Document:

Form of Advisory Agreement

 Exhibit 10.1 
  
 FORM OF ADVISORY AGREEMENT 
  
 THIS ADVISORY AGREEMENT, dated as of October __, 2005, is between WELLS REAL ESTATE INVESTMENT TRUST II, INC., a Maryland corporation (the
“Company”), and WELLS CAPITAL, INC., a Georgia corporation (the “Advisor”). 
  
 W I T N E S S E T H 
  
 WHEREAS,
the Company has filed with the Securities and Exchange Commission a Registration Statement on Form S-11 (no. 333-125643) (the “Registration Statement”) covering the issuance of common stock; 
  
 WHEREAS, the Company qualifies as a REIT (as defined below), and intends to
invest its funds in investments permitted by the terms of the Company’s Articles of Incorporation and Sections 856 through 860 of the Code (as defined below); 
  
 WHEREAS, the Company desires to avail itself of the experience, sources of information, advice, assistance and certain
facilities available to the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the Board of Directors of the Company all as provided herein; and

  
 WHEREAS, the Advisor is willing to undertake to render such
services, subject to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

  
 1. Definitions. As used in this Advisory
Agreement (the “Agreement”), the following terms have the definitions hereinafter indicated: 
  
 Acquisition Expenses. Any and all expenses, excluding the fee payable to the Advisor pursuant to Section 8(b), incurred by the Company, the
Advisor, or any Affiliate of either in connection with the selection, acquisition or development of any Property, whether or not acquired, including, without limitation, legal fees and expenses, travel and communications expenses, costs of
appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, and title insurance premiums. 
  
 Acquisition Fees. Any and all fees and commissions, exclusive of Acquisition Expenses, paid by any Person to any other Person (including any fees
or commissions paid by or to any Affiliate of the Company or the Advisor) in connection with purchase, development or construction of any Property. Included in the computation of such fees or commissions shall be any real estate commissions,
acquisition fees, finder’s fees, selection fees, Development Fees, Construction Fees, nonrecurring management fees, loan fees, points, or any other fees or commissions of a similar nature. Excluded shall be Development Fees and Construction
Fees 

  

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paid to Persons not Affiliated with the Advisor in connection with the actual development and construction of a Property. 
  
 Adjusted Cost. The sum of (a) the actual amount invested on
behalf of the Company in the Properties plus (b) with respect to Joint Ventures, the actual amount invested on behalf of the Company in the Joint Ventures plus the Company’s allocable share of capital improvements made by the Joint Venture
from cash flows generated by the Joint Venture (in all cases excluding from the calculation thereof amounts relating to Vacant Properties), until such time as Advisor may estimate the value of all interests the Company holds in Properties or Joint
Ventures for ERISA reporting purposes; and after such time, “Adjusted Cost” means the lesser of (1) sum of (x) the actual amount invested on behalf of the Company in the Properties plus (y) with respect to Joint Ventures,
the actual amount invested on behalf of the Company in the Joint Ventures plus the Company’s allocable share of capital improvements made by the Joint Venture from cash flows generated by the Joint Venture (in all cases excluding from the
calculation thereof amounts relating to Vacant Properties), or (2) the aggregate value of the Company’s interest in the Properties and Joint Ventures as established in connection with the most recent estimated valuation to assist ERISA
fiduciaries in fulfilling their annual valuation and reporting responsibilities. 
  
 Advisor. Wells Capital, Inc., a Georgia corporation, any successor advisor to the Company, or any Person(s) to which Wells Capital, Inc. or any successor advisor subcontracts substantially all of its functions.

  
 Affiliate or Affiliated. An Affiliate of another Person
includes only the following: (i) any Person directly or indirectly controlling, controlled by, or under common control with such other Person; (ii) any Person directly or indirectly owning, controlling, or holding with the power to vote
10% or more of the outstanding voting securities of such other Person; (iii) any legal entity for which such Person acts as an executive officer, director, trustee, or general partner; (iv) any Person 10% or more of whose outstanding
voting securities are directly or indirectly owned, controlled, or held, with power to vote, by such other Person; and (v) any executive officer, director, trustee, or general partner of such other Person. An entity shall not be deemed to
control or be under common control with an Advisor-sponsored program unless (i) the entity owns 10% or more of the voting equity interests of such program or (ii) a majority of the board (or equivalent governing body) of such program is
comprised of Affiliates of the entity. 
  
 Appraised Value.
Value according to an appraisal made by an Independent Appraiser. 
  
 Articles of Incorporation. The Articles of Incorporation of the Company under Title 2 of the Corporations and Associations Article of the Annotated Code of Maryland, as amended from time to time. 
  
 Asset Management Fee. The Asset Management Fee payable to the Advisor
as defined in Section 8(a). 
  
 Asset Management Fee
Ceiling. The ceiling on the Asset Management Fee as defined in Section 8(a). 
  

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 Average Invested Assets. For a specified period, the average of the aggregate book value of the
assets of the Company invested, directly or indirectly, in Properties and Loans secured by real estate before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each
month during such period. 
  
 Board of Directors or Board.
The persons holding such office, as of any particular time, under the Articles of Incorporation of the Company, whether they be the Directors named therein or additional or successor Directors. 
  
 Bylaws. The bylaws of the Company, as the same are in effect from time
to time. 
  
 Capped O&O Expenses. All Organizational
and Offering Expenses other than selling commissions and the dealer manager fee as described under “Plan of Distribution” in the Registration Statement. 
  
 Cash from Financings. Net cash proceeds realized by the Company from the financing of Property or from the
refinancing of any Company indebtedness. 
  
 Cash from
Sales. Net cash proceeds realized by the Company from the sale, exchange or other disposition of any of its assets after deduction of all expenses incurred in connection therewith. Cash from Sales shall not include Cash from Financings.

  
 Cash from Sales and Financings. The total sum of Cash
from Sales and Cash from Financings. 
  
 Ceiling Excess.
The extent to which the Asset Management Fee Ceiling exceeds the sum of the three previous monthly Asset Management Fee payments, as defined in Section 8(a). 
  
 Code. Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any
provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 
  
 Company. Wells Real Estate Investment Trust II, Inc., a corporation
organized under the laws of the State of Maryland. 
  
 Competitive Real Estate Commission. A real estate or brokerage commission for the purchase or sale of property which is reasonable, customary, and competitive in light of the size, type, and location of the property. 
  
 Conflicts Committee. “Conflicts Committee” shall have the
meaning set forth in the Articles of Incorporation. 
  
 Construction Fee. A fee or other remuneration for acting as general contractor and/or construction manager to construct improvements, supervise and coordinate projects or to provide major repairs or rehabilitation on a Property.

  

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 Contract Sales Price. The total consideration received by the Company for the sale of a Property.

  
 Cumulative Return. For the period for which the
calculation is being made, the percentage resulting from dividing (A) the total Distributions paid on each Distribution date during such period (without regard to Distributions paid out of Cash from Sales and Financings), by (B) the
product of (i) the average Invested Capital for such period (calculated on a daily basis), and (ii) the number of days elapsed during such period. 
  
 Development Fee. A fee for the packaging of a Property, including negotiating and approving plans, and undertaking to assist in obtaining zoning
and necessary variances and necessary financing for the Property, either initially or at a later date. 
  
 Director. A member of the Board of Directors of the Company. 
  
 Disposition Fee. The Disposition Fee as defined in Paragraph 8(c). 
  
 Distributions. Any distributions of money or other property by the
Company to owners of Shares, including distributions that may constitute a return of capital for federal income tax purposes. 
  
 Gross Proceeds. The aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for
Organization and Offering Expenses. 
  
 Independent
Appraiser. A person or entity with no material current or prior business or personal relationship with the Advisor or the Directors, who is engaged to a substantial extent in the business of rendering opinions regarding the value of assets of
the type held by the Company, and who is a qualified appraiser of real estate as determined by the Board. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate Appraisers (“M.A.I.”) or the
Society of Real Estate Appraisers (“S.R.E.A.”) shall be conclusive evidence of such qualification. 
  
 Invested Capital. The amount calculated by multiplying the total number of Shares purchased by stockholders by the issue price, reduced by the
portion of any Distribution that is attributable to Net Sales Proceeds and by any amounts paid by the Company to repurchase Shares pursuant to the Company’s plan for redemption of Shares. 
  
 Joint Venture. Any joint venture, limited liability company or other
Affiliate of the Company that owns, in whole or in part on behalf of the Company, any Properties. 
  
 Listing. The listing of the Shares on a national securities exchange or over-the-counter market. 
  
 NASAA Guidelines. The NASAA Statement of Policy Regarding Real Estate
Investment Trusts as in effect on the date hereof. 
  

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 Net Asset Value. The excess of (i) the aggregate of the Adjusted Cost over (ii) the
aggregate outstanding debt of the Company and the Partnership (excluding debt borrowed for purposes other than acquiring or refinancing Properties). 
  
 Net Income. For any period, the total revenues applicable to such period, less the total expenses applicable to such period excluding additions to
reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, Net Income for purposes of calculating total allowable Operating Expenses (as defined herein) shall exclude the gain from the sale of the Company’s
assets. 
  
 Net Sales Proceeds. In the case of a
transaction described in clause (i) (A) of the definition of Sale, the proceeds of any such transaction less the amount of all real estate commissions and closing costs paid by the Company. In the case of a transaction described in clause
(i) (B) of such definition, Net Sales Proceeds means the proceeds of any such transaction less the amount of any legal and other selling expenses incurred in connection with such transaction. In the case of a transaction described in
clause (i) (C) of such definition, Net Sales Proceeds means the proceeds of any such transaction actually distributed to the Company from the joint venture. In the case of a transaction described in clause (ii) of the definition of
Sale, Net Sales Proceeds means the proceeds of such transaction or series of transactions less all amounts generated thereby and reinvested in one or more Properties within 180 days thereafter and less the amount of any real estate commissions,
closing costs, and legal and other selling expenses incurred by or allocated to the Company in connection with such transaction or series of transactions. Net Sales Proceeds shall not include any reserves established by the Company in its sole
discretion. 
  
 Offering. Any offering of Shares that is
registered with the SEC, excluding Shares offered under any employee benefit plan. 
  
 Operating Expenses. All costs and expenses incurred by the Company, as determined under generally accepted accounting principles, which in any way are related to the operation of the Company or to Company
business, including fees paid to the Advisor, but excluding (i) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and
other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization
and bad loan reserves, (v) incentive fees paid in compliance with Section IV.F. of the NASAA Guidelines and (vi) Acquisition Fees, Acquisition Expenses, real estate commissions on resale of property, and other expenses connected with the
acquisition, disposition, and ownership of real estate interests, mortgage loans or other property (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property). 
  
 Organization and Offering Expenses. All expenses incurred by and to be
paid from the assets of the Company in connection with and in preparing the Company for registration of and subsequently offering and distributing its Shares to the public, which may include but are not limited to, total underwriting and brokerage
discounts and commissions (including fees of the underwriters’ attorneys); expenses for printing, engraving and mailing; salaries of employees 

  

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while engaged in sales activity; charges of transfer agents, registrars, trustees, escrow holders, depositaries and experts; and expenses of qualification of
the sale of the securities under Federal and State laws, including taxes and fees, accountants’ and attorneys’ fees. 
  
 Partnership. Wells Operating Partnership II, L.P., a Delaware limited partnership formed to own and operate properties on behalf of the Company.

  
 Person. An individual, corporation, partnership,
estate, trust (including a trust qualified under Section 401(a) or 501(c) (17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code,
association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or political subdivision thereof, and also includes a group as that term is used for purposes
of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended. 
  
 Property or Properties. Any real property or properties transferred or conveyed to the Company or the Partnership, either directly or indirectly. 
  
 Property Manager. Any entity that has been retained to perform and carry out at one or more of the Properties
property management services, excluding persons, entities or independent contractors retained or hired to perform facility management or other services or tasks at a particular Property, the costs for which are passed through to and ultimately paid
by the tenant at such Property. 
  
 REIT. A “real
estate investment trust” under Sections 856 through 860 of the Code. 
  
 Sale or Sales. (i) Any transaction or series of transactions whereby: (A) the Company or the Partnership sells, grants, transfers, conveys, or relinquishes its ownership of any Property or portion
thereof, including the transfer of any Property that is the subject of a ground lease, and including any event with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the Company
or the Partnership sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all of the interest of the Company or the Partnership in any joint venture in which it is a co-venturer or partner; or (C) any joint
venture in which the Company or the Partnership as a co-venturer or partner sells, grants, transfers, conveys, or relinquishes its ownership of any Property or portion thereof, including any event with respect to any Property which gives rise to
insurance claims or condemnation awards, but (ii) not including any transaction or series of transactions specified in clause (i) (A), (i) (B), or (i) (C) above in which the proceeds of such transaction or series of
transactions are reinvested in one or more Properties within 180 days thereafter. 
  
 Shares. The Company’s shares of common stock, par value $0.01 per share. 
  
 Stockholders. The registered holders of the Shares. 
  
 Stockholders’ 8% Return. As of each date, an aggregate amount equal to an 8% Cumulative Return. 
  

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 Subordinated Incentive Fee. The fee payable to the Advisor under certain circumstances if the
Shares are listed on a national securities exchange or over-the-counter market as defined in Paragraph 8(e). 
  
 Subordinated Performance Fee Due Upon Termination. Subordinated Performance Fee Due Upon Termination means a fee equal to (1) 10% of the
amount, if any, by which (a) the Appraised Value of the Company’s Properties at the Termination Date, less amounts of all indebtedness secured by the Company’s Properties, plus total Distributions through the Termination Date exceeds
(b) the sum of Invested Capital, plus Distributions attributable to Net Sales Proceeds, plus total Distributions required to be made to the stockholders in order to pay the Stockholders’ 8% Return from inception through the termination
date less (2) any prior payment to the Advisor of a Subordinated Share of Net Sales Proceeds. 
  
 Subordinated Share of Net Sales Proceeds. The Subordinated Share of Net Sales Proceeds as defined in Paragraph 8(d). 
  
 Termination Date. The date of termination of the Agreement.

  
 Vacant Property. A Property that has been economically
vacant for (i) the period from acquisition until the applicable measurement date, if less than six months or (ii) at least six months as of the applicable date of measurement. 
  
 2%/25% Guidelines. The requirement pursuant to the NASAA Guidelines that, in any 12-month period, total Operating
Expenses not exceed the greater of 2% of the Company’s Average Invested Assets during such 12-month period or 25% of the Company’s Net Income over the same 12-month period. 
  
 2. Appointment. The Company hereby appoints the Advisor to serve as its advisor and asset manager on the terms
and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment. 
  
 3. Duties and Authority of the Advisor. The Advisor undertakes to use its reasonable efforts (1) to present to the Company potential investment opportunities to provide a continuing and suitable
investment program consistent with (i) the investment objectives and policies of the Company as determined and adopted from time to time by the Board and (ii) the investment allocation method described at Section 11(b) of this
agreement and (2) to manage, administer, promote, maintain, and improve the Properties on an overall portfolio basis in a diligent manner. The services of the Advisor are to be of scope and quality not less than those generally performed by
professional asset managers of other similar property portfolios. The Advisor shall make available the full benefit of the judgment, experience and advice of the members of the Advisor’s organization and staff with respect to the duties it will
perform under this Agreement. The Advisor shall also obtain Property Managers, which may include Affiliates of the Advisor, to manage, promote, and lease the Properties. To facilitate the Advisor’s performance of these undertakings, but subject
to the restrictions included in Paragraphs 4 and 7 and to the continuing and exclusive authority of the Board over the management of the Company and the Partnership, the Company hereby delegates to the Advisor the authority to, and the Advisor
hereby agrees to, either directly or by engaging an Affiliate: 
  
 (a) serve as the Company’s investment and financial advisor and provide research and economic and statistical data in connection with the Company’s assets and investment policies; 
  

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 (b) provide the daily management of the Company and perform and supervise the various administrative
functions reasonably necessary for the management of the Company; 
  
 (c) maintain and preserve the books and records of the Company, including a stock ledger reflecting a record of the Stockholders and their ownership of the Company’s Shares and acting as transfer agent for the Company’s Shares and
maintaining the accounting and other record-keeping functions at the Property and Company levels; 
  
 (d) investigate, select, and, on behalf of the Company, engage and conduct business with such Persons as the Advisor deems necessary to the proper
performance of its obligations hereunder, including but not limited to consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents
for collection, insurers, insurance agents, banks, builders, developers, property owners, mortgagors, and any and all agents for any of the foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity deemed by the
Advisor necessary or desirable for the performance of any of the foregoing services, including but not limited to entering into contracts in the name of the Company with any of the foregoing; 
  
 (e) consult with the officers and the Board of the Company and assist the
Board in the formulation and implementation of the Company’s financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment objectives and
policies of the Company and in connection with any borrowings proposed to be undertaken by the Company; 
  
 (f) oversee the performance by the Property Managers of their duties, including collection and proper deposits of rental payments and payment of Property
expenses and maintenance; 
  
 (g) conduct periodic on-site
property visits to some or all (as the Advisor deems reasonably necessary) of the Properties to inspect the physical condition of the Properties and to evaluate the performance of the related Property Manager of its duties; 
  
 (h) review, analyze and comment upon the operating budgets, capital budgets
and leasing plans prepared and submitted by each Property Manager and aggregate these property budgets into the Company’s overall budget; 
  
 (i) review and analyze on-going financial information pertaining to each Property and the overall portfolio of Properties; 
  
 (j) formulate and oversee the implementation of strategies for the
administration, promotion, management, operation, maintenance, improvement, financing and refinancing, marketing, leasing, and disposition of Properties on an overall portfolio basis; 
  

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 (k) subject to the provisions of Paragraphs 3(l) and 4 hereof, (i) locate, analyze and select
potential investments in Properties, (ii) structure and negotiate the terms and conditions of transactions pursuant to which investment in Properties will be made; (iii) make investments in Properties on behalf of the Company or the
Partnership in compliance with the investment objectives and policies of the Company; (iv) arrange for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale
of, or otherwise deal with the investments in, Property; (v) enter into leases and service contracts for Property, including oversight of Affiliated companies that perform property management services for the Company; (vi) oversee
non-affiliated property managers and other non-affiliated Persons who perform services for the Company; and (vii) to the extent necessary, perform all other operational functions for the maintenance and administration of such Property;

  
 (l) obtain the prior approval of the Board for any and all
investments in Properties (as well as any financing acquired by the Company or the Partnership in connection with such investment); 
  
 (m) if a transaction requires approval by the Board of Directors, deliver to the Board of Directors all documents required by them to properly evaluate
the proposed investment in the Property; 
  
 (n) negotiate on
behalf of the Company with banks or lenders for loans to be made to the Company, and negotiate on behalf of the Company with investment banking firms and broker-dealers or negotiate private sales of Shares and other securities or obtain loans for
the Company, but in no event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and provided, further, that any fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be
the responsibility of the Company; 
  
 (o) obtain reports (which
may be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of investments or contemplated investments of the Company in Properties; 
  
 (p) from time to time, or at any time reasonably requested by the Board, provide information or make reports to the Board
related to its performance of services to the Company under this Agreement; 
  
 (q) from time to time, or at any time reasonably requested by the Board, make reports to the Board of the investment opportunities it has presented to other Advisor-sponsored programs or that it has pursued directly
or through an Affiliate; 
  
 (r) provide the Company with all
necessary cash management services; 
  
 (s) deliver to or maintain
on behalf of the Company copies of all appraisals obtained in connection with the investments in Properties; 
  
 (t) notify the Board of all proposed material transactions before they are completed; 
  
 (u) at the direction of Company management, prepare the Company’s periodic reports and other filings made under the
Securities Exchange Act of 1934, as amended, and the 

  

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Company’s Post-Effective Amendments to the Registration Statement as well as all related prospectuses, prospectus supplements and supplemental sales
literature and assist in connection with the filing of such documents with the appropriate regulatory authorities; and 
  
 (v) do all things necessary to assure its ability to render the services described in this Agreement. 
  
 4. Modification or Revocation of Authority of Advisor. The
Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority or approvals set forth in Paragraph 3, provided however, that such modification or revocation shall be effective upon receipt by the Advisor and shall
not be applicable to investment transactions to which the Advisor has committed the Company prior to the date of receipt by the Advisor of such notification. 
  
 5. Bank Accounts. The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Company or in the
name of the Company and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company, under such terms and conditions as the Board may approve, provided that no funds
shall be commingled with the funds of the Advisor; and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Board and to the auditors of the Company. 
  
 6. Records; Access. The Advisor shall maintain appropriate
records of all its activities hereunder and make such records available for inspection by the Board and by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business hours. The Advisor shall at
all reasonable times have access to the books and records of the Company. 
  
 7. Limitations on Activities. Anything else in this Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment made in good faith, would
(a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under the Investment Company Act of 1940, as amended, or (c) violate any law, rule, regulation or statement of policy of any governmental
body or agency having jurisdiction over the Company, its Shares or its other securities, or the Articles of Incorporation or Bylaws, except if such action shall be ordered by the Board, in which case the Advisor shall notify promptly the Board of
the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Board. In such event the Advisor shall have no liability for acting in
accordance with the specific instructions of the Board so given. Notwithstanding the foregoing, the Advisor, its directors, officers, employees and stockholders, and stockholders, directors and officers of the Advisor’s Affiliates shall not be
liable to the Company or to the Board or stockholders for any act or omission by the Advisor, its directors, officers or employees, or stockholders, directors or officers of the Advisor’s Affiliates except as provided in Paragraphs 18 and 19 of
this Agreement. 
  

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 8. Fees. 
  
