SUB-MERCHANT AGREEMENT

This Sub-Merchant Agreement (“Agreement”) is a legal agreement between Easy Pay Solutions, Inc. (“Easy Pay”), and the business entity (“Merchant”) set forth on the Merchant Application form (“Merchant Application”). This Agreement governs Merchant’s use of Easy Pay’s payment processing services (“Services”) and must be agreed to in order to use the Services.

1. PAYMENT CARD SERVICES

1.1 DESCRIPTION. The Services allow Merchant to accept payment from its customers using credit and debit cards or other payment devices or credentials (collectively “Card(s)”) validly issued by Visa U.S.A. Inc. (“Visa”), MasterCard International Incorporated (“MasterCard”), and DFS Services LLC (“Discover”). If Merchant elects and is approved, the Services may also allow Merchant to accept payment from its customers using Cards validly issued by American Express Travel Related Services Company, Inc. (“American Express”) as further set forth in this Agreement. Visa, MasterCard, Discover, and American Express are collectively the “Card Brand(s)”. Merchant must only use the Services for the business purpose described in Merchant’s Application and not for personal, family, or household use. Upon Easy Pay’s approval of Merchant’s Merchant Application and this Agreement, which shall be as of the date Easy Pay issues a merchant identification number to Merchant through which Merchant may submit Card transactions to Easy Pay for processing (“Effective Date”), Easy Pay grants Merchant use of the Services subject to and in accordance with the terms found in this Agreement and the individual Card Brand rules and regulations. Merchant will be deemed to have accepted this Agreement and will be bound by this Agreement upon the earliest of the Effective Date, Merchant’s (or Merchant’s representative’s or agent’s) electronic acceptance as set forth in Section 11.9, or Merchant’s submission of any transaction to Easy Pay for processing.

1.2 CARD ACCEPTANCE. When accepting Cards, Merchant will follow all procedures and rules set forth in the Policies and Rules (see Section 2.1, below). Merchant is responsible for identifying the person in whose name a Card is issued (“Cardholder”), such identification to be completed only in accordance with the Rules (defined below), and upon submission of a transaction for authorization Merchant warrants the identity of the customer as the Cardholder. Except as set forth in this Agreement, Merchant will honor, without discrimination, any valid Card properly tendered by a Cardholder for bona fide transactions for the purchase of goods or services from Merchant. Merchant may, in accordance with the applicable limited acceptance Rules, elect not to accept Visa and/or MasterCard branded credit or debit cards, but must provide Easy Pay with prior written notice of such election. If Merchant elects not to accept certain Cards as set forth in the previous sentence, Merchant will be solely responsible for ensuring it only accepts those Cards which meet its acceptance election and Easy Pay may process any transaction (and Merchant will be responsible for and pay all fees associated with such transaction) submitted to Easy Pay. Merchant will properly disclose to the Cardholder at the time of the Card transaction Merchant’s name, return policy, refund policy, and other limitations Merchant may have on accepting returned merchandise. Merchant’s refund polices for purchases made with a Card must be at least as favorable as its refund policy for purchases made with any other form of payment. Merchant will identify the Cardholder when accepting payment and will request the Card expiration date and ZIP code or postal code from the Cardholder’s billing address. To reduce the likelihood of fraud it is recommended that Merchant obtain the security code from each Card, but Merchant must not store this information.

1.3 CARD AUTHORIZATION. No later than 72 hours from the time Merchant initiates a transaction, but prior to completing such transaction, Merchant will request an authorization for such transaction using equipment meeting specifications determined by Easy Pay. This authorization request must include Merchant’s name and account identifier, the Card expiration date, the ZIP code of the customer’s billing address, and the total amount of the transaction, including taxes. Easy Pay may also require additional information in Merchant’s authorization request, including but not limited to: (a) the Card’s CVV2 code or the equivalent; (b) a brief description of the goods or services involved; (c) the transaction authorization number; and (d) if applicable, adjacent to the signature line, a notation that all sales are final or other return policy. For the avoidance of doubt, Merchant is responsible for displaying or requesting all applicable or required information, and Easy Pay may but shall not have any obligation to decline any transaction for which Merchant has not obtained sufficient information. Authorizations are not a guarantee of acceptance or payment of a transaction and do not waive any provision of this Agreement, or otherwise validate a fraudulent transaction or a transaction involving the use of an expired Card. Easy Pay may refuse to authorize any transaction. Easy Pay’s name will appear in conjunction with Merchant’s name on Cardholders’ statements. Under no circumstance will Easy Pay be responsible for processing credits or adjustments related to transactions not originally processed by Easy Pay. All transactions and deposits are subject to Easy Pay’s audit and final verification and may be adjusted for inaccuracies without notice to Merchant. All credits (including the proceeds from processed transactions) provided to Merchant are provisional and subject to Chargebacks/Disputes and adjustments in accordance with the Rules, whether or not a transaction is charged back or disputed by the Card issuer.

1.4 SALES TRANSMITTALS. Merchant will retain a copy of the sales transmittal for the completed transaction and other evidence of each transaction in accordance with the Rules for 25 months or such longer period as the Rules may require. Within two business days after the transaction date, two business days after the delivery of merchandise for a delayed merchandise delivery, or such shorter time set forth in the Rules, Merchant will provide all sales transaction records (or credit vouchers) to Easy Pay. Within three business days of Easy Pay’s request, Merchant will produce and provide to Easy Pay copies of all requested sales transmittals and other transaction evidence. In addition to other Chargeback/Dispute rights set forth in this Agreement and in the Rules, Easy Pay may chargeback any transactions for which a copy of the sales transmittal and other evidence is not provided in accordance with this section. The preparation and delivery to Easy Pay by Merchant of transactions shall constitute an endorsement to Easy Pay by Merchant of each such transaction. Easy Pay may refuse to process any transaction which, in whole or in part, it could charge back to the Merchant. Easy Pay’s performance of the Services, including but not limited to any compliance case responses, interchange qualification, or transaction stand-in shall not affect Merchant’s obligations or liability under this Agreement.

1.5 MULTIPLE ACCOUNTS. Merchant may request multiple accounts with Easy Pay to allow for easier reporting of transactions. If Easy Pay approves additional accounts, Merchant is responsible for any additional fees or costs. These additional accounts collectively count toward the last updated underwriting limits Easy Pay sets for Merchant. Merchant will not open or use a processing account, or otherwise receive payment processing services or any other services similar to the Services from any party other than Easy Pay during the term of this Agreement.  Easy Pay does not prohibit a submerchant from using terminal services offered by competitors to deliver transactions captured at the point-of-transaction directly to VisaNet for clearing and settlement.

1.6 PROCESSING LIMITS. Easy Pay may assign a maximum dollar amount per sales ticket and an aggregate maximum dollar amount of Card transactions and/or dollar volume per calendar month. Merchant may request to increase these limits, but any increase shall be at Easy Pay’s sole and absolute discretion. Easy Pay may also decrease such maximum amounts at any time at Easy Pay’s sole and absolute discretion, even if such amounts were previously authorized or increased. If Merchant submits one or more transactions which would cause Merchant to exceed any maximum set by Easy Pay, Easy Pay may, at its sole discretion, either: (a) process the transactions; (b) process the transactions but cause all or a portion of the proceeds of such transactions to be placed in a Reserve Account (defined below); or (c) return a decline code for each such transaction.

2. COMPLIANCE WITH THE RULES AND LAWS.

2.1 LAWS, RULES & POLICIES. The Card Brands have established guidelines, merchant monitoring programs, and reports to track merchant activity such as excessive credits, Chargebacks/Disputes (defined below), and increased deposit activity. If Merchant exceeds the guidelines or submits suspicious transactions, Merchant may be subject to: (a) fee increases; (b) settlement delay or withholding; (c) termination of this Agreement; (d) an audit and imposition of fines; or (e) required implementation of transaction monitoring or risk mitigation programs. Merchant must comply with all applicable rules, regulations, policies, procedures, guidelines, and other requirements issued by the Card Brands (including but not limited to Visa’s Cardholder Information Security Program and MasterCard’s Site Data Protection Program), the PCI Security Standards Council, LLC (“PCI Standards” which shall include, without limitation, the Payment Card Industry Data Security Standards and the Payment Application Data Security Standards), and the National Automated Clearing House Association (“NACHA”) (collectively, “Rule(s)”). An abridged version of the Visa, MasterCard, American Express, and NACHA Rules may be viewed at each of their respective websites. Merchant agrees to comply with all applicable federal, state, and local laws, rules, and regulations (“Law(s)”). Merchant further agrees to comply with the then-current terms of Easy Pay’s privacy policy found at https://easypaysolutions.com/privacy-policy/, GDPR Privacy Policy found at https://easypaysolutions.com/gdpr-privacy-notice/, and its HIPPA policy as found at https://easypaysolutions.com/hipaa-business-associates-agreement/ (“Policies”), each of which may be changed or updated by Easy Pay from time-to-time at its sole discretion. Merchant is responsible for monitoring such website and any modifications to such Policies, as Easy Pay may, but is not required to, provide Merchant notice of any change or modification to the Policies. Easy Pay, in its sole discretion, may suspend Merchant’s use of the Services to investigate suspicious or unusual activity, and Easy Pay will have no liability for any losses Merchant may attribute to this suspension. Easy Pay may reverse ACH or Card transactions it deems to violate this Agreement, the Laws, Rules, or Policies, or as otherwise required by the Card Brands, and Merchant agrees to reimburse Easy Pay for such reversals. If any terms of this Agreement conflict with the Rules, the Rules will govern. Easy Pay will not be obligated to take any action which Easy Pay believes would cause it to violate any Rule or Law, nor will Easy Pay be prohibited from taking any action which Easy Pay believes is necessary to comply with any Rule or Law. In accordance with the Rules and Policies, the descriptor field for processed transactions will include Easy Pay’s name, and/or an abbreviation thereof.

2.2 RECURRING TRANSACTIONS. Merchant must obtain the customers prior written consent for recurring transactions, including a description of the product or service and the frequency and duration of the recurring charge, and the amount of the charge (if known) or provide adequate statements and notice prior to such charge if the amount is unknown. Merchant must notify the Cardholder that he or she may cancel recurring billing charges at any time and provide a copy of the signed consent to the customer. Merchant must retain evidence of such written consent for 24 months from the date Merchant submitted the last recurring billing charge. Merchant will honor any customer cancellation, and if this Agreement is terminated for any reason, Merchant will, at its own cost, advise all customers to whom Merchant submits recurring billing charges that it no longer accepts Cards or ACH transactions for amounts owed.

2.3 USE OF TRADEMARKS. During the Term, Merchant may, and if required will, use Card Brand trademarks and logos pursuant to the terms of the Rules. At any time Easy Pay, Sponsor Bank, or any Card Brand may, in its sole discretion, prohibit Merchant’s use of these marks or require changes to Merchant’s use of the marks. The Card Brands are the sole and exclusive owners of their marks. Merchant’s right to use the Card Brand marks will immediately cease upon termination of this Agreement.

2.4 INFORMATION SECURITY. Merchant will be solely responsible for the security, quality, accuracy, and adequacy of all transactions and information supplied under this Agreement and will maintain adequate audit controls to monitor the security, quality, maintenance, and delivery of such data. Without limiting the foregoing, Merchant must remain in compliance with the PCI Standards and take all steps necessary to ensure customer data (including but not limited to Cardholder data, bank account information, and any other personally identifiable or sensitive information) is not disclosed, misused, or subject to unauthorized access. This includes, but is not limited to, keeping secure all systems and media containing account, Cardholder, or transaction information (physical or electronic) and destroying in a manner that will render the data unreadable all such media that is no longer necessary or appropriate to store. Merchant shall, within thirty days of the Effective Date, and on an annual basis thereafter (or more frequently if so required by Easy Pay), obtain from an independent third party acceptable to Easy Pay a certification of compliance with the PCI Standards and submit a copy of such certification to Easy Pay. Easy Pay’s acceptance of such certification does not constitute a representation or certification that Merchant is compliant with the PCI Standards, nor does it relieve Merchant of any of its obligations or liabilities related to compliance with the PCI Standards or other data security obligations in this Agreement. If Merchant stores Cardholder account numbers, expiration dates, bank account information and other personally identifiable data in a database, Merchant must follow Card Brand guidelines on securing such data. Merchant may not retain or store magnetic stripe or CVV2, CVC2, or CID data after authorization. If there is an actual or suspected breach of or unauthorized access to customer data or other personally identifiable information, Merchant must immediately: notify Easy Pay; cooperate with Easy Pay’s, Sponsor Bank’s, and Card Brand’s requests for information; take any action designated by Easy Pay or Sponsor Bank to remedy and/or address the breach; prevent further unauthorized access or use of such information; and comply with all Rules and applicable Laws. Merchant shall maintain industry “best practices” regarding continuity procedures and systems to ensure security of customer account information, including but not limited to restricting access to such information to those employees who need to know for the sales and transaction process, maintaining security hardware and software (such as firewalls, anti-malware, anti-virus, and encryption), and storing such data in systems without a direct internet connection. Merchant must ensure all customer data is protected from unauthorized access or use in the event of a disruption, disaster, or failure of its respective data storage system and/or facility. Merchant agrees to display its consumer privacy policy on its website as well as its security method for transmission of payment data and will include in such policy the right to provide such data to Easy Pay, Sponsor Bank, and the Card Brands for each of their respective uses in accordance with this Agreement.

2.5 THIRD PARTY SERVICE PROVIDERS. Merchant may use services, equipment, or software provided by a third party in connection with, or to assist Merchant in, processing transactions, including but not limited to gateways, terminals, fraud identification software, accounting software, sales management or operations software, and other value-add services, equipment, and software. Merchant must notify Easy Pay prior to using any third party that will have access to payment data and Merchant is solely responsible for ensuring each such third party’s compliance with Rules, Laws and Policies, including but not limited to registration with the Card Brands and compliance with the PCI Standards. Merchant will be solely responsible for the costs and expenses of registering or certifying such third party, if registration or certification is necessary, and maintaining such registration or certification. Merchant is solely responsible for performing due diligence regarding the fitness and suitability of any third-party service provider, and Easy Pay shall have no responsibility or liability to Merchant or any third party for the actions or omissions of such third party, even if Easy Pay or Sponsor Bank introduced, recommended, or never objected to such third-party service provider. Easy Pay may, but is under no obligation to, prohibit any third-party services, equipment, or software which Easy Pay, in its sole discretion, deems harmful to Easy Pay’s systems or operations; in violation of any Rule, Law, or Policy; a security risk; or otherwise undesirable.

