Document:

EXHIBIT 10.19

 

SERVICES AGREEMENT

 

	

  BISYS, INC.

  	

  Contract No.

  	

  CH-2036-12-91

  
	

  11 Greenway

  Plaza

  	

  Price List

  No.

  	

  12 - 91

  
	

  Houston,

  Texas 77046 - 1102

  	

   

  	

   

  

 

	

  Client

  	

   

  	

  First Essex Bank, FSB (including current

  and future subsidiaries and affiliates)

  
	

   

  	

   

  	

   

  
	

  Address

  	

   

  	

  296 Essex Street

  
	

   

  	

   

  	

   

  
	

  City

  	

   

  	

  Lawrence

  	

   

  	

  State

  	

  Massachusetts

  	

   

  	

  Zip Code

  	

  01842

  

 

 

1.              SCOPE OF AGREEMENT

 

BISYS, Inc. (“BISYS”) shall

provide Client, in accordance with this Agreement, the services selected by

Client from BISYS' then applicable Standard Services Price List and/or Special

Services Price List (collectively, the “Price Lists”) (collectively, the

“Services”). BISYS shall provide the reports listed on the Standard Reports

List and Special Reports List as applicable to the Services selected by Client.

The current Price Lists are attached hereto and made a part hereof.

 

2.              TERM OF AGREEMENT

 

A.           The

initial term of this Agreement shall commence as of October 1, 1993 (the

“Initiation Date”) and end March 31, 1999 (the “Initial Period”).

B.             The

Agreement shall automatically continue after the Initial Period for subsequent

consecutive terms of three years each unless and until it is terminated by

either party upon written notice to the other given at least 180 days prior to

the end of the Initial Period or any additional three year period.

C.             If

Client has given BISYS notice pursuant to Paragraph 2(B) and Client intends to

deconvert from the BISYS data processing system (“BISYS System”), Client may,

upon written notice to BISYS given at any time during the final 120 days of

this Agreement (as determined in accordance with 2(B) above) or any extension

hereof pursuant to this Paragraph 2(C), extend the termination date to the date

indicated in such notice, which date shall not be, in any event, less than 120

days after the date of such notice. Commencing at the end of the Initial Period

or any renewal period (as applicable), Client shall pay for Services at the

prices set forth in the then current BISYS Price Lists notwithstanding the

giving of extension notice.

D.            Continuing

obligations under this Agreement including, without limitation, those relating

to “BISYS Products” (defined in Paragraph 10(A)); “Confidential Information”

(defined in Paragraph 10(F)) and “Client Files” (defined in Paragraph 8(A)),

shall survive any termination.

 

3.              CHARGES

 

A.           Each

month commencing Initiation Date, whether or not Client actually uses any

Services during such month, Client shall pay a minimum monthly charge equal to

the greater of (i) $ * ; (ii) BISYS' charges for the Services actually

used by Client during such month; (iii) 80% of the charges invoiced to Client

during the immediately preceding month; or (iv) 80% of the charges invoiced to

Client for the month immediately preceding any deconversion by Client if Client

deconverts from the BISYS System.

B.             The

initial charges for the Services are specified in the Price Lists, and shall be

recorded by the BISYS System or by any other means used by BISYS of determining

Client's usage. The charges for the Services listed on the Standard Services

Price List as of the date hereof will not be changed by BISYS until the

expiration of the first year following Initiation Date. Thereafter, during the

remaining term of the Initial Period, the charges for the Services listed on

the Standard Services Price List may be changed by BISYS at any time and from

time to time upon at least 90 days prior written notice to Client. During the

Initial Period, the charges for the Services listed on the Special Services

Price List as of the date hereof may be changed by BISYS at any time after the

date hereof upon at least 90 days prior written notice to Client. After the

Initial Period, the charges for the Services listed on the Price Lists shall

automatically, and without notice, be changed to BISYS' standard (non-discounted)

list prices then in effect for the respective Services; such prices may,

thereafter, be changed by BISYS, at any time and from time to time, upon at

least 90 days prior written notice to Client.

C.             There

shall be added to all charges for the Services furnished Client hereunder

amounts equal to any applicable taxes levied or based on such Services,

exclusive of taxes based on BISYS' income.

D.            No

later than the 5th day of each calendar month, BISYS shall invoice (the

“Monthly Invoice”) Client: (i) for all Services projected to be used by Client

during that billing month (the “Billing Month”) which charge will be based upon

either actual usage and number of accounts during the month prior to the

Billing Month or the minimum charge pursuant to Paragraph 3(A); 

 

[***] = Omitted

information is filed separately with the Securities and Exchange Commission

pursuant to a confidential treatment request.

 

 

(ii) an amount

equal to 100% of the recurring pass through charges (e.g. communication charges

actually utilized by Client during the prior month as the estimated pass

through charges for the Billing Month; (iii) adjustments (debits/credits) to

the prior month's estimated charges set forth in (i) and (ii) above and; (iv)

all other charges incurred by Client during the prior month. Client agrees to

pay all amounts set forth in the Monthly Invoice by automatic debit by BISYS on

the last business day of the Billing Month from a Client bank account

established for this purpose (the “Payment Account”). Client agrees to execute

any and all required documentation to enable BISYS to perform such automatic

debiting of the Payment Account. If Client fails to pay any amounts due under

this Agreement, Client shall, upon demand, pay interest at the rate of 1-1/2%

per month, but in no event more than the highest interest rate allowable, on

such delinquent amounts from their due date until the date of payment. Client

agrees to reimburse BISYS for any and all expenses BISYS may incur, including

reasonable attorney fees, in taking action to collect any amounts due BISYS

hereunder. All amounts due must be paid prior to Client's deconversion from the

BISYS system.

 

4.              AVAILABILITY OF THE

SERVICES

 

A.           Hours

for accessing Services on an on-line basis (“On-Line Hours”) at the BISYS data

center providing Services to Client (“Data Center”) are 7:00 A.M. to 9:00 P.M.

Monday through Friday and 7:00 A.M. to 5:00 P.M. Saturday (Data Center time)

exclusive of BISYS holidays (New Years Day, Memorial Day, Independence Day,

Labor Day, Thanksgiving Day and Christmas Day). A particular Service may also

be available at other than On-Line Hours; in which event Client may, at its

option and subject to any additional charges therefor, use that Service at such

other times.

B.             BISYS

will make every reasonable effort to have the Services available during the

On-Line Hours. However, BISYS cannot and does not guarantee such availability.

Accordingly, Client's remedy and BISYS' sole liability to Client or any third

party for claims, notwithstanding the form of such claims (e.g., contract,

negligence or otherwise), arising out of (i) the unavailability of the BISYS

System or (ii) the interruption in or delay of the Services provided or to be

provided by BISYS hereunder, shall be for BISYS to use all reasonable efforts

to make the BISYS System available and/or to resume the Services as promptly as

reasonably practicable.

C.             

Client shall, at it's expense, be responsible for delivering and transmitting

to and from Client's offices, the offices of the applicable regulatory

authorities and any other location authorized by Client, and the Data Center

all data and information necessary for BISYS to furnish the Services to Client.

 

* See Addendum A attached hereto.

 

2

 

5.               USE OF THE SERVICES

 

A.           Client is exclusively responsible for the

consequences of its own actions;  for

any instructions it gives BISYS; for its failure to access the Services in the

manner prescribed by BISYS, and for its failure to supply accurate input

information.  Client is responsible for

auditing, balancing, verifying the correctness of calculation routines (such as

interest and service charges) and reconciling any out-of-balance condition, and

for notifying BISYS of any errors in the foregoing within three business days

after receipt of the incorrect information. 

Client's remedy and BISYS' sole liability to Client or any third party

for any claims, notwithstanding the form of such claims (e.g., contract,

negligence or otherwise), arising out of errors or omissions in the Services

provided or to be provided by BISYS hereunder and caused by BISYS shall be for

BISYS to furnish the correct report and/or to correct the applicable Client

Files, provided that Client promptly advises BISYS thereof.

B.             Client shall use the Services in

accordance with such reasonable instructions as may be established by BISYS

from time to time as set forth in any written materials furnished by BISYS to

Client.

C.             Except as otherwise permitted by BISYS,

Client will use the Services only for its own internal and proper business

purposes and will not sell or otherwise provide, directly or indirectly, any of

the Services or any portion thereof to any third party.

D.            Client shall not make any alteration,

change or modification to any of the computer programs, data bases and/or BISYS

supported files used by BISYS in connection with providing the Services to

Client hereunder, without BISYS' prior written consent in each instance.

E.              BISYS shall give Client written notice of

any BISYS system change which materially affects Client.  Nothing herein shall preclude or limit

BISYS' ability to make changes to its data processing system.

 

6.               COMMUNICATION LINES AND EQUIPMENT.

 

A.           BISYS shall order, on Client's behalf and

with Client's approval, the installation of appropriate telephone lines and

communications equipment to enable Client to access the Services.  Client shall pay all charges relating to the

installation and use of such telephone lines and communications equipment.

B.             BISYS shall not be responsible for the

reliability, or continued availability, of telephone lines and communications

equipment used by Client in accessing the Services.

 

7.               FILE SECURITY AND RETENTION.

 

A.           Any Client data bases and files or other

information provided by Client to BISYS for use with the Services (the “Client

Files”) shall remain the confidential property of Client.  BISYS will provide reasonable security

provisions to insure that third parties do not have access to the Client

Files.  BISYS reserves the right to

issue and change regulations and procedures from time to time to improve file

security.  BISYS will instruct its

employees having access to the Client files to keep the same confidential by using

the same care and discretion that BISYS uses with respect to its own

confidential property.

B.             BISYS will take reasonable precautions to

prevent the loss of, or alteration to, Client Files, but BISYS cannot guarantee

against any such loss or alteration. 

Accordingly, Client will, to the extent deemed necessary by Client, keep

copies of all source documents of information delivered to BISYS and will

maintain a procedure external to the BISYS System for the reconstruction of

lost or altered Client Files.  In

connection with the foregoing, it is understood that Client shall assume and be

responsible for risk of loss and/or damage to documents and records while they

are in transit to and from the Data Center.

 

3

 

C.             During

the term of this Agreement, BISYS will retain the Client Files in accordance

with, and to the extent provided by BISYS' then prevailing records retention

policies for the Services, which policies will be consistent with guidelines

covering the Services established by appropriate regulatory authorities.  BISYS will, upon the expiration of any

retention period for Client Files and upon prior notice to Client, dispose of

Client Files in any manner deemed appropriate by BISYS unless Client, prior to

such disposal, furnishes to BISYS written instructions for the disposition of

such Client Files at Client's expense. 

Client shall pay for the provision of Client Files to Client at BISYS'

standard rates for such services and BISYS shall provide such Client Files

provided that BISYS has been paid for all Services provided hereunder through

the date such requested Client Files are returned to Client.

D.            BISYS has a written Disaster Recovery Plan

establishing emergency procedures, including off-premises backup facility.  In connection therewith, BISYS has prepared

a Disaster Recovery Manual.  The

Disaster Recovery Plan and Disaster Recovery Manual are available at the Data

Center for examination by bank auditors and examiners and, as they may be

modified from time to time, will remain in existence during the term of this

Agreement.  BISYS shall provide Client,

upon written request, with information necessary for Client to develop a

disaster contingency plan which will work in concert with BISYS' Disaster Recovery

Plan.

 

8.               DUTIES UPON TERMINATION; RETURN OF

RECORDS.

 

A.           Upon the termination of this Agreement for

any reason, BISYS will dispose of all Client Files still in the BISYS System in

any manner deemed appropriate by BISYS unless Client, not later than 30 days

after such termination, furnishes to BISYS written instructions for the

disposition of such Client Files at Client's expense as set forth in Paragraph

8(B).

B.             At Client's request as set forth in

Paragraph 8(A), BISYS shall deliver to Client all of the Client Files then

retained by BISYS including file layouts and their descriptions in BISYS format

and shall provide in accordance with BISYS deconversion policies, reasonable

and necessary assistance with the deconversion from the BISYS System to a

non-BISYS system (“Deconversion”). 

Client shall pay BISYS for Deconversion assistance in accordance with

BISYS' then current Deconversion rate schedule.  Payment for Deconversion together with all other payments which

are due, and which will become due pursuant to the provisions of this Agreement

shall be paid to BISYS prior to delivery of such Client Files.

C.             Client Files returned to Client shall be

in a standard BISYS machine readable format.

 

9.               OWNERSHIP, USE AND CONFIDENTIALITY;

BISYS PRODUCTS AND CONFIDENTIAL INFORMATION.

 

A.           All computer programs and related

documentation made available, directly or indirectly, by BISYS to Client as

part of the Services (the “BISYS Products”) are the exclusive and confidential

property of BISYS or the third parties from whom BISYS has secured the right to

use such computer programs and documentation.

B.             A personal, non-exclusive,

non-transferable right and license is being granted to Client to use, during

the term of this Agreement, any applications software programs included in the

BISYS Products (the “Application Programs”) which are delivered to Client as

part of the Services solely for Client's own business usage.  Client shall not have any interest in the

Applications Programs except for this limited license.

