Document:

Exhibit 10.1 Material Definitive Agreement

EXHIBIT 10.1

	
		
	
	 

	CONFIDENTIAL TREATMENT REQUESTED

	Portions of this exhibit indicated by “[**CONFIDENTIAL**]” or otherwise clearly marked have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange Commission.

INFORMATION TECHNOLOGY SERVICES AGREEMENT
This Information Technology Services Agreement (“Agreement”) is effective as of July 01, 2012 (“Effective Date”) and is by and between Fidelity Information Services, LLC, an Arkansas limited liability company located at 601 Riverside Avenue, Jacksonville, Florida 32204 (together with its subsidiaries and affiliates, “FIS”), and Bank of Marin located at 504 Redwood Boulevard of Novato, California 94947 (“Client”).

		
	1.
	General Terms and Addenda. The Agreement is comprised of the attached General Terms and Conditions (“General Terms”), the Addenda listed below (each an “Addendum”), and any schedules, exhibits, and pricing attachments attached thereto:

		
	(1)
	CARD PERSONALIZATION AND FULFILLMENT SERVICES ADDENDUM

		
	(2)
	CASH EXPRESS SERVICES ADDENDUM

		
	(3)
	CASH MANAGER SERVICES ADDENDUM

		
	(4)
	CHEXSYSTEMS® SERVICES ADDENDUM

		
	(5)
	ELECTRONIC BANKING SERVICES ADDENDUM

		
	(6)
	ELECTRONIC FUNDS TRANSFER SERVICES ADDENDUM

		
	(7)
	FRAUD DETECTION AND IDENTITY SERVICES ADDENDUM

		
	(8)
	IBS CORE PROCESSING SERVICES ADDENDUM

		
	(9)
	IBS BUSINESS INTELLIGENCE SERVICES ADDENDUM

		
	(10)
	IBS SALES AND SERVICES SUITE SERVICES ADDENDUM

		
	(11)
	ITEM PROCESSING SERVICES ADDENDUM

		
	(12)
	MOBILE BANKING SERVICES ADDENDUM

		
	(13)
	NETWORK SERVICES ADDENDUM

		
	(14)
	ONLINE ACCOUNT CREATION SERVICES ADDENDUM

		
	(15)
	PAYMENT MANAGER SERVICES ADDENDUM

		
	(16)
	PRIME COMPLIANCE SUITE SERVICES ADDENDUM

		
	(17)
	PROFESSIONAL SERVICES ADDENDUM

		
	(18)
	SENDPOINT BRANCH CHECK CAPTURE SERVICES ADDENDUM

		
	(19)
	SENDPOINT MERCHANT CHECK CAPTURE SERVICES ADDENDUM

		
	(20)
	SOFTWARE LICENSE AND MAINTENANCE SERVICES ADDENDUM

		
	(21)
	XPRESS DEPOSIT SERVICES ADDENDUM

		
	(22)
	SERVICE LEVEL SCHEDULE

		
	2.
	Commencement Date for Existing Services and Software. The Commencement Date of a Service or Software already in use by Client as of the Effective Date shall be July 01, 2012.  The Commencement Date of a Service or Software not already in use by Client as of the Effective Date shall be as set forth in Section 2.1.1 of the General Terms or in the case of Software, Section 4.1 of the Software License and Maintenance Addendum.

		
	3.
	Term. The Agreement shall remain in effect until the date on which FIS is no longer obligated to 

provide any Service or Software under any Addendum. Each Service shall remain in effect through December 31, 2018 (the “Initial Term”). Upon expiration of the Initial Term, the Service shall automatically be renewed for successive twelve (12) months terms (each, a “Renewal Term”) unless terminated by either party in writing at least one hundred eighty (180) days prior to the expiration of the then-current Initial Term or Renewal term.
		
	4.
	Additional Service. Additional Services or Software may be added from time to time by amending this Agreement, including agreeing to additional Addenda, in accordance with the General Terms.

[Signature page follows]
IN WITNESS WHEREOF, the parties have caused their duly authorized officers or representatives to execute and deliver this Agreement as a legally binding obligation of such party.
 
	
			
	Bank of Marin
	 
	FIDELITY INFORMATION SERVICES, LLC

	 
	 
	On behalf of itself and the subsidiaries and affiliates specified in any Addenda hereto

	 /S/ RUSSELL A. COLOMBO
	 
	 

	Signature
RUSSELL A. COLOMBO
	 
	Signature

	Name (printed)
PRESIDENT AND CHIEF EXECUTIVE OFFICER
	 
	Name (printed)

	Title
JULY 11, 2012
	 
	Title

	Date Signed
	 
	Date Signed

	FIS Payment Account Number
	 
	 

	Transit and Routing Number of FIS Payment Account
	 
	 

 

	
	
	CONFIDENTIAL TREATMENT REQUESTED

	Portions of this exhibit indicated by “[**CONFIDENTIAL**]” or otherwise clearly marked have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange Commission.

GENERAL TERMS AND CONDITIONS

1.    Introduction. These general terms and conditions (“General Terms”) together with each Addendum, now or hereafter agreed to by the parties, are a part of the Information Technology Services Agreement (collectively, the “Agreement”) between Bank of Marin of Novato, CA (“Client”) and Fidelity Information Services, LLC (together with its subsidiaries and Affiliates, “FIS”). The pricing attachment(s) related to each Addendum are incorporated into and made a part of such Addendum. “Affiliate” means, with respect to a party, any entity which directly or indirectly, through one or more intermediaries, is controlled by, or is under common control with such party.

2.    Services. If an Addendum describes the provision of a service (“Service”) by FIS, the following subsections apply:

2.1    Commencement.

2.1.1    Unless otherwise set forth in the applicable Amendment or Addendum to the Agreement, the “Commencement Date” of a Service that is not already in use by Client as of the Effective Date or is added thereafter is the earlier of: 

(i)     the date the Service is first installed and available for Client's use in production; 
(ii)     Client's first production use of the Service; or 
(iii)     the commencement date agreed upon by the parties in writing. 

Upon the request of either party, the Commencement Date may be rescheduled to a new date that is mutually agreed upon in writing by both parties. If commencement of a Service is delayed for more than ninety (90) days after the Effective Date or the commencement date agreed upon by the parties, and such delay is not due to the acts or omissions of FIS, such as FIS's failure to meet its obligations under the Agreement, then FIS may suspend delivery of the applicable Service and Client shall pay the one-time fees, if any, and begin paying the monthly minimum fees, if any, related thereto. The parties shall use commercially reasonable efforts to mutually agree upon a new date to commence the Service as soon as commercially practicable.   

2.1.2    Each party shall dedicate sufficient resources, including the assignment of adequate personnel, to commence the Service (or Software, as applicable) as soon as practical following establishing the agreed upon commencement date. 

2.1.3    Either party may postpone implementation of a Service, without penalty, if the other party fails to timely provide required information. In addition, FIS may postpone implementation of a Service if a circumstance arises that FIS reasonably believes may jeopardize the timely processing of transactions for other clients of FIS, and further, Client may request postponement of implementation of a Service if Client is actively in the process of acquiring a bank.  Upon FIS's receipt of such request, the parties will review the implementation(s) underway and the acquisition timeline and mutually agree to delay such implementation(s), without penalty, as necessary.  

2.2    Exclusivity. Except as provided otherwise in an Addendum, Client agrees that FIS shall be Client's sole and exclusive provider of each Service. If Client or any Affiliate of Client acquires any entity or accounts (collectively, “Acquired Accounts”) that require a service that is substantially similar to a Service provided under an Addendum ("Similar Service"), such Accounts shall become subject to the terms of the applicable Addendum in accordance with the following:

(i)    If FIS is already providing the Similar Service for the Acquired Accounts on the same core processing system, then it shall continue to do so pursuant to its then-current term thereof and upon expiration of such pre-existing service agreement, the Acquired Accounts shall be processed in accordance with the terms of the applicable Addendum hereunder. If, however, FIS is providing the Similar Services for the Acquired Accounts on the same core processing system, then upon Client's written request, the pre-existing service agreement shall be terminated and Acquired Accounts shall be processed in accordance with the terms of the applicable Addendum hereunder within the later to occur of (i) sixty (60) days of the FIS's receipt of Client's written request or (ii) the completion of Client's acquisition.  If the applicable fees for the services are greater than those under this Agreement, Client shall pay an early termination fee equal to the difference times the number of months remaining in the then-current term of the pre-existing services agreement.  For example, as an illustration of how the early termination fee would be calculated under the preceding sentence, if Client purchases Bank A, which is on the same core processing system as Client, and Bank A has a core processing services invoice for fees in the amount of [**CONFIDENTIAL**], while Client has a core processing services invoice for fees in the amount of [**CONFIDENTIAL**] for Similar Services, then the early termination fee would be equal to the difference of [**CONFIDENTIAL**] multiplied by the number of months remaining in the then-current term of Bank A's pre-existing services agreement.  

(ii)    If a third party is providing the Similar Service for the Acquired Accounts, the parties shall use reasonable efforts to convert the Acquired Accounts to the Service within six (6) months after the acquisition or, if the Acquired Accounts are subject to a pre-existing processing agreement between Client and such third party, upon the expiration of the then-remaining term of that pre-existing agreement.

(iii)    Client shall pay FIS to perform the conversion at the rates set forth in the pricing attachment to the IBS Core Processing Services Addendum to this Agreement plus related material charges.

2.3    FIS Responsibilities.

2.3.1    If Client pays all applicable fees when due, FIS shall provide (i) Client and Client's customers (“Customers”) with access to and use of the Service and Software in accordance with these General Terms, the applicable Addenda, and FIS's then current standard user operating instructions and requirements made available to Client from time to time (“Specifications”), and (ii) Client with standard reporting, if any, associated with use of the Service or Software. FIS shall perform the Service and provide Software in compliance with all Laws applicable to FIS as a third party provider of that Service. “Law” means any law, rule or regulation, and guidelines issued by a regulatory body thereunder for which compliance by the party to whom it applies is required, ordinance, code, or order to which a party may be subject or under which a party may exercise rights. FIS represents and warrants that the Services will be provided in accordance with these General Terms, the applicable Addenda, and the Specifications. 

2.3.2    FIS shall perform an on-going review of federal Laws applicable to the provision of the Services and Software. FIS shall at its expense maintain the features and functions for the Services and Software in accordance with all federal Laws applicable to such features and functions, including new or amended federal Laws (as applicable and necessary to support compliance obligations), in a non-custom environment. In addition, FIS shall, at Client's request, work with Client in developing and implementing a suitable and commercially reasonable procedure or direction to enable Client to comply with state and local Laws applicable to the Services and Software being provided to Client, and, to the extent commercially possible, modify the manner in which FIS provides the Service prior to the regulatory deadline for such compliance. Any modification in a Service or Software necessitated by such a change in state or local Laws shall be paid for by Client, provided, however, that FIS will use commercially reasonable efforts to prorate the costs related to such modification among other participating clients to the extent practicable. 

