Bank
        of
        Birmingham 

      

      By:
        /s/ Richard J.Miller

      

      Title:
        Chief Financial Officer

      

         

        
          
            RURBANC
              DATA SERVICES, INC.

          

          
            PAGE
              9Unassociated Document

    
      RURBANC
        DATA SERVICES, INC.

      

      ITEM
        PROCESSING SERVICES AGREEMENT

       

      
        This
          agreement is entered into effective as of February
          16, 2005, by and between Rurbanc Data Services,
          Inc., a wholly owned, subsidiary of Rurban Financial Corporation, an Ohio
          Corporation located at 401 Clinton Street, Defiance, Ohio 43512 (there
          after
          referred to as “RDSI”), and

        

        Bank
          of
          Birmingham

        33583
          Woodward Ave.

        PO
          Box
          2540

        Birmingham,
          MI 48012-2540

        (hereinafter
          referred to as “Bank”).

        

        
          	I.    
                  	
                  GENERAL
                    STATEMENT CONCERNING
                    SERVICES

                

        

        

        The
          Bank agrees that RDSI may perform for the Bank certain services as described
          in
          the schedule(s) attached hereto (the “Services”), and RDSI agrees to perform
          such Services pursuant to the terms and conditions of this Agreement. The
          Bank
          agrees to compensate RDSI for the Services in accordance with the term
          of the
          Agreement.

        

        The
          Bank and RDSI agree that, during the term of this Agreement, RDSI shall
          be the
          exclusive provider of all of the Services that are provided
          hereunder.

         

        
          	II.    
                  	
                  TERM
                    OF THE AGREEMENT

                

        

         

        The
          initial term of the Agreement (the “initial term”) shall commence on the first
          date on which Services are provided to the Bank hereunder (the “Commencement
          Date”) and shall be co-terminus with the Bank’s current Data Processing
          Agreement. Thereafter, the term of the Agreement shall automatically continue
          until it is terminated by the Bank or RDSI in accordance with the terms
          hereof.

        

        In
          addition to any other termination rights that exist under other Sections
          of this
          Agreement, either the Bank or RDSI may terminate the Agreement as of the
          end of
          Initial Term or at any time thereafter by providing one hundred and eighty
          (180)
          days prior written notice to the other party.

        

        
          	III.    
                  	
                  FEES
                    FOR SERVICES

                

        

         

        
          	A.  	
                  For
                    the Services provided hereunder, the Bank shall initially pay
                    to RDSI the
                    fees specified in the Fee Schedule attached hereto as Addendum
                    A (the “Fee
                    Schedule”). The bank acknowledges that RDSI may (i) decrease such fees
                    at
                    anytime, and (ii) by providing thirty (30) days prior written
                    notice to
                    the Bank, increase any such fees at any time after the second
                    anniversary
                    of the Commencement Date, and the Bank agrees to pay such increased
                    or
                    decreased fees. Notwithstanding the foregoing, RDSI agrees that
                    it will
                    not increase its fees, in the aggregate, by more than five percent
                    (5%) in
                    any one of the second, third, fourth or fifth years of the Initial
                    Term.

                

        

         

        

        
          	B.  	
                  Exceptions
                    to the pricing arrangements specified in Section III. A. Above
                    will be
                    those related to increased account and transaction volumes of
                    the Bank;
                    new applications and services not presently utilized by the Bank;
                    Saturday
                    processing, and services not presently covered by the Agreement.
                    Bank
                    agrees to purchase its own paper supplies, statements,
                    etc.

                

        

        

        
          	C.  	
                  Bank
                    further acknowledges that the Services provided do not include
                    Saturday
                    processing; and that if, in the future, RDSI provides Saturday
                    processing
                    to the Bank as part of the Services, RDSI charges for such additional
                    Services will be in addition to those called for in Section III.A.
                    above.

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	IV.    
                  	
