Document:

Exhibit 10.6

IMAGE/TRADITIONAL ITEM PROCESSING SERVICES ORDER

InterCept
agrees to provide Customer with the following Item Processing Services. The
following terms and conditions are in addition to the terms and conditions of
the Master Agreement and General Terms and Conditions attached thereto. The
Parties agree that this Order is incorporated into and made part of the Master
Agreement, and is subject to the General Terms and Conditions contained therein.
In the event that these terms and conditions conflict with any term or
condition set forth in the Master Agreement, the term or condition set forth in
the Master Agreement shall control unless otherwise specified in writing by the
Parties.

***

Item
Processing Services Order

This
Item Processing Services Order is effective upon execution by both parties. The
term of this Order is 60 months (5 years), which shall commence upon the date
indicated below (the “Term Commencement Date”):

x          Date
of live conversion

o            Date
of renewal of an existing Item Processing Services Order

o    Date specified by the Parties:                                         

The
term of this Order shall be extended automatically for additional terms unless,
at least 180 days prior to such automatic extension, either party shall deliver
written notice upon the other of its intention that such Processing Services
shall not be so extended, in which case the Item Processing Services shall
continue through the remaining term but shall not be extended absent written
agreement by both Parties.

1.             Definitions.
Capitalized terms
shall have the following meanings. Capitalized terms used but not otherwise
defined herein shall have the meanings given to them in the General Terms and
Conditions.

1.1           “InterCept
System” means the Hardware and Software used by InterCept to provide the
Processing Services hereunder.

1.2           “Processing
Services” means the Image/Traditional processing and other services to be
provided by InterCept hereunder and identified in the “IMAGE/TRADITIONAL
ITEM PROCESSING DESCRIPTION OF SERVICES” attachment.

2.             Services

2.1           Item
Processing. InterCept agrees to furnish to Customer and Customer agrees to
obtain from InterCept the Processing Services for the term set forth herein. Customer
may obtain additional products and services offered by InterCept at InterCept’s
then current prices for such services. In the performance of Item Processing
Services, InterCept accepts no liability for the payment of fraudulent,
postdated, or otherwise improper documents.

2.2           Data
Retention. All Data provided to or from InterCept for Customer or on behalf
of Customer involving  any third party
shall be retained for 60 days following processing, and may be destroyed
thereafter, or as otherwise mandated by regulatory guidelines and requirements.
If image services are provided under this agreement then images shall be
retained by InterCept  for the lesser of
the term of this agreement or as otherwise mandated by regulatory guidelines
and requirements.

2.3           Fees.
Customer agrees to pay the fees for such services as identified on the “IMAGE/TRADITIONAL ITEM PROCESSING FEES” attachment. If
overtime and/or special handling is requested by Customer or is required
because of delays not caused by InterCept, Customer agrees to pay InterCept at
its then current rates for overtime and/or special handling for production
operations and for any associated out-of-pocket expenses.

2.4           Signature
Verification.

2.4.1        InterCept
shall provide Customer with signature verification services for certain large
dollar items. Customer shall provide InterCept with a current signature card
for all accounts to be processed by InterCept. The signature card shall contain
specimen signatures for each authorized signatory on each account. Customer
agrees to immediately notify InterCept of any changes to authorized signatures
on any account and to provide updated specimen signatures as changes are made.

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2.4.2        Customer
shall also provide InterCept with written notice of its large dollar threshold
(the “Threshold”) and other specific requirements. InterCept shall identify all
items delivered to InterCept for processing that exceed the Threshold. InterCept
personnel shall compare the signature on each such item with the authorized
signature for such account as identified on the signature card provided by Customer.
InterCept shall rely solely on the signature cards provided by Customer in
determining whether a particular signature is valid. In the event that any
signature on an item does not appear to be a valid signature for the account
related to such item, InterCept shall forward to Customer via facsimile a copy
of such item for review and approval by Customer. Once InterCept identifies an
item for review by Customer, InterCept shall not take any action with respect
to such item until written instructions are provided by Customer, and InterCept
shall process the item only in accordance with those instructions.

2.4.3        InterCept
will assist Customer in any reasonable manner to provide information necessary
for Customer to investigate any forged or irregular items and seek to recover
losses associated with such items.

2.4.4        Customer
acknowledges that alleged forgers are trained in the field of duplicating
checks and signatures and that certain signatures may appear valid due to the
skill of the forger.  Customer further
acknowledges that InterCept does not guarantee the performance of the signature
verification services by its personnel.  Notwithstanding any other provision of this
Order or any other agreement between InterCept and Customer, InterCept shall
have no liability for any losses, claims, damages or liabilities suffered by
Customer or its customers arising out of the signature verification services,
whether due to irregular signatures, forgeries, alleged forgeries or
inaccuracies or mistakes by InterCept personnel.

3.             Data
Transmission. Data
Transmission refers to data in electronic or physical form.

3.1           Time
Schedule. Customer and InterCept shall establish a mutually agreeable Time
Schedule for the receipt and delivery of work. Customer acknowledges that such
Time Schedule will be constrained by limitations outside of InterCept’s control
such as but not limited to the courier service provided by Customer, Federal
Reserve cutoff times, Customer’s account processing deadline requirements, and
the quantity and quality of the Customer’s documents.

3.2           Data
Transmission. Customer shall provide all data for input to the InterCept
System for processing in a format and manner, and within the Time Schedule, for
proper processing. Customer shall be responsible for the authenticity,
accuracy, reconstruction capability, and delivery of all information and data
submitted to InterCept, and for confirming the accuracy of transaction items
received from InterCept. All transaction items received by InterCept are to be
deemed approved by Customer. Any error in transaction items is the sole
responsibility of Customer. The Customer is responsible for retention and
backup of all data and processing records provided to and by InterCept.

4.             Communications.

4.1           Equipment
Compatibility. Customer agrees to use and maintain only terminals, modems,
and other Hardware, firmware, and Software (collectively, the “Equipment”)
compatible with the InterCept System. If requested by InterCept, Customer shall
provide sufficient information about the Equipment to allow InterCept to
perform tests to demonstrate the compatibility of the Equipment to the
InterCept System. Customer shall upgrade Equipment to maintain efficiency and
compatibility with the InterCept System at the request of InterCept.

4.2           Establishment
of Communications Service. InterCept is not responsible for the reliability
or continued availability of the telephone lines, communications facilities, or
electrical power used by Customer.

4.3           Risk
of Loss. Customer shall bear all risk of loss or damage to items, records,
or other input data, or reports and other output data during communication or
delivery of such data between Customer and InterCept. Customer shall be
responsible for and shall pay all charges related communications charges.

5.             Disaster
Recovery. InterCept
has in place a disaster recovery plan designed to minimize, but not eliminate,
risks associated with a disaster affecting the InterCept System and the
Processing Services. InterCept does not warrant that service will be uninterrupted
or error free in the event of a disaster. Customer is responsible for adopting
a disaster recovery plan relating to disaster’s affecting Customer’s facilities
and for securing business interruption insurance or other insurance necessary
for Customer’s protection. InterCept shall maintain adequate backup procedures
including storage of duplicate record files as necessary to reproduce Customer’s
records and data. In the event of a service disruption due to reasons beyond
InterCept’s control, InterCept shall use diligent efforts to mitigate the
effects of such an occurrence. Per section 2.5.c of the Master Agreement,
Customer may review InterCept’s disaster recovery plan.

6.             Insurance. InterCept shall maintain fidelity bond
coverage for dishonest acts committed by InterCept’s personnel, and insurance
covering hazards, including losses caused by fire, disaster, and other events
that may interrupt normal service. Such coverages shall be in amounts as
determined by *InterCept. Upon request, InterCept shall furnish Customer with
applicable certificates of insurance.

*                    Mutual
Agreement

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6.1           Service Performance Standards.

6.2           Availability
of Communications. InterCept shall ensure that the InterCept System and the
Processing Services are available for communication between Customer and
InterCept during the periods agreed to in the Time Schedule.

6.3           Exclusions.
InterCept shall not be responsible for (i) telecommunications failures, (ii) service
interruptions beyond InterCept’s control, (iii) delay or failure of any
third party courier or delivery service, or (iv) failure of any third
party vendor to deliver information, files, magnetic media, products, support
or services, or other materials required for InterCept to provide services
hereunder. In the event such delays exist without interruption for a period of
more than 30 days, Customer or InterCept may elect to terminate this Order
without penalty. Customer is under no obligation to make any payments to
InterCept for any continuous period of interruption that exceeds 5 consecutive
business days.

7.             Problem Reporting and Resolution

7.1           Problem
Reporting. Customer is responsible for reporting problems to InterCept’s
customer service or operations staff at the contact numbers or addresses
provided by InterCept from time to time.

7.2           Problem
Response. InterCept shall respond to each reported problem promptly based
on the severity of the problem and its effect on Customer’s operations. InterCept
shall use reasonable commercial efforts to either resolve each problem or
provide Customer with information to allow Customer’s personnel to address the
problem. In the event the resolution of a reported problem which materially
impacts Customer’s operations will carry-over to the next business day,
InterCept will provide Customer with a status report for the problem and an
estimate of the resolution time and course, if possible.

8.             Third Party Audit. InterCept shall provide to
Customer a copy of any third party service audits of the records of InterCept
upon request and payment by Customer of a reasonable and customary charge. If
requested, InterCept shall also provide to Customer annual audited financial
information at no charge.

9.             Termination.
In addition to sections 4.2 and 4.3 of the Master Agreement, InterCept and Customer
agree as follows:

9.1           Termination
by InterCept. InterCept may terminate
this Order at any time upon 180 days written notice to Customer.

9.2           Termination
by Customer. Customer may terminate this
Order, without cause, at any time upon 180 days written notice accompanied by a
cancellation fee. Such cancellation fee shall be 75% of the average total
monthly fees for Processing Services payable by Customer to InterCept for the
previous six months (or for all prior months if this Order has been in effect or
InterCept has been providing the Processing Services for less than six months)
multiplied by the number of months remaining in the then current term, or 75%
of the monthly “minimum charge” (as set forth in the Order) multiplied by the
number of months remaining in the then current term, whichever is greater. In
addition to the cancellation fee, Customer shall pay immediately all previously
invoiced and overdue amounts.

