Document:

Exhibit 4.12

 

Date 13 February 2008

 

 

 

BRITANNIA BULK PLC

as Borrower

 

- and -

 

THE BANKS AND
FINANCIAL INSTITUTIONS

listed in
Schedule 1

as Lenders

 

- and -

 

LLOYDS TSB BANK
PLC

as Agent

and as
Security Trustee

 

 

LOAN AGREEMENT

 

 

relating to a bridge term loan facility of up to

US$30,000,000

to finance m.v.s “FRANKLIN” (tbr “ICE TRADER II”)

and “BAFFIN” (tbr “ICE POWER II”)

 

Watson, Farley & Williams

London

 

 

 

 

INDEX

 

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  FACILITY

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  POSITION OF
  THE LENDERS

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  DRAWDOWN

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  INTEREST

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  INTEREST
  PERIODS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  DEFAULT
  INTEREST

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  REPAYMENT AND
  PREPAYMENT

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  CONDITIONS
  PRECEDENT

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  GENERAL
  UNDERTAKINGS

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  CORPORATE
  UNDERTAKINGS

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  INSURANCE

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  SHIP
  COVENANTS

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  SECURITY
  COVER

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  PAYMENTS AND
  CALCULATIONS

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  APPLICATION
  OF RECEIPTS

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  APPLICATION
  OF EARNINGS

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  EVENTS OF
  DEFAULT

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  FEES AND
  EXPENSES

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  INDEMNITIES

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  NO SET-OFF OR
  TAX DEDUCTION

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  ILLEGALITY,
  ETC

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  INCREASED
  COSTS

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  SET-OFF

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  TRANSFERS AND
  CHANGES IN LENDING OFFICES

  	
   

  	
  47

  

 

 

	
  27

  	
   

  	
  VARIATIONS
  AND WAIVERS

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  NOTICES

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  SUPPLEMENTAL

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  LAW AND
  JURISDICTION

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1
  LENDERS AND COMMITMENTS

  	
   

  	
  56

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2
  DRAWDOWN NOTICE

  	
   

  	
  57

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 3
  CONDITION PRECEDENT DOCUMENTS

  	
   

  	
  58

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 4
  TRANSFER CERTIFICATE

  	
   

  	
  61

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 5
  MANDATORY COST FORMULA

  	
   

  	
  65

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 6
  LIST OF APPROVED BROKERS

  	
   

  	
  67

  
	
   

  	
   

  	
   

  
	
  EXECUTION
  PAGE

  	
   

  	
  68

  

 

 

THIS
AGREEMENT is made on 13
February 2008

 

BETWEEN:

 

(1)                                  BRITANNIA
BULK PLC,  a
company incorporated in England (Company Reg. No. 03842976) whose
registered office is at Dexter House, 2 Royal Mint Court, London EC3N 4QN,
United Kingdom (the “Borrower”);

 

(2)                                  THE BANKS
AND FINANCIAL INSTITUTIONS  listed in
Schedule 1, as Lenders;

 

(3)                                  LLOYDS
TSB BANK PLC, as Agent; and

 

(4)                                  LLOYDS
TSB BANK PLC, as Security  Trustee.

 

BACKGROUND

 

The Lenders have agreed to make available to the
Borrower a facility of up to $30,000,000 for the purpose of:

 

(A)                              providing funds to the
Borrower to on-lend to Enterprise Bulk Services S.A. to finance part of the
purchase price of a second-hand 40,000 dwt ice class dry bulk vessel “BAFFIN”
(tbr “ICE POWER II”); and

 

(B)                                providing funds to the
Borrower to on-lend to Oceanic Bulk Services S.A. to finance part of the
purchase price of a second-hand 40,000 dwt ice class dry bulk vessel “FRANKLIN”
(tbr “ICE TRADER II”).

 

IT
IS AGREED as follows:

 

1                                         INTERPRETATION

 

1.1                               Definitions.  Subject to Clause 1.5, in this Agreement:

 

“Accounts Security Deed”
means a deed creating security in respect of the Earnings Account and the
Collateral Account in the Agreed Form;

 

“Affected Lender”
has the meaning given in Clause 5.6;

 

“Agency and Trust Agreement”
means the agency and trust agreement dated the same date as this Agreement and
made between the same parties;

 

“Agent” means
Lloyds TSB Bank plc, acting in such capacity through its office at 10 Gresham
Street, London EC2V 7AE, or any successor of it appointed under clause 5 of the
Agency and Trust Agreement;

 

“Agreed Form”
means in relation to any document, that document in the form approved in
writing by the Agent or as otherwise approved in accordance with any other
approval procedure specified in any relevant provision of any Finance Document;

 

“Allocated
Amount”  means for Clause 8.6,
on any date the outstanding amount of the Loan multiplied by a fraction, the
numerator of which will be the appraised market value (determined in accordance
with Clause 15.3) of the Ship being sold or which is the subject of a Total Loss
and the denominator of which is the latest aggregate appraised market value
(determined in accordance with Clause 15.3) of both Ships;

 

“Approved
Broker”  means each
independent sale and purchase shipbroker approved by the Agent and listed at
Schedule 6 hereto;

 

 

“Approved Manager”
means, in relation to each Ship, Svendborg Ship Management A/S whose registered
office is at Det Gule Pakhus, Havnepladsen 3A, 3.sal DK-5700 Svendborg, Denmark
or any other company which the Agent may, with the authorisation of the
Majority Lenders, approve from time to time as the manager of the Ship;

 

“Availability Period”
means the period commencing on the date of this Agreement and ending on:

 

(a)                                  20 February 2008 (or such later date
as the Agent may, with the authorisation of the Majority Lenders, agree with
the Borrower); or

 

(b)                                 if earlier, the date on which the Total
Commitments are fully borrowed, cancelled or terminated in accordance with this
Agreement;

 

“BAFFIN”  means the 40,000 dwt ice class dry bulk
vessel of 27,078 gross registered tons and 13,844 net registered tons currently
named “BAFFIN” and registered in the name of the Baffin Seller on the German
flag and bareboat registered in Antigua and Barbuda and to be purchased by the
relevant Owner pursuant to the Baffin MOA and to be registered in the name of
the relevant Owner under Panamanian flag with the name “ICE POWER II”;

 

“Baffin
MOA”  means the memorandum of
agreement dated 22 January 2008 made between the Baffin Seller and the
Borrower as amended by addendum no. 1 dated 22 January 2008 made between
the Baffin Seller and the relevant Owner pursuant to which the Baffin Seller
has agreed to sell, and the relevant Owner has agreed to purchase, BAFFIN for a
purchase price of $35,500,000;

 

“Baffin
Seller”  means MS “Baffin”
GmbH and Co. KG, a corporation organised and existing under the laws of Germany
and having its registered office at Stavendamm 4a, 28195, Bremen, Germany;

 

“Bond
Documents”  means the
Indenture, the 11% senior secured notes issued thereunder due 2011, any
supplemental indenture entered into in connection therewith (including
supplemental indentures pursuant to which the Owners guarantee the notes), the
Security Documents (as defined in the Indenture) and the other documents
entered into in connection therewith;

 

“Business Day”
means a day on which banks are open in London and, in respect of a day on which
a payment is required to be made under a Finance Document, also in New York
City;

 

“Change of Control” 
means the occurrence of one or more of the following
events:

 

(a)                                  any “person” or “group” (as
such terms are used in Sections 13(d) and 14(d) of the Exchange Act),
other than one or more Permitted Holders, is or becomes the “beneficial owner”
(as defined in Rule 13d 3 and 13d 5 under the Exchange Act, except that
for purposes of this clause (a) such person shall be deemed to have “beneficial
ownership” of all shares that any such person has the right to acquire, whether
such right is exercisable immediately or only after the passage of time), directly
or indirectly, of more than 50% of the total voting power of the voting shares
of the Borrower or otherwise has the right or ability by voting power, contract
or otherwise to elect or designate for election a majority of the board of
directors of the Borrower;

 

(b)                                 individuals who on the date of
this Agreement constituted the board of directors of the Borrower (together
with any new directors whose election by such board of directors or whose
nomination for election by the shareholders of the Borrower was approved by a
vote of a majority of the directors of the Borrower then still in office who
were either directors on the date of this Agreement or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the board of directors of the Borrower then in office;

 

 

2

 

(c)                                  the adoption or approval by the board of
directors or shareholders of the Borrower, of a plan relating to the
liquidation or dissolution of the Borrower; or

 

(d)                                 the merger (which for purposes of this
clause includes a statutory share exchange) or consolidation of the Borrower
with or into another entity or the merger or consolidation of another entity
with or into the Borrower, or the sale, lease, exchange or other transfer (in
one transaction or a series of related transactions) of all or substantially
all the assets of the Borrower (determined on a consolidated basis) to another
entity (other than, in all such cases, an entity that is controlled by one or
more Permitted Holders) or group of related persons for purposes of Section 13(d) of
the Exchange Act, other than a transaction following which (A) in the case
of a merger or consolidation transaction, securities that represented 100% of
the voting shares of the Borrower immediately prior to such transaction (or
other securities into which such securities are converted as part of such
merger or consolidation transaction) constitute at least a majority of the
voting power of the voting shares of the surviving entity (or any parent
thereof) in such merger or consolidation transaction and (B) in the case
of such a sale, lease, exchange or other transfer of assets transaction, the
transferee entity becomes a Subsidiary of the transferor of such assets;

 

“Classification
Society” means Germanischer Lloyd, or such other classification
society as the Agent shall approve from time to time;

 

“Collateral
Account” means an account in the joint name of the Owners with the
Agent in London designated “LTSB re: Enterprise Bulk Services S.A. and Oceanic
Bulk Services S.A. - Collateral Account”, with account number 11595601, or any
other account (with that or another office of the Agent or with a bank or
financial institution other than the Agent) which is designated by the Agent as
the Collateral Account for the purposes of this Agreement;

 

 “Commitment” means, in relation to a Lender, the amount set
opposite its name in Schedule 1, or, as the case may require, the amount
specified in the relevant Transfer Certificate, as that amount may be reduced,
cancelled or terminated in accordance with this Agreement (and “Total Commitments” means the aggregate of
the Commitments of all the Lenders);

 

“Contractual Currency”
has the meaning given in Clause 21.4;

 

“Contribution”
means, in relation to a Lender, the part of the Loan which is owing to that
Lender;

 

“Creditor Party”
means the Agent, the Security Trustee or any Lender, whether as at the date of
this Agreement or at any later time;

 

“Dollars” and “$” means the lawful currency for the time being of the
United States of America;

 

“Drawdown Date”
means the date requested by the Borrower for the Loan to be made, or (as the
context requires) the date on which the Loan is actually made;

 

“Drawdown Notice”
means a notice in the form set out in Schedule 2 (or in any other form which
the Agent approves or reasonably requires);

 

3

 

“Earnings”
means, in relation to a Ship, all moneys whatsoever which are now, or later become,
payable (actually or contingently) to the Owner of that Ship or the Security
Trustee and which arise out of the use or operation of that Ship, including
(but not limited to):

 

(a)           except to the extent that they fall
within paragraph (b);

 

(i)            all freight, hire and passage
moneys;

 

(ii)                                  compensation payable to the Owner or the
Security Trustee in the event of requisition of the Ship for hire;

 

(iii)          remuneration for salvage and towage
services;

 

(iv)          demurrage and detention moneys;

 

(v)                                 damages for breach (or payments for
variation or termination) of any charterparty or other contract for the
employment of the Ship; and

 

(vi)                              all moneys which are at any time payable
under any Insurances in respect of loss of hire; and

 

(b)                                 if and whenever the Ship is employed on
terms whereby any moneys falling within paragraphs (a)(i) to (vi) are
pooled or shared with any other person, that proportion of the net receipts of
the relevant pooling or sharing arrangement which is attributable to the Ship;

 

“Earnings Account”
means an account in the joint names of the Owners with the Agent in London
designated “LTSB re: Enterprise Bulk Services S.A. and Oceanic Bulk Services
S.A. - Earnings Account”, with account number 11595636, or any other account
(with that or another office of the Agent or with a bank or financial
institution other than the Agent) which is designated by the Agent as the
Earnings Account for the purposes of this Agreement;

 

“Environmental Claim”
means:

 

(a)                                  any claim by any governmental, judicial or
regulatory authority which arises out of an Environmental Incident or an
alleged Environmental Incident or which relates to any Environmental Law; or

 

(b)                                 any claim by any other person which relates
to an Environmental Incident or to an alleged Environmental Incident,

 

and “claim” means a
claim for damages, compensation, fines, penalties or any other payment of any
kind whether or not similar to the foregoing; an order or direction to take, or
not to take, certain action or to desist from or suspend certain action; and
any form of enforcement or regulatory action, including the arrest or
attachment of any asset;

 

“Environmental Incident”
means:

 

(a)                                  any release of Environmentally Sensitive
Material from a Ship; or

 

(b)                                 any incident in which Environmentally Sensitive
Material is released from a vessel other than a Ship and which involves a
collision between a Ship and such other vessel or some other incident of
navigation or operation, in either case, in connection with which a Ship is
actually or potentially likely to be arrested, attached, detained or injuncted
and/or a Ship and/or the Borrower or an Owner (as the case may be) and/or any
operator or manager of a Ship is at fault or allegedly at fault or otherwise
liable to be subject to any legal or administrative action; or

 

4

 

(c)                                  any other incident in which Environmentally
Sensitive Material is released otherwise than from a Ship and in connection
with which a Ship is actually or potentially likely to be arrested and/or where
the Borrower or an Owner (as the case may be) and/or any operator or manager of
a Ship is at fault or allegedly at fault or otherwise liable to any legal or
administrative action;

 

“Environmental Law”
means any law relating to pollution or protection of the environment, to the
carriage of Environmentally Sensitive Material or to actual or threatened
releases of Environmentally Sensitive Material;

 

“Environmentally Sensitive
Material” means oil, oil products and any other substance (including
any chemical, gas or other hazardous or noxious substance) which is (or is
capable of being or becoming) polluting, toxic or hazardous;

 

“Event of Default”
means any of the events or circumstances described in Clause 19.1;

 

“Exchange
Act”  means the Securities
Exchange Act of 1934 of the United States;

 

“Finance Documents”
means:

 

(a)           this Agreement;

 

(b)           the Agency and Trust Agreement;

 

(c)           the Guarantees;

 

(d)           the General Assignments;

 

(e)           the Mortgages;

 

(f)            the Accounts Security Deed; and

 

(g)                                 any other document (whether creating a
Security Interest or not) which is executed at any time by the Borrower or any
other person as security for, or to establish any form of subordination or
priorities arrangement in relation to, any amount payable to the Lenders under
this Agreement or any of the other documents referred to in this definition;

 

“Financial Indebtedness”
means, in relation to a person (the “debtor”), a
liability of the debtor:

 

(a)                                  for principal, interest or any other sum
payable in respect of any moneys borrowed or raised by the debtor;

 

(b)                                 under any loan stock, bond, note or other
debt security issued by the debtor;

 

(c)                                  under any acceptance credit, guarantee or
letter of credit facility or dematerialised equivalent made available to the
debtor;

 

(d)                                 under a financial lease, a deferred
purchase consideration arrangement (other than trade and accounts payable
incurred in the ordinary course of business) or any other agreement having the
commercial effect of a borrowing or raising of money by the debtor;

 

5

 

(e)                                  under any foreign exchange transaction, any
interest or currency swap or any other kind of derivative transaction entered
into by the debtor or, if the agreement under which any such transaction is
entered into requires netting of mutual liabilities, the liability of the
debtor for the net amount; or

 

(f)                                    under a guarantee, indemnity or similar
obligation entered into by the debtor in respect of a liability of another
person which would fall within paragraphs (a) to (e) if the
references to the debtor referred to the other person;

 

“FRANKLIN”  means the 40,000 dwt ice class dry bulk
vessel of 27,078 gross registered tons and 13,844, net registered tons
currently named “FRANKLIN” and registered in the name of the Franklin Seller on
the German flag and bareboat registered in Antigua and Barbuda and to be
purchased by the relevant Owner pursuant to the Franklin MOA and to be
registered in the name of the relevant Owner under Panamanian flag with the name
“ICE TRADER II;

 

“Franklin
MOA”  means the memorandum of
agreement dated 22 January 2008 made between the Franklin Seller and the
Borrower as amended by addendum no. 1 dated 22 January 2008 made between
the Franklin Seller and the relevant Owner pursuant to which the Franklin
Seller has agreed to sell, and the relevant Owner has agreed to purchase,
FRANKLIN for a purchase price of $35,500,000;

 

“Franklin
Seller”  means MS “Franklin”
GmbH and Co. KG, a corporation organised and existing under the laws of Germany
and having its registered office at Stavendamm 4a, 28195 Bremen, Germany;

 

“GAAP”
means generally accepted accounting principles in the United States of America;

 

“General
Assignment” means, in relation to a Ship, the assignment of the
Earnings, the Insurances and any Requisition Compensation in the Agreed Form;

 

“Guarantee”
means, in relation to an Owner, a guarantee and indemnity in respect of the
liabilities of the Borrower under this Agreement to be executed by such Owner
under this Agreement in the Agreed Form;

 

 “IFRS” means international accounting
standards within the meaning of the IAS Regulations 1606/2002 to the extent
applicable to the relevant financial statements;

 

“Indenture”
means an indenture dated 16 November 2006 entered into between the
Borrower, the guarantors named as guarantors therein and Wilmington Trust
Company as trustee;

 

“Insurances”
means, in relation to a Ship:

 

(a)                                  all policies and contracts of insurance,
including entries of that Ship in any protection and indemnity or war risks
association, which are effected in respect of that Ship, its Earnings or
otherwise in relation to it; and

 

(b)                                 all rights and other assets relating to, or
derived from, any of the foregoing, including any rights to a return of a
premium,

 

but excluding any insurances taken out for
the sole benefit of the Creditor Parties, or any of them;

 

“Interest Period”
means a period determined in accordance with Clause 6;

 

6

 

“ISM Code” means the International Safety Management Code
(including the guidelines on its implementation), adopted by the International
Maritime Organisation, as the same may be amended or supplemented from time to
time (and the terms “safety management system”,
“Safety Management Certificate” and “Document of Compliance” have the same meanings as are given
to them in the ISM Code);

 

“ISPS
Code”  means the International Ship and Port
Facility Security Code as adopted by the International Maritime Organisation,
as the same may be amended or supplemented from time to time;

 

“ISSC”  means a
valid and current International Ship Security Certificate issued under the ISPS
Code;

 

“Lender” means a bank or financial institution listed in Schedule 1
and acting through its branch indicated in Schedule 1 (or through another
branch notified to the Borrower under Clause 26.14) or its transferee,
successor or assign;

 

“LIBOR” means,
in relation to any period for which an interest rate is to be determined under
any provision of a Finance Document:

 

(a)           the applicable Screen Rate; or

 

(b)                                 if no Screen Rate is available for that
period, the rate per annum determined by the Agent to be the arithmetic mean
(rounded upwards to 4 decimal places) of the rates, as supplied to the Agent at
its request, quoted by each Reference Bank to leading banks in the London
Interbank Market,

 

as of 11 a.m. (London time) on the
Quotation Date for that period for the offering of deposits in the relevant
currency and for a period comparable to that period;

 

“Loan” means the
principal amount for the time being outstanding under this Agreement;

 

“Major Casualty”
means, in relation to a Ship, any casualty to that Ship in respect of which the
claim or the aggregate of the claims against all insurers, before adjustment
for any relevant franchise or deductible, exceeds $500,000 or the equivalent in
any other currency;

 

“Majority Lenders”
means:

 

(a)                                  before the Loan has been made, Lenders
whose Commitments total 66.66 per cent. of the Total Commitments; and

 

(b)                                 after the Loan has been made, Lenders whose
Contributions total 66.66 per cent. of the Loan;

 

“Mandatory
Cost Rate” means the percentage calculated at an annual rate
determined in accordance with Schedule 5;

 

“Margin” means
for the period from the Drawdown Date to the date falling 6 months after the
Drawdown Date 2.00 per cent. per annum and thereafter 3.50 per cent. per annum;

 

“MOAs”  means the Baffin MOA and the Franklin MOA;

 

“Mortgage”
means, in relation to a Ship, the first preferred Panamanian ship mortgage on
the Ship in the Agreed Form;

 

“Negotiation Period”
has the meaning given in Clause 5.9;

 

7

 

 

 

“Notifying Lender”
has the meaning given in Clause 23.1 or Clause 24.1 as the context requires;

 

“Owner”  means:

 

(a)                                  in relation to BAFFIN, Enterprise Bulk
Services S.A., a corporation incorporated in Panama whose registered office is
at c/o Vives y Asociados, Calle Beatriz M. de Cabal, Edificio P.H. Proconsa II,
8avo. Piso, Panama, Apartado Postal 0816-01461; and

 

(b)                                 in relation to FRANKLIN, Oceanic Bulk
Services S.A., a corporation incorporated in Panama whose registered office is
at c/o Vives y Asociados, Calle Beatriz M. de Cabal, Edificio P.H. Proconsa II,
8avo. Piso, Panama, Apartado Postal 0816-01461;

 

“Payment Currency”
has the meaning given in Clause 21.4;

 

“Permitted
Holders”  means any of Arvid Tage,
Serguei Zoudov or David Znak or any member of the immediate family thereof or
any trust or similar vehicle formed for the benefit of any of them or any
entity that is at least majority owned and controlled, directly or indirectly
by any of them;

 

“Permitted Security
Interests” means:

 

(a)                                  Security Interests created by the Borrower
under the Bond Documents;

 

(b)                                 Security Interests created by the Finance
Documents;

 

(c)                                  liens for unpaid master’s and crew’s wages
in accordance with usual maritime practice;

 

(d)                                 liens for salvage;

 

(e)                                  liens arising by operation of law for not
more than 2 months’ prepaid hire under any charter in relation to a Ship
not prohibited by this Agreement;

 

(f)                                    liens for master’s disbursements incurred
in the ordinary course of trading and any other lien arising by operation of law
or otherwise in the ordinary course of the operation, repair or maintenance of
a Ship, provided such liens do not secure amounts more than 30 days
overdue (unless the overdue amount is being contested by the relevant Owner (as
the case may be) in good faith by appropriate steps) and subject, in the case
of liens for repair or maintenance, to Clause 14.11(g);

 

(g)                                 any Security Interest created in favour of
a plaintiff or defendant in any proceedings or arbitration as security for
costs and expenses where the Borrower or an Owner (as the case may be) is
actively prosecuting or defending such proceedings or arbitration in good
faith; and

 

(h)                                 Security Interests arising by operation of
law in respect of taxes which are not overdue for payment or in respect of
taxes being contested in good faith by appropriate steps and in respect of
which appropriate reserves have been made;

 

“Pertinent Document”
means:

 

(a)                                  any Finance Document;

 

8

 

(b)                                 any policy or contract of insurance
contemplated by or referred to in Clause 13 or any other provision of this
Agreement or another Finance Document;

 

(c)                                  any other document contemplated by or
referred to in any Finance Document; and

 

(d)                                 any document which has been or is at any
time sent by or to a Servicing Bank in contemplation of or in connection with
any Finance Document or any policy, contract or document falling within
paragraphs (b) or (c);

 

“Pertinent Jurisdiction”,
in relation to a company, means:

 

(a)                                  England and Wales;

 

(b)                                 the country under the laws of which the
company is incorporated or formed;

 

(c)                                  a country in which the company has the
centre of its main interests or in which the company’s central management and
control is or has recently been exercised;

 

(d)                                 a country in which the overall net income
of the company is subject to corporation tax, income tax or any similar tax;

 

(e)                                  a country in which assets of the company
(other than securities issued by, or loans to, related companies) having a
substantial value are situated, in which the company maintains a branch or a
permanent place of business, or in which a Security Interest created by the
company must or should be registered in order to ensure its validity or
priority; and

 

(f)                                    a country the courts of which have
jurisdiction to make a winding up, administration or similar order in relation
to the company, whether as main or territorial or ancillary proceedings, or
which would have such jurisdiction if their assistance were requested by the
courts of a country referred to in paragraphs (b) or (c);

 

“Pertinent Matter”
means:

 

(a)                                  any transaction or matter contemplated by,
arising out of, or in connection with a Pertinent Document; or

 

(b)                                 any statement relating to a Pertinent
Document or to a transaction or matter falling within paragraph (a),

 

and covers any such transaction, matter or
statement, whether entered into, arising or made at any time before the signing
of this Agreement or on or at any time after that signing;

 

“Potential Event of Default”
means an event or circumstance which, with the giving of any notice, the lapse
of time, a determination of the Majority Lenders and/or the satisfaction of any
other condition, would constitute an Event of Default;

 

“Quotation Date”
means two Business Days prior to the start of the relevant Interest Period;

 

“Reference
Banks”  means, subject to
Clause 26.16, the London branches of Lloyds TSB Bank plc, The Royal Bank of
Scotland plc, HSBC Bank plc and Barclays Bank plc;

 

“Relevant Person”
has the meaning given in Clause 19.9;

 

“Repayment Date”
means 27 November 2008;

 

9

 

“Requisition Compensation”  includes all compensation or other moneys
payable by reason of any act or event such as is referred to in paragraph (b) of
the definition of “Total Loss”;

 

“Screen
Rate” means, in relation to any period for which an interest rate is
to be determined under any provision of a Finance Document, the British Bankers’
Association Interest Settlement Rate for the relevant currency and period
displayed on the appropriate page of the Reuters screen.  If the agreed page is replaced or
service ceases to be available, the Agent may specify another page or
service displaying the appropriate rate after consultation with the Borrower
and the Lenders;

 

“Secured Liabilities”
means all liabilities which the Borrower, the Security Parties or any of them
have, at the date of this Agreement or at any later time or times, under or in
connection with any Finance Document or any judgment relating to any Finance
Document; and for this purpose, there shall be disregarded any total or partial
discharge of these liabilities, or variation of their terms, which is effected
by, or in connection with, any bankruptcy, liquidation, arrangement or other
procedure under the insolvency laws of any country;

 

“Security Interest”
means:

 

(a)                                  a mortgage, charge (whether fixed or
floating) or pledge, any maritime or other lien or any other security interest
of any kind;

 

(b)                                 the security rights of a plaintiff under an
action in rem; and

 

(c)                                  any arrangement entered into by a person (A) the
effect of which is to place another person (B) in a position which is
similar, in economic terms, to the position in which B would have been had he
held a security interest over an asset of A; but this paragraph (c) does
not apply to a right of set off or combination of accounts conferred by the
standard terms of business of a bank or financial institution;

 

“Security Party”
means each Owner and any other person (except a Creditor Party) who, as a
surety or mortgagor, as a party to any subordination or priorities arrangement,
or in any similar capacity, executes a document falling within the last
paragraph of the definition of “Finance
Documents”;

 

“Security Period”
means the period commencing on the date of this Agreement and ending on the
date on which the Agent notifies the Borrower, the Security Parties and the
Lenders that:

 

(a)                                  all amounts which have become due for
payment by the Borrower or any Security Party under the Finance Documents have
been paid;

 

(b)                                 no amount is owing or has accrued (without
yet having become due for payment) under any Finance Document;

 

(c)                                  neither the Borrower nor any Security Party
has any future or contingent liability under Clause 20, 21 or 22 below or any
other provision of this Agreement or another Finance Document; and

 

(d)                                 the Agent, the Security Trustee and the
Majority Lenders do not consider that there is a significant risk that any
payment or transaction under a Finance Document would be set aside, or would
have to be reversed or adjusted, in any present or possible future bankruptcy
of the Borrower or a Security Party or in any present or possible future
proceeding relating to a Finance Document or any asset covered (or previously
covered) by a Security Interest created by a Finance Document;

 

10

 

“Security Trustee”
means Lloyds TSB Bank plc, acting in such capacity through its office at 10
Gresham Street, London EC2V 7AE, or any successor of it appointed under
clause 5 of the Agency and Trust Agreement;

 

“Sellers”  means the Baffin Seller and the Franklin
Seller;

 

“Servicing Bank”
means the Agent or the Security Trustee;

 

“Ships”
means the BAFFIN and the FRANKLIN;

 

“SMC”  means a safety management certificate issued
in respect of each Ship in accordance with Rule 13 of the ISM Code;

 

“Total Loss”
means, in relation to a Ship:

 

(a)                                  actual,
constructive, compromised, agreed or arranged total loss of that Ship;

 

(b)                                 any
expropriation, confiscation, requisition or acquisition of that Ship, whether
for full consideration, a consideration less than its proper value, a nominal
consideration or without any consideration, which is effected by any government
or official authority or by any person or persons claiming to be or to
represent a government or official authority (excluding a requisition for hire
for a fixed period not exceeding 1 year without any right to an extension)
unless it is within 1 month redelivered to the full control of the Owner of
that Ship; and

 

(c)                                  any arrest, capture, seizure or detention
of that Ship (including any hijacking, piracy or theft) unless it is within 1
month redelivered to the full control of the Owner of that Ship;

 

“Total Loss Date”
means, in relation to a Ship:

 

(a)                                  in the case of an actual loss of that Ship,
the date on which it occurred or, if that is unknown, the date when that Ship
was last heard of;

 

(b)                                 in the case of a constructive, compromised,
agreed or arranged total loss of that Ship, the earliest of:

 

(i)                                     the date on which a notice of abandonment
is given to the insurers; and

 

(ii)                                  the date of any compromise, arrangement or
agreement made by or on behalf of the relevant Owner with that Ship’s insurers
in which the insurers agree to treat that Ship as a total loss; and

 

(c)                                  in the case of any other type of total
loss, on the date (or the most likely date) on which it appears to the Agent
that the event constituting the total loss occurred;

 

“Transfer Certificate”  has the meaning given in Clause 26.2; and

 

“Trust Property”
has the meaning given in clause 3.1 of the Agency and Trust Agreement.

 

1.2          Construction
of certain terms.  In this
Agreement:

 

“administration
notice”  means a notice appointing an administrator, a
notice of intended appointment and any other notice which is required by law
(generally or in the case concerned) to be filed with the court or given to a
person prior to, or in connection with, the appointment of an administrator;

 

11

 

“approved”
means, for the purposes of Clause 13, approved in writing by the Agent;

 

“asset” includes
every kind of property, asset, interest or right, including any present, future
or contingent right to any revenues or other payment;

 

“company”
includes any partnership, joint venture and unincorporated association;

 

“consent”
includes an authorisation, consent, approval, resolution, licence, exemption,
filing, registration, notarisation and legalisation;

 

“contingent liability”
means a liability which is not certain to arise and/or the amount of which
remains unascertained;

 

“document”
includes a deed; also a letter or fax;

 

“excess risks”
means, in relation to a Ship, the proportion of claims for general average,
salvage and salvage charges not recoverable under the hull and machinery
policies in respect of the Ship in consequence of its insured value being less
than the value at which the Ship is assessed for the purpose of such claims;

 

“expense” means
any kind of cost, charge or expense (including all legal costs, charges and expenses)
and any applicable value added or other tax;

 

“law” includes
any order or decree, any form of delegated legislation, any treaty or
international convention and any regulation or resolution of the Council of the
European Union,  the European Commission,
the United Nations or its Security Council;

 

“legal or administrative
action” means any legal proceeding or arbitration and any
administrative or regulatory action or investigation;

 

“liability”
includes every kind of debt or liability (present or future, certain or
contingent), whether incurred as principal or surety or otherwise;

 

“months” shall
be construed in accordance with Clause 1.3;

 

“obligatory insurances”
means, in relation to a Ship, all insurances effected, or which the Borrower is
obliged to procure are effected, under Clause 13 or any other provision of this
Agreement or another Finance Document;

 

“parent company”
has the meaning given in Clause 1.4;

 

“person”
includes any company; any state, political sub-division of a state and local or
municipal authority; and any international organisation;

 

“policy”, in
relation to any insurance, includes a slip, cover note, certificate of entry or
other document evidencing the contract of insurance or its terms;

 

“protection and indemnity
risks” means the usual risks covered by a protection and indemnity
association managed in London, including pollution risks and the proportion (if
any) of any sums payable to any other person or persons in case of collision
which are not recoverable under the hull and machinery policies by reason of
the incorporation in them of clause 6 of the International Hull Clauses
(1/11/02 or 1/11/03) or clause 8 of the Institute Time Clauses (Hulls)
(1/11/95) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83) or the Institute
Amended Running Down Clause (1/10/71) or any equivalent provision;

 

12

 

“regulation”
includes any regulation, rule, official directive, request or guideline whether
or not having the force of law of any governmental, intergovernmental or
supranational body, agency, department or regulatory, self-regulatory or other
authority or organisation;

 

“subsidiary” has
the meaning given in Clause 1.4;

 

“tax” includes
any present or future tax, duty, impost, levy or charge of any kind which is
imposed by any state, any political sub-division of a state or any local or
municipal authority (including any such imposed in connection with exchange
controls), and any connected penalty, interest or fine; and

 

“war risks” includes
the risk of mines and all risks excluded by clause 29 of the International Hull
Clauses (1/11/02 or 1/11/03), clause 24 of the Institute Time Clauses
(Hulls)(1/11/95) or clause 23 of the Institute Time Clauses (Hulls) (1/10/83).

 

1.3                               Meaning
of “month”.  A period of one or more “months” ends on the day in the relevant calendar month
numerically corresponding to the day of the calendar month on which the period
started (“the numerically corresponding day”),
but:

 

(a)                                  on the Business Day following
the numerically corresponding day if the numerically corresponding day is not a
Business Day or, if there is no later Business Day in the same calendar month,
on the Business Day preceding the numerically corresponding day; or

 

(b)                                 on the last Business Day in
the relevant calendar month, if the period started on the last Business Day in
a calendar month or if the last calendar month of the period has no numerically
corresponding day,

 

and “month” and “monthly” shall
be construed accordingly.

 

1.4                               Meaning
of “subsidiary”.  A company (S) is
a subsidiary of another company (P) if:

 

(a)                                  a majority of the issued
shares in S (or a majority of the issued shares in S which carry unlimited
rights to capital and income distributions) are directly or indirectly owned by
P; or

 

(b)                                 P has direct or indirect
control over a majority of the voting rights attaching to the issued shares of
S; or

 

(c)                                  P has the direct or indirect
power to appoint or remove a majority of the directors of S; or

 

(d)                                 P otherwise has the direct or
indirect power to ensure that the affairs of S are conducted in accordance with
the wishes of P,

 

and any
company of which S is a subsidiary is a parent company of S.

 

1.5                               General
Interpretation.  In this
Agreement:

 

(a)                                  references to, or to a
provision of, a Finance Document or any other document are references to it as
amended or supplemented, whether before the date of this Agreement or
otherwise;

 

(b)                                 references to, or to a
provision of, any law include any amendment, extension, re-enactment or
replacement, whether made before the date of this Agreement or otherwise;

 

(c)                                  words denoting the singular
number shall include the plural and vice versa; and

 

(d)                                 Clauses 1.1 to 1.5 apply
unless the contrary intention appears.

 

13

 

1.6                               Headings.  In interpreting a Finance Document or any
provision of a Finance Document, all clause, sub-clause and other headings in
that and any other Finance Document shall be entirely disregarded.

 

2                                         FACILITY

 

2.1                               Amount of
facility.  Subject to the other provisions of this
Agreement, the Lenders shall make a loan facility of up to the lesser of (i) $30,000,000
and (ii) thirty per cent. (30%) of the aggregate market value (determined
in accordance with Clause 15.3) of the Ships available to the Borrower.

 

2.2                               Lenders’
participations in Loan.  Subject to the
other provisions of this Agreement, each Lender shall participate in the Loan
in the proportion which, as at the Drawdown Date, its Commitment bears to the
Total Commitments.

 

2.3                               Purpose
of Loan.  The Borrower undertakes with each Creditor
Party to use the Loan only for the purpose stated in the preamble to this
Agreement.

 

3                                         POSITION
OF THE LENDERS

 

3.1                               Interests
of Lenders several.  The rights of
the Lenders under this Agreement are several.

 

3.2                               Individual
Lender’s right of action. Each Lender shall be entitled to sue for any amount
which has become due and payable by the Borrower to it under this Agreement
without joining the Agent, the Security Trustee or any other Lender as additional
parties in the proceedings.

 

3.3                               Proceedings
by individual Lender requiring Majority Lender consent. Except as provided in Clause
3.2, no Lender may commence proceedings against the Borrower or any Security
Party in connection with a Finance Document without the prior consent of the
Majority Lenders.

 

3.4                               Obligations
of Lenders several.  The
obligations of the Lenders under this Agreement are several; and a failure of a
Lender to perform its obligations under this Agreement shall not result in:

 

(a)                                  the obligations of the other
Lenders being increased; nor

 

(b)                                 the Borrower, any Security
Party or any other Lender being discharged (in whole or in part) from its
obligations under any Finance Document,

 

and in no circumstances
shall a Lender have any responsibility for a failure of another Lender to
perform its obligations under this Agreement.

 

4                                         DRAWDOWN

 

4.1                               Request
for advance of Loan.  Subject to the
following conditions, the Borrower may request the Loan to be made by ensuring
that the Agent receives a completed Drawdown Notice on or before the intended
Drawdown Date.

 

4.2                               Availability.  The conditions referred to in Clause 4.1 are
that:

 

(a)                                  the Drawdown Date has to be a
Business Day during the Availability Period; and

 

(b)                                 the Loan shall be made in a
single advance and if less than the maximum amount of the Loan is advanced to
the Borrower on the Drawdown Date, the undrawn balance of the Loan shall be
cancelled and the Lenders’ obligation to advance such undrawn balance shall
terminate at that time.

 

14

 

4.3                               Notification
to Lenders of receipt of a Drawdown Notice.  The
Agent shall promptly notify the Lenders that it has received a Drawdown Notice
and shall inform each Lender of:

 

(a)                                  the amount of the Loan and the
Drawdown Date;

 

(b)                                 the amount of that Lender’s
participation in the Loan; and

 

(c)                                  the duration of the first
Interest Period.

 

4.4                               Drawdown
Notice irrevocable.  A Drawdown
Notice must be signed by an officer of the Borrower; and once served, a Drawdown
Notice cannot be revoked without the prior consent of the Agent, acting on the
authority of the Majority Lenders.

 

4.5                               Lenders
to make available Contributions. 
Subject to the provisions of this Agreement, each Lender shall, on and
with value on the Drawdown Date, make available to the Agent for the account of
the Borrower the amount due from that Lender under Clause 2.2.

 

4.6                               Disbursement
of Loan.  Subject to the provisions of this Agreement,
the Agent shall on the Drawdown Date pay to the Borrower the amounts which the
Agent receives from the Lenders under Clause 4.5; and that payment to the
Borrower shall be made:

 

(a)                                  to the account of the Baffin
Seller, the details of which the Borrower shall specify in the Drawdown Notice;
and

 

(b)                                 in the like funds as the Agent
received the payments from the Lenders.

 

4.7                               Disbursement
of Loan to third party.  The payment by the Agent under
Clause 4.6 to the Baffin Seller’s account shall constitute the making of the
Loan and the Borrower shall at that time become indebted, as principal and
direct obligor, to each Lender in an amount equal to that Lender’s
Contribution.

 

5                                         INTEREST

 

5.1                               Payment
of normal interest.  Subject to the
provisions of this Agreement, interest on the Loan in respect of each Interest
Period shall be paid by the Borrower on the last day of that Interest Period.

 

5.2                               Normal
rate of interest.  Subject to the
provisions of this Agreement, the rate of interest on the Loan in respect of an
Interest Period shall be the aggregate of the Margin, the Mandatory Cost Rate
and LIBOR for that Interest Period.

 

5.3                               Notification
of rates of normal interest.  The Agent
shall notify the Borrower and each Lender of each rate of interest as soon as
reasonably practicable after each is determined.

 

5.4                               Obligation
of Reference Banks to quote.  A Reference
Bank which is a Lender shall use all reasonable efforts to supply the quotation
required of it for the purposes of fixing a rate of interest under this
Agreement.

 

5.5                               Absence
of quotations by Reference Banks.  If
any Reference Bank fails to supply a quotation, the Agent shall determine the
relevant LIBOR on the basis of the quotations supplied by the other Reference
Bank or Banks; but if 2 or more of the Reference Banks fail to provide a
quotation, the relevant rate of interest shall be set in accordance with the
following provisions of this Clause 5.

 

15

 

5.6                               Market
disruption.  The following provisions of
this Clause 5 apply if:

 

(a)                                  no Screen Rate is available
for an Interest Period and 3 or more of the Reference Banks do not, before
1.00pm (London time) on the Quotation Date, provide quotations to the Agent in
order to fix LIBOR; or

 

(b)                                 at least 1 Business Day before
the start of an Interest Period, Lenders having Contributions together
amounting to more than 50 per cent. of the Loan (or, if the Loan has not been
made, Commitments amounting to more than 50 per cent. of the Total Commitments)
notify the Agent that LIBOR fixed by the Agent would not accurately reflect the
cost to those Lenders of funding their respective Contributions (or any part of
them) during the Interest Period in the London Interbank Market at or about
11.00 a.m. (London time) on the date which is 2 Business Days before the
first day of that Interest Period; or

 

(c)                                  at least 1 Business Day before
the start of an Interest Period, the Agent is notified by a Lender (the “Affected Lender”) that for any reason it is unable to obtain
Dollars in the London Interbank Market in order to fund its Contribution (or
any part of it) during the Interest Period.

 

5.7                               Notification
of market disruption.  The Agent
shall promptly notify the Borrower and each of the Lenders stating the
circumstances falling within Clause 5.6 which have caused its notice to be
given.

 

5.8                               Suspension
of drawdown.  If the Agent’s notice under
Clause 5.7 is served before the Loan is made:

 

(a)                                  in a case falling within
Clause 5.6(a) or (b), the Lenders’ obligations to make the Loan;

 

(b)                                 in a case falling within
Clause 5.6(c), the Affected Lender’s obligation to participate in the Loan;

 

shall be
suspended while the circumstances referred to in the Agent’s notice continue.

 

5.9                               Negotiation
of alternative rate of interest.  If
the Agent’s notice under Clause 5.7 is served after the Loan is made, the
Borrower, the Agent and the Lenders or (as the case may be) the Affected Lender
shall use reasonable endeavours to agree, within the 30 days after the date on
which the Agent serves its notice under Clause 5.7 (the “Negotiation
Period”), an alternative interest rate or (as the case may be) an
alternative basis for the Lenders or (as the case may be) the Affected Lender
to fund or continue to fund their or its Contribution during the Interest
Period concerned.

 

5.10                        Application
of agreed alternative rate of interest.  Any
alternative interest rate or an alternative basis which is agreed during the
Negotiation Period shall take effect in accordance with the terms agreed.

 

5.11                        Alternative
rate of interest in absence of agreement.  If
an alternative interest rate or alternative basis is not agreed within the
Negotiation Period, and the relevant 
circumstances are continuing at the end of the Negotiation Period, then
the Agent shall, with the agreement of each Lender or (as the case may be) the
Affected Lender, set an interest period and interest rate representing the cost
of funding of the Lenders or (as the case may be) the Affected Lender in
Dollars or in any available currency of their or its Contribution plus the
Margin; and the procedure provided for by this Clause 5.11 shall be repeated if
the relevant circumstances are continuing at the end of the interest period so
set by the Agent.

 

16

 

5.12                        Notice of
prepayment.  If the Borrower does not agree
with an interest rate set by the Agent under Clause 5.11, the Borrower may give
the Agent not less than 15 days’ notice of its intention to prepay at the end
of the interest period set by the Agent.

 

5.13                        Prepayment;
termination of Commitments.  A notice under
Clause 5.12 shall be irrevocable; the Agent shall promptly notify the Lenders
or (as the case may require) the Affected Lender of the Borrower’s notice of
intended prepayment; and:

 

(a)                                  on the date on which the Agent
serves that notice, the Total Commitments or (as the case may require) the
Commitment of the Affected Lender shall be cancelled; and

 

(b)                                 on the last Business Day of
the interest period set by the Agent, the Borrower shall prepay (without
premium or penalty) the Loan or, as the case may be, the Affected Lender’s
Contribution, together with accrued interest thereon at the applicable rate
plus the Margin.

 

5.14                        Application
of prepayment.  The provisions of Clause 8
shall apply in relation to the prepayment.

 

6                                         INTEREST
PERIODS

 

6.1                               Commencement
of Interest Periods.  The first
Interest Period shall commence on the Drawdown Date and each subsequent
Interest Period shall commence on the expiry of the preceding Interest Period.

 

6.2                               Duration
of normal Interest Periods.  Subject to
Clause 6.3, each Interest Period shall be:

 

(a)                                  1 month; or

 

(b)                                 such other period as the Agent
may, with the authorisation of the Majority Lenders, agree with the Borrower.

 

6.3                               Duration
of Interest Periods for repayment instalments.  In
respect of an amount due to be repaid under Clause 8 on the Repayment Date, an
Interest Period shall end on that Repayment Date.

 

7                                         DEFAULT
INTEREST

 

7.1                               Payment
of default interest on overdue amounts.  The
Borrower shall pay interest in accordance with the following provisions of this
Clause 7 on any amount payable by the Borrower under any Finance Document which
the Agent, the Security Trustee or the other designated payee does not receive
on or before the relevant date, that is:

 

(a)                                  the date on which the Finance
Documents provide that such amount is due for payment; or

 

(b)                                 if a Finance Document provides
that such amount is payable on demand, the date on which the demand is served;
or

 

(c)                                  if such amount has become
immediately due and payable under Clause 19.4, the date on which it became immediately
due and payable.

 

7.2                               Default
rate of interest.  Interest shall
accrue on an overdue amount from (and including) the relevant date until the
date of actual payment (as well after as before judgment) at the rate per annum
determined by the Agent to be 2 per cent. above:

 

17

 

(a)                                  in the case of an overdue
amount of principal, the higher of the rates set out at Clauses 7.3 (a) and
(b); or

 

(b)                                 in the case of any other
overdue amount, the rate set out at Clause 7.3(b).

 

7.3                               Calculation
of default rate of interest.  The rates referred
to in Clause 7.2 are:

 

(a)                                  the rate applicable to the
overdue principal amount immediately prior to the relevant date (but only for
any unexpired part of any then current Interest Period); and

 

(b)                                 the aggregate of the Margin
and the Mandatory Cost Rate (if any) plus, in respect of successive periods of
any duration (including at call) up to 3 months which the Agent may select from
time to time, the rate from time to time determined by the Agent in its
discretion as the cost of obtaining funds for such amounts equal to such
overdue amounts and for such periods.

 

7.4                               Notification
of interest periods and default rates.  The
Agent shall promptly notify the Lenders and the Borrower of each interest rate
determined by the Agent under Clause 7.3 and of each period selected by the
Agent for the purposes of paragraph (b) of that Clause; but this shall not
be taken to imply that the Borrower is liable to pay such interest only with
effect from the date of the Agent’s notification.

 

7.5                               Payment
of accrued default interest.  Subject to the
other provisions of this Agreement, any interest due under this Clause shall be
paid on the last day of the period by reference to which it was determined; and
the payment shall be made to the Agent for the account of the Creditor Party to
which the overdue amount is due.

 

7.6                               Compounding
of default interest.  Any such
interest which is not paid at the end of the period by reference to which it
was determined shall thereupon be compounded.

 

8                                         REPAYMENT
AND PREPAYMENT

 

8.1                               Amount of
repayment instalments.  The Borrower
shall repay the Loan in full no later than the Repayment Date.  On the Repayment Date, the Borrower shall
additionally pay to the Agent for the account of the Creditor Parties all other
sums then accrued or owing under any Finance Document.

 

8.2                               Voluntary
prepayment.  Subject to the following
conditions, the Borrower may prepay the whole or any part of the Loan at any
time.

 

8.3                               Conditions
for voluntary prepayment.  The conditions
referred to in Clause 8.2 are that:

 

(a)                                  a partial prepayment shall be
$600,000 or a multiple of $600,000;

 

(b)                                 the Agent has received from
the Borrower at least 15 days’ (or 5 days’ in the case of prepayments made from
amounts on deposit in the Collateral Account) prior written notice specifying
the amount to be prepaid and the date on which the prepayment is to be made;
and

 

(c)                                  the Borrower has provided
evidence satisfactory to the Agent that any consent required by the Borrower or
any Security Party in connection with the prepayment has been obtained and
remains in force, and that any regulation relevant to this Agreement which
affects the Borrower or any Security Party has been complied with.

 

8.4                               Effect of
notice of prepayment.  A prepayment
notice may not be withdrawn or amended without the consent of the Agent, given
with the authorisation of the Majority Lenders, and the amount specified in the
prepayment notice shall become due and payable by the Borrower on the date for
prepayment specified in the prepayment notice.

 

18

 

8.5                               Notification
of notice of prepayment.  The Agent
shall notify the Lenders promptly upon receiving a prepayment notice, and shall
provide any Lender which so requests with a copy of any document delivered by
the Borrower under Clause 8.3(c).

 

8.6                               Mandatory
prepayment.  The Borrower shall be obliged
to prepay the relevant amount if a Ship is sold or becomes a Total Loss:

 

(a)                                  in the case of a sale on or
before the date on which the sale is completed by delivery of the Ship to the
buyer; or

 

(b)                                 in the case of a Total Loss,
on the earlier of the date falling 120 days after the Total Loss Date and the
date of receipt by the Security Trustee of the proceeds of insurance relating
to such Total Loss;

 

for the purposes of this Clause, “relevant amount” means:

 

(i)                                     provided that no Potential
Event of Default or Event of Default has occurred  and is continuing, the Allocated Amount; and

 

(ii)                                  if a Potential Event of
Default or Event of Default has occurred and is continuing the total sale
proceeds in respect of such Ship on the basis of an arm’s length sale (net of
commissions, fees and other usual and customary transactions costs) or the
total proceeds of insurance relating to such Total Loss in respect of such Ship
(as the case may be).