2.4    Client Responsibilities.

2.4.1    Client shall: (i) provide Customer information to FIS in accordance with the Specifications; (ii) except to the extent due to FIS's material breach of the Agreement, assume all risk and liability associated with transactions, including any risk of counterfeit, charged-back or fraudulent transactions; (iii) use each Service in accordance with the Specifications; (iv) timely deliver any Data (defined below) or other information necessary for the provision of the Service in an electronic form and format approved by FIS; (v) be solely responsible for timely procuring any information or cooperation required from its Customers and suppliers or other third party in order to commence the Service; (vi) have sole responsibility for verifying the accuracy, completeness or authenticity of any Data furnished by Client or a third party; (vii) be solely responsible for training its employees and representatives to comply with all Laws applicable to Client and the procedures set forth in the Specifications or any manual or other literature provided to Client by FIS; (viii) comply with all Laws applicable to Client's business and its use of a Service, including but not limited to those Laws relating to usury, truth-in-lending, fair credit reporting, equal credit opportunity, automated clearing house transfers, networks associations, electronic funds transfer, privacy and direct marketing, regardless of whether Client uses any forms or other Materials supplied by FIS; and (ix) be responsible for providing FIS with notice of any changes in state or local Law that impact Client's use of the Service. 

2.4.2    Client shall be responsible for monitoring and interpreting (and for complying with, to the extent such compliance requires no action by FIS), the applicable Laws pertaining to Client's business (“Legal Requirements”). Based on Client's instructions, 

FIS shall implement the processing parameter settings, features and options (collectively, the “Parameters”) within FIS's Services and systems that shall apply to Client, subject to the change request process in place between FIS and Client to establish requirements, development arrangements and deployment timelines. Client shall be responsible for determining that such selections are consistent with the Legal Requirements and with the terms and conditions of any agreements between Client and its Customers. In making such determinations, Client may rely upon the written descriptions of such Parameters contained in the Specifications. FIS shall perform the Services in accordance with the Parameters.

2.4.3    If a Service contemplates that FIS will be clearing or settling transactions and/or processing payments, then FIS, in its sole discretion, may require Client to establish and maintain a clearing or settlement account (“Settlement Account”) with a minimum balance determined by FIS in its reasonable discretion based upon the circumstances. Client shall maintain sufficient funds in the Settlement Account to cover any amounts required to facilitate the orderly processing and settlement of transactions, and is solely responsible for properly applying all credits and debits made to the Settlement Account. In the event of any change to the Settlement Account so established by Client, Client shall promptly notify FIS in writing of such change, but no later than within three (3) business days of the change taking place.

2.5    Data.

2.5.1    Client shall be solely responsible for the transmission of any information, data, records or documents (collectively, “Data”) necessary for FIS to perform a Service at Client's expense, and shall bear any risk of loss resulting from that transmission until FIS confirms receipt. FIS shall bear the risk of loss resulting from Data transmitted to Client until Client confirms receipt. If Client directs FIS to disclose Data to a third party, Client shall provide FIS with written authorization to do so and bear any risk of loss or liability associated with that disclosure. In addition, FIS shall be held harmless from any claim resulting from the third party's use of that Data, and may, in its discretion, require the third party to enter into a written agreement with FIS governing disclosure of that Data.

2.5.2    FIS shall not be responsible for the accuracy, completeness or authenticity of any Data furnished by Client or a third party, and shall have no obligation to audit, check or verify that Data. If any Data submitted by Client or a third party to FIS is incorrect, incomplete or not in the required format, FIS may require Client to resubmit the Data or FIS may correct the Data and bill Client its then current rates for performing those corrections. FIS shall use commercially reasonable efforts to notify Client prior to Client incurring such expense.

2.5.3    Client shall maintain a copy of all Data submitted to FIS (whether directly or through a third party) to permit reconstruction if ever required. Client assumes all risk and expense associated with Data reconstruction, except for those expenses incurred as a direct consequence of FIS's negligence or breach of its obligations under the Agreement. If Data reconstruction is ever required, the parties shall mutually agree on a schedule for that reconstruction.

2.6    Disaster Recovery. In accordance with FFIEC business continuity guidelines, FIS has put in place a disaster recovery plan designed to minimize the risks associated with a disaster affecting FIS's ability to provide the Services under the Agreement. FIS's recovery time objective (RTO) under such plan is as set forth in the continuity program summary document made available to Client. FIS will maintain adequate backup procedures in order to recover Client's Data to the point of the last available good backup, with a recovery point objective (RPO) as set forth in the continuity program summary document made available to Client. FIS will test its disaster recovery plan annually. Upon request, FIS will provide a summary of its disaster recovery plan and test results, excluding any proprietary information or NPI. Client authorizes FIS to provide Client's Data to external suppliers in order to test and prepare for disaster recovery, as well as provide replacement services in the event of a disaster. Client is responsible for adopting a disaster recovery plan relating to disasters affecting Client's facilities and for securing business interruption insurance or other insurance necessary for Client's protection.

2.7    Changes to Services. FIS may change any features, functions, brand, third party provider, or attributes of a Service, or any element of its systems or processes, or Specifications, from time to time, provided that neither the functionality of nor any applicable fees and charges for such Service are materially adversely affected. For the avoidance of doubt, in the event any such change made by FIS, pursuant to the preceding sentence, has a material adverse impact on the functionality of or fees and cost for a Service, Client may elect to terminate the affected Service and Addendum pursuant to Section 16.1(i) of these General Terms, subject to the cure period thereunder, without invoking liquidated damages under Section 16.3. Client shall not rely on identification of specific brands associated with or names of third party providers of a Service as an obligation of FIS to use any particular brand or third party provider. If Client requests a change to a Service, the parties shall negotiate the terms for such change, which terms will be set forth in a mutually agreed upon statement of work (“SOW”). 

2.8    Transition Assistance. Upon termination of the Agreement or an Addendum, FIS shall cooperate in the transition of the Services to Client or a replacement service provider and, if requested by Client, perform ancillary services for additional fees. However, no master files, transaction data, test data, record layouts or other similar information shall be provided by FIS until: (i) Client and, if applicable, the replacement service provider, have executed FIS's deconversion confidentiality agreement; (ii) Client has fully paid all outstanding amounts that are not the subject of a good faith dispute by Client pursuant to Section 7.5; (iii) Client has completely prepaid FIS's fees for deconversion assistance notwithstanding any good faith dispute by Client (in which case, 

such amounts shall be prepaid and not withheld while the parties will conduct discussions pursuant to Section 7.5); and (iv) the parties mutually agree on a date for deconversion that is at least [**CONFIDENTIAL**] days following FIS's receipt of Client's notice of deconversion. If the [**CONFIDENTIAL**] day period ends between the third week of November and the third week of January, the time period for completing deconversion may be extended until the first week of February. In addition, upon termination of the Agreement, FIS may, at Client's request and expense, continue to provide the corresponding Service(s) until the deconversion is completed, provided the parties agree to such continuation in writing.

2.9    Problem Reporting and Resolution. Client shall timely report any problems encountered with the Service. FIS shall provide a toll-free telephone number for problem reporting. FIS shall promptly respond to each reported problem based on its severity, the impact on Client's operations and the effect on the Service. FIS shall use reasonable commercial efforts to either resolve each problem or provide Client with information to enable Client's personnel to resolve it. Through FIS's standard client support process, FIS will maintain a tracking log for problems reported by Client and a problem escalation process for such reported problems. FIS will notify Client as soon as commercially practical when FIS becomes aware of a platform or system problem that FIS reasonably believes will adversely impact the processing by FIS of Clients Data and/or transactions.  

3.    Third Party Services. If an Addendum describes the provision of a product or service provided by a third party, whether such product or service is requested or required by Client or is otherwise specified in the Addendum as a service or product that is provided by a third party (“Third Party Service”), the following subsections also apply:

3.1    Client acknowledges that FIS is not the provider of any Third Party Service, and Client shall, if required by FIS, enter into a separate agreement for the Third Party Service directly with the applicable provider. FIS makes no warranties or representations of any kind regarding the correctness, accuracy, completeness, merchantability or fitness of any Third Party Service or any associated data, information or system. FIS will pass through to Client end-user warranties to the extent received by FIS from Third Party Service providers.

3.2    If a Third Party Service is terminated prior to the end of its term either (i) by Client or by FIS at Client's request, or (ii) as a result of Client's action or inaction, Client shall pay FIS, except in the event a breach of the Addendum or non-performance of the Service by FIS or the applicable third party, in addition to any other amounts owed, an amount equal to any termination costs and fees incurred or owing by FIS as a result of such termination. FIS shall not be required to refund Client any pre-paid amounts, except if and to the extent that FIS receives a refund of such amounts from the third party.

4.    Use of Service, Software, and Third Party Service. Except as otherwise permitted in the Agreement or in writing by FIS, Client agrees to use a Service, Third Party Service and/or Software only for its own internal business purposes to service its U.S.-based accounts for its Customers and will not sell or otherwise provide, directly or indirectly, any of the Service, Third Party Service, Software or any portion thereof to any third party. Client agrees that FIS may use all suggestions for improvement and comments regarding the Service, Third Party Service, or Software that are furnished by Client to FIS in connection with the Agreement, without accounting or reservation. Except as otherwise may be set forth herein or in writing between the parties, Client shall be responsible for handling all Customer inquiries relating to a Service or Third Party Service. The term “Software” as used in these General Terms means, individually or collectively, any software and/or interfaces licensed to Client by FIS or its Affiliates pursuant to a Software License and Maintenance Addendum to the Agreement.

5.    Materials. As a convenience, FIS may provide Client with sample forms, procedures, scripts, marketing materials or other similar information (collectively, “Materials”). Client shall have a license to use Materials, if any, solely in connection with its use of the Services, Software, or Deliverables during the term of the related Addendum and solely in a manner that is consistent with the Specifications. Client's license to use the Materials shall expire immediately upon termination of the Agreement or the related Addendum. Client is responsible for its use of Materials and bears sole liability for any such use.

6.    Training. Except as may be provided otherwise in the applicable Addendum, FIS will provide its standard initial train-the-trainer training regarding the use and operation of the Service, Third Party Service or Software to Client by web-based training or in person at an FIS training location (in which case, travel would be at Client's expense) at FIS's then current rates and on a mutually agreed date and time. Following such initial training, Client is responsible for its trainer(s) training Client's employees on the use and operation of the Service, Third Party Service or Software. Additional training may be provided by FIS upon Client's request, including onsite training at Client's location, as mutually agreed to by the parties regarding topics, duration and fees and expenses. 

7.    Fees and Other Charges.

7.1    Client shall pay all fees and charges set forth in the pricing attachment(s) to an Addendum. Any one-times fees set forth in the pricing attachment to an Addendum shall be paid as follows: (i) [**CONFIDENTIAL**] upon execution of the Agreement (or the applicable Amendment), and (ii) the remaining [**CONFIDENTIAL**] upon the applicable Commencement Date, unless provided otherwise in an Addendum or pricing attachment thereto. Recurring fees shall be paid beginning on the Commencement Date; provided, however that, notwithstanding anything to the contrary in Section 18.6 below, for any Service and/or Software in use by Client as of the Effective Date, Client shall continue to pay the recurring fees applicable to such Services and/or Software under Client's prior agreement with FIS for such Services and/or Software up to the Commencement Date. All third party fees and 

charges outside of FIS's control, and any adjustments thereto from time to time, including, without limitation, postage, supplies, courier, data transmission, and telecommunications expenses, will be passed through to client at FIS's cost for such items. Beginning on January 1, 2014 and thereafter during the term, FIS may increase the recurring fees by an amount not exceeding, in aggregate effect, [**CONFIDENTIAL**] or the ECI (as defined below), whichever is less, but not more than once annually.  These adjustments will be effective upon FIS's notification thereof to Client. Fees, costs and expenses owed by Client are exclusive of charges for materials, work, hardware, software or travel not otherwise detailed in an Addendum, SOW, or pricing attachment. If travel by FIS is required in connection with providing the Services or Deliverables hereunder, FIS will seek Client's approval prior to undertaking such travel, which will include providing Client with an estimate of the fees and charges related thereto.  “ECI” means the percentage change in the U.S. Employment Cost Index - Civilian: All Workers total compensation, calculated by averaging the annual percentage change reported for the four fiscal quarters immediately preceding each anniversary of the Effective Date, as published by the U.S. Bureau of Labor Statistics (www.bls.gov).