 (a) Asset Management Fee. Subject to the overall limitations contained below in this Section 8(a), commencing on
the date hereof, the Advisor shall be paid for the asset management services included in the services described in Section 3 a monthly fee (the “Asset Management Fee”) in an amount equal to one-twelfth of 0.75% of the Adjusted Cost
calculated on the last day of each preceding month. Notwithstanding the foregoing, the aggregate Asset Management Fee payable to Advisor pursuant to this Section 8(a) shall not exceed 1.0% of Net Asset Value, calculated on a quarterly basis as
of the last day of each quarter (the “Asset Management Fee Ceiling”). To the extent the Asset Management Fee Ceiling exceeds the sum of the three previous monthly Asset Management Fee payments (such amount the “Ceiling Excess”),
each next succeeding monthly payment of the Asset Management Fee will be applied against the Ceiling Excess until the Ceiling Excess is eliminated, but in no event will the Advisor be required to make a cash payment on account of any Ceiling Excess.

  
 (b) Acquisition Fees. The Advisor shall receive, as
compensation for services rendered in connection with the investigation, selection and acquisition (by purchase, investment or exchange) of Properties, Acquisition Fees in an amount equal to 2.0% of Gross Proceeds, payable by the Company upon the
Company’s receipt of Gross Proceeds; provided that upon termination of this Agreement, the Advisor will be obligated to reimburse the Company for any Acquisition Fee that has not been allocated to the purchase price of Company Properties as
provided for in Section 8.7 of the Articles of Incorporation. 
  
 (c) Disposition Fee. If the Advisor or an Affiliate provides a substantial amount of the services (as determined by the Conflicts Committee) in connection with the Sale of one or more Properties, the Advisor or such Affiliate shall
receive at closing a Disposition Fee equal to 1.0% of the sales price of such Property or Properties; provided, however, that no Disposition Fee shall be payable to the Advisor for Property Sales if such Sales involve the Company selling all or
substantially all of its Properties in one or more transactions designed to effectuate a business combination transaction (as opposed to a Company liquidation, in which case the Disposition Fee would be payable if the Advisor or an Affiliate
provides a substantial amount of services as provided above). Any Disposition Fee payable under this section may be paid in addition to real estate commissions paid to non-Affiliates, provided that the total real estate commissions (including such
Disposition Fee) paid to all Persons by the Company for each Property shall not exceed an amount equal to the lesser of (i) 6.0% of the aggregate Contract Sales Price of each Property or (ii) the Competitive Real Estate Commission for each
Property. 
  
 (d) Subordinated Share of Net Sales Proceeds.
The Subordinated Share of Net Sales Proceeds shall be payable to the Advisor in an amount equal to 10% of Net Sales Proceeds remaining after the Stockholders have received Distributions equal to the sum of the Stockholders’ 8% Return and 100%
of Invested Capital. Following Listing, no Subordinated Share of Net Sales Proceeds will be paid to the Advisor. 
  
 (e) Subordinated Incentive Fee. Upon Listing, the Advisor shall be entitled to the Subordinated Incentive Fee in an amount equal to 10.0% of the
amount by which (i) the market value of the outstanding stock of the Company, measured by taking the average closing price or average of bid and asked price, as the case may be, over a period of 30 days during which the 

  

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Shares are traded, with such period beginning 180 days after Listing (the “Market Value”), plus the total of all Distributions paid to Stockholders
from the Company’s inception until the date that Market Value is determined, exceeds (ii) the sum of (A) 100% of Invested Capital and (B) the total Distributions required to be paid to the Stockholders in order to pay the
Stockholders’ 8% Return from inception through the date Market Value is determined. The Company shall have the option to pay such fee in the form of cash, Shares, a promissory note or any combination of the foregoing. The Subordinated Incentive
Fee will be reduced by the amount of any prior payment to the Advisor of a Subordinated Share of Net Sales Proceeds. In the event the Subordinated Incentive Fee is paid to the Advisor following Listing, no other performance fee will be paid to the
Advisor. 
  
 (f) Changes to Fee Structure. In the event of
Listing, the Company and the Advisor shall negotiate in good faith to establish a fee structure appropriate for a perpetual-life entity. 
  
 9. Expenses. 
  
 (a) Reimbursable Expenses. In addition to the compensation paid to the Advisor pursuant to Paragraph 8 hereof, the Company shall pay directly or
reimburse the Advisor for all of the expenses paid or incurred by the Advisor (to the extent not reimbursable by another party, such as the dealer manager) in connection with the services it provides to the Company pursuant to this Agreement,
including, but not limited to: 
  
 (i) the
Organization and Offering Expenses; provided, however, that within 60 days after the end of the month in which an Offering terminates, the Advisor shall reimburse the Company to the extent (i) Capped O&O Expenses borne by the Company exceed
2.0% of the Gross Proceeds raised in a completed offering and (ii) Organization and Offering Expenses borne by the Company exceed 15% of the Gross Proceeds raised in a completed Offering; 
  
 (ii) Acquisition Fees and Acquisition Expenses payable to
unaffiliated Persons incurred in connection with the selection and acquisition of Properties; 
  
 (iii) the actual cost of goods and services used by the Company and obtained from entities not affiliated with the Advisor; 
  
 (iv) interest and other costs for borrowed money, including
discounts, points and other similar fees; 
  
 (v)
taxes and assessments on income or Property and taxes as an expense of doing business; 
  
 (vi) costs associated with insurance required in connection with the business of the Company or by the Board; 
  
 (vii) expenses of managing and operating Properties owned by
the Company, whether payable to an Affiliate of the Company or a non-affiliated Person; 
  

 12 

 (viii) all expenses in connection with payments to the Board and meetings of the Board
and Stockholders; 
  
 (ix) expenses associated
with Listing or with the issuance and distribution of securities other than the Shares, such as selling commissions and fees, advertising expenses, taxes, legal and accounting fees, listing and registration fees; 
  
 (x) expenses connected with payments of Distributions in
cash or otherwise made or caused to be made by the Company to the Stockholders; 
  
 (xi) expenses of organizing, redomesticating merging, liquidating or dissolving the Company or of amending the Articles of Incorporation
or the Bylaws; 
  
 (xii) expenses of maintaining
communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 
  
 (xiii) administrative service expenses, including all costs
and expenses incurred by Advisor in fulfilling its duties hereunder. Such costs and expenses may include (i) reasonable wages and salaries and other employee-related expenses of all employees of Advisor who are engaged in the management,
administration, operations, and marketing of the Company, including taxes, insurance and benefits relating to such employees, and legal, travel and other out-of-pocket expenses which are directly related to their services provided hereunder and
(ii) the Company’s allocable share of other overhead of the Advisor such as rent and utilities; and 
  
 (xiv) audit, accounting and legal fees. 
  
 No reimbursement shall be made for costs of personnel of the Advisor or its Affiliates to the extent that such personnel perform services in connection with services for
which the Advisor receives the Acquisition Fee or the Disposition Fee. 
  
 (b) Other Services. Should the Board request that the Advisor or any director, officer or employee thereof render services for the Company other than set forth in Paragraph 3, such services shall be separately compensated at such
rates and in such amounts as are agreed by the Advisor and the Conflicts Committee, subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this Agreement. 
  
 (c) Timing of and Limitations on Reimbursements. 
  
 (i) Expenses incurred by the Advisor on behalf of the
Company and payable pursuant to this Paragraph 9 shall be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the Company during each quarter, and shall deliver such statement to the
Company within 45 days after the end of each quarter. 
  
 (ii) The Company shall not reimburse the Advisor at the end of any fiscal quarter Operating Expenses that, in the four consecutive fiscal quarters then ended (the 

  

 13 

 
“Expense Year”) exceed (the “Excess Amount”) the greater of 2% of Average Invested Assets or 25% of Net Income (the “2%/25%
Guidelines”) for such year unless the Conflicts Committee determines that such excess was justified, based on unusual and nonrecurring factors which the Conflicts Committee deems sufficient. If the Conflicts Committee does not approve such
excess as being so justified, any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company. If the Conflicts Committee determines such excess was justified, then within 60 days after the end of any fiscal quarter of
the Company for which total reimbursed Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the direction of the Conflicts Committee, shall send to the stockholders a written disclosure of such fact, together with an
explanation of the factors the Conflicts Committee considered in determining that such excess expenses were justified. The Company will ensure that such determination will be reflected in the minutes of the meetings of the Board of Directors. All
figures used in the foregoing computation shall be determined in accordance with generally accepted accounting principles applied on a consistent basis. 
  
 10. Fidelity Bond. The Advisor shall maintain a fidelity bond for the benefit of the Company which bond shall insure the Company from losses
of up to $10,000,000 and shall be of the type customarily purchased by entities performing services similar to those provided to the Company by the Advisor. 
  
 11. Other Activities of the Advisor. 
  
 (a) General. Nothing herein contained shall prevent the Advisor from engaging in other activities, including, without limitation, the rendering of
advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, employee, or
stockholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association. The Advisor may, with respect to any investment in which
the Company is a participant, also render advice and service to each and every other participant therein. The Advisor shall report to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which
creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other partnership, corporation, firm, individual, trust or association. 
  
 (b) Policy with Respect to Allocation of Investment Opportunities.
Before the Advisor presents an investment opportunity that would in its judgment be suitable for the Company to another Advisor-sponsored program, the Advisor shall determine in its sole discretion that the investment opportunity is more suitable
for such other program than for the Company based on factors such as the following: the investment objectives and criteria of each program; the cash requirements and anticipated cash flow of each program; the size of the investment opportunity; the
effect of the acquisition on diversification of each program’s investments by type of commercial property, geographic area and tenant base; the estimated income tax effects of the purchase on each entity; the policies of each program relating
to leverage; the funds of each entity available 

  

 14 

 
for investment and the length of time such funds have been available for investment. In the event that an investment opportunity becomes available that is,
in the sole discretion of the Advisor, equally suitable for both the Company and another Advisor-sponsored program, then the Advisor may offer the other program the investment opportunity if it has had the longest period of time elapse since it was
offered an investment opportunity. The Advisor will use its reasonable efforts to fairly allocate investment opportunities in accordance with such allocation method and will promptly disclose any material deviation from such policy or the
establishment of a new policy, which shall be allowed provided (1) the Board is provided with notice of such policy at least 60 days prior to such policy becoming effective and (2) such policy provides for the reasonable allocation of
investment opportunities among such programs. The Advisor shall provide the Conflicts Committee with any information reasonably requested so that the Conflicts Committee can insure that the allocation of investment opportunities is applied fairly.
Nothing herein shall be deemed to prevent the Advisor or an Affiliate from pursuing an investment opportunity directly rather than offering it to the Company or another Advisor-sponsored program so long as the Advisor is fulfilling its obligation to
present a continuing and suitable investment program to the Company which is consistent with the investment policies and objectives of the Company. 
  
 12. Relationship of Advisor and Company. The Company and the Advisor are not partners or joint venturers with each other, and nothing in
this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on either of them. 
  
 13. Representations and Warranties. 
  
 (a) Of the Company. To induce the Advisor to enter into this Agreement, the Company hereby represents and warrants that: 
  
 (i) The Company is a corporation, duly organized, validly
existing and in good standing under the laws of the State of Maryland with all requisite corporate power and authority and all material licenses, permits and authorizations necessary to carry out the transactions contemplated by this Agreement.

  
 (ii) The Company’s execution, delivery
and performance of this Agreement have been duly authorized. This Agreement constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. The Company’s execution and delivery of this
Agreement and its fulfillment of and compliance with the respective terms hereof do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in
the creation of any lien, security interest, charge or encumbrance upon the assets of the Company pursuant to, (iv) give any third party the right to modify, terminate or accelerate any obligation under, (v) result in a violation of or
(vi) require any authorization, consent, approval, exception or other action by or notice to any court or administrative or governmental body pursuant to, the Articles of Incorporation or Bylaws or any law, statute, rule or regulation to which
the Company is subject, or any agreement, instrument, order, judgment or decree by which the Company is bound, in any such case 

  

 15 

 
in a manner that would have a material adverse effect on the ability of the Company to perform any of its obligations under this Agreement. 
  
 (b) Of the Advisor. To induce Company to enter into this Agreement,
the Advisor represents and warrants that: 
  
 (i)
The Advisor is a corporation, duly organized, validly existing and in good standing under the laws of the State of Georgia with all requisite corporate power and authority and all material licenses, permits and authorizations necessary to carry out
the transactions contemplated by this Agreement. 
  
 (ii) The Advisor’s execution, delivery and performance of this Agreement have been duly authorized. This Agreement constitutes a valid and binding obligation of the Advisor, enforceable against the Advisor in accordance with its terms.
The Advisor’s execution and delivery of this Agreement and its fulfillment of and compliance with the respective terms hereof do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions of,
(ii) constitute a default under, (iii) result in the creation of any lien, security interest, charge or encumbrance upon the Advisor’s assets pursuant to, (iv) give any third party the right to modify, terminate or accelerate any
obligation under, (v) result in a violation of or (vi) require any authorization, consent, approval, exemption or other action by or notice to any court or administrative or governmental body pursuant to, the Advisor’s articles of
incorporation or bylaws, or any law, statute, rule or regulation to which the Advisor is subject, or any agreement, instrument, order, judgment or decree by which the Advisor is bound, in any such case in a manner that would have a material adverse
effect on the ability of the Advisor to perform any of its obligations under this Agreement. 
  
 (iii) The Advisor has received copies of the Articles of Incorporation, Bylaws, and the Registration Statement and of the
Partnership’s limited partnership agreement and is familiar with the terms thereof, including without limitation the investment limitations included therein. Advisor warrants that it will use reasonable care to avoid any act or omission that
would conflict with the terms of the Articles of Incorporation, Bylaws, the Registration Statement, or the Partnership’s limited partnership agreement in the absence of the express direction of the Conflicts Committee. 
  
 14. Term; Termination of Agreement. This Agreement shall
continue in force until the first anniversary of the date hereof, subject to an unlimited number of successive one-year renewals upon mutual consent of the parties. The Company, acting through the Board, will evaluate the performance of the Advisor
annually before renewing the Agreement, and each such renewal shall be for a term of no more than one year. 
  
 15. Termination by Either Party. This Agreement may be terminated upon 60 days written notice without cause or penalty, by either party (by
majority of the Conflicts Committee or a majority of the Board of Directors of the Advisor, as the case may be). The provisions of Sections 1, 6, 7, and 17 through 29 survive termination of this Agreement. 
  

 16 

 16. Assignment to an Affiliate. This Agreement may be assigned by the Advisor to an
Affiliate with the approval of a majority of the Conflicts Committee. The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Board. This Agreement shall not be assigned by the
Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Company, in which case such successor
organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement. 
  
 17. Payments to and Duties of Advisor upon Termination. Payments to the Advisor pursuant to this Section 17 shall be subject to the
2%/25% Guidelines to the extent applicable. 
  
 (a) After the
Termination Date, the Advisor shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company within 30 days after the effective date of such termination the following: 
  
 (i) all unpaid reimbursements of expenses and all earned but
unpaid fees payable to the Advisor prior to termination of this Agreement.; and 
  
 (ii) the Subordinated Performance Fee Due Upon Termination, provided that no Subordinated Performance Fee Due Upon Termination will be
paid if the Company has paid or is obligated to pay the Subordinated Incentive Fee. 
  
 (b) The Advisor shall promptly upon termination: 
  
 (i) pay over to the Company all money collected and held for the account of the Company pursuant to this Agreement, after deducting any
accrued compensation and reimbursement for its expenses to which it is then entitled; 
  
 (ii) deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held
by it, covering the period following the date of the last accounting furnished to the Board; 
  
 (iii) deliver to the Board all assets, including Properties, and documents of the Company then in the custody of the Advisor; and

  
 (iv) cooperate with the Company to provide an
orderly management transition. 
  
 18. Indemnification by
the Company. The Company shall indemnify and hold harmless the Advisor and its Affiliates, including their respective officers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of
their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, subject to any limitations imposed by the
laws of the State of Maryland or the Articles of Incorporation. Notwithstanding the foregoing, the Advisor shall not be entitled to indemnification or be held harmless pursuant to this Paragraph 18 for any activity which the Advisor shall be
required to indemnify or hold harmless the Company pursuant to Paragraph 19. Any indemnification of the Advisor may be made only out of the net assets of the Company and not from Stockholders. 
  

 17 

 19. Indemnification by Advisor. The Advisor shall indemnify and hold harmless the Company
from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance
and are incurred by reason of the Advisor’s bad faith, fraud, willful misfeasance, misconduct, or reckless disregard of its duties. 
  
 20. Notices. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other
method of giving such notice, report or other communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to whom it is given, and shall be given by being delivered by hand or by overnight mail or other overnight
delivery service to the addresses set forth herein: 
  

			
	To the Board and to the Company:	  	Wells Real Estate Investment Trust II, Inc.
	 	  	6200 The Corners Parkway, Suite 250
	 	  	Norcross, Georgia 30092
		
	To the Advisor:	  	Wells Capital, Inc.
	 	  	6200 The Corners Parkway, Suite 250
	 	  	Norcross, Georgia 30092

  
 Either party may at
any time give notice in writing to the other party of a change in its address for the purposes of this Paragraph 20. 
  
 21. Modification. This Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in
writing signed by both parties hereto, or their respective successors or assignees. 
  
 22. Severability. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for
any reason any other or others of them may be invalid or unenforceable in whole or in part. 
  
 23. Construction. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of Georgia. 
  
 24. Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto
with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.
The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 
  
 25. Indulgences, Not Waivers. Neither the failure nor any delay
on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise
of the same or of any other right, remedy, power or privilege, nor 

  

 18 

 
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  
 26. Gender. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other
number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
  
 27. Titles Not to Affect Interpretation. The titles of paragraphs and subparagraphs contained in this Agreement are for convenience only,
and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof. 
  
 28. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original
as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when the counterparts hereof, taken together, bear the signatures of all of the parties
reflected hereon as the signatories. 
  
 29. Name.
Wells Capital, Inc. has a proprietary interest in the name “Wells.” Accordingly, and in recognition of this right, if at any time the Company ceases to retain Wells Capital, Inc. or an Affiliate thereof to perform the services of Advisor,
the Company will, promptly after receipt of written request from Wells Capital, Inc., cease to conduct business under or use the name “Wells” or any derivative thereof and the Company shall use its best efforts to change the name of the
Company to a name that does not contain the name “Wells” or any other word or words that might, in the sole discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any
Affiliate thereof. Consistent with the foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles
(including vehicles for investment in real estate) and financial and service organizations having “Wells” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company or its Board.

  
 [Signatures appear on next page.] 
  

 19 

 IN WITNESS WHEREOF, the parties hereto have executed this Advisory Agreement as of the date and year
first above written. 
  

			
	WELLS REAL ESTATE INVESTMENT TRUST II, INC.
		
	 By:
	 	 
	 Name:
	 	 Douglas P. Williams

	 Title:
	 	 Executive Vice President

	
	 WELLS CAPITAL, INC.

		
	 By:
	 	 
	 Name:
	 	 Leo F. Wells III

	 Title:
	 	 President

  

 20Merchant Services Bankcard Agreement

 Exhibit 10.16 
  
 MERCHANT SERVICES BANKCARD AGREEMENT 
  

							
	Buycomp, L.L.C.	  	Buycomp.com	  	 
	Customer’s Legal Name	  	Doing Business As
				
	140 Technology, Suite 700	  	Irvine	  	California	  	92718
	Street Address	  	City	  	State	  	Zip Code
				
	Corporation	  	33-0760152	  	 	  	 
	Specify Whether Customer is (circle one) a Corporation,
Partnership, Sole Proprietorship, Non-Profit or Other
Type of Entity	  	Taxpayer Identification Number
			
	Mr. Murray Williams	  	(714) 788-3906	  	 
	Recipient For Notices Under Paragraph 26.5	  	Facsimile Number	  	 

  
 This Merchant Services Bankcard
Agreement (“Agreement”) is among the CUSTOMER identified above, FIRST FINANCIAL BANK, a New York state chartered bank (“BANK”) and CHASE MERCHANT SERVICES L.L.C., (“CMS”) (BANK and CMS are collectively referred to as
“SERVICERS”). 
  
 BANK, as a member of Visa U.S.A., Inc.
(“VISA”) and MasterCard International Incorporated (“MasterCard”), is responsible for its VISA and MasterCard bankcard programs and has authorized CMS or its members pursuant to a separate agreement (the “Agency
Agreement”) to act as an agent of and in conjunction with BANK in performing authorization, processing and settlement services for merchants participating in BANK’S Mastercard and VISA bankcard programs, in performing the additional
services with respect to other cards as specified on the schedules to this Agreement and in taking related actions. CMS is acting in such capacity by executing and performing this Agreement. As between themselves, the respective rights and
obligations of CMS and BANK shall be governed by the Agency Agreement and Association Rules. 
  
 In consideration of the mutual covenants and agreements set forth herein and other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, SERVICERS and CUSTOMER agree as follows:

  

	1.	Definitions. As used in this Agreement, capitalized terms will have the meaning set forth in Annex 1. 

  

	2.	Services. 

  

	 	2.1	During the term of the Agreement, CUSTOMER shall use SERVICERS as its exclusive provider of all Services for CUSTOMER. 

  

	 	2.2	Subject to Association Rules, Services may be performed by CMS or BANK as they may determine. In addition to SERVICERS, one or more affiliates of SERVICERS may assist in providing
terminals or other equipment and local support functions in connection with this Agreement. 

  

	3.	Acceptance of Cards. 

  

	 	3.1	 CUSTOMER will accept any Card properly tendered, without imposing any special conditions not required or allowed by Association Rules. CUSTOMER will assess no
special charge or extract any special agreement, condition (including any minimum or maximum transaction amounts) or security from a Cardholder in connection with any Card transaction. CUSTOMER shall not post signs indicating that CUSTOM will refuse
to honor Card transactions below or above a specified amount. CUSTOMER may offer a discount for using cash if clearly disclosed as a discount from the price available for all other means of payment. CUSTOMER shall not engage in acceptance
practices or procedures that discriminate against, discourage or favor the offered use of any 

	 	 
particular Card accepted by CUSTOMER. CUSTOMER will not require Cardholders to provide personal information such as a home or business telephone number, a
home or business address, or any form of identification (such as a driver’s license) as a condition for honoring and accepting a Card, unless specifically required by this Agreement or the applicable Association. CUSTOMER shall not accept Cards
at terminals that dispense scrip in violation of the Association Rules. 

