HomeMy WebLinkAboutBridgehampton National Bank - CC Tax Collection RESOLUTION 2013-661
'a:,,~6 ADOPTED DOC ID: 9065
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION N0.2013-661 WAS
ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON
SEPTEMBER 10, 2013:
RESOLVED that the Town Board of the Town of Southold hereby authorizes Supervisor
Scott A Russell to execute the Merchant Application and A¢reement between the Town of
Southold and The Brideehampton National Bank, in connection with credit card processing
for collection of taxes, subject to the approval of the Town Attorney.
t!~Q~
Elizabeth A. Neville
Southold Town Clerk
RESULT: ADOPTED [UNANIMOUS]
MOVER: Christopher Talbot, Councilman
SECONDER: Louisa P. Evans, Justice
AYES: Dinizio Jr, Ruland, Doherty, Talbot, Evans, Russell
BRIDGEHAMPTON MERCHANT APPLICATION AND AGREEMENT
'NATIONAL PARTIES AND SERVICES
BANK
MERCHAM # PNS MERCHANT Y App ID:
SALES REPRESENTATIVE: REFERRAL SW RCE:
Julia Hartmann
•
MERCHANT'DOING BUSINESS AS' NAME ' BUSINESS START DATE (MONTHNEAR) HOW LONG AT THIS LOCATK)N?
Town of Southold Tax Receiver
LOCATION ADDRESS (NO P.O. Box) CITY STATE ZIP
53095 Route 25 Southold NY 11971
TELEPHONE NUMBER PRIMARY MERCHANT CONTACT E-MAIL ADDRESS"
631.765.1803 Geor a Sullivan Bull rs aol.com
BUSINESS LEGAL NAME IS YOUR BUSINESS SEASONAL?
Town of Southold Es o
MAILINGISILLING ADDRESS CITY STATE 21P
PO Box 1179 Southold NY 11971
TELEPHONE NUMBER DBA FAX M" TAX ID # TOTAL N OF LOCATIONS
631.76 .1803 LEGAL FAx r• 631.765.5189 11,6001939 1
•
ANNUAL VISAIMASTERCARD VOLUME AVERAGE CREDIT CARD TICKET TOTAL SALES
TYPE OF OWNERSHIP SOLE OWNERSHIP PARTNERSHIP JOINT VENTURE LLC PUBLIC CORP PRIVATE CORP GOVT. CORP N-PROFR OTHER
DESCRIBE THE MERCHANDISE SOLD OR SERVICE PROVIDED
Government- Taxes
TYPE OF BUSWESS: RETAIL WHOLESALE RESTAURANT LODGING MAIL ORDER TELEPHONE ORDER ONVENIENCE STORE
?CONVENIENCE STORE WITH GAS INTERNET BUSINESS TO BUSINESS ?HOME-BASED OTHER
LIST ALL WEBSRE ADDRESSES:
MCC
MAI VFAX CHARGEBACKRIETRIEVALS TO~OLITLET?CORPORATE ~RECON SOLUTIONS
DELIVEfl STATE6ffNTS TO:?OUTLET ?CORPORATE DELIVER BV:?MAIL?E-MAIL" SUIIyQfS(O7a0I.COm ~WTLET CHAIN
~ t
%ANNUAL CREDR CARD SALES GENERATED BY: IMAILI PHONE [INTERNET [CARD SWIPE IHAN0.KEVED ITEMS FACE-TOFACE TOTAL=100%
PERCENTAGE OF CUSTOMER ORDERS DELIVERED IN: [O DAYS [1-]DAYS [&14 DAYS [1530 DAYS IMORE THAN 30 DAYS TOTAL=100%
NUMBER OF DAYS TO PREPARE SHIPMENTS FOR DELIVERY TO CUSTOMER FROM DATE OF ORDER:
ARE CUSTOMERS REWIRED TO PROVIDER DEPOSIT? ES ~NO IFA DEPOSR IS REWIRED, WHAT PERCENT OF THE TOTAL SALE IS REWIRED? %
MCNIS4 SALES ARE DEPOSITED (CHECK ONE): AT GATE OF ORDER r?-TA'T DATE OF DELIVERY ?OTHER
DO VOU HAVE A flEFUND POLICY FOR YOUR MASTERCARONISA SALES? u. ES Q NO
CHECK THE APPLICABLE REFUND POLICY: ?EXCHANGE ?STORE CREDIT ?MCNISA CREDIT ?OTHER
IF MCNISACREDR,WRHIN HOW MANY GAYS DOVW DEPOSIT CREDIT TRANSACTIONS? ?D3 DAYS ?4-T DAYS ?e-td DAYS
WHAT%OF PRODUCT/^uERVICE DOES CUSTOMER RECEIVE AT TIME OF PUflCHASE: %
• •
1. NAME TRLE PERCENT OF gNNERSHIP
RESIDENCE ADDRESS CITY STATE ZIP
HOME TELEPHONE SOCIAL SECURITY# DATE OF BIRTH DRIVER'S LICENSE# STATE
2. NAME TITLE PERCENT OF OWNERSHIP
RESIDENCE ADDRESS CITY STATE ZIP
HOME TELEPHONE SOCIAL SECURITVN DATE OF BIRTH DRIVER'S LICENSEtl STATE
COMPANY PRESIDENT COMPANY CFO
' Fetleral regulations require that we mllect infortnatlon to verify customer itlentity and that we retain this information in our records.
