Document:

EX-10.3 FORM OF TAX SHARING AGREEMENT

 

Exhibit 10.3

EXHIBIT C

FORM OF TAX SHARING AGREEMENT

     This TAX SHARING AGREEMENT (this “Agreement”), dated as of __________, 2007, by and
among Synovus Financial Corp., a Georgia corporation (“Synovus”), Columbus Bank and Trust
Company, a Georgia bank and trust company (“CB&T”), and Total System Services, Inc., a
Georgia corporation (“TSYS”).

RECITALS

     WHEREAS, as of the date of this Agreement, Synovus is the common parent of an affiliated group
of corporations within the meaning of Section 1504(a) of the Internal Revenue Code of 1986, as
amended (the “Code”), which currently files consolidated federal income tax returns, and
CB&T and TSYS are members of such affiliated group;

     WHEREAS, pursuant to the Agreement and Plan of Distribution dated __________, 2007 (the
“Distribution Agreement”), by and among Synovus, CB&T and TSYS, (i) TSYS shall declare and
pay a cash dividend to its shareholders including CB&T (the “Cash Dividend”), (ii) after
receiving its share of such Cash Dividend, CB&T shall distribute all of the shares of common stock,
par value $0.10 per share, of TSYS (the “TSYS Common Stock”) that it owns to Synovus (the
“First Distribution”), and (iii) Synovus shall distribute, on a pro rata basis to the
holders of the issued and outstanding shares of its common stock, par value $1.00 per share, all of
the shares of TSYS Common Stock that Synovus received from CB&T (the “Second Distribution”
and, together with the First Distribution, the “Distributions”);

     WHEREAS, as a result of the Distributions, TSYS and its subsidiaries shall cease to be members
of the Synovus affiliated group for all applicable tax purposes;

     WHEREAS, Synovus, CB&T and TSYS intend that the First Distribution and the Second Distribution
will qualify as distributions described in Section 355 of the Code and will not result in the
recognition of any taxable gain or income to Synovus, CB&T, TSYS or any of their respective
stockholders (other than any income or gain required to be taken into account under the
consolidated return regulations under Section 1502 of the Code as a result of TSYS and its
subsidiaries ceasing to be members of the Synovus affiliated group);

     WHEREAS, Synovus, CB&T and TSYS desire, on behalf of themselves, their subsidiaries and their
successors, to set forth their rights and obligations with respect to Taxes due for periods before
and after the Second Distribution and to address certain other Tax matters;

     NOW, THEREFORE, in consideration of the transactions recited above and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do
hereby agree as follows:

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ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. The following terms shall have the following meanings. All
section references are to this Agreement unless otherwise stated.

     “Affiliate” means, when used with respect to any specified person, a person that
directly or indirectly controls, is controlled by, or is under common control with such specified
person, in each case after the Distributions. As used herein, “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and
policies of such person, whether through the ownership of voting securities or other interests, by
contract or otherwise. For the avoidance of doubt, TSYS is not an Affiliate of Synovus nor of CB&T
for purposes of this Agreement.

     “Agreement” shall mean this Agreement.

     “Applicable Rate” shall mean the rate of interest announced from time to time by CB&T
as its prime lending rate.

     “Cash Dividend” has the meaning set forth in the Recitals.

     “CB&T” has the meaning set forth in the preamble to this Agreement.

     “CB&T Active Trade or Business” means the active conduct by CB&T of the banking
business conducted by CB&T as of the date on which the First Distribution is effected (determined
in accordance with Section 355(b) of the Code).

     “CB&T Capital Stock” means (i) all classes or series of capital stock of CB&T and (ii)
all options, warrants and other rights to acquire such capital stock.

     “Code” has the meaning set forth in the Recitals.

     “Dispute” has the meaning set forth in the Distribution Agreement.

     “Distributions” has the meaning set forth in the Recitals.

     “Distribution Date” means the date on which the Second Distribution is effected.

     “Final Determination” means the final resolution of liability for any Tax for any
taxable period by or as a result of (i) a final and unappealable decision, judgment, decree or
other order by any court of competent jurisdiction; (ii) a final settlement with the IRS, a closing
agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or a comparable
arrangement under the laws of another jurisdiction; (iii) any allowance of a refund in respect of
an overpayment of Tax, but only after the expiration of all periods during which such amount

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may be recovered by the Taxing Authority imposing the Tax; or (iv) any other final disposition,
including by reason of the expiration of the applicable statute of limitations.

     “First Distribution” has the meaning set forth in the Recitals.

     “Group” means the Synovus Group or the TSYS Group, or both, as the context requires.

     “Income Taxes” means all federal, state, local and foreign income Taxes or other Taxes
based on income or net worth.

     “Indemnitee” has the meaning set forth in Section 5.1.

     “Indemnifying Party” has the meaning set forth in Section 5.1.

     “Independent Firm” has the meaning set forth in Article VI.

     “IRS” means the U.S. Internal Revenue Service.

     “Joint Return” means any Tax Return that includes both one or more members of the
Synovus Group and one or more members of the TSYS Group.

     “Past Practices” has the meaning set forth in Section 3.3(a).

     “Post-Distribution Tax Period” means any taxable period (or portion thereof) beginning
after the Distribution Date.

     “Pre-Distribution Tax Period” means any taxable period (or portion thereof) ending on
or before the close of the Distribution Date.

     “Reportable Transaction” means a listed transaction or other reportable transaction as
defined in the Treasury Regulations promulgated under Section 6011 of the Code.

     “Restricted Period” means the period beginning on the Distribution Date and ending on,
and including, the last day of the two year period following the Distribution Date.

     “Satisfactory Guidance” means either a ruling from the IRS or a Supplemental Tax
Opinion, at the election of the party requesting the other party’s consent under Section 4.2 of
this Agreement, in either case reasonably satisfactory to the other party in both form and
substance, including with respect to any underlying assumptions or representations. Satisfactory
Guidance shall not include a Supplemental Tax Opinion with respect to which such other party’s
counsel, of recognized national standing, provides an opinion to such other party that the
conclusions in such Supplemental Tax Opinion are not free from doubt. For the avoidance of doubt,
this definition is intended to allow the other party to prevent the requesting party from taking
the action that is the subject of a Supplemental Tax Opinion, if the other party determines in good
faith that it could reasonably be expected to incur a material amount of tax as a result of such
action based upon uncertainty concerning any underlying assumptions or representations in such
opinion.

     “Second Distribution” has the meaning set forth in the Recitals.

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     “Separate Return” means (i) in the case of the TSYS Group, a Tax Return of any member
of that Group (including any consolidated, combined, affiliate or unitary Return) that does not
include, for all or any portion of the relevant taxable period, any member of the Synovus Group and
(ii) in the case of the Synovus Group, a Tax Return of any member of that Group (including any
consolidated, combined, affiliated or unitary Return) that does not include, for all or any portion
of the relevant taxable period, any member of the TSYS Group.

     “Straddle Period” means, with respect to a given entity, any taxable period beginning
on or before the Distribution Date and ending after the Distribution Date; provided, however, that
the term “Straddle Period” shall not include any federal income taxable period of the Synovus
Group.

     “Supplemental Tax Opinion” means an opinion of a Tax Advisor that permits reliance by
both Synovus and TSYS. The issuance of such opinion shall be conditioned upon the receipt by such
Tax Advisor of customary representation letters from each of TSYS and Synovus, in each case, in
form and substance reasonably satisfactory to such Tax Advisor. The Tax Advisor, in issuing its
opinion, shall be permitted to rely on the validity and correctness, as of the date given, of any
previously issued Tax Opinion, unless such reliance would be unreasonable under the circumstances.

     “Synovus” has the meaning set forth in the preamble to this Agreement.

     “Synovus Active Trade or Business” means the active conduct by Synovus of the
businesses conducted by the members of the Synovus Group as of the Distribution Date (determined in
accordance with Section 355(b) of the Code).

     “Synovus Capital Stock” means (i) all classes or series of capital stock of Synovus
and (ii) all options, warrants and other rights to acquire such capital stock.

     “Synovus Officer’s Certificate” means a letter executed by an officer of Synovus and
provided to King & Spalding LLP as a condition for the completion of the Tax Opinion.

     “Taxes” means all forms of taxation or duties imposed, or required to be collected or
withheld, including charges, together with any related interest, penalties or other additional
amounts. For the avoidance of doubt, the term “Taxes” does not include amounts to be paid to any
governmental authority pursuant to escheat law.

     “Taxing Authority” means any national, municipal, governmental, state, federal,
foreign, or other body, or any quasi-governmental or private body, having jurisdiction over the
assessment, determination, collection or imposition of any Tax.

     “Tax Advisor” means a U.S. tax counsel or other tax advisor of recognized national
standing reasonably acceptable to both parties.

     “Tax Benefit” means the amount of the reduction in the Tax liability of an entity (or
of the consolidated or combined group of which it is a member), whether temporary or permanent, for
any taxable period that arises, or may arise in the future, as a result of any adjustment to, or

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addition to or deletion from, a Tax Item in the computation of the Tax liability of the entity (or
the consolidated or combined group of which it is a member).

     “Tax Contest” means an audit, review, examination or any other administrative or
judicial proceeding with the purpose or effect of determining or redetermining Taxes.

     “Tax Detriment” means the amount of the increase in the Tax liability of an entity (or
of the consolidated or combined group of which it is a member), whether temporary or permanent, for
any taxable period that arises, or may arise in the future, as a result of any adjustment to, or
addition or deletion of, a Tax Item in the computation of the Tax liability of the entity (or the
consolidated or combined group of which it is a member).

     “Tax-Free Status” means the qualification of both of the Distributions as
distributions described in Section 355 of the Code in which the shares of TSYS Common Stock
distributed constitute “qualified property” for purposes of Section 355(c) of the Code. For the
avoidance of doubt, recognition of income or gain that relates to intercompany items shall not
cause the Distributions to fail to achieve Tax-Free Status.

     “Tax Item” means any item of income, gain, loss, deduction, credit, recapture of
credit or any other item (including the basis or adjusted basis of property) which increases or
decreases Income Taxes paid or payable in any taxable period.

     “Tax Opinion” means the opinion of King & Spalding LLP addressed to Synovus, CB&T and
TSYS and upon which each party may rely regarding the Tax-Free Status of the Distributions and any
other opinion issued to allow a party to take actions otherwise restricted by this Agreement.

     “Tax Return” means any return, report, certificate, form or similar statement or
document (including any related or supporting information or schedule attached thereto and any
information return, amended tax return, claim for refund or declaration of estimated Tax) required
or permitted to be supplied to, or filed with, a Taxing Authority in connection with the
determination, assessment or collection of any Tax or the administration of any laws, regulations
or administrative requirements relating to any Tax.

     “Transactions” means the Distributions, any other transactions contemplated by the
Distribution Agreement and any other transfer of assets (whether by contribution, sale or
otherwise) between any member of the Synovus Group and the TSYS Group in connection with the
Distributions.

     “Transaction Taxes” means all (i) Taxes of any member of the Synovus Group or the TSYS
Group resulting from, or arising in connection with, the failure of the Distributions to have
Tax-Free Status, (ii) Taxes of the type described in clause (i) of any third party for which any
member of the Synovus Group or TSYS Group becomes liable, and (iii) reasonable out of pocket legal,
accounting and other advisory and court fees in connection with liability for Taxes described in
clauses (i) or (ii).

     “Transition Services Agreement” has the meaning set forth in the Distribution
Agreement.

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     “TSYS” has the meaning set forth in the preamble to this Agreement.

     “TSYS Active Trade or Business” means the active conduct by TSYS of the businesses
conducted by the members of the TSYS Group as of the Distribution Date (determined in accordance
with Section 355(b) of the Code).

     “TSYS Assets” means the assets that are, or were, used or held for use primarily in
the conduct of the TSYS Business.

     “TSYS Business” has the meaning set forth in the Distribution Agreement.

     “TSYS Capital Stock” means (i) all classes or series of capital stock of TSYS and (ii)
all options, warrants and other rights to acquire such capital stock.

     “TSYS Common Stock” has the meaning set forth in the Recitals.

     “TSYS Group” means TSYS and its Affiliates.

     “TSYS Officer’s Certificate” means a letter executed by an officer of TSYS and
provided to King & Spalding LLP as a condition for the completion of the Tax Opinion.