7.2    Client agrees that the ACH account information specified by Client in the Agreement (“FIS Payment Account”) may be utilized by FIS for ACH debits to settle: (i) any fees, charges or other amounts owed to FIS by Client; (ii) third party fees, charges, fines, or assessments (including, but not limited to, interchange fees or other payment system or network fees or charges); and (iii) any payments or deposits received from or on behalf of Client. Client shall maintain sufficient funds in the FIS Payment Account to cover any amounts owed to FIS, and is solely responsible for properly applying all credits and debits made to the FIS Payment Account by FIS. Client shall notify FIS in writing of any change in FIS Payment Account information within three (3) business days of occurrence. In the event FIS does not collect amounts owed from the FIS Payment Account, Client must pay such amounts within thirty (30) days of the invoice being delivered or made available to Client.  For any amount not paid within such thirty day period, Client shall pay a late fee equal to [**CONFIDENTIAL**] for each day past the thirty (30) day payment period. Any disputed amount under Section 7.5 below will not be subject to a late fee.

7.3    Any over-billing or under-billing of amounts due hereunder shall only be corrected within the six (6) month period that follows the occurrence thereof, with the exception of any third party pass-through fees and charges, including, but not limited to, payment network fees and charges.  If Client was over-billed, FIS will correct the error in the form of a credit to Client on the next invoice. If Client was under-billed, FIS will add the under-billed amount to a future invoice. FIS may utilize any amounts owed to Client under the Agreement to pay or reimburse FIS for amounts owed by Client.

7.4    All charges and fees to be paid by Client under the Agreement are exclusive of any applicable withholding, sales, use, excise, value added or other taxes. Any such taxes for which FIS is legally or contractually responsible to collect from Client shall be billed by FIS and paid by Client. Client agrees to reimburse or indemnify FIS for any taxes, penalties and interest assessed by any taxing authority arising out of the Agreement. FIS shall pay and hold Client harmless for any taxes on FIS property, income or payroll. Client agrees to hold FIS harmless for any sales, use, excise, value added or other taxes assessed by a taxing authority arising out of the Agreement. In the event of any assessment by a taxing authority, both parties agree to cooperate with each other to resolve issues in order to minimize such assessment.

7.5    Disputed Amounts.  If Client disputes any charge or amount on any invoice and such dispute cannot be resolved promptly through good-faith discussions between the parties, Client shall pay the amounts due under this Agreement minus the disputed amount (with the exception of amounts due pursuant to Section 2.8(iii)), and the parties shall diligently proceed to resolve such disputed amount.  If, however, the parties are unable, after using commercially reasonable efforts to do so, to resolve the disputed amount, the dispute may be resolved in accordance with the process set forth in Section 18.2 of these General Terms.  An amount will be considered disputed in good faith if: (i) Client delivers a written statement to FIS, on or before the due date of the invoice, describing in detail the basis of the dispute and the amount being withheld by Client, (ii) such written statement represents that the amount in dispute has been determined after due investigation of the facts and that such disputed amount has been determined in good faith, and (iii) all other amounts due from Client that are not in dispute have been paid in accordance with the terms of this Agreement.  Client's right to assert claims under this Agreement shall be subject to Client's payment in full of previously invoiced, past due amounts that have not been disputed in accordance with this Section 7.5.

8.    Intellectual Property.

8.1    Client is not acquiring a copyright, patent or other intellectual property right in any Service, Third Party Service, Software, Deliverable, Specifications or Materials, or in any data, modifications, customizations, enhancements, changes or work product related thereto. “Deliverable” means any work product or other item (whether tangible or intangible) created by FIS or provided by FIS to Client pursuant to the Services, Third Party Services, or Software, and which may be described more particularly in an Addendum, SOW, or other document signed by the parties.

8.2    Any intellectual property rights that existed prior to the Effective Date of an Addendum shall belong solely to the party owning them at that time. Neither party shall be entitled to any copyright, trademark, trade name, trade secret or patent of the other party.

8.3    Client shall not alter, obscure or revise any proprietary, restrictive, trademark or copyright notice included with, affixed to, or displayed in, on or by a Service, Third Party Service, Software, Deliverable or Specifications.

9.    Confidentiality; Information Security.

9.1    Confidentiality. 

9.1.1    Each party shall treat information received from the other that is designated as “confidential” at or prior to disclosure ("Confidential Information") as strictly confidential. FIS designates the Services, Third Party Services, Software, Deliverables, Specifications and the terms of the Agreement, and all information related to the foregoing, as it's Confidential Information. Client designates Customer information that qualifies as “Non-public Personal Information” under the Gramm-Leach-Bliley Act of 1999 or its state law equivalents (“NPI”) ) as its Confidential Information. 

9.1.2    Each party shall: (i) restrict disclosure of the other party's Confidential Information to employees, agents and Affiliates solely on a "need to know" basis in accordance with the Agreement; provided, however, that FIS may use, disclose, and archive Data including, without limitation, Client's Confidential Information, provided that FIS shall first aggregate all such Data and remove any NPI prior to any disclosure to third-parties not bound by the confidentiality provisions of the Agreement; (ii) advise its employees and agents of their confidentiality obligations; (iii) require agents to protect and restrict the use of the other party's Confidential Information; (iv) use the same degree of care to protect the other party's Confidential Information as it uses to safeguard its own Confidential Information of similar importance, but in no event less than a reasonable degree of care; (v) establish procedural, physical and electronic safeguards, designed to meet the objectives of the FFIEC Interagency Guidelines, to prevent the compromise or unauthorized disclosure of Confidential Information. Client shall notify FIS of any breach of FIS' Confidential Information as soon as possible following determination of such breach. FIS shall notify Client of any breach of NPI as soon as possible following determination of such breach, and shall comply with all federal and state laws regarding NPI that are applicable to it as a third party processor.

9.1.3    Confidential Information shall remain the property of the party from or through whom it was provided. Except for NPI, neither party shall be obligated to preserve the confidentiality of any information that: (i) was previously known; (ii) is a matter of public knowledge; (iii) was or is independently developed; (iv) is released for disclosure with written consent; or (v) is received from a third party to whom it was disclosed without restriction. Disclosure of Confidential Information shall be permitted if it is: (a) required by law; (b) in connection with the tax treatment or tax structure of the Agreement; or (c) in response to a valid order of a U.S. court or other governmental body, provided the owner receives written notice and is afforded a reasonable opportunity to obtain a protective order. Upon termination of an Addendum, each party shall, except as otherwise set forth in Section 9.2(i) above, destroy the other party's Confidential Information relating to that Addendum in a manner designed to preserve its confidentiality, or, at the other party's written request and expense, return it to the disclosing party. Upon termination of the Agreement, each party shall destroy any remaining Confidential Information of the other party in the same manner or, if so requested, return it to the disclosing party at its expense.

9.1.4    Client shall not file the Agreement (including any Addendum, schedule, supplement or attachment), or any future amendment or supplement hereto, with the US. Securities and Exchange Commission (the "SEC") unless such filing is required under Item 601 of Regulation S-K. In the event that Client determines that the Agreement (or amendment or supplement) must be filed with the SEC under Regulation S-K, Client shall take all actions necessary to obtain confidential treatment of all Addenda, schedules, supplements and attachments (including all pricing attachments) and to the extent possible, the Agreement, in accordance with Rule 406 under the Securities Act of 1933. Specifically, and without limitation, Client shall omit all Addenda, schedules, supplements and attachments (including all pricing attachments) from the material filed with the SEC and, in lieu thereof, shall indicate in the material filed that the Confidential Information has been so omitted and filed separately with the SEC. Client shall file all Addenda, schedules, supplements and attachments (including all pricing attachments) so as to maintain the confidentiality of the documents, and shall file an application making an objection to the disclosure of these materials. If the SEC denies the application, Client will seek review of the decision under Rule 431.

9.2    Information Security. In the event that there has been an unauthorized disclosure of critical, sensitive or confidential Client Data (as defined below) by FIS or a security breach (as such term is defined by applicable state security breach notification laws and/or federal law) in FIS's security, which impacts Client Data, FIS shall notify Client of such unauthorized disclosure or security breach as soon as reasonably practicable after the disclosure or breach, but in no event later than within [**CONFIDENTIAL**] business days of FIS's making a determination that there has been such a disclosure or breach.  Client acknowledges that FIS will be cooperating and assisting with law enforcement and other state or federal regulator(s) in the investigation of a security breach or unauthorized disclosure, including providing information necessary to facilitate such investigation.  For purposes of this Section 9.2, “Client Data" means all data and information submitted to FIS by Client, or received by FIS on behalf of Client, in connection with FIS's provision of a Service.

10.    Indemnification.

10.1    Client shall defend FIS and its officers, employees, directors, agents and shareholders, in their individual capacities or otherwise, from and against any and all Claims (as defined in this Section 10.1) asserted by a third party (other than an Affiliate of 

FIS) against FIS, and shall indemnify and hold harmless FIS from and against any damages, costs, and expenses of such third party awarded against FIS by a final court judgment or an agreement settling such Claims in accordance with this Section 10.1.  As used in this Section 10.1, the term “Claim” means any action, litigation, or claim by a third party alleging or based on: (i) any personal injury or property damage caused by Client's gross negligence or willful misconduct in connection with this Agreement; (ii) Client's misuse of a Service, Materials, Third Party Service, Software, Specifications or Deliverables; (iii) inaccurate or incomplete Data provided by or on behalf of Client; (iv) Client's use of a Service, Third Party Service, Software and/or Deliverable with computer programs or services owned, licensed or provided by someone other than FIS; (v) Client's failure to comply with Laws; (vi) Client's failure to comply with the terms of any Third Party Service agreement; (vii) any claim of libel, violation of privacy rights, unfair competition or infringement of patents, trademarks, copyrights or other intellectual property caused by Client or a Customer; (viii) any circumstance, event or activity set forth in any of the Subsections 10.2 (a) - (e); or (ix) any Customer claim, action or suit, except to the extent attributed to the action or inaction of FIS (as provided in Section 10.3(iv) below).