10.          Deconversion.

10.1         Upon
termination of this Order, InterCept shall dispose of Customer’s files as
InterCept deems appropriate unless Customer, prior to the date of termination,
provides InterCept with written instructions for the disposal of Customer’s
files. At Customer’s expense, InterCept will comply with such instructions to
the extent reasonable and feasible. InterCept reserves the right to maintain
Customer’s data for a period of 60 days following termination of this Order.

10.2         Upon
(i) termination of this Order, and (ii) written request by Customer,
Customer’s files shall be delivered to Customer provided that Customer
consents, agrees, and authorizes InterCept to retain Customer’s files until (i) InterCept
has been paid in full for all fees for all services provided hereunder through
the date such files are returned to Customer, and InterCept has been paid any
and all other amounts that are due or will become due under this Order; (ii) if
this Order is being terminated, InterCept has been paid any applicable
termination and cancellation fee pursuant to this Order or Master Agreement, (iii) Customer
has returned to InterCept all InterCept Confidential Information requested by
InterCept, and (iv) Customer pays InterCept’s normal costs and fees
associated with providing deconversion of Customer’s files. Such costs and fees
include but are not limited to shipping and handling fees, media costs, hourly
programming fees, and hourly processing fees. Customer acknowledges that
InterCept shall have a lien on Customer’s files until all such sums are paid. The
release of the lien and surrender of possession of the files shall not affect
InterCept’s claim for any payments due.

10.3         Upon
termination of this Order, and (i) At InterCept’s option, and (ii) Customer’s
written request,  InterCept may continue
to retain Customer’s files  for the
purpose of providing research, image record reprint and report reprint services
to Customer based upon InterCept’s then current fee schedule.

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Each
of InterCept and Customer has agreed to these terms and conditions as of the
date set forth below: 

 

	
  Customer:

  	
   

  	
  InterCept, Inc.:

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Dann H
  Bowman

  	
   

  	
   

  	
  By:

  	
  /s/ Todd Shiver

  	
   

  
	
   

  	
   

  	
   

  
	
  Dann H Bowman

  	
   

  	
   

  	
  Todd Shiver

  	
   

  
	
  Print Name

  	
   

  	
   

  	
  Print Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  President/ CEO

  	
   

  	
   

  	
  Vice President

  	
   

  
	
  Print Title

  	
   

  	
   

  	
  Print Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10-30-02

  	
   

  	
   

  	
  11-6-02

  	
   

  
	
  Date

  	
   

  	
   

  	
  Date

  	
   

  

 

 4
 

 

 

IMAGE/TRADITIONAL ITEM PROCESSING DESCRIPTION OF
SERVICES

Proof and Encode

·                  Over
the counter (teller) work is filmed by the bank, bundled, then routed to
InterCept. Debit and Credit totals are established and outgoing Cash Letter
items are encoded using InterCept’s Image Processing equipment.

Capture

·                  Over
the counter and Incoming Cash letter items are read by the high speed reader
sorter. Images of all documents are digitized and stored on magnetic media
along with information needed to post and/or track each document.

NSF/Unposted

·                  All
exception items will be reviewed with the bank if necessary and will then be
processed by InterCept. This includes preparation and disposition of NSF
notices, outgoing return cash letters, and ACH returns. Unposted/unmatched
items will be corrected and resubmitted for posting.

Incoming Returns

·                  InterCept
will process Participating Bank’s FRB return cash letter. Returned items will
be resubmitted, charged back to the customer account or placed in Participating
Bank’s cash items based on prearranged agreements.

Statement Rendering

·                  Imaged
statements will be printed, metered and mailed by InterCept for all Checking
and Savings accounts based on Participating Bank’s instructions. InterCept will
also verify enclosure counts, meter and mail statements on non-imaged accounts.
Any account having an image or document discrepancy (cripple statement) that
can not be resolved by InterCept will be forwarded to Participating Bank for
handling. At Participating Bank’s request, InterCept will insert marketing or
other informational material in out-going statements.

Research and Adjustments

·                  InterCept
will conduct any necessary research and make appropriate entries required
regarding FRB cash letters processed on behalf of Participating Bank.

Document Storage

·                  InterCept
will store Participating Bank’s physical items at its facility for safekeeping
until they are disposed of.

Optical Image Storage

·                  InterCept
will archive document images from Participating Bank’s designated RAID unit to
InterCept’s Optical Disk system as needed for long term storage.

Report Printing

·                  All
daily and periodic stock paper reports will be printed by InterCept for
distribution to Participating Bank.

Notices and Special Forms

·                  Any
printed system output requiring special forms will be produced by InterCept for
distribution to Participating Bank or its customer.

Electronic File Transmission

·                  InterCept
will transmit captured item data to Participating Bank via high speed data
communications for input to Participating Bank’s processing system.

 5
 

 

Positive Pay

·                  InterCept
will verify the check issues file against the checks paid file. Customer or
Customer’s customer must supply the checks issues file.

Signature Verification

·                  InterCept
shall provide Customer with signature verification services for certain large
dollar items. Customer shall provide InterCept with a current signature card
for all accounts to be processed by InterCept. The signature card shall contain
specimen signatures for each authorized signatory on each account. Customer
agrees to immediately notify InterCept of any changes to authorized signatures
on any account and to provide updated specimen signatures as changes are made.

Customer shall also provide InterCept with written notice of its large
dollar threshold (the “Threshold”) and other specific requirements. InterCept
shall identify all items delivered to InterCept for processing that exceed the
Threshold. InterCept personnel shall compare the signature on each such item
with the authorized signature for such account as identified on the signature
card provided by Customer. InterCept shall rely solely on the signature cards
provided by Customer in determining whether a particular signature is valid. In
the event that any signature on an item does not appear to be a valid signature
for the account related to such item, InterCept shall forward to Customer via
facsimile a copy of such item for review and approval by Customer. Once
InterCept identifies an item for review by Customer, InterCept shall not take
any action with respect to such item until written instructions are provided by
Customer, and InterCept shall process the item only in accordance with those
instructions.

InterCept will assist Customer in any reasonable manner to provide
information necessary for Customer to investigate any forged or irregular items
and seek to recover losses associated with such items.

Customer acknowledges that alleged forgers are trained in the field of
duplicating checks and signatures and that certain signatures may appear valid
due to the skill of the forger.  Customer
further acknowledges that InterCept does not guarantee the performance of the
signature verification services by its personnel.  Notwithstanding any other provision of this
Order or any other agreement between InterCept and Customer, InterCept shall
have no liability for any losses, claims, damages or liabilities suffered by
Customer or its customers arising out of the signature verification services,
whether due to irregular signatures, forgeries, alleged forgeries or
inaccuracies or mistakes by InterCept personnel.

 

 6

 

	
  

  	
  3150
  Holcomb Bridge Road

  Suite 200

  Atlanta, GA 30071

  Phone: (770) 248-9600

  Fax (770) 242-6803

  www.intercept.net

  

 

MASTER AGREEMENT FOR PROVISION OF HARDWARE,

SOFTWARE AND/OR SERVICES

	
  Name of Customer:

  Chino Commercial Bank

  	
  Phone Number:

  909-393-8880

  
	
   

  	
   

  
	
  Address:

  14345 Pipeline Ave

  	
  Fax Number:

  909-590-1079

  
	
   

  	
   

  
	
  City, State, Postal Code:

  Chino, CA 91710

  	
  After Hours Phone Number:

  909-261-8941

  
	
   

  	
   

  
	
  InterCept Contact Person:

  Jack Goold

  	
  Customer Contact Person:

  Dann Bowman

  
	
  InterCept Email Address:

  Jack.goold@intercept.net

  	
  Customer Email Address:

  dannhbowman@chinocommercialbank.com

  

 

The
InterCept Group (“InterCept”) provides certain hardware, software, and services
for financial institutions that Customer wishes to purchase or lease. In
consideration thereof, the Parties agree as follows:

InterCept
shall provide to Customer the hardware, software, and services set forth in
this Agreement and all Related Agreements. Related Agreements include purchase
orders, proposals, price lists, payment schedules, product and service
descriptions, and other agreements between the Parties executed on, before, or
after the Effective Date. Such Related Agreements are incorporated into and
made a part of this Agreement. The Parties acknowledge that this Agreement and
all Related Agreements are subject to the general terms and conditions attached
hereto. In the event that these general terms and conditions conflict with any
term or condition set forth in any Related Agreement, the term or condition
attached hereto shall control unless otherwise specified in writing by the
Parties.

Provision
of all products and services shall be governed by the applicable purchase
orders or leases. Products and services provided by third parties shall be
governed by the terms and conditions of the agreements provided by such third
parties.

This
Master Agreement is effective upon execution by both Parties (the “Effective
Date”).

Each
of InterCept and Customer has agreed to these terms and conditions as of the
date set forth below: 

	
  Customer:

  	
   

  	
  InterCept, Inc.:

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Dann H
  Bowman

  	
   

  	
   

  	
  By:

  	
  /s/ Todd Shiver

  	
   

  
	
   

  	
   

  	
   

  
	
  Dann H Bowman

  	
   

  	
   

  	
  Todd Shiver

  	
   

  
	
  Print Name

  	
   

  	
   

  	
  Print Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  President/ CEO

  	
   

  	
   

  	
  Vice President

  	
   

  
	
  Print Title

  	
   

  	
   

  	
  Print Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12/21/04

  	
   

  	
   

  	
  1/3/05

  	
   

  
	
  Date

  	
   

  	
   

  	
  Date

  	
   

  

 

NOTE: Each Party must also initial the arbitration provisions of the
General Terms and Conditions

 1
 

 

GENERAL
TERMS AND CONDITIONS

The following terms and
conditions are in addition to the terms and conditions of the Master Agreement
and all Related Agreements.

1.       Definitions. Capitalized terms used herein shall have the following meanings.

1.1.    “Acceptance” shall mean the occurrence of the conditions
set forth in Section 2.2.

1.2.    “Affiliate” means a company which owns or controls,
directly or indirectly, a majority of the stock or board of directors of a
Party to this Agreement, or a company whose stock or board of directors is
owned or controlled, directly or indirectly, by a Party to this Agreement.

1.3.    “Agreement” means the Master Agreement, these General
Terms and Conditions, and all attachments, all of which are incorporated
herein.