     “TSYS Separate Tax Liability” means an amount, determined in a manner consistent with
Past Practices to the extent applicable, equal to the Tax liability that TSYS and each TSYS
Affiliate would have incurred if they had filed a consolidated return, combined return or a
separate return, as the case may be, separate from the members of the Synovus Group for all
relevant Tax Periods; provided, however, that (i) if a Tax Item created by TSYS or
a TSYS Affiliate (or otherwise allocated thereto under Section 2.5(d) of this Agreement) is used on
a Joint Return and a portion of the Tax Item so used did not otherwise reduce the amount of Tax
liability that TSYS and each TSYS Affiliate would have incurred on a separate return basis, then
the amount of the TSYS Separate Tax Liability shall be reduced by the amount of any net reduction
of the Synovus Group’s aggregate Tax liability resulting from the use by the Synovus Group of such
portion of such Tax Item and (ii) any Tax Item arising from or otherwise relating to the
intercompany sale by Synovus of the stock of ProCard, Inc. to TSYS on or about November 1, 2002,
shall be treated, solely for purposes of calculating the TSYS Separate Tax Liability under this
Agreement, as a Tax Item attributable to the TSYS Group and not the Synovus Group.

ARTICLE II

TAX SHARING

     Section 2.1 Responsibility and Indemnification for Taxes.

     (a) From and after the Distribution Date, without duplication, each of Synovus and TSYS shall
be responsible for, and shall pay its respective share of, the liability for Taxes of Synovus, TSYS
and their respective Affiliates, as provided in this Agreement. Synovus shall indemnify and hold
harmless TSYS and its Affiliates from any Taxes for which Synovus is responsible under this
Agreement. TSYS shall indemnify and hold harmless Synovus and its

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Affiliates from any Taxes for which TSYS is responsible pursuant to this Agreement.

     (b) Payments to Taxing Authorities and between the parties, as the case may be, shall be made
in accordance with the provisions of this Agreement.

     Section 2.2 TSYS’s Liability for Taxes. TSYS shall be liable for the following Taxes,
and shall be entitled to receive and retain all refunds of Taxes previously incurred by TSYS or the
TSYS Business with respect to such Taxes:

     (a) all Taxes incurred with respect to all Joint Returns to the extent such Taxes are related
to (i) a TSYS Separate Tax Liability or (ii) the TSYS Assets or the TSYS Business for any taxable
period;

     (b) any Transaction Taxes that are solely attributable to:

     (i) any inaccurate statement or representation of fact or intent (or omission
to state a material fact) in Section 4.1 that relates to the TSYS Group;

     (ii) any inaccurate statement or representation of fact or intent (or omission
to state a material fact) in the TSYS Officer’s Certificate;

     (iii) any action or omission by any member of the TSYS Group after the date of
this Agreement inconsistent with the covenants set forth in this Agreement; or

     (iv) any other action or omission by any member of the TSYS Group (including
without limitation the application of Section 355(e) or (f) of the Code to either of
the Distributions resulting from one or more acquisitions of the stock or assets of
TSYS);

     (c) fifty percent (50%) of any Transaction Taxes that are not solely attributable to any event
or circumstance described in Section 2.2(b) and are not solely attributable to any event or
circumstance described in Section 2.3(b);

     (d) except as otherwise agreed in writing by Synovus or CB&T, on the one hand, and TSYS, on
the other hand, fifty percent (50%) of any stamp, sales, use, gross receipts, value-added, real
estate transfer or other transfer Taxes imposed in connection with the Transactions;

     (e) all Taxes related to TSYS Separate Returns;

     (f) all Taxes of the Synovus Group that are attributable to the disallowance or recapture of
any Georgia income tax credit that was assigned to the Synovus Group by a member of the TSYS Group
in accordance with Section 48-7-42 of the Official Code of Georgia Annotated; and

     (g) all Taxes incurred with respect to the members of the TSYS Group for any Post-Distribution
Tax Period.

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     Section 2.3 Synovus’s Liability for Taxes. Synovus shall be liable for the following
Taxes, and shall be entitled to receive and retain all refunds of Taxes previously incurred by
Synovus with respect to such Taxes:

     (a) except as provided for in Section 2.2(a), (b), (c), (d) or (f), all Taxes incurred with
respect to all Joint Returns;

     (b) any Transaction Taxes that are solely attributable to:

     (i) any inaccurate statement or representation of fact or intent (or omission
to state a material fact) in Section 4.1 that relates to the Synovus Group;

     (ii) any inaccurate statement or representation of fact or intent (or omission
to state a material fact) in the Synovus Officer’s Certificate;

     (iii) any action or omission by any member of the Synovus Group after the date
of this Agreement inconsistent with the covenants set forth in this Agreement; or

     (iv) any other action or omission by any member of the Synovus Group (including
without limitation the application of Section 355(e) or (f) of the Code to either of
the Distributions resulting from one or more acquisitions of the stock or assets of
Synovus or CB&T).

     (c) fifty percent (50%) of any Transaction Taxes that are not solely attributable to any event
or circumstance described in Section 2.2(b) and are not solely attributable to any event or
circumstance described in Section 2.3(b);

     (d) except as otherwise agreed in writing by Synovus or CB&T, on the one hand, and TSYS, on
the other hand, fifty percent (50%) of any stamp, sales, use, gross receipts, value-added, real
estate transfer or other transfer Taxes imposed in connection with the Transactions; and

     (e) except as provided for in Section 2.2(f), all Taxes incurred with respect to the members
of the Synovus Group for any Post-Distribution Tax Period.

     Section 2.4 Payment of Allocable Taxes.

     (a) With respect to each payment of Tax that is due after the Distribution Date in connection
with the filing of any Joint Return, including estimated tax installments and payments made in
connection with extension requests, Synovus shall notify TSYS in writing of the amount of the tax
sharing payment due from TSYS, calculated under the principles of this Agreement, and TSYS shall
make its tax sharing payment to Synovus (to the extent not previously paid by TSYS) not later than
five (5) days after receipt of such notice from Synovus; provided, however, that
TSYS shall not be required to make a tax sharing payment to Synovus hereunder more than ten (10)
days before the applicable Tax payment is due to the applicable Taxing Authority. Tax sharing
payments made by the TSYS Group under this Section 2.4(a), as well as tax sharing

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payments made by TSYS Group prior to the Distribution Date, shall be trued up when each
applicable Joint Return is finalized and filed.

     (b) If any Tax Return for a Pre-Distribution Tax Period is examined by a Taxing Authority and
such examination results in additional TSYS Separate Tax Liability, TSYS (or a TSYS Affiliate, if
appropriate) shall pay (or cause the TSYS Affiliate to pay) to Synovus or, if applicable, the
appropriate Taxing Authority, an amount equal to the increase in TSYS Separate Tax Liability,
within thirty (30) days after a Final Determination.

     (c) If any Tax Return for a Pre-Distribution Tax Period is examined by a Taxing Authority and
such examination results in a lower TSYS Separate Tax Liability, Synovus shall pay to TSYS an
amount equal to the decrease in the TSYS Separate Tax Liability, within thirty (30) days after a
Final Determination.

     Section 2.5 Allocation of Certain Income Taxes and Income Tax Items.

     (a) If Synovus, TSYS or any of their respective Affiliates is permitted but not required under
applicable Tax laws to treat the Distribution Date as the last day of a taxable period, then the
parties shall treat such day as the last day of a taxable period under such applicable Tax law and
shall file any elections necessary or appropriate to such treatment, provided that this Section
2.5(a) shall not be construed to require Synovus to change its taxable year.

     (b) Transactions occurring, or actions taken, on the Distribution Date but after the Second
Distribution outside the ordinary course of business by, or with respect to, TSYS or any of its
Affiliates shall be deemed subject to the “next day rule” of Treasury Regulation Section
1.1502-76(b)(1)(ii)(B) (and under any comparable or similar provision under state, local or foreign
laws or regulations, provided that if there is no comparable or similar provision under state,
local or foreign laws or regulations, then the transaction will be deemed subject to the “next day
rule” and as such shall for purposes of this Agreement be treated (and consistently reported by the
parties) as occurring in a Post-Distribution Tax Period of TSYS or a TSYS Affiliate, as
appropriate).

     (c) Any Taxes for a Straddle Period shall, for purposes of this Agreement, be apportioned
between the portion of the period ending on and including the Distribution Date and the portion of
the period beginning after the Distribution Date, and each such portion of such period shall be
deemed to be a taxable period (whether or not it is in fact a taxable period). Any allocation of
income or deductions required to determine any Income Taxes for a Straddle Period shall be made by
means of a closing of the books and records of TSYS and its Affiliates as of the close of business
on the Distribution Date, provided that (i) Synovus may elect to allocate Tax Items (other than any
extraordinary Tax Items) ratably in the month in which the Second Distribution occurs (and if
Synovus so elects, TSYS shall so elect) as described in Treasury Regulations Section
1.1502-76(b)(2)(iii) and corresponding provisions of state, local, and foreign Tax laws; and (ii)
subject to clause (i), exemptions, allowances or deductions that are calculated on an annual basis,
and not on a closing of the books method (including, but not limited to, depreciation and
amortization deductions) shall be allocated between the period ending on and including the
Distribution Date and the period beginning after the Distribution Date based on the

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number of days for the portion of the Straddle Period ending on and including the Distribution
Date, on the one hand, and the number of days for the portion of the Straddle Period beginning
after the Distribution Date, on the other hand.

     (d) Tax attributes determined on a consolidated or combined basis for taxable periods ending
before or including the Distribution Date shall be allocated to Synovus and its Affiliates, and
TSYS and its Affiliates, in accordance with the Code and the Treasury Regulations (and any
applicable state, local, or foreign law or regulation). Synovus shall reasonably determine the
amounts and proper allocation of such attributes. Synovus and TSYS agree to compute their Tax
liabilities for taxable periods after the Distribution Date consistent with that determination and
allocation, and treat the Tax Items as reflected on any federal (or applicable state, local or
foreign) Income Tax Return filed by the parties as presumptively correct.

     Section 2.6 Tax Refunds. Except as provided in Section 2.7:

     (a) Synovus shall be entitled to all refunds (including refunds paid by means of a credit
against other or future Tax liabilities) and credits with respect to any Tax for which Synovus is
responsible under this Agreement, including by means of indemnification pursuant to the terms of
this Agreement. TSYS shall be entitled to all refunds (including refunds paid by means of a credit
against other or future Tax liabilities) and credits with respect to any Tax for which TSYS is
responsible under this Agreement, including by means of indemnification pursuant to the terms of
this Agreement.

     (b) Synovus and TSYS shall each forward to the other party, or reimburse such other party for,
any refunds received by the first party and due to such other party pursuant to this Section within
ten (10) days of the receipt of any such refund. Where a refund is received in the form of a
credit against other or future Tax liabilities, reimbursement with respect to such refund shall be
due in each case on the due date for payment of the Tax against which such refund has been
credited. All payments made pursuant to this Section 2.6 shall describe in reasonable detail the
basis for the calculation of the amount being paid.

     (c) If one party so requests, the other party (at the first party’s expense) may file for and
pursue any refund to which the first party is entitled under this Section, provided that the other
party shall not be required to file amended Tax Returns or otherwise pursue any refund on behalf of
the first party if such other party determines, in its sole and absolute discretion, not to do so.

     (d) If the other party pays any amount to the first party under this Section 2.6 and, as a
result of a subsequent Final Determination, the first party is not entitled to some or all of such
amount, the other party shall notify the first party of the amount to be repaid to the other party,
and the first party shall then repay such amount to the other party, together with any interest,
fines, additions to Tax, penalties or any other additional amounts imposed by a Taxing Authority
relating thereto.

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     Section 2.7 Carrybacks.

     (a) Notwithstanding anything in this Agreement, TSYS shall file (or cause to be filed) on a
timely basis any available election to waive the carryback of net operating losses, Tax credits or
other Tax Items by TSYS or any Affiliate from a Post-Distribution Tax Period to a Straddle Period
or Pre-Distribution Tax Period.

     (b) If, notwithstanding the provisions of Section 2.7(a), TSYS is required to carry back
losses or credits, TSYS shall be entitled to any refund of any Tax obtained by Synovus or a Synovus
Affiliate as a result of the carryback of losses or credits of TSYS or a TSYS Affiliate from any
Post-Distribution Tax Period to any Pre-Distribution Tax Period or Straddle Period. Such refund is
limited to the lesser of (i) the reduction in the TSYS Separate Tax Liability for all tax periods
resulting from the carryback or (ii) the net amount received by Synovus or a Synovus Affiliate (by
refund, offset against other Taxes, or otherwise), net of any Tax Detriment incurred by Synovus or
such Affiliate resulting from such refund. Upon request by TSYS, Synovus shall advise TSYS of an
estimate of any Tax Detriment Synovus projects will be associated with any carryback of losses or
credits of TSYS and its Affiliates provided in this Section 2.7(b).