  

	 	3.2	CUSTOMER will check each Card used during a transaction for validity in accordance with the terms of this Agreement, the Operating Guide and the applicable Association Rules.
CUSTOMER will not honor a Card that appears to be invalid or expired. 

  

	 	3.3	All Sales Drafts and Credit Vouchers must include (i) either a manual imprint or an electronic printing of the Card obtained by passing the magnetic stripe on the Card through
a point-of sale terminal, of Cardholder information contained on the Card or magnetic stripe; (ii) the signature of the authorized user as it appears on the Card; (iii) the date of the transaction; (iv) a description of the
merchandise sold or rented or the services rendered; and (v) the total cash price of the Card transaction (including taxes). 

  

	 	3.4	Except for transactions completed by using magnetic stripe reading point-of-sale terminals that print Card transaction records or originated at limited amount terminals that are
capable of reading magnetic stripes and limit each Card transaction to $25, CUSTOMER is deemed to warrant the true identity of any Cardholder unless CUSTOMER imprints the Card on the Sales Draft, as described in subsection 3.3, above.

  

	 	3.5	Unless, a Card transaction is governed by Section 6 or otherwise specifically authorized by SERVICERS in writing, CUSTOMER may only complete a Card transaction when
(i) the Card is present and (X) the data stored on the magnetic stripe is electronically read and printed by a magnetic stripe reader or (Y) the Card is manually imprinted, (ii) the Card is signed and the signature on the Sales
Draft appears to be the same as the signature on the Card, (iii) the Cardholder resembles the person pictured (if any) on the Card, and (iv) all, or the appropriate portion, of the embossed account number on the Card matches with the
corresponding digits printed on the Card and with the account number displayed and/or printed by a point-of-sale device reading the magnetic strip on the Card. (If a previously unsigned Card is signed at the time of a Card transaction, CUSTOMER will
review (and identify on the Sales Draft) a current, official government identification document (such as a driver’s license or passport) bearing the Cardholder’s signature.) CUSTOMER will deliver at least one copy of the Sales Draft or
agreement or Credit Voucher to the Cardholder. 

  

	4.	Operating Guide, Association Rules. 

  
 CUSTOMER acknowledges that it has received, (or will receive promptly upon execution of this Agreement) the Operating Guide, the terms of which are incorporated into this
Agreement. CUSTOMER agrees to follow the procedures in the Operating Guide in connection with each Card transaction and to comply with all applicable Association Rules. From time to time, SERVICERS may change the Operating Guide, in whole or in
part, and other operating procedures, by providing CUSTOMER with at least 30 days’ prior written notice of the change. However, in the event of changes in the Association Rules or due to security reasons, certain changes in Card procedures
may become effective on shorter notice. If there is any conflict between the terms of this Agreement and the Operating Guide, the terms of this Agreement will govern, unless the conflict is directly related to a change in the Operating Guide which
specifically addresses a procedure or requirement detailed in this Agreement. If CUSTOMER loses or otherwise misplaces the Operating Guide or notices of changes thereto, CUSTOMER shall be responsible for contacting SERVICERS to obtain replacement
copies. 
  

	5.	Authorization. 

  

	 	5.1	 CUSTOMER shall be responsible for obtaining Authorization in advance for each Card transaction. The Authorization number provided by SERVICERS shall be noted by
CUSTOMER 

  

 2 

	 	 
in the appropriate place on the Sales Draft. If Authorization is declined, CUSTOMER shall not complete the Card transaction. 

  

	 	5.2	CUSTOMER shall comply with any special authorization procedures contained in any other sections of this Agreement, the Operating Guide the Schedules and the Association Rules.

  

	 	5.3	CUSTOMER acknowledges that Authorization, (i) indicates only the availability of credit at the time of Authorization; (ii) does not warrant that the person presenting the
Card is the rightful Cardholder; and (iii) is not an unconditional promise or guarantee by SERVICERS that any Card transactions will not be subject to Chargeback. 

  

	6.	Telephone and Mail Orders. 

  

	 	6.1	If CUSTOMER is authorized to accept telephone or mail orders, Authorization for each such Card transaction, regardless of the face amount, must be obtained and CUSTOMER must write
“TO” (indicating telephone order), or “MO” (indicating mail order) as applicable, on the Sales Draft in lieu of the Cardholder’s signature. CUSTOMER assumes all responsibility for identification of the Cardholder and the
validity of the Card information for telephone and mail orders. For telephone and mail order Card transactions where merchandise is to be shipped or delivered to or for the Cardholder, the shipping date shall not be more than five calendar days
after the Authorization is obtained, and any shipping costs not included in the Authorization amount must not exceed 15% of the amount authorized. 

  

	 	6.2	An installment payment option may be offered for telephone or mail order merchandise if all terms are clearly disclosed, each installment is authorized, the first installment is not
submitted for settlement until the merchandise is shipped, and subsequent installments are submitted no more frequently than monthly. 

  

	 	6.3	Under no circumstances may CUSTOMER require that a Cardholder complete a postcard or other document which displays the Cardholder’s account data in plain view when mailed.

  

	7.	Multiple Sales Drafts and Partial Consideration. 

  

	 	7.1	Except as shall be specifically set forth in the Operating Guide or the Association Rules, CUSTOMER shall list all items of goods and services purchased during each Card transaction
and the total amount thereof on a single Sales Draft. 

  

	 	7.2	CUSTOMER shall comply with all special procedures and conditions applicable under the Operating Guide and the Association Rules with respect to any partial payment, installment
payment, delayed delivery or advance deposit situation and any delayed or amended charges for a travel and entertainment transaction. CUSTOMER shall not use more than one Sales Draft to represent a single Card transaction to avoid the need for
Authorization. 

  

	8.	Preauthorized Orders and Recurring Sales. 

  

	 	8.1	A Preauthorized Order or Recurring Sale may include the payment of recurring charges such as insurance premiums, subscriptions, membership fees, tuition or utility charges and may
also include preauthorized health care payments (subject to a Schedule). 

  

	 	8.2	If CUSTOMER is authorized to accept Preauthorized Orders or Recurring Sales, Authorization for each such Card transaction, regardless of the amount, must be obtained and CUSTOMER
must write “Recurring Transaction” (for Visa and other non-MasterCard Card transactions) or “PO” (for MasterCard Card transactions) as applicable, on the sales Draft in lieu of the Cardholder’s signature.

  

 3 

	 	8.3	Except for preauthorized health care payments for the incremental costs not covered by insurance, advance deposits and installment payments, all made in compliance with this
Agreement and the Operating Guide and Association Rules, a Preauthorized Order or Recurring Sale may not include partial payments made to CUSTOMER for goods services purchased in a single transaction. In no event may any finance charges be imposed
on any periodic payments in connection with a Preauthorized Order or Recurring Sale. 

  

	 	8.4	CUSTOMER may not accept a Preauthorized Order or Recurring Sale from a Cardholder for the purchase of goods or services which are delivered or performed periodically unless the
Cardholder completes and delivers to CUSTOMER a written request (and, when applicable, a written renewal request) identifying (i) the goods or services to be charged to the Cardholder’s account, (ii) the amount of the preautharized or
recurring charges (unless such charges are for variable amounts), (iii) the frequency of the preauthorized or recurring charges and (iv) the duration of time for which the Cardholder’s permission is granted. If CUSTOMER accepts any
Preauthorized Orders or Recurring Sales for variable amounts, CUSTOMER must comply with the supplemental provisions set forth in the applicable Schedules. 

  

	 	8.5	The Cardholder’s written request (including any written renewal request) must be (i) retained for the duration of the preauthorized or recurring charges;
(ii) provided in response to a Card issuing bank’s request for original documentation; and (iii) used no longer after receiving notice of cancellation. 

  

	9.	Cardholder Refunds and Credits. 

  

	 	9.1	If a Cardholder returns goods or cancels services purchased from CUSTOMER with a Card, or CUSTOMER allows any other price adjustment after a sale has been completed and a refund or
adjustment is due to the Cardholder (other than any involuntary refund required by applicable airline or other tariff or by law), CUSTOMER will not return cash to the Cardholder but will instead prepare a Credit Voucher and process each such refund
or adjustment, as specified in the Operating Guide and Association Rules. CUSTOMER will give the Cardholder a copy of the completed Credit Voucher. 

  

	 	9.2	If CUSTOMER establishes a policy limiting refunds or acceptance of returned merchandise (e.g., no refund, exchange only, in-store credit only, or special conditions),
CUSTOMER must follow the procedures regarding refunds and returned merchandise as set forth in the Association Rules including, without limitation, the proper disclosure of such policy on all copies of each Sales Draft in letters at least 1/4”
high in close proximity to the space provided for the Cardholder’s signature. 

  

	 	9.3	CUSTOMER will not accept money from a Cardholder for the purpose of preparing and depositing a Credit Voucher that will effect a deposit to the Cardholder’s account. CUSTOMER
must not process a Credit Voucher without having completed a previous Card transaction with the same Cardholder (or with a Cardholder who purchased a gift returned by the recipient). Under no circumstances may CUSTOMER require a Cardholder to waive
the Cardholder’s right to dispute a Card transaction with the Card issuing bank. 

  

	10.	Presentment of Card Transactions. 

  

	 	10.1	 CUSTOMER shall electronically or physically deliver to SERVICERS Sales Drafts for all Card transactions to be processed and settled hereunder. The deadlines for
submitting Sales Drafts are: (i) for VISA and MasterCard Card transactions, the special time frames specified in the Schedules for CUSTOMER’s Card transactions to qualify for the special pricing provided under applicable VISA and
MasterCard incentive programs; (ii) for Card transactions involving Cards other than VISA or MasterCard, the time frames established by CUSTOMER’s agreement with the applicable Association or by the applicable Association Rules;
(iii) the applicable time of day specified in the Schedules hereto and (iv) in no event later than the fifth calendar day or third banking day (whichever is earlier) after completing Card transactions (unless CUSTOMER is 

  

 4 

	 	 
entitled to any special extension of these deadlines). CUSTOMER acknowledges that the times specified in clause (iv) of the previous sentence are
outside deadlines and that faster time frames are required to qualify for incentive programs. 

  

	 	10.2	CUSTOMER will not submit any Sales Draft that was not created in conjunction with a Card transaction between CUSTOMER and the applicable Cardholder. Under no circumstances will
CUSTOMER submit any Sales Draft that has been previously charged back by the Cardholder and subsequently returned to CUSTOMER. 

  

	11.	Settlement of Card Transactions. 

  

	 	11.1	SERVICERS will only be required to settle CUSTOMER’s Card transactions for Cards, as specified in the Schedules. Promptly after presentment of Sales Drafts pursuant to
Section 10, above, as applicable, SERVICERS will initiate a transfer of the applicable settlement funds to CUSTOMER in one of the following ways: 

  

	 	(i)	Direct Settlement Account. If CUSTOMER maintains a Settlement Account at a financial institution with which SERVICERS have arrangements permitting direct payment of
settlement funds, SERVICERS will initiate a transfer of such applicable settlement funds through a credit to the Settlement Account. Such settlement will occur by the second banking day after SERVICERS process the applicable Card transactions unless
a different time is specified. 

  

	 	(ii)	Wire Transfer. If CUSTOMER receives payment of settlement funds by wire transfer, SERVICERS will initiate a wire transfer of such applicable settlement funds to the
Settlement Account. Settlement by wire generally occurs by 3:00 p.m. Eastern time on the following banking day after SERVICERS process the applicable Card transactions. 

  

	 	(iii)	Automated Clearing House Credit. If CUSTOMER receives payment of settlement funds through automated clearing house credit, SERVICERS will initiate a transfer of such
applicable settlement funds through ACH to CUSTOMER’s Settlement Account. Settlement by automated clearing house credit will take place the second banking day after SERVICERS process the applicable card transactions. 

 

	 	11.2	All settlements to CUSTOMER for VISA and MasterCard Card transactions will be based upon gross sales, less credits/refunds, adjustments, applicable discount fees when due,
Chargebacks, and any other amounts then due from CUSTOMER to SERVICERS. 

  

	 	11.3	All credits to CUSTOMER’s Settlement Account or other payments to CUSTOMER are provisional and are subject to, among other things, SERVICERS’ final audit, Chargebacks
(including SERVICERS’ related losses), fees and fines imposed by the Associations. CUSTOMER agrees that SERVICERS may debit or credit CUSTOMER’s Settlement Account for any deficiencies, overages, fees and pending Chargebacks, or may deduct
such amounts from settlement funds due to CUSTOMER. Alternatively, SERVICERS may elect to invoice CUSTOMER for any such amounts, net due 30 days after the invoice date or on such earlier date as may be specified. 

  

	 	11.4	 SERVICERS will not be liable for any delays in receipt of funds or errors in debit and credit entries caused by third parties including but not limited to any
Association or CUSTOMER’s financial institution. In addition to any other remedies available to SERVICERS under this Agreement, CUSTOMER agrees that should any of the events set forth in Paragraph 21.3 occur, SERVICERS may, upon at least
24 hours’ advance written notice, change processing or payment terms to suspend credits or other payments of any and all funds, money and amounts now due or hereafter to become due to CUSTOMER from SERVICERS pursuant to the terms of this
Agreement, until SERVICERS have had reasonable opportunity to investigate and discuss such 

  

 5 

	 	 
event with CUSTOMER. In cases of fraud or similar cause, no prior notice shall be required, but SERVICERS shall notify CUSTOMER in writing within three
business days after effectuating a suspension of credits or other payments, which notice shall state SERVICERS’ reason for the belief that such fraud or similar cause exists. 

  

	12.	Financial Accommodation. 

  
 CUSTOMER acknowledges and agrees that the Services constitute the extension of financial accommodations to or for the benefit of CUSTOMER within the meaning of
Section 365(c) of the Bankruptcy Code and entail the assumption by SERVICERS of significant credit risks. By reason of the assumption of such credit risks, CUSTOMER has granted to and conferred upon SERVICERS certain security, authorization to
take reserves and other assurances of payment, all of which are material to SERVICERS’ willingness to continue to provide services under this Agreement. The parties acknowledge that this Agreement creates a contract for the extension of
financial accommodations to CUSTOMER within the meaning of Section 365(c) of the Bankruptcy Code. 
  

	13.	Fees; Adjustments; Collection of Amounts Due. 

  

	 	13.1	SERVICERS shall charge CUSTOMER a fee for the Services, which shall be calculated and payable pursuant to the Schedules and any additional pricing supplements. The discount fees
shown on such Schedules shall be calculated based on the gross amount of only VISA and MasterCard transactions submitted to SERVICERS. The fees with respect to other Card transactions shall be a percentage of the gross amount of, or a per
transaction fee for, all such Card transactions. CUSTOMER acknowledges that the fees stated herein are based upon the qualification of CUSTOMER’s transactions for certain reduced interchange fees as set by the applicable Association. If
CUSTOMER’s Card transactions fail to qualify for the reduced interchange fees, SERVICERS shall process such Card transactions at the applicable interchange fees as set by the applicable Association. 

  

	 	13.2	The fees for Services set forth in the Schedules and any additional pricing supplement, are based upon assumptions associated with the anticipated annual volume, average transaction
size and CUSTOMER’s method of doing business. If the actual volume or average transaction size are not as expected or if CUSTOMER significantly alters its method of doing business, SERVICERS may adjust CUSTOMER’s discount fee or
transaction fees without prior notice. 

  

	 	13.3	The fees for Services so forth in the Schedules may be adjusted to reflect increases or decreases by Associations in interchange, assessment or other Association fees or to pass
through increases charged by third parties for on-line communications and similar items. All such adjustments shall be CUSTOMER’s responsibility to pay and shall become effective upon the date any such change is implemented by the applicable
Association or other third party. 

  

	 	13.4	If CUSTOMER receives settlement funds by wire transfer, SERVICERS may charge wire transfer fees of $10 per wire, notwithstanding any lesser amount shown on the Schedules, during any
month in which the average daily settlement funds wire transferred to CUSTOMER is less than $10,000. 

  

	 	13.5	In addition to the regular Chargeback fees, as set forth on the Schedules, CUSTOMER agrees to pay SERVICERS any fines imposed on SERVICERS by any Association, resulting from
Chargebacks and any other fees or fines imposed by an Association with respect to acts or omissions of CUSTOMER. 

  

	 	13.6	 If CUSTOMER’s Chargeback Percentage for any line of business exceeds the estimated industry chargeback percentage, CUSTOMER shall, in addition to the regular
Chargeback fees due to SERVICERS and any applicable Chargeback handling fees or fines imposed by the applicable Association, pay SERVICERS the excessive Chargeback fee shown on the Schedules for all Chargebacks occurring in such month in such
line(s) of business. Each estimated industry 

  

 6 

	 	 
chargeback percentage is subject to change from time to time by SERVICERS in order to reflect changes in the industry chargeback percentage reported by VISA
or MasterCard. Each then-current industry chargeback percentage for CUSTOMER’s applicable line(s) of business will be reflected in the monthly loss prevention report furnished to CUSTOMER. 

  

	 	13.7	If CUSTOMER believes any adjustments should be made with respect to CUSTOMER’s Settlement Account for any amounts due to or due from SERVICERS, CUSTOMER shall notify SERVICERS
in writing within 45 days after any debit or credit is or should have been effected. If CUSTOMER notifies SERVICERS after such time period, SERVICERS may, in their discretion, assist CUSTOMER, at CUSTOMER’s expense, in investigating whether any
adjustments are appropriate and whether any amounts are due to or from other parties, but SERVICERS shall not have any obligation to investigate or effect any such adjustments. Any voluntary efforts by SERVICERS to assist CUSTOMER in investigating
such matters shall not create any obligation to continue such investigation or assist with any investigation in response to any future notices of possible adjustments that are not timely submitted. 

  

	14.	Chargebacks. 

  

	 	14.1	CUSTOMER shall be responsible for all Chargeback amounts relating to Card transactions settled by SERVICERS where: 

  

	 	(i)	merchandise is returned and a proper credit for Cardholder is not received by SERVICERS for processing; 

  

	 	(ii)	the Sales Draft is, or is alleged to have been, executed, accepted, endorsed, completed or assigned improperly without authority or not in accordance with the Authorization
requirements or provisions of this Agreement; 

  

	 	(iii)	regardless of any Authorization obtained (including without limitation, telephone and mail order transactions), CUSTOMER completed a transaction when the Cardholder did not sign the
Sales Draft; 

  

	 	(iv)	the signature on the draft was unauthorized as compared to the signature appearing on the Card, the signature panel on the Card was blank, or a limited purpose business purchasing
card was accepted without appropriate authorization of the nature of the goods or services purchased (in addition to Authorization of the transaction amount); 

  

	 	(v)	the Sales Draft is incorrectly completed, incomplete or illegible; 

  

	 	(vi)	the Cardholder disputes the sale, quality or delivery (or availability for pre-arranged pick-up) of merchandise or the performance or quality of service covered by the Sales Draft
or agreement accepted by such Cardholder; 

  

	 	(vii)	the circumstances in which the Sales Draft was created or submitted by, or credit was received by, CUSTOMER constituted or otherwise involved a breach of any term, condition,
representation, warranty or duty of CUSTOMER hereunder; 

  

	 	(viii)	multiple Sales Drafts were executed to avoid the need to obtain authorization necessary to complete the transaction: 

  

	 	(ix)	the extension of credit for merchandise sold or rented or services performed was in violation of law or the rules or regulations of any governmental agency, whether federal, state,
local or otherwise; 

  

 7 

	 	(x)	a legible copy of the Sales Draft or Credit Voucher cannot be produced by CUSTOMER within ten days of SERVICERS’ request (except to the extent SERVICERS are responsible
pursuant to Paragraph 16.1); 

  

	 	(xi)	the Cardholder asserts any claim or defense which the Cardholder has as a consumer of goods or services; 

  

	 	(xii)	the Cardholder disputes the validity of a telephone or mail order Card transaction; 

  

	 	(xiii)	the Card transaction is otherwise subject to Chargeback by the Card issuing bank or Cardholder in accordance with the Association Rules or applicable law; or

  

	 	(xiv)	the Card transaction is subject to Chargeback in accordance with the procedures set forth in the Operating Guide. 

  

	 	14.2	CUSTOMER shall reimburse SERVICERS for any Chargebacks, return items, or other losses resulting from CUSTOMER’s failure to produce a Card transaction record requested by
SERVICERS within the applicable time limits. 

  

	15.	Representations; Warranties; Limitations on Liability; Exclusion of Consequential Damages. 

  

	 	15.1	Without limiting any other warranties hereunder, CUSTOMER represents and warrants as to each Card transaction submitted by CUSTOMER under this Agreement that:

  

	 	(i)	the Card transaction represents a bona fide sale/rental of merchandise or services not previously submitted; 

  

	 	(ii)	the Card transaction represents an obligation of the Cardholder for the amount of the Card transaction; 

  

	 	(iii)	the amount charged for the Card transaction is not subject to any dispute, setoff, or counterclaim; 

  

	 	(iv)	the Card transaction amount is only for the merchandise or services (including taxes, but without any surcharge) sold or rented and, except for any delayed delivery or advance
deposit Card transactions expressly authorized by this Agreement, the merchandise or service was actually delivered to or performed for the person entering into the Card transaction simultaneously upon CUSTOMER’s accepting and submitting the
Card transaction for processing; 

  

	 	(v)	the Card transaction does not represent the refinancing of an existing obligation of the Cardholder (including any obligation otherwise owed to CUSTOMER by a Cardholder or arising
from the dishonor of a personal check); 

  

	 	(vi)	CUSTOMER has no knowledge or notice of any fact, circumstances or defense which would indicate that the Card transaction was fraudulent or not authorized by the Cardholder or which
would otherwise impair the validity or collectibility of the Cardholder’s obligation arising from such Card transaction or relieve the Cardholder from liability with respect thereto; 

  

	 	(vii)	the Card transaction submitted to SERVICERS was entered into by CUSTOMER and the Cardholder, and 

  

	 	(viii)	the Card transaction was made in accordance with the terms of this Agreement, Association Rules and the Operating Guide. 