 

8.7                               Amounts
payable on prepayment.  A prepayment
shall be made together with accrued interest (and any other amount payable
under Clause 21 or otherwise) in respect of the amount prepaid and, if the
prepayment is not made on the last day of an Interest Period together with any
sums payable under Clause 21.1(b) but without further premium or penalty.

 

8.8                               No
reborrowing.  No amount prepaid may be
reborrowed.

 

8.9                               Voluntary
Cancellation of Commitments.  Subject to the
following conditions, the Borrower may cancel the whole or any part of the
Total Commitments.

 

8.10                        Conditions
for cancellation of Commitments.  The
conditions referred to in Clause 8.9 are that:

 

(a)                                  a partial cancellation shall
be in such amount specified by the Borrower in the notice referred to in
paragraph (b) below; and

 

(b)                                 the Agent has received from
the Borrower at least 15 days’ prior written notice specifying the amount of
the Total Commitments to be cancelled and the date on which the cancellation is
to take effect.

 

8.11                        Effect of
notice of cancellation.  The service of
a cancellation notice shall cause the amount of the Total Commitments specified
in the notice to be permanently cancelled and any partial cancellation shall be
applied against the Commitment of each Lender pro rata.

 

9                                         CONDITIONS
PRECEDENT

 

9.1                               Documents,
fees and no default.  Each Lender’s
obligation to contribute to the Loan is subject to the following conditions
precedent:

 

19

 

(a)                                  that, on or before the service
of the Drawdown Notice, the Agent receives the documents described in Part A
of Schedule 3 in form and substance satisfactory to the Agent and its lawyers;

 

(b)                                 that, on the Drawdown Date but
prior to the advance of the Loan, the Agent receives or is satisfied that it
will receive on the advance of the Loan the documents described in Part B
of Schedule 3 in form and substance satisfactory to it and its lawyers;

 

(c)                                  that both at the date of the
Drawdown Notice and at the Drawdown Date:

 

(i)                                     no Event of Default or
Potential Event of Default has occurred or would result from the borrowing of
the Loan;

 

(ii)                                  the representations and
warranties in Clause 10 and those of the Borrower or any Security Party which
are set out in the other Finance Documents would be true and not misleading if
repeated on each of those dates with reference to the circumstances then
existing; and

 

(iii)                               none of the circumstances
contemplated by Clause 5.6 has occurred and is continuing;

 

(d)                                 that, if the ratio set out in
Clause 15.1 were applied immediately following the making of the Loan, the
Borrower would not be obliged to provide additional security or prepay part of
the Loan under that Clause.

 

9.2                               Waiver of
conditions precedent.  If the
Majority Lenders, at their discretion, permit the Loan to be borrowed before
certain of the conditions referred to in Clause 9.1 are satisfied and prior to
the disbursement of the Loan the Agent notifies the Borrower in writing which
conditions are not satisfied, the Borrower shall ensure that those conditions
are satisfied within 5 Business Days after the Drawdown Date (or such longer
period as the Agent may, with the authorisation of the Majority Lenders,
specify).

 

10                                  REPRESENTATIONS
AND WARRANTIES

 

10.1                        General.  The Borrower represents and warrants to
each Creditor Party as follows.

 

10.2                        Status.  The Borrower is duly incorporated and validly
existing and in good standing under the laws of England and Wales.

 

10.3                        Share
capital and ownership.  The Borrower
has an authorised share capital of £10,000,000 divided into 10,000,000 ordinary
shares of £1 each, 8,204,314 of which shares have been issued fully paid in
registered form, and the beneficial ownership of all those issued shares is
held ultimately by Britannia Bulk Holdings plc all of which shares have been
pledged to Goldman Sachs Credit Partners, L.P. as security trustee pursuant to
a debenture dated 16 November 2007 and a shares charge dated the date of
this Agreement.

 

10.4                        Corporate
power.  The Borrower has the corporate capacity, and
has taken all corporate action and obtained all consents necessary for it:

 

(a)                                  to execute the Finance
Documents to which the Borrower is a party; and

 

(b)                                 to borrow under this Agreement
and to make all the payments contemplated by, and to comply with, those Finance
Documents.

 

10.5                        Consents
in force.  All the consents referred to in Clause 10.4
remain in force and nothing has occurred which makes any of them liable to
revocation.

 

20

 

10.6                        Legal
validity.  The Finance Documents to which the Borrower
is a party, do now or, as the case may be, will, upon execution and delivery
(and, where applicable, registration as provided for in the Finance Documents)
constitute the Borrower’s legal, valid and binding obligations enforceable
against the Borrower in accordance with their respective terms subject to any
relevant insolvency laws affecting creditors’ rights generally.

 

10.7                        No
conflicts.  The execution by the Borrower
of each Finance Document, and the borrowing by the Borrower of the Loan, and
its compliance with each Finance Document will not involve or lead to a
contravention of:

 

(a)                                  any law or regulation; or

 

(b)                                 the constitutional documents
of the Borrower; or

 

(c)                                  any contractual or other
obligation or restriction which is binding on the Borrower or any of its
assets.

 

10.8                        No
withholding taxes.  All payments
which the Borrower is liable to make under the Finance Documents may be made
without deduction or withholding for or on account of any tax payable under any
law of any Pertinent Jurisdiction.

 

10.9                        No
default.  No Event of Default has occurred which is
continuing.

 

10.10                 Information.  All material information which has been
provided in writing by or on behalf of the Borrower or any Security Party to
any Creditor Party in connection with any Finance Document satisfied the
requirements of Clause 11.5; all audited and unaudited accounts which have been
so provided satisfied the requirements of Clause 11.7; and there has been no
material adverse change in the financial position of the Borrower from that
disclosed in the latest of those accounts.

 

10.11                 No
litigation.  No legal or administrative
action involving the Borrower (including action relating to any alleged or
actual breach of the ISM Code or the ISPS Code) is pending against or, to the
Borrower’s knowledge, is likely to be commenced or taken, in each case which
could reasonably be expected to have a material adverse effect on the Borrower’s
business or financial condition.

 

10.12                 Filings.  Save for such registrations and filings as
are referred to in this Agreement and the Finance Documents it is not necessary
for the legality, validity, enforceability or admissibility in evidence of this
Agreement and the Finance Documents that any of them or any document relating
thereto be registered, filed, recorded or enrolled with any court or authority
in any relevant jurisdiction or that stamp, registration or similar taxes be
paid on or in relation to this Agreement or any of the Finance Documents.

 

10.13                 Compliance
with certain undertakings.  At the date of
this Agreement, the Borrower is in compliance with Clauses 11.4, 11.9 and
11.12.

 

10.14                 Taxes
paid.  The Borrower has paid all taxes due and
payable that are applicable to, or imposed on or in relation to the Borrower
and its business, other than any taxes being contested in good faith by
appropriate proceedings promptly instituted and diligently pursued and where
appropriate reserves have been established in accordance with GAAP.

 

10.15                 ISM Code
and ISPS Code compliance. All requirements of the ISM Code and the ISPS Code as
they relate to the Borrower, the Owners, the Approved Manager and the Ships
have been, or will be, complied with at the time of the Drawdown Date.

 

10.16                 No money
laundering.  Without prejudice to the
generality of Clause 2.3, in relation to the borrowing by the Borrower of the
Loan, the performance and discharge of its obligations and liabilities under
the Finance Documents, and the transactions and other arrangements affected or
contemplated by the Finance Documents to which the Borrower is a party, the
Borrower confirms (i) that it is acting for its own account and for that
of the Owners; (ii) that it will use the proceeds of the Loan for its own
benefit and for that of the Owners, under its full responsibility and
exclusively for the purposes specified in this Agreement;  and (iii) that the foregoing will not
involve or lead to a contravention of any law, official requirement or other
regulatory measure or procedure implemented to combat “money laundering” (as
defined in Article 1 of Directive (91/308) EEC) of the Council of the
European Communities).

 

21

 

10.17                 Conditions
precedent documentation.  All documents provided or to
be provided by the Borrower or any Security Party to any Creditor Party
pursuant to Schedule 3 are, or when provided shall be, true and complete copies
of such documents.

 

10.18                 Solvency.  The Borrower is not insolvent or in
liquidation or administration or subject to any other insolvency procedure, and
no receiver, administrative receiver, administrator, liquidator, trustee or
analogous officer has been appointed in respect of the Borrower or any part of
its assets.

 

10.19                 Validity
and admissibility in evidence.  All authorisations,
approvals, submissions, consents, licences, exemptions, filings, notices,
certifications or registrations which are required or desirable:

 

(a)                                  to enable it
lawfully to enter into, exercise its rights and comply with its obligations in
each Finance Document to which it is a party;

 

(b)                                 to make each
Finance Document to which it is a party admissible in evidence in its
jurisdiction of incorporation,

 

have
been obtained or effected and are in full force and effect.

 

10.20                 Tax
residence.  The Borrower is a resident,
for corporate tax purposes, of England.

 

10.21                 Ship value.  If the ratio set out in Clause 15.1 were
applied immediately following the making of the Loan, the Borrower would not be
obliged to provide additional security or prepay part of the Loan under that
Clause.

 

10.22                 Repetition of
representations and warranties.  The
representations and warranties set out in Clauses 10.1 to 10.21 inclusive shall
survive the execution of this Agreement and shall be deemed to be repeated on
the Drawdown Date and at the commencement of each Interest Period, with respect
to the facts and circumstances existing at each such time, as if made at each
such time.

 

11                                  GENERAL
UNDERTAKINGS

 

11.1                        General.  The Borrower undertakes with each Creditor
Party to comply with the following provisions of this Clause 11 at all times
during the Security Period except as the Agent may, with the authorisation of
the Majority Lenders, otherwise permit.

 

11.2                        Title;
negative pledge.  From and after
the Drawdown Date and unless a Ship is sold in compliance with this Agreement,
the Borrower will procure that each Owner shall hold the legal title to, and
own the entire beneficial interest in the Ship owned by that Owner, its
Insurances and Earnings, free from all Security Interests and other interests
and rights of every kind, except for those created by the Finance Documents and
the effect of assignments contained in the Finance Documents and except for
Permitted Security Interests.

 

11.3                        Disposal
of assets.  The Borrower will not transfer, lease or
otherwise dispose of all or a substantial part of its assets, whether by one
transaction or a number of transactions, 

 

22

 

whether related or not except in the usual course of
its business and for fair market value payable in cash on completion of the
relevant transaction(s).

 

11.4                        Maintenance
of ownership of Owners.  The Borrower
shall remain the legal and direct beneficial owner of the entire issued and
allotted share capital of each Owner free of any Security Interest.

 

11.5                        Information
provided to be accurate.  All factual
information (other than information under Clause 11.7) which is provided in
writing by or on behalf of the Borrower under or in connection with any Finance
Document will be true in all material respects and not misleading in any
material respect and will not omit any material fact necessary to make
statements therein not misleading.

 

11.6                        Provision
of financial statements.  The Borrower
will send to the Agent:

 

(a)                                  as soon as possible, but in no
event later than 30 April 2008, the audited consolidated accounts of the
Borrower and its subsidiaries;

 

(b)                                 as soon as possible, but in no
event later than the Drawdown Date the latest unaudited consolidated accounts
of the Borrower and its subsidiaries certified by the chief financial officer
of the Borrower as fairly representing in all material respects the financial
condition of the Borrower and its subsidiaries at the date of those accounts
and of their profit for the period to which those accounts relate; and

 

(c)                                  as soon as possible, but in no
event later than one month after the end of each quarter in each financial year
of the Borrower and its subsidiaries, the consolidated quarterly accounts of
the Borrower and its subsidiaries certified by the chief financial officer of
the Borrower as fairly representing in all material respects the financial
condition of the Borrower and its subsidiaries at the date of those accounts
and of their profit for the period to which those accounts relate.

 

11.7                        Form of
financial statements.  All accounts
(audited and unaudited) delivered under Clause 11.6 will:

 

(a)                                  be prepared in accordance with
all applicable laws and GAAP consistently applied;

 

(b)                                 fairly represent in all
material respects the financial condition of the Borrower and its subsidiaries
at the date of those accounts and of their profit for the period to which those
accounts relate; and

 

(c)                                  fully disclose or provide for
all significant liabilities of the Borrower and its subsidiaries required to be
disclosed in such accounts in accordance with GAAP.

 

11.8                        Consents.  The Borrower will maintain in force and
promptly obtain or renew, and will promptly send certified copies to the Agent
of, all consents required:

 

(a)                                  for the Borrower to perform
its obligations under any Finance 
Document to which it is a party; and

 

(b)                                 for the validity or
enforceability of any Finance Document to which it is a party;

 

and the
Borrower will comply with the terms of all such consents.

 

11.9                        Maintenance
of Security Interests.  The Borrower
will:

 

(a)                                  at its own cost, do all that
it reasonably can to ensure that any Finance Document to which it is a party
validly creates the obligations which it purports to create; and

 

23

 

(b)                                 without limiting the
generality of paragraph (a), at its own cost, promptly register, file, record
or enrol any Finance Document to which it is a party with any court or
authority in all Pertinent Jurisdictions, pay any stamp, registration or
similar tax in all Pertinent Jurisdictions in respect of any Finance Document
to which it is a party, give any notice or take any other step which, in the
opinion of the Majority Lenders, is or has become necessary or desirable for
any Finance Document to which it is a party to be valid, enforceable or
admissible in evidence or to ensure.

 

11.10                 Notification
of litigation.  The Borrower will provide the
Agent with details of any legal or administrative action involving the
Borrower, any Security Party, the Approved Manager or any Ship, the Earnings or
the Insurances as soon as such action is instituted or it becomes apparent to
the Borrower that it is likely to be instituted, unless the legal or
administrative action could not reasonably be considered material in the
context of any Finance Document.

 

11.11                 Principal
place of business.  The Borrower
will maintain its principal place of business, and keep its corporate documents
and records, at the address stated at the commencement of this Agreement; and the
Borrower will not establish, or do anything as a result of which it would be
deemed to have, a place of business in any country other than England and
Denmark.

 

11.12                 Confirmation
of no default.  The Borrower will, within 2
Business Days after service by the Agent of a written request, serve on the
Agent a notice which is signed by 2 directors (in their capacity as directors
and not in a personal capacity) of the Borrower and which:

 

(a)                                  states that such directors
have no knowledge that any Event of Default or Potential Event of Default has
occurred; or

 

(b)                                 states that no such directors
have no knowledge that any Event of Default or Potential Event of Default has
occurred, except for a specified event or matter, of which all material details
are given.

 

                                                The Agent may serve requests under this Clause
11.13 from time to time but only if asked to do so by a Lender or Lenders
having Contributions exceeding 10 per cent. of the Loan or (if the Loan has not
been made) Commitments exceeding 10 per cent of the Total Commitments; and this
Clause 11.12 does not affect the Borrower’s obligations under Clause 11.13.

 

11.13                 Notification
of default.  The Borrower will notify the
Agent as soon as the Borrower becomes aware of:

 

(a)                                  the occurrence of an Event of
Default or a Potential Event of Default; or

 

(b)                                 any matter which indicates
that an Event of Default or a Potential Event of Default may have occurred; or

 

(c)                                  the occurrence of an event of
default (however described) under any facility agreements to which Britannia
Bulk Finance Limited is a party on the date hereof,

 

and will keep
the Agent fully up-to-date with all developments.

 

11.14                 Provision
of further information.  The Borrower
will, as soon as practicable after receiving the request, provide the Agent
with any additional financial or other information relating:

 

(a)                                  to the Borrower, any Owner,
the Ships, the Earnings or the Insurances; or

 

(b)                                 to any other matter relevant
to, or to any provision of, a Finance Document,

 

24

 

which may be
requested by the Agent, the Security Trustee or any Lender at any time.

 

11.15                 Provision
of copies and translation of documents.  The
Borrower will supply the Agent with a sufficient number of copies of the
documents referred to above to provide 1 copy for each Creditor Party together
with, whenever necessary, a certified English translation prepared by a
translator approved by the Agent.

 

11.16                 “Know your
customer” checks.  The Borrower
will produce to the Agent such documents and evidence in relation to itself or
either Owner as the Agent or any of the Creditor Parties shall from time to
time reasonably require, based on applicable law and regulations from time to
time and the Agent’s or the relevant Creditor Party’s own internal guidelines
from time to time relating to the Agent’s or the relevant Creditor Party’s
knowledge of its customers.  Without
prejudice to the generality of the foregoing, the Borrower shall provide to the
Agent within 30 days of the Drawdown Date such documentation and evidence as is
reasonably requested by the Agent on or before the date of this Agreement in
order for the Lenders to comply with all necessary “know your customer” or
similar identification procedures in relation to the transactions contemplated
in the Finance Documents.

 

12                                  CORPORATE
UNDERTAKINGS

 

12.1                        General.  The Borrower also undertakes with each
Creditor Party to comply with the following provisions of this Clause 12 at all
times during the Security Period except as the Agent may, with the
authorisation of the Majority Lenders, otherwise permit.

 

12.2                        Maintenance
of status.  The Borrower will maintain its
separate corporate existence and remain in good standing under the laws of the
England.

 

12.3                        Negative
undertakings.  The Borrower will not:

 

(a)                                  change its name or make any
substantial change to the nature of its business from that existing at the date
of this Agreement;

 

(b)                                 enter into, terminate or make
any material amendments to any loan agreement with any of its affiliates or
enter into any new loan agreements with any of its affiliates, except on an
arms’ length basis on normal market terms; or

 

(c)                                  enter into any form of
amalgamation, merger or de-merger or any form of reconstruction or
reorganisation.

 

13                                  INSURANCE

 

13.1                        General.  The Borrower also undertakes with each
Creditor Party to comply with the following provisions of this Clause 13 at all
times during the Security Period and, as applicable, to procure that the Owners
shall comply with the provisions of this Clause 13 in each case except as the
Agent may, with the authorisation of the Majority Lenders, otherwise permit.

 

13.2                        Maintenance
of obligatory insurances.  The Borrower
shall procure that each Owner shall keep the Ship owned by it insured at its
expense against:

 

(a)                                  fire and usual marine risks
(including hull and machinery and excess risks);

 

(b)                                 war risks (including the
London blocking and trapping addendum or equivalent coverage and including war
and terrorism risks excluded from the protection and indemnity risks coverage);

 

(c)                                  protection and indemnity
risks; and

 

25

 

(d)                                 any other risks against which
the Security Trustee considers, having regard to practices and other
circumstances prevailing at the relevant time, it would in the opinion of the
Security Trustee be reasonable for the Borrower to insure and which are
specified by the Security Trustee by notice to the Borrower.

 

13.3                        Terms of
obligatory insurances.  The Borrower
shall procure that each Owner shall effect such insurances in respect of the
Ship owned by it:

 

(a)                                  in Dollars;

 

(b)                                 in the case of fire and usual
marine risks and war risks, in an amount on an agreed value basis at least the
greater of (i) an amount which when aggregated with the insured value of
the other Ship is 120 per cent of the Loan and (ii) the market value of
the Ship;

 

(c)                                  in the case of oil pollution
liability risks, for an aggregate amount equal to the highest level of cover
from time to time available under basic protection and indemnity club entry and
in the international marine insurance market;

 

(d)                                 in relation to protection and
indemnity risks in respect of the Ship’s full tonnage;

 

(e)                                  on approved terms; and

 

(f)                                    through approved brokers and
with approved insurance companies and/or underwriters or, in the case of war
risks and protection and indemnity risks, in approved war risks and protection
and indemnity risks associations.

 

13.4                        Further
protections for the Creditor Parties.  In
addition to the terms set out in Clause 13.3, the Borrower shall procure
that the obligatory insurances shall:

 

(a)                                  whenever the Security Trustee
requires, name (or be amended to name) the Security Trustee as additional named
assured for its rights and interests, warranted no operational interest and
with full waiver of rights of subrogation against the Lenders, but without the
Security Trustee thereby being liable to pay (but having the right to pay)
premiums, calls or other assessments in respect of such insurance;

 

(b)                                 name the Security Trustee as
loss payee with such directions for payment as the Security Trustee may
specify;

 

(c)                                  provide that all payments by
or on behalf of the insurers under the obligatory insurances to the Security
Trustee shall be made without set-off, counterclaim or deductions or condition
whatsoever;

 

(d)                                 provide that such obligatory
insurances shall be primary without right of contribution from other insurances
which may be carried by the Security Trustee or any other Creditor Party; and

 

(e)                                  provide that the Security
Trustee may make proof of loss if the relevant Owner fails to do so.

 

13.5                        Renewal
of obligatory insurances.  The Borrower
shall ensure that each Owner shall:

 

(a)                                  at least 21 days before the
expiry of any obligatory insurance effected by each Owner:

 

(i)                                     notify the Security Trustee of
the brokers (or other insurers) and any protection and indemnity or war risks
association through or with whom that Owner proposes to renew that obligatory
insurance and of the proposed terms of renewal; and

 

26

 

(ii)                                  obtain the Security Trustee’s
approval to the matters referred to in paragraph (i);

 

(b)                                 at least 14 days before the
expiry of any obligatory insurance, renew that obligatory insurance in
accordance with the Security Trustee’s approval pursuant to paragraph (a); and

 

(c)                                  procure that the approved
brokers and/or the war risks and protection and indemnity associations with
which such a renewal is effected shall promptly after the renewal notify the
Security Trustee in writing of the terms and conditions of the renewal.

 

13.6                        Copies of
policies; letters of undertaking.  The
Borrower shall ensure that all approved brokers provide the Security Trustee
with pro forma copies of all policies relating to the obligatory insurances
which they are to effect or renew and of a letter or letters or undertaking in
a form required by the Security Trustee and including undertakings by the
approved brokers that:

 

(a)                                  they will have endorsed on
each policy, immediately upon issue, a loss payable or cut-through clause and a
notice of assignment complying with the provisions of Clause 13.4;

 

(b)                                 they will hold such policies,
and the benefit of such insurances, to the order of the Security Trustee in
accordance with the said loss payable clause;

 

(c)                                  they will advise the Security
Trustee immediately of any material change to the terms of the obligatory
insurances;

 

(d)                                 they will notify the Security
Trustee, not less than 14 days before the expiry of the obligatory insurances,
in the event of their not having received notice of renewal instructions from
the relevant Owner or its agents and, in the event of their receiving
instructions to renew, they will promptly notify the Security Trustee of the
terms of the instructions; and

 

(e)                                  they will not set off against
any sum recoverable in respect of a claim relating to a Ship under such
obligatory insurances any premiums or other amounts due to them or any other
person whether in respect of that Ship or otherwise, they waive any lien on the
policies, or any sums received under them, which they might have in respect of
such premiums or other amounts, and they will not cancel such obligatory
insurances by reason of non-payment of such premiums or other amounts, and will
arrange for a separate policy to be issued in respect of that Ship forthwith
upon being so requested by the Security Trustee.

 

13.7                        Copies of
certificates of entry.  The Borrower
shall ensure that any protection and indemnity and/or war risks associations in
which each Ship is entered provides the Security Trustee with:

 

(a)                                  a certified copy of the
certificate of entry for the Ship;

 

(b)                                 a letter or letters of
undertaking in such form as may be required by the Security Trustee; and

 

(c)                                  a certified copy of each
certificate of financial responsibility for pollution by oil or other
Environmentally Sensitive Material issued by the relevant certifying authority
in relation to the Ship.

 

13.8                        Deposit
of original policies.  The Borrower
shall ensure that all policies relating to obligatory insurances are deposited
with the approved brokers through which the insurances are effected or renewed.

 

27

 

 

13.9                        Payment
of premiums.  The Borrower shall ensure that
all premiums or other sums of money from time to time due in respect of the
obligatory insurances are paid in full and produce all relevant receipts when
so required by the Security Trustee.

 

13.10                 Guarantees.  The Borrower shall arrange for the execution
and delivery of all guarantees required by a protection and indemnity or war
risks association are promptly issued and remain in full force and effect.

 

13.11                 Compliance
with terms of insurances.  The Borrower
shall neither do nor omit to do (nor permit to be done or not to be done) any
act or thing which would or might render any obligatory insurance in relation
to any Ship invalid, void, voidable or unenforceable or render any sum payable
under an obligatory insurance repayable in whole or in part; and, in
particular:

 

(a)                                  the Borrower shall procure
that each Owner shall (in the case of the Ship owned by it) take all necessary
action and comply with all requirements which may from time to time be applicable
to the obligatory insurances, and (without limiting the obligation contained in
Clause 13.6(c)) ensure that the obligatory insurances are not made subject to
any exclusions or qualifications to which the Security Trustee has not given
its prior approval;

 

(b)                                 the Borrower shall procure
that no Owner shall (in the case of the Ship owned by it) make any changes
relating to the classification or Classification Society or manager or operator
of the Ship approved by the underwriters of the obligatory insurances;

 

(c)                                  the Borrower shall procure
that each Owner shall (in the case of the Ship owned by it) make (and promptly
supply copies to the Agent of) all quarterly or other voyage declarations which
may be required by the protection and indemnity risks association in which the
Ship is entered to maintain cover for trading to the United States of America
and Exclusive Economic Zone (as defined in the United States Oil Pollution Act
1990 or any other applicable legislation); and

 

(d)                                 the Borrower shall procure
that no Owner shall (in the case of the Ship owned by it) employ the Ship, nor
allow it to be employed, otherwise than in conformity with the terms and
conditions of the obligatory insurances, without first obtaining the consent of
the insurers and complying with any requirements (as to extra premium or
otherwise) which the insurers specify.

 

13.12                 Alteration
to terms of insurances.  The Borrower
will procure that no Owner shall either make or agree to any alteration to the
terms of any obligatory insurance nor waive any right relating to any
obligatory insurance.

 

13.13                 Settlement
of claims.  The Borrower shall procure that
no Owner shall (in the case of the Ship owned by it) settle, compromise or
abandon any claim under any obligatory insurance for Total Loss or for a Major
Casualty, and shall do all things necessary and provide all documents, evidence
and information to enable the Security Trustee to collect or recover any moneys
which at any time become payable in respect of the obligatory insurances.

 

13.14                 Provision
of copies of communications.  The Borrower
shall procure that each Owner (in respect of the Ship owned by it) shall
provide the Security Trustee, at the time of each such communication, copies of
all written communications between that Owner and:

 

(a)                                  the approved brokers;

 

(b)                                 the approved protection and
indemnity and/or war risks associations; and

 

(c)                                  the approved insurance
companies and/or underwriters, which relate directly or indirectly to:

 

28

 

(i)                                     the relevant Owner’s
obligations relating to the obligatory insurances including, without
limitation, all requisite declarations and payments of additional premiums or
calls; and

 

(ii)                                  any credit arrangements made
between the relevant Owner and any of the persons referred to in paragraphs (a) or
(b) relating wholly or partly to the effecting or maintenance of the
obligatory insurances.

 

13.15                 Provision
of information.  In addition,
the Borrower shall promptly provide the Security Trustee (or any persons which
it may designate) with any information which the Security Trustee (or any such
designated person) requests for the purpose of:

 

(a)                                  obtaining or preparing any
report from an independent marine insurance broker as to the adequacy of the
obligatory insurances effected or proposed to be effected; and/or

 

(b)                                 effecting, maintaining or
renewing any such insurances as are referred to in Clause 13.16 below or
dealing with or considering any matters relating to any such insurances,

 

                                                and the Borrower shall, within 5 Business Days
following demand, indemnify the Security Trustee in respect of all reasonable,
out-of-pocket fees and other expenses incurred by or for the account of the
Security Trustee in connection with any such report as is referred to in
paragraph (a).

 

13.16                 Mortgagee’s
interest, additional perils and political risk insurances.  The Security Trustee shall be entitled from
time to time to effect, maintain and renew a mortgagee’s interest additional
perils insurance and a mortgagee’s interest marine insurance in such amounts
(but at least 110 per cent. of the Loan), on such terms, through such insurers
and generally in such manner as the Security Trustee may from time to time
consider appropriate and the Borrower shall upon demand fully indemnify the
Security Trustee in respect of all premiums and other reasonable, out-of-pocket
expenses which are incurred in connection with or with a view to effecting,
maintaining or renewing any such insurance or dealing with, or considering, any
matter arising out of any such insurance.

 

14                                  SHIP
COVENANTS

 

14.1                        General.  The Borrower also undertakes with each
Creditor Party to comply with the following provisions of this Clause 14 at all
times during the Security Period and, as applicable, to procure that the Owners
shall comply with the provisions of this Clause 14 in each case except as the
Agent, with the authorisation of the Majority Lenders, may otherwise permit.

 

14.2                        Ship’s
name and registration.  The Borrower
shall procure that each Owner shall keep the Ship owned by it registered in its
name as a Panamanian Ship; shall not do, omit to do or allow to be done
anything as a result of which such registration might be cancelled or
imperilled; and shall not change the name (other than as contemplated in the
Recitals) or port of registry of the Ship owned by it.

 

14.3                        Repair
and classification.  The Borrower
shall procure that each Owner shall keep the Ship owned by it in a good and
safe condition and state of repair:

 

(a)                                  consistent with first-class
ship ownership and management practice;

 

(b)                                 so as to maintain the highest
classification for vessels of the same age and type as that Ship with the
Classification Society, free of overdue recommendations and conditions; and

 

29

 

(c)                                  so as to comply with all laws
and regulations applicable to vessels registered at ports in Panama or to
vessels trading to any jurisdiction to which that Ship may trade from time to
time, including but not limited to the ISM Code and the ISPS Code.

 

14.4                        Modification.  The Borrower shall procure that no Owner
shall (in the case of the Ship owned by it) make any modification or repairs
to, or replacement of, the Ship or equipment installed on the Ship which would
or might materially alter the structure, type or performance characteristics of
the Ship or materially reduce its value.

 

14.5                        Removal
of parts.  The Borrower shall procure that no Owner
shall (in the case of the Ship owned by it) remove any material part of the
Ship, or any material item of equipment installed on, the Ship unless the part
or item so removed is forthwith replaced by a suitable part or item which is in
the same condition as or better condition than the part or item removed, is
free from any Security Interest or any right in favour of any person other than
the Security Trustee and becomes on installation on the Ship the property of
the relevant Owner and subject to the security constituted by the relevant
Mortgage Provided that an Owner may install
equipment owned by a third party if the equipment can be removed without any
risk of damage to the Ship concerned.

 

14.6                        Surveys.  The Borrower shall procure that each Owner
shall (in the case of the Ship owned by it) submit the Ship regularly to all
periodical or other surveys which may be required for classification purposes
and, if so required by the Security Trustee provide the Security Trustee, with
copies of all survey reports.

 

14.7                        Prevention
of and release from arrest.  The Borrower
shall procure that each Owner shall (in the case of the Ship owned by it),
promptly discharge before the same becomes overdue (unless being contested in
good faith by appropriate proceedings promptly instituted and diligently
pursued where appropriate reserves have been established):

 

(a)                                  all liabilities which give or
may give rise to maritime or possessory liens on or claims enforceable against
the Ship, the Earnings or the Insurances in relation to that Ship;

 

(b)                                 all taxes, dues and other
amounts charged in respect of the Ship, the Earnings or the Insurances in
relation to that Ship; and

 

(c)                                  all other outgoings whatsoever
in respect of the Ship, the Earnings or the Insurances in relation to that
Ship,

 

and, forthwith upon receiving notice of the arrest of
the Ship, or of its detention in exercise or purported exercise of any lien or
claim, the Borrower shall procure its release by providing bail or otherwise as
the circumstances may require.

 

14.8                        Compliance
with laws etc.  The Borrower shall procure that
each Owner shall:

 

(a)                                  comply, or procure compliance
with the ISM Code, the ISPS Code, all Environmental Laws and all other laws or
regulations relating to the Ship owned by it, its ownership, operation and
management or to the business of the Owner;

 

(b)                                 not employ the Ship owned by
it nor allow its employment in any manner contrary to any law or regulation in
any relevant jurisdiction including but not limited to the ISM Code and the
ISPS Code; and

 

(c)                                  in the event of hostilities in
any part of the world (whether war is declared or not), not cause or permit the
Ship owned by it to enter or trade to any zone which is declared a war zone by
any government or by the war risks insurers of the Ship owned by it unless the
prior written consent of the Security Trustee has been given and the Borrower
has (at its expense) effected or procure that the relevant Owner has effected
any special, additional or modified insurance cover which the Security Trustee
may require.

 

30

 

14.9                        Provision
of information.  The Borrower
shall procure that each Owner shall (in the case of the Ship owned by it),
promptly provide the Security Trustee with any information which it requests
regarding:

 

(a)                                  the Ship, its employment,
position and engagements;

 

(b)                                 the Earnings and payments and
amounts due to the Ship’s master and crew;

 

(c)                                  any expenses incurred, or
likely to be incurred, in connection with the operation, maintenance or repair
of the Ship and any payments made in respect of the Ship;

 

(d)                                 any towages and salvages; and

 

(e)                                  the Owner’s, the Approved
Manager’s or the Ship’s compliance with the ISM Code and the ISPS Code,

 

                                                and, upon the Security Trustee’s request,
provide copies of any current charter relating to the Ship, of any current
charter guarantee and copies of the Ship’s Safety Management Certificate and/or
the relevant Owner’s or the Approved Manager’s 
Document of Compliance.

 

14.10                 Notification
of certain events.  The Borrower
(or the relevant Owner as the case may be) shall immediately notify the
Security Trustee by fax, confirmed forthwith, by letter of:

 

(a)                                  any casualty which is or is
likely to be or to become a Major Casualty;

 

(b)                                 any occurrence as a result of
which a Ship has become or is, by the passing of time or otherwise, likely to
become a Total Loss;

 

(c)                                  any requirement or
recommendation made by any insurer or the Classification Society or by any
competent authority which is not complied with in accordance with its terms;

 

(d)                                 any arrest or detention of a
Ship, any exercise or purported exercise of any lien on any Ship or its
Earnings or any requisition of a Ship for hire;

 

(e)                                  any intended dry docking of a
Ship;

 

(f)                                    any Environmental Claim made
against the Borrower or an Owner in connection with a Ship or any Environmental
Incident;

 

(g)                                 any claim for breach of the
ISM Code or the ISPS Code being made against an Owner, the Approved Manager or
otherwise in connection with a Ship; or

 

(h)                                 any other matter, event or
incident, actual or threatened, the effect of which will or could lead to the
ISM Code or the ISPS Code not being complied with,

 

and the Borrower (or the relevant Owner as
the case may be) shall keep the Security Trustee advised in writing on a
regular basis and in such detail as the Security Trustee shall require of the
Owner’s, the Approved Manager’s or any other person’s response to any of those
events or matters.

 

14.11                 Restrictions
on chartering, appointment of managers etc.  The
Borrower shall procure that no Owner shall (in the case of the Ship owned by
it):

 

(a)                                  let the Ship on demise charter
for any period;

 

31

 

(b)                                 enter into any time or
consecutive voyage charter in respect of the Ship for a term which exceeds, or
which by virtue of any optional extensions may exceed, 13 months;

 

(c)                                  enter into any charter in
relation to the Ship under which more than 2 months’ hire (or the equivalent)
is payable in advance;

 

(d)                                 charter the Ship otherwise
than on bona fide arm’s length terms at the time when the Ship is fixed;

 

(e)                                  appoint a manager of the Ship
other than the Approved Manager or agree to any alteration to the terms of the
Approved Manager’s appointment;

 

(f)                                    de-activate or lay up the
Ship; or

 

(g)                                 put the Ship into the
possession of any person for the purpose of work being done upon her in an
amount exceeding or likely to exceed $500,000 (except in the case of the
anticipated dry docking in respect of BAFFIN where such amount shall be
increased to $1,000,000 for the purposes of such dry docking only) (or the
equivalent in any other currency) unless that person has first given to the
Security Trustee and in terms satisfactory to it a written undertaking not to
exercise any lien on the Ship or the Earnings for the cost of such work or for
any other reason.

 

14.12                 Notice of
Mortgage.  The Borrower shall procure that each Owner
shall (in the case of the Ship owned by it), keep the relevant Mortgage
registered against the relevant Ship as a valid first preferred mortgage, carry
on board the Ship a certified copy of the relevant Mortgage and place and
maintain in a conspicuous place in the navigation room and the Master’s cabin
of the Ship a framed printed notice stating that the Ship is mortgaged by the
relevant Owner to the Security Trustee.

 

14.13                 Sharing
of Earnings.  The Borrower will procure that
no Owner shall (in the case of the Ship owned by it) enter into any agreement
or arrangement for the sharing of any Earnings.

 

14.14                 ISPS Code.  The Borrower shall procure that each Owner
shall (in the case of the Ship owned by it) comply with the ISPS Code and in
particular, without limitation, shall:

 

(a)                                  procure that the Ship and the
company responsible for the Ship’s compliance with the ISPS Code comply with
the ISPS Code;

 

(b)                                 maintain for the Ship an ISSC;
and

 

(c)                                  notify the Agent immediately
in writing of any actual or threatened withdrawal, suspension, cancellation or
modification of the ISSC.

 

15                                  SECURITY
COVER

 

15.1                        Minimum
required security cover.  Clause 15.2
applies if the Agent notifies the Borrower that:

 

(a)                                  the aggregate market values
(determined as provided in Clause 15.3) of the Ships; plus

 

(b)                                 the amount standing to the
credit of the Collateral Account; plus

 

(c)                                  the net realisable value of
any additional security previously provided under this Clause 15,

 

                                                is below 200 per cent. of the Loan.

 

32

 

15.2                        Provision
of additional security; prepayment.  If
the Agent serves a notice on the Borrower under Clause 15.1, the Borrower
shall, within 1 month after the date on which the Agent’s notice is served,
either:

 

(a)                                  provide, or ensure that a
third party provides, additional security which, in the opinion of the Majority
Lenders, has a net realisable value at least equal to the shortfall and is
documented in such terms as the Agent may, with the authorisation of the
Majority Lenders, approve or require; or

 

(b)                                 prepay such part (at least) of
the Loan as will eliminate the shortfall.

 

15.3                        Valuation
of Ships.  The market value of a Ship at any date is
that shown by the average of 2 valuations prepared:

 

(a)                                  as at a date not more than 28
days previously;

 

(b)                                 by an Approved Broker;

 

(c)                                  without physical inspection of
that Ship;

 

(d)                                 on the basis of a sale for
prompt delivery for cash on normal arm’s length commercial terms as between a
willing seller and a willing buyer, free of any existing charter or other
contract of employment; and

 

(e)                                  after deducting the estimated
amount of the usual and reasonable expenses which would be incurred in
connection with the sale.

 

The initial aggregate value of the Ships on the date
of this Agreement (as determined in accordance with Clause 15.3) is
$100,000,000.

 

15.4                        Value of
additional vessel security.  The net
realisable value of any additional security which is provided under Clause 15.2
and which consists of a Security Interest over a vessel shall be that shown by
a valuation complying with the requirements of Clause 15.3.

 

15.5                        Valuations
binding.  Any valuations under Clause 15.1 shall be
binding and conclusive as regards the Borrower or the Owners.

 

15.6                        Provision
of information.  The Borrower
shall promptly provide the Agent and any shipbroker or expert acting under
Clause 15.1 with any information which the Agent or the shipbroker or expert
may request for the purposes of the valuation; and, if the Borrower fails to
provide the information by the date specified in the request, the valuation may
be made on any basis and assumptions which the shipbroker or the Majority
Lenders (or the expert appointed by them) consider prudent.

 

15.7                        Payment
of valuation expenses.  Without
prejudice to the generality of the Borrower’s obligations under Clauses 20.2,
20.3 and 21.3, the Borrower shall, on demand, pay the Agent the amount of the
fees and expenses of any shipbroker or expert instructed by the Agent under
this Clause and all reasonable, out-of-pocket legal and other expenses incurred
by the Agent or the Security Trustee in connection with any matter arising out
of this Clause.

 

15.8                        Application
of prepayment.  Clause 8 shall apply in
relation to any prepayment pursuant to Clause 15.2(b).

 

33

 

16                                  PAYMENTS
AND CALCULATIONS

 

16.1                        Currency
and method of payments.  All payments
to be made by the Lenders or by the Borrower under a Finance Document shall be
made to the Agent or to the Security Trustee, in the case of an amount payable
to it:

 

(a)                                  by not later than 11.00 a.m.
(New York City time) on the due date;

 

(b)                                 in same day Dollar funds
settled through the New York Clearing House Interbank Payments System (or in
such other Dollar funds and/or settled in such other manner as the Agent shall
specify as being customary at the time for the settlement of international
transactions of the type contemplated by this Agreement);

 

(c)                                  in the case of an amount payable
by a Lender to the Agent or by the Borrower to the Agent or any Lender, to the
account of the Agent at Bank of New York, 1 Wall Street, New York (Account No
890 0047003 SWIFT Code IRVTUS3N quoting the reference “Britannia Bulk plc”), or
to such other account with such other bank as the Agent may from time to time
notify to the Borrower and the other Creditor Parties; and

 

(d)                                 in the case of an amount
payable to the Security Trustee, to such account as it may from time to time
notify to the Borrower and the other Creditor Parties.

 

16.2                        Payment
on non-Business Day.  If any payment
by the Borrower under a Finance Document would otherwise fall due on a day
which is not a Business Day:

 

(a)                                  the due date shall be extended
to the next succeeding Business Day; or

 

(b)                                 if the next succeeding
Business Day falls in the next calendar month, the due date shall be brought
forward to the immediately preceding Business Day,

 

                                                and interest shall be payable during any
extension under paragraph (a) at the rate payable on the original due
date.

 

16.3                        Basis for
calculation of periodic payments.  All
interest and any other payments under any Finance Document which are of an
annual or periodic nature shall accrue from day to day and shall be calculated
on the basis of the actual number of days elapsed and a 360 day year.

 

16.4                        Distribution
of payments to Creditor Parties. 
Subject to Clauses 16.5, 16.6 and 16.7:

 

(a)                                  any amount received by the
Agent under a Finance Document for distribution or remittance to a Lender or
the Security Trustee shall be made available by the Agent to that Lender or, as
the case may be, the Security Trustee by payment, with funds having the same
value as the funds received, to such account as the Lender or the Security
Trustee may have notified to the Agent not less than 5 Business Days
previously; and

 

(b)                                 amounts to be applied in
satisfying amounts of a particular category which are due to the Lenders
generally shall be distributed by the Agent to each Lender pro rata to the
amount in that category which is due to it.

 

16.5                        Permitted
deductions by Agent. 
Notwithstanding any other provision of this Agreement or any other
Finance Document, the Agent may, before making an amount available to a Lender,
deduct and withhold from that amount any sum which is then due and payable to
the Agent from that Lender under any Finance Document or any sum which the
Agent is then entitled under any Finance Document to require that Lender to pay
on demand.

 

34

 

16.6                        Agent only
obliged to pay when monies received. 
Notwithstanding any other provision of this Agreement or any other
Finance Document, the Agent shall not be obliged to make available to the
Borrower or any Lender any sum which the Agent is expecting to receive for
remittance or distribution to the Borrower or that Lender until the Agent has
satisfied itself that it has received that sum.

 

16.7                        Refund to
Agent of monies not received.  If and to the
extent that the Agent makes available a sum to the Borrower or a Lender,
without first having received that sum, the Borrower or (as the case may be)
the Lender concerned shall, on demand:

 

(a)                                  refund the sum in full to the
Agent; and

 

(b)                                 pay to the Agent the amount
(as certified by the Agent) which will indemnify the Agent against any funding
or other loss, liability or expense incurred by the Agent as a result of making
the sum available before receiving it.

 

16.8                        Agent may
assume receipt.  Clause 16.7
shall not affect any claim which the Agent has under the law of restitution,
and applies irrespective of whether the Agent had any form of notice that it
had not received the sum which it made available.

 

16.9                        Creditor
Party accounts.  Each Creditor
Party shall maintain accounts showing the amounts owing to it by the Borrower
and each Security Party under the Finance Documents and all payments in respect
of those amounts made by the Borrower and any Security Party.

 

16.10                 Agent’s
memorandum account.  The Agent
shall maintain a memorandum account showing the amounts advanced by the Lenders
and all other sums owing to the Agent, the Security Trustee and each Lender
from the Borrower and each Security Party under the Finance Documents and all
payments in respect of those amounts made by the Borrower and any Security
Party.

 

16.11                 Accounts
prima facie evidence.  If any
accounts maintained under Clauses 16.9 and 16.10 show an amount to be owing by
the Borrower or a Security Party to a Creditor Party, those accounts shall be
prima facie evidence that that amount is owing to that Creditor Party.

 

17                                  APPLICATION
OF RECEIPTS

 

17.1                        Normal
order of application.  Except as any
Finance Document may otherwise provide, any sums which are received or
recovered by any Creditor Party under or by virtue of any Finance Document
shall be applied:

 

(a)                                  FIRST: in or towards payment
pro rata of any unpaid fees, costs and expenses of the Agent and the Security
Trustee under the Finance Documents;

 

(b)                                 SECONDLY: in or towards
payment pro rata of any accrued interest or commission due but unpaid under this
Agreement;

 

(c)                                  THIRDLY: in or towards payment
pro rata of any principal due but unpaid under this Agreement;

 

(d)                                 FOURTHLY: in or towards
payment pro rata of any other amounts due but unpaid under any Finance
Document;

 

(e)                                  FIFTHLY: in retention of an amount
equal to any amount not then due and payable under any Finance Document but
which the Agent acting in good faith, by notice to the Borrower, the Security
Parties and the other Creditor Parties, states in its opinion will become due
and payable in the future and, upon those amounts becoming due and 

 

35

 

payable, in or towards satisfaction of them in
accordance with the provisions of Clause 17.1(a), 17.1(b), 17.1(c) and
17.1(d); and

 

(f)                                    SIXTHLY: any surplus shall be
paid to the Borrower or to any other person appearing to be entitled to it.

 

18                                  APPLICATION
OF EARNINGS

 

18.1                        Payment
of Earnings.  The Borrower undertakes with
each Creditor Party to ensure that, throughout the Security Period (and subject
only to the provisions of the General Assignments), all the Earnings of each
Ship are paid to the Earnings Account.

 

18.2                        Payments from
Earnings Account.  At all times other than during
the continuation of an Event of Default, moneys in the Earnings Account shall
be applied:

 

(a)                                  first, to make the payment
required by Clause 18.3;

 

(b)                                 secondly, to pay all amounts
due to the Creditor Parties under this Agreement (including but not limited to
accrued interest due pursuant to Clause 5.1); and

 

(c)                                  thirdly, any remaining balance
to be made available to the Owners and/or the Borrower for use in their sole
discretion.

 

Following the occurrence of an Event of
Default and while it is continuing neither the Borrower nor the Owners shall be
permitted to use any moneys standing to the credit of the Earnings Account.

 

18.3                        Collateral
Account.  The Borrower undertakes with each Creditor
Party to ensure that on the date falling one month after the Drawdown Date and
on the same date of each month thereafter during the Security Period there is
transferred to the Collateral Account out of the Earnings received in the
Earnings Account during the preceding month a minimum amount of $600,000.  Any balance standing to the credit of the
Collateral Account shall be applied against the Loan on the Repayment Date but
may, upon the Borrower’s request, be applied (in whole or in part) to make a
voluntary prepayment of the Loan at any time prior to the Repayment Date.  Neither the Borrower nor any Owner shall be
permitted to use or access the moneys standing to the credit of the Collateral
Account other than to make a prepayment of the Loan.

 

18.4                        Location
of accounts.  The Borrower shall procure that
the Owners shall promptly:

 

(a)                                  comply with any requirement of
the Agent as to the location or re-location of the Earnings Account and the
Collateral Account (or either of them); and

 

(b)                                 execute any documents which
the Agent specifies to create or maintain in favour of the Security Trustee a
Security Interest over (and/or rights of set-off, consolidation or other rights
in relation to) the Earnings Account and the Collateral Account.

 

18.5                        Debits
for expenses etc.  The Agent
shall be entitled (but not obliged) from time to time to debit the Earnings
Account without prior notice in order to discharge any amount due and payable
under Clause 20 or 21 to a Creditor Party or payment of which any Creditor
Party has become entitled to demand under Clause 20 or 21.

 

18.6                        Borrower’s
obligations unaffected.  The provisions
of this Clause 18 do not affect:

 

(a)                                  the liability of the Borrower
to make payments of principal and interest on the due dates; or

 

36

 

(b)                                 any other liability or
obligation of the Borrower or any Security Party under any Finance Document.