10.2    FIS shall defend Client and its officers, employees, directors, agents and shareholders, in their individual capacities or otherwise, from and against any and all Claims (as defined in this Section 10.2) asserted by a third party (other than an Affiliate of Client) against Client, and shall indemnify and hold harmless Client from and against any damages, costs, and expenses of such third party awarded against Client by a final court judgment or an agreement settling such Claims in accordance with this Section 10.2. As used in this Section 10.2, the term “Claim” means any action, litigation, or claim by a third party alleging (i) personal injury or property damage caused by FIS's gross negligence or willful misconduct in connection with this Agreement; (ii) FIS's failure to comply with all federal laws, rules and regulations applicable to FIS as a provider of a Service; or (iii) that a Service, Software, or Deliverable infringes an effective U.S. Patent or a registered trademark or copyright; provided, however, that FIS shall not be liable for (and Client shall indemnify FIS against) any infringement or alleged infringement that results, in whole or in part, from: (a) use of a Service, Software or Deliverable in a manner or for a purpose not specifically described in the Agreement (including the Addenda) or Specifications; (b) use of a Service, Software or Deliverable in combination with computer programs, processes, hardware, software, data, systems, or services owned, licensed or provided by someone other than FIS; (c) Client's products or services; (d) modification, change, amendment, customization, or adaptation of any Service, Software, or Deliverable not made wholly by FIS; or (e) Client's failure to implement corrections or changes provided by FIS. If a claim of infringement has been asserted, or in FIS's opinion is about or likely to be asserted, FIS may, at its option either: (1) procure for Client the right to continue using the Service, Software or Deliverable; (2) replace or modify the Service, Software, or Deliverable so that it becomes non-infringing; (3) terminate the applicable Addendum or SOW and refund all pre-paid fees covering future use of the Service, Software or Deliverable; or (4) defend the action on Client's behalf and pay any associated costs or damages.

10.3    The obligation to indemnify under this Section 10 is contingent upon: (i) the indemnified party's promptly notifying the indemnifying party in writing of any Claim subject to such indemnity obligation; (ii) the indemnifying party's having sole control over the defense and settlement of the Claim; (iii) the indemnified party's reasonably cooperating during defense and settlement efforts; (iv) the Claim(s) not arising, in whole or in part, out of the action or inaction of the indemnified party; and (v) the indemnified party's not making any admission, concession, consent judgment, default judgment or settlement of the Claim or any part thereof.

11.    Limitation of Liability and Disclaimer of Warranties and Certain Losses.

11.1    Limitation of Liability. EXCEPT WITH RESPECT TO FIS's WILLFUL MISCONDUCT, FIS'S TOTAL LIABILITY FOR A SERVICE IS LIMITED IN ALL CASES AND IN THE AGGREGATE TO THE AMOUNT OF FEES ACTUALLY PAID BY CLIENT FOR THE CORRESPONDING SERVICE DURING THE  [**CONFIDENTIAL**] PRECEDING THE DATE OF THE EVENT THAT IS THE BASIS FOR THE FIRST CLAIM. NOTWITHSTANDING THE FOREGOING, FIS SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, DELAY OR PUNITIVE DAMAGES WHATSOEVER (INCLUDING BUT NOT LIMITED TO, DAMAGES FOR LOSS OF BUSINESS PROFITS OR REVENUE, BUSINESS INTERRUPTION, LOSS OF INFORMATION, OR OTHER PECUNIARY LOSS), EVEN IF FIS WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.  

11.2    Disclaimer of Liability for Certain Losses. Notwithstanding anything to the contrary contained in Section 11.1 above, under no circumstances shall FIS be liable for any losses, claims, demands, penalties, actions, causes of action, suits, obligations, liabilities, damages, delays, costs or expenses, including reasonable attorney's fees (collectively, "Losses”) caused, directly or indirectly, in whole or in part, by: (i) Client; (ii) a third party, other than FIS's authorized agents; (iii) use of attachments, features, or devices not authorized by the Specifications; (iv) improper or inadequate conditions at a non-FIS site; (v) improper or incomplete installation not caused by FIS or its authorized agents; (vi) equipment changes, reconfigurations, upgrades or relocations performed by one other than FIS or its authorized agents; (vii) abuse, misuse, alteration or use that is inconsistent with the terms of the Agreement or Specifications; (viii) incorrect or incomplete Data supplied by Client or its agents; (ix) software, hardware or systems not supplied by FIS; (x) a Force Majeure Event which by the exercise of commercially reasonable diligence FIS is unable to prevent; or (xi) a failure that is not directly attributable to FIS or under FIS's direct control. In the event of any error by FIS in processing any Data or preparing any report or file hereunder (hereinafter, “Output”), FIS's sole obligation shall be to correct the error by reprocessing the affected Data or preparing and issuing a new file or report at no additional cost to Client; provided, however, FIS's obligation herein is contingent upon Client notifying FIS of the error within (a) [**CONFIDENTIAL**] business days or [**CONFIDENTIAL**] processing cycles of Client's receipt of Output on a daily basis, or (b) within [**CONFIDENTIAL**] business days or [**CONFIDENTIAL**] processing cycles of Client's receipt of any other Output, including Output on a monthly basis.  

11.3    Disclaimer of Warranties. EXCEPT AS PROVIDED OTHERWISE IN THIS AGREEMENT (WHICH INCLUDES THESE 

GENERAL TERMS, THE ADDENDA, ATTACHMENTS AND STATEMENTS OF WORK HERETO), FIS DISCLAIMS ANY AND ALL OTHER WARRANTIES, CONDITIONS, OR REPRESENTATIONS (EXPRESS OR IMPLIED, ORAL OR WRITTEN) WITH RESPECT TO THE SERVICES, THIRD PARTY SERVICES, SOFTWARE, DELIVERABLES, EQUIPMENT, AND MATERIALS PROVIDED UNDER THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS OR SUITABILITY FOR ANY PARTICULAR PURPOSE, OR ERROR FREE OPERATION (EVEN IF CREATED BY THE INTERNATIONAL SALE OF GOODS CONVENTION, AND WHETHER OR NOT FIS KNOWS, HAS REASON TO KNOW, HAS BEEN ADVISED, OR IS OTHERWISE IN FACT AWARE OF ANY SUCH PURPOSE), WHETHER ALLEGED TO ARISE BY LAW, BY REASON OF CUSTOM OR USAGE IN THE TRADE, OR BY COURSE OF DEALING. IN ADDITION, FIS DISCLAIMS ANY WARRANTY OR REPRESENTATION TO ANY PERSON OTHER THAN CLIENT WITH RESPECT TO THE SERVICES, THIRD PARTY SERVICES, SOFTWARE, DELIVERABLES, EQUIPMENT, AND MATERIALS PROVIDED UNDER THIS AGREEMENT.

12.    Audits.

12.1    Upon at least five (5) business days prior written notice, FIS, its representatives and/or vendors may visit Client's facilities, during normal business hours, for the purpose of: (i) inspecting the location and use of Software, Deliverables and any third party software; and (ii) auditing, monitoring and ensuring compliance with the terms of the Agreement. In addition, each party shall have the right, upon reasonable prior written notice (and no more than once each year), to visit the other party's facilities during normal business hours for the purpose of determining the adequacy of procedures for complying with its obligations relating to Confidential Information under the Agreement.

12.2    Notice for any audit must specify the scope of the information sought and the purpose of the audit. All audits must be reasonable in scope and duration, and conducted at the expense of the auditing party. Client and its representatives may be required to sign FIS's nondisclosure and confidentiality agreement in advance of performing any audit. FIS shall have the right to receive and comment on any report prepared by or on behalf of Client prior to that report being published or disseminated, which publication or dissemination shall be done only pursuant to the confidentiality provisions of this Agreement.

12.3    In lieu of any audit relating to a Service, other than as provided in Section 12.1 above, FIS shall make available to Client upon request a certified copy of its most recent SAS-70, SSAE 16, AUP, Security, Disaster Recovery, PCI, GLBA, NACHA, PIN, TG3 or similar report regarding the Service. The provision of such report(s) shall satisfy all of FIS's audit obligations to Client with respect to the corresponding Service.

12.4    FIS shall permit governmental agencies that regulate Client in connection with a Service performed by FIS to examine FIS's books and records to the same extent as if that Service was being performed by Client on its own premises, subject to FIS's confidentiality and security policies and procedures.

13.    Use of Names and Trademarks. FIS may use Client's name and logo: (i) in a general listing of users of its products and services; and (ii) as reasonably necessary to perform any Services. Other than the foregoing: (a) neither party shall use the other party's logos, trademarks or stock exchange ticker symbol unless pre-approved in writing; and (b) the parties shall consult with each other in preparing any press release or other similar communication that mentions or implies a relationship between them.

14.    Relationship. FIS is an independent contractor. Neither FIS nor any of its representatives are an employee, partner or joint venturer of Client. FIS has the sole obligation to supervise, manage and direct the performance of its obligations under the Agreement. FIS reserves the right to determine who will be assigned to perform its obligations, and to make replacements or reassignments as it deems appropriate. Each party shall be solely responsible for payment of compensation to its respective personnel, and assumes full responsibility for payment of all federal, state, local and foreign taxes or contributions imposed or required under unemployment insurance, social security and income tax laws with respect to such personnel. Except as expressly stated in the Agreement, neither party shall be an agent of the other, nor have any authority to represent the other in any matter. To the extent that FIS engages a subcontractor, FIS shall remain solely responsible for the performance of the subcontracted work. Client shall have no recourse, and shall assert no claim, against any subcontractor of FIS.

15.    Insurance. FIS shall maintain the following minimum insurance coverage and limits: (i) statutory workers' compensation in accordance with all Federal, state, and local requirements; (ii) employer's liability insurance with limits of coverage of $1,000,000 (a) per accident, bodily injury (including death) by accident, (b) per bodily injury (including death) by disease, and (c) per employee for bodily injury (including death) by disease as required by the state in which the Services are performed; (iii) commercial general liability with an aggregate of $2,000,000, and $1,000,000 per occurrence for bodily injury, property damage and personal injury; (iv) automobile liability insurance, including FIS-owned, leased, and non-owned vehicles with a single limit of $1,000,000; (v) property insurance, covering the hardware and other equipment used by FIS to provide the Services; (vi) professional and technology errors and omissions, including network security and privacy liability coverage, with limits of $5,000,000 per claim; (vii) umbrella (excess) liability insurance for the above-referenced commercial general liability and employer's liability coverage in the amount of $5,000,000 per occurrence; and (viii) crime insurance, with coverage extended to include property of Client in the care, custody, or control of FIS, or for which FIS is legally liable, with limits of $5,000,000 per claim.

16.    Termination and Additional Remedies.

16.1    Termination. In addition to any other remedies, either party may terminate the Agreement or an Addendum on thirty (30) days advance written notice if the other party: (i) fails to cure a material breach of the terms of this Agreement (including a failure to comply with the Specifications) within thirty (30) days of receiving written notice to do so; (ii) is the subject of a dissolution, reorganization, insolvency or bankruptcy action that is not dismissed within forty-five (45) days of being filed; (iii) suffers the appointment of a receiver, conservator or trustee; (iv) commits any act related to the Service with the intent to defraud the other party; or (v) discontinues performance under the Agreement because of a binding order of a court or regulatory body. Either party may also terminate a Service or Software on thirty (30) days advance written notice if the other party fails to cure a material breach related to such Service or Software within thirty (30) days of receiving written notice to do so. If a breach cannot reasonably be cured within thirty (30) days (as set forth in Section 16.1(i) above), the non-breaching party may not terminate the Service or Software so long as the breaching party promptly commences work and completes correction within ninety (90) days of receiving written notice of the breach. Notwithstanding the foregoing, FIS may terminate the Agreement or an Addendum if Client (a) fails to maintain required balances in the Settlement Account associated with a Service, and fails to remedy that deficiency within forty-eight (48) hours of FIS requesting it to do so, (b) fails to cure any material violation of applicable Law within thirty (30) days of FIS requesting it to do so, or (c) sells, transfers or assigns all or substantially all of its Service-related accounts to a third party that does not agree in writing with FIS to be bound by the terms of the Agreement.