                  CONVERSION

                

        

        

        All
          expenses of conversion will be paid by the Bank, and will include conversion
          and
          training fees, equipment purchases and modifications, communication equipment
          and lines, ITI formal training classes, new forms and supplies and other
          conversion cost items. The conversion expenses will also include a conversion
          fee to RDSI specified within the Fee Schedule, plus any out of pocket
          expenses incurred by RDSI in direct relation to the conversion (i.e., lodging,
          meals, mileage, etc.), plus any other out of pocket expenses incurred by
          RDSI in direct relation to the deconversion of the Bank's existing processing
          system. The RDSI conversion fee will be due upon invoicing. RDSI will provide
          the Bank with the results of any conversion tests that are performed by
          RDSI.
          The Bank agrees to notify RDSI of any potential problems which it recognizes
          as
          a result of its review of such test results.

        

        
          	V.    
                  	
                  AUDIT

                

        

        

        RDSI
          employs an internal auditor responsible for ensuring the integrity of its
          processing environments and internal controls. In addition, RDSI provides
          for
          periodic independent audits of its operations. In each instance, RDSI will
          provide the Bank with a copy of the independent audit within a reasonable
          time
          after its completion, and will charge the Bank and each of its other clients
          a
          fee based on the pro rata cost of the independent audit. RDSI will also
          provide
          a copy of the independent audit to the appropriate regulatory agency having
          jurisdiction over RDSI's provision of Services hereunder.

        

        
          	VI.    
                  	
                  CORRECTION
                    OF ERRORS

                

        

        

        All
          Services provided by RDSI hereunder shall be deemed acceptable to the Bank
          unless the Bank, within 30 days following its receipt of the
          Services, has provided to RDSI a written notice which reasonably identifies
          the
          claimed error together with supporting documentation which reasonably supports
          the claim. In each such instance, RDSI promptly and in good faith (i) will
          review that claim and where the claim is meritorious (ii) will attempt
          to
          reprocess or otherwise remedy the problem at its own cost and expense,
          subject
          to the limitations set forth in Section VIII below. Work reprocessed due
          to
          error in data supplied by Bank, on Bank's behalf by a third party, or by
          Bank's
          failure to follow procedures set forth by RDSI will be billed to the Bank
          at
          RDSI's then current rates as additional services hereunder.

        

        
          	VII.    
                  	
                  WARRANTIES

                

        

        

        
          	A.  	
                  RDSI
                    represents and warrants that: (i) the Services will conform to
                    the
                    specifications, if any, set forth in the schedules attached to
                    this
                    Agreement, (ii) RDSI will perform the Bank's work accurately
                    and in
                    accordance with the provisions of the Agreement, including Section
                    XIII
                    hereof, provided that the Bank supplies accurate data and information
                    and
                    follows the procedures described in all of RDSI's documentation,
                    notices
                    and advice's; (iii) RDSI personnel will exercise due care in
                    providing the
                    Services; (iv) RDSI's performance hereunder will comply in all
                    material
                    respects with all Federal and State laws that are in existence
                    as of the
                    effective date of this Agreement; and (v) RDSI has implemented
                    appropriate
                    measures which are designed to meet the objectives of the “Guidelines”
                    that, as of the effective date of this Agreement, have been established
                    by
                    the Bank’s regulators with respect to Section 5.01 (b) of the
                    Gramm-Leach-Bliley Act [15 U.S.C. 6801(b)].

                

        

        

        
          	B.  	
                  THE
                    WARRANTIES STATED IN SECTION VII.A. ABOVE ARE LIMITED WARRANTIES
                    AND ARE
                    THE ONLY WARRANTIES MADE BY RDSI. RDSI DOES NOT MAKE, AND THE
                    BANK HEREBY
                    EXPRESSLY WAIVES, ALL OTHER WARRANTIES, INCLUDING WARRANTIES
                    OF
                    MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE STATED
                    EXPRESS
                    WARRANTIES ARE IN LIEU OF ALL LIABILITIES OR OBLIGATIONS OF RDSI
                    FOR
                    DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE DELIVERY, USE
                    OR
                    PERFORMANCE OF THE SERVICES.