1.4.    “Changes” mean corrections, updates, upgrades,
translations, additions, and modifications to the Software and Documentation,
and any other new or additional works based in whole or part on the Software
and Documentation.

1.5.    “Confidential Information” means any competitively
sensitive or secret business, marketing, or technical information, technology,
business processes or procedures, and customer information of InterCept,  Customer, or either of their Affiliates,
including the terms of this Agreement and all other Agreements and
communications between InterCept and Customer. InterCept’s Confidential Information
shall include, but is not limited to, all software, hardware, and documentation
provided or licensed to Customer hereunder, used to provide services to
Customer hereunder, or to which Customer has access as a result of its
relationship with InterCept. Customer’s Confidential Information shall include,
but is not limited to, all information concerning Customer’s customers and
their accounts, and Customer’s proprietary business practices and procedures. Confidential
Information shall not include information which is (i) generally known to
the public or readily ascertainable from public sources (other than as a result
of a breach of confidentiality hereunder), (ii) independently developed by the receiving Party without
reference to or reliance on any Confidential Information of the disclosing
Party, as demonstrated by written records of the receiving Party, or (iii) obtained
from an independent third party who created or acquired such information
without reference to or reliance on Confidential Information or breach of
obligations of confidentiality.

1.6.    “Documentation” means the user and operating documentation
relating to the Software as provided by InterCept to Customer or to InterCept’s
customers generally.

1.7.    “Hardware” means all computer, communications, network,
and other hardware equipment which customer has agreed to purchase or lease
under any Related Agreement.

1.8.    “InterCept” shall mean The InterCept Group, Inc.

1.9.    “Licensed Products” mean collectively the Software and
Documentation.

1.10.  “Parties” shall mean the Customer and collectively The
InterCept Group, Inc. and all wholly owned subsidiaries.

1.11.  “Related Agreements” mean all purchase orders, proposals,
price lists, payment schedules, product and service descriptions, and all other
agreements between the parties executed on, before, or after the Effective Date
in which the parties specifically adopt the terms and conditions of this
Agreement.

1.12.  “Related Expenses” shall mean reasonable travel, living,
hardware, communications, and other out-of-pocket expenses incurred by
InterCept in the performance of its obligations hereunder, including, but not
limited to, airfare, travel costs, lodging costs, and meals; shipping charges,
courier and delivery charges; tape, cartridge, CD and diskette cost; courier
charges; and voice and data telecommunications expenses, and the cost of all
other hardware and software which Customer requests from InterCept, provided
that such hardware and software costs are approved by Customer prior to their expenditure.
To the extent reasonably possible, InterCept will obtain the approval of
Customer prior to incurring substantial Related Expenses, and Customer will not
unreasonably withhold such approval.

1.13.  “Software” means the object code version of the InterCept
software as identified in any Related Agreement, along with all Changes
provided to Customer or authorized by InterCept hereunder.

1.14.  “Third Party Software” means any third party software
required to be used in conjunction with the Software provided to Customer by
InterCept.

2.       Provision of Products and Services

2.1.    Products and Services. InterCept agrees to provide
Customer with the Hardware, Software, account processing services, and/or
related products and services described in this Agreement or any Related
Agreement. All products and services shall be provided pursuant to the terms
and conditions applicable to such products and services as set forth in this
Agreement or any Related Agreement.

2.2.    Acceptance. After Customer has received the Hardware,
Software, data processing services, and/or related products and services
described in this Agreement or any Related Agreement, Customer shall conduct
such further inspection and testing as it deems necessary or appropriate  to determine whether any defect exists. Customer
shall notify InterCept in writing of any defect within 30 days of receipt of
the initial invoice from InterCept. Failure to give 

 2
 

 

such notice shall constitute an
unqualified acceptance of the product or service.

2.3.    Training. InterCept shall provide the training services
for Customer described in any Related Agreement, for the fees set forth therein.
Training shall take place at InterCept’s or Customer’s premises as specified in
such Related Agreement. Customer shall provide adequate personnel for training.
Customer may obtain additional training with reasonable notice to InterCept at
InterCept’s then current rates for such services.

2.4.    Customer Contacts. Each of Customer and InterCept shall
maintain a contact person to act as the primary point of communication. Each
Party’s initial contact person is listed on the Master Agreement. Each Party
may change its contact person with written notice to the other Party.

2.5.    Regulatory Requirements. Unless otherwise specified in any
Related Agreement:

(a)   Federal and State
Requirements. InterCept shall use all reasonable efforts to ensure that the
products and services provided hereunder comply with and allow Customer to
comply with existing federal and state rules and regulations applicable to
financial institutions. Customer shall notify InterCept in the event that
Customer discovers or is notified that any product or service provided by
InterCept does not meet or allow Customer to meet such requirements, and
InterCept shall use its best efforts to bring such products or services into
compliance within a reasonable time thereafter. Federal and state rules affecting
financial institutions are subject to change and InterCept shall use all
reasonable efforts to ensure that the products and services provided hereunder
comply with and allow Customer to comply with such future changes. InterCept
reserves the right to adjust its prices to the extent any future changes to
federal and state rules and regulations increase the cost of the products
and services provided hereunder.

(b)   InterCept. InterCept agrees to comply
with all rules, laws, and regulations which directly govern InterCept or its
operations due to its status as a provider of products or services to financial
institutions.

(c)   Access to InterCept and Customer’s Data.
InterCept shall provide access to its equipment and facilities and Customer’s
data as reasonably requested or required by Customer, Customer’s internal or
third party auditors, or any state, federal, or local regulatory agency with
regulatory authority over Customer or InterCept. Customer will provide
InterCept with reasonable prior notice of such audits, will cause its auditors
and staff to conduct such audits in a manner designed to minimize the
disruption to InterCept’s operations, and will ensure that any such third
parties provided with access hereunder will comply with Customer’s obligations
of confidentiality hereunder. 

2.6.    Changes to Services. InterCept reserves the right
to make changes to services including, but not limited to, operating
procedures, security procedures, the type of equipment resident at, and the
location of InterCept’s facilities, including all changes necessitated by any
change in any law, rule, regulation, or requirement of any regulatory agency,
provided that InterCept shall use its best efforts not to delete services or
make changes which would cause a material increase in Customer’s cost of doing
business without Customer’s prior approval. InterCept will provide Customer
with reasonable prior written notice of changes which will materially affect
Customer’s procedures.

3.       Payment and Terms.

3.1.    Fees. Customer agrees to pay all fees and charges for
products and services to be provided under this Agreement as set forth in the
Related Agreements. All amounts shall be paid in U.S. dollars by wire transfer
to the bank account designated by InterCept in accordance with the payment
terms set forth in the Related Agreements, or as otherwise agreed between
InterCept and Customer. Additionally, Customer shall pay all Related Expenses.

3.2.    Payment Terms. All amounts are due and payable on the date
specified in the Related Agreements, or, if a date is not specified, not later
than 30 days following the date of invoice. Overdue amounts shall accrue
interest at the lesser of 11⁄2% per month or the highest rate allowed under
applicable law. The Customer further agrees to pay all costs of collection,
including reasonable attorneys’ fees. Time is of the essence with respect to
all payments due from Customer hereunder.

3.3.    Taxes. Customer shall pay on a timely basis all sales,
use, import, export, VAT, excise and other taxes, tariffs, and duties arising
out of or imposed on InterCept or Customer as a result of the provision of
products and/or services by InterCept hereunder, however designated, based or
levied by any federal, state, municipal, or local taxing authority of United
States (but shall not include Federal, state, or local income taxes imposed on
InterCept). Customer shall promptly reimburse and shall indemnify InterCept for
all such taxes which InterCept is required by any taxing authority to pay.

3.4.    Fee Adjustments. InterCept reserves the right to adjust
its prices once per year subject to 30 days advanced written notice. InterCept
shall not increase in any calendar year the fees and charges by more than the
percentage increase in the U.S. Department of Labor, Consumer Price
Index for Urban Wage Earners and Clerical Workers, All Cities, (1982=100) for
the previous 12 months. InterCept shall not increase Customer’s fees or charges
by a greater percentage than it increases its customers’ fees in general for
the same or similar products or services.

 3
 

 

4.       Default and Termination

4.1.    Term. Unless earlier terminated as provided for herein,
the term of this Agreement shall commence on the Effective Date and shall
continue for so long as any Related Agreement between the Parties that
specifically adopts the terms and conditions of this Agreement remains in
effect.

4.2.    Termination by Customer.

(a)   Customer may terminate any
Related Agreement upon 30 days written notice accompanied by payment for all
previously invoiced and overdue amounts. If applicable, Customer shall pay the
cancellation fee set forth in such Related Agreement.

(b)   Customer may terminate this
Agreement and the applicable Related Agreement upon the occurrence of any of
the following:  (i) InterCept’s
material breach of any provision of this Agreement or the applicable Related
Agreement if InterCept has not cured or initiated adequate steps to cure such
breach or failure within 30 days following written notice of such breach or
failure to InterCept; or (ii) InterCept ceases to do business,
makes a composition or assignment for the benefit of creditors, becomes
bankrupt or insolvent, or is found subject to any provisions of the bankruptcy
code concerning involuntary bankruptcy or similar proceeding. If any breach or failure materially affects
Customer’s ability to conduct its operations in accordance with safe and sound
banking practices or materially affects Customer’s ability to service its
customers, then such notice period shall be shortened to 10 business days. Termination
may be immediate or at a future date to allow for a conversion to an alternate
product or service provider. In no event shall InterCept be responsible for
Customer’s costs associated with identification, selection, engagement, or
implementation of a replacement vendor.

4.3.    Termination by InterCept. Unless otherwise specified in
any Related Agreement, InterCept may terminate this Agreement and the
applicable Related Agreement upon the occurrence of any of the following:  (i) Customer’s material breach of any
provision of this Agreement or the applicable Related Agreement if Customer has
not cured or initiated adequate steps to cure such breach or failure within 30
days following written notice of such breach or failure to Customer; (ii) Customer
fails to pay any fee or charge when due; or (iii) Customer ceases
to do business, makes a composition or assignment for the benefit of creditors,
becomes bankrupt or insolvent, or is found subject to any provisions of the
bankruptcy code concerning involuntary bankruptcy or similar proceeding. In the event of termination, all fees and amounts
due with respect to such product or service shall accelerate and become due and
payable immediately.