C.             Client shall receive all improvements, enhancements,

modifications and updates to any Applications Programs which are delivered to

Client as part of the Services if, and as, made available by BISYS to its

clients generally.  All such

improvements, enhancements, modifications and updates shall be delivered to

Client in the form of a computer media, which media shall be provided by Client

to BISYS and shall be installed by Client with the assistance of BISYS at

charges set forth in the current Price List. 

If Client fails to install any such media within 45 days of its receipt

from BISYS, BISYS shall have no further obligation to provide Client with

improvements, enhancements, modifications or updates to such Application

Programs.

 

4

 

D.            Client acknowledges that it shall be deemed

a sublicensee of BISYS for any systems software programs included in the BISYS

Products (the “Systems Programs”) which are delivered to Client as part of the

Services.  Client accepts a sublicense

from BISYS of the Systems Programs on a personal, non-exclusive,

non-transferable basis with the right to use, during the term of this

Agreement, such Systems Programs solely in connection with the Services.

E.              Client shall not copy, in whole or in

part, any BISYS Products or related documentation, whether in the form of

computer media, printed or in any other form. Client shall not make any

alteration, change or modification to any BISYS Products.

F.              Client shall treat as confidential and

will not disclose or otherwise make available any of the BISYS Products or any

trade secrets, processes, proprietary data information or documentation related

thereto including, without limitation, any flow charts, logic diagrams or

source code (collectively the “Confidential Information”), in any form, to any

person other then employees of Client. Client will instruct its employees who

have access to the BISYS Products and the Confidential Information to keep the

same confidential by using the same care and discretion that Client uses with

respect to its own confidential property and trade secrets. Upon the

termination of this Agreement for any reason, Client shall return to BISYS any

and all copies of the BISYS Products and the Confidential Information which are

in its possession.

 

10.         GOVERNMENTAL AGENCIES.

 

A.           Client shall provide all required notices to

the appropriate regulatory authorities concerning the initiation or termination

of this Agreement, or of any substantial changes in the Services being provided

to Client. BISYS agrees that any and all Client Files maintained by it for the

Client pursuant to this Agreement shall be available for inspection by the

appropriate regulatory authorities and Client's internal auditors and

independent public accountants, upon prior written notice to BISYS. All costs

incurred by BISYS in the preparation of data for inspection, examination or

audit will be charged to client at BISYS' then standard rates for such

services.

B.             BISYS shall provide annually to the

appropriate regulatory authorities Third Party Review Reports prepared by

independent public accountants with respect to the Services performed by BISYS

at the Data Center and copies of BISYS' audited financial statements. By

entering into this Agreement, BISYS agrees that it extends to the Office of

Thrift Supervision (“OTS”) the same authority and responsibility (as applicable

to Client) provided to the other regulatory agencies pursuant to the Bank

Service Corporation Act, 12 U.S.C. 1867 (C) relating to services performed by

contract or otherwise.

C.             If after the date hereof any modifications

to the Services shall be required by law or by any governmental regulatory

authority, BISYS shall, except to the extent such changes may be beyond the

capability of the BISYS System to implement, conform the Services to be in

compliance with such modified laws or governmental regulations. BISYS may, at

its discretion, pass on, in whole or in part, on an equitable basis to all

users of the Services (including Client) affected by any such modification the

actual costs incurred by BISYS in making any such modification to the Services.

 

5

 

11.         WARRANTY.

 

A.           BISYS represents and warrants that the

Services will conform materially to their design specifications and user

documentation which may be changed from time to time. This warranty shall not

extend to any of the computer programs, data bases and/or BISYS supported files

used by BISYS in connection with providing the Services to Client hereunder

which have been altered, changed or modified in any way, without BISYS' prior

written consent in each instance.

B.             EXCEPT AS SPECIFICALLY PROVIDED HEREIN,

THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY

IMPLIED WARRANTIES OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

12.         LIMITATION OF LIABILITY.

 

A.           The remedies specified in this Agreement

constitute Client's sole and exclusive remedies in the event of any alleged

defaults by BISYS under this Agreement. BISYS' sole liability, if any, for

damages (monetary or otherwise) resulting from claims made by Client or any

third party arising from or related to any and all causes not covered by the

foregoing remedies shall be limited to the lesser of (i) the amount of actual

damages incurred by Client or (ii) an amount which shall not exceed the charged

paid by Client during the six (6) month period immediately preceding the event

from which such liability arose for the Services performed which gave rise to

the claim.

B.             IN NO EVENT WILL BISYS BE RESPONSIBLE FOR

SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHICH CLIENT MAY INCUR

OR EXPERIENCE ON ACCOUNT OF ENTERING INTO OR RELYING ON THIS AGREEMENT, EVEN IF

BISYS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

13.         PATENT AND COPYRIGHT INDEMNIFICATION.

 

BISYS will hold Client harmless

and, at its own expense, will defend any action brought against Client based on

a claim that the Services used within the scope of this Agreement infringe a

United States patent or copyright provided Client notifies BISYS promptly in

writing of the claim. BISYS has sole control of the defense of the action and

all negotiations for its settlement or compromise, and Client cooperates with

BISYS in the defense of the action. In the event any of the Services becomes, or

in BISYS' opinion is likely to become, the subject of a claim of infringement

of patent or copyright, BISYS, at its option, may (i) secure for Client the

right to continue using such Service(s), (ii) replace or modify such Services

to make it or them non-infringing, (iii) cease providing the affected

Service(s) or (iv) if none of the foregoing options is commercially reasonable,

in BISYS' opinion, terminate this Agreement. If BISYS exercises its option

hereunder to terminate this Agreement, such termination shall be at no penalty

to BISYS except that BISYS shall provide the Deconversion assistance described

in Paragraph 8(B) at no charge to Client.

 

14.         INSURANCE.

 

BISYS shall maintain, during

the term of this Agreement, $10,000,000 of coverage under a Blanket Crime

Policy covering fraudulent and dishonest acts committed by its employees for

which it is legally responsible. BISYS shall maintain, on its own behalf,

insurance coverage for loss from fire, disaster, or other causes contributing

to interruption of normal services. Client, at its own expense, will maintain

all insurance and fidelity bonds required by the applicable regulatory

authorities.

 

15.         DEFAULT; REMEDIES UPON DEFAULT.

 

A.           Any of the following events will constitute

an “Event of Default” under the Agreement: (i) non-payment of any undisputed

amounts due hereunder to BISYS by Client; (ii) non-performance of any of

Client's or BISYS' other material obligations hereunder: (iii) if any

representation or warranty of Client or BISYS is materially breached; (iv) if

Client or BISYS files a petition for bankruptcy or becomes the subject of an

involuntary bankruptcy petition which is not vacated within 60 days of filing,

or becomes insolvent; or (v) if any substantial part of Client's or BISYS'

property becomes subject to any levy, seizure, assignment, application or sale

for or by any creditor or governmental agency.

 

6

 

B.             Upon occurrence of an Event of Default

under the Agreement, the non-defaulting party may, at its option, terminate

this Agreement provided at least 30 days (or longer period as may be required

by the applicable regulatory authorities) prior written notice has been given

to the other and such default has not been cured within such period. Upon such

termination by BISYS, BISYS may declare all amounts due and to become due

hereunder immediately due and payable. The remedies contained in this Paragraph

15 are cumulative and in addition to all other rights and remedies available to

the parties under this Agreement or by operation of law or otherwise.

 

16.   FORCE MAJEURE

 

BISYS or

Client shall not be liable or deemed to be in default for any delay or failure

to perform under this Agreement or for interruption of the Services resulting

directly or indirectly, from any cause beyond BISYS’ or Client’s reasonable

control.

 

17.   GENERAL

 

A.           BISYS

shall provide Client upon written request, copies of The BISYS Group, Inc.’s

(BISYS’ parent corporation) current audited financial statements.

B.             Client

acknowledges that it has not been induced to enter into this Agreement by any

representation or warranty not set forth in this Agreement.  This Agreement contains the entire agreement

of the parties with respect to its subject matter and supersedes all existing agreements

and all other oral, written or other communications between them concerning its

subject matter.  This Agreement shall

not be modified in any way except by a writing signed by both parties.

C.             The failure by either party hereto to

insist upon strict performance of any of the provisions contained herein shall

in no way constitute a waiver of its rights as set forth herein, at law or

equity, or a waiver by either party of any other provisions or subsequent

default by the other party in the performance of or compliance with any of the

terms and conditions set forth herein.

D.            This Agreement may not be assigned by

either party, in whole or in part, without the prior written consent of the

other which consent shall not be unreasonably withheld.  This Agreement shall be binding upon and

shall inure to the benefit of BISYS and Client and their respective successors

and permitted assigns.

E.              If any provision of this Agreement (or

any portion thereof) shall be held to be invalid, illegal or unenforceable, the

validity, legality or enforceability of the remainder of this Agreement shall

not in any way be affected or impaired thereby.

F.              The headings in this Agreement are

intended for convenience of reference and shall not affect its interpretation.

G.             The individuals executing this Agreement

on behalf of BISYS and Client do each hereby represent and warrant that they

are duly authorized by all necessary action to execute this Agreement on behalf

of their respective principals.

H.            Client acknowledges that a breach of any of

its obligations under this Agreement relating to the BISYS Products and/or the

Confidential Information will cause BISYS irreparable injury and damage and

therefore may be enjoined through injunctive proceedings in addition to any

other rights or remedies which may be available to BISYS, at law or in equity

and BISYS grants Client the same rights with respect to a breach of BISYS’

obligations relating to the confidentiality of Client Files.

I.                 During the term of this Agreement,

neither party hereto shall, directly or indirectly, solicit or encourage to

leave, any employee of the other without prior written consent, which consent

shall not be unreasonably withheld.

 

	

  BISYS, INC

  	

   

  	

  FIRST ESSEX

  BANK, FSB

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Agreed to:

  	

  /s/ JOHN D.

  ROGERS

  	

   

  	

  Agreed to:

  	

  /s/ PETER A.

  BOYLE

  
	

   

  	

  (signature-Authorized Officer)

  	

   

  	

   

  	

  (signature-Authorized Representative)

  
	

   

  	

   

  	

   

  
	

  Name:

  	

  John D.

  Rogers

  	

   

  	

  Name:

  	

  Peter A.

  Boyle

  
	

   

  	

  (print or type)

  	

   

  	

   

  	

  (print or type)

  
	

   

  	

   

  	

   

  
	

  Title:

  	

  Exec Vice

  President

  	

  Date:

  	

  12/8/93

  	

   

  	

   

  	

  Title:

  	

  Senior Vice

  President

  	

  Date:

  	

  12/7/93

  	

   

  
	

   

  	

  (print or

  type)

  	

   

  	

   

  	

  (print or

  type)

  
																	

 

	

  THIS AGREEMENT SHALL BECOME EFFECTIVE UPON BEING SIGNED BY AUTHORIZED

  OFFICERS OF BISYS AND CLIENT.  BISYS'

  MARKETING REPRESENTATIVES DO NOT HAVE THE AUTHORITY TO BIND BISYS.

  

 

7

 

ADDENDUM TO SERVICES AGREEMENT NO. CH–2036–12–91

 

SERVICES AGREEMENT DATED AS OF OCTOBER 1,

1993

 

Reference is made to the above Services Agreement between the

undersigned (the “Agreement”) to which this Addendum is attached and made a

part thereof.

 

The Agreement is hereby amended and supplemented as follows:

 

1.               (a)   Except

as expressly amended and supplemented hereby, all terms defined in the

Agreement shall have the same meanings when used herein.

 

(b)         For the purposes of the Agreement and this

Addendum, the term “Exhibit A Services” shall mean both the Standard Services

and Special Services listed on Exhibit A. The parties agree that included in

the definition of Exhibit A Services are Client usage of any features

associated with the Services listed on the Standard Services portion of Exhibit

A which features are in existence and available to Client as of the date of

this Addendum. Neither features, nor Services, listed on the Price Lists as of

the date hereof, but not set forth on Exhibit A shall be deemed to be part of

the Exhibit A Services and such other Services and/or features shall be billed

to Client in accordance with the provisions of Paragraph 3(A) below. The

parties also agree that Exhibit A Services are recurring Services and do not

include any installation charges, training charges, one–time license fees

or any other one–time charges; the charges for which are not included in

the “Fixed Monthly Charge” (as defined in Paragraph 2 below).

 

2.               For any and all Client usage of Exhibit

A Services during the Initial Period, Client shall pay BISYS each month, a

fixed monthly charge (the “Fixed Monthly Charge”) in accordance with the

following:

 

(a)          During the first 12 month period of the

Initial Period ending September 30, 1994 the Fixed Monthly Charge for the

Exhibit A Services shall be [***],

unless such charge is modified pursuant to Paragraphs 2(d) or 6(b) below.

 

(b)         During the Initial Period, Client shall be

entitled to receive [***] credit

against the Monthly Invoice.

 

(c)          For the purposes of this Agreement and this

Addendum, the term “One Year Period(s)” shall mean each twelve (12) month

period commencing October 1, 1993 and the indication as to which twelve (12)

month period is indicated will be with the addition of an ordinal number

preceding the term One Year Period, i.e. First One Year Period, Second One Year

Period, etc.

