Document:

Interim Servicing Agreement

  Exhibit 10.17
  INTERIM SERVICING AGREEMENT
  Between
  SOUTHLAND BANK
  and
 
MBNA AMERICA BANK, N.A.
  DECEMBER 19, 2002

   INTERIM SERVICING AGREEMENT
  THIS INTERIM SERVICING AGREEMENT (the “Agreement”) is
entered into this 19th day of December, 2002, by and between MBNA America Bank, N.A., a national banking association, located at 1100 North King Street, Wilmington, Delaware 19884 (“Purchaser”) and Southland Bank, an Alabama
state-chartered bank located at 3299 Ross Clark Circle, NW, Dothan, Alabama 36303 (“Seller”).
  RECITALS
            WHEREAS, pursuant to the Asset Purchase Agreement entered into between the parties of even date herewith (the “Asset Purchase Agreement”), Purchaser
will acquire certain Assets and assume certain liabilities of Seller; and
            WHEREAS, Purchaser is currently unable to process and
service the Accounts obtained pursuant to the Asset Purchase Agreement; and
            WHEREAS, for the term of this Agreement, Seller has
agreed to undertake, on behalf of Purchaser, the processing, servicing and collection of the Accounts and Receivables transferred pursuant to the Asset Purchase Agreement upon the terms and subject to the conditions hereinafter set forth;

          NOW, THEREFORE, in consideration of the promises, mutual agreements, representations and warranties hereinafter set forth and for other good
and valuable consideration, both the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
  1.      
DEFINITIONS
  1.1     Terms.  All capitalized terms used herein and not otherwise specifically defined herein shall have the meanings ascribed to
such terms in the Asset Purchase Agreement.
  1.2     Other Definitions.  For the purposes of this Agreement, the following terms have the following
meanings:
            “Billed Account” shall mean an Account for which the Servicer has produced an original statement during the
applicable period within the Interim Servicing Period (in accordance with Servicer’s Policies and Procedures and at the completion of its billing cycle), as shown on Seller’s system generated, daily management reports relative to the
Accounts.
           “Service Transfer Event” shall mean an event set forth in Article 9 hereof.
            “Servicer” shall mean the entity designated by Purchaser, pursuant to Section 2.1 and 2.2, to perform the Services.
            “Servicer’s Policies and Procedures” means Servicer’s policies, procedures and normal, day-to-day business practices in compliance with
such policies and procedures and Servicer’s normal financial accounting guidelines for the conduct of the Business, all as existing 
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  as of the Site Visit Date which shall not be changed or altered during the Interim Servicing Period unless the changed or altered policy, procedure or practice has been
approved in writing by Purchaser or, if the Servicer will continue to be in the credit card business, is going to be applied to the Servicer’s entire credit card business, in which case Seller shall notify Purchaser of such change, as soon as
possible.
            “Services” means those services necessary for Purchaser to administer the Accounts, including, but not
limited to, those services listed in Article 3.
  2.         DESIGNATION OF SERVICER
  2.1     Designation of Servicer.
            (A)          The servicing, processing, administration and collection of the Accounts and Receivables shall
be conducted by such Servicer designated in accordance with this Article 2.  Provided a Service Transfer Event has not occurred, Seller is hereby designated as, and hereby agrees to perform (or caused to be performed) the duties and obligations
of, the Servicer pursuant to the terms hereof.  
            (B)          During the
term hereof, Purchaser shall permit Servicer to retain possession of all Files purchased from Seller to Purchaser pursuant to the Asset Purchase Agreement.  Servicer shall allow Purchaser access to such Files for copying and inspection by
Purchaser or its agents during Servicer’s normal business hours and upon one (1) business day’s notice.  From time to time prior to the Conversion Date, Servicer shall deliver all or such portion or extracts of one or more of the
Files as may be requested by Purchaser.  Such delivery shall be effected within one (1) to three (3) business days from Purchaser’s request, utilizing the delivery method specified by Purchaser.  
 2.2     Replacement of Seller as Servicer.  In the event a Service Transfer Event shall have occurred hereunder, Purchaser shall be permitted, in its sole discretion, to designate
another Person who shall act as Servicer hereunder in the place of Seller.  Such designation shall become effective on the date specified by Purchaser to Servicer in writing.  Seller shall comply with Purchaser’s reasonable requests
in ensuring that the subsequent Servicer is provided unrestricted access to or given possession of the Files, whichever the case may be.  Such subsequent Servicer shall be solely responsible for any costs or expenses it incurs in connection
with such service transfer.  Seller also shall provide prompt access to the subsequent Servicer to all computer files, magnetic tapes and any and all other media of any nature, kind and description whatsoever related specifically to the
Accounts or Receivables, to assure a smooth and prompt transition of servicing rights hereunder.
  3.        DUTIES OF SERVICER
  3.1      Processing and Collection Services.
            (A)          Services Generally.  During the term of this Agreement, the Servicer shall administer the
Accounts and Receivables and perform all Services under this Agreement with reasonable care, using that degree of skill and attention utilized by prudent lenders engaged in the issuance of credit cards.   Notwithstanding the generality of
the preceding sentence, the Services shall include, without limitation: 
  2

	  
 	  (1)
 	  the collection of Receivables in accordance with Section 3.3 hereof;
 	  
 
	  
 	 (2)
 	  the prompt and timely posting of all payments to the appropriate Accounts;
 
	  
 	  (3)
 	  the posting of all transactions, fees, and interest to the Accounts;
 
	  
 	  (4)
 	  responding to inquiries from any governmental authority with jurisdiction over Seller;
 
	  
 	  (5)
 	  the timely provision of periodic statements to all Obligors;
 
	  
 	  (6)
 	  the provision of both voice and electronic authorization services with respect to Cardholder transactions;
 
	  
 	  (7)
 	  the processing of credit line increases and requests for reinstatements;
 
	  
 	  (8)
 	  the production of plastic cards as necessary to meet special replacement and normal reissue schedules and upon appropriate Cardholder request;
 
	  
 	 (9)
 	  the provision of incoming interchange ticket processing services;
 
	  
 	  (10)
 	  the timely processing of all purchases, advances, convenience or access checks, charge-backs, credits, and other transactions;
 
	  
 	  (11)
 	  the provision of daily net settlement functions as more specifically described in Article 5 below;
 
	  
 	  (12)
 	  the provision of customer service activities relating to the Accounts (including responding to inquiries from Obligors);
 
	  
 	  (13)
 	  the performance of Account control activities to address overlimit, delinquent and lost/stolen Accounts which shall include statement messages, correspondence, phone
contact and Account blocking (but which shall not include referral of Accounts to outside collection agencies or initiation of litigation);
 
	  
 	  (14)
 	  the placement of lost/stolen Accounts on appropriate exception or warning bulletin files and, in such an event, the transfer of all Account information and
legitimate Account transactions to replacement accounts and the reporting of all such accounts to Purchaser;
 
	  
 	 (15)
 	  the appropriate notation on a Cardholder’s collection file and on any master file of any claim or defense asserted by such Cardholder with respect to or on
behalf of any transaction;
 
	  
 	  (16)
 	  the timely administration and processing of consumer credit counseling service proposals (a “CCCS Proposal”), as per Section 3.10 of this Agreement;
and
 
	  
 	  (17)
 	  the appropriate notation and reporting to credit bureaus of (i) credit information concerning Obligors; and (ii) any and all Accounts on which the Obligor’s
spouse is an authorized user.
 

  Servicer shall perform all Services in accordance with the terms of this Agreement, Servicer’s Policies and Procedures (except to the extent
expressly provided for in Sections 3.3, 3.7 and 5.3 hereof) all Requirements of Law, and all applicable operating regulations of MasterCard and VISA.  Any inconsistencies between this Agreement and Servicer’s Policies and Procedures shall
be governed by this Agreement.
            (B)        Special
Requests.      Notwithstanding Section 3.1(A) and subject to the terms of Section 11.2(B) hereof, if Purchaser reasonably requests, in writing, that Servicer: (i) perform Services hereunder in a manner different from
Servicer’s Policies and Procedures; or (ii) conduct, or assist Purchaser in conducting, and tracking the results, of marketing, activation or retention programs during the Interim Servicing Period (including, but not limited to, mailing cash
advance checks that are subject to a promotional annual percentage rate, applying new promotional annual percentage rates to cash or retail balances and/or transactions, promoting 
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   balance transfers, outward and inward retention programs and credit line increases), Servicer agrees to take all reasonable steps to comply with such request at
Purchaser’s expense (except with respect to the use of Servicer’s personnnel).
  3.2      Maintenance of Benefit
Agreements.     At all times throughout the term of this Agreement, unless otherwise agreed to by Purchaser and Servicer in writing, Servicer shall, for its part, maintain the Benefit Agreements and their respective
services and products in full force and effect and shall maintain any and all benefits, enhancements, programs, products or services offered or provided to the Cardholders and/or the Accounts through Seller or any of Seller’s affiliates
(“Other Enhancements”).  Additionally, Servicer shall respond to inquiries from Obligors and others regarding the services and programs available to Cardholders pursuant to the Benefit Agreements and the Other Enhancements.  In
the event of any change in any of the products, services and benefits levels provided to Cardholders under the Benefit Agreements or Other Enhancements (which Purchaser acknowledges it does not have the right to acquire) occurring at any time during
the term hereof, Servicer shall communicate with Purchaser as to the alternatives available to continue to provide such products, services and benefits levels and shall take all reasonable action to provide for the uninterrupted provision of the
same, as reasonably requested by Purchaser.
  3.3      Collection of Receivables.     Servicer shall undertake on
Purchaser’s behalf to collect all payments of Receivables due with respect to any Account in accordance with the Servicer’s Policies and Procedures.  Servicer shall not have the power and authority to charge-off any Account, but shall
charge-off any Account when requested by Purchaser. Servicer shall also not engage in the following practices throughout the term of this Agreement, unless consented to by Purchaser: 

	 (i)
 	  reaging Accounts (a re-age is defined as an adjustment of the payment amount, interest rate or present or past delinquent status of the Assets);
 
	  (ii)
 	  settling on Accounts;
 
	  (iii)
 	  fixing the payment or reducing the interest rate on Accounts; and
 
	  (iv)
 	  taking or initiating any legal action or assigning the Accounts to a collection agency.
 

  In a manner
consistent with Servicer’s Policies and Procedures, Servicer may adjust the fees or small balances on an Account once during the term of this Agreement.  In addition to all information documented on the collection system, Servicer agrees
to promptly provide Purchaser with a copy of any document or application associated with each permitted special payment arrangement.
  3.4     Personnel
Assistance.     Throughout the term hereof, Servicer shall use its commercially reasonable best efforts to preserve its business organization relating to the Accounts intact, to keep available work force of a quality and
quantity capable of rendering Services comparable to the services of its present employees.  In the event of a significant attrition of Servicer’s employees which affects the provision of the Services, the parties shall confer and consult
in order to institute the steps necessary to ensure no interruption of the quality and quantity of Services to be rendered hereunder in accordance with the terms of this Agreement.
 3.5      Limited Power of Attorney.     Purchaser hereby appoints and empowers Seller as its true and lawful attorney-in-fact, with full power of
substitution for the term hereof, to endorse, when 
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   requested by Purchaser, any checks or other instruments made payable to Seller and submitted by an Obligor as payment on any Account for deposit on Purchaser’s behalf and
for use in connection with the net settlement procedures set forth in Article 5 hereof.  Throughout the term hereof, this power of attorney shall be deemed to be a power coupled with an interest and shall be irrevocable.
  3.6      Insurance.     Servicer agrees to maintain property insurance covering losses or damages to Purchaser for any of the following: 

	  (i)
 	  replacement cost of plastics in the custody of Servicer;
 
	  (ii)
 	  coverage for any and all amounts necessary to reconstruct sales slips or other evidences of debt;
 
	  (iii)
 	  coverage for any and all amounts necessary to replace magnetic tapes and reconstruct information stored on such magnetic tapes or any other medium whatsoever;
 
	  (iv)
 	  coverage for additional expense incurred by Servicer which is required to allow Servicer to continue processing and servicing of Accounts and Receivables in accordance with this
Agreement and Servicer’s Policies and Procedures in the event of a loss; and
 
	 (v)
 	  coverage for any and all amounts necessary to replace all processing units, computer consoles or other computer hardware of Servicer used in connection with the processing or
servicing of the Accounts and the Receivables in accordance with this Agreement and Servicer’s Policies and Procedures.
 