2.6 CONFIDENTIALITY. The terms of this Agreement, all communications regarding the Services, all Cardholder data, all customer payment information, all customer bank account information, and all information and data belonging to or relating to Easy Pay’s business, Sponsor Bank, or the third party services providers Easy Pay or Sponsor Bank uses (including but not limited to finances, systems, methods, techniques, policies, marketing material, plans, strategies, records, credentials, user names, access codes, manuals, software, documentation, product specifications, service plans, account numbers, systems, programs, devices, operations, source code, objective code, APIs, SDKs, and all other non-public information) are Easy Pay’s confidential information. Merchant will safeguard and retain in strictest confidence such confidential information using the same degree of care, but no less than a reasonable amount of care, that Merchant uses to protect its own confidential information. In all cases Merchant will protect the Confidential Information in accordance with the PCI Standards. Merchant will not disclose or use, directly or indirectly, any such confidential information except as necessary to fulfill its obligations under this Agreement. Except to the extent specifically permitted by the Rules, or as approved in writing by Easy Pay, Merchant will limit disclosing such confidential information to its employees with a specific need to know such information solely to fulfill Merchant’s obligations under this Agreement. Merchant will not, and will ensure its third party service providers do not, retain any portion of the magnetic strip data subsequent to the authorization of a transaction, nor any other data the retention of which is restricted by the Rules. Merchant understands and agrees that, other than to the extent prohibited by Law, nothing in this Agreement will reduce or impair Easy Pay’s ability to use or disclose any information obtained by Easy Pay pursuant to this Agreement, and that Easy Pay is contractually obligated to provide copies of all such information upon request to Sponsor Bank and certain of Easy Pay’s third party service providers.

2.7 AUDIT. At any reasonable time upon notice to Merchant, Merchant shall allow auditors, including but not limited to the auditors of any Card Brand, Sponsor Bank, or those third-party auditors appointed by Easy Pay, to review the files held and the procedures followed by Merchant at any or all of Merchant’s offices or places of business. Easy Pay agrees that should it conduct an audit which is not required by the Rules, Law, or Policies, or which is not requested by a Card Brand, Sponsor Bank, or regulatory agency, such audit will be at Easy Pay’s sole expense (unless such audit uncovers a breach of this Agreement in which case Merchant shall reimburse Easy Pay for the costs of such audit), otherwise the audit shall be at Merchant’s expense. Merchant will assist all such auditors as necessary for them to complete their audit.  The merchant, if undergoing a forensic investigation, must fully cooperate with the investigation until completed.

2.8 TRANSACTION DEPOSIT CONDITIONS. A Merchant must not submit a Deposit for a Transaction until one of the following occurs:

• The Transaction is completed.
• The merchandise or services are shipped or provided. This does not apply if the Cardholder has paid an Advance Payment.
• The Merchant, Sponsored Merchant, Marketplace, or Digital Wallet Operator has fulfilled the conditions of its agreement with the Cardholder for an Installment Transaction, a Recurring Transaction, or an Unscheduled Credential-on-File Transaction.
• A Merchant must only submit a Deposit for a Transaction that it has completed with a Cardholder.

3. MERCHANT OBLIGATIONS.

3.1 MONITORING, DISPUTES & REFUNDS.

• (a) MERCHANT’S DUTY TO MONITOR ACCOUNT & NOTIFY EASY PAY OF UNAUTHORIZED ACCESS OR TRANSACTIONS. Easy Pay will not, and has no obligation to, confirm the validity of the recipient or transaction Easy Pay receives. Easy Pay assumes no liability for any unauthorized transfer request and the attendant transfer of funds. If Easy Pay receives appropriate and timely notice by Merchant of an unauthorized transfer request prior to the completion of such transfer and with enough time to act on such notice, Easy Pay will use commercially reasonable efforts to prevent such unauthorized transfer, provided however that Easy Pay will have no liability associated with any failure to prevent such unauthorized transfer. Merchant must inspect and reconcile its transaction history and deposits daily. Merchant must report: (i) any possible errors within thirty (30) days of the end of the month in which the error is made or Merchant waives all claims related to the alleged error; (ii) unauthorized access to its account immediately, by sending an email to [email protected] that includes: (1) Merchant’s name and account number; (2) the dollar amount of the asserted error; (3) a description of the asserted error (referencing specific transactions if applicable); and (4) an explanation of why you believe an error exists and, if known, the cause of the error. The email notice must not include any full Social Security Number, Card number, or verification number. Under no circumstances will Easy Pay have any liability for an unauthorized transaction (Card, ACH, or otherwise).
• (b) EASY PAY’S INVESTIGATION & RESOLUTION. Merchant may not make a claim against Easy Pay for any loss or expense relating to any asserted error or unauthorized transaction for 60 days following Easy Pay’s receipt of your email notice referenced above. During that 60 day period, Easy Pay will be entitled to investigate the asserted error or unauthorized transaction. Easy Pay will advise you of the results of our investigation and if Easy Pay has made an error, Easy Pay will correct it promptly. However, Easy Pay reserves the right, in its sole discretion, to take up to 50 days to investigate your complaint or question (95 days for transactions at a point-of-sale terminal or outside the United States). Should Easy Pay elect to extend the time it takes to investigate your complaint or question, Easy Pay may, but will not be obligated to provisionally re-credit Merchant for the amount Merchant thinks is in error, so that Merchant will have use of the money during the time it takes Easy Pay to complete our investigation. If Easy Pay determines that there was no error, Easy Pay will send you an explanation via email of the determination and Easy Pay may debit any provisional credit, any fees, and/or interest provisionally credited in relation to the alleged error. If Easy Pay discovers a processing error, Easy Pay will rectify the error. If the error results in Merchant receiving more money than to which Merchant was entitled, then Easy Pay reserves the right to correct the transactions that were incorrectly executed, including but not limited to debiting Merchant’s account, regardless of the nature and cause of the error.
• (c) DISPUTES, INQUIRIES, AND CHARGEBACKS. Merchant is responsible for resolving any disputes between Merchant and a Cardholder. Easy Pay or its third-party service providers will handle inquiries from a Card Brand, the Card Brand dispute resolution process (if applicable) between Merchant and any Cardholder, and credits. Based on Cardholder disputes Easy Pay, Sponsor Bank, the Card Brands, or any Cardholder may dispute Card transactions (“Chargebacks”), and Easy Pay will offset the value of such Chargebacks from amounts due to Merchant (including but not limited to the proceeds of transactions processed) or otherwise withdraw the amount of such Chargebacks from Merchant’s depository account on file with Easy Pay through an ACH transaction. Absent written instructions otherwise provided prior to any Chargeback, Merchant hereby authorizes Easy Pay or its third-party service providers to resolve Chargebacks and respond to retrieval requests and inquiries once Easy Pay has determined it has all necessary information and instructions related to such Chargeback without further inquiries of or consultation with Merchant. Merchant will not ask or require any Cardholder to waive their dispute rights. Merchant agrees to maintain a sufficient balance in its depository account on file with Easy Pay to cover all Chargebacks incurred by Merchant. Merchant must not reenter or reprocess any transaction that has been charged back, but instead allow the chargeback process to proceed to its conclusion as described in each Card Brand’s Rules. If Merchant disagrees with a chargeback, Merchant may request a chargeback reversal within the applicable Card Brand’s timeline in its Rules. “Excessive Activity” means: Chargebacks in excess of .50% of the transaction ratio of Merchant’s Card transactions; Chargebacks in excess of .50% of the transaction ratio of the dollar amount of Merchant’s Card transactions; returns in excess of 3% of the transaction ratio of Merchant’s Card transactions; or, denied transactions in excess of 5% of the transaction ratio of Merchant’s Card transactions. The existence of Excessive Activity will be a breach of this Agreement that may result in additional action as Easy Pay deems necessary, such as suspension of processing privileges, creation of a Reserve Account, or an increase in the amount required to be retained in a Reserve Account. Easy Pay may decline, revoke, or reverse any credit given to Merchant where: (1) the transaction (Card or ACH) was not made in compliance with this Agreement and the Laws, Rules, and Policies; (2) the customer or Cardholder disputes liability for any reason, including but not limited to those Chargeback or return rights enumerated in the Rules; (3) the transaction was not directly between Merchant and the Cardholder; or (4) a deposit to Merchant’s account was made erroneously.
• (d) REFUND CREDITS. Merchant must issue a credit memorandum rather than making a cash advance, disbursement, or refund on any Card transaction. Easy Pay will debit from the amounts owing Merchant for the total face amount of each credit memorandum or withdraw the amount of such credit memorandum from Merchant’s bank account on file with Easy Pay through an ACH transaction. Merchant will maintain a sufficient balance in its bank account to cover all issued credit memorandums. Merchant will not submit a credit memorandum relating to any Card transaction not originally submitted to Easy Pay, nor will Merchant submit a credit memorandum that exceeds the amount of the original Card transaction. Merchant will, within the time period specified by Law, provide Easy Pay with a credit memorandum or credit statement for every return of goods or forgiveness of debt for services that were the subject of a Card transaction.

3.2 PROHIBITED PRACTICES. Merchant will not present for processing or credit, directly or indirectly, any transaction not originated as a result of a Card transaction between Merchant and a Cardholder, or any transaction Merchant knows or should know to be fraudulent, illegal, or not authorized by the Cardholder.  Transactions must be legal in both the cardholder’s and merchant’s jurisdiction.  Easy Pay will refer perpetrators of fraudulent transactions to law enforcement. Merchant must not honor any Card that is expired or listed on a current Electronic Warning Bulletin file, even if authorization has been obtained. Merchant must not accept any payments from a Cardholder relating to previous charges for merchandise or services, and if Merchant receives such payments, it must promptly remit them to Easy Pay. Merchant must not attempt authorization on a Card twice for the same transaction, or reenter or reprocess any transaction that has been charged back. Merchant may not split a transaction into multiple Card transactions except when: (a) partial payment is entered on the transaction record and the balance of the transaction amount is paid in cash or by check at the time of transaction; or, (b) the amount represents an advance deposit in a Card transaction completed in accordance with the Rules. Merchant will not use the Services to accept amounts representing the refinancing of an existing uncollectible obligation, debt, or dishonored check of a Cardholder. Merchant must not process transactions for, receive payments on behalf of, or (unless required by Law) redirect payments to a third party. Merchant must not engage in any activity that is deceptive, unfair, abusive, predatory, or otherwise violates any applicable Law. Merchant must not submit transactions for products or services other than those set forth on the Merchant Application and will immediately notify Easy Pay of any events which, individually or collectively, would cause material changes in Merchant’s ability to fulfill its obligations under this Agreement. Prohibited Practices include:

• Illegal transactions – Submitting any transaction into the payment system that is illegal or that the merchant knows or should have known was illegal. Transactions must be legal in both the cardholder’s and merchant’s jurisdiction.
• Written cardholder information – A merchant may not: Require a cardholder to complete a postcard or similar device that includes any of the following in plain view when mailed: the cardholder’s account number, card expiration date, signature, or any other card account data.
• Request a Card Verification Value 2 (CVV2) from the cardholder for a card-present environment transaction3. EU region: Request the Card Verification Value 2 (CVV2) data on any paper order form.
• Store Card Verification Value 2 (CVV2) information subsequent to authorization.
• Minimum/maximum transaction amount – U.S. or U.S. Territory: Establishing a minimum or maximum transaction amount as a condition for honoring a Visa Card, except for a transaction conducted with a Visa Credit Card issued in the U.S. or a U.S. Territory.
• Disbursement of funds – Disbursing funds in the form of cash to a Visa cardholder unless:
  • − The merchant is participating in Visa Cash-Back Services, a financial institution providing a manual cash disbursement, a hotel or cruise line, as specified in the Visa Rules.
  • − The merchant is dispensing funds in the form of travelers cheques, Visa TravelMoney Cards, or foreign currency. In this case, the transaction amount is limited to the values of the travelers cheques, Visa TravelMoney Card, or foreign currency plus any commission of fee charged by the merchant.
• Travelers cheques – Disbursing funds in the form of travelers cheques, if the sole purpose is to allow the cardholder to make a cash purchase of goods and services from the merchant.
• Transaction laundering (factoring) – Accepting a transaction that does not result from an act between the cardholder and the merchant or the cardholder and the sponsored merchant. Payment facilitators may deposit a transaction between the cardholder and a sponsored merchant of the payment facilitator but must not deposit a transaction on behalf of another payment facilitator.
• Account numbers – Request or use an account number for any purpose other than as payment for its goods or services.

3.3 TRANSACTION RESTRICTIONS. Merchant will not submit any transaction to Easy Pay which (a) adds any surcharge, unless Merchant has properly notified Easy Pay and the Card Brands and such surcharge is compliant with the Rules and Law; (b) adds any tax to the transaction, except for those taxes allowed or required by Law, and all such required or allowed taxes must be included in the transaction amount and not separately collected; (c) received any authorization response other than “approved” or for which an authorization was not obtained; (d) is for products that have not yet shipped or services have not yet been performed; (e) is made up of multiple authorization requests for amounts less than the total sale amount; (f) results in the disbursement of cash, scrip, or cash equivalents; or (g) involves any goods or services which are counterfeit or infringe on any party’s intellectual property rights. Merchant will not submit any refund or credit to Easy Pay which: does not result from a sales transaction processed by Easy Pay; exceeds the amount shown on the original sales transaction; is not credited to the Card used in the original sale transaction (or for which the original sales transaction did not involve a Card); would result in an overdraft; or more than two days after a non-disputed request or a regulatory requirement granting the customer a right to a refund. If Merchant, or any third-party service provider or vendor of Merchant, adds any surcharge to a transaction submitted to Easy Pay, Merchant represents and warrants to Easy Pay that (x) Merchant has reviewed and approved such surcharge; (y) such surcharge is compliant with all Rules and Law; and (z) Merchant has fully complied with the requirements set forth in part (a) of this Section 3.3.