4.4.    Return of Materials. Upon any termination of this
Agreement and completion of all conversion and other continuing activities,
each Party shall promptly return to the other or destroy all copies of all
materials relating to such products or services or containing any Confidential
Information of the other Party, including all copies of all data, software, and
documentation.

4.5.    Survival. All rights and obligations under this Agreement
and any Related Agreement with respect to restrictions on the use of products
and services, protection of intellectual property rights, payment of fees,
confidentiality, and indemnification shall survive the expiration or
termination of this Agreement and any Related Agreement.

5.       Customer Obligations

5.1.    Hardware and Software. Customer agrees to obtain, install,
operate, and maintain the hardware, software, and general operating environment
required for the proper use and operation of the products and services to be
provided by InterCept hereunder (excluding that which is to be provided by
InterCept hereunder), including, but not limited to, all hardware, software,
and networks; telecommunications lines, equipment, and service; power lines,
outlets, sources and conditioners; UPS equipment; and environmental
conditioning equipment (the “Operating Environment”). InterCept shall be
responsible for components of the Operating Environment which InterCept has
been contracted to provide. The Operating Environment shall comply with specifications
provided by InterCept, and must be certified by InterCept as meeting such
specifications prior to implementation by InterCept of any products or services
which rely on such Operating Environment. InterCept shall provide Customer with
all requirements for the Operating Environment prior to or within a reasonable
time following the execution of this Agreement. Customer shall in the future
acquire all such additional hardware, software, and equipment as may be
necessary to support additional products or services ordered from InterCept, as
reasonably required to support any increase in Customer’s size or transaction
volume, as necessary to keep its technology reasonably current and competitive,
or as required to support any upgrade to any InterCept product or service which
Customer desires to implement.

5.2.    Support. Customer shall provide InterCept with all data,
documents, reports, access to personnel, and other assistance as may be
reasonably required or necessary for InterCept to provide the products and
services to be provided hereunder. InterCept will provide prompt notice of all
such requirements and Customer shall not unreasonably withhold or delay such
items or assistance.

5.3.    Personnel. Following completion of training to be provided
by InterCept under any Related Agreement, Customer shall provide and train all
personnel reasonably required for the proper use and operation of the products
and services provided by InterCept hereunder.

5.4.    Data Protection. Customer shall establish proper procedures to
verify the correctness and integrity of the data 

 4
 

 

stored or produced by InterCept’s
products or services. Customer shall own and retain all right, title, and
interest in and to all Customer account and transaction data provided by
Customer to InterCept. Unless otherwise agreed, Customer shall be responsible
for all data and proper backup thereof.

5.5.    Final Regulatory
Approval for De Novo Banks. The obligations of Customer under the Master
Agreement and all Related Agreements are subject to Customer receiving its
final regulatory approvals required for Customer to commence operations. If
Customer fails to receive such approvals for any reason, Customer may terminate
this Order and receive a refund of all fees paid to InterCept hereunder. Notwithstanding
the foregoing, Customer shall be responsible for paying InterCept for all costs
and expenses incurred by InterCept in the performance of its obligations
hereunder through such date, including all fees for implementation and other
services provided through such date, and all fees for hardware and software
purchased by InterCept on Customer’s behalf. If InterCept can sell or use such
equipment elsewhere, Customer shall receive a refund equal to 50% of the cost
of such equipment.

6.       Terms and Conditions
Applicable to Hardware

6.1.    Shipping and Delays. Unless otherwise specified in any
Related Agreement, all Hardware is delivered F.O.B. from InterCept’s offices,
or from the manufacturer, as applicable, subject to the allocation of risk set
forth below. Customer is responsible for all shipping, freight, handling, and
other costs associated with delivering the Hardware to Customer’s premises. The
means of shipment of the Hardware shall be in InterCept’s discretion and
shipment may be made in installments unless otherwise mutually agreed in
writing prior to shipment. The delivery dates quoted by InterCept are estimates
only and subject to availability and delivery from the respective manufacturers
of the Hardware. InterCept shall not be responsible for any delay attributable
to any manufacturer or other third party.

6.2.    Title, Risk of Loss, and Insurance.

(a)   Title and Risk. Risk
of loss to the Hardware shall pass to Customer upon shipment. Title to the
Hardware shall remain with InterCept until Customer has paid the full purchase
price for the Hardware.

(b)   Insurance. Until
Hardware is fully paid for, Customer, at its sole cost and expense, shall
acquire and maintain adequate insurance to cover the unpaid portion of the
purchase price. Coverage should include, but not be limited to, fire, extended
coverage, vandalism, malicious mischief, and other coverage. In the event of
any loss, damage, or destruction to the Hardware while any portion of the
purchase price remains unpaid, Customer shall pay the remaining unpaid portion
of the purchase price from the insurance proceeds.

6.3.    Transfer of Goods. Until Customer has made full payment to
InterCept for the Hardware, Customer will not sell, exchange, lease, encumber,
or pledge the Hardware, grant or permit the creation or attachment of any other
security interest therein or lien thereon, or otherwise dispose of the Hardware
or any of Customer’s rights therein without InterCept’s prior written consent.
During such period, Customer shall use reasonable efforts to prevent the
Hardware from being levied upon under any legal process, or to prevent anything
to be done that would materially impair the value of any of the Hardware. Until
Customer has paid for the Hardware in full, Customer grants InterCept a
purchase money security interest in the Hardware. Customer agrees to execute
and deliver any financing statement or other document as InterCept may request
to attach or perfect such security interest, including financing statements and
UCCs.

6.4.    Price Protection. InterCept guarantees the purchase price of the
Hardware as set forth on any Related Agreement up to and including the
installation date. If Customer has not accepted the Hardware on or prior to the
date of installation through no fault of InterCept, InterCept may change such
price as appropriate to reflect any increase in the cost of the Hardware that
InterCept must pay.

6.5.    Hardware Substitution. Customer agrees that because of the rapid
evolution and technological advances in the industry, any order is subject to
change based on such advances or discontinuances from the manufacturer.
Customer acknowledges that InterCept may provide substitute Hardware which in
InterCept’s opinion is of equivalent or better quality than the Hardware
originally ordered by Customer.

6.6.    Use and of Hardware. Hardware which is leased shall only be
used by qualified employees of the Customer in the ordinary and normal course
of the Customer’s business. Customer at all times shall use the Hardware in a
careful and proper manner in conformity with the manufacturer’s specifications
and documentation, and shall comply with and conform to all applicable federal,
state, local, and other laws, ordinances and regulations and all conditions of
all insurance required hereby which relate in any way to the possession, use,
or maintenance of the Hardware. Except to the extent InterCept has agreed to
provide Hardware maintenance under any Related Agreement, Customer shall at its
own cost and expense, maintain and keep the leased Hardware in good repair,
condition, and working order as to the appearance and mechanical performance. InterCept
shall have the right but not the obligation to inspect the Hardware during
Customer’s normal business hours. Customer shall notify InterCept in writing
prior to moving or relocating the Hardware to any other address or facility
other than Customer’s primary business address.

6.7.    Alterations
to Leased Hardware. Customer shall not make or provide any improvements,
alterations, 

 5
 

 

modifications, or additions to the leased Hardware
without InterCept’s prior written consent.

6.8.    Characterization
of Leased Hardware. The leased Hardware is and at all times shall remain
personal property. If requested by InterCept, Customer shall obtain, prior to
delivery of the Hardware, a certificate in form satisfactory to InterCept from
each party having an interest in the real property where the Hardware may be
located, waiving any claim with respect to the Hardware. If at any time during
the term hereof InterCept supplies Customer with labels, plates, or other
markings stating that Hardware is owned by InterCept or is subject to any
interest of any other person, Customer shall affix such markings to, and keep
such markings prominently displayed on, the Hardware.

6.9.    Title
to Leased Hardware. The leased Hardware is and shall remain the sole and
exclusive property of InterCept. Customer shall execute and deliver all
financing statements provide by InterCept for filing of notice of such title,
including UCC statements.

6.10.  Return of Leased Hardware. Upon expiration or other
termination of any lease with respect to any Leased Hardware for any reason,
Customer shall immediately return the Hardware at its own cost and expense,
freight prepaid, to such location as InterCept shall specify. Upon such return,
the Hardware shall be in good order and condition, ordinary wear and tear
excepted, shall be certified for manufacturers’ maintenance, and shall be free
and clear of all liens and encumbrances.

6.11.  Insurance for Leased Hardware. Unless otherwise
specified in any Related Agreement, at Customer’s cost and expense, Customer
shall obtain and maintain in full force and effect throughout the term of any
Related Agreement (including any extensions or renewals thereof) insurance on
the leased Hardware in the amount of the full replacement value of the leased
Hardware, and shall name Customer and InterCept as named insureds, as their
interests may appear. Customer agrees to cooperate in the adjustment and
settlement of any claim so as to secure to InterCept the benefit of such
insurance coverage and further agrees to provide the amount of the deductible
from its funds. In addition, Customer shall obtain and maintain at its expense
throughout the term of any Related Agreement (including any extensions or
renewals thereof) liability insurance covering the risks and liabilities
associated with the operation, use, and ownership of the leased Hardware, and
naming InterCept as an additional named insured. Customer shall furnish
InterCept with policies and/or certificates evidencing the foregoing insurance
coverages, and such policies and/or certificates shall provide for at least 30
days prior written notice to InterCept of any cancellation, reduction, or lapse
in coverage.

6.12.  Hardware Maintenance. Subject to the payment by
Customer of the fees for hardware maintenance set forth in any Related
Agreement, InterCept agrees to provide Customer with maintenance services for
the Hardware as follows:

(a)   Telephone Support.
InterCept will provide remote telephonic support for the Hardware during the
hours set forth in InterCept’s then current policies and procedures for the
applicable Hardware. Telephone support shall include its best efforts (i) to
diagnose errors or malfunctions in the Hardware and malfunctions caused by
operator error, (ii) advise Customer of corrective measures, and (iii) clarify
operating instructions.