   
  3.7       Applications in Process.     Servicer shall forward all at Purchaser’s expense consumer credit card applications received after
the Closing Date and during the term of this Agreement to the Purchaser, in care of the individual designated on Exhibit B via overnight delivery within twenty-four (24) hours of its known receipt of the same to Purchaser for decisioning by
Purchaser. Servicer shall forward all commercial credit card applications received after The Closing Date and during the term of this Agreement to the Purchaser, in care of the individual designated on Exhibit B via overnight delivery within
twenty-four (24) hours of its known receipt of the same to Purchaser for decisioning by Purchaser.
  3.8      Audit.     Purchaser shall be permitted, at any time during Servicer’s normal business hours and upon two (2) business days advance notice, to
conduct an audit and review of the Accounts, Receivables and the methods of internal control established and implemented by Servicer with respect to the servicing of the Accounts and the Receivables pursuant to this Agreement to ensure compliance
with this Agreement.  If, during or after the audit and review, Purchaser reasonably determines that Servicer is not in compliance with this Agreement, Purchaser shall meet with Servicer to discuss the changes that need to occur to resolve
Servicer’s non-compliance and Purchaser’s representatives may thereafter stay on-site, until said changes are made, to assist with the changes or to ensure that the changes are made.
  3.9      Segregation of Accounts.     At Closing and during all periods through the Conversion Date, Servicer shall, through the continued use of
Seller’s existing bank identification numbers, maintain all information whatsoever relating to the Accounts and Receivables in a segregated format separate and distinct from Seller’s remaining card operations so that access to all such
information is readily available to Purchaser.  In addition, all Accounts shall be uniquely flagged by Servicer to permit Seller to provide Purchaser with information about, and easy access to, the 
 5

   Accounts as required by this Agreement and the Asset Purchase Agreement and to ensure a smooth and orderly deconversion as required by Section 10.
  3.10    Change in Cardholder Status.
             (A)  Bankrupt
Accounts.     Upon receipt by Servicer of a petition filed in bankruptcy by an Obligor or notice of such filing, Servicer shall promptly: (i) status the Account with an appropriate code to indicate the filing of such a
petition, (ii) stop payments from being posted; and (iii) forward weekly to Purchaser, via overnight delivery, in care of the individual designated on Exhibit B, for each such affected Account, a copy of the notice of commencement of case,
including case number and type of bankruptcy, any pleadings received, including proof of claim forms, Chapter 13 plans, a copy of the main collection screen and comments, statements for each of the last six months, original application, or copy
thereof and a copy of any and all access checks written against the Account within the six months prior to the bankruptcy.  If Seller inadvertently files during the Interim Servicing Period a proof of claim in any bankruptcy case involving an
Account, in addition to any other remedy available to Purchaser, Seller agrees to execute whatever documents are reasonably necessary to assign the proof of claim to Purchaser. 
             (B)  Death of Cardholder.     Upon receipt of a death certificate of an Obligor or notice of such death, Servicer shall
promptly:  (i) status the Account with an appropriate code to indicate the death of such Obligor, and (ii) forward weekly, for each Account, the death certificate, if available, the name of the individual who notified Seller of the death, and a
copy of the main collection screen and comments to the individual designated on Exhibit B.  
             (C)  Consumer
Credit Counseling Service Proposals.     Upon receipt of a CCCS Proposal, Servicer shall promptly forward the proposal and copy of the main collection screen and comments to the individual designated on Exhibit B
via facsimile. 
 4.         COVENANTS
  4.1      Negative Covenants of Servicer.     Servicer hereby makes the following covenants which shall be covenants of the Servicer throughout the term
hereof:
          (A)           With respect to the Accounts and the Receivables, Servicer shall not
take any action (other than actions necessary to service the Accounts and collect the Receivables consistent with the terms of this Agreement and the terms of the Asset Purchase Agreement) without the prior consent of Purchaser;
            (B)          Except as provided in Section 4.1 of the Asset Purchase Agreement, without the
Purchaser’s written consent, Servicer shall not amend, terminate, or otherwise modify any terms or conditions of any Card Agreement, Benefit Agreement, agreement affecting any Other Enhancements or any Endorsement Agreements, or materially
affect the enforceability of any Card Agreement, Benefit Agreement, agreement affecting any Other Enhancements or any Endorsement Agreements;
            (C)          Servicer shall not enter into any contract, agreement, or other arrangement with respect to the
Services to be provided hereunder by Servicer, without the express prior written consent of Purchaser; such consent not to be unreasonably withheld by Purchaser;
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             (D)          Servicer shall not communicate with any
Obligor without the express prior written approval of Purchaser, except in the ordinary course of business and in accordance with Servicer’s Policies and Procedures or as required by applicable Requirements of Law; and
           (E)          Servicer shall not initiate or suggest any legal action with respect to any
Account.
  4.2     Affirmative Covenants of Servicer.     Servicer hereby makes the following additional covenants which shall be
covenants of the Servicer throughout the term hereof:
            (A)          Servicer
shall provide in a timely fashion, at Purchaser’s request, such management, delinquency and other reports for the Accounts as may be reasonably available to Servicer;
            (B)          Servicer shall timely and fully perform, and comply with all provisions of the Card Agreements,
the Benefit Agreements (except as otherwise provided in Section 4.1 of the Asset Purchase Agreement) and any Endorsement Agreements; 
            (C)          Servicer agrees to maintain the data communication lines, terminals, and other hardware
currently located at Servicer’s facilities so as to give Purchaser direct access, at Servicer’s facilities, to the on-line information required for Purchaser to conduct a complete audit in accordance with Section 3.8; 
            (D)          Servicer agrees to ensure that Purchaser has direct “read/report only” access
to the Accounts, and all of Seller’s Card Processor reports that Seller had access to prior to the Closing Date, through two terminals at Purchaser’s facilities that are connected to Seller’s Card Processor’s systems and agrees
to ensure that Purchaser may view and download all Account information and said reports from said terminals during the Interim Servicing Period.  Purchaser agrees that any cost related to the terminals or the access to, or downloading of,
Account information or reports shall be Purchaser’s sole responsibility.  With respect to the terminals, Purchaser agrees to abide by the security and confidentiality procedures of both Seller and Seller’s Card Processor. 
Servicer acknowledges and agrees that, during the term of this Agreement, the security and confidentiality procedures of Seller and Seller’s Card Processor will not obstruct, prohibit or limit Purchaser’s ability to view and download all
Account information and reports from said terminals; and
           (E)          Servicer
shall decline to authorize all properly coded internet gambling transactions so that they do not post to the Accounts. 
  4.3     Credit Decisioning/Compliance
with Laws.     Purchaser shall make all credit decisions on applications forwarded to it by Servicer pursuant to Section 3.7.  Purchaser shall bear all credit risks, including, but not limited to, compliance risks,
except for any compliance violations caused by Servicer’s delay in forwarding applications to Purchaser for decisioning.    
  4.4     Mutual
Covenants Concerning Property Rights.
            (A)          Except to the extent expressly
provided for in Section 4.4(B) hereof, the parties to this Agreement shall regard and preserve as confidential all information of the other party obtained pursuant to the relationship created hereby, including without limitation, master file records
and statistical data derived therefrom, computer programs, Account information, forms, 
  7

   documents, training materials and system documentation (the “Confidential Information”).  Neither party shall, without first obtaining the written permission of
the other party, use for its own benefit the Confidential Information of the other party, or disclose the Confidential Information to any Person, except to third parties currently retained by Servicer to assist in the performance of Servicer’s
duties under this Agreement and except as may be necessary in order to comply with legal, accounting or regulatory requirements.  This section shall survive any termination whatsoever of this Agreement, except as may be necessary in order to
comply with legal, accounting or regulatory requirements.
            (B)           The
parties agree that information obtained pursuant hereto shall not be Confidential Information to the extent such information: (i) was in the receiving party’s possession or in the public domain at the time of the disclosing party’s initial
disclosure; (ii) subsequently enters the public domain through no act or failure to act on the part of the receiving party; (iii) is lawfully obtained by the receiving party from a third party; provided such third party does not have a duty of
confidentiality to the party owning such information.
           (C)          Servicer and
Purchaser agree that the Assets, including, but not limited to, the master file records and any statistical or other data whatsoever derived therefrom, Files, Cards, forms, documents and all other information specifically related to the Accounts and
the Receivables, are the property of, and shall remain confidential to, Purchaser and shall not be released by Servicer, its officers, directors, or employees or its agents, to any Person without the express prior written consent of Purchaser unless
required by Requirements of Law.
  5.           SETTLEMENT, REPORTS, CUSTOMER FUNDS, AND SPECIAL PROCEDURES
  5.1          Settlement. 
            (A)          Settlement Reports.     Servicer shall prepare and send to
Purchaser, on the next business day following file maintenance processing, by facsimile to the individual designated on Exhibit B, the Seller’s generated reports and statements and the Seller’s system-generated, daily management reports
relating to the Accounts and reflecting the Account credits and debits and other items necessary to complete the settlement procedures set forth herein, together with such additional documents and information as Purchaser may reasonably
request.  
            (B)          Settlement
Statement.     Servicer shall prepare and deliver to Purchaser (via facsimile to the individual designated on Exhibit B), on the first business day following file maintenance processing, a settlement statement
reflecting the following data as of the completion of such file maintenance (the form of which is attached hereto as Exhibit 5.1): 

	 (1)
 	  the aggregate amount paid by Servicer that day in respect of cash advances and credit card purchases on the Accounts plus those miscellaneous debit advises (i.e., charge backs
and supporting charge back documentation with a transaction date on or after the Closing Date); and
 
	  (2)
 	  the aggregate amount of funds received by Servicer on behalf of Purchaser as collections on the Receivables plus returned merchandise credits and miscellaneous fee advises
received by Servicer on such business day.  Servicer shall use its commercially reasonable best efforts to transmit the settlement statement to Purchaser by facsimile no later than 12:00 p.m., prevailing eastern time.
 

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             If the difference between (1) and (2) above is positive (i.e., the amount computed under (1) exceeds the amount
computed under (2)), Purchaser shall pay the amount of the difference to Servicer.  
            If the difference is negative, Servicer shall
pay the amount of the difference to Purchaser.  The party owing the amount shall pay such amount by wire transfer of immediately available funds no later than 3:00 p.m., prevailing eastern time, on the same day that Servicer provides the
related settlement statement to Purchaser by 12:00 p.m.
            (C)          Settlement Communication.     In addition, Servicer and
Purchaser shall each provide to the other, settlement information by phone, and confirm via telefax if requested by either party.  Purchaser and Servicer shall make available to each other contacts throughout their respective credit card
account operations in order to facilitate settlement.  The requirements of this Section are subject to change as mutually agreed upon by the parties pending further review and familiarity with Servicer’s accounting operation.