"By provitling us your lax number and e-mail address, you agree Nat we may lax and/or email inionnation to you from tlme b time regarding our products and services,
and Nib roducts aM services which ma be of interest to u.
~
BANK NAME (Phase eKaeh prepHMM vofdM oh#ek.) • TRANSIT ROUTING k (ABA ACCW NT NUMBER
AMERICAN EXPRESS MERCHANT #
Bridgehamp[on Natlonal Bank 092011 Page 1 of IR
4
TERMNAL 7YPE SOFTWARE
RENT ?PURCHASE ?LEASE ?REPROGRAM
ARE CODING ONLY
THIS MERCHANT APPLICATION AND AGREEMENT (this "Agreements is entered Toro by and between The Bridgehamptan NaHanal Sank (°Bank'~ and Iha Merohant
bentifietl in this Agreement. Under the terms of this Agreement, Dank will be the sale provider to Merchant of the services necessary to authorize, process and settle all of
Merchant's credit and debit card Iransactlons set forth in Schedule A to this Agreement. If a third parry referted you ro us far the services provided under this Agreement, such
third party maybe party to the Agreement, but has no rights with respect to Merchant except as provided in such third party's agreement with us.
FOR MERCHANT AND INDNIDUAL GUARANTORS - As the person signing below on 6ehall of the business designated on the above Applicatlon ("MerohanC), I oeMry that I am an
owner, partner or officer of the Merchant aril have been duly authorized to sign tNS MerohaM Applicatlon and Agreement on behalf of the Merchant. Merchant arq each guarergor signing
below ('Guarentay) hereby acknowledge that they have each received antl read (1) Terms and Condlibns for Merohanl Agreement, (2) Schedule A (PnUrg) and (B) the Operating Guides -
Relall antl Mail Order/Telepfnne Order/Inlemet Transacgons. Merchant agrees to ba hcund by the terms arM conditlons contained in those dacumeMS, and each Gueramor hereby agrees to
be bound az a Guaranor of the Merohan's obligatlons under this agreemem, accorAng to the Personal Guaranty tgMalned in the Terms and ConUtions for Merchant Agreement. Merchant
hereby authorizes Dank b credit and debit Nierohant's designated bank acmuM(s) in acwrdance with This Agreement. Merchant represents and warrants that all informatlon on this
Application, and the related information submitled in conjurwNlon with the Application, Is true, wmplele and not misleadlrp. The Application now babngs to BaMC. Merchant underslargs that
Ne application fee is ron-refundable. Merchant, each Owner/O/ficer end each Guarantor hereby errthorizes arM agrees that Dank, or its designee, may investlgate ant verity the cretllt and
HnanUal Inbrmalion of Merchant, each Owner/Olficer end any IrvJwdual Guarantor and may obtain mnsumer end commerdal credt reports on the Guarantors, Owners/Ollicers and
Merchant from tlme to Ilme. H the Appliration Is approved, subsequent consumer end business credit reports maybe required or used In wnnectlan with the meinlenance, updeHrg, renewal
or exlenslon of the Agreement. Tha Memhenl, OwnerslOHicars and each Guaranor areas that all business references, including banks, may release arty and all credH end financial
IMOrmatlon to Bank. ANY UNILATERAL ALTERATION, STRIKEOVER OR MODIFICATION TO THE PREPRINTED TEXT OR LINE ENTRIES OF THIS MERCHANT APPLICATION AND
LEGAL AGREEMENT SHALL BE OF NO EFFECT WHATSOEVER, AND AT BANKS SOLE DISCRETION, MAY RENDER THIS MERCHANT APPLICATION INVALID.