 

(d)         At the end of each One Year Period, and after

BISYS' annual purge of Client accounts, BISYS shall determine the total number

of Client accounts on the

 

 

BISYS system (the “Year End Accounts”). The

Fixed Monthly Charge shall then be adjusted based on the number of Year End

Accounts at the end of each One Year Period (the “Adjusted Fixed Monthly

Charge”). The Adjusted Fixed Monthly Charge for each One Year Period commencing

October 1, 1994 shall be the sum of (x) the number of Year End Accounts times

(y) an appropriate per account amount set forth below for each Year End Account

on the BISYS system at the end of each One Year Period.

 

	

  Number of Year

  End Accounts

  	

   

  	

  Monthly

  Fee Per Year End Account

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Not greater than 67,000

  	

   

  	

  [***]

  	

   

  
	

  67,001 to 70,000

  	

   

  	

  [***]

  	

   

  
	

  70,001 to 80,000

  	

   

  	

  [***]

  	

   

  
	

  80,001 to 90,000

  	

   

  	

  [***]

  	

   

  
	

  90,001 to 100,000

  	

   

  	

  [***]

  	

   

  
	

  More than 100,000

  	

   

  	

  [***]

  	

   

  

 

By way of example, if on October 1, 1994, the

Year End Accounts equalled 75,500, the Fixed Monthly Charge would be calculated

as follows:

 

(67,000 x [***])

+ (3,000 x [***]) + (5,500 x [***]) = [***]

 

Accordingly, the Fixed Monthly Charge

(subject to any adjustments pursuant to Paragraph 2(e) and/or 6(b) below) from

October 1, 1994 through September 30, 1995 would be [***].

 

(e)          The Fixed Monthly Charge shall be subject to

adjustment during each One Year Period if in the normal course of business,

Client has decided to discontinue a service performed by BISYS because the

Client's daily operations no longer require such service. Notwithstanding the

foregoing, in no event shall Client pay less than the monthly minimum (as

defined in Paragraph 2(f) below) to BISYS for services performed during the

term of this Agreement.

 

(f)            Except as otherwise provided, the monthly

minimum as set forth in Paragraph 3(A)(i) shall be equal to the Fixed Monthly

Charge.

 

3.     In

addition to the Fixed Monthly Charge for the Exhibit A Services, Client agrees

to pay BISYS each month:

 

(a)          For all usage of Services other than Exhibit

A Services at the charges set forth on the applicable Price Lists and in

accordance with the terms of the Agreement as may be amended hereby; and

 

(b)         For all pass–through charges.

 

2

 

4.               Notwithstanding anything to the contrary

in Paragraph 3(C) of the Agreement, Client shall not be responsible for taxes:

(i) based upon BISYS' income, franchise, doing business or similar taxes levied

or assessed on or based on BISYS' income capital base or other similar base;

(ii) employment taxes with respect to employees of BISYS (including, but not

limited to, unemployment taxes, social security and medicare taxes) and income

tax withholdings; (iii) any real estate taxes on real property owned or leased

by BISYS; and (iv) personal property tax owed by BISYS. BISYS also agrees that

Client shall retain all right, title and interest in and to any refund for

taxes relating to the Services provided hereunder and paid by Client.

 

5.               Notwithstanding anything to the contrary

in Paragraph 3(D) of the Agreement, BISYS shall invoice Client for all Services

used during the month prior to the Billing Month.  Client agrees to pay all undisputed amounts by automatic debit by

BISYS on the last Client business day of the Billing Month. BISYS and Client

agree that Client shall notify BISYS in writing, within 10 days after receipt

of the Monthly Invoice, of any amounts invoiced which Client disputes and are

not included in the payment. BISYS and Client agree to refer such billing

disputes to an Executive Vice President of each party who shall use good faith

efforts to resolve such disputes. In the event such dispute is resolved in

BISYS' favor, Client shall, upon demand, pay interest at the rate of 11⁄2 % per

month, but in no event more than the highest interest rate allowable, on such

delinquent amounts from their due date until the date of payment.

 

6.               If at any time after the Initiation

Date, but during the Initial Period, Client acquires additional financial

organization assets/liabilities and/or serviced accounts (“Acquired Assets”)

through acquisition or merger (with Client remaining the surviving entity, as

determined by the agreements controlling such transactions, after merger),

BISYS shall convert, at no charge, the data regarding such Acquired Assets to

the BISYS system and Client shall provide adequate information for such

conversion.

 

(a)          In connection with the Acquired Assets,

conversion services will be provided at no additional charge, provided that

data and files are in machine readable form readable by BISYS' computers at the

BISYS Center. Client shall, however, pay for all out–of–pocket

conversion related expenses not included in BISYS' provided standard conversion

services, including but not limited to, data communications and terminal

equipment charges. In addition, BISYS shall process such converted Acquired

Assets at no charge for a period of three full calendar months (the “Three

Month Period”) following conversion.

 

(b)         At the end of the Three Month Period, BISYS

shall calculate the total number of Acquired Assets converted to the BISYS

system and adjust the Fixed Monthly Charge as follows: the Acquired Assets

shall be added to the most recent calculation of Year End Accounts (the

“Adjusted Year End Accounts”). The Fixed Monthly Charge shall then be

calculated as the sum of (x) the Adjusted

 

3

 

Year End Accounts times (y) the appropriate

per account fee as set forth in Paragraph 2(d) above.

 

7.               In addition to the products and services

listed on the Standard Services Price List, the Special Services Price List and

the attached Exhibit A, BISYS  will

provide the following products/services to Client at the price and expense

terms indicated:

 

(a)          BISYS will provide one CIF scrub with on–site

training at [***].

 

(b)         BISYS will provide 10 days per year of non–cumulative

on–site training in products selected by Client. Requests for such

training shall be submitted to BISYS in writing at least 30 days before the

requested training dates.

 

(c)          BISYS will conduct an annual operations audit

at Client site to assist the Client in determining ways to better manage the

Bank through improved system utilization. An extension of the process will

include assistance in addressing Shadow Accounting, LAP, Reserve Calculation,

HMDA, Call Report, etc. This audit will be conducted at no charge to Client.

 

(d)         BISYS will conduct a quarterly senior

management presentation to present and discuss new product/service development

plans offered by BISYS. Additionally, BISYS will maintain a qualified account

executive assigned to Client who will meet on a regularly scheduled basis to

ensure that a positive and productive business relationship is maintained. This

presentation and meetings will be provided at no charge to Client.

 

(e)          BISYS will provide on–site assistance

with TBS release installation and document assistance at no charge to Client.

 

(f)            BISYS will provide and maintain 4 sets of

user documentation for Client at no charge.

 

(g)         BISYS will provide an interface to the

McDonald Loan Origination System at no charge to Client. Client will, however,

be responsible for payment of all out–of–pocket expenses associated

with this product.

 

(h)         The following products are currently in

development and will be delivered to Client, if requested, as soon as

installed. These products will be ready for installation no later than end of

first quarter of Calendar Year 1994. Client will receive a discount of [***] off the listed price for the

following products and any other products to be developed and made available to

Client, when established:

 

(i)    Custom

Statement Formatting;

 

4

 

(ii)   Mortgage

and Installment Loan Collection Systems;

 

(iii)  Total

Real Estate System; and

 

(iv)  Commercial

Loan System Upgrade.

 

(i)             BISYS will provide, at no charge,

enrollment for 1 Client employee in 10 classes offered by BISYS University each

year.

 

(j)             BISYS and Client agree to work together to

develop enhancements to the current ARP package offered to Client by BISYS.

 

8.     Paragraph 2(B) of the

Agreement shall be deleted and replaced with the following language:

 

“The Agreement shall automatically continue

after the Initial Period on a month-to-month basis unless and until it is

terminated by either party upon written notice to the other given at least 180

days.”

 

9.               Notwithstanding anything to the contrary

in Paragraph 5(A) of the Agreement, BISYS agrees that Client shall have the

option of accessing services on an on–line basis at other than On–Line

Hours, including for purposes of recovery or Sunday operations, provided Client

gives BISYS reasonable notice and subject to reasonable additional charges

therefor.

 

10.         (a)   For

purposes of this Agreement the term “Downtime” shall mean any general on-line

service interruption (except for interruption due to reasons beyond BISYS'

reasonable control including without limitation, destruction of equipment.

communication line failure, fire, Acts of God, or acts of governmental or

judicial authority) caused by failure of the Data Center's computers, other

hardware, programs, or operators to sustain continuous availability of on-line

processing during On–Line Hours.

 

(b)         For every percentage of Downtime in excess of

two percentage points (as a percentage of total On–Line Hours) during a

one month period of time, BISYS will deduct [***]

of the actual charges for the Services payable by Client to BISYS for the

measured month to a maximum of [***].

Application of the credit will be made the following month.

 

(c)          BISYS' Data Center will log and report

Downtime providing appropriate    analytical

reports to Client for each calendar month. Downtime results will be tabulated

daily and averaged for the calendar month.

 

5

 

11.         (a)   If

BISYS experiences Downtime in excess of [***]

percentage points per month during any two consecutive calendar months, Client

shall have the right at any time after the Initiation Date and during the

Initial Period to terminate this Agreement prior to the end of the Initial

Period upon at least one hundred eighty (180) days prior written notice to

BISYS and such termination shall be effective the later of one hundred eighty

(180) days after receipt by BISYS of such written notice or the date on which

BISYS completes conversion from the BISYS system to a non–BISYS system.

Client shall only have this right of termination provided:

 

(i)             Client shall pay BISYS for all Services in

accordance with the terms and conditions of this Agreement through the

effective date of termination (i.e., at least one hundred eighty (180) days

after receipt by BISYS of such written notice or the date on which BISYS

completes conversion from the BISYS system to a non–BISYS system)

including all pass–through charges; and

 

(ii)          Client shall pay BISYS for Deconversion

assistance in accordance with Paragraph 8(B) of the Agreement, however, BISYS

agrees that Client shall be entitled to receive[***] on deconversion charges.

 

(b)   All

payments shall be made prior to delivery of Client Files.

 

12.         BISYS agrees that batch processing will be

performed during night hours to ensure that Client will be able to access

Services during On–Line Hours. BISYS agrees that processing will be

completed and that all daily reports (excluding any customized reports) shall

be transmitted to Client no later than 8:00 A.M. of the next business day

following the day to which the reports pertain. BISYS Agrees to use all

reasonable efforts to ensure the delivery of such reports 95% of all business

days during a calendar month. BISYS further agrees to use all reasonable

efforts to ensure that month end reports, which are deemed critical by Client,

will be delivered no later than 8:00 A.M. of the business day following the

last business day of the immediately preceding calendar month.

 

13.   [INTENTIONALLY DELETED]

 

14.         (a)   During

the Initial Period, Client shall have the right to terminate, without penalty,

this Agreement in accordance with the following:

 

(i)             Client shall have the right to terminate

this Agreement at any time within the 24 months after the Initiation Date

provided Client gives BISYS at least 180 days written notice on or before the

last day of month 24 after the Initiation Date; or

 

6

 

(ii)          Client shall have the right to terminate this

Agreement at any time during months 25 through 54 after the Initiation Date

provided Client gives BISYS at least

one year prior written notice;

 

(iii)       The notice of termination shall also detail

Client's reasons for terminating this Agreement. BISYS and Client may agree

that BISYS shall have sixty (60) days from receipt of such notification to cure

any deficiencies to    Client's reasonable

satisfaction. At the end of the sixty (60) day cure period, Client and BISYS

may agree in writing to void Client's notice of termination and BISYS shall

continue to provide Services to Client pursuant to the terms and conditions set

forth herein.

 

(b)         Any termination of this Agreement pursuant to

Paragraph 14(a) above shall be effective provided that:

 

(i)             Client pays BISYS for all Services in

accordance with the terms of this Agreement and Addendum through the effective

date of termination (i.e., at least 180 days or one year after the date of

written notice of termination) including all pass–through charges; and

 

(ii)          Client shall pay BISYS for all deconversion

assistance in accordance with the provisions of Paragraph 8(B) of the Agreement

and BISYS agrees that Client shall be entitled to receive [***] on deconversion charges; and

 

(iii)       All payments shall be made prior to delivery of

Client Files.

 

15.         For informational purposes only, and in no

event in modification of BISYS limitation of liability provisions, BISYS

currently maintains, on its own behalf, the following insurance coverages in

amounts customary and standard in the data processing industry:

Errors and Omissions

Fidelity Bonds

Business Interruption

Casualty

 

During the term of the Agreement, BISYS agrees

that it shall maintain, on its own behalf, the above coverages in amounts

customary and standard in the data processing industry. BISYS further agrees to

notify Client of any reductions in its insurance coverage during the term of

the Agreement.

 

7

 

16.         The first two sentences of Paragraph 5(A) of

the Agreement are replaced in its entirety with the following:

 

“Client is exclusively responsible for the

consequences of its own actions; for any instructions it gives BISYS; for its

failure to access the Services in the manner prescribed by BISYS; and for its

failure to supply accurate input information. Client is responsible for

auditing, balancing, verifying the correctness of calculation routines (such as

interest and services charges) and reconciling any out–of–balance

condition, and for notifying BISYS of any errors in the foregoing within the

later of (i) three business days after Client receives such incorrect

information or three business days after Client should have reasonably known of

such errors.”