          (D)          Settlement of Interchange
income.     Interchange income shall be settled daily as mutually agreed upon between Servicer and Purchaser.  
             (E)          Segmentation.      Servicer agrees that if it is unable to
properly segment settlement information and applicable reporting materials for the Receivables, upon Purchaser’s request, Servicer shall manually segment the Accounts and provide to Purchaser such necessary information in accordance with the
time frames noted above.   
            (F)          Settlement of Credit Life
Insurance.     On a monthly basis, Servicer and Purchaser shall also settle the credit life insurance net premiums billed on the Accounts.  Seller hereby assigns to Purchaser and Purchaser shall hereby be entitled
to the net premiums Seller would otherwise be entitled to pursuant to any existing agreement of Seller’s under which credit insurance is provided and which has been billed to each Cardholder (which shall be an amount equal to premiums received
from each Cardholders less adjustments, and fees due Servicer’s insurance provider). 
  5.2          Reports.
 
          (A)          Servicer Reports.     Servicer shall send to
Purchaser within one (1) business day after preparation or receipt, a copy of all reports customarily issued by or on behalf of Servicer with respect to the Accounts for the prior day, along with such information as may be available and as may be
reasonably requested by Purchaser. All such reports shall be sent to the individual designated on Exhibit B via facsimile and overnight mail.
           (B)          Credit Reports.     During the term of this Agreement, Servicer
shall forward to Purchaser to the individual designated on Exhibit B via facsimile the following:
             (1)   Daily
reports.  By facsimile, daily reports prepared by or on behalf of Servicer  setting forth the following information for the Accounts: 
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	  (a)
 	  total dollars outstanding in the Accounts and the number of Accounts outstanding; and
 
	   
 	  
 
	  (b)
 	  total dollars outstanding and the number of Accounts outstanding for each delinquency level, including those Accounts that are one (1) cycle delinquent.
 

   
            (2)          Monthly reports.  

	  (a)
 	  Via regular (overnight?)mail and facsimile, at the end of each month, a monthly report prepared by Servicer that lists Account number and Account balance for each
Account that meets one of the following criteria:
 
	   
 	  
 
	   
 	 (i)
 	  bankrupt Cardholder;
 
	   
 	  (ii)
 	  deceased Cardholder;
 
	   
 	  (iii)
 	  consumer credit counseling participation;
 
	   
 	  (iv)
 	  fraud or security related occurrence (including all applicable file information); or
 
	   
 	  (v)
 	  charged-off (including the following information regarding any transactions that may occur after charge-off: (1) transaction date; (2) description of transaction; and (3) amount
of transaction.
 
	   
 	  
 	  
 
	  (b)
 	  Via mail and facsimile, at the end of each month, monthly operations reports prepared by Servicer setting forth the following information for the
Accounts:
 
	   
 	  
 	  
 
	   
 	 (i)
 	  the average credit limit;
 
	   
 	  (ii)
 	  the most recent credit line increase; and behavior/FICO score distribution.
 
	   
 	  
 	  
 
	  (c)
 	  Via mail and facsimile, at the end of each month, a monthly report prepared by Servicer that lists, within each delinquency level (including those that are one (1)
level delinquent)  the number of Accounts and total Account balances, with a breakdown within each delinquency level the number of accounts and related balances within each of the following categories:  bankruptcy, deceased, consumer
counseling programs, accounts with balances less than $500 and regular accounts (i.e., the remaining accounts that don’t fit within one of the above categories).
 

                  Deliveries by mail shall be sent to the individual designated on Exhibit B. 
  (C)          Customer Service Reports.     On a bi-weekly basis, Servicer shall forward to Purchaser, via facsimile sent to the
individual designated on Exhibit B:  

	 (1)
 	  Credit balance refund reports, prepared by or on behalf of Servicer, setting forth the following information for the Accounts:
 

   

	  (a)
 	  account number;
 
	  (b)
 	  original credit balance due;
 

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	  (c)
 	  dollar amount;
 
	  (d)
 	  age of the credit balance in months; and
 
	  (e)
 	  documentation provided for cause of credit balances beyond five (5) months of age.
 

  (2)          In-process customer dispute correspondence reports, prepared by Servicer or on behalf of Servicer, by category:

	  (a)
 	  Chargebacks:
 
	  
 	  (1) account number; (2) reference number; (3) original chargeback date; (4) dollar amount; and (5) post and transaction dates.
 
	 (b)
 	  Representments:
 
	  
 	  (1) account number; (2) reference number; (3) original chargeback date and date of representment; (4) dollar amount; (5) representment age; and (6) resolution (re-bill Customer
or represent).
 
	  (c)
 	  Compliance, Arbitration and Collections letters:
 
	  
 	  (1) account number; (2) reference number; (3) filing date and/or origination date; (4) dollar amount; and (5) status.
 

            (D)          Other reports.     Purchaser may request that it receive such
reports on some other basis after evaluating the information contained in the reports. 
            (E)          Fraud Report.     Seller also agrees to provide Purchaser at
Conversion with a report that lists the Accounts where fraud or unauthorized use has occurred, which report shall contain all of Seller’s documentation regarding said fraud or unauthorized use. 
  5.3      Special Procedures. 
             (A)          During the term of this Agreement, Servicer shall designate Carolyn Newsome, at (229)
890-1111, as the contact for all collection related questions from Purchaser.
             (B)          Servicer shall document the receipt of any post-dated checks on the Accounts in
Servicer’s collection comments and provide such comments to Purchaser at the time of conversion.
           (C)          Servicer agrees to remove all Accounts from any auto-dial system utilized by Servicer on the
Conversion Date. 
            (D)          Servicer shall respond to any credit line
increase request and credit maintenance request for any Account in accordance with Servicer’s Policies and Procedures.
            (E)          Servicer agrees to eliminate the Accounts from any automated line increase program on or after
the Closing Date.
            (F)          Servicer agrees to eliminate the Accounts from
any program designed to, among other things, increase usage of the Accounts unless otherwise agreed to by Purchaser.  
  11

             (G)          Servicer shall not provide any of the
Services to any Account after the end of the Interim Servicing Period except as required by the Asset Purchase Agreement or as otherwise agreed to by the parties in writing. 
  6.           COMPENSATION
  6.1         Compensation.     In consideration for Servicer’s providing the Services described herein, Purchaser shall pay to Servicer, during
the period from Closing Date through Conversion Date, inclusive, a fee of three dollars ($3.00) per calendar month for each Billed Account outstanding during the month (pro-rated for partial months pursuant to section 6.2).
  6.2          Payment.     During the term hereof, Servicer shall invoice Purchaser promptly after (i) the last day of each calendar
month for the compensation due Servicer pursuant to Section 6.1 for such month and (ii) promptly after the Conversion Date for the compensation due Servicer pursuant to Section 6.1 for the period from the end of the most recent calendar month for
which Servicer has invoiced Purchaser through the Conversion Date.  In the event of a payment computed hereunder on a monthly basis for any period of time less than a full month, such payment will be calculated as follows: take the prior
month’s number of Billed Accounts and multiply that by a fraction the denominator of which is the number of days in the current calendar month and the numerator is the number of days lapsed in the current calendar month and then multiply that
result by $3.00.  Payment shall be due no later than the five (5) business days after receipt by Purchaser of such invoice.  
 6.3          Servicer’s Delay.     In the event that Servicer fails to perform as required by Section 10 of this Agreement and the
Conversion Date agreed to by the parties is delayed solely as a result of such failure, Purchaser, at its option, may elect not to pay Servicer the compensation set forth in Section 6.1 for any period following such agreed upon Conversion Date, even
though Servicer remains obligated to perform the Services.
  6.5          Conversion Schedule.  
            (A)          For each Conversion Schedule deadline missed by the Servicer through no fault of Purchaser,
Servicer will pay Purchaser a penalty of $500 per day until the required material is provided to Purchaser.  The penalty amount shall be paid to Purchaser by Servicer by the end of the month in which the penalty amount was assessed, or at
Purchaser’s option, deducted from any future interim servicing fees.
            (B)          If Servicer fails to provide all of the information required, or fails to provide the
information in the format or manner required and agreed to by the parties in the Conversion Schedule, in each case through no fault of Purchaser, Servicer shall pay Purchaser the incremental costs incurred by Purchaser as a result of such
failure.  The incremental costs of Purchaser shall be paid by Servicer within 10 business days after receipt of a reasonably detailed invoice from Purchaser.
  7.      REPRESENTATIONS AND WARRANTIES OF SERVICER
  Servicer hereby represents, warrants  and covenants to Purchaser as
follows:
  12

   7.1    Appropriate Resources.      Servicer has and shall maintain throughout the term of this Agreement all
necessary facilities, manpower, equipment, supplies, insurance, and such other resources as are necessary to provide the Services.
 7.2    Administration of Accounts;
Compliance with Laws.     The Services provided by Servicer will be performed so as to permit the administration and operation of the Accounts in  accordance with this Agreement.
  7.3    Contingency Procedures.     The contingency procedures currently used by Servicer as disclosed to Purchaser, including but not limited to contingency procedures
for data processing, telecommunications, payment processing and off-site maintenance and retention of Accounts and File information will continue to be used by Servicer throughout the term of this Agreement.
  7.4    Performance of Services.     Unless otherwise expressly agreed to by Purchaser in writing, Servicer shall directly perform all Services related to the Accounts
and Receivables pursuant to systems, software, and applications used by Servicer.  Servicer has no agreements, contracts or other understandings or arrangements with any third party whatsoever related to the Services, the Accounts and the
Receivables, other than those agreements Purchaser has been informed of and which are currently in effect pursuant to which such third party performs any of the Services, processing, collection or other activity relating to the Accounts or
Receivables to be performed hereunder.
  8.       TERM OF AGREEMENT
  This Agreement shall become
effective as of the Closing Date and shall continue until Purchaser’s Card Processor assumes all of the Services, which is expected to occur in the second quarter of 2003 or until such other date as mutually agreed upon or until Purchaser
designates another servicer. 
  9.       SERVICE TRANSFER EVENTS
  The occurrence of any one or more of
the following events shall constitute a Service Transfer Event hereunder whether or not any requirement for the giving of notice, the lapse of time or both, or any other condition has been satisfied:
           (A)          MasterCard/VISA Termination.  Servicer’s membership and/or agreement with
MasterCard and/or VISA shall be terminated or an event shall occur which under the terms of such membership or agreement would constitute, or upon the passage of time or the giving of notice or both would constitute, an event of default thereunder;
or
            (B)          Bankruptcy; Receivership. (1) Any governmental authority
shall: (i) adjudicate Servicer a debtor in bankruptcy; (ii) appoint a trustee or receiver for all or a substantial part of the property of Servicer; (iii) approve a petition for bankruptcy or reorganization pursuant to federal bankruptcy law for
Servicer; (2) Servicer shall make an assignment for the benefit of creditors, or make an admission of inability to pay its debts generally as they become due; or (3) the Office of the Comptroller of the Currency, the Federal Deposit Insurance
Corporation or any other governmental authority having jurisdiction over Servicer shall assume control of or appoint a conservator or receiver for all or substantially all of the assets of Servicer; or
  13