 

19                                  EVENTS OF
DEFAULT

 

19.1                        Events of
Default.  An Event of Default occurs if:

 

(a)                                  the Borrower or any Security
Party fails to pay when due any sum payable under a Finance Document or under
any document relating to a Finance Document except where such failure to pay is
caused by an administrative or technical error in which case the Borrower or
any Security Party fails to pay any such sum within 3 Business Days of its due
date; or

 

(b)                                 any breach occurs of Clause
9.2, 11.2, 11.3, 12.2, 12.3, 13 or 15.2; or

 

(c)                                  any breach by the Borrower or
any Security Party occurs of any provision of a Finance Document that does not
contain a specific grace period (other than a breach covered by paragraphs (a) or
(b)) which, in the opinion of the Majority Lenders, is capable of remedy, and
such default continues unremedied 10 days after written notice from the Agent
requesting action to remedy the same; or

 

(d)                                 (subject to any applicable
grace period specified in the Finance Document) any breach by the Borrower or
any Security Party occurs of any provision of a Finance Document (other than a
breach falling within paragraphs (a), (b) or (c)); or

 

(e)                                  any representation or warranty
made or repeated by, or by an officer of, the Borrower or a Security Party in a
Finance Document or in a Drawdown Notice or any other notice or document
relating to a Finance Document is untrue or misleading in any material respect
when it is made or repeated; or

 

(f)                                    any of the following occurs in
relation to any Financial Indebtedness of a Relevant Person (but limited to
Financial Indebtedness in respect of $1,000,000 or more in the case of the
Borrower or any Relevant Person which is not a Security Party):

 

(i)                                     any Financial Indebtedness of
a Relevant Person is not paid when due; or

 

(ii)                                  any Financial Indebtedness of
a Relevant Person becomes due and payable or capable of being declared due and
payable prior to its stated maturity date as a consequence of any event of
default; or

 

(iii)                               a lease, hire purchase
agreement or charter creating any Financial Indebtedness of a Relevant Person
is terminated by the lessor or owner or becomes capable of being terminated as
a consequence of any termination event; or

 

(iv)                              any overdraft, loan, note
issuance, acceptance credit, letter of credit, guarantee, foreign exchange or
other facility, or any swap or other derivative contract or transaction,
relating to any Financial Indebtedness of a Relevant Person ceases to be
available or becomes capable of being terminated as a result of any event of
default, or cash cover is required, or becomes capable of being required, in
respect of such a facility as a result of any event of default; or

 

(v)                                 any Security Interest securing
any Financial Indebtedness of a Relevant Person becomes enforceable; or

 

(g)                                 any of the following occurs in
relation to a Relevant Person:

 

(i)                                     a Relevant Person becomes, in
the opinion of the Majority Lenders, unable to pay its debts as they fall due;
or

 

37

 

(ii)                                  any assets of a Relevant
Person are subject to any form of execution, attachment, arrest, sequestration
or distress in respect of a sum of, or sums aggregating, $250,000 or more or
the equivalent in another currency unless stayed; or

 

(iii)                               any administrative or other
receiver is appointed over any asset of a Relevant Person; or

 

(iv)                              an administrator
is appointed (whether by the court or otherwise) in respect of a Relevant
Person; or

 

(v)                                 any formal
declaration of bankruptcy or any formal statement to the effect that a Relevant
Person is insolvent or likely to become insolvent is made by a Relevant Person
or by the directors of a Relevant Person or, in any proceedings, by a lawyer
acting for a Relevant Person; or

 

(vi)                              a provisional
liquidator is appointed in respect of a Relevant Person, a winding up order is
made in relation to a Relevant Person or a winding up resolution is passed by a
Relevant Person; or

 

(vii)                           a resolution is
passed, an administration notice is given or filed, an application or petition
to a court is made or presented or any other step is taken by (aa) a Relevant Person, (bb) the
members or directors of a Relevant Person, (cc) a holder of Security Interests
which together relate to all or substantially all of the assets of a Relevant
Person, or (dd) a government minister or public or regulatory authority of a
Pertinent Jurisdiction for or with a view to the winding up of that or another
Relevant Person or the appointment of a provisional liquidator or administrator
in respect of that or another Relevant Person, or that or another Relevant
Person ceasing or suspending business operations or payments to creditors, save
that this paragraph does not apply to a fully solvent winding up of a Relevant
Person other than the Borrower or an Owner (prior to the disposition of the
Ship owned by such Owner and the making of the mandatory prepayment required by
Clause 8.6) which is, or is to be, effected for the purposes of an amalgamation
or reconstruction previously approved by the Majority Lenders and effected not
later than 3 months after the commencement of the winding up; or

 

(viii)                        an administration
notice is given or filed, an application or petition to a court is made or
presented or any other step is taken by a creditor of a Relevant Person (other
than a holder of Security Interests which together relate to all or
substantially all of the assets of a Relevant Person) for the winding up of a
Relevant Person or the appointment of a provisional liquidator or administrator
in respect of a Relevant Person in any Pertinent Jurisdiction, unless the
proposed winding up, appointment of a provisional liquidator or administration
is being contested in good faith, on substantial grounds and not with a view to
some other insolvency law procedure being implemented instead and either (aa)
the application or petition is dismissed or withdrawn within 30 days of being
made or presented, or (bb) within 30 days of the administration notice being
given or filed, or the other relevant steps being taken, other action is taken
which will ensure that there will be no administration and (in both cases (aa)
or (bb)) the Relevant Person will continue to carry on business in the ordinary
way and without being the subject of any actual, interim or pending insolvency
law procedure; or

 

(ix)                                a Relevant Person
or its directors take any steps (whether by making or presenting an application
or petition to a court, or submitting or presenting a document setting out a
proposal or proposed terms, or otherwise) with a view to obtaining, in relation
to that or another Relevant Person, any form of moratorium, suspension or
deferral of payments, reorganisation or arrangement with respect to such
Relevant Person’s debt generally or all or a substantial proportion (by number
or value) of creditors or of any class of them or any such moratorium, suspension
or deferral of payments, reorganisation or arrangement is effected by court
order, by the filing of documents with a court, by means of a contract or in
any other way at all; or

 

38

 

(x)                                   any meeting of
the members or directors, or of any committee of the board or senior
management, of a Relevant Person is held or summoned for the purpose of
considering a resolution or proposal to authorise or take any action of a type
described in paragraphs (iv) to (ix) or a step preparatory to such
action, or (with or without such a meeting) the members, directors or such a
committee resolve or agree that such an action or step should be taken or
should be taken if certain conditions materialise or fail to materialise; or

 

(xi)                                in a Pertinent
Jurisdiction other than England, any event occurs, any proceedings are opened
or commenced or any step is taken which, in the opinion of the Majority Lenders
is similar to any of the foregoing; or

 

(h)                                 the Borrower ceases or
suspends carrying on its business or a part of its business which, in the
opinion of the Majority Lenders, is material in the context of this Agreement;
or

 

(i)                                     it becomes unlawful in any
Pertinent Jurisdiction or impossible:

 

(i)                                     for the Borrower or any
Security Party to discharge any liability under a Finance Document or to comply
with any other obligation which the Majority Lenders consider material under a
Finance Document;

 

(ii)                                  for the Agent, the Security
Trustee or the Lenders to exercise or enforce any right under, or to enforce
any Security Interest created by, a Finance Document; or

 

(j)                                     any consent necessary to
enable an Owner to own, operate or charter the Ship which it owns or to enable
the Borrower or any Security Party to comply with any provision which the
Majority Lenders consider material of a Finance Document or an MOA is not
granted, expires without being renewed, is revoked or becomes liable to
revocation or any condition of such a consent is not fulfilled; or

 

(k)                                  it appears to the Majority
Lenders that, without their prior consent, a Change of Control has occurred
after the date of this Agreement; or

 

(l)                                     any provision which the
Majority Lenders consider material of a Finance Document proves to have been or
becomes invalid or unenforceable, or a Security Interest created by a Finance
Document proves to have been or becomes invalid or unenforceable or such a
Security Interest proves to have ranked after, or loses its priority to, another
Security Interest or any other third party claim or interest (other than
Permitted Security Interests); or

 

(m)                               the security constituted by a
Finance Document is in any way imperilled or in jeopardy; or

 

(n)                                 any other event occurs or any
other circumstances arise or develop including, without limitation:

 

(i)                                     a change in the financial
position of any Relevant Person; or

 

(ii)                                  any accident or other event
not covered by insurance involving any Ship or another vessel owned, chartered
or operated by a Relevant Person;

 

in the light of which the Majority Lenders
consider that there is a significant risk that the Borrower or any Owner is, or
will later become, unable to discharge its liabilities under the Finance
Documents as they fall due.

 

39

 

19.2                        Actions
following an Event of Default.  On, or at any
time after, the occurrence of an Event of Default which is continuing:

 

(a)                                  the Agent may, and if so
instructed by the Majority Lenders, the Agent shall:

 

(i)                                     serve on the Borrower a notice
stating that the Commitments and all other obligations of each Lender to the
Borrower under this Agreement are cancelled; and/or

 

(ii)                                  serve on the Borrower a notice
stating that the Loan, all accrued interest and all other amounts accrued or
owing under this Agreement are immediately due and payable or are due and
payable on demand; and/or

 

(iii)                               take any other action which,
as a result of the Event of Default or any notice served under paragraph (i) or
(ii), the Agent and/or the Lenders are entitled to take under any Finance
Document or any applicable law; and/or

 

(b)                                 the Security Trustee may, and
if so instructed by the Agent, acting with the authorisation of the Majority
Lenders, the Security Trustee shall take any action which, as a result of the
Event of Default or any notice served under paragraph (a) (i) or
(ii), the Security Trustee, the Agent and/or the Lenders are entitled to take
under any Finance Document or any applicable law.

 

19.3                        Termination
of Commitments.  On the service
of a notice under Clause 19.2(a)(i), the Commitments and all other obligations
of each Lender to the Borrower under this Agreement shall be cancelled.

 

19.4                        Acceleration
of Loan.  On the service of a notice under Clause
19.2(a)(ii), the Loan, all accrued interest and all other amounts accrued or
owing from the Borrower or any Security Party under this Agreement and every
other Finance Document shall become immediately due and payable or, as the case
may be, payable on demand.

 

19.5                        Multiple
notices; action without notice.  The Agent may
serve notices under Clauses 19.2(a)(i) and (ii) simultaneously or on
different dates and it and/or the Security Trustee may take any action referred
to in Clause 19.2 if no such notice is served or simultaneously with or at any
time after the service of both or either of such notices.

 

19.6                        Notification
of Creditor Parties and Security Parties.  The
Agent shall send to each Lender, the Security Trustee and each Security Party a
copy or the text of any notice which the Agent serves on the Borrower under
Clause 19.2; but the notice shall become effective when it is served on the
Borrower, and no failure or delay by the Agent to send a copy or the text of
the notice to any other person shall invalidate the notice or provide the
Borrower or any Security Party with any form of claim or defence.

 

19.7                        Lender’s
rights unimpaired.  Nothing in
this Clause shall be taken to impair or restrict the exercise of any right
given to individual Lenders under a Finance Document or the general law; and,
in particular, this Clause is without prejudice to Clause 3.1.

 

19.8                        Exclusion
of Creditor Party liability.  No Creditor
Party, and no receiver or manager appointed by the Security Trustee, shall have
any liability to the Borrower or a Security Party:

 

(a)                                  for any loss caused by an
exercise of rights under, or enforcement of a Security Interest created by, a
Finance Document or by any failure or delay to exercise such a right or to
enforce such a Security Interest; or

 

40

 

(b)                                 as mortgagee in possession or
otherwise, for any income or principal amount which might have been produced by
or realised from any asset comprised in such a Security Interest or for any
reduction (however caused) in the value of such an asset,

 

                                                except that this does not
exempt a Creditor Party or a receiver or manager from liability for losses
shown to have been directly and mainly caused by the violation of law,
dishonesty or the wilful misconduct of such Creditor Party’s own officers and
employees or ( as the case may be) such receiver’s or manager’s own partners or
employees.

 

19.9                        Relevant
Persons.  In this Clause 19, a “Relevant
Person” means the Borrower, a Security Party, and any company which
is a subsidiary of the Borrower or a Security Party; but excluding any company
the value of whose gross assets is $1,000,000 or less.

 

19.10                 Interpretation.  In Clause 19.1(f), references to an event of
default or a termination event include any event, howsoever described, which is
similar to an event of default in a facility agreement or a termination event
in a finance lease; and in Clause 19.1(g), “petition”
includes an application.

 

20                                  FEES AND
EXPENSES

 

20.1                        Arrangement
fee.  The Borrower shall pay to the Agent on the
Drawdown Date, an arrangement fee of 1.50 per cent. of the amount of the Loan
for distribution among the Lenders in the proportions agreed by the Agent and
the Lenders.  The arrangement fee shall
be deducted from the proceeds of the Loan.

 

20.2                        Costs of
negotiation, preparation etc.  The Borrower
shall pay to the Agent on its demand the amount of all reasonable,
out-of-pocket expenses incurred by the Agent or the Security Trustee in
connection with the negotiation, preparation, execution or registration of any
Finance Document or any related document or with any transaction contemplated
by a Finance Document or a related document.

 

20.3                        Costs of
variations, amendments etc.  The Borrower
shall pay to the Agent, on the Agent’s demand, for the account of the Creditor
Party concerned, the amount of all reasonable, out-of-pocket expenses incurred
by a Creditor Party in connection with:

 

(a)                                  any amendment or supplement to
a Finance Document, or any proposal for such an amendment to be made;

 

(b)                                 any consent or waiver by the
Lenders, the Majority Lenders or the Creditor Party concerned under or in
connection with a Finance Document, or any request for such a consent or
waiver; or

 

(c)                                  the valuation of any security
provided or offered under Clause 15 or any other matter relating to such
security.

 

20.4                        Costs of
enforcement.  The Borrower shall pay to the
Agent, on the Agent’s demand, for the account of the Creditor Party concerned,
the amount of all expenses incurred by a Creditor Party in connection with any
step taken by the Lender concerned with a view to the protection, exercise or
enforcement of any right or Security Interest created by a Finance Document or
for any similar purpose.  There shall be
recoverable the full amount of all legal expenses, whether or not such as would
be allowed under rules of court or any taxation or other procedure carried
out under such rules.

 

20.5                        Documentary
taxes.  The Borrower shall promptly pay any tax
payable on or by reference to any Finance Document, and shall, on the Agent’s
demand, fully indemnify each Creditor Party against any claims, expenses,
liabilities and losses resulting from any failure or delay by the Borrower to
pay such a tax.

 

41

 

20.6                        Financial
Services Authority fees.  The Borrower
shall pay to the Agent, on the Agent’s demand, for the account of the Lender
concerned the amounts which the Agent from time to time notifies the Borrower
that a Lender has notified the Agent to be necessary to compensate it for the
cost attributable to its Contribution resulting from the imposition from time
to time under or pursuant to the Bank of England Act 1998 and/or by the Bank of
England and/or by the Financial Services Authority (or other United Kingdom
governmental authorities or agencies) of a requirement to pay fees to the
Financial Services Authority calculated by reference to liabilities used to
fund its Contribution.

 

20.7                        Certification
of amounts.  A notice which is signed by 2
officers of a Creditor Party, which states that a specified amount, or
aggregate amount, is due to that Creditor Party under this Clause 20 and which
indicates (without necessarily specifying a detailed breakdown) the matters in
respect of which the amount, or aggregate amount, is due shall be prima facie evidence
that the amount, or aggregate amount, is due.

 

21                                  INDEMNITIES

 

21.1                        Indemnities
regarding borrowing and repayment of Loan.  The
Borrower shall fully indemnify the Agent and each Lender on the Agent’s demand
and the Security Trustee on its demand in respect of all claims, expenses,
liabilities and losses (but excluding loss of Margin) which are made or brought
against or incurred by that Creditor Party, or which that Creditor Party
reasonably and with due diligence estimates that it will incur, as a result of
or in connection with:

 

(a)                                  the Loan not being borrowed on
the date specified in the Drawdown Notice for any reason other than a default
by the Lender claiming the indemnity;

 

(b)                                 the receipt or recovery of all
or any part of the Loan or an overdue sum otherwise than on the last day of an
Interest Period or other relevant period;

 

(c)                                  any failure (for whatever
reason) by the Borrower to make payment of any amount due under a Finance
Document on the due date or, if so payable, on demand (after giving credit for
any default interest paid by the Borrower on the amount concerned under Clause
7); and

 

(d)                                 the occurrence of an Event of
Default or a Potential Event of Default and/or the acceleration of repayment of
the Loan under Clause 19,

 

                                                and in respect of any tax
(other than tax on its overall net income) for which a Creditor Party is liable
in connection with any amount paid or payable to that Creditor Party (whether
for its own account or otherwise) under any Finance Document.

 

21.2                        Breakage
costs.  Without limiting its generality, Clause 21.1
covers any claim, expense, liability or loss, excluding loss of Margin,
incurred by a Lender:

 

(a)                                  in liquidating or employing
deposits from third parties acquired or arranged to fund or maintain all or any
part of its Contribution and/or any overdue amount (or an aggregate amount
which includes its Contribution or any overdue amount); and

 

(b)                                 in terminating, or otherwise
in connection with, any interest and/or currency swap or any other transaction
entered into (whether with another legal entity or with another office or
department of the Lender concerned) to hedge any exposure arising under this
Agreement or that part which the Lender concerned determines is fairly
attributable to this Agreement of the amount of the liabilities, expenses or
losses (including losses of prospective profits) incurred by it in terminating,
or otherwise in connection with, a number of transactions of which this
Agreement is one.

 

42

 

21.3                        Miscellaneous
indemnities.  The Borrower shall fully
indemnify each Creditor Party severally on their respective demands in respect
of all claims, expenses, liabilities and losses which may be made or brought
against or incurred by a Creditor Party, in any country, as a result of or in
connection with:

 

(a)                                  any action taken, or omitted
or neglected to be taken, under or in connection with any Finance Document by
the Agent, the Security Trustee or any other Creditor Party or by any receiver
appointed under a Finance Document; and

 

(b)                                 any other Pertinent Matter,

 

                                                other than claims, expenses,
liabilities and losses which are shown to have been directly and mainly caused
by the violation of law, dishonesty or wilful misconduct of the officers or
employees of the Creditor Party concerned.

 

Without prejudice to its generality, this
Clause 21.3 covers any claims, expenses, liabilities and losses which arise, or
are asserted, under or in connection with any law relating to safety at sea,
the ISM Code, the ISPS Code or any Environmental Law.

 

21.4                        Currency
indemnity.  If any sum due from the
Borrower or any Security Party to a Creditor Party under a Finance Document or
under any order or judgment relating to a Finance Document has to be converted
from the currency in which the Finance Document provided for the sum to be paid
(the “Contractual Currency”) into another
currency (the “Payment Currency”) for the purpose
of:

 

(a)                                  making or lodging any claim or
proof against the Borrower or any Security Party, whether in its liquidation,
any arrangement involving it or otherwise; or

 

(b)                                 obtaining an order or judgment
from any court or other tribunal; or

 

(c)                                  enforcing any such order or
judgment,

 

                                                the Borrower shall indemnify
the Creditor Party concerned against the loss arising when the amount of the
payment actually received by that Creditor Party is converted at the available
rate of exchange into the Contractual Currency.

 

                                                In this Clause 21.4, the “available rate of exchange” means the rate at which the
Creditor Party concerned is able at the opening of business (London time) on
the Business Day after it receives the sum concerned to purchase the
Contractual Currency with the Payment Currency.

 

                                                This Clause 21.4 creates a
separate liability of the Borrower which is distinct from its other liabilities
under the Finance Documents and which shall not be merged in any judgment or
order relating to those other liabilities.

 

21.5                        Certification
of amounts.  A notice which is signed by 2
officers of a Creditor Party, which states that a specified amount, or
aggregate amount, is due to that Creditor Party under this Clause 21 and which
indicates (without necessarily specifying a detailed breakdown) the matters in
respect of which the amount, or aggregate amount, is due shall be prima facie
evidence that the amount, or aggregate amount, is due.

 

21.6                        Sums
deemed due to a Lender.  For the
purposes of this Clause 21, a sum payable by the Borrower to the Agent or the
Security Trustee for distribution to a Lender shall be treated as a sum due to
that Lender.

 

43

 

22                                  NO SET-OFF
OR TAX DEDUCTION

 

22.1                        No
deductions.  All amounts due from the
Borrower under a Finance Document shall be paid:

 

(a)                                  without any form of set-off,
cross-claim or condition; and

 

(b)                                 free and clear of any tax
deduction except a tax deduction which the Borrower is required by law to make.

 

22.2                        Grossing-up
for taxes.  If the Borrower is required by
law to make a tax deduction from any payment:

 

(a)                                  the Borrower shall notify the
Agent as soon as it becomes aware of the requirement;

 

(b)                                 the Borrower shall pay the tax
deducted to the appropriate taxation authority promptly, and in any event
before any fine or penalty arises; and

 

(c)                                  the amount due in respect of
the payment shall be increased by the amount necessary to ensure that each
Creditor Party receives and retains (free from any liability relating to the
tax deduction) a net amount which, after the tax deduction, is equal to the
full amount which it would otherwise have received.

 

22.3                        Evidence
of payment of taxes.  Within 1 month
after making any tax deduction, the Borrower shall deliver to the Agent
documentary evidence satisfactory to the Agent that the tax had been paid to
the appropriate taxation authority.

 

22.4                        Exclusion
of tax on overall net income.  In this Clause
22 “tax deduction” means any deduction or
withholding for or on account of any present or future tax except tax on a
Creditor Party’s overall net income.

 

22.5                        Tax
credits.  A Creditor Party which receives for its own
account a repayment or credit in respect of tax on account of which the
Borrower has made an increased payment under Clause 22.2 shall pay to the
Borrower a sum equal to the proportion of the repayment or credit which that
Creditor Party allocates to the amount due from the Borrower in respect of
which the Borrower made the increased payment:

 

(a)                                  the Creditor Party shall not
be obliged to allocate to this transaction any part of a tax repayment or
credit which is referable to a class or number of transactions;

 

(b)                                 nothing in this Clause 22.4
shall oblige a Creditor Party to arrange its tax affairs in any particular
manner, to claim any type of relief, credit, allowance or deduction instead of,
or in priority to, another or to make any such claim within any particular
time;

 

(c)                                  nothing in this Clause 22.4
shall oblige a Creditor Party to make a payment which would leave it in a worse
position than it would have been in if the Borrower had not been required to
make a tax deduction from a payment; and

 

(d)                                 any allocation or
determination made by a Creditor Party under or in connection with this Clause
22.4 shall be conclusive and binding on the Borrower and the other Creditor
Parties.

 

23                                  ILLEGALITY,
ETC

 

23.1                        Illegality.  This Clause 23 applies if a Lender (the “Notifying Lender”) notifies the Agent that it has become, or
will with effect from a specified date, become:

 

44

 

(a)                                  unlawful or prohibited as a
result of the introduction of a new law, an amendment to an existing law or a
change in the manner in which an existing law is or will be interpreted or
applied; or

 

(b)                                 contrary to, or inconsistent
with, any regulation,

 

                                                for the Notifying Lender to
maintain or give effect to any of its obligations under this Agreement in the
manner contemplated by this Agreement.

 

23.2                        Notification
of illegality.  The Agent shall promptly notify
the Borrower, the Security Parties, the Security Trustee and the other Lenders
of the notice under Clause 23.1 which the Agent receives from the Notifying
Lender.

 

23.3                        Prepayment;
termination of Commitment.  On the Agent
notifying the Borrower under Clause 23.2, the Notifying Lender’s Commitment
shall terminate; and thereupon or, if later, on the date specified in the
Notifying Lender’s notice under Clause 23.1 as the date on which the notified
event would become effective the Borrower shall prepay the Notifying Lender’s
Contribution in accordance with Clause 8.

 

23.4                        Mitigation.  If circumstances arise which would result in
a notification under Clause 23.1 then, without in any way limiting the
rights of the Notifying Lender under Clause 23.3, the Notifying Lender
shall use reasonable endeavours to transfer its obligations, liabilities and
rights under this Agreement and the Finance Documents to another office or
financial institution not affected by the circumstances but the Notifying
Lender shall not be under any obligation to take any such action if, in its
opinion, to do would or might:

 

(a)                                  have an adverse effect on its
business, operations or financial condition; or

 

(b)                                 involve it in any activity
which is unlawful or prohibited or any activity that is contrary to, or
inconsistent with, any regulation; or

 

(c)                                  involve it in any expense
(unless indemnified to its satisfaction) or tax disadvantage.

 

24                                  INCREASED
COSTS

 

24.1                        Increased
costs.  This Clause 24 applies if a Lender (the “Notifying Lender”) notifies the Agent that the Notifying
Lender considers that as a result of:

 

(a)                                  the introduction or alteration
after the date of this Agreement of a law or an alteration after the date of
this Agreement in the manner in which a law is interpreted or applied
(disregarding any effect which relates to the application to payments under
this Agreement of a tax on the Lender’s overall net income); or

 

(b)                                 complying with any regulation
(including any which relates to capital adequacy or liquidity controls or which
affects the manner in which the Notifying Lender allocates capital resources to
its obligations under this Agreement) which is introduced, or altered, or the
interpretation or application of which is altered, after the date of this
Agreement,

 

the Notifying Lender (or a parent company
of it) has incurred or will incur an “increased cost”.

 

24.2                        Meaning
of “increased costs”.  In this Clause
24, “increased costs” means, in relation to
a Notifying Lender:

 

(a)                                  an additional or increased
cost incurred as a result of, or in connection with, the Notifying Lender
having entered into, or being a party to, this Agreement or having taken an
assignment of rights under this Agreement, of funding or maintaining its
Commitment or Contribution or performing its obligations under this Agreement,
or of having outstanding all or any part of its Contribution or other unpaid
sums;

 

45

 

(b)                                 a reduction in the amount of
any payment to the Notifying Lender under this Agreement or in the effective
return which such a payment represents to the Notifying Lender or on its
capital;

 

(c)                                  an additional or increased
cost of funding all or maintaining all or any of the advances comprised in a
class of advances formed by or including the Notifying Lender’s Contribution or
(as the case may require) the proportion of that cost attributable to the
Contribution; or

 

(d)                                 a liability to make a payment,
or a return foregone, which is calculated by reference to any amounts received
or receivable by the Notifying Lender under this Agreement,

 

but not an item attributable to a change in
the rate of tax on the overall net income of the Notifying Lender (or a parent
company of it) or an item covered by the indemnity for tax in Clause 21.1 or by
Clause 22 or an item arising directly out of the implementation or application
of or compliance with the “International Convergence of Capital Measurement and
Capital Standards, a Revised Framework” published by the Basel Committee on
Banking Supervision in June 2004, in the form existing on the date of this
Agreement (“Basel II”) or any
other law or regulation which implements Basel II (whether such implementation,
application or compliance is by a government, regulator, Creditor Party or any
of its affiliates).

 

                                                For the purposes of this
Clause 24.2 the Notifying Lender may in good faith allocate or spread costs
and/or losses among its assets and liabilities (or any class of its assets and
liabilities) on such basis as it considers appropriate.

 

24.3                        Notification
to Borrower of claim for increased costs.  The
Agent shall promptly notify the Borrower and the Security Parties of the notice
which the Agent received from the Notifying Lender under Clause 24.1.

 

24.4                        Payment
of increased costs.  The Borrower
shall pay to the Agent, on the Agent’s demand, for the account of the Notifying
Lender the amounts which the Agent from time to time notifies the Borrower that
the Notifying Lender has specified to be necessary to compensate the Notifying
Lender for the increased cost.

 

24.5                        Notice of
prepayment.  If the Borrower is not willing
to continue to compensate the Notifying Lender for the increased cost under
Clause 24.4, the Borrower may give the Agent not less than 14 days’ notice of
its intention to prepay the Notifying Lender’s Contribution at the end of an
Interest Period.

 

24.6                        Prepayment;
termination of Commitment.  A notice under
Clause 24.5 shall be irrevocable; the Agent shall promptly notify the Notifying
Lender of the Borrower’s notice of intended prepayment; and:

 

(a)                                  on the date on which the Agent
serves that notice, the Commitment of the Notifying Lender shall be cancelled;
and

 

(b)                                 on the date specified in its
notice of intended prepayment, the Borrower shall prepay (without premium or
penalty) the Notifying Lender’s Contribution, together with accrued interest
thereon at the applicable rate plus the Margin.

 

24.7                        Application
of prepayment.  Clause 8 shall apply in
relation to the prepayment.

 

46

 

25                                  SET-OFF

 

25.1                        Application
of credit balances.  Each Creditor
Party may at any time whilst an Event of Default is continuing without prior
notice:

 

(a)                                  apply any balance (whether or
not then due) which at any time stands to the credit of any account in the name
of the Borrower at any office in any country of that Creditor Party in or
towards satisfaction of any sum then due from the Borrower to that Creditor
Party under any of the Finance Documents; and

 

(b)                                 for that purpose:

 

(i)                                     break, or alter the maturity
of, all or any part of a deposit of the Borrower;

 

(ii)                                  convert or translate all or
any part of a deposit or other credit balance into Dollars; and

 

(iii)                               enter into any other
transaction or make any entry with regard to the credit balance which the
Creditor Party concerned considers appropriate.

 

25.2                        Existing
rights unaffected.  No Creditor
Party shall be obliged to exercise any of its rights under Clause 25.1; and
those rights shall be without prejudice and in addition to any right of
set-off, combination of accounts, charge, lien or other right or remedy to
which a Creditor Party is entitled (whether under the general law or any document).

 

25.3                        Sums
deemed due to a Lender.  For the
purposes of this Clause 25, a sum payable by the Borrower to the Agent or the
Security Trustee for distribution to, or for the account of, a Lender shall be
treated as a sum due to that Lender; and each Lender’s proportion of a sum so
payable for distribution to, or for the account of, the Lenders shall be
treated as a sum due to such Lender.

 

25.4                        No
Security Interest.  This Clause 25
gives the Creditor Parties a contractual right of set-off only, and does not
create any equitable charge or other Security Interest over any credit balance
of the Borrower.

 

26                                  TRANSFERS
AND CHANGES IN LENDING OFFICES

 

26.1                        Transfer
by Borrower.  The Borrower may not, without
the consent of the Agent, given on the instructions of all the Lenders transfer
any of its rights, liabilities or obligations under any Finance Document.

 

26.2                        Transfer
by a Lender.  Subject to Clause 26.4, a
Lender (the “Transferor Lender”) may at any
time subject to obtaining the consent of the Borrower (which consent will not
be unreasonably withheld, conditioned or delayed and will not be required
during the existence of an Event of Default), cause:

 

(a)                                  its rights in respect of all
or part of its Contribution; or

 

(b)                                 its obligations in respect of
all or part of its Commitment; or

 

(c)                                  a combination of (a) and
(b),

 

                                                to be (in the case of its
rights) transferred to, or (in the case of its obligations) assumed by, another
bank or financial institution or a trust, fund or other entity which is
regularly engaged in or established for the purpose of making, purchasing or
investing in loans, securities or other financial assets (a “Transferee Lender”) by delivering to the Agent a completed
certificate in the form set out in Schedule 4 with any modifications approved
or required by the Agent (a
“Transfer Certificate”) executed by the
Transferor Lender and the Transferee Lender.

 

47

 

 

                                                However any rights and obligations of the
Transferor Lender in its capacity as Agent or Security Trustee will have to be
dealt with separately in accordance with the Agency and Trust Agreement.

 

26.3                        Transfer
Certificate, delivery and notification.  As
soon as reasonably practicable after a Transfer Certificate is delivered to the
Agent, it shall (unless it has reason to believe that the Transfer Certificate
may be defective):

 

(a)                                  sign the Transfer Certificate
on behalf of itself, the Borrower, the Security Parties, the Security Trustee
and each of the other Lenders;

 

(b)                                 on behalf of the Transferee
Lender, send to the Borrower and each Security Party letters or faxes notifying
them of the Transfer Certificate and attaching a copy of it; and

 

(c)                                  send to the Transferee Lender
copies of the letters or faxes sent under paragraph (b) above,

 

but the Agent shall only be obliged to
execute a Transfer Certificate delivered to it by the Transferor Lender and the
Transferee Lender once it is satisfied it has complied with all necessary “know
your customer” or other similar checks under all applicable laws and
regulations in relation to the transfer to that Transferee Lender.

 

26.4                        Effective
Date of Transfer Certificate.  A Transfer
Certificate becomes effective on the date, if any, specified in the Transfer
Certificate as its effective date,  Provided that it is signed by the Agent under Clause 26.3 on
or before that date.

 

26.5                        No
transfer without Transfer Certificate.  No
assignment or transfer of any right or obligation of a Lender under any Finance
Document is binding on, or effective in relation to, the Borrower, any Security
Party, the Agent or the Security Trustee unless it is effected, evidenced or
perfected by a Transfer Certificate.

 

26.6                        Lender
re-organisation; waiver of Transfer Certificate. 
However, if a Lender enters into any merger, de-merger or other
reorganisation as a result of which all its rights or obligations vest in a
successor, the Agent may, if it sees fit, by notice to the successor and the Borrower
and the Security Trustee waive the need for the execution and delivery of a
Transfer Certificate; and, upon service of the Agent’s notice, the successor
shall become a Lender with the same Commitment and Contribution as were held by
the predecessor Lender.

 

26.7                        Effect of
Transfer Certificate.  A Transfer
Certificate takes effect in accordance with English law as follows:

 

(a)                                  to the extent specified in the
Transfer Certificate, all rights and interests (present, future or contingent)
which the Transferor Lender has under or by virtue of the Finance Documents are
assigned to the Transferee Lender absolutely, free of any defects in the
Transferor Lender’s title and of any rights or equities which the Borrower or
any Security Party had against the Transferor Lender;

 

(b)                                 the Transferor Lender’s
Commitment is discharged to the extent specified in the Transfer Certificate;

 

(c)                                  the Transferee Lender becomes
a Lender with the Contribution previously held by the Transferor Lender and a
Commitment of an amount specified in the Transfer Certificate;

 

48

 

(d)                                 the Transferee Lender becomes
bound by all the provisions of the Finance Documents which are applicable to
the Lenders generally, including those about pro-rata sharing and the exclusion
of liability on the part of, and the indemnification of, the Agent and the
Security Trustee and, to the extent that the Transferee Lender becomes bound by
those provisions (other than those relating to exclusion of liability), the
Transferor Lender ceases to be bound by them;

 

(e)                                  any part of the Loan which the
Transferee Lender advances after the Transfer Certificate’s effective date
ranks in point of priority and security in the same way as it would have ranked
had it been advanced by the transferor, assuming that any defects in the
transferor’s title and any rights or equities of the Borrower or any Security
Party against the Transferor Lender had not existed;

 

(f)                                    the Transferee Lender becomes
entitled to all the rights under the Finance Documents which are applicable to
the Lenders generally, including but not limited to those relating to the
Majority Lenders and those under Clause 5.4 and Clause 20, and to the extent
that the Transferee Lender becomes entitled to such rights, the Transferor
Lender ceases to be entitled to them; and

 

(g)                                 in respect of any breach of a
warranty, undertaking, condition or other provision of a Finance Document or
any misrepresentation made in or in connection with a Finance Document, the Transferee
Lender shall be entitled to recover damages by reference to the loss incurred
by it as a result of the breach or misrepresentation, irrespective of whether
the original Lender would have incurred a loss of that kind or amount.

 

The rights and equities of the Borrower or
any Security Party referred to above include, but are not limited to, any right
of set off and any other kind of cross-claim.

 

26.8                        Maintenance
of register of Lenders.  During the
Security Period the Agent shall maintain a register in which it shall record
the name, Commitment, Contribution and administrative details (including the
lending office) from time to time of each Lender holding a Transfer Certificate
and the effective date (in accordance with Clause 26.4) of the Transfer Certificate;
and the Agent shall make the register available for inspection by any Lender,
the Security Trustee and the Borrower during normal banking hours, subject to
receiving at least 3 Business Days’ prior notice.

 

26.9                        Reliance
on register of Lenders.  The entries on
that register shall, in the absence of manifest error, be conclusive in
determining the identities of the Lenders and the amounts of their Commitments
and Contributions and the effective dates of Transfer Certificates and may be
relied upon by the Agent and the other parties to the Finance Documents for all
purposes relating to the Finance Documents.

 

26.10                 Authorisation
of Agent to sign Transfer Certificates.  The
Borrower, the Security Trustee and each Lender irrevocably authorise the Agent
to sign Transfer Certificates on its behalf.

 

26.11                 Registration
fee.  In respect of any Transfer Certificate, the
Agent shall be entitled to recover a registration fee of $1,000 from the
Transferor Lender or (at the Agent’s option) the Transferee Lender.

 

26.12                 Sub-participation;
subrogation assignment.  A Lender may
sub-participate all or any part of its rights and/or obligations under or in
connection with the Finance Documents without the consent of, or any notice to,
the Borrower, any Security Party, the Agent or the Security Trustee; and the
Lenders may assign, in any manner and terms agreed by the Majority Lenders, the
Agent and the Security Trustee, all or any part of those rights to an insurer
or surety who has become subrogated to them.

 

49

 

26.13                 Disclosure
of information.  A Lender may
disclose to a potential Transferee Lender or sub-participant any information
which the Lender has received in relation to the Borrower, any Security Party
or their affairs under or in connection with any Finance Document, unless the
information is clearly of a confidential nature.

 

26.14                 Change of
lending office.  A Lender may
change its lending office by giving notice to the Agent and the change shall
become effective on the later of:

 

(a)                                  the date on which the Agent
receives the notice; and

 

(b)                                 the date, if any, specified in
the notice as the date on which the change will come into effect.

 

26.15                 Notification.  On receiving such a notice, the Agent shall
notify the Borrower and the Security Trustee; and, until the Agent receives
such a notice, it shall be entitled to assume that a Lender is acting through
the lending office of which the Agent last had notice.

 

27                                  VARIATIONS
AND WAIVERS

 

27.1                        Variations,
waivers etc. by Majority Lenders. 
Subject to Clause 27.2, a document shall be effective to vary, waive,
suspend or limit any provision of a Finance Document, or any Creditor Party’s
rights or remedies under such a provision or the general law, only if the
document is signed, or specifically agreed to by fax, by the Borrower, by the
Agent on behalf of the Majority Lenders, by the Agent and the Security Trustee
in their own rights, and, if the document relates to a Finance Document to
which a Security Party is party, by that Security Party.

 

27.2                        Variations,
waivers etc. requiring agreement of all Lenders. 
However, as regards the following, Clause 27.1 applies as if the words “by
the Agent on behalf of the Majority Lenders” were replaced by the words “by or
on behalf of every Lender”:

 

(a)                                  a change in the Margin or in
the definition of LIBOR;

 

(b)                                 a change to the date for, the
amount of, any payment of principal, interest, fees, or other sum payable under
this Agreement;

 

(c)                                  a change to any Lender’s
Commitment;

 

(d)                                 an extension of Availability
Period;

 

(e)                                  a change to the definition of “Majority Lenders” or “Finance Documents”;

 

(f)                                    a change to the preamble or to
Clause 2, 3, 4, 5.1, 17, 18 or 30;

 

(g)                                 a change to this Clause 27;

 

(h)                                 any release of, or material
variation to, a Security Interest, guarantee, indemnity or subordination
arrangement set out in a Finance Document; and

 

(i)                                     any other change or matter as
regards which this Agreement or another Finance Document expressly provides
that each Lender’s consent is required.

 

27.3                        Exclusion
of other or implied variations.  Except for a
document which satisfies the requirements of Clauses 27.1 and 27.2, no
document, and no act, course of conduct, failure or neglect to act, delay or
acquiescence on the part of the Creditor Parties or any of them (or any person
acting on behalf of any of them) shall result in the Creditor Parties or any of
them (or any person acting on behalf of any of them) being taken to have
varied, waived, suspended or limited, or being precluded (permanently or
temporarily) from enforcing, relying on or exercising:

 

50

 

(a)                                  a provision of this Agreement
or another Finance Document; or

 

(b)                                 an Event of Default; or

 

(c)                                  a breach by the Borrower or a
Security Party of an obligation under a Finance Document or the general law; or

 

(d)                                 any right or remedy conferred
by any Finance Document or by the general law,

 

and there shall not be implied into any
Finance Document any term or condition requiring any such provision to be
enforced, or such right or remedy to be exercised, within a certain or
reasonable time.

 

28                                  NOTICES

 

28.1                        General.  Unless otherwise specifically provided, any
notice under or in connection with any Finance Document shall be given by
letter or fax and references in the Finance Documents to written notices,
notices in writing and notices signed by particular persons shall be construed
accordingly.

 

28.2                        Addresses
for communications.  A notice by
letter or fax shall be sent:

 

	
  (a)

  	
   

  	
  to the
  Borrower:

  	
   

  	
  Britannia
  Bulk plc

  
	
   

  	
   

  	
   

  	
   

  	
  Dexter House

  
	
   

  	
   

  	
   

  	
   

  	
  2nd Floor

  
	
   

  	
   

  	
   

  	
   

  	
  Royal Mint
  Court

  
	
   

  	
   

  	
   

  	
   

  	
  London

  
	
   

  	
   

  	
   

  	
   

  	
  EC3N 4QN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No:+ 44 207 264
  4949

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: Fariyal Khanbabi

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  to a Lender:

  	
   

  	
  At the
  address below its name in Schedule 1 or (as the

  
	
   

  	
   

  	
   

  	
   

  	
  case may
  require) in the relevant Transfer Certificate.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  to the
  Agent:

  	
   

  	
  Lloyds TSB
  Bank plc

  
	
   

  	
   

  	
   

  	
   

  	
  Wholesale
  Loans Agency

  
	
   

  	
   

  	
   

  	
   

  	
  10 Gresham
  Street

  
	
   

  	
   

  	
   

  	
   

  	
  London

  
	
   

  	
   

  	
   

  	
   

  	
  EC2V 7AE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No:   +44
  207 158 3251

  
	
   

  	
   

  	
   

  	
   

  	
  Attn:       Head of Wholesale Loans Agency

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  to the
  Security Trustee:

  	
   

  	
  Lloyds TSB
  Bank plc

  
	
   

  	
   

  	
   

  	
   

  	
  Head of
  Loans Management

  
	
   

  	
   

  	
   

  	
   

  	
  10 Gresham
  Street

  
	
   

  	
   

  	
   

  	
   

  	
  London

  
	
   

  	
   

  	
   

  	
   

  	
  EC2V 7AE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No:   +44
  207 158 3271

  
	
   

  	
   

  	
   

  	
   

  	
  Attn:       Head of Loan Management

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  or to such other
  address as the relevant party may notify the Agent or, if the relevant party
  is the Agent or the Security Trustee, the Borrower, the Lenders and the
  Security Parties.

  

 

51

 

28.3                        Effective
date of notices.  Subject to
Clauses 28.4 and 28.5:

 

(a)                                  a notice which is delivered
personally or posted shall be deemed to be served, and shall take effect, at
the time when it is delivered;

 

(b)                                 a notice which is sent by fax
shall be deemed to be served, and shall take effect, 2 hours after its
transmission is completed.

 

28.4                        Service
outside business hours.  However, if
under Clause 28.3 a notice would be deemed to be served:

 

(a)                                  on a day which is not a
business day in the place of receipt; or

 

(b)                                 on such a business day, but after
5 p.m. local time,

 

                                                the notice shall (subject to Clause 28.5) be
deemed to be served, and shall take effect, at 9 a.m. on the next day
which is such a business day.

 

28.5                        Illegible
notices.  Clauses 28.3 and 28.4 do not apply if the
recipient of a notice notifies the sender within 1 hour after the time at which
the notice would otherwise be deemed to be served that the notice has been
received in a form which is illegible in a material respect.

 

28.6                        Valid
notices.  A notice under or in connection with a
Finance Document shall not be invalid by reason that its contents or the manner
of serving it do not comply with the requirements of this Agreement or, where
appropriate, any other Finance Document under which it is served if:

 

(a)                                  the failure to serve it in
accordance with the requirements of this Agreement or other Finance Document,
as the case may be, has not caused any party to suffer any significant loss or
prejudice; or

 

(b)                                 in the case of incorrect
and/or incomplete contents, it should have been reasonably clear to the party
on which the notice was served what the correct or missing particulars should
have been.

 

28.7                        Electronic
communication.  Any communication to be made
between the Agent and a Lender under or in connection with the Finance Documents
may be made by electronic mail or other electronic means, if the Agent and the
relevant Lender:

 

(a)                                  agree that, unless and until
notified to the contrary, this is to be an accepted form of communication;

 

(b)                                 notify each other in writing
of their electronic mail address and/or any other information required to
enable the sending and receipt of information by that means; and

 

(c)                                  notify each other of any
change to their respective addresses or any other such information supplied to
them.

 

Any electronic communication made between
the Agent and a Lender will be effective only when actually received in
readable form and, in the case of any electronic communication made by a Lender
to the Agent, only if it is addressed in such a manner as the Agent shall specify
for this purpose.

 

28.8                        English
language.  Any notice under or in connection with a
Finance Document shall be in English.

 

52

 

28.9                        Meaning
of “notice”.  In this Clause 28, “notice” includes any demand, consent, authorisation,
approval, instruction, waiver or other communication.

 

29                                  SUPPLEMENTAL

 

29.1                        Rights
cumulative, non-exclusive.  The rights and
remedies which the Finance Documents give to each Creditor Party are:

 

(a)                                  cumulative;

 

(b)                                 may be exercised as often as
appears expedient; and

 

(c)                                  shall not, unless a Finance
Document explicitly and specifically states so, be taken to exclude or limit
any right or remedy conferred by any law.

 

29.2                        Severability
of provisions.  If any provision of a Finance
Document is or subsequently becomes void, unenforceable or illegal, that shall
not affect the validity, enforceability or legality of the other provisions of
that Finance Document or of the provisions of any other Finance Document.

 

29.3                        Counterparts.  A Finance Document may be executed in any
number of counterparts.

 

29.4                        Third
Party rights.  A person who is not a party to
this Agreement has no right under the Contracts (Rights of Third Parties) Act
1999 to enforce or to enjoy the benefit of any term of this Agreement.

 

29.5                        Confidentiality.  At all times during the Security Period,
each of the parties hereto shall keep confidential and shall not, without the
prior written consent of the other parties, issue any press release in relation
to the transactions evidenced by this Agreement and the other Finance
Documents, or disclose to any other person, the business, financial or other
information contained in or supplied in connection with this Agreement or any
other Finance Document and the transactions contemplated hereby or thereby or
any other agreement entered into after the date hereof by the Borrower and any
Security Party or in connection with this Agreement or any other Finance
Document, or release copies or drafts of any such document which disclose or
reveal the identity of the parties (or any of them) provided that (a) the
Borrower will not reasonably withhold or delay its consent to any proposed
press releases; (b) the foregoing provisions of this Clause 29.5 shall not
apply to any disclosure of information between one Creditor Party to another;
and (c) the parties hereto shall be entitled, without any such consent, to
disclose the same:

 

(a)                                  in connection with any
proceedings arising out of or in connection with this Agreement or any of the
other Finance Documents; or

 

(b)                                 if required to do so by an
order or a court of competent jurisdiction whether in pursuance of any
procedure for discovery of documents or otherwise; or

 

(c)                                  pursuant to any law or
regulation having the force of law; or

 

(d)                                 to any fiscal, monetary, tax,
governmental or other competent authority; or

 

(e)                                  to the auditors, legal,
insurance or other professional advisors, brokers, insurers or underwriters of
any Creditor Party or any Security Party; or

 

(f)                                    if required to do so in order
to obtain any permits, consents, licences which any Creditor Party or any
Security Party is required to obtain pursuant to the Finance Documents; or

 

(g)                                 if any of the same is or shall
become publicly known otherwise than as a result of a breach by such party of
this Clause 29.5; or

 

53

 

(h)                                 in any manner contemplated by
any of the Finance Documents; or

 

(i)                                     in the case of a Creditor
Party , to any member of the group of companies of which such Creditor Party is
a member and in the case of a Security Party to any member of the group of
companies of which such Security Party is a member, provided that in each case
the relevant Creditor Party or the relevant Security Party shall procure that
the party to whom such disclosure is made shall comply with the requirements of
this Clause 29.5.

 

Notwithstanding the foregoing provisions of
this Clause 29.5 or any other provisions of this Agreement or any other Finance
Document to the contrary:

 

(i)                                     at an appropriate time after
the date of this Agreement, the Agent, the Security Trustee, the Lenders and
the Borrower (each at their own cost) may place a customary announcement in
such newspapers and periodicals as it may choose, stating that it has
participated (in its various capacities) in the transactions contemplated in
this Agreement and the other Finance Documents, in each case subject to the
prior approval of the other parties to this Agreement as to the form and timing
of the announcement; and

 

(ii)                                  the Agent, the Security
Trustee, the Lenders and the Borrower (each at their own cost) may disclose
generic details of the transaction contemplated by this Agreement and the other
Finance Documents in its annual financial presentations or other “roadshow”
presentations, internal publications, annual reports or financial or other
brochures.

 

30                                  LAW AND
JURISDICTION

 

30.1                        English
law.  This Agreement shall be governed by, and
construed in accordance with, English law.

 

30.2                        Exclusive
English jurisdiction.  Subject to
Clause 30.3, the courts of England shall have exclusive jurisdiction to settle
any disputes which may arise out of or in connection with this Agreement.

 

30.3                        Choice of
forum for the exclusive benefit of Creditor Parties.  Clause 30.2 is for the exclusive benefit of
the Creditor Parties, each of which reserves the rights:

 

(a)                                  to commence proceedings in
relation to any matter which arises out of or in connection with this Agreement
in the courts of any country other than England and which have or claim
jurisdiction to that matter; and

 

(b)                                 to commence such proceedings
in the courts of any such country or countries concurrently with or in addition
to proceedings in England or without commencing proceedings in England.

 

                                                The Borrower shall not commence any proceedings
in any country other than England in relation to a matter which arises out of
or in connection with this Agreement.

 

30.4                        Acceptance
as process agent.  The Borrower
hereby accepts its appointment as agent to receive and accept for and on behalf
of each Owner any process or other document relating to any proceedings in the
English Courts which are connected with any Finance Document.

 

30.5                        Creditor
Party rights unaffected.  Nothing in
this Clause 30 shall exclude or limit any right which any Creditor Party may
have (whether under the law of any country, an international convention or
otherwise) with regard to the bringing of proceedings, the service of process,
the recognition or enforcement of a judgment or any similar or related matter
in any jurisdiction.

 

54

 

30.6                        Meaning
of “proceedings”.  In this Clause
30, “proceedings” means proceedings of any
kind, including an application for a provisional or protective measure.