     (c) If TSYS has a Tax Item that must be carried back to any Pre-Distribution Tax Period, TSYS
shall notify in writing Synovus that such Tax Item must be carried back. Such notification shall
include a description in reasonable detail of the grounds for the refund and the amount thereof,
and a certification by an appropriate officer of TSYS setting forth TSYS’s belief (together with
supporting analysis) that the Tax treatment of such Tax Item is more likely than not correct, and
is not a Tax Item arising from a Reportable Transaction.

     (d) If Synovus pays any amount to TSYS under Section 2.7(b) and, as a result of a subsequent
Final Determination, TSYS is not entitled to some or all of such amount, Synovus shall notify TSYS
of the amount to be repaid to Synovus, and TSYS shall then repay such amount to Synovus, together
with any interest, fines, additions to Tax, penalties or any other additional amounts imposed by a
Taxing Authority relating thereto.

     Section 2.8 Georgia Income Tax Credits.

     (a) If a member of the Synovus Group uses a Georgia income tax credit (including a carryover
of an unused credit) that originally was earned by a member of the TSYS Group in a taxable year of
such TSYS Group member ending on or before the Distribution Date, which tax credit subsequently was
assigned to a member of the Synovus Group pursuant to with Section 48-7-42 of the Official Code of
Georgia Annotated, Synovus shall make a payment to TSYS equal to the amount by which the net
aggregate federal and state Income Tax liability of the Synovus Group actually was reduced as a
result of the use of such assigned credit or carryover of such assigned credit.

     (b) The terms and conditions under which Georgia income tax credits earned by the TSYS Group
in taxable periods beginning after the Distribution Date shall be assigned to members of the
Synovus Group pursuant to Section 48-7-42 of the Official Code of Georgia Annotated are set forth
on Exhibit A hereto.

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ARTICLE III

PREPARATION AND FILING OF TAX RETURNS

     Section 3.1 Synovus Responsibility.

     (a) Subject to Section 3.1(b), Synovus shall make all determinations with respect to, have
ultimate control over the preparation of, and file all (i) Joint Returns and (ii) Synovus Separate
Returns, in each case as it determines to be mandatory or advisable and for all taxable periods.

     (b) Synovus and TSYS shall cooperate with each other and with any third parties engaged to
provide tax preparation services or advice, in accordance with Past Practices to the extent
applicable, in connection with the preparation and filing of Joint Returns for Pre-Distribution Tax
Periods that are due after the Distribution Date (giving effect to filing extensions).

     Section 3.2 TSYS Responsibility. TSYS shall make all determinations with respect to,
have ultimate control over the preparation of, and file all Tax Returns (other than those described
in Section 3.1) for the TSYS Group as it determines to be mandatory or advisable and for all tax
periods; provided, however, that TSYS may engage Synovus to prepare Tax Returns
pursuant to the terms and conditions of the Transition Services Agreement.

     Section 3.3 Tax Accounting Practices.

     (a) Except as provided in Section 3.3(b), any Tax Return for any Pre-Distribution Tax Period,
to the extent it relates to members of the TSYS Group, shall be prepared in accordance with
practices, accounting methods, elections, conventions and Tax positions used with respect to the
Tax Return in question for periods prior to the Distribution (“Past Practices”), and, in
the case of any item the treatment of which is not addressed by Past Practices, in accordance with
generally acceptable Tax accounting practices. Notwithstanding the foregoing, for any Tax Return
described in the preceding sentence, (i) a party will not be required to follow Past Practices if,
and to the extent that, it obtains either (A) the written consent of the other party (not to be
unreasonably withheld) or (B) a “should” level opinion from a Tax Advisor that the proposed method
of reporting is correct and (ii) Synovus shall have the right to determine which entities will be
included in any Joint Return that it is responsible for filing.

     (b) The parties shall report the Transaction for all Tax purposes in a manner consistent with
the Tax Opinion, unless, and only to the extent, an alternative position is required pursuant to a
Final Determination. Synovus shall determine the Tax treatment to be reported on any Tax Return of
any Tax issue relating to the Transaction that is not covered by the Tax Opinion.

     Section 3.4 Right to Review Tax Returns. Upon request, each party shall make
available to the other party the portion of any Pre-Distribution Tax Period Tax Returns that
relates to the TSYS Group.

12

 

ARTICLE IV

TAX-FREE STATUS OF THE DISTRIBUTION

     Section 4.1 Representations.

     (a) Each of Synovus and CB&T represents that (i) it knows of no fact that may cause the
Distributions to fail to have Tax-Free Status, (ii) it has no plan or intention to take any action
inconsistent with the Synovus Officer’s Certificate or the covenants set forth in this Agreement,
and (iii) to the knowledge and belief of Synovus and CB&T, no officer or director of Synovus or
CB&T (nor any person acting with the permission of any such officer or director) has participated
in any “agreement, understanding, arrangement or substantial negotiations” (as those terms are used
in Treasury Regulations section 1.355-7(h)) with respect to any transaction involving the issuance
or other acquisition of Synovus Capital Stock or of CB&T Capital Stock (excluding for this purpose
(w) issuances of Synovus Capital Stock meeting the requirements of Safe Harbor VIII of Treasury
Regulation Section 1.355-7(d) (relating to certain compensatory transfers of stock), (x) transfers
on an established market of Synovus Capital Stock described in Safe Harbor VII of Treasury
Regulation Section 1.355-7(d), (y) issuances of Synovus Capital Stock described in Safe Harbor IX
(relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section
1.355-7(d), or (z) issuances of Synovus Capital Stock in one or more bank acquisitions that may
have been the subject of “substantial negotiations” during the two-year period prior to the
Distributions where the aggregate amount of Synovus Capital Stock to be issued in such acquisitions
does not exceed five percent (by vote and by value) of the total outstanding Synovus Capital
Stock), or any merger or acquisition involving all or substantially all of the assets of Synovus or
CB&T.

     (b) TSYS represents that (i) it knows of no fact that may cause the Distributions to fail to
have Tax-Free Status, (ii) it has no plan or intention to take any action inconsistent with the
TSYS Officer’s Certificate or the covenants set forth in this Agreement, and (iii) to the knowledge
and belief of TSYS, no officer or director of TSYS (nor any person acting with the permission of
any such officer or director) has participated in any “agreement, understanding, arrangement or
substantial negotiations” (as those terms are used in Treasury Regulations section 1.355-7(h)) with
respect to any transaction involving the issuance or other acquisition of TSYS Capital Stock
(excluding for this purpose (x) issuances of TSYS Capital Stock meeting the requirements of Safe
Harbor VIII of Treasury Regulation Section 1.355-7(d) (relating to certain compensatory transfers
of stock), (y) transfers on an established market of TSYS Capital Stock described in Safe Harbor
VII of Treasury Regulation Section 1.355-7(d) or (z) issuances of TSYS Capital Stock described in
Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury
Regulation Section 1.355-7(d)), or any merger or acquisition involving all or substantially all of
the assets of TSYS.

     Section 4.2 Covenants.

     (a) Each of Synovus, CB&T and TSYS will not take or fail to take, or permit its Affiliates to
take or fail to take, any action where that action or omission would (i) violate, be inconsistent
with or cause to be untrue any covenant, representation or statement in, as applicable, the Synovus
Officer’s Certificate or the TSYS Officer’s Certificate, or (ii) prevent, or be reasonably likely
to prevent, the Tax-Free Status.

     (b) During the Restricted Period, except as provided in Section 4.2(c), TSYS shall not, and
shall not permit its Affiliates to, in a single transaction or in a series of transactions:

13

 

     (i) liquidate or partially liquidate, including by way of merger or
consolidation, any member of the TSYS Group other than TSYS;

     (ii) liquidate or partially liquidate TSYS;

     (iii) cause or permit TSYS to cease to engage in the TSYS Active Trade or
Business; or

     (iv) sell or transfer assets, other than inventory sold or transferred in the
ordinary course of business, constituting (A) 50% or more of the gross assets that
are held by any member of the TSYS Group and are used in the TSYS Active Trade or
Business and are relied upon to satisfy the requirements of Section 355(b) of the
Code, (B) 50% or more of the consolidated gross assets of the TSYS Group that are
used in the TSYS Active Trade or Business or (C) any lesser amount if that sale or
transfer could reasonably be expected to result in a significant and material change
to, or termination of, the TSYS Active Trade or Business after the Distribution
Date.

     (c) Notwithstanding Section 4.2(b):

     (i) clauses (i) through (iv) of Section 4.2(b) shall not apply upon the prior
written consent of Synovus, which consent may not be withheld if Synovus determines
in good faith that TSYS has provided it with Satisfactory Guidance that the proposed
actions will not result in Transaction Taxes; and

     (ii) clauses (i) and (iv) of Section 4.2(b) shall not apply after the date that
is six months after the Distribution Date.

     (d) During the Restricted Period, except as provided in Section 4.2(e), Synovus shall not, and
shall not permit its Affiliates to, in a single transaction or in a series of transactions:

     (i) liquidate or partially liquidate, including by way of merger or
consolidation, any member of the Synovus Group other than Synovus or CB&T;

     (ii) liquidate or partially liquidate Synovus or CB&T;

     (iii) cause or permit Synovus to cease to engage in the Synovus Active Trade or
Business;

     (iv) dispose of the CB&T Capital Stock or cause or permit CB&T to cease to
engage in the CB&T Active Trade or Business; or

     (v) sell or transfer assets, other than inventory sold or transferred in the
ordinary course of business, constituting (A) 50% or more of the gross assets that
are held by any member of the Synovus Group and are used in the Synovus Active Trade
or Business and are relied upon to satisfy the requirements of Section 355(b) of the
Code, (B) 50% or more of the gross assets that are held by CB&T and are used in the
CB&T Active Trade or Business and are relied upon to

14

 

satisfy the requirements of Section 355(b) of the Code, (C) 50% or more of the
consolidated gross assets of the Synovus Group that are used in the Synovus Active
Trade or Business or (D) any lesser amount if that sale or transfer could reasonably
be expected to result in a significant and material change to, or termination of,
the Synovus Active Trade or Business or the CB&T Active Trade or Business after the
Distribution Date.

     (e) Notwithstanding Section 4.2(d):

     (i) clauses (i) through (v) of Section 4.2(d) shall not apply upon the prior
written consent of TSYS, which consent may not be withheld if TSYS determines in
good faith that Synovus has provided it with Satisfactory Guidance that the proposed
actions will not result in Transaction Taxes; and

     (ii) clauses (i) and (v) of Section 4.2(d) shall not apply after the date that
is six months after the Distribution Date.

     Section 4.3 Procedures Regarding Opinions and Rulings.

     (a) If TSYS may take certain actions conditioned upon the receipt by Synovus of Satisfactory
Guidance, Synovus, at the request of TSYS, shall use commercially reasonable efforts to obtain
expeditiously, or to assist TSYS in obtaining, such Satisfactory Guidance. Synovus shall not be
required to take any action pursuant to this Section 4.3(a) if TSYS fails to certify, upon request,
that all information and representations relating to any member of the TSYS Group in the relevant
documents are true, correct and complete. TSYS shall reimburse Synovus for all reasonable
out-of-pocket costs and expenses incurred by Synovus in obtaining Satisfactory Guidance.

     (b) If Synovus or CB&T may take certain actions conditioned upon the receipt by TSYS of
Satisfactory Guidance, TSYS, at the request of Synovus or CB&T, shall use commercially reasonable
efforts to obtain expeditiously, or to assist Synovus or CB&T in obtaining, such Satisfactory
Guidance. TSYS shall not be required to take any action pursuant to this Section 4.3(b) if Synovus
or CB&T fails to certify, upon request, that all information and representations relating to any
member of the Synovus Group in the relevant documents are true, correct and complete. Synovus
shall reimburse TSYS for all reasonable out-of-pocket costs and expenses incurred by TSYS in
obtaining Satisfactory Guidance.

     (c) Synovus shall have the right to obtain a ruling from the IRS (or any other Taxing
Authority) or a Supplemental Tax Opinion at any time in its sole discretion. Synovus shall
reimburse TSYS for all reasonable out-of-pocket costs and expenses incurred by the TSYS Group in
obtaining such a ruling or Supplemental Tax Opinion.

