Official Payments Corp. Contracts
Sample Business Contracts
Services Agreement - National City Bank of Michigan/Illinois and US Audiotex Corp.
Services Forms
AGREEMENT
This Agreement, made and entered into as of the 1st day of October, 1999
(Effective Date), by and between National City Bank of Michigan/Illinois, a
national banking association (National City), and U S Audiotex Corp., a Delaware
Corporation (USA).
A. Scope of Agreement
------------------
USA has offered Interactive Voice Response (IVR) and Internet Payment
Program (IPP) services in conjunction with bankcard programs to the State
of Illinois. The State of Illinois wishes to use USA products in
conjunction with the integrated IRS program. National City desires to
participate in the IVR and IPP offered by USA. National City will act as
the acquiring bank and perform authorization and settlement services.
National City acknowledges that the IVR and IPP services provided by USA
contain patents, trade secrets and copyrights exclusively owned by USA.
Nothing in this agreement transfers any ownership interests in these
products to National City. National City agrees not to reverse engineer any
product or service provided by USA.
National City acknowledges that 1-888-2PAY-TAX and 8882paytax.com are
registered trademarks of USA and nothing in this Agreement transfers any
ownership in these products to National City.
B. Handling of Transactions
------------------------
1. National City warrants that Columns A and B of Exhibit 1 attached
hereto match exactly the fees set forth in National City's contract
with the State of Illinois.
2. USA's shall charge users of USA systems and services the respective
convenience fees set forth in Column B of Exhibit 1. USA shall refund
such convenience fees on any recharged, reversed, voided, credited
transactions or similar transaction. National City shall refund all
transaction fees for any recharged, reversed, voided, credited
transactions or similar transaction.
3. USA shall create separate transactions for the primary payment
transaction (i.e., the "Column A" amount) and for the convenience fee
(i.e., the "Column B" amount) and shall transmit both transactions to
National City.
<PAGE>
C. Fees
----
1. For each successfully transmitted primary payment transaction (i.e.,
the "Column A" amount) received by National City from USA, utilizing
as the payment vehicle a MasterCard card number or a VISA card number,
National City shall pay USA the amount indicated in Column D of
Exhibit 1 hereto which corresponds to the amount of the primary
payment transaction indicated in Column A of said Exhibit 1. National
City shall pay such amount to USA on or before the 15th day of the
calendar month following the month in which NPC received the
transmission. Payments shall be made by check or, at USA's option, by
ACII to a domestic bank account specified in writing by USA.
2. For each successfully transmitted primary payment transaction (i.e.,
the "Column A" amount) received by National City from USA, utilizing
as the payment vehicle a Discover card number or an American Express
card number, USA shall pay National City fifteen cents ($0.15).
National City shall invoice USA monthly in arrears for such fees. USA
shall pay such invoices within thirty (30) days of receipt.
D. Limitation of Liability
-----------------------
Except for a breach of confidentiality under Section F, in no event shall
either party be liable to the other party for any special, consequential,
or indirect damages in connection with this Agreement.
E. Term and Termination
--------------------
This Agreement shall have an initial term of one (1) year from the
Effective Date and shall thereafter automatically renew for successive
twelve (12) month periods. Either party may terminate this Agreement by
notifying the other party in writing at least sixty (60) days prior to the
expiration of the initial term or any renewal term, with such termination
to occur at the expiration of such term.
If either party defaults in the performance of any obligation under this
Agreement and fails to remedy such default within thirty (30) calendar days
after receipt of written notice of the default, the other party may
terminate this Agreement upon written notice.
F. Confidentiality
---------------
The parties agree that the terms of this Agreement, as well as all
information of a business nature relating to the business operations of the
parties, which are disclosed in connection with this Agreement, are
confidential. The parties shall not, without the express prior written
consent of the other party, use (except as contemplated by this Agreement)
disclose or permit access to any such confidential information during the
term of this Agreement or for a period of two (2) years thereafter. Each
party agrees to cause its
<PAGE>
employees and agents to take such action as shall be reasonably necessary
to preserve and protect the confidentiality of such information.