(b)   Depot Maintenance.
For Hardware supported by depot maintenance, if the problem cannot be resolved
through telephonic support, InterCept shall ship loaner replacement Hardware
Monday through Friday (except on days that InterCept’s office is closed) for
next business day delivery, and Customer shall pack and deliver the defective
Hardware to InterCept for repair. InterCept shall either repair the Hardware or
replace it with equivalent Hardware at InterCept’s discretion. Unless otherwise
specified in any Related Agreement, InterCept will pay all freight charges for
the delivery of Hardware and Customer will pay all freight charges for the
return of Hardware.

(c)   Onsite Maintenance.
If specified on any Related Agreement, InterCept shall provide on-site
maintenance for the applicable Hardware during the hours as indicated on such
Related Agreement.

(d)   Modifications. Maintenance
services do not include modifications, additional features, or accessories
purchased by Customer unless specifically added to the list of covered Hardware
in writing. InterCept may increase the maintenance fee to cover such
modifications, additional features, or accessories with 30 days prior written
notice.

(e)   Hardware Not
Support by InterCept. InterCept is not responsible for Hardware supported
by any third party or for any Hardware which InterCept has not expressly agreed
to support or for which Customer has not paid the applicable maintenance fees.

(f)    Customer
Obligations. Customer shall promptly
notify InterCept of all problems with the Hardware, and shall, if applicable,
provide assistance in identifying and detecting problems, errors, and
malfunctions. Customer agrees not to attempt any repair or maintenance
of the Hardware during the term of this Agreement without the prior written
consent of InterCept.

7.              Terms
and Conditions Applicable to Software

7.1.    License Grant. Subject to the restrictions and limitations
of this Agreement and to payment of the fees set forth in any Related
Agreement, InterCept hereby grants to 

 6
 

 

Customer a non-exclusive,
non-transferable right and license during the term of this Agreement to:

(a)   install and use the Software
in accordance with the terms of any Related Agreement;

(b)   transfer the Software to a
backup machine when the primary machine on which the Software is installed or
licensed for use is temporarily inoperable or unusable, or to another machine
for disaster recovery testing (which may occur concurrent with normal use of
the Software), or for disaster testing, recovery, and processing;

(c)   make no more than 2 copies of
the Software for testing, backup, and archival purposes in addition to the
number of copies authorized by licenses granted;

(d)   use the Documentation in
support of Customer’s authorized use of the Software;

(e)   make a reasonable number of
additional copies of the Licensed Products or portions thereof as required to
support Customer’s authorized or licensed use of the Software.

7.2.    Restrictions. Unless otherwise expressly agreed, all
licenses are for the object code version of the applicable Software only. The
Software may only be used for Customer’s own internal data processing needs and
for processing the data of its customers. Customer may not, without the prior
written consent of InterCept:

(a)   translate, reverse engineer,
de-compile, interpret, or disassemble the Software;

(b)   transfer, distribute, sell,
lease, or assign the Licensed Products;

(c)   use the Licensed Products to
process accounts or records, or to generate output data, for the direct benefit
of, or for purposes of rendering services to, any business entity or
organization other than Customer, provided Customer shall not be prevented from
processing its customer’s accounts; or

(d)   make any Changes to the Software.

7.3.    Affiliates. Customer may not provide or use the Software for
the benefit of Affiliates unless each such Affiliate has agreed to be bound by
the terms and conditions of this Agreement and Customer has obtained and paid
the necessary licenses and paid the appropriate license fees for such
Affiliate.

7.4.    Use of
Software. Customer agrees to comply with any operating instructions for all
Software in accordance with its Documentation.

7.5.    Scope of
Software Maintenance. Unless otherwise specified in any Related Agreement,
InterCept shall provide the following maintenance and support services for the
Software:

(a)   Error Correction. InterCept shall
insure that the Software operates in conformance with the specifications and
program descriptions set forth in the associated Documentation. InterCept
agrees, as its exclusive obligation hereunder, to use reasonable commercial
efforts to correct reported defects in a timely manner based on the severity of
the error and its effect on Customer’s business or operations. Minor errors
which do not materially affect Customer’s business or operations or cause
unreasonable disruption to Customer may be addressed in the next release of the
Software. For some errors, InterCept may provide Customer with a reasonable
procedure or “work around” to avoid the effects of the error until it can be
addressed in the next release of the Software, provided that such procedure is
not unreasonably burdensome on Customer or its employees.

(b)   Telephone Support. InterCept will
provide remote telephonic support for the Software during regular business
hours excluding banking holidays. Telephone support shall include (i) diagnosing
errors in the Software and malfunctions caused by operator error, (ii) advising
Customer of corrective measures, and (iii) clarifying operating
instructions contained in the Documentation.

(c)   New Releases. InterCept shall provide
Customer with all new releases, versions, error corrections, patches, and fixes
for the Software which InterCept provides to its customers who have contracted
for maintenance services for such Software generally. InterCept shall provide
reasonable telephone assistance to help Customer install and operate each
release. InterCept reserves the right to charge additional fees to all
maintenance customers for any new or additional product, or for new or
additional versions of the Software which introduce significant new
functionality or changes in the technology used, provided, or relied on.

(d)   Prior Releases. InterCept shall only
provide maintenance and support services hereunder for the then current release
of the Software and for the previous release of the Software for three months
following the provision of the newest release to Customer. Thereafter,
InterCept may in its sole discretion agree to provide support for older
releases, but reserves the right to charge Customer at its time and materials
rates for such support.

7.6.    Customer
Cooperation. Customer shall promptly notify InterCept of all problems with
the Software, and shall, if applicable, provide assistance in identifying and
detecting problems, errors, and malfunctions. As requested by InterCept,
Customer shall provide data and information regarding all errors with
sufficient detail and supporting documentation to enable InterCept to diagnose,
and if necessary, recreate the problem, error, or malfunction. If applicable,
Customer agrees to maintain dial in access to the Software for remote access
and 

 7
 

 

diagnosis purposes. InterCept agrees not to use such
dial in line for any other reason without Customer’s consent.

7.7.    Limitations.
Software maintenance shall not cover malfunctions and errors caused by (i) unreported
defects, (ii) misuse or abuse of the Software, (iii) Customer’s
failure to backup the system, (iv) use of the Software with hardware or
software other than that approved by InterCept for use with the Software, or (v) Changes
made by Customer which are not provided to InterCept or which are not developed
in consultation with InterCept and which are not compatible with subsequent
Releases of the Software. Maintenance does not include on-site service or the
installation of any Software or Hardware. If Customer requests on-site
assistance, InterCept may provide such support and bill Customer at then
current time and materials rates for such services.

7.8.    Delivery.
The licenses granted to Customer under Section 7.1 shall become
immediately effective upon the delivery of the Software, and shall not be
delayed or contingent based on installation, operation, or the delivery or
completion of any services.

7.9.    Records.
Customer agrees to maintain a record of the number and location of all copies
of the Licensed Products in its possession. Customer shall provide InterCept
with a copy of such record upon InterCept’s written request. Following prior
written notice, InterCept or its designee shall have the right to enter
Customer’s premises during regular business hours in a non-disruptive manner
for the purpose of inspecting the location and use of the Licensed Products,
the compliance of Customer with the provisions of this Agreement, and the
standard procedures of Customer regarding retention, safekeeping, and disposal
of all media and materials pertaining thereto.

8.       Warranties

8.1.    Service Warranty. InterCept shall perform all services
which it agrees to perform pursuant to this Agreement and any Related Agreement
in a workmanlike manner consistent with industry standards. If InterCept
breaches such warranty, its sole obligation shall be to re-perform the services
in question promptly and properly.

8.2.    Year 2000 Warranty. InterCept has tested all of its
products and services to verify compliance with year 2000 standards in
accordance with the FFIEC Year 2000 Management Awareness publication dated May 5,
1997. InterCept warrants that all products and services provided by InterCept
hereunder, including all software but not including third party hardware or
software, shall operate in accordance with this Agreement and all warranties provided
hereunder on dates occurring on and after January 1, 2000, and on all
other critical dates identified by Customer’s primary regulatory agencies, to
the same extent that it operates prior to such date and without errors caused
by such dates. InterCept is not responsible for any errors caused by improperly
formatted or corrupted data received from or generated by Customer or any third
party or any third party product interfaced to InterCept’s products or
services.

8.3.    Hardware. Customer
acknowledges that any Hardware sold or leased hereunder is produced by
independent manufacturers. InterCept shall not be responsible for design or
manufacturing defects, which shall be the sole responsibility of the
manufacturer. If available, Hardware warranties will be those provided directly
by the original manufacturer. InterCept’s liability to the Customer resulting
from the performance of maintenance services is strictly limited to the return
of Hardware to good operating condition and the repair of damaged or defective
parts. Notwithstanding the foregoing, or section 6 above, InterCept shall not
be responsible for repair, replacement, or
maintenance of Hardware due to damage caused by fire, water, lightening, power
surge, other casualty, Acts of God, customer negligence, abuse, or neglect, or
the act or omission of any third party. The manufacturers of the
Hardware have represented to InterCept that the Hardware is Year 2000 compliant.
However, InterCept makes no representation or warranty whatsoever as to such
compliance.

8.4.    Software. InterCept warrants for 90 days following
implementation, that the Software shall conform in all material respects with
any program descriptions included in the associated Documentation and any
written marketing materials provided by InterCept to Customer relating to such
Software, and that the Software will operate on and in conjunction with the
hardware provided by or specified by InterCept for use with such Software. InterCept
does not warrant that the Software will operate without interruption or be
error-free. In the event Customer discovers any non-conformance by the Software
with the above warranty (a “defect”), Customer agrees to provide InterCept
notice of such defect, and shall, upon InterCept’s request, provide such data
and information regarding the defect as InterCept may require to recreate the
defect. InterCept agrees, as its exclusive obligation for any breach of such
warranty, to use its best efforts to correct reported defects. InterCept shall
not be responsible for (i) unreported defects, (ii) defects caused by
misuse or abuse of the Software, (iii) defects caused by use of the
Software with hardware or software other than that approved by InterCept for
use with the Software, or for (iv) Changes made other than by or with the
express written authority of InterCept. Customer shall be limited to the
warranties provided by third-party licensors or manufacturers with respect to
third-party software or equipment that may be provided by InterCept. Following
the 90 day warranty, Customer’s recourse for failure and malfunctions of the
Software shall be limited to the services and remedies provided under any
software maintenance agreement then in effect.