16.2    In addition to the termination rights set forth above, FIS may terminate a Service, in whole or in part, without penalty, if FIS's agreement to use any third-party software or service upon which the Service relies expires or is terminated; provided, however, that prior to any such termination, FIS shall use commercially reasonable efforts to either (i) extend the applicable expiration or termination date so that its provision of the Service hereunder is not interrupted; (ii) procure a third-party software or service similar to the expired or terminated software or service in order to continue to deliver the Service without interruption and without reduction in quality or increase in cost to Client; or (iii) develop another workaround that allows Client to continue to receive the Service without interruption and without reduction in quality or increase in cost. For the avoidance of doubt, in the event any such workaround developed by FIS pursuant to subsection (iii) has a material adverse impact on the quality of or fees and cost for the applicable Service, Client may elect to terminate such Service pursuant to Section 16.1(i) of these General Terms, subject to the cure period thereunder, without invoking liquidated damages under Section 16.3.

16.3    Liquidated Damages. If a Service is terminated by FIS for Client's uncured (if a cure period if applies) breach or prior to the end of its term pursuant to the terms of Section 16.1 above or as otherwise specifically provided in an Addendum, or if Client terminates a Service prior to the end of its term except as otherwise permitted hereunder, then Client shall pay FIS, in addition to any other amounts owed, liquidated damages equal to: (i) the greater of (a) [**CONFIDENTIAL**] of the average monthly fees incurred for each such Service during the preceding six (6) months (or, during such shorter period if the Service has been in production for less than six (6) months), (b) any minimum fees due for each such Service, or (c) the estimated monthly charge for the Service (as set forth in the applicable pricing attachment), in each case multiplied by the number of months remaining in the then current period applicable to the Service; (ii) any out of pocket expenses directly incurred by FIS as a consequence of the termination; (iii) any credits or incentives given to Client by FIS on or before the Commencement Date of a Service; plus (iv) any unpaid one-time fees relating to each terminated Service. Client shall not be entitled to a refund of any pre-paid amounts. If termination of the obligation to provide such Service occurs prior to the Commencement Date of any such Services, then the amount due under subsection (i) above will be calculated using the minimum monthly amount due for each such Service, if any, or the estimated monthly charge (as set forth in the pricing attachment).  For the avoidance of doubt, any Service that is specifically designated as a non-exclusive service in the applicable Addendum will not be subject to liquidated damages. 

16.4    FIS received a letter from the FDIC dated February 28, 2012 that detailed certain Matters Requiring Attention (the “MRAs”). FIS developed an action plan to address and remedy the MRAs, and the FDIC reviewed FIS's action plan to confirm that the plan will address and resolve the MRAs. FIS has committed to preparing a quarterly update on its efforts to address the MRAs, and will use reasonable commercial efforts to provide the update to Client (directly or via the FIS Client Portal) on or before the 15th day of the following month. The FDIC may have follow-up comments on the MRAs and, FIS will implement other appropriate corrective actions, as applicable, in accordance with the FDIC's recommendations. If (i) FIS does not create an action plan to address the FDIC's follow-up comments on the MRAs within 60 days after receiving written notice of the FDIC's follow-up comments, and does not cure any failure to deliver an adequate action plan within 45 days following written notice of a deficiency from the FDIC, or (ii) FIS's rating under the Uniform Rating System for Information Technology (URSIT) is downgraded to “4” or “5”, then FIS will promptly notify of such failure or downgrade and Client may (but shall not be required to) terminate the contract without payment of Liquidated Damages or standard and customary conversion fees

16.5    Due to the likelihood of irreparable injury, each party shall be entitled to seek an injunction against the other for any breach of confidentiality, indemnification and intellectual property obligations.

17.    Export Restrictions and Unlawful Activity.

17.1    FIS's Confidential Information is subject to export controls under applicable federal and state laws, rules and regulations. Accordingly, Client shall: (i) remain in compliance with all requirements associated with such laws; (ii) cooperate fully with any audit related to such laws; and (iii) not utilize FIS's Confidential Information in any country that is embargoed by the U.S. government. 

Client shall be solely responsible for the importation of FIS's Confidential Information, including obtaining any approval or permit necessary for importation or use.

17.2    Neither Client nor any of its directors, officers, agents, employees or other persons associated with or acting on its behalf: (i) have received or will receive any unlawful contribution, gift, entertainment or other payment from FIS; (ii) is a governmental entity; or (iii) is in violation of, or will violate any applicable anti-corruption or anti-bribery laws, rules or regulations. FIS shall have an irrevocable right to immediately terminate the Agreement or any other relationship with Client if this subsection is breached.

18.    Miscellaneous.

18.1    Neither party may assign, subrogate or transfer any interest, obligation or right arising out of the Agreement, including an assignment by way of a dissolution, consolidation, merger, transfer, reorganization or sale of all or a majority of the assets or stock of a party, without prior written consent from the other party, which shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, either party may assign this Agreement, without the prior written consent of the other party, but with prior notice to the other party, to an Affiliate, provided however: (i) such party's parent company remains the controlling entity of the assignee; (ii) there is no change of control of assignee's parent company from that as exists as the parent company of such party as of the Effective Date of this Agreement; (iii) such assignment does not materially and substantially increase or decrease the scope of this Agreement; and (iv) with respect to an assignment by Client, assignee is not [**CONFIDENTIAL**].  For purposes of this Section, a [**CONFIDENTIAL**].  The terms of the Agreement shall be binding upon and inure to the benefit of permitted successors and assigns.

18.2    The Agreement shall be governed by the laws of the state of New York, without regard to internal principles relating to conflict of laws. Any dispute, difference, controversy or claim arising out of or relating to the Agreement shall be settled by binding arbitration before a single arbitrator in [**CONFIDENTIAL**] in accordance with the Commercial Arbitration Rules (including Procedures for Large, Complex Commercial Disputes) of the American Arbitration Association. Judgment on any resulting award may be entered into by any court having jurisdiction over the parties or their respective property. The arbitrator shall decide any issues submitted in accordance with the provisions and commercial purposes of the Agreement, and shall not have the power to award damages other than those described in the Agreement. The prevailing party in any dispute arising out of the Agreement shall be entitled to, and the arbitrator shall have jurisdiction to award, the recovery of reasonable attorneys' fees, costs and expenses.

18.3    All notices given in connection with the Agreement must be in writing and delivered via overnight delivery. Notices shall be delivered to the address set forth in the Agreement. Notices to FIS shall include a copy (which shall not constitute notice) to the General Counsel at the same address. Telephone communications between FIS and Client and/or Customers may be monitored or recorded without further notice in order to maintain service quality.

18.4    FIS shall not be liable for any loss, damage or failure due to causes beyond its control, including strikes, riots, earthquakes, epidemics, terrorist actions, wars, fires, floods, weather, power failure, telecommunications outage, acts of God or other failures, interruptions or errors not directly caused by FIS (“Force Majeure Event”).  If a Force Majeure Event should cause a delay in either party's performance of its material obligations under the Agreement of more than [**CONFIDENTIAL**] consecutive days, this Agreement may be terminated by either party upon prior written notice to the other party without incurring a termination penalty (including under Section 16.3).

18.5    Each party represents and warrants that it has full legal power and authority to enter into and perform its obligations without any additional consent or approval.

18.6    The Agreement (including these General Terms, all Addenda, and the pricing attachments) together with any attachments thereto, constitute the entire agreement and understanding of the parties with respect to its subject matter. All prior agreements, understandings and representations between FIS and its Affiliates and Client regarding the same or similar services as those addressed hereby, including the Technology Outsourcing Agreement dated November 1, 2008 between Metavante Corporation (an Affiliate of FIS) and Client, as amended, and the Information Technology Services Agreement dated September 1, 2010 between FIS (f/k/a Fidelity Information Services, Inc.) and Client, as amended and supplemented, are superseded by and replaced with this Agreement in their entirety. 

18.7    In the event of a conflict, ambiguity or contradiction in documents, the documents will take precedence over each other in accordance with the following ranking: (i) SOWs; (ii) exhibits, schedules and attachments; (iii) Addenda; (iv) Specifications; and (v) these General Terms. The Agreement may only be modified by a written document signed by both parties. The parties do not intend, nor shall there be, any third party beneficiary rights.

18.8    No waiver of any provisions of the Agreement and no consent to any default under the Agreement shall be effective unless in writing and signed by the party against whom such waiver or consent is claimed. No course of dealing or failure to strictly enforce any provision of the Agreement shall be construed as a waiver of such provision for any party's rights. Waiver by a party of any default by the other party shall not be deemed a waiver of any other default.

18.9    If any provision(s) of this Agreement, including any Addenda, attachments and exhibits hereto, is determined to be invalid, 

illegal, void, or unenforceable by reason of any law, rule or regulation, administrative order, judicial decision, or public policy, such provision(s) shall not affect any other provision of the Agreement, and the Agreement shall be interpreted and construed as if the invalid, illegal, void, or unenforceable provision had not been included to the extent necessary to bring the Agreement within the requirements of such law, rule or regulation, administrative order, judicial decision, or public policy. In addition, in such event, the parties agree to negotiate in good faith to modify the Agreement to carry out the parties' original intent as closely as possible and to the extent lawful. This Agreement shall not be construed more strongly against either party, regardless of who is more responsible for its preparation. The headings that appear in these General Terms are inserted for convenience only and do not limit or extend its scope.

18.10    Termination of the Agreement, an Addendum, a Service or Software shall not impact any right or obligation arising prior to termination, and in any event, Sections 9, 10, 11.1, 11.2, and 18.2 of these General Terms shall survive termination of the Agreement.

	
	
	CONFIDENTIAL TREATMENT REQUESTED

	Portions of this exhibit indicated by “[**CONFIDENTIAL**]” or otherwise clearly marked have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange Commission.