                

        

        

        
          	C.  	
                  The
                    Bank represents and warrants that: (i) no contractual obligations
                    exist
                    that would prevent the Bank from entering into the Agreement;
                    (ii) that
                    throughout the term of this Agreement, it will comply with all
                    applicable
                    regulatory requirements; (iii) it has requisite authority to
                    execute,
                    deliver and perform this Agreement. The Bank shall indemnify
                    and hold
                    harmless RDSI, its officers, directors, employees and affiliates
                    against
                    any and all claims by third parties arising out of the performance
                    and
                    nonperformance of the Service by RDSI hereunder; provided, that
                    such
                    indemnity on the part of the Bank shall not preclude the Bank
                    from
                    recovering direct damages from RDSI pursuant to the terms and
                    subject to
                    the limitations of the Agreement.

                

        

         

        
          
            RURBANC
              DATA SERVICES, INC.

          

          
            PAGE
              2

            
              

            

          

          
            
            

          

        

         

        
          	VIII.    
                  	
                  LIMITATION
                    OF LIABLITY

                

        

        

        
          	A.  	
                  IN
                    NO EVENT SHALL RDSI BE LIABLE FOR LOSS OF GOOD WILL, OR FOR SPECIAL,
                    INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING
                    FROM THE
                    BANK'S USE OF THE SERVICES OR RDSI'S SUPPLY OF EQUIPMENT OR SOFTWARE,
                    REGARDLESS OF WHETHER SUCH CLAIM ARISES IN TORT OR IN CONTRACT.
                    RDSI'S
                    AGGREGATE LIABILITY FOR ANY AND ALL CAUSES OF ACTION RELATING
                    TO THE
                    SERVICES SHALL BE LIMITED TO THE TOTAL FEES PAID BY THE BANK
                    TO RDSI
                    HEREUNDER FOR THE SERVICES RESULTING IN SUCH LIABILITY IN THE
                    TWO-MONTH
                    PERIOD PRECEEDING THE DATE THE CLAIM ACCRUED; AND RDSI'S AGGREGATE
                    LIABILITY FOR A DEFAULT RELATING TO EQUIPMENT OR SOFTWARE SHALL
                    BE LIMITED
                    TO THE AMOUNT PAID BY THE BANK FOR THE EQUIPMENT OR
                    SOFTWARE.

                

        

        

        
          	B.  	
                  If
                    the Bank's records or other data submitted for processing are
                    lost or
                    damaged as a result of any failure by RDSI, its employees or
                    agents to
                    exercise reasonable care to prevent such loss or damages, RDSI's
                    liability
                    on account of such loss or damages shall not exceed the reasonable
                    cost of
                    reproducing such records or data from exact duplicates thereof
                    in the
                    Bank's possession.

                

        

        

        
          	IX.    
                  	
                  DISASTER
                    RECOVERY

                

        

        

        
          	A.  	
                  RDSI
                    maintains a disaster recovery plan (the "Disaster Recovery Plan")
                    with
                    respect to each of the Services. For purposes of the Agreement,
                    a
                    "Disaster" shall mean any unplanned interruption of the operations
                    of or
                    inaccessibility to RDSI's service center in which RDSI, using
                    reasonable
                    judgement, requires relocation of processing to a recovery location.
                    RDSI
                    shall notify the Bank as soon as possible after RDSI deems a
                    service
                    outage to be a Disaster. RDSI shall move the processing of the
                    Bank's
                    standard services to a recovery location as expeditiously as
                    possible. The
                    Bank shall maintain adequate records of all transactions during
                    the period
                    of service interruption and shall have personnel available to
                    assist RDSI
                    in implementing the switchover to the recovery location. During
                    a
                    disaster, optional or on-request services shall be provided by
                    RDSI only
                    to the extent adequate capacity exists at the recovery location
                    and only
                    after stabilizing the provision of base
                    services.

                

        

        

        
          	B.  	
                  RDSI
                    will test the Disaster Recovery Plan periodically. The Bank agrees
                    to
                    participate in and assist RDSI with such test, if requested by
                    RDSI. Upon
                    the Bank's request, test results will be made available to the
                    Bank's
                    management, regulators, auditors and insurance underwriters.
                    RDSI will
                    charge the Bank and each of its clients a fee based on the pro
                    rata cost
                    of the disaster recovery program.