     (d) TSYS shall have the right to obtain a ruling from the IRS (or any other Taxing Authority)
or a Supplemental Tax Opinion at any time in its sole discretion. TSYS shall reimburse Synovus for
all reasonable out-of-pocket costs and expenses incurred by the Synovus Group in obtaining such a
ruling or Supplemental Tax Opinion.

15

 

ARTICLE V

TAX CONTESTS; INDEMNIFICATION; COOPERATION

     Section 5.1 Notices.

     (a) Within 15 days after a party (the “Indemnitee”) becomes aware of the existence of
a Tax Contest that may give rise to an indemnification claim under this Agreement by it against the
other party (the “Indemnifying Party”), the Indemnitee shall promptly notify the
Indemnifying Party of the Tax Contest, and thereafter shall promptly forward or make available to
the Indemnifying Party copies of notices and communications with a Taxing Authority relating to
such Tax Contest.

     (b) The Indemnifying Party shall not be responsible for any increase in amounts to which the
Indemnitee is otherwise entitled to the extent that such increase results solely from the failure
of the Indemnitee to provide timely notice as required pursuant to Section 5.1(a).

     Section 5.2 Control of Tax Contests.

     (a) Except as otherwise provided in Section 5.2(b), Synovus shall control, and shall have sole
discretion in handling, settling or contesting, any Tax Contest relating to any Joint Returns, any
Synovus Separate Returns or the Tax treatment of the Transactions, provided that (i) Synovus shall
act in reasonable good faith in connection with its control of any such Tax Contests, (ii) TSYS
shall have the right to participate in and advise on (including, without limitation, the
opportunity to review and comment upon Synovus’s communications with the Taxing Authority, which
comments shall be incorporated upon the consent of Synovus, not to be unreasonably withheld) such
items for which TSYS could be liable under Article II as a result of such Tax Contest, and (iii)
Synovus shall not settle or compromise items for which TSYS could be liable under Article II as a
result of such Tax Contest without the prior written consent of TSYS, which shall not unreasonably
be withheld.

     (b) Synovus and TSYS shall jointly control Tax Contests relating to Tax liability arising from
the failure of the Transactions to qualify for tax-free treatment under Section 355 of the Code, if
TSYS potentially would be liable to Synovus under Article II as a result of such Tax Contest.
Neither party shall have the right to settle any such Tax Contest without the consent of the other
party.

     (c) TSYS shall have sole control over any Tax Contest relating to the TSYS Separate Returns;
provided, however, that if Synovus is responsible under this Agreement for any Taxes relating to
such Tax Contest, then TSYS shall control, and shall have sole discretion in handling, settling or
contesting such Tax Contest, provided that (i) TSYS shall act in reasonable good faith in
connection with its control of any such Tax Contest, (ii) Synovus shall have the right to
participate in and advise on (including, without limitation, the opportunity to review and comment
upon TSYS’s communications with the Taxing Authority, which comments shall be incorporated upon the
consent of TSYS, not to be unreasonably withheld) such items for which Synovus could be liable
under Article II as a result of such Tax Contest, and (iii) TSYS shall not settle or compromise
items for which Synovus could be liable under Article II as a result of such

16

 

Tax Contest without the prior written consent of Synovus, which shall not unreasonably be
withheld.

     (d) Any out-of-pocket expenses incurred in handling, settling or contesting any Tax Contest
shall be borne ratably by the parties based on their ultimate liability under this Agreement for
the Taxes to which the Tax Contest relates.

     Section 5.3 Indemnification Payments.

     (a) An Indemnitee shall be entitled to make a claim for payments pursuant to this Agreement
when the Indemnitee determines that it is entitled to such payment and the amount of such payment
(including, for the avoidance of doubt, the finalization of a Tax Return before filing). The
Indemnitee shall provide to the Indemnifying Party notice of such claim within 10 days of the date
on which it first becomes so entitled to claim such payment, including a description of such claim
and a detailed calculation of the amount of the indemnification payment that is claimed;
provided, however, that no delay on the part of the Indemnitee in notifying the
Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and
then solely to the extent) the Indemnifying Party is actually and materially prejudiced thereby.
Except as provided in Section 5.3(b), the Indemnifying Party shall make the claimed payment to the
Indemnitee within 10 days after receiving such notice, unless (and then only to the extent that)
the Indemnifying Party reasonably disputes its liability for, or the amount of, such payment.

     (b) If the Indemnitee will be obligated to make the payment described in Section 5.3(a) to a
Taxing Authority or other third party (including expenses reimbursable under this Agreement), the
Indemnifying Party shall not be obligated to pay the Indemnitee more than 5 days before the
Indemnitee incurs such expense or makes such payment. If the Indemnitee’s claim for payment arises
from a payment that the Indemnifying Party will receive from a third party, such as a refund, the
Indemnifying Party shall not be obligated to pay the Indemnitee until 5 days after the Indemnifying
Party receives such payment.

     (c) In the case of a claim under Article II where no payment will be made to or received from
a Taxing Authority, Section 5.3(b) shall be applied to the payments that would be made to or from a
Taxing Authority if the TSYS Group were treated as a standalone group for all taxable periods.

     Section 5.4 Interest on Late Payments. Interest shall accrue with respect to any
indemnification payment (including any disputed payment that is ultimately required to be made),
not made within the period for payment, at the Applicable Rate.

     Section 5.5 Treatment of Payments. The amount of all indemnification obligations
under this Agreement shall be decreased to take into account the Tax Benefits to the Indemnitee of
the deductibility of any indemnified item and shall be increased where necessary so that, after all
the required deductions have been made and Taxes imposed, the Indemnitee receives the net amount it
would have been entitled to receive under this Agreement in the absence of such deductions and
Taxes. Any payments made to one party by another party pursuant to this Agreement shall be treated
by the parties for all Tax purposes as a distribution by, or capital

17

 

contribution to, TSYS, as the case may be, made immediately prior to the Distributions, except
to the extent otherwise required by a Final Determination.

     Section 5.6 Expenses. Except as otherwise provided herein, each party and its
Affiliates shall bear their own expenses incurred in connection with the preparation of Tax
Returns, Tax Contests, and all other matters under this Agreement.

     Section 5.7 Cooperation. Each member of the Synovus Group and the TSYS Group shall
cooperate fully with all reasonable requests from the other party in connection with the
preparation and filing of Tax Returns, Tax Contests, and all other matters covered by this
Agreement.

     (a) Such cooperation shall include:

     (i) the retention until the expiration of the applicable statute of
limitations, and the provision upon request, of Tax Returns, books, records
(including information regarding ownership and Tax basis of property), documentation
and other information relating to Tax Returns, including accompanying schedules,
related workpapers, and documents relating to rulings or other determinations by
Taxing Authorities;

     (ii) the execution of any document that may be necessary or reasonably helpful
in connection with any Tax Contest, the filing of a Tax Return by a member of the
Synovus Group or the TSYS Group, obtaining a tax opinion or private letter ruling,
or other matters covered by this Agreement, including certification (provided in
such form as may be required by applicable law or reasonably requested and made to
the best of a party’s knowledge) of the accuracy and completeness of the information
it has supplied;

     (iii) the use of the parties’ reasonable best efforts to obtain any
documentation that may be necessary or reasonably helpful in connection with any of
the foregoing;

     (iv) the use of the parties’ reasonable best efforts to make the applicable
party’s current or former officers, employees, agents and facilities available on a
reasonable and mutually convenient basis in connection with the foregoing matters;
and

     (v) making determinations with respect to actions described in Section
4.2(c)(i) and (e)(i) as promptly as practicable.

     (b) If a party fails to comply with any of its obligations set forth in this Section 5.7 upon
reasonable request and notice by the other party, and such failure results in the imposition of
additional Taxes, the nonperforming party shall be liable in full for such additional Taxes.

     Section 5.8 Confidentiality. Any information or documents relating to Taxes,
including any such information provided under this Agreement, shall be kept confidential, except as
may otherwise be necessary in connection with the filing of Tax Returns or with any Tax

18

 

Contest. In addition, if Synovus, CB&T or TSYS determines that providing such information
could be commercially detrimental, violate any law or agreement or waive any privilege, the parties
shall use reasonable best efforts to permit compliance with the obligations under this Agreement in
a manner that avoids any such harm or consequence.

     Section 5.9 Retention of Tax Records. On or prior to the Distribution Date, Synovus
shall deliver or cause to be delivered to TSYS all materials, agreements, documents, books, records
and files, if any, in the possession of Synovus or a Synovus Affiliate relating to Taxes of the
TSYS Business. TSYS may request from Synovus and retain copies of, and Synovus may request from
TSYS and retain copies of, (i) with respect to any Joint Return, all pro forma federal and state
Tax Returns, supporting schedules and workpapers related to members of the TSYS Group, and (ii) any
Separate Returns with respect to any Pre-Distribution Tax Period for any TSYS Group members,
including supporting schedules and workpapers. Neither Synovus nor TSYS (nor any of their
respective Affiliates) shall dispose of any documentation with respect to any Pre-Distribution Tax
Period, including books, records, Tax Returns and all supporting schedules and information relating
thereto, of any member of the other Group, or in the case of the TSYS Group any member included in
a Joint Return, for a minimum of ten (10) years after the expiration of the applicable
Pre-Distribution Tax Period (or, if later, until the expiration of the applicable statute of
limitations), and each party shall promptly notify the other party in the event that any such
documentation is inadvertently destroyed, damaged or otherwise disposed of. Prior to disposing of
any such documentation, each party shall provide written notice to the other party describing the
documentation proposed to be disposed of at least thirty (30) days prior to taking such action.
The other party may arrange to take delivery of the documentation described in the notice at its
own expense during the succeeding thirty (30) day period.

ARTICLE VI

DISPUTE RESOLUTION

Any Dispute arising under this Agreement shall be resolved pursuant to the negotiation and
mediation procedures specified in Section 5.5(a) and (b) of the Distribution Agreement. Any such
Dispute that has not been timely resolved in accordance with such procedures shall be finally
resolved under the procedures set forth in this Article VI, in lieu of the arbitration procedures
specified in Section 5.5(c) of the Distribution Agreement. Within ten (10) days following the
failure of mediation under Section 5.5(c) of the Distribution Agreement, Synovus and TSYS shall
jointly retain a nationally recognized law firm or “big four” accounting firm, which firm is
independent of both parties (the “Independent Firm”), to resolve the Dispute. If the
parties cannot jointly agree on an Independent Firm to resolve the Dispute within the ten (10) day
period, then within a period of an additional ten (10) days, each party shall select a nationally
recognized law firm or “big four” accounting firm, which firm is independent of both parties, and
those firms shall jointly select an Independent Firm which shall make the determination under this
Article VI. The Independent Firm shall act as an arbitrator to resolve all points of disagreement,
and its decision shall be final and binding upon all parties involved. The Independent Firm shall
determine the appropriate outcome based on this Agreement with respect to each disputed item. The
Independent Firm shall make such determinations within ninety (90) days from the date on which it
is selected, unless the parties mutually agree to an

19

 

extension of such period or the Independent Firm, in its discretion, determines that an extension
of such period is warranted by exceptional circumstances. Any determination by the Independent
Firm shall be in writing. Following the decision of the Independent Firm, Synovus and TSYS shall
each take or cause to be taken any action necessary to implement the decision of the Independent
Firm. The fees and expenses relating to the Independent Firm shall be borne by the party that such
Independent Firm determines has lost the dispute. In all other events, the fees and expenses
relating to the Independent Firm shall be shared based on the difference between the position taken
by Synovus, on the one hand, and the position taken by TSYS, on the other hand, initially presented
to the Independent Firm (based on the aggregate of all differences taken as a whole) and the final
resolution as determined by the Independent Firm in proportion to the total difference between the
initial position taken by Synovus and the initial position taken by TSYS. Any controversy
concerning whether a Dispute is an arbitrable Dispute, whether arbitration has been waived, whether
an assignee of this Agreement is bound to arbitrate, or as to the interpretation of enforceability
of this Article VI shall be determined by the Independent Firm. In resolving any Dispute, the
Parties intend that the Independent Firm apply the terms and conditions of this Agreement and the
substantive laws of the State of Georgia, without regard to the choice of law principles thereof
that could mandate the application of the laws of another jurisdiction. The Parties agree to
comply with any award made by the Independent Firm pursuant to this Article VI and agree to
enforcement of or entry of judgment upon such award, by any court of competent jurisdiction. The
Independent Firm shall be entitled, if appropriate, to award any remedy in such proceedings
available under this Agreement and Georgia law, including monetary damages, specific performance
and all other forms of legal and equitable relief; provided, however, the Independent Firm shall
not be entitled to award punitive, exemplary, multiple or any other forms of non-compensatory
damages. Nothing contained herein is intended to or shall be construed to prevent any Party from
applying to any court of competent jurisdiction for interim measures or other provisional relief in
connection with the subject matter of any Dispute. Without prejudice to such provisional remedies
as may be available under the jurisdiction of a court, the Independent Firm shall have full
authority to grant provisional remedies and to direct the parties to request that any court modify
or vacate any temporary or preliminary relief issued by such court, and to award damages for the
failure of any party to respect the Independent Firm’s orders to that effect.