 

17.         Paragraph 5(C) of the Agreement shall be

amended by adding the following language at the end of the Paragraph:

“... Notwithstanding the foregoing, the Client shall have the right to

provide to an affiliate of Client any of the Services provided hereunder and

subject to any additional charges therefor. For purposes herein, the term

“affiliate” shall mean a corporation or entity which has at least fifty percent

common ownership with Client. ”

 

18.         Paragraph 5 of the Agreement shall be amended

to add the following as Subparagraph 5(F):

 

“F. 

BISYS shall give Client prior written notice of any BISYS system change

which materially affects the Services. Nothing herein shall preclude or limit

BISYS' ability to make changes to its system. If any such system change

materially negatively affects the daily business operations of Client, such

action may be deemed by Client an “Event of Default” (as defined in Paragraph

15(A) of the Agreement), and Client may exercise its rights pursuant to

Paragraph 15(B) of the Agreement and BISYS shall have the right to cure such

default in accordance with the provisions of Paragraph 15(B) to Client's

reasonable satisfaction. In the event BISYS cannot cure such default (as set forth

in this Paragraph), BISYS shall provide deconversion assistance at no charge to

Client. BISYS shall provide Client with at least 150 days prior written notice

of the effective day of any BISYS system change.”

 

19.         Paragraph 9(E) of the Agreement is amended by

adding the following language to the first sentence after the words “other

form”; “... except that Client may copy printed material for the purpose of

teaching and training Client's employees about the BISYS system upon written

notice to BISYS.”.

 

8

 

20.         Paragraph 9(F) of the Agreement shall be

amended to include the following language:

 

“BISYS shall treat as confidential and will

not disclose or otherwise make available any information regarding Client or

its methods of operation, including without limitation, any of Client Files or

business procedures of Client (collectively, the “Client Confidential

Information”), in any form to any person other than employees of BISYS. No

information shall be deemed to be part of Client Confidential Information to

the extent that such information is (A) in or becomes part of the public domain

other than by disclosure by BISYS in violation of this Agreement; (B) known to

BISYS previously; (C) independently developed by BISYS outside this Agreement;

or (D) rightfully obtained by BISYS from third parties. BISYS will instruct its

employees who have access to the Client Confidential Information to keep the

same confidential by using the same care and discretion that BISYS uses with

respect to its own confidential property and trade secrets. Upon termination of

this Agreement for any reason, BISYS shall return to Client any and all copies

of the Client Confidential Information which are in its possession in

accordance with the terms of this Agreement.”

 

21.         Paragraph 7(A) is amended by adding the

following language at the end of the Paragraph: “BISYS acknowledges and agrees

that all information provided to it, including, without limitation, the Client

Files (“Client Information”), is the property of the Client. BISYS agrees that

Client Information will only be divulged to and used by BISYS employees (the

“Permitted Persons”). BISYS will not allow any Permitted Persons to disclose or

use Client Information, except in accordance with the terms of this Agreement

and Addendum.”

 

22.         Paragraph 7(C) of the Agreement is amended by

adding the following language at the end of the Paragraph:

 

“BISYS agrees to provide Client, upon

execution of this Agreement, with a copy of the BISYS current record retention

policy.”

 

23.   Paragraph 7(D) of the

Agreement shall be replaced in its entirety by the following:

 

“D.    

BISYS has a written Disaster Recovery Plan establishing emergency

procedures, including an off–premises back–up facility. BISYS

agrees that such Plan, including the operation of the back–up facility,

will be tested on at least an annual basis and the results of such testing

shall be made available to Client. In connection therewith, BISYS has prepared

a Disaster Recovery Manual, which complies and will continue to comply in all

material respects with requirements of applicable regulatory authorities with

respect to disaster recovery. The Disaster Recovery Plan and Disaster Recovery

Manual are available at the Data Center for examination by bank auditors and

examiners and, as they may be modified from time to time, will remain in existence during the

term of this

 

9

 

Agreement. BISYS shall provide Client, upon

written request, with information necessary for Client to develop a disaster

contingency plan which will work in concert with BISYS' Disaster Recovery

Plan.”

 

24.         Notwithstanding anything to the contrary

Paragraph 10(C) of the Agreement shall be supplemented to include the following

sentence at the end:

 

“BISYS agrees that BISYS' procedures and

Services provided to Client hereunderwill comply to the extent that compliance

is within BISYS' reasonable control to applicable laws and regulations, and in

all material respects with governmental regulatory guidelines and procedures. “

 

25.   (a)   Paragraph 10 of the Agreement shall be amended to add the

following as Subparagraph 10(D):

 

“D.    

In the event any modifications to the Services required by law or by any

governmental regulatory authority which modifications, in BISYS' sole

discretion, are beyond the capability of the BISYS system to implement, BISYS

agrees to use its best efforts to assist Client to ensure Client receives

Services which are in compliance with regulatory requirements.”

 

(b)         Notwithstanding anything to the contrary

contained in Paragraph 10(B) Client shall receive a copy of the Third Party

Review Report on an annual basis and the fee for such report shall be included

in the Fixed Monthly Charge.

 

26.         The second sentence of Paragraph 12(A) of the

Agreement shall be deleted and replaced in its entirety with the following:

“BISYS' sole liability, if any, for damage (monetary or otherwise) resulting

from claims made by Client or any third party arising from or related to any

and all causes not covered by the foregoing remedies shall be limited to the

lesser of (a) the amount of actual damages incurred by Client; or (b) the

greater of (i) an amount which shall not exceed the charges paid by Client

during the six (6) month period immediately preceding the event from which such

liability arose for the Services performed which gave rise to the claim or (ii)

an amount which shall not exceed the total charges paid by Client during the

one month immediately preceding the event from which such liability arose.”.

 

27.         (a)   Notwithstanding

anything to the contrary, the second sentence of Paragraph 13 of the Agreement

shall be deleted and replaced with the following:

 

“BISYS shall promptly notify Client in the

event any of the Services  becomes, or in

BISYS' opinion is likely to become, the subject of a claim of infringement of

patent or copyright, or upon receipt of notice of a claim, and at its option,

may (i) secure for the Client the right to continue

 

10

 

using such Service(s), (ii) replace or modify

such Services to make it or them non–infringing, (iii) cease providing

the affected Service(s) or (iv) if none of the foregoing options is

commercially reasonable, in BISYS' opinion, terminate this Agreement.”

 

(b)         Paragraph 13 of the

Agreement is supplemented by adding the following sentence at the end of the

Paragraph:

 

“In the event BISYS exercises its option to

cease providing the affected Service(s),

BISYS shall refund Client an amount equal to the license fee charged to Client

for the initial installation of such third party provided Service.”

 

28.   Paragraph

15(A)(i) is amended to add the word “undisputed” between “any” and “amounts”.

 

29.         Notwithstanding anything

to the contrary set forth in Paragraph 15 of the Agreement, BISYS agrees that

in the event Client fails to pay any amounts due hereunder to BISYS, BISYS will

provide Client with at least 120 days prior written notice to Client that

Client is in default, before BISYS can exercise its option to terminate this

Agreement as set forth in Paragraph 15(B) of the Agreement.

 

30.         Paragraph 17(H) is amended by adding the words

“and Client Information” after “Client Files”.

 

31.         Except for any equitable proceeding brought

pursuant to Paragraph 17(H) of the Agreement, BISYS and Client agree that all

disputes arising out of, in connection with or relating to this Agreement shall

be submitted to final and binding arbitration pursuant to the United States

Arbitration Act and the rules of the American Arbitration Association then in

effect. Judgement on the award rendered by the arbitrator may be entered in any

court having jurisdiction thereof. Arbitrations conducted in accordance with

this Paragraph shall be conducted by a single arbitrator selected by the

parties from (i) a list of three (3) knowledgeable individuals eligible to

serve as arbitrator for the dispute submitted by the person filing a demand for

arbitration, or (ii) if the other party so requests, a master list composed of

the potential arbitrators suggested by the party demand arbitration and a list

of three (3) knowledgeable individuals eligible to serve as arbitrator

submitted by the other party. Each party shall be entitled to be represented by

counsel in the arbitration. BISYS and Client agree that based upon a final

decision of the arbitrator, the prevailing party can seek reimbursement for its

costs and reasonable attorneys' fees in connection with any claim brought

hereunder. Except as otherwise agreed by BISYS and Client, the provisions of

this Agreement shall remain in full force and effect pending resolution of any

dispute pursuant to arbitration.

 

11

 

32.         If during the term of

this Agreement, [***], BISYS will promptly notify Client [***]. Client, at its option, may elect [***], this Agreement being deemed to be so

amended as of that date. However, BISYS shall be under no obligation to

disclose [***].

 

33.         Neither BISYS nor Client

shall (except to persons acting on behalf of such party) disclose, and neither

party shall permit any of its employees or other persons who act or     acted in its behalf to disclose, any of the

terms and conditions of the Agreement, including without limitation any

Addendum or pricing terms, except as may be required by law. Notwithstanding

the foregoing, consultants employed by Client in connection with the

negotiation of this Agreement may use general knowledge and experience gained

in connection with such employment in their future consulting activities.

 

Except as expressly amended and supplemented hereby, the Agreement

shall remain unchanged and continue to be in full force and effect.

 

This Addendum supersedes and replaces any prior agreement (written or

oral) as to its subject matter. If there is any conflict between the terms and

conditions of this Addendum and the terms and conditions of the Agreement or

any prior addendum to this Agreement, the Terms and Conditions of this Addendum

shall prevail.

 

	

  BISYS, INC.

  	

   

  	

  FIRST ESSEX

  BANK, FSB

  
	

   

  	

   

  	

   

  
	

  By: 

  	

   /s/ JOHN D. ROGERS

  	

   

  	

  By:

  	

  /s/ PETER A.

  BOYLE

  
	

   

  	

   

  	

   

  
	

  Name: 

  	

  John D.

  Rogers

  	

   

  	

  Name:

  	

  Peter A.

  Boyle

  
	

   

  	

   

  	

   

  
	

  Title:

  	

  Executive

  Vice President

  	

   

  	

  Title: 

  	

   Senior Vice President

  
	

   

  	

   

  	

   

  
	

  Date:  12/8/93

  	

   

  	

  Date:12/7/93

  
								

 

	

  THIS ADDENDUM SHALL BECOME EFFECTIVE UPON BEING SIGNED BY AN AUTHORIZED

  OFFICER OF BISYS.  BISYS' MARKETING

  REPRESENTATIVES DO NOT HAVE THE AUTHORITY TO BIND BISYS.

  

 

12

 

EXHIBIT A

 

Services Included in

the Fixed Monthly Fee:

 

Savings and CD Processing

 

On-Line History including File Maintenance

CD Term History and Penalty Accounts

Retirement Processing Including Statements

SAV/CD Variable Interest Accounts

Service Charges

TotalPlus Currency Reporting

Interest On Lawyer Accounts

SAV/CD Detail Statements Produced

Statement Cycles (4)

SAV/CD Interest Checks

Certificate Notices

 

Demand Deposit Accounts

 

DDA Statement Check Register Transmission

All DDA Transactions

Line of Credit Accounts

Automatic LOC Disbursements

DDA Variable Interest Rate Accounts

Account Analysis

Extra DDA Cycles

Financial Summary and Other Activity

Statements

IEH Processing

Exception Item Pull Transmissions/Processing

Statement Rendering Transmissions

 

Mortgage Loan Processing

 

On–Line History including File

Maintenance

Investor Reporting and Processing

Coupon Processing

Escrow Processing

Tax and Insurance Processing

GL and DDA Investor Transactions

Adjustable Rate Mortgage Loan Processing

AML Rate Change Notices

Bill and Receipt Notices

Interest on Escrow Accounts

M/L Deferred Fee/Cost Accounts

FHLMC Midanet Tape Production

Laser Reporting Tape Production

Loan Commitments – Type 15

Extra ML Trial Runs

 

 

Construction Loans

 

Processing and History including File

Maintenance

 

Commercial Loans

 

Processing and History including File

Maintenance

 

Installment Loans

 

Adjustable Rate I/L

On-Line History including File Maintenance

Coupon Processing

Notice/Billing Runs

Overdraft Notices

Deferred Fee/Cost Accounts

 

Other Services included in Fixed Fee

 

Financial Manager System Accounts

TFM Asset/Liability Accounts

TotalMatic Accounts

 

TMM Quarterly Update or TMM Client Site

Householding

 

CIF Processing

Reconciliation Processing

ACH Processing

Credit Bureau Reporting

Single Interest Loan Analyzed by Rate Report

EOM I/L Classification Report

Safe Deposit Processing

3% Disaster Recovery Surcharge

Terminal Operator Security System

TargetPlus Reporting

Internal Transfer/External Drafts

Other Source Tape Processing

Monthly Financial Reporting Pages

Reconciliation Processing

Full Recon Items

Account Recon Tapes

ARP Check Items Selected

Transaction Processing Notices

Automatic Withholding Accounts

 

 

SECOND ADDENDUM TO SERVICES AGREEMENT NO. CH-2036-12-91

 

SERVICES AGREEMENT DATED AS OF OCTOBER 1, 1993

 

Reference is made to the above

Services Agreement and Addendum between the undersigned (the “Agreement”) to

which this Second Addendum is attached and made a part thereof.