3.4 AMERICAN EXPRESS. This section applies only if Merchant elects to accept American Express Cards. If there is a conflict between this section and any other section of this Agreement as it applies to American Express Cards, then this section governs.   A. CUSTOMER SERVICE INFORMATION. Merchant must maintain customer service information that is readily available for review by American Express Cardholders transacting with you. The customer service information should provide clear instructions on how to contact you, including an active customer service email address and telephone number.   B. THIRD-PARTY BENEFICIARY.  Merchant understands and covenants that it is not a third-party beneficiary under Easy Pay’s (or Easy Pay’s third-party service provider’s) agreement with American Express, including all schedules and exhibits and the American Express Rules. Merchant acknowledges and agrees that American Express is a third-party beneficiary under this Agreement between Merchant and Easy Pay. This means American Express has the rights, but not the obligation, to enforce the terms of this Agreement against Merchant.   C. AUTHORIZATIONS. If and when appropriate, Merchant authorizes Easy Pay to submit American Express Card transactions to, and receive payment from, American Express on Merchant’s behalf. Merchant authorizes Easy Pay to disclose Card transaction data and data about Merchant to American Express, its affiliates, agents, subcontractors, and employees, and further authorize these entities to use such information to perform services, operate and promote the American Express network, perform analytics, and create reports, and for any other lawful business purpose, including as described in the American Express Rules. Merchant authorizes American Express to use Merchant’s name, address, and website address in any media.  D. AMERICAN EXPRESS ARBITRATION.  Any dispute between Merchant and American Express shall be resolved on an individual (not class) basis by binding arbitration in accordance with the rules of the American Arbitration Association or JAMS. Merchant will be responsible for paying its share of any arbitration fees (including filing, administrative, hearing or other fees), but only up to the amount of the filing fees Merchant would have incurred if Merchant had brought a claim in court. American Express will be responsible for any additional arbitration fees. American Express will not elect arbitration for any claim Merchant properly files in a small claims court so long as such claim is pending only in that court.

3.5 RESERVE. Easy Pay reserves the right to require additional reserves (as set forth in the Section 5.4) or impose other conditions on Merchant in Easy Pay’s sole discretion, including but not limited to cash collateral, guarantors, additional underwriting, or any condition required by the Rules or Card Brands. Merchant will not be entitled to any interest on amounts held in a Reserve Account.

3.6 OBLIGATIONS. Notwithstanding anything to the contrary in this Agreement: (a) Merchant is solely liable for all transactions submitted in connection with this Agreement, including but not limited to all acts, omissions, cardholder disputes, or any related fees, fines, assessments, or charges which arise in connection with such transactions; (b) Merchant will only submit transactions to Easy Pay which were originated in the United States; (c) Merchant will maintain reasonable insurance coverage based on its business type, size, and operations, including but not limited to an errors and omissions policy and a data/computer security and privacy policy in amounts which cover Merchant’s activities, obligations, and potential liability; and (d) Merchant will ensure transaction amounts and billing process, including without limitation any service fees, convenience fees, transaction fees, or other surcharges charged by Merchant are fully compliant with the Law and Rules. Merchant understands and agrees that Easy Pay may refuse to process any transaction, Chargeback, or other credit in Easy Pay’s sole discretion. If Merchant is anticipated to process more than $1,000,000 in Visa transactions or more than $1,000,000 in MasterCard transactions in any twelve-month period, as such amounts may be adjusted by Visa and MasterCard from time-to-time, Merchant hereby agrees to automatically become party to the Tri-Party Agreement set forth below. Merchant is solely responsible for monitoring its processing volume and upon such transition, Merchant’s continued use of the Services shall be deemed Merchant’s consent to be bound by the terms of such agreement.

3.7 REPORTING. Reporting and invoices will be provided by Easy Pay through the software solution through which transactions are submitted to Easy Pay in accordance with Easy Pay’s standard operating procedures or the standard operating procedures of the provider of such software solution. It is Merchant’s obligation to print and retain each report and invoice. Easy Pay makes no representation or guaranty as to the availability of such reports or invoices and they may be removed from the software solution Merchant uses at any time. The structure and organization of reports and invoices may be modified by Easy Pay at any time in its sole discretion. Merchant will timely review all reports, notices, and invoices prepared by Easy Pay or its third-party service provider which are provided or accessible through the software solution used by Merchant. In addition to the other notification rights provided in this Agreement, Easy Pay may send notice of any price changes permitted under this Agreement through written notice or through a posting or notification in the software system used by Merchant. Merchant’s failure to notify Easy Pay that it has not received settlement funds within two (2) business days from the date that settlement was due to occur, or failure to reject any report, notice, or invoice within thirty (30) days from the date such report, notice, or invoice was made available to Merchant shall constitute Merchant’s acceptance of the same. For the avoidance of doubt, and in addition to all other limitations on Easy Pay’s liability under this Agreement, Easy Pay will have no liability for any error, omission, or inaccuracy not reported to Easy Pay within thirty (30) days of Easy Pay’s issuance of an invoice or report on which such error or inaccuracy is included or from which any amount or other consideration is omitted (and it is Merchant’s sole responsibility to ensure the provider of the software Merchant uses, licenses, or purchases provides all such invoices, reports, and notices to Merchant).

3.8 IMPLEMENTATION. Merchant will, at Merchant’s sole expense, take all necessary steps to, and shall, promptly convert to use of Easy Pay’s Services under this Agreement no later than thirty (30) days after the execution of this Agreement. Merchant understands that the Services will be provided in accordance with Easy Pay’s current systems, standards, and procedures and Easy Pay shall not be required to perform any special programming or provide any special hardware or software to implement any other system, program, or procedure for Merchant. Unless otherwise agreed in writing by Easy Pay, all transaction, settlement, and other data will be provided in Easy Pay’s then-current data formats using Easy Pay’s then-current protocols and methods. Easy Pay may make changes to the Services at any time in its sole discretion, including but not limited to changes associated with technological developments, legislative or regulatory changes, or the introduction of new services. Merchant will comply with all time deadlines, equipment and software maintenance, and upgrade requirements Easy Pay may reasonably impose from time-to-time.

4. RIGHTS

4.1 VERIFICATION. Merchant authorizes Easy Pay to make business and personal credit inquiries (including, but not limited to, credit reports for Merchant’s directors, officers, and principals), identity-verification inquiries, transaction-verification inquiries, and any other inquiries considered necessary or desirable by Easy Pay relating to this Agreement, and to provide any information and documentation to Sponsor Bank and/or the Card Brands as required by them, including but not limited to transaction information, financial information, personal information, credit reports, and copies of all other materials in Easy Pay’s possession. Merchant also authorizes any person or credit reporting agency to compile information to answer those inquires of Easy Pay and to furnish all requested information to Easy Pay. Merchant agrees to include the address of its permanent establishment on its website and prominently inform its customers of its identity at all points of interaction in using the Services. Easy Pay may review Merchant’s books and records to confirm or assess compliance with the terms and conditions of this Agreement. Any such review will be conducted during normal business hours at a place reasonably designated by Merchant.

4.2 DATA OWNERSHIP AND USE. Easy Pay will own all data associated with Merchant’s use of the Services. Merchant grants Easy Pay a perpetual, irrevocable, sub- licensable, assignable, worldwide, royalty-free license to use, reproduce, electronically distribute, and display this data for the following purposes: (a) providing and improving the Services; (b) internal usage, including but not limited to, data analytics so long as such data is anonymous and aggregated with other merchant data; (c) complying with legal requirements and assisting law enforcement agencies; and (d) any other purpose for which Merchant provides consent. Easy Pay may provide copies of all such data to those third-party service providers and processors who facilitate the Services, the Card Brands, and for any given transaction to the financial institution which issued the Card. Easy Pay may also use or disclose all such data as necessary to enforce its rights under this Agreement. Merchant will not use any transaction information or cardholder information for any purpose not authorized by this Agreement or disclose any such information to any third party without Easy Pay’s prior written consent.

4.3 SERVICE OWNERSHIP. Merchant is acquiring only a nontransferable and nonexclusive right to use the Services under this Agreement. Title to and ownership of the Services, including without limitation any materials delivered to Merchant under this Agreement and any innovation, development, product, trade name, trademark, service mark, software program, or derivative thereof, developed by either party, will remain the exclusive property of Easy Pay or its third party service providers and no right or interest in the foregoing will be transferred to Merchant, by operation of law, custom, use, or any other method. Merchant shall not rent, lease, assign, pledge, disclose, sell, sublicense, distribute, or otherwise transfer for any purpose the Services, Policies, or other information or documentation provided by Easy Pay. Merchant shall not attempt to disassemble, decompile, reverse engineer, derive, or otherwise reproduce any part of the source code or trade secrets of the Services. Merchant shall not modify, alter, translate, or create derivative works based on the Services. Merchant will not remove any notices of proprietary or copyright restrictions from any documentation or information provided by Easy Pay. To the extent provided by Easy Pay, Merchant shall not use or disclose to any third party any application program interface (“API”) or software development kit (“SDK”) made available by Easy Pay, whether belonging to Easy Pay or a third party service provider of Easy Pay, for any reason other than accessing the Services provided under this Agreement. Merchant will adhere to all instructions and limitations associated with and set forth in such API and SDK. To the extent Merchant uses Easy Pay’s API and SDK, Merchant is solely responsible for the implementation of and integration of its software and systems to Easy Pay’s, and the security of all data used or transmitted through such process. Merchant may not copy, translate, modify, distribute, publicly display, or otherwise disclose to any third party the API, the SDK, or any related materials. Merchant understands that the API and/or SDK, or certain portions thereof, may not be provided unless Merchant agrees to the terms and conditions of Easy Pay’s third-party service providers.

4.4 REQUIRED INFORMATION. In order to use the Services, Merchant must provide Easy Pay with the information and documentation Easy Pay requests in connection with the Merchant Application or at any time during or after the term of this Agreement, including but not limited to information relating to Merchant’s identity, customers, transactions, financial statements and tax returns. Easy Pay may request that Merchant provide its financial statements and other information more frequently than annually. Merchant will provide accurate and complete information and keep the information up to date by immediately notifying Easy Pay of any change in such information. Merchant will not present any information in a manner which is misleading. Easy Pay relies on this information for underwriting and to meet its obligations under laws and regulatory requirements. On an ongoing basis, Merchant will provide Easy Pay with the current address of each of its offices, all “doing business as” (DBA) names it uses, and a complete description of goods sold and services it provides. If the scope or nature of Merchant’s business or the type of products or services Merchant offers changes, or if Merchant is subject to any change in control (whether through the issuance, sale, or other transfer of ownership interests), Merchant must notify Easy Pay at least thirty (30) days prior to the change. Merchant is liable to Easy Pay for all losses and expenses incurred by Easy Pay, the financial institution identified on the Merchant Application (“Sponsor Bank”), or any third party arising out of Merchant’s failure to report changes to Easy Pay. Easy Pay reserves the right to decline the submitted Merchant Application for any reason.

5. FEES, ACCOUNTS, RESERVES, TAXES & IRS REPORTING.

5.1 FEES. Fees for the Services are set forth in the Merchant Application and in this Agreement. Additional fees, surcharges, or markups may be charged by the provider of Merchant’s software solution and will be set forth in the agreement between Merchant and the provider of Merchant’s software solution. Merchant will be invoiced for the Fees as set forth in Section 3.6. All amounts due to Easy Pay from Merchant, including without limitation fees, Chargebacks/Disputes, credits, returns, refunds, fines or assessments imposed by Card Brands, charges associated with compliance cases, insufficient fund fees, penalties, loss allocations, other losses or damages, and all other amounts incurred by Easy Pay or Sponsor Bank pursuant to this Agreement or Merchant’s use of the Services (whether from the Card Brands or any third party) will be Merchant’s sole responsibility and will be, at Easy Pay’s or Sponsor Bank’s sole discretion: netted out from funds due Merchant under this Agreement; withdrawn from Merchant’s depository account in accordance with this Agreement (such amounts to be withdrawn when due and/or on a periodic basis specified by Easy Pay, at Easy Pay’s sole discretion); paid to Easy Pay by Merchant immediately upon demand (by wire transfer or such other method specified by Easy Pay); or billed and collected by the provider of the software service provider used by Merchant on behalf of Easy Pay or Sponsor Bank. If any setoff or withdrawal is not sufficient to cover all amounts then due, Merchant shall pay to Easy Pay all remaining amounts immediately upon demand by wire transfer or such other method specified by Easy Pay. Easy Pay may suspend the Services and stop releasing funds represented by Card or ACH transactions to Merchant until Merchant pays all fees and other expenses. Merchant may be granted processing credit, which may only be used to offset processing fees Merchant may owe to Easy Pay, and Easy Pay may cancel any such processing credit. If Easy Pay or its third-party service providers are required to investigate, assist, or respond to Merchant or governmental agencies’ inquiries about the Services provided to Merchant or any transaction thereunder, Merchant will pay to Easy Pay an administration fee equal to the number of hours expended by Easy Pay in such efforts multiplied by an hourly rate of $200, plus actual attorneys’ fees incurred by Easy Pay. Merchant understands and agrees that the fees may be modified by Easy Pay upon thirty days written notice, but may be immediately modified without notice to pass through to Merchant any increases in those fees charged to Easy Pay by the Card Brands, Sponsor Bank, processors, or any third party service providers.