MERCHANT/GUARANTOR
aUSINE$$LEGAL NAME not Southold
gy; BY:
I iN Signature (a11(ym aapplkation/) IMivbual Signalwa (a2 hom appliwtlon)
Tine: ~u~~~, V~t(J O;I
fµ,.- _ Dale ~ ~ ~/p / Title: Data:
PrIM IntliNtlual Name: Sc.~~ 1 1 ~l/~.]J C/ [ / Print Ind'Ndu~ Name:
r
Signature:
Title:
Date:
endgehamp[on National Dank 092011 Page 2 of IS
:TEBMSAND CONOj[TIONS FOR ME0.CHANT I1CiAtEEMENT '
March :M's Aaceutanre of pavmeM Irmtrumer~. deferred paymend, whether or not they have been submitted to us for
1.1 Exduahrity. Vou will tender [a us Transaction Data generated from all your Drceessing, shall be deemed to he a part of the original Payment
TrensaQans Na electronic data transmssbn aanrding to our formats and Transaction.
procedures. You will rrot use the services of any bank, mrporetion, entlty, or 12) Vou have not submitted arty Payment Trensaction that you know or
person other than Bank for auMorization or prceessing of Transaction Data should have known [o he either fraudulent or not authorized by the
Hrou9hout the term of this Agreement Customer or otherwise in vblatbn of am/ DroNSbn of this Agreement or
1.2 Certain Payment Acceptance Polities. Each Payment Transaction and Payment Brantl Rules.
Conveyed Transactlon must be evidenced by a single Trensadion Data record Z Autiarizations.
completed with (I) the transaction date; (II) a beef description of He goods or Z3 Obtaining AutAorizatbns. You are required H obtain
seMCes sold, returned, or canceled; (iii) the pace of the goods or services, authorbatlon/approval codes for all Payment Transactions by contaNng the
including applicable taxes, or amount of any credit or adjustment; (iv) the center designated by Bank. You acknowledge that the authorizatlon/approval
Customer name; (v) your name in a manner recogn¢able to Cusromers;(vi) your code of a Payment T2nsaction indka[es onN (I) Mat the Payment Instrument
address; (vii) a customer service telephone number; (viii) any applicable terms contains a valid account number; and (ii) Mat sufficient balance b available for
and conditions; (hr) Me exact date any free Mals end; and (z)any other He Payment Transaction at Me tlme Me aMhorization is given, but it does not
informatlon Mat the applicable Payment Brand may require. You shall not impose [onstltute a representatlon from us, a Payment Brand or a card iswing bank Mat
any surcharge or finance charge an a Payment Transaction or Conveyed a particular Payment Transaction is in fact a valkl or undisputed trarsaction
7rensactbn or otherwise require He Customer M pay arty fees payable by you entered Into by He actual Customer.
under [his Agreement if prohibited. by Me applioble Payment Brand. You shall Z2 Lack of Ardhor@ation. We reserve Me right to refuse H process any
no[ engage in arty practice Mat unfavorebN discriminates against or provides Transaction Data presented by you (I) If you do not record a proper
unequal treatrnent of He use of any Payment Brand over arty other Payment authorizatlon/approval wile, (ii) If we determine that He Transaction Data is or
Brand. You shall no[ set a dollar amount above or below which you refuse M will become uncoliectible from Me Customer to which He hansadion would
honor otherwise valid Payment Instruments in violatlon of Payment Brand Rules. otherwise be charged, or (III) if we determine Ha[ He Transaction Data was
Wth respect to arty Payment Trensaction or Conveyed TransaNOn for which He prepared In vlolatlon of any provisan of His Agreement or He Payment Brand
Payment Instrument being used is not physlwlN presented, wch as in any on- Rules.
line, mail, telephone, or Dre-authorized transaction, you must (I) have notlfied us 3. Refunds and Adiushnents.
on your application or otherwise in wilting of your intentlon M conduct such 3.1 Disdowre of Refund Policy. You are required H maintain a fair policy
transactions and secured our agreement [a accept Hem; and (Ip have with regard to He return/cancellatlon of merdwndfse or servkes and adjustment
reasonable procedures in place [o enwre Ha[ each Transaction is made [o a of Trensactions. You are required H dlstlose your return/oncellation policy [o us
purchaser who actualN a He Customer. NolwiHstanding Me foregoing, you on your application. Your return/cancelWtbn polky must be disclosed to your
acknowledge Mat under certain Payment Brand Rules, you annot rebut a customers.
