Master Service Agreement

(i) Promptly provide valid and verifiable identification information (including proof of federal, state, and local tax identification and valid ownership and controller information in Netchex’s Business Ownership Form) for all Users and such other individuals receiving Services, no less than fifteen (15) days prior to the date on which Services are scheduled to commence.  Client’s submission of a completed Business Ownership Form to Netchex is required for Netchex to provide Payment Services and Payroll Services.  Until receipt of required information, Netchex may suspend all or any portion of the Services or require that Client wire funds to enable the payroll services.   

(ii) In order to ensure prompt registration of Client into Netchex’s system, Client will within fourteen (14) days from the Effective Date of this Agreement: (A) promptly provide all documents and information requested; and (B) attend and participate in all required meetings with Netchex implementation representatives, including the Service commencement kick-off meeting.  

(iii) Upon receipt from Netchex, Client will promptly review for completeness and accuracy all documentation provided by Netchex (including, without limitation, disbursement records and other reports or documentation prepared by Netchex), and Client will immediately notifyNetchex of any errors or discrepancies. Netchex is not responsible for delays, interruptions in the performance of Services, or errors attributable to Client’s failure to notify Netchex of incomplete, incorrect, or erroneous documentation.  

(iv) Netchex makes available to Client a number of Third Party Services (defined below) to provide additional solutions and offerings to Client.  Where Client is interested in or applies for a Third Party Service in the financial services industry that for compliance purposes requires same or similar information from Client to evaluate Client’s eligibility services, Client hereby approves Netchex to share Client’s contact information and completed Business Ownership Form to the Third Party Service for their compliance review of Client’s eligibility for such services.    

(v) Netchex may assess Client a monthly fee of one hundred dollars ($100.00) per month beginning on Client’s Target Start Month for Client’s failure to provide Netchex with valid, verifiable proof of Client’s federal, state, or local tax identification and valid ownership and controller information until Client has provided such to Netchex. 

(i) Client agrees to be invoiced and drafted during the billing cycle which will begin at the start of Client’s Target Start Month as set forth in the Fee Proposal (“Billing Start Month”) and continue as monthly invoices throughout the duration of this Agreement. Netchex reserves the right to commence monthly PEPM billing at the beginning of Client’s Target Start Month regardless of Client’s failure to fulfill any Client implementation and onboarding obligations under Section 1.4. 

(ii) Client agrees that if Client terminates the Agreement or the Fee Proposal following the Effective Date, Client will be responsible for payment of an Early Termination Fee as provided in Section 1.11(e) below. 

(iii) Client’s Monthly Total Fee includes the monthly PEPM payment and any additional monthly fees, subject to any other billing and promotional terms set forth in the Fee Proposal.    

(iv) Invoices will be available on the seventh (7th) business day of the month. Netchex will electronically draft the bank account designated by Client on the Funding Authorization Agreement on the tenth (10th) business day of the month. Netchex will provide Client with no less than thirty (30) days prior written notice in the event of changes to the dates on which invoicing or electronic drafts will occur. 

(v) The first month’s invoice will be based on the employee count set out in the Fee Proposal. All subsequent monthly invoices shall be determined by previous month’s count of unique employees and shall not fall below the established monthly minimum PEPM payment. 

(vi) An Onboarding Fee will be included on Client’s first month’s bill with Netchex. Any other additional one-time fee items set forth in the Fee Proposal will be invoiced once the item is delivered. 

(vii) A monthly minimum payment applies to Client and each Client Affiliate as set forth in the Fee Proposal, which can be updated annually based on Client employee count pursuant to Section 1.5(b)(ii).   

(viii) Rates and discounts listed in the Fee Proposal are based on the product offering(s) subscribed to in the Fee Proposal as well as existing subscriptions by Client.   Discounts and waivers are conditioned upon Client’s compliance with its obligations under this Agreement and receipt of Netchex Services for the full duration of the Term. Client changes to product subscriptions may result in adjusted rates and discounts.  