5.2 DEPOSIT OF FUNDS TO MERCHANT OPERATING ACCOUNT. Sponsor Bank will deposit to a non-interest bearing pooled account titled in the name of Sponsor Bank for the benefit of all Easy Pay merchants all amounts of authorized and approved Card transactions, provided however that authorization or approval of any transaction does not constitute a representation, warranty, or guaranty that such transaction complies with the terms of this Agreement and the Rules. This account is maintained by Sponsor Bank for the clearing and settlement of transactions of all Easy Pay merchants, including Merchant. All amounts owing to Merchant will be transferred from this account to Merchant’s bank account or a Reserve Account as detailed below. The funds in this merchant operating account may be eligible for FDIC pass- through insurance up to the maximum amount as set forth in FDIC regulations, as amended from time to time.

5.3 BANK ACCOUNT. Merchant must establish and maintain a depository account to facilitate the transfer of amounts due Merchant from Card transactions. This account must be a checking account at a bank reasonably approved by Easy Pay. Merchant authorizes Sponsor Bank and Easy Pay to credit monies due to Merchant to this account and to debit this account for any and all fees, expenses, and other amounts due to Easy Pay or Sponsor Bank. Merchant agrees to maintain a balance in such account sufficient to cover all of Merchant’s obligations under this Agreement. Merchant agrees that this authorization will remain in place at all times during the term of this Agreement and after termination of this Agreement until all of Merchant’s obligations to Easy Pay have been paid in full. Merchant will not modify or change such account without providing Easy Pay with thirty (30) days prior written notice and obtaining Easy Pay’s prior written approval. Merchant will be charged an ACH reject fee for each transaction attempted by Easy Pay or Sponsor Bank which is rejected for any reason, such fee to be the amount set forth on the Merchant Application. Merchant will not, directly, or indirectly, block, prevent, or otherwise preclude Easy Pay from debiting Merchant’s depository account in accordance with this Agreement. Deposits made to such depository account are provisional and may be reversed or charged back by Easy Pay until the settlement of such deposited amounts cannot be reversed, returned, refunded, or charged back under the Rules applicable to such transaction. Merchant agrees that Easy Pay and Sponsor Bank will not incur any liability for any loss, costs, or fees incurred by Merchant that are the result of such debits by Easy Pay or Sponsor Bank. Merchant acknowledges that if a financial institution name and number are incorrect or inconsistent, Easy Pay may rely on the identifying number alone, even if the number identifies a financial institution, person, or account other than the one named. Easy Pay will not, and has no obligation to, confirm the validity of the transaction. For anti-fraud and anti-money laundering purposes, Easy Pay reserves the sole and exclusive right to review large electronic transfer of funds to or from Merchant’s account before releasing the funds and to refuse any transfer of funds at Easy Pay’s discretion. Merchant’s obligation to pay all amounts due to Easy Pay under this Agreement shall survive termination of this Agreement and will apply to all amounts incurred in connection with this Agreement or Merchant’s use of the Services, whether such amounts are incurred before or after termination of this Agreement. All amounts due to Easy Pay will be paid by Merchant without setoff or deduction and will be due on the earlier of the due date set forth on any invoice or the date Easy Pay originates an ACH debit from Merchant’s depository account. Any amounts due from Merchant but not received by Easy Pay will accrue interest, which will be due and payable by Merchant to Easy Pay, at the lesser of one and a half percent (1.5%) per month or the highest rate allowed by Law.

5.4 RESERVE AND SET OFF. For the purposes of providing a deposit and source of funds to pay Easy Pay for any and all amounts owed by Merchant, Easy Pay may (or cause one of its third party service providers or Sponsor Bank to) at any time at its sole discretion establish one or more reserve accounts (each a “Reserve Account”) in Easy Pay’s name or Sponsor Bank’s name at a depository institution and (a) fund such Reserve Account with amounts due to Merchant under this Agreement (including but not limited to proceeds from processed transactions); (b) withdraw by ACH transactions funds from Merchant’s depository account and deposit such amounts into the Reserve Account; or (c) require Merchant to deposit a specified amount into the Reserve Account which Merchant will do within two days of Easy Pay’s request. The Reserve Account is a non-interest bearing account.  The amount of the Reserve Account shall be the amount Easy Pay determines, at its sole discretion, reasonable to cover all anticipated fees, Chargebacks/Disputes, returns, assessments, actual or anticipated liabilities, or other amounts Easy Pay deems necessary to protect its interests. The ability to establish and fund a Reserve Account is a specifically bargained for inducement for Easy Pay to enter this Agreement and Easy Pay would not enter this Agreement without such right. Easy Pay may, without notice to Merchant, set off against or recoup from the Reserve Account, any amounts due to Merchant under this Agreement (including but not limited to the proceeds of processed transactions), and/or the Secured Assets any amount due to Easy Pay from Merchant. The Reserve Account will be held by Easy Pay past the expiration of this Agreement until the later of one hundred eighty (180) days after expiration of this Agreement or such time as all actual and potential liabilities associated with Merchant’s transactions and use of the Services have been fulfilled by Merchant or otherwise expired.

5.5 TAXES & IRS REPORTING. Merchant is obligated to pay all taxes and other charges imposed by any governmental authority on the Services provided under this Agreement. Merchant understands that this does not obviate Merchant’s responsibility for your tax liability incurred with the sale of goods or services regarding transaction activity associated with Merchant’s account. To comply with IRS 1099-K reporting requirements, Easy Pay may be required to file a form 1099-K with the U.S. Internal Revenue Service (IRS). Easy Pay may collect federal backup withholding upon transaction settlement, on behalf of the IRS, from Merchant if Merchant does not supply its legal name, SSN or EIN, or if Merchant fails to respond to a request from Easy Pay to verify the same. All withholdings will be remitted to the IRS as required by law.

6. TERM & TERMINATION

6.1 TERM AND RENEWAL. This Agreement will become effective on the Effective Date, will remain in effect for three (3) years thereafter (“Initial Term”), and will automatically renew for successive one (1) year terms (“Renewal Term”), unless terminated earlier according to this Agreement. Either party may terminate this Agreement effective as of the end of the Initial Term or any Renewal Term if it provides at least sixty (60) days prior written notice of non-renewal to the other party.

6.2 TERMINATION. If (a) a party breaches the Agreement and such default continues for 30 days after receipt of written notice thereof from the other party (setting forth in reasonable detail the nature of the default); or (b) a party makes a general assignment for the benefit of creditors; a receiver is appointed and not removed within 30 days after such appointment; a party files a petition for bankruptcy or reorganization under the provisions of any applicable bankruptcy laws; or a party declares its insolvency or becomes insolvent; then the other party may terminate this agreement immediately upon written notice. In addition to the foregoing, the non-defaulting party may terminate this Agreement immediately upon written notice to the defaulting party upon the second default of a similar nature within any 12-month period.

6.3 ADDITIONAL TERMINATION RIGHTS. In addition to those other termination rights set forth in this Agreement, Easy Pay may terminate this agreement immediately and without prior notice to Merchant if: (a) Merchant violates any Rule, Law, or Policy; (b) Merchant is subject to any adverse legal or regulatory actions by governmental or non-governmental entities; (c) Merchant fails to timely mitigate, remediate, or resolve risks identified by Easy Pay to Easy Pay’s satisfaction; (d) Easy Pay reasonably believes there has been a material deterioration in Merchant’s financial condition, (e) Merchant is listed on the MATCH list by any other processing entity; (f) Easy Pay is instructed to terminate Merchant by a Card Brand, Sponsor Bank, or any of its vendors used in connection with this Agreement; (g) Merchant is subject to a change of control or ownership which is not approved by Easy Pay in accordance with this Agreement; (h) Easy Pay determines that the provision of the Services to Merchant subjects Easy Pay to substantial risk of losses; (g) Easy Pay loses its standing with any Card Brand or its sponsorship for such standing by Sponsor Bank and despite reasonable efforts is unable to obtain a suitable alternative Sponsor Bank; or (h) Easy Pay determines that its association with Merchant could negatively impact Easy Pay’s reputation. If Easy Pay believes Merchant will be unable to pay amounts due to Easy Pay under this Agreement, that Merchant has engaged in fraudulent activity, or that Merchant has engaged in activities prohibited by the Rules, Law, or Policies, Easy Pay may immediately terminate this Agreement and/or hold all funds of Merchant. Merchant understands that under certain conditions Easy Pay may be required to submit Merchant’s name and identity for the MATCH list or such other list required by the Card Brand’s or Sponsor Bank, and Merchant waives any and all claims related to its inclusion on any such list.

6.4 ACCOUNT INACTIVITY. Easy Pay may, but will not be obligated to, terminate this Agreement if Merchant fails to present any transaction for clearing and settlement in any calendar month, unless the Merchant’s account is noted as “seasonal” and there are a lack of transactions in the off season.

6.5 SUSPENSION. Easy Pay may, at its sole discretion, suspend the Services immediately and without prior notice to Merchant if, in Easy Pay’s reasonable opinion: (a) one or more events have or likely have occurred which would allow Easy Pay to terminate this Agreement; (b) Easy Pay is investigating the business, operations, or activities of Merchant due to a belief Merchant has violated this Agreement; (c) Merchant is accused by any federal state, or local government or agency of violating any statute, regulation, or other Law; (d) Merchant creates an undue financial, security, or regulatory risk to Easy Pay; or (e) provision of such Services would result in the processing of a high risk transaction, violate Easy Pay’s underwriting criteria, or would be likely to result in Chargebacks/Disputes.

6.6 EFFECT OF TERMINATION. If this Agreement is terminated for any reason, all amounts due to Easy Pay from Merchant will become immediately due and payable. Termination of this Agreement will not relieve Merchant of any liabilities or obligations which arise related to the Services, or any transaction processed under this Agreement, whether such liabilities or obligations arise before or after termination of this Agreement, including but not limited to all fees, fines, penalties, or other amounts due to Easy Pay under this Agreement.

7. MERCHANT WARRANTIES & INDEMNIFICATION

7.1 REPRESENTATIONS AND WARRANTIES. Merchant represents and warrants to Easy Pay: (a) that all information in the Merchant Application or any other document submitted to Easy Pay in connection with the Merchant Application is correct, complete, and fully and accurately describes and details the nature, type, and scope of the business in which Merchant is engaged; (b) that all information provided to Easy Pay during the term of this Agreement by Merchant or its representatives is, at the time such information is presented, correct, complete, and not misleading; (c) that Merchant was validly formed, registered, in good standing, and duly qualified to conduct business in each jurisdiction where failure to do so would have a material adverse effect on Merchant’s business; (d) that Merchant has and will fully comply with all Laws, Rules and Policies in the provision and sale of all goods and services that are the subject of each transaction; (e) that the individual executing this Agreement has the authority to sign on behalf of Merchant and legally bind Merchant to the terms and conditions of this Agreement and such individual is authorized to execute any documents and to take any action which may be required by us now or in the future on behalf of Merchant; (f) that there is no action, suit, or proceeding pending or to Merchant’s knowledge, threatened, which if decided adversely would impair Merchant’s ability to carry on its business substantially as now conducted or which would adversely affect Merchant’s financial condition or operations; (g) that Merchant has never been terminated at the request of a Card Brand, placed on the MasterCard MATCH system or placed on the Combined Terminated Merchant File, and if so, Merchant has clearly disclosed this to Easy Pay; (h) that all transactions submitted to Easy Pay pursuant to this Agreement are bona fide and no transaction involves the use of a Card or ACH transaction for any purpose other than the purchase of goods or services from Merchant and does not involve a Cardholder obtaining cash from Merchant unless allowed by the Rules and agreed upon in writing with Easy Pay; (i) that Merchant will immediately notify Easy Pay if there are any changes to its business, ownership or the nature of its operations that make any information contained the Merchant Application, Merchant’s representations and warranties, or information otherwise provided to Sponsor Bank or Easy Pay inaccurate, incomplete, incorrect or misleading; (j) that Merchant has read and agree to be bound by this Agreement, the Rules, and the Policies; and (k) that entering this Agreement will not violate any law, or conflict with any other agreement to which Merchant is subject.

7.2 INDEMNIFICATION. Merchant will indemnify, defend, and hold Easy Pay, Sponsor Bank, and the Card Brands and their respective employees, officers, directors, shareholders and agents, harmless for and from any and all loss, costs, expenses, claims, proceedings, actions, damages, demands, and liabilities (including attorneys’ fees and costs, and collections costs) paid or incurred by any one or more of them, arising out of, caused by, or attributable to, any of the following: (a) any of Merchant’s acts or omissions with respect to Merchant’s business or use of the Services; (b) any information provided to Easy Pay regarding Merchant which is false, incomplete, or misleading; (c) Merchant’s failure to provide information to Easy Pay in accordance with this Agreement; (d) Merchant’s failure to adhere to any instructions or requirements of Easy Pay or Sponsor Bank; (e) any transaction processed under this agreement, including but not limited to any transaction which is fraudulent, subject to a Chargeback, not processed for any reason, or not settled for any reason, (f) any breach of this Agreement by Merchant or Merchant’s employees, agents, or representatives; (g) any bankruptcy proceeding; (h) willful misconduct, fraud, intentional tort or negligence by Merchant or Merchant’s employees, agents or representatives; (i) theft, embezzlement, or unauthorized use of the Services; (j) Merchant’s breach of any Rule, Law, or Policy; (k) any unauthorized access or use of Confidential Information, transaction information, Cardholder data, or any other personally identifiable information; (l) any action or omission by any third party service provider used by Merchant in connection with this Agreement; (m) any transaction fee, service fee, convenience fee or other surcharge, whether charged by Merchant or any third party; or (n) action by Easy Pay exercising any right we have under this Agreement, Laws, Rules, or Policies.

8. EASY PAY’S LIABILITY & DISCLAIMER OF WARRANTIES

8.1 LIABILITY FOR ERRORS. Unless otherwise stated herein, Easy Pay will have no liability under this Agreement for any errors associated with Merchant’s processing, and Merchant will take all such risk, including, but not limited to, errors resulting from: (a) Merchant not having sufficient funds to make a transaction; (b) any terminal or system failing to function properly, not being used properly, or not being compatible with Easy Pay’s systems; or (c) circumstances beyond Easy Pay’s control, despite Easy Pay’s reasonable precautions.