             (C)           Breach of
Agreement.     The failure to perform the Services as provided for herein or any other material breach of any provision of this Agreement; or
            (D)           Breach of Representations and Warranties.     Any material
breach of Servicer’s representations and warranties contained herein.
  10.     DECONVERSION
  In
recognition of the importance of ensuring a smooth and orderly transition that is as indiscernible to the Cardholders as practicably possible, Seller shall use its commercially reasonable best efforts in the deconversion of the Accounts and
Receivables from the Seller’s processing system to Purchaser’s system.  Seller agrees that it shall, at its sole cost and expense, provide or cause Seller’s Card Processor to provide (in a timely fashion that meets all of the
deconversion timelines established by Purchaser and agreed to by Seller in the Conversion Schedule, the form of which is attached hereto as Exhibit A) such deconversion tapes and transmissions and other necessary materials in a form
reasonably requested by Purchaser as reasonably necessary to install and maintain the information contained therein on Purchaser’s system.  Seller agrees to make all such requests of Seller’s Card Processor as may be reasonably
necessary to ensure the transition of the processing of the Accounts and Receivables to the Purchaser, which both parties agree includes having the Seller’s Card Processor agree in writing to the Conversion Schedule the Servicer and Purchaser
agree to in accordance with the above requirements.  Seller shall, if requested by Purchaser, participate in and attend, at Seller’s own expense, the on-site meeting that occurs between Purchaser’s Card Processor and Seller’s
Card Processor to perform field to field mapping. 
 11.     INDEMNIFICATION
  11.1   Indemnification of Purchaser.     Servicer agrees to indemnify, defend and hold Purchaser, its subsidiaries, affiliates, and their respective officers, directors and
employees, harmless of and from any claim, proceeding, suit, damage, liability, loss, cost, charge or expense or any other liability of every nature, kind and description whatsoever (including, without limitation, reasonable attorneys’ fees and
expenses) incurred or suffered by Purchaser, by reason of, resulting from or arising directly or indirectly out of:
            (A)          the failure by Servicer to properly perform its duties and obligations hereunder in a timely manner
through the Conversion Date including, without limitation, the failure by the Servicer or its agents, directors, officers, servants or employees to comply with any Requirements of Law or with applicable MasterCard and VISA operating regulations in
connection therewith; or
            (B)          the breach of any of Servicer’s
representations, warranties, covenants or agreements contained herein.
  11.2   Indemnification of Servicer.     Purchaser agrees to indemnify,
defend and hold Servicer, its subsidiaries, affiliates, and their respective officers, directors and employees, harmless of and from any claim, proceeding, suit, damage, liability, loss, cost, charge, or expense or any other liability of every
nature, kind and description whatsoever (including, without limitation, reasonable attorneys’ fees and expenses) incurred or suffered by Servicer, by reason of, resulting from or arising directly or indirectly out of:
  14

             (A)          the failure by Purchaser to properly perform its
duties and obligations hereunder in a timely manner through the Conversion Date including, without limitation, the failure by the Purchaser or its agents, directors, officers, servants or employees to comply with any Requirements of Law or with
applicable MasterCard and VISA operating regulations in connection therewith; 
           (B)          the provision of Services in a manner other than as set forth in Servicer’s Policies and
Procedures as a result of Purchaser’s request or the express provisions of this Agreement provided that, indemnification against Purchaser shall exist only if such Services were rendered substantially in accordance with Purchaser’s request
or the express provisions of this Agreement; or
            (C)           the breach of any of
Purchaser’s representations, warranties, covenants or agreements contained herein.
  11.3   Manner of Handling Claims.  
            (A)          Either Purchaser or Seller, as the indemnified party pursuant to Section 11. 1 or Section 11. 2 hereof,
as the case may be, shall give prompt written notice to the other, as the indemnifying party, of any claim by such indemnified party based on the indemnity agreements contained in this Agreement, stating the nature and basis of the claim and the
amount thereof, if known.  
            (B)          If it is a third party claim, following
receipt of such notice, the indemnifying party shall be entitled to participate in the defense of such claim and to the extent it shall wish to assume the defense thereof with counsel reasonably satisfactory to the indemnified party, and, after
notice from the indemnifying party to the indemnified party of its election to assume the defense thereof, the indemnifying party shall not be liable to the indemnified party for any legal expenses of other counsel or any other expenses, in each
case subsequently incurred by the indemnified party, in the conduct of the defense thereof other than reasonable costs of investigation.  The indemnified party shall be permitted to participate in the defense of such claim and may retain
additional counsel of its choice at its own expense.  If, however, the defendants in such action include both the indemnifying party and the indemnified party and the indemnified party shall have concluded that there may be legal defenses
available to it that are different from or additional to those available to the indemnifying party, the indemnified party shall be entitled to separate counsel, reasonably acceptable to the indemnifying party, which shall be paid for by the
indemnifying party.  An indemnifying party shall not be liable for any claim or action settled without its consent.  The indemnified party shall make available to the indemnifying party and its counsel and accountants at reasonable time
and for reasonable periods, during normal business hours, all books and records of the indemnified party relating to any possible claim for indemnification and each party hereunder will render to the other such assistance as it may reasonably
require of the other in order to ensure the prompt and adequate defense of any suit, claim or proceeding based upon a state of facts which may give rise to a right of indemnification hereunder.
 11.4    Subrogation.     The indemnifying party shall be subrogated to any claims or rights of the indemnified party as against any other persons with respect to any
amounts paid by the indemnifying party under this Section.  The indemnified party shall cooperate with the 
  15

   indemnifying party, at the indemnifying party’s expense, in the indemnifying party’s assertion of any such claim.
  11.5   Mitigation of Losses.     Each of Servicer and Purchaser shall use reasonable efforts to minimize (and Purchaser shall cause any assignee or transferee of its rights
or obligations hereunder to use its reasonable efforts to minimize)any losses for which any other party hereto may be liable pursuant to this Agreement.
  11.6   Survival of
Representations, Warranties and Covenants.     Except as expressly provided otherwise herein, all representations, warranties, covenants contained in this Agreement shall survive for a period of two years after the
Conversion Date (as such term is defined in the Asset Purchase Agreement).
  11.7   Survival of Indemnification and Other
Limitations.     Indemnification under this Article IX shall be subject to the limitations set forth in Section 9.4 of the Asset Purchase Agreement.
  12.      ADDITIONAL PROVISIONS
  12.1    Expenses.     Except as
otherwise expressly set forth herein, any other costs, expenses, or other charges incurred by either of the parties hereto shall be borne by the party incurring such cost, expense or charge whether or not the series of transactions contemplated
hereby shall be consummated.
  12.2     Notices.     Except as otherwise expressly set forth herein, any notice, payment, demand  or any
other communication required or permitted to be given hereunder shall be in writing and delivered via by hand or overnight courier or telefaxed to the applicable party or parties at the address indicated below:

	 If to Seller:
 	  If to Purchaser:
 
	  
 	  
 
	  Southland Bank
 	  MBNA America Bank, N.A.
 
	  c/o ABC Bancorp
 	  1100 N. King Street
 
	  24 2nd Avenue SE
 	  Wilmington, Delaware 19884-0144
 
	  Moultrie, Georgia  31768
 	  
 
	  Attn: Mike McDonald
 	  Attn:  Jeff Fincher
 
	  Senior Vice President
 	  Executive Vice President
 
	  Fax #:  (229) 873-4456
 	  Fax #:  (302) 432-2957
 
	  
 	  
 
	  With copies (which will not constitute notice to the parties hereto) to:
 	  
 
	  
 	  
 
	 Steven E. Fox, Esq.
 	  Diana Cebrick
 
	  Rogers & Hardin LLP
 	  Counsel
 
	  2700 International Tower, Peachtree Center
 	  
 
	  229 Peachtree Street, N.E.
 	  
 
	  Atlanta, Georgia  30303
 	  
 

  16

   or, as to each party at such other address as may be designated from time to time by such party or parties by like notice to the other parties, complying with this
Section.  All such notices, payments, demands or other communications shall be deemed validly given and legally effective when received.
  12.3     Severability.     If any term or condition of this Agreement should be held invalid by a court, arbitrator or tribunal of competent jurisdiction in any
respect, such invalidity shall not affect the validity of any other term or condition hereof.  If any term or condition of this Agreement should be held to be unreasonable as to time, scope or otherwise by such a court, arbitrator or tribunal,
it shall be construed by limiting or reducing it to the minimum extent so as to be enforceable under then applicable law.  The parties hereto acknowledge that they would have executed this Agreement with any such invalid term or condition
excluded or with any such unreasonable term or condition so limited or reduced.
 12.4     Specific Performance.     The parties hereto hereby
expressly recognize and acknowledge that immediate, extensive and irreparable damage would result in the event that this Agreement is not specifically enforced.  Therefore, in addition to, and not in limitation of, any other remedy available to
Purchaser or Servicer, subject to Section 12.12  hereof, the respective rights and obligations of an aggrieved party hereunder shall be enforceable in a court of equity by a decree of specific performance and appropriate injunctive relief may
be applied for and granted in connection therewith.  Such remedies and any and all other remedies provided for in this Agreement shall, however, be cumulative in nature and not exclusive and shall be in addition to any other remedies whatsoever
which any party may have under this Agreement or otherwise.
  12.5     Entire Agreement and Amendments.     This Agreement, together with the
Asset Purchase Agreement and the Joint Marketing Agreement between Purcahser and Seller, constitutes the entire agreement of the parties with regard to the specific subject matter hereof and supersede all prior written and/or oral understandings
between the parties.  This Agreement may not be amended except pursuant to a writing signed by the parties.
  12.6     Waiver.     Any
waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement.  Any waiver must be in
writing and signed by the party to be charged therewith.
  12.7     Assignment.     Neither party shall assign this Agreement without the
written consent of the other and any attempted assignment without said consent shall be null, void and without any effect whatsoever; provided, that Purchaser may assign any or all of its rights hereunder to any affiliate or subsidiary of MBNA
Corporation, a Maryland corporation.   Any such assignment shall not relieve Purchaser from its obligations hereunder.
 12.8     Other
Documents.     Any list, summary or other document provided or delivered pursuant to this Agreement or in connection with the transaction contemplated hereby are incorporated herein by this reference and made a part
hereof.
  12.9     Construction.     The parties agree that this Agreement shall be governed, enforced by and construed in accordance with
the laws of the State of Delaware (excepting only those conflicts of laws provisions which would serve to defeat the operation of Delaware substantive law).  
  17

   12.10   No Third Party Beneficiaries.     This Agreement is for the sole and exclusive benefit of the parties hereto; nothing in
this Agreement shall be construed to grant to any person other that the parties hereto, and their respective successors and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any provision hereof.
 
12.11   Further Assurances.     The parties hereto hereby agree to do such further acts and things, and to execute and deliver such additional conveyances,
assignments, agreements and instruments, as either may at any time reasonably request in order to better assure and confirm unto each party their respective rights, powers and remedies conferred hereunder.
  12.12    Counterparts.     Provided that all parties hereto execute a copy of this Agreement, this Agreement may be executed in counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same instrument.  The parties acknowledge that delivery of executed copies of this Agreement may be effected by facsimile or other comparable means.
  12.13     Headings.     The headings contained herein are included solely for case of reference and in no way shall limit, expand or otherwise affect either the
substance or construction of the terms and conditions of this Agreement or the intent of the parties hereto.
 12.14     No Agency.     The
parties agree that in performing their responsibilities pursuant to this Agreement, they are in a position of independent contractors.  This Agreement shall not be deemed to constitute the parties hereto as partners or joint venturers, and
neither party hereto shall be deemed to be an agent of any nature, kind and description whatsoever of the other.
  12.15     Force
Majeure.     Neither party shall be in breach hereunder by reason of its delay in the performance of or failure to perform any of its obligations herein if such delay or failure is caused by acts of God or the public
enemy, riots, incendiaries, interference by military authorities or any other similar event beyond its reasonable control or without its fault or negligence.
  12.16     Time of the Essence.      Time is of the essence with respect to the performance of this Agreement.
  18

   IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective duly authorized officers  as of the day and year
first above written.