CARD PERSONALIZATION AND FULFILLMENT SERVICES ADDENDUM

[**CONFIDENTIAL**]  This addendum and all following addenda and schedules to the Information Technology Services Agreement entered into on July 11, 2012 by and between Bank of Marin and Fidelity Information Services, LLC have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange Commission.  119 pages were omitted pursuant to the confidential treatment request.form8k20120717exhibit101

EXHIBIT 10.1
EXECUTIVE EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT is entered into as of this 16th day of July, 2012,  by and among Graphic Packaging International, Inc., a Delaware corporation (“Employer”), Graphic Packaging Holding Company, a Delaware corporation (“GPHC”) and Allen Ennis (“Executive”).
W I T N E S S E T H :
WHEREAS, Employer desires to employ Executive on the terms and conditions set forth herein;
WHEREAS, Executive desires to accept such employment on the terms and conditions set forth herein;
WHEREAS, each of Employer, GPHC and Executive agrees that Executive will have a prominent role in the management of the business, and the development of the goodwill, of Employer and its Affiliates (as defined below) and will establish and develop relations and contacts with the principal customers and suppliers of Employer and its Affiliates in the United States and the rest of the world, all of which constitute valuable goodwill of, and could be used by Executive to compete unfairly with, Employer and its Affiliates;
WHEREAS, (i) in the course of his/her employment with Employer, Executive will obtain confidential and proprietary information and trade secrets concerning the business and operations of Employer and its Affiliates in the United States and the rest of the world that could be used to compete unfairly with Employer and its Affiliates; (ii) the covenants and restrictions contained in Sections 8 through 13, inclusive, are intended to protect the legitimate interests of Employer and its Affiliates in their respective goodwill, trade secrets and other confidential and proprietary information; and (iii) Executive desires to be bound by such covenants and restrictions;
NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises contained herein and for other good and valuable consideration, Employer, GPHC and Executive hereby agree as follows:
1.Agreement to Employ.  Upon the terms and subject to the conditions of this Agreement, Employer hereby employs Executive, and Executive hereby accepts employment by Employer.
2.Term; Position and Responsibilities.
(a)Term of Employment.  Unless Executive's employment shall sooner terminate pursuant to Section 7, Employer shall employ Executive for a one year term commencing on the date hereof (the “Initial Term”).  Effective upon the expiration of the Initial Term and of each Additional Term (as defined below), Executive's employment hereunder shall be deemed to be automatically extended, upon the same terms and conditions, for an additional period of one year (each, an “Additional Term”), in each such case, commencing upon the expiration of the Initial Term or the then current Additional Term, as the case may be.  The period during which Executive is employed pursuant to this Agreement, including any extension thereof in accordance with the preceding sentence, shall be referred to as the “Employment Period”.
(b)Position and Responsibilities.  During the Employment Period, Executive shall serve as Senior Vice President, Flexible Division of Employer and have such duties and responsibilities as are customarily assigned to individuals serving in such position and such other duties consistent with Executive's title and position as the Board of Directors of Employer (“Employer's Board”) specifies from time to time.  Executive shall devote all of his/her skill, knowledge and working time to the 

conscientious performance of the duties and responsibilities of such position, except for (i) vacation time as set forth in Section 6(b) and absence for sickness or similar disability and (ii) to the extent that it does not interfere with the performance of Executive's duties hereunder or otherwise violate Employer's code of conduct or similar policies, (A) such reasonable time as may be devoted to service on boards of directors of other corporations and entities, subject to the provisions of Section 9, and the fulfillment of civic responsibilities and (B) such reasonable time as may be necessary from time to time for personal matters.  If so elected or designated by the respective shareholders thereof, Executive shall serve as a member of the Boards of Directors of GPHC, Employer and their respective Affiliates during the Employment Period without additional compensation.
3.Base Salary.  As compensation for the services to be performed by Executive during the Employment Period, Employer shall pay Executive a base salary at an annualized rate of $340,000 for the remainder of 2012.  The Base Salary will be payable in installments on Employer's regular payroll dates.  Should Executive's performance prove satisfactory, his salary shall increase to $350,000, effective January 1, 2013.  Thereafter, employer's Board shall review Executive's base salary annually during the Employment Period and, in its sole discretion, Employer's Board may increase (but may not decrease except as provided in Section 7(d)) such base salary from time to time based upon the performance of Executive, the financial condition of Employer, prevailing industry salary levels and such other factors as Employer's Board shall consider relevant.  (The annual base salary payable to Executive under this Section 3, as the same may be increased from time to time and without regard to any reduction therefrom in accordance with the next sentence, shall hereinafter be referred to as the “Base Salary”.)  The Base Salary payable under this Section 3 shall be reduced to the extent that Executive elects to defer such Base Salary under the terms of any deferred compensation, savings plan or other voluntary deferral arrangement that may be maintained or established by Employer.
4.Incentive Compensation Arrangements.  During the Employment Period, Executive shall participate in Employer's incentive compensation programs for its senior executives existing from time to time, at a level commensurate with his/her position and duties with Employer and based on such performance targets as may be established from time to time by Employer's Board or a committee thereof.  Effective July 1, 2012, Executive's aggregate annual Management Incentive Plan target bonus opportunity shall 70% of Base Salary.    
5.Employee Benefits.  During the Employment Period, employee benefits, including life, medical, dental, accidental death and dismemberment, business travel accident, prescription drug and disability insurance, shall be provided to Executive in accordance with the programs of Employer then available to its senior executives, as the same may be amended and in effect from time to time.  During the Employment Period, Executive shall also be entitled to participate in all of Employer's profit sharing, deferred compensation and savings plans, as the same may be amended and in effect from time to time, applicable to senior executives of Employer.  The benefits referred to in this Section 5 shall be provided to Executive on a basis that is commensurate with Executive's position and duties with Employer hereunder and that is no less favorable than that of similarly situated employees of Employer. 
6.Expenses and Vacation.
(a)Business Travel, Lodging, etc.  Employer shall reimburse Executive for reasonable travel, lodging, meal and other reasonable expenses incurred by him/her in connection with his/her performance of services hereunder upon submission of evidence, satisfactory to Employer, of the incurrence and purpose of each such expense and otherwise in accordance with Employer's business travel reimbursement policy applicable to its senior executives as in effect from time to time.
(b)Vacation.  During the Employment Period, Executive shall be entitled to five weeks of paid vacation on an annualized basis, without carryover accumulation.
7.Termination of Employment.
(a)Termination Due to Death or Disability.  In the event that Executive's employment hereunder terminates due to death or is terminated by Employer due to Executive's Disability (as 

defined below), no termination benefits shall be payable to or in respect of Executive except as provided in Section 7(g).  For purposes of this Agreement, “Disability” shall mean a physical or mental disability that prevents or would prevent the performance by Executive of his/her duties hereunder for a continuous period of six months or longer.  The determination of Executive's Disability shall (i) be made by an independent physician who is reasonably acceptable to Employer and Executive (or his/her representative), (ii) be final and binding on the parties hereto and (iii) be based on such competent medical evidence as shall be presented to such independent physician by Executive and/or Employer or by any physician or group of physicians or other competent medical experts employed by Executive and/or Employer to advise such independent physician.
(b)Termination by Employer for Cause.  Executive may be terminated for cause by Employer for (i) the willful failure of Executive substantially to perform his/her duties hereunder (other than any such failure due to Executive's physical or mental illness) or other willful and material breach by Executive of any of his/her obligations hereunder, after a written demand for substantial performance has been delivered, and a reasonable opportunity to cure has been given, to Executive by Employer's Board, which demand identifies in reasonable detail the manner in which Employer's Board believes that Executive has not substantially performed his/her duties or has breached his/her obligations, (ii) Executive's engaging in willful and serious misconduct that has caused or is reasonably expected to result in material injury to Employer or any of its Affiliates, (iii) Executive's conviction of, or entering a plea of guilty or nolo contendere to, a crime that constitutes a felony, or (iv) Executive's material violation of the requirements of federal or state securities law, rule or regulation, in cases involving fraud or deceit, or violation of Employer's insider trading policy.  Any item of conduct in the previous sentence shall constitute “Cause.”  Executive's conduct need not result in monetary or financial loss to constitute Cause.  Executive shall be permitted to attend a meeting of Employer's Board within 30 days after delivery to him/her of a Notice of Termination (as defined below) pursuant to this Section 7(b) to explain why he/she should not be terminated for Cause and, if following any such explanation by Executive, Employer's Board determines that Employer does not have Cause to terminate Executive's employment, any such prior Notice of Termination delivered to Executive shall thereupon be withdrawn and of no further force or effect.  
(c)Termination Without Cause.  A termination “Without Cause” shall mean a termination of employment by Employer other than pursuant to Section 7(a) or Section 7(b).
(d)Termination by Executive.  Executive may terminate his/her employment for any reason.  A termination of employment by Executive for “Good Reason” shall mean a termination by Executive of his/her employment with Employer following the occurrence, without Executive's consent, of any of the following events: (i) the assignment to Executive of duties that represent a material diminution of the duties that he/she is to assume on the date hereof, (ii) a material reduction in the rate of Executive's Base Salary, unless the reduction does not exceed ten percent (10%) and is applied uniformly percentage-wise to all similarly situated executives, (iii) a material breach by Employer of any of its obligations hereunder, including the failure of Employer to obtain the assumption of this Agreement by any Successor (as defined below) to Employer as contemplated by Section 14, or (iv) except in cases where Employer is promoting Executive, the relocation of Executive's primary office to a location more than 50 miles from the location of Executive's primary office on the date hereof.  A termination by Executive shall not constitute termination for Good Reason unless (x) Executive shall first have delivered to Employer written notice setting forth with specificity the occurrence deemed to give rise to a right to terminate for Good Reason (which notice must be given no later than 30 days after the initial occurrence of such event), (y) there shall have passed a reasonable time (not less than 30 days) within which Employer may take action to correct, rescind or otherwise substantially reverse the occurrence supporting termination for Good Reason as identified by Executive, and (z) Executive's Separation from Service (as defined below) occurs not later than two years following the initial existence of one or more of the conditions giving rise to Good Reason.  

Good Reason shall not include Executive's death or Disability.
(e)Notice of Termination.  Any termination by Employer pursuant to Section 7(a), 7(b) or 7(c), or by Executive pursuant to Section 7(d), shall be communicated by a written Notice of Termination addressed to the other parties to this Agreement.  A “Notice of Termination” shall mean a notice stating that Executive's employment with Employer has been or will be terminated.
(f)Payments and Benefits Upon Separation from Service by Employer Without Cause or by Executive for Good Reason.
(i)Subject to Section 7(f)(iii), in the event of a termination of Executive's employment by Employer Without Cause or a termination by Executive of his/her employment for Good Reason during the Employment Period, Employer shall pay to Executive: 
		
	(A)
	one (1) year's Base Salary, and 

		
	(B)
	an amount equal to the product of (1) the amount of incentive compensation that would have been payable to Executive for the calendar year in which the Date of Termination (as defined below) occurs if Executive had remained employed for the entire calendar year and assuming that all applicable performance criteria had been achieved at target levels, multiplied by (2) a fraction, the numerator of which is equal to the number of days in such calendar year through and including the Date of Termination and the denominator of which is 365 (such product, the “Pro Rata Bonus”), except as otherwise provided in Section 7(f)(ii)(B) below if applicable.  

(ii)Subject to Section 7(f)(iii), upon a termination of Executive's employment by Employer Without Cause or a termination by Executive of his/her employment for Good Reason within one (1) year following a Change in Control (as defined below), Employer shall pay to Executive:
		
	(A)
	one-half (1⁄2) year's Base Salary in addition to the amount described in Section 7(f)(i)(A) above; and 

		
	(B)
	instead of a Pro Rata Bonus described in Section 7(f)(i)(B) above, a target bonus equal to the product of (1) the amount of incentive compensation based on Executive's annual target bonus opportunity that would have been payable to Executive for the calendar year in which the Date of Termination occurs if Executive had remained employed for the entire calendar year and assuming that all applicable performance criteria had been achieved at target levels multiplied by (2) 1.5 (the “Target Bonus”).