 

THIS
AGREEMENT has been
entered into on the date stated at the beginning of this Agreement.

 

55

 

SCHEDULE 1

LENDERS AND COMMITMENTS

 

 

	
  Lender

  	
   

  	
  Lending Office

  	
   

  	
  Commitment

  (US
  Dollars)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lloyds
  TSB Bank plc

  	
   

  	
  10
  Gresham Street 

  London 

  EC2V 7AE 

  

  Fax No:+44 207 158 3271

  Attn: Loan Management

  	
   

  	
  30,000,000

  

 

 

56

 

SCHEDULE 2

DRAWDOWN NOTICE

 

	
  To:

  	
   

  	
  Lloyds TSB Bank plc

  
	
   

  	
   

  	
  10 Gresham Street

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  EC2V 7AE

  

 

Attention: SHIP FINANCE

 

[·] February 2008

 

DRAWDOWN NOTICE

 

1                                         We refer to the loan agreement
(the “Loan Agreement”) dated [·] February 2008 and made between us,
as Borrower, the Lenders referred to therein, and you as Agent and as Security
Trustee in connection with a facility of up to US$30,000,000. Terms defined in
the Loan Agreement have their defined meanings when used in this Drawdown
Notice.

 

2                                         We request to borrow as
follows:

 

(a)                                  Amount: US$ 30,000,000;

 

(b)                                 Drawdown Date:  [·] February 2008;

 

(c)                                  Duration of the Interest
Period shall be 1 month; and

 

(d)                                 Payment instructions : account
[in our name] and numbered [·] with [·] of [·].

 

3                                         We represent and warrant that:

 

(a)                                  the representations and
warranties in Clause 10 of the Loan Agreement would remain true and not
misleading if repeated on the date of this notice with reference to the
circumstances now existing; and

 

(b)                                 no Event of Default or
Potential Event of Default has occurred or will result from the borrowing of
the Loan.

 

4                                         This notice cannot be revoked
without the prior consent of the Majority Lenders.

 

5                                         We authorise you to deduct the
arrangement of US$450,000 fee referred to in Clause 20 from the amount of the
Loan.

 

[Name of Signatory]

 

Director

for and on behalf of

BRITANNIA BULK PLC

 

57

 

 

SCHEDULE 3

 

CONDITION PRECEDENT DOCUMENTS

 

PART A

 

The following
are the documents referred to in Clause 9.1(a).

 

1                                         A duly executed original of
each Finance Document (and of each document required to be delivered by each
Finance Document) other than those referred to in Part B.

 

2                                         Copies of the certificate of
incorporation and constitutional documents of the Borrower and each Security
Party.

 

3                                         Copies of resolutions of the
directors of the Borrower and copies of resolutions of the shareholders and
directors each Security Party authorising the execution of each of the Finance
Documents to which the Borrower or that Security Party is a party and, in the
case of the Borrower, authorising named officers to give the Drawdown Notice
and other notices under this Agreement and in the case of the Owners ratifying
the execution of the MOAs.

 

4                                         The original of any power of
attorney under which any Finance Document is executed on behalf of the Borrower
or a Security Party.

 

5                                         Copies of all consents which
the Borrower or any Security Party requires to enter into, or make any payment
under, any Finance Document or either MOA.

 

6                                         The originals of any mandates
or other documents required in connection with the opening or operation of the
Earnings Account and the Collateral Account.

 

7                                         Copies of the MOAs and of all
documents signed or issued by an Owner or a Seller (or any of them) under or in
connection with the MOAs.

 

8                                         A copy of the latest unaudited
consolidated accounts of the Borrower and its subsidiaries certified as to their
correctness by the chief financial officer of the Borrower.

 

9                                         A copy of the most recent
survey report or inspection report obtained in respect of each Ship from an
independent marine surveyor in respect of the physical condition of each Ship.

 

10                                  If the Agent so requires, in
respect of any of the documents referred to above, a certified English
translation prepared by a translator approved by the Agent.

 

58

 

PART B

 

The following
are the documents referred to in Clause 9.1(b).

 

1                                         A duly executed original of
the Mortgages and the General Assignments (and of each document to be delivered
by each of them).

 

2                                         Such documentary evidence as
the Agent and its legal advisers may require in relation to the due
authorisation and execution by each Seller of the MOA to which it is a party
and of all documents to be executed by each Seller under the MOA to which it is
a party.

 

3                                         Documentary evidence that:

 

(a)                                  each Ship has been
unconditionally delivered by the relevant Seller to, and accepted by, the
relevant Owner under the relevant MOA, and the full purchase price payable
under the relevant MOA (in addition to the part to be financed by the Loan) has
been duly paid;

 

(b)                                 each Ship is definitively and
permanently registered in the name of the relevant Owner under Panamanian flag;

 

(c)                                  each Ship is in the absolute
and unencumbered ownership of the relevant Owner save as contemplated by the
Finance Documents;

 

(d)                                 each Ship maintains the
highest class of vessels of a similar age and type as that Ship with the
Classification Society, free of all overdue recommendations and conditions of
such Classification Society;

 

(e)                                  each Mortgage has been duly
registered against the relevant Ship as a valid first preferred Panamanian ship
mortgage in accordance with the laws of the Republic of Panama; and

 

(f)                                    each Ship is insured in
accordance with the provisions of this Agreement and all requirements therein
in respect of insurances have been complied with.

 

4                                         Documents establishing that
each Ship will, as from the Drawdown Date, be managed by the Approved Manager
on terms acceptable to the Lenders, together with:

 

(a)                                  a letter of undertaking
executed by the Approved Manager in favour of the Agent in the terms required
by the Agent agreeing certain matters in relation to the management of each
Ship and subordinating the rights of the Approved Manager against each Ship the
relevant Owner to the rights of the Creditor Parties under the Finance
Documents; and

 

(b)                                 copies of the Approved Manager’s
Document of Compliance and of the Ship’s Safety Management Certificate
(together with any other details of the applicable safety management system
which the Agent requires) and ISSC.

 

5                                         Documentary evidence that each
Ship has been deleted from the German flag and the Antigua and Barbadian
bareboat registry free from all registered encumbrances or, in the alternative,
evidence that each Ship will be so deleted within such period as the Agent
shall require and that, in any event, there are no encumbrances registered
against either Ship on the German flag or the Antigua and Barbadian bareboat
registry.

 

6                                         Favourable legal opinions from
lawyers appointed by the Agent on such matters concerning the laws of Panama
and such other relevant jurisdictions as the Agent may require.

 

59

 

7                                         A favourable opinion from an
independent insurance consultant acceptable to the Agent on such matters
relating to the insurances for each Ship as the Agent may require.

 

8                                         If the Agent so requires, in
respect of any of the documents referred to above, a certified English
translation prepared by a translator approved by the Agent.

 

                                                Every copy document delivered under this
Schedule shall be certified as a true and up to date copy by a director or the
secretary (or equivalent officer) of the Borrower.

 

60

 

SCHEDULE 4

 

TRANSFER CERTIFICATE

 

The Transferor and the Transferee accept
exclusive responsibility for ensuring that this Certificate and the transaction
to which it relates comply with all legal and regulatory requirements
applicable to them respectively.

 

To:                              Lloyds TSB Bank plc for itself and for and on
behalf of the Borrower, each Security Party, the Security Trustee and each
Lender, as defined in the Loan Agreement referred to below.

 

[·]

 

1                                         This Certificate relates to a
Loan Agreement (“the “Agreement”)
dated [·] February 2008 and made
between (1) Britannia Bulk plc (the “Borrower”), (2) the
banks and financial institutions named therein, (3) Lloyds TSB Bank plc as
Agent and (4) Lloyds TSB Bank plc as Security Trustee for a loan facility
of up to US$30,000,000.

 

2                                         In this Certificate, terms
defined in the Agreement shall, unless the contrary intention appears, have the
same meanings when used in this Certificate and:

 

“Relevant
Parties” means the Agent, the Borrower, each Security Party, the
Security Trustee and each Lender;

 

“Transferor” means [full name] of [lending office]; and

 

“Transferee” means [full name] of [lending office].

 

3                                         The effective date of this
Certificate is [·],  Provided that
this Certificate shall not come into effect unless it is signed by the Agent on
or before that date.

 

4                                         [The Transferor assigns to the
Transferee absolutely all rights and interests (present, future or contingent)
which the Transferor has as Lender under or by virtue of the Agreement and
every other Finance Document in relation to [·] per cent. of its Contribution, which
percentage represents $[·].]

 

5                                         [By virtue of this Transfer
Certificate and Clause 26 of the Agreement, the Transferor is discharged
[entirely from its Commitment which amounts to $[·] [from [·] per cent. of its Commitment, which
percentage represents $[·]] and the Transferee acquires
a Commitment of $[·].]

 

6                                         The Transferee undertakes with
the Transferor and each of the Relevant Parties that the Transferee will
observe and perform all the obligations under the Finance Documents which
Clause 26 of the Agreement provides will become binding on it upon this
Certificate taking effect.

 

7                                         The Agent, at the request of
the Transferee (which request is hereby made) accepts, for the Agent itself and
for and on behalf of every other Relevant Party, this Certificate as a Transfer
Certificate taking effect in accordance with Clause 26 of the Agreement.

 

8                                         The Transferor:

 

(a)                                  warrants to the Transferee and
each Relevant Party that:

 

61

 

	
  (i)

  	
   

  	
  the
  Transferor has full capacity to enter into this transaction and has taken all
  corporate action and obtained all consents which are required in connection
  with this transaction; and

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  this
  Certificate is valid and binding as regards the Transferor;

  

 

(b)                                 warrants to the Transferee
that the Transferor is absolutely entitled, free of encumbrances, to all the
rights and interests covered by the assignment in paragraph 4; and

 

(c)                                  undertakes with the Transferee
that the Transferor will, at its own expense, execute any documents which the
Transferee reasonably requests for perfecting in any relevant jurisdiction the
Transferee’s title under this Certificate or for a similar purpose.

 

9                                         The Transferee:

 

(a)                                  confirms that it has received
a copy of the Agreement and each of the other Finance Documents;

 

(b)                                 agrees that it will have no
rights of recourse on any ground against either the Transferor, the Agent, the
Security Trustee or any Lender in the event that:

 

	
  (i)

  	
   

  	
  any of the
  Finance Documents prove to be invalid or ineffective;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  the Borrower
  or any Security Party fails to observe or perform its obligations, or to
  discharge its liabilities, under any of the Finance Documents; and

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  it proves
  impossible to realise any asset covered by a Security Interest created by a
  Finance Document, or the proceeds of such assets are insufficient to
  discharge the liabilities of the Borrower or any Security Party under any of
  the Finance Documents;

  

 

(c)                                  agrees that it will have no
rights of recourse on any ground against the Agent, the Security Trustee or any
Lender in the event that this Certificate proves to be invalid or ineffective;

 

(d)                                 warrants to the Transferor and
each Relevant Party that:

 

	
  (i)

  	
   

  	
  it has full
  capacity to enter into this transaction and has taken all corporate action
  and obtained all consents which it needs to take or obtain in connection with
  this transaction; and

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  this
  Certificate is valid and binding as regards the Transferee; and

  

 

(e)                                  confirms the accuracy of the
administrative details set out below regarding the Transferee.

 

10                                  The Transferor and the
Transferee each undertake with the Agent and the Security Trustee severally, on
demand, fully to indemnify the Agent and/or the Security Trustee in respect of
any claim, proceeding, liability or expense (including all legal expenses)
which they or either of them may incur in connection with this Certificate or
any matter arising out of it, except such as are shown to have been mainly and
directly caused by the gross and culpable negligence or dishonesty of the Agent’s
or the Security Trustee’s own officers or employees.

 

11                                  The Transferee shall repay to
the Transferor on demand so much of any sum paid by the Transferor under
paragraph 9 as exceeds one-half of the amount demanded by the Agent or the
Security Trustee  in respect of a claim,
proceeding, liability or expense which was 

 

62

 

                not reasonably foreseeable at
the date of this Certificate; but nothing in this paragraph shall affect the
liability of each of the Transferor and the Transferee to the Agent or the
Security Trustee for the full amount demanded by it.

 

[Name of Transferor]                                                                                                                 [Name
of Transferee]

 

By:                                                                                                                                              By:

 

Date:                                                                                                                                    Date:

 

 

 

Agent

 

Signed for
itself and for and on behalf of itself

as Agent and
for every other Relevant Party

 

[Name of
Agent]

 

By:

 

Date:

 

63

 

Administrative Details of Transferee

 

Name of Transferee:

 

Lending Office:

 

Contact Person

(Loan Administration Department):

 

Telephone:

 

Fax:

 

Contact Person

(Credit Administration Department):

 

Telephone:

 

Fax:

 

Account for payments:

 

	
  Note:

  	
   

  	
  This Transfer
  Certificate alone may not be sufficient to transfer a proportionate share of
  the Transferor’s interest in the security constituted by the Finance
  Documents in the Transferor’s or Transferee’s jurisdiction. It is the
  responsibility of each Lender to ascertain whether any other documents are
  required for this purpose.

  

 

64

 

SCHEDULE 5

 

MANDATORY COST FORMULA

 

 

1                                         The Mandatory Cost is an
addition to the interest rate to compensate Lenders for the cost of compliance
with (a) the requirements of the Financial Services Authority (or any
other authority which replaces all or any of its functions) or (b) the
requirements of the European Central Bank.

 

2                                         On the first day of each
Interest Period (or as soon as possible thereafter) the Agent shall calculate,
as a percentage rate, a rate (the “Additional Cost Rate”)
for each Lender, in accordance with the paragraphs set out below.  The Mandatory Cost will be calculated by the
Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in
proportion to the percentage participation of each Lender in the relevant
Advance) and will be expressed as a percentage rate per annum.

 

3                                         The Additional Cost Rate for
any Lender lending from a lending office in Participating Member State will be
the percentage notified by that Lender to the Agent.  This percentage will be certified by that
Lender in its notice to the Agent to be its reasonable determination of the
cost (expressed as a percentage of that Lender’s participation in all Advances
made from that lending office) of complying with the minimum reserve
requirements of the European Central Bank in respect of loans made from that
lending office.

 

4                                         The Additional Cost Rate for
any Lender lending from a lending office in the United Kingdom will be
calculated by the Agent as follows:

 

per cent. per annum

 

Where:

 

E                                         is designed to
compensate Lenders for amounts payable under the Fees Rules and is
calculated by the Agent as being the average of the most recent rates of charge
supplied by the Lenders to the Agent pursuant to paragraph 6 below and
expressed in pounds per £1,000,000.

 

5                                         For the purposes of this
Schedule:

 

(a)                                  “Eligible Liabilities” and “Special
Deposits” have the meanings given to them from time to time under or
pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank
of England;

 

(b)                                 “Fees Rules”  means the rules on
periodic fees contained in the FSA Supervision Manual or such other law or
regulation as may be in force from time to time in respect of the payment of
fees for the acceptance of deposits;

 

(c)                                  “Fee Tariffs”  means the
fee tariffs specified in the Fees Rules under the activity group A.1
Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant
to the Fees Rules but taking into account any applicable discount rate);

 

(d)                                 “Participating Member State” 
means any member state of the European Union that adopts or has adopted
the euro as its lawful currency in accordance with legislation of the European
Union relating to European Monetary Union; and

 

65

 

(e)                                  “Tariff Base”  has the
meaning given to it in, and will be calculated in accordance with, the Fees
Rules.

 

6                                         If requested by the Agent,
each Lender shall, as soon as practicable after publication by the Financial
Services Authority, supply to the Agent, the rate of charge payable by that
Lender to the Financial Services Authority pursuant to the Fees Rules in
respect of the relevant financial year of the Financial Services Authority
(calculated for this purpose by that Lender as being the average of the Fee
Tariffs applicable to that Lender for that financial year) and expressed in
pounds per £1,000,000 of the Tariff Base of that Lender.

 

7                                         Each Lender shall supply any
information required by the Agent for the purpose of calculating its Additional
Cost Rate.  In particular, but without
limitation, each Lender shall supply the following information in writing on or
prior to the date on which it becomes a Lender:

 

(a)                                  the jurisdiction of its
lending office; and

 

(b)                                 any other information that the
Agent may reasonably require for such purpose.

 

Each Lender shall promptly notify the Agent
in writing of any change to the information provided by it pursuant to this
paragraph.

 

8                                         The rates of charge of each
Lender for the purpose of E above shall be determined by the Agent based upon
the information supplied to it pursuant to paragraph 6 above and on the
assumption that, unless a Lender notifies the Agent to the contrary, each
Lender’s obligations in relation to cash ratio deposits and special Deposits
are the same as those of a typical bank from its jurisdiction of incorporation
with a lending office in the same jurisdiction as its lending office.

 

9                                         The Agent shall have no
liability to any person if such determination results in an Additional Cost
Rate which over or under compensates any Lender and shall be entitled to assume
that the information provided by any Lender pursuant to paragraphs 3, 6 and 7
above is true and correct in all respects.

 

10                                  The Agent shall distribute the additional
amounts received as a result of the Mandatory Cost to the Lenders on the basis
of the Additional Cost Rate for each Lender based on the information provided
by each Lender pursuant to paragraphs 3, 6 and 7 above.

 

12                                  Any determination by the Agent
pursuant to this Schedule in relation to a formula, the Mandatory Cost, an
Additional Cost Rate or any amount payable to a Lender shall, in the absence of
manifest error, be conclusive and binding on all parties.

 

The Agent may from time to time, after
consultation with the Borrower and the Lenders, determine and notify to all
parties any amendments which are required to be made to this Schedule in order
to comply with  any change in law,
regulation or any requirements from time to time imposed by the Financial
Services Authority or the European Central Bank (or, in any case, any other
authority which replaces all or any of its functions) and any such
determination shall, in the absence of manifest error, be conclusive and
binding on all parties.

 

66

 

SCHEDULE 6

LIST OF APPROVED BROKERS

 

·                                          Fearnleys

 

·                                          Clarksons

 

·                                          Gailbraiths Limited

 

67

 

EXECUTION PAGE

 

	
  THE BORROWER

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  SIGNED by

  	
  /s/ Arvid Tage

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  	 

	
  for and on behalf of

  	
   

  	
  )

  	 

	
  BRITANNIA
  BULK PLC

  	
   

  	
  )

  	 

	
  in the presence of:

  	
   

  	
  )

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  THE LENDERS

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  SIGNED by

  	
  /s/ David Sumner

  	
   

  	
  )

  	 

	
   

  	
   

  	
  )

  	 

	
  for and on behalf of

  	
   

  	
  )

  	 

	
  LLOYDS TSB
  BANK PLC

  	
   

  	
  )

  	 

	
  in the presence of:

  	
   

  	
  )

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  THE AGENT

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  SIGNED by

  	
  /s/ David Sumner

  	
   

  	
  )

  	 

	
   

  	
   

  	
  )

  	 

	
  for and on behalf of

  	
   

  	
  )

  	 

	
  LLOYDS TSB
  BANK PLC

  	
   

  	
  )

  	 

	
  in the presence of:

  	
   

  	
  )

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  THE SECURITY
  TRUSTEE

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  SIGNED by

  	
  /s/ David Sumner

  	
   

  	
  )

  	 

	
   

  	
   

  	
  )

  	 

	
  for and on behalf of

  	
   

  	
  )

  	 

	
  LLOYDS TSB
  BANK PLC

  	
   

  	
  )

  	 

	
  in the presence of:

  	
   

  	
  )

  	 

								

 

 

 

68Exhibit 10.5

 

 

TECHNOLOGY
OUTSOURCING RENEWAL AGREEMENT

 

This Technology Outsourcing Renewal Agreement is made as of the 1st day
of December, 2007 (the “Effective Date”), by and between Team Financial, Inc., a Kansas
corporation (“Customer”), and Metavante
Corporation, a Wisconsin corporation (“Metavante”).

 

Customer desires Metavante to provide to Customer the services set
forth in this Agreement, and Metavante desires to provide such services to
Customer, all as provided in this Agreement.

 

THEREFORE, in consideration of
the payments to be made and services to be performed hereunder, upon the terms
and subject to the conditions set forth in this Agreement and intending to be
legally bound, the parties hereto agree as follows:

 

Metavante shall provide to Customer and Customer shall
receive from Metavante, all upon the terms and conditions set forth in this
Agreement, the Services specified in this Agreement.  The term of this Agreement shall commence on
the Effective Date and end on March 31, 2011 (the “Initial Term”).  This Agreement supercedes and replaces that
Master Agreement between the parties dated March 1, 2001, as amended.

 

As of the Effective Date, the parties acknowledge that
this Agreement includes the following Schedules:

 

Services and Charges Schedule

 

Wealth Management Technology Services 

Schedule

 

Service Level Schedule

 

Termination Fee Schedule

 

NYCE Network Participant Schedule

 

Strategic Network Solutions Schedule

 

Business Intelligence Center Schedule

 

As of the Effective Date, the parties acknowledge that
Services will be provided for Customer and the following Affiliates of
Customer:

 

By signing below, the parties agree to the terms and
conditions of this Agreement, and Customer appoints Metavante as:  (1) Customer’s attorney-in-fact to
transmit files and information to the Internal Revenue Service (“IRS”) and to
take all appropriate actions in connection therewith and empowers Metavante to
authorize the IRS to release information return documents supplied to the IRS
by Metavante to states which participate in the “Combined Federal/State Program”;
and (2) Customer’s agent to sign on Customer’s behalf the Affidavit
required by the Internal Revenue Service on Form 4804, or any 

 

1

 

successor form.  Customer
acknowledges that Metavante’s execution of the Form 4804 Affidavit on
Customer’s behalf does not relieve Customer of responsibility to provide
accurate TINs or liability for any penalties which may be assessed for failure
to comply with TIN requirements

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on their behalf as of the date first above written.

 

	
  METAVANTE CORPORATION

  	
   

  	
  TEAM FINANCIAL, INC.

  
	
  4900 W. Brown Deer Road

  	
   

  	
   

  
	
  Brown Deer, WI 53223

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  James R. Geschke

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Metavante Banking and Trust Solutions

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Paul T. Danola

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Senior Executive Vice President

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Metavante Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

TERMS
AND CONDITIONS

 

CONSTRUCTION

 

1.1.         Definitions. Capitalized terms
shall have the meaning ascribed to them in Article 18 of this Agreement.

 

1.2.         References. In this Agreement,
references and mention of the word “includes” and “including” shall mean “includes,
without limitation” and “including, without limitation,” as applicable, and the
word “any” shall mean “any or all”. Headings in this Agreement are for
reference purposes only and shall not affect the interpretation or meaning of
this Agreement.

 

1.3.         Interpretation. The terms and
conditions of this Agreement and all schedules attached hereto are incorporated
herein and deemed part of this Agreement. In the event of a conflict between
the general terms and conditions and the terms of any schedules or exhibits
attached hereto, the terms of the schedules and exhibits shall prevail and
control the interpretation of the Agreement with respect to the subject matter
of the applicable schedules and/or exhibits. The schedules and exhibits

 

2

 

together with the general terms
and conditions shall be interpreted as a single document. This Agreement may be
executed simultaneously in any number of counterparts, each of which shall be
deemed an original, but all of which together constitute one and the same
agreement.

 

1.4.         Affiliates.  Customer agrees that it is responsible for
ensuring compliance with this Agreement by those of its Affiliates that receive
Services under this Agreement.  Customer
agrees to be responsible for the submission of its Affiliates’ data to
Metavante for processing and for the transmission to Customer’s Affiliates of
such data processed by and received from Metavante.  Customer agrees to pay any and all fees owed
under this Agreement for Services rendered to its Affiliates.

 

TERM

 

2.1.         Duration.  Unless this Agreement has been earlier
terminated or unless Customer provides Metavante with written notice of
non-renewal at least nine (9) months prior to the expiration of the
Initial Term, this Agreement shall automatically renew at the end of the
Initial Term  on the same terms
(including pricing terms) for one (1) twelve-month period.  Upon expiration of such twelve (12) -month
extension, this Agreement shall expire unless renewed in writing by the
parties, provided, however, that Metavante may, but has no obligation to,
continue to provide all or any portion of the Services thereafter on a
month-to-month basis subject to these Terms and Conditions and Metavante’s
then-current standard fees and charges.

 

2.2.         Termination Assistance.  Following the expiration or early termination
of this Agreement, Metavante shall provide to Customer the Customer Data in the
format in which it exists on Metavante’s systems at no charge.  In addition, Metavante agrees to provide to
Customer all necessary assistance to facilitate the orderly transition of
Services to Customer or its designee (“Termination Assistance”).  As part of the Termination Assistance,
Metavante shall assist Customer to develop a plan for the transition of all
Services then being performed by Metavante under this Agreement, from Metavante
to Customer or Customer’s designee, on a reasonable schedule developed jointly
by Metavante and Customer.  Prior to
providing any Termination Assistance, Metavante shall deliver to Customer a
good-faith estimate of Expenses and charges, for custom programming services,
if requested by Customer.  Nothing
contained herein shall obligate Customer to receive Termination Assistance from
Metavante.

 

LICENSES

 

3.1.         Customer Marks.  Metavante is authorized to use Customer’s
service marks and trademarks solely if necessary to perform the Services and
solely for the purpose of providing the Services to Customer.  Any use of Customer’s marks by Metavante
shall be subject to Customer’s prior written approval, which shall not be
unreasonably withheld by Customer.

 

3.2.         Software License.  Customer (a) will install and operate
copies of certain Metavante-supplied software, if any, that is identified in
the Services and Charges Schedule as required for Customer to access or receive
certain of the Initial Services, (b) may access certain software that
Metavante will make available on the internet, and (c) may be provided
with copies of software for demonstration purposes (collectively, the “Incidental
Software”).  Metavante hereby grants to
Customer a personal, nonexclusive, and nontransferable license and right, for
the duration of this Agreement, to use the Incidental Software solely in
accordance with the applicable Documentation and for no other purposes.  Customer shall not do any of the following: (i) distribute,
sell, assign, transfer, or sublicense the Incidental Software, or any part
thereof, to any third party; (ii) except as specifically set forth in this
Agreement, adapt, modify, translate, reverse engineer, decompile, disassemble,
or create derivative works based on the Incidental Software or any part
thereof; (iii) copy the Incidental Software, in whole or in part, without
including appropriate copyright notices; (iv) except for providing banking
services to Customer’s customers, use the Incidental Software in any manner to
provide Service Bureau, time sharing, or other computer services to Third
Parties; (v) export the Incidental Software outside the United States,
either directly or indirectly; and/or (vi) install the Incidental Software
on a different platform or interface the Incidental Software to an application
written in a different computer language other than that set forth in the
Documentation.  Within 10 days of the
Effective Date of Termination, Customer shall, at its own expense, return the
Incidental Software to Metavante and/or destroy all copies thereof.

 

3

 

SERVICES

 

4.1.         Initial Services.  Metavante agrees to provide the Services as
set forth in the Schedules listed on the first page of this Agreement as
of the Effective Date.

 

4.2.         Professional Services.  Metavante shall perform the Professional
Services for Customer as set forth in the Services and Charges Schedule and
shall perform additional Professional Services as mutually agreed upon by the
parties from time to time under this Agreement, provided that either party may
require execution of a separate mutually acceptable professional services
agreement prior to Metavante’s performance of Professional Services other than
those set forth in the Services and Charges Schedule.

 

4.3.         Service Levels.  Service Levels, if any, relating to a
particular Service shall be as set forth in the Service Level Schedule.  The parties agree that Metavante’s
performance of Services at a level at or above any Service Level shall be
satisfactory performance.  Metavante
shall cure any failure to achieve a Service Level within the period specified
within the applicable schedule. 
Remedies, if any, for failure to achieve a Service Level shall be as set
forth in the Service Level Schedule.

 

4.4.         Payment Services.  The following additional terms shall apply with
respect to Payment Services.  Payment
Services are those Services provided by Metavante to effect payments between
Customer’s clients and third parties.

 

Settlement.   Metavante may remit or receive funds for
Customer as Customer’s payment processor. Customer is exclusively responsible
to reimburse Metavante for any and all funds remitted by Metavante to Networks,
payees, or third parties in settlement of transactions processed by Metavante
for Customer, whether or not Customer is able to collect the amount of any
transaction from its customer.  Customer
shall designate a settlement account in accordance with Metavante’s
requirements for the applicable Service. 
Metavante shall charge the designated settlement account(s) for
amounts owed by Customer for settlement. Customer shall, upon Metavante’s
demand, immediately pay to Metavante any settlement amount that Metavante is
unable to collect from the settlement account for any reason.  Metavante will provide Customer with daily
settlement and accounting information, and Customer agrees that Customer is
responsible for the daily maintenance and reconciliation of all accounting
entries.  Customer agrees to compensate
Metavante for carrying any unfunded settlement using the then-published prime
rate of M&I Marshall & Ilsley Bank.  Metavante may terminate this Agreement in the
event that settlement remains unfunded by Customer for more than two (2) business
days.

 

Card
Services.  The
following applies to Services provided by Metavante in support of Customer’s debit
or credit card issuing or merchant processing programs.

 

Networks.  Customer
acknowledges and agrees that Customer must obtain required memberships in all
applicable Networks.  If Customer is not
a duly licensed card issuing member of any Network, Customer shall execute
applications for membership and shall provide Metavante with copies of its
fully executed membership agreements promptly after receipt by Customer.  Metavante agrees to assist Customer in
obtaining sponsorship by an appropriate bank, if necessary, for MasterCard or
Visa membership.   Customer shall comply
with the articles, bylaws, operating regulations, rules, procedures and
policies of Visa, MasterCard, and/or other Networks, as applicable, and shall
be solely responsible, as between Customer and Metavante, for any claims,
liabilities, lawsuits and expenses arising out of or caused by Customer’s
failure to comply with the same.   Customer acknowledges and agrees that, because Metavante is Customer’s
processor, Metavante may receive certain services from MasterCard, Visa, and/or
other Networks that Customer could receive directly in the event Customer
performed the processing services for itself. 
Customer agrees that Metavante may pass through to Customer any fees
charged to Metavante for such services, and that Metavante has no
responsibility or liability to Customer for any such services.  Prior to the transfer of the Services to
Customer or its designee upon the Effective Date of Termination, Customer shall
take all actions required by the applicable Network to effect the
transfer.  In addition to the charges
specified on the Services and Charges Schedule, Customer shall be responsible
for (i) all interchange and network provider fees; (ii) all dues,
fees, fines, and assessments established by and owed by Customer to any
Network; and (iii) for all costs and fees associated with changes to ATM
protocol caused by Customer’s conversion to the Services.

 

Card Personalization Services.  If Metavante is providing card
personalization services for Customer, the following will apply.  Delivery of cards will be deemed complete
with respect to any order upon Metavante’s delivery of the supply of cards to
either the United States Post Office, a common carrier or courier, or Customer’s
designated employee or agent.  Following
delivery of the cards in accordance with the foregoing, the card production
services with respect to such order shall be completed, and Metavante shall
have no further responsibility whatsoever for any use, abuse, loss, damage, alteration,
or theft of cards following delivery. 
Metavante shall be responsible to produce cards in conformance with
applicable network standards and for the proper preparation of mailers (e.g.,
sealing and addressing).  Customer shall
notify Metavante in writing of any alleged breach of the 

 

4

 

foregoing by Metavante.  Metavante’s
sole responsibility, and Customer’s sole remedy, shall be to provide, at
Metavante’s expense, a conforming replacement card to the appropriate
cardholder(s).

 

Settlement Account.  Customer shall maintain an account for
purposes of funding or receiving settlement, as applicable, and authorizes
Metavante to charge the settlement account via ACH debit or otherwise for any
net settlement owed by Customer to Metavante, and to deposit to the settlement
account any net settlement owed by Metavante to Customer.   Metavante may offset amounts payable to
Customer against amounts payable by Customer for purposes of determining a net
settlement amount to charge to the settlement account. For at least 120 days
following the Effective Date of Termination, Customer shall maintain a
settlement account which Metavante may charge to settle any trailing activity
which accrues prior to the Effective Date of Termination (including any
chargeback of a transaction which is authorized prior to the Effective Date of
Termination).  Customer shall pay to
Metavante fees at Metavante’s then-current standard rates to settle such
trailing activity.

 

Business Risk.  Customer is responsible for its decisions
regarding its business risks (including risk of credit losses, fraud losses,
counterfeit losses, and fees and fines for noncompliance with laws,
regulations, or Visa/MasterCard rules, if applicable).  Metavante will provide Customer with certain
reports (some in paper form, some in microfiche form, and/or some available
on-line or through some other electronic media), including management reports,
but Customer is responsible to review, monitor, and act upon information in
such reports to minimize and control risks, losses, fees, and fines.    Customer shall be responsible to furnish
and pay for all forms and documents used by Customer and shall be solely
responsible for the compliance of such forms, documents, and procedures with
the operating requirements of Metavante, Network rules and operating
regulations, if applicable, and applicable federal, state, and local laws and
regulations.  Metavante may provide
sample forms, documents, and procedures to Customer for information purposes,
but Metavante makes no warranty or representation as to the legality or
accuracy of such forms, documents, or procedures.

 

BIN Transfer.  Prior
to the transfer of the Services to Customer or its designee upon the expiration
of the Term of this Agreement, Customer shall inform Visa and/or MasterCard
and/or any other applicable Network in writing (with a copy to Metavante) (1) of
the transfer of its Bank Identification Number (BIN) or Interbank Card
Association Number, or other identifying number (as applicable) to the new
processor, and (2) of the new ACH account number for billing purposes.

 

Credit Cards.

 

Customer authorizes Metavante and grants to Metavante power-of-attorney
to endorse any and all checks payable to Customer which are received by
Metavante in payment of credit card accounts for which Metavante provides
payment processing services.

 

Customer may request that Metavante make available to Customer’s credit
card cardholders checks or drafts which the cardholders may use to draw on
their credit card account.  Customer
agrees that neither Metavante nor Metavante’s payable through bank shall have
any responsibility to review or verify the signature of the drawer of any
credit card check, and Customer will be responsible for the full amount of any
credit card check paid by Metavante for Customer.

 

Pay
Anyone Services.   “Pay
Anyone” services are those services that Metavante provides to remit payments
to any U.S. payee using electronic funds transfer or paper checks.  The services may include online user
interfaces and electronic statement presentment.  The following terms apply to these Services.

 

Access.  Customer shall comply with Metavante’s
requirements for making the Services operational and available for Customer
and/or End Users (as hereinafter defined). 
An “End User” is a person for whom Metavante provides the Services on
Customer’s instruction or on Customer’s behalf. 
In the event that Metavante shall provide online user interfaces for the
Services (the “Branded Website(s)”), Customer agrees that Metavante is under no
obligation to provide any person with access to the Services unless and until
Customer has provided Metavante with all information and documentation required
by Metavante for End User set-up.

 

End User Agreements.  Customer is solely responsible for verifying
each End User’s identity, and for contracting with, and managing the
relationship with, End Users of the Services, and obtaining all necessary End
User authorization to provide the Pay Anyone Services.  Metavante will not have a contractual
relationship with End Users, and so must rely upon Customer to manage liability
and risk issues.  Customer will include
reasonable provisions in its End User agreements regarding, and shall indemnify
Metavante against, defend Metavante against, and hold Metavante harmless from
claims arising from (a) Customer’s failure to verify the End User’s
identity; (b) any End User’s use of or inability to use the Services,
specifically including any End User’s claim for economic loss or damages
arising from the End User’s use of the Services; (c) transactions effected
with a lost, stolen, counterfeit, or 

 

5

 

misused log-in ID and/or password; or (d) actions taken by
Metavante in accordance with an End User’s instruction.  Customer and its End Users shall be
responsible for selecting and safeguarding their passwords for using the
Services.  As between Customer and
Metavante, any use of the Services through use of a valid password shall be
authorized use, provided that Metavante will cancel or disable any End User
promptly following notification from Customer.

 

Settlement Account.  Customer shall designate the applicable
settlement account for transactions.  The
settlement account shall be either each End User’s designated account for bill
payment activities initiated by the End User or Customer’s designated central
settlement account to fund such payments. Customer is and shall remain solely
and exclusively responsible to Metavante for the entire amount of any payment
processed for and on behalf of an End User that is not funded due to
insufficient funds in the applicable settlement account or for any other reason
outside Metavante’s control, whether or not the payment was authorized by the
End User.

 

Payment Processing.  Metavante shall have the right to remit,
stop, cancel, and manage payments and ACH re-issuance and returns as deemed
most reasonable by Metavante, and Metavante may cancel payments, or block any
User from initiating additional payments, in Metavante’s reasonable
discretion.  Customer authorizes
Metavante to contact payees and End Users with respect to payments processed by
Metavante.  Metavante may process
payments using the Automated Clearing House (“ACH”).  In doing so, Metavante acts as Customer’s
third-party service provider and is not itself an “Originator,” “ODFI,” or “RDFI”
(as defined under National Automated Clearing House Association (“NACHA”)
rules).  Metavante may remit payments
using checks drawn on Metavante’s clearing account, and may set an expiration
date for such checks.  Metavante may also
remit payments using checks drawn on the User’s designated account.  From time to time, Metavante may contact End
Users to recover payment errors (common sources of payment errors include
incorrect recipient (payee); delivered incorrectly by the postal service;
consolidation error directed the payment to an incorrect party; stop-payment
request honored and funds re-credited to End User’s account, but the check was
paid; Metavante error; or duplicate payment made to payee).  In the case of payment errors, Metavante will
always contact the payee first to attempt direct retrieval of the funds.  If Metavante is unable to retrieve the funds
from the payee and the End User received benefit of the payment, Metavante may
seek reimbursement from the End User. Customer shall be responsible for any
losses to Metavante associated with payments by Metavante to, or at the
direction of, government agencies, organizations and institutions, or
court-directed payments.

 

Data Transfers.  In the event that Customer transfers data
from another service provider to Metavante to convert Customer’s end users to
Metavante’s systems, Metavante will not be responsible for any errors, delays,
or problems in providing the Services that arise from the quality, reliability,
or currency of the transferred data, including, without limitation, late fees
for payments that are delayed due to the conversion of inaccurate or outdated
payee data.  In the case of deconversions
of User data from Metavante’s system, Customer shall pay Metavante fees, at
Metavante’s then-standard professional services rates, to deconvert the User
data at Customer’s request.  Customer
agrees to provide Metavante at least six (6) weeks notice of any request
to convert or deconvert User data to or from Metavante’s systems.  All payee data and Metavante’s payee database
shall be Metavante’s property, which may be used by Metavante without
limitation for purposes of maintaining and providing “Pay Anyone” bill payment
services for Metavante’s customers.

 

Electronic
Biller Services. 
Electronic biller services are services provided by Metavante to enable
Customer to present bills electronically to its customers and/or accept online
credit card and/or ACH payment instructions from its customers.  The following terms apply to these Services:

 

Access.  Customer
shall comply with Metavante’s requirements for making the Services operational
and available for Customer and/or End Users (as hereinafter defined).  An “End User” is a person for whom Metavante
provides the Services on Customer’s instruction or authorization or on Customer’s
behalf.

 

End User Agreements.  Customer is solely responsible for verifying
each End User’s identity, and for contracting with, and managing the
relationship with, End Users of the Services, and obtaining all necessary End
User authorization to provide the Services. 
Metavante will not have a contractual relationship with End Users, and
so must rely upon Customer to manage liability and risk issues.  Customer will include reasonable provisions
in its End User agreements regarding, and shall indemnify Metavante against,
defend Metavante against, and hold Metavante harmless from claims arising from (a) Customer’s
failure to verify the End User’s identity; (b) any End User’s use of or
inability to use the Services, specifically including any End User’s claim for
economic loss or damages arising from the End User’s use of the Services; (c) transactions
effected with a lost, stolen, counterfeit, or misused log-in ID and/or 

 

6

 

password;
(d) Customer’s policy with respect to privacy, including notice(s) regarding
the collection, use, storage, security, and review of personally identifiable
data collected;  actions taken by
Metavante in accordance with an End User’s instruction.  Customer and its End Users shall be
responsible for selecting and safeguarding their passwords for using the
Services.  As between Customer and
Metavante, any use of the Services through use of a valid password shall be
authorized use, provided that Metavante will cancel or disable any End User
promptly following notification from Customer.

 

Payment Files.  Metavante will prepare payment files for
Customer as Customer’s third-party service provider and deliver the files to
Customer’s designated ODFI (for ACH files) or transaction processor (for credit
card files).  Metavante’s sole
responsibility for any error in payment or reversed payment is to determine
whether any mechanical, procedural, or processing problems occurred at
Metavante during the preparation of the payment file(including but not limited
to rejection of files) and, if necessary, reprocess and resubmit the payment
file without additional charge.

 

Statement Data.  If Customer is receiving bill presentment
services, Metavante shall make statement data available for End Users to access
through entities participating in Metavante’s electronic bill presentment
network.

 

ACH
Services.

 

General.  “ACH Services”
means Services whereby Metavante will (i) initiate and/or receive
automated clearing house debit and credit entries, and adjustments to debit
entries and credit entries to Customer’s account, (ii) credit and/or debit
the same to such account.  Customer
authorizes Metavante to act as Customer’s third-party processor for initiating,
transmitting, and/or receiving ACH entries. 
If agreed to between Customer and Metavante, Metavante shall provide for
the posting of ACH entries to Customer deposit accounts.  Metavante shall provide reports to Customer
showing errors and rejections resulting from ACH entries transmitted on behalf
of Customer during a particular day.  It
shall be Customer’s responsibility to review such reports and correct erroneous
ACH entries.

 

Timing.  Metavante
shall make reasonable efforts to deliver ACH entries to Customer or to an ACH
operator, as appropriate, prior to any applicable deadline for such
delivery.  Metavante does not guarantee
timely delivery.  Metavante shall have no
liability to Customer as a result of any late delivery, except to the extent
such late delivery is (i) caused by the willful misconduct of Metavante,
and (ii) made more than 24 hours after its scheduled deadline.

 

NACHA Rules.  In
providing ACH Services for Customer, Metavante acts as Customer’s third-party
service provider and is not itself an “Operator,” “Originator,” “ODFI,” or “RDFI”
(as defined under NACHA rules).  Customer
shall be responsible for compliance with all applicable laws, rules, and
regulations regarding Customer’s use of and/or access to the ACH Services,
including applicable rules and regulations of the National Automated
Clearing House Association (“NACHA”).  In
particular and as applicable, (i) Customer will provide its depositors
with all disclosures required under state and federal law and (ii) shall
enter into an agreement with each party that will initiate ACH entries to
accounts (an “Originator”) prior to permitting the Originator to initiate ACH
entries.  Customer shall indemnify
Metavante from, defend Metavante against, and hold Metavante harmless from any
and all loss, claim, or liability to any Third Party from Customer’s breach of
the foregoing obligations.  Upon
notification from Customer of the occurrence of an error or omission with
respect to an ACH entry, Metavante shall promptly furnish corrected ACH
entry(ies) to the applicable ACH operator, unless the NACHA rules prohibit
the processing of the correct ACH entry(ies). 
Metavante’s liability to Customer for claims arising out of the ACH
Services performed by Metavante pursuant to this Agreement shall be limited to
the processing of appropriate corrected ACH entry(ies).

 

7

 

FEES

 

5.1.         Fee Structure.  Customer agrees to pay fees for the Initial
Services as set forth in the Services and Charges Schedule.  If Customer elects to receive Services that
are not specifically set forth in the Services and Charges Schedule, Customer
agrees to pay fees as mutually agreed upon for such Services.  Any Services not identified in the Services
and Charges Schedule will be at Metavante’s standard list pricing unless the
parties mutually agree in writing to a different price.

 

5.2.         Pricing and Operational Assumptions.  The Services and Charges Schedule shall set
forth any operational and pricing assumptions made by Metavante following
completion of its preliminary due diligence of Customer’s requirements and its
evaluation of information provided by Customer. 
If one or more of the pricing or operational assumptions listed in the
Services and Charges Schedule are inaccurate or incomplete in any material
respect, the parties will negotiate in good faith regarding an equitable
adjustment to any materially and adversely impacted provisions of this
Agreement.

 

5.3.         Excluded Costs. The fees set
forth in the Services and Charges Schedule do not include Expenses, late fees
or charges, or Taxes, all of which shall be the responsibility of Customer.

 

5.4.         Disputed Amounts.  If Customer disputes any charge or amount on
any invoice and such dispute cannot be resolved promptly through good-faith
discussions between the parties, Customer shall pay the amounts due under this
Agreement minus the disputed amount, and the parties shall diligently proceed
to resolve such disputed amount.  An
amount will be considered disputed in good faith if (i) Customer delivers
a written statement to Metavante, on or before the due date of the invoice,
describing in detail the basis of the dispute and the amount being withheld by
Customer, (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 Customer that are not in dispute have been paid in accordance
with the terms of this Agreement. 
Customer’s right to assert claims under this Agreement shall be subject
to Customer’s payment in full of previously invoiced, past due amounts that
have not been disputed in accordance with this Section.

 

5.5.         Terms of Payment.    Customer shall pay the Monthly Base Fee in
advance on the first day of the calendar month in which the Services are to be
performed.  Any and all other amounts
payable under this Agreement shall be due thirty (30) days following the date
of invoice, unless otherwise provided in the Services and Charges
Schedule.  Undisputed charges not paid by
the applicable due date shall be subject to annual interest at the rate of 12%
or the highest rate permitted by law, whichever is lower.  Customer shall also pay any collection fees,
court costs, reasonable attorneys’ fees, and other fees, costs, and charges
incurred by Metavante in collecting payment of the charges and any other
amounts for which Customer is liable under the terms and conditions of this
Agreement.  Customer agrees to maintain a
depository account with a financial institution reasonably acceptable to
Metavante for the payment of amounts payable hereunder and hereby authorizes
Metavante to initiate debit entries to such account for the payment of amounts
payable hereunder.  Customer agrees to
provide Metavante with any and all information necessary for Metavante to
initiate such debit entries via the Automated Clearing House (ACH) system.

 

5.6.         Modification of Terms and Pricing.
Charges for all Services shall be subject to a three percent (3%) annual
increase.  Such increases shall be waived
subject to terms designated in the Services and Charges Schedule.

 

PERFORMANCE WARRANTY/DISCLAIMER OF ALL OTHER
WARRANTIES

 

6.1.         Performance Warranty.  Metavante warrants that it will provide all
Services in a commercially reasonable manner in material conformance with the
applicable Documentation (the “Performance Warranty”).  Where the parties
have agreed upon Service Levels for any aspect of Metavante’s performance, such
Service Levels shall apply in lieu of the Performance Warranty.  THIS PERFORMANCE WARRANTY IS SUBJECT TO THE
WARRANTY EXCLUSIONS SET FORTH BELOW IN SECTION 6.2.

 

6.2.         Performance Warranty Exclusions.  Except as may be expressly agreed in writing
by Metavante, Metavante’s Performance Warranty does not apply to:

 

A.            defects, problems, or failures
caused by the Customer’s nonperformance of obligations essential to Metavante’s
performance of its obligations; and/or

 

B.            defects, problems, or failures
caused by an event of force majeure.

 

6.3.         DISCLAIMER OF ALL OTHER WARRANTIES.  THIS PERFORMANCE WARRANTY, AND THE WARRANTIES
IN ARTICLE 6 HEREOF, ARE IN LIEU OF, AND METAVANTE DISCLAIMS ANY AND ALL OTHER
WARRANTIES, CONDITIONS, OR REPRESENTATIONS (EXPRESS OR IMPLIED, ORAL OR
WRITTEN) WITH RESPECT TO THE SERVICES PROVIDED UNDER THIS AGREEMENT, INCLUDING,
WITHOUT LIMITATION, ANY AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS OR SUITABILITY FOR ANY PURPOSE (WHETHER OR NOT METAVANTE 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 

 

8

 

COURSE OF DEALING.  IN ADDITION, METAVANTE DISCLAIMS ANY WARRANTY
OR REPRESENTATION TO ANY PERSON OTHER THAN CUSTOMER WITH RESPECT TO THE
SERVICES PROVIDED UNDER THIS AGREEMENT.

 

MODIFICATION OR PARTIAL TERMINATION

 

7.1.         Modifications to Services.  Metavante may relocate, modify, amend,
enhance, update, or provide an appropriate replacement for the software used to
provide the Services, or any element of its systems or processes at any time or
withdraw, modify, or amend any function of the Services, provided that neither
the functionality of the Services nor any applicable Service Levels are
materially adversely affected.

 

7.2.         Partial Termination by Metavante.  Except as may be provided in any Schedule,
Metavante may, at any time, withdraw any of the Services upon providing ninety
(90) days’ prior written notice to Customer, provided that Metavante is
withdrawing the Service(s) from its entire client base.  Metavante may also terminate any function or
any Services immediately upon any final regulatory, legislative, or judicial
determination that providing such function or Services is inconsistent with
applicable law or regulation or the rights of any Third Party.  If Metavante terminates any Service pursuant
to this paragraph, Metavante agrees to assist Customer, without additional
charge, in identifying an alternate provider of such terminated Service.

 

7.3.         Partial Termination by Customer.   Except as may be provided in any Schedule,
Customer agrees that, during the Term, Metavante shall be Customer’s sole and
exclusive provider of all Services.  If
Customer breaches the foregoing covenant, the same shall constitute a partial
termination of this Agreement, and Customer shall pay Metavante the Termination
Fee for the affected Service, as liquidated damages and not as a penalty.

 

TERMINATION/DEFAULT

 

8.1.         Early Termination.  The terms and conditions set forth on the
Termination Fee Schedule of the Agreement shall govern the early termination of
this Agreement (or any Service).