	  SELLER:
 	  
 	  
 	  PURCHASER:
 
	  
 	  
 	  
 	  
 
	  SOUTHLAND BANK
 	  
 	  
 	  MBNA AMERICA BANK, N.A.
 
	 By:
 	  /s/ KENNETH J. HUNNICUTT
 	  
 	  By:
 	  /s/ WILLIAM P. MORRISON, SR.
 
	  
 	 
 	  
 	  
 	 
 
	  Name:
 	  Kenneth J. Hunnicutt
 	  
 	  Name:
 	  William P. Morrison, Sr.
 
	  Title:
 	  Authorized Representative
 	  
 	  Title:
 	  Senior Executive Vice President
 

  19

   EXHIBIT A
 Conversion Schedule

   EXHIBIT B
  PURCHASER DESIGNATED INDIVIDUALS
  3.7     Applications in Process.

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	  Name
 	  Name
 
	  Address
 	  Address
 
	  Telephone
 	  Telephone
 
	  Facsimile
 	  Facsimile
 

  3.10   Change in Cardholder Status.
  (A)   Bankrupt Accounts. 

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	  Name
 	  Name
 
	 Address with mailstop
 	  Address with mailstop
 
	  Telephone
 	  Telephone
 
	  Facsimile
 	  Facsimile
 

  (B)    Death of Cardholder.

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	  Name
 	  Name
 
	  Address with mailstop
 	  Address with mailstop
 
	  Telephone
 	  Telephone
 
	  Facsimile
 	  Facsimile
 

  (C)   Consumer Credit Counseling Service Proposals. 

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	 Name
 	  Name
 
	  Address with mailstop
 	  Address with mailstop
 
	  Telephone
 	  Telephone
 
	  Facsimile
 	  Facsimile
 

  5.1     Settlement. 
  (A)    Settlement Reports.  

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	  Name
 	  Name
 
	  Address with mailstop
 	  Address with mailstop
 
	  Telephone
 	  Telephone
 
	  Facsimile
 	  Facsimile
 

  (B)    Settlement Statement 

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	  Name
 	  Name
 
	  Address with mailstop
 	  Address with mailstop
 
	  Telephone
 	  Telephone
 
	  Facsimile
 	  Facsimile
 

  5.2    Reports.
  (A)    Servicer Reports. 

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	  Name
 	  Name
 
	  Address with mailstop
 	  Address with mailstop
 
	 Telephone
 	  Telephone
 
	  Facsimile
 	  Facsimile
 

  (B)    Credit Reports.  

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	  Name
 	  Name
 
	  Address with mailstop
 	  Address with mailstop
 
	  Telephone
 	  Telephone
 
	  Facsimile
 	  Facsimile
 

  (C)    Customer Service Reports.  

	  Consumer credit card accounts
 	  Commercial credit card accounts
 
	  Name
 	  Name
 
	 Address with mailstop
 	 Address with mailstop
 
	 Telephone
 	 Telephone
 
	 Facsimile
 	 Facsimile
 

  SCHEDULE I
 CONVERSION FILE REQUIREMENTSJoint Marketing Agreement between ABC and MBNA dated 12-19-2002

  Exhibit 10.18
  ABC BANCORP
 JOINT MARKETING AGREEMENT
  This Agreement is entered into as of this 19th day of December, 2002 by and between MBNA AMERICA BANK, N.A., a national banking association having its principal place of business in Wilmington, Delaware
(“MBNA”), and ABC BANCORP, a Georgia corporation having its principal place of business in Moultrie, Georgia  (“ABC”), for themselves and their respective successors and assigns.
  1.          DEFINITIONS
  In addition to the terms specifically defined elsewhere in this Agreement, when used in this
Agreement, the term:
  (a)        “ABC Affiliate” means any entity which, directly or indirectly, owns or controls, is owned or controlled by, or is
under common ownership or control with, ABC.
   (b)       “ABC Customer” means a past or present customer of ABC and/or other potential participants
mutually agreed to by ABC and MBNA. 
   (c)        “Acquired Account” means a retail consumer credit card account purchased by MBNA from an ABC
Affiliate pursuant to the Asset Purchase Agreement.   ABC agrees that the Acquired Accounts shall not generate any Royalty compensation.
  (d)         “Acquired Business Account” means a business credit card account purchased by MBNA from an ABC Affiliate pursuant to the Asset Purchase Agreement. ABC agrees
that the Acquired Business Accounts shall not generate any Royalty compensation.
  (e)         “Agreement” means this agreement and Schedules
A, B and C. 
 (f)         “Asset Purchase Agreement” means the asset purchase agreement executed concurrently herewith by and between MBNA and
ABC or an ABC Affiliate whereby MBNA is to purchase certain retail and business credit card accounts of ABC or an ABC Affiliate. 
  (g)        “Branch
Solicitation Program” or “BSP” means any marketing or other program whereby ABC or an ABC Affiliate distributes take-one applications for the Program at its branches or in ABC or an ABC Affiliate Customer statements, or ABC or an ABC
Affiliate conducts solicitation efforts for the Program, and the parties mutually agree that each such program shall constitute a BSP.
  (h)        “BSP
Account” means a Credit Card Account opened by a person pursuant to a BSP in which ABC or an ABC Affiliate complies with the BSP provisions of this Agreement. A “Reward BSP Account” means a Reward Credit Card Account opened by a
person pursuant to a BSP in which ABC or an ABC Affiliate complies with the BSP provisions of the Agreement.
  (i)        “Business” means any
corporation, partnership, organization, association, proprietorship or other entity.
  1

   (j)       “Business Credit Card Account” means a business credit card account opened by an ABC Customer in response to marketing
efforts made pursuant to the Program.
  (k)      “Cardholder” means any ABC Customer (including, without limitation, any employee or agent thereof) who is a
participant in the Program.
  (l)       “Credit Card Account” means a consumer credit card account opened by an ABC Customer in response to marketing
efforts made pursuant to the Program. A “Reward Credit Card Account” means a credit card account carrying the Reward Enhancement and opened pursuant to the Program.
 (m)       “Credit Card Services” means consumer credit card programs, business credit card programs, charge card programs, debit card programs, and travel and entertainment card
programs.
  (n)        “Effective Date” means the date upon which MBNA acquires from ABC or an ABC Affiliate certain credit card accounts pursuant
to the Asset Purchase Agreement which must be executed by January 31, 2003 and closing must occur by January 31, 2003 or such other date as the parties must mutually agree upon, otherwise this Agreement shall terminate without liability.

 (o)        “Mailing List” means an updated and current lists and/or magnetic tapes (in a format designated by MBNA) containing names, postal addresses and,
when available, telephone numbers and e-mail addresses of ABC Customers other than ABC Customers who were customers of a 3rd Party prior to an Event (subject to the provisions of Section 2(l)), segmented by zip codes or reasonably
selected customer characteristics.
  (p)        “Nonpublic Personal Information” shall have the meaning set forth in Section 509(4) of GLBA and the
applicable regulations promulgated thereunder.
  (q)        “Program” means those programs and services of the Credit Card Services MBNA agrees to
offer pursuant to this Agreement to the ABC Customers from time to time.
  (r)        “Reward Enhancement” means the loyalty reward enhancement as
provided through MBNA and offered as part of the Program for Reward Credit Card Accounts.  MBNA reserves the right to change the name(s) of the Reward Enhancement, in its sole discretion, from time to time.
  (s)        “Royalties” means the compensation set forth in Schedule B.
  (t)        “Trademarks” means any design, image, visual representation, logo, service mark, trade dress, trade name, or trademark used or acquired by ABC or any ABC Affiliate
during the term of this Agreement.
 2.           RIGHTS AND RESPONSIBILITIES OF ABC
  (a)          ABC agrees that during the term of this Agreement it will endorse the Program exclusively and that neither ABC nor any ABC Affiliate  shall, by itself or in
conjunction with others, directly or indirectly: (i) sponsor, advertise, aid, develop, market, solicit proposals for 
  2

   programs offering, or discuss with any organization (other than MBNA) the providing of, any Credit Card Services of any organization other than MBNA; (ii) license or allow
others to license or use the Trademarks in relation to or for promoting any Credit Card Services of any entity other than MBNA; and (iii) sell, rent or otherwise make available or allow others to sell, rent or otherwise make available any of its
mailing lists or information about any current or potential ABC Customers in relation to or for promoting any Credit Card Services of any entity other than MBNA.
  (b)          ABC agrees to provide MBNA with such information and assistance as may be reasonably requested by MBNA in connection with the Program.
  (c)          ABC authorizes MBNA to solicit its ABC Customers by mail, direct promotion, internet, advertisements and/or telephone for participation in the
Program.
  (d)          ABC shall have the right of prior written approval of all Program advertising and solicitation materials to be used by MBNA
which contain a Trademark; such approval shall not be unreasonably withheld or delayed.  In the event that MBNA incurs a cost because of a change requested by ABC (e.g., the cost of reissuing new credit cards), MBNA may deduct such costs
from Royalties due ABC.  In the event such costs exceed Royalties then due ABC, ABC shall promptly reimburse MBNA for all such costs.
 (e)          Within 14 business days of the request of MBNA, ABC shall provide MBNA with the Mailing List free of any charge; provided, however, that ABC shall not include in
any Mailing List the name and/or related information regarding any person who has expressly requested that ABC not provide his/her personal information to third parties or any person with respect to whom applicable law prohibits ABC from disclosing
such personal information.  In the event that MBNA incurs a cost because of a charge assessed by ABC or its agents for an initial Mailing List or an update to that list, MBNA may deduct such costs from Royalties due ABC.  ABC shall provide
the first Mailing List, containing at least seventy-five thousand (75,000) non-duplicate names (of persons at least eighteen years of age) with corresponding valid postal addresses and, when available, telephone numbers and e-mail addresses, as soon
as reasonably possible, but no later than thirty (30) days after ABC’s execution of this Agreement.
  (f)          ABC shall only communicate
with ABC Customers or potential ABC Customers on an individual basis about the Program in a manner that (i) accurately and clearly represents the Program, and (ii) is in compliance with applicable law and regulation.  ABC may respond to ABC
Customer inquiries by referring such inquiries to MBNA or by distributing then-current advertising and solicitation materials provided by MBNA to ABC to the ABC Customer. Otherwise, ABC shall not communicate with ABC Customers or potential ABC
Customers about the Program without MBNA’s prior written  approval.  Any correspondence received by ABC that is intended for MBNA (e.g., applications, payments, billing inquiries, etc.) shall be forwarded to the MBNA account
executive via overnight courier within 24 hours of receipt.  All charges incurred for this service will be paid by MBNA.
  (g)          ABC
hereby grants MBNA and its affiliates a limited, exclusive license to use the Trademarks solely in conjunction with the Program, including the promotion thereof. This license may be transferred upon permitted assignment of this Agreement. This
license shall remain in effect for the duration of this Agreement and shall apply to the Trademarks 
 3