8.5.    DISCLAIMER. EXCEPT AS PROVIDED IN
THIS AGREEMENT AND ANY RELATED AGREEMENTS, INTERCEPT SPECIFICALLY 

 8
 

 

DISCLAIMS
ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING,
BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

8.6.    LIMITATION OF LIABILITY. IN NO EVENT SHALL INTERCEPT BE LIABLE FOR ANY
SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE USE,
OR INABILITY TO USE, ANY PRODUCTS PROVIDED OR LICENSED TO CUSTOMER HEREUNDER,
FOR ANY FAILURE TO PROVIDE SERVICES, FOR ANY ERROR IN THE PROVISION OF PRODUCTS
OR SERVICES TO CUSTOMER UNDER THIS AGREEMENT, OR ARISING OUT OF ANY OTHER
CIRCUMSTANCES ASSOCIATED WITH THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING
WITHOUT LIMITATION DAMAGES BASED ON LOSS OF PROFIT, LOSS OR INTERRUPTION OF
DATA OR COMPUTER TIME, OR ALTERATION OR ERRONEOUS TRANSMISSION OF DATA, EVEN IF
INTERCEPT IS ADVISED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.

8.7.    LIABILITY CAP. INTERCEPT’S TOTAL
LIABILITY TO CUSTOMER UNDER ANY PROVISION OF THIS AGREEMENT OR ANY RELATED
AGREEMENT (WHETHER BASED ON TORT, CONTRACT, OR ANY OTHER THEORY), OTHER THAN
CLAIMS BASED UPON THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF INTERCEPT,
SHALL BE LIMITED TO THE AMOUNT ACTUALLY PAID BY CUSTOMER FOR THE PRODUCT OR
SERVICE GIVING RISE TO THE LIABILITY. WITH RESPECT TO PRODUCTS AND SERVICES FOR
WHICH CUSTOMER PAYS MONTHLY OR PERIODICALLY, INTERCEPT’S LIABILITY SHALL BE
LIMITED TO THE AMOUNT PAID BY CUSTOMER FOR SUCH PRODUCTS OR SERVICES IN THE 12
MONTH PERIOD IMMEDIATELY PRECEDING THE FACT OR CIRCUMSTANCE GIVING RISE TO SUCH
LIABILITY. ALL DAMAGES SHALL BE REDUCED BY ANY AMOUNT RECEIVED BY CUSTOMER
UNDER ANY INSURANCE POLICY COVERING THE EVENT GIVING RISE TO THE LIABILITY. THE
PARTIES ACKNOWLEDGE THAT EACH OF THEM RELIED UPON THE INCLUSION OF THIS
LIMITATION IN CONSIDERATION OF ENTERING INTO THIS AGREEMENT.

8.8.    Third
Party Products and Services. Unless otherwise expressly agreed, InterCept
shall not be responsible for, does not warrant, and no warranties made
hereunder or under any Related Agreement shall apply to, any product or
service, including but not limited to hardware, software, or equipment,
manufactured or provided by any third party. The provision of all such third
party products and services shall be subject to the terms and conditions
provided by such third party to Customer, if any. Except as otherwise expressly
agreed with Customer, InterCept shall not under any circumstances be
responsible for any products or services provided by any third party, including
but not limited to transmission or communication errors, use or failure of
hardware or equipment, use or failure of software, failure of delivery or
courier services, or for any act, error, omission, or circumstance beyond
InterCept’s reasonable control.

9.       Confidentiality.
Each Party agrees at all times to maintain the complete confidentiality of the
Confidential Information of the other. Neither Party shall permit or authorize
access to, or disclosure of, the Confidential Information of the other to any
person or entity other than its employees or advisors who have a “need to know”
such information in order to enable such Party to exercise its rights or
perform its obligations under this Agreement. Neither Party shall disclose or
supply the Confidential Information of the other to any non-employee third
party without the prior written approval of the other Party, which approval
shall not be unreasonably withheld, provided the requesting Party can
demonstrate a need for such disclosure in order to comply with its obligations
hereunder. Notwithstanding the foregoing, each Party may provide Confidential
Information of the other to its Affiliates, contractors, and third party
service or product suppliers to the extent reasonably necessary to provide or
take advantage of the services to be provided to Customer hereunder, provided
that such third party is advised of the disclosing Party’s obligations of
confidentiality hereunder, and the disclosing Party agrees that it shall remain
primarily responsible for any misuse of such Confidential Information by such
third party. Either Party may disclose portions of the Confidential Information
of the other to the extent such disclosure is required by any rule, law,
regulation, court, court order, or government or quasi-government agency,
provided the Party required to make such disclosure notifies the other Party of
the applicable legal requirements before such disclosure occurs and assists the
other Party to obtain such protection as may be available to preserve the
confidentiality of such information.

9.1.    For the purposes of this
Agreement, and in accordance with the privacy and security requirements of the
Gramm-Leach-Bliley Act, 15 U.S.C. § 6801 et seq. and corresponding regulations,
when and as effective (the “GLB Act”), nonpublic personal information of the
customers of Customer shall be treated as Confidential Information, shall be
protected as provided in the GLB Act, and shall not be disclosed except
pursuant to the consent or direction of such customers or as otherwise
permitted by the GLB Act. Customer shall be responsible for establishing and
providing to its customers in accordance with the GLB Act a statement of
Customer’s policies and practices with respect to the disclosure and protection
of such nonpublic personal information.

10.    Title. All
user manuals, Documentation, and Software products supplied by InterCept and
not identified as third party works are (i) copyrighted works protected by
copyright laws, treaties, and conventions of the United States and (ii) contain
trade secrets and Confidential Information of InterCept protected under
applicable law of the United States. InterCept retains all right, title, and
interest in and to all such products, and all copyright, trade 

 9
 

 

secret, patent, and other
intellectual property rights contained therein, subject only to the limited
license granted to Customer in this Agreement or any Related Agreement. InterCept
shall also exclusively own all changes, modifications, and additions to all
such products, whether made by or on behalf of InterCept, Customer, or their
employees, agents or otherwise. To the extent that Changes, including all
associated intellectual property rights, are not owned in their entirety by
InterCept immediately upon their creation, Customer agrees to assign (and
hereby automatically assigns) all right, title, and interest therein to
InterCept, without any requirement of consideration or further documentation. Customer
agrees to take such further action and execute such further documentation as
InterCept may reasonably request to give effect to this Section.

11.    Patent and Copyright Indemnity

11.1.  Warranty. InterCept warrants that it owns or has all
necessary rights in all intellectual property necessary to grant Customer the
right to use any products or services provided by InterCept to Customer.

11.2.  Infringement Claims. If a third party claims that any
product or service provided by InterCept to Customer infringes upon any patent,
copyright, trade secret, or similar intellectual property right of any third
party, and such claim would impair Customer’s right to use such product or
service under this Agreement, InterCept shall (as long as Customer is not in
default under this Agreement or any other agreement with InterCept) defend
Customer against that claim at InterCept’s expense and pay all damages awarded
by a court in a final judgment, provided that Customer (i) promptly
notifies InterCept in writing of any such claim, (ii) allows InterCept to
control the defense and disposition of such claim, including any related
settlement negotiations, and (iii) cooperates with InterCept, at InterCept’s
expense, in the defense of such claim.

11.3.  Remedies. If such a claim is made or appears possible,
InterCept shall, at its option, either (i) secure for Customer the right
to continue to use the product or service in question, or (ii) modify or
replace the product or service Software so it is non-infringing, but continues
to provide the functionality which Customer contracted for. If InterCept cannot
do either of the foregoing after reasonable effort, InterCept may refund a
pro-rata portion of the fees paid for the infringing material.

11.4.  Exclusions. InterCept shall have no liability or obligation
hereunder to the extent that any infringement is caused by or attributable to
any modification, addition, or change to any product or service by anyone other
than InterCept, or the combination, operation, or use of any software or other
product or service with any hardware or software not approved in writing by
InterCept. THIS SECTION STATES INTERCEPT’S
ENTIRE OBLIGATION TO CUSTOMER WITH RESPECT TO MATTERS OF TITLE OR ANY CLAIM OF
INFRINGEMENT THEREOF.

12.    Dispute Resolution and Arbitration.

12.1.  Dispute Resolution. In the event of any claim, controversy, or
dispute between Customer and InterCept regarding this Agreement or any products
or services to be provided by InterCept hereunder, the parties agree to
negotiate in good faith toward resolution of the issue, and to escalate the
dispute to senior management personnel in the event that the dispute cannot be
resolved at the operational level. Disputes which cannot be resolved shall be
submitted to binding arbitration under the following section.

12.2.  Arbitration. If the parties cannot
resolve any claim, controversy, or dispute through good faith negotiation,  including any dispute regarding the validity,
construction, or enforcement of this Agreement, either Party may demand that
such matter be submitted to final and binding arbitration. The site of all
arbitration proceedings shall be Atlanta, Georgia, unless InterCept and
Customer agree in writing to another site. Issuance of an arbitration demand
shall suspend the effect of any default entailed by such claim, controversy, or
dispute and any judicial or administrative proceedings instituted in connection
therewith, for the duration of the arbitration proceedings. Arbitration shall
be governed by the commercial rules of the American Arbitration
Association (the “AAA”). Arbitration shall be conducted by one arbitrator who
shall be chosen by the AAA. The arbitrator or arbitrators shall determine
whether a default has occurred, and shall deliver a decision specifying such
remedy (including money damages) as shall (a) fully implement the intent
and purposes of this Agreement and any Related Agreement (b) indemnify and
hold harmless the non-breaching Party from all losses, costs, and expenses
(including costs of arbitration and reasonable attorneys’ fees) resulting from
the default. Termination or limitation of either Party’s rights in its
software, hardware, or Confidential Information, or any associated intellectual
property rights, may not be awarded under any circumstances. The right to
demand arbitration and to receive damages and obtain other available remedies
as provided hereunder shall be the exclusive remedy in the event an arbitration
demand is made, except that each Party shall be entitled to obtain equitable
relief, such as injunctive relief, from any court of competent jurisdiction in
order to protect its rights in its hardware, software, trade secrets,
documentation, Confidential Information, or any associated intellectual
property rights while such proceeding is pending or in support of any award
made pursuant to such arbitration. InterCept and Customer hereby consent to the
enforcement in the courts of the United States of any arbitral judgment or
award rendered pursuant to this Section.