The obligations imposed upon either party herein shall not apply to
information:
1. which becomes available to the public through no wrongful act of the
receiving party; or
2. which may be published prior to the date hereof; or
3. which is already in the possession of the receiving party and not
subject to an existing agreement of confidence between parties; or
4. which is received from a third party without restriction and without
breach of this agreement or any other agreement of confidence; or
5. which is independently developed by the receiving party (without use
of information provided hereunder); or
6. which is disclosed pursuant to a requirement or request of a
government agency or a court competent jurisdiction.
G. Notices
-------
Any notices permitted or required hereunder shall be deemed given when
deposited in the United States mail with postage prepaid and addressed as
follows:
If to National City: National City Bank of Michigan/Illinois
Merchant Services
1 National City Parkway
Kalamazzo MI 49009
If to USA: U.S. Audiotex Corp.
2333 San Ramon Valley Blvd, Suite 450
San Ramon CA 94583
Attention: President
H. Governing Law
-------------
This Agreement shall be governed by and shall be construed in accordance
with the laws of the State of Illinois. If any provisions of this Agreement
shall be held to be invalid, illegal, or unenforceable, the validity,
legality, and enforceability of the remaining provisions shall not in any
way be affected or impaired thereby.
I. Business Relationship
---------------------
The relationship of National City and USA is that of independent contractor
only. Nothing herein shall be deemed to create any partnership, agency,
joint venture or other relationship between parties and neither party shall
hold itself out as the same. Except as expressly authorized in writing,
neither party may bind the other or make representation on behalf of the
other.
<PAGE>
J. General Provisions
------------------
1. This Agreement contains the full understanding of the parties with
respect to the subject matter hereof, and no waiver, alteration or
modification of any of the provisions hereof shall be binding unless in
writing and signed by officers of both parties.
2. Neither party to this Agreement may assign its rights or obligations
under this Agreement without the express prior written consent of the
other party, such consent not to be unreasonably withheld or delayed,
except that the obligations of National City under this Agreement may be
provided or fulfilled by any parent, subsidiary, affiliate, successor
corporation or subcontractor of National City assumes full
responsibility for such obligations.
3. Each party represents that the individual executing this Agreement on
its behalf has the requisite power and authority to do so and that this
Agreement constitutes the valid and binding obligation of its
corporation.
4. In the event that either party brings an action against the other party
to enforce the terms and conditions of this Agreement, the prevailing
party shall be entitled to recover its reasonable costs and expenses,
including reasonable attorney fees, incurred in connection therewith.
K. Force Maieure
-------------
Neither party shall be liable for the failure to fulfill its obligations
under this Agreement if such failure is due to any cause or condition
beyond such party's reasonable control, such as: natural disaster, acts of
God, strikes, fire, floods, war, riot, electrical power failure, decrees of
governmental bodies or communications failure.
IN WITNESS WHEREOF, the parties have executed and delivered this Agreement, on
the day first above written.
National City Bank of Michigan/Illinois
(National City)
By: /s/ MARK PFAU
-------------------------
Mark Pfau, Vice President
U S Audiotex Corp.