8.2 LIMITATION OF LIABILITY. Under no circumstances shall Sponsor Bank’s or Easy Pay’s cumulative financial responsibility arising out of or related to this Agreement or the Services, including but not limited to liability for its failure to perform any obligation under this Agreement and whether brought in contract, tort, or any other cause of action, exceed the fees received and retained by Easy Pay from Merchant over the prior three month period accruing as of the date of the harm less interchange and pass-through costs. Except as otherwise provided for in this Agreement, in no event will Easy Pay or its respective directors, officers, employees, or affiliates, be liable for special, incidental, consequential, punitive damages, lost profits or any loss, theft, disappearance, or damage to data transmitted electronically in connection with this Agreement. Easy Pay will have no liability for any damages or losses that are partially or wholly caused by Merchant or its employees, agents, or third-party service providers. Easy Pay will have no liability for any damages or losses that were not reported to Easy Pay by Merchant within thirty days of when such damages or losses first occurred, whether or not discovered. For the avoidance of doubt, Easy Pay’s liability, if any, under this Agreement will be limited solely to direct, actual damages. Easy Pay will have no liability or responsibility for any action or inaction taken by the financial institution or other entity which issued the Cards. Easy Pay will have no liability or responsibility for the data security, or lack thereof, by any third-party service provider used by Easy Pay pursuant to this Agreement.

8.3 DISCLAIMER OF WARRANTIES. Except as otherwise specifically set forth in this Agreement, Sponsor Bank and Easy Pay disclaim all representations and warranties, express or implied, regarding the Services, including without limitation, any and all warranties of merchantability, fitness for a particular purpose, quality, suitability, non-infringement, availability and otherwise (regardless of any course of dealing, custom, or usage of trade), and regarding any other services provided under this Agreement or any goods provided incidental to all such services. Merchant understands that there are risks associated with the acceptance of Cards and origination of ACH transactions and Merchant hereby assumes all such risks except as otherwise set forth in this Agreement. Each party acknowledges that it has not entered into this Agreement in reliance upon any warranty or representation except those specifically set forth herein.

9. SECURITY INTEREST & RECOUPMENT

This section of the Agreement will constitute a security agreement under the Uniform Commercial Code wherein to secure Merchant’s due and punctual performance of all of its obligations to Easy Pay under this Agreement Merchant grants to Easy Pay a first priority security interest in and lien upon: (a) all funds representing amounts owing Merchant under this Agreement, regardless of the source of such funds; (b) all funds at any time in the Reserve Account, regardless of the source of such funds; (c) present and future Card transactions and the proceeds thereof; (d) any amount which may be due to Merchant under this Agreement, including, without limitation all rights to receive any payments or credits under this Agreement; (e) all funds at any time in the depository account on file with Easy Pay; (f) all inventory, real property, cash, receivables, intellectual property, and other assets held by Merchant; (g) the proceeds of the foregoing; and (h) upon Easy Pay’s request, any other security to secure Merchant’s obligations under this Agreement (collectively, the “Secured Assets”). On Easy Pay’s request Merchant agrees to execute financing statements or other documents to evidence this security interest. These security interests and liens will secure all of Merchant’s obligations under this Agreement and any other agreements now existing or later entered into between the parties and Easy Pay will have all rights afforded under the Uniform Commercial Code, Law, and in equity. Easy Pay may exercise this security interest without notice or demand by making an immediate withdrawal or freezing of Merchant’s Secured Assets. Merchant represents and warrants that no other person or entity has a security interest in the Secured Assets and Merchant agrees to obtain from Easy Pay written consent prior to granting a security interest of any kind in the Secured Assets to a third party. Easy Pay has the right of recoupment and to offset any outstanding or uncollected amounts Merchant owes to Easy Pay from your account and from any amounts Easy Pay owes to Merchant under this Agreement or any other agreement. Merchant agrees that this is a contract of recoupment and as such, Easy Pay is not required to file a motion for relief from a bankruptcy action automatic stay to realize on any of the Secured Assets. Nevertheless, Merchant agrees not to contest or object to any motion for relief from the automatic stay filed by Easy Pay.

10. GOVERNING LAW

10.1 GOVERNING LAW, JURISDICTION, REIMBURSEMENT OF COSTS AND EXPENSES, WAIVER OF JURY AND ARBITRATION PROVISION: READ THIS PROVISION CAREFULLY AS IT AFFECTS YOUR RIGHT TO JURY TRIAL. This Agreement will be governed by and construed in accordance with the laws of Maine, exclusive of its rules regarding conflicts of laws. Merchant agrees that the exclusive jurisdiction and venue for any disputes hereunder shall be an appropriate court located in Cumberland, Maine. The prevailing party in an action brought against the other to enforce the terms of this Agreement or any rights or obligations hereunder, will be entitled to receive its reasonable costs and expenses of bringing such action including its reasonable attorney’s fees in addition to any other recoverable damages.

10.2 ARBITRATION; WAIVER OF JURY TRIAL; OTHER RIGHTS. At either party’s election any and all disputes, claims or controversies by any party hereto, arising out of or in connection with this Agreement (or any agreement executed in association herewith), including but not limited to claims arising in tort and/or in contract, shall be decided exclusively and finally by binding arbitration.  THERE SHALL BE NO RIGHT TO A JURY TRIAL.  The arbitration hearing shall be conducted at a location within twenty (20) miles of Merchant’s business address at the time of such arbitration, or, if Merchant has no business address at the time of the arbitration, then within twenty (20) miles of Merchant’s business address as specified in this Agreement.  The arbitration shall be conducted before the American Arbitration Association (the “AAA”), pursuant to the AAA Commercial Arbitration Rules, which can be obtained on line at www.adr.org, or by calling the AAA at 1-800-778-7879.  Easy Pay will provide a copy of the Arbitration Rules to Merchant via email upon written request.  The arbitration shall be conducted by one neutral arbitrator appointed by the AAA.  The arbitrator shall have actual experience in and knowledge of the Payments Processing Industry to the greatest extent practicable, unless the parties agree otherwise.

The parties agree that the Federal Arbitration Act (“FAA”) and related federal law shall govern the interpretation, implementation and enforcement of this Section to the fullest extent possible.  In the event state law shall govern, the laws of the State of Maine shall apply.

The arbitrator shall have the authority to award any relief at law, or in equity which would otherwise be available in a court of law.  The arbitration filing fee and the arbitrator’s fee shall be paid by Easy Pay, as the Parties intend that the costs of arbitration to Merchant be the same or less than the cost of filing and prosecuting a lawsuit.

10.3 NO CLASS ACTIONS. The Parties hereto acknowledge and agree that this arbitration shall be solely between the Parties to this Agreement, and no class arbitration, or other representative action may be undertaken by the arbitrator.  The parties further agree that the arbitrator shall not have the power to combine this with any other arbitration or to treat this as a representative action, or as a class action.

10.4 OPT-OUT. Merchant may elect to opt out of this Waiver of Jury Trial and Arbitration Provision by sending written notice to Easy Pay to be received by the close of business on or before the tenth (10th) calendar day after this Agreement is executed, time being “of the essence”.  However, opting out of these provisions do not entitle Merchant to join any class action, or class arbitration proceedings.  Opt-out notices received after this deadline shall be of no force and effect.  The opt-out shall not modify any of the parties other rights and remedies contained herein.

11. MISCELLANEOUS

11.1 AGENCY RELATIONSHIP. Merchant authorizes Easy Pay to act as its agent for the limited purposes of holding, receiving, and disbursing funds on Merchant’s behalf. Merchant’s authorization permits Easy Pay to generate an electronic funds transfer to process each payment transaction. This authorization will continue until the later of one hundred eighty days after Merchant’s Easy Pay account is closed or terminated or until all amounts due to Easy Pay under this Agreement, whether occurring before or after termination of this Agreement, have been satisfied. Merchant agrees that Easy Pay’s receipt of transaction proceeds satisfies Merchant’s customers’ obligations to you. Easy Pay will remit to Merchant funds actually received by Easy Pay on your behalf, less amounts owed to Easy Pay, Sponsor Bank, or other third-party service providers, subject to any Chargebacks or reserve withheld or applied as per this Agreement. If any overpayment to Merchant or other error occurs, Easy Pay may debit or credit Merchant’s depository account without notice, and if such depository account does not contain sufficient funds, Merchant agrees to immediately remit the amount owed directly to Easy Pay.

11.2 FORCE MAJEURE. Easy Pay will not be liable for delay in performing any of its obligations insofar as the performance of such obligation is delayed by an event that is beyond its reasonable control. Easy Pay will notify Merchant of any such delay in reasonable detail as soon as possible and will endeavor to mitigate the impact of such event.

11.3 SEVERABILITY AND WAIVER. If any provision of this Agreement is held invalid, illegal, void, or unenforceable by reason of any judicial decision, all other provisions of this Agreement shall nevertheless remain in full force and effect. No course of dealing, delay, or failure to enforce any provision or exercise any right under this Agreement by Easy Pay shall be construed as a waiver or estoppel of such provision or right, nor shall it amend this Agreement or affect the validity of this Agreement or curtail Easy Pay’s ability to enforce such provision or exercise such right in the future. All waivers must be in writing and signed by Easy Pay.

11.4 RIGHTS AND REMEDIES CUMULATIVE. The rights conferred upon Easy Pay, Sponsor Bank, and the Card Brands in this Agreement are not intended to be exclusive of each other or of any other rights and remedies we have under this Agreement, at law, or in equity. Rather, each right we have at law or in equity will be cumulative and concurrent and in addition to every other right. No customer, officer, director, or employee of Merchant will be deemed a third-party beneficiary under this Agreement. Sponsor Bank and the Card Brands will be deemed third party beneficiaries under this Agreement, which means they have the right, but not the obligation, to enforce the obligations of this Agreement against Merchant but they will have no responsibility under this Agreement.

11.5 ENTIRE AGREEMENT. This Agreement, including the Policies, the completed Merchant Application, the Rules, Laws, and any amendment or supplement to this Agreement or other referenced agreements, all of which are incorporated into this Agreement, constitutes the entire agreement between the parties, and all prior or other agreements or representations, written or oral, are superseded by this Agreement.

11.6 RESPONSIBILITY. Merchant will be responsible for all actions and omissions of its owners, directors, officers, employees, agents, contractors, vendors, affiliates, and third-party service providers with regard to or in connection with any transaction or this Agreement.

11.7 ASSIGNABILITY. This Agreement may be assigned by Easy Pay but may not be assigned by Merchant without Easy Pay’s prior written consent. If Merchant sells its business, the original owner and any original guarantors will be held personally liable for all Chargebacks and any other liabilities of the new owners.

11.8 AMENDMENTS. This Agreement may be amended or revised by Sponsor Bank or Easy Pay updating the terms at https://easypaysolutions.com/submerchantagreement/. While Easy Pay may notify you of these amendments, it is Merchant’s sole responsibility to review and maintain familiarity with the Agreement, Rules, Law and Policies. If Merchant does not agree to the terms of any such amendment, modification or revision, Merchant may cease using the Services and terminate this Agreement by providing written notice to Easy Pay within 30 days of the date such amendment is posted. Merchant’s failure to terminate this Agreement or continued use of the Services shall be deemed to be Merchant’s acceptance of and agreement to any such amendment. Notwithstanding the foregoing, any fee or rate increase imposed on Easy Pay, or any modification to this Agreement which is required, by one or more of the Card Brands, Sponsor Bank, a payment processor, or a service provider used by Easy Pay in connection with this Agreement may be passed on to Merchant and shall be effective upon the date of Merchant’s receipt of notice of such increase or modification without giving rise to the right to terminate.

11.9 CONSENT TO DO BUSINESS ELECTRONICALLY, ELECTRONIC SIGNATURE, COMMUNICATION, AND NOTICES. Merchant consents to do business electronically, which means that Merchant agrees that all Easy Pay agreements and Policies, including amendments thereto and documents referenced therein, as well as any notices, instructions, or any other communications regarding transactions and Merchant’s agreements with Easy Pay (all of which are referred to herein as the “Communications”) may be presented, delivered, stored, retrieved, and transmitted electronically. Merchant must keep Easy Pay informed of any change in its electronic or mailing address or other contact information by contacting Easy Pay Customer Service at [email protected]. Merchant’s electronic signature, including, without limitation clicking “Agree and Continue” or an action of similar meaning or significance, shall be the legal equivalent of Merchant’s manual signature. The person signing on behalf of Merchant (including without limitation clicking “Agree and Continue” or an action of similar meaning or significance) represents and warrants to Easy Pay that his, her, or its actions are authorized by Merchant and that such person has all required power and authority to bind Merchant to this Agreement. Such individual also agrees that the electronic signatures that he/she provides online will be binding upon him/her and Merchant, and will not be construed by a court of law to have any less effect than a standard ink or paper signature. Merchant acknowledges that: Merchant is able to print a complete and legible copy of this Agreement; Merchant was capable of opening, reading, printing, downloading and/or saving this Agreement prior to acceptance of this Agreement; and Merchant had reasonable opportunity to consult with appropriate professionals prior to electronically signing this Agreement. Any written notice under this Agreement will be deemed given and delivered upon the earlier of: (a) actual receipt, (b) five days after being deposited in the United States mail, and addressed, if to us, to: Easy Pay Solutions, Inc., PO Box 2380, South Portland, ME 04116 and if to Merchant: to the last address shown on our records (which shall be the address set forth on the Merchant Application unless such address is updated by providing notice to Easy Pay in accordance with this section), (c) one business day after being sent by email or other electronic communication if to Merchant at the last email address provided by Merchant to Easy Pay (which shall be the email address set forth on the Merchant Application unless such email address is updated by providing notice to Easy Pay in accordance with this section) or through the software system used by Merchant to submit transactions and if to Easy Pay to [email protected] (which address may be updated by providing notice to Merchant), or (d) the date of publication of the update and/or change to our website. Easy Pay’s business days are Monday through Friday, excluding federal holidays.

