BSC, INC AND FIRST SECURITY BANK LEXINGTON, KENTUCKY
Exhibit
10.7
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OUTSOURCE
CONTRACT
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BSC,
INC
AND
FIRST
SECURITY BANK
LEXINGTON,
KENTUCKY
CONTRACT
This
agreement made and entered into this 14th
day of
November 2005, by and between BSC, Inc., of 000 Xxx Xxxx 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 SERVICE AND FEES
BSC
agrees to provide to First Security Bank the following services with attendant
fees:
| a) |
Items
captured and imaged at 3 cents per
item
|
| b) |
Items
encoded at 3 cents per item
|
| c) |
Preparation
of statements including the printing of statements with images of
checks
and deposit tickets. Stuffing of envelopes including statements and
enclosures.
|
| 1) |
savings
statements at 35 cents per
statement
|
| 2) |
regular
statements at 75 cents per
statement
|
| 3) |
business
statements at $1.35 per statement
|
| 4) |
analysis
statements at 20 cents per
statement
|
| 5) |
statement
enclosures at 2 cents per enclosure
|
| d) |
Document
shredding service at the rate of $50.00 per
month.
|
| e) |
Stock
paper (3-hole) for statement printing at the rate of $100.00 per
month.
|
| f) |
Perform
extensive research activities. Once a research request is received
by BSC,
BSC shall have seven (7) days in which to respond to said request.
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.
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2. DOCUMENT
SHREDDING
BSC
will
retain cancelled documents for First Security Bank for a period of 90 days
after
the item captures date. BSC has contracted with a third party vendor to provide
on site document shredding services. An audit of the shredding activity will
be
party of the annual Level 2 SAS-70 operations audit that is conducted by BSC’s
independent third party CPA firm. BSC’s liability is covered under BSC’s
standard business policy, which includes errors and omissions.
3. COURIER
SERVICE
First
Security Bank shall provide for all courier service.
4. DURATION
AND TERMINATION
The
period of this contract shall be for six (6) consecutive months beginning with
the date of this contract.
5. INSURANCE
BSC’s
outsource services is covered under the standard business policy which includes
errors and omission coverage with a liability limit of $1,000,000.00 and blanket
employee dishonesty protection with a liability limit of $100,000.00
6. 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.
7. LIMITATION
OF LIABILITY
BSC
agrees to use due care in processing Firs Security Bank work, which care shall
conform to acceptable bank processing standards. BSC shall be responsible for
correcting any errors which are due to machine malfunctions or human error,
provided that such errors are reported to BSC within 60 days of receipt or
information by First Security Bank.
8. It
is
distinctly understood that BSC cannot assign or sublet the rights of this
contract without the express written consent of First Security
Bank.
9. It
is
distinctly understood by and between the parties that BSC is an independent
contractor for all purposes.
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10. This
contract, and written amendments thereto, contain 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.
11. This
contract shall be governed by the laws of the Commonwealth 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. | ||
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| By: | /s/ Xxxxxxx X. Xxxxxx | |
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DATE:
8/19/05
| FIRST SECURITY BANK | ||
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| By: | /s/ R. Xxxxxxx Xxxxxxxxxx | |
|
President & CEO |
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