(i) Service Fees; Collection; Late Fees. Client agrees to pay Netchex for the Services at the rate set forth in the most recent Fee Proposal, subject to increases allowed under this Agreement, any accepted quote for Custom Development, payroll funds remitted by Netchex, year-end service fees and costs, Sales Taxes and Transactional Fees (defined below), and any Early Termination Fees under Section 1.11(e) in accordance with Client’s signed Funding Authorization Agreement. Client will also pay reasonable collection costs, including Professional Expenses regardless of whether litigation has commenced, and all other related costs Netchex may incur in the collection of said monies.  Client agrees that Netchex may assess late fee of 1.5% or the highest amount permissible by applicable law, whichever is lower, for each month past the due date set forth on the invoice.  All fees paid hereunder are fully earned when paid and are non-refundable. 

(ii) Annual Fee Increases; Monthly Minimums. Subject to the Fee Proposal and during the Term, Netchex may increase the monthly minimum payment and the fees  upon each anniversary of the Services by the amount set forth in the Fee Proposal, or if none is stated therein, then by not more than eight percent (8%).  Except where otherwise agreed in writing by the Parties, when implementing or increasing a monthly minimum PEPM payment, Netchex will set the monthly minimum PEPM payment at current prevailing market rate or ninety percent (90%) of trailing twelve (12) month average of Clients employee count multiplied by Client’s current PEPM rate.  

(iii) Support Services Fees. Netchex, in its sole discretion, may provide Support Services subject to Client’s agreement to pay applicable Support Services Fees. Prior to performing Support Services, Netchex will provide Client with a written description of the scope of such Support Services and an estimate of fees applicable to such Support Services. Client’s written approval of such scope and fees will serve as Client’s contractual commitment to pay the fees applicable to such Support Services. In the event that Client does not agree to pay the Support Services Fees applicable to Support Services, Netchex reserves the right, in its sole discretion, to discontinue the provision of such Support Services. 

(iv) End of Year Processing Fees & Delivery.  On an annual basis, Netchex will charge year end service fees and costs for Netchex to prepare annual tax reporting forms as part of the Payroll Services.  Service fees for these year end services are not included in the PEPM fees and will be billed separately on an annual basis.  Applicable year end service fees and costs are updated annually on the Netchex website (available at https://netchex.com/year-end-processing-fees-delivery/).  Mailing and delivery fees may apply and will be billed separately from the service fees at the current prevailing rate.

(v) Training and Travel. If Client requests in-person or on-site training from Netchex, Client must pay Netchex for its trainer’s time and travel in accordance with the rates quoted to Client by Netchex. 

(vi) Custom Development. Client must pay Netchex for Custom Development in accordance with the rates quoted to Client by Netchex. 

(vii) Client Requested Audit. If Client requests documents or information from Netchex in connection with an audit, certification, or other program, Netchex shall use reasonable efforts to assist in responding to the request, and Client shall reimburse Netchex for its reasonable costs and expenses associated with preparing its response, including employee time and reasonable Professional Expenses, if applicable. 

(viii) Sales Tax. Certain jurisdictions may require that applicable sales tax be assessed on any fees paid by Client. Client shall be responsible forpayment of any such sales taxes relating to the provision of the Services unless Client provides Netchex an exemption certificate acceptable to the appropriate authorities prior to the commencement of the Services. 

(ix) Transactional Fees. Notwithstanding anything to the contrary, certain transactional fees incurred by Netchex in the course of providing Services (“Transactional Fees”) will be passed on to Client. Transactional fees may include, without limitation, fees for banking services, tax services, payroll adjustments, and employee record services. Client acknowledges and agrees that it is responsible for payment of Transactional Fees and that such fees are subject to change at any time without prior notice. Changes to Transactional fees may result from factors including, without limitation, changes in banking fees, tax rates, regulatory or business factors that may impact Netchex’s expenses and the cost of providing the Services. A list of Transactional Fees is available upon request or accessible via the NetCommunity web portal.

(x) Material Reduction in Use or Inaccurate User Count. If the number of Users under any Fee Proposal decreases by more than fifty percent (50%) of the number of Users for which Client was billed in the prior month’s invoice (or, if in the first invoice, by the number of Users on which the Fee Proposal was based), Netchex may, in its sole discretion and upon written notice to Client, modify the Fee Proposal to adjust the pricing applicable to Client to reflect the actual number of Users of the relevant Services. 

(a) Ownership.  Netchex owns all Intellectual Property in and to the Services and all Custom Developments. No Custom Development may be deemed a work made for hire under the Copyright Act. Notwithstanding any contrary provision herein, no Intellectual Property is assigned to Client. Client agrees not to attack Netchex’s ownership or validity of any Intellectual Property, whether registered or unregistered, and this obligation will survive the termination or expiration of the Agreement.  