(USA)
By: /s/ KENNETH STERN
-------------------------
Kenneth Stern, President
<PAGE>
NATIONAL CITY BANK OF MICHIGAN/ILLINOIS
FEE SCHEDULE FOR THE STATE OF ILLINOIS
DEPARTMENT OF REVENUE
A B C D
--------------------------------------------------------------------------------
1 STATE OF
2 ILLINOIS US AUTDIOTEX
3 TICKET FEE NCB INCOME
4 RANGE SCHEDULE COST AMOUNT
--------------------------------------------------------------------------------
5 $1.00-$10.00 $0.75 $0.50 $0.25
--------------------------------------------------------------------------------
6 $10.01-$25.00 $0.98 $0.78 $0.20
--------------------------------------------------------------------------------
7 $25.01-$50.00 $1.90 $1.25 $0.65
--------------------------------------------------------------------------------
8 $50.01-$75.00 $2.28 $1.73 $0.55
--------------------------------------------------------------------------------
9 $75.01-$100.00 $3.00 $2.20 $0.80
--------------------------------------------------------------------------------
10 $100.01-$150.00 $4.50 $3.15 $1.35
--------------------------------------------------------------------------------
11 $150.01-$200.00 $5.50 $4.10 $1.40
--------------------------------------------------------------------------------
12 $200.01-$250.00 $6.50 $5.05 $1.45
--------------------------------------------------------------------------------
13 $250.01-$300.00 $7.50 $6.00 $1.50
--------------------------------------------------------------------------------
14 $300.01-$400.00 $10.00 $8.10 $1.90
--------------------------------------------------------------------------------
15 $400.01-$500.00 $12.50 $10.05 $2.45
--------------------------------------------------------------------------------
16 $500.01-$600.00 $14.50 $12.00 $2.50
--------------------------------------------------------------------------------
17 $600.01-$700.00 $16.50 $13.95 $2.55
--------------------------------------------------------------------------------
18 $700.01-$800.00 $19.00 $15.90 $3.10
--------------------------------------------------------------------------------
19 $800.01-$900.00 $21.50 $17.85 $3.65
--------------------------------------------------------------------------------
20 $900.01-$1,000.00 $24.00 $19.80 $4.20
--------------------------------------------------------------------------------
21 $1000.01-$1500.00 $34.00 $29.55 $4.45
--------------------------------------------------------------------------------
22 $1500.01-$2000.00 $46.00 $39.30 $6.70
--------------------------------------------------------------------------------
23 $2000.01-$2500.00 $56.00 $49.05 $6.95
--------------------------------------------------------------------------------
24 $2500.01-$3000.00 $67.00 $58.80 $8.20
--------------------------------------------------------------------------------
25 $3000.01-$3500.00 $78.00 $68.55 $9.45
--------------------------------------------------------------------------------
26 $3500.01-$4000.00 $89.00 $78.30 $10.70
--------------------------------------------------------------------------------
27 $4000.01-$4500.00 $99.00 $88.05 $10.95
--------------------------------------------------------------------------------
28 $4500.01-$5000.00 $110.00 $97.80 $12.20
--------------------------------------------------------------------------------
29 $5000.01-$5500.00 $122.00 $107.55 $14.45
--------------------------------------------------------------------------------
30 $5500.01-$6000.00 $132.00 $117.30 $14.70
--------------------------------------------------------------------------------
31 $6000.01-$6500.00 $144.00 $127.05 $16.95
--------------------------------------------------------------------------------
32 $6500.01-$7000.00 $154.00 $136.60 $17.20
--------------------------------------------------------------------------------
33 $7000.01-$7500.00 $164.00 $146.55 $17.45
--------------------------------------------------------------------------------
34 $7500.01-$8000.00 $175.00 $156.30 $18.70
--------------------------------------------------------------------------------
35 $8000.01-$8500.00 $185.00 $166.05 $18.95
--------------------------------------------------------------------------------
36 $8500.01-$9000.00 $196.00 $175.80 $20.20
--------------------------------------------------------------------------------
<PAGE>
NATIONAL CITY BANK OF MICHIGAN/ILLINOIS
FEE SCHEDULE FOR THE STATE OF ILLINOIS
DEPARTMENT OF REVENUE
-------------------------------------------------------------------------------
A B C D
-------------------------------------------------------------------------------
3 TICKET FEE NCH INCOME
-------------------------------------------------------------------------------
37 $9000.01-$9500.00 $207.00 $185.55 $21.45
-------------------------------------------------------------------------------
38 $9500.01-$10000.00 $217.00 $195.30 $21.70
-------------------------------------------------------------------------------