Customer Initials: s/ DHB

InterCept initials: /s/
TS

13.    General

 10
 

 

13.1.  Good Faith. Each Party agrees to perform its obligations as
set forth in this Agreement in good faith and in a prompt and reasonable manner.
All objections and complaints shall be made in good faith, and the parties
agree to work together to resolve all issue and disputes within the framework
and according to the terms of this Agreement.

13.2.  Notice. All
notices, requests, and other communications required or permitted to be given
or delivered hereunder to either Party must be in writing, and shall be
personally delivered, sent by certified or registered mail, postage prepaid and
addressed, by overnight courier such as Fedex, by fax, or by email to such
Party at the address shown on the first page of this Agreement, or at such
other address as has been furnished by notice given in compliance with this
section. All notices, requests, and other communications shall be deemed to
have been given upon delivery as evidenced by return receipt, courier records,
or fax confirmation.

13.3.  Assignment. Neither Party may assign, transfer, or delegate
its rights or obligations hereunder without the other Party’s prior written
consent, except that this Agreement may be assigned without consent to any
successor in interest to all or substantially all of the business or assets of
the assigning Party.

13.4.  Waiver. The failure of either Party to enforce any term of this
Agreement shall not constitute a waiver of either Party’s right to enforce
every term of this Agreement.

13.5.  Enforcement. If either Party brings an action under this
Agreement (including appeal), the prevailing Party shall be entitled to recover
reasonable attorneys’ fees and costs.

13.6.  Indemnification. Subject to Section 8, InterCept and
Customer shall indemnify and hold harmless the other Party against all claims,
liabilities, losses, damages, and causes of action relating to (i) personal
injury or property damage arising out the intentional or negligent acts or
omissions of the Party in the course of performance under this Agreement or any
Related Agreement and (ii) the provision of intellectual property under
this Agreement or any Related Agreement.

13.7.  Severability. If any provision of this Agreement be held by
a court of competent jurisdiction or arbitration authority to be unenforceable,
the remaining provisions of this Agreement shall not be affected or impaired
thereby.

13.8.    Choice of Law. This Agreement shall be governed by the laws
of the State of Georgia without regard to its choice of law rules.

13.9.  Force Majeure. Neither Party shall be in default for failing
to perform under this Agreement (other than a failure to make payment when due
or to comply with restrictions upon the use of the products and services) if
such failure arises out of any act, event, or circumstance beyond the
reasonable control of such Party, whether or not predicted or foreseeable. The
Party so affected will resume performance as soon as reasonably possible.

13.10.  Headings and Captions. The headings and captions of this
Agreement are inserted only as a matter of convenience and in no way limit the
scope or affect the meaning of any section.

13.11.  Employees. Neither Party shall hire or solicit for hire or
engage as an independent contractor any employee of the other during the term
of and for one year after the termination of this Agreement, without the
express written consent of the other Party.

13.12.  Amendment; Conflict. This Agreement
constitutes the entire agreement between the Parties and may not be modified or
amended except in writing signed by both Parties. All Related Agreements are
incorporated into and made part of this Agreement and are subject to the
general terms and conditions herein. In the event that these general terms and
conditions conflict with any term or condition set forth in any Related
Agreement, the term or condition set forth herein shall control unless
otherwise specified by the Parties.

13.12.  Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and which when taken
together shall constitute one complete instrument.

 11NOTE:  The
Master Agreement referred to herein is included with Exhibit 10.6 to this
Registration Statement.

Exhibit 10.7

DATA PROCESSING SERVICES
ORDER

InterCept
agrees to provide Customer with the following Data Processing Services. The
following terms and conditions are in addition to the terms and conditions of
the Master Agreement and General Terms and Conditions attached thereto. The
Parties agree that this Order is incorporated into and made part of the Master
Agreement, and is subject to the General Terms and Conditions contained therein.
In the event that these terms and conditions conflict with any term or
condition set forth in the Master Agreement, the term or condition set forth in
the Master Agreement shall control unless otherwise specified in writing by the
Parties.

This
Data Processing Services Order is effective upon execution by both parties. The
term of this Order is sixty (60) months, which shall commence upon the date
indicated below (the “Term Commencement Date”):

o            Date
of live conversion

o            Date
of renewal of an existing Data Processing Services Order

x   Date specified by the Parties: Nov 1, 2004

The
term of this Order shall be extended automatically for additional sixty (60)
month terms unless, at least 180 days prior to such automatic extension, either
party shall deliver written notice upon the other of its intention that such
Processing Services shall not be so extended, in which case the Data Processing
Services shall continue through the remaining term but shall not be extended absent
written agreement by both Parties.

The
attached Data Processing Proposal contains a description of Fees and Services.

1.             Definitions.
Capitalized terms
shall have the following meanings. Capitalized terms used but not otherwise
defined herein shall have the meanings given to them in the General Terms and
Conditions.

1.1            “InterCept
System” means the hardware and InterCept software used by InterCept to
provide the Processing Services hereunder.

1.2           “Processing
Services” means the bank and account processing and other services to be
provided by InterCept hereunder and identified on the description of services
attachment.

2.             Services

2.1           Data
Processing. InterCept agrees to furnish to Customer and Customer agrees to
obtain from InterCept the Processing Services for the term set forth herein. Customer
may obtain additional products and services offered by InterCept at InterCept’s
then current prices for such services.

2.2           Data
Retention. InterCept shall retain data for 60 days following processing,
and may destroy all data thereafter, or as otherwise mandated by regulatory
guidelines and requirements.

2.3           Fees.
Customer agrees to pay the fees for the Processing Services as set forth
herein.

3.             Data
Conversion and Transmission

3.1           Data
Conversion. Prior to the date that services are to commence, InterCept
shall provide the programming and mapping required to convert Customer’s
account and other data into a format compatible with the InterCept System. Customer
agrees to cooperate with InterCept as reasonably necessary for InterCept to
complete the conversion process. Among other things, Customer shall deliver
conversion input information, in its entirety, in a mutually acceptable medium,
as and when the parties agree.

3.2           Data
Review. InterCept shall notify Customer upon the completion of data
conversion. Customer agrees to review and check the converted data within 10
days following such notice and provision of the data files to Customer. InterCept
reserves the right to postpone conversion of Customer’s information files if
Customer is late in delivering its conversion input information or if any other
circumstances arise that might jeopardize the successful completion of Customer’s
information conversion or the processing of the following days transactions for
any other customers of InterCept.

 

3.3           Data
Transmission. Customer shall provide all data for input to the InterCept
System for processing in a format and manner, and within the required time
frame, for proper overnight processing. Customer shall determine and be
responsible for the authenticity and accuracy of all information and data
submitted to InterCept, and for confirming the accuracy of data and reports
received from InterCept. Customer shall review all reports furnished by
InterCept within 5 days for accuracy, shall notify InterCept of all
discrepancies or out of balance reports, and work with InterCept to reconcile
any out of balance conditions. If data is to be transmitted from multiple
sources, InterCept will not begin processing until all data has been received. The
Customer is also responsible for retention and backup of all data and
processing records provided by InterCept.

4.             Disaster Recovery. InterCept
has in place a disaster recovery plan designed to minimize, but not eliminate,
risks associated with a disaster affecting the InterCept System and the
Processing Services. InterCept does not warrant that service will be
uninterrupted or error free in the event of a disaster. Customer is responsible
for adopting a disaster recovery plan relating to disaster’s affecting Customer’s
facilities and for securing business interruption insurance or other insurance
necessary for Customer’s protection. InterCept shall maintain adequate backup
procedures including storage of duplicate record files as necessary to
reproduce Customer’s records and data. In the event of a service disruption due
to reasons beyond InterCept’s control, InterCept shall use diligent efforts to
mitigate the effects of such an occurrence. Per section 2.5.c of the Master
Agreement, Customer may review InterCept’s disaster recovery plan. InterCept shall provide to Customer a copy of the
results from the most recent test of the disaster recovery plan upon request.

5.             Service
Performance Standards

5.1           Percentage Up Time. InterCept
shall ensure that the InterCept System and the Processing Services are
available for daily processing tasks 98% of the time each month during regular
hours of operation as set forth below. InterCept will also be responsible for
ensuring the InterCept System has a reasonable end user response time.

5.2           Hours of Operation.

(a)             The
System will be staffed 8:00 a.m. to 8:30 p.m. Eastern Standard Time,
Monday through Friday. The System will not be attended on Saturdays, Sundays,
or on the holidays observed by the Federal Reserve Bank, including the
following:

	
  New Year’s Day

  	
  President’s Day

  
	
  Martin Luther
  King Day

  	
  Thanksgiving Day

  
	
  Memorial Day

  	
  Christmas Day

  
	
  Independence Day

  	
  Columbus Day

  
	
  Labor Day

  	
  Veteran’s Day

  

 

(b)            InterCept
shall ensure that stand-by paging service will be available to Customer at all
other times.

(c)             Other
than during nightly batch processing and required System maintenance, InterCept
agrees to provide on-line access 24 hours a day, 7 days a week.

5.3           Extension of Hours. InterCept
will use its best efforts to accommodate requests for exceptions or extensions
of the hours of operation. These hours may be modified based on dependencies
with reporting files required to be sent to other servicing organizations.

5.4           Exclusions. InterCept shall
not be responsible for (i) telecommunications failures, (ii) service
interruptions beyond InterCept’s control, (iii) delay or failure of any
third party courier or delivery service, or (iv) failure of any third
party vendor to deliver information, files, magnetic media, products, support
or services, or other materials required for InterCept to provide services
hereunder.

5.5           Service Performance and Standards
Remedy. Notwithstanding section 4.2 of the Master Agreement, InterCept and
Customer agree that the following provision represents the Customer’s sole and
exclusive remedy for InterCept’s failure to meet any service performance
standard.