(b) License.  Subject to Client’s timely payment of fees and compliance with all provisions of this Agreement, Netchex hereby grants to Client a non-exclusive, revocable, non-transferable, non-sublicensable, limited right to access and use the Services and software, in object form only, solely for Client’s internal business purposes during the Services Term. Client acknowledges that all Intellectual Property licensed to Client hereunder is protected by U.S. copyright laws, international copyright treaties, as well as other intellectual property laws. Client agrees not to use, disclose, display, copy, or reproduce any Intellectual Property, except as expressly authorized by the Agreement. Netchex reserves all rights to Intellectual Property except as expressly granted by this Section 1.6. Client’s license to access and use the Services and Intellectual Property shall immediately terminate upon the expiration or termination of this Agreement and the relevant Services Term. 

(c) Trademarks; Publicity.  Neither Party may use the other Party’s trademarks without prior written authorization, except Client hereby authorizes Netchex to use Client’s name, trademark, and logo in marketing and publicity materials to identify Client as one of Netchex’s clients.  Subject to Client’s prior written approval, Netchex may use authorized quotes or feedback from Client’s personnel or reference Client in a case study for marketing purposes. 

(d) Client Feedback.   Client hereby grants to Netchex a perpetual, worldwide, irrevocable, royalty-free, payment-free license to use and incorporate any Client feedback into the Netchex Services, at Netchex’s sole discretion, without crediting or attributing such feedback to Client.  Feedback does not include Client Confidential Information. 

(a) Client Uses.  

(b) Netchex Offerings.  

(a) Ownership and Use of Data.  

(b) Security; Information Security Incidents. Netchex uses industry standard security measures to secure and back-up Client Data. To the extent required by applicable law, Netchex will notify Client in the event of an Information Security Incident involving Personal Data that has occurred within the Netchex systems. As the owner of Client Data, including any affected Personal Data, Client shall have the legal right to determine: (i) whether notice of the Information Security Incident is to be provided on its behalf to any individuals, regulators, law enforcement agencies, consumer reporting agencies or others as required by law or regulation, or otherwise at Client’s discretion, and (ii) the contents of such notice, whether any type of remediation may be offered to affected persons, and the nature and extent of any such remediation; and Client will defend, indemnify, and hold Netchex harmless from such determinations by Client. Notwithstanding the foregoing, nothing in this Agreement shall be construed to restrain Netchex from complying with any obligation Netchex has under Applicable Law to notify any person, entity, governmental authority, or other third party of any Information Security Incident.  

(c) Storage and Retention.  Netchex is not Client’s official record keeper. Accordingly, Client must keep its own copies of all Client Data provided to Netchex and has sole responsibility to conduct regular ongoing back up retention of all Client Data in the Services.  Client acknowledges that Client shall have no right to access the Services and any Client contained therein upon termination of the Services.  Limited system access after termination of the Payroll Services may be available for a separate fee. Client authorizes Netchex, and Netchex reserves the right to destroy Client Data that is at least six (6) years old (or a shorter period upon Client’s request) without prior notice to Client. Netchex will employ commercially reasonable storage and reasonable precautions to prevent the loss of or alteration to any Client Data in Netchex’spossession, but Netchex does not undertake to guarantee against such loss or alteration for any reason, including due to a Force Majeure Event. After the expiration or termination of this Agreement and the Fee Proposal, Netchex may destroy Client Data at any time. Netchex has no liability for deletion of Client Data as described in this Section 1.8(c). Notwithstanding any other provision herein, Netchex shall have no obligation to return or destroy Client Data (i) retained in standard archival or computer back-up systems or pursuant to the standard document retention practices of Netchex, (ii) to the extent required by legal requirements or by any governmental or regulatory authority, and/or (iii) shared with Netchex’s accountants or legal counsel, copies of which they may retain pursuant to their professional obligations. Any Client Data that qualifies as Confidential Information and is retained by Netchex as described in items (a) through (c) above shall be maintained as confidential and subject to the terms and conditions of this Agreement. 

(a) Initial Term. Client’s Initial Term begins on the effective date of the initial Fee Proposal and continues for the period stated therein (the “Initial Term”).  If no term duration is stated in the initial Fee Proposal, then the Initial Service Term will expire thirty-six (36) months from the Target Start Month. 