  

 8 

	 	15.2	THIS AGREEMENT IS A SERVICE AGREEMENT, AND EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, SERVICERS DISCLAIM ALL OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, MADE TO
CUSTOMER OR ANY OTHER PERSON, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES REGARDING QUALITY, SUITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE (REGARDLESS OF ANY COURSE OF DEALING, CUSTOM OR USAGE OF TRADE) OF ANY SERVICES
OR ANY GOODS PROVIDED INCIDENTAL TO THE SERVICES PROVIDED UNDER THIS AGREEMENT. 

  

	 	15.3	NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IN NO EVENT SHALL SERVICERS, THEIR RESPECTIVE AFFILIATES OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES,
AGENTS OR SUBCONTRACTORS, BE LIABLE UNDER ANY THEORY OF TORT, CONTRACT, STRICT LIABILITY OR OTHER LEGAL THEORY FOR LOST PROFITS, LOST REVENUES, LOST BUSINESS OPPORTUNITIES, EXEMPLARY, PUNITIVE, SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES,
EACH OF WHICH IS HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES, REGARDLESS OF WHETHER SUCH DAMAGES WHERE FORESEEABLE OR WHETHER ANY PARTY OR ANY ENTITY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

  

	 	15.4	NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, SERVICERS’ CUMULATIVE LIABILITY FOR ALL LOSSES, CLAIMS, SUITS, CONTROVERSIES, BREACHES, OR DAMAGES FOR ANY CAUSE
WHATSOEVER (INCLUDING, BUT NOT LIMITED TO, THOSE ARISING OUT OF OR RELATED TO THIS AGREEMENT) AND REGARDLESS OF THE FORM OF ACTION OR LEGAL THEORY SHALL NOT EXCEED, (I) $50,000; OR (II) THE AMOUNT OF FEES RECEIVED BY SERVICERS PURSUANT TO
THE AGREEMENT FOR SERVICES PERFORMED IN THE IMMEDIATELY PRECEDING 12 MONTHS, WHICHEVER IS LESS. 

  

	16.	Retention of Records. 

  

	 	16.1	If the Schedules provide that SERVICERS shall prepare and retain images (on microfilm or otherwise) of CUSTOMER’s paper Sales Drafts and Credit Vouchers, CUSTOMER shall deliver
to SERVICERS the originals or copies of CUSTOMER’s Sales Drafts and Credit Vouchers in suitable form for imaging no later than seven calendar days from the date of the transaction; provided however, that CUSTOMER shall retain legible copies of
Sales Drafts and Credit Vouchers for a least six months following the date of each such transaction. If the Schedules provide that SERVICERS shall capture and store data reflecting Card transactions electronically transmitted to SERVICERS, CUSTOMER
shall transmit to SERVICERS all data required to be included on Sales Drafts and Credit Vouchers (or CUSTOMER shall be responsible for any deficiencies in the data transmitted). 

  

	 	16.2	If the Schedules provide that CUSTOMER shall retain images (on microfilm or otherwise) or legible copies of CUSTOMER’s Sales Drafts and Credit Vouchers, CUSTOMER shall retain
legible copies of Sales Drafts and Credit Vouchers for a period of at least three years from the date of each such transaction. CUSTOMER shall submit to SERVICERS a legible copy of a Sales Draft or Credit Voucher within 48 hours of a request by
SERVICERS. 

  

	 	16.3	 Unless the Schedules provide that SERVICERS are responsible for retaining records of CUSTOMER’s Card transaction data and CUSTOMER has actually
delivered to SERVICERS the applicable Card transaction data containing all required information in legible and suitable form for imaging or electronic capture and storage (as applicable), CUSTOMER shall be responsible for the retrieval of all Sales
Drafts and Credit Vouchers requested by SERVICERS within the shortest time limits established by the Association Rules, as specified in the Operating Guide, this Agreement, or other notice from SERVICERS. CUSTOMER shall not be relieved of its
responsibility under the preceding sentence for any deficiencies in Card transaction data 

  

 9 

	 	 
transmitted or otherwise delivered to SERVICERS, even though SERVICERS may agree to capture or produce images of, store and retrieve any such incomplete data
on CUSTOMER’s behalf. 

  

	17.	Cash Payments by and Cash Disbursements to Cardholders. 

  
 CUSTOMER shall not accept any direct payments from Cardholders for charges of merchandise or services which have been included on a Sales Draft, it being the right of the
Card issuing bank to receive such payments. Taxes on Card transactions must be included in the amount charged and may not be collected by CUSTOMER in cash. CUSTOMER shall not make any cash disbursements to a Cardholder as part of a Card transaction
except to the extent expressly authorized by one or more of the Schedules, the Operating Guide or the Association Rules 
  

	18.	Confidentiality. 

  

	 	18.1	Unless CUSTOMER obtains consents from each applicable Association, SERVICERS, Card issuing bank and Cardholder, CUSTOMER shall not use, disclose, sell or disseminate any Cardholder
information obtained in connection with a Card transaction (including the names, addresses and Card account numbers of Cardholders) except for purposes of authorizing, completing and settling Card transactions and resolving any chargebacks,
retrieval requests or similar issues involving Card transactions, other than pursuant to a court or governmental agency request, subpoena or order. CUSTOMER shall use proper controls for and shall limit access to, and shall render unreadable prior
to discarding, all records containing Cardholder account numbers and Card imprints. CUSTOMER must not retain or store magnetic stripe data after a transaction has been authorized. If CUSTOMER stores any electronically captured signature of a
Cardholder, CUSTOMER shall not reproduce such signature except upon specific request of SERVICERS. 

  

	 	18.2	CUSTOMER acknowledges that it obtains no ownership rights in any information relating to and derived from Card transactions. 

  

	19.	Supplies; Advertising. 

  
 At CUSTOMER’s option and at charges specified from time to time by SERVICERS, SERVICERS may furnish CUSTOMER with operational supplies such as the forms of sales
drafts, credit vouchers and Association decals (excluding any supplies for terminals or other equipment, which shall be CUSTOMER’s responsibility). CUSTOMER shall display VISA, MasterCard and, if applicable, other Association decals and program
marks on promotional materials furnished by SERVICERS, as required by Association Rules, but shall not indicate that VISA, MasterCard or any other Association endorses CUSTOMER’s goods or services and shall not continue using such materials
after termination of this Agreement. 
  

	20.	Assignment. 

  

	 	20.1	Any transfer or assignment of this Agreement by CUSTOMER, by operation of law or otherwise, is voidable by SERVICERS without SERVICERS’ prior written consent. In the event of
such transfer or assignment, the party to whom the Agreement was transferred or assigned shall be bound to the terms and conditions of this Agreement to the same extent as if SERVICERS and such assignee or transferee, as the case may be, entered
into an agreement identical to this Agreement on the effective date of such transfer or assignment. Furthermore, CUSTOMER shall indemnity and hold SERVICERS harmless from all liabilities, Chargebacks, expenses, costs, fees and fines arising in
connection with such transferees or assignees, as the case may be, submission of Card transactions to SERVICERS for processing. For purposes of this Agreement, any transfer of voting control of CUSTOMER or its parent shall be considered an
assignment or transfer hereof. 

  

 10 

	 	20.2	Upon notice to CUSTOMER, another VISA and MasterCard member may be substituted for BANK under whose sponsorship this Agreement is performed and for whom CMS is acting as agent
hereunder. Upon substitution, such other VISA and MasterCard member shall be responsible for all obligations required of BANK, including without limitation, full responsibility for its bankcard program and such other obligations as may be expressly
required by applicable Association Rules. Subject to Association Rules, SERVICERS may assign or transfer this Agreement and their rights and obligations hereunder and may delegate their duties hereunder, in whole or in part, to any third party,
whether in connection with a change in sponsorship, as set forth in the preceding sentence, or otherwise, without the notice to or consent of CUSTOMER. 

  

	 	20.3	Except as provided in the following sentence, this Agreement shall be binding upon successors and assigns and shall inure to the benefit of the parties and their respective
permitted successors and assigns. No assignee for the benefit of creditors, custodian, receiver, trustee in bankruptcy, debtor in possession, sheriff or any other officer of a court, or other person charged with taking custody of a party’s
assets or business, shall have any right to continue or to assume or to assign this Agreement. 

  

	21.	Term; Events of Default. 

  

	 	21.1	This Agreement and the applicable Schedules shall become effective upon the date this Agreement and the applicable Schedules are signed by BANK, which shall in all instances be on
or after the date(s) CUSTOMER and CMS sign this Agreement and the applicable Schedules and CUSTOMER will be advised of the effective date by SERVICERS. 

  

	 	21.2	The initial term of this Agreement shall commence and shall continue in force for one year after it becomes effective. This Agreement shall renew for successive one-year periods
unless SERVICERS terminate this Agreement by notice to CUSTOMER, in writing, at least 60 days prior to the expiration of the term or renewal term, as the case may be. After the initial term and two renewal terms, in addition to SERVICERS’ right
to terminate, as set forth in the preceding sentence, CUSTOMER may also terminate this Agreement by notice to SERVICERS, in writing, at least 60 days prior to the expiration of the second or later renewal term. 

  

	 	21.3	If any of the following events shall occur (each an “Event of Default”): 

  

	 	(i)	a material adverse change in the business, financial condition, business procedures, products or services of CUSTOMER; or 

  

	 	(ii)	any assignment or transfer of voting control of CUSTOMER or its parent; or 

  

	 	(iii)	a sale of all or a substantial portion of CUSTOMER’s assets; or 

  

	 	(iv)	irregular Card sales by CUSTOMER, excessive Chargebacks or any other circumstances which, in SERVICERS’ sole discretion, may increase SERVICERS’ exposure for
CUSTOMER’s chargebacks or otherwise present a financial or security risk to SERVICERS; or 

  

	 	(v)	any representation or warranty of CUSTOMER in this Agreement is breached in any material respect or was or is incorrect in any material respect when made or deemed to be made; or

  

	 	(vi)	CUSTOMER shall default in any material respect in the performance or observance of any term, covenant, condition or agreement contained in this Agreement, including, without
limitation, the establishment or maintenance of funds in a Reserve Account, as detailed in Paragraph 22; 

  

 11 

	 	(vii)	CUSTOMER shall default in any material respect in the performance or observance of any term, covenant or condition contained in any agreement with any affiliate of SERVICERS,
including, but not limited to, any agreement governing check guarantee or check verification services; or 

  

	 	(viii)	CUSTOMER shall default in the payment when due, whether upon maturity or otherwise, of any material indebtedness for borrowed money or any material trade payable (other than any
trade payable subject to a good faith dispute by CUSTOMER so long as CUSTOMER is actively pursuing resolution of such dispute); or 

  

	 	(ix)	CUSTOMER shall: commence a voluntary case under the Bankruptcy Code; file a petition seeking to take advantage of any other laws, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, winding up or entry into a composition agreement or similar arrangement for adjustment of debts; consent to or fail to contest in a timely and appropriate manner any petition filed against it in an involuntary case under
such bankruptcy laws or other laws; apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part
of its property, domestic or foreign; generally become unable to pay its debts or trade obligations as they become due; make a general assignment for the benefit of creditors; or take any corporate action for the purpose of authorizing any of the
foregoing; or 

  

	 	(x)	a case or other proceeding shall be commenced against CUSTOMER, in any court of competent jurisdiction seeking relief under the Bankruptcy Code or under any other laws, domestic or
foreign, relating to bankruptcy, insolvency, reorganization, winding up or adjustment of debts, the appointment of a trustee, receiver, custodian, liquidator or the like of CUSTOMER, or of all or any substantial part of the assets, domestic or
foreign, of CUSTOMER, and such case or proceeding shall continue undismissed or unstayed for a period of 60 consecutive days, or an order granting the relief requested in such case or proceeding against CUSTOMER (including, but not limited to, an
order for relief under the Bankruptcy Code) shall be entered; or 

  

	 	(xi)	the independent certified accountants retained by CUSTOMER shall refuse to deliver an unqualified opinion with respect to the annual financial statements of CUSTOMER and its
consolidated subsidiaries; 

  
 then, upon the occurrence of
(1) an Event of Default specified in subparagraphs (iv), (ix) or (x) above, SERVICERS may consider this Agreement to be terminated immediately, without notice, and all amounts payable hereunder by CUSTOMER to SERVICERS shall be
immediately due and payable in full without demand or other notice of any kind, all of which are expressly waived by CUSTOMER, and (2) any other Event of Default, this Agreement may be terminated by SERVICERS by giving not less than 10
days’ notice to CUSTOMER, and upon such notice all amounts payable hereunder by CUSTOMER to SERVICERS shall be due and payable on demand. 
  

	 	21.4	Neither the expiration nor termination of this Agreement shall terminate the obligations and rights of the parties pursuant to provisions of this Agreement which by their terms are
intended to survive or be perpetual or irrevocable and such provisions shall survive the expiration or termination of this Agreement. 

  

	 	21.5	If any Event of Default shall have occurred and be continuing, SERVICERS may, in their sole discretion, exercise all of their rights and remedies under applicable law, including,
without limitation, exercising their rights under Section 22. 

  

	 	21.6	This Agreement also may be terminated by SERVICERS prior to the then-current expiration date upon at least 90 days’ advance written notice, if CUSTOMER’s Card transactions
fail to conform to the volume or average transaction size representations as set forth in the Schedules. 

  

 12 

	 	21.7	If this Agreement is terminated for cause, CUSTOMER acknowledges that SERVICERS may be required to report CUSTOMER’s business name and the name and other identification of its
principals to the Combined Terminated Merchant File maintained by VISA and MasterCard. CUSTOMER expressly agrees and consents to such reporting in the event CUSTOMER is terminated as a result of the occurrence of an Event of Default or for any
reason specified as cause by VISA or MasterCard. Furthermore, CUSTOMER agrees to waive and hold SERVICERS harmless from and against, any and all claims which CUSTOMER may have as a result of such reporting. 

  

	 	21.8	The provisions governing processing and settlement of Card transactions, all related adjustments, fees and other amounts due from CUSTOMER and the resolution of any related
chargebacks, disputes or other issues involving Card transactions will continue to apply even after termination of this Agreement, until all Card transactions made prior to such termination are settled or resolved. In addition, the provisions of
Sections 13 through 18, inclusive, 20, 22, 24 and 25, and Subsections 21.7, 21.9, 26.2 and 26.3, all in this Agreement, shall survive any termination. Upon termination of this Agreement, CUSTOMER agrees to immediately send SERVICERS all
the data relating to Card transactions made up to the date of termination. 

  

	 	21.9	After termination of this Agreement for any reason whatsoever, CUSTOMER shall continue to bear total responsibility for all Chargebacks, fees, credits and adjustments resulting from
Card transactions processed pursuant to this Agreement and all other amounts then due or which thereafter may become due to SERVICERS under this Agreement or which may be due to SERVICERS before or after such termination to either SERVICERS or any
of SERVICERS’ affiliates for any related equipment or related services. 

  

	22.	Reserve Account; Security Interest. 

  

	 	22.1	CUSTOMER expressly authorizes SERVICERS to establish a Reserve Account pursuant to the terms and conditions set forth in this Section 22. The initial amount of such Reserve
Account shall be set by SERVICERS, in their sole discretion, based upon CUSTOMER processing history and the anticipated risk of loss to SERVICERS. 

  

	 	22.2	The Reserve Account shall be fully funded upon three days notice to CUSTOMER, or in instances of fraud or an Event of Default, reserve account funding may be immediate. Such Reserve
Account may be funded by all or any combination of the following: (i) one or more debits to CUSTOMER’s Settlement Account or any other accounts held by BANK, or any of its affiliates; (ii) one or more deductions or off sets to any
payments otherwise due to CUSTOMER; (iii) CUSTOMER’s delivery to SERVICERS of a letter of credit; or (iv) if SERVICERS so agree, CUSTOMER’s pledge to SERVICERS of a freely transferable and negotiable certificate of deposit. Any
such letter of credit or certificate of deposit shall be issued or established by a financial institution acceptable to SERVICERS and shall be in a form satisfactory to SERVICERS. In the event of termination of this Agreement by either CUSTOMER or
SERVICERS, an immediate Reserve Account may be established without notice in the manner provided above. Any Reserve Account will be held by BANK for the greater of ten months after termination of this Agreement or for such longer period of time as
is consistent with BANK’s liability for Card transactions in accordance with Association Rules. CUSTOMER’s funds held in a reserve account may be held in a commingled Reserve Account for the reserve funds of BANK’s customers, without
involvement by an independent escrow agent. 

  

	 	22.3	If CUSTOMER’S funds in the Reserve Account are not sufficient to cover the Chargebacks, adjustments, fees and other charges due from CUSTOMER, or if the funds in the Reserve
Account have been released, CUSTOMER agrees to promptly pay SERVICERS such sums upon request. In the event of a failure by CUSTOMER to fund the Reserve Account, SERVICERS may fund such Reserve Account in the manner set forth in subsection 22.2,
above. 

  

 13 

	 	22.4	To secure CUSTOMER’S obligations to SERVICERS and their affiliates under this Agreement and any other agreement for the provision of related equipment or related services,
CUSTOMER grants to SERVICERS a lien and security interest in and to any of CUSTOMER’s funds pertaining to the Card transactions contemplated by this Agreement now or hereafter in the possession of SERVICERS, whether now or hereafter due or to
become due to CUSTOMER from SERVICERS. Any such funds, money or amounts may be commingled with other funds of SERVICERS, or, in the case of any funds held pursuant to the foregoing paragraphs, with any other funds of other customers of SERVICERS. In
addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, SERVICERS are hereby authorized by CUSTOMER at any time and from time to time, without notice or demand to CUSTOMER or to any other
person (any such notice and demand being hereby expressly waived), to set off, recoup and to appropriate and to apply any and all such funds against and on account of CUSTOMER’s obligations to SERVICERS and their affiliates under this Agreement
and any other agreement with SERVICERS or any of SERVICERS’ affiliates for any related equipment or related services (including any check guarantee and check verification services), whether such obligations are liquidated, unliquidated, fixed,
contingent, matured or unmatured. CUSTOMER agrees to duly execute and deliver to SERVICERS such instruments and documents as SERVICERS may reasonably request to perfect and confirm the lien, security interest, right of set off, recoupment and
subordination set forth in this Agreement. 

  

	23.	Financial and Other Information. 

  

	 	23.1	CUSTOMER agrees to provide SERVICERS quarterly financial statements of CUSTOMER within 45 days after the end of each fiscal quarter and annual audited financial statements within 90
days after the end of each fiscal year. Such financial statements shall be prepared in accordance with generally accepted accounting principles. CUSTOMER also shall provide such other financial statements and other information concerning
CUSTOMER’s business and CUSTOMER’s compliance with the terms and provisions of this Agreement as SERVICERS may reasonably request. CUSTOMER authorizes SERVICERS to obtain from third parties financial and credit information relating to
CUSTOMER in connection with SERVICERS’ determination whether to accept this Agreement and SERVICERS’ continuing evaluation of the financial and credit status of CUSTOMER. Upon request, CUSTOMER shall provide to SERVICERS or their
representatives reasonable access to CUSTOMER’s facilities and records for the purpose of performing any inspection and/or copying of CUSTOMER’s books and/or records deemed appropriate by SERVICERS. 

  

	 	23.2	CUSTOMER will provide SERVICERS with written notice of CUSTOMER’s intent to liquidate, substantially change the basic nature of its business, transfer or sell any substantial
part (25% or more in value) of its total assets, or if CUSTOMER or its parent is not a corporation whose shares are listed on a national securities exchange or on the over-the-counter market, change the control or ownership of CUSTOMER or its
parent, 30 days prior to such liquidation, change, transfer or sale taking place. CUSTOMER will also notify SERVICERS of any judgment, writ, warrant of attachment, execution or levy against any substantial part (25% or more in value) of
CUSTOMER’s total assets not later than three days after CUSTOMER obtains knowledge of any such judgment, writ, warrant of attachment, execution or levy. 

  

	24.	Indemnification. 

  

	 	24.1	CUSTOMER agrees to indemnify and hold harmless SERVICERS from and against all losses, liabilities, damages and expenses (including attorneys’ fees and collection costs)
resulting from any breach of any warranty, covenant or agreement or any misrepresentation by CUSTOMER under this Agreement, or arising out of any gross negligence or willful misconduct of CUSTOMER or its employees, in connection with CUSTOMER’s
Card transactions or otherwise arising from CUSTOMER’s provision of goods and services to Cardholders. 

  

 14 

	 	24.2	SERVICERS agree to indemnify and hold harmless CUSTOMER from and against all losses, liabilities, damages and expenses resulting from any breach of any warranty, covenant or
agreement or any misrepresentation by SERVICERS under this Agreement or arising out of the gross negligence or willful misconduct of SERVICERS or their employees in connection with this Agreement. 