(iii)Notwithstanding anything in this Agreement to the contrary, no amounts or benefits shall be paid or distributed pursuant to this Section 7(f) unless and until Executive has incurred a Separation from Service (as defined below) from Employer.  This provision does not prohibit Executive's entitlement to any amount due to a termination of Executive's employment, as provided in this Section 7(f); it simply delays the payment or distribution date until such occurrence.  As used herein, the term “Separation from Service” means a separation from service as defined under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and applicable regulations (without giving effect to any elective provisions that may be available under such definition).  After Executive's Separation from Service, Executive shall have up to 45 days to execute and not revoke a general release in a form reasonably satisfactory to Employer.  If Executive fails to sign a general release or revokes a general release, any payments or other benefits under Section 7(f) otherwise due are forfeited.  With respect to amounts subject to Section 409A of the Code and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (“Code 

Section 409A”), if the period between Executive's Separation from Service and a payment commencement date under this Section 7(f) could span two (2) taxable years of Executive, such payment commencement date will be the first payroll date in the second such taxable year that satisfies all requirements for a payment commencement, including execution and nonrevocation of a general release.
(iv)Payments pursuant to this Section 7(f) shall be made as follows: on Employer's first normal payroll date occurring during the seventh month following the Date of Separation from Service, one-half of the amounts due under Section 7(f)(i)(A) and the full amount due under Section 7(f)(ii)(A) above, shall be paid to Executive.  One-twenty-fourth (1/24) of the amounts due Executive under Section 7(f)(i)(A) shall be payable on each of Employer's subsequent regular payroll dates, until the amounts due are paid in full.  The amounts due Executive under Section 7(f)(i)(B) or 7(f)(ii)(B) above shall be paid in full upon the later of (a) Employer's first normal payroll date occurring during the seventh month following the date of Executive's Separation from Service, or (b) the date that the incentive compensation for the relevant calendar year is paid to Employer's senior executives (but in no event later than March 15 of such payment year).
(v)If Executive is entitled to payments pursuant to Section 7(f)(i), then for the period beginning on the Date of Separation from Service and ending on the first anniversary of the date of Executive's Separation from Service (the “Severance Period”), Employer shall (x) continue to provide to Executive the life, medical, dental, and prescription drug benefits referred to in Section 5 on the same terms then available to Employer's senior executives (the “Continued Benefits”) and (y) reimburse Executive for expenses incurred by him/her for outplacement and career counseling services provided to Executive by a firm selected by Employer for an aggregate amount not in excess of $25,000.  To be eligible for continuation of medical, dental and prescription drug benefits, the Executive must elect continuation of group benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA) by completing the application and returning it to the COBRA Administrator by the deadline specified in the application.  Employer will subsidize the Executive's COBRA premiums during the Severance Period.  The Employer subsidy will end upon the earlier of the last day of the Severance Period or the day COBRA coverage ends for any reason, including loss of plan eligibility under plan terms or applicable law; or qualification for benefits with another employer.  During the Severance Period, Executive will make the same contributions as required of active employees, with said contributions being paid directly to Employer's COBRA Administrator on an after-tax basis.  The Severance Period will count against the Executive's total COBRA continuation period.  To the extent that subsidized healthcare coverage provided to Executive hereunder is treated as discriminatory in favor of a highly compensated individual under Code Section 105(h), Employer will report the amount of the subsidy as taxable income on Executive's IRS Form W-2 for such year.
(vi)Executive shall not have a duty to mitigate the costs to Employer under this Section 7(f), except that Continued Benefits shall be reduced or canceled to the extent of any comparable benefit coverage earned by (whether or not paid currently) or offered to Executive during the Severance Period by a subsequent employer or other Person (as defined below) for which Executive performs services, including but not limited to consulting services.
(vii)The benefits provided Executive pursuant to this Section 7(f) are made in lieu of any payments or benefits, and Executive shall not be entitled to receive any payments or benefits, pursuant to any plan, policy, program or practice providing any bonus, annual incentive or severance compensation.  Notwithstanding the foregoing provisions of this Section 7, if and to the extent that amounts payable under this Section are deemed, for purposes of Code Section 409A, to be in substitution of amounts previously payable under another 

arrangement with respect to Executive, such payments hereunder will be made at the same time(s) and in the same form(s) as such amounts would have been payable under the other arrangement, to the extent required to comply with Code Section 409A.
(g)Payments and Benefits Upon Executive's Death or Disability, Separation from Service by Employer With Cause, or Separation from Service by Executive Without Good Reason.  If Executive's employment shall terminate upon his death or Disability or if Employer shall terminate Executive's employment for Cause or Executive shall terminate his employment without Good Reason during the Employment Period, Employer shall pay Executive his full Base Salary through the Date of Termination; plus, in the case of termination upon Executive's death or Disability, a Pro Rata Bonus within 60 days following such death or Separation from Service, calculated assuming target performance under applicable financial metrics; plus, in the case of termination upon Executive's death, his full Base Salary for the remainder of the pay period in which death occurs and for one month thereafter.  The benefits provided Executive pursuant to this Section 7(g) are made in lieu of any payments or benefits, and Executive shall not be entitled to receive any payments or benefits, pursuant to any plan, policy, program or practice providing any bonus or annual incentive compensation.
(h)Date of Termination.  As used in this Agreement, the term “Date of Termination” shall mean (x) if Executive's employment is terminated by his/her death, the date of his/her death, (y) if Executive's employment is terminated by Employer for Cause, the date on which Notice of Termination is given as contemplated by Section 7(e) or, if later, the date of termination specified in such Notice, or (z) if Executive's employment is terminated by Employer Without Cause, due to Executive's Disability or by Executive for any reason, the date that is 30 days after the date on which Notice of Termination is given as contemplated by Section 7(e) or, if no such Notice is given, 30 days after the date of termination of employment.
(i)Resignation upon Termination.  Unless otherwise mutually agreed by the parties, effective as of any Date of Termination under this Section 7 or otherwise as of the date of Executive's termination of employment with Employer, Executive shall resign, in writing, from all Board memberships and other positions then held by him/her with GPHC, Employer and their respective Affiliates.
(j)Nondisparagement.  Executive agrees not to disparage Employer, GPHC, or the subsidiaries thereof, or the officers, directors or employees of any of them, during the Employment Period or thereafter.
8.Unauthorized Disclosure.  During the period of Executive's employment with Employer and the three-year period following any termination of such employment, without Employer's prior written consent, except to the extent required by an order of a court having jurisdiction or under subpoena from an appropriate government agency, in which event, Executive shall use his/her best efforts to consult with Employer prior to responding to any such order or subpoena, and except as required in the performance of his/her duties hereunder, Executive shall not disclose any confidential or proprietary trade secrets, customer lists, drawings, designs, information regarding product development, marketing plans, sales plans, manufacturing plans, management organization information (including but not limited to data and other information relating to members of the Board of Directors of GPHC, Employer or any of their respective Affiliates or to management of GPHC, Employer or any of their respective Affiliates), operating policies or manuals, business plans, financial records, packaging design or other financial, commercial, business or technical information (a) relating to GPHC, Employer or any of their respective Affiliates or (b) that GPHC, Employer or any of their respective Affiliates may receive belonging to suppliers, customers or others who do business with GPHC, Employer or any of their respective Affiliates (collectively, “Confidential Information”) to any third person unless such Confidential Information has been previously disclosed to the public or is in the public domain (other than by reason of Executive's breach of this Section 8).  The obligations in this paragraph are in addition to, and in no way restrict or operate as a waiver of, statutory or common 

law protection of trade secrets, as defined by law.
9.Non‐Competition.  The Executive acknowledges and agrees that he or she is engaged in business with the Employer in a global market.  Therefore, during the period of Executive's employment with Employer and for one year following the date of Executive's Separation from Service, Executive shall not, directly or indirectly, become employed or otherwise serve in a management capacity, including as a consultant providing services in a management capacity, for any of the following: Caraustar Industries, Inc.; Cascades Inc.; International Paper Company; MeadWestvaco Corporation; OYSTAR Jones & Company, Inc.; Packaging Corporation of America; Rock-Tenn Company; Bankroft Bag, Inc.; Material Motion, Inc.; Bemis Company, Inc.; Mayuror Wovens Private Limited; Coating Excellence International, LLC; Polytex Fibers Corporation; Commercial Packaging Company, Inc.; Seatec Packaging Mfg. Corp.; Expopack Holding Corporation; UFLEX Limited; FOTAI Vietnam Enterprise Corporation LTD; Vinh Hoa Plastic Corp.; Hood Packaging Corporation; Gateway Packaging Company; Werthan Packaging, Inc.; Duro Bag Manufacturing Compay; or any of their current subsidiaries or successors in the United States.
10.Non‐Solicitation of Employees.  For one year following the date of Executive's Separation from Service, Executive shall not, directly or indirectly, for his/her own account or for the account of any other Person, solicit for employment, employ or otherwise interfere with the relationship of GPHC, Employer or any of their respective subsidiaries with, any person who is employed by GPHC, Employer or any of their current subsidiaries.
11.Non‐Solicitation of Customers.  The Executive acknowledges and agrees that he or she is engaged in business with the Employer in a global customer market.  For one year following the date of Executive's Separation from Service, Executive shall not, directly or indirectly, for his/her own account or for the account of any other Person anywhere in the United States, the European Union, Canada or Mexico, solicit or otherwise attempt to establish any business relationship for purposes of engaging in the manufacture, sales or converting of paperboard and paperboard packaging with any Person who is or was a Customer, client or distributor of GPHC or Employer or any of their Affiliates at any time within the three years prior to Executive's Date of Termination.
12.Return of Documents.  In the event of the termination of Executive's employment for any reason, Executive shall deliver to Employer all of (a) the property of each of GPHC, Employer and their respective Affiliates and (b) the non-personal documents and data of any nature and in whatever medium of each of GPHC, Employer and their respective Affiliates, and he/she shall not take with him/her any such property, documents or data or any reproduction thereof, or any documents containing or pertaining to any Confidential Information.  Whether documents or data are “personal” or “non‐personal” shall be determined as follows:  Executive shall present any documents or data that he/she wishes to take with him/her to the chief legal officer of Employer for his/her review.  The chief legal officer shall make an initial determination whether any such documents or data are personal or non-personal, and with respect to such documents or data that he/she determines to be non-personal, shall notify Executive either that such documents or data must be retained by Employer or that Employer must make and retain a copy thereof before Executive may take such documents or data with him/her.
13.Injunctive Relief with Respect to Covenants; Forum, Venue and Jurisdiction.  Executive acknowledges and agrees that the covenants, obligations and agreements of Executive contained in Sections 8, 9, 10, 11, 12, and 13 relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants, obligations or agreements will cause Employer irreparable injury for which adequate remedies are not available at law.  Therefore, Executive agrees that Employer shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain Executive from committing any violation of such covenants, obligations or agreements.  These injunctive remedies are cumulative and in addition to any other rights and remedies Employer may have.  Executive hereby irrevocably submits to the jurisdiction of the superior courts of Cobb County, Georgia and the federal courts of the Northern District of Georgia, in respect of the injunctive remedies set forth in this Section 13 and the interpretation and enforcement of Sections 8, 