(b) Subsequent Fee Proposals; Extension of Term.  If Client agrees to a subsequent Fee Proposal for new Services during an active Services Term, the Services Term for all Services then in effect (the new Services ordered plus all Services Client currently receives) shall be extended for the period reflected in the latest Fee Proposal entered by Client.   

(c) Automatic Renewal.  This Agreement will automatically renew for successive periods of equal duration (each a “Renewal Term”), unless either Party provides written notice of non-renewal to the other Party at least ninety (90) days prior to expiration of the then-active Service Term.  At least thirty (30) days in advance of renewal, Netchex will provide written notice to Client of the fees and minimum monthly PEPM payments applicable to the first year of the Renewal Term.  Client’s continued use of the Services following notice renewal fee shall constitute Client’s acceptance of the Renewal Term, including associated fees and minimum monthly payments.  Any Client notices under this Section 1.11 shall be submitted to Netchex in writing to the addresses set forth in Section 1.16.  

(d) Renewal Term Fees.   Except as otherwise provided in the applicable Fee Proposal, Fees during any Renewal Term:  (i) shall be subject to an annual increase of not more than eight percent (8%) above the applicable tier pricing in the prior Subscription Term, unless the parties had agreedotherwise in writing or Netchex provides written notice of different pricing at least thirty (30) days prior to the applicable Renewal Term; (ii) shall be charged automatically or invoiced automatically upon each anniversary of the Services and at the start of each Renewal Term; and (iii) will not be lower than the Fees for the previous Term.  Any one-time promotions or discounts are limited to the then-current Term set forth on the Fee Proposal and may not apply to subsequent Renewal Terms.  

(e) Early Termination. Client hereby agrees to pay to Netchex an early termination fee (“Early Termination Fee”) if Client terminates a Fee Proposal for any reason other than as set forth in Section 1.11(g) or if Netchex terminates the Fee Proposal for cause in accordance with 1.11(g). The Early Termination Fee is the full amount of the fees due or payable to Netchex for the remainder of the applicable Services Term, calculated based on Client’s highest employee count of any month in the then-current Term, plus any unpaid fees or funding amount due and owing to Netchex. 

(f) Netchex Termination for Convenience. Notwithstanding anything to the contrary, Netchex may terminate this Agreement or the Fee Proposal for convenience at any time upon sixty (60) days’ prior written notice to Client. 

(g) Termination For Cause. Either Party may terminate this Agreement or the Fee Proposal for cause upon material breach of the Agreement, provided that the non-breaching Party provides prompt written notice of such breach, and the breaching Party fails to cure such breach (for breaches capable of cure) within fourteen (14) days of receipt of such notice.  Notwithstanding, Netchex shall have the right to immediately suspend access to Services and terminate this Agreement or any Fee Proposal upon written notice for Client’s (i) violation of Applicable Laws; (ii) gross negligence, willful misconduct, or fraud; (iii) failure to remit timely payment or to provide the funds required to allow Netchex to render Services under this Agreement, including non-sufficient funds (NSF) in Client account for ACH withdrawal;  (iv) no start or failure to meet Implementation Obligations in Section 1.4(a) or compliance obligations in Section 1.3; (v) breach of the exclusivity requirement set forth in Section 1.4(b); (vi) failure to provide valid ownership and controller information to Netchex; (vii) failure to pay NetBenefits and/or NetCOBRA related fees when due; (viii) Client’s breach of ACH Rules, Nacha Operating Rules, or applicable banking regulations,  (each, an “Uncurable Material Breach”). In the event of Client’s Uncurable Material Breach, in addition to all other rights and remedies available to Netchex under this Agreement, Netchex may immediately terminate this Agreement and Fee Proposal then in effect and require Client to pay Early Termination Fees.   

(h) Effects of Termination. Upon the expiration or termination of the Services Term: (i) Netchex will no longer be obligated to provide Services to Client; (ii) all licenses granted to Client under this Agreement, and Client’s right and ability to access the Services will terminate; and (iii) Client is responsible for payment of all fees due under this Agreement by ACH under the terms of the Funding Authorization Agreement. Provisions in this Agreement relating to obligations continuing beyond the end of the Term of the Agreement may survive, according to their respective provisions. In the event that any employees, agents, representatives, or personnel of Client (including Admins) continue to have access to any portion of the Services after the termination of this Agreement, the terms of this Agreement shall survive and Client shall continue to comply with the terms of this Agreement until such access has ended, unless the Parties agree to new or additional terms that will apply. 