11.10 MOBILE CONSENT. You hereby authorize your wireless operator (AT&T, Sprint, T-Mobile, US Cellular, Verizon or any other branded wireless operator) to use your mobile number, name, address, email, network status, customer type, customer role, billing type, mobile device identifiers (IMSI and IMEI) and other subscriber status details, if available, to allow verification of your identity and to compare information you have provided to Easy Pay with your wireless operator account profile information for the duration of the business relationship.

11.11 AGENT OF MERCHANT. To the extent that any person or other third party executes or accepts this Agreement on behalf of Merchant and (a) any representation or warranty of such person or other third party, including without limitation those representations and warranties set forth on the Merchant Application and in Section 11.9 of this Agreement, are untrue or incorrect in any manner, (b) such person or third party is not authorized to enter into this Agreement on behalf of Merchant, or (c) Merchant alleges it is not bound by this Agreement or is found to not be bound by this Agreement, such person or third party hereby agrees to be personally responsible for and liable to Easy Pay and Sponsor Bank for all of Merchant’s obligations and liabilities under this Agreement, including without limitation: any damages or losses incurred by Easy Pay or Sponsor Bank as a result of Merchant not being bound by this Agreement; all fees, fines, penalties, or assessments by any Card Brand, government, or governmental agency; the costs and expenses payable by Merchant under this Agreement; the indemnification obligations set forth in this Agreement; and losses incurred as the result of any Chargebacks/Disputes, returns, refunds, or other credits submitted for processing.

11.12 INTERPRETATION. The headings used in this Agreement are for convenience only and will not affect the interpretation of any provision. Merchant and Easy Pay acknowledge the limitations and exclusions in this Agreement have been subject to active and complete negotiations between the parties and represent the parties’ voluntary agreement. The parties agree that the terms and conditions of this Agreement shall not be construed in favor of or against any party by reason of the extent to which a party or its advisors participated in the preparation of this document.

11.13 COUNTERPARTS. This Agreement may be executed in delivered in one or more counterparts (electronic or otherwise), each of which will be deemed an original but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by electronic means in accordance with Section 11.9 and the parties agree that such electronic execution and delivery will have the same force and effect as delivery of an original document with original signatures, and that each party may use such electronic signatures as evidence of the execution and delivery of this Agreement by all parties to the same extent that an original signature could be used.

Sub-Merchant Tri-Party Agreement APPLICABILITY

If your transaction volume exceeds $1,000,000 in Visa transactions or in MasterCard transactions per year or you are deemed to be a commercial entity under the Card Brand Rules, you agree to the terms of this Sub-merchant Tri-Party Agreement. This agreement is between the Sub-merchant/Merchant (“you”, “your”), Easy Pay Solutions, Inc. (“Easy Pay”), and KeyBank National Association (“Member Bank”) and it governs your use of our payment processing services (“Service(s)”). “We” “our” and “us” refers to both Easy Pay and Member Bank. Member Bank may enforce any provisions of this agreement that relate to payment processing provided by Member Bank. The Services are being offered in conjunction with your agreement with your service provider (“Provider Partner”) and may not be used separately from that agreement. To the extent there is a conflict in the terms between the Sub-merchant Agreement above and this Sub-merchant Tri-Party Agreement, the Sub-merchant Tri-Party Agreement will govern.

1. THE SERVICES

1.1 GRANT OF USE. The Services allow you to accept payment from your customers via bankcards (“Cards”) validly issued by Visa, MasterCard, Discover, and American Express (the “Card Brands”) and also, if approved, via automated clearing house transactions (“ACH”). You must only use the Services for a business purpose and not for personal, family, or household use. We hereby grant you use of the Services according to the terms found herein.

1.2 REQUIRED INFORMATION. In order to use the Services, we may require that you provide us with certain information such as information relating to your identity, customers, transactions, and financial statements. You must provide us with accurate and complete information and keep the information up-to-date. We rely on this information for underwriting and to meet our obligations under applicable laws and other regulatory requirements. If the scope or nature of your business or the type of products or services you offer changes, you must notify Provider Partner prior to the change. You are liable to us for all losses and expenses incurred by us arising out of your failure to report changes to us. We reserve the right to refuse to allow you to use the Services for any reason.

1.3 VERIFICATION. You authorize us to make, from time to time, any business and personal credit inquiries (including, but not limited to, credit reports for your directors, officers, and principals), identity-verification inquiries, transaction-verification inquiries (including, but not limited to, with customers), and any other inquiries considered necessary relating to this agreement, and to provide any information and documentation to our sponsor banks and/or the Card Brands as required by them. You also authorize any person or credit reporting agency to compile information to answer those inquires and to furnish that information to us.

1.4 PROCESSING LIMITS. We will assign a maximum dollar amount per sales ticket and an aggregate maximum dollar amount of Card and ACH transactions per calendar month. If certain Card processing volume thresholds are met by your use of the Services we may notify you that you must enter into an additional agreement with our sponsor bank.

1.5 DATA OWNERSHIP. Easy Pay will own all data associated with your use of the Services and you hereby grant us a perpetual, irrevocable, sublicensable, assignable, worldwide, royalty-free license to use, reproduce, electronically distribute, and display this data for the following purposes: (a) providing and improving the Services; (b) internal usage, including but not limited to, data analytics so long as such data is anonymous and aggregated with other customer data; (c) complying with applicable legal requirements and assisting law enforcement agencies; and (d) any other purpose for which you provide consent.

2. CARD ACCEPTANCE

2.1 ACCEPTANCE. You will honor, without discrimination, any valid Card properly tendered by a person asserting to be the person in whose name the Card is issued (“Cardholder”). You may elect not to accept Visa and/or MasterCard branded debit cards, but you must provide Easy Pay with prior written notice of such election. You will not accept any payments from a Cardholder relating to previous charges for merchandise or services, and if you receive such payments, you will promptly remit them to us.

2.2 YOUR DISCLOSURES. You will properly disclose to the Cardholder, at the time of the Card transaction, your name, return policy, and other limitations you may have on accepting returned merchandise. Your refund polices for purchases made with a Card must be at least as favorable as your refund policy for purchases made with any other form of payment.

2.3 REQUEST AT TIME OF PAYMENT. When accepting payment, you will request the Card expiration date and ZIP code or postal code from the Cardholder’s billing address. It is also highly recommended that you obtain the security code from each Card, but you must not store this information permanently.

2.4 CARD AUTHORIZATION. No later than 72 hours from the time you initiate a transaction, but prior to completing it, you will request an authorization for the transaction using equipment meeting specifications determined by Easy Pay. This authorization request must include your name and account identifier, the Card expiration date, the ZIP code of the customer’s billing address, and the total amount of the transaction, including taxes. Easy Pay may also require additional information in your request, such as: (a) CVV2 code or the equivalent; (b) a brief description of the goods or services involved; (c) the transaction authorization number; and (d) if applicable, adjacent to the signature line, a notation that all sales are final. When authorization is obtained, you will be deemed to warrant the identity of the customer as the Cardholder. Authorizations are not a guarantee of acceptance or payment of a transaction and do not waive any provision of this agreement, or otherwise validate a fraudulent transaction or a transaction involving the use of an expired Card. We may refuse to authorize any transaction.

2.5 CARDHOLDER STATEMENTS. Our name will appear in conjunction with your name on Cardholders’ statements. Under no circumstance will we be responsible for processing credits or adjustments related to transactions not originally processed by Easy Pay.

2.6 ADJUSTMENTS. All transactions and deposits are subject to our audit and final verification and may be adjusted for inaccuracies. All credits provided to you are provisional and subject to chargebacks and adjustments in accordance with the Rules, whether or not a transaction is charged back by the Card issuer.

2.7 SALES TRANSMITTALS. You will retain a copy of the sales transmittal for the completed transaction in accordance with the Rules for 25 months or such longer period as the Rules may require. Within three business days of our request, you will produce copies of sales transmittals and other transaction evidence, otherwise Easy Pay will have chargeback rights with respect to such transactions.

2.8 TRANSACTION DEPOSIT CONDITIONS. A Merchant must not submit a Deposit for a Transaction until one of the following occurs:

• • • The Transaction is completed.
    • The merchandise or services are shipped or provided. This does not apply if the Cardholder has paid an Advance Payment.
    • The Merchant, Sponsored Merchant, Marketplace, or Digital Wallet Operator has fulfilled the conditions of its agreement with the Cardholder for an Installment Transaction, a Recurring
    • Transaction, or an Unscheduled Credential-on-File Transaction.
    • A Merchant must only submit a Deposit for a Transaction that it has completed with a Cardholder.

3. COMPLIANCE WITH THE RULES AND LAWS

3.1 COMPLIANCE WITH RULES. You must comply with the applicable Card Brand rules and operating regulations and the National Automated Clearing House Association rules (“NACHA”) (collectively, “Rules”). An abridged version of the Visa, MasterCard and American Express Rules may be viewed at usa.visa.com/merchants/operations/op_regulations.html, www.mastercardmerchant.com, and www.americanexpress.com\merchantopguide. Copies of the NACHA Operating Rules and Guidelines are available for review online at www.achrulesonline.org. You specifically acknowledge and agree that this Tri-party Sub-merchant Agreement is deemed to include the provisions required by: (i) the Visa International Operating Regulations relating to the Visa Dispute Monitoring Program, the Merchant Agreement Requirements, and Merchant Card Acceptance; and (ii) Section 5.1 and Sections 5.6 through 5.12 of the MasterCard Rules; and (iii) chapter 4, “transaction processing”, chapter 11, “chargebacks and inquiries,” and chapter 12, “specific industries” of the American Express Merchant Regulations – U.S. Copies of the Visa Regulations (http://corporate.visa.com/about-visa/our-business/operating-regulations.shtml) and the MasterCard Rules (http://www.mastercard.com/us/merchant/pdf/BM-Entire_Manual_public.pdf) are available for review online. The American Express Merchant Reference Guide, US, which is a summary of the above-referenced American Express regulations, is available at www.americanexpress.com. In the event of any conflict between the terms of this Agreement and the terms of the Card Brand Rules, the terms of this Agreement shall prevail. You: (i) represent and warrant that you have reviewed in full the contents of the Card Brand Rules applicable to you (in particular, those sections referenced above); and (ii) covenants that you will, from time to time, review the contents of the Card Brand Rules to ensure you remain aware of, and are capable of performing, your duties and obligations under this Tri-party Sub-merchant Agreement. Easy Pay is a Payment Card Industry (“PCI”) level 1 service provider and is qualified to handle Cardholder data (i.e., information associated with a Card, such as account number, expiration date, and CVV2) in connection with the Services. Easy Pay will comply with the Payment Card Industry Data Security Standards (“PCI DSS”) to the extent Easy Pay possesses or otherwise stores, processes, or transmits Cardholder data on your behalf. If you possess or otherwise store, process, or transmit Cardholder data, then you must comply with PCI DSS.

3.2 COMPLIANCE WITH LAWS AND POLICIES. You further agree to comply with applicable federal, state, and local laws, rules, and regulations (collectively, “Laws”). You further agree to comply with the then-current terms of Easy Pay’s privacy policy found at https://easypaysolutions.com/privacy-policy/, GDPR Privacy Policy found at https://easypaysolutions.com/gdpr-privacy-notice/, and its HIPPA policy as found at https://easypaysolutions.com/hipaa-business-associates-agreement/ (“Policies”), each of which may be changed or updated by Easy Pay from time-to-time at its sole discretion. You will assist us if we are required to ascertain your compliance with any Rules, Laws, PCI DSS, or Policies. We may, within our sole discretion, suspend the Services for a reasonable period of time required to investigate suspicious or unusual activity, and we shall have no liability for any losses you may attribute to any suspension of funds disbursement. We may reverse Card transactions we deem to violate this agreement, the Laws, Rules, PCI DSS, or Policies, and you agree to reimburse us for any such reversal. If any terms of this agreement conflict with the Rules, including PCI DSS, the Rules will govern.

3.3 DATA SECURITY. You must keep secure all systems and media containing account, Cardholder, or transaction information (physical or electronic) and destroy in a manner that will render the data unreadable all such media that is no longer necessary or appropriate to store. If you store Cardholder account numbers, expiration dates, and other personal Cardholder data in a database, you must follow Card Brand guidelines on securing such data. You may not retain or store magnetic stripe or CVV2, CVC2, or CID data after authorization. You shall maintain industry “best practices” regarding continuity procedures and systems to ensure security of Cardholder account information in the event of a disruption, disaster, or failure of your respective data storage system and/or facility. You agree to display your consumer privacy policy on your website as well as your security method for transmission of Cardholder data.

3.4 PROHIBITED PRACTICES. You will not present for processing or credit, directly or indirectly, any transaction not originated as a result of a Card transaction directly between you and a Cardholder or any transaction you know or should know to be fraudulent or not authorized by the Cardholder. We will refer perpetrators of fraudulent transactions, in our discretion, to the appropriate law enforcement agency. You must not honor any Card that is expired or listed on a current Electronic Warning Bulletin file, regardless of whether authorization has been obtained. You must not request an ACH transfer that violates the Rules or Laws. You agree not to initiate any ACH debits or credits to or from a savings account, or a foreign bank or the branch of a foreign bank in a U.S. territory. The term foreign bank does not include: (i) A U.S. agency or branch of a foreign bank; and (ii) An insured bank organized under the laws of a U.S. territory. You may not split transactions into multiple Card transactions except where: (a) partial payment is entered on the transaction record and the balance of the transaction amount is paid in cash or by check at the time of transaction; or (b) the amount represents an advance deposit in a Card transaction completed in accordance with this agreement and the Rules. You will not use the Services to accept amounts representing the refinancing of an existing uncollectible obligation, debt, or dishonored check of a Cardholder. You may not process transactions for, receive payments on behalf of, or (unless required by Law) redirect payments to a third party.