 

9

 

8.2.         For Cause.

 

A.            If either party fails to perform any
of its material obligations under this Agreement (a “Default”) and does not
cure such Default in accordance with this Section, then the non-defaulting
party may, by giving notice to the other party, terminate this Agreement as of
the date specified in such notice of termination, or such later date agreed to
by the parties, and/or recover Damages. 
A party may terminate the Agreement in accordance with the foregoing if
such party provides written notice to the defaulting party and either (a) the
defaulting party does not cure the Default within sixty (60) days of the
defaulting party’s receipt of notice of the Default, if the Default is capable
of cure within sixty (60) days, or (b) if the Default is not capable of
cure within thirty (30) days, the defaulting party does not both (i) implement
a plan to cure as soon as reasonably practicable the Default within sixty (60)
days of receipt of notice of the Default, and (ii) diligently carry-out the
plan in accordance with its terms and actually cure such default within the tie
specified in such plan.  The parties
acknowledge and agree that a failure to pay any amount when due hereunder shall
be a Default that is capable of being cured within thirty (30) days. The
parties acknowledge and agree that any error in processing data, preparation or
filing of a report, form, or file, or the failure to perform Services as
required hereunder shall be satisfactorily cured upon the completion of
accurate re-processing, the preparation or filing of the accurate report, form,
or file, or the re-performance of the Services in accordance with applicable
requirements, respectively.

 

8.3.         For Insolvency.  In addition to the termination rights set
forth in Sections 8.1 and 8.2, subject to the provisions of Title 11, United
States Code, if either party becomes or is declared insolvent or bankrupt, is
the subject to any proceedings relating to its liquidation, insolvency or for
the appointment of a receiver or similar officer for it, makes an assignment
for the benefit of all or substantially all of its creditors, or enters into an
agreement for the composition, extension, or readjustment of all or
substantially all of its obligations then the other party may, by giving written
notice to such party, may terminate this Agreement as of a date specified in
such notice of termination; provided that the foregoing shall not apply with
respect to any involuntary petition in bankruptcy filed against a party unless
such petition is not dismissed within sixty (60) days of such filing.

 

LIMITATION OF LIABILITY/MAXIMUM DAMAGES ALLOWED

 

9.1      Equitable Relief. 
Either party may seek equitable remedies, including injunctive relief,
for a breach of the other party’s obligations under Article 13 of this
Agreement, prior to commencing the dispute resolution procedures set forth in Section 11
below.

 

9.2      Exclusion of Incidental and Consequential Damages.  Independent of, severable from,
and to be enforced independently of any other provision of this Agreement,
NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY (NOR TO ANY PERSON CLAIMING
RIGHTS DERIVED FROM THE OTHER PARTY’S RIGHTS) IN CONTRACT, TORT (INCLUDING
NEGLIGENCE), OR OTHERWISE, FOR INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE, OR
EXEMPLARY DAMAGES OF ANY KIND—including lost profits, loss of business, or
other economic damage, and further including injury to property, AS A RESULT OF
BREACH OF ANY WARRANTY OR OTHER TERM OF THIS AGREEMENT, INCLUDING ANY FAILURE
OF PERFORMANCE, REGARDLESS OF WHETHER THE PARTY LIABLE OR ALLEGEDLY LIABLE WAS
ADVISED, HAD OTHER REASON TO KNOW, OR IN FACT KNEW OF THE POSSIBILITY THEREOF.

 

9.3      Maximum Damages Allowed.  Notwithstanding any other provision of this
Agreement, and for any reason, including breach of any duty imposed by this
Agreement or independent of this Agreement, and regardless of any claim in
contract, tort (including negligence) or otherwise, Metavante’s total,
aggregate liability under this Agreement shall in no circumstance exceed
payments made to Metavante by Customer for the Services during the three (3) months
prior to the act or event giving rise to such claim.  No such limitation shall apply with respect
to Metavante’s willful misconduct.

 

9.4      Statute of Limitations.  No lawsuit or other action may be brought by
either party hereto, or on any claim or controversy based upon or arising in
any way out of this Agreement, after one (1) year from the date on which
the cause of action arose regardless of the nature of the claim or form of
action, whether in contract, tort (including negligence), or otherwise;
provided, however, the foregoing limitation shall not apply to the collection
of any amounts due Metavante under this Agreement.

 

9.5      Tort Claim Waiver. 
In addition to and not in limitation of any other provision of this Article 9,
each party hereby knowingly, voluntarily, and intentionally waives any right to
recover from the other party, and Customer waives any right to recover from any
Eligible Provider, any economic losses or damages in any action brought under
tort theories, including, misrepresentation, negligence and/or strict
liability, and/or tort claims relating to the quality or performance of any
products or services provided by Metavante. 
For purposes of this waiver, economic losses and damages include
monetary losses or damages caused by a defective product or service except
personal injury or damage to other tangible property.  Even if remedies provided under this
Agreement shall be deemed to have failed of their essential purpose, neither
party shall have any liability to the other party under tort theories for
economic losses or damages.

 

10

 

9.6           Liquidated
Damages. 
Customer acknowledges that Metavante shall suffer a material adverse
impact on its business if this Agreement is terminated prior to expiration of
the Term, and that the resulting damages may not be susceptible of precise
determination.  Customer acknowledges
that the Termination Fee is a reasonable approximation of such damages and
shall be deemed to be liquidated damages and not a penalty.

 

9.7           Essential
Elements. 
Customer and Metavante acknowledge and agree that the limitations
contained in this Article 9 are essential to this Agreement, and that
Metavante has expressly relied upon the inclusion of each and every provision
of this Article 9 as a condition to executing this Agreement.

 

INSURANCE AND INDEMNITY.

 

10.1.       Insurance.  Metavante shall maintain for its own
protection fidelity bond coverage for its personnel; insurance coverage for
loss from fire, disaster or other causes contributing to interruption of normal
services, reconstruction of data file media and related processing costs;
additional expenses incurred to continue operations; and business interruption
to reimburse Metavante for losses resulting from suspension of the Services due
to physical loss of equipment.

 

10.2.       Indemnity.

 

A.            Except as provided in 10.2B below,
Customer shall indemnify Metavante from, defend Metavante against, and pay any
final judgments awarded against Metavante, resulting from any claim brought by
a Third Party against Metavante based on Customer’s use of the Services to
support its operations, Metavante’s compliance with Customer’s specifications
or instructions, or Metavante’s use of trademarks or data supplied by Customer.

 

B.            Metavante shall indemnify Customer
from, defend Customer against, and pay any final judgment awarded against
Customer, resulting from any claim brought by a Third Party against Customer
based on Metavante’s alleged infringement of any patent, copyright, or
trademark of such Third Party under the laws of the United States, unless and
except to the extent that such infringement is caused by Metavante’s compliance
with Customer’s unique specifications or instructions, or Metavante’s use of
trademarks or data supplied by Customer.

 

10.3.       Indemnification Procedures.  If any Third Party makes a claim covered by Section 10.2
against an indemnitee with respect to which such indemnitee intends to seek
indemnification under this Section, such indemnitee shall give notice of such
claim to the indemnifying party, including a brief description of the amount
and basis therefor, if known.  Upon
giving such notice, the indemnifying party shall be obligated to defend such
indemnitee against such claim, and shall be entitled to assume control of the
defense of the claim with counsel chosen by the indemnifying party, reasonably
satisfactory to the indemnitee.  The
indemnitee shall cooperate fully with and assist the indemnifying party in its
defense against such claim in all reasonable respects.  The indemnifying party shall keep the
indemnitee fully apprised at all times as to the status of the defense.  Notwithstanding the foregoing, the indemnitee
shall have the right to employ its own separate counsel in any such action, but
the fees and expenses of such counsel shall be at the expense of the indemnitee.  Neither the indemnifying party nor any
indemnitee shall be liable for any settlement of action or claim effected
without its consent.  Notwithstanding the
foregoing, the indemnitee shall retain, assume, or reassume sole control over
all expenses relating to every aspect of the defense that it believes is not
the subject of the indemnification provided for in this Section.  Until both (a) the indemnitee receives
notice from indemnifying party that it will defend, and (b) the
indemnifying party assumes such defense, the indemnitee may, at any time after
ten (10) days from the date notice of claim is given to the indemnifying
party by the indemnitee, resist or otherwise defend the claim or, after
consultation with and consent of the indemnifying party, settle or otherwise
compromise or pay the claim.  The
indemnifying party shall pay all costs of indemnity arising out of or relating
to that defense and any such settlement, compromise, or payment.  The indemnitee shall keep the indemnifying
party fully apprised at all times as to the status of the defense.  Following indemnification as provided in this
Section, the indemnifying party shall be subrogated to all rights of the
indemnitee with respect to the matters for which indemnification has been made.

 

DISPUTE RESOLUTION

 

11.1        Representatives of Parties.  All disputes arising under or in connection
with this Agreement shall initially be referred to the representatives of each
party who customarily manages the relationship between the parties.  If such representatives are unable to resolve
the dispute within five (5) Business Days after referral of the matter to
them, the managers of the representatives shall attempt to resolve the
dispute.  If, after five (5) Business
Days they are unable to resolve the dispute, senior executives of the parties
shall attempt to resolve the dispute. 
If, after five (5) Business Days they are unable to resolve the
dispute, the parties shall submit the dispute to the chief executive officers
of the parties for resolution.  Neither
party shall commence legal proceedings with regard to a dispute until
completion of the dispute resolution procedures set forth in this Section 11,
except to the extent necessary to preserve its rights or maintain a superior
position against other creditors or claimants.

 

11

 

11.2        Continuity of Performance.  During the pendency of the dispute resolution
proceedings described in this Article 11, Metavante shall continue to
provide the Services so long as Customer shall continue to pay all undisputed
amounts to Metavante in a timely manner.

 

AUTHORITY

 

12.1.       Metavante.  Metavante warrants that:

 

Metavante
has the right to provide the Services hereunder, using all computer software
required for that purpose.

 

Metavante is a corporation validly existing and in active status under
the laws of the State of Wisconsin.  It
has all the requisite corporate power and authority to execute, deliver, and
perform its obligations under this Agreement. 
The execution, delivery, and performance of this Agreement have been
duly authorized by Metavante, and this Agreement is enforceable in accordance
with its terms against Metavante.  No
approval, authorization, or consent of any governmental or regulatory
authorities is required to be obtained or made by Metavante in order for
Metavante to enter into and perform its obligations under this Agreement.

 

12.2.       Customer.  Customer warrants that:

 

Customer
has all required licenses and approvals necessary to use the Services in the
operation of its business.

 

Customer
is validly existing and in good standing under the laws of the state of its
incorporation or charter, or if a national bank, the United States of
America.  It has all the requisite
corporate power and authority to execute, deliver, and perform its obligations
under this Agreement.  The execution,
delivery, and performance of this Agreement have been duly authorized by
Customer, and this Agreement is enforceable in accordance with its terms
against Customer.  No approval,
authorization, or consent of any governmental or regulatory authorities is
required to be obtained or made by Customer in order for Customer to enter into
and perform its obligations under this Agreement.

 

In the
event that Customer requests Metavante to disclose to any Third Party or to use
any of Customer’s Confidential Information (as defined in Section 13.3),
and such Confidential Information is or may be subject to the Privacy
Regulations, such disclosure or use shall be permitted by the Privacy
Regulations and by any initial, annual, opt-out, or other privacy notice that
Customer issued with respect to such Confidential Information pursuant to the
Privacy Regulations.

 

CONFIDENTIALITY AND OWNERSHIP

 

13.1.       Customer Data.  Customer shall remain the sole and exclusive
owner of all Customer Data and its Confidential Information (as defined in Section 13.3),
regardless of whether such data is maintained on magnetic tape, magnetic disk,
or any other storage or processing device. 
All such Customer Data and other Confidential Information shall, however,
be subject to regulation and examination by the appropriate auditors and
regulatory agencies to the same extent as if such information were on Customer’s
premises.

 

13.2.       Metavante Systems.  Customer acknowledges that it has no rights
in any of Metavante’s software, systems, documentation, guidelines, procedures,
and similar related materials or any modifications thereof, unless and except
as expressly granted under this Agreement.

 

13.3.       Confidential Information.  “Confidential Information” of a party shall
mean all confidential or proprietary information and documentation of such
party, whether or not marked as such including, with respect to Customer, all
Customer Data.  Confidential Information
shall not include: (a) information which is or becomes publicly available
(other than by the party having the obligation of confidentiality) without
breach of this Agreement; (b) information independently developed by the
receiving party; (c) information received from a Third Party not under a
confidentiality obligation to the disclosing party; or (d) information
already in the possession of the receiving party without obligation of
confidence at the time first disclosed by the disclosing party.  The parties acknowledge and agree that the
substance of the negotiations of this Agreement, and the terms of this
Agreement are considered Confidential Information subject to the restrictions
contained herein.

 

13.4.       Obligations of the Parties.  Except as permitted under this Section 13.4
and applicable law, neither party shall use, copy, sell, transfer, publish,
disclose, display, or otherwise make any of the other party’s Confidential
Information available to any Third Party without the prior written consent of
the other party.  Each party shall hold
the Confidential Information of the other party in confidence and shall not
disclose or use such Confidential Information other than for the purposes
contemplated by this Agreement and, to the extent that Confidential Information
of Customer may be subject to the Privacy Regulations, as permitted by the
Privacy Regulations, and shall instruct their employees, agents, and
contractors to use the same care and discretion with respect to the
Confidential Information of the other party or of any Third Party utilized
hereunder that Metavante and Customer each require with respect to their own
most confidential information, but in no event less than a reasonable standard
of care, including the utilization of security devices or procedures designed
to prevent unauthorized access to such materials.  Each party shall instruct its employees,
agents, and contractors (a) of its confidentiality obligations hereunder
and (b) 

 

12

 

not to attempt to circumvent any
such security procedures and devices. 
Each party’s obligation under the preceding sentence may be satisfied by
the use of its standard form of confidentiality agreement, if the same
reasonably accomplishes the purposes here intended.  All such Confidential Information shall be
distributed only to persons having a need to know such information to perform
their duties in conjunction with this Agreement.  A party may disclose the other party’s
Confidential Information if required to do so by subpoena, court or regulatory
order, or other legal process, provided the party notifies the disclosing party
of its receipt of such process, and reasonably cooperates, at the disclosing
party’s expense, with efforts of the disclosing party to prevent or limit
disclosure in response to such process.

 

13.5.       Information Security.  Metavante shall be responsible for
establishing and maintaining an information security program (including
physical security of physical items) that is designed to (i) ensure the
security and confidentiality of Customer Data, (ii) protect against any
anticipated threats or hazards to the security or integrity of Customer Data, (iii) protect
against unauthorized access to or use of Customer Data that could result in
substantial harm or inconvenience to Customer or any of its customers, and (iv) ensure
the proper disposal of Customer Data. 
Customer shall be responsible for maintaining security for its own
systems, servers, and communications links as necessary to (a) protect the
security and integrity of Metavante’s systems and servers on which Customer
Data is stored, and (b) protect against unauthorized access to or use of
Metavante’s systems and servers on which Customer Data is stored.  Metavante will (1) take appropriate
action to address any incident of unauthorized access to Customer Data and (2) notify
Customer as soon as possible of any incident of unauthorized access to
Sensitive Customer Information and any other breach in Metavante’s security
that materially affects Customer or Customer’s customers.  If the primary federal regulator for Customer
is the Office of Thrift Supervision (the “OTS”), Metavante will also notify the
OTS as soon as possible of any breach in Metavante’s security that materially
affects Customer or Customer’s customers. Either party may change its security
procedures from time to time as commercially reasonable to address operations
risks and concerns in compliance with the requirements of this section.

 

13.6.       Ownership and Proprietary Rights.  Metavante reserves the right to determine the
hardware, software, and tools to be used by Metavante in performing the
Services.  Metavante shall retain title
and all other ownership and proprietary rights in and to the Metavante
Proprietary Materials and Information, and any and all derivative works based
thereon.  Such ownership and proprietary
rights shall include any and all rights in and to patents, trademarks,
copyrights, and trade secret rights. 
Customer agrees that the Metavante Proprietary Materials and Information
are not “work made for hire” within the meaning of U.S. Copyright Act, 17
U.S.C. Section 101.

 

13.7.       The Privacy Regulations.  In the event that Customer requests Metavante
to disclose to any Third Party or to use any of Customer’s Confidential
Information, and such Confidential Information is or may be subject to the
Privacy Regulations, Metavante reserves the right, prior to such disclosure or
use, (a) to review any initial, annual, opt-out, or other privacy notice
that Customer issued with respect to such Confidential Information pursuant to the
Privacy Regulations, and if requested by Metavante, Customer shall promptly
provide Metavante with any such notice, and (b) to decline to disclose to
such Third Party or to use such Confidential Information if Metavante, in
Metavante’s sole discretion, believes that such disclosure or use is or may be
prohibited by the Privacy Regulations or by any such notice.

 

13.8.       Publicity.  Neither party shall refer to the other party
directly or indirectly in any media release, public announcement, or public
disclosure relating to this Agreement or its subject matter, in any promotional
or marketing materials, lists, or business presentations, without consent from
the other party for each such use or release in accordance with this Section,
provided that Metavante may include Customer’s name in Metavante’s customer
list and may identify Customer as its customer in its sales presentations and
marketing materials without obtaining Customer’s prior consent.  Notwithstanding the foregoing, at Metavante’s
request, Customer agrees to issue a joint press release prepared by Metavante
to announce the relationship established by the parties hereunder.  Customer agrees that such press release shall
be deemed approved by Customer in the event that, within five (5) Business
Days of receiving Metavante’s proposed press release, Customer does not provide
written notice to Metavante describing in reasonable detail Customer’s
objections to the press release.  All
other media releases, public announcements, and public disclosures by either
party relating to this Agreement or the subject matter of this Agreement (each,
a “Disclosure”), including promotional or marketing material, but not including
(a) announcements intended solely for internal distribution, or (b) disclosures
to the extent required to meet legal or regulatory requirements beyond the
reasonable control of the disclosing party, shall be subject to review and
approval, which approval shall not be unreasonably withheld, by the other party
prior to release.  Such approval shall be
deemed to be given if a party does not object to a proposed Disclosure within
five (5) Business Days of receiving same. 
Disputes regarding the reasonableness of objections to the joint press
release or any Disclosures shall be subject to the Dispute Resolution
Procedures of Section 11.1 above.

 

13

 

REGULATORY COMPLIANCE AND ASSURANCES

 

14.1.       Legal Requirements.

 

Customer
shall be solely responsible for monitoring and interpreting (and for complying
with, to the extent such compliance requires no action by Metavante) the Legal
Requirements.  Based on Customer’s
instructions, Metavante shall select the processing parameter settings,
features, and options (collectively, the “Parameters”) within Metavante’s
system that will apply to Customer. 
Customer shall be responsible for determining that such selections are
consistent with the Legal Requirements and with the terms and conditions of any
agreements between Customer and its clients. 
In making such determinations, Customer may rely upon the written
descriptions of such Parameters contained in the User Manuals.  Metavante shall perform system processing in
accordance with the Parameters.

 

Subject to the foregoing, Metavante shall perform an on-going review of
federal laws, rules, and regulations. 
Metavante shall maintain the features and functions set forth in the
User Manuals for each of the Services in accordance with all changes in federal
laws, rules, and regulations applicable to such features and functions, in a
non-custom environment.  For any new
federal laws, rules, and regulations, Metavante will perform a business review,
with input from Metavante’s customers and user groups.  If Metavante elects to support a new federal
law, rule, or regulation through changes to the Metavante Software, Metavante
shall develop and implement modifications to the Services to enable Customer to
comply with such new federal laws, rules, and regulations.

 

In any event, Metavante shall work with Customer in developing and
implementing a suitable procedure or direction to enable Customer to comply
with federal and state laws, rules, and regulations applicable to the Services
being provided by Metavante to Customer, including in those instances when
Metavante has elected to, but it is not commercially practicable to, modify the
Metavante Software prior to the regulatory deadline for compliance.

 

14.2.       Regulatory Assurances. Metavante
and Customer acknowledge and agree that the performance of these Services will
be subject to regulation and examination by Customer’s regulatory agencies to
the same extent as if such Services were being performed by Customer.  Upon request, Metavante agrees to provide any
appropriate assurances to such agency and agrees to subject itself to any
required examination or regulation. Customer agrees to reimburse Metavante for
reasonable costs actually incurred due to any such examination or regulation
that is performed primarily for the purpose of examining Services used by
Customer.

 

Notice
Requirements.  Customer shall be
responsible for complying with all regulatory notice provisions to any
applicable governmental agency, which shall include providing timely and
adequate notice to Federal Regulators as of the Effective Date of this
Agreement, identifying those records to which this Agreement shall apply and
the location at which such Services are to be performed.

 

Examination
of Records.  The parties agree that the
records maintained and produced under this Agreement shall, at all times, be
available at the Operations Center for examination and audit by governmental
agencies having jurisdiction over the Customer’s business, including any
Federal Regulator. The Director of Examinations of any Federal Regulator or his
or her designated representative shall have the right to ask for and to receive
directly from Metavante any reports, summaries, or information contained in or
derived from data in the possession of Metavante related to the Customer.  Metavante shall notify Customer as soon as
reasonably possible of any formal request by any authorized governmental agency
to examine Customer’s records maintained by Metavante, if Metavante is
permitted to make such a disclosure to Customer under applicable law or
regulations.  Customer agrees that
Metavante is authorized to provide all such described records when formally
required to do so by a Federal Regulator.

 

Audits.  Metavante shall cause a Third Party review of
its operations and related internal controls to be conducted annually by its
independent auditors.  Metavante shall
provide to Customer, upon written request, one copy of the audit report
resulting from such review.

 

14.3.       IRS Filing.  Customer represents it has complied with all
laws, regulations, procedures, and requirements in attempting to secure correct
tax identification numbers (TINs) for Customer’s payees and customers and
agrees to attest to this compliance by an affidavit provided annually.

 

DISASTER RECOVERY

 

15.1.       Services Continuity Plan.  Throughout the Term of the Agreement, Metavante
shall maintain a Services Continuity Plan (the “Plan”) in compliance with
applicable regulatory requirements. 
Review and acceptance of the Plan, as may be required by any applicable
regulatory agency, shall be the responsibility of Customer.  Metavante shall cooperate with Customer in
conducting such reviews as such regulatory agency may, from time to time,
reasonably request.  A detailed 

 

14

 

Executive Summary of the Plan has
been provided to Customer.  Updates to
the Plan shall be provided to Customer without charge.

 

15.2.       Relocation.  If appropriate, Metavante shall relocate all
affected Services to an alternate disaster recovery site as expeditiously as
possible after declaration of a Disaster, and shall coordinate with Customer
all requisite telecommunications modifications necessary to achieve full
connectivity to the disaster recovery site, in material compliance with all
regulatory requirements.  “Disaster”
shall have the meaning set forth in the Plan.

 

15.3.       Resumption of Services.  The Plan provides that, in the event of a
Disaster, Metavante will be able to resume the Services in accordance therewith
within the time periods specified in the Plan. 
In the event Metavante is unable to resume the Services to Customer
within the time periods specified in the Plan, Customer shall have the right to
terminate this Agreement without payment of the Termination Fee upon written
notice to Metavante delivered within forty-five (45) days after declaration of
such Disaster.

 

15.4.       Annual Test.  Metavante shall test its Plan by conducting
one (1) test annually and shall provide Customer with a description of the
test results in accordance with applicable laws and regulations.

 

MISCELLANEOUS PROVISIONS

 

16.1.       Equipment and Network. Customer
shall obtain and maintain at its own expense its own data processing and
communications equipment as may be necessary or appropriate to facilitate the
proper use and receipt of the Services. 
Customer shall pay all installation, monthly, and other charges relating
to the installation and use of communications lines between Customer’s
datacenter and the Operations Center, as set forth in the Network
Schedule.  Metavante maintains and will
continue to maintain a network control center with diagnostic capability to
monitor reliability and availability of the communication lines described in
the Network Schedule, but Metavante shall not be responsible for the continued
availability or reliability of such communications lines.  Metavante agrees to provide services to
install, configure, and support the wide-area network to interconnect Customer
to the Operations Center as described in, and subject to the terms and
conditions of, the Network Schedule.

 

16.2.       Data Backup.  Customer shall maintain adequate records for
at least ten (10) Business Days, including backup on magnetic tape or
other electronic media where transactions are being transmitted to Metavante,
from which reconstruction of lost or damaged files or data can be made. Customer
assumes all responsibility and liability for any loss or damage resulting from
failure to maintain such records.

 

16.3.       Balancing and Controls.  Customer shall (a) on a daily basis,
review all input and output, controls, reports, and documentation, to ensure
the integrity of data processed by Metavante; and (b) on a daily basis,
check exception reports to verify that all file maintenance entries and
non-dollar transactions were correctly entered. 
Customer shall be responsible to notify Metavante immediately in the
event of any error so that Metavante may initiate timely remedial action to
correct any improperly processed data which these reviews disclose.  In the event of any error by Metavante in
processing any data or preparing any report or file, Metavante’s sole
responsibility, and Customer’s sole remedy, 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 Customer.

 

16.4.       Future Acquisitions.  Customer acknowledges that Metavante has
established the Fee Schedule(s) and enters into this Agreement on the
basis of Metavante’s understanding of the Customer’s current need for Services
and Customer’s anticipated future need for Services as a result of internally
generated expansion of its customer base. 
If the Customer expands its operations by acquiring Control of
additional financial institutions or if Customer experiences a Change in
Control, the following provisions shall apply:

 

Acquisition
of Additional Entities. 
If, after the Effective Date, Customer acquires Control of one or more
financial holding companies, banks, savings and loan associations, or other
financial institutions that are not currently Affiliates, Metavante agrees to
provide Services for such new Affiliates, and such Affiliates shall
automatically be included in the definition of “Customer”; provided that (i) the
conversion of each new Affiliate must be scheduled at a mutually agreeable time
(taking into account, among other things, the availability of Metavante
conversion resources) and must be completed before Metavante has any obligation
to provide Services to such new Affiliate; (ii) the Customer will be
liable for any and all Expenses in connection with the conversion of such new
Affiliate; and (iii) Customer shall pay conversion fees in an amount to be
mutually agreed upon with respect to each new Affiliate.

 

Change in
Control of Customer. 
If a Change in Control occurs with respect to Customer, Metavante agrees
to continue to provide Services under this Agreement; provided that (a) Metavante’s
obligation to provide Services shall be limited to the Entities comprising the
Customer prior to such Change in Control and (b) Metavante’s obligation to
provide Services immediately following such Change in Control shall be limited
in any and all circumstances to the number of accounts processed in the three (3) -month
period prior to such Change in Control occurring, plus twenty-five percent
(25%).

 

15

 

16.5.       Transmission of Data.  If the Services require transportation or
transmission of data between Metavante and Customer, the responsibility and
expense for transportation and transmission of, and the risk of loss for, data
and media transmitted between Metavante and Customer shall be borne by
Customer.  Data lost by Metavante
following receipt shall either be restored by Metavante from its backup media
or shall be reprocessed from Customer’s backup media at no additional charge to
Customer.

 

16.6.       Reliance on Data.  Metavante will perform the Services described
in this Agreement on the basis of information furnished by Customer.  Metavante shall be entitled to rely upon any
such data, information, directions, or instructions as provided by Customer
(whether given by letter, memorandum, telegram, cable, telex, telecopy
facsimile, computer terminal, e-mail, other “on line” system or similar means
of communication, or orally over the telephone or in person), and shall not be
responsible for any liability arising from Metavante’s performance of the
Services in accordance with Customer’s instructions.  Customer assumes exclusive responsibility for
the consequences of any instructions Customer may give Metavante, for Customer’s
failure to properly access the Services in the manner prescribed by Metavante,
and for Customer’s failure to supply accurate input information.   If any error results from incorrect input
supplied by Customer, Customer shall be responsible for discovering and
reporting such error and supplying the data necessary to correct such error to
Metavante for processing at the earliest possible time.

 

16.7.       Use of Services.  Customer agrees that, except as otherwise
permitted in this Agreement or in writing by Metavante, Customer will use the
Services only for its own internal business purposes to service its bona fide
customers and clients and will not sell or otherwise provide, directly or
indirectly, any of the Services or any portion thereof to any Third Party.  Customer agrees that Metavante may use all suggestions,
improvements, and comments regarding the Services that are furnished by
Customer to Metavante in connection with this Agreement, without accounting or
reservation.  Unless and except to the
extent that Metavante has agreed to provide customer support services for
Customer, Customer shall be responsible for handling all inquiries of its
customers relating to Services performed by Metavante, including inquiries
regarding credits or debits to a depositor’s account.  Metavante agrees to reasonably assist
Customer in responding to such inquiries by providing such information to
Customer as Metavante can reasonably provide.

 

16.8.       Financial Statements.  Metavante agrees to furnish to the Customer
copies of the then-current annual report for the Marshall & Ilsley
Corporation, within forty-five (45) days after such document is made publicly
available.

 

16.9.       Performance by Subcontractors.  Customer understands and agrees that the
actual performance of the Services may be made by Metavante, one or more Affiliates
of Metavante, or subcontractors of any of the foregoing Entities (collectively,
the “Eligible Providers”).  For purposes
of this Agreement, performance of the Services by any Eligible Provider shall
be deemed performance by Metavante itself. 
Metavante shall remain fully responsible for the performance or
non-performance of the Services by any Eligible Provider, to the same extent as
if Metavante itself performed or failed to perform such services.  Customer agrees to look solely to Metavante,
and not to any Eligible Provider, for satisfaction of any claims Customer may
have arising out of this Agreement or the performance or nonperformance of
Services.  However, in the event that
Customer contracts directly with a Third Party for any products or services,
Metavante shall have no liability to Customer for such Third Party’s products
or services, even if such products or services are necessary for Customer to
access or receive the Services hereunder.

 

16.10.     Solicitation.  Neither party shall solicit the employees of
the other party for employment during the Term of this Agreement, for any
reason.  The foregoing shall not preclude
either party from employing any such employee (a) who seeks employment
with the other party in response to any general advertisement or solicitation
that is not specifically directed towards employees of such party or (b) who
contacts the other party on his or her own initiative without any direct or
indirect solicitation by such party.

 

GENERAL

 

17.1.       Governing Law.  The validity, construction and interpretation
of this Agreement and the rights and duties of the parties hereto shall be
governed by the internal laws of the State of Wisconsin, excluding its
principles of conflict of laws.

 

17.2.       Venue and Jurisdiction.  In the event of litigation to enforce the
terms of this Agreement, the parties consent to venue in the exclusive
jurisdiction of the courts of Milwaukee County, Wisconsin, and the Federal
District Court for the Eastern District of Wisconsin.  The parties further consent to the
jurisdiction of any federal or state court located within a district which
encompasses assets of a party against which a judgment has been rendered,
either through arbitration or litigation, for the enforcement of such judgment
or award against such party or the assets of such party.

 

17.3.       Entire Agreement; Amendments.  This Agreement, together with the schedules
hereto, constitutes the entire agreement between Metavante and the Customer
with respect to the subject matter hereof. 
There are no restrictions, promises, warranties, covenants, or
undertakings other than those expressly set forth herein and therein.  This Agreement supersedes all prior
negotiations, agreements, and undertakings between the parties with respect to
such matter.  This Agreement, including
the schedules hereto, may be amended only by an instrument in writing executed
by the parties or their permitted assignees.

 

16

 

17.4.       Relationship of Parties.  The performance by Metavante of its duties
and obligations under this Agreement shall be that of an independent contractor
and nothing contained in this Agreement shall create or imply an agency
relationship between Customer and Metavante, nor shall this Agreement be deemed
to constitute a joint venture or partnership between Customer and Metavante.

 

17.5.       Assignment.  Neither this Agreement nor the rights or
obligations hereunder may be assigned by either party, by operation of law or
otherwise, without the prior written consent of the other party, which consent
shall not be unreasonably withheld, provided that (a) Metavante’s consent
need not be obtained in connection with the assignment of this Agreement
pursuant to a merger in which Customer is a party and as a result of which the
surviving Entity becomes an Affiliate of another bank holding company, bank,
savings and loan association or other financial institution, so long as the
provisions of all applicable Schedules are complied with; and (b) Metavante
may freely assign this Agreement (i) in connection with a merger,
corporate reorganization, or sale of all or substantially all of its assets,
stock, or securities, or (ii) to any Entity which is a successor to the
assets or the business of Metavante.

 

17.6.       Notices.  Except as otherwise specified in the
Agreement, all notices, requests, approvals, consents, and other communications
required or permitted under this Agreement shall be in writing and shall be
personally delivered or sent by (a) first-class U.S. mail, registered or
certified, return receipt requested, postage pre-paid; or (b) U.S. express
mail, or other, similar overnight courier service to the address specified
below.  Notices shall be deemed given on
the day actually received by the party to whom the notice is addressed.

 

	
  In the case of
  Customer:

  	
  Team
  Financial, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  For Billing Purposes:

  	
  Attn.:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attn.:

  
	
   

  	
   

  

 

	
  In the case of
  Metavante:

  	
  Metavante Corporation

  4900 West Brown Deer Road

  Milwaukee WI 53223

  Attn.: General Councel

  
	
   

  	
   

  
	
   

  	
  Legal Services Division

  
	
   

  	
   

  
	
  Copy to:

  	
   

  

 

17.7.       Waiver.  No delay or omission by either party to
exercise any right or power it has under this Agreement shall impair or be
construed as a waiver of such right or power. 
A waiver by any party of any breach or covenant shall not be construed
to be a waiver of any succeeding breach or any other covenant.  All waivers must be in writing and signed by
the party waiving its rights.

 

17.8.       Severability.  If any provision of this Agreement is held by
court or arbitrator of competent jurisdiction to be contrary to law, then the
remaining provisions of this Agreement will remain in full force and
effect.  Articles 5, 8, 10, 13, and 17
shall survive the expiration or earlier termination of this Agreement for any
reason.

 

17.9.       Attorneys’ Fees and Costs.  If any legal action is commenced in
connection with the enforcement of this Agreement or any instrument or
agreement required under this Agreement, the prevailing party shall be entitled
to costs, 

 

17

 

attorneys’ fees actually
incurred, and necessary disbursements incurred in connection with such action,
as determined by the court.

 

17.10.     No Third Party Beneficiaries.  Each party intends that this Agreement shall
not benefit, or create any right or cause of action in or on behalf of, any
person or entity other than the Customer and Metavante.

 

17.11.     Force Majeure.  Notwithstanding any provision contained in
this Agreement, neither party shall be liable to the other to the extent
fulfillment or performance if any terms or provisions of this Agreement is
delayed or prevented by revolution or other civil disorders; wars; acts of
enemies; strikes; lack of available resources from persons other than parties
to this Agreement; labor disputes; electrical equipment or availability
failure; fires; floods; acts of God; federal, state or municipal action;
statute; ordinance or regulation; or, without limiting the foregoing, any other
causes not within its control, and which by the exercise of reasonable
diligence it is unable to prevent, whether of the class of causes hereinbefore
enumerated or not.  This clause shall not
apply to the payment of any sums due under this Agreement by either party to
the other.

 

17.12.     Negotiated Agreement.  Metavante and Customer each acknowledge that
the limitations and exclusions contained in this Agreement have been the
subject of active and complete negotiation between the parties and represent
the parties’ voluntary agreement based upon the level of risk to Customer and
Metavante associated with their respective obligations under this Agreement and
the payments to be made to Metavante and the charges to be incurred by
Metavante pursuant to this Agreement. 
The parties agree that the terms and conditions of this Agreement shall
not be construed in favor of or against any party by reason of the extent to
which any party or its professional advisors participated in the preparation of
this document.

 

17.13.     Waiver of Jury Trial.  Each of Customer and Metavante hereby knowingly,
voluntarily and intentionally waives any and all rights it may have to a trial
by jury in respect of any litigation based on, or arising out of, under, or in
connection with, this Agreement or any course of conduct, course of dealing,
statements (whether verbal or written), or actions of Metavante or Customer,
regardless of the nature of the claim or form of action, contract or tort,
including negligence.

 

DEFINITIONS. 
The following terms shall have the meanings ascribed to them as follows:

 

“ACH” shall
mean automated clearing house services.

 

“Affiliate”
shall mean, with respect to a party, any Entity at any time Controlling,
Controlled by, or under common Control with such party.

 

“Agreement”
shall mean this master agreement and all schedules and exhibits attached
hereto, which are expressly incorporated, any future amendments thereto, and
any future schedules and exhibits added hereto by mutual agreement.

 

“Business
Days” shall be Mondays through Fridays except holidays recognized by the
Federal Reserve Board of Chicago.

 

“Change
in Control” shall mean any event or series of events by which (i) any
person or entity or group of persons or entities shall acquire Control of
another person or entity or (ii) in the case of a corporation, during any
period of twelve consecutive months commencing before or after the date hereof,
individuals who, at the beginning of such twelve-month period, were directors
of such corporation shall cease for any reason to constitute a majority of the
board of directors of such corporation.

 

“Confidential
Information” shall have the meaning set forth in Section 13.3.

 

“Consumer”
shall mean an individual who obtains a financial product or service from
Customer to be used primarily for personal, family, or household purposes and
who has a continuing relationship with Customer.

 

“Contract
Year” shall mean successive periods of twelve months, the first of which (being
slightly longer than twelve (12) months) shall commence on the Effective Date
and terminate on the last day of the month in which the first anniversary of
the Effective Date occurs.

 

“Control”
shall mean the direct or indirect ownership of over fifty percent (50%) of the
capital stock (or other ownership interest, if not a corporation) of any Entity
or the possession, directly or indirectly, of the power to direct the
management and policies of such Entity by ownership of voting securities, by
contract or otherwise.  “Controlling”
shall mean having Control of any Entity, and “Controlled” shall mean being the
subject of Control by another Entity.

 

“Conversion
Date” shall mean the date on which Conversion for Customer or a particular
Affiliate has been completed.

 

“Customer”
shall mean the Entity entering into this Agreement with Metavante and all
Affiliates of such Entity for whom Metavante agrees to provide Services under
this Agreement, as reflected on the first page of this Agreement or
amendments executed after the Effective Date.

 

18

 

“Customer
Data” means any and all data and information of any kind or nature submitted to
Metavante by Customer, or received by Metavante on behalf of Customer,
necessary for Metavante to provide the Services.

 

“Damages”
shall mean actual and verifiable monetary obligations incurred, or costs paid
which (i) would not have been incurred or paid but for a party’s action or
failure to act in breach of this Agreement, and (ii) are directly and
solely attributable to such breach, but excluding any and all consequential,
incidental, punitive and exemplary damages, and/or other damages expressly
excluded by the terms of this Agreement.

 

“Documentation”
shall mean Metavante’s standard user instructions relating to the Services,
including tutorials, on-screen help, and operating procedures, as provided to
Customer in written or electronic form.

 

“Effective
Date” shall mean the date so defined on the signature page of this
Agreement, or, if blank, the date executed by Metavante, as reflected in
Metavante’s records.

 

“Effective
Date of Termination” shall mean the last day on which Metavante provides the
Services to Customer (excluding any services relating to termination
assistance).

 

“Eligible
Provider” shall have the meaning as set forth in Section 16.9.

 

“Employment
Cost Index” shall mean the Employment Cost Index (not seasonally adjusted) as
promulgated by the United States Department of Labor’s Bureau of Labor
Statistics (or any successor index).

 

“Entity”
means an individual or a corporation, partnership, sole proprietorship, limited
liability company, joint venture, or other form of organization, and includes
the parties hereto.

 

“Estimated
Remaining Value” shall mean the number of calendar months remaining between the
Effective Date of Termination and the last day of the contracted-for Term,
multiplied by the average of the three (3) highest monthly fees (but in
any event no less than the Monthly Base Fee or other monthly minimums) payable
by Customer during the twelve (12) -month period prior to the event giving rise
to termination rights under this Agreement. 
In the event the Effective Date of Termination occurs prior to
expiration of the First Contract Year, the monthly fees used in calculating the
Estimated Remaining Value shall be the greater of (i) the estimated
monthly fees set forth in the Fee Schedule(s) and (ii) the average
monthly fees described in the preceding sentence.

 

“Expenses”
shall mean any and all reasonable and direct expenses paid by Metavante to
Third Parties in connection with Services provided to or on behalf of Customer
under this Agreement, including any postage, supplies, materials, travel and
lodging, and telecommunication fees, but not payments by Metavante to Eligible
Providers.

 

“Federal
Regulator” shall mean the Chief Examiner of the Federal Home Loan Bank Board,
the Office of Thrift Supervision, the Office of the Comptroller of the
Currency, the Federal Deposit Insurance Corporation, the Federal Reserve Board,
or their successors, as applicable.

 

“Fee
Schedule” shall mean the portions of schedules containing fees and charges for
services rendered to Customer under this Agreement.

 

“Initial
Services” shall mean all Services requested by Customer from Metavante under
this as of the Effective Date and set forth in the schedules attached hereto.

 

“Initial
Term” shall mean the period set forth on the first page of this Agreement.

 

“Legal
Requirements” shall mean the federal and state laws, rules, and regulations
pertaining to Customer’s business.

 

“Metavante
Proprietary Materials and Information” shall mean the Metavante Software and
all source code, object code, documentation (whether electronic, printed,
written, or otherwise), working papers, non-customer data, programs, diagrams,
models, drawings, flow charts, and research (whether in tangible or intangible
form or in written or machine-readable form), and all techniques, processes,
inventions, knowledge, know-how, trade secrets (whether in tangible or
intangible form or in written or machine-readable form), developed by Metavante
prior to or during the Term of this Agreement, and such other information
relating to Metavante or the Metavante Software that Metavante identifies to
Customer as proprietary or confidential at the time of disclosure.

 

“Metavante
Software” shall mean the software owned by Metavante and used to provide the
Services.

 

“Monthly
Base Fee” shall mean the minimum monthly fees payable by Customer to Metavante
as specifically set forth in the Services and Charges Schedule.

 

“Network”
shall mean a shared system operating under a common name through which member
financial institutions are able to authorize, route, process and settle
transactions (e.g., MasterCard and Visa).

 

19

 

“New
Services” shall mean any services that are not included in the Initial Services
but which, upon mutual agreement of the parties, are added to this
Agreement.  Upon such addition, New
Services shall be included in the term “Services.”

 

“Performance
Warranty” shall have the meaning set forth in Section 6.1.

 

“Plan”
shall have the meaning set forth in Section 15.1.

 

“Privacy
Regulations” shall mean the regulations promulgated under Section 504 of
the Gramm-Leach-Bliley Act, Pub. L. 106-102, as such regulations may be
amended from time to time.

 

“Professional
Services” shall mean services provided by Metavante for Conversion, training,
and consulting, and services provided by Metavante to review or implement New
Services or enhancements to existing Services.

 

“Sensitive
Customer Information” shall mean Customer Data with respect to a Consumer that
is (a) such Consumer’s name, address or telephone number, in conjunction
with such Consumer’s Social Security number, account number, credit or debit
card number, or a personal identification number or password that would permit
access to such Consumer’s account or (b) any combination of components of
information relating to such Consumer that would allow a person to log onto or
access such Consumer’s account, such as user name and  password or password and account number.

 

“Services”
shall mean the services, functions, and responsibilities described in this
Agreement to be performed by Metavante during the Term and shall include New
Services that are agreed to by the parties in writing.

 

“Service
Levels” shall mean those service levels set forth in the Service Level
Schedule.

 

“Taxes”
shall mean any manufacturers, sales, use, gross receipts, excise, personal
property, or similar tax or duty assessed by any governmental or
quasi-governmental authority upon or as a result of the execution or
performance of any service pursuant to this Agreement or materials furnished
with respect to this Agreement, except any income, franchise, privilege, or
similar tax on or measured by Metavante’s net income, capital stock, or net
worth.

 

“Term”
shall mean the Initial Term and any extension thereof, unless this Agreement is
earlier terminated in accordance with its provisions.

 

“Termination
Fee” shall have the meaning set forth on the Termination Fee Schedule.

 

“Third
Party” shall mean any Entity other than the parties or any Affiliates of the
parties.

 

“Tier 1
Support” shall mean the provision of customer service and technical support to
end users.  The Metavante customer care
agents provide assistance with the following, but not limited to payment
verification, payee set up, opening service requests for payment research, user
education on how to use the Metavante products, technical support with using
and accessing the products, and technical support for some browser issues.

 

“Tier 2
Support” shall mean the provision of support to end users for consumer
initiated payment issues such as payment not posted, stop payment, late fees,
and payment posted for incorrect amount. 
The Metavante payment research team acts as an advocate to the payee on
behalf of the end-user to research and resolve the payment issue in a timely
manner.

 

“User
Manuals” shall mean the documentation provided by Metavante to Customer which
describes the features and functionalities of the Services, as modified and
updated by the customer bulletins distributed by Metavante from time to time.

 

“Visa”
shall mean VISA U.S.A., Inc.

 

20

 

SERVICES AND CHARGES SCHEDULE

 

THE
APPLICATIONS/SERVICES LISTED IN THIS SCHEDULE MAY POSSESS ADDITIONAL
FEATURES AND FUNCTIONS WHICH HAVE NOT BEEN REQUESTED BY CUSTOMER AS PART OF
THE INITIAL SERVICES.  DURING THE TERM OF
THIS AGREEMENT, FUTURE PRODUCT DEVELOPMENT WILL LIKELY CREATE ADDITIONAL
FEATURES AND FUNCTIONS NOT CONTEMPLATED BY THIS AGREEMENT.  UNLESS SPECIFICALLY NEGOTIATED BY THE
PARTIES, THE DISCOUNTS  (IF ANY) SPECIFIED
IN THIS SCHEDULE SHALL NOT APPLY TO
SUCH ADDITIONAL OR FUTURE FEATURES/FUNCTIONS

 

FEES

 

The following pricing shall be effective on the
first day of the month following the execution of this Amendment.  All fees are monthly unless stated otherwise.

 

	
  Account
  Processing

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monthly
  Processing* (see note at bottom of schedule)

  	
   

  	
  $      31,900

  	
   

  	
   

  
	
  Accounts
  on the system

  	
   

  	
   

  	
   

  	
   

  
	
  1 -
  70,000

  	
   

  	
  included

  	
   

  	
   

  
	
  70,001
  - 95,000

  	
   

  	
  0.48

  	
   

  	
  per open/closed dep
  acct & open/paid loan note

  
	
  >
  95,000

  	
   

  	
  0.47

  	
   

  	
  per open/closed dep
  acct & open/paid loan note

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business
  Analytics

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business
  Intelligence Center

  	
   

  	
   

  	
   

  	
   

  
	
  Report
  Writing Assistance - 1 day remote

  	
   

  	
  waived

  	
   

  	
   

  
	
  BIC
  Records

  	
   

  	
  0.032

  	
   

  	
  per record#

  
	
  Total
  Exposure Data Mart

  	
   

  	
  330.00

  	
   

  	
  per bank ID

  
	
  Advanced
  Viewer

  	
   

  	
  170.00

  	
   

  	
  per user

  
	
  Casual
  Report Viewers

  	
   

  	
   

  	
   

  	
   

  
	
  1 -
  10

  	
   

  	
  waived

  	
   

  	
   

  
	
  >
  10

  	
   

  	
  10.00

  	
   

  	
  per viewer

  

 

21

 

	
  Asset/Liability
  extract

  	
   

  	
  150.00

  	
   

  	
  per bank ID (Team Fin.
  Bank and Team Bank N. A.)