  

	25.	Liquidated Damages. 

  

	 	25.1	The parties further agree and acknowledge that, in addition to any remedies contained herein or otherwise available under applicable law and, notwithstanding anything to the
contrary elsewhere in this Agreement, if (a) CUSTOMER breaches this Agreement by improperly terminating it prior to the expiration of the applicable term of the Agreement, or (b) this Agreement is terminated prior to the expiration of the
applicable term of the Agreement in accordance with, and due to, an Event of Default by CUSTOMER specified in subsection 21.3, then SERVICERS will suffer a substantial injury that is difficult or impossible to accurately estimate. Accordingly, in an
effort to liquidate in advance the sum that should represent the damages which would actually be sustained by SERVICERS as the result of such a termination, the parties have agreed that the amount calculated in the manner specified below is a
reasonable pre-estimate of SERVICERS’ probable loss, which shall be paid to SERVICERS as liquidated damages in the event of any such termination. Any recovery pursuant to this Section 25 shall in no way limit SERVICERS’ right to
receive any payments due from CUSTOMER pursuant to Section 14. Such liquidated damages shall be paid to SERVICERS within 15 days after CUSTOMER’s receipt of SERVICERS’ calculation of the amount due. The liquidated damages amount
shall equal 80% of the product of (i) the average net monthly fees, as determined in accordance with subsection 25.2, and (ii) the number of months, including any pro rata portion of a month, including the initial term or any renewal
term, as applicable. 

  

	 	25.2	The average net monthly fees shall equal one-twelfth of the gross fees payable pursuant to the Schedules, less applicable interchange fees and assessments due pursuant to this
Agreement, during the 12 months immediately preceding the date on which (i) SERVICERS receive notice from CUSTOMER of its intention to terminate this Agreement early, or (ii) SERVICERS learn of CUSTOMER’s early termination in
violation of this Agreement, or (iii) this Agreement is terminated early pursuant to subsection 21.3 (whichever produces the higher amount); provided, however, if the Agreement has been in place has less than 12 months, the estimated
average net monthly fees shall equal the aggregate gross fees paid hereunder by CUSTOMER, divided by the number of months the Agreement was effective. 

  

	26.	Miscellaneous. 

  

	 	26.1	No party shall be liable for any default or delay in the performance of its obligations under this Agreement if and to the extent such default or delay is caused, directly or
indirectly, by (i) fire, flood, elements of nature or other acts of God; (ii) any outbreak or escalation of hostilities, war, riots or civil disorders in any country; (iii) any act or omission of the other party or any government
authority; (iv) any labor disputes (whether or not employees’ demands are reasonable or within the party’s power to satisfy); or (v) the nonperformance by a third party for any similar cause beyond the reasonable control of such
party, including without limitation, failures or fluctuations in telecommunications or other equipment. In any such event, the non-performing party shall be excused from any further performance and observance of the obligations so affected only for
as long as such circumstances prevail and such party continues to use commercially reasonable efforts to recommence performance or observance as soon as practicable. 

  

	 	26.2	 This Agreement shall be governed by and construed in accordance with the laws of the State of New York (without regard to its choice of law provisions). In
performing its obligations under this Agreement, each party agrees to comply with all laws and regulations applicable to it. SERVICERS AND CUSTOMER IRREVOCABLY WAIVE ANY AND ALL RIGHTS 

  

 15 

	 	 
THEY MAY HAVE TO A TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING ANY CLAIM RELATING TO OR ARISING UNDER THIS AGREEMENT.

  

	 	26.3	CUSTOMER shall be liable for and shall indemnify SERVICERS for any and all attorney’s fees, collection costs and other costs and expenses paid or incurred by SERVICERS in the
enforcement hereof, or in collecting any amount due from CUSTOMER to SERVICERS hereunder or resulting from any breach by CUSTOMER of any of the terms or conditions of this Agreement. 

  

	 	26.4	If CUSTOMER requests SERVICERS to perform or provide any system enhancements, custom reports, or related service enhancements that are different from or in addition to the system,
services and reports SERVICERS otherwise agree to provide to CUSTOMER (collectively, “System Enhancements”), SERVICERS will use reasonable efforts to provide such System Enhancements if CUSTOMER pays SERVICERS the additional fees charged
by SERVICERS for such System Enhancements. Following receipt of any request for System Enhancements and prior to providing the requested System Enhancements, SERVICERS shall provide CUSTOMER with a description of the System Enhancements to be made,
together with an estimate of SERVICERS’ fee for providing such System Enhancements. If CUSTOMER thereafter instructs SERVICERS to make such System Enhancements, SERVICERS shall do so, and CUSTOMER shall pay the additional fees charged by
SERVICERS for such System Enhancements. 

  

	 	26.5	Except as otherwise specifically provided, all notices and other communication required or permitted hereunder (other than those involving normal operational matters relating to the
processing of Card transactions) shall be in writing, shall be sent by mail, courier or facsimile (facsimile notices shall be confirmed in writing by courier), if to CUSTOMER at its address appearing at the beginning on this Agreement, and if to
SERVICERS at 265 Broad Hollow Road, Melville, New York 11747, Facsimile (516) 843-6822, Attention: Executive Vice President Operations, with a copy to Attention: General Counsel’s Office at 1401 N.W. 136th Avenue, Sunrise,
Florida 33323, Facsimile: (954) 845-5550, and shall be deemed to have been given (i) if sent by mail or courier, when received and (ii) if sent by facsimile machine, when the courier confirmation copy is actually received. Notice
given in any other manner shall be effective when actually received. 

  

	 	26.6	The headings contained in this Agreement are for convenience of reference only and shall not in any way affect the meaning or construction of any provision of this Agreement.

  

	 	26.7	The parties intend every provision of this Agreement to be severable. If any part of this Agreement is not enforceable, the remaining provisions still remain valid and enforceable.
If a court of competent jurisdiction determines that any term or provision contained herein is illegal or invalid for any reason, the illegality or invalidity shall not affect the validity of the remainder of this Agreement. In such case, the
parties shall in good faith modify or substitute such provision consistent with the original intent of the parties. Without limiting the generality of this paragraph, if a court determines that any remedy stated in this Agreement has failed of its
essential purpose, then all other provisions of this Agreement, including the limitations on liability and exclusion of damages, shall remain fully effective. 

  

	 	26.8	This Agreement, along with the Schedules and the Operating Guide, constitutes the entire agreement between the parties with respect to the subject matter, superseding any previous
agreements and understandings and, except as provided in other Sections of this Agreement, the Schedules or the Operating Guide, can be changed only by a written agreement signed by all parties. A party’s waiver of a breach of any term or
condition of this Agreement shall not be deemed a waiver of any subsequent breach of the same or another term or condition. 

  

	 	26.9	 The parties acknowledge that the VISA and MasterCard Association Rules give VISA and MasterCard certain rights to require termination or modification of this
Agreement with respect to transactions involving VISA and MasterCard Cards and the VISA and MasterCard Card system and to investigate CUSTOMER. The parties also acknowledge that issuers of other Cards, for 

  

 16 

	 	 
which SERVICERS perform services on behalf of CUSTOMER, may have similar rights under their applicable Association Rules with respect to this
Agreement’s applicability to transactions involving such other Cards. 

  
 The parties hereto have caused this Agreement to be executed by their duly authorized officers. THIS AGREEMENT IS NOT BINDING UPON SERVICERS UNTIL SIGNED BY SERVICERS OR UPON THE OCCURRENCE OF ONE OF THE EVENTS SET
FORTH IN SUBSECTION 21.1. 
  

									
	 Buycomp, L.L.C.
	 	 	 	 FIRST FINANCIAL BANK

	 (“CUSTOMER”) d/b/a Buycomp.com
	 	 	 	 (“BANK”)

					
	By:	 	 /s/ Murray Williams
	 	 	 	 By:
	 	 /s/ Patrick H. Volpe

					
	 Name:
	 	 Murray Williams
	 	 	 	 Name:
	 	 Patrick H. Volpe

	 	 	 (Please Print or Type)
	 	 	 	 	 	 (Please Print or Type)

					
	 Title:
	 	 Director of Finance
	 	 	 	 Title:
	 	 Asst. Vice President

				
	 Chase Merchant Services, L.L.C.
	 	 	 	 	 	 
	 (“CMS”)
	 	 	 	 	 	 
					
	By:	 	 /s/ Diane T. Vogt
	 	 	 	 	 	 
					
	 Name:
	 	 Diane T. Vogt
	 	 	 	 	 	 
	 	 	 (Please Print or Type)
	 	 	 	 	 	 
					
	 Title:
	 	 Chief Executive Officer
	 	 	 	 	 	 
					
	 Date:
	 	 9/3/98
	 	 	 	 	 	 

  

 17 

 ANNEX 1 
  
 The following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the
terms defined): 
  

	 	1.1	“Association” means any entity formed to administer and promote Cards, including VISA and MasterCard, and any other entity as specified on the Schedules to this
Agreement. 

  

	 	1.2	“Association Rules” mean the rules, regulations, releases, interpretations and other requirements (whether contractual or otherwise) imposed or adopted by any
Association. 

  

	 	1.3	“Authorization” means the process by which CUSTOMER electronically accesses SERVICERS’ computerized system, unless such system is inoperable or otherwise not
accessible to CUSTOMER, in which case CUSTOMER shall utilize the designated toll-free telephone number, to obtain credit approval from the Card issuing bank before completion of the Card transaction. 

  

	 	1.4	“Bankruptcy Code” means title 11 of the United States Code, as amended from time to time. 

  

	 	1.5	“Business Day” means a day (other than Saturday or Sunday) on which SERVICERS are generally open for business. 

  

	 	1.6	“Card” means a valid credit card or valid off-line debit card bearing the service mark of VISA or MasterCard and, to the extent the Schedules so provide, a valid
card issued by any other Associations specified on such Schedules. 

  

	 	1.7	“Cardholder” means the individual whose name is embossed on the Card and any authorized user of such Card. 

  

	 	1.8	“Chargeback” means the procedure by which a Sales Draft or other indicia of a Card transaction (or disputed portion thereof) is returned to Bank or the Card issuing
bank, for failing to comply with Association Rules, the liability of which is the CUSTOMER’S responsibility. 

  

	 	1.9	“Credit Voucher” means the evidence of a refund or price adjustment by CUSTOMER to a Cardholder’s account in connection with a prior purchase by such
Cardholder using a Card, regardless of whether the form of such evidence is in paper, electronic or otherwise. 

  

	 	1.10	“CUSTOMER’S Chargeback Percentage” means the actual monthly percentage calculated by dividing CUSTOMER’s total monthly VISA and MasterCard Chargeback
items in any line of business by the number of CUSTOMER’s total monthly VISA and MasterCard transactions in such line of business. 

  

	 	1.11	“Operating Guide” means the then-current manual prepared by SERVICERS, containing operational procedures, instructions and other directives relating to Card
transactions. 

  

	 	1.12	“Preauthorized Order” means a Cardholder’s written authorization to make one or more future charges to such Cardholder’s MasterCard Card account.

  

	 	1.13	“Recurring Sale” means a Cardholder’s written authorization to make one or more future charges to such Cardholder’s Visa or other non-MasterCard Card
account. 

  

	 	1.14	“Reserve Account” means a fund established and managed by SERVICERS to protect against actual or contingent liability arising from Chargebacks, adjustments, fees
and other charges due to or incurred by SERVICERS. 

	 	1.15	“Sales Draft” means evidence of a purchase of goods or services by a Cardholder from CUSTOMER using a Card, regardless of whether the form of such evidence is in
paper, electronic or otherwise, all of which must conform to Association Rules. 

  

	 	1.16	“Schedules” means the attachments, addenda and other documents, including revisions thereto, which may be incorporated into and made part of this Agreement.

  

	 	1.17	“Services” means the activities undertaken by SERVICERS to authorize, process and settle all United States Dollar denominated VISA and MasterCard Card transactions
undertaken by Cardholders at CUSTOMER’s location(s) in the United States, and all other activities necessary for SERVICERS to perform the functions specified on the Schedules for all other Cards covered by this Agreement.

  

	 	1.18	“Settlement Account” means an account at a financial institution designated by CUSTOMER as the account to be debited and credited by SERVICERS for Card
transactions, fees, Chargebacks and other amounts due hereunder or in connection herewith (i.e., fines, penalties, attorneys’ fees, etc.). 

  

 2 

 SCHEDULE A 
  

	1.	Bankcard Fees: 

  

	 	(a)	The Bankcard Service Fee of [***] per Visa and [***] per MasterCard transaction will be charged daily and is based on: 

  

	 	(i)	an average ticket of $400.00 and 

  

	 	(ii)	An annual bankcard value of $35,000,000 and 

  

	 	(iii)	each of Customer’s transactions qualifying for Visa and MasterCard interchange levels. (PLEASE SEE ATTACHED SCHEDULE) 

  

	 	(b)	In the event that any of Customer’s MasterCard and Visa transactions qualify for different interchange levels than those stated above, Servicers will bill back or credit
Customer for the difference between the established rate and the qualified rate on a monthly basis. The interchange fees, assessments and qualifying criteria set forth in Attachment I annexed hereto may be changed from time to time as mandated by
the Associations. 

  

	2.	Bankcard Authorization Capture Fees: 

  
 The following chart sets forth the authorization and capture fees to be charged on a [***] to Customer: 
  

							
	 	  	Authorization
(Per transaction)

	 	Data Capture
(Per transaction)

	 	Data Auth./Capture
(Per transaction)

				
	 MasterCard
	  	[***]	 	[***]	 	[***]
				
	 Visa
	  	[***]	 	[***]	 	[***]

  
 The Authorization fee
set forth above includes the additional fee to be charged for Customer’s use of Servicers’ Multi-trans system. The above fee is based on a disconnect timer setting of N/A seconds. 
  

	3.	Fees for Services: 

  

			
	Lease Line:	  	Servicers will provide a leased line connection from its data center to Customer’s data center for a one-time installation fee of $[***] per leased line; and will provide [***] modems at
$[***]; additionally, monthly line charges will be $[***].
		
	Voice	  	 
	Authorization:	  	The following fees will be charged for voice authorization services: VRU: [***] per authorization; Voice/RVU: [***] per authorization
		
	 Chargeback
 Processing:
	  	Chargeback Fee of $[***]
		
	Monthly-On-Line:	  	A monthly on-line fee of $[***] will be charged.
		
	Funding Fee:	  	A funding fee of $[***] will be charged to Customer.
		
	Implementation 	  	 
	Fee:	  	A one-time implementation fee of $[***] will be charged. A $[***] rush fee will be charged for each location to be implemented within a 72 hour timeframe.

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

			
	Authorization	  	 
	Recycle Fee:	  	A recycle authorization fee of $[***] will be charged for each authorization request which must be re-submitted for approval.
		
	 Monthly
 Minimum 
	  	 
	Processing Fee:	  	In the event Customer processes less than [***] in any calendar month, Servicers will charge Customer a monthly minimum processing fee of [***].
		
	Financial 	  	 
	Activity Report:	  	Servicers will provide Customer with a financial activity report (“FARS”) file in accordance with Customer’s settlement cycle at a charge of $[***] per month.
		
	Cash 	  	 
	Management:	  	Servicers will provide Customer with a Cash Management file on a daily basis at a charge of $[***] per month.
		
	IC Verify:	  	Customer will be charged a software fee of $[***] per diskette and a charge of $[***] per magnetic stripe reader.
		
	Credit Fee:	  	[***] per credit.

  
 The fees set forth in this
Section 3 may be adjusted without notice to reflect increases or decreases in applicable sales or telecommunication taxes as levied by federal, state or local authorities. 
  

	4.	Additional Services: 

  
 It is understood and agreed that Bank shall have no liability whatsoever regarding the processing, authorization or any other service provided by CMS in connection with cards bearing the servicemark of organizations
other than the Visa or MasterCard associations. 
  
 The additional services to be
provided by CMS hereunder shall be in accordance with the terms set forth in the Attachments annexed hereto. 
  

					
	Attachment I	    	Interchange Fees and Criteria	  	 
	Attachment II	    	Other Cards	  	 

  

	5.	Payment Plan: 

  

					
	Payment Method is	    	ACH	  	 

  
 All payments to Customer for purchases
by CMS and Bank of valid Debt shall be by Fedwire (bankwire) or through the Automated Clearing House (ACH) and shall normally be electronically transmitted directly to the demand deposit account indicated below, or any successor account designated
to receive provisional funding of Customer’s Card sales pursuant to the Bankcard Agreement (“Settlement Account”). Neither Bank or CMS can guarantee the timelines with which any payment may be credited by Customer’s depository
institution (“Depository”). 
  
 Customer hereby authorizes Bank and CMS
to access information from the Settlement Account and to initiate credit and/or debit entries by Fedwire (bankwire) or ACH transfer and to authorize Depository to block or to initiate, if necessary, reversing entries and adjustments for any original
entries made to the Settlement Account and to authorize Depository to provide such access and to credit and/or debit or to block the same to such account. This authorization is without respect to the source of any funds in the Settlement Account, is
irrevocable and coupled 

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  
 2 

 
with an interest. This authority extends to any equipment rental or purchase agreements which may exist between CMS and Customer as well as to any fees and
assessments and Chargeback amounts of whatever kind or nature due to CMS and Bank under the Bankcard Agreement. This authority is to remain in full force and effect at all times unless and until CMS and Bank have consented to its termination in such
time and in such manner as to afford CMS and Bank and Depository a reasonable opportunity to act on it. In addition, Customer understands and agrees that CMS shall charge Customer [***] for each ACH which cannot be processed, and all subsequent
funding may be suspended until Customer either (i) notifies CMS that ACHs can be processed; or (ii) a new Electronic Funding Agreement is signed by Customer. In order to insure transactions are properly handled, a copy of a blank, voided
check must be attached. Customer’s bank must be able to process or accept electronic transfers either via ACH and/or Fedwire (bankwire) which transfers are processed utilizing the Federal Reserve System. 
  

									
	 Bank of America
	 	 675 Anton Blvd., Costa Mesa, CA 92626

	 Name of bank
	 	 	 	 Address of bank

		
	 06943-17538
	 	 122000661

	 Demand deposit number (“Settlement Account”)
	 	 Transit/AHA number

		
	 BUYCOMP, L.L.C.
	 	 
	 d/b/a BUYCOMP.COM
	 	 CHASE MERCHANT SERVICES, L.L.C.

	 (“CUSTOMER”)
	 	 (“CMS”)

					
	By:	 	 /s/ Murray Williams
	 	 	 	 By:
	 	 /s/ Diane T. Vogt

					
	 Name:
	 	 Murray Williams
	 	 	 	 Name:
	 	 Diane T. Vogt

	 	 	 	 	 	 	 	 	 Chief Executive Officer

	 Title:
	 	 Director of Finance
	 	 	 	 Title:
	 	 Chase Merchant Services, LLC

					
	 Date:
	 	 7/31/98
	 	 	 	 Date:
	 	 9/3/98

				
	 FIRST FINANCIAL BANK
	 	 	 	 	 	 
					
	By:	 	 /s/ Patrick H. Volpe
	 	 	 	 	 	 
					
	 Name:
	 	 Patrick H. Volpe
	 	 	 	 	 	 
	 	 	 Asst. Vice President
	 	 	 	 	 	 
					
	 Title:
	 	 First Financial Bank
	 	 	 	 	 	 
					
	 Date:
	 	 8/6/98
	 	 	 	 	 	 

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  
 3 

 ATTACHMENT 1 TO SCHEDULE A 
 APRIL 1998 
  
 Visa Interchange Fees 
  

				
	 CPS Retail 1
	  	[	***]
	 CPS Card Not Present
	  	[	***]
	 CPS Retail 2
	  	[	***]
	 CPS Retail Key Entered Commercial Card (Non T&E)
	  	[	***]
	 Electronic Interchange Reimbursement Fee (EIRF)
	  	[	***]
	 Standard
	  	[	***]

  
 Visa Assessment Fee

 (based on gross sales volume) 
 [***] 
  
 MasterCard Interchange Fees 
  

				
	 MERIT III
	  	[	***]
	 MERIT I
	  	[	***]
	 Foreign Electronic (Non U.S. Location)
	  	[	***]
	 Foreign Electronic (U.S. Location)
	  	[	***]
	 Foreign Standard (Non U.S. Location)
	  	[	***]
	 Foreign Standard (U.S. Location)
	  	[	***]
	 Standard
	  	[	***]

  
 MasterCard Assessment
Fee 
 (based on gross sales volume) 
 [***] 
  
 Summary of Visa Interchange Requirements

  
 CPS Retail 1 
  

	 	•	 	Zero Floor Limit with a single authorization/settlement for each transaction 

  

	 	•	 	Read and transmit entire magnetic stripe data in authorization record 

  

	 	•	 	Deposit and clear through Visa within 2 days 

  

	 	•	 	Transaction must be face to face with the card present and signature obtained 

  

	 	•	 	Enriched data in authorization and settlement records 

  

	 	•	 	Purchase date must be within 1 day of authorization date 

  

	 	•	 	Authorization and clearing MCC must match 

  

	 	•	 	Terminal at the point of sale must be, under normal operating conditions, capable of electronically reading and transmitting the entire contents of the stripe

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

 ATTACHMENT II TO SCHEDULE A 
  
 Other Card Services 
  
 This Attachment II to Schedule A supplements the Merchant Bankcard Agreement (the “Agreement) to which it is attached and sets forth the terms applicable to
CMS’ provision of the specified services for the Card transactions issued by the entities set forth below: 
  
 (Select as applicable) 
  

							
	 American Express
	  	X	  	 JCB
	  	X
	 Diners Club
	  	X	  	 Discover (“Novus”)
	  	X

  
 The Card issuing entities selected
above are collectively referred to as (“Issuer”) unless otherwise specified in this Attachment II. 
  