Chargebadc where He Customer disWtes making He purchase without an 3.2 Charpea to Pogcy. Any change lei your return/cancellation policy must be
eleNOnic record (for example, "swiping" or °tappinq° a Payment [nstvment) qr wbmitted In writing to us no[ less Man 14 daK prior H He effectlve date of
phKical imprint of the Payment Instrument wch change. We reserve He right to refuse to prceess arty Trarisad:ion Data
1.3 Operatirp Guide; Payment Brand Rules. you agree to compN with [he made subject [o a revised return/rancelWtion policy of which we have not been
operatlng guide attached [o this Agreement, as amended from time H time notified in advance.
("Operating Guitle'~, all Payment Brand Rules, and wch other procedures as we 3.3 Procedure for Refunds/AdJustmesRS. If you aNow a price adjustment,
may from time to time prescribe for He aeatlon or transmission of Transaction return of merchandise, or cancellation of servkes in connection wiH a Payment
Data. We may modiry and supplement the Operetng Guide in order [o compry Transaction, you will prepare and delNer to us TrdnSaNOn Data refiectlng such
wiH requirements Imposed W He Payment Brand Rules. You adcrwwledge Mat refund or adjustment within 3 daK of receiving He Customer's request for such
you have received a copy of the Operating Guide at or prior [o your execution of refund/adjustment The amount of Me refund/adjustment cannot exceed Me
His Agreement. To Me extent Mat the Ope2tlng Guide B Inconsistent wits Me amount shgwn as the total on Me original Transaction Data except by He exact
Payment &and Rules, [he Payment Brand Rules shall prevail. amount required to reimburse He Customer for postage that He Customer paid
1.4 RequlremeMS for Certain Transactions. As to aA Payment Transactions to return merchandise. You are cwt aBOwetl to accept wsh or arty other payment
and Conveyed Transactions you tender to us for prceessing, you represent and or consideration from a Customer In return for preparing a refund to be
warrant Ha[: deposited M Me Customer's account; nor may you give rash refurWS to a
1) The Payment Trensaction represents payment or refund of payment Customer in connection wits a Payment Transaction, unless required by law.
for the bona fide sale or lease of He goods, servces, or boH, Mat you 4. Sw_!renr
have provided in He ordinary course of your business, and Me Payment 4.1. Submissbn of Transaction Data. You must transmit your Trensaction
7rensactlon is not wbmitted on behalf of a Hird party. Data to us no later Man He business day immediateN Polbvdng He day Mat
2) The Payment T2nsadion represents an obligatlon of He Customer such Transaction Data is originated. Failure tq do so pn rewlt in higher
for He amount of He Paymen[7ransaction. interchange fees and other costs and increased Chargebacks For debit card
3) The Payment Transaction does not involve arty element of credit for transactlons Mat are credits [o a Customer's aaouM, you agree ro hansmit such
payment of a previousN dishonored Payment Irrstroment or for arty other T2nsactions to ss within 24 hours of receiving Me auNorizatlon for such aediL
purpose except payment for a curent transaction, and, except in the case Unless oMerwise iMica[etl on Schedule A, you will be solety responside for all
of approved Installment or pre-payment plans, Me goods have been communicatlon expenses required [o fadlitate Me transmission of all Tansaction
shipped or servces adualN rendered to the Customer. Data to us.