• Illegal transactions – Submitting any transaction into the payment system that is illegal or that the merchant knows or should have known was illegal. Transactions must be legal in both the cardholder’s and merchant’s jurisdiction.
• Written cardholder information – A merchant may not: Require a cardholder to complete a postcard or similar device that includes any of the following in plain view when mailed: the cardholder’s account number, card expiration date, signature, or any other card account data.
• Request a Card Verification Value 2 (CVV2) from the cardholder for a card-present environment transaction3. EU region: Request the Card Verification Value 2 (CVV2) data on any paper order form.
• Store Card Verification Value 2 (CVV2) information subsequent to authorization
• Minimum/maximum transaction amount – U.S. or U.S. Territory: Establishing a minimum or maximum transaction amount as a condition for honoring a Visa Card, except for a transaction conducted with a Visa Credit Card issued in the U.S. or a U.S. Territory.
• Disbursement of funds – Disbursing funds in the form of cash to a Visa cardholder unless:
  • The merchant is participating in Visa Cash-Back Services, a financial institution providing a manual cash disbursement, a hotel or cruise line, as specified in the Visa Rules.
  • The merchant is dispensing funds in the form of travelers cheques, Visa TravelMoney Cards, or foreign currency. In this case, the transaction amount is limited to the values of the travelers cheques, Visa TravelMoney Card, or foreign currency plus any commission of fee charged by the merchant.
• Travelers cheques – Disbursing funds in the form of travelers cheques, if the sole purpose is to allow the cardholder to make a cash purchase of goods and services from the merchant.
• Transaction laundering (factoring) – Accepting a transaction that does not result from an act between the cardholder and the merchant or the cardholder and the sponsored merchant. Payment facilitators may deposit a transaction between the cardholder and a sponsored merchant of the payment facilitator but must not deposit a transaction on behalf of another payment facilitator.
• Account numbers – Request or use an account number for any purpose other than as payment for its goods or services.

3.5 RECURRING TRANSACTIONS. You must obtain the Cardholder’s prior written consent for recurring transactions, including a description of the product and the frequency and duration of the recurring charge, and notify the Cardholder that he or she may cancel recurring billing charges at any time. You must retain evidence of such written consent for 24 months from the date you submit the last recurring billing charge. You will honor any Cardholder cancellation, and if this agreement is terminated for any reason, you will, at your own cost, advise all Cardholders to whom you submit recurring billing charges that you no longer accept the Card for amounts owed.

3.6 ACH PROCESSING. To enable you to make and accept ACH payments, you authorize us to originate credit or debit records for the purpose of a funds transfer (“Entries”) into the ACH network. We will use reasonable efforts to originate Entries on your behalf in accordance with this agreement. You must only submit Entries for bona fide transactions with your customers made in the ordinary course of business in accordance with this agreement, the Rules, and Laws. You shall obtain and maintain appropriate authorizations in accordance with the Rules from each of your customers for each ACH transaction. All disputes between you and any of your customers relating to any ACH transaction must be resolved between you and that customer. If Easy Pay receives any notice of an ACH dispute or NACHA inquiry, we will forward such notice directly to you. Easy Pay bears no financial responsibility for any disputed transaction. You must maintain an unauthorized return rate, as described in the NACHA Regulations, below 0.5% of originating debits.

3.7 USE OF TRADEMARKS. The Card Brands are the sole and exclusive owners of their marks, and your use of their marks must comply with the Rules. We are the sole and exclusive owner of our marks, and your use of our marks will fully comply with our policies and instructions. At any time we may prohibit your use of the marks or require changes to your use of the marks as we deem necessary or appropriate. Your right to use our marks and the Card Brand marks will cease upon termination of this agreement and you agree not to contest the ownership of the marks for any reason.

3.8 THIRD PARTY SERVICE PROVIDERS. You may be using special services or software provided by a third party to assist you in processing transactions, including authorizations and settlements, or accounting functions. You must make sure that such third parties comply with the Rules (including PCI DSS) and Laws. You must notify Partner Provider if you use third party service providers. If there is unauthorized access to Cardholder data in the possession of you or your agents, you must immediately notify Partner Provider and cooperate with us regarding reasonable requests for information regarding the compromise.

3.9 CONFIDENTIALITY. You must retain in strictest confidence all information and data belonging to or relating to our business and will safeguard such information and data by using the same degree of care, but no less than a reasonable amount of care, that you use to protect your own confidential information.

3.10 DISPUTES.

1. YOUR DUTY TO MONITOR. Easy Pay will not, and has no obligation to, confirm the validity of the recipient or the underlying transaction pursuant to which funds are transferred. We assume no liability for any unauthorized transfer request and the attendant transfer of funds, unless and until we receive appropriate and timely notice by you of the unauthorized transfer requests. You must promptly and consistently inspect your transaction history. Immediately report any possible errors.
2. DISPUTES, INQUIRIES, AND CHARGEBACKS. All disputes between you and any of your customers relating to any ACH transaction must be resolved between you and that customer. If Easy Pay receives any notice of an ACH dispute or NACHA inquiry, we will forward such notice directly to you. Working with Provider Partner, we will handle Card Brand inquiries about your card transactions, in addition to disputes between you and a customer involving card payment transactions. Based on customer disputes we may reverse Card transactions (“chargebacks”), and we will offset the value of such chargebacks from monies owed to you. You must not reenter or reprocess any Card transaction that has been charged back, but instead allow the chargeback process to proceed to its conclusion as described in each Card Brand’s Rules. If you disagree with a chargeback, you may request a chargeback reversal within the applicable Card Brand’s timeline in its Rules. “Excessive Activity” means: chargebacks in excess of .50% of the transaction ratio of your Card transactions; or, chargebacks in excess of .50% of the transaction ratio of the dollar amount of your Card transactions; or, returns in excess of 3% of the transaction ratio of your Card transactions; or, denied transactions in excess of 5% of the transaction ratio of your Card transactions. The existence of Excessive Activity will be a breach of this agreement and may result in action as we deem necessary, including, but not limited to, termination or suspension of processing privileges or creation or maintenance of a reserve. We may revoke or reverse any credit given to you where: (i) the Card transaction was not made in compliance with this agreement and the Laws, Rules, and Policies; (ii) the Cardholder disputes liability to us for any reason, including but not limited to those chargeback rights enumerated in the Rules; (iii) the Card transaction was not directly between you and the Cardholder; or (iv) a deposit to you was made erroneously.
3. REFUND CREDITS. You will issue a credit memorandum instead of making a cash advance, a disbursement, or a refund on any Card transaction. We will debit from amounts owing you for the total face amount of each credit memorandum submitted. You will not submit a credit relating to any Card transaction not originally submitted to us, nor will you submit a credit that exceeds the amount of the original Card transaction. You will, within the time period specified by the Rules, provide us with a credit memorandum or credit statement for every return of goods or forgiveness of debt for services that were the subject of a Card transaction.

4. FEES, TAXES & IRS REPORTING

4.1 FEES. Fees for the Services are set out in a fee schedule provided to you by Provider Partner.

4.2 DEPOSIT OF FUNDS TO MERCHANT POOL ACCOUNT. Our sponsor banks will deposit to the non-interest-bearing pooled account titled in the name of our sponsor bank for the benefit of all Easy Pay merchants (“Merchant Pool Account”) all amounts of Card transactions complying with the terms of this agreement and the Rules. We will instruct our sponsor bank to move funds owed to you from the Merchant Pool Account to an account designated by your or your Provider Partner (“Designated Account”). You acknowledge that the Designated Account may be an account owned by Provider Partner and that Easy Pay may rely on the information provided by the Provider Partner with respect to the Designated Account. You agree that Easy Pay’s deposit of funds to the Designated Account discharges Easy Pay of its settlement obligations to you. Any disputes concerning the amount of funds or their receipt in the Designated Account will be between you and Provider Partner.

4.3 ELECTRONIC FUNDS TRANSFER AGREEMENT. You authorize Easy Pay to initiate, process, transmit, and settle through our sponsor bank ACH debits or credits to the Designated Account. Your authorization will remain in effect after termination of this agreement and until Easy Pay has received written notice terminating this authorization and all your obligations to Easy Pay have been paid in full. You irrevocably authorize us to immediately debit the Designated Account for the amounts of any chargebacks, ACH returns, fines, losses, and costs we may incur because of your use of the Services. You may change the Designated Account, but no more than once every 90 days, and must promptly notify Provider Partner of any changes.

4.4 RESERVE. Easy Pay may, in its reasonable discretion, establish a reserve if it believes there is a risk of potential chargebacks, returns, or any other risk or liability associated with your use of the Services or to ensure current or future payment owed to Easy Pay. We will provide you with notice of the reserve and the terms of the reserve. Easy Pay may require that a certain portion of your transaction proceeds be held by us in reserve for a certain period of time, or that you make a lump sum payment for the reserve. Easy Pay may change the terms of the reserve at any time by providing you with notice of the new terms. Easy Pay has the right to use your funds in the Merchant Pool Account or funds otherwise owed to you to establish, increase, or maintain funds in reserve. We may hold a reserve as long as we deem necessary to mitigate risks associated with your transactions. You understand and agree that if you are required to establish a reserve, you have an obligation under this agreement to maintain at all times the balance in the reserve set by Easy Pay. Easy Pay may, without notice, apply funds designated as reserves against any outstanding amounts owed to us under this agreement. Easy Pay may also debit the reserve to exercise its rights under this agreement to collect any amounts due to us including, without limitation, rights of set-off and recoupment. You agree that you are liable for all obligations associated with your use of the Services even after the release of any reserve. You will not be entitled to a return of any sums remaining in reserve for up to 270 days following termination of your use of the Services. 6.5 TAXES & IRS REPORTING To comply with IRS 1099-K reporting requirements, we may be required to file a form 1099-K with the U.S. Internal Revenue Service (IRS). We may collect federal backup withholding upon transaction settlement, on behalf of the IRS, from you if you do not supply your legal name, SSN or EIN, or if you fail to respond to a request from us to verify the same.

5. YOUR WARRANTIES & INDEMNIFICATION

5.1 REPRESENTATIONS AND WARRANTIES. You represent and warrant to us: (1) that all information you submit to us relating to your application to use and continued use of the Services is correct, complete, and fully describes and details the nature, type, and scope of the business in which you are engaged; (2) that you are at least 18 years of age; (3) that, if an individual account, you are a sole proprietorship validly existing in the United States or its territories, and if an entity, that the entity was validly formed, registered and is in good standing in at least one of the fifty United States or its territories; (4) that you have never been placed on the MasterCard MATCH system or the Combined Terminated Merchant File, and if so, you have disclosed this to us or to Partner Provider; and (5) that all transactions are bona fide and no transaction involves the use of a Card for any purpose other than the purchase of goods or services from you and does not involve a Cardholder obtaining cash from you unless allowed by the Rules and agreed in writing with us.

5.2 INDEMNIFICATION. You agree to indemnify, defend, and hold us harmless for and from any and all loss, cost, expense, claim, damage, and liability (including attorneys’ fees and costs, and collections costs) paid or incurred by us and arising from, caused by, or attributable to, any of the following: (1) any of your acts or omissions with respect to your use of the Services; (2) acting any Card transaction processed under this agreement, (3) any breach by you of this agreement; (4) willful misconduct, fraud, intentional tort or negligence by you or that of your employees, agents or representatives; (5) action by us exercising any right we have under this agreement, Laws, Rules, or Policies.

6. EASY PAY’S LIABILITY & DISCLAIMER OF WARRANTIES

6.1 LIMITATION OF LIABILITY. Under no circumstances shall Sponsor Bank’s or Easy Pay’s cumulative financial responsibility arising out of or related to this Agreement or the Services, including but not limited to liability for its failure to perform any obligation under this Agreement and whether brought in contract, tort, or any other cause of action, exceed the lesser of: (i) fees received and retained by Easy Pay from Merchant over the prior three month period accruing as of the date of the harm less interchange and pass-through costs; or (ii) $5,000.00. Except as otherwise provided for in this Agreement, in no event will Easy Pay or its respective directors, officers, employees, or affiliates, be liable for special, incidental, consequential, punitive damages, lost profits or any loss, theft, disappearance, or damage to data transmitted electronically in connection with this Agreement. Easy Pay will have no liability for any damages or losses that are partially or wholly caused by Merchant or its employees, agents, or third-party service providers. Easy Pay will have no liability for any damages or losses that were not reported to Easy Pay by Merchant within thirty days of when such damages or losses first occurred, whether or not discovered. For the avoidance of doubt, Easy Pay’s liability, if any, under this Agreement will be limited solely to direct, actual damages. Easy Pay will have no liability or responsibility for any action or inaction taken by the financial institution or other entity which issued the Cards. Easy Pay will have no liability or responsibility for the data security, or lack thereof, by any third-party service provider used by Easy Pay pursuant to this Agreement.

6.2 DISCLAIMER OF WARRANTIES. The Services are provided “AS IS” and “AS AVAILABLE.” We make no warranty, express or implied, regarding the Services, and nothing contained in this agreement will constitute such a warranty. To the extent allowed by Law, we disclaim all implied warranties and conditions, express, implied or statutory, including without limitation those of merchantability and fitness for a particular purpose, the implied warranties of title and/or non-infringement. Some states do not allow the disclaimer of implied warranties, so the foregoing disclaimers may not apply to you. Each party acknowledges that it has not entered into this agreement in reliance upon any warranty or representation except those specifically set forth herein.

7. INTELLECTUAL PROPERTY RESTRICTIONS

All materials or intellectual property provided to you in connection with the Services (“Materials”) are protected intellectual property of Easy Pay or its third-party providers. You shall not (and shall not permit any agent or third party) to: (a) copy all or any portion of any Materials; (b) decompile, disassemble, or otherwise reverse engineer (except to the extent expressly permitted by applicable law, notwithstanding a contractual obligation to the contrary) the Services or Materials, or any portion thereof, or determine or attempt to determine any source code, algorithms, methods, or techniques used or embodied in the Services or any Materials or any portion thereof; (c) modify, translate, or otherwise create any derivative works based upon the Services or any Materials; (d) distribute, disclose, market, rent, lease, assign, sublicense, pledge, or otherwise transfer the Services or any Materials, in whole or in part, to any third party; or (e) remove or alter any copyright, trademark, or other proprietary notices, legends, symbols, or labels appearing on the Services or in any Materials.