                

        

        

        
          	C.  	
                  RDSI
                    will release to the Bank information necessary to allow the Bank
                    to
                    develop, and the Bank agrees to develop with respect to its own
                    internal
                    operations and equipment, a disaster recovery plan that operates
                    in
                    concert with the Disaster Recovery
                    Plan.

                

        

        

        
          	D.  	
                  The
                    Bank understands and agrees that the Disaster Recovery Plan is
                    designed to
                    minimize, but not eliminate, risks associated with a disaster
                    affecting
                    RDSI's service center. RDSI does not warrant that the Services
                    will be
                    uninterrupted or error free in the event of a Disaster, and no
                    performance
                    standards shall be applicable during the pendency of any Disaster.
                    The
                    Bank shall be responsible for adopting a disaster recovery plan
                    relating
                    to disasters affecting the Bank's facilities and for securing
                    business
                    interruption insurance or other insurance necessary for the Bank's
                    protection.

                

        

        

        
          	X.    
                  	
                  OWNERSHIP
                    AND CONFIDENTIALITY

                

        

        

        
          	A.  	
                  It
                    is understood that the Bank is the legal owner of all data and
                    records
                    relative to itself which may be in the possession of RDSI and
                    that such
                    data and records may be obtained by the Bank via machine readable
                    form at
                    a reasonable charge determined by RDSI, as stated in Section
                    XVII
                    (Deconversion Considerations) of the Agreement. RDSI is the owner
                    of all
                    programs and documentation.

                

        

         

        
          
            
              RURBANC
                DATA SERVICES, INC.

            

            
              PAGE
                3

              
                

              

            

            
              
              

            

          

           

        

        
          	B.  	
                  RDSI
                    and the Bank each agree that all information including, but not
                    limited to
                    business methods, internal operations data and customer records,
                    communicated to it by the other either before or after the effective
                    date
                    of this Agreement, was and shall be received in strict confidence,
                    shall
                    be used only for the purposes of this Agreement, and that no
                    such
                    information shall be disclosed by the recipient party without
                    the prior
                    written consent of the other party, and each agrees that each
                    party will
                    prevent the disclosure to outside parties of the terms and provisions
                    hereof, except as may be necessary by reasons of legal, accounting,
                    or
                    regulatory requirements beyond the reasonable control of RDSI
                    or the Bank,
                    as the case may be.

                

        

        

        
          	C.  	
                  This
                    Agreement absolutely prohibits either party from disclosing confidential
                    information of the other, except as required by law or court
                    order or
                    disclosure of information already in the public domain through
                    no fault of
                    either party to the Agreement. Both parties agree to notify the
                    other of
                    any breach of confidentiality.

                

        

        

        
          	D.  	
                  RDSI
                    and the Bank agree to indemnify and hold harmless the other from
                    any
                    direct loss, damage cost or expense which the other may sustain
                    or incur
                    by reason of any wrongful use by RDSI or the Bank, as the case
                    may be, of
                    confidential information of the other obtained in the course
                    of the
                    performance of this Agreement. In no event, shall such indemnification
                    extend to claims by or information communicated by third parties
                    not
                    subject to the Agreement.

                

        

        

        
          	E.  	
                  RDSI
                    agrees that it will comply with all applicable Federal and State
                    Banking
                    regulations governing the use of disclosure of information provided
                    by the
                    Bank.

                

        

        

        
          	F.  	
                  RDSI
                    shall establish and maintain reasonable safeguards against the
                    destruction
                    or loss of the Bank's data in the possession of
                    RDSI.

                

        

        

        
          	G.  	
                  RDSI
                    will notify the Bank of any system changes that will effect the
                    Bank's
                    procedures, reports, etc.

