EXHIBIT 10.3
CONTRACT
This agreement, made and entered into this 14th day of November 1999 by
and between BSC, Inc. of 000 Xxx Xxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx, hereinafter
referred to as BSC and First Security Bank of Lexington, KY, hereinafter
referred to as First Security Bank.
WITNESSETH:
WHEREAS BSC is a company authorized to do business in the State of
Kentucky, who provides operational outsourcing services for certain financial
institutions and,
WHEREAS, First Security Bank desires to contract with BSC for the
services as described herein, the parties agree and covenant as follows:
1. DESCRIPTION OF SERVICES AND FEES
BSC agrees to provide to First Security Bank the following services
with attendant fees:
(a) Proof of deposit and item encoding at 2.5
cents per item.
(b) Bulk filing, exception item pull, and preparation of statements
including the printing of statements, stuffing of envelopes with
statements and enclosures for mailing at 30 cents per statement
and 2 cents per enclosure. Savings statements and revolving
credit statements with no enclosures will be charged at 20 cents
per statement.
(c) Provide microfilming of all items at .3 cents per item.
(d) Perform research activities. Once a research activity
is received by BSC, BSC shall have seven (7) days in which to
respond to said request. Failure to do so may be deemed a
material breach of this contract. Such research will be charged
at $15.00 per hour and 25 cents per copy or fax.
All fees to become due and payable by the 10th of the month following
services rendered.
2. COURIER SERVICE
First Security Bank shall provide for all courier service.
3. DURATION AND TERMINATION
The period of this contract shall be for twenty four (24) consecutive
months beginning with the date of this contract.
4. INSURANCE
BSC's is covered by the St. Xxxx Fire & Marine Insurance Company under
their standard business policy. The coverage includes errors and omission and
has general liability protection aggregate liability limit of $1,000,000.00 and
blanket employee with an dishonesty protection with a liability of
$1,000,000.00.
5. PROPRIETARY NATURE OF DATA
It is agreed that all data and information furnished to BSC by First
Security Bank is to be regarded by the parties as confidential and is to be held
in confidence and safekeeping by BSC for the sole use of First Security Bank.
BSC may not sell, assign or in any way divulge any lists of First Security Bank
customers or business regarding any customer of First Security Bank.
6. This contract contains all the terms and conditions agreed upon by the
parties hereto, and no other agreement, oral or otherwise regarding the subject
matter of this contract shall be deemed to exist or to bind any of the parties
hereto. All previous communications, representations, warranties, promises,
conditions, or agreements of any kind or nature whatsoever shall not be binding
upon the parties unless incorporated into this contract directly or by
reference. This contract covers and includes the entire agreement between the
parties.
7. It is distinctly understood that BSC cannot assign or sublet the rights of
this contract without the express written consent of First Security Bank.
8. It is distinctly understood by and between the parties that BSC is an
independent contractor for all purposes.
9. This contract shall be construed under the laws of the State of Kentucky
both as to interpretation and performance.
IN TESTIMONY WHEREOF, the parties hereto, individually and by their
respective and duly authorized officers, have hereunto set their name.
BSC, INC.
BY:/s/Xxxxxxx X. Xxxxxx
DATE: 11-14-99 President
FIRST SECURITY BANK
BY: /s/Xxxxxx X. Xxxxx
Chairman/President