(a) Limited Direct Damages. Neither Party will be liable to the other for any loss relating to or arising from any act or omission in its performance under the Agreement, whether in contract or tort, including negligence, except for direct and liquidated damages not to exceed the fees Netchex has collected from Client in the preceding twelve (12) months. 

(b) No Other Damages. Neither Party may be liable to the other for any indirect, special, incidental, consequential or punitive damages, including without limitation business interruption losses, lost business opportunities, lost profits and mitigation expenditures, lost access, loss or corruption of data, regardless of the form of the action, whether in contract or tort, even if the Parties have knowledge of the possibility of the damages. 

(c) Carve-Outs.  The foregoing limitations and exclusions in this Section 1.12 shall not apply to any Fees and funds due to Netchex hereunder, a Party’s indemnification obligations, or in the case of fraud or willful misconduct. 

(a) As Is. THE SERVICES ARE RENDERED, AND ANY INTELLECTUAL PROPERTY IS LICENSED, AS-IS. NETCHEX DISCLAIMS ALL IMPLIED WARRANTIES TO THE GREATEST EXTENT ALLOWED BY LAW AND DOES NOT AND CANNOT GUARANTEE THAT ITS SOFTWARE OR SERVICES ARE BUG OR ERROR FREE, NON-INFRINGING, OR WILL BE COMPLIANT AND TIMELY FOR CLIENT’S SPECIFIC NEEDS. TO THE EXTENT THEY WOULD OTHERWISE BE APPLICABLE, DISCLAIMED WARRANTIES INCLUDE, WITHOUT LIMITATION: WARRANTY OF MERCHANTABILITY, WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND WARRANTY AGAINST REDHIBITORY DEFECTS. NETCHEX WILL NOT BE RESPONSIBLE OR LIABLE FOR ANY FAILURE IN THE SERVICE RESULTING FROM OR ATTRIBUTABLE TO (1) CLIENT’S USE OF THE SERVICE NOT IN ACCORDANCE WITH THESE TERMS OR ANY NETCHEX DOCUMENTATION, (2) FAILURES IN ANY TELECOMMUNICATIONS, NETWORK OR OTHER SERVICE OR EQUIPMENT OUTSIDE OF NETCHEX’S SYSTEMS AND FACILITIES, (3) CLIENT’S OR ANY THIRD PARTY SERVICE’S CONTENT, PRODUCTS, SERVICES, NEGLIGENCE, ACTS OR OMISSIONS, (4) ANY FORCE MAJEURE OR OTHER CAUSE BEYOND NETCHEX’S REASONABLE CONTROL.  ALL SUPPORT AND CONSULTING SERVICES, INCLUDING ANY PROFESSIONAL SERVICES, ARE PROVIDED BY NETCHEX ON A COMMERCIALLY REASONABLE BASIS, WITHOUT WARRANTIES OR GUARANTY OF ANY KIND, DO NOT CONTAIN ANY TAX, LEGAL, OR COMPLIANCE ADVICE, AND MAY BE SUBJECT TO HUMAN ERROR.   CLIENT’S SOLE AND EXCLUSIVE REMEDY AS TO ANY AND ALL CLAIMS ARISING OUT OF THE SERVICES IS FOR NETCHEX TO RE-PERFORM THE DISPUTED PORTION OF THE SERVICES TO CLIENT OR REFUND TO CLIENT ANY PRE-PAID FEES APPLICABLE TO THE DISPUTED PORTION OF THE SERVICES. 

(b) No Professional Advice. In the course of providing the Services, Netchex may provide Client with general industry knowledge and practicesregarding the use of its products and other areas pertaining to the Services provided, such as reporting and withholding. However, in accordance with Section 1.3(e), Netchex does not and cannot render legal, accounting, financial or other similar professional advice, and Client must rely onits own professional advisors for such advice.  Client has sole responsibility to ensure any such Services made available by Netchex meets Client’s employment, tax, and compliance needs.

(c) Not Fiduciary.  Netchex and Client have entered into the Agreement at arms-length, and neither Party is a fiduciary of the other. Netchex is an independent contractor. 