   notwithstanding the transfer of such Trademarks by operation of law or otherwise to any permitted successor, corporation, organization or individual.  ABC shall provide
MBNA all Trademark production materials (e.g., camera ready art) required by MBNA for the Program, as soon as reasonably possible, but no later than thirty (30) days after ABC’s execution of this Agreement.  Nothing stated in this
Agreement prohibits ABC from granting to other persons a license to use the Trademarks in conjunction with the providing of any other service or product, except for any Credit Card Services. 
  (h)          ABC shall permit MBNA to advertise the Program on its home page and at other prominent locations within the internet site of ABC.  MBNA may establish a
“hot-link” from such advertisements to another internet site to enable a person to apply for a Credit Card Account.  Any Credit Card Accounts generated pursuant to such a “hot-link” shall entitle ABC to the BSP compensation
set forth in Schedule B, subject to the other terms and conditions of this Agreement.  ABC shall modify or remove such advertisements within twenty-four (24) hours of MBNA’s request.  MBNA’s “hot-link” from ABC’s
internet site shall direct the person to an application for or information about the Program and at no time shall such hot-link (i) provide any advertisement of or access to any product other than Credit Card Services; and (ii) provide any
advertisement that directly targets children.  MBNA shall (x) use commercially reasonable best efforts to ensure that its “hot-link” remains valid and that computer or cyber hackers or others cannot re-route the “hot-link”
or persons using ABC’s internet site to any website that ABC deems to be objectionable, in its sole reasonable discretion; (y) at all times post on its “hot-link” location an additional  “hot-link” button so that ABC
Customers have access to MBNA’s privacy notice; and (z) notify ABC in advance if the destination page of MBNA’s “hot-link” has changed.  ABC reserves the right to remove any “hot-link” or advertisement from its
internet website if ABC, in its sole reasonable discretion, deems such “hot-link” or advertisement to be in violation of the terms of this Agreement or otherwise objectionable.  
 (i)          ABC shall ensure that at all times at least one officer or employee located at each of its then-existing branch offices (including, without limitation, any newly
opened branch offices and/or branch offices acquired through merger, consolidation or otherwise) has attended, a credit card sales orientation program to be conducted by MBNA (each, a “Sales Associate Program”).  MBNA may, at its sole
discretion, conduct Sales Associate Programs to assist ABC in ensuring that at least one Sales Associate Program attendee is located at each ABC branch office.  Subject to the foregoing, the timing, place and like details regarding each Sales
Associate Program shall be as mutually agreed by the parties.  Each party will be responsible for its own costs associated with having officers or employees attend each Sales Associate Program.
  (j)          If ABC is not, as of the Effective Date, a licensee of the MasterCard International Incorporated and/or Visa U.S.A., Inc. credit card systems as necessary or
appropriate to permit ABC to fully perform this Agreement, ABC shall, at ABC’s expense, promptly obtain and maintain such license(s) and re-licensing as necessary or appropriate to enable ABC to fulfill completely its obligations hereunder and
to participate in the activities contemplated by this Agreement.  Failure by ABC to promptly obtain any such license(s) shall constitute a material breach of this Agreement by ABC.
  (k)          ABC agrees to comply with applicable MasterCard International Incorporated and/or Visa U.S.A., Inc. regulations and/or requirements, including, but not limited to,
the requirement that ABC process cash advances at ABC locations.  
  4

   (l)          If ABC or any ABC Affiliate is a party to a merger, consolidation or acquisition (“Event”) and the
other party(ies) (the “3rd Party”) to the Event becomes part of ABC or an ABC Affiliate, or all or substantially all its assets are placed in ABC or in an ABC Affiliate (each the “Surviving Entity”), the following
terms shall apply, and ABC shall cause each ABC Affiliate to comply with the provisions set forth herein:

	 (i)     if prior to the Event the 3rd Party was an issuer of any Credit Card Services to persons and/or entities resident or
located in the United States of America (an “Existing Credit Card Program”), the Surviving Entity:  (x)  shall not accept or negotiate an offer or proposal from any other entity or person to purchase such United States credit
card accounts and related receivables in the Existing Credit Card Program (“Assets”) until MBNA has submitted its offer to the Surviving Entity to purchase the Assets and the Surviving Entity has, in good faith, considered such offer from
MBNA; (y) shall within one hundred and twenty days after the Event, cease all marketing for new accounts under the Existing Credit Card Program; and (z) shall not use, or permit others to use, any of the Trademarks in connection with the Existing
Credit Card Program.  The Surviving Entity shall provide MBNA with prior written notice of an Event and with such information as is reasonably necessary or reasonably requested to develop an offer for the Assets.  If the Surviving Entity
and MBNA cannot, within one hundred twenty (120) days after MBNA’s receipt of such notice, agree on the terms upon which MBNA would purchase the Assets, the Surviving Entity may either sell the Assets or continue to administer the Assets so
that all new credit card account acquisition marketing is ceased and no Program Trademarks or  Mailing Lists are used in such administration. If the Surviving Entity cannot obtain a third party entity to purchase the Assets, the parties agree
to develop a marketing program to encourage cardholders of the Existing Credit Card Program to accept a solicitation for a Credit Card Account under the Program and to conduct a balance transfer to promote the transferring of the outstanding balance
over to the New Credit Card Account.
 
	  
 	  
 
	  (ii)     if prior to the Event, the 3rd Party had an existing agent bank agreement (other than with MBNA) relating to offering any Credit
Card Service to persons and/or entities resident or located in the United States of America (and thus was not itself an issuer of a Credit Card Service) (“Existing Agent Bank Agreement”), the Surviving Entity shall use commercially
reasonable best efforts to terminate the Existing Agent Bank Agreement as soon as possible; provided that the Surviving Entity shall not be required to pay any interest, fees or penalties in connection with such termination.  If the Existing
Agent Bank Agreement is not terminated prior to the Event, the Surviving Entity may continue the Existing Agent Bank Agreement and perform all of its obligations thereunder, but shall not: (x) permit such agreement to be renewed or extended and
shall ensure that said agreement continues only until the end of its current term (as determined on the date of the Event); (y) provide, directly or indirectly, the other party to the Existing Agent Bank Agreement with any names and addresses that
MBNA has a right to under this Agreement prior to the Event; and (z) use or permits others to use the Trademarks in connection with the Existing Agent Bank Agreement.  For purposes of clarification, only those trademarks or names of the
3rd Party that were part of the Existing Agent Bank Agreement prior to the Event shall be utilized in connection with the Existing Agent Bank Agreement after the Event. If the 3rd Party’s existing agent bank agreement
prior
 

 5

	  to the Event was with MBNA, then such agreement shall inure to the Surviving Entity, and continue in full force and effect with respect to the Surviving Entity and the Credit
Card Services accounts generated pursuant thereto, through the end of its current term, unless otherwise agreed to by the parties.
 

  3.          RIGHTS AND RESPONSIBILITIES OF MBNA
  (a)          MBNA
shall design, develop and administer the Program.  MBNA shall market the Program and shall service and administer the Credit Card Accounts in accordance with the same high standards and the degree of service, skill, attention and care that MBNA
exercises with respect to its other similar financial institution credit card account portfolios.
  (b)          Except as provided in Section 4,
MBNA shall design all advertising, solicitation and promotional materials with regard to the Program.  MBNA reserves the right of prior written approval of all advertising and solicitation materials concerning or related to the Program, which
may be developed by or on behalf of ABC.
  (c)          MBNA shall bear all costs of producing and mailing materials for the Program. 

 (d)          MBNA shall make all credit decisions and shall bear all credit risks with respect to each Cardholder’s account(s) independently of ABC.

  (e)          MBNA shall use the Mailing Lists provided pursuant to this Agreement consistent with this Agreement and shall not permit those
entities handling these Mailing Lists to use them for any other purpose.  MBNA shall have the sole right to designate individuals or Businesses on these Mailing Lists to whom promotional material will not be sent.  These Mailing Lists are
and shall remain the sole property of ABC and shall, at ABC’s request following the termination of this Agreement, be promptly returned to ABC or destroyed to ABC’s reasonable satisfaction, in either case at MBNA’s expense. 
However, MBNA may maintain separately all information which it obtains as a result of an account relationship or an application for an account relationship.  This information becomes a part of MBNA’s own files and shall not be subject to
this Agreement; provided however that MBNA will not use this separate information in a manner that would imply an endorsement by ABC.
 (f)          MBNA shall not solicit ABC Customers for financial services not related to the Program during the term of this Agreement, provided that MBNA may solicit any ABC
Customer or Cardholder whose name is obtained through any source other than ABC and who is eligible for any other program offered by MBNA but only in connection with that other program.
  (g)          The parties agree to meet each year during the term of the Agreement to jointly develop the yearly marketing plan at which time the frequency and timing of the
mail and telemarketing campaigns and BSP programs will be jointly determined. 
  (h)          MBNA and ABC shall comply with the requirements of
Subtitle A of Title V of the Gramm-Leach-Bliley Act (“GLBA”) and the applicable regulations promulgated thereunder.  MBNA and ABC consider their relationship under the Agreement to be a joint marketing relationship as defined in
Section 216.13 of Regulation P.  MBNA and ABC shall describe the existence of the joint marketing agreement, as required by Section 216.6(a)(5) of Regulation P, 
  6

   in their initial, annual, and, if applicable, revised privacy notices. Consistent with Section 216.13 of Regulation P, MBNA shall not disclose or use the Nonpublic Personal
Information provided by ABC other than to carry out the purposes of designing, developing and administering the Program or as otherwise permitted pursuant to Sections 216.11, 216.14, and 216.15 of Regulation P. MBNA shall follow the safeguards
established pursuant to Section 501(b) of GLBA.
  (i)          Except as otherwise provided in Section 3(h), MBNA agrees that it will comply in all
material respects with federal law and the laws of the State of Delaware, including, but not limited to, the Truth in Lending Act and the Equal Credit Opportunity Act with regard to the Program.   The parties agree that MBNA’s failure
to comply with this Section 3(i) is not a material breach under this Agreement unless such failure to comply materially effects the Program.
 (j)          Currently, MBNA uses its Customer Satisfaction Test to help it determine its success in servicing its customers.  Each calendar year, at the request of
ABC,  MBNA shall provide ABC with a report showing MBNA’s success in serving its customers based upon the then current standards.  In the event that there is a material departure from the designated standards and MBNA’s actual
performance in any calendar year, MBNA shall meet with ABC and explain the reasons for the departure and how MBNA plans to achieve the designated standards.  In the event that there continues to be a material departure from the designated
standards in the next two calendar quarters following the meeting, the parties shall escalate the discussion above the operating level of each party to senior managers.  These senior managers shall resolve any concerns ABC has concerning the
customer service MBNA is providing.  
  4.          BRANCH SOLICITATION PROGRAM:
  (a)         MBNA shall design all advertising, solicitation and promotional material with regard to the Program, except with respect to those materials designed by ABC pursuant to
any BSP.  In that regard, ABC shall give MBNA sixty (60) days prior notice of its desire to engage in marketing efforts regarding the Program itself, specifying that accounts generated from such efforts will entitle ABC to the Royalty specified
in Schedule B, subject to the other terms and conditions of this Agreement.
  (b)          All marketing materials generated as a result of such BSP
programs shall be coded by ABC for tracking purposes.  Marketing materials or telemarketing inquiries from ABC Customers which, in either case, do not contain or reference such coding shall not be considered eligible for any of the BSP Royalty
as set forth in Schedule B.
  (c)          In addition to all other rights it may have under this Agreement, MBNA shall have the right of prior
approval of all advertising and solicitation materials distributed by ABC pursuant to any BSP.  MBNA shall have approval and control of the scope, timing, content and continuation of any BSP.
 (d)         Other than the production and delivery of take-one applications to ABC, all costs incurred by MBNA in producing and mailing materials created pursuant to any BSP or of
supporting the marketing efforts of ABC pursuant to any BSP shall be deducted from any or all Royalty payments due ABC under this Agreement.
  7

   (e)         ABC shall comply with MBNA’s instructions and all applicable laws, including, without limitation, the Truth in
Lending Act and the Equal Credit Opportunity Act, with regard to any BSP.
  5.          REPRESENTATIONS AND WARRANTIES
  (a)         ABC and MBNA each represents and warrants to the other that as of the Effective Date and throughout the term of this Agreement:
               (i)          It is duly organized or formed, validly existing and in good standing.
 