 

The Agreement is hereby amended

and supplemented as follows:

 

1.          Except

as expressly amended and supplemented hereby, all terms defined in the

Agreement shall have the same meanings when used herein.

 

2.   Term

of Agreement.

 

2.1         BISYS

and Client agree that the Agreement shall automatically continue for a

subsequent renewal term of seventy-two (72) months commencing April 1, 1998 and

ending March 31, 2004 (the “Renewal Term”).

 

2.2         If,

as a result of acquisition after the First One Year Period of the Renewal Term,

Client is acquired by or merged into (and is not the surviving entity), a final

organization which does not have a valid Services Agreement with BISYS, Client

shall have the option to terminate this Agreement prior to the end of the

Initial Period and Renewal Term and such termination will be effective provided

that:

 

(a)          Client

provides written notice of its intention to terminate this Agreement pursuant

to this Paragraph not later than ninety (90) days after the date following

final regulatory approval of the acquisition or merger by the appropriate

regulatory bodies;

 

(b)         The

effective date of termination in Client's written notice shall not be less than

180 days after the date of such notice;

 

(c)          Client

shall pay BISYS for all Services provided by BISYS through the effective date

of termination, including all pass-through charges; If termination date is

within the first one (1) year period [***]

of normal charges apply for the months between the termination date and month

twelve (12).

 

(d)         Client

shall pay BISYS an amount equal to the lesser of (i) the difference between the

total charges for services utilized by Client as set forth on the Standard

Services Price List during the Renewal Term through the effective termination

date and the charges paid by Client for those same Services in accordance with

the discounts and credits granted in the Agreement and this Second Addendum, or

(ii) the average monthly charges as calculated over the twelve month period

immediately proceeding the termination date for Services utilized by Client

excluding Pass Thru charges times the number of months remaining the Renewal

Term times [***].

 

(e)          Client

shall pay for all Deconversion assistance in accordance with Paragraph 8(B) of

the Agreement; and

 

(f)            All

payments must be made prior to delivery of Client Files.

 

 

 

2.3         Notwithstanding

anything to the contrary contained in Section 2 of the Agreement, if at any

time during the Renewal Term, all or substantially all of the components of

BISYS TOTALPLUS currently in use by Client are sold to a third party and

because of such sale, Client is required to convert to a non-BISYS data

processing system, then Client's sole remedy and BISYS' sole liability shall be

for Client to terminate this Agreement upon at least 90 days prior written

notice to BISYS.  Termination pursuant

to this paragraph shall be effective provided that:

 

(a)          The

effective date of termination and Client's date of deconversion from the BISYS

System in Client's written notice shall not be less than 90 days; and

 

(b)         Client

pays BISYS for all Services provided by BISYS through the effective date of

termination, including all pass-through charges, and Client shall not pay any

other early termination fee; and

 

(c)          Client

pays for Deconversion assistance in accordance with Paragraph 8(B) of the

Agreement; and

 

(d)         All

payments must be made prior to delivery of Client Files.

 

3.  Charges.

 

3.1         Paragraph

2(c) of the first Addendum is replaced in its entirety with the following

language:

 

For purposes

of this Agreement and Second Addendum, the term “One Year Periods(s)” shall

mean twelve (12) month period commencing December 1 of each calendar year and

the indication as to which twelve (12) month period is indicated will be with

the addition of an ordinal number preceding the term One Year Period, i.e.,

first One Year Period, Second One Year Period, etc.  The account volumes used to determine the Fixed Monthly Charge

will be determined by using the account volume as of the previous October 1,

provided, however, that a purge of Client's closed accounts has occurred.  If a purge of closed accounts has not

occurred, then the determination for account volumes will be made using the

account volumes for the month immediately following the purge date.

 

3.2         During

the Renewal Term, Client shall receive [***]

on the charges for ATM transaction fees set forth in the July 1996 Price Lists.

 

3.3.      BISYS

agrees that commencing on the first day of the calendar month following the

date this Second Addendum is executed by both parties, Client shall be entitled

to receive a non-cumulative monthly [***]

to be applied at Client's discretion, against the charges for Services utilized

by Client and set forth on the Monthly Invoice, provided however, that in no

event shall this credit be applied against charges for hardware/equipment or

pass-through charges.

 

3.4         Paragraph

2(d) of the first Addendum dated as of October 1, 1993 shall be amended by

inserting the following additional levels of Year End Accounts and Monthly Fee

Per Year End Account:

 

	

  Number of

  Year End Accounts

  	

   

  	

  Monthly

  Fee Per Year End Account

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  100,000 to 150,000

  	

   

  	

  [***]

  	

   

  
	

  more than 150,000

  	

   

  	

  [***]

  	

   

  

 

2

 

 

3.5         BISYS

agrees to amend “Exhibit A” to include the following Services as part of the

Fixed Monthly Charge:

 

Interactive

Exception Handling

Test Bank

 

3.6         During

the first twelve months following the date this Second Addendum is executed by

both parties, BISYS agrees to waive the charges associated with twenty (20)

days of training on the BISYS System, and such training will be conducted at

Client's location.  During each

subsequent twelve month period, BISYS agrees to waive the charges associated

with ten (10) days of training on the BISYS System for Client employees, and

such training will be conducted at Client's location.  The only charge to Client will be for “out-of-pocket” expenses

incurred.

 

3.7         BISYS

and Client agree that Paragraph 6 of the first Addendum is amended by deleting

the words, “(with Client remaining the surviving entity, after merger as

determined by the agreements controlling such transactions)”.

 

4.   BISYS Client Server Product.

 

4.1         If

after the First One Year Period, Client elects to transition from the BISYS

System to an alternative BISYS provided system (the “New BISYS System”), BISYS

agrees to provide necessary support at no cost to Client (e.g., consultation,

analysis, training and conversion assistance), to facilitate Client's

transition to the New BISYS System, provided, however, Client pays BISYS all

out-of-pocket costs incurred by BISYS associated with Client's transition to

the New BISYS System.  At the time

Client commences utilizing the New BISYS System, BISYS agrees that the Services

utilized by Client on the Current BISYS System will be provided to Client by

BISYS on the New BISYS System in accordance with the terms and conditions set

forth in this Agreement.  During the

first 180 days following Client's transition to the New BISYS System, BISYS and

Client will review the terms and conditions of this Agreement and Addendum to

determine if such terms and conditions are applicable to the delivery of the

services by BISYS.  Prior to the Client's

conversion to the New BISYS System, BISYS and Client agree to negotiate the

charges for the New System.

 

5.   Year 2000.

 

5.1         BISYS

agrees to perform comprehensive tests on the BISYS System to simulate the

actual turning of the century.  These

tests shall be intended to identify any operational issues caused by the

century change at midnight December 31, 1999. 

BISYS agrees to release by December 31, 1998, all necessary updates and

changes for the BISYS System, if any, to accommodate the turn of the century.  BISYS agrees to distribute any such change

or updates to the BISYS System when they are generally made available to its

Clients.  Such distribution may be in

the form of new releases, updates or other similar methods of distributing

software bug fixes as BISYS may see fit. 

All modifications, updates or changes made by BISYS shall be to the

BISYS System, BISYS provided third party software products and interfaces only,

and not to any third party provided software. 

In the event that BISYS is unable to complete all necessary changes

required for Year 2000 processing, by December 31, 1998, the Client may choose,

at its sole discretion, to move to the BISYS Client Server offering.  The Client must notify BISYS of its intent

to convert to the Client Server offering on or before January 31, 1999, and

BISYS will provide the conversion to the Client Server Product at no cost,

except “out-of-pocket” expenses incurred. 

The conversion of the Client to the Client Server offering will be

completed no later than August 1999.

 

3

 

6.  Performance Standards.

 

6.1    Event

of Non Performance.  If the Client

believes that a significant error was made by BISYS that caused the Client

unusual and avoidable expense to correct, the Client can notify BISYS in

writing that an Event of Non Performance has occurred.  This is intended to address errors such as

misposting of customer transactions (double post, triple post, cross post,

failure to post, etc.), incorrect customer communication (inaccurate

statements, missing statements, inaccurate notices, missing notices), and

failure to provide critical data or reports the customer or bank requires to

process its daily work.

 

6.2    Client

Rights in the Event of Non-Performance. 

BISYS agrees that upon receipt of written notification from Client that

BISYS has not achieved the level of performance as set forth in the foregoing

subparagraph 6.1, Client and BISYS agree to the following:  A “TOTALPLUS” Executive and First Essex

Executive will meet, review the circumstances, establish a plan to avoid a

similar occurrence in the future and jointly determine applicable penalty due

if any.

 

6.3    Exclusions.  No credits will be given for any Event of

Non-Performance which is not correctable by reasonable actions of BISYS or for

reasons beyond BISYS' reasonable control, including, without limitation,

destruction of equipment, communication line failure, fire Acts of God or acts

of governmental or judicial authority.

 

6.4    BISYS

will provide support to Client in the same or similar manner as outlined to

Client in the account support presentation and document.

 

7.         Neither

BISYS nor Client shall (except to persons acting on behalf of such party)

disclose, and neither party shall permit any of its employees or other persons

who act or acted in its behalf to disclose, any of the terms and conditions of

the Agreement including without limitation any Addendum or pricing terms,

except as may be required by law.

 

Except as expressly amended and

supplemented hereby, the Agreement shall remain unchanged and continue to be in

full force and effect.

 

This Addendum supersedes and

replaces any prior agreement (written or oral) as to its subject matter.  If there is any conflict between the terms

and condition of this Addendum and the terms and conditions of the Agreement or

any prior addendum to this Agreement, the Terms and Conditions of this addendum

shall prevail.

 

	

  BISYS, INC

  	

   

  	

  FIRST ESSEX

  BANK, FSB

  
	

   

  	

   

  	

   

  
	

  By:  

  	

  /s/ W. W.

  NEVILLE

  	

   

  	

  By:

  	

  /s/ WAYNE C.

  GOLON

  
	

   

  	

   

  	

   

  
	

  Name:

  	

  W. W. Neville

  	

   

  	

  Name:

  	

   Wayne C. Golon

  
	

   

  	

   

  	

   

  
	

  Title:

  	

  President

  	

   

  	

  Title:

  	

  Executive

  Vice President

  
	

   

  	

   

  	

   

  
	

  Date:  4/30/98

  	

   

  	

  Date:  4/30/98

  
									

 

	

  THIS ADDENDUM SHALL BECOME EFFECTIVE UPON

  BEING SIGNED BY AN AUTHORIZED OFFICER OF BISYS.  BISYS' MARKETING REPRESENTATIVES DO NOT HAVE THE AUTHORITY TO

  BIND BISYS.

  

 

4EXHIBIT 10.20

 

 

AGREEMENT I.D.

#                   

 

CUSTOMER

#                   

 

DATA PROCESSING SERVICES AGREEMENT

 

THIS AGREEMENT is

entered into by and between BANKLINE NEW

ENGLAND, INC., 8 Landing Lane, Hopedale, Massachusetts, 07147 and FIRST ESSEX BANK, 296 Essex Street, P.O.

Box 1000, Lawrence, MA 01842–2489 as follows:

 

1.               Bankline New England, Inc. (hereafter

referred to as “BANKLINE”), agrees to furnish to FIRST ESSEX BANK (hereinafter

referred to as “Customer”), the services and products as described in the

schedule attached hereto and incorporated herein.

 

	

  Vc

  	

   

  	

  Check and

  Statement Imaging

  
	

  Z

  	

   

  	

  -

  Modifications and Addenda to Agreement

  
	

   

  	

   

  	

  -

  Implementation

  
	

   

  	

   

  	

  -

  Out-of-Balance Situations

  
	

   

  	

   

  	

  - Disaster

  Recovery

  
	

   

  	

   

  	

  - Insurance

  
	

   

  	

   

  	

  - Bank

  Acquisitions

  
	

   

  	

   

  	

  - Year 2000

  compliance

  
	

   

  	

   

  	

  - Early

  Termination

  
	

   

  	

   

  	

  -

  Performance Standards

  
	

   

  	

   

  	

  - Conversion

  Costs

  
	

   

  	

   

  	

  - Default

  and Remedies Upon Default

  
	

   

  	

   

  	

  -

  Arbitration

  
	

   

  	

   

  	

  - Other

  Addenda

  
	

  ZZ

  	

   

  	

  Processing

  Schedule

  

 

[***] = Omitted information is

filed separately with the Securities and Exchange Commission pursuant to a

confidential treatment request.

 

 

CUSTOMER AGREEMENT

 

THIS AGREEMENT made

on this 26th day of August, 1997, by and between BANKLINE NEW

ENGLAND, INC., doing

business as (“Bankline”) and FIRST ESSEX BANK

(“Customer”).

 

WHEREAS, Customer

desires to retain the data processing services of Bankline and Bankline is

willing to provide data processing services to Customer on certain terms and

conditions.

 

NOW,

THEREFORE, in consideration of the premises and mutual

covenants hereinafter set forth, the parties hereto agree as follows:

 

1.               Services.

Bankline shall: provide Customer at Bankline’s place or places of business and

at Customer’s place or places of business, as set forth below, all services as

set forth in the attached Schedules, incorporated herein by reference (the

“Services”); train the Customer and its employees in the use and interpretation

of all input, output and reports produced by Bankline for Customer’s use;

furnish to Customer special reports and other additional services upon such

terms, at such times and for such fees as shall from time to time hereafter be

agreed upon by Bankline and Customer; and provide at Customer’s expense, such

information concerning the services rendered under this Agreement as Customer’s

auditors may request upon the Customer’s written authorization.