(d) Use of Artificial Intelligence. Netchex uses Artificial Intelligence technologies (“AI”) to enhance certain services and improve user experience. Netchex’s use of AI may include, without limitation, customer service chatbots and other informational chat features or services (including, without limitation, AskHR and Recruit), personalized recommendations, automated data analysis, and predictive modeling. These tools are designed to enhance Client and user experiences and to improve the efficiency of Netchex Services. HOWEVER, DUE TO THE CONSTANTLY EVOLVING NATURE OF TECHNOLOGY AND AI, ALL AI FEATURES, AND ANY AI-BASED OR ASSISTED SERVICES, ARE PROVIDED TO CLIENT ON AN AS-IS BASIS WITHOUT WARRANTIES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR ACCURACY. CLIENT ACKNOWLEDGES THAT AI-GENERATED INFORMATION OR SERVICES MAY CONTAIN ERRORS AND BIAS AND MAY NOT PRODUCE COMPLETE, ACCURATE, OR UP TO DATE OUTPUT. CLIENT UNDERSTANDS AND AGREES THAT AI-GENERATED CONTENT OR SERVICES SHOULD BE USED SOLELY AS SUPPLEMENTARY INFORMATION AND NOT AS THE SOLE BASIS FOR DECISION-MAKING. NETCHEX IS NOT LIABLE FOR ANY CLIENT USE OR DECISIONS MADE BASED ON AI-GENERATED CONTENT, AI FEATURES, OR AI-BASED SERVICES, AND NETCHEX EXPRESSLY DISCLAIMS ALL LIABILITY FOR ALL SUCH CONTENT, INCLUDING, WITHOUT LIMITATION, FOR ERRORS, BIAS, INACCURACIES, OR MISREPRESENTATIONS PRODUCED BY AI.  CLIENT UNDERTAKES SOLE RESPONSIBILITY FOR ITS USE OF AI-BASED AND AI-ASSISTED PRODUCTS AND SHALL USE SUCH PRODUCTS AND SERVICES IN ACCORDANCE WITH CLIENT OBLIGATIONS UNDER APPLICABLE LAWS. 

(a) Client Indemnification. Client acknowledges that all Services rendered by Netchex are based upon the information furnished by the Client. Client will indemnify, defend, and hold Netchex harmless from any claim and against any and all losses, claims, damages, judgments, fines, penalties, interest, attorneys’ fees and disbursements, costs and expenses (including, if applicable, costs of investigation, notification related costs, and Professional Expenses), and amounts paid in settlement (collectively, “Losses”) against Client and/or Netchex arising out of: (i) Netchex’s use of Client Data; (ii) any unauthorized access to or disclosure of Client’s Netchex account or Client Data arising out of (A) Client’s failure to properly safeguard its account credentials, (B) Client’s disabling of, or failure to implement, security features provided or offered by Netchex, including without limitation multi-factor authentication, or (C) fraudulent or criminal acts of Client or third parties, including, without limitation, hacking or phishing; (iii) Client’s breach of its obligations under this Agreement; or (iv) any claim by an employee or User of Client, howsoever arising, including, without limitation, any claim alleging losses as a result of noncredit by Client of any deposit, or made by an employee as a result of the rejection of any debits because of Client’s failure to credit deposits to employee’s account.  

(b) Netchex Indemnification. Netchex will indemnify, defend, and hold Client harmless from and defend Client against any Losses arising from a third party claim or lawsuit brought against Client arising out of: (i) an  allegation that Client’s use of the Services in accordance with the terms of this Agreement infringe or violate such third party’s patent, copyright, trademark, service mark, or other intellectual property rights; and (ii)with relation to such claim, pay amounts finally awarded by a court against Client or included in a settlement approved by Netchex.  To obtain such defense and payment by Netchex, Client must promptly notify Netchex in writing of the claim, supply information requested by Netchexand cooperate in every reasonable way with Netchex to facilitate the defense and allow Netchex to have sole control. Client may, at its optionand at its own expense, participate with Netchex in the defense with counsel of its own choosing. Netchex in its discretion may obtain claimant’s permission for Client’s continued use of the applicable Service; replace Client’s access to or use of the applicable Service with substantially similar functionality that avoids the claim; or (d) terminate Client’s access to and use of the affected Service on written notice and adjust the Fees so that Client no longer pays for the terminated Service.  Netchex has no responsibility for third party claims arising fromservices and products that are not directly provided by Netchex, Third Party Services, Client instructions, Client violation of this Agreement, or any claims due to the violations of law or third party rights by Client.  THIS SECTION SETS FORTH CLIENT’S SOLE AND EXCLUSIVE REMEDY WITH RESPECT CLAIMS OF INTELLECTUAL PROPERTY INFRINGEMENT. 