39 $10000.01-$10500.00 $227.00 $205.05 $21.95
-------------------------------------------------------------------------------
40 $10500.01-$11000.00 $239.00 $214.80 $24.20
-------------------------------------------------------------------------------
41 $11000.01-$11500.00 $250.00 $224.50 $25.45
-------------------------------------------------------------------------------
42 $11500.01-$12000.00 $260.00 $234.30 $25.70
-------------------------------------------------------------------------------
43 $12000.01-$12500.00 $271.00 $244.05 $26.95
-------------------------------------------------------------------------------
44 $12500.01-$13000.00 $282.00 $253.80 $28.20
-------------------------------------------------------------------------------
45 $13000.01-$13500.00 $292.00 $263.55 $28.45
-------------------------------------------------------------------------------
46 $13500.01-$14000.00 $303.00 $273.30 $29.70
-------------------------------------------------------------------------------
47 $14000.01-$14500.00 $314.00 $283.05 $30.95
-------------------------------------------------------------------------------
48 $14500.01-$15000.00 $325.00 $292.80 $32.20
-------------------------------------------------------------------------------
49 $15000.01-$15500.00 $336.00 $302.55 $33.45
-------------------------------------------------------------------------------
50 $15500.01-$16000.00 $340.00 $312.00 $33.70
-------------------------------------------------------------------------------
51 $16000.01-$16500.00 $357.00 $322.05 $34.95
-------------------------------------------------------------------------------
52 $16500.01-$17000.00 $368.00 $331.60 $36.20
-------------------------------------------------------------------------------
53 $17000.01-$17500.00 $379.00 $341.55 $37.45
-------------------------------------------------------------------------------
54 $17500.01-$18000.00 $390.00 $351.30 $38.70
-------------------------------------------------------------------------------
55 $18000.01-$18500.00 $400.00 $361.05 $38.95
-------------------------------------------------------------------------------
56 $18500.01-$19000.00 $411.00 $370.80 $40.20
-------------------------------------------------------------------------------
57 $19000.01-$19500.00 $422.00 $380.55 $41.45
-------------------------------------------------------------------------------
58 $19500.01-$20000.00 $432.00 $390.30 $41.70
-------------------------------------------------------------------------------
59 $20000.01-$22000.00 $476.00 $429.30 $45.70
-------------------------------------------------------------------------------
60 $22000.01-$24000.00 $518.00 $468.30 $49.70
-------------------------------------------------------------------------------
61 $24000.01-$26000.00 $561.00 $507.30 $53.70
-------------------------------------------------------------------------------
62 $26000.01-$28000.00 $604.00 $546.30 $57.70
-------------------------------------------------------------------------------
63 $28000.01-300000.00 $647.00 $585.30 $61.70
-------------------------------------------------------------------------------
64 $30000.01-$35000.00 $754.00 $682.80 $71.20
-------------------------------------------------------------------------------
65 $35000.01-$40000.00 $862.00 $780.30 $81.70
-------------------------------------------------------------------------------
66 $40000.01-$45000.00 $970.00 $877.80 $92.20
-------------------------------------------------------------------------------
67 $45000.01-$50000.00 $1,077.00 $975.30 $101.70
-------------------------------------------------------------------------------
68 $50000.01-$60000.00 $1,292.00 $1,170.30 $121.70
-------------------------------------------------------------------------------
69 $60000.01-$70000.00 $1,507.00 $1,365.30 $141.70
-------------------------------------------------------------------------------
70 $70000.01-$80000.00 $1,722.00 $1,560.30 $161.70
-------------------------------------------------------------------------------
71 $80000.01-$90000.00 $1,937.00 $1,755.30 $181.70
-------------------------------------------------------------------------------
72 $90000.01-$99999.99 $2,152.00 $1,950.30 $201.70
-------------------------------------------------------------------------------
<PAGE>
STATE OF ILLINOIS
DEPARTMENT OF REVENUE
CUSTOMER FEE SCHEDULE
STATE OF
ILLNOIS
TICKET FEE
RANGE SCHEDULE
------------------------------------------------
$1.00-$10.00 $0.75
------------------------------------------------
$10.01-$25.00 $0.98
------------------------------------------------
$25.01-$50.00 $1.90
------------------------------------------------
$50.01-$75.00 $2.28
------------------------------------------------
$75.01-$100.00 $3.00
------------------------------------------------
$100.01-$150.00 $4.50
------------------------------------------------
$150.00-$200.00 $5.50
------------------------------------------------