 

2.               Term.

The initial term of this Agreement shall be for a period of thirty–six

(36) months and shall commence on November 1, 1997. Thereafter, this Agreement

shall be automatically extended for a period of twelve (12) months at the then

current fees unless either party notifies the other party in writing at least

six (6) months prior to the end of the initial term or any extension thereof.

 

3.               Fees.

 

a.               Customer hereby agrees to pay Bankline

the fees and charges set forth in the attached Schedules, incorporated herein

by reference. Full payment shall be due within ten (10) days of the date of the

invoice provided to the Customer. In addition, the parties hereto agree that with

60 days notice, Bankline may, at the expiration of this contract, modify the

fees and charges set forth in the schedule.

 

b.              At each anniversary of this contract a

price adjustment will be made on the charges set forth in the schedules, based

on the “Wholesale Price Index”. The change will not exceed [***] of the previous year’s charges.

 

c.               In addition to the fees set forth in

paragraph 3a above, Customer hereby agrees to reimburse Bankline for any

special or unusual expense incurred by Bankline at Customer’s request,

including services relating to Customer’s audit requirements.

 

d.              In the event that Customer fails to pay

any or all amounts due Bankline within thirty (30) days of the date of an

invoice, Customer agrees to pay Bankline monthly interest at the rate equal to

the lesser of one and three quarters percent (1 3⁄4 %) or the highest

rate permitted by applicable law, on all amounts outstanding, together with

reasonable attorney’s fees and costs incurred in the collection thereof.

 

e.               In the event that Bankline so requests

in writing, Customer agrees to post a security deposit in an amount equal to

one (1) month’s processing fee as estimated by Bankline.

 

2

4.     Duties and Representations of Customer.

 

a.               Customer shall furnish data to Bankline

in a form acceptable to Bankline at the time provided in the attached

Schedules.

 

b.              Customer shall extend the time

requirements to allow for any rescheduling of Customer’s work caused by

Customer’s failure to furnish its data in accordance with the attached

Schedules, or on incomplete or incorrect forms, and to pay all expenses of such

rescheduling.

 

c.               Customer shall reject in writing any

incorrect report within three (3) business days after receipt of same and that

failure to so reject shall constitute Customer’s acceptance of the report.

 

d.              Customer shall pay Bankline for any tax,

except income, real estate or occupation tax, which shall, at any time, become

payable in respect of this Agreement or for the Services provided hereunder.

 

e.               Customer shall permit Bankline to retain

Customer’s data except as otherwise provided herein, whenever Customer is in

default with regard to any payment required hereunder and Customer hereby

grants Bankline a security interest in such data.

 

f.                 Customer shall be responsible for and

safeguard documents in transit, unless otherwise provided in the attached

Schedules.

 

g.              Customer hereby indemnifies and holds

Bankline harmless from liability, and shall not seek to hold Bankline responsible

for delay in providing or failing to provide Services if due to causes or

conditions beyond Bankline’s reasonable control, or for any inaccuracy,

inadequacy, or omission in any data, information or instructions furnished by

the Customer.

 

h.              Customer hereby indemnifies and holds

Bankline harmless from any and all liability, including reasonable attorney’s

fees arising from a claim asserted with respect to this Agreement or the

Services provided hereunder, by any employee of Customer or any other third

party, none of whom shall have any rights or claims against Bankline by virtue

of this Agreement.

 

i.                  Customer agrees that in the event

this Agreement is terminated early by either party for any reason, Customer

shall purchase at cost from Bankline all Customer forms custom made for the

Customer in the Bankline inventory, at the time of early termination.

 

j.                  Customer warrants and represents that

it will be free, as of the date of the execution of this Agreement, of any

contractual obligation that would prevent the Customer from entering into this

Agreement, and that Bankline’s offer to provide such services in no way caused

or induced the Customer to breach any contractual obligation.

 

k.               Customer shall conduct a regular review

of system access by its employees, review of authorized users and notify

Bankline in writing, of any errors, breaches of security or unauthorized access

to the system on a timely basis.

 

3

 

l.                  Bankline shall permit Customer’s duly

authorized representative to examine procedures, internal controls and

accounting related functions as they apply to services provided by Bankline to

Customer under this agreement. Properly executed written authorization shall be

submitted to Bankline by Customer.

 

m.            Customer shall be responsible for

confirmation that adequate coverage is in place to protect Customer and

Bankline from Customer’s employee dishonesty while processing Customer’s data.

Customer shall furnish proof of such coverage upon signing of this agreement.

 

n.              Customer agrees that in the event

Customer requests programming changes to the system for Customer’s specific

benefit, Customer shall submit such request in writing, defining such changes

requested and duly authorize such changes be made.

 

5.              Warranties

of Bankline.  Bankline hereby warrants and

represents that it will exercise ordinary care in processing the Customer’s

work and that it will hold in confidence all information relating to the

assets, liabilities, business and affairs of the Customer received by Bankline

in rendering the Services under this Agreement, except to the extent that

disclosure is authorized by the Customer or compelled by governmental

regulation or legal process.

 

6.              Limitation

of Liability.  Bankline’s liability hereunder for

damages, regardless of the form of action, shall not exceed the total amount

paid for Services for one month under attached Schedules or in the

authorization for the particular service if not pursuant to a schedule. This

shall be Customer’s exclusive remedy. Furthermore, Bankline shall not be liable

for any lost profits, consequential damages or for any claim or demand asserted

against Customer by any other party. No action, regardless of form, arising out

of the services under this Agreement, may be brought by either party more than

two years after the cause of action has accrued, except that an action for

nonpayment must be brought within one year of the date of last payment.  There are no warranties other than those

described in this Agreement.

 

7.              Miscellaneous.

 

a.               All specifications, tapes, programs,

concepts, expertise and procedures developed or utilized by Bankline for

Customer, except as provided by Customer, are and remain the sole property of

Bankline unless otherwise specifically provided herein.

 

b.              All master files shall remain the

property of Customer unless provided otherwise in the attached Schedules.

Master files will be provided at Bankline’s then current standard rate to the

Customer in such machine–readable form as Bankline produces in its

ordinary course of business, if requested by the Customer in the event of

termination.

 

c.               This Agreement, together with all

appendices or other attachments referenced herein, constitutes the entire

agreement between the parties hereto and supersedes all proposals, oral and

written, between the parties on this subject.

 

d.              This Agreement shall be governed by the

laws of the State of Massachusetts as set forth herein.

 

e.               Any invalidity, in whole or in part, of

any provision of this Agreement shall not affect the validity of any other of

its provisions.

 

4

 

f.                 Any notice or other communication

hereunder shall be in writing.

 

g.              No term or provision hereof shall be

deemed waived and no breach excused unless such waiver or consent shall be in

writing and signed by the party claimed to have waived or consented.

 

h.              The Data Processing Services Agreement

and Schedules attached are part of this Customer Agreement.

 

IN WITNESS WHEREOF,

the parties have caused this Agreement executed and each warrants and

represents that the person whose signature appears below has been and is on the

date of this Agreement duly authorized by necessary and appropriate corporate

action to execute this Agreement.

 

	

  BANKLINE NEW ENGLAND, INC.

  	

  FIRST ESSEX BANK

  
	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ CHARLES

  E. WYMAN

  	

   

  	

  By:

  	

     /s/

  WAYNE C. GOLON

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  It’s

  	

  President

  	

   

  	

  It’s

  	

     Exec

  Vice Pres

  	

   

  
	

   

  	

   

  	

   

  	

  8/26/97

  	

   

  

 

5

 

SCHEDULE Vc

 

APPLICATION:                       Check

and Statement Imaging with Back Office Services

 

Back Office with Imaging includes all of the

regular back office functions performed in an imaging environment.  Items are digitally imaged and archived on

laser platters rather than microfilmed. Transit items are power encoded by the

imaging reader–sorter, and on–us over the counter items are not

encoded.

 

Statements are laser printed along with laser

printed pages of the imaged checks. The number of checks on each page is

controllable by account. The date of presentment, check number and amount of

check will be printed under each check image. Exception item notices contain

images of the items which are exceptions

 

Statements for customers that do not elect to

have image statements will receive the items with the statements. Imaged checks

pages will not be produced for these customers.

 

Checks are retained for thirty (30) days

after statement cycle by Bankline and

then returned to Customer in bulk. Research is conducted from the digital

images by electronic search and select rather than by visually scanning

microfilm or fiche. Customer PC’s may be connected to the Bankline network for

electronic search and retrieval.

 

Bankline will provide Customer with a Summary

of Function document which will generally outline service and procedures

performed by Bankline. The Summary of Functions may be modified or updated by

Bankline from time to time as circumstances warrant.

 

Bankline will provide Customer with “Written

Performance Standards” which Bankline will strive to maintain.

 

All of the itemized services set forth in the

Summary of Function are included in a flat charge of [***] per item handled.

 

Fine sorting of checks to be returned with

statements will be charged at the rate of [***]

per item. When Customer introduces an image statement product with a marketing

plan to gain wide acceptance, the exception statements (statements with checks)

will be processed without a fine sort charge.

 

Customer is responsible for postage charges

at prevailing rates and will maintain an appropriate pre–paid escrow with

Bankline for postage. Bankline will strive to maintain the most cost effective

postal rates. Third party postal services may be utilized to achieve this, and

such services will be passed through to Customer.

 

Stock forms are included in the pricing.

 

Customer will provide cut-form statements,

forms, notices, letterhead, and paper used for laser printing.

 

6

 

SCHEDULE Z

 

MODIFICATIONS TO “DATA PROCESSING SERVICE

AGREEMENT” AND “CUSTOMER AGREEMENTS”

 

1.               All references to “data processing

services” shall mean “image/item processing services.”

 

2.               Paragraph 3b shall not apply to the

Agreement, i.e., a price index adjustment will not be applied to the

prices during the Agreement term.

 

3.               Insert in paragraph 3a in the second

sentence after the word date, “of receipt”

 

4.               Add to the end of the 2nd sentence of

paragraph 3a after the word Customer “excluding any disputed amounts related to

charges not included in the “fixed or pass through charges”.

 

5.               The last line of Section 4b is changed

to read “... and to pay all out of pocket expenses reasonably incurred as a

direct result of such rescheduling.

 

6.               Paragraph 4c shall be amended by adding

the following sentence. The customer has five (5) days after an error is

discovered or should have been discovered to notify Bankline in writing the

description of the error and the requested correction procedure. Bankline has

three (3) days to reply to the Customer with its proposed remedy and if agreed

upon proceed to correct the error. In the event the error is caused by the

Customer, Bankline will advise the Customer of the cost of correction and the

Customer will notify Bankline its decision to authorize Bankline to perform the

corrective procedures under the terms and conditions provided to Customer by

Bankline. Bankline will at all times proceed without delay to assist Customer

in reducing the impact to it’s Customer.

 

7.               Paragraph 4d is deleted and replaced

with the following: Customer agrees to pay its pro–rata portion to

Bankline for any manufacturers, sales, use, excise, or any other tax levied or

assessed by any other 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 the Agreement, except those taxes based on or

assessed on Bankline capital or similar base, employment taxes, real estate

taxes on property owned or leased by Bankline, or personal property taxes owed

by Bankline. In the event taxes paid by the Customer are later rebated or

refunded such rebates or refunds will be returned to Customer.

 

8.               Delete Section 4e and replace with:

Bankline may retain Customer files in the event of deconversion until all

amounts due Bankline are paid, including good faith estimated deconversion

fees, such fees to be adjusted to actual after completion of deconversion.

 

9.               Add to paragraph 4g. Nothing herein

shall relieve Bankline of its responsibility to implement it’s disaster

recovery procedures.

 

10.         Paragraph 4m. The following paragraph is

added: “Bankline shall be responsible for confirmation that adequate coverage

is in place to protect Customer and Bankline from Bankline’s employee

dishonesty while processing Customer’s data, Bankline shall furnish proof of

such coverage upon signing of this Agreement.

 

11.         Add to end of 5. Warranty. “Bankline warrants

that the Services provided will conform to those set forth in the Summary of

Function document.

 

7

 

12.         Delete paragraph 6 and replace with the

following:

Limitation or Liability. Bankline’s

liability under this Agreement for monetary damages resulting from claims made

by Customer or any third party arising from or related to the services provided

under this Agreement shall be limited to the amount of actual damages incurred

by Customer or the amounts paid by Customer during the [***] period immediately preceding the

event in which liability accrued, whichever is less. Additionally, Bankline

shall be responsible for costs and expenses, incurred by Customer hereunder. No

action arising out of the services of this Agreement may be brought by either

party more than one (1) year after the cause of action has accrued. This

paragraph shall not apply to equitable actions to enforce the provisions of

this Agreement.

 

13.         Add to paragraph 7 (b) files will be made

available to Customer at any time upon request of Customer, and at Bankline’s

then current rates (in addition to at termination).

 

IMPLEMENTATION

 

Bankline will service the Customer from its

Billerica Operations Center.