(a) Entire Agreement. This Agreement and any attached or incorporated agreements, exhibits, addendums, and schedules reflect the entire agreement between Netchex and Client and supersedes all prior and contemporaneous written and oral negotiations, understandings, or agreements.  

(b) Mediation; Arbitration. Either Party wishing to initiate dispute resolution procedures with respect to a Dispute, must first submit the Dispute to mediation by giving the other Party written notice. The parties agree that any and all disputes, claims or controversies arising out of or relating to this Agreement shall be submitted to JAMS, or its successor, for mediation, and if the matter is not resolved through mediation, then it shall be submitted to JAMS, or its successor, for final and binding arbitration.  All offers, promises, conduct and statements, whether oral or written, made in the course of the mediation by any of the parties, their agents, employees, experts and attorneys, and by the mediator or any JAMS employees, are confidential, privileged and inadmissible for any purpose, including impeachment, in any arbitration or other proceeding involving the parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation.  Either party may initiate arbitration with respect to the matters submitted to mediation by filing a written demand for arbitration at any time following the initial mediation session or at any time following 45 days from the date of filing the written request for mediation, whichever occurs first (“Earliest Initiation Date“). The mediation may continue after the commencement of arbitration if both parties so desire.Subject to the foregoing, any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in the state of Louisiana before one arbitrator(s). The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures, and where applicable, pursuant to JAMS’ Streamlined Arbitration Rules and Procedures. Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction.  In any arbitration arising out of or related to this Agreement, the arbitrator(s) shall award to the prevailing party, if any, the costs and attorneys’ fees reasonably incurred by the prevailing party in connection with the arbitration. If the arbitrator(s) determine a party to be the prevailing party under circumstances where the prevailing party won on some but not all of the claims and counterclaims, the arbitrator(s) may award the prevailing party an appropriate percentage of the costs and attorneys’ fees reasonably incurred by the prevailing party in connection with the arbitration. 

(c) Choice of Law. This Agreement and all matters arising out of or relating to this Agreement, including any Disputes between the Parties to this Agreement, whether arising in contract, tort, statute, regulation, or otherwise, shall be governed by, construed, interpreted, and enforced in accordance with the laws of the State of Louisiana, without giving effect to its conflict of laws provisions, regardless of where any action may be brought. Client irrevocably consents to the personal jurisdiction of the courts located in the State of Louisiana. Notwithstanding anything to the contrary in this Agreement, either Party may commence and maintain an action or proceeding seeking injunctive or other equitable reliefor to enforce an arbitration award in any court of competent jurisdiction.  

(d) Severability and Reformation. If any provision of this Agreement is found to violate public policy or be contra bonos mores, then that provision alone should be reformed to be enforceable to the greatest extent allowed by law and consistent with the purpose of the original provision. Notwithstanding the foregoing, the balance of this Agreement should be enforced.

(e) Force Majeure. In the event of an occurrence of a Force Majeure Event, Netchex will have an additional thirty (30) days to perform the Services without being deemed to be in breach of this Agreement.

(f) Assignment; Change of Control. The prior written consent of Netchex is required before Client may assign this Agreement. If Client purports to assign this Agreement without the prior written consent of Netchex, then Netchex may, at its option, deem the assignment void ab initio or deem this Agreement materially breached. The sale or change in control of Client, or the transfer of all or a substantial portion of the assets to which this Agreement relates, will be considered an assignment requiring Netchex’s prior written approval under this paragraph. 

(g) Modification of Agreement. Netchex expressly reserves the right to modify the terms of this Agreement at any time without prior notice to Client. Except as otherwise specifically set forth herein, modifications shall become effective immediately upon publishing an updated version of this Agreement to the Netchex website. Netchex will retain the prior two (2) versions of this Agreement on its website, but the most recently published version shall govern the obligations of Netchex and Client. Client is responsible for regularly reviewing the terms of this Agreement on the Netchex website. Where Netchex has expressly agreed to provide Client with notice of changes (such as changes to invoicing dates or fees), notice will be provided to: (i) Client’s email address as set out in the applicable Fee Proposal or (ii) Client’s portal or admin page. Client is responsible for keeping its email address current and promptly notifying Netchex by email (pursuant to Section 1.16) of any changes to Client’s email address. CLIENT’S CONTINUED USE OF THE SERVICES FOLLOWING WRITTEN NOTICE OF MODIFICATIONS TO THE TERMS OF THIS AGREEMENT SHALL CONSTITUTE CLIENT’S AGREEMENT TO SUCH CHANGES.  