$200.01-$250.00 $6.50
------------------------------------------------
$250.01-$300.00 $7.50
------------------------------------------------
$300.01-$400.00 $10.00
------------------------------------------------
$400.01-$500.00 $12.50
------------------------------------------------
$500.01-$600.00 $14.50
------------------------------------------------
$600.01-$700.00 $16.50
------------------------------------------------
$700.01-$800.00 $19.00
------------------------------------------------
$800.01-$900.00 $21.50
------------------------------------------------
$900.01-$1000.00 $24.00
------------------------------------------------
$1000.01-$1500.00 $34.00
------------------------------------------------
$1500.01-$2000.00 $46.00
------------------------------------------------
$2000.01-$2500.00 $56.00
------------------------------------------------
$2500.01-$3000.00 $67.00
------------------------------------------------
$3000.01-$3500.00 $78.00
------------------------------------------------
$3500.01-$4000.00 $89.00
------------------------------------------------
$4000.01-$4500.00 $99.00
------------------------------------------------
<PAGE>
STATE OF ILLINOIS
DEPARTMENT OF REVENUE
CUSTOMER FEE SCHEDULE
STATE OF
ILLNOIS
TICKET FEE
RANGE SCHEDULE
------------------------------------------------
$4500.01-$5000.00 $110.00
------------------------------------------------
$5000.01-$5500.00 $122.00
------------------------------------------------
$5500.01-$6000.00 $132.00
------------------------------------------------
$6000.01-$6500.00 $144.00
------------------------------------------------
$6500.01-$7000.00 $154.00
------------------------------------------------
$7000.01-$7500.00 $164.00
------------------------------------------------
$7500.01-$8000.00 $175.00
------------------------------------------------
$8000.01-$8500.00 $185.00
------------------------------------------------
$8500.01-$9000.00 $196.00
------------------------------------------------
$9000.01-$9500.00 $207.00
------------------------------------------------
$9500.01-$10000.00 $217.00
------------------------------------------------
$10000.01-$10500.00 $227.00
------------------------------------------------
$10500.01-$11000.00 $239.00
------------------------------------------------
$11000.01-$11500.00 $250.00
------------------------------------------------
$11500.01-$12000.00 $260.00
------------------------------------------------
$12000.01-$12500.00 $271.00
------------------------------------------------
$12500.01-$13000.00 $282.00
------------------------------------------------
$13000.01-$13500.00 $292.00
------------------------------------------------
$13500.01-$14000.00 $303.00
------------------------------------------------
$14000.01-$14500.00 $314.00
------------------------------------------------
$14500.01-$15000.00 $325.00
------------------------------------------------
$15000.01-$15500.00 $336.00
------------------------------------------------
$15500.01-$16000.00 $346.00
------------------------------------------------
<PAGE>
STATE OF ILLINOIS
DEPARTMENT OF REVENUE
CUSTOMER FEE SCHEDULE
STATE OF
ILLNOIS
TICKET FEE
RANGE SCHEDULE
------------------------------------------------
$16000.01-$16500.00 $357.00
------------------------------------------------
$16500.01-$17000.00 $368.00
------------------------------------------------
$17000.01-$17500.00 $379.00
------------------------------------------------
$17500.01-$18000.00 $390.00
------------------------------------------------
$18000.01-$18500.00 $400.00
------------------------------------------------
$18500.01-$19000.00 $411.00
------------------------------------------------
$19000.01-$19500.00 $422.00
------------------------------------------------
$19500.01-$20000.00 $432.00
------------------------------------------------
$20000.01-$22000.00 $475.00
------------------------------------------------
$22000.01-$24000.00 $518.00
------------------------------------------------
$24000.01-$26000.00 $561.00
------------------------------------------------
$26000.01-$28000.00 $604.00
------------------------------------------------
$28000.01-$30000.00 $647.00
------------------------------------------------
$30000.01-$35000.00 $754.00
------------------------------------------------
$35000.01-$40000.00 $862.00
------------------------------------------------
$40000.01-$45000.00 $970.00
------------------------------------------------
$45000.01-$50000.00 $1,077.00
------------------------------------------------
$50000.01-$60000.00 $1,292.00
------------------------------------------------
$60000.01-$70000.00 $1,507.00
------------------------------------------------
$70000.01-$80000.00 $1,722.00
------------------------------------------------
$80000.01-$90000.00 $1,937.00
------------------------------------------------
$90000.01-$99999.99 $2,152.00
------------------------------------------------