                

        

        

        
          	H.  	
                  RDSI
                    and the Bank each agree that all Bank information, including
                    hard copy
                    report media as well as on-line data, and all Bank customer data,
                    shall be
                    held in strict confidence, and shall be used only for purposes
                    of the
                    Agreement, and that no such information shall be disclosed without
                    the
                    prior written consent of the Bank. RDSI and Bank each agrees
                    to take all
                    reasonable precautions to prevent the disclosure to outside parties
                    of the
                    terms of this Agreement, except as required by
                    law.

                

        

        

        
          	XI.    
                  	
                  PAYMENTS
                    AND BILLING

                

        

        

        Each
          month, RDSI will invoice the Bank for the fees referenced in Section III
          above
          and for any other amounts that may be owing from the Bank to RDSI under
          the
          terms of this Agreement. If any invoice is not paid in full within thirty-one
          (31) days after the date of the invoice, the unpaid portion will be subject
          to,
          and the Bank agrees to pay, a service charge of one percent (1%) per month
          on
          such unpaid portion.

        

        
          	XII.    
                  	
                  GENERAL

                

        

        

        
          	A.  	
                  The
                    Bank acknowledges that it has not been induced to enter this
                    Agreement by
                    any representation or warranty not set forth in this Agreement.
                    This
                    Agreement, together with the addenda and schedules attached hereto,
                    contain the entire agreement of the parties with respect to its
                    subject
                    matter hereof, and supersedes all existing agreements and all
                    other oral,
                    written or other communications with respect to such matters.
                    This
                    Agreement may not be modified in any way except by a writing
                    signed by
                    both parties. If at any time after the effective date of the
                    Agreement,
                    RDSI and the Bank agree upon the provision of additional Services
                    not
                    originally covered by this Agreement, such additional Services
                    shall be
                    dealt with in an Addendum to this Agreement signed by both RDSI
                    and the
                    Bank.

                

        

        

        
          	B.  	
                  This
                    Agreement may not be assigned by the Bank, in whole or in part,
                    without
                    the prior written consent of RDSI. This Agreement shall be binding
                    upon
                    and shall insure to the benefit of RDSI and the Bank and their
                    respective
                    successors and permitted assigns.

                

        

         

        
          	C.  	
                  If
                    any provision of the Agreement shall be held to be invalid, illegal
                    or
                    unenforceable, the validity, legality or enforceability of the
                    remainder
                    of the Agreement shall not in any way be affected or impaired
                    thereby.

                

        

         

        
          
            
              RURBANC
                DATA SERVICES, INC.

            

            
              PAGE
                4

              
                

              

            

            
              
              

            

          

        

         

        
          	D.  	
                  The
                    Headings in this Agreement are intended for convenience of reference
                    and
                    shall not affect its
                    interpretation.

                

        

        

        
          	E.  	
                  The
                    individuals executing this Agreement on behalf of RDSI and the
                    Bank do
                    each hereby represent and warrant that they are duly authorized
                    by all
                    necessary action to execute the Agreement on behalf of their
                    respective
                    principals.

                

        

        

        
          	F.  	
                  This
                    Agreement shall be governed by and construed in accordance with
                    the laws
                    of the State of Ohio.

                

        

        

        
          	G.  	
                  Neither
                    RDSI nor the Bank will be responsible for delays or failures
                    in
                    performance resulting from acts reasonably beyond the control
                    of that
                    party. Such acts will include, but not be limited to (i) mechanical
                    failures or breakdown of electronic data processing equipment,
                    (ii)
                    mechanical failures or breakdown of courier vehicles/transportation
                    services (iii) shortages in supplies or materials, (iv) strikes,
                    lockouts,
                    riots, civil disturbance, war or insurrection, (v) fire, epidemics
                    or
                    other casualty; (vi) earthquakes, floods, tornadoes, storms or
                    similar
                    acts of God, (vii) destruction of data communication lines, or
                    (viii)
                    governmental regulations or
                    interference.

                

        

        

        
          	H.  	
                  RDSI
                    and the Bank agree that if at anytime documentation or other
                    information
                    is in transit via ground courier from Bank to RDSI or from RDSI
                    to Bank,
                    the party making the shipment will maintain or cause the courier
                    to
                    maintain reasonable insurance with respect to such
                    items.