8. SECURITY INTEREST, BANKRUPTCY, PERSONAL GUARANTEE

This agreement will constitute a security agreement under the Uniform Commercial Code wherein you grant to us a security interest in and lien upon: (a) all funds representing amounts owing you under this agreement at any time in the Merchant Pool Account, regardless of the source of such funds; (b) all funds at any time in reserve, regardless of the source of such funds; (c) present and future Card transactions; (d) any amount which may be due to you under this agreement, including, without limitation all rights to receive any payments or credits under this agreement; and (e) upon our request, any other security to secure your obligations under this agreement. (collectively the “Secured Assets”). You agree to execute financing statements or other documents to evidence this security interest. These security interests and liens will secure all of your obligations under this agreement and any other agreements now existing or later entered into between you and us and we will have all rights afforded under the Uniform Commercial Code, any other applicable law, and in equity. We may exercise this security interest without notice or demand by making an immediate withdrawal or freezing of your Secured Assets. You represent and warrant that no other person or entity has a security interest in the Secured Assets and you agree to obtain from us written consent prior to granting a security interest of any kind in the Secured Assets to a third party. You agree that this is a contract of recoupment and as such, we are not required to file a motion for relief from a bankruptcy action automatic stay to realize on any of the Secured Assets. Nevertheless, you agree not to contest or object to any motion for relief from the automatic stay filed by us.

9. GOVERNING LAW

9.1 GOVERNING LAW, JURISDICTION, WAIVER OF JURY TRIAL. This Agreement will be governed by and construed in accordance with the laws of Maine, exclusive of its rules regarding conflicts of laws. Merchant agrees that the exclusive jurisdiction and venue for any disputes hereunder shall be an appropriate court located in Cumberland, Maine. Merchant and Easy Pay waive any right to trial by jury in any action concerning any rights or dispute under this Agreement. The prevailing party in an action brought against the other to enforce the terms of this Agreement or any rights or obligations hereunder, will be entitled to receive its reasonable costs and expenses of bringing such action including its reasonable attorney’s fees in addition to any other recoverable damages.

9.2 ARBITRATION; WAIVER OF JURY TRIAL; OTHER RIGHTS. At either party’s election any and all disputes, claims or controversies by any party hereto, arising out of or in connection with this Agreement (or any agreement executed in association herewith), including but not limited to claims arising in tort and/or in contract, shall be decided exclusively and finally by binding arbitration.  THERE SHALL BE NO RIGHT TO A JURY TRIAL.  The arbitration hearing shall be conducted at a location within twenty (20) miles of Merchant’s business address at the time of such arbitration, or, if Merchant has no business address at the time of the arbitration, then within twenty (20) miles of Merchant’s business address as specified in this Agreement.  The arbitration shall be conducted before the American Arbitration Association (the “AAA”), pursuant to the AAA Commercial Arbitration Rules, which can be obtained on line at www.adr.org, or by calling the AAA at 1-800-778-7879.  Easy Pay will provide a copy of the Arbitration Rules to Merchant via email upon written request.  The arbitration shall be conducted by one neutral arbitrator appointed by the AAA.  The arbitrator shall have actual experience in and knowledge of the Payments Processing Industry to the greatest extent practicable, unless the parties agree otherwise.

The parties agree that the Federal Arbitration Act (“FAA”) and related federal law shall govern the interpretation, implementation and enforcement of this Section to the fullest extent possible.  In the event state law shall govern, the laws of the State of Maine shall apply.

The arbitrator shall have the authority to award any relief at law, or in equity which would otherwise be available in a court of law.  The arbitration filing fee and the arbitrator’s fee shall be paid by Easy Pay, as the Parties intend that the costs of arbitration to Merchant be the same or less than the cost of filing and prosecuting a lawsuit.

9.3 NO CLASS ACTIONS. The Parties hereto acknowledge and agree that this arbitration shall be solely between the Parties to this Agreement, and no class arbitration, or other representative action may be undertaken by the arbitrator.  The parties further agree that the arbitrator shall not have the power to combine this with any other arbitration or to treat this as a representative action, or as a class action.

9.4 OPT-OUT. Merchant may elect to opt out of this Waiver of Jury Trial and Arbitration Provision by sending written notice to Easy Pay to be received by the close of business on or before the tenth (10th) calendar day after this Agreement is executed, time being “of the essence”.  However, opting out of these provisions do not entitle Merchant to join any class action, or class arbitration proceedings.  Opt-out notices received after this deadline shall be of no force and effect.  The opt-out shall not modify any of the parties other rights and remedies contained herein.

10. MISCELLANEOUS

10.1 AGENCY RELATIONSHIP. You authorize us with respect to the Services to act as your agent for the limited purposes of holding, receiving, and disbursing funds on your behalf. Your authorization permits Easy Pay to generate an electronic funds transfer to process each payment transaction. This authorization will continue until this agreement is terminated. You agree that Easy Pay’s receipt of transaction proceeds satisfies your customers’ obligations to you.

10.2 FORCE MAJEURE. No party will be liable to the other party for any failure or delay in its performance of this agreement if such failure or delay arises out of causes beyond the control and without the fault or negligence of such party.

10.3 SEVERABILITY AND WAIVER. If any provision of this agreement is held invalid, illegal, void, or unenforceable by reason of any judicial decision, all other provisions of this agreement shall nevertheless remain in full force and effect. No course of dealing, delay, or failure to enforce any provision or exercise any right under this agreement by us shall be construed as a waiver or estoppel of such provision or right, nor shall it amend this agreement or affect the validity of this agreement or curtail our ability to enforce such provision or exercise such right in the future. All waivers must be in writing and signed by us.

10.4 RIGHTS AND REMEDIES CUMULATIVE. The rights conferred upon us in this agreement are not intended to be exclusive of each other or of any other rights and remedies we have under this agreement, at law, or in equity. Rather, each right we have at law or in equity will be cumulative and concurrent and in addition to every other right.

10.5 ENTIRE AGREEMENT. This agreement, including, Policies, the Rules, and any amendment or supplement to this agreement or other referenced agreements, all of which are incorporated into this agreement, constitutes the entire agreement between the parties, and all prior or other agreements or representations, written or oral, are superseded by this agreement.

10.6 CONSTRUCTION. The headings used in this agreement are inserted for convenience only and will not affect the interpretation of any provision. The language used will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party.

10.7 ASSIGNABILITY. This agreement may be assigned by us but may not be assigned by you without our prior written consent.

10.8 AMENDMENTS. You are bound by this agreement as it may be amended or revised at any time upon notice to you. It is your sole responsibility to review and maintain familiarity with the agreement, Rules, Law and Policies. If you do not agree to the aforementioned amendments and do not wish to be bound the terms and conditions thereto, you shall provide written notice to Provider Partner. If you do not agree to the terms of the amendment, your right to use the Services will be terminated.

10.9 CONSENT TO DO BUSINESS ELECTRONICALLY, ELECTRONIC COMMUNICATION, AND NOTICES. You consent to do business electronically, which means that you agree that all Easy Pay agreements and Policies, including amendments thereto and documents referenced therein, as well as any notices, instructions, or any other communications regarding transactions and your agreements with Easy Pay (all of which are referred to herein as the “Communications”) may be presented, delivered, stored, retrieved, and transmitted electronically. You must keep Provider Partner informed of any change in your electronic or mailing address or other contact information. You may withdraw your consent to doing business under the Easy Pay agreements and policies electronically at any time by contacting Provider Partner and withdrawing your consent to transact business electronically. If you do so, this agreement will be terminated. However, any Communications or transactions between us before your withdrawal of such consent, will be valid and binding. Any written notice to us must be sent to: Easy Pay Solutions, Inc., PO Box 2380, South Portland, ME 04116, and if to you: to the last address shown on Provider Partner’s records.

EASY PAY SOLUTIONS, INC. DISCLOSURE SCHEDULE

This disclosure schedule sets forth a summary of certain information in the Sub-Merchant Agreement (“Agreement”) for your information only and does not provide all information pertinent to the Agreement. Easy Pay Solutions, Inc. (“Easy Pay”) recommends thoroughly reviewing the Agreement and contacting us with any questions you may have. In the event of any conflict between the terms of the Agreement and the terms of this disclosure schedule, the terms of the Agreement shall control. Capitalized terms not otherwise defined in this disclosure schedule have the meanings set forth in the Agreement. Date of the Contract: The Agreement is binding on Easy Pay on the earlier of (a) Easy Pay’s acceptance of the Agreement or (b) Easy Pay’s processing of transactions delivered to Easy Pay by Merchant pursuant to the Agreement.

Member: Unless otherwise specified in the Merchant Application or upon notice to Merchant, the Member is: KeyBank National Association, 127 Public Square, Cleveland , OH 44114, 877-888-7185, [email protected]

Easy Pay: Easy Pay Solutions, Inc., PO Box 2380, South Portland, ME 04116, Phone: 877-724-8472, [email protected]

Term and Termination: The Agreement is for a term of three (3) years and will automatically renew for one-year terms until terminated. Either party may terminate this Agreement at the end of any such term by providing notice not less than sixty (60) days prior to the end of the then current term. In addition, Easy Pay may terminate the Agreement at any time, but will generally only do so for cause or if required by Sponsor Bank or a Card Brand. Payment for Transactions: Merchant will be provisionally paid for transactions after the expiration of any applicable hold period. The payment amount may be gross, in which case Easy Pay may withdraw the associated fees from your account when due or on a periodic basis. Alternatively, the payment amount may be net, in which case the deposit will be less credits associated with any prior transactions, fees, assessments, and other amounts due. If a reserve is established on Merchant’s account, the amount deposited may be net of the amount allocated to a reserve account. Deposits to Merchant will usually be within one to three business days, but can be up to the full time period in which any transaction processed by Merchant is at risk of Chargeback. Fees/Rates: The fees and rates charged to you can be found in the Merchant Application, the Agreement, the Rules, and Merchant’s agreement with its software provider. If you are unsure about the calculation or applicability of any fee, please contact us and we will explain it to you in greater detail. The way the most common fees are calculated is as follows: “Per ACH Transaction Fees” are a fixed amount charged per each ACH transaction initiated or submitted to Easy Pay for processing. “ACH Reject / NSF Fees” are fixed fees charged per each ACH transaction which is rejected or returned for any reason, the most common reason being insufficient funds in the debited account. “Per Card Transaction Fees” consist of a discount rate and may also include a fixed fee charged per transaction. The discount rate is a percentage of the gross amount of each transaction processed. A portion of the discount rate is the Interchange Rate. The discount rate may be fixed, set by category (e.g., qualified, mid-qualified, and non-qualified), or set based on the Interchange Rate (e.g., the Interchange Rate plus a certain percentage). The category into which a transaction will fall depends on a number of factors, including but not limited to the card type, transaction type, payment method, authorization, and timeliness of submitting the transaction/batch. Easy Pay can provide information to you about the category applicable to a particular transaction upon your request. “Chargeback /NSF Fee” is a fixed fee charged for each Chargeback, which may be done by the customer or issuing bank in accordance with the Rules. Other common fees include the Monthly Fee which is an administrative fee that will be charged to Merchant on a monthly basis and the Setup Fee which is a one-time fee due on the Effective Date. Additional fees may apply as set forth in the Agreement and each Card Brand may surcharge one or more transactions based on the type of transaction, method of transaction, transaction classification, and other metrics set forth in the Rules. Merchant is responsible for reviewing the applicable Rules (available on each Card Brand website or upon request from Easy Pay) regarding applicable surcharges. If Merchant purchases or leases equipment from Easy Pay, the payment amount(s), and the calculation for such amounts, will be set forth in a separate purchase or lease agreement between Easy Pay and Merchant. Modification: The Agreement, including but not limited to the fees charged, may be modified upon notice to Merchant or posting such change to Easy Pay’s website, as set forth in Section 11.9 of the Agreement. Complaint Handling: Merchant is responsible for handling any complaint with regard to a customer. If Merchant has a complaint with regard to Easy Pay, Merchant will immediately notify Easy Pay of such complaint. Easy Pay will handle the receipt of complaints in accordance with its current policies and procedures. If Easy Pay is unable to resolve an issue to Merchant’s satisfaction, the complaint resolution procedures in the Agreement will control the process. Statements: Merchant statements are made available to Merchant through the software solution which Merchant uses to submit transactions to Easy Pay.

Bank Disclosure: Member Bank Information: KeyBank National Association, 127 Public Square, Cleveland , OH 44114, 877-888-7185, [email protected]

Important Member Bank Responsibilities: 1. Member Bank is the only entity approved to extend acceptance of Card Brand products directly to a Merchant. 2. Member Bank must be a principal to this Tri-party Sub-merchant Agreement. 3. Member Bank is responsible for and must provide settlement funds to you. 4. Member Bank is responsible for all funds held in reserve that are derived from settlement. 5. Member Bank is responsible for educating you on pertinent Card Brand Rules with which you must comply; but this information may be provided to you by Easy Pay.

Your Important Responsibilities: 1. Ensure compliance with cardholder data security and storage requirements. 2. Maintain fraud and chargebacks below Card Brand thresholds. 3. Review and understand the terms of this Tri-party Sub-merchant Agreement. 4. Comply with applicable Card Brand Rules. You may download Visa Regulations from Visa’s website at: http://corporate.visa.com/about-visa/ourbusiness/operating-regulations.shtml You may download MasterCard Regulations from MasterCard’s website at: http://www.mastercard.com/us/merchant/support/rules.html 5. Retain a signed copy of this disclosure page.

The responsibilities listed above do not supersede terms of the Easy Pay Sub-merchant Tri-Party Agreement and are provided to ensure you understand some important obligations of each party and that the Member Bank is the ultimate authority should you experience any problems.