 The following sets forth the annual volume for each Issuer Card: 
  

							
	 American Express:
	 	 	  	 JCB:
	  	 
	 Diners Club:
	 	 	  	 Novus:
	  	 

  
 1. FEES: 
  

					
	 	  	 Authorization
(Per transaction)

	  	 Auth./Processing
(Per Transaction)

	 American Express:
	  	$____ or ___% of face amount of tran.	  	$[***] or ___% of face amount of tran.
	 Diners Club:
	  	$____ or ___% of face amount of tran.	  	$[***] or ___% of face amount of tran.
	 JCB:
	  	$____ or ___% of face amount of tran.	  	$[***] or ___% of face amount of tran.
	 Novus:
	  	$____ or ___% of face amount of tran.	  	$[***] or ___% of face amount of tran.
			
	 	  	 Settlement Services
(Per transaction)

	  	 
	 Diners:
	  	[***] % of face amount tran.	  	 
	 JCB:
	  	[***] % of face amount tran.	  	 

  
 2. GENERAL: Customer understands and
acknowledges that CMS’ sole responsibility with respect to ISSUER Card transactions shall be to provide the services specified in this Attachment. 
  
 In the event Customer has a separate Issuer Agreement with a respective Issuer, all Chargeback and financial obligations including but not limited to fees and issues
related thereto shall be governed by the terms of such Issuer Agreement. Notwithstanding the foregoing, in the event CMS is providing settlement services for Diners Club and/or JCB transactions, CMS shall be responsible for providing such services
pursuant to the terms of the Agreement. Customer shall comply with all terms and conditions of the Issuer Agreement and the applicable rules, regulations, interpretations and other requirements of the respective Issuer and shall not seek
authorization for or submit for processing or settlement hereunder any Issuer Card transactions at anytime when Customer does not have in effect a valid Issuer Agreement with such Issuer. Customer agrees to notify CMS immediately upon the
termination of any Issuer Agreement to which it is a party. Upon such termination, CMS shall have no further obligations hereunder to provide any services to Customer with respect to any transactions involving such Issuer Cards. 
  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

 In the event Customer does not have a separate Issuer Agreement with a respective Issuer, the Issuer Card services to be
provided hereunder shall be in accordance with the terms of the Agreement and this Attachment. 
  
 3. ISSUER CONSENTS: 
  
 Customer shall be
responsible for obtaining any operational consents required of Issuer to comply with procedures or practices contemplated by both Customer and CMS under this Agreement. 
  
 4. AUTHORIZATION SERVICES ONLY: 
  
 In the event CMS is providing authorization services for Issuer Card transactions as specified herein, Customer shall seek such authorization from CMS pursuant to the
applicable Issuer Agreement or in the absence thereof, the applicable section of the Agreement. Unless CMS is providing processing services for Issuer Card transactions as specified in this Attachment, Customer shall be responsible for processing
and submitting directly to the applicable Issuer for settlement of such Card transactions. 
  
 5. PROCESSING AND SUBMISSION TO ISSUERS: 
  
 In
the event CMS is providing processing services for Issuer Card transactions as specified herein, Customer shall submit to CMS for processing all of Customer’s Issuer Card transactions and CMS shall process such transactions and transmit them
electronically to the applicable Issuer with a summary of such Card transactions. 
  
 6. SETTLEMENT SERVICES: 
  
 In the event CMS is providing settlement
services for Diners Club and/or JCB transactions as specified herein, all provisions of the Agreement shall apply to Customer’s Diners Club and/or JCB transactions. Following receipt of applicable settlement funds from Diners Club and/or JCB,
CMS will initiate a transfer of settlement funds pursuant to the terms set forth in the Agreement and applicable Schedules and/or Attachments. 
  

	(a)	Diners Club. If settlement services are provided for Diners Club (“Diners”) transactions: 

  

	 	(i)	Customer shall retain Diners sales drafts and Diners credit vouchers for a period of at least 90 days from the date of the Diners transaction, and Customer shall retain microfilm or
legible copies of Diners sales drafts and Diners credit vouchers for a period of at least seven years following the date of transaction. 

  

	 	(ii)	Customer shall not accept a Card embossed “for local use only” outside the territory in which it was issued; and 

  

	 	(iii)	Customer shall not accept an Amoco co-branded Card unless Customer has a specific contractual agreement authorizing Customer to do so. 

  

	(b)	JCB. If settlement services are provided by CMS for JCB transactions: 

  

	 	(i)	Customer shall retain original JCB sales drafts and JCB credit vouchers for a period of at least 120 days from the date of the JCB Card transaction and Customer shall retain
microfilm or legible copies of JCB sales drafts and JCB credit vouchers for a period of at least three years following the date of the transaction. 

  

	 	(ii)	For purposes of CMS’ Chargeback liability with respect to JCB transactions, an authorization obtained on a transaction does not override any Chargeback reason which may apply
to the item. 

  

	 	(iii)	If Customer processes JCB Card transaction data electronically, Customer’s account number must be included in the JCB Card transaction data transmitted to CMS, in addition to
the other information required by the Agreement to be included in each sales draft or credit voucher. 

  

 2 

	 	(iv)	The procedures and requirements contained in the applicable Attachments if Customer is a lodging merchant and accepts JCB Cards to reserve accommodations, subject to the right of
JCB Cardholders to cancel reservations at resort establishments until 4:00 p.m. on the scheduled arrival date, notwithstanding any earlier deadline established for Visa and MasterCard Cardholders. 

  

	 	(v)	By contracting for JCB settlement services, Customer authorizes JCB to publish its name, address and telephone number in JCB solicitation materials. 

  
 CMS does not warrant or bear responsibility for the performance of any Issuer in any way.

  

									
	 BUYCOMP, L.L.C.
	 	 	 	 CHASE MERCHANT SERVICES, L.L.C.

	 d/b/a BUYCOMP.COM
	 	 	 	 (“CMS”)

	 (“Customer”)
	 	 	 	 
					
	 By:
	 	 /s/ Amy S. Baker
	 	 	 	 By:
	 	 
					
	 Name:
	 	 Amy S. Baker
	 	 	 	 Name:
	 	 Diane T. Vogt

					
	 Title:
	 	 Controller
	 	 	 	 Title:
	 	 Chief Executive Officer

					
	 Date:
	 	 03/28/00
	 	 	 	 Date:
	 	 

  

									
	 FIRST FINANCIAL BANK
 (“Bank”)
	 	 	 	 
					
	 By:
	 	 	 	 	 	 	 	 
					
	 Title:
	 	 	 	 	 	 	 	 
					
	 Name:
	 	 	 	 	 	 	 	 
					
	 Date:
	 	 	 	 	 	 	 	 

  

 3 

 AMENDMENT TO MERCHANT SERVICES BANKCARD AGREEMENT 
  
 This Amendment is to the Merchant Services Bankcard Agreement executed on or about
August 6, 1998, entered into by and among Buy.com Inc., formerly known as Buycomp LLC (“CUSTOMER”), The Chase Manhattan Bank, a New York state chartered bank, as successor to First Financial Bank (‘BANK”), and Chase Merchant
Services, L.L.C. (“CMS”), CMS and BANK are collectively referred to as the “SERVICERS”. Except as specifically amended or waived below, the Agreement shall remain in full force and effect and is hereby ratified and confirmed.

  

	1.	Section 21.2. Term of Agreement 

  
 The term of the Agreement shall be extended for three (3) years beginning on January 1, 2002 and continuing through January 1, 2005. Unless sooner
terminated or expired, this Agreement shall continue in full force thereafter for successive one-year terms until terminated in writing by CUSTOMER or SERVICERS, by written notice given to the other party not less than (60) sixty days prior to
the then current expiration date. 
  

	2.	Schedule A. Processing Rates 

  
 See attached Schedule A. 
  
 IN WITNESS WHEREOF, the parties have executed this Amendment by their duly authorized officers, which shall not become binding upon SERVICERS until signed by SERVICERS. 
  

									
	Buy.com Inc.	 	 	 	The Chase Manhattan Bank
	(“CUSTOMER”)	 	 	 	 (“BANK”)

					
	 By:
	 	 /s/ Robert R. Price
	 	 	 	 By:
	 	 
					
	 Name:
	 	 Robert R. Price
	 	 	 	 Name:
	 	 
					
	 Title:
	 	 President, CFO
	 	 	 	 Title:
	 	 
					
	 Date:
	 	 01/15/2002
	 	 	 	 Date:
	 	 

  

									
	Chase Merchant Services, L.L.C.	 	 	 	 
	(“CMS”)	 	 	 	 
					
	 By:
	 	 	 	 	 	 	 	 
					
	 Name:
	 	 	 	 	 	 	 	 
					
	 Title:
	 	 	 	 	 	 	 	 
					
	 Date:
	 	 	 	 	 	 	 	 

 Schedule A 
  

	1.	Bankcard Fees: 

  

	 	(a)	The Bankcard Service Fee of [***] per Visa and
[***] per MasterCard will be charged daily and is based on: 

  

	 	(i)	an average ticket of $180.00; and 

  

	 	(ii)	an annual bankcard volume of $450 MM; and 

  

	 	(iii)	each of Customer’s transactions qualifying for Visa [***] and MasterCard [***] interchange levels. 

  

	 	(b)	The interchange fees, assessments and qualifying criteria set forth in Attachment I annexed hereto may be changed from time to time as mandated by the Associations.

  

	2.	Bankcard Authorization Capture Fees: 

  
 The following chart sets forth the authorization and capture fees to be charged on a daily basis to Customer; 
  

							
	 	  	 Authorization
 (Per transaction)

	  	 Data Capture
 (Per transaction)

	  	 Data
 Auth./Capture
 (Per transaction)

	 Mastercard
	  	[***]	  	[***]	  	[***]
	 Visa
	  	[***]	  	[***]	  	[***]

  
 The Authorization fee
set forth above includes the additional fee to be charged for Customer’s use of Servicers’ Multi-trans system. The above fee is based on a disconnect timer setting of [***] seconds. 
  

	3.	Fees for Services: 

  

			
	Leased Line:	  	Servicers will provide a leased line connection from its data center to Customer’s data center for a one time installation fee of [***], per leased line; and will provide modems at [***]
additionally, monthly line charges will be [***].
		
	Voice 	  	 
	Authorization:	  	The following fees will be charged for voice authorization services: VRU: [***] per authorization; Voice/VRU: [***] per authorization.
		
	Chargeback	  	 
	Processing:	  	An excessive Chargeback handling fee will be charged in addition to any fee or fine imposed by Visa or MasterCard. In the event the Chargeback percentage of sales exceeds [***] annually,
Customer will be billed a Chargeback Processing Fee of [***], per Chargeback that exceeds the [***] level. Customer will be charged a fee of [***] per Chargeback.
		
	Monthly On-Line:	  	A monthly on-line fee of [***] will be charged.
		
	Funding Fee:	  	A funding fee of [***] will be charged to Customer.

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  
 2 

			
	Implementation	  	 
	Fee:	  	A one-time implementation fee of [***] will be charged. A [***] rush fee will be charged for each location to be implemented within a 72 hour timeframe.
		
	Authorization	  	 
	Recycle Fee:	  	A recycle authorization fee of [***] will be charged for each authorization request which must be re-submitted for approval.
		
	 Monthly
 Minimum
	  	 
	Processing Fee:	  	In the event Customer processes less than [***] in any calendar month, Servicers will charge Customer a monthly minimum processing fee of [***].
		
	Financial	  	 
	Activity Report:	  	Servicers will provide Customer with a financial activity report (“FARS”) file in accordance with Customer’s settlement cycle at a charge of [***] per month.
		
	Cash	  	 
	Management:	  	Servicers will provide Customer with a Cash Management file on a daily basis at a charge of [***] per month.
		
	IC Verify:	  	Customer will be charged a software fee of [***] per diskette and a charge of [***] per magnetic stripe reader.
		
	Non-Qualification	  	 
	Fee:	  	If Customer’s MasterCard & Visa transaction(s) fail to qualify for the interchange levels contemplated in the rates set forth in this Agreement, Customer will be billed for the
difference between the rate set forth and the higher rate, plus an additional fee of [***] for said non-qualified transactions.

  
 The fees set forth in this
Section 3 may be adjusted without notice to reflect increases or decreases in applicable sales or telecommunication taxes as levied by federal, state or local authorities. 
  

	4.	Additional Services: 

  
 It is understood and agreed that Bank shall have no liability whatsoever regarding the processing, authorization or any other service provided by CMS in connection with cards bearing the servicemark of organizations
other than the Visa or MasterCard associations. 
  
 The additional services to be
provided by CMS hereunder shall be in accordance with the terms set forth in the Attachments annexed hereto. 
  

			
	 Attachment I
	  	Interchange Fees and Criteria
	 Attachment II
	  	Other Card Services

  

	5.	Payment Plan 

  

					
	 Payment Method is:
	  	Bankwire  ̈	 	ACH x

  
 All payments to Customer for purchases
by CMS and Bank of valid Debt shall be by Fedwire (bankwire) or through the Automated Clearing House (ACH) and shall normally be electronically transmitted directly to the demand deposit account indicated below, or any successor account designated
to receive provisional finding of Customer’s 

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  
 3 

 
Card sales pursuant to the Bankcard Agreement (“Settlement Account”). Neither Bank nor CMS can guarantee the timeliness with which any payment may
be credited by Customer’s depository institution (“Depository”). 
  
 Customer hereby authorizes Bank and CMS to access information from the Settlement Account and to initiate credit and/or debit entries by Fedwire (bankwire) or ACH transfer and to authorize Depository to block or to initiate, if necessary,
reversing entries and adjustments for any original entries made to the Settlement Account and to authorize Depository to provide such access and to credit and/or debit or to block the same to such account. This authorization is without respect to
the source of any funds in the Settlement Account, is irrevocable and coupled with an interest. This authority extends to any equipment rental or purchase agreements which may exist between CMS and Customer as well as to any fees and assessments and
Chargeback amounts of whatever kind or nature due to CMS and Bank under the Bankcard Agreement. This authority is to remain in full force and effect at all times unless and until CMS and Bank have consented to its termination in such time and in
such manner as to afford CMS and Bank and Depository a reasonable opportunity to act on it. In addition, Customer understands and agrees that CMS shall charge Customer [***] for each ACH which cannot be processed, and all subsequent funding may be suspended until Customer either (i) notifies CMS that ACHs can be processed; or
(ii) a new Electronic Funding Agreement is signed by Customer. In order to insure transactions are properly handled, a copy of a blank, voided check must be attached. Customer’s bank must be able to process or accept electronic
transfers either via ACH and/or Fedwire (bankwire) which transfers are processed utilizing the Federal Reserve System. 
  

									
	 
	 Name of bank
	 	 	 	 Address of bank

	 
	 Demand deposit number (“Settlement Account”)
	 	 	 	 Transit/ABA number

			
	 BUY.COM, INC
 (“CUSTOMER”)
	 	 	 	 CHASE MERCHANT SERVICES, L.L.C.
 (“CMS”)

					
	By:	 	 /s/ Robert R. Price
	 	 	 	By:	 	 
					
	 Title:
	 	 President, CFO
	 	 	 	 Title:
	 	 
					
	 Date:
	 	 1/15/02
	 	 	 	 Date:
	 	 
				
	 	 	 	 	 	 	 CHASE MANHATTAN BANK

	 	 	 	 	 	 	 (“BANK”)

					
	 	 	 	 	 	 	By:	 	 
					
	 	 	 	 	 	 	 Title:
	 	 
					
	 	 	 	 	 	 	 Date:
	 	 

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  
 4 

 OCTOBER 2001 
  
 ASSOCIATION INTERCHANGE 
  
 COMPLIANCE 
  
 The enclosed information is a compilation of documents received from the Visa® and MasterCard® Associations. This summary is presented for the convenience of the reader and should not be used as a substitute for reference to the actual
association releases, rules, and other official documents whenever necessary. This document should not be used for coding its intent is for business purposes only. This document is for internal use only and should not be distributed outside of FDMS.

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	1

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

 VISA INTERCHANGE COMPLIANCE 
  

			
	CPS RETAIL RATE = [***]
		
	QUALIFICATIONS     (PLAN CODE = 023)	  	DOWNGRADE REASONS
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

		
	 •      Valid Electronic Authorization
	  	 •      No authorization ... Standard

		
	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... CPS Retail Key Entry or EIRF

 •      (CPS Retail 2 if Emerging Mtkt)

		
	 •      Pull Track I or II
	  	 •      Partial Track Data ... EIRF

		
	 •      1 day between Transaction date and Authorization date
	  	 •      Exceeds 1 day ... EIRF

		
	 •      Commercial Cd Non-T&E require Sales Tax and/or Customer Code
	  	 •      If no Level II data ... Commercial Card Elec or Stnd

	
	 CPS RETAIL 2 RATE = [***] (Emerging Markets Only)

		
	QUALIFICATIONS     (PLAN CODE = 038)	  	DOWNGRADE REASONS
	 •      3 day Settlement
	  	 •      Otherwise ... Standard

		
	 •      Valid Electronic Authorization
	  	 •      No authorization ... Standard

		
	 •      Valid Code/Tran ID must be present
	  	 •      If missing ... EIRF

		
	 •      1 day between Transaction date and Authorization date
	  	 •      Exceeds 1 day ... EIRF

		
	 •      Must be Emerging Market MCC Code*
	  	 •      Not Emerging MCC ... EIRF

		
	 •      Commercial Cd Non-T&E require Sales Tax and/or Customer Code
	  	 •      If no Level II data .. Commercial Card Elec or Stnd

		
	 *  Eligible MCCs: 9211, 9222, 9399, 8211, 8220, 8299, 4900, 5960, 6300 and 4899
	  	 
		
	 Note: MCC 5960 requires CPS/CNP qualification
	  	 
	
	CPS RETAIL KEY ENTRY = [***] (Retail/T&E MCCs Only)
		
	QUALIFICATIONS     (PLAN CODE = 037)	  	DOWNGRADE REASONS
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

		
	 •      Valid Electronic Authorization
	  	 •      No authorization ... Standard

		
	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

		
	 •      1 day between Transaction date and Authorization date
	  	 •      Exceeds 1 day ... EIRF

		
	 •      AVS indicator with full Zip Match (Y,X,Z,W), Retry Response (R), Unavailable (U,S) or any of the New
International AVS responses (B,C,D,G,I,M,P) (Commercial Cards do not require AVS to qualify)
	  	 •      If missing or invalid response ... EIRF

		
	 •      Card Present indicator 71 as POS Condition Code
	  	 •      If missing ... EIRF

		
	 •      Not MOTO or Electronic Commerce
	  	 •      If MOTO or Electronic Commerce ... EIRF

	[***]	Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	2

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Commercial Cd Non-T&E requires Sales Tax and/or Customer Code
	  	 •      If no Level II data ... Commercial Card Elec or Stnd

  
 (Can qualify for CPS Retail 2 if
Emerging Market MCC: 9211, 9222, 9399, 8211, 8220, 8299, 4900, 5960, 6300 and 4899) 
  
 (MCC 5542 Fuel Dispenser, 5960, 5962-5969 Direct Marketing along with Quasi Cash and CAT transactions do not qualify) 
  

			
		
	CPS RETAIL CHECK CARD RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 217)	  	DOWNGRADE REASONS
	 •      Same as CPS Retail above
	  	 
	 •      Auth & Settlement amount match
	  	 •      If no match ... higher rate of CPS Retail or Check Card

	 •      Merchant name and Location must be in the Auth Request
	  	 •      If not included ... CPS Retail

		
	CPS CARD NOT PRESENT RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 034)	  	DOWNGRADE REASONS
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

	 •      Original Electronic Authorization
	  	 •      No authorization ... Standard

	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

	 •      AVS indicator (AVS Result Code is irrelevant)*
	  	 •      If missing ... EIRF

	 •      7 day Auth to Settlement
	  	 •      More than 7 days ... EIRF

	 •      Auth & Settlement amount match
	  	 •      If no match ... EIRF

	 •      Merchant Order # in Settlement
	  	 •      If missing ... EIRF

	 •      Card Not Present Indicator 08 as POS Condition Code
	  	 •      If missing ... EIRF

	 •      Customer Service Phone # in City Field**
	  	 •      If missing ... EIRF

	 •      Commercial Cd Non-T&E require Sales Tax and Customer Code
	  	 •      If no Level II data ... Commercial Card Elec or Stnd

	
	  
 *       AVS not required for Corporate or Purchasing card also not required for Healthcare and Recurring other than initial billing if time between payments is less than one year.
  
 **     Recurring
Indicator = 2 with MCC 4812, 4814, 4899, 4900, 5960, 5968, 6300, 7298, 7997, 8675, 8699 may also include their URL, e-mail address OR customer service phone # in the City Field.
  