  
	
  Asset/Liability
  extract

  	
   

  	
  75.00

  	
   

  	
  per bank ID (Colorado
  Springs NB)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  #Records include AAS
  accounts, deposit origination sales sessions, CIS customers, deposit
  accounts, EFT cardholders, consumer e-banking accounts, loan notes, GL
  accounts and account analysis accounts.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales
  and Service

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TellerInsight

  	
   

  	
  24.00

  	
   

  	
  per workstation

  
	
  BankerInsight
  (temp Service)

  	
   

  	
  47.00

  	
   

  	
  per workstation

  
	
  Sales
  session/active history (temp Service)

  	
   

  	
  290.00

  	
   

  	
  per client

  
	
  Metavante
  Insight Deposit Origination*

  	
   

  	
  4,900.00

  	
   

  	
  per client

  
	
  1 –
  105 users

  	
   

  	
  included

  	
   

  	
   

  
	
  >
  105 users

  	
   

  	
  75.00

  	
   

  	
  per user

  

	
  *
  Pending conversion scheduled for April, 2008

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electronic
  Banking

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consumer
  Ebanking Users

  	
   

  	
  1.70

  	
   

  	
  per user

  
	
  Customer
  Care Tier 1 (24 x 7)

  	
   

  	
  2.23

  	
   

  	
  per user

  
	
  Shared
  Voice Response Unit

  	
   

  	
  0.024

  	
   

  	
  per transaction

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commercial
  Treasury Solutions

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Client
  Billing Maintenance

  	
   

  	
  150.00

  	
   

  	
  per bank ID

  
	
  BIB
  Standard Service (1-3 accounts)

  	
   

  	
  9.25

  	
   

  	
  per user

  
	
  BIB
  Standard Service with Spt (1-5 accounts)

  	
   

  	
  18.25

  	
   

  	
  per user

  
	
  Additional
  Accounts

  	
   

  	
  3.00

  	
   

  	
  per account

  

 

22

 

	
  State
  / Federal payments

  	
   

  	
  0.15

  	
   

  	
  per payment

  
	
  Bill
  Payment

  	
   

  	
  0.33

  	
   

  	
  per transaction

  
	
  ACH
  Payments and Collections

  	
   

  	
  0.15

  	
   

  	
  per payment/collection

  
	
  Wire
  Transfer

  	
   

  	
  1.00

  	
   

  	
  per wire

  
	
  Bill
  Payment NSF/Stop Payment

  	
   

  	
  15.00

  	
   

  	
  per stop/NSF

  
	
  ACH
  Payments and Collections Module

  	
   

  	
  5.00

  	
   

  	
  per user

  
	
  EDI
  Report Processing

  	
   

  	
  3.70

  	
   

  	
  per report

  
	
  EDI
  Account Processing

  	
   

  	
  24.70

  	
   

  	
  per account

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  End of
  Year Processing

  	
   

  	
  announced each 4th
  Quarter

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ATM
  and Gateway Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EFT
  Network Access (All)

  	
   

  	
  450.00

  	
   

  	
  per client

  
	
  ATM
  Terminal Support

  	
   

  	
  30.00

  	
   

  	
  per terminal

  
	
  Dial
  ATM Terminal Support

  	
   

  	
  30.00

  	
   

  	
  per terminal

  
	
  Dial
  ATM Telecomm

  	
   

  	
  0.06

  	
   

  	
  per transaction

  
	
  TNS
  Transexpress Modem Maintenance

  	
   

  	
  10.00

  	
   

  	
  per modem

  
	
  Switch
  / Route - Non NYCE

  	
   

  	
  0.019

  	
   

  	
  per transaction

  
	
  Switch
  / Route - NYCE

  	
   

  	
  waived

  	
   

  	
   

  
	
  Remote
  key distribution

  	
   

  	
  50.00

  	
   

  	
  per item

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Debit
  and Prepaid Processing

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Card
  Management

  	
   

  	
  waived

  	
   

  	
   

  
	
  Recovered
  / Returned Card

  	
   

  	
  12.00

  	
   

  	
  per card

  
	
  Chargeback
  Processing

  	
   

  	
  15.00

  	
   

  	
  per card

  

 

23

 

	
  PIN
  Transactions

  	
   

  	
  0.04

  	
   

  	
  per transaction

  
	
  Signature
  Authorized Transactions

  	
   

  	
  0.04

  	
   

  	
  per transaction

  
	
  Signature
  Settled Transactions

  	
   

  	
  0.04

  	
   

  	
  per transaction

  
	
  Visa
  / Mastercard Accounts

  	
   

  	
  0.03

  	
   

  	
  per account

  
	
  ATM
  Card Accounts

  	
   

  	
  0.03

  	
   

  	
  per account

  
	
  PRM
  Authorization Scoring

  	
   

  	
  0.007

  	
   

  	
  per transaction

  
	
  Web
  Based Adjustments

  	
   

  	
  10.00

  	
   

  	
  per adjustment

  
	
  Debit
  Lost/Stolen Reports

  	
   

  	
  8.25

  	
   

  	
  per report

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Card
  Personalization - Custom

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Card
  Production - Debit Cards

  	
   

  	
  0.89

  	
   

  	
  per card

  
	
  Card
  Production - ATM Cards

  	
   

  	
  0.89

  	
   

  	
  per card

  
	
  PIN
  Mailers

  	
   

  	
  0.18

  	
   

  	
  per PIN mailer

  
	
  Standard
  Card Carrier - ATM/Debit

  	
   

  	
  0.157

  	
   

  	
  per card carrier

  
	
  Card
  Production Setup - ATM

  	
   

  	
  16.75

  	
   

  	
  per setup

  
	
  Card
  Production Setup - Secured Cards

  	
   

  	
  7.00

  	
   

  	
  per setup

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Card
  Personalization - Emergency Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Emergency
  Cards

  	
   

  	
  25.00

  	
   

  	
  per card

  
	
  Expeditied
  Cards

  	
   

  	
  20.00

  	
   

  	
  per card

  
	
  Pull &
  Destroy

  	
   

  	
  10.00

  	
   

  	
  per card

  
	
  Pull &
  Re-Address

  	
   

  	
  15.00

  	
   

  	
  per card

  
	
  Pull &
  Overnight

  	
   

  	
  15.00

  	
   

  	
  per card

  
	
  Emergency
  PIN Issue

  	
   

  	
  10.00

  	
   

  	
  per PIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Card
  Personalization - Freight

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fedex
  Envelope

  	
   

  	
  25.00

  	
   

  	
  per envelope

  

 

24

 

	
  Epayment
  Solutions

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bill
  Pay Users

  	
   

  	
  1.39

  	
   

  	
  per user

  
	
  Bill
  Payments

  	
   

  	
  0.39

  	
   

  	
  per transaction

  
	
  Return
  Items / Stop Payments

  	
   

  	
  15.00

  	
   

  	
  per return item / stop
  payment

  
	
  Bill
  Payment Collection Items

  	
   

  	
  actual

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACH

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NACHA
  Transmission Transactions

  	
   

  	
  0.039

  	
   

  	
  per transaction

  
	
  NACH
  File Transmissions

  	
   

  	
  8.00

  	
   

  	
  per transmission

  
	
  ACH
  Origination Loan System

  	
   

  	
  0.086

  	
   

  	
  per transaction

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Materials

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIB
  Information Kits

  	
   

  	
  10.00

  	
   

  	
  per kit

  
	
  EFT
  Check Photocopy

  	
   

  	
  2.00

  	
   

  	
  per copy

  
	
  EFT
  Envelopes

  	
   

  	
  0.024

  	
   

  	
  per envelope

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Third
  Party Expenses

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Visa
  Processing Guarantee Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Visa
  Checkcard Compliance Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Visa
  CC Comp/Proc Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Mail/Postage
  1 Card Acct Issue

  	
   

  	
  0.41

  	
   

  	
  per item (subject to
  change per postal rate increases)

  
	
  Mail/Postage
  2 Card Acct Issue

  	
   

  	
  0.41

  	
   

  	
  per item (subject to
  change per postal rate increases)

  
	
  Postage
  - PIN Mailers

  	
   

  	
  0.41

  	
   

  	
  per item (subject to
  change per postal rate increases)

  

 

25

 

	
  Visa
  Key Merchant Incentive

  	
   

  	
  actual

  	
   

  	
   

  
	
  Visa
  Variable Access Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  MC/CIR
  ACQ Cross Border Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  MC/CIR
  ISS Cross Border Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Visanet
  File Trans Pass Through

  	
   

  	
  actual

  	
   

  	
   

  
	
  Cirrus
  Brand Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Cirrus
  Pass Through Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Star
  Pass Through Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Plus
  Royalty Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Plus
  Sponsorship Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Cirrus
  ATM Switch Fee

  	
   

  	
  actual

  	
   

  	
   

  
	
  Regular
  Mail

  	
   

  	
  actual

  	
   

  	
   

  
	
  UPS

  	
   

  	
  actual

  	
   

  	
   

  
	
  All
  other

  	
   

  	
  actual

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consulting
  and Professional Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BankerInsight
  – Bronze Administrator (temp Service)

  	
   

  	
  428.45

  	
   

  	
  Per client

  
	
  CIS
  Clean Up Implementation

  	
   

  	
  waived

  	
   

  	
   

  
	
  CIS
  Householding Setup (2 banks)

  	
   

  	
  waived

  	
   

  	
   

  
	
  Exceptions
  Desktop Setup (2 banks)

  	
   

  	
  waived

  	
   

  	
   

  
	
  Business
  Intelligence Center Report 

  	
   

  	
   

  	
   

  	
   

  
	
  Writing
  Assistance 1 day remote

  	
   

  	
  waived

  	
   

  	
   

  
	
  Consulting
  and Training – up to $250,000.00

  	
   

  	
  waived

  	
   

  	
   

  

 

To be used at
Customer’s discretion between the Effective Date and March 31, 2011 at the
following rates: Consulting:  $225.00 per
hour; Training:  $150.00 per hour.

 

All travel and out
of pockets expenses are not included in the allowance, and are billable to the
client. Travel and out of pocket expense management – Metavante will take the
following actions to ensure

 

26

 

that all billings
back to client for these expenses are reasonable and based on mutual
understanding:

 

·            Prior to making initial travel
reservations, Metavante will review with client their recommendations for
hotels and other services Metavante employees can use to leverage corporate or
discount relationships (provided the hotels are located in safe
neighborhoods).  Note: This will be done
once or as needed for different projects based on mutual agreement.

 

·            Metavante will share relevant
internal travel policies so client can understand employee limitations.

 

·            Metavante will bill for travel
expenses on a periodic basis so client can review costs prior to completion of
long term projects.

 

·            Metavante is also willing to set a
dollar threshold that would trigger a review with the client.  This may be appropriate for long term
projects requiring multiple staff, and can be evaluated on a project by project
basis.

 

The following training
time will be counted against the allowance:

 

Time spent by MVNT
Trainers onsite at Team Financial

 

Time spent by MVNT
Trainers preparing customized training

 

Time spent by Team
Financial employees training at Metavante locations

 

	
  Optional
  Solutions Pricing:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Relationship
  Profitability

  	
   

  	
   

  	
   

  	
   

  
	
  Monthly
  Processing

  	
   

  	
  0.02

  	
   

  	
  per open deposit
  account/loan note

  
	
  Implementation

  	
   

  	
  12,000.00

  	
   

  	
  per client

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business Analytics

  	
   

  	
   

  	
   

  	
   

  
	
  Marketing
  Solution Suite

  	
   

  	
  2,500.00

  	
   

  	
  per client

  
	
  Implementation
  (using standard BIC extracts)

  	
   

  	
  25,000.00

  	
   

  	
  per client

  

 

27

 

	
  Electronic Banking

  	
   

  	
   

  	
   

  	
   

  
	
  Electronic
  Statements

  	
   

  	
   

  	
   

  	
   

  
	
  With
  check access

  	
   

  	
  0.17

  	
   

  	
  per statement

  
	
  Without
  check access

  	
   

  	
  0.15

  	
   

  	
  per statement

  
	
  Implementation

  	
   

  	
  waived

  	
   

  	
  per client

  

 

Note: pricing for optional solutions valid for 18
months from contract date.

 

Other
Pricing Terms

 

1.   A monthly processing credit of $13,000.00
will be applied to the invoice.

 

2.   New Third Party Application Integration
Pricing (Connectware) integration to third party applications.  The prices would be determined after a review
of the specific integration opportunities with Team Financial.  Our intent is to have a 2 tiered approach:

 

a. Fixed price bid
for applications with a low or medium range of transaction volume.

 

b. Specific quote
for applications that drive a significant volume of transactions and processing
time.

 

3.   Replacement Product Pricing Framework: If
Customer would be required to upgrade to a Metavante offered replacement
solution during the term of the relationship, Metavante will credit fees paid
for the implementation of the original offering against any new Metavante
one-time fees associated with the replacement solution.

 

4.  The following professional services rate
applies to activities surrounding conversions as well as mergers &
acquisitions:

40%
Discount from standard rate in effect (current standard rate is $160 per hour)

 

5.   Metavante is offering the establishment of
mutually agreed upon semi-annual reviews, funded jointly by Metavante and
Customer, to review effectiveness and efficiency of Customer related to their
usage of Metavante technology, process improvement, or other areas of focus for
Customer.  These are intended to be
engagements of a limited scope and

 

28

 

timeframe,
the outcome of which would be to increase our respective understanding of the
processes in place at Customer’s institution.

 

6.   Relationship Pricing Framework: Future
product proposals will be formally reviewed by Metavante’s Enterprise Pricing
and Relationship Management Team, including executive management
representation, to ensure market competitiveness, taking into account the
overall Customer relationship as well as the resulting value to Customer and Metavante.

 

7.   Continuing Relationship Activities:
Metavante is committed to participate in and provide facilities for an annual
Business and Strategic Review to allow for the exchange of information at an
executive and senior management level.

 

8.    If client elects to use an alternate
General Ledger solution, the monthly base fee would be reduced by $2,500 and a
$500 monthly interface fee would apply.

 

9.               Each
January 1 prices will increase by 3%, beginning January 1, 2009.  In the event Customer’s invoice increases
greater than 10% in a given calendar year excluding New Services and Network
Services, the annual increase in the following year will be waived.

 

10.  Pass through and third party fees are not
subject to discount.

 

11.  Customer will be placed on Metavante’s
simplified invoice (available in electronic format only).

 

12.  Upon execution of the Agreement, the
consulting engagement and new product implementation will commence.

 

13.  Metavante will commit a dedicated Network
support staff, (project coordinator and service manager), to meet on a regular
basis with Customer staff and, at a minimum, to hold quarterly teleconferences
with appropriate personnel to review WAN performance. Customer will determine
the frequency and location of such meetings.  One-time,
annually, Metavante will fund Customer’s travel to Metavante for an on-site
meeting.

 

14.  Metavante EFD unit pricing will not change if
Customer elects to join the Allpoint Network.

 

29

 

15.  Relationship Profitability Product –It is the
intent of Metavante to work with Customer (utilizing the consulting hours noted
in this document) to assist in the development of their strategy surrounding
customer and relationship profitability functionality at the teller/point of
customer contact.  Metavante further
agrees to perform enhancements to the Relationship Profitability Product at no
charge to Customer subject to a mutually agreed upon statement of work to be
executed by the parties.  This assumes
Customer will use the Metavante Relationship Profitability product, which we
have offered to implement for $12,000. 
If Customer would be utilizing a third party for the Relationship
Profitability Service, the implementation charge and monthly pricing for this
product would no longer be applicable. 
In such case, Metavante would not have any future development commitment
as it relates to Customer’s third party profitability system.

 

16.  New terms are effective December 1,
2007.

 

17.  Metavante will move Asset Liability Reports
to BIC at no charge to Customer.

 

18.  Metavante will deploy appropriate measure
within 45 days of the contract Effective Date to determine the cause of the
issues Customer is having with the TREEV Reports System.  If it is determined that Metavante is
responsible, the correction of the issues will be at no cost to Customer.

 

19.  Metavante standard network installation cost
will be capped at $900 per location for any new branch additions.  Customer may contribute effort and resources
to the process to reduce this cost, based upon collaborative discussions with
Metavante.

 

20.  Metavante waives the standard ATM load
development fee of $250 per load.  Normal
charges apply in the event of a merger or acquisition.

 

21.  Metavante waives the standard ATM setup fee
of $200 per terminal associated with organic growth.  Normal charges apply in the event of a merger
or acquisition.  Third party and pass
through costs still apply.

 

22.  Metavante will convert the “Right to Cure”
notice into Laserform at no cost to Customer.

 

23.  The following Services that Customer used to
pay separately for are included in this argument at no charge:  PRM Cardholder account fee, ATM Surcharging
Terminal Support, and Business Intelligent Center Transaction Fees.

 

24.  The IP telephony management fee of $900 will
be credited upon implementation of both the Cyota Phishing and Pharming
Solution and Router Consolidation.

 

30

 

25.  The implementation charge to upgrade the current
branch network circuits to full T-1’s will be waived ($15,300).  (Refer to page 56 SNS Total
Solution  - One Time Network
Implementation Charge)

 

31

 

*Services included in the monthly
processing fee:

 

Account Processing

 

Deposit and loan
account/transaction processing

 

CIS accounts

 

Third Party CIS
accounts and updates

 

GL detail accounts

 

Additional Services

 

Report creation

 

Collections

 

Safe Box

 

M&I Bank
Account View

 

Account Number
Generation

 

Infrastructure

 

Metavante Insight
Customer Service

 

Platinum Customer
Care

 

Compliance Services

 

Bank Match

 

Suspicious
Tracking -  Bank

 

Suspicious
Tracking -  TIN

 

OFAC     Full-file Comparision

 

OFAC Daily Comparision

 

32

 

Commercial Treasury
Services

 

Account Analysis

 

ACH

 

ACH Receiving
Transactions

 

Online    Returns Processing

 

33

 

WEALTH
MANAGEMENT TECHNOLOGY SERVICES

 

Services
Included in the Structured Per Account Charges which are listed on Exhibit D2
attached hereto.

 

THE
APPLICATIONS/SERVICES LISTED IN THIS EXHIBIT MAY POSSESS ADDITIONAL
FEATURES AND FUNCTIONS WHICH HAVE NOT BEEN REQUESTED BY CUSTOMER AS PART OF
THE INITIAL SERVICES.  DURING THE TERM OF
THIS AGREEMENT, FUTURE PRODUCT DEVELOPMENT WILL LIKELY CREATE ADDITIONAL
FEATURES AND FUNCTIONS NOT CONTEMPLATED BY THIS AGREEMENT.  UNLESS SPECIFICALLY NEGOTIATED BY THE
PARTIES, THE DISCOUNTS (IF ANY) SPECIFIED IN THIS EXHIBIT SHALL NOT APPLY TO SUCH ADDITIONAL OR FUTURE FEATURES/FUNCTIONS.

 

TrustDeskTM Licenses and Maintenance

 

TrustReport TMOngoing Usage

 

Metavante Portfolio Online

 

InvestDesk

 

Annual Review Suite Usage

 

Trust System Online History Retention of 36 months or
less

 

Investment Review Retention of 13 months or less

 

Web based statements for 13 months or less

 

Virtual Training Annual License

 

Accruals, Process and Report Daily

 

Trust System Report Production

 

5500 Reporting

 

1099 Tax Tape Production and Substitute Reporting

 

DTC IID Confirms/Affirms/Settlements

 

ACM / Demand Note Subaccounting

 

“As Of” Report of Account Assets

 

Automated Trading and Trade Order Execution System

 

Complete Common Trust Fund Capabilities

 

Comprehensive Employee Benefit Reporting

 

Retirement Distribution Management System (RDMS)

 

Fee System

 

34

 

Mutual Fund Automation (including settlement,
applicable rate interfaces, and asset allocation modeling)

 

Multibank, Multistate, Multibranch Processing

 

Report Writer System with File Upload/Download
Features – Overnight/On Demand

 

Security Master File Processing

 

Statement and Investment Review Processing Online

 

Trade Date Reporting

 

Previous Period Information on Statements

 

New and Lost Business Reporting (three-month
retention)

 

Trust System Maintenance

 

TrustExchange interfaces are included.  Transmission fees apply.

 

35

 

WEALTH
MANAGEMENT TECHNOLOGY SERVICES

 

Services NOT included in the structured per account charges.  Fees for these services are detailed in the

published Metavante Wealth Management Price Schedule.

 

Personal Cash Management (PCM) Usage

 

ReturnTrackTM

 

Strong Authentication

 

Securities Pricing and Factor Service

 

Xcitek Corporate Action Notification

 

VMS Mutual Fund Daily Rates

 

VMS Ex/Record Date Rate Interface

 

Moody’s Ratings

 

Xcitek Municipal Bond Notification

 

Electronic Filing of Quarterly Tax Estimates (via EFTPS)

 

Web based Statements beyond 13 Months

 

Extended Transaction History Retention beyond 36 Months

 

Extended Investment Review Retention beyond 13 Months

 

ACH Usage

 

Metavante Loan system Interface Usage

 

DayVest

 

Transmissions Handling

 

StarView

 

Set-Up of New Terminals/Printers

 

Network Management Fees – Based on L.U. Defined

 

·                  LU Charges

·                  Network Change Requests

·                  Network Implementation

·                  Client Participation in Disaster
Testing

 

Tape Handling

 

Microfiche

 

36

 

Consulting Services

 

Custom Programming

 

Third Party/Client Report Printing

 

Courier Costs

 

Form Costs

 

Testing of Primary Circuit Dial Backup Recovery

 

Deconversion Charges

 

·      Deconversion
Reclamation Fee

·      Deconversion
Tapes Provided in Metavante Format

·      Post-deconversion
On-line Access

 

Metavante Workshops

 

Annual Metavante User Documentation Updates

 

Annual Metavante Procedures Updates

 

Additional Copies of Metavante User Documentation

 

37

 

EXHIBIT
D2

WEALTH MANAGEMENT TECHNOLOGY SERVICES

 

FEE
SCHEDULE

 

Recurring Fees

 

Metavante is offering the Customer a “structured price”
in determining their annual charge.

 

Annual per account fees for
trust processing services:

 

	
  Traditional
  Trust Account:

  	
   

  	
  $130.00

  	
  per
  account/per year

  
	
   

  	
   

  	
   

  	
   

  
	
  *Low
  Activity Account:

  	
   

  	
  $50.00

  	
  per
  account/per year

  

 

*A
low activity account is defined as an account having no more than 36
transactions per year, and not more than quarterly statements

 

	
  ReturnTrack

  	
   

  	
  $12.00

  	
  per
  account/per year

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  InvestDesk

  	
   

  	
  Waived

  	
  per
  account/per year

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $4,500.00    Implementation
  Fee payable over a 12 month period or $375 per month

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual
  Review Suite

  	
   

  	
       Waived
        per account/per year

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $4,500.00    Implementation
  Fee payable over a 12 month period or $375 per month

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Metavante
  Standard Print Solution

  	
   

  	
  $12,000.00

  	
  one
  time implementation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Waived      annual
  maintenance

  
							

 

All pricing is subject to annual increase of
three percent (3%) beginning January 1, 2009.

 

38

 

·                  Price increases will take effect on January 1
of each year.

·                  Minimum charge for trust processing is
$22,500 annually.

 

Metavante reserves the right to charge separately for new
optional services added to their Trust Service after the execution of this Agreement.

 

Metavante uses several outside vendors (pricing service,
communications, corporate notification services, etc.) in providing their Trust
Services.  Any pass-through charges or
price increases from these services or any new optional services added by
Metavante will be passed through to the Customer based on their effective date
to Metavante.

 

39

 

WEALTH
MANAGEMENT TECHNOLOGY SERVICES

 

FEE
SCHEDULE

 

PRICING
ASSUMPTIONS

 

1.             Trust Data
Processing Services:

 

METAVANTE shall provide complete processing services
for the Customer as more fully described in the User Manuals.  Customer has a set of the User Manuals.  Updates will be supplied based on Metavante’s
then-current price for User Manuals.  The
User Manuals include, but are not limited to:

 

a.               User Manual Volume
1

b.              User Manual Volume 2

c.               User Manual Volume
3

d.              User Manual Volume 4

e.               Reports Usage
Manual 1

f.                 Reports Usage
Manual 2

g.              Special Processing
Volume 1

h.              Special Processing
Volume 2

i.                  Special
Processing Volume 3

j.                  Special
Processing Volume 4

k.               TrustDeskTM
on-line user documentation

 

2.             Client
Support Services

 

Metavante has included daily support personnel time
for the Customer based on the schedule shown below.  These support hours cover questions related
to standard system function and their usage as noted in the Metavante Trust
Services User Documentation or any processing related issues.  Any hours required by the Customer in excess
of this will be billed at Metavante’s then current standard product support
rate.

 

Product
Support Hours Schedule

 

	
  Contract
  Year

  	
   

  	
  Support
  Hours

  
	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  300

  
	
  2

  	
   

  	
  250

  
	
  3 and up

  	
   

  	
  250

  

 

Some inquiries and
services may be billable at the then current standard product support
rates.  Billable activity may include the
following types of inquiries:

 

a.               Trust
business/industry

b.              Consultative Advice

c.               Procedures; i.e.,
how to setup, change

d.              Trust policies and
procedures manual assistance

e.               Equipment setup,
changes

f.                 Statement
customizing

g.              Report writers designed

 

40

 

3.                                       Compatible
Printing Systems:

 

The Customer is
responsible for maintaining a Metavante Trust System compatible print solution
that is supported by METAVANTE (the “Printing Solution”).  A Printing Solution is required by METAVANTE
to enable the Customer to print METAVANTE Trust System checks, statements,
special forms, reports, and other trust system output.

 

41

 

SERVICE LEVEL SCHEDULE

 

1.                                      GENERAL PROVISIONS

 

1.1.          Introduction.  This Service
Level Schedule identifies Service Levels for the Services obtained by Client
from Metavante. These Service Levels are set forth below.

 

1.2.          Definitions.  In addition
to the terms defined in Section 2 of this Service Level Schedule, the
following terms have the following meanings and shall be equally applicable to
the singular and plural forms:

 

(A)          “Availability” shall mean that the Service associated
with the applicable Service Level is available to Client and End Users, as
applicable, as contemplated by this Agreement and is functioning normally in
all other material respects as defined in each description of each Service
Level set forth in this Service Level Schedule.

 

(B)           “Business Day” shall mean each Monday through Friday
except holidays recognized by the Federal Reserve Bank of Chicago.

 

(C)           “Business Intelligence Center” or “BIC” shall mean the
information support system implemented by Metavante to access key business information
contained in the Data Warehouse. The tools included in the BIC offering are
designed to support both casual and power Client users. The Software for the
so-called client portion of the BIC offering (which includes Data
Warehouse-related Software and report writing Software) will reside on
equipment located at Client facilities; all other elements of the Software for
the BIC offering will reside at Metavante facilities. BIC may be operated by
Client’s or Metavante’s personnel.

 

(D)          “Business Internet Banking” or “BIB” shall mean a
suite of products that offers realtime access to personal and business accounts
through a variety of information reporting packages, as well as special
reports, check imaging, data export, account transfer, stop payment, loan, wire
transfer, ACH (including tax payments), positive pay, and bank administration.

 

(E)           “Card Management System” or “CMS” is a tool accessible
by Client that provides online inquiry and maintenance, card issuance,
transaction authorization and customer account management for debit, prepaid
debit and ATM card programs.

 

(F)           “CIS” means Customer Information System.

 

(G)           “CGS” means Consolidated Gateway System.

 

(H)          “Consumer eBanking” or “CeB” shall mean the
information support system that provides end users with realtime access to
their personal financial resources at the Client institution through a branded
Web site or homepage.

 

42

 

(I)            “Core System” shall mean the following elements of the
Metavante System:  the so-called Deposit
System, the so-called Loan System, the General Ledger System and CIS.

 

(J)            “Critical Operations Reports” shall mean each of the
following reports:  standard Loan System
R6000 through R7530 reports and standard Deposit System R1000 through R2640 and
R2699 through R4998 reports.

 

(K)          “Data Warehouse” shall mean Metavante’s data warehouse
commonly known as “Business Intelligence Center” (which includes the tool
commonly known as “Business Objects”), and any permitted successors and
replacements therefor.

 

(L)           “Enterprise Contact Management” or “ECM” shall mean
the branded information system associated with Metavante’s hosted sales and
service solution.

 

(M)         “EFD” means Electronic Funds Delivery.

 

(N)          “EFD Reports” shall mean Metavante generated
Settlement Manager and Card Management System reports.  Network generated reports are excluded from
this.

 

(O)          “Emergency Maintenance” shall mean Metavante shall use
commercially reasonable efforts to effect planned outages during the Maintenance
Windows.  In cases where emergency
outages are necessary, Metavante shall provide notice of any such planned
outage using Metavante’s InfoSource notification system prior to the planned
outage specifying the duration of the planned outage.

 

(P)           “Final Resolution” shall mean a Payment Research Case
reaches Final Resolution when Metavante has confirmed that the payee has
posted, funds have been refunded to the Customer, or the payment has been
reissued to the correct payee. Additionally, Final Resolution will include
situations where Metavante has notated and routed the case back to Customer for
additional information, authorization or at Customer’s request; or Metavante
has provided the payee with proof of payment documentation necessary for the
payee to correctly post the payment to the end user’s account at the payee.

 

(Q)          “Handled” shall mean items fully brought to resolution
and items that require more information from the End User (via Client) or payee
before Claim can be brought to resolution.

 

(R)           “Institution” shall mean the logical grouping of banks
forming a holding company or other higher-level entity.

 

(S)           “Investment Technology Services” or “ITS” shall mean
the transaction processing and Web-based tools Metavante offers to provide
bank, brokerage and independent trust organizations technology to support the
products they use to deliver services to high net worth clients.

 

(T)           “Month-End Processing Day” shall mean the Data
Warehouse daily and monthly tables are updated. 
If processing has been completed prior to the Business Intelligence
Center Prior-Day Data 

 

43

 

Updates Service Level, data will be accessible and
will reflect the updates from the previous day. 
If processing is still occurring, the updates will not be available
until loading is complete.  If processing
has not yet started, the Data Warehouse daily and monthly tables will remain
the same as the prior day until loading begins for the most recent
updates.  During the loading process, the
Data Warehouse daily and monthly tables will not be available.

 

(U)          “Normal Processing Day” shall mean the Data Warehouse
daily tables are updated.  If processing
has been completed prior to the Business Intelligence Center Prior-Day Data
Updates Service Level, data will be accessible and will reflect the updates
from the previous day.  If processing is
still occurring, the updates will not be available until loading is
complete.  If processing has not yet
started, the Data Warehouse daily tables will remain the same as the prior day
until loading begins for the most recent updates.  During the loading process, the Data
Warehouse daily tables will not be available.

 

(V)           “Operations Center” shall mean the data center from
which Metavante provides the Services.

 

(W)         “Processing Day” shall mean any Monday through
Saturday except holidays recognized by the Federal Reserve Bank of Chicago.

 

(X)          “Release” shall mean that Metavante has received from
Client or Client’s selected vendor(s) all required posting input
data.  In the event that the Release is
not provided by the Client by the agreed upon time, Metavante will make best
effort to meet agreed upon processing times for all processing dependent upon
the Release, however any failure to meet those times will not be considered a
service level miss.

 

(Y)           “Scheduled Downtime” shall mean any period of
non-Availability due to scheduled maintenance as set forth in each description
of each Service Level set forth in this Service Level Schedule and other
maintenance periods agreed to in writing in advance by the parties.

 

(Z)           “Scheduled Hours of Availability” shall mean the
period of time during which Availability is measured for a given Service Level
as set forth in each applicable description of each Service Level set forth in
this Service Level Schedule.

 

(AA)       “Service Level Failure” shall have the meaning set
forth in Section 1.3(D) of this Service Level Schedule.

 

(BB)        “System Maintenance Window” shall mean scheduled
outages for which Metavante needs to perform regular, technical maintenance
(e.g. NCP maintenance, CPU IPL’s, DASD installs, IMS gens, etc.).  This type of maintenance is performed Sundays
between 2:00 a.m. and 6:00 a.m. CST/CDT, between 4:00 a.m. and
8:00 a.m. CST/CDT for West Coast locations, or between 1:00 a.m. and
5:00 a.m. CST/CDT for some East Coast locations.  These activities may result in downtime
during the System Maintenance Window.

 

(CC)        “Tandem/BASE24” shall mean the application responsible
for receiving transaction authorization data from POS, ATM devices and EFT
associations.  The transaction
authorization data is 

 

44

 

then delivered to host applica¬tions for authorization
decisions via external associations or directly to the Card Management System.

 

1.3.          Reporting On Service Levels

 

(A)          Except as otherwise expressly provided in this Service
Level Schedule, all Service Levels shall be measured consistently on a calendar
month basis.  No later than thirty (30)
days following the end of each month, Metavante shall provide Client with a
monthly performance report for the Services, which report shall include its
performance with respect to each of the Service Levels, including:  (i) Metavante’s performance against, and
calculations with respect to, each Service Level during the preceding month and
prior months; and (ii) Service Level Failures occurring during the
preceding month.  Such measurement,
monitoring and reporting shall permit Client to verify compliance with the
Service Levels.

 

(B)           Metavante shall promptly investigate, assemble and
preserve pertinent information with respect to, report on the causes of and
correct all performance related failures associated with, Service Levels,
including performing and taking appropriate preventive measures to prevent
recurrence.  In addition, Metavante shall
provide Client with communications as soon as reasonably practicable with
respect to issues that impact or could reasonably be expected to impact Client.  Metavante shall use commercially reasonable
efforts to minimize recurrences of such failures for which it is
responsible.  Client shall use reasonable
efforts to correct and minimize the recurrence of problems for which Client is
responsible and that prevent Metavante from meeting the Service Levels.  Metavante shall use commercially reasonable
efforts to resolve all problems and requests within the scope of Services
notwithstanding whether any Service Level has or has not been met, and shall
notify Client promptly of any such unresolved issues known to it.

 

(C)           Metavante shall maintain reasonable supporting
information for each monthly performance report for at least fifteen (15)
months and shall, at Client’s request, make such information available to
Client.

 

(D)          Service Level Failure.  A “Service
Level Failure” occurs whenever Metavante fails to meet a Service Level.
Metavante shall be excused for a Service Level Failure to the extent the
Service Level Failure is attributable to:

 

(i)                                     an event of force majeure;
or

 

(ii)                                  acts or omissions of Client.

 

1.4.          Time Periods.  Except as
otherwise specified, all references to days are to calendar days and all
references to hours/minutes are to hours/minutes during a calendar day.  All references to times are to Central time;
all references to months and quarters are to calendar months and calendar
quarters, respectively, unless otherwise specified; all references to weeks are
to calendar weeks, with the first day of each week being Sunday.

 

45

 

1.5.          Additions or Modifications to Service Levels

 

(A)          Replacement Systems.  In the event
that any applicable system or function used by Metavante to provide a Service
is replaced during the Term by a comparable system or function, the Service
Level shall, to the extent reasonably practicable, be defined during the first
sixty (60) days of operation of such replacement system or function, provided
that such Service Level shall be established at a level intended to achieve
performance at least the same as or better than performance under the Service
Level associated with the replaced system or function.

 

(B)           Documentation of Changes. 
Any additions or modifications to Service Levels shall be documented in
a written amendment to the Agreement (and this Schedule).

 

(C)           Account Volume Growth.  Batch windows
are based on current account volumes as of the Effective Date. Batch windows
may be adjusted by Metavante in consultation with Client should account volumes
exceed 20% growth.

 

2.                                      SERVICE LEVELS

 

2.1.          Core System Availability Service Level

 

(A)          The “Core System Availability Service Level” means
that each of the Core Systems shall have ninety-nine percent (99%)
Availability.  “Availability” means the
ability of Client to access each of the Core Systems and perform transactions
necessary to complete the function within each of such Core Systems with up to
date information during the Scheduled Hours of Availability.  The Scheduled Hours of Availability for the
Core System Availability Service Level shall be 7:00 a.m. to 10:00 p.m.
CST/CDT each Processing Day.  Scheduled
Downtime for the Core System Availability Service Level shall be the System
Maintenance Window.

 

2.2.          Monthly Batch Report Service Level

 

(A)          The “Monthly Batch Report Service Level” means that
not more than two (2) Processing Days per calendar month where the
Critical Operations Reports are not available by the Scheduled Delivery
Time.  A “miss” by Metavante is a failure
to achieve this on any Processing Day. 
On each processing day, Metavante shall initiate batch processing and
have Critical Operations Reports available for transmission to Client or
available for print at a Metavante center within five (5) hours starting
from the later of: (a) the agreed upon time that on-line access is
disabled; or (b) Metavante receives the Release providing the Release is
received by Metavante no later than 1:00 a.m. CST/CDT.

 

2.3.          Year-End Batch Report Service Level

 

(A)          The “Year-End Batch Report Service Level” means that
Metavante shall initiate batch processing and have Critical Operations Reports
available for transmission to Client or available for print at a Metavante
center within fifteen (15) hours on the last Processing Day of the year
starting from the later of: (a) the agreed upon time that on-line access
is disabled or (b) Metavante receives the Release providing the Release is
received by Metavante no later than 1:00 a.m. CST/CDT.

 

46

 

2.4.          Operations Center Availability Service Level

 

(A)          The “Operations Center Availability Service Level”
means that communications between the Client’s Operation Center and Metavante’s
Datacenter shall have ninety-nine and nine-tenths percent (99.9%) Availability
as measured by Metavante’s network performance monitoring tool, excluding all
VPN solutions.  “Availability” means that
there are communications between Client’s Operations Center and Metavante’s
Datacenter during Scheduled Hours of Availability.  The Scheduled Hours of Availability for the
Operations Center Availability Service Level shall be twenty four hours a day,
seven days per week.  Scheduled Downtime
for the Operations Center Availability Service Level is:  (i) Sundays between 2:00 a.m. and
6:00 a.m. CST/CDT; (ii) other planned outages of up to one (1) hour
per month in the aggregate, provided that Metavante shall notify Client of any
such planned outages using Metavante’s InfoSource notification system at least
twenty four (24) hours prior to the planned outage specifying the duration of
the planned outage, it being understood that if such outage exceeds the
duration of the planned outage, such outage shall not be deemed to be Scheduled
Downtime; (iii) Client managed environmental outage such as client site
power loss, cable cut, etc.; (iv) downtime if Client elects not to have
SNS back up capabilities; and (v) equipment maintenance periods that are
mutually agreed upon in writing in advance.

 

(B)           For the avoidance of doubt, the Operations Center
Availability Service Level measures network transport and not necessarily
Client’s experience.  For example, a
Client user may assume the network is the cause of an issue when in fact the
actual issue is something other than the wide area network (WAN).

 

2.5.          Business Intelligence Center Availability Service
Level

 

(A)          The “Business Intelligence Center Availability Service
Level” means that the BIC is accessible for use by Client to access the Data
Warehouse and that the same is functioning normally in all material respects
during Scheduled Hours of Availability. 
The Scheduled Hours of Availability for the Business Intelligence Center
Availability Service Level shall be 7:00 a.m. to 10:00 p.m. each
Processing Day, except on Saturdays when Availability is from 7:00 a.m. to
6:00 p.m.  Availability times are
specific to an Institution’s time zone. 
Scheduled Downtime for the Business Intelligence Center Availability
Service Level is Sundays.

 

2.6.          Business Intelligence Center Prior-Day Data Updates
Service Level

 

(A)          The “Business Intelligence Center Prior-Day Data
Updates Service Level” means that due to varying account volumes and month-end
processing being three times that of a normal day’s processing, two Service
Levels will apply as follows: (i) for Institution’s with an Aggregate
Deposit Account Volume less than 250,000 accounts, Normal Processing Day by
9:30 a.m. and Month-End Processing Day by 12:00 p.m., (ii) for
Institution’s with an Aggregate Deposit Account Volume greater than or equal to
250,000 accounts, Normal Processing Day by 10:30 a.m. and Month-End
Processing Day by 7:00 a.m. the next Processing Day.  Availability times are specific to an
Institution’s time zone.  Metavante is
responsible for meeting the Business Intelligence Center Prior-Day Data Updates
Service Level providing the batch processing Release is received by Metavante
no later than 1:00 a.m. CST/CDT. 
The Business Intelligence Center Prior-Day Data Updates Service Level is
dependent on Metavante receiving the Release on time.  This excludes Account Analysis due to re-analysis
processing.

 

47

 

2.7.          Host Teller Transactions Response Time Service Level

 

(A)          The “Host Teller Transactions Response Time Service
Level” means that Metavante shall process so called host teller transactions in
an average of one and five-tenths (1.5) seconds as measured over a calendar
month, from the time that the transaction is sent by the Client’s point of
demarcation to the time the processed data is returned to Client’s point of
demarcation.  For CGS clients, this is
measured from the time the transaction is received at Metavante’s CGS in Brown
Deer, Wisconsin to the time the processed data is returned to the CGS.  The Scheduled Hours of Availability for the
Host Teller Transactions Response Time Service Level shall be 7:00 a.m. to
10:00 p.m. CST/CDT each Processing Day.

 

(B)           Should Metavante not be able to perform in accordance
with the Service Level because Client failed to acquire network or equipment
recommended by Metavante, or such additional network or equipment as may be
reasonably necessary based on the circumstances, Metavante shall notify Client
in writing and Client shall either acquire such network and/or equipment or
accept the response time that is achieved.

 

2.8.          CRT Transactions Response Time Service Level

 

(A)          The “CRT Transactions Response Time Service Level”
means that Metavante shall process so called CRT transactions in an average of
two and five-tenths (2.5) seconds as measured over a calendar month, from the
time that the transaction is sent by the Client’s point of demarcation to the
time the processed data is returned to Client’s point of demarcation.  For CGS clients, this is measured from the
time the transaction is received at Metavante’s CGS in Brown Deer, Wisconsin to
the time the processed data is returned to the CGS.  The Scheduled Hours of Availability for the
CRT Transactions Response Time Service Level shall be 7:00 a.m. to 10:00 p.m.
CST/CDT each Processing Day.

 

(B)           Should Metavante not be able to perform in accordance
with the Service Level because Client failed to acquire network or equipment
recommended by Metavante, or such additional network or equipment as may be
reasonably necessary based on the circumstances, Metavante shall notify Client
in writing and Client shall either acquire such network and/or equipment or
accept the response time that is achieved.

 

2.9.          Tandem/BASE24 Availability Service Level

 

(A)          The “Tandem/BASE24 Availability Service Level” means
that Tandem/BASE24 shall have ninety-nine and seven-tenths percent (99.7%)
Availability.  “Availability” means
Tandem/BASE24 is available and operational and is functioning normally in all
material respects with respect to all functions during Scheduled Hours of
Availability.  The Scheduled Hours of
Availability for the Tandem/BASE24 Availability Service Level shall be twenty
four hours a day, seven days per week. 
Scheduled Downtime for the Tandem/BASE24 Availability Service Level
shall be Clients will be notified of scheduled maintenance outages forty-five
(45) days in advance via standard notification methods.

 

48

 

2.10.        CMS Availability Service Level

 

(A)          The “CMS Availability Service Level” means that CMS
shall have ninety-nine and five-tenths percent (99.5%) Availability.  “Availability” means CMS is available and
operational and is functioning normally in all material respects with respect
to all functions during Scheduled Hours of Availability.  The Scheduled Hours of Availability for the
CMS Availability Service Level shall be twenty four hours a day, seven days per
week.  Scheduled Downtime for the CMS
Availability Service Level is Sundays between 2:00 a.m. and 6:00 a.m.
CST/CDT and Wednesdays between 2:00 a.m. and 6:00 a.m. CST/CDT.  Additionally, Scheduled Downtime shall
include the System Maintenance Window.

 

2.11.        EFD Reports Service Level

 

(A)          The “EFD Reports Service Level” means that not more
than one (1) time per calendar month where the EFD Reports are not
available by the Scheduled Delivery Time. 
A “miss” by Metavante is a failure to achieve this on any day.  Metavante shall initiate processing and have
EFD Reports available for delivery to Client by 3:00 a.m. CST/CDT the
following day.

 

(B)           ATM Adds and Branch Openings. Metavante will commit to
uptime within two (2) hours of scheduled/planning timing.

 

2.12.        CeB Availability Service Level

 

(A)          The “CeB Availability Service Level” means that CeB
shall have ninety-eight percent (98%) Availability.  “Availability” means the time when the
network, database and other elements under direct Metavante control are
available and responsive to remote customer service inquiry during the
Scheduled Hours of Availability.  The
Scheduled Hours of Availability for the CeB Availability Service Level shall be
twenty-four hours a day, seven days per week. 
Scheduled Downtime for the CeB Availability Service Level is Sundays
between 2:00 a.m. and 6:00 a.m. CST/CDT.  Additionally, Scheduled Downtime shall
include the System Maintenance Window.

 

2.13.        CeB with Bill Payment Manager Availability Service
Level

 

(A)          The “CeB with Bill Payment Manager Availability
Service Level” means that CeB with Bill Payment Manager shall have ninety-eight
percent (98%) Availability.  “Availability”
means the time when the network, database and other elements under direct
Metavante control are available and responsive to remote customer service
inquiry during the Scheduled Hours of Availability.  The Scheduled Hours of Availability for the
CeB with Bill Payment Manager Availability Service Level shall be twenty four
hours a day, seven days per week. 
Scheduled Downtime for the CeB with Bill Payment Manager Availability
Service Level is Sundays between 2:00 a.m. and 6:00 a.m.
CST/CDT.  Additionally, Scheduled
Downtime shall include the System Maintenance Window.

 

49

 

2.14.        CeB End-User Support (Tier One) Service Level

 

(A)          The “CeB End-User Support (Tier One) Service Level”
means eighty-five percent (85%) of CeB calls received each month shall be
answered within thirty (30) seconds, measured monthly within the shared
environment.  The monthly average
abandoned call rate shall not exceed five percent (5%) of all incoming calls
(does not include calls answered by an automated response unit), within the
shared environment.  The abandon rate refers
to how many callers hang up before speaking with an agent. The Standard Hours
of Operation for the Metavante Customer Care Center shall be twenty four hours
a day, seven days a week excluding the following holidays: New Years Day,
Easter, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.  On these holidays, the
Metavante Customer Care Center will close at 11:00 p.m. CST/CDT the night
before the holiday and reopen at 11:00 p.m. CST/CDT the day of the
holiday.

 

2.15.        CeB Bill Pay Processing Service Level

 

(A)          The “CeB Bill Pay Processing Service Level” means one
hundred percent (100%) of non-rejected payment transaction requests received by
Metavante by 8:00 p.m. CST/CDT will be processed on the same Business Day’s
processing cycle.

 

2.16.        BIB Availability Service Level

 

(A)          The “BIB Availability Service Level” means that BIB
shall have ninety-eight percent (98%) Availability.  “Availability” means the time when the
network, database and other elements under direct Metavante control are
available and responsive to remote customer service inquiry during the
Scheduled Hours of Availability.  The
Scheduled Hours of Availability for the BIB Availability Service Level shall be
twenty four hours a day, seven days per week. 
Scheduled Downtime for the BIB Availability Service Level is Sundays
between 1:00 a.m. and 9:00 a.m. CST/CDT.  Additionally, Scheduled Downtime shall
include the System Maintenance Window.

 

2.17.        BIB End-User Support (Tier One) Service Level

 

(A)          The “BIB End-User Support (Tier One) Service Level”
means eighty-five percent (85%) of BIB calls received each month shall be
answered within sixty (60) seconds, measured monthly within the shared
environment. The monthly average abandoned call rate shall not exceed five percent
(5%) of all incoming calls (does not include calls answered by an automated
response unit), within the shared environment. 
The abandon rate refers to how many callers hang up before speaking with
an agent. The Standard Hours of Operation for the Metavante Customer Care
Center shall be twenty four hours a day, seven days a week excluding the
following holidays: New Years Day, Easter, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day and Christmas Day. 
On these holidays, the Metavante Customer Care Center will close at
11:00 p.m. CST/CDT the night before the holiday and reopen at 11:00 p.m.
CST/CDT the day of the holiday.

 

2.18.        BIB Bill Pay Processing Service Level

 

(A)          The “BIB Bill Pay Processing Service Level” means one
hundred percent (100%) of non-rejected payment transaction requests received by
Metavante by 11:00 p.m. CST/CDT will be processed on the same Business Day’s
processing cycle.

 

50

 

2.19.        Standard Payment Research, Claim Processing and
Resolution Service Level

 

(A)          The “Standard Payment Research, Claim Processing and
Resolution Service Level” means End User initiated research will reach Initial
Resolution within three (3) Business Days, ninety-seven and five-tenths
percent (97.5%) of the time and will reach Final Resolution within forty-five
(45) Calendar Days, ninety-seven and five-tenths percent (97.5%) of the time,
after the initial contact to Metavante Customer Service by Customer, during
normal business hours, during the calendar month, within the shared
environment.

 

(B)           Customer representative will enter research items into
the Metavante system.  Metavante
personnel will handle these research items and move them from open to pending
to closed.  Client personnel can view the
status of the research item at any time using the CST tool.  The date of next follow-up refers to the date
that Metavante will next review the inquiry if it requires additional
information from the End User, payee, or Client.

 

(C)           Payment research investigations will be accepted as
early as five (5) Business Days from the date the payment is remitted by
Metavante (“Payment Processing Date”) for Electronic payments and eight (8) Business
Days from the payment file cut date for payments made by check.  Any Payment Research Investigations received
before the lead times stated in the prior sentence will not be included in the
Service Level calculations.

 

2.20.        Escalated Payment Research, Claim Processing and
Resolution Service Level

 

(A)          The “Escalated Payment Research, Claim Processing and
Resolution Service Level” means Client representative will open research claims
in an escalated status for mortgage payment and insurance payments.  These claims will be handled within one (1) Business
Day after the initial consumer contact ninety percent (90%) of the time, during
the calendar month, within the shared environment.

 

2.21.        Pending Payment Research, Claim Processing and
Resolution Service Level

 

(A)          The “Pending Payment Research, Claim Processing and
Resolution Service Level” means inquiries will be tracked by or on the next
action date and follow up will continue until the problem is resolved.  The follow-up with payees will occur on the
date of next follow-up eighty percent (80%) of the time, during the calendar month,
within the shared environment.

 

2.22.        ITS Availability Service Level

 

(A)          The “ITS Availability Service Level” means that ITS
shall have ninety-five percent (95%) Availability.  Scheduled Downtime for the ITS Availability
Service Level is Sundays between 2:00 a.m. and 6:00 a.m.
CST/CDT.  Additionally, Scheduled
Downtime shall include the System Maintenance Window.

 

51

 

2.23.        ITS Batch Report Service Level

 

(A)          The “ITS Batch Report Service Level” means Metavante
will initiate batch processing and have bank operations reports available for
transmission to Client or make the processed item and reports within six (6) hours
(fifteen (15) hours at year end) after receiving all input data from Client,
and with such performance being missed not more than two (2) Processing
Days per calendar month.

 

2.24.        ITS Response Time Service Level

 

(A)          The “ITS Response Time Service Level” means Metavante
will process ninety-five percent (95%) of CRT synchronous transactions in less
than two and five-tenths (2.5) seconds as measured over a calendar month from
time to time the transaction is sent by the Client’s point of demarcation to
the time the processed data is returned to the Client’s point of demarcation
using IBM System Monitoring Facility (SMF) or similar product.  Should Metavante not be able to achieve this
objective, Metavante may recommend network or equipment upgrades over which
Client has control and Client shall be responsible for making such changes or
accepting the response time that it achieved.

 

2.25.        ECM Availability Service Level

 

(A)          The “ECM Availability Service Level” means that ECM
shall have ninety-nine percent (99%) Availability.  “Availability” means the time when the
network, core systems, database, and other elements under direct Metavante
control are available and responsive during the Scheduled Hours of
Availability.  The Scheduled Hours of
Availability for the ECM Availability Service Level shall be 7:00 a.m. to
10:00 p.m. CST/CDT each Processing Day. 
Scheduled Downtime for the ECM Availability Service Level is Mondays
from midnight to 5:00 a.m. CST/CDT. 
Additionally, Scheduled Downtime shall include the System Maintenance
Window.