            (ii)          It has all necessary power and authority to execute and deliver this
Agreement and to perform its obligations under this Agreement.
              (iii)          This Agreement constitutes a legal, valid and binding obligation of such party,
enforceable against such party in accordance with its terms, except as such enforceability may be limited by insolvency, receivership, conservatorship, reorganization or other similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity.
              (iv)          No consent,
approval or authorization from any third party is required in connection with the execution, delivery and performance of this Agreement, except such as have been obtained and are in full force and effect.
             (v)           The execution, delivery and performance of this Agreement by such party will not
constitute a violation of any law, rule, regulation, court order or ruling applicable to such party.
  (b)        ABC represents and warrants to MBNA as of
the date hereof and throughout the term of this Agreement that it has the right and power to license the Trademarks to MBNA for use as contemplated by this Agreement and to provide the Mailing List(s) to MBNA for the promotion of the
Program.
  6.          ROYALTIES
  (a)         During the term of this Agreement, MBNA shall pay Royalties to ABC.  Royalties will not be paid without a completed Schedule C (W-9 Form and EFT Form).  Except
as otherwise provided in Schedule B, payment of Royalties then due shall be made approximately forty five (45)  days after the end of each calendar quarter.  All payments shall be in U.S. dollars.
  (b)         On or before the forty five (45) day after the end of each calendar quarter during the term of this Agreement, MBNA will provide ABC with an itemized statement showing
the number of Credit Card Accounts opened, the number of Credit Card Accounts renewed and the finance charge dollar volume (excluding those transactions that relate to refunds, returns and unauthorized transactions), made during the preceding
calendar period.
  (c)         Upon the written request of ABC,  but no more frequently than two (2) requests in any twelve (12) month period, MBNA
shall provide ABC with system reports generated by MBNA containing all the information which both (i) formed the basis of MBNA’s calculation of the 
  8

   Royalties due ABC since the last request was made or, if no previous request was made hereunder, for the last four (4) Royalty calculations performed by MBNA, and (ii) may be
disclosed by MBNA without violating any legal rights of any third party or obligation of MBNA.  Such reports shall be certified by an officer of MBNA as to their accuracy; provided, however, that the reports shall be certified as to their
accuracy by the nationally recognized independent certified public accountants then being utilized by MBNA, at ABC’s expense, if ABC so requests such accountants’ certification in its written request(s) for the generation of such reports
hereunder.
 7.          CROSS INDEMNIFICATION
  ABC and MBNA each will indemnify and hold
harmless the other party, its directors, officers, agents, employees, affiliates, insurers, successors and assigns (the “Indemnitees”) from and against any and all liability, causes of action, claims, and the reasonable and actual costs
incurred in connection therewith (“Losses”), resulting from the material breach of this Agreement by ABC or MBNA, respectively as the case may be, or its directors, officers or employees.  ABC will indemnify and hold harmless MBNA and
its Indemnitees from and against any and all Losses arising from the Trademark license granted herein or from MBNA’s use of the Trademarks in reliance thereon, or from the use of the Mailing List(s) by MBNA provided such use is in accordance
with the terms of this Agreement.  Each party shall promptly notify the other party in the manner provided herein upon learning of any claims or complaints that may reasonably result in the indemnification by the other party.  All
indemnities contained in this Section 7 shall survive the termination of this Agreement for a period of three years.
  8.          PROGRAM
ADJUSTMENTS
  A summary of the current features of the Program are set forth in Schedule A.  MBNA reserves the right to make periodic adjustments to the Program and its terms and
features.  
  9.          CONFIDENTIALITY
  (a)         The terms of this Agreement, any proposal, financial information and proprietary information provided by or on behalf of one party to the other party prior to,
contemporaneously with, or subsequent to, the execution of this Agreement (the “Information”) are confidential as of the date of disclosure.  Such Information will not be disclosed by such other party to any other person or entity,
except as permitted under this Agreement or as mutually agreed in writing.  MBNA and ABC shall be permitted to disclose such Information (i) to their accountants, legal, financial and marketing advisors, and employees as necessary for the
performance of their respective duties, provided that said persons agree to treat the Information as confidential in the above described manner and (ii) as required by law or by any governmental regulatory authority. 
 (b)          In addition to the foregoing, MBNA shall, and shall use its commercially reasonable best efforts to cause its authorized agents and representatives to, hold in
strict confidence, and except in connection with the transactions contemplated hereby or in the fulfillment of MBNA’s obligations under this Agreement, not disclose to any person or entity without the prior written consent of ABC, any Nonpublic
Personal Information of the ABC Customers that has been or will be provided by ABC to MBNA on any Mailing List  (collectively, “ABC Customer Proprietary Information”).  The parties agree that such ABC Customer Proprietary
Information 
  9

   may be disclosed by MBNA (i) where necessary to any regulatory authorities or governmental agencies, (ii) if required by court order or decree, or (iii) if ABC is advised in
writing by counsel of MBNA that MBNA is legally required to make such disclosure.  If such ABC Customer Proprietary Information is to be disclosed pursuant to clause (i), (ii) or (iii) hereinabove, MBNA shall (x) give as much notice to ABC as
is practicable prior to making such disclosure, (y) cooperate with ABC and its counsel to obtain an appropriate protective order or other reliable assurance (at ABC’s expense) to prevent or limit the disclosure of the ABC Customer Proprietary
Information and (z) disclose only that portion of the ABC Customer Proprietary Information as is necessary to comply with applicable law.  The term ABC Customer Proprietary Information shall not include information which MBNA obtains as a
result of an account relationship or an application for an account relationship as provided for in Section 3(e) of this Agreement.
  (c)          MBNA acknowledges and agrees that a breach by MBNA of the terms of this Section 9 or Section 10 hereof would cause irreparable harm and damage to ABC, the extent
and amount of which are incapable of reasonably accurate valuation as of the date hereof.  Accordingly, nothing set forth herein shall bar ABC’s right to obtain specific performance of the provisions of this Section 9 or Section 10 hereof
and to obtain injunctive relief against threatened conduct that will cause ABC loss or damages, under customary equity rules, including, without limitation, applicable rules for obtaining restraining orders and preliminary injunctions.  MBNA
agrees that ABC may obtain injunctive relief, without bond, but upon due notice, in addition to all further and other relief as may be available at law or in equity.  
 (e)          The rights of ABC under this Section 9 and Section 10 hereof are cumulative, and no exercise or enforcement by ABC of any right or remedy under this Section 9 and
Section 10 hereof shall preclude the exercise or enforcement by ABC of any other right or remedy under this Agreement or to which ABC is entitled at law or in equity to enforce.
  10.          INFORMATION SECURITY
  All ABC Customer Proprietary Information shall be deemed to be confidential
information, and MBNA shall not, without the prior written consent of ABC, use any ABC Customer Proprietary Information for any purpose other than as reasonably necessary to fulfill the terms of this Agreement.  MBNA shall not make ABC Customer
Proprietary Information available to any employees, contractors or agents of MBNA except those with a need to know such information for purposes of MBNA’s performance hereunder.
  11.          TERM OF AGREEMENT
  The initial term of this Agreement and the obligation to pay Royalties will begin on
the Effective Date and end on December 31, 2007. This Agreement and the obligation to pay Royalties will automatically extend at the end of the initial term or any renewal term for successive two-year periods, unless either party gives written
notice of its intention not to renew at least ninety (90) days, but not more than one hundred eighty (180) days, prior to the last date of such term or renewal term, as applicable.
  12.          STATE LAW GOVERNING AGREEMENT
  10

   This Agreement shall be governed by and subject to the laws of the State of Delaware (without regard to its conflict of laws principles) and shall be deemed for all purposes
to be made and fully performed in Delaware.
  13.         TERMINATION
 (a)          In the event of any material breach of this Agreement by MBNA or ABC, the other party may terminate this Agreement by giving notice, as provided herein, to the
breaching party.  This notice shall (i) describe the material breach; and (ii) state the party’s intention to terminate this Agreement.  If the breaching party does not cure or substantially cure such breach within sixty (60) days
after receipt of notice, as provided herein (the “Cure Period”), then this Agreement shall terminate sixty (60) days after the Cure Period.  
  (b)
       If either MBNA or ABC becomes insolvent in that its liabilities exceed its assets or it is unable to meet or it has ceased paying its obligations as they generally become due, or it is adjudicated insolvent,
or takes advantage of or is subject to any insolvency proceeding, or makes an assignment for the benefit of creditors or is subject to receivership, conservatorship or liquidation or becomes subject to the supervisory powers vested in any governing
person or body (other than those supervisory powers exercised by such governing person or body with respect to financially sound institutions), then the other party may immediately terminate this Agreement upon notice to the other party or its
representative. 
  (c)         Upon termination of this Agreement, MBNA shall, in a manner consistent with Section 13(d) of this Agreement, cease to use
the Trademarks.  MBNA agrees that upon such termination it will not claim any right, title, or interest in or to the Trademarks or to the Mailing Lists provided pursuant to this Agreement.  However, MBNA may conclude all solicitation that
is required by law without the use of the Trademarks.
  (d)          MBNA shall have the right to prior review and approval of any notice in
connection with, relating or referring to the termination of this Agreement to be communicated by ABC to the ABC Customers.  Such approval shall not be unreasonably withheld or delayed.  Upon termination of this Agreement, ABC shall not
attempt to cause the removal of ABC’s identification or Trademarks from any person’s credit devices, checks or records of any Cardholder existing as of the effective date of termination of this Agreement. 
 (e)          If ABC is subject to conservatorship or receivership under the authority of the Federal Deposit Insurance Corporation, the Resolution Trust Corporation, or a state
or federal regulatory or supervisory agency, then MBNA, at its sole discretion, may offer to continue the Agreement with the resulting or succeeding financial institution on the same terms and conditions, provided however, that said financial
institution shall be responsible for the cost to MBNA to reissue credit cards bearing the name of said institution at a rate of Two Dollars and Fifty Cents ($2.50) per card to be deducted by MBNA from the future compensation due to the said
resulting or successor institution.
  (f)          For a one (1) year period following the termination of this Agreement for any reason other than a
breach of this Agreement by MBNA, ABC agrees that neither ABC nor any ABC Affiliate shall, by itself or in conjunction with others, directly or indirectly, specifically target any offer of a credit card or charge card to persons who were
Cardholders.  Notwithstanding the 
  11

   foregoing, ABC may, after termination of this Agreement, offer persons who were Cardholders the opportunity to participate in another credit card or charge card program
endorsed by ABC provided the opportunity is not only made available to such persons, but rather is offered as a part of a general solicitation to all ABC Customers and provided further no such persons are directly or indirectly identified as a
customer of MBNA, or offered any terms or incentives different from that offered to all ABC Customers.
  14.         MISCELLANEOUS
 
(a)          This Agreement cannot be amended except by written agreement signed by the authorized agents of both parties hereto. 
  (b)          The obligations in Sections 6 (for purposes of paying Royalties that accrued up through the date of termination of this Agreement), 7 (as limited by Section 7), 9,
13(c), 13(d), 13(e) and 13(f) hereof shall survive any termination of this Agreement indefinitely. 
 (c)          The failure of any party to
exercise any rights under this Agreement shall not be deemed a waiver of such right or any other rights.
  (d)         The section captions are inserted
only for convenience and are in no way to be construed as part of this Agreement.
  (e)          If any part of this Agreement shall for any reason
be found or held invalid or unenforceable by any court or governmental agency of competent jurisdiction, such invalidity or unenforceability shall not affect the remainder of this Agreement which shall survive and be construed as if such invalid or
unenforceable part had not been contained herein. 
  (f)          All notices relating to this Agreement shall be in writing and shall be deemed
received (i) upon receipt by hand delivery, confirmed facsimile or overnight courier, or (ii) three (3) business days after mailing by registered or certified mail, postage prepaid, return receipt requested.  All notices shall be addressed as
follows:

	  (1)
 	  If to ABC:
 
	  
 	  
 
	  
 	  ABC Bancorp
 	  
 
	  
 	  24 Second Avenue, SE
 	  
 
	  
 	  Moultrie, GA 31768
 	  
 
	  
 
	  
 	 ATTENTION:
 	  Mike McDonald
 
	  
 	  
 	  Senior Vice President
 
	  
 
	  
 	  Fax #:     (229) 873-4456
 	  
 
	  
 
	  (2)
 	  If to MBNA:
 	  
 
	  
 
	  
 	  MBNA AMERICA BANK, N. A.
 	  