 NOTE: Can qualify for CPS Retail 2 if Emerging Market MCC: 9211, 9222, 9399, 8211, 8220, 8299, 4900, 5960, 6300 and
4899

		
	 CPS ELECTRONIC COMMERCE (BASIC) = [***]
	  	 
		
	QUALIFICATIONS     (PLAN CODE = 077)	  	DOWNGRADE REASONS
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

	 •      Original Electronic Authorization
	  	 •      No authorization ... Standard

	 •      Validation Code/Tran ID must be present
	  	 •      If missing ... EIRF

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	3

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      AVS indicator (AVS Result Code irrelevant)*
	  	 •      If missing ...EIRF

	 •      7 day Auth to Settlement
	  	 •      More than 7 days ... EIRF

	 •      Auth & Settlement amount match
	  	 •      If no match ... EIRF

	 •      E-Commerce Indicator of 5, 6 or 7
	  	 •      If missing ... EIRF

	 •      Merchant Order # in Settlement
	  	 •      If missing ... EIRF

	 •      E-Commerce Indicator 59 as POS Condition Code
	  	 •      If missing ... EIRF

	 •      Customer Svc Phone #, URL or E-Mail Address in City Field
	  	 •      If missing ... EIRF

	 •      Commercial Cd Non-T&E require Sales Tax and Customer Code
	  	 •      If no Level II data ... Commercial Card Elec or Stnd

	 *  AVS not required for Corporate or Purchasing card or Emerging Market MCCs 9211, 9222, 9399, 8211, 8220, 8299,
4900, 5960, 6300 and 4899

	
	CPS ELECTRONIC COMMERCE (PREFERRED) = [***]
		
	QUALIFICATIONS     (PLAN CODE = 078)	  	DOWNGRADE REASONS
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

	 •      Original Electronic Authorization
	  	 •      No authorization ... Standard

	 •      Validation Code/Tran ID must be present
	  	 •      If missing ... EIRF

	 •      AVS Suggested for Non 3D Secured Transactions
	  	 •      If present ... CPS/E-Commerce Basic ... Otherwise ...
EIRF

	 •      7 day Auth to Settlement
	  	 •      More than 7 days ... EIRF

	 •      Auth & Settlement amount match
	  	 •      If no match ... EIRF

	 •      E-Commerce Indicator of “5” (Secured E-Commerce Transaction)
	  	 •      If missing ... EIRF ... if 6 or 7 with AVS ... CPS/E-Commerce Basic ...
Otherwise ... EIRF

	 •      XID (Transaction Identifier) and CAVV (C/H Authentication Verification Value)
	  	 •      If missing but AVS is included ... CPS/E-Commerce Basic ... Otherwise ...
EIRF

	 •      Merchant Order # in Settlement
	  	 •      If missing ... EIRF

	 •      E-Commerce Indicator 59 as POS Condition Code
	  	 •      If missing ... EIRF

	 •      Customer Svc Phone #, URL or E-Mail Address in City Field
	  	 •      If missing ... EIRF

	 •      Commercial Cd Non-T&E require Sales Tax and Customer Code
	  	If no Level II data ... Commercial Card Elec or Stnd
	
	 CPS ACCOUNT FUNDING = [***]

		
	QUALIFICATIONS     (PLAN CODE = 079)	  	DOWNGRADE REASONS
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

	 •      Original Electronic Authorization
	  	 •      No authorization ... Standard

	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

	 •      AVS indicator (Zip and Full Address match required)*
	  	 •      If missing ... EIRF

	 •      CVV2 required (M, P, U response required)
	  	 •      If missing ... EIRF

	 •      1 day Auth to Settlement
	  	 •      More than 1 day ... EIRF

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	4

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Auth & Settlement amount match
	  	 •      If no match ... EIRF

		
	 •      E-Commerce Indicator of 5, 6 or 7
	  	 •      If missing ... EIRF

		
	 •      Customer Svc Phone #, URL or E-Mail Address in City Field
	  	 •      If missing ... EIRF

		
	 •      Commercial Cd Non-T&E require Customer Code only (Not Sales Tax)
	  	 •      If no Customer Code ... Commercial Card Elec or Stnd

	
	 *  AVS not required for Corporate or Purchasing card, however if performed response code must be of Zip and Full
Address Match

		
	CPS SUPERMARKET RATE = [***]	  	 
		
	QUALIFICATIONS    (PLAN CODE = 021)	  	DOWNGRADE REASONS
		
	 •      Same as CPS Retail above
	  	 
		
	 •      MCC code must be 5411
	  	 •      If not MCC 5411 ... EIRF

	
	CPS SUPERMARKET CHECK CARD RATE = [***]
		
	QUALIFICATIONS     (PLAN CODE = 026)	  	DOWNGRADE REASONS
		
	 •      Same as CPS Supermarket
	  	 
		
	 •      Auth & Settlement amount match
	  	 •      If no match ... higher rate of CPS Supermarket or Check Card

		
	 •      MCC code must be 5411
	  	 •      Incorrect MCC Code ... EIRF

		
	 •      Commercial Cd Non-T&E require Sales Tax and Customer Code
	  	 •      If no Level II data ... Commercial Card Elec or Stnd

		
	EXPRESS PAYMENT SERVICE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 022)	  	DOWNGRADE REASONS
		
	 •      3 day Settlement
	  	 •      Not within 3 days ... Standard

		
	 •      Valid Authorization (trans over amount limit)
	  	 •      No authorization ... Standard

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... CPS Retail Key Entry or EIRF

		
	 •      Full Track I or II
	  	 •      Partial Track Data ... EIRF

		
	 •      1 day between Transaction date and Authorization date
	  	 •      Exceeds 1 day ... EIRF

		
	 •      Transaction Amount Limit $25.00 for Fast Food and Movie Theaters Transaction Amount Limit $75.00 for
Parking Lots
	  	 •      Exceeds Amount ... EIRF or Standard

		
	 •      Must be Fast Food MCC 5812 & 5814, Movie Theater MCC 7832 or Parking Lot MCC
7523
	  	 •      Incorrect MCC code ... EIRF

		
	CPS HOTEL CARD PRESENT RATE = [***]	  	 
		
	QUALIFICATIONS    (PLAN CODE = 030)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

		
	 •      Original Electronic Authorization
	  	 •      No authorization ... Standard

		
	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	5

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Card Present (Swiped)
	  	 •      If key-entered ... CPS Hotel CNP or EIRF

		
	 •      Full Track I or II
	  	 •      Partial Track Data ... EIRF

		
	 •      15% Transaction tolerance (Tolerance relates Auth related Chargeback Protection)
	  	 •      If exceeds tolerance ... EIRF

		
	 •      Folio # & Check-in date
	  	 •      Missing or different ... EIRF

		
	CPS HOTEL CARD NOT PRESENT RATE = [***]	  	 
		
	QUALIFICATIONS    (PLAN CODE = 029)	  	 DOWNGRADE REASONS

		
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

		
	 •      Original Electronic Authorization
	  	 •      No authorization ... Standard

		
	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

		
	 •      15% Transaction tolerance (Tolerance refers to Auth related C/B Protection))
	  	 •      If exceeds tolerance ... EIRF

		
	 •      Preferred Customer indicator
	  	 •      If missing ... EIRF

		
	 •      Folio # & Check-in date
	  	 •      Missing or different ... EIRF

	
	CPS AUTO RENTAL CARD PRESENT RATE = [***]
		
	QUALIFICATIONS    (PLAN CODE = 032)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

		
	 •      Original Electronic Authorization
	  	 •      No authorization ... Standard

		
	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... CPS Auto CNP or EIRF

		
	 •      Full Track I or II
	  	 •      Partial Track Data ... EIRF

		
	 •      15% Transaction tolerance (Tolerance relates Auth related Chargeback Protection)
	  	 •      If exceeds tolerance ... EIRF

		
	 •      Rtl Agreement # & Check-out date
	  	 •      Missing or different ... EIRF

	
	CPS AUTO RENTAL CARD NOT PRESENT RATE = [***]
		
	QUALIFICATIONS    (PLAN CODE = 031)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

		
	 •      Original Electronic Authorization
	  	 •      No authorization ... Standard

		
	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

		
	 •      Preferred Customer indicator
	  	 •      If missing ... EIRF

		
	 •      15% Transaction tolerance (Tolerance relates Auth related Chargeback Protection)
	  	 •      If exceeds tolerance ... EIRF

		
	 •      Rtl Agreement # & Check-out date
	  	 •      Missing or different ... EIRF

	
	CPS AUTOMATED FUEL DISPENSER RATE = [***]
		
	QUALIFICATIONS    (PLAN CODE = 035)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Within 3 days ... EIRF ... Otherwise ... Standard

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	6

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Original Electronic Authorization ($1.00 Status Check)
	  	 •      No authorization... Standard

		
	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... EIRF

		
	 •      Full Track I or II
	  	 •      Partial Track Data ... EIRF

		
	 •      1 day between Transaction date and Authorization date
	  	 •      Exceeds 1 day ... EIRF

		
	 •      $75 Transaction Maximum
	  	 •      If amount exceeds $75 ... EIRF

		
	 •      MCC code must be 5542
	  	 •      Incorrect MCC code ... EIRF

		
	 •      Must contain CAT Level indicator of “3” for Fuel Dispenser
	  	 •      Missing or invalid indicator ... EIRF

		
	CPS PASSENGER TRANSPORT RATE = [***]	  	 
		
	QUALIFICATIONS    (PLAN CODE = 027)	  	DOWNGRADE REASONS
		
	 •      8 day Settlement
	  	 •      Within 9 days ... Standard

		
	 •      Valid Electronic Authorization
	  	 •      No authorization ... Standard

		
	 •      Validation Code/ Tran ID must be present
	  	 •      If missing ... EIRF

		
	 •      1 day between Transaction date and Authorization date
	  	 •      Exceeds 1 day ... Standard

		
	 •      Ticket #, Sequence # and Count
	  	 •      Missing or different ... Standard

		
	 •      Itinerary Information
	  	 •      Missing or different ... Standard

	
	ELECTRONIC INTERCHANGE REIMBURSEMENT FEE (EIRF) = [***]
		
	QUALIFICATIONS    (PLAN CODE = 080)	  	DOWNGRADE REASONS
		
	 •      3 day Settlement
	  	 •      Not within 3 days ... Standard

		
	 •      Original Authorization
	  	 •      Missing or different ... Standard

		
	SIGNATURE CARD ELECTRONIC RATE = [***]	  	 
		
	 SIGNATURE CARD STANDARD = [***]
  
  
 QUALIFICATIONS
	  	DOWNGRADE REASONS
		
	 (PLAN CODE = 114 (Electronic))
	  	 
		
	 (PLAN CODE = 110 (Standard))
	  	 
		
	 •      T&E MCC Code Merchant
	  	 •      If not refer to appropriate CPS Interchange Rate section

		
	 •      CPS Qualification
	  	 •      If not CPS Qualified ... Signature Card Standard

		
	 •      Must be a Signature Card
	  	 •      If not refer to appropriate CPS Interchange Rate section

		
	GSA PURCHASE CARD LARGE TICKET = [***]	  	 
		
	QUALIFICATIONS    (PLAN CODE = 120)	  	DOWNGRADE REASONS
		
	 •      GSA Purchasing Card BIN 471600-471699 or 448600-448699
	  	 •      If not GSA BIN Range ... refer to appropriate CPS Section

		
	 •      Non Travel Service Merchant
	  	 •      If not Non-T&E MCC ... refer to appropriate CPS Section

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	7

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Transaction Amount Greater than $5,000
	  	 •      If not greater than $5,000 refer to appropriate CPS Section

		
	 •      Purchasing Card Level II/III
	  	 •      If no Level II/III ... Commercial Card Elec or Stnd

		
	 •      CPS Qualification Required
	  	 •      If not CPS Qualified ... EIRF

	
	U.S. PURCHASING CARD COMMERCIAL EMERGING MARKET LARGE-TICKET FEE PROGRAM = [***] (Pilot Program Only)
		
	QUALIFICATIONS    (PLAN CODE = 118)	  	DOWNGRADE REASONS
		
	 •      CPS Qualification required w/8 Day Settlement
	  	 •      If not CPS w/8 Day Settlement ... EIRF

		
	 •      Purchasing Card Level II/III
	  	 •      If no Level II/III data ... Commercial Card Elec or Stnd

		
	 •      Must be Business to Business MCC
	  	 •      If not Non-T&E MCC ... Commercial Card Elec or Stnd

		
	 •      Not be GSA Purchasing Card BIN 471600-471699 or 448600-448699
	  	 •      If GSA BIN Range ... refer to GSA Purchase Card Large Ticket Section

	
	T&E COMMERCIAL CARD ELECTRONIC RATE = [***]
		
	T&E COMMERCIAL CARD STANDARD = [***]	  	 
		
	QUALIFICATIONS 	  	DOWNGRADE REASONS
		
	 (PLAN CODE = 082 (Electronic))
	  	 
		
	 (PLAN CODE = 083 (Standard))
	  	 
		
	 •      T&E MCC
	  	 •      If not, refer to Non-T&E Commercial Card

		
	 •      CPS Qualification
	  	 •      If not CPS Qualified ... Commercial Card Standard

	
	NON-T&E COMMERCIAL CARD = ELECTRONIC = [***]
		
	STANDARD = [***]	  	 
		
	QUALIFICATIONS	  	DOWNGRADE REASON
		
	 (PLAN CODE = 113 (Electronic))
	  	 
		
	 (PLAN CODE = 109 (Standard))
	  	 
		
	 •      Non-T&E MCC Code Merchant
	  	 •      If not, refer to T&E Commercial Card Qualifications

		
	 •      CPS Qualification
	  	 •      If not CPS Qualified ... Commercial Card Standard

		
	 •      Must be a Commercial Card without Additional Data (Sales Tax and/or Sales Tax and Customer
Code)
	  	 •      If not Commercial Cd or has Additional Data refer to CPS interchange structure

		
	VISA STANDARD RATE = [***]	  	 
		
	QUALIFICATIONS    (PLAN CODE = 017)	  	DOWNGRADE REASON
		
	 •      30 day Settlement
	  	 •      No downgrade from Standard

		
	 •      Must be a Consumer Card
	  	 

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	8

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	INTERNATIONAL COMMERCIAL CARD
		
	Electronic (US Location)	  	 •      See Custom Payment Service (CPS) Qualifications Domestic Interchange Applies

		
	Standard (US Location)	  	 •      See Custom Payment Service (CPS) Qualifications Domestic Interchange Applies

		
	Electronic (Non US Location) Rate = [***]	  	 
		
	Standard (Non US Location) Rate = [***]	  	 
		
	QUALIFICATIONS	  	DOWNGRADE REASONS
		
	 •      5 day Settlement
	  	 •      After 5 days ... International Standard

		
	 •      Original Authorization
	  	 •      Missing or different ... International Standard

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... International Standard

		
	INTERNATIONAL CONSUMER CARD	  	 
		
	Electronic (US Location)	  	 •      See Custom Payment Service (CPS) Qualifications Domestic Interchange Applies

		
	Standard (US Location)	  	 •      See Custom Payment Service (CPS) Qualifications Domestic Interchange Applies

		
	Corporate/Purchasing (Non US Location) Rate = [***]	  	 
		
	QUALIFICATIONS	  	DOWNGRADE REASON
		
	 •      5 day Settlement
	  	 •      No Downgrade from Corporate/Purchasing this is considered Corporate/Purchasing
Standard

		
	 •      Original Authorization
	  	 
		
	 •      Card Present (Swiped)
	  	 
	
	INTER-REGIONAL ISSUER CHIP (Non US Location) = [***]
	
	INTRA-REGIONAL ISSUER CHIP (LAC Region) = [***]
		
	QUALIFICATIONS     (PLAN CODE = N/A)	  	DOWNGRADE REASONS
		
	 •      5 day Settlement
	  	 •      After 5 days ... International Standard

		
	 •      Original Authorization
	  	 •      Missing or different ... International Standard

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... International Standard

		
	 •      Must be a card from a qualified chip card issuer program
	  	 •      If not chip issuer’s card ... International Electronic

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	9

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

 MASTERCARD INTERCHANGE COMPLIANCE 
  

			
	MERIT III RATE = [***]
	QUALIFICATIONS     (PLAN CODE = 009)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Merit I ... otherwise ... Standard

		
	 •      Valid Authorization
	  	 •      No authorization ... Standard

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... Key Entry

		
	 •      Full Track I or II
	  	 •      Partial Track Data ... Merit I

		
	 •      10% Transaction tolerance (25% for Restaurant, Bars, Barbers and Beauty Salons)
	  	 •      If exceeds tolerance ... Standard

		
	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Standard

		
	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... Standard

	
	 **     Hotels, Car Rental Agencies and Cruise Lines are exempt from a transaction amount
tolerance

		
	MERIT I RATE = [***]	  	 
	QUALIFICATIONS     (PLAN CODE = 011)	  	DOWNGRADE REASONS
		
	 •      3 day Settlement
	  	 •      Exceeds 3 days ... Standard Airlines 9 days ... Standard

		
	 •      Valid Authorization
	  	 •      No authorization ... Standard

		
	 •      10% Transaction tolerance (25% for Restaurant, Bars, Barbers and Beauty Salons)
	  	 •      If exceeds tolerance ... Standard

		
	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Standard

		
	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... Standard

	
	 **     Hotels, Car Rental Agencies (identified by MCC), Cruise Lines and Non-Face-to-Face transactions
are exempt from a transaction amount tolerance and timeliness edits. Automated Fuel Dispensers, Airlines and MOTO (all identified by MCC) are also exempt from a transaction amount edit.

		
	MASTERCARD KEY ENTERED RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 081)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Merit I ... otherwise ... Standard

		
	 •      Valid Authorization
	  	 •      No authorization ... Standard

		
	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Standard

		
	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... Standard

		
	 •      MCC code must be other than Direct Marketing, Tax Preparation, Quasi Cash, Automated Fuel
Dispensing, Travel Agent, T&E Airline, Hotel, Car Rental or Services MCCs
	  	 •      If incorrect MCC code ... Merit I

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	10

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

 MASTERCARD SERVICE INDUSTRY (SIIP) INCENTIVE = [***] 
  

			
	 
	QUALIFICATIONS     (PLAN CODE = 066)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Merit I ... otherwise ... Standard

		
	 •      Valid Authorization
	  	 •      No authorization ... Standard

		
	 •      10% Transaction tolerance
	  	 •      If exceeds tolerance ... Standard

		
	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Standard

		
	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... Standard

		
	 •      Must be MCC of Utility, Insurance, Cable, or Telecommunications
	  	 •      Not proper MCC ... Merit I

		
	 •      Recurring Payment indicator in Auth and Settlement
	  	 •      No Recurring Payment Indicator ... Merit I

		
	 •      Recurring Merchant Identifier in Merchant Description field (3 digits (RXX) assigned by MasterCard
at registration)
	  	 •      No Recurring Merchant Identifier ... Merit I

		
	 •      Must be Consumer Card
	  	 •      If not Consumer refer to Corporate Interchange

	
	MASTERCARD TRAVEL INDUSTRIES PREMIER SERVICE = [***]
		
	QUALIFICATIONS	  	DOWNGRADE REASONS
		
	                            (PLAN CODE = 050
(Lodging))	  	 
		
	                            (PLAN CODE = 051
(Car Rental))	  	 
		
	                            (PLAN CODE = 052
(Cruise Lines))	  	 
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Merit I ... otherwise ... Standard

		
	 •      Valid Authorization
	  	 •      No authorization ... Standard

		
	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Standard

		
	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... Standard

		
	 •      Non Generic T&E MCC Code* (With the exception of Cruise Lines MCC 4411)
	  	 •      Non-registered or Generic MCC Code ... Merit I

		
	 •      Authorization request must contain “P” indicating authorization requested as
premier
	  	 •      If Premier indicator not present ... Merit I

		
	 *       MCC must be registered for TIPS
	  	 
		
	PASSENGER TRANSPORT RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 013)	  	DOWNGRADE REASONS
		
	 •      9 day Settlement
	  	 •      Exceeds 9 days ... Standard

		
	 •      Valid Authorization
	  	 •      No authorization ... Standard

		
	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Standard

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	11

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Auth & Settlement MCC must match except for these
combinations:
 Misc. Airlines MCC 4511 & Specific Airline
 MCC 3000-3350
 Travel Agent MCC 4722
& Misc. Airline MCC 4511
 Travel Agent MCC 4722 & Specific Airline
 MCC 3000-3350
 Travel Agent MCC 4722
& Passenger Railway MCC 4112
	  	 •      No MCC match... Standard

	
	 **     No Timeliness, Magnet Stripe or Amount Edits apply to this interchange
level

	
	MASTERCARD SUPERMARKET RATE = [***]
		
	QUALIFICATIONS     (PLAN CODE = 017)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Merit I ... otherwise ... Standard

		
	 •      Valid Authorization
	  	 •      No authorization ... Standard

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... Key Entered

		
	 •      Full Track I or II
	  	 •      Partial Track Data ... Merit I

		
	 •      10% Transaction tolerance
	  	 •      If exceeds tolerance ... Standard

		
	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Standard

		
	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... Standard

		
	 •      Must transmit MCC 5411
	  	 •      Incorrect MCC ... Merit III

		
	 •      Supermarket indicator
	  	 •      Missing indicator ... Merit III

		
	MASTERCARD WAREHOUSE RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 118)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Merit I ... otherwise ... Standard

		
	 •      Valid Authorization
	  	 •      No authorization ... Standard

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... Key Entered

		
	 •      Full Track I or II
	  	 •      Partial Track Data ... Merit I

		
	 •      10% Transaction tolerance
	  	 •      If exceeds tolerance ... Standard

		
	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Standard

		
	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... Standard

		
	 •      Must transmit MCC 5300
	  	 •      Incorrect MCC ... Merit I

		
	 •      Warehouse indicator
	  	 •      Missing indicator ... Merit III

	
	MASTERCARD QUICK PAYMENT SERVICE = [***]
		
	QUALIFICATIONS     (PLAN CODE = 011)	  	DOWNGRADE REASONS
		
	 •      3 day Settlement
	  	 •      Exceeds 3 days ... Standard

		
	 •      Card Present (Swiped)
	  	 •      If key-entered ... Merit I

		
	 •      Valid Authorization (trans over amount limit)
	  	 •      No authorization ... Standard

		
	 •      10% Transaction tolerance (trans over amount limit)
	  	 •      If exceeds tolerance ... Standard

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	12

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Banknet Reference# in Settlement (trans over amount limit)
	  	 •      Missing Ref# ... Standard

	 •      Banknet Authorization Date (trans over amount limit)
	  	 •      Missing Auth Date ... Standard

	 •      Auth & Settlement MCC must match (for trans over amount limit)
	  	 •      No MCC match ... Standard

	 •      Must transmit Fast Food MCC 5812 or 5814, Movie Theater MCC 7832 or Parking Lot MCC
7523
	  	 •      Incorrect MCC ... Merit I

	 •      Transaction Amount Limit of Fast Food Restaurants $25.00, Movie Theaters $35.00 and Parking Lots
$50.00
	  	 •      Exceeds Tran Amount ... Merit I