(h) Binding Authority. Client represents, warrants, and acknowledges that it has read and agrees to the terms of this Agreement, and agrees to be bound by its terms, and that the person agreeing on Client’s behalf has the authority to bind Client to the terms set forth herein. 

Netchex Physical Address:  
Attn: Contract Administrator  
1155 Highway 190 E. Service Road 
Suite 2 
Covington, LA 70433 

Required copy to: 
[email protected] 

(i) Standard Schedule: Client agrees to provide Netchex with accurate and complete payroll and tax information on or before 3:00 PM Central Standard Time at least two (2) banking days prior to each pay date. Netchex will then debit Client one (1) banking day prior to each pay date for the total amount of direct deposit, payroll tax liabilities, and premium pay and fees (if applicable). (e.g., If Client submits payroll information to Netchex on Wednesday, Netchex will debit Client’s account on Thursday, and Client’s employees will be paid on Friday).  

(ii) Standard Holiday/Weekend Schedule: If the Client’s pay date is on a Saturday, Sunday or bank holiday, then the Client must submitaccurate and complete payroll and tax information to Netchex three (3) banking days prior to pay date. Netchex will debit Client two (2) banking days prior to pay date for the total amount of direct deposit, payroll tax liabilities, and premium pay and fees (if applicable). (e.g., If Client submits payroll information to Netchex on Tuesday, Netchex will debit Client’s account on Wednesday, and the date Client’s employees’ Settlement Date will be Thursday since banks are closed for a holiday on Friday). 

(iii) Other Schedule: If Client does not follow the Standard Schedule set forth in Section 2.2(a)(i) above and a payroll is submitted one (1) banking day before pay date, Client must provide Netchex with accurate and complete payroll and tax information on or before 3:00 PM Central Standard Time AND Client must send a wire transfer to Netchex for the total amount of direct deposit, payroll tax liabilities, and premium pay (if applicable). Wire Transfer guidelines, time frames, and fees vary from bank to bank. Client should be familiar with Client’sbank’s policies before choosing this method. (e.g., If Client submits payroll information and sends a wire transfer to Netchex on Thursday, Client’s employees will be paid on Friday).

(i) Standard Schedule: Client agrees to provide Netchex with accurate and complete payroll and tax information on or before 3:00 PM Central Standard Time at least three (3) banking days prior to each pay date. Netchex will then debit Client two (2) banking days prior to each pay date for the total amount of direct deposit, payroll tax liabilities, and premium pay and fees (if applicable). (e.g., If Client submits payroll information to Netchex on Tuesday, Netchex will debit Client’s account on Wednesday, Client’s employees’ Settlement Date is Friday). 

(ii) Standard Holiday/Weekend Schedule: If the Client’s pay date is on a Saturday, Sunday or bank holiday, then the Client must submitaccurate and complete payroll and tax information to Netchex four (4) banking days prior to pay date. Netchex will debit Client three (3) banking days prior to pay date for the total amount of direct deposit, payroll tax liabilities, and premium pay and fees (if applicable). (e.g., If Client submits payroll information to Netchex on Monday, Netchex will debit Client’s account on Tuesday, Client’s employees’ Settlement Date is Thursday). 

(iii) Other Schedule: If Client does not follow the Standard Schedule above in Section 2.2(b)(i) and a payroll is submitted two (2) banking days before pay date, Client must provide Netchex with accurate and complete payroll and tax information on or before 3:00 PM Central Standard Time AND Client must send a wire transfer to Netchex for total amount of direct deposit, payroll tax liabilities, and premium pay (if applicable). Wire Transfer guidelines, time frames, and fees vary from bank to bank. Client should be familiar with Client’s bank’spolicies before choosing this method. (e.g., If Client submits payroll information and sends a wire transfer to Netchex on Wednesday, Client’s employees will be paid on Friday).