                

        

        

        
          	I.  	
                  If
                    at any time RDSI is required to incur costs for the express and
                    limited
                    purpose of complying with changes in the law that (i) occur after
                    the
                    effective date of this Agreement and (ii) relate directly to
                    the provision
                    Services hereunder, RDSI will be entitled to charge the Bank
                    and each of
                    its other clients a pro rata fee based upon such compliance costs
                    incurred
                    by RDSI.

                

        

        

        
          	XIII.    
                  	
                  ON-LINE
                    AVAILABILITY AND OTHER
                    MATTERS

                

        

        

        
          	A.  	
                  RDSI
                    will provide item processing services daily for the Bank, Monday
                    through
                    Friday, excluding Federal Reserve holidays. Saturday's work will
                    be posted
                    or updated during Monday's nightly update. In addition, Friday's
                    actual
                    reports typically will not be delivered to the Bank until the
                    following
                    Monday morning, with delivery being made by ground courier, via
                    the
                    MACROFICHE Report Storage and Retrieval System, by the RECALL
                    Optical Disk
                    Systems, or by other RDSI supported Report Storage and Retrieval
                    System.
                    

                

        

        

        
          	B.  	
                  As
                    part of its customer service, RDSI will endeavor to respond to
                    the Bank's
                    questions within an average response time of two (2) hours after
                    RDSI is
                    contacted.

                

        

        

        
          	C.  	
                  RDSI
                    will notify the Bank of any errors in the RDSI software or operating
                    system procedures that appear to impact the Bank whenever such
                    errors are
                    detected by or reported to RDSI. Such notification shall include
                    a plan
                    for correction of the error.

                

        

        

        
          	D.  	
                  RDSI
                    will provide the Bank two (2) weeks notice of any change in routing
                    operating procedures. Changes falling into this category include
                    but are
                    not limited to: (i) persons to notify in the event of a problem;
                    (ii) form
                    of communications; (iii) change in processing or contact
                    location.

                

        

        

        
          	E.  	
                  RDSI
                    will notify the Bank, in writing, of any enhancements or new
                    releases of
                    the RDSI software not less than one (1) week prior to implementation
                    of
                    such changes.

                

        

        

        
          	XIV.    
                  	
                  TERMINATION

                

        

        

        
          	A.  	
                  In
                    the event that any correct invoice submitted by RDSI to the Bank
                    remains
                    unpaid thirty-one (31) days after the date of the invoice, RDSI,
                    at its
                    option, may terminate this Agreement. For purposes of the Section
                    XV.A.,
                    any invoice submitted by RDSI shall be deemed correct unless,
                    within
                    thirty (30) days of the date of the invoice, the Bank provides
                    a written
                    notice to RDSI which states, with reasonable particularity and
                    detail, the
                    nature of the claimed error.

                

        

         

        
          
            
              RURBANC
                DATA SERVICES, INC.

            

            
              PAGE
                5

              
                

              

            

            
              
              

            

          

           

        

        
          	B.  	
                  RDSI
                    may terminate this Agreement if the Bank breaches the “exclusive provider”
                    arrangements provided for in Section I
                    above.

                

        

         

        
          	C.  	
                  Either
                    RDSI or the Bank may terminate the Agreement in the event that
                    (i) the
                    other party becomes the subject of any proceeding under the Bankruptcy
                    Code, or (ii) if any substantial part of the other party's property
                    becomes subject to levy, seizure, attachment or sale by creditor
                    or
                    governmental agency, whether pursuant to a receivership proceeding
                    or
                    otherwise.

                

        

        

        
          	D.  	
                  Either
                    RDSI or the Bank may terminate this Agreement upon expiration
                    of the term
                    as provided in Section II above.

                

        

        

        
          	E.  	
                  In
                    addition to the termination rights previously provided for in
                    this Section
                    XV., either RDSI or the Bank may terminate this Agreement in
                    the event
                    that any other material breach of this Agreement by the other
                    party is not
                    cured within ninety (90) days following written notice stating,
                    with
                    reasonable particularity and detail, the nature of the claimed
                    breach.

