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PARTICIPATION AGREEMENT PARTICIPATION AGREEMENT BETWEEN BA MERCHANT SERVICES and BANK OF AMERICA, N.A. AND ENTITY This Participation Agreement is entered into between BA Merchant Services LLC, an Ohio limited liability corporation and Bank of America, N.A. (together "Contractor") and City of Clearwater, an Agency or Unit of Local Government as defined in the Electronic Payments Receipt System Provider Contract effective January 1,2007 ("Contract") and (hereinafter known as the "Entity"). I. PARTICIPATION TERMS AND CONDITIONS A. By signing this Participation Agreement, the Entity and the Contractor agree to be bound by the terms of this Participation Agreement and the Electronic Payments Receipt System Provider Contract between the Contractor and the State of Florida (the "Contract") in the performance of their obligations. The terms of the Contract between the State of Florida (the "State") and the Contractor, including the Card Organizations operating regulations, take precedence over this Participation Agreement. B. By signing this Participation Agreement, the Entity agrees to be bound by the terms of the Merchant Card Services Agreement Terms and Conditions dated 1/2003 and as modified from time to time ("Terms and Conditions"). Entity is referred to as "Merchant" in the Terms and Conditions. The standard form Terms and Conditions booklet is modified as provided in Section IV below. C. The Entity will retain copies of Sales Slips, Credit Slips and other related documents for no less than three (3) years from the transaction date. II. FEES TO BE PAID TO THE CONTRACTOR A. The Entity agrees to pay the Contractor a discount rate or transaction fee based on the fee schedule in Attachment 1 of the Contract. B. Such fees will be debited monthly from the Entity's Deposit Account or billed to the Entity via an InVOiCe process. III. EFFECTIVE DATE AND TERMINATION A. This Participation Agreement will become effective on the date it is signed by both parties. B. This Participation Agreement remains in full force and effect until terminated as provided in this section or until the Contract is terminated. C. Either party may terminate this Participation Agreement at any time by giving the other thirty (30) days prior written notice. D. In the event of non-payment of an invoice for forty-five (45) days or more, Contractor may cease processing after fifteen (15) days prior written notice to Participant. E. Notwithstanding any foregoing subsection, Provider may terminate this Participation Agreement effective immediately, followed by written notice, as required by applicable federal law or card organization operating regulations. 1189553/v7 IV. MERCHANT SERVICES TERMS AND CONDITIONS A. Section 2.01(B) of the Terms and Conditions is hereby removed and replaced in its entirety with the following: Merchant will provide BA with updated business and financial information concerning Merchant, including evidence of required licenses and other information and documents BA may reasonably request from time to time. All material marked "confidential" which BA receives from Merchant will be used only by BA or Card Organizations in performing services under this Agreement or related services and reporting. At any reasonable time, BA or any Card Organization may audit Merchant's records relating to this Agreement. B. Section 14 of the Terms and Conditions is hereby deleted. C. Section 18.01 of the Terms and Conditions is hereby removed and replaced in its entirety with the following: SECTION 18.01 FLORIDA LAW APPLIES. Florida law, as applied to agreements made and performed entirely in Florida without reference to conflict of laws provisions, governs this Agreement. E. The heading and all the provisions constituting Section 24 "Continuing Guarantee" are hereby deleted in their entirety. V. NOTICES A. Any notice required or permitted to be given under this Participation Agreement by one party to the other shall be in writing and shall be given and deemed to have been given if hand-delivered, delivered by telephonic facsimile transmission equipment and confirmed by telephone with an original mailed or hand-delivered thereafter, or mailed by certified or registered mail with postage prepaid to the party or their successor at the address specified as follows: The Entity: Finance Director City Of Clearwater PO Box 4748 Clearwater. F133758-4748 The Contractor: BA Merchant Services, LLC 1231 Durret Lane Louisville, Kentucky 40213 Attention: Contract Management Facsimile Number: (502) 315-2271 B. All such notices shall be deemed given when received, as evidenced by the signed acknowledgment of receipt of the person to whom such notice or communication shall have been delivered by hand, the document transmission summary generated by the telephonic facsimile transmission equipment, 1189553/v7 2 . < or the acknowledgment of receipt returned to sender by the United States Post Office, if such receipt is requested. C. The absence of the forms of documentary evidence of date of delivery, however, shall not be interpreted as invalidating the form of notice utilized. D. Either party may change the address to which notices are to be delivered by giving to the other party not less than ten Business Days prior written notice thereof. VI. MISCELLANEOUS PROVISIONS A. This Participation Agreement, incorporating the terms of the Contract and the Terms and Conditions, contains the entire understanding of the parties and supersedes any and all previous discussions, proposals, or agreements, if any, between the parties with respect to the subject matter hereof. B. This Participation Agreement may not be amended except by an instnittient ih writing signed by an authorized. representative of each of the parties. C. This Participation Agreement is binding on the parties and their successors and assigns. CITY OF CLEARWATER, FLORIDA City Attorney Bank of America, N.A. ~J~ By: BA Merchant Services, LLC ~J~. By: By: BanK Of America, N.A. Donna G. Carbone Senior Vice President 5""" ~lY/ SA Merchant Services, LLC Donna G. Carbone By: ~pnlnr Vit!P Prp.litf~nt ':;'.. / ~ .D7 1189553/v7 3