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SIXTH ADDENDUM
of
MERCHANT SERVICES AGREEMENT
BY AND BETWEEN
CARDSERVICE INTERNATIONAL, INC.
AND
XXXXXXX BANK OF COMMERCE
This "Fifth Amendment of Merchant Services Agreement by and Between
Cardservice International, Inc. and Xxxxxxx Bank of Commerce" ("Amendment") is
made as of March 31, 2001 between Cardservice International, Inc.
("Cardservice"), a California corporation and Redding Bank ("Bank") a California
state-chartered banking corporation.
RECITALS
A. CARDSERVICE and BANK entered into an agreement that became effective
April 1, 1993 (the "Original Agreement"). The Original Agreement has been
modified previously by four different Addendum. The parties now intend to
further amend certain portions of the Original Agreement, as previously
modified. The purpose of this Amendment is to carry out that intention.
B. The particulars of this Amendment relate to a new pricing structure
between BANK and CARDSERVICE; elimination of a requirement that CARDSERVICE
reimburse Bank a portion of its salary expense; and, a provision granting
CARDSERVICE interest income from certain funds held by the Bank.
NOW, THEREFORE, in consideration of the mutual obligations in this
Amendment and for other good consideration, the receipt and sufficiency of which
are acknowledged, the parties to this Amendment agree as follows:
Bank and Cardservice acknowledge that the initial, Second Addendum and
Third Addendum to the Original Agreement, dated November 1993 and September
1996, are of no further force or effect.
Paragraph 1.0, 1.1, 1.2 and 1.6 is deleted in its entirety. Cardservice
shall not be required to maintain any reserve account.
Paragraphs 1.6 and 2.3e shall cease to have any effect as of January 1,
2001.
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Paragraph 2.1 is deleted in its entirety. It is replaced with a new
paragraph 2.1 which reads as follows:
Each month BANK shall retain for itself that portion of the
Merchant Fees for Covered Merchants which equals 2.0 basis points
(.02%) of net bankcard sales. In addition, Bank is entitled to
one half of the earnings on the float arising from Cardservice's
deposit relationships.
A new Paragraph 3.5 is added that reads as follows:
Except for funds otherwise earning interest, including but not
limited to certificate of deposit funds, Bank shall pay
CARDSERVICE daily interest at the rate of 1/2 of the daily
revenue earned by Bank, but in no event less than at the rate of
1/2 of the daily, Federal Funds Rate as received daily by Bank
sales of Federal Funds, on all merchant funds held by Bank
including, but not limited to, bancontrol funds and funds on ACH
delay.
Paragraph 15.0 is modified to provide that all required or permitted
written notices to Cardservice shall be addressed to:
Cardservice International, Inc.
X.X. Xxx 0000
Xxxx Xxxxxx, XX 00000-0000
Attention: Xxx Xxxxxxxx
Bank and CARDSERVICE agree that all provisions of this Amendment shall
become effective on the date this Amendment is fully executed. Except as
modified by this Sixth Addendum, all other terms of the Original Agreement, as
amended, shall remain in full force and effect.
IN WITNESS WHEREOF, each of the parties has caused this Amendment to be
executed on its behalf by a duly authorized representative on the day written
below.
XXXXXXX BANK OF COMMERCE CARDSERVICE INTERNATIONAL, INC.
XXXXXXX X. XXXXX XXX XXXXXXXX
Name: Xxxxxxx X. Xxxxx Name: Xxx Xxxxxxxx
Title: President & CEO Title: President
Date: March 28, 2001 Date: March 28, 2001
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