                

        

        

        
          	XV.    
                  	
                  REMEDIES

                

        

        

        
          	A.  	
                  If
                    at any time during the Initial Term of this Agreement, RDSI terminates
                    this Agreement pursuant to Section XIV.A., Section XIV.B. Section
                    XIV.C.
                    or Section XIV.E. above, then, RDSI shall be entitled to recover
                    from the
                    Bank - in addition to any amount accrued for Services performed
                    prior to
                    the date of termination - as liquidated damages and not as a
                    penalty, an
                    amount equal to the present value of all payments remaining to
                    be made
                    hereunder for the remainder of the Initial Term of this Agreement.
                    For
                    purposes of the preceding sentence, the present value shall be
                    computed
                    using the "prime" rate (as published in The Wall Street Journal)
                    in effect
                    at the date of termination and "all payments remaining to be
                    made" shall
                    be calculated based on the average of RDSI's invoices for the
                    three (3)
                    months in which its billings to the Bank hereunder were the highest
                    during
                    the 12-month period immediately preceding the date of termination
                    (or such
                    shorter period as is applicable if this Agreement has not been
                    in effect
                    for 12 months) multiplied by the number of months remaining in
                    the Initial
                    Term of the Agreement. RDSI and the Bank acknowledge and agree
                    that in the
                    event of a termination of the character described in this Section
                    XV.A.,
                    RDSI will suffer substantial damages that are difficult or impossible
                    to
                    quantify; that the amount calculated under the terms of this
                    Section XV.A.
                    is a reasonable estimate of RDSI's probable damages; and that
                    such amount
                    shall be payable as liquidated damages hereunder in the event
                    of any such
                    termination. The Bank agrees to reimburse RDSI for any expenses,
                    including
                    reasonable attorney's fees, that RDSI incurs in enforcing its
                    remedies
                    under this Section XV.A.

                

        

        

        
          	XVI.    
                  	
                  ARBITRATION

                

        

        

        
          	A.  	
                  Any
                    dispute or controversy arising out of this Agreement of its interpretation
                    shall be submitted to and resolved exclusively by arbitration
                    under the
                    rules then prevailing of the American Arbitration Association,
                    upon
                    written notice of demand for arbitration by the party seeking
                    arbitration,
                    setting forth the specifics of the matter in controversy or the
                    claim
                    being made. The Arbitration shall be heard before an arbitrator
                    mutually
                    agreeable to the parties; provided, that if the parties cannot
                    agree upon
                    the choice of arbitrator within ten (10) days after the first
                    party
                    seeking arbitration has given written notice thereof, the arbitration
                    shall be heard by three arbitrators, one chosen by each party
                    and the
                    third chosen by those two arbitrators. The arbitrators will be
                    selected
                    from a panel of persons having experience with and knowledge
                    of
                    information technology. A hearing of the merits of any claim
                    for which
                    arbitration is sought by either party shall be commenced not
                    later than
                    ninety (90) days from the date demand for arbitration is made
                    by the first
                    party seeking arbitration. Any award by the arbitrator(s) in
                    any such
                    arbitration proceeding shall be final and binding upon the parties
                    and a
                    judgement thereon may be entered in any court of competent
                    jurisdiction.

                

        

        

        
          	B.  	
                  Any
                    arbitration proceedings shall be governed by the United States
                    Arbitration
                    Act. The arbitrators shall apply the substantive law of the State
                    of Ohio,
                    without reference to provision related to conflict of laws. The
                    arbitrators shall not have the power to alter, modify, amend,
                    add to or
                    subtract from any term or provision of the Agreement. The arbitrators
                    shall have the authority to grant any legal remedy that would
                    have been
                    available had the parties submitted the dispute to a judicial
                    proceeding.

                

        

         

        
          
            
              RURBANC
                DATA SERVICES, INC.

            

            
              PAGE
                6

              
                

              

            

            
              
              

            

          

           

        

        
          	C.  	
                  If
                    arbitration is required to resolve any disputes between the parties,
                    such
                    proceeding shall be held in Columbus, Ohio or in such other location
                    that
                    is mutually agreed upon by the
                    parties.