20

 

ARTICLE VII

MISCELLANEOUS PROVISIONS

     Section 7.1 Entire Agreement. This Agreement constitutes the entire agreement between
the parties with respect to the subject matter hereof and shall supersede all prior written and
oral and all contemporaneous oral agreements and understandings with respect to the subject matter
hereof. All prior tax sharing agreements between the parties and/or their respective Affiliates
are hereby terminated and superseded by this Agreement.

     Section 7.2 Governing Law. This Agreement shall be governed and construed and
enforced in accordance with the laws of the
State of Georgia as to all matters regardless of the laws that might otherwise govern under
the principles of conflicts of laws applicable thereto.

     Section 7.3 Consent to Jurisdiction. Without limiting the provisions of Article VI
hereof, each of the parties irrevocably submits to the exclusive jurisdiction of the courts of the
State of Georgia or the federal courts located in the State of Georgia for the purposes of any
suit, action or other proceeding arising out of this Agreement or any transaction contemplated
hereby. Each of the parties agrees to commence any action, suit or proceeding relating hereto
either in the federal district courts located in the State of Georgia or, if such suit, action or
other proceeding may not be brought in such court for jurisdictional reasons, in the state courts
of the State of Georgia. Each of the parties irrevocably and unconditionally waives any objection
to the laying of venue of any action, suit or proceeding arising out of this Agreement or the
transactions contemplated hereby in (i) the state courts of the State of Georgia or (ii) the
federal district courts located in the State of Georgia, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such action,
suit or proceeding brought in any such court has been brought in an inconvenient forum.

     Section 7.4 Termination. This Agreement may be terminated and the Distributions
abandoned at any time prior to the Distributions by and in the sole discretion of Synovus without
the approval of CB&T, TSYS or the stockholders of Synovus. In the event of termination pursuant to
Section 6.4 of the Distribution Agreement, no party shall have any liability of any kind to any
other party hereunder. After the Distributions, this Agreement may not be terminated except by an
agreement in writing signed by the parties.

     Section 7.5 Notices. Any notice, demand, offer, request, payment or other
communication required or permitted to be given by any party pursuant to the terms of this
Agreement shall be in writing and shall be deemed effectively given the earlier of (i) when
received, (ii) when delivered personally, (iii) one (1) Business Day after being delivered by
facsimile (with receipt of appropriate confirmation), (iv) one (1) Business Day after being
deposited with an overnight courier service or (v) four (4) days after being deposited in the U.S.
mail, First Class with postage prepaid, and addressed to the attention of the party’s General
Counsel at the address of its principal executive office or such other address as a party may
request by notifying the other in writing.

     Section 7.6 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original but all of which shall constitute one and the same
agreement, and shall become effective when one or more such counterparts have been signed by each
of the parties and delivered to the other parties.

21

 

     Section 7.7 Binding Effect; Assignment. Section 6.7 of the Distribution Agreement
shall apply to this Agreement, as if the references therein to “this Agreement” were references to
this Agreement.

     Section 7.8 Severability. In the event any term or other provision of this Agreement
is determined by a nonappealable decision by a court, administrative agency or arbitrator to be
invalid, illegal or incapable of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect.
Upon such determination that any term or other provision is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable manner to the end that
transactions contemplated hereby are fulfilled to the fullest extent possible.

     Section 7.9 Failure or Indulgence not Waiver. No failure or delay on the part of any
party in the exercise of any right hereunder shall impair such right or be construed to be a waiver
of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall
any single or partial exercise of any such right preclude other or further exercise thereof or of
any other right.

     Section 7.10 Amendment. No change or amendment will be made to this Agreement except
by an instrument in writing signed on behalf of each of the parties hereto.

     Section 7.11 Headings. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

     Section 7.12 Survival of Agreements. Except as otherwise contemplated by this
Agreement, all covenants and agreements of the parties contained in this Agreement shall survive
the Distribution Date.

     Section 7.13 Effectiveness. This Agreement shall become effective upon the
Distribution Date.

22

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date
first set forth above.

	 	 	 	 	 
	 	SYNOVUS FINANCIAL CORP.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COLUMBUS BANK AND TRUST COMPANY

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TOTAL SYSTEM SERVICES, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Tax Sharing Agreement]

23EX-10.4 INDEMNIFICATION & INSURANCE MATTERS AGRMT.

 

Exhibit 10.4

EXHIBIT F

FORM OF INDEMNIFICATION AND INSURANCE MATTERS AGREEMENT

          This Indemnification and Insurance Matters Agreement (this “Agreement”) is entered into on
_________, 2007 by and between Synovus Financial Corp., a Georgia corporation (“Synovus”),
and Total System Services, Inc., a Georgia corporation (“TSYS”). Synovus and TSYS are
sometimes individually referred to herein as a “Party” and collectively as the
“Parties.” Capitalized terms used herein and not otherwise defined in Article IV below
shall have the meanings ascribed to such terms in the Distribution Agreement (as defined below).

RECITALS

          WHEREAS, Synovus has agreed, subject to the terms and conditions set forth in the Agreement
and Plan of Distribution, dated October 25, 2007, between the Parties (“Distribution Agreement”) to
distribute to the holders of the issued and outstanding shares of common stock, $1.00 par value, of
Synovus as of the Second Distribution Record Date (as defined in the Distribution Agreement) all of
the shares of TSYS Common Stock (as defined in the Distribution Agreement) owned by Synovus, in
accordance with the Distribution Agreement;

          WHEREAS, in furtherance of the Distribution Agreement the Parties desire to set forth certain
agreements regarding indemnification and insurance.

          NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth
below, the Parties hereto agree as follows:

ARTICLE I

MUTUAL RELEASES AND INDEMNIFICATION

     Section 1.1. Release of Pre-Distribution Claims.

          (a) TSYS Release. Except as provided in Section 1.1(d), as of the Effective Time,
TSYS (on its behalf and on behalf of the members of its Group) does hereby remise, release and
forever discharge the Synovus Indemnitees from any and all Liabilities whatsoever, whether at law
or in equity (including any right of contribution), whether arising under any contract or
agreement, by operation of law or otherwise, existing or arising from any acts or events occurring
or failing to occur or alleged to have occurred or to have failed to occur or any conditions
existing or alleged to have existed on or before the Effective Time, including in connection with
the transactions contemplated by the Distribution Agreement or any Ancillary Agreement and all
other activities to implement any of the Distributions.

          (b) Synovus Release. Except as provided in Section 1.1(d), as of the Effective Time,
Synovus (on its behalf and on behalf of the members of its Group) does hereby remise, release and
forever discharge the TSYS Indemnitees from any and all Liabilities whatsoever, whether at

 

 

law or in equity (including any right of contribution), whether arising under any contract or
agreement, by operation of law or otherwise, existing or arising from any acts or events occurring
or failing to occur or alleged to have occurred or to have failed to occur or any conditions
existing or alleged to have existed on or before the Effective Time, including in connection with
the transactions contemplated by the Distribution Agreement or any Ancillary Agreement and all
other activities to implement any of the Distributions.

          (c) Notwithstanding anything to the contrary in the foregoing, nothing in this Agreement shall
remise, release or discharge any rights or claims that any member of one Group may have against any
shareholder, director, officer, agent or employee of any member of the other Group (in their
respective capacities as such) as a result of any fraudulent conduct or intentional violation of
law by such shareholder, director, officer, agent or employee. 

          (d) No Impairment. Nothing contained in Section 1.1(a) or (b) shall impair any right
of any Person to exercise any right (including any right to indemnification) or power under, or
enforce, the Distribution Agreement, any Ancillary Agreements (including this Agreement), or any of
the agreements set forth on Schedule 1, which agreements on Schedule 1 are expressly excluded from
the releases in Section 1.1(a) and (b). In addition, nothing contained in Section 1.1(a) or
Section 1.1(b) shall release any Person from:

     (i) any Liability for the sale, lease, construction or receipt of goods, property or
services purchased, obtained or used in the ordinary course of business by a member of one
Group from a member of the other Group prior to the Effective Time;

     (ii) any Liability for unpaid amounts for products or services or refunds owing on
products or services due on a value-received basis for work done by a member of one Group at
the request or on behalf of a member of another Group; and

     (iii) any Liability provided in or resulting from any other contract or understanding
that is entered into after the Effective Time between any Party (and/or a member of such
Party’s Group), on the one hand, and any other Party (and/or a member of such Party’s
Group), on the other hand.

          (e) No Actions as to Released Claims. TSYS (on its behalf and on behalf of the
members of its Group) agrees not to make any claim or demand, or commence any Action asserting any
claim or demand, including any claim of contribution or any indemnification, against Synovus, or
any other Person released pursuant to Section 1.1(a), with respect to any Liabilities released
pursuant to Section 1.1(a). Synovus (on its behalf and on behalf of the members of its Group)
agrees not to make any claim or demand, or commence any Action asserting any claim or demand,
including any claim of contribution or any indemnification, against TSYS or any other Person
released pursuant to Section 1.1(b), with respect to any Liabilities released pursuant to Section
1.1(b). If either Party (including any director, officer, or employee of a Party) initiates any
Action with respect to claims released under Section 1.1, the Party must indemnify the other Party
(or the relevant Indemnitee) in accordance with Section 1.2 or 1.3, as applicable.

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          (f) Further Instruments. At any time, at the request of any other Party, each Party
shall execute and deliver releases reflecting the provisions hereof.

     Section 1.2. Indemnification by TSYS. Except as otherwise provided in this Agreement,
TSYS shall indemnify, defend (or, where applicable, pay the defense costs for) and hold harmless
the Synovus Indemnitees from and against any and all Liabilities suffered or incurred by a Synovus
Indemnitee that relate to, arise out of or result from any of the following items (without
duplication):

     (i) the TSYS Business; and

     (ii) any breach by TSYS or a member of the TSYS Group of the Distribution Agreement or
any of the Ancillary Agreements (unless such Ancillary Agreement expressly provides for
separate indemnification therein, in which case any such indemnification claims shall be
made thereunder).

     Section 1.3. Indemnification by Synovus. Except as otherwise provided in this
Agreement, Synovus shall indemnify, defend (or, where applicable, pay the defense costs for) and
hold harmless the TSYS Indemnitees from and against any and all Liabilities suffered or incurred by
a TSYS Indemnitee that relate to, arise out of or result from any of the following items (without
duplication):

     (i) the Synovus Business; and

     (ii) any breach by Synovus or a member of the Synovus Group of the Distribution
Agreement or any of the Ancillary Agreements (unless such Ancillary Agreement expressly
provides for separate indemnification therein, in which case any such indemnification claims
shall be made thereunder).

     Section 1.4. Procedures for Defense, Settlement and Indemnification

          (a) Notice of Claims. An Indemnitee shall give the Indemnifying Party notice of any
matter that an Indemnitee has determined has given or could give rise to a right of indemnification
under this Agreement (other than a Third Party Claim which shall be governed by Section 1.4(b)),
within twenty-one (21) calendar days of such determination. Any such notice shall describe in
reasonable detail the Liability alleged to give rise, or giving rise, to the indemnification,
including stating the amount of the Liability claimed as then-known or reasonably estimated, and
method of computation thereof, and containing a reference to the provisions of this Agreement in
respect of which such right of indemnification is claimed by such Indemnitee or arises.
Notwithstanding the foregoing, the delay or failure of any Indemnitee or other Person to give
notice as provided in this Section 1.4(a) shall not relieve the related Indemnifying Party of its
obligations under this Article I, except to the extent that such Indemnifying Party is actually and
substantially prejudiced by such delay or failure to give notice.