If InterCept or the InterCept System fails to meet the
percentage up-time and performance standards specified above and such failure
is not the result of a Customer error or omission, any act, failure or omission
of any third party, or any other circumstance beyond InterCept’s control,
Customer shall notify InterCept immediately in writing specifying the
performance standard(s) not met and the nature of the deficiency. Within
15 days of receipt of such notice, InterCept shall establish and provide
Customer in writing with an action plan to meet the service performance
standard(s). Upon expiration of such 15-day period, InterCept shall have
30 days to bring its performance to the percentage/standard specified in the
relevant service performance standard. InterCept shall report the nature and
status of its efforts at the end of such period. Should InterCept’s performance
remain below the applicable standard after such 30-day period, InterCept
shall have an additional 60 days to 

 2
 

 

correct the situation and bring the affected
performance up to the standard. During this period, Customer will be provided
with a 15% reduction in the monthly InterCept invoice for each month that the
performance standard(s) remain deficient.

Should InterCept’s performance remain below the
service standards following all such periods, Customer may elect to either (i) provide
InterCept with additional time to improve the affected standard, during which
time Customer will receive a 15% reduction in the monthly InterCept invoice, or
(ii) terminate this Agreement by giving InterCept written notice of
termination. Such termination shall be without penalty or any charge to
Customer other than charges for service fees incurred prior to the effective
date of termination.

5.6           Time Schedules. Customer and
InterCept shall establish a mutually agreeable time schedule for the receipt
and delivery of work. Customer acknowledges that such time schedule will be
constrained by limitations outside of InterCept’s control such as but not
limited to the courier service provided by the customer, Federal Reserve cutoff
times, the Customer’s account processing deadline requirements, the quantity
and quality of the Customer’s transactions, and the backup and maintenance of
the InterCept System.

6.     Problem Reporting and Resolution

6.1   Problem Reporting. Customer is
responsible for reporting problems to InterCept’s customer service or
operations staff at the contact numbers or addresses provided by InterCept from
time to time.

6.2   Problem Response. InterCept shall
respond to each reported problem promptly based on the severity of the problem
and its effect on Customer’s operations. InterCept shall use reasonable
commercial efforts to either resolve each problem or provide Customer with
information to allow Customer’s personnel to address the problem. In the event
the resolution of a reported problem which materially impacts Customer’s
operations will carry-over to the next business day, InterCept will
provide Customer with a status report for the problem and an estimate of the
resolution time and course, if possible.

7.     Insurance. InterCept shall maintain fidelity bond coverage for
dishonest acts committed by InterCept’s personnel. InterCept shall maintain
insurance covering hazards, including losses caused by fire, disaster, and
other events that may interrupt normal service. InterCept shall maintain insurance
covering Errors and Omissions. Such coverage’s shall be in amounts as
determined by InterCept. Upon request, InterCept shall furnish Customer with
applicable certificates of insurance.

8.     Third Party Audit. InterCept shall
provide to Customer a copy of any third party service audits of the records of
InterCept upon request and payment by Customer of a reasonable and customary
charge. If requested, InterCept shall also provide to Customer annual audited
financial information regarding InterCept at no charge

9.     Termination.
Notwithstanding sections 4.2 and 4.3 of the Master Agreement, InterCept and
Customer agree as follows:

9.1   Termination by Customer.

(a)   Customer may terminate this Order at any time upon
180 days written notice accompanied by payment of liquidated damages.

(b)   If Customer terminates this Agreement prior to its
expiration date, Customer acknowledges that InterCept will suffer a substantial
loss and/or damages that are difficult or impossible to estimate. Accordingly,
in an effort to liquidate in advance the sum that should represent the loss or
damages which would be actually sustained by InterCept as the result of any
such early termination by Customer, Customer shall pay InterCept the following
amount as liquidated damages:  (i) If
Customer pays for the Processing Services on a monthly basis, then such damages
shall be equal to 80% of the average total monthly fees for such Processing
Services payable by Customer to InterCept for the six months prior to the
notice of termination (or for all prior months if this Order has been in effect
or InterCept has been providing the Processing Services for less than six
months) multiplied by the number of months remaining in the then current term.
(ii) If the payment period is quarterly, then the liquidated damages shall
be equal to 80% of the average of the two quarterly payments immediately
preceding the notice of termination multiplied by the number of payment periods
remaining. (iii) If the payment period is annual, then the damages shall
be 80% of the previous annual fee multiplied by the number of payment periods
remaining, including partial periods. Customer agrees that such amount is a
reasonable estimate of damages that InterCept will incur in the case of such
early termination, and that such amount does not constitute a penalty. In
addition to the payment of liquidated damages, Customer shall pay immediately
all previously invoiced and unpaid amounts.

(c)   Customer may terminate this Order upon the
occurrence of any of the following:  (i) InterCept’s
material breach of any provision of this Order if InterCept has not cured or
initiated adequate steps to cure such breach or failure within 30 days
following written notice of such breach or failure to InterCept; or (ii) InterCept
ceases to do business, makes a composition 

 3
 

 

or assignment for the benefit of creditors, becomes
bankrupt or insolvent, or is found subject to any provisions of the bankruptcy
code concerning involuntary bankruptcy or similar proceeding. If any breach or failure materially affects
Customer’s ability to conduct its operations in accordance with safe and sound
banking practices or materially affects Customer’s ability to service its
customers, then such notice period shall be shortened to 10 business days. Termination
may be immediate or at a future date to allow for a conversion to an alternate
product or service provider. In no event shall InterCept be responsible for
Customer’s costs associated with identification, selection, engagement, or
implementation of a replacement vendor.

9.2   Termination by InterCept. InterCept
may terminate this Order upon the occurrence of any of the following: (i) 180
days written notice prior to the end of the term as set forth in this Order; (ii) Customer’s
material breach of any provision of this Order if the Customer has not cured or
initiated adequate steps to cure such breach or failure within 30 days
following written notice of such breach or failure to Customer; or (iii) Customer
fails to pay any fee or charge when due. Customer agrees to pay the liquidated
damages set forth in section 10.1 if this Order is terminated pursuant to (ii) or
(iii) above.

10.  Communications.

10.1 Responsibility. Customer shall bear all
risk of loss or damage to items, records, other input data, or Reports and other
output data during communication or delivery of such data between the Customer’s
office and the InterCept System. Customer shall be responsible for and shall
pay all charges related to communications between Customer and the InterCept
System.

10.2 Equipment Compatibility. Customer agrees
that it is responsible for all communications between Customer and the
InterCept System. When communicating with, or transferring data to, or
receiving data from, the InterCept System, Customer shall, at its own cost and
expense, use and maintain only such terminals, modems and other hardware,
firmware and software (herein collectively referred to as the “Equipment”) as
may be compatible with the systems and communications networks of the InterCept
System as detailed in InterCept’s Hardware Requirements document as provided by
InterCept, including any updates to the foregoing. The Customer’s Equipment
must be completely compatible with the systems and communications networks of
the InterCept System and, if requested by InterCept, Customer shall be
responsible for providing sufficient information about the Equipment to
InterCept and for performing adequate tests to demonstrate that the Equipment
is in good working order and completely compatible with the systems and communications
networks of the InterCept System.

10.3 Establishing and Maintaining Communications.
Unless otherwise agreed by the parties, InterCept shall schedule and
arrange for the communications services, including communications equipment
installation, with the communication provider. Customer shall be responsible
for paying all charges imposed by the provider of the communications equipment,
such as the telephone company, for the Equipment installation, as well as for
any charges for additional connections or changes to locations or future
services. InterCept shall not be responsible for the reliability or continued
availability of the telephone lines, communications facilities, or electrical
power used by Customer in utilizing the Processing Services provided by
InterCept hereunder. InterCept will cooperate with communications vendors as
appropriate so that communications between Customer and the InterCept System
function properly.

10.4 Communications Network Security.

Customer is responsible for all physical security of Equipment and
communication lines at Customer facilities. Customer is responsible for
creating and maintaining all applicable policies and procedures relating to
security such as requiring authentication that limits access to authorized users
only.  Customer is responsible for
creating and maintaining all applicable operating system logons as well as
monitoring those logons through audit capabilities as provided by operating
system vendor. Customer is responsible for creating and maintaining all
InterCept BancPac application logons as well as monitoring those logons through
audit capabilities as provided by BancPac. InterCept is responsible for all
physical and systems security for equipment and communication lines located in
their facilities.

11.  Deconversion. Upon Customer’s request, InterCept shall furnish one test set and one
live set of Customer’s data files as of the date specified by the Customer in
InterCept’s standard machine readable format form along with such information
as is reasonable and customary to enable Customer to deconvert from the
InterCept System. Requests for media or format other than that stated above may
be available for additional charges. Customer files will be delivered provided
that Customer consents, agrees, and authorizes InterCept to retain Customer’s
files until (i) InterCept has been paid in full for all fees for all
services provided hereunder through the date such files are returned to
Customer, and InterCept has been paid any and all other amounts that are due or
will become due under this Order, including, but not limited to, data
communication lease obligations, if any; (ii) InterCept has been paid its
then current time and materials rates for de-conversion assistance, which
is equal to the greater of $10,000 or the two month fee for Data Processing
Services as set forth herein, (iii) if this Order is being terminated,
InterCept has been paid any applicable liquidated damages and other fees owed
pursuant to this Order or Master Agreement, and (iv) Customer has returned
to InterCept all InterCept Confidential Information requested by 

 4
 

 

InterCept. Upon Customer’s
approval, InterCept shall be permitted to destroy customer’s files and data any
time after 60 days from the final use of such files for processing.

Each of InterCept and Customer has agreed to the terms
and conditions of this Data Processing Services Order as of the date set forth
below:

 

	
  Chino Commercial Bank,
  Chino, CA

  	
   

  	
  InterCept, Inc.

  
	
  /s/ Dann H Bowman

  	
   

  	
   

  	
   

  	
  /s/ Todd Shiver

  	
   

  	
   

  
	
  Signature of
  Authorized Officer

  	
   

  	
  Signature of InterCept
  Representative

  
	
  Dann H Bowman

  	
   

  	
   

  	
   

  	
  Todd Shiver

  	
   

  	
   

  
	
  Printed Name of
  Authorized Officer

  	
   

  	
  Printed Name of
  InterCept Representative

  
	
  President/ CEO

  	
   

  	
   

  	
   

  	
  Vice President

  	
   

  	
   

  
	
  Title of
  Authorized Officer

  	
   

  	
  Title of InterCept
  Representative

  
	
  12/21/04

  	
   

  	
   

  	
   

  	
  1/3/05

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

  
																			

 

 

 5

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