 

2.26.        “Metavante Insight Service Level” for “Deposit
Origination”

 

(A)          Metavante Insight for Deposit Origination, which is a
browser-based solution designed to facilitate deposit account opening and
related activities, shall have ninety-eight percent (98%) availability,
provided that Metavante is not responsible for lack of availability due to
failure of Internet service providers or failure of CLIENT NAME hardware or
software. The Scheduled Hours of Availability for the Metavante Insight Deposit
Origination Service Level shall be 8:00 a.m. through 10:00 p.m.,
Monday through Saturday, and 9:00 a.m. through 10:00 p.m. on Sunday.
Scheduled Downtime for the Metavante Insight Service Level shall be Sundays
between 2:00 a.m. and 9:00 a.m. Metavante Insight for Deposit Account
Origination may not be available outside of the Scheduled Hours of
Availability.

 

52

 

TERMINATION
FEE SCHEDULE

 

1.             Termination for Convenience.  Except as set forth in Paragraph 3 of this
Schedule, if Customer elects to terminate this Agreement or any Service for any
reason, Customer shall pay Metavante the Termination Fee computed in accordance
with this Schedule.  The Termination Fee
shall be paid prior to the Effective Date of Termination of the Agreement or
Service, as applicable.  In addition to
the foregoing, Customer shall pay to Metavante any amortized but unpaid
Conversion fees and all reasonable costs in connection with the disposition of
equipment, facilities and contracts specifically related to Metavante’s
performance of the Services under this Agreement.

 

2.             Termination for Cause by Metavante. 
If Metavante terminates this Agreement in accordance with Sections 8.2
or 8.3 of the Agreement, Customer shall pay Metavante the Termination Fee as
set forth in this Schedule.  The
Termination Fee shall be paid prior to the Effective Date of Termination. In
addition to the foregoing, Customer shall pay to Metavante any amortized but
unpaid Conversion fees and all reasonable costs in connection with the
disposition of equipment, facilities and contracts specifically related to
Metavante’s performance of the Services under this Agreement.

 

3.             Termination for Cause by Customer. 
If Customer terminates this Agreement in accordance with Sections 8.2 or
8.3 of the Agreement, then Customer shall not be obligated to pay Metavante the
Termination Fee.

 

4.             Termination Fee. 
The Termination Fee shall be an amount equal to eighty-five percent
(85%) of the Estimated Remaining Value of the terminated Services.

 

5.             Rebate of Termination Fee. 
Subject to Metavante’ rights under Section 6 below, Customer shall
receive a rebate of a portion of any Termination Fee paid by Customer hereunder
in the event that Customer shall enter into a new exclusive agreement with
Metavante to receive the Initial Services within six (6) months following
the Effective Date of Termination.  Such
rebate shall be determined according to the following schedule:

 

	
  Number of Months Following Termination

  	
   

  	
  Rebate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  5/6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  4/6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  3/6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  2/6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  1/6

  	
   

  

 

53

 

6.             Payment of Rebate. 
The applicable rebate of the Termination Fee shall become payable to
Customer upon execution of a new exclusive agreement for Initial Services by
and between Customer and Metavante within six (6) months following the
Effective Date of Termination (the “New Agreement”).  The terms of such New Agreement shall be as
mutually agreed by the parties and nothing herein shall obligate Metavante or
Customer to accept any terms or conditions, whether or not previously
acceptable to either of them.  The rebate
may be paid to Customer by Metavante, in its sole discretion, in the form of a
discount to fees payable by Customer under the New Agreement or as a credit
against implementation, conversion, training, or professional services fees
payable by Customer, or in such other manner as Metavante shall decide.

 

7.             Revocation.  Customer’s
right to receive the rebate of the Termination Fee as provided under Section 5
of this Schedule may not be cancelled or revoked except by a written instrument
that is (a) signed by Metavante expressly revoking Customer’s right to
receive such rebate; and (b) delivered to Customer by Metavante within
thirty (30) days following the date of termination of this Agreement.

 

54

 

NYCE NETWORK PARTICIPANT SCHEDULE

 

Section 1.  Scope.  NYCE owns and operates a shared electronic
funds transfer network (the “Network”) whereby insured depository financial
institutions and other approved organizations are able, among other things, to
route, secure authorization for, and settle Transactions originated at
Terminals and other NYCE approved devices (“Devices”).  Participant recognizes that this Schedule
also sets forth the rights and obligations of other participants in the Network
(“Network Participants”).  Capitalized terms
used herein and not otherwise defined herein shall have the meaning set forth
in the Network Requirements (as defined herein).  Subject to the terms and conditions of this
Schedule, Participant agrees to become a participant in the Network, subject to
the terms and conditions of this Agreement (select applicable option(s)):

 

          NYCE Network Participation

 

(If Participant elects (a) NYCE Network Participation above, that
Participant may add participation in the NYCE Network Prepaid Card Program at
any time under the terms and conditions of this Agreement and the Network
Requirements.  In such case, an addendum
to this Agreement is not required.  If
Participant elects (b) NYCE Network Participation, Prepaid Card Program
Only above, then in such case, an addendum to this Agreement  is required if Participant desires to add
full NYCE Network participation.)

 

Section 2.  Compliance with Network Requirements.  Certain rights, obligations, and
responsibilities of Network Participants and NYCE are set forth in the NYCE
Network Operating (“Rules”), Graphic Standards, Technical Specifications,
and/or other written requirements published by NYCE from time to time, as
amended or modified from time to time (collectively, the “Network Requirements”),
and all such provisions thereof are incorporated into this Schedule by
reference.  Participant will comply with
all applicable provisions of the Network Requirements.

 

Section 3.  Services.  Subject to the rights and obligations of NYCE
set forth in the Network Requirements, NYCE will: (a) provide, or arrange
for the provision of, a Switch enabling customers of Participant and other
Participants to effect Transactions through Terminals, Devices and/or Prepaid
Terminals (as applicable), provided that NYCE may discontinue any and all
services to Participant in accordance with the Rules; (b) supply to and
accept from Participant and its Designated Processor all information and data
relating to Transactions in such form as NYCE may require from time to time; (c) have
a “client services unit” available during normal business hours to assist
Participant in utilizing the services provided under this Agreement; and (d) provide
Participant with training for the services provided under this Agreement in the
manner, to the extent and at such fees as it generally makes such training
available to other Network Participants. 
Additional rights and obligations of the parties are set forth in Exhibit A and/or Exhibit B
hereto, if any.

 

Section 4.  License to Use Marks.  NYCE hereby grants Participant a
non-exclusive, royalty-free, limited license to use those Marks which are
granted to all Network Participants, solely in connection with Participant’s
participation in the Network, subject to the Network Requirements.

 

Section 5.  Fees; Taxes.  Participant will pay all fees, sanctions,
fines, and other charges set forth in the Rules and the published fee
schedules as specified therein.  Such
fees, sanctions, fines, and other charges are subject to change from time to
time as set forth in the Rules.  Participant or its Designated Processor shall
identify one or more deposit accounts and authorize NYCE to debit or credit
such accounts for all amounts due and payable by Participant.  Participant will promptly pay when imposed or
assessed all taxes, fees, assessments, charges and similar amounts, imposed by
a federal, state and local governmental entity and arising out of or incidental
to Participant’s participation in the Network or any predecessor to the Network
or Participant’s receipt or use of the services provided under this Schedule;
provided, however, the foregoing shall not apply to the extent based upon the
net income of NYCE.

 

Section 6.  No Warranty.  NYCE MAKES NO WARRANTY, EXPRESS OR IMPLIED,
INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE,
MERCHANTABILITY OR NONINFRINGEMENT, WITH RESPECT TO THE SERVICES TO BE PROVIDED
BY IT OR BY ANY THIRD PARTY WITH WHICH IT CONTRACTS TO PROVIDE SERVICES, OR
WITH RESPECT TO THE MARKS AND NYCE’S OTHER TRADE DESIGNATIONS, TO PARTICIPANT,
ANY NETWORK PARTICIPANT OR ANY OTHER PERSON, AND NOTHING CONTAINED IN THE
NETWORK REQUIREMENTS SHALL CONSTITUTE SUCH A WARRANTY.  WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, NYCE DISCLAIMS ANY WARRANTIES REGARDING MARKET DATA, INDUSTRY DATA OR
OTHER DATA PROVIDED BY NYCE AND, FURTHER, MAKES NO WARRANTY THAT THE SERVICES
WILL BE UNINTERRUPTED OR ERROR-FREE.

 

Section 7.
Term; Termination; Termination Fee.   This Schedule shall automatically terminate
upon termination of Participant’s participation 

 

55

 

in
the Network as set forth in the Rules. 
For the avoidance of doubt, Participant does not have the right to
terminate this Schedule for convenience, and any purported termination of this
Schedule by Participant prior to the expiration of the then-current Term for
any reason, other than NYCE’s material breach of its obligations hereunder,
shall be deemed to be a material breach of Participant’s obligations hereunder,
which shall entitle NYCE to terminate this Schedule for cause.  If this Schedule is terminated by NYCE for
cause as described in the preceding sentence, Participant shall pay to NYCE, as
liquidated damages for such breach and not a penalty, an amount equal to the
number of months remaining in the then-current Term as of the effective date of
termination, multiplied by the sum of (i) the average monthly fees
(measured over the preceding six months, excluding pass-through fees) paid to
NYCE by Participant during such Term, and (ii) the average monthly fees
(measured over the preceding six months across the Network) paid to NYCE by
other network participants in respect of Transactions from Cards issued by
Participant and in respect of Transactions acquired by Participant.  Such liquidated damages shall be in addition
to, and not in diminishment of, any amounts due NYCE under this Schedule or
otherwise, including, without limitation, amounts owing pursuant to the Rules.

 

Section 8.  Intended Beneficiary; Survival.  Participant and Metavante acknowledge and
agree that NYCE Payments Network, LLC, is an intended beneficiary of the rights
set forth in the Schedule and shall therefore have the right to enforce this
Schedule directly against Participant or Customer.  Sections 2, 5, 6, and 8 of this Schedule
shall survive any termination or expiration thereof.

 

56

 

EXHIBIT
A

 

Section 1.  Network Participation.

 

1.1   Participant shall cause all
Cards, including but not limited to, cards that access payroll benefits
or a prefunded dollar value (commonly known as prepaid or stored
value cards), now or hereafter issued by Participant (including those
Cards acquired by Participant) to participate in the Network, regardless of
whether such Cards are required under the Network Requirements or otherwise to
participate in the Network.

 

1.2   Participant represents and
warrants that it shall use the Network as its sole provider for ATM and POS
Transactions initiated with Customer’s Cards and Participant shall not participate
in any other Shared Networks; with the exception of the AllPoint Network and it’s
successors for ATM surcharge free access. 
In the event the AllPoint Network introduces a POS program, Participant
agrees that it shall opt out of such program or exit the AllPoint Network
completely. Participant may also participate in international ATM-only Shared
Network(s) for the limited purpose of cash withdrawals and related
transactions at ATM Terminals.

 

1.3   In the event that Participant is,
as of the date of an acquisition of additional Cards, a party to an agreement(s) with
other Shared Network(s) (other than as permitted in Section 1.2
above), Participant shall take all steps necessary to exit (by expiration or
termination) in accordance with its terms as soon as possible such agreement(s) with
the Shared Network(s), including without limitation, the timely delivery of all
requisite notices.  In addition, while
such other agreement is in effect Participant shall take all steps necessary to
cause all Transactions initiated at Network Terminals with Participant’s Cards
to be priority routed to the Network, including, but not limited to, providing
the Network and any other Shared Network with appropriate irrevocable
instructions designating the Network for priority routing of all of Participant’s
Cards.  In the event that the designation
of the Network as Participant’s first priority routing choice is contrary to
any other agreement then in place, Participant shall make such designation at
the earliest date on which such contractual commitments shall expire or
terminate.

 

Section 2.  NYCE Fees.  During the term of the Schedule:

 

2.1  The monthly Participation Fee set forth on the NYCE
Network Services Price Schedule for
Participant shall be waived during each month that Participant is a Metavante
client.

 

2.2  The monthly Membership Fee shall be waived for the Selective Surcharging
(SUM) and Presto! Alliance programs.

 

2.3  During the term of the Schedule, ATM Transaction Fees (per ATM and
POB Transaction), POS Transaction Fees (per POS Transaction) and Surcharge
Transaction 

 

57

 

Fee
(per Surcharged Transaction) for Participant shall be in accordance with the
amounts set forth below:

 

	
  ATM Transactions:

  	
   

  	
  $

  	
  .0700

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  POS Transactions:

  	
   

  	
  $

  	
  .0300

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Surcharge Transactions:

  	
  Waived

  	
   

  
						

 

In addition to such fees, Participant shall be subject to all other
applicable fees set forth on the published NYCE Network and Ancillary Services
Price Schedules, which fees may be amended from time to time.

 

Section 3.  Miscellaneous.

 

3.1  The terms and conditions of this
Addendum are proprietary to NYCE and are to be treated as Confidential
Information by Participant in accordance with the Network Requirements.

 

3.2  Participant shall participate in timely
mutually acceptable press release describing key terms of the relationship.

 

58

 

EXHIBIT
B

 

SUM Selective Surcharging
Services

 

Section 1.  Scope.  NYCE owns and operates an electronic funds
transfer and communication network (the “NYCE Network”) whereby insured
depository institutions are able, among other things, to route, process and
settle Transactions originated at Terminals. 
NYCE offers Participants the ability to participate in certain programs
related to the surcharging of certain Transactions.  By executing this Amendment, Program Member
has agreed to become a member of the Program.

 

Section 2.  Definitions.  Capitalized terms used herein
and not otherwise defined in this Amendment shall have the meaning ascribed to
them in the NYCE Network Operating Rules, as they may be amended or modified
from time to time (the “Rules”).

 

2.1  “Program” shall mean the
program described in Section 3 of this Amendment.

 

2.2  “Program Marks” shall mean
the any and all proprietary marks associated with the Program.

 

Section 3.  Program.   Program Member agrees to become a member of
the Program below pursuant to this Amendment and includes certain terms and
conditions specific or unique to the Program:

 

SUM Selective Surcharging Program

 

3.1  SUM Selective Surcharging
Program.  The Rules authorize Participants to
enter into an agreement pursuant to which the Participant agrees to exempt
Surcharge Eligible Transactions performed by cardholders of other parties to the
agreement from Surcharges at each other’s ATM Terminals.  Program Member has elected to become a member
of the selective surcharging program administered by NYCE (the “SUM Program”).  Capitalized terms used in this Section 3.1
and not otherwise defined herein or in the Rules shall have the meaning
set forth in the NYCE Network Selective Surcharging Program Rules, as they may
be amended or modified from time to time (the “SUM Program Rules”).

 

3.2  SUM Program Marks.

 

3.2.1 License to Use.  NYCE (a) reserves the right from time to
time to designate, modify, and/or discontinue any and all SUM Program Marks,
and (b) reserves the right to use, and to license or sublicense others to
use, the SUM Program Marks.  NYCE hereby
grants Program Member a non-exclusive, royalty-free, limited license to use the
SUM Program Marks solely as set forth in the SUM Program Rules or as
otherwise approved by NYCE in writing, which approval may be granted or denied
in NYCE’s sole discretion.  In no event
shall Program Member use the SUM Program Marks in any way, for any purpose, or
in conjunction with any words, which inaccurately or inappropriately identify
or describe the SUM Program, or to describe, advertise, or identify in any
other manner anything other than the SUM Program.

 

3.2.2  Conditions and Limitations on Use.  The right of Program Member to use the SUM
Program Marks shall be subject to the following conditions and
limitations:  (a) Program Member
shall comply with the SUM Program Rules, this Amendment, and all Applicable
Laws pertaining to its use of the SUM Program Marks, as well as all the graphic
standards, specifications, and directives concerning usage of the SUM Program
Marks that may be issued by NYCE from time to time; (b) Program Member
shall not represent that it has any ownership interest in the SUM Program Marks
or registrations, nor shall Program Member do or cause to be done anything that
contests, impairs or tends to impair NYCE’s exclusive right, title, and
interest in and to the SUM Program Marks; (c) NYCE may, at any reasonable
time, inspect the manner in which Program Member is using the SUM Program Marks
and, if NYCE so requests, Program Member shall submit data regarding samples
and descriptions of such use; and (d) at any time reasonably requested by
NYCE, and at Program Member’s sole expense, Program Member shall cease to use
the SUM Program Marks and, if so requested, shall destroy or surrender to NYCE
any depiction of the SUM Program Marks.

 

3.2.3  Protection of the Program Marks.  Program Member shall assist NYCE to the
fullest extent necessary to procure 

 

59

 

protection, and to maintain any existing protection, for all of NYCE’s
rights in the SUM Program Marks.  In the
event that Program Member learns of any actual or intended infringement,
simulation, or imitation of the SUM Program Marks by any Person that has not
been granted the right to use the SUM Program Marks by NYCE, Program Member
shall so notify NYCE in writing as soon as reasonably practicable.

 

3.2.4  Litigation by Program Member.  Program Member shall neither threaten nor
initiate any litigation against any third party relating to the SUM Program
Marks without the prior written consent of NYCE.

 

3.2.5 Claim of Infringement.  If another Person asserts that Program Member
violated any proprietary rights in conjunction with its use of a SUM Program
Mark, Program Member shall promptly notify NYCE in writing of such assertion
and of any litigation or possible litigation resulting from such assertion.  In the event any claim of infringement is
made or threatened against NYCE or any SUM Program member as it relates to any
SUM Program Mark or injunctive relief is granted to a claimant with respect to
such claim, NYCE may, in its sole discretion: (a) modify the SUM Program
Mark to render it non-infringing, or (b) substitute another mark, or (c) terminate
Program Member’s participation in the SUM Program.  The foregoing shall be NYCE’s sole obligation
and liability to Program Member in the event of any claim of infringement.

 

Section 4.  Compliance with Documents.  Certain rights, privileges,
duties, obligations, and responsibilities of Program Member are set forth in
the Network Requirements, the SUM Program Rules (with respect to the SUM
Program), and all other applicable Program rules, and all such provisions are
incorporated into this Amendment by reference as if they were fully set forth
herein.  Program Member will comply with
and be bound by all applicable provisions of the Network Requirements and SUM
Program Rules.  In the event of any
conflict between this Amendment and the Network Requirements, or the SUM
Program Rules and the Network Requirements, the Network Requirements shall
govern and control.

 

Section 5.  Inclusion
and Participation of Program Cards.  All Cards issued
by Program Member must participate in the Program.  Program Member may exclude the Cards issued
in a specific state or states from Program participation provided that Program
Member issues Cards in those states so excluded under a unique BIN(s).  Program Member shall take all steps necessary
to cause all Transactions initiated using Program Cards to be routed to the
NYCE Network during the term of this Amendment. 
Program Member represents and agrees that it is not and will not be a
party to an agreement with, or subject to restrictions imposed by, another
Shared Network which would prevent or interfere with the routing to the NYCE
Network of Transactions initiated with Program Cards at Program Terminals.

 

Section 6.  Confidentiality.  Program Member shall not disclose or
otherwise make available any property or information regarding the Program to
any Person other than its employees, agents, or representatives who have a need
to know in conjunction with Program Member’s productive use of the Program.

 

Section 7.  Legal Compliance.  Program Member shall comply with all
Applicable Law pertaining to its participation in the Program.  Program Member shall also inform NYCE of any
change in state law known to Program Member that affects its continued
participation in the Program

 

Section 8.  Indemnification  Program Member shall indemnify and hold harmless NYCE, its
directors, officers, employees, agents, and shareholders, all other Program
members and their Designated Processors (the “NYCE Indemnified Parties”), from
any and all losses, costs, expenses, fees, claims, damages, liabilities, and
causes of action (including, without limitation, attorneys’ fees and costs) of
third parties for any matter whatsoever which in any way directly or indirectly
arises from, is caused by, or is attributable to, any of the following:  (a) failure of Program Member to abide
by or perform any obligation imposed by the SUM Program Rules, Network
Requirements, and/or this Amendment (as applicable), or its status as a Program
Member; (b) violation by Program Member of any law, regulation, or court
order directly or indirectly relating to a Program; (c) unauthorized use
by Program Member of one or more Program Marks; (d) Program Member’s
participation in the Program; and/or (e) the use of any Program ATM
Terminal by any Cardholder of another Program member.  For the purposes of (a)-(c) above, the
term Program Member shall include its directors, employees, agents,
representatives, and its Designated Processor. 
Program Member shall be provided with prompt notice of any such claims
and given full authority and assistance for the defense of any such claims;
provided, however, that Program Member shall have no authority to settle any
claim against any NYCE Indemnified Party without the prior written consent of
such party (which consent shall not be unreasonably withheld).

 

60

 

Section 9.  Limitation of Liability.

 

9.1  No Warranty. 
THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, WITH RESPECT TO THE
PROGRAM, THE PROGRAM MARKS, OR THE SERVICES PROVIDED BY NYCE PURSUANT TO THE
PROGRAM, AND NYCE SPECIFICALLY DISCLAIMS ALL WARRANTIES, INCLUDING ANY IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR
NONINFRINGEMENT.  Nothing contained in
the SUM Program Rules, the Rules, or this Amendment shall constitute such a
warranty.

 

9.2  No Liability.  Program Member acknowledges
and agrees that NYCE is receiving limited compensation for administering the
Program, and as a result of such limited compensation, NYCE will have no
liability to, or duty to indemnify, any Participant, its Designated Processor,
its Cardholders, any Program member or any other Person claiming through any of
the foregoing, for any losses, costs, expenses, fees, claims, liabilities, or
causes of action (including, without limitation, attorneys’ fees and costs), or
any direct, indirect, compensatory, punitive, special, incidental, or
consequential damages (including, without limitation, loss of profits), for any
matter whatsoever which in any way directly or indirectly arises from, is
caused by, or is attributable to, this Amendment and the Program.

 

Section 10.   Fees and Taxes.  The
fees payable to NYCE for the Program shall be as set forth in the NYCE Network
Service Price Schedule, which shall be subject to change from time to
time.  Such fees shall be payable at the
time and in the manner set forth in the Rules.  Participant shall be
responsible for the payment of all taxes, fees, assessments, charges and
similar amounts imposed or assessed by any federal, state or local governmental
entity arising from or incidental to Participant’s use of or access to the
Program; provided, however, the foregoing shall not apply to the extent such
taxes, fees, assessment or charges are based upon the net income of NYCE.

 

Section 11.  Cessation.  NYCE may cease or suspend Program Member’s
access to the Program, in whole or in part, upon such notice as shall be
practical and reasonable under the circumstances, in the event that:  (a) fulfilling any of NYCE’s obligations
hereunder, violates, or in its reasonable opinion is likely to violate, any
Applicable Law; (b) NYCE receives instructions from a governmental entity
having authority over the business of NYCE or Program Member instructing NYCE
to cease access to all or any portion of the Program to Participant; (c) NYCE
reasonably concludes that continued access to the Program may have a material
adverse impact upon the Program, the NYCE Network, NYCE, or other Participants
or Program members; or (d) NYCE reasonably believes that a Regulatory
Agency may proceed against NYCE as a result of the Program.  Program Member acknowledges that, under
critical circumstances, little or no notice may be deemed practical or
reasonable.

 

61

 

Section 12.  Termination.

 

12.1  Termination for
Convenience.  Participation
in the Program may be terminated without cause upon at least ninety (90) days’
prior written notice (a) by Program Member or NYCE or (b) following
notice of termination of the Program by NYCE. 
In addition, either party may terminate participation in the Program
upon written notice provided within thirty (30) days of the effective date of
this Amendment.

 

12.2  Termination for Cause.  Program Member’s participation the Program
may be terminated for good cause by NYCE. 
Any such termination shall be effective thirty (30) days after NYCE
provides Program Member notice of such termination, unless NYCE determines that
it is necessary to make termination immediately effective in order to protect
the NYCE Network, other Participants, other Program members, or NYCE from
substantial harm.  “Good cause” for
termination shall include, without limitation: (a) a determination by NYCE
that Program Member is in violation of the Rules, the SUM Program Rules, and/or
this Amendment, where such violation continues for ten (10) days after
notice thereof; and/or (b) failure to pay when due any Program fees,
charges, or other amounts owed by Program Member, where such failure continues
for three (3) Business Days after notice thereof.

 

12.3  Automatic Termination.  Program Member’s participation in the Program
will terminate automatically upon termination or expiration of Program Member’s
participation in the NYCE Network.

 

12.4  Responsibilities Upon
Termination.  Upon
termination of Program Member’s participation in the Program, Participant will:
(a) immediately cease all use of the Program Marks and all materials and
property provided by NYCE, and destroy or return all such property, as
prescribed by NYCE; (b) not be entitled to a refund of any fees, charges,
or other amounts paid to NYCE; and (c) remain liable for meeting all
financial and other obligations arising from its participation in the Program
(including the payment of all applicable fees, charges, and other amounts)
which may have accrued prior to the termination.

 

Section 13.  Miscellaneous.

 

13.1  Survival. The rights and duties of the
parties set forth in Sections 6, 8, 9, 10, 12, and 13 shall survive the
termination or expiration of this Amendment.

 

13.2          Notice.  All notices and other communications which
may be given or are required to be given to a party to this Amendment shall be
in writing and shall be deemed to have been properly given (a) upon
receipt if delivered by hand, (b) upon receipt if faxed, (c) upon
receipt if deposited on a prepaid basis with a nationally recognized express
courier for next Business Day delivery, or (d) three Business Days after
being deposited in the United States mail, first class, postage prepaid, to the
address (or fax number) of the party that follows (or to such other address or
fax number as such party may specify by like notice):

 

	
  To
  NYCE:

  	
   

  	
  NYCE
  Payments Network, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  400
  Plaza Drive, 2nd Floor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Secaucus,
  New Jersey 07094

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:
  Contract Administration

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:
  (201) 330-3374

  
	
   

  	
   

  	
   

  
	
  To
  PARTICIPANT:

  	
   

  	
  The
  address (or fax number) provided to NYCE in writing by PARTICIPANT and
  specifically designated  as

  

 

62

 

	
   

  	
   

  	
  “Address
  for Legal Notice” or, if none is provided, then to the “Primary Contact” of
  PARTICIPANT.

  

 

13.3        Right to
Information. Program Member shall cooperate with NYCE and provide
NYCE with all information and assistance reasonably requested by NYCE to (a) successfully
administer the Program and (b) respond to any inquiries or complaints from
Program Member, any other Program members, Participants, their respective
customers.

 

63

 

EXHIBIT C

Presto Services

 

Section 1.  Product.  Subject to the timely fulfillment by
Participant of its obligations and responsibilities under this Addendum and the
Agreement, NYCE will furnish to Participant, and Participant will obtain from
NYCE, the Presto services set forth herein (the “Presto Services”) in
accordance with the terms and conditions of this Addendum, the Agreement, the
NYCE Network Operating Rules and the Presto!
Network Requirements.

 

Section 2.  Definitions.  Capitalized terms used herein and not
otherwise defined herein shall have the meaning set forth in the Agreement or
Network Requirements. As used in this Addendum hereinafter:

 

“Presto! Network Requirements” means the bylaws, articles of
organization, agreements, operating rules, standards, procedures, regulations,
policies, specifications and other requirements of the Presto!
Network applicable to Participant in connection with its receipt of Presto
Services, all of which may be amended from time to time in the sole discretion
of the Presto! Network. The Presto! Network Requirements are incorporated into this
Addendum by reference as if they were fully set forth herein.

 

Section 3.  Responsibilities of Participant.  In addition to the rights, duties,
obligations and responsibilities of Participant set forth in this Addendum, the
Agreement, and the Presto! Network
Requirements, Participant agrees as follows:

 

3.1 Participant hereby represents, warrants and
covenants that it has met, and will continue to meet, all requirements established
from time to time by the Presto! Network for participation in, or obtaining,
the Presto Services. Participant will comply with all provisions of the Presto!
Network Requirements. Participant hereby acknowledges that it has received and
thoroughly examined the Presto! Network Requirements. Participant will provide
to NYCE any information reasonably requested by NYCE (including, but not
limited to, financial information and periodic certifications), to assist NYCE
in determining whether Participant is (a) in compliance with all
provisions of the Presto! Network Requirements, (b) operating in a safe
and sound manner, and (c) likely in any material respect to endanger the
existence or operation of NYCE. Participant shall abide by and comply with
procedures and policies established by NYCE from time to time with regard to
Presto Services transactions and provided in writing to Participant, including
those procedures and policies as set forth in the Network Requirements.

 

3.2 Participant will effect settlement through NYCE as
Participant’s processor to the Presto! Network
and in accordance with the Presto! Network Requirements for all Presto! Network
transactions. Settlement with NYCE shall be made in accordance with NYCE’s
customary practices and procedures in effect from time to time, subject to such
modifications as may be necessary to accommodate any Presto!
Network transactions. NYCE may effect settlement and any necessary financial
adjustments in the same manner as it effects settlement and financial adjustments
for Participant with respect to NYCE Network Transactions. Participant shall
take all steps reasonably required to enable it to participate in the
settlement process for! Network
transactions involving its cardholders, and to settle with NYCE for Presto! Network transactions involving its cardholders. NYCE
shall not be obligated to make settlement with the Network in respect of
authorized Presto transactions except to the extent that Participant has
effected settlement with NYCE in respect thereof in immediately available
funds.

 

3.3 Participant shall provide NYCE with the information
and data in its possession and/or control, in such form and at such times, as
is necessary for NYCE to comply with the Presto! Network
Requirements, or as otherwise reasonably required by NYCE to provide the Presto
Services. Participant shall provide NYCE with any information or documents
requested by the Presto! Network for purposes of
investigating an error involving any Presto Services transactions. Participant
agrees to use the NYCE designated adjustment system and procedures for purposes
of effecting adjustments arising from Presto! Network
transactions unless such Presto! Network
has alternate requirements.

 

3.4 Participant shall comply with all Presto! Network Requirements in connection with any
distribution, use or disclosure of any advertising, promotional, or press
release materials, or any other form of disclosure relating to any Presto
Services which make reference to trademarks, service marks, trade names, logos,
or other items which may associate the Presto! Network
with any services provided by Participant, or which makes reference to
Participant’s relationship with the Presto!
Network. Participant acquires no interest in or right to use any trademarks,
service marks, logos, or trade names of the Presto! Network
except to the extent, if any, permitted by the Presto!
Network 

 

64

 

Requirements.

 

3.5 With respect to Participant’s Cards used to initiate
Presto Services transactions, Participant shall provide NYCE and/or the Presto! Network with any and all requested information that
it has within its possession or control to enable the Presto!
Network to generate a cardholder transaction receipt as required by Applicable
Law.

 

3.6 Participant shall be responsible for (a) the
authorization of each Presto! Network
transaction subject to this Addendum which is initiated by Participant’s
cardholders and (b) settlement of all (i) approved Presto! Network transactions which are initiated by one of
its cardholders.

 

3.7   As between
NYCE and Participant, NYCE assumes no obligations, responsibilities, duties or
liabilities under the Presto! Network
Requirements and Participant’s sole remedy for any claims arising therefrom shall
be against the Presto! Network. Participant is
solely responsible for ensuring that its equipment and systems that support its
Cards are capable of operating in the Presto!
Network, and for complying with the Presto!
Network Requirements. Participant will not be permitted to obtain any Presto
Services through NYCE until it satisfactorily meets all testing, certification,
and other technical requirements pertaining to the Presto Service in question
as established from time to time by NYCE and/or the Presto!
Network. Participant shall bear all expenses incurred by it to enable it to
comply with the Presto! Network Requirements,
whether such expenses are for hardware or software modifications or for any
other cost to achieve such compliance.

 

3.8 
Participant shall (a) audit, balance, verify and reconcile, as the
case may be, all reports pertaining to the Presto Services and (b) promptly
notify NYCE of any errors in the foregoing or unreconciled out-of-balance
conditions not later than the close of business on the next Business Day after
receipt of the applicable report.

 

3.9 Participant will route all Presto Services
transactions to NYCE for processing.

 

Section 4.  Fees.  The NYCE fees for providing the Presto
Services are set forth on the NYCE Network Services Price Schedule and are
subject to change from time to time upon 30 days notice. In addition to such
amounts payable to NYCE for the Presto Services, Participant will pay to the Presto! Network all fees (including without limitation,
interchange and switch fees), fines, assessments, royalties, penalties, charges
and other amounts due by Participant under the Presto!
Network Requirements, as the same may change from time to time. Participant
will also reimburse NYCE for all fees, charges, royalties, assessments, costs,
expenses, penalties, fines and sanctions assessed against NYCE by the Presto! Network (or Participant’s pro-rata portion, if
applicable) as a result of providing the Presto Services to Participant and/or
Participant’s participation in, or access to, the Presto!
Network; provided, however, Participant shall not be obligated to reimburse
NYCE for any of the foregoing to the extent, if any, due solely to the failure
of NYCE to comply with the Presto! Network
Requirements.

 

Section 5.  Cessation.   In the event that (a) fulfilling
any of NYCE’s obligations hereunder, violates, or in its reasonable opinion is
likely to violate, any Applicable Law; or (b) Participant has failed to
fulfill any payment obligations to NYCE, whether arising under this Addendum or
otherwise, or Participant has unsatisfactory credit with NYCE; or (c) NYCE
receives instructions from a governmental entity having authority over the
business of NYCE or Participant instructing NYCE to cease providing all or any
of the Presto Services to Participant; or (d) Participant ceases regular
business operations; or (e) NYCE receives notice from any Presto! Network to which NYCE is providing Participant with
access hereunder that NYCE is to cease providing Participant with access to such
Presto! Network, then NYCE may cease or suspend access to, or withhold
providing, Presto Services, including any implementation or maintenance
thereof, as follows upon such notice as shall be practical and reasonable under
the circumstances (it being understood that under critical circumstances,
little or no notice may be deemed practical or reasonable).

 

Section 6.  Termination.

 

6.1 This Addendum may be terminated by Participant for
any reason upon ninety (90) days notice.

 

65

 

6.2 Upon the termination of this Addendum by NYCE, (a) NYCE,
at its option, may upon notice to Participant declare all amounts due and to
become due, immediately due and payable, (b) Participant shall immediately
cease all use of the Presto Services, and (c) Participant shall remain
liable for all financial and other obligations arising under the Addendum which
may have accrued prior to or after termination of this Addendum.

 

6.3 The rights and duties of the parties set forth in Sections
4, 7 and 8 shall survive the termination or expiration of this Addendum.

 

Section 7.
Warranties.

 

7.1 NYCE represents and warrants to Participant, but not
to any other party, that NYCE will comply in all material respects with (a) the
technical specifications issued by the Presto! Network
and pertaining to the Presto Services, and (b) Applicable Law pertaining
to the conduct of NYCE’s business as a processor to the Presto! Network.
Notwithstanding the foregoing, NYCE may amend, modify, enhance, update or
provide appropriate replacements for all or any of the Presto Services at any
time without material loss of functionality, to improve such services or to
facilitate the continued economic provision of such Services.

 

7.2  EXCEPT AS
SPECIFICALLY SET FORTH IN SECTION 7.1, THERE ARE NO WARRANTIES,
EXPRESSED OR IMPLIED, WITH RESPECT TO THE PRESTO SERVICES, AND NYCE
SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES, INCLUDING ANY IMPLIED WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT. IN
THE EVENT THAT ANY SERVICE FAILS TO CONFORM TO THE WARRANTIES SET FORTH IN
SECTION 9.1, THE SOLE RIGHT OF Participant, AND THE SOLE
RESPONSIBILITY OF NYCE IN RESPECT THEREOF, SHALL BE FOR NYCE TO EXERCISE
COMMERCIALLY REASONABLE EFFORTS TO CAUSE THE SERVICE TO CONFORM TO THE
APPLICABLE TECHNICAL SPECIFICATIONS OR THE APPLICABLE LAW THAT SPECIFICALLY
APPLIES TO NYCE AS A PROCESSOR TO THE PRESTO! NETWORK.

 

Section 8.
Limitation of Liability.

 

8.1 THE SOLE LIABILITY OF NYCE TO Participant AND ANY OTHER
PERSON FOR ANY CLAIMS ARISING OUT OF OR RELATED TO ERRORS OR OMISSIONS IN
PROVIDING ANY PRESTO SERVICES, NOTWITHSTANDING THE FORM OF SUCH CLAIMS,
SHALL BE TO UNDERTAKE COMMERCIALLY REASONABLE EFFORTS TO CORRECT THE ERRORS OR
OMISSIONS AS SOON AS REASONABLY PRACTICAL AFTER NYCE HAS BEEN NOTIFIED BY
Participant THEREOF. THE SOLE LIABILITY OF NYCE TO Participant AND ANY OTHER
PERSON FOR ANY CLAIMS ARISING FROM OR RELATING ANY INTERRUPTIONS IN OR DELAYS
IN PROVIDING THE PRESTO SERVICES, REGARDLESS OF THE FORM OF SUCH CLAIM,
SHALL BE TO UNDERTAKE COMMERCIALLY REASONABLY EFFORTS TO MAKE SUCH SERVICES
AVAILABLE AS SOON AS PRACTICAL AFTER NYCE HAS BEEN NOTIFIED BY Participant
THEREOF.

 

8.2 UNDER NO CIRCUMSTANCES SHALL NYCE BE LIABLE TO
Participant OR ANY OTHER PERSON FOR MONEY DAMAGES RESULTING IN OR FROM CLAIMS
MADE BY Participant OR ANY OTHER PERSON FOR ANY CAUSES COVERED BY SECTION 8.1
OF THIS ADDENDUM. THE SOLE AGGREGATE LIABILITY OF NYCE TO Participant AND
ANY OTHER PERSON ARISING UNDER THIS ADDENDUM FOR MONEY DAMAGES RESULTING FROM
ALL CLAIMS MADE BY Participant OR ANY THIRD PARTY FOR CAUSES NOT COVERED BY SECTION 8.1,
SHALL NOT EXCEED THE LESSER OF (A) THE AMOUNT OF ACTUAL DAMAGES FINALLY
AWARDED TO Participant IN RESPECT OF SUCH CLAIMS BY A COURT OF COMPETENT
JURISDICTION, AND (B) AN AMOUNT IN THE AGGREGATE NOT GREATER THAN THREE
TIMES THE AVERAGE OF THE HIGHEST THREE MONTHS TOTAL MONTHLY CHARGES (WHICH
CHARGES SHALL CONSIST OF RECURRING MONTHLY SERVICE AND TRANSACTION FEES,
EXCLUDING CHARGES FOR TELECOMMUNICATIONS AND PASS-THROUGH CHARGES) PAID BY
Participant TO NYCE DURING THE IMMEDIATE 12 MONTHS PRECEDING THE MONTH IN WHICH
SUCH DETERMINATION IS MADE, OR SUCH LESSER NUMBER OF MONTHS IF 12 MONTHS HAVE
NOT ELAPSED. SUCH DAMAGES SHALL BE THE FULL EXTENT OF NYCE’S AGGREGATE MONETARY
LIABILITY UNDER THIS ADDENDUM REGARDLESS OF THE FORM IN WHICH ANY SUCH
LEGAL OR EQUITABLE CLAIM OR ACTION MAY BE ASSERTED AGAINST NYCE AND SHALL
CONSTITUTE Participant’s AND ALL OTHER PERSONS’ SOLE MONETARY REMEDY.

 

66

 

8.3 AS USED IN THIS SECTION 8, ALL
REFERENCES TO NYCE SHALL INCLUDE NYCE, EACH OF ITS AFFILIATES AND EACH OTHER
PERSON WHO PROVIDES NYCE WITH ANY PORTION OF THE PRODUCTS. ANY PERSON WHO
PROVIDES NYCE WITH ANY PORTION OF THE PRESTO SERVICES SHALL NOT BE LIABLE
DIRECTLY OR INDIRECTLY TO Participant OR ANY OTHER PERSON (OTHER THAN NYCE) FOR
MONETARY DAMAGES IN RESPECT OF ANY PORTION OF THE SERVICES THAT THEY PROVIDE TO
NYCE HEREUNDER.

 

8.4 IN NO EVENT WILL NYCE BE LIABLE FOR ANY
SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCURRED IN CONNECTION
WITH, OR ON ACCOUNT OF ENTERING INTO, THIS ADDENDUM AND/OR PROVIDING ANY PRESTO
SERVICES, EVEN IF NYCE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

Section 9.  Indemnification.  Participant shall indemnify, defend and hold
harmless NYCE, its Affiliates, and their shareholders, directors, officers,
employees and agents (the “Indemnified Parties”), from and against any and all
losses, costs, expenses, fees, claims, damages, liabilities and causes of
actions (including, but not limited to, reasonable attorney fees and
disbursements) of third parties resulting or arising from: (a) Participant’s
failure to abide by or perform any obligation imposed upon Participant under this
Addendum, except where such failure is caused solely by NYCE’s failure to
fulfill its obligations under this Addendum; (b) violation by Participant
of any Applicable Law; (c) the willful misconduct, fraud, criminal
activity, intentional tort or negligence of Participant or any other Person
(other than NYCE) involving use of the Presto Services; (d) the actions,
omissions or commissions of Participant’s agents and/or third party processors
relating to the Presto Services; (e) errors or omission in data,
information and/or instructions provided by Participant to NYCE in connection
with obtaining the Presto Services; (f) death or injury to persons or
damage to property arising from use or receipt of the Presto Services; (g) breach
or violation of any of the applicable Presto! Network Requirements by
Participant, its Processors, agents and/or representatives, except where such
breach or violation is caused solely through the fault of NYCE, (h) Participant’s
receipt of the Presto Services, (i) Participant’s access to and/or
participation in the Presto! Network, (j) any actions or inactions by the
Presto! Network arising from or related to, directly or indirectly, Participant’s
use of the Presto Services or Participant’s use of or participation in the
Presto! Network, or any failure of any Presto! Network to fulfill any
obligations to Participant, (k) the use of any of the Presto Services by
one or more customers of Participant, or (l) if applicable, the
sponsorship of Participant as a member of a Presto! Network. Participant shall
be provided with prompt notice of any such claims, and given full authority and
assistance for the defense of any such claims; provided, however, Participant
shall have no authority to settle any claim against any Indemnified Party without
the prior written consent of such Indemnified Party (which consent shall not be
unreasonably withheld).

 

67

 

STRATEGIC NETWORK SOLUTIONS SERVICES SCHEDULE

 

The following terms and
conditions shall govern the provision of the Strategic Network Solutions
Services from Metavante to Customer.

 

SNS Services. 
Customer desires to receive from Metavante, and Metavante agrees to
provide, the Strategic Network Solution services (“SNS Services”) listed in Exhibit B
hereto, as such SNS Services are described in and subject to the assumptions
stated in Exhibit A attached hereto as may be modified from time to
time by the mutual agreement of the parties and evidenced by additional
exhibits which shall automatically be incorporated in and made a part of the
Agreement.  Customer shall pay for the
SNS Services in accordance with the provisions of the fee schedule which is
made a part of Exhibit B, one-time fees shall be paid in full upon
completion of the installation.  From
time to time, Customer may request Metavante to provide SNS Services for
additional affiliates or locations. 
Metavante shall provide SNS Services for additional affiliates or
locations of Customer according to such fees as are then mutually agreed upon
by Metavante and Customer and set forth in an Exhibit to this
Schedule.  Metavante may adjust the fees
it charges for the SNS Services provided hereunder not more than once in any
calendar year.

 

Customer acknowledges and
agrees that it shall obtain the SNS Services provided under this Schedule until
the Agreement expires or is terminated in accordance with the Termination
provisions of the Agreement, in which case the Termination Fee amount (plus any
unamortized network installation costs) payable shall also apply with respect
to the Services provided hereunder.

 

During the term of this Agreement, it may become
necessary for Customer to upgrade its equipment used in connection with the SNS
Services provided hereunder in order to continue to receive such SNS Services
in a satisfactory manner in accordance with the provisions of this
Agreement.  In such event, Customer
agrees to obtain such upgraded equipment at then current prices or accept such
reduced levels of performance provided by Customer’s existing equipment.  From time to time, changes made by the
Customer may adversely affect overall network performance.  Should the current design become inadequate
to support the needs of the Customer (as a result of Customer-initiated
changes), Metavante will recommend modifications to meet performance
standards.  Customer acknowledges that
these recommendations and implementation of accepted recommendations will be
charged to Customer.  In addition,
Customer agrees to allow Metavante access to its facility in order to perform
the Annual Technology Refresh of its SNS Services, if required.

 

Customer shall be liable to repair or replace
any equipment rented or leased from Metavante by Customer in the event the
equipment is lost, stolen, or damaged while located at Customer’s site or under
Customer’s possession or control, whether or not such loss, theft, or damage is
caused by Customer’s negligence or conduct.

 

68

 

EXHIBIT A

STRATEGIC NETWORK SOLUTION

NETWORK SERVICE DESCRIPTION

 

The following sections (A, B & C) describe
Metavante’s infrastructure environment and apply to all network solutions:

 

A.    Secured Data Center Network Facilities

 

1.     State-of-the-art data
center facilities with network and power source redundancy at the core network
design

 

2.     Minimum level of
service:  Objective is 99.9% uptime for
Metavante’s network infrastructure

 

3.     Independent traffic
isolation managed by firewall architecture

 

4.     Physical and logical
security – 24/7/365

 

5.               Redundant Metavante Metropolitan Area
Network (MAN) connectivity: high-speed network component with dual entrance /
dual Central Office connection

 

6.     Linkage from carrier
network to Metavante’s geographically diverse data centers

 

B.    Disaster Recovery

 

1.     Customer and inter-data center traffic is rerouted from its
normal production target site to one or more designated processing recovery
sites

 

2.     Annual disaster recovery
exercise (Excluding Unmanaged and Remote Access VPN)

 

3.     Test results published in
quarterly bulletin

 

4.     Plan brief available upon
request

 

5.     Disaster recovery network
monitored 24/7/365 by certified staff (DRI International Certification)

 

C.    Information Security Services

 

1.     24/7/365 management of
perimeter network intrusion by Metavante’s Information Security Operations team

 

2.     Event investigation and
notification if/when client is impacted

 

SNS – Managed Solution

 

The Managed Solution includes all of the service
components listed above plus: (unless noted)

 

69

 

D.    Fault Management – (Support Services)

 

1.               24/7/365 proactive network management
with automated ticket services through Metavante’s Network Operation Center
(NOC)

 

2.     Single point of contact
(SPOC) for problem coordination, escalation, and resolution with all carrier
and equipment partners

 

3.     Polling at periodic
intervals

 

4.     SNMP management and
handling for fault detection

 

5.     Fault isolation for managed
locations

 

6.     Out-of-band management and
support

 

7.     Automated e-bonding to
(select) primary carrier for ticketing and testing – (excluding VPN Management)

 

8.     Ability to notify initial
fault immediately with automated fault notification (AFN) via group email/page –
at client’s request.

 

9.     Customer notification
objective: notify within 15 minutes of client network fault (with periodic
updates)

 

10.   Letter of Agency (LOA)
required – (Managed Solution and VPN Management only)

 

11.   Server and switch/gateway
monitoring – (IPT Management only)

 

E.     Performance Management

 

1.     SNS Operations Portal: Extranet accessible – available
24/7/365 (excluding maintenance outage window); ability to access self-help
ticketing system, network performance reports, network product offering
materials, etc.

 

2.     Implementation and
(optional) client training session scheduled by client

 

3.     Real-time network
performance (utilization data, device health and performance) reporting

 

4.     Monthly network performance
report – (excluding VPN Management)

 

5.     Server and switch/gateway
are managed – (IPT Management only)

 

F.     Asset Management

 

1.     Design verification of
extended WAN design

 

2.     Design verification of ISP
connection and Firewall / LAN architecture – (VPN Management only)

 

3.     Access router setup –
staging and configuration at multiple, geographically diverse data centers

 

4.     Ongoing maintenance of
client inventory database

 

5.     Centralized repository for
all client network information

 

G.    Configuration & Change
Management

 

1.     Stored router
configurations with automated updates

 

70

 

2.     Timely response to
router-related CERT (Computer Emergency Readiness Team) advisories

 

3.     Ongoing IOS maintenance

 

4.     Enhanced Encryption – IPSec
3DES (VPN Management via Internet and Total Solution via private network)

 

5.     Configuration of client-approved
dial plan and basic call handling – (IPT Management only)

 

6.     Configuration of Unity voicemail for IPT users – (IPT Management only)

 

7.     Server patch notification
and staging (IPT Management only)

 

H.    Implementation (Limited)

 

1.     Design configuration and
implementation of a management PVC to the main Operation Center

 

 

SNS – Total Solution

 

The Total Solution includes all of the service
components outlined above in the Managed Solution plus:

 

I.      Implementation (Full)

 

1.               Single point of contact (SPOC) for
ordering, staging, and implementing managed device(s) (hardware, software,
primary and back-up network circuits), cables, inside wiring requirements, and
ancillary equipment per quote

 

2.               Design configuration and implementation
of equipment and network technology

 

3.               End-to-end network project management

 

4.               30-day extended support from Metavante’s
implementation team – (IPT Management only)

 

J.     Design Services

 

1.               Detailed WAN design development,
validation, and documentation – (excluding VPN Management)

 

2.               Design is sized for memory, processing
and port capacity for all Metavante-managed client premise equipment (CPE)

 

3.               Coordinate all managed-technology
partners for quotation services – (excludes ISP for VPN Management which is
provided by client)

 

4.               Customer transport: Frame relay,
Asynchronous Transfer Mode (ATM) circuits, or VPN as specified in price quote

 

5.               Detailed design that meets clients’
business requirements (based on results of assessment) - (IPT Management only)

 

71

 

6.               Hardware redundancy for call processing –
(IPT Management only)

 

7.               Development and delivery of client
implementation plan – (IPT Management only)

 

8.               Development of end-user training
requirements and delivery of one on-site training session to client designee(s)
– (IPT Management only)

 

9.               Development of back-up procedures – (IPT
Management only)

 

K.    Equipment and Maintenance

 

1.               Effective cost management plan

 

2.               Cisco SMARTNET maintenance 24/7/4 for
onsite services to Operation Center location(s)

 

3.               Cisco SMARTNET maintenance 24/7/NBD for
onsite services to non-Operation Center location(s)

 

4.               Annual Technology Refresh (ATR) – annual
client equipment (hardware & software) review and upgrade to accommodate
overall product standardization and capacity for Metavante product options

 

L.    Circuit Administration

 

1.               Single point of contact (SPOC) for
circuit ordering and installation with all vendors

 

2.               Ongoing review and maintenance of client
inventory database (for event correlation, reporting, and billing purposes)

 

3.               Billing system coordination and oversight
with all vendors

 

M.   Primary Circuit Redundancy

 

1.               Automated activation of circuit failure
protection using ISDN or VPN services between client primary location(s) and
Metavante data center at time of primary circuit outage. (All Metavante SLA’s
for network access are NOT valid during the use of VPN for primary circuit
failure protection.)