9, 10, 11, 12, and 13 insofar as such interpretation and enforcement relate to any request or application for injunctive relief or damages connected therewith in accordance with the provisions of this Section 13, and the parties hereto hereby irrevocably waive any and all objections and defenses based on forum, venue or personal or subject matter jurisdiction as they may relate to an application for such injunctive relief or damages connected therewith in a suit or proceeding brought before such a court in accordance with the provisions of this Section 13.  All disputes not relating to any request or application for injunctive relief or damages connected therewith in accordance with this Section 13 shall be resolved by arbitration in accordance with Section 18(b).
14.Assumption of Agreement.  Employer shall require any Successor thereto, by agreement in form and substance reasonably satisfactory to Executive, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Employer would be required to perform it if no such succession had taken place.  
15.Entire Agreement.  With the exception of the terms outlined in Employer's July 1, 2012 offer letter to Executive (the “Offer Letter”), which is hereby incorporated by reference and made a part of this Agreement, this Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof.  The parties agree that in the event of any conflict between the terms of the Offer Letter and the terms of this Agreement, the terms of the Offer Letter shall control.  All prior correspondence, other than the Offer Letter, and proposals (including but not limited to summaries of proposed terms) and all prior promises, representations, understandings, arrangements and agreements relating to such subject matter (including but not limited to those made to or with Executive by any other Person and those contained in any prior employment, consulting or similar agreement entered into by Executive and Employer or any predecessor thereto or Affiliate thereof) are merged herein and superseded hereby.  
16.Indemnification.  Employer hereby agrees that it shall indemnify and hold harmless Executive to the fullest extent permitted by Delaware law from and against any and all liabilities, costs, claims and expenses, including all costs and expenses incurred in defense of litigation (including attorneys' fees), arising out of the employment of Executive hereunder, except to the extent arising out of or based upon the gross negligence or willful misconduct of Executive.  Costs and expenses incurred by Executive in defense of such litigation (including attorneys' fees) shall be paid by Employer in advance of the final disposition of such litigation upon receipt by Employer of (a) a written request for payment, (b) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses for which payment is being sought, and (c) an undertaking adequate under Delaware law made by or on behalf of Executive to repay the amounts so paid if it shall ultimately be determined that Executive is not entitled to be indemnified by Employer under this Agreement, including but not limited to as a result of such exception.
17.Code Section 409A.
(a)General.  This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Code Section 409A.  Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed.  Neither Employer nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by Executive as a result of the application of Code Section 409A.
(b)Six-Month Delay in Certain Circumstances.  Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Code Section 409A would otherwise be payable or distributable under this Agreement by reason of Executive's Separation from Service during a period in which he or she is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by Employer under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes): 
(i)the amount of such non-exempt deferred compensation that would otherwise be payable during the six-month period immediately following Executive's Separation from 

Service will be accumulated through and paid or provided on the first normal payroll date in the seventh month following Executive's Separation from Service (or, if Executive dies during such period, within 30 days after Executive's death) (in either case, the “Required Delay Period”); and
(ii)the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.
For purposes of this Agreement, the term “Specified Employee” has the meaning given such term in Code Section 409A:  provided, however, that Employer's Specified Employees and its application of the six-month delay rule of Code Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the Board or a committee thereof, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of Employer, including this Agreement.
(c)Treatment of Installment Payments.  Each payment of termination benefits under Section 7(f) of this Agreement, including, without limitation, each installment payment and each provision of, or payment or reimbursement of premiums for, the Continued Benefits under Section 7(f)(v), shall be considered a separate payment, as described in Treas. Reg. Section 1.409A-2(b)(2), for purposes of Code Section 409A.  
(d)Timing of Reimbursements and In-kind Benefits.  If Executive is entitled to be paid or reimbursed for any taxable expenses under Sections 6(a), 7(f)(v), 18(b) or otherwise and such payments or reimbursements are includible in Executive's federal gross taxable income, the amount of such expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year (other than the outplacement benefits under Section 7(f)(v)(y)), and the reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was incurred.  Executive's rights to payment or reimbursement of expenses pursuant to Section 18(b) shall expire at the end of the 20 years after the Date of Termination.  No right of Executive to reimbursement of expenses under Sections 6(a), 7(f)(v), 18(b) or otherwise shall be subject to liquidation or exchange for another benefit.
18.Miscellaneous.
(a)Binding Effect; Assignment.  This Agreement shall be binding on and inure to the benefit of Employer, GPHC and their respective successors and permitted assigns.  This Agreement shall also be binding on and inure to the benefit of Executive and his/her heirs, executors, administrators and legal representatives.  This Agreement shall not be assignable by any party hereto without the prior written consent of the other parties hereto, except as provided pursuant to this Section 18(a).  Each of GPHC and Employer may effect such an assignment without prior written approval of Executive upon the transfer of all or substantially all of its business and/or assets (by whatever means), provided that the Successor to Employer shall expressly assume and agree to perform this Agreement in accordance with the provisions of Section 14.
(b)Arbitration.  Any dispute or controversy arising under or in connection with this Agreement (except in connection with any request or application for injunctive relief or damages connected therewith in accordance with Section 13) shall be resolved by binding arbitration.  The arbitration shall be held in the city of Atlanta, Georgia and except to the extent inconsistent with this Agreement, shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect at the time of the arbitration, and otherwise in accordance with principles which would be applied by a court of law or equity.  The arbitrator shall be acceptable to both Employer and Executive.  If the parties cannot agree on an acceptable arbitrator, the dispute shall be heard by a panel of three arbitrators, one appointed by Employer, one appointed by Executive, and the third appointed by the other two arbitrators.  All expenses of arbitration shall be borne by the party who incurs the expense, or, in the case of joint expenses, by both parties in equal portions, except that, in the event Executive prevails on the principal issues of such dispute or controversy, all 

such expenses shall be borne by Employer.
(c)Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without reference to principles of conflicts of laws.
(d)Taxes.  Employer may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment and social insurance taxes, as shall be required by law.
(e)Amendments.  No provision of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is approved by Employer's Board or a Person authorized thereby and is agreed to in writing by Executive and, in the case of any such modification, waiver or discharge affecting the rights or obligations of GPHC, is approved by the Board of Directors of GPHC or a Person authorized thereby.  No waiver by any party hereto at any time of any breach by any other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No waiver of any provision of this Agreement shall be implied from any course of dealing between or among the parties hereto or from any failure by any party hereto to assert its rights hereunder on any occasion or series of occasions.
(f)Severability.  In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.
(g)Notices.  Any notice or other communication required or permitted to be delivered under this Agreement shall be (i) in writing, (ii) delivered personally, by courier service or by certified or registered mail, first‐class postage prepaid and return receipt requested, (iii) deemed to have been received on the date of delivery or, if so mailed, on the third business day after the mailing thereof, and (iv) addressed as follows (or to such other address as the party entitled to notice shall hereafter designate in accordance with the terms hereof):
(A)    If to Employer or GPHC, to it at:
814 Livingston Court, S.E.
Marietta, GA 30067
Attention:  General Counsel

		
	(B)
	if to Executive, to him/her at his/her residential address as currently on file with Employer.

(h)Voluntary Agreement; No Conflicts.  Executive, Employer and GPHC each represent that they are entering into this Agreement voluntarily and that Executive's employment hereunder and each party's compliance with the terms and conditions of this Agreement will not conflict with or result in the breach by such party of any agreement to which he/she or it is a party or by which he/she or it or his/her or its properties or assets may be bound.
(i)Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
(j)Headings.  The section and other headings contained in this Agreement are for the convenience of the parties only and are not intended to be a part hereof or to affect the meaning or interpretation hereof.
(k)Certain Definitions.
“Affiliate”:  with respect to any Person, means any other Person that, directly or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with the first Person, including but not limited to a Subsidiary of the first Person, a Person of which the first Person is a Subsidiary, or another Subsidiary of a Person of which the first Person is also a Subsidiary.
“Change in Control” shall mean any of the following events:  

		
	(1)
	The acquisition by any Person of Beneficial Ownership (as defined in Rule 13d-3 of the General Rules and Regulations under the Exchange Act) of thirty percent (30%) or more of the combined voting power of the then outstanding voting securities of GPHC entitled to vote generally in the election of Employer's Board (the “Outstanding GPHC Voting Securities”); provided, however, that for purposes of this section, the following acquisitions shall not constitute a Change of Control: (i) any acquisition by a Person who on the Effective Date is the Beneficial Owner of thirty percent (30%) or more of the Outstanding GPHC Voting Securities, (ii) any acquisition by GPHC or any of its Subsidiaries, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by GPHC or any of its Subsidiaries, (iv) any acquisition by a shareholder who is a party to the Stockholders Agreement, dated July 7, 2007, or (v) any acquisition by any corporation pursuant to a transaction which complies with subparagraphs (x), (y), and (z) of Section (3) below; 

		
	(2)
	Individuals who constitute the Employer's Board as of the Effective Date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Employer's Board, provided that any individual becoming a Director subsequent to the Effective Date whose election, or nomination for election by GPHC's shareholders, was approved by a vote of at least a majority of the Directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election or removal of the Directors of GPHC or other actual or threatened solicitation of proxies of consents by or on behalf of a Person other than the Employer's Board; 

		
	(3)
	Consummation of a reorganization, merger, or consolidation to which GPHC is a party (a “Business Combination”), in each case unless, following such Business Combination: (x) all or substantially all of the individuals and entities who were the Beneficial Owners of Outstanding GPHC Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the outstanding voting securities entitled to vote generally in the election of Directors of the corporation resulting from the Business Combination (including, without limitation, a corporation which as a result of such transaction owns GPHC either directly or through one or more subsidiaries) (the “Successor Entity”) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding GPHC Voting Securities; and (y) no Person (excluding any Successor Entity or any employee benefit plan, or related trust, of the Company or such Successor Entity) beneficially owns, directly or indirectly, thirty percent (30%) or more of the combined voting power of the then outstanding voting securities of the Successor Entity, except to the extent that such ownership existed prior to the Business Combination; and (z) at least a majority of the members of the board of directors of the Successor Entity were members of the Incumbent Board (including persons deemed to be members of the Incumbent Board by 

reason of the proviso to paragraph (2) of this section) at the time of the execution of the initial agreement or of the action of the Employer's Board providing for such Business Combination; 
		
	(4)
	The sale, transfer or other disposition of all or substantially all of the assets of GPHC; or 

		
	(5)
	Approval by the shareholders of GPHC of a complete liquidation or dissolution of GPHC.

“Control”:  with respect to any Person, means the possession, directly or indirectly, severally or jointly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities, by contract or credit arrangement, as trustee or executor, or otherwise.
“Person”:  any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other entity.
“Subsidiary”:  with respect to any Person, each corporation or other Person in which the first Person owns or Controls, directly or indirectly, capital stock or other ownership interests representing 50% or more of the combined voting power of the outstanding voting stock or other ownership interests of such corporation or other Person.
“Successor”:  of a Person means a Person that succeeds to the first Person's assets and liabilities by merger, liquidation, dissolution or otherwise by operation of law, or a Person to which all or substantially all the assets and/or business of the first Person is transferred.

IN WITNESS WHEREOF, Employer and GPHC have duly executed this Agreement by their authorized representatives, and Executive has hereunto set his/her hand, in each case effective as of the date first above written.
GRAPHIC PACKAGING HOLDING COMPANY

By:  /s/ Cynthia Baerman                    
Cynthia Baerman
Senior Vice President, Human Resources

GRAPHIC PACKAGING INTERNATIONAL, INC.

By:  /s/ Cynthia Baerman                    
Cynthia Baerman
Senior Vice President, Human Resources

ALLEN ENNIS:

/s/ Allen Ennis

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