          (b) Third Party Claims. If a Synovus Indemnitee or a TSYS Indemnitee (as applicable)
(an “Indemnitee”) shall receive notice or otherwise learn of the assertion by a Person (including
any Governmental Authority) of any claim or of the commencement by any such Person of any Action
against it (collectively, a “Third Party Claim”) with respect to which a party hereunder (an

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“Indemnifying Party”) may be obligated to provide indemnification to such Indemnitee pursuant
to Section 1.2 or 1.3, such Indemnitee shall give such Indemnifying Party written notice thereof
within twenty-one (21) calendar days after becoming aware of such Third Party Claim. Any such
notice shall describe the Third Party Claim in reasonable detail, including the amount of the
Liability claimed as then-known or reasonably estimated, and method of computation thereof, and
containing a reference to the provisions of this Agreement in respect of which such right of
indemnification is claimed by such Indemnitee or arises. Notwithstanding the foregoing, the delay
or failure of any Indemnitee or other Person to give notice as provided in this Section 1.4(b)
shall not relieve the related Indemnifying Party of its obligations under this Article I, except to
the extent that such Indemnifying Party is actually and substantially prejudiced by such delay or
failure to give notice.

          (c) Defense By Indemnifying Party. Except in the case of a Third Party Claim which
seeks injunctive relief, declaratory judgment or other nonmonetary relief against an Indemnitee, an
Indemnifying Party may elect, at its cost, risk and expense, to assume the defense of such Third
Party Claim, with counsel reasonably satisfactory to the Indemnitee seeking indemnification. After
timely notice in writing from the Indemnifying Party (which notice shall specify any reservations
or exceptions) to the Indemnitee of such election to assume the defense of a Third Party Claim,
such Indemnitee shall have the right to employ separate counsel and to participate in (but not
control) the defense, compromise, or settlement thereof, but the Indemnifying Party shall not be
liable to such Indemnitee for any legal or other expenses incurred by Indemnitee in connection with
the defense thereof. The Indemnitee agrees to cooperate in all reasonable respects with the
Indemnifying Party and its counsel in the defense against any Third Party Claim. The Indemnifying
Party, the Indemnitee and their respective counsels shall cooperate in good faith with any
insurance carriers which are providing, or may provide, them with coverage with respect to such
Third Party Claim. The Indemnifying Party shall be entitled to compromise or settle any Third Party
Claim as to which it is providing indemnification and which includes a full release of the
Indemnitee, which compromise or settlement shall be made only with the written consent of the
Indemnitee, such consent not to be unreasonably withheld or delayed.

          (d) Defense by Indemnitee. If an Indemnifying Party does not elect to assume the
defense of a Third Party Claim within twenty-one (21) calendar days after receipt of notice of such
claim or if the Indemnifying Party does not have the right to assume the defense of such claim
because the claim seeks injunctive relief, declaratory judgment or other nonmonetary relief or
otherwise against the Indemnitee and the Indemnitee has provided written notice to that effect to
the Indemnifying Party, the Indemnitee will, upon delivering notice to such effect to the
Indemnifying Party, have the right to undertake the defense, compromise or settlement of such Third
Party Claim on behalf of and for the account of the Indemnifying Party subject to the limitations
as set forth in this Section 1.4; provided, however, that no Third Party Claim
shall be compromised or settled without the written consent of the Indemnifying Party, which
consent shall not be unreasonably withheld or delayed. If the Indemnitee assumes the defense of any
Third Party Claim, it shall keep the Indemnifying Party reasonably informed of the progress of any
such defense, compromise or settlement. The Indemnifying Party shall reimburse all such costs and
expenses of the Indemnitee in the event it is ultimately determined that the Indemnifying Party is
obligated to indemnify the Indemnitee with respect to such Third Party Claim.  

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     Section 1.5. Additional Matters.

          (a) Cooperation in Defense and Settlement. With respect to any Third Party Claim that
implicates both TSYS and Synovus (or any members of their respective Groups) in a material fashion
due to the allocation of any Liabilities, responsibilities for management of defense and related
indemnities set forth in the Distribution Agreement, this Agreement or any of the Ancillary
Agreements, the Parties agree to cooperate fully and maintain a joint defense (in a manner that
will preserve the attorney-client and other privileges with respect thereto) so as to minimize such
Liabilities and defense costs associated therewith. The Party that is not responsible for managing
the defense of such Third Party Claims shall, upon reasonable request, be consulted with respect to
significant matters relating thereto and may retain counsel to monitor or assist in the defense of
such claims at its own cost.

          (b) Substitution. In the event of an Action in which the Indemnifying Party is not a
named defendant, if either the Indemnitee or the Indemnifying Party shall so request, the Parties
shall endeavor to substitute the Indemnifying Party for the named defendant. If such substitution
or addition cannot be achieved for any reason or is not requested, the rights and obligations of
the Parties regarding indemnification and the management of the defense of claims as set forth in
this Article I shall not be altered.

          (c) Subrogation. In the event of payment by or on behalf of any Indemnifying Party to
or on behalf of any Indemnitee in connection with any Third Party Claim, such Indemnifying Party
shall be subrogated to and shall stand in the place of such Indemnitee, in whole or in part based
upon whether the Indemnifying Party has paid all or only part of the Indemnitee’s Liability, as to
any events or circumstances in respect of which such Indemnitee may have any right, defense or
claim relating to such Third Party Claim against any claimant or plaintiff asserting such Third
Party Claim or against any other person. Such Indemnitee shall cooperate with such Indemnifying
Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right, defense or claim.

          (d) Restriction on Access. Nothing in Section 1.5(a) requires TSYS, Synovus or any of
their respective Group members (each acting reasonably) to allow another Party to have access to
anything that (i) is the subject of any attorney-client, joint defense or other privilege, except
where the privilege is shared by TSYS and Synovus, as set forth in the Distribution Agreement
and in which case will be governed by the terms of the Distribution Agreement, or (ii) has been
prepared for the purpose of, or in contemplation of, TSYS, Synovus or any of their respective Group
members, as the case may be, making a claim against another Party under this Agreement, the
Distribution Agreement or any other Ancillary Agreement.

          (e) Not Applicable to Taxes. This Agreement shall not apply to Taxes (which are
covered by the Tax Sharing Agreement).

          (f) Indemnification Payment. Any payment required to be made under this Agreement
shall be made promptly (and without any right of set-off), and in any event, not later than ten
(10) calendar days after the date on which the amount due is determined or agreed pursuant to this
Agreement.

5

 

          (g) Transition Services Agreement. No Synovus Indemnitee or TSYS Indemnitee, as
applicable, may make any claim with respect to any Liability for indemnification or contribution
under this Agreement to the extent that Section 5.2 of the Transition Services Agreement operates
to exclude indemnification or contribution for such Liability.

     Section 1.6. Indemnification Obligations Net of Insurance Proceeds and Other Amounts on a
Net-Tax Basis.

          (a) Any Liability subject to indemnification or contribution pursuant to this Agreement will
(i) be net of Insurance Proceeds that actually reduce the amount of the Liability, (ii) be net of
any proceeds received by the Indemnitee from any third party for indemnification for such Liability
that actually reduce the amount of the Liability (“Third Party Proceeds”) and (iii) will be
determined on a Net-Tax Basis. Accordingly, the amount which any Indemnifying Party is required to
pay pursuant to this Agreement to any Indemnitee pursuant to this Agreement will be reduced by any
Insurance Proceeds or Third Party Proceeds theretofore actually recovered by or on behalf of the
Indemnitee in respect of the related Liability. If an Indemnitee receives a payment required by
this Agreement from an Indemnifying Party in respect of any Liability (an “Indemnity
Payment”) and subsequently receives Insurance Proceeds or Third Party Proceeds, then the
Indemnitee will pay to the Indemnifying Party an amount equal to the excess of the Indemnity
Payment received over the amount of the Indemnity Payment that would have been due if the Insurance
Proceeds or Third Party Proceeds had been received, realized or recovered before the Indemnity
Payment was made.

          (b) An insurer who would otherwise be obligated to pay any claim shall not be relieved of the
responsibility with respect thereto or, solely by virtue of the indemnification and contributions
provisions hereof, have any subrogation rights with respect thereto. The Indemnitee shall use
commercially reasonable efforts to seek to collect or recover any third-party Insurance Proceeds
and any Third Party Proceeds to which the Indemnified Party is entitled in connection with any
Liability for which the Indemnified Party seeks contribution or indemnification pursuant to this
Agreement; provided, that the Indemnitee’s inability to collect or recover any such
Insurance Proceeds or Third Party Proceeds shall not limit the Indemnifying Party’s obligations
hereunder.

          (c) The term “Net-Tax Basis” as used in this Agreement means that, in determining the amount
of the payment necessary to indemnify any party against, or reimburse any party for, Liabilities,
the amount of such Liabilities will be determined net of any actual reduction in Tax payable by the
Indemnitee as the result of sustaining or paying such Liabilities after taking into account any Tax
incurred on the receipt of Insurance Proceeds and Third Party Proceeds, and the amount of such
Indemnity Payment will be increased (i.e., “grossed up”) by the amount necessary to satisfy any
income or franchise Tax Liabilities that will be incurred by the Indemnitee as a result of its
receipt of, or right to receive, such Indemnity Payment (as so increased), so that the Indemnitee
is put in the same net after-Tax economic position as if it had not incurred such Liabilities, in
each case without taking into account any impact on the Tax basis that an Indemnitee has in its
assets.

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     Section 1.7. Survival of Indemnities.

          (a) Subject to Section 3.6, the rights and obligations of the Synovus Group and the TSYS Group
under this Article I shall:

     (i) survive the sale or other transfer by any Party of any assets or businesses or the
assignment by it of any Liabilities or the sale by any member of the Synovus Group and the
TSYS Group of the capital stock or other equity interests of any Subsidiary to any Person;
and

     (ii) remain operative and in full force and effect, regardless of (x) any investigation
made by or on behalf of any Indemnitee; and (y) the knowledge by the Indemnitee of
Liabilities for which it might be entitled to indemnification or contribution hereunder.

ARTICLE II

INSURANCE MATTERS

     Section 2.1. Insurance Policies and Rights After Distribution. As of the Effective
Time, the TSYS Group shall retain (a) any and all rights as an insured party, where applicable,
under each of the Shared Policies, subject to the terms, conditions, and limitations of such Shared
Policies, with respect to all claims, suits, actions, proceedings, injuries, losses, Liabilities,
damages and expenses incurred or claimed to have been incurred prior to the Effective Time by any
person or party in connection with the conduct of the TSYS Business or, to the extent any claim is
made against TSYS or any member of its Group regarding the conduct of the business of the Synovus
Business, and which claims, suits, actions, proceedings, injuries, losses, Liabilities, damages and
expenses arise out of an insured occurrence under one or more of such Shared Policies, and (b) any
and all rights as an insured party, where applicable, under each of the TSYS Policies.

     Section 2.2. Reimbursement for Unearned Premiums. Synovus agrees to use reasonable
efforts to procure on behalf of TSYS a return of any unearned premiums due under the Shared
Policies as a result of the TSYS Group no longer being an insured as of the Effective Time. Synovus
agrees that TSYS is entitled to any such sums actually remitted, not to exceed, however, the actual
amount TSYS paid as its premium allocation for any such Shared Policy.

     Section 2.3. Post-Distribution Date Claims. If, subsequent to the Effective Time, any
Person shall assert a claim against any member of the TSYS Group (including where a member of the
TSYS Group is a joint defendant with any other person or entity) with respect to any claim, suit,
action, proceeding, injury, loss, liability, damage or expense incurred or claimed to have been
incurred prior to the Effective Time in connection with the conduct of the TSYS Business, or to the
extent any claim is made against any member of the TSYS Group (including where a member of the TSYS
Group is a joint defendant with any other person or entity) regarding the conduct of the Synovus
Business, and which claim, suit, action, proceeding, injury, loss, liability, damage or expense
arises out of an insured occurrence under one or more of the Shared Policies, Synovus shall assist
TSYS in asserting such claim and assist TSYS in the collection of any

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Insurance Proceeds under such Shared Policy on behalf of the member of the TSYS Group and
remit promptly to TSYS any Insurance Proceeds so collected, and Synovus shall further on behalf of
TSYS assert any and all rights of an insured party under such Shared Policy with respect to such
asserted claim, specifically including rights of indemnity and the right to be defended by or at
the expense of the insurer and the right to any applicable Insurance Proceeds thereunder. The
Parties hereby acknowledge and agree that nothing herein shall limit TSYS’s right to assert such
claims directly and collect Insurance Proceeds under any Shared Policy and that, should TSYS become
liable for any Synovus Liabilities covered by any Shared Policy or any Synovus Policy, TSYS shall
have the right to assert such claims directly and collect Insurance Proceeds under any such Shared
Policy or Synovus Policy. Except as otherwise contemplated by the Distribution Agreement, this
Agreement or any Ancillary Agreement, after the Effective Time, neither Synovus nor TSYS shall (nor
any member of their respective Group), without the consent of the other, provide any Shared Policy
insurance carrier with a release, or amend, modify or waive any rights under any such policy or
agreement, if such release, amendment, modification or waiver would adversely affect any rights or
potential rights of the Synovus Group or the TSYS Group thereunder. However, nothing in this
Section 2.3 shall (A) preclude any member of the Synovus Group or the TSYS Group that are insured
under the Shared Policies from presenting any claim or from exhausting any policy limit or (B)
require Synovus or TSYS (or any member of their respective Group) to renew, extend or continue any
policy in force.