                

        

        

        
          	XVII.  	
                  DECONVERSION
                    CONSIDERATIONS

                

        

        

        
          	A.  	
                  Upon
                    termination of this Agreement, the Bank may obtain from RDSI
                    relevant data
                    files and records for the purposes of deconverison to an alternative
                    item
                    processing system via machine readable media under the following
                    pricing
                    arrangement:

                

        

        

        
          	1.  	
                  All
                    costs incurred by RDSI due to the Bank's deconversion to an alternate
                    provider will be the Bank's responsibility to pay. Additionally,
                    the time
                    necessary for RDSI to provide the deconversion services to the
                    bank will
                    be billable at the rate of $150.00 per
                    hour.

                

        

        

        
          	B.  	
                  The
                    deconverison activities contemplated by this Section XVII shall
                    constitute
                    additional services hereunder and the amounts payable to RDSI
                    therefore
                    (i) shall be in addition to the fees called for in the Fee Schedule
                    referenced in Section III above, and (ii) shall be due prior
                    to RDSI’s
                    release of the information in
                    question.

                

        

        

        
          	XVIII.    
                  	
                  NONSOLICITATION
                    OF EMPLOYEES

                

        

        

        During
          the term of this Agreement and for a period of twelve (12) months thereafter,
          without prior written consent of the other, neither RDSI nor the Bank will
          offer
          employment to or otherwise employ any person employed by the other if the
          person
          was involved with the Services provided under this Agreement.

        

        
          	XIX.    
                  	
                  PATENT
                    INDEMNITY

                

        

        

        Each
          of RDSI and the Bank shall indemnify, defend and hold harmless the other
          from
          any and all claims, actions, damages, liabilities, costs and expenses,
          including
          without limitation reasonable attorney’s fees and expenses, arising out of any
          claims of infringement of any United States letters patent, any trade secret,
          or
          any copyright, trademark, service mark, trade name or similar proprietary
          rights
          conferred by common law or by any law of the United States or any state
          alleged
          to have occurred because of systems provided or work performed. However,
          this
          indemnity will not apply unless the party seeking indemnity informs the
          party
          from whom indemnification is sought promptly concerning the matter in question
          and gives such party full opportunity to control the defense thereof, including
          without limitation any agreement relating to settlement.

        

        
          	XX.    
                  	
                  NOTICES

                

        

        

        All
          notices and other communications hereunder shall be in writing and will
          be
          deemed to have been given when delivered by hand or deposited in the United
          States mail, first class (or in the case of a breach, registered or certified,
          return receipt requested with proper postage, registration and certification
          fees prepaid), addressed to the party for whom intended at the respective
          addresses set forth below, or such other address as may be designated pursuant
          hereto:

        

        
 

        
          	
                  If
                    to RDSI:

                	
                  If
                    to the Bank:

                
	
                  2010
                    Jefferson Avenue

                	
                  33583
                    Woodward Ave.

                
	
                  Defiance,
                    Ohio 43512

                	
                  Birmingham,
                    Michigan 48012-2540

                
	
                  Attention:
                    Jon A. Brenneman

                	
                  Attention:
                    Rich Miller

                
	
                  Executive
                    Vice President

                	
                   

                

        

         

        
          
            
              RURBANC
                DATA SERVICES, INC.

            

            
              PAGE
                7

              
                

              

            

            
              
              

            

          

        

      

    

    
      
 

      IN
        WITNESS WHEREOF, RDSI and the Bank have caused the Agreement to be executed
        and
        delivered by their duly authorized representatives effective as of the date
        first above written.

      

      Commencement
        Date: ____________________

      

      

      RURBANC
        DATA SERVICES, INC.

      

      By:
        /s/ Jon A. Brenneman

      

      Title:
        Executive Vice President

      

      Bank
        of Birmingham 

      

      

      By:
        /s/ Richard J. Miller

      

      Title:
        Chief Financial Officer

      

         

        
          
            RURBANC
              DATA SERVICES, INC.

          

          
            PAGE
              8

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