 

2.               Periodic dial-up testing (for
connectivity) i.e., 1MB, ISDN

 

N.    Network Health Services

 

1.               Periodic capacity planning consultations

 

2.               Assists clients to identify
cost-effective ways to increase capacity

 

3.               Error (Threshold) analysis

 

72

 

VPN – Management

 

VPN Management includes the service components
listed above except where noted in the service description.

 

Under certain circumstances, a VPN-Managed Solution
may be considered. In addition to meeting business criteria, a review of client
needs (including Centralized Gateway Service), risk assessment, and utilization
analysis must be completed prior to electing and implementing this solution.

 

In addition, please note:

 

L.     Circuit Administration – not included

 

N.    Network Health Services – not included

 

73

 

EXHIBIT A

STRATEGIC NETWORK SOLUTION

NETWORK
ASSUMPTIONS

 

1.     From
time to time, changes made by the Customer may adversely affect overall
Customer network performance. Should the current design become inadequate to
support the needs of the Customer (as a result of client-initiated changes),
Metavante will recommend modifications to meet performance standards. Customer
acknowledges that these recommendations and implementation of accepted
recommendations will be charged to Customer.

 

2.     Customer
agrees that initial scope modifications may delay implementation of the SNS
Services or require Metavante to revise pricing, upon Customer’s approval of
such fees associated with, but not limited to the following (during the
implementation process): (i) introduction of a new application into the
network design that is bandwidth intensive, thereby requiring a re-design; (ii) a
location or component was omitted and Metavante must incorporate it into the
WAN design; (iii) Incorrect client installed cabling, cable shortage or
full conduits at client-site; (iv). Local Exchange Carrier (LEC) technical
resource shortage or central office facility problem.

 

3.     All
additional changes or modifications to the SNS services provided to client
shall be provided under an amendment to the Agreement with additional exhibits
to the schedule.

 

4.     One-time
implementation fee shall be paid (or begin amortization) upon completion of
each site installation (for the billing month in which it occurred).

 

5.     Payment
for equipment, circuits, and services are due upon receipt of equipment or date
of installation; (for the billing month in which it occurred).

 

6.     Inside
Wiring Charges: This is an estimate of costs to provide inside wiring from the
minimum entry point to the router location. Additional charges may also include
additional trip charges and unforeseen site issues. Charges are billed after
Metavante has been billed by appropriate vendors, and may be as much as two
months after actual completion of work.

 

7.     If/when
a client’s Operations Center fails over to a back-up site (alt op center) with
an ISDN-only connection (no-frame relay supporting the router), client agrees
to pay all fees associated with ISDN service, including usage.

 

8.     Metavante
agrees to pay all fees associated with ISDN service, including usage, in the
event the ISDN service is utilized by Metavante to provide dial-backup capacity
due to a frame relay circuit failure. In the event ISDN service is unavailable
for Customer’s location, then no SNS backup will be provided. This applies to
SNS Total Solution clients only.

 

9.     UCC
charge is an FCC mandated charge - see further explanation of charges below:

 

10.   Federal
Universal Connectivity Charge (UCC): The Federal Communications Commission
(FCC) established a Universal Service Fund (USF) to provide telecommunications
services to clients in rural areas and to low- income clients; and 

 

74

 

advanced services such as
Internet access, to schools, libraries and health care providers.   AT&T and other carriers are required to
contribute to the USF. Since January, 1998, AT&T has recovered this
contribution, and its associated administrative costs, through a Universal
Connectivity Charge (UCC). These rates are subject to fluctuation.  All clients are responsible for paying this
fee.

 

11.  Metavante
may adjust fees it charges for the SNS services provided not more than once in
any calendar year.

 

12.  During
the migration period, there is a 60-day billing period overlap of both the SNS
solution (Internetwork WAN) and the network billing (Communication) charges
once the SNS solution is activated.

 

13.  Disconnect
fees are charged in accordance with carrier rates for location moves (applies
to Total Solution clients).

 

14.  Customer
agrees to pay all shipping charges associated with the return of any Metavante
equipment. A fee equivalent to twelve (12) months of equipment fees will be
assessed to Customer for unreturned or damaged equipment. The proper packaging
and shipment tracking is the responsibility of the Customer. All items
originally included in the Metavante install must be returned. This includes
all, or some of the following: router(s), router module(s), modem(s), power
supply(s), Cisco Serial Cable(s), patch cables and any other items included in
the install. Failure to return all items will result in the following charges:

 

Router & Module(s) -
equivalent to twelve (12) months of equipment fees Power Supply - $100 or
current retail value (whichever is less) Modem w/power supply - $125 or current
retail value (whichever is less) Cisco Serial Cable - $100 or current retail
value - (whichever is less)

 

75

 

All
items must be returned within 60 days of the disconnection notice.

 

In the event Metavante’s
equipment is removed by Metavante’s vendor, (at the expense of Metavante), a
$750.00 charge will be assessed to Customer.

 

Please Note: Equipment billing
will not be turned off until all items are returned, or a buy-out is completed
for lost equipment.

 

15.  The
term of the Network Services shall be coterminous with the term of the
Agreement.  In the event that Network
Services are terminated sooner by Customer or by Metavante due to Customer’s
breach, Customer shall pay Metavante a termination fee equal to eighty percent
(80%) of the Estimated Remaining Value of the Network Services, as liquidated
damages and not as a penalty.

 

16.  PC
software upgrade may be needed with this SNS solution to provide a complete
overall infrastructure solution.

 

17.  Customer
agrees to designate a network technical contact for all SNS product
performance.

 

18.  Customer
agrees to allow Metavante access to its facility in order to perform the Annual
Technology Refresh of its SNS Services, if required.

 

19.  When
extended support is provided for non-Metavante managed environments (and when
the root cause is determined to be non-Metavante related), an hourly rate of
$100.00/hour applies and will be billed to client.

 

20.   Customer
will have the option to purchase rented equipment from Metavante for $1 after
that equipment has been rented from Metavante for four (4) years or
longer.  Customer may initiate such
requests in December of each year. 
If customer is purchasing Cisco equipment from Metavante:

 

·      Metavante’s annual technology
refresh (ATR) program will not be included once the purchase takes place.

·      Customer is required to
upgrade or replace its equipment to ensure it stays within Cisco supported
levels.

·      Customer is required to have
(can be purchased through Metavante or a third party) 7x24x365 onsite Smartnet
Maintenance

 

21.  Customer
who purchases Cisco equipment directly from Metavante can also purchase a one (1) year
or three (3) year term for Smartnet maintenance.  This will be determined during the design and
proposal phase.

 

·      One
year term: Customer pays for first year maintenance upon completion of
project.  Customer will be automatically
billed each year to renew the annual maintenance

 

·      Three
year term: Customer pays for three (3) years of maintenance upon
completion of project. Customer will receive a new proposal just prior to the
end of the three (3) year term for renewal of maintenance.  Customer has the option of renewing for an
additional three (3) years or going year to year.

 

76

 

EXHIBIT B

STRATEGIC NETWORK SOLUTION

TEAM
FINANCIAL # 050

 

Managed VPN –
PHDE443

Internetwork / WAN

 

Managed Network Services – Solutions and Options

 

The detail for the solution and optional service(s) selected below
is reflected in the Exhibit B - price proposal.

 

Wide Area Network (WAN) Solutions

 

x   Total Solution – Fully-Managed

 

o    Total Solution – Backbone-Only

 

o    Managed Solution

 

o    IPT Managed Solution

 

o    VPN Managed Solution

 

o    VPN Unmanaged Solution

 

o    Fault Management Solution

 

Local  Area
Network (LAN) Solutions

 

o    LAN / Server Monitoring

 

Other
Technology Services

 

o    Managed Security Services (SecureWorks)

 

o    Internet Fraud Solutions (RSACyota)

 

o    Managed Email Services (USA.NET)

 

The following sections address variables within solutions; and include
optional products and services available to SNS clients.

 

77

 

Configuration and Change Management

 

Enhanced Encryption

 

o    DES –
(IPSec) Internet Protocol Security  – a
framework for a set of protocols for security at the network or packet
processing communication

 

o    3DES ( Triple DES) - (IPSec) -  a more robust level of encryption

 

Enhanced Router Management

 

x   Quality of Service (QOS) enabled on routers

 

Centralized Gateway Service (CGS)

 

x   Enables end-to-end IP connectivity
for TN3270 sessions

 

Note:                   PC software
upgrade may be needed with this SNS option to provide a complete overall infrastructure
solution. Please review all criteria for this option before electing (i.e.,
supported nodes)

 

78

 

Primary Circuit Redundancy

 

Enhanced Failover Solution

 

o    Op Center to Op Center – Automated
dial-backup between Operation Centers

 

o            Branch
– Automated dial-backup from branches through client operation centers
(requires additional ISDN circuits between both client’s operation centers)

 

o    ATM – Automated dial-backup from stand alone
ATMs to Metavante data centers

 

o    VPN Redundancy – dual connections to
Metavante’s data centers

 

Equipment and Maintenance

 

Enhanced Equipment Maintenance

 

o    Expedited or faster turn around maintenance
contract on routers

 

IP Telephony (IPT) Management

 

Design

 

o    Augmented staff training

 

o    Additional design redundancy

 

Implementation

 

o    Configuration of Automatic Call Distributor
(ACD) – (call center skill-based routing)

 

79

 

o    Configuration of Interactive Voice Response
(IVR)

 

o    Configuration of Unified Messaging

 

o    Development of alternative voicemail
solutions

 

Operations

 

o   Moves,
Adds, Changes, and Deletes (MAC-D)

 

o    Users

 

o    Phones

 

o    Dial plan

 

o    Voicemail boxes

 

Enhanced Support

 

Automated Fault Notification

 

o    Provides notification to group email or
pager (if supported) of initial network outage

 

80

 

Team
Financial #050

 

SNS -
Total Solution

Fully
Managed Network

Contract
Renewal Quote w/ Upgrade of Branch Ports to 1.544 Mbps

 

Internetwork/WAN

December 5,
2007

 

LABO362

 

Network Design Overview

 

	
   

  	
   

  	
   

  	
   

  	
  Bank Total

  	
   

  	
  Bank Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Nonrecurring

  	
   

  	
  Monthly

  	
   

  
	
  Description

  	
   

  	
   

  	
   

  	
  Price

  	
   

  	
  Recurring Price

  	
   

  
	
  Circuits - Primary / Backup

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  10,529.82

  	
   

  
	
  Premises Equipment and Maintenance Charges (Monthly
  Recurring)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  4,455.88

  	
   

  
	
  Premises Equipment (One Time Purchase)

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
  Annual Maintenance charges on Purchased Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  One-Time Network Implementation Charges

  	
   

  	
   

  	
   

  	
  $

  	
  15,300.00

  	
   

  	
   

  	
   

  
	
  Freight

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
  Metavante Network Management & Diagnostic
  Support

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  4,770.00

  	
   

  
	
  Infrastructure - Core / Disaster Recovery

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  479.40

  	
   

  
	
  UCC Surcharge

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  506.00

  	
   

  
	
  Optional - Centralized Gateway Services - Number of
  LUs Defined

  	
   

  	
  yes

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  IPC / IPCC Management Fee

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Professional Design Service Fee

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Total w/ Non-Recurring
  Installation Charges

  	
   

  	
   

  	
   

  	
  $

  	
  15,300.00

  	
   

  	
  $

  	
  21,041.10

  	
   

  
											

 

*      Metavante still needs to analyze the current
Team Financial existing voice router configuration to identify if any
additional RAM, IOS version upgrade or additional cards (i.e. serial port card
for ATM connectivity) are needed in order to consolidate the (2) routers
down to (1) router.  Team Financial
should be apprised of this potential additional one-time costs that maybe
needed.  Metavante’s Network Team will
work with Team Financial in the next several weeks to perform this
analysis.  Once the Router Consolidation
is done, the Router Rental Fees below would be removed from the SNS Monthly
Recurring fees.  This has been discussed
with Dave Moll and he is fine with it.*

 

Network
Design Line Item Costs

 

	
   

  	
   

  	
   

  	
   

  	
  Bank Total

  	
   

  	
  Bank Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Nonrecurring

  	
   

  	
  Monthly

  	
   

  
	
  Description

  	
   

  	
  Qty

  	
   

  	
  Price

  	
   

  	
  Recurring Price

  	
   

  
	
  Rates per Location

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Metavante Datacenter

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Core Hardware

  	
   

  	
  21

  	
   

  	
   

  	
   

  	
  $

  	
  275.00

  	
   

  
	
  Core Network

  	
   

  	
  1544

  	
   

  	
   

  	
   

  	
  $

  	
  204.40

  	
   

  
	
  Metavante Datacenter Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  479.40

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ops (B050L001)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.088 Mbps Multimedia

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  455.62

  	
   

  
	
  Access Charges

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
  $

  	
  452.00

  	
   

  
	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  907.62

  	
   

  
	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  44.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  128K Automated BRI ISDN Backup Service

  	
   

  	
  3

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  255.00

  	
   

  
	
  Business Line for Router Modem Support

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  45.00

  	
   

  
	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Solution NM - Fully Managed Ops

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  CISCO3825 3825 w/AC PWR, 2GE,1SFP, 2NME, 4HWIC, IP
  Base, 64F/2

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  444.11

  	
   

  
	
  CON-OSP-3825 ONSITE 24x7x4 3825

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  204.17

  	
   

  
	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  2,149.90

  	
   

  

 

81

 

	
  Alt Ops (B050L003)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
  3.088 Mbps Multimedia

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  455.62

  	
   

  
	
  23

  	
  Access Charges

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
  $

  	
  452.00

  	
   

  
	
   

  	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  907.62

  	
   

  
	
   

  	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  44.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
  128K Automated BRI ISDN Backup Service

  	
   

  	
  3

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  255.00

  	
   

  
	
  25

  	
  Business Line for Router Modem Support

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  45.00

  	
   

  
	
   

  	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
  Total Solution NM - Fully Managed Ops

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  27

  	
  CISCO3825 3825

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  434.88

  	
   

  
	
  28

  	
  CON-OSP-3825 ONSITE 24x7x4

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  204.17

  	
   

  
	
   

  	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  2,140.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FISERV (B050L002)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
  64 Kbps Critical

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  117.59

  	
   

  
	
  30

  	
  Access Charges

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  226.00

  	
   

  
	
   

  	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  343.59

  	
   

  
	
   

  	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  22.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
  Business Line for Router Modem Support

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  45.00

  	
   

  
	
   

  	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
  Total Solution NM - Fully Managed Branch

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  175.00

  	
   

  
	
  33

  	
  CISCO2801

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  130.18

  	
   

  
	
  34

  	
  CON-OS-2801 ONSITE 8x5xNBD

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  41.67

  	
   

  
	
   

  	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  757.44

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Branches (B050L004, L006, L009,
  L016)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
  Implementation Fee - Not on site

  	
   

  	
  4

  	
   

  	
  $

  	
  3,000.00

  	
   

  	
   

  	
   

  
	
   

  	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
  1.544 Mbps Multimedia

  	
   

  	
  4

  	
   

  	
  $

  	
  400.00

  	
   

  	
  $

  	
  842.89

  	
   

  
	
  37

  	
  Access Charges

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
  $

  	
  904.00

  	
   

  
	
   

  	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,746.89

  	
   

  
	
   

  	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  88.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
  Business Line for Router Modem Support

  	
   

  	
  4

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  180.00

  	
   

  
	
   

  	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
  Total Solution NM - Fully Managed Branch

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
  $

  	
  700.00

  	
   

  
	
  40

  	
  CISCO2811

  	
   

  	
  4

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  502.24

  	
   

  
	
  41

  	
  CON-OSP-2811 ONSITE 24x7x4

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
  $

  	
  266.68

  	
   

  
	
   

  	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  3,400.00

  	
   

  	
  $

  	
  3,483.81

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Branches (B050L005, L008, L010,
  L013, L015, L020)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42

  	
  Implementation Fee - Not on site

  	
   

  	
  6

  	
   

  	
  $

  	
  4,500.00

  	
   

  	
   

  	
   

  
	
   

  	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
  1.544 Mbps Multimedia

  	
   

  	
  6

  	
   

  	
  $

  	
  600.00

  	
   

  	
  $

  	
  1,264.33

  	
   

  
	
  44

  	
  Access Charges

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
  $

  	
  1,356.00

  	
   

  
	
   

  	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,620.33

  	
   

  
	
   

  	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  132.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45

  	
  Business Line for Router Modem Support

  	
   

  	
  6

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  270.00

  	
   

  
	
   

  	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46

  	
  Total Solution NM - Fully Managed Branch

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
  $

  	
  1,050.00

  	
   

  
	
  47

  	
  CISCO2811

  	
   

  	
  6

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  753.36

  	
   

  
	
  48

  	
  CON-OS-2811 ONSITE 8x5xNBD

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
  $

  	
  250.02

  	
   

  
	
   

  	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  5,100.00

  	
   

  	
  $

  	
  5,075.71

  	
   

  

 

82

 

	
  Branches (B050L011, L014, L017, L019)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  49

  	
  Implementation Fee - Not on site

  	
   

  	
  4

  	
   

  	
  $

  	
  3,000.00

  	
   

  	
   

  	
   

  
	
   

  	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50

  	
  1.544 Mbps Multimedia

  	
   

  	
  4

  	
   

  	
  $

  	
  400.00

  	
   

  	
  $

  	
  842.89

  	
   

  
	
  51

  	
  Access Charges

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
  $

  	
  904.00

  	
   

  
	
   

  	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,746.89

  	
   

  
	
   

  	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  88.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52

  	
  Business Line for Router Modem Support

  	
   

  	
  4

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  180.00

  	
   

  
	
   

  	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  53

  	
  Total Solution NM - Fully Managed Branch

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
  $

  	
  700.00

  	
   

  
	
  54

  	
  CISCO2811

  	
   

  	
  4

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  520.72

  	
   

  
	
  55

  	
  CON-OS-2811 ONSITE 8x5xNBD

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
  $

  	
  166.68

  	
   

  
	
   

  	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  3,400.00

  	
   

  	
  $

  	
  3,402.29

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Branches (B050L021)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56

  	
  Implementation Fee - Not on site

  	
   

  	
  1

  	
   

  	
  $

  	
  750.00

  	
   

  	
   

  	
   

  
	
   

  	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  57

  	
  1.544 Mbps Multimedia

  	
   

  	
  1

  	
   

  	
  $

  	
  100.00

  	
   

  	
  $

  	
  210.72

  	
   

  
	
  58

  	
  Access Charges

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  226.00

  	
   

  
	
   

  	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  436.72

  	
   

  
	
   

  	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  22.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59

  	
  Business Line for Router Modem Support

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  45.00

  	
   

  
	
   

  	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  60

  	
  Total Solution NM - Fully Managed Branch

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  175.00

  	
   

  
	
  61

  	
  CISCO2811

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  130.53

  	
   

  
	
  62

  	
  CON-OS-2811 ONSITE 8x5xNBD

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  41.67

  	
   

  
	
   

  	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  850.00

  	
   

  	
  $

  	
  850.92

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Branches (B050L022, L023)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  63

  	
  Implementation Fee - Not on site

  	
   

  	
  2

  	
   

  	
  $

  	
  1,500.00

  	
   

  	
   

  	
   

  
	
   

  	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  64

  	
  1.544 Mbps Multimedia

  	
   

  	
  2

  	
   

  	
  $

  	
  200.00

  	
   

  	
  $

  	
  421.44

  	
   

  
	
  65

  	
  Access Charges

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
  $

  	
  452.00

  	
   

  
	
   

  	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  873.44

  	
   

  
	
   

  	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  44.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  66

  	
  Business Line for Router Modem Support

  	
   

  	
  2

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  90.00

  	
   

  
	
   

  	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  67

  	
  Total Solution NM - Fully Managed Branch

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
  $

  	
  350.00

  	
   

  
	
  68

  	
  CISCO1841

  	
   

  	
  2

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  205.00

  	
   

  
	
  69

  	
  CON-OS-1841 ONSITE 8x5xNBD

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
  $

  	
  24.00

  	
   

  
	
   

  	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  1,700.00

  	
   

  	
  $

  	
  1,586.44

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Branches (B050L024)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  70

  	
  Implementation Fee - Not on site

  	
   

  	
  1

  	
   

  	
  $

  	
  750.00

  	
   

  	
   

  	
   

  
	
   

  	
  AT&T - Frame Relay / ATM / MPLS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  71

  	
  1.544 Mbps Multimedia

  	
   

  	
  1

  	
   

  	
  $

  	
  100.00

  	
   

  	
  $

  	
  210.72

  	
   

  
	
  72

  	
  Access Charges

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  226.00

  	
   

  
	
   

  	
  AT&T Circuit Subtotal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  436.72

  	
   

  
	
   

  	
  UCC Surcharges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  22.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  73

  	
  Business Line for Router Modem Support

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  45.00

  	
   

  
	
   

  	
  Equipment - Router

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  74

  	
  Total Solution NM - Fully Managed Branch

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  175.00

  	
   

  
	
  75

  	
  CISCO1841

  	
   

  	
  1

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  123.80

  	
   

  
	
  76

  	
  CON-OS-1841 ONSITE 8x5xNBD

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  12.00

  	
   

  
	
   

  	
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  850.00

  	
   

  	
  $

  	
  814.52

  	
   

  
	
   

  	
  Locations
  Subtotal

  	
   

  	
   

  	
   

  	
  $

  	
  15,300.00

  	
   

  	
  $

  	
  20,741.10

  	
   

  

 

83

 

Team Financial #050

 

Revised
7/9/07

 

PHDE443

 

Project
Scope:

 

Project
Description:

 

This project is to
show total network charges using AVPN discounted rates.

 

Branches will use
client owned routers - sending Metavante routers back to Metavante.

 

Management fees
for IP telephony and client router management.

 

Assumptions:

 

Lee’s Summit
location included in final pricing.

 

Disclaimers:

 

Customer Not Ready
(CNR)

 

A “Customer Not
Ready” (CNR) condition occurs when a customer location is not able to accept
circuit installations. 

 

This may be due to
several reasons, such as new construction, re-modeling, environment not secured
(no doors or windows), no power, LEC (Local Exchange Carrier) Technician is
turned away by local on-site contact, local on-site contact is not available, etc.

 

When a “CNR”
condition is encountered, the AT&T due date can only be “pushed out” a
maximum of 15 days.

 

If the LEC
Technician determines there is a “CNR” condition on the subsequent visit, the
circuit order will be cancelled by AT&T and the LEC, and re-issued.  Additional charges for circuit order
cancellations may be billed to the customer. 

 

Also, the normal
35-45 day lead-time for the circuit order and installation process may
jeopardize conversion efforts.

 

84

 

	
  

   

  
	
   

  	
   

  	
   

  	
   

  	
  Date: 

  	
    July 3, 2007

  	
   

  
	
   

  	
   

  	
  Team Financial

  	
   

  	
  Quote Number: 

  	
    Version 2

  	
   

  
	
   

  	
   

  	
  8 West Peoria Street

  	
   

  	
  Quote Expiration: 

  	
         August 30, 2007

  	
   

  
	
   

  	
   

  	
  Paola, Kansas 66071

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  David Moll

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Premium Anti-Phishing & Anti-Pharming
  Solution

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Item:

  	
   

  	
  Product/Service

  	
   

  	
  Quantity

  	
   

  	
  One-Time

  	
   

  	
  Monthly Fee

  	
   

  
	
  1

  	
   

  	
  Premium Level of Phishing Service

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  2,400.00

  	
   

  
	
   

  	
   

  	
  20 annual shutdowns included

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Install with Counter Measures

  	
   

  	
  1

  	
   

  	
  $

  	
  4,000.00

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Asset Size of Client=760 Million

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Pharming Service for Team Financial & Colorado National

  	
   

  	
  2

  	
   

  	
  $

  	
  600.00

  	
   

  	
  $

  	
  300.00

  	
   

  
	
   

  	
   

  	
  Setup per Domain

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Additional Brands= 1

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
  $

  	
  650.00

  	
   

  
	
   

  	
   

  	
  * Colorado National.com

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Additional Shutdowns

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  IP Telephony Management credit effective upon
  implementation

  of both this solution and router consolidation.

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   -900.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
   4,600.00

  	
   

  	
  $

  	
   2,450.00

  	
   

  
																		

 

85

 

Premium and Standard Service Packages

 

(i)        Premium Service includes RSA Cyota’s full phishing
detection service, including web scanning (including news groups), domain
monitoring for the client’s main brand, detecting registration of domains by
others using words similar to the client’s specified brand, spam and abuse
reports, email decoys and email scanning including tens of millions of emails
originating from enterprise email gateways, desktop users and selected large
ISPs every day.

(ii)       Standard Service includes RSA Cyota’s e-mail scanning
phishing detection, including email decoys and email scanning including tens of
millions of emails originating from enterprise email gateways, desktop users
and selected large ISPs every day.  [Note
that the Standard Service may not detect as many phishing attacks nor as
quickly as the Premium Service.]

(iii)      .Pre-configuring each FI at RSA Cyota’s
24X7 AFCC operation,

(iv)      RSA Cyota’s Risk Assessment for each attack,

(v)       Full take down service for phishing and Pharming
attacks,

(vi)      Subscription to RSA Cyota blocking network covering
around 50 million individuals,

(vii)     Reports and analysis per attack,

(viii)    Forensics work where applicable

(ix)       An individualized dashboard for the client

 

(Optional) Deployment of RSACyota’s
Counter-measures

 

·                  The Setup Fee
shall be payable upon completion of Setup Form

·                  An incident is a unique URL, domain or site
(pointing to a specific spoofed or brand abuse web site) with respect to which
RSA Cyota took action to close down or block the domain or site; used
counter-measures, or performed forensic work. Client shall specify as part of the service setup (on
the Service Setup From) whether its explicit consent is necessary prior to
taking action, using counter measures, or conducting forensic work; or whether
it pre-authorizes such actions.

·                  For Premium
and Standard Services pricing covers FI’s main brand and variations on that
same brand. Adding brands shall involve additional fees.

·                  Travel and
related expenses for face-to-face meetings are not included.

·                  All
costs are exclusive of any sales tax where applicable.

·                  Monthly Service Fees shall be paid at the end of each month for the
preceding month, and shall commence upon activation of the service.

·                  All incident counts and payments related to them are made on a
(calendar) quarterly basis. Metavante
shall invoice Client at the end of each Calendar Quarter for the Incident Fees,
if there were more than the Included Incidents in such Calendar Quarter.

 

86

 

Optional Deployment of RSA Cyota’s Counter-measures

 

Basic Service

 

This service package will include:

 

(i)        Cyota’s Risk Assessment for each attack,

(ii)       Full take down service,

(iii)      Subscription to RSA blocking network,

(iv)      Reports and analysis per attack,

(v)       Forensics work where applicable

 

87

 

Service
Description:

 

BASIC “INCIDENT
RESPONSE” SERVICE

 

·                  Initiation of the
service by FI

 

·                  Once a Phishing attack is identified by an FI shall
contact RSA’s 24x7 Anti-Fraud Command Center (“AFCC”) using the e-mail
procedure outline in the setup form. If client is having trouble with
initiation they can contact Metavante PCCC for assistance.

·                  FT shall notify RSA about a phishing attack via by an
email, using the contact information and procedure agreed upon as part of the
setup of the service.

·                  FI shall produce all material outlined in the setup
form and necessary to the AFCC by e-mail as soon as possible.

·                  From that time onwards, the AFCC shall initiate the
Internet Fraud Solution “FraudAction” “Severity Assessment” then “Taking Action”
procedures as explained below.

 

·                  “Severity Assessment”

 

·                  Using pre-defined statistics, models and utilities,
RSA’s 24x7 Anti-Fraud Command Center will perform an evaluation of the attack –
estimating its severity, as well as additional information such as the
accountholder data that might be compromised as a consequence of the
attack.  This evolution will be completed
and delivered to METAVANTE within three hours, and METAVANTE is free to share
such evaluation with the affected FI.

 

·                  “Taking Action” - Shutdown

 

·                  RSA will analyze each attack and identify the
participating spoofed sites and their related ISPs.

·                  RSA will make best efforts by phone, email, fax, and
overnight letter to contact the ISPs and/or the entity responsible for the
spoofed site, on behalf of the FIs and alert them about the spoofed site,
asking to shut it down. If the spoofed site is in a legitimate site, RSA will
also make commercially reasonable efforts to notify the owner of the legitimate
site of the existence of the spoofed page and that the ISP has been
requested to close the site (it should be noted that whenever the attack
originates from a hijacked personal computer it is highly unlikely that RSA
would be able to directly contact the owner of such computer).

·                  Per the FI’s consent, RSA will also attempt to approach each ISP and
send it a cease and desist notice. RSA will notify METAVANTE that the Cease and
Desist letter has been sent on behalf of the FI.

 

·                  “Taking Action” – Forensic Work

 

·                  Per attack RSA will attempt to extract valuable
information from the spoofed website server. While this cannot be guaranteed,
in the past RSA has extracted data,

 

88

 

                        including counters of the number of users that submitted
information to the fraudulent site, and in several cases the actual full list
of stolen data collected by the fraudster (containing the user names,
passwords, PINs etc. of all the phishing victims) was obtained by RSA.

·                  RSA’s forensic work is performed using knowledge RSA
has gathered through its alerts infrastructure (providing an early view of the
technology used in the attack, especially when the fraudster is still in “QA”
mode) and network of customers, allowing it to implement lessons learned from one
attack to another.

 

·                  24x7 Support

 

·                  The service includes 24X7 access to RSA’s Anti-Fraud Command Center.
The fraud specialists at the center will provide support prior to an attack,
during an attack and after the attack as well.

 

89

 

Relevant Provisions

 

·                  Blocking of confirmed phishing URLs
by RSA’s ISP Network.

Client agrees that
RSA may at its discretion forward all confirmed phishing URLs to its network of
ISP partners (which includes but is not limited to Microsoft and AOL and other
ISPs who join the network), for the purpose of blocking access to such
fraudulent URLs.

 

·                  The RSA eFraudNetwork: Client shall benefit from RSA’s use of
data in its eFraudNetwork, for the purpose of early detection of phishing
attacks as well as for the purpose of taking certain action against such
attacks. RSA shall own any updates to the eFraudNetwork based on the Internet
Fraud Solution “FraudAction” Service to client. 
As used herein, The RSA eFraudNetwork shall mean RSA’s cross client
network of data consisting of certain data elements that are related to
transactions that involved fraud, or that are likely to be fraudulent. Such
data may include but is not limited to the IP address from which certain
transactions originated. All information in the eFraudNetwork is hashed. With
respect to each data element the following information is also stored:  the date of the last suspicious
transaction made using this data element, and the date it will expire from the
eFraudNetwork. In no
event shall RSA include in the eFraudNetwork any Personal Information or any
otherwise identifying information which could be traced back to Client or any
of its customers.

 

II.
METAVANTE STANDARD AND PREMIUM SERVICE
DESCRIPTION

 

The Internet Fraud
Solution “FraudAction” service shall be provided with respect to the FI’s Main
Brand. This shall include any services (credit cards, debit cards, loans etc
provided under a brand name that includes the words “FI name”. Provided that (1) the
RSA project team shall be required to work with no more than one FI project
team; (2) for the sake of the counter-measures element, RSA shall be
provided with no more than one set of credentials for creating the Data files
used in the counter-measures element.

 

·                  Alerts for the “FI “
main brand

 

·                  FI will receive alerts via RSA’s 24X7 Anti Fraud
Command Center.

·                  RSA’s alerts include web scanning (including news
groups), domain monitoring, spam and abuse reports, email decoys and email
scanning including tens of millions of emails originating from enterprise email
gateways, desktop users and selected large ISPs every day.

·                  Alerts are provided via the phone, email list and
pagers based on pre-defined FI specific escalation procedures.

·                  Domain monitoring – ONLY AVAILABLE IN PREMIUM SERVICE –
FI will receive when available a list of suspicious URLs at the top-level
domains that RSA identified as risky or qualify as potential brand abuse. FI
can then instruct RSA to act against these domains

 

90

 

·                  Reporting - Dashboard/Portal

 

·                  In addition to attack specific reporting, RSA will
provide and maintain access to a secure Web Dashboard or Portal that will
report all known attacks, and their critical information. Using this Portal,
FI  will be able to identify trends and
new threats.

·                  The Portal will also provide aggregate (summary)
information such as: Number of attacks to date; Number of closed sites since
day 1; Number of live (active) sites since day 1; Number of sites open/closed
in the last 24 hours.

 

·                  “Taking Action”

 

·                  RSA will analyze each attack and identify the
participating spoofed sites and their related ISPs.

·                  RSA will make best efforts to contact the ISPs, and/or
the entity responsible for the spoofed site, on FI’s behalf and alert them about
the spoofed site, asking to shut it down. If the spoofed site is in a
legitimate site, RSA will also make commercially reasonable efforts to notify
the owner of the legitimate site of the existence of the spoofed page and that
the ISP has been requested to close the site (it should be noted that whenever
the attack originates from a hijacked personal computer it is highly unlikely
that RSA would be able to directly contact the owner of such computer).

·                  Per FI’s consent, RSA will also attempt to approach each ISP and send
it a cease and desist form. RSA will notify the FI that the Cease and Desist Form has
been sent and provide the FI a copy.

 

·                  “Taking Action” - Forensic Work

 

·                  Per attack RSA will attempt to extract valuable
information from the spoofed website server. While this cannot be guaranteed,
in the past RSA has extracted data, including counters of the number of users
that submitted information to the fraudulent site, and in several cases the
actual full list of stolen data collected by the fraudster (containing the user
names, passwords, PINs etc. of all the phishing victims) was obtained by RSA.

·                  RSA’s forensic work is performed using knowledge RSA
has gathered through its alerts infrastructure (providing an early view of the
technology used in the attack, especially when the fraudster is still in “QA”
mode) and network of customers, allowing it to implement lessons learned from
one attack to another.

 

·                  Counter Measures

 

·                  Both the Baits and Dilution counter-measures utilize
RSA’s Randomized Credentials Technology(1), using randomized generated
accounts.

·                  RSA will activate its baits and dilution counter
measures in coordination with FI. The exact RCT behavior will be according to
the parameters and configuration defined mutually by the FI and RSA during the
kick off meeting. FI will have approved the rate and velocity of use of the
RCT.

 

(1) Cyota’s RCT is based on a large database of
fake yet seemingly real and consistent user credentials created by Cyota. When
the RCT is used in its “Dilution” module (“RCT - Dilution”) Cyota computers
send dummy responses to the fraudulent site as if the responses were coming
from real users who were hooked by the scam.  The RCT - Dilution feeds the
fraudster with useless records, and hence dilutes the quality of data that is
obtained.  When the RCT is used in its “Baits” module Cyota computers send
a limited amount of dummy responses to the fraudulent site, with the intent to
later on track the use of such responses by the fraudsters (like “marked money”).
It should be noted that the RCT - Dilution merely mimics the behavior of
potentially defrauded email recipients who respond to the phishing attack

 

91

 

·                  RSA will update the FI with status reports regarding the
counter measures’ effectiveness and usage results. These reports will be added
to the severity assessment reports as defined above.

·                  If FI elects to use Baits, FI  and RSA will work in advance and adjust FI ‘s
own fraud detection system to monitor the Baits data that is fed by RSA to the
fraudulent site.

·                  RSA will notify FI whenever the Counter Measures
cannot be utilized due to certain characteristics of the fraudulent site.

 

·                  24x7 Support

 

·                  The service includes 24X7 access to RSA’s Anti-Fraud Command Center.
The fraud specialists at the center will provide support prior to an attack,
during an attack and after the attack as well.

 

·                  Training and
Documentation

 

·                  The service includes a one-day training course using
RSA’s non-branded training materials in the “train the trainer” method, at no
additional cost (except for T&E costs).

·                  The service includes all necessary documentation
required to use RSA’s service.

 

·                  Hosting, Hardware and
Software

 

·                  RSA will provide hardware, software, database and communications
equipment necessary to support the Internet Fraud Solution “FraudAction”
Service as described in this Exhibit.

 

92

 

BUSINESS INTELLIGENCE CENTER

 

The following terms and conditions shall govern the provision of the
Business Intelligence Center by Metavante to Customer.

 

1.                                       Definitions.

 

1.1.                              “Application Data Store” shall mean the
data, which is translated, mapped, and downloaded from the Operational Data
Warehouse, and stored in a relational database. The Application Data Store is
operated on a UNIX-based processing platform.

 

1.2.                              “Business Intelligence Center” shall mean
the information support system developed by Metavante to access key business
information contained in the Dimensional Data Warehouse and/or Application Data
Store.  The tools included in the
Business Intelligence Center as of the Effective Date are (a) Business
Objects InfoView; (b) Business Objects WebIntelligence; and/or (c) Business
Objects 6.5.3.  The software for Business
Objects InfoView and Business Objects WebIntelligence will reside on equipment
located at Metavante facility.  The
software for Business Objects 6.5.3 will reside on equipment located at
Customer’s facility and operated by Customer’s employees.

 

1.3.                              “Business Intelligence Center Software”
shall mean the software licensed by Metavante from Business Objects Americas, Inc.
to provide and operate the Business Intelligence Center.

 

1.4.                              “Dimensional Data Warehouse” shall mean
the data, which is translated, mapped, summarized and downloaded from the
Operational Data Warehouse, and stored in a dimensional database.  The Dimensional Data Warehouse is operated on
a Unix-based processing platform.

 

1.5.                              “Operational Data Warehouse” shall mean
extracts of Metavante’s legacy applications in a MVS environment, as well as a
limited number of third party applications for which Metavante has created and
maintains interfaces.

 

All
other capitalized terms not defined herein shall have the meaning ascribed to
them in the General Terms and Conditions.

 

2.                                       Business Intelligence Center Access.

 

2.1.                              Grant.  Subject to
the terms and conditions of the Agreement, Metavante grants Customer a
nonexclusive, nontransferrable right to access the Business Intelligence Center
solely for Customer’s own internal processing and computing needs and for no
other purpose.  Customer shall be
entitled to use Business Intelligence Center in a productive mode only for the
number and types of users specified on the information security forms provided
to Metavante by Customer, as such forms may be updated from time to time and as
may be confirmed through the Business Objects administrator tool.

 

2.2.                              Scope.  Customer’s
use of the Business Intelligence Center shall be limited to the number and
types of users  as described in Section 2.1
above.  Customer acknowledges and agrees
that Business Intelligence Center is designed for use with the Metavante
Software and that interfacing of the Business Intelligence Center to other
software or mainframe applications is outside the scope of this Agreement.

 

2.3                                 Restrictions on Use. 
Customer shall not:  (a) distribute,
sell, assign or transfer (except as permitted under this Agreement) or
sublicense the Business Intelligence Center, or any part thereof, to any Third
Party; (b) adapt, modify, translate, reverse engineer, decompile,
disassemble, or create derivative works based on the Business Intelligence
Center or any part thereof; (c) copy the Business Intelligence Center, in
whole or in part; (d) use the Business Intelligence Center in any manner
to provide service bureau, time sharing, shared resource or other computer
services to Third Parties; or (e) export the Business Intelligence Center
Software outside the United States of America, either directly or indirectly.

 

93

 

3.                                       Performance Standards. 
Metavante agrees to operate the Business Intelligence Center in
accordance with the performance standards set forth on Exhibit B
attached hereto.

 

4.                                       Fees.

 

4.1                                 Fee Structure. 
Customer agrees to pay Metavante for the Business Intelligence Center as
set forth on the Fee Schedule attached as Exhibit A hereto.

 

4.2                                 Excluded Costs. The fees set
forth in the Fee Schedule(s) do not include telecommunication charges,
workshop fees, late fees or charges and Taxes, which shall be the
responsibility of Customer.

 

94

 

EXHIBIT A

BUSINESS
INTELLIGENCE CENTER

 

FEE SCHEDULE

 

Customer Name:

 

Address:

 

	
  Customer’s Primary Location:

  	
   Same

  

 

(See Services and
Charges Schedule)

 

95

 

EXHIBIT
B

 

BUSINESS
INTELLIGENCE CENTER

CUSTOMER RELATIONSHIP MANAGEMENT SERVICES

 

PERFORMANCE
STANDARDS

 

BUSINESS INTELLIGENCE CENTER 
AVAILABILITY:

 

This availability refers to the time frames that Business Intelligence
Center can be used to access the Dimensional Data Warehouse and the Application
Data Store.  The Business Intelligence
Center will be able to access the Dimensional Data Warehouse and the
Application Data Store during the following time frames:

 

	
  Monday – Friday

  	
   

  	
  7 a.m.

  	
   

  	
  To

  	
   

  	
  10 p.m.

  	
   

  
	
  Saturday

  	
   

  	
  7 a.m.

  	
   

  	
  To

  	
   

  	
   6 p.m.

  	
   

  
	
  Sunday

  	
   

  	
  not available

  	
   

  

 

These times are specific to Customer’s time zone.  The availability of Business Intelligence
Center does not automatically imply availability of prior-day data updates as
explained with the next service level.

 

AVAILABILITY OF PRIOR-DAY DIMENSIONAL DATA WAREHOUSE UPDATES:

 

Availability of prior-day data updates refers to the time frames for
when Customer’s latest IBS application data is available in the Dimensional
Data Warehouse and/or Application Data Store. 
Due to varying account volumes and month-end Data Warehouse processing
being three times that of a normal day’s processing, two service levels will be
established as follows:

 

	
  Institution’s* Aggregate

  Deposit Account Volume

  	
   

  	
  Normal Processing Day

  **

  	
   

  	
  Month-End Processing

  Day **

  	
   

  
	
  < 250,000 Accounts

  	
   

  	
  9:30 a.m.

  	
   

  	
  Noon

  	
   

  
	
  > = 250,000 Accounts

  	
   

  	
  10:30 a.m.

  	
   

  	
  Next Day

  	
   

  

 

*    Institution is defined as
the logical grouping of banks forming a holding company or other higher-level
entity.

 

96

 

** Availability times are specific to Customer’s time zone.

 

Normal Processing Day

 

If processing has been completed prior to Business Intelligence Center
availability, data will be accessible and will reflect the updates from the
previous day.  If processing is still
occurring upon Business Intelligence Center availability, the updates will not
be available until loading is complete. 
If processing has not yet started upon Business Intelligence Center
availability, the data in the will remain the same as the prior day until
loading begins for the most recent updates. 
Month-end data is not updated on a normal processing day and, therefore,
will be accessible upon Business Intelligence Center availability.

 

Month-End Processing Day

 

At month-end, all layers of the Dimensional Data Warehouse are
updated.  Similar to normal processing
days, if the month-end updates are not started prior to Business Intelligence
Center availability, the prior day’s data will be available until loading
begins.  Once loading of month-end
updates begins, data will not be available until the load is complete.

 

AVAILABILITY OF MONTHLY ASSET LIABILITY FILES:

 

This availability refers to when the Asset Liability interface files
are updated with an institution’s prior month-end Deposit, Loan, General
Ledger, CPI, MCIF, and Investment information. 
The availability is as follows:

 

	
  File

  	
   

  	
  Availability

  
	
   

  	
   

  	
   

  
	
  Deposit

  	
   

  	
  Fourth Business Day of Month

  
	
   

  	
   

  	
   

  
	
  Loan

  	
   

  	
  Fourth Business Day of Month

  
	
   

  	
   

  	
   

  
	
  GL

  	
   

  	
  Fourth Business Day of Month

  
	
   

  	
   

  	
   

  
	
  GL Retro

  	
   

  	
  Three Business Days Following Date of Retro

  
	
   

  	
   

  	
   

  
	
  Investments

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Projected

  	
   

  	
  Fourth Business
  Day of Month

  
	
   

  	
   

  	
   

  
	
  Final

  	
   

  	
  Eighth Business Day of Month

  
	
   

  	
   

  	
   

  
	
  CPI

  	
   

  	
  Seventh Business Day of Month

  
	
   

  	
   

  	
   

  
	
  MCIF-

  	
   

  	
  Tape Shipped By Tenth Business Day

  

 

97

 

AVAILABILITY
OF OTHER FILES

 

	
  Salespartner/

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BankerInsight

  	
   

  	
  Updated Weekly on Monday (when available)

  
	
   

  	
   

  	
   

  
	
  CPI

  	
   

  	
  Seventh Business Day of Month

  

 

AVAILABILITY OF CALL REPORTING FILES:

 

This availability refers to when the Call Reporting interface files are
updated with the prior month’s information, using the most current mapping rules established
by a customer.  The Call Reporting
interfaces will be available four (4) Business Days following a Month-End
Processing day. Also, data will be available three (3) Business Days
following the GL retros and the second Business Day following a Customer
refresh of its Call Reporting rules.

 

SERVICES CONTINUITY:

 

Services continuity consists of three aspects: hardware and/or system
software component failures, platform failure, and site disaster.  In the event of a hardware component failure
(such as a system board failure or disk array failure), the failure will be
addressed as soon as possible, with a downtime of no longer than 24 hours.  In the event of a platform failure, a new
platform will be implemented as soon as possible, with a downtime of no longer
than one week.  In the event of a site
disaster, Business Intelligence Center will recover within one  week following recovery of the core
system(s).  In the event of a platform
failure where service is delayed more than one day, the system will be restored
to the last backup prior to the failure before processing is resumed.  Processing associated with the outage days
will not be performed.  Processing will
resume with the information available at the point in time the system is
restored.

 

98

 

EXHIBIT C

 

BUSINESS INTELLIGENCE CENTER SUPPORT

 

1.                                       Standard Support Services.

 

1.1.                              The Metavante INFO Center offers
comprehensive support for Business Intelligence Center.  Clients may designate up to four (4) main
support contacts within their organizations to act as key contacts for
support.  The main contacts must be
trained Business Objects users and are the only people permitted to call issues
into the INFO Center.  Once these
individuals are selected, Customer should notify their Business Intelligence
Center Conversion Representative, who in turn will alert INFO Center personnel.

 

1.2.                              The designated main contact have the
following responsibilities:

 

·                  Act as single point of contact. 
All internal problems and issues should be funneled through the main
contacts so duplicate tickets are not recorded.

·                  Serve as a contact liaison between Metavante and end users.

·                  Gather necessary documentation prior to calling the INFO Center Support
line.

·                  Gather necessary documentation for defect resolution and enhancement
requests.

·                  Identify product usage and educational trends that need to be
addressed.

·                  Coordinate end-user training including organizing, preparing, and
conducting end-user and train-the-trainer activities.

·                  Coordinate the delivery of any internal documentation.

·                  Coordinate installation of new software releases, if necessary, and
ensure any required testing is performed in a timely manner.

·                  Determine if policy, and procedural, changes are required within client
organization.

 

1.3.                              Main contacts within each Customer
organization may contact the INFO Center for all Business Intelligence Center
related questions.  All Customer
inquiries must be routed through the designated main contacts.  The main contacts should attempt to research
and resolve inquiries before the INFO Center is contacted and should contact
the INFO Center only if the inquiry cannot be resolved internally.

 

1.4.                              Customer receives the first five (5) hours
per month of support at no charge.  If
Customer exceeds five (5) hours per month, an incremental charge will be
assessed.  The minimum time charged for a
support call is 10 minutes.  Support
hours do not carry over from month to month. 
If it is determined that the issue raised by the client is caused by a
product defect, the client is not charged.

 

1.5.                              For clients running both Business
Intelligence Center and Information Desktop, five (5) hours per month of
support will be included at no charge for each product.  The five hours are tracked separately for
each product.  Support hours cannot be
transferred between products.

 

1.6.                              Maintenance for BusinessObjects named
users must be handled through the INFO Center. 
This includes adding, deleting, or changing the security profile of end
users.  Changing the security profile may
involve moving them to a different group or changing to different type of
user.  If Customer has 10 or less
changes, the INFO Center, a 3-day turnaround is guaranteed.  If Customer has more than 10 changes, a 5-day
turnaround is

 

99

 

guaranteed.  The INFO Center will also make efforts to
accommodate maintenance that needs to be expedited due to special circumstances
(e.g. employee termination).

 

EXHIBIT D

 

INFORMATION DESKTOP

 

DISCOUNT SCHEDULE

 

(if applicable)

 

100

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