     Section 2.4. TSYS Insurance Coverage After the Effective Time. Subject to Section
2.5, from and after the Effective Time, TSYS, and TSYS alone, shall be responsible for obtaining
and maintaining insurance programs for its risk of loss and such insurance arrangements shall be
separate and apart from the Synovus insurance programs. Synovus, upon the request of TSYS, from
and after the Effective Time shall provide TSYS with any information that is in the possession of
Synovus and is reasonably available and necessary for TSYS to obtain its insurance coverages.

     Section 2.5. Run-Off Directors and Officers Insurance Coverage for TSYS and Synovus.
The Parties shall procure for the benefit of Synovus and TSYS (and their respective directors,
officers, any other insured persons, and Groups (including any directors and officers, and any
other insured persons thereof)), run-off directors and officers liability insurance coverage, but
solely with respect to coverage for “wrongful acts” (as customarily defined in such coverage) that
were completed in whole prior to or at the Effective Time or commenced in part prior to the
Effective Time and continued thereafter. Provided, however, that TSYS, and TSYS alone, shall be
responsible for purchasing and maintaining any and all types of directors and officers liability
insurance, other than the run-off coverage as outlined in this Section 2.5, including but not
limited to coverage for the TSYS Group (and its respective Subsidiaries, directors and officers,
and any other insured persons) for “wrongful acts” occurring solely after the Effective Time. Such
run-off coverage for the benefit of Synovus and TSYS (and their respective directors, officers, any
other insured persons, and Groups (including any directors and officers, and any other insured
persons thereof)) shall be procured and non-cancelable for a six-year period commencing as of the
Effective Time and shall include only the following policies and limits:

a. Primary traditional directors and officers insurance policy with an aggregate limit of
$100,000,000 and on the same or comparable terms and conditions as currently provided under
the directors and officers Shared Policy;

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b. Excess traditional directors and officers insurance policy with an aggregate limit of
$25,000,000 and on the same or comparable terms and conditions as currently provided under the
directors and officers Shared Policy; and

c. Separate Side A Difference-In-Conditions (“DIC”) insurance policies for the Synovus insured
directors and officers and the TSYS insured directors and officers, each with an aggregate
limit of $50,000,000, and on the same or comparable terms and conditions as currently provided
under the separate Synovus and TSYS Side A DIC policies (collectively the “Run-Off Policies”).

Synovus and TSYS, and their respective Groups, shall both be named insureds under the Run-Off
Policies (except, however, the Side A DIC policies, each of which shall insure separately the
Synovus directors and officers and the TSYS directors and officers), which policies and limits
shall be accessible to both entities and their respective Subsidiaries, directors and officers,
and/or any other insured persons, as applicable under the terms and conditions of such Run-Off
Policies. Synovus and TSYS shall each pay one-half of the total premium and any other costs for the
purchase of the Run-Off Policies. In the event that the applicable limits of the Run-Off Policies
(except, however, the separate Side A DIC policies as outlined in this Section 2.5) are exceeded by
the amount of outstanding Insured Claims by the Synovus Group and the TSYS Group, the Parties agree
to allocate the Insurance Proceeds using the allocation method as provided in Section 2.6(c).

     Section 2.6. No Liability. Each Party agrees that the other Party (and its Group
members) shall have no Liability as a result of the other Party’s insurance policies and practices
as in effect at any time and arising from the level or scope of the other Party’s insurance, the
creditworthiness of any insurance carrier or the terms and conditions of any insurance policy of
the other Party.

     Section 2.7. Administration and Other Matters.

          (a) Administration. Subject to Section 2.7(c) and Section 2.7(d), from and after the
Effective Time, (i) Synovus shall be responsible for (A) Insurance Administration of the Shared
Policies with respect to all Liabilities except TSYS Liabilities and (B) Claims Administration
(except as provided below) under such Shared Policies with respect to all Liabilities except TSYS
Liabilities, and (ii) TSYS shall be responsible for (A) Insurance Administration of the Shared
Policies with respect to all TSYS Liabilities and (B) Claims Administration (except as provided
below) under such Shared Policies with respect to all TSYS Liabilities; provided,
however, that the retention of such responsibilities by Synovus or TSYS, as the case may
be, is in no way intended to limit, inhibit or preclude (i) any right to insurance coverage for any
Insured Claim of a named insured under such Policies as contemplated by the terms of this Agreement
or (ii) the sharing between Synovus and TSYS of information relating to the matters addressed in
this Article II; and provided further that Synovus’s retention or TSYS’s retention, as the
case may be, of the administrative responsibilities for the Shared Policies shall not relieve the
party submitting any Insured Claim of the primary responsibility for reporting such Insured Claim
accurately, completely and in a timely manner or of such party’s authority to settle any such
Insured Claim within any period permitted or required by the relevant Policy. Subject to Article
I, each of the Parties hereto shall administer and pay any costs relating to its respective Insured
Claims under Shared Policies to the extent such costs are not covered under such Policies and shall
be

9

 

responsible for obtaining or reviewing the appropriateness of releases upon settlement of its
respective Insured Claims under Shared Policies. If an Insured Claim involves both TSYS
Liabilities and Synovus Liabilities under such Shared Policies, TSYS and Synovus agree to share
costs that are not covered under such policies in the same proportion as their respective liability
for the Insured Claim, except to the extent that Article I applies to such costs in which case they
shall be borne by the relevant Indemnifying Party.

          (b) Claims. Where a Shared Policy specifically covers TSYS Liabilities for periods
prior to the Effective Time or covers claims made after the Effective Time with respect to an
occurrence prior to the Effective Time, then from and after the Effective Time TSYS may, subject to
Section 2.7(c) and Section 2.7(d), claim coverage for Insured Claims under such Shared Policy as
and to the extent that such insurance is available up to the full extent of the applicable limits
of liability of such Shared Policy (and may receive any Insurance Proceeds with respect thereto as
contemplated by Section 2.3 or Section 2.7(c) hereof), subject to the terms of this Section 2.7.

          (c) Allocation of Insurance Proceeds. Insurance Proceeds received with respect to
claims, costs and expenses under the Shared Policies shall be paid directly to the appropriate
Person or to Synovus, which shall thereafter administer the Shared Policies by paying the Insurance
Proceeds, as appropriate, to Synovus with respect to Synovus Liabilities and to TSYS with respect
to the TSYS Liabilities. Payment of the allocable portions of indemnity costs of Insurance
Proceeds resulting from such Policies will be made by Synovus to the appropriate Person upon
receipt from the insurance carrier. In the event that the applicable limits on any particular
Shared Policy are exceeded by the amount of outstanding Insured Claims by Synovus and TSYS, the
Parties agree to allocate the Insurance Proceeds received thereunder based upon their respective
percentage of the total of their bona fide claims (measured as of the date costs related to such
bona fide claims were incurred, such incurrence to be measured, (i) in the case of fees and
expenses incurred for services performed that are attributable to the defense or disposition of
Insured Claims, as of the date such fees and expenses are billed to an insurance carrier, and (ii)
in the case of sums payable in settlement or satisfaction of a judgment attributable to Insured
Claims, as of the date of any such settlement or judgment) which were covered under such Shared
Policy (their allocable portion of Insurance Proceeds), and any party who has received Insurance
Proceeds in excess of such party’s allocable portion of Insurance Proceeds shall pay to the other
party the appropriate amount so that each party will have received its allocable portion of
Insurance Proceeds pursuant hereto. Each of the Parties agrees to use commercially reasonable
efforts to maximize available coverage under those Shared Policies applicable to it, and to take
all commercially reasonable steps to recover from all other responsible parties in respect of an
Insured Claim to the extent coverage limits under a particular Shared Policy have been exceeded or
would be exceeded as a result of such Insured Claim.

          (d) Allocation of Deductibles, Etc. In the event that the Parties have bona fide
claims under any Shared Policy for which a deductible or a retrospectively rated premium adjustment
is payable or for which a self-insurance retention amount has been applied, the Parties agree that
the aggregate amount of the deductible or retrospectively rated premium adjustment paid or
retention amount applied shall be borne by the Parties in the same proportion which the Insurance
Proceeds received by each such party bears to the total Insurance Proceeds received under the
applicable Shared Policy (their “allocable share of the deductible, premium adjustment or retention
amount”), and any party who has paid more than its allocable share of the deductible, premium

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adjustment or retention amount shall be entitled to receive from the other party an
appropriate amount so that each party has borne its allocable share of the deductible, premium
adjustment or retention amount pursuant hereto. Further, if a party receives no Insurance Proceeds
under that applicable Shared Policy, that party shall have no allocable share of the deductible,
premium adjustment or retention amount under that applicable Shared Policy, and the other party
shall bear all of the allocable share of the deductible, premium adjustment or retention amount
under that applicable Shared Policy.

     Section 2.8. Agreement For Waiver of Conflict and Shared Defense. In the event that
Insured Claims of more than one of the Parties hereto exist relating to the same occurrence, the
Parties shall jointly defend and waive any conflict of interest necessary to the conduct of the
joint defense. Nothing in this Article II shall be construed to limit or otherwise alter in any
way the obligations of the Parties to this Agreement, including those created by this Agreement, by
operation of Law or otherwise.

     Section 2.9. Cooperation. The Parties agree to use their commercially reasonable
efforts to cooperate with respect to the various insurance matters contemplated by this Agreement.

ARTICLE III

MISCELLANEOUS

     Section 3.1. Entire Agreement. This Agreement, the Distribution Agreement, the other
Ancillary Agreements and the Exhibits and Schedules referenced or attached hereto and thereto,
constitute the entire agreement between the Parties with respect to the subject matter hereof and
shall supersede all prior written and oral and all contemporaneous oral agreements and
understandings with respect to the subject matter hereof.

     Section 3.2. Governing Law. This Agreement shall be governed and construed and
enforced in accordance with the laws of the State of Georgia as to all matters regardless of the
laws that might otherwise govern under the principles of conflicts of laws applicable thereto.

     Section 3.3. Consent to Jurisdiction. Without limiting the provisions of Section 5.5
of the Distribution Agreement, each of the Parties irrevocably submits to the exclusive
jurisdiction of the courts of the State of Georgia or the federal courts located in the State of
Georgia for the purposes of any suit, action or other proceeding arising out of this Agreement, the
Ancillary Agreements or any transaction contemplated hereby or thereby. Each of the Parties agrees
to commence any action, suit or proceeding relating hereto either in the federal district courts
located in the State of Georgia or, if such suit, action or other proceeding may not be brought in
such court for jurisdictional reasons, in the state courts of the State of Georgia. Each of the
Parties irrevocably and unconditionally waives any objection to the laying of venue of any action,
suit or proceeding arising out of this Agreement or the transactions contemplated hereby in (i) the
state courts of the State of Georgia or (ii) the federal district courts located in the State of
Georgia, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim
in any such court that any such action, suit or proceeding brought in any such court has been
brought in an inconvenient forum.

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     Section 3.4. Notices. Any notice, demand, offer, request or other communication
required or permitted to be given by any Party pursuant to the terms of this Agreement shall be in
writing and shall be deemed effectively given the earlier of (i) when received, (ii) when delivered
personally, (iii) one (1) Business Day after being delivered by facsimile (with receipt of
appropriate confirmation), or (iv) one (1) Business Day after being deposited with an overnight
courier service, and addressed to the attention of the Party’s General Counsel at the address of
its principal executive office or such other address as a Party may request by notifying the other
in writing.