 

Customer will be furnished a detailed

conversion plan. The customer will provide a coordinator to provide

communication between Bankline and Customer to insure all participants are

informed and achieve timely results for a quality implementation of the

Bankline products.

 

Not withstanding Paragraph 4j of the

Agreement, Conversion of the POD work will be scheduled for no later than

November 1997. Inclearing, statement rendering and related services will be

converted at a date later to be established and agreed to by Bankline and the

Customer. In no event will the latter conversion be later than June 1998.

 

OUT-OF-BALANCE SITUATIONS

 

In the event of any out-of-balance conditions

among Bankline, Customer, the Federal Reserve or other clearing agency,

provided Bankline is informed of such situations in a timely manner, Bankline

will use all reasonable efforts to compare and reconcile such condition.

Customer agrees, at Bankline request to provide all commercially reasonable

assistance to and in such comparison and reconciliation process.

 

DISASTER RECOVERY

 

Bankline shall have a written Disaster

Recovery Plan prior to conversion establishing emergency procedures for the

utilization of an off premise backup facility. Bankline agrees that this Plan

and the operation of the backup facility will be tested at least annually and

the results of such testing will be made available to the Customer at no

charge. The Disaster Recovery Plan and related manuals and procedures will be

made available to Customer, Bank Auditors and Regulatory Examiners for review

as requested from time to time.

 

8

 

INSURANCE

 

Bankline shall maintain, during the term of

this Agreement, for its own benefit insurance coverage for loss from fire,

disaster or other causes contributing to interruption of the Services, and for

Errors and Omissions, Fidelity Bonds and Business Interruption coverage in

amounts customary and standard in the data processing industry or as required

by regulatory authorities. On request, Bankline will furnish a Certificate of

Insurance to Customer.

 

CUSTOMER ACQUISITIONS

 

In the event the Customer aquires accounts

through the acquisition of another institution or of branches of another

institution, Bankline will convert such accounts to the Customer’s SOLV Image

system without cost.

 

YEAR 2000 COMPLIANCE

 

Bankline certifies that all hardware and

software utilized in the providing of services to the Customer are currently year

2000 compliant

 

EARLY TERMINATION

 

Customer shall also have the right to

terminate, at any time after 24 months of the start of services provided

Customer gives Bankline at least 180 days written notice. Any termination of

this agreement in accordance with this paragraph shall be effective provided

Customer pay Bankline for all services in accordance with this agreement

through the effective date of termination (i.e., at least 180 days after the

date of written notice, including all pass–through charges). Additionally

Customer shall pay Bankline an amount equal to [***] of the average charges over the last [***] of services times the number of

months left in the contract after the termination date.

 

PERFORMANCE STANDARDS

 

The “Written Performance Standards” document

attached to this contract shall become a part of it.

 

CONVERSION COSTS

 

The conversion of the Customers work will

occur in two steps: 1.) the POD work presently processed by Fleet, and 2.) the

work presently processed by Quest Point, i.e., inclearing, statement rendering,

and related services.

 

The sequence and exact timing of these

conversions will be determined jointly by Customer and Bankline.

 

Programming expenses related to both steps

will be billed to the Customer at a rate of [***].

A cap of [***] for each step will

prevail. The first conversion fee will be billed at contract time. The second

will be billed at the time a firm conversion date from Quest Point can be

established.

 

There arc no additional conversion costs.

 

9

 

DEFAULT AND REMEDIES UPON

DEFAULT

Any of the following events will constitute

an “Event of Default” under the Agreement: (1) non–payment of any amounts

due hereunder to Bankline by Customer; (2) non–performance of any of Customer’s

or Bankline’s other material obligations hereunder; (3) if any representation

or warranty of Customer or Bankline is materially breached; (4) if Customer or

Bankline files a petition for bankruptcy or becomes the subject of an

involuntary bankruptcy petition which is not vacated within thirty (30) days of

filing, or becomes insolvent; or (5) if any substantial part of Customer’s or

Banklines’ property becomes subject to any levy, seizure, assignment,

application or sale for or by any creditor or governmental agency.

 

Upon occurrence of an Event of Default under

the Agreement, the non–defaulting party may, at its option, terminate the

Agreement provided at least (60) days (or longer period as may be required by

the applicable regulatory authorities) prior written notice has been given to

the other and such default has not been cured within such period. Upon such

termination by Bankline, Bankline may declare all amounts due and to become due

hereunder immediately due and payable. The remedies contained in this paragraph

are cumulative and in additional to all other rights and remedies available to

the parties under this Agreement or by operation of law or otherwise.

 

ARBITRATION

 

Bankline and Customer agree that all disputes

arising out of, in connection with or relating to this Agreement shall be

submitted to final and binding arbitration pursuant to the United States

Arbitration Act and the rules of the American Arbitration Association then in

effect. Judgment on the award rendered by the arbitrator may be entered in any

court having jurisdiction thereof. Arbitrations conducted in accordance with

this Paragraph shall be conducted by a single arbitrator selected by the

parties from (1) a list of (3) knowledgeable individuals eligible to serve as

arbitrator for the dispute submitted by the person filing a demand for

arbitration, or (2) if the other party so requests, a master list composed of

the potential arbitrators suggested by the party demanding arbitration and a

list of (3) knowledgeable individuals eligible to serve as arbitrator submitted

by the other party. Each party shall be entitled to be represented by counsel

in the arbitration. Bankline and Customer agree that based upon a final

decision of the arbitrator, the prevailing party can seek reimbursement for its

costs and reasonable attorneys’ fees in connection with any claim brought

hereunder. Except as otherwise agreed by Bankline and Customer, the provisions

of this Agreement shall remain in full force and effect pending resolution of

any dispute pursuant to arbitration.

 

OTHER ADDENDA

 

1.               The Customer will be responsible for

paying Bankline or other vendor for the communication network and equipment

necessary to utilize the image/item processing services outlined.

 

2.               Bankline will use its best efforts to

accommodate the Customer’s requests for changes in hours of service.

 

3.               Bankline represents to the best of its

knowledge that the systems to be provided to its Customers are in compliance

with the regulatory authorities. Bankline will maintain the systems used to

provide the Services to be in compliance with regulatory authorities as long as

it is commercially reasonable to do so. If it is determined not to be

commercially reasonable to change the systems to be in compliance, Bankline

will use its best efforts to assist Customer to be in compliance.

 

4.               Bankline will not assign this agreement to a third party

during the term of this agreement with out the written consent of Customer,

whose consent will not be unreasonably withheld.

 

 

10

 

5.               Bankline will provide notification to

the Customer of the availability of its audited financial statement and provide

it to the Customer if requested in writing.

 

6.               Bankline will insure the equipment

purchased by the Customer from Bankline will be useable during the life of the

initial term of this agreement. In the event there is a requirement for the

Customer to change out equipment bought from Bankline because of Bankline

system modifications, Bankline will trade in at the then book value.

 

7.               Bankline has the right to provide

Services hereunder, using all computer software required for that purpose.

Bankline will indemnify, defend and hold the Customer harmless against any and

all claims that the Bankline proprietary software used to provide Services or

the Services infringe a US patent or copyright, and Bankline will pay resulting

costs, damages and attorney fees awarded. If such claim has occurred, or in

Bankline’s opinion is likely to occur, Bankline will either procure for the

Customer right to continue receiving the Services using the software or replace

or modify the software so that it becomes non–infringing.

 

8.               All Customer data bases, files and

information provided for use with the Services are and remain confidential

property of the Customer. Bankline will advise its employees having access to

these files and information to keep them confidential using the same degree of

care and discretion as Bankline uses for its own confidential property and trade

secrets.

 

9.               Bankline will retain copies of Customer

files necessary to permit reconstruction of files and data bases in the event

the current files are unusable. The retention periods will be in accordance

with guidelines established or recommended by appropriate regulatory

authorities, or in the absence thereof with commercially reasonable practices.

Bankline will furnish Customer with a copy of its file retention schedules on

request.

 

10.         Bankline agrees that it will engage an

independent auditor to perform a third party review of the controls

incorporated into the systems used to provide the Services, and of the internal

controls used by the Bankline Data Center for operation of the related computer

systems, and of the adequacy of the controls related to development and

implementation of changes, revisions, and enhancements to the systems used to

provide the Services. Third party reviews will be performed at internals of no

longer than eighteen (18) months. A copy of the resulting Third Party Report will

be provided to Customer, and Bankline will promptly address and correct any

material recommendations, discrepancies and deficiencies as deemed necessary

and appropriate by Bankline management.

 

11.         The failure by Customer to insist on strict

performance of any provision of this Agreement shall not constitute a waiver of

Customers rights hereunder, or a waiver of any other provision or subsequent

default by Bankline in the performance or compliance with any terms or

conditions of this Agreement.

 

11

 

SCHEDULE ZZ

 

	

  PROCESSING

  SCHEDULE:

  
	

   

  	

   

  	

   

  
	

  Input

  Schedule:

  	

   

  	

  All

  application items must be delivered to the Bankline Processing Center by 7:00

  p.m. each processing day.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Automated

  qualified return file shall be received by 2:00 p.m.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  In-coming

  cash letter data will normally be transmitted to Customer or its agent before

  noon.

  
	

   

  	

   

  	

   

  
	

  Output

  Schedule:

  	

   

  	

  Outgoing

  Cash Letter will be delivered to Customers local agent on or before midnight.

  

 

12

 

	

  FORMS

  EXPENSE:

  	

   

  	

  Customer

  will provide Bankline with appropriate cut-form statements.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Any forms or

  rubber stamps that require specific identifying information will be

  Customer’s responsibility.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Customer

  will also be responsible for providing Bankline with statement envelopes

  (self-sealing) and General Ledger debits and credits.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Bankline

  will provide batch headers, batch separators, and document carriers for

  qualified returns.

  
	

   

  	

   

  	

   

  
	

  NOTES:

  	

   

  	

  1.     The charge for statement

  inserts may vary based on the size of the insert, number and design of folds

  and any special instructions involved. The Customer will be responsible for

  delivery of all inserts to Bankline.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  2.     Customer will be

  responsible for preparing proof work for courier pickup, processing items

  that are returned to them from Bankline, clearing out the General Ledger

  Proof Corrections account, and providing Bankline with all necessary

  information or supplies that may be needed to insure proper encoding,

  balancing, or remittance of items.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  3.     Customer will notify

  Bankline of all decisions concerning Unposted items as early as possible to

  allow for subsequent processing.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  4.     Customer will be

  responsible for making any customer or FED adjustments. Bankline will provide

  copies of all pertinent information required to make such adjustments.

  Bankline will not have any direct contact with the Customers, the Federal

  Reserve Bank or any other entity on the Customers behalf.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  5.     Bankline will provide

  audit trail of all balancing procedures.

  

 

13

 

WRITTEN

PERFORMANCE STANDARDS

Reference Schedule Z

 

While it is desirable to perform all services

at 100% accuracy, Bankline New England recognizes that various functions are

performed by individuals and therefore subject to some level of deviation.

Allowing for human factor and striving to ensure a high standard of customer

service, the following standards are hereby established. These standards may be

changed from time to time by mutual consent depending on circumstances.

 

1)     PROOF

OF DEPOSIT ENCODING:

 

No more than [***] deposits will be acceptable. To ensure compliance, the

number of DDA deposits and savings deposits will be tallied daily from the

volume report by the person responsible for balancing the bank and the monthly

total given to the Banking Operations Supervisor. Errors reported to the

Bankline Operations Supervisor will be tallied by this supervisor, compared

with the total deposits, and reported to the Operations Officer monthly.

 

2)     ELECTRONIC

ENTRY PROCESSING:

 

No more than [***] deposits will be acceptable. To ensure compliance, the

number of DDA deposits and savings deposits will be tallied daily from the

volume report by the person responsible for balancing the bank and the monthly

total given to the Banking Operations Supervisor. Errors reported to the

Bankline Operations Supervisor will be tallied by this supervisor, compared

with the total deposits, and reported to the Operations Officer monthly.

 

3)     PREPARATION

OF STATEMENTS:

 

All DDA image statements will be prepared and

ready for disposition no later than the second business day following the cut–off

date and the receipt of all enclosures. All DDA non–image statements will

be prepared and ready for disposition no later than the third business day

following the cut–off date and the receipt of all enclosures. All savings

statements (without enclosures) will be prepared and ready for disposition no

later than the third business day following the cut–off date.

 

4)     INSERTION OF ITEMS IN STATEMENTS:

 

No more than [***] statements will be acceptable. Compliance procedures

will be established and put in place to provide tracking information. This

information will be obtained by the person responsible for balancing the bank

and the monthly total given to the Banking Operations Supervisor. Errors

reported to the Banking Operations Supervisor will be tallied by this

supervisor, compared with the total statements, and reported to the Operations

Officer monthly.

 

5)     MAILING

OF STATEMENTS:

 

No more than [***] statements will be acceptable. Compliance procedures

will be established and put in place to provide tracking information. This

information will be obtained by the person responsible for balancing the bank

and the monthly total given to the Banking Operations Supervisor. Errors

reported to the Banking Operations Supervisor will be tallied by this

supervisor, compared with the total statements, and reported to the Operations

Officer monthly.