 
	  
 	  Rodney Square
 	  
 
	  
 	  Wilmington, Delaware 19884-0211
 	  
 
	  
 	  
 	  
 
	  
 	 ATTENTION:
 	  William P. Morrison, Sr.
 
	  
 	  Senior Executive Vice President
 
	  
 
	  
 	  Fax #:(302) 432-0805
 	  
 
	  
 	  
 
						

  12

   Any party may change the address to which communications are to be sent by giving notice, as provided herein, of such change of address.
  (g)          This Agreement contains the entire agreement of the parties with respect to the matters covered herein and supersedes all prior promises and agreements, written or
oral, with respect to the matters covered herein.  Without the prior written consent of MBNA, which shall not be unreasonably withheld, ABC may not assign any of its rights or obligations under or arising from this Agreement.  MBNA may not
assign any of its rights or obligations under this Agreement to any other person without the prior consent of ABC, which shall not be unreasonably withheld; provided however, that MBNA may assign or transfer, without consent, its rights and/or
obligations under this Agreement:

	   
 	  (i)
 	  to any individual, corporation or other entity (other than an affiliate of MBNA) pursuant to a merger, consolidation, or a sale of all or substantially all the assets of MBNA;
or
 
	   
 	  
 	  
 
	   
 	 (ii)
 	  to any affiliate of MBNA.
 

  (h)          MBNA may
utilize the services of any third party in fulfilling its obligations under this Agreement.  Certain Credit Card Services or services under this Agreement may be offered through MBNA’s affiliates.  For example, business credit cards
are currently issued and administered by MBNA (Delaware), N.A., and certain marketing services are currently provided by MBNA Marketing Systems, Inc.
  (i)          MBNA and ABC are not agents, representatives or employees of each other and neither party shall have the power to obligate or bind the other in any manner except
as otherwise expressly provided by this Agreement.
  (j)          Nothing expressed or implied in this Agreement is intended or shall be construed
to confer upon or give any person other than ABC and MBNA, their successors and assigns, any rights or remedies under or by reason of this Agreement. 
  (k)          Neither party shall be in breach hereunder by reason of its delay in the performance of or failure to perform any of its obligations herein if such delay or
failure is caused by acts of God or the public enemy, riots, incendiaries, interference by military authorities or any other similar event beyond its reasonable control or without its fault or negligence.
  (l)          This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.
 (m)          Except as otherwise provided herein, each party will be responsible for, and will pay or reimburse the other for, all
expenses, including, without limitation, any sales, use, excise, value-
  13

   added or similar taxes (but not including taxes on net income or franchise taxes), arising out of its performance of this Agreement. 
  14

   IN WITNESS WHEREOF, each of the parties, by its representative, has executed this Agreement as of the date first above written.

	  
 	  ABC BANCORP
 	  
 	  
 	  MBNA AMERICA BANK, N.A.
 
	  
 	  
 	  
 	  
 	  
 
	  By:
 	  /s/ KENNETH J. HUNNICUTT
 	  
 	  By:
 	  /s/ WILLIAM P. MORRISON, SR.
 
	  
 	 
 	  
 	  
 	 
 
	 Name:
 	  Kenneth J. Hunnicutt
 	  
 	  Name:
 	  William P. Morrison, Sr.
 
	  Title:
 	  Chief Executive Officer
 	  
 	  Title:
 	  Senior Executive Vice President
 
	  
 	  
 	  
 	  
 	  
 
	  Date:
 	  December 20, 2002
 	  
 	  Date:
 	  December 20, 2002
 

  15

  SCHEDULE A
  TERMS AND FEATURES 
  Subject to (i)
MBNA’s right to vary the Program and its terms and features, and (ii) theapplicable agreement entered into between MBNA and each applicable Cardholder: 

	  A.
 	  CREDIT CARD ACCOUNTS (OTHER THAN ACQUIRED ACCOUNTS AND REWARD CREDIT CARD ACCOUNTS)
 
	  
 	  
 
	  
 	  1.
 	  There is NO annual fee.
 
	  
 	  
 	  
 
	  
 	  2.
 	  The current annual percentage rate (“APR”) will be a fixed rate of 12.99%. The APR for ABC employee accounts will be at least 100 basis points less than the APR for
current Program take one applications.  The current APR for ABC employee accounts will be 10.99%.
 
	  
 	  
 	  
 
	  
 	  3.
 	  Cardholders may be offered opportunities to purchase a variety of communication services and to select credit insurance as a benefit under the Program.
 
	  
 	  
 	  
 
	 B.
 	  CONSUMER REWARD CREDIT CARD ACCOUNTS
 
	  
 	  
 
	  
 	  1.
 	  There is NO annual fee.
 
	  
 	  
 	  
 
	  
 	  2.
 	  The current APR is 13.99.
 
	  
 	  
 	  
 
	  
 	  3.
 	  Cardholders may be offered opportunities to purchase a variety of communication services and to select credit insurance as a benefit under the Program.
 
	  
 	  
 	  
 
	  C.
 	  BUSINESS CREDIT CARD ACCOUNTS (OTHER THAN ACQUIRED BUSINESS ACCOUNTS)
 
	  
 	  
 
	 MBNA reserves the right to change the product name(s) (e.g., Platinum Plus for Business), in its sole discretion, from time to time.
 
	  
 
	  
 	  1.
 	  There is no annual fee for each business card issued to an individual or business entity pursuant to the BusinessCard Credit Card Account program.  MBNA reserves the right
to make special pricing offers for BusinessCard Credit Card Accounts to select ABC Customers at its own discretion.
 
	  
 	  
 	  
 
	  
 	  2.
 	  The current APR for BusinessCard Credit Card Accounts is a fixed rate of 12.99%
 

  16

   SCHEDULE B
  ROYALTY ARRANGEMENT
  During the term
of this Agreement, MBNA will pay ABC a Royalty calculated as follows, for those accounts with active charging privileges.  MBNA may create a special class of accounts for ABC employees under the Program, and will not pay compensation for such
designated accounts.  Subject to the terms of this Agreement, all Royalty payments due hereunder are subject to adjustment by MBNA for any prior underpayment or overpayment of Royalties by MBNA: 

	  A.
 	  CREDIT CARD ACCOUNTS  (OTHER THAN ACQUIRED ACCOUNTS & REWARD CREDIT CARD ACCOUNTS)
 
	  
 	  
 
	  
 	 1.
 	  $10.00 (ten dollars) for each new Credit Card Account opened, which remains open for at least ninety (90) consecutive days.
 
	  
 	  
 	  
 
	  
 	  2.
 	  5.00% (five percent) of the finance charges assessed by the application of the relevant periodic rate(s) to the respective average daily balance(s) of certain Credit Card
Accounts (the “Finance Charges”).  This payment shall be calculated as of the end of each calendar quarter, based upon average daily balances measured as of the end of each of the preceding three months.  Each such monthly
measurement shall include only Finance Charges assessed during such month, and shall exclude Finance Charges assessed on Credit Card Accounts which, as of the day of measurement, are thirty-five (35) or more days delinquent or are 10% or more over
the assigned credit line for such Credit Card Account.
 

   

	  B.
 	  CONSUMER REWARD CREDIT CARD ACCOUNTS (OTHER THAN ACQUIRED ACCOUNTS)
 
	  
 	  
 
	  
 	  1.
 	  $10.00 (ten dollar) for each consumer Reward Credit Card Account opened, which remains open for at least ninety (90) consecutive days. This Royalty will not be paid for any
Credit Card Account which, after opening, converts to a Reward Credit Card Account.
 
	  
 	  
 	  
 
	  
 	 2.
 	  2.50% (two & one half percent) of the finance charges assessed by the application of the relevant periodic rate(s) to the respective average daily balance(s) of certain Plus
Rewards Credit Card Accounts (the “Finance Charges”).  This payment shall be calculated as of the end of each calendar quarter, based upon average daily balances measured as of the end of each of the preceding three months.  Each
such monthly measurement shall include only Finance Charges assessed during such month, and shall exclude Finance Charges assessed on Credit Card Accounts which, as of the day of measurement, are thirty-five (35) or more days delinquent or are 10%
or more over the assigned credit line for such Credit Card Account.
 

  17

	  C.
 	  CONSUMER BSP ACCOUNTS
 
	  
 	  
 
	  
 	  1.
 	  $25.00 (twenty five dollars) for each consumer BSP Account opened, which remains open for at least ninety (90) consecutive days and which is utilized by the Cardholder within
the first ninety (90) consecutive days of the BSP Account’s opening for at least one purchase or cash advance which is not subsequently rescinded, the subject of a charge back request, or otherwise disputed.  Such BSP Accounts will not
qualify for any other opening-of-an-account Royalty.
 
	  
 	  
 	  
 
	  
 	 2.
 	  $25.00 (twenty five dollars) for each consumer Reward BSP Account opened, which remains pen for at least ninety (90) consecutive days and which is utilized by the Customer
within the first ninety (90) consecutive days of the Reward BSP Account’s opening for at least one purchase or cash advance which is not subsequently rescinded, the subject of a charge back request, or otherwise disputed.  Such Reward BSP
Accounts will not qualify for any other opening-of-an-account Royalty.
 

   

	  D.
 	  BUSINESS CREDIT CARD ACCOUNTS (OTHER THAN ACQUIRED BUSINESS ACCOUNTS)
 
	  
 	  
 
	  BusinessCard Credit Card Account compensation provisions shall not affect any other compensation provisions contained in the Agreement, and the compensation
provisions referencing any other form of Credit Card Accounts shall not apply to BusinessCard Credit Card Accounts.
 
	  
 	  
 	  
 
	  
 	  0.20% (two tenths of one percent) of the retail purchase transaction dollar volume generated by Customers using a BusinessCard Credit Card Account with active
charging privileges, excluding those transactions that (i) relate to refunds, returns and/or unauthorized transactions, and/or (ii) are cash equivalent transactions (e.g., the purchase of wire transfers, money orders, bets, lottery ticket, or
casino gaming chips).
 
	  
 	  
 	  
 

 18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]