     Section 3.5. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original but all of which shall constitute one and the same
agreement, and shall become effective when one or more such counterparts have been signed by each
of the Parties and delivered to the other Parties.

     Section 3.6. Parties in Interest. This Agreement shall be binding upon Synovus, any
member of the Synovus Group, TSYS, and any member of the TSYS Group and inure solely to the benefit
of the Synovus Indemnitees and the TSYS Indemnitees, and their respective successors and permitted
assigns, and nothing in this Agreement, express or implied, is intended to confer upon any other
Person any rights or remedies of any nature whatsoever under or by reason of this Agreement.

     Section 3.7. Assignment. This Agreement shall inure to the benefit of and be binding
upon the Parties and their respective legal representatives and successors, and nothing in this
Agreement, express or implied, is intended to confer upon any other Person any rights or remedies
of any nature whatsoever under or by reason of this Agreement; provided, however, except as
otherwise expressly provided for in this Agreement, this Agreement shall not be assignable, in
whole or in part, by any Party without the prior written consent of the other Parties, and any
attempt to assign any rights or obligations arising under this Agreement without such consent shall
be null and void; provided further, that a Party may assign this Agreement without
such prior written consent in connection with: (i) a merger transaction in which such Party is not
the surviving entity or (ii) the sale, transfer, exchange or other disposition by such Party of all
or substantially all of its assets, so long as, in either case, if such merger or asset sale
transaction occurs during the Restricted Assignment Period, the rating of the assignee, following
the consummation of such merger or asset sale transaction, shall be BBB- or better from Standard &
Poor’s and Baa3 from Moody’s Investor Services, Inc. (or if Standard & Poor’s or Moody’s Investor
Services, Inc. shall change their rating designations after the date of this Agreement, a
comparable rating or better under such new designations), and upon the effectiveness of any such
valid assignment the assigning Party shall be released from all of its obligations under this
Agreement if the surviving entity of such merger or the transferee of such assets shall agree in
writing, in form and substance reasonably satisfactory to the other Parties, to be bound by the
terms of this Agreement as if named as a “Party” hereto.

     Section 3.8. Severability. If any term or other provision of this Agreement is
determined by a nonappealable decision by a court, administrative agency or arbitrator to be
invalid, illegal or incapable of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect.
Upon such determination that any term or other provision is invalid, illegal or incapable of being

12

 

enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the Parties as closely as possible in an acceptable manner to the end that
transactions contemplated hereby are fulfilled to the fullest extent possible.

     Section 3.9. Failure or Indulgence not Waiver. No failure or delay on the part of any
Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver
of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall
any single or partial exercise of any such right preclude other or further exercise thereof or of
any other right.

     Section 3.10. Amendment. No change or amendment will be made to this Agreement except
by an instrument in writing signed on behalf of each of the Parties.

     Section 3.11. Authority. Each of the Parties represents to the others that (a) it has
the corporate or other requisite power and authority to execute, deliver and perform this
Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly
authorized by all necessary corporate or other actions, (c) it has duly and validly executed and
delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation,
enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general
equity principles.

     Section 3.12. Headings. The headings contained in this Agreement, in any Exhibit or
Schedule hereto and in the table of contents to this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement.

     Section 3.13. Limitation on Damages. Each Party irrevocably waives, and no Party
shall be entitled to seek or receive from the other Party, consequential, special, indirect or
incidental damages (including without limitation damages for loss of profits) or punitive damages,
regardless of how such damages were caused and regardless of the theory of liability; provided,
however, that to the extent an Indemnified Party is required to pay any consequential, special,
indirect or incidental damages (including without limitation damages for loss of profits) or
punitive damages to a third party in connection with a Third Party Claim, such damages shall
constitute direct damages and not be subject to the limitations set forth in this Section 3.13.

     Section 3.14. Dispute Resolution under Distribution Agreement. Any dispute arising
out of or relating to the performance, breach or interpretation of this Agreement shall be handled
in accordance with Section 5.5 of the Distribution Agreement.

     Section 3.15. Effectiveness. This Agreement shall become effective upon the Effective
Time and prior thereto shall be of no force or effect. If the Distribution Agreement shall be
terminated in accordance with its terms prior to the occurrence of the Effective Time, this
Agreement and any actions or agreements contemplated hereby shall automatically be terminated and
of no force or effect.

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ARTICLE IV

DEFINITIONS

     Section 4.1. General. Unless otherwise defined herein or the Distribution Agreement,
the following terms shall have the following meanings:

     (a) “Action” means any demand, action, suit, countersuit, arbitration, inquiry, proceeding or
investigation by or before any federal, state, local, foreign or international governmental
authority or any arbitration or mediation tribunal.

     (b) “Ancillary Agreement” has the meaning given to it in the Distribution Agreement.

     (c) “Claims Administration” shall mean the processing of claims made under the Shared
Policies, including the reporting of claims to the insurance carriers, management and defense of
claims and providing for appropriate releases upon settlement of claims.

     (d) “Distribution Agreement” has the meaning given to it in the recitals.

     (e) “Effective Time” has the meaning given to it in the Distribution Agreement.

     (f) “Group” means either the TSYS Group or the Synovus Group.

     (g) “Indemnitee” has the meaning set forth in Section 1.4(a) hereof.

     (h) “Insurance Administration” shall mean, with respect to each Shared Policy, (i) the
accounting for premiums, retrospectively rated premiums, defense costs, indemnity payments,
deductibles and retentions, as appropriate, under the terms and conditions of each of the Shared
Policies; (ii) the reporting to excess insurance carriers of any losses or claims which may cause
the applicable limits of any Shared Policy to be exceeded; (iii) the distribution of Insurance
Proceeds as contemplated by this Agreement; and (iv) any and all other actions reasonably necessary
for the administration of the Shared Policies.

     (i) “Insurance Proceeds” shall mean those monies (i) received by an insured from an insurance
carrier or (ii) paid by an insurance carrier on behalf of an insured.

     (j) “Insured Claims” shall mean those Liabilities that, individually or in the aggregate, are
covered within the terms and conditions of any of the Shared Policies or Run-Off Policies, whether
or not subject to deductibles, self-insured retentions, co-insurance, uncollectibility or
retrospectively rated premium adjustments.

     (k) “Liabilities” shall mean any and all debts, liabilities, obligations, responsibilities,
response actions, losses, damages (whether compensatory, punitive or treble), fines, penalties and
sanctions, absolute or contingent, matured or unmatured, liquidated or unliquidated, foreseen or
unforeseen, joint, several or individual, asserted or unasserted, accrued or unaccrued, known or
unknown, whenever arising, including those arising under or in connection with any Law, Action,
threatened Action, order or consent decree of any Governmental Authority, or any award of any
arbitration tribunal, and those arising under any contract, guarantee, commitment or undertaking,

14

 

whether sought to be imposed by a Governmental Authority, private party, or party to this
Agreement, whether based in contract, tort, implied or express warranty, strict liability, criminal
or civil statute, or otherwise, and including any costs, expenses, interest, attorneys’ fees,
disbursements and expenses of counsel, expert and consulting fees and costs related thereto or to
the investigation or defense thereof.

     (l) “Net-Tax Basis” shall have the meaning subscribed to it in Section 1.6(c).

     (m) “Policies” shall mean insurance policies and insurance contracts of any kind (other than
life and benefits policies or contracts), including primary, excess and umbrella policies,
self-insurance and captive insurance company arrangements, together with the rights, benefits and
privileges thereunder.

     (n) “Restricted Assignment Period” has the meaning set forth in the Distribution Agreement.

     (o) “Shared Policies” (or, individually, “Shared Policy”) shall mean all Policies, current or
past, which are owned or maintained by or on behalf of Synovus which provide coverage to or with
respect to TSYS or the TSYS Business, or any part thereof, other than TSYS Policies, including
those Policies set forth on Schedule 2.

     (p) “Subsidiary” has the meaning set forth in the Distribution Agreement.

     (q) “Synovus Business” shall mean each and every business conducted at any time by any member
of the Synovus Group including each and every business conducted in the past and each and every
business which has been discontinued, sold or transferred, but excluding the TSYS Business.

     (r) “Synovus Group” means Synovus and any of its Subsidiaries (other than TSYS and any member
of the TSYS Group) and each Person that is or becomes a Subsidiary of Synovus at or after the
Effective Time.

     (s) “Synovus Indemnitees” means Synovus and each member of the Synovus Group, and each of
their respective current and former shareholders, directors, officers and employees.

     (t) “Synovus Liabilities” shall mean:

     (i) any and all Liabilities that are expressly contemplated by this Agreement or any
Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities to be retained or
assumed by Synovus; and

     (ii) all Liabilities (other than Taxes and any employee-related Liabilities which are
specifically covered by the Tax Sharing Agreement and the Employee Matters Agreement,
respectively) primarily relating to, arising out of or resulting from:

     (A) the operation of the Synovus Business, as conducted at any time
prior to, on or after the Effective Time (including any Liability relating
to, arising out of or resulting from any act or failure to act by any

15

 

Representative (whether or not such act or failure to act is or was
within such Person’s authority)); or

     (B) the operation of any business conducted by Synovus or any member of
the Synovus Group at any time after the Effective Time (including any
Liability relating to, arising out of or resulting from any act or failure
to act by any Representative (whether or not such act or failure to act is
or was within such Person’s authority)).

Notwithstanding the foregoing, the Synovus Liabilities shall not include: (a) any Liabilities that
are expressly contemplated by this Agreement or any Ancillary Agreement (or the Schedules hereto or
thereto) as Liabilities to be retained or assumed by TSYS; or (b) all agreements and obligations of
TSYS under this Agreement or any of the Ancillary Agreements.

     (u) “Synovus Policies” (or, individually, “Synovus Policy”) shall mean all Policies, current
or past, that are owned or maintained by or on behalf of Synovus that do not provide coverage to or
with respect to TSYS or the TSYS Business, or any part thereof, including those Policies set forth
on Schedule 3.

     (v) “Tax” shall have the meaning set forth in the Tax Sharing Agreement.

     (w) “Third
Party Claim” has the meaning set forth in Section 1.4(b) of this Agreement.

     (x) “TSYS Business” shall mean each and every business conducted at any time by any member of
the TSYS Group, including each and every business which has been discontinued, sold or transferred.

     (y) “TSYS Indemnitees” means TSYS, and each member of the TSYS Group, and each of their
respective current and former directors, officers and employees.

     (z) “TSYS Group” means TSYS and any of its Subsidiaries and each Person that is or becomes a
Subsidiary of TSYS at or after the Effective Time.

     (aa) “TSYS Liabilities” shall mean:

     (i) any and all Liabilities that are expressly contemplated by this Agreement or any
Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities to be retained or
assumed by TSYS, and all agreements; and

     (ii) all Liabilities (other than Taxes and any employee-related Liabilities which are
specifically covered by the Tax Sharing Agreement and the Employee Matters Agreement,
respectively), primarily relating to, arising out of or resulting from:

     (A) the operation of the TSYS Business, as conducted at any time prior
to, on or after the Effective Time (including any Liability relating to,
arising out of or resulting from any act or failure to act by any
Representative with respect to the TSYS Business (whether or not such act or
failure to act is or was within such Person’s authority)); or

16

 

     (B) the operation of any business conducted by TSYS or any member of
the TSYS Group at any time after the Effective Time (including any Liability
relating to, arising out of or resulting from any act or failure to act by
any Representative (whether or not such act or failure to act is or was
within such Person’s authority)).

Notwithstanding the foregoing, the TSYS Liabilities shall not include: (a) any Liabilities that are
expressly contemplated by this Agreement or any Ancillary Agreement (or the Schedules hereto or
thereto) as Liabilities to be retained or assumed by Synovus; or (b) all agreements and obligations
of Synovus under this Agreement or any of the Ancillary Agreements.

     (bb) “TSYS Policies” (or, individually, “TSYS Policy”) shall mean all Policies, current or
past, which are owned or maintained by or on behalf of TSYS, which relate specifically to the TSYS
Business but do not relate to Synovus or the Synovus Business, and which Policies are maintained by
TSYS, including those Policies set forth on Schedule 4.

[SIGNATURES ON FOLLOWING PAGE]

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     WHEREFORE, the Parties have caused this Agreement to be duly executed as of the date first set
forth above.

	 	 	 	 	 
	 	SYNOVUS FINANCIAL CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TOTAL SYSTEM SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

18

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