 

14

 

6)     RETURN/EXCEPTION

ITEMS:

 

No more than [***] return/exception items will be acceptable. To ensure

compliance, the number of return/exception items will be tallied daily from the

on–line exception item screen by the person responsible for processing

these items and the monthly total given to the Banking Operations Supervisor.

Errors reported to the Banking Operations Supervisor will be tallied by this

supervisor, compared with the total items, and reported to the Operations

Officer monthly.

 

7)     CHARGE

BACK ITEMS.

 

No more than [***] charge back items will be acceptable. To ensure

compliance, the number of charge back items will be tallied daily from the

Federal Return Item Report by the person responsible for processing these items

and the monthly total given to the Banking Operations Supervisor. Errors

reported to the Banking Operations Supervisor will be tallied by this

supervisor, compared with the total items, and reported to the Operations

Officer monthly.

 

8)     SIGNATURE

VERIFICATIONS:

 

No more than [***] accounts verified will be acceptable. Large items

(amount needed to qualify as a large item will be determined by the bank and

Bankline New England jointly) and items having special signature instructions

will be verified. To ensure compliance, the number of verified accounts will be

tallied daily from the Federal Return Item Report by the person responsible for

the verification function and the monthly total given to the Banking Operations

Supervisor. Errors reported to the Banking Operations Supervisor will be

tallied by this supervisor, compared with the total items, and reported to the

Operations Officer monthly. The bank must provide the signature information for

this function to be performed. Bankline acts as an agent and as such “stands

in” for the bank. Bankline has no liability except for gross negligence on

signature verification.

 

9)     SYSTEM

AVAILABILITY

 

The system will be available for item

research to the Customer at least [***]

of scheduled on line hours during a calendar month.

 

10)   RESEARCH

REQUESTS

 

Research requests will be responded to within

[***] business days for [***] of the requests, and within [***] business days for [***] of requests measured over a calendar

month.

 

11)   OTHER

 

Bankline and the Bank may mutually define and

establish certain special instructions for processing the Bank’s work. Such

instructions will be incorporated into the ‘Written Performance Standards”.

 

Bankline will furnish Customer with monthly

reports of performance achieved for each of these Performance Standards. In the

event the standards are not met, Bankline will have sixty (60) days to achieve

the standard. If the standard is not achieved within a sixty day period, or if

during a twelve month period the Customer has notified Bankline of three or

more separate events of non–performance, the Customer may terminate the

agreement without penalty or buyout charges. Failure by the Customer to

exercise its right to termination under this section will not be considered as

a waiver of any right accruing under this section, nor affect any subsequent

breach.

 

15

 

ADDENDUM

to DATA PROCESSING SERVICES AGREEMENT

 

This Addendum to the DATA PROCESSING SERVICES

AGREEMENT signed August 26, 1997 by FIRST ESSEX BANK (BANK) and BANKLINE NEW

ENGLAND, INC. (n/k/a SLMsoft.com, Inc.) (SLM) amends the Agreement as follows:

 

It is agreed that the DATA PROCESSING

SERVICES AGREEMENT (the “Agreement”) signed on August 26, 1997 is extended for

an additional three year term which will expire on October 31, 2003.

 

It is agreed that the attached SCHEDULE Va

will be incorporated as a part of the Agreement, and that the pricing contained

in Schedule Va will be effective on November 1, 2000. It is further agreed that

pricing may be adjusted annually by SLM, with price increases not to exceed the

Wall Street Consumer Price Index (CPI–U) for the Metro–Boston area.

 

It is agreed that the attached Written

Performance Standards (Revised November 1, 2000) will replace the original

Written Performance Standards contained in the original Agreement, and that the

provisions of the Written Performance Standards (Revised November 1, 2000) will

become effective on November 1, 2000.

 

It is agreed that SCHEDULE ZZ – Input

Schedule will be amended to read: All application items must be delivered to

the (SLM) Bankline Processing Center by 6:00 p.m. each processing day.

 

SLM shall continue to process the Bank’s work

at the present Chelmsford Data Center or at some other location within 10 miles

of the Bank’s Cross Point site. Should SLM move to a facility outside this

limit, the Bank may terminate the Agreement without penalty or liquidated

damages.

 

In the event SLM’s financial condition

negatively impacts the performance of the services provided in the Agreement,

the Bank may terminate the Agreement without penalty or liquidated damages.

 

SLM will provide Bank with the capability to

allow its internet banking customers to inquire and down–load their check

images which have been captured during the previous forty–five (45)

business days and retained on the SLM RAID storage devices. SLM agrees to

provide this service within ninety (90) days after the Bank agrees to accept

the service. In the event there is any delay beyond ninety days in delivering

this product that is caused by SLM, SLM will provide the Bank with a credit of [***] per month until the product is

delivered. The cost of the service, including one time costs, monthly base

fees, certification fees, and per transaction fees will be negotiated

separately from this Agreement, but will be no greater than [***] one–time set up, plus [***] certification fee, plus [***] per month base fee, plus [***] per transaction fee.

 

SLM will provide Bank with the capability to

allow its internet banking customers to receive their current statements with

images from the SLM system. SLM agrees to provide this service within ninety

(90) days after the Bank agrees to accept the service. The cost of the service,

including one time set up costs and transaction costs will be negotiated

separately from this Agreement, but will be no greater than [***] one–time set up, plus [***] per statement transaction fee.

 

IN

WITNESS WHEREOF, the parties have caused this ADDENDUM

to be executed and each warrants and represents that the person whose signature

appears below has been and is on the date of this Agreement duly authorized by

necessary and appropriate corporate action to execute this Agreement.

 

 

	

  SLMsoft.com,

  Inc.

  	

  FIRST ESSEX

  BANK

  
	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ CHARLES

  E. WYMAN

  	

   

  	

  By: 

  	

   /s/ WAYNE C. GOLON,  Exec V.P.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Date:

  	

   10/2/00

  	

   

  	

  Date:

  	

  9/29/00

  	

   

  
								

 

 

2

 

SCHEDULE Va

 

APPLICATION:                                   Check

and Statement Imaging

 

Back office with Imaging includes all of the

regular back office functions performed in an imaging environment. Items are

digitally imaged and archived on RAID storage media or laser platters

 

Image

Pricing

 

	

  Image capture all items, including POD,

  Transit, On-Us and Inclearings

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Statement Rendering (Checking - Imaged)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Statement Rendering (Checking - Non Imaged)

  Fine Sort (per check)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Statement Rendering (Savings/IRA)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Statement Printing (Checking - Imaged)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Statement Printing (Checking-Non Imaged)

  (per page)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Statement printing (Savings) (per page)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Statement Inserts (per insert)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Research (Imaged) (via Intracheck)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Research (Non image or Off-line)

  	

   

  	

   

  
	

  Per check copy

  	

   

  	

  [***]

  
	

  Per labor hour

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Programming Services (per hour)

  	

   

  	

  [***]

  
	

   (NOTE: 4 hour minimum)

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  IntraCheck Monthly Fee (unlimited

  workstations)

  	

   

  	

  [***]

  
	

   

  	

   

  	

   

  
	

  Image storage on RAID beyond 45 business

  days (per image)

  	

   

  	

  [***]

  

 

 

 

WRITTEN

PERFORMANCE STANDARDS

 

(REVISED

NOVEMBER 1, 2000)

 

While it is desirable to perform all services

at 100% accuracy, SLMsoft.com recognizes that various functions are performed

by individuals and therefore subject to some level of deviation. Allowing for

human factor and striving to ensure a high standard of customer service, the

following standards are hereby established. These standards may be changed from

time to time by mutual consent.

 

1)     TRANSIT

ITEM ENCODING

 

No more than [***] daily transit items will be acceptable. To ensure

compliance, the number of transit items will be tallied daily from the volume

report by the person responsible from SLMsoft.com for balancing the bank, and

the monthly total given to the SLM Operations Manager. The Bank will provide an

Invalid Item Report daily to the SLM manager for internal error tracking and

review. The SLM Manager will Use the Invalid Item Report along with other

internal tools to compare against the volume report and to identify, manage and

track operator errors. From time to time or when requested by the Bank, SLM

will be required to provide the Bank with this information to ensure that these

standards are being met.

 

2)     ELECTRONIC

OVER THE COUNTER AND INCLEARING ITEM ENTRY PROCESSING

 

No more than [***] over the counter/inclearing items will be acceptable. To

ensure compliance, the number of over the counter/inclearing items will be

tallied daily from the volume report by the person responsible from SLMsoft.com

for balancing the bank, and the monthly total given to the SLM Operations

Manager. The Bank will provide an Invalid Item Report daily to the SLM manager

for internal error tracking and review. The SLM Manager will use the Invalid

Item Report along with the daily adjustments and other internal tools to

compare against the volume report and to identify, manage and track operator

errors. From time to time or when requested by the Bank, SLM will be required

to provide the Bank with this information to ensure that these standards are

being met.

 

 

3)     STATEMENT

PREPARATION, TIMING AND QUALITY

 

No more than [***] statements will be acceptable. All errors discovered by

the Bank or its customers will be reported as they occur to the SLM Operations

Manager for research. All errors discovered by SLM will be reported as they

occur to the SLM Operations Manager for research and further communicated to

the designated Bank representative. A tracking report will be created for each

statement cycle and forwarded to the designated Bank representative for review.

Saturday, Sunday and bank holidays are not considered business days; however,

SLM will use its “Best Efforts” to begin the rendering process on non–business

days whenever possible.

 

DDA Image Statements - All DDA image

statements will be printed, folded, stuffed, postmarked and delivered to the

Post Office no later than the third business day following the receipt of the

statement print and enclosure files. Refer to the table below.

 

DDA Non–Image Statements - All DDA non–image

statements will be printed, folded, stuffed, postmarked and delivered to the

Post Office no later than the fourth business day following the receipt of the

statement print and enclosure files. Refer to the table below.

 

Savings Statements – All savings

statements (without enclosures) will be printed, folded, stuffed, postmarked

and delivered to the Post Office no later than the fourth business day

following the cycle cut–off date. Refer to the table below.

 

Statement Exceptions – All statements

that require special handling due to error or other circumstances will be

printed, folded, stuffed, postmarked and delivered to the Post Office no later

than the fifth business day following the receipt of the statement print and

enclosure files. Refer to the table below.

 

	

  Counter

  	

   

  	

  Description

  	

   

  	

  Business

  Days

  
	

  Day X

  	

   

  	

  Cycle

  Cut-off

  	

   

  	

  Monday

  
	

  Day 0

  	

   

  	

  Statement Print

  & Enclosure File Received.

  Statement Rendering Begins.

  	

   

  	

  Tuesday

  
	

  Day 1

  	

   

  	

  Statement

  Rendering

  	

   

  	

  Wednesday; 1st

  business day

  
	

  Day 2

  	

   

  	

  Statement

  Rendering

  	

   

  	

  Thursday; 2nd

  business day

  
	

  Day 3

  	

   

  	

  All Image

  DDA completed and at Post Office

  	

   

  	

  Friday; 3rd

  business day

  
	

  Day 4

  	

   

  	

  All

  Non-Image DDA and Savings Completed and at Post Office

  	

   

  	

  Monday; 4th

  business day

  
	

  Day 5

  	

   

  	

  All

  Statement Exceptions completed And at Post Office

  	

   

  	

  Tuesday; 5th

  business day

  

 

This table assumes the cycle cut–off

date has occurred on a Monday. This table should be used as a reference tool

only. The “Counter” column logic should be applied to all statement cycles to

ensure compliance.

 

2

 

4)     EXCEPTION ITEM HANDLING:

 

No more than [***] exception items will be acceptable. Transaction errors

are defined as wrong item returns, improper encoding, wrong return reason, out

of balance batches, or wrong item paid. All returns must be processed timely by

SLM. In order for SLM to process timely, the Bank’s IEH file must be received

from BISYS by 4:00 P.M. daily.

 

5)     INTRACHECK

AVAILABILITY

 

The system will be available for item

research to the Bank at least [***]

of the time between the hours of 8:00 A.M. and 5:00 P.M., Monday through Friday

during a calendar month, holidays excluded. Should the system be unavailable

for any period of time, SLM will provide the Bank, free of charge, with

immediate assistance in handling daily production issues that require image

copies. If the outage is a result of a Bank hardware/software issue, SLM agrees

to provide system access for Bank employees at the Chelmsford site to handle

daily production; however, SLM will be entitled to bill the Bank at current

research rates if such assistance is provided.

 

6)     RESEARCH

REQUESTS

 

Research requests will be responded to within

[***] business days for [***]of the requests, and within [***] business days for [***] of requests measured over a calendar

month.

 

7)     OTHER

 

SLMsoft.com and the Bank may mutually define

and establish certain special instructions for processing the Bank’s work. Such

instructions will be incorporated into the “Written Performance Standard”.

 

Upon request, data will be provided by the

Bank and/or SLMsoft.com to measure against any or all of the Performance

Standards. In the event that any of the standards are not met, SLMsoft.com will

have thirty (30) days to achieve the standard. If the standard is not achieved

within a thirty day period, or if during a nine (9) month period the Bank has

notified SLM of three or more separate events of non–performance, the

Bank may terminate the item processing agreement without penalty or buyout

charges. Failure by the Bank to exercise its right to termination under this

section will not be considered as a waiver of any right accruing under this

section, nor affect any subsequent breach.

 

3

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