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Services Agreement

 

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Title:

Services Agreement

Entities:

Global Payments Inc.

Date:

2001

Size:

Preview shows 7KB of 48KB total

Price:

$42

ID:

#359698

 

 

► Services ► Services Agmt. ► Misc. Services Agreements
► Services ► Business Services

 

 

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                              Services Agreement

(Batch Processing)

This Services Agreement (Batch Processing) (the "Agreement") is between
Global Payments Inc., a Georgia corporation ("Global Payments" or "Provider")
and National Data Corporation, a Delaware corporation ("NDC" or "Recipient")
(Global Payments and NDC are each referred to as a "Party" and both are referred
to as the "Parties"), and is dated as of and is made effective as of January 31,
2001 (the "Effective Date").

Background

Prior to the Effective Date, NDC had two primary areas of business, the
processing of credit card transactions (the "Commerce Business") and the
processing of claims and related transactions among health care providers and
health care insurers (the "Health Business").

The Board of Directors of NDC has determined that it is in the best
interests of NDC and its shareholders for NDC to transfer and assign to Global
Payments the capital stock of National Data Payment Systems, Inc., Global
Payment Holding Company, NDC Holdings (UK) Ltd., Merchant Services U.S.A. and
their respective subsidiaries (the "NDC Global Payments Subsidiaries") that hold
all of the assets and liabilities that currently constitute NDC's Global
Payments business and a 0.85% general partnership interest in GPS Holding
Limited Partnership as a contribution to the capital of Global Payments and to
receive in exchange therefore shares of Global Payments common stock, and to
thereafter make a distribution (the "Distribution") to the holders of NDC common
stock of all of the outstanding shares of Global Payments common stock at the
rate of eight-tenths (0.8) of a share of Global Payments common stock for every
one share of NDC common stock outstanding pursuant to a Distribution Agreement,
dated as of the date hereof, between NDC and Global Payments (the "Distribution
Agreement"). The Parties intend that the transactions described in the
Distribution Agreement will be effective at the Effective Time (as that term is
defined in the Distribution Agreement). Upon the Effective Time, NDC's business
will be the Health Business, and Global Payments's business will be the Commerce
Business.

Although the transactions provided for in the Distribution Agreement and
the Ancillary Agreements (as that term is defined in the Distribution Agreement)
will provide for the separation of NDC and Global Payments into separate and
distinct entities and the substantial separation of their operations, and
although the Parties had, prior to the Effective Date, begun (and in some cases,
completed) the separation of certain computer system and network system
functions, other computer systems and network activities presently shared by the
Parties, such as the batch processing capabilities of the Unisys computers (the
"Batch Processing System") that serve both the Health Business and the Commerce
Business cannot be separated as of the Effective Date.

Accordingly, the Parties deem it to be appropriate and in their best
interests in connection with the Distribution that Global Payments shall provide
to NDC certain services upon the terms and conditions of this Agreement for the
period provided for herein and that NDC will reimburse
{PAGE}

Global Payments for such services, on an allocated cost basis, plus certain fees
for administrative costs.

Terms and Conditions

Now, Therefore, in consideration of the mutual promises contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows:

Article 1 Provision of Services

"Services" means the batch processing services described in Addendum I--
Batch Processing Services.

Provider shall, subject to the terms and conditions of this Agreement,
provide Recipient with the Services.

Article 2 Allocation of Costs

All costs incurred by Provider in connection with the provision of the
Services will be allocated between the Parties as described in the body of this
Agreement or in Addendum II--Allocation of Costs.

Article 3 Invoices and Payments

Section 3.01 Invoices

Provider will provide Recipient monthly invoices which will provide
reasonable details regarding the allocation of costs and other charges for each
of the types of Services rendered.

Provider will use commercially reasonable efforts to provide Recipient with
an invoice by the tenth day of the month following the month in which the
Services were rendered.

Recipient must notify Provider of any objection within twenty (20) days
after its receipt of the invoice, and must provide reasonable details as to
specific charges to which Recipient objects, and the basis for such objection.

Section 3.02 Payment

Recipient agrees to pay Provider all costs allocated to it in accordance
with this Agreement and all other charges that Provider is entitled to charge
pursuant to this Agreement. All payments by Recipient shall be made within
thirty (30) days of Recipient's receipt of an invoice and shall be made by wire
transfer to a bank account designated by Provider.

If any portion of an amount due to Provider under this Agreement is subject
to a bona fide dispute between the Parties, Recipient shall nonetheless pay and
remit to Provider on the date such amount is due all amounts not disputed in
good faith by Recipient.

-2-
{PAGE}

Article 4 Term and Termination

Section 4.01 Initial Term

This Agreement shall begin on the Effective Date, and shall expire on May
31, 2001 (the "Initial Term"), unless (i) renewed as provided in Section 4.02 or
(ii) terminated earlier in accordance with the terms of this Agreement.

Section 4.02 Renewal Terms

This Agreement may be renewed for two successive renewal terms of one (1)
year (each a "Renewal Term") (the Initial Term and all Renewal Terms
collectively referred to herein as the "Term") if, during the Initial Term,
Recipient gives written notice of renewal at least thirty (30) days prior to the
last day of the Initial Term; and if, no later than at least thirty (30) days
prior to the last day of the first Renewal Term, Recipient gives written notice
of renewal for the second Renewal Term.

Section 4.03 Extension in Connection with Termination Assistance

If, pursuant to Section 4.06, Recipient requests that Provider provide
termination assistance, then this Agreement shall be extended during the period

 

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