	 •      QPS Indicator
	  	 •      Missing indicator ... Merit I

		
	CONVENIENCE PURCHASES RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 028)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Merit I ... otherwise ... Standard

	 •      Card Present (Swiped) (Not required for Transponder trans)
	  	 •      If key-entered or missing transponder ... Key Entered

	 •      Valid Authorization
	  	 •      No authorization ... Standard

	 •      Full Track I or II
	  	 •      Partial Track Data ... Merit I

	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Standard

	 •      Banknet Authorization Date
	  	 •      Missing Auth date ... Standard

	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... Standard

	 •      10% Transaction tolerance on transactions greater than $10 from MCCs 5499 or 7832
	  	 •      If exceeds tolerance ... Standard

	 •      25% Transaction tolerance on transactions greater than $25 from MCC 5814
	  	 •      If exceeds tolerance ... Standard

	
	 **     MCC 5541 and 5542 are exempt from a transaction amount
tolerance
  
 **     MCC 5499 or 7832 are exempt from a transaction amount tolerance if trans is less than or equal to $10.00
  
 **     MCC 5814 is exempt from a transaction amount tolerance if trans is less than or equal to
$25.00

		
	MASTERCARD STANDARD RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 003)	  	DOWNGRADE REASONS
		
	 •      30 day Settlement
	  	 •      No downgrade from Standard

	 •      Must be a Consumer Card
	  	 
	
	INTERNATIONAL ELECTRONIC INTERCHANGE = (IEI) [***]
	STANDARD (ISI) = [***]
	(US Location)	  	 
	 (PLAN CODE = 005 (IEI))
	  	 
	 (PLAN CODE = 006 (ISI))
	  	 

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	13

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 INTERNATIONAL ELECTRONIC INTERCHANGE = (IEI) = [***]

	 STANDARD (ISI) = [***]

	 (Non US Location)
	  	 
	 (PLAN CODE = 035 (IEI))
	  	 
	 (PLAN CODE = 036 (ISI))
	  	 
		
	QUALIFICATIONS	  	DOWNGRADE REASONS
		
	 •      5 day Settlement
	  	 •      Exceeds 5 days ... ISI

	 •      Valid Authorization
	  	 •      No authorization ... ISI

	 •      Card Present (Swiped)
	  	 •      If key-entered ... ISI

	 •      Full Track I or II
	  	 •      Partial Track Data ... ISI

	 •      10% Transaction tolerance (25% for Restaurant, Bars, Barbers and Beauty Salons)
	  	 •      If exceeds tolerance ... ISI

	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... ISI

	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... ISI

	 •      Auth & Settlement MCC must match
	  	 •      No MCC match ... ISI

	
	 **     Hotels, Car Rental Agencies and Cruise Lines are exempt from a transaction amount tolerance and
timeliness edits

	
	MASTERCARD CANADIAN INTRA-COUNTRY = [***]
	Minimum $.05 CAN per transaction	  	 
		
	QUALIFICATIONS     (PLAN CODE = 022)	  	DOWNGRADE REASONS
		
	 •      Must be a Canadian Merchant and Canadian Issued Card
	  	 •      No downgrade no other interchange rate

	
	 MASTERCARD CORPORATE PRODUCTS
 Level II Data = Tax amount, Tax indicator, Customer Code (P Cards only), Tax ID and merchant type code

	Level III = Level II plus line item detail	  	 
		
	FACE TO FACE RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 120)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Data Rate II 
 •      Otherwise ... Corporate Standard

	 •      Valid Authorization
	  	 •      No authorization ... Corporate Standard

	 •      Card Present (Swiped)
	  	 •      If key-entered ... Data Rate II

	 •      Full Track I or II
	  	 •      Partial Track Data ... Data Rate II

	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Corporate Standard

	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Corporate Standard

	 •      Must be a Corporate Card product
	  	 •      Not Corporate Card ... Merit III

	 •      10% Transaction tolerance (25% for Barbers and Beauty Salons)
	  	 •      If exceeds tolerance ... Corporate Standard

	 •      Auth and Settlement MCC must match
	  	 •      No MCC match ... Corporate Standard

	 •      Full Merchant Description Addendum Record (w/valid street address)
(Not required for Fleet
Cards at fuel locations)
	  	 •      Addendum missing .... Corporate Standard

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	14

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Level II Purchasing Card Data
(All Commercial Cards except, Fleet Cards at fuel
locations)
	  	 •      If missing Level II Data ... Data Rate I

		
	DATA RATE I RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 121) (Purchase Cd)	  	DOWNGRADE REASONS
		
	 •      3 day Settlement
	  	 •      Exceeds 3 days ... Corporate Standard

	 •      Valid Authorization
	  	 •      No authorization ... Corporate Standard

	 •      Banknet Referenced# in Settlement
	  	 •      Missing Ref# ... Corporate Standard

	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Corporate Standard

	 •      Must be a Corp/Purch Card product
	  	 •      Not Corp/Purch Card ... Merit I

	 •      Auth and Settlement MCC must match
	  	 •      No MCC match ... Corporate Standard

	 •      Full Merchant Description Addendum Record (w/valid street address)
(Not required for Fleet
Cards at fuel locations)
	  	 •      Addendum missing ... Corporate Standard

	 •      Postal Code and State Code
	  	 •      If missing ... Corporate Standard

		
	DATA RATE II = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 122)	  	DOWNGRADE REASONS
		
	 •      3 day Settlement
	  	 •      Exceeds 3 days ... Corporate Standard

	 •      Valid Authorization
	  	 •      No authorization ... Corporate Standard

	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Corporate Standard

	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Corporate Standard

	 •      Must be a Corp/Purch Card product
	  	 •      Not Corp/Purch Card ... Merit I

	 •      Auth and Settlement MCC must match
	  	 •      No MCC match ... Corporate Standard

	 •      Full Merchant Description Addendum Record
(w/valid street address)
(Not required for Fleet
Cards at fuel locations)
	  	 •      Addendum missing ... Corporate Standard

	 •      Level II Purchasing Card Data (All Commercial Cards except, fleet cards at fuel
locations)
	  	 •      If missing Level II Data ... Data Rate I

		
	DATA RATE III RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 123)	  	DOWNGRADE REASONS
	(Purchasing Card only)	  	 
		
	 •      3 day Settlement
	  	 •      Exceeds 3 days ... Corporate Standard

	 •      Valid Authorization
	  	 •      No authorization ... Corporate Standard

	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Corporate Standard

	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Corporate Standard

	 •      Auth and Settlement MCC must match
	  	 •      No MCC match ... Corporate Standard

	 •      Full Merchant Description Addendum Record (w/valid street address)
	  	 •      Addendum missing ... Corporate Standard

	 •      Level II & Level III Purchasing Card Data
	  	 •      If missing Level III Data ... Data Rate II
  
 •      If
missing Level II Data ... Corp Data Rate I

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	15

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	LARGE TICKET RATE = [***]	  	 
		
	QUALIFICATIONS     (PLAN CODE = 134)	  	DOWNGRADE REASONS
		
	 •      2 day Settlement
	  	 •      Exceeds 2 days ... Data Rate II
Otherwise ... Corporate
Standard

	 •      Transaction Amount must be $3,000 or greater
	  	 •      Under $3,000 . . . Data Rate II

	 •      Valid Authorization
	  	 •      No authorization ... Corporate Standard

	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Corporate Standard

	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Corporate Standard

	 •      Must be a Corporate/Purch Card product
	  	 •      Not Corp/Purch Card ... Merit I

	 •      Auth and Settlement MCC must match
	  	 •      No MCC match ... Corporate Standard

	 •      25% Transaction tolerance (excludes MCC 5542)
	  	 •      If exceeds tolerance ... Corporate Standard

	 •      Full Merchant Description Addendum Record (w/valid street address)
(Not required for Fleet
Cards at fuel locations)
	  	 •      Addendum missing ... Corporate Standard

	 •      Level II Purchasing Card Data
(All Commercial Cards except, Fleet Cards at fuel
locations)
	  	 •      If missing Level II Data ... Data Rate I

		
	CORPORATE T&E RATE I = [***]	  	 
		
	QUALIFICATIONS
            (PLAN CODE = 125) (Purchasing Cd)	  	DOWNGRADE REASONS
		
	 •      9 days Settlement Airlines all other MCCs 3 days
	  	 •      Exceeds 9 or 3 days ... Corporate Standard

	 •      Valid Authorization
	  	 •      No authorization ... Corporate Standard

	 •      Banknet Reference# in Settlement
	  	 •      Missing Ref# ... Corporate Standard

	 •      Banknet Authorization Date
	  	 •      Missing Auth Date ... Corporate Standard

	 •      Must be a Corporate Card product
	  	 •      Not Corporate Card ... Merit I or Travel Premier

	 •      Auth and Settlement MCC must match
	  	 •      No MCC match ... Corporate Standard

	 •      25% Transaction tolerance on Restaurants & Bars MCCs only
	  	 •      If exceeds tolerance ... Corporate Standard

	 •      Merchant Description Addendum Required (w/valid street address)
	  	 •      Addendum missing ... Corporate Standard

	 *  Hotels, Car Rental Agencies, Cruise Lines and Passenger Transport are exempt from a amount tolerance and
timeliness edits

		
	CORPORATE T&E RATE II = [***]	  	 
		
	QUALIFICATIONS
            (PLAN CODE = 130) (Purchasing Cd)	  	DOWNGRADE REASONS
		
	 •      9 day Settlement Airlines all other MCCs 3 days
	  	 •      Exceeds 9 or 3 days ... Corporate Standard

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	16

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Valid Authorization
	 	 •      No authorization ... Corporate Standard

		
	 •      Banknet Reference# in Settlement
	 	 •      Missing Ref# ... Corporate Standard

		
	 •      Banknet Authorization Date
	 	 •      Missing Auth Date ... Corporate Standard

		
	 •      Must be a Corporate Card product
	 	 •      Not Corporate Card ... Merit I or Travel Premier

		
	 •      Auth and Settlement MCC must match
(5812 Restaurant not eligible)
	 	 •      No MCC match ... Corporate Standard

		
	 •      Industry Specific Addendum Required
	 	 •      Addendum missing ... Corporate T&E I

		
	 •      Merchant Description Addendum Required
(w/valid street address)
	 	 •      Addendum missing ... Corporate Standard

		
	WORLD MASTERCARD T&E = [***]	 	 
		
	 QUALIFICATIONS
 (PLAN CODE = 060
Lodging)
 (PLAN CODE = 061 Car Rental)
 (PLAN CODE
= 062 Passenger Tran)
 (PLAN CODE = 063 Restaurants, Cruise or Trvl Agnt))
	 	DOWNGRADE REASONS
	 •      3 day Settlement
	 	 •      Exceeds 3 days ... Standard

		
	 •      Valid Authorization
	 	 •      No authorization ... Standard

		
	 •      Banknet Reference# in Settlement
	 	 •      Missing Ref# ... Standard

		
	 •      Banknet Authorization Date
	 	 •      Missing Auth Date ... Standard

		
	 •      Auth and Settlement MCC must match
	 	 •      No MCC match ... Corporate Standard

		
	 •      Must be T&E MCC code
	 	 •      If not T&E MCC ... Merit I or Key Entered

	
	 *  Hotels, Car Rental Agencies and Cruise Lines are exempt from timeliness edits.

		
	CORPORATE STANDARD = [***]	 	 
		
	QUALIFICATIONS    (PLAN CODE = 117)	 	DOWNGRADE REASONS
	 •      30 day Settlement
	 	 •      No downgrade from Standard

		
	 •      Valid Authorization
	 	 
		
	 •      Banknet Reference# in Settlement
	 	 
		
	 •      Banknet Authorization Date
	 	 
		
	 •      Must be a Corp/Purch Card product
	 	 •      Qualifies for Consumer Standard

	
	INTERNATIONAL CORPORATE INTERCHANGE
		
	PURCHASING LARGE TICKET = [***]	 	 
		
	QUALIFICATIONS    (PLAN CODE = 154)	 	DOWNGRADE REASONS
	 •      30 day Settlement
	 	 •      Exceeds 30 days ... Purchasing

		
	 •      Transaction Amount must be $3,000 or greater
	 	 •      If less than $3,000 ... Purchasing Data Rate II (if Level II Data present)
Otherwise
Purchasing (if no data)

		
	 •      Valid Authorization
	 	 •      No authorization ... Purchasing

		
	 •      Banknet Reference# in Settlement
	 	 •      Missing Ref# ... Purchasing

		
	 •      Banknet Authorization Date
	 	 •      No auth date ... Purchasing

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	17

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

			
	 •      Must be a Purchasing/Fleet Card product
(T&E MCC Codes do not qualify)
	 	 •      Not Purchasing/Fleet Card ... Corporate

		
	PURCHASING DATA RATE II = [***]	 	 
		
	QUALIFICATIONS    (PLAN CODE = 152)	 	DOWNGRADE REASONS
	 •      5 day Settlement
	 	 •      Exceeds 5 days ... Purchasing

	 •      Valid Authorization
	 	 •      No authorization ... Purchasing

	 •      Banknet Reference# in Settlement
	 	 •      Missing Ref# ... Purchasing

	 •      Banknet Authorization Date
	 	 •      No auth date ... Purchasing

	 •      Must be a Purchasing/Fleet Card product
	 	 •      Not Purchasing/Fleet Card ... Corporate

	 •      Level II Purchasing Card Data
(Fleet Cards at Fuel MCC codes 5541, 5542, 7511 do not
qualify)
	 	 •      No Level II Purchasing Card Data ... Purchasing

	
	PURCHASING (US Location w/US Acquirer Global Support Fee [***]) = [***]
		
	PURCHASING (Non US Location) = [***]	 	 
		
	QUALIFICATIONS    (PLAN CODE = 156)	 	DOWNGRADE REASONS
	 •      30 day Settlement
	 	 •      No Downgrade from Purchasing this is considered Purchasing Card
ISI

	 •      Valid Authorization
	 	 
	 •      Banknet Reference# in Settlement
	 	 
	 •      Banknet Authorization Date
	 	 
	 •      Must be a Purchasing/Fleet Card product
	 	 •      Not Purchasing/Fleet Card ... Corporate

	
	CORPORATE (US Location w/US Acquirer Global Support Fee [***]) = [***]
		
	CORPORATE (Non US Location) = [***]	 	 
		
	QUALIFICATIONS    (PLAN CODE = 176)	 	DOWNGRADE REASONS
	 •      30 day Settlement
	 	 •      No Downgrade from Corporate this is considered Corporate/Business Card
ISI

	 •      Valid Authorization
	 	 
	 •      Banknet Reference# in Settlement
	 	 
	 •      Banknet Authorization Date
	 	 
	 •      Must be a Corporate/Business Card product
	 	 

  

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

			
	October 2001 Association Interchange Compliance – September 17, 2001	  	18

 FDMS Association Compliance 
 NOTE: This document is intended for business purposes only and should not be used for coding of any kind. 

 Attachment II to Schedule A 
  
 Other Card Services 
  
 This Attachment II to Schedule A supplements the Merchant Bankcard Agreement (the “Agreement”) to which it is attached and sets forth the terms applicable to
CMS’ provision of the specified services for the Card transactions issued by the entities set forth below: 
  
 (Select as applicable) 
  

								
	 American Express
	  	x	 	    	JCB	  	 
	 Diners Club
	  	x	 	    	Discover (“Novus”)	  	x

  
 The Card issuing entities selected
above are collectively referred to as (“Issuer”) unless otherwise specified in this Attachment II. 
  
 The following sets forth the annual volume for each Issuer Card: 
  

					
	American Express: [***]	  	JCB:	 	______________
	Diners Club: [***]	  	Novas:	 	[***]

  
 1. FEES: 
  

					
	 	  	 Authorization
 (Per
transaction)

	  	 Auth./Processing
 (Per
transaction)

	 American Express:
	  	 $___ or ___% of face amount of tran.
	  	 [***] or ___% of face amount of tran.

	 Diners Club:
	  	 $___ or ___% of face amount of tran.
	  	 [***] or ___% of face amount of tran.

	 JCB:
	  	 $___ or ___% of face amount of tran.
	  	 [***] or ___% of face amount of tran.

	 Novas:
	  	 $___ or ___% of face amount of tran.
	  	 [***] or ___% of face amount of tran.

			
	 	  	 Settlement Services (Per transaction)
	  	 
	 Diners:
	  	 ____% of face amount tran.
	  	 
	 JCB:
	  	 ____% of face amount tran.
	  	 

  
 2. GENERAL: Customer understands and
acknowledges that CMS’ sole responsibility with respect to ISSUER Card transactions shall be to provide the services specified in this Attachment. 
  
 In the event Customer has a separate Issuer Agreement with a respective Issuer, all Chargeback and financial obligations including but not limited to fees and issues
related thereto shall be governed by the terms of such Issuer Agreement. Notwithstanding the foregoing, in the event CMS is providing settlement services for Diners Club and/or JCB transactions, CMS shall be responsible for providing such services
pursuant to the terms of the Agreement. Customer shall comply with all terms and conditions of the Issuer Agreement and the applicable rules, regulations, interpretations and other requirements of the respective Issuer and shall not seek
authorization for or submit for processing or settlement hereunder any Issuer Card transactions at anytime when Customer does not have in effect a valid Issuer Agreement with such Issuer. Customer agrees to notify CMS immediately upon the
termination of any Issuer Agreement to which it is a party. Upon such termination, CMS shall have no further obligations hereunder to provide any services to Customer with respect to any transactions involving such Issuer Cards. 

	[***]	 Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

 In the event Customer does not have a separate Issuer Agreement with a respective Issuer, the Issuer Card services to be
provided hereunder shall be in accordance with the terms of the Agreement and this Attachment. 
  
 3. ISSUER CONSENTS: 
  
 Customer shall be
responsible for obtaining any operational consents required of Issuer to comply with procedures or practices contemplated by both Customer and CMS under this Agreement. 
  
 4. AUTHORIZATION SERVICES ONLY: 
  
 In the event CMS is providing authorization services for Issuer Card transactions as specified herein, Customer shall seek such authorization from CMS pursuant to the
applicable Issuer Agreement or in the absence thereof, the applicable section of the Agreement. Unless CMS is providing processing services for Issuer Card transactions as specified in this Attachment, Customer shall be responsible for processing
and submitting directly to the applicable Issuer for settlement of such Card transactions. 
  
 5. PROCESSING AND SUBMISSION TO ISSUERS: 
  
 In
the event CMS is providing processing services for Issuer Card transactions as specified herein, Customer shall submit to CMS for processing all of Customer’s Issuer Card transactions and CMS shall process such transactions and transmit them
electronically to the applicable Issuer with a summary of such Card transactions. 
  
 6. SETTLEMENT SERVICES: 
  
 In the event CMS is providing settlement
services for Diners Club and/or JCB transactions as specified herein, all provisions of the Agreement shall apply to Customer’s Diners Club and/or JCB transactions. Following receipt of applicable settlement funds from Diners Club and/or JCB,
CMS will initiate a transfer of settlement funds pursuant to the terms set forth in the Agreement and applicable Schedules and/or Attachments. 
  
 (a) Diners Club. If settlement services are provided for Diners Club (“Diners”) transactions: 
  

	 	(i)	Customer shall retain Diners sales drafts and Diners credit vouchers for a period of at least 90 days from the date of the Diners transaction, and Customer shall retain microfilm or
legible copies of Diners sales drafts and Diners credit vouchers for a period of at least seven years following the date of transaction. 

  

	 	(ii)	Customer shall not accept a Card embossed “for local use only” outside the territory in which it was issued; and 

  

	 	(iii)	Customer shall not accept an Amoco co-branded Card unless Customer has a specific contractual agreement authorizing Customer to do so. 

  
 (b) JCB. If settlement services are provided by CMS for JCB transactions: 

 

	 	(i)	Customer shall retain original JCB sales drafts and JCB credit vouchers for a period of at least 120 days from the date of the JCB Card transaction and Customer shall retain
microfilm or legible copies of JCB sales drafts and JCB credit vouchers for a period of at least three years following the date of the transaction. 

  

	 	(ii)	For purposes of CMS’ Chargeback liability with respect to JCB transactions, an authorization obtained on a transaction does not override any Chargeback reason which may apply
to the item. 

  

	 	(iii)	If Customer processes JCB Card transaction data electronically, Customer’s account number must be included in the JCB Card transaction data transmitted to CMS, in addition to
the other information required by the Agreement to be included in each sales draft or credit voucher. 

  

 2 

	 	(iv)	The procedures and requirements contained in the applicable Attachments if Customer is a lodging merchant and accepts JCB Cards to reserve accommodations, subject to the right of
JCB Cardholders to cancel reservations at resort establishments until 4:00 p.m. on the scheduled arrival date, notwithstanding any earlier deadline established for Visa and MasterCard Cardholders. 

  

	 	(v)	By contracting for JCB settlement services, Customer authorizes JCB to publish its name, address and telephone number in JCB solicitation materials. 

  
 CMS does not warrant or bear responsibility for the performance of any Issuer in any way.

  

									
	 BUY.COM, INC
 (“Customer”)
	 	 	 	 CHASE MERCHANT SERVICES, L.L.C.
 (“CMS”)

					
	 By:
	 	 /s/ Robert R. Price
	 	 	 	 By:
	 	 
					
	 Name:
	 	 Robert R. Price
	 	 	 	 Name:
	 	 
					
	 Title:
	 	 President, CFO
	 	 	 	 Title:
	 	 
					
	 Date:
	 	 1/15/02
	 	 	 	 Date:
	 	 
			
	 CHASE MANHATTAN BANK
 (“Bank”)
	 	 	 	 
					
	 By:
	 	 	 	 	 	 	 	 
					
	 Title:
	 	 	 	 	 	 	 	 
					
	 Name:
	 	 	 	 	 	 	 	 
					
	 Date:
	 	 	 	 	 	 	 	 

  

 3

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