4) The Payment Transaction is free from arty alte2lion not authorized 4-2 Merchant's Settiemem Account. In order to receive funds from Bank,
by Me Customer. you must maintain an account at a bank Mat b a member of He Automated
S) The amount charged [o He Customer Mat is represented in He Dearing House ("ACH'~ system or Me Federal Reserve wire system ("Settlement
Payment Transaction is not subject to any dispute, setoff, or munterdaim. Account"). During [he term of Me Agreement, and Hereafter untll wE notify you
6) Neither you nor your employee has advanced any osh ro He Customer Hat all monies due from you antler His Agreement have Ueen pakl in full, you
(except as authorized by Me Payment Brats Rules) or to yourself or [o arty agree not [o dose your Settlement Account without giving us at least 5 daK'
of your representatives, agents, or empbyces in connection with He prior written notlce and suhsti[utlng another Settlement Account You are wkN
Payment TransaNOn, nor have you accepted payment for effectlng vedits liable for aA fees, costs, and expenses associatetl wiH your Settlement Account
to a Customer. and for all overdreRs. You authorize Bank [o initiate eoctronic credit an0 debit
7) The goods or services related to each Payment Transaction are your enHes and adjustments to your Settlement Account at any time wiHOUt regard
sole properly and you are bee to sell Mem. [o Me source of any monies in He Settlement Account This authority will remain
8) You have made no representations or agreements for He issuance of in full force and effect until we natlry you Hat all monies due from you under His
refunds exce0[ as It states in your return/pncellation policy, which has Agreement have been paid in full. We will not he Ilable for any of your losses or
been previousN submitted [o us in writing as provided in Sectlon 3. expenses whatsoever resulting from delaK in receipt of funds a errors in
9) Any credit transaction submitted [o us represents a refund or Settlement Account entries caused by Hird partles, Inducting, without limitatlon,
adjustrnent [o a Payment Transaction prevlousN submitted to Bank delaK or errors by eitlier Me Payment Brands or your bank.
SO) Vou have no knowledge or rwtlce of informatlon Mat would lead you 4.3 Conveyed Transactions. To He extent Mat you submit any Conveyed
[o believe Mat He enforceability or collectability of the wbject Payment Transaction for processing by Bank and you do no[ have a valid agreement in
7rensaction is in any manner impaired. The Payment Transaction is in effect wiH He applicable Payment &and, you hereby authorize us, at our
compliance with all applicable laws, ordinances, and regulations. You have option, to submit such transaction M He applicable Payment Brand, and [o share
originated Me Payment Transaction in compliance with His Agreement and wiH He Payment Brand such infarnatlon from your Merchant Applkatbn as may
He applicable Payment Brand Rules. be required by He Payment &antl in order ro aDProve your acceptance of iCs
11) For a Payment Transaction where He LUS[omer paK in installments Payment Instrument as a mehod(s) of payment Subject H wch approval you
or on a deferred payment plan, a Transaction Data record has been agree [o Me apdicahle Payment Brand's standard terms and mnditons with
prepared separately for each installment transaction or defaced payment respect to your acceptance of its method(s) of payment Upon your transmissbn
on He date(s) the Customer agreed to be charged. All installments and of such Conveyed Transaction [o us, we will forward He Conveyed Trensaction
eridgehampton National Bank 092011 Page 3 of 18
I '
to Ne appropriate Payment Brand. Payment of the Dra'eeds due you will be 5. ACtYrurltlna. We will suppN a detailed statement reflectlng Ne adlvity for
governed by whatever agreement you have with [hat Payment Brats, and we do your merchant account(s) by on-line amass (or otherwise if vre agree).We will
no[ bear arty responsibility for their pertormance. If your agreement wdh a no[ be responsible for any error that you do not bong to our attention within 90
Payment Brand requires Such Payment Brand's Consent for us to perform the days from the date of such statement
services contemplated by our Agreement, you are responsible for obtaining that fw Retrieval Reeueats
consent. B.1 Records. You agree to store original tlocumenb[ion or legible copies of
4.4 Transfer of Settlement Funds. For all Payment Tansactlons, we will each Tansadion far a[ least IB monNs from the date of such Transaction. You
proms your Transaction Data [o fadiib[e the funds transfer between the may not charge a fee [o your Customers for the creation or storage of such
various Payment Bends and you far Payment Tansadions. Promptly after we copies. We may, at our discretlon, require you to delver copies of Trensadion
receive uedi[ far such Trensadlon Dab, we will provide provisional credit ro Data to us rather than storing it
your Settlement Account fw Ne proceeds. The proceeds payable to you shah be 6.2 Response to Retrieval Requests. We will send you any Retrieval Request
equal to the amounts receved M us in connedlon wdh your Transad'wn Dab that we cannot sa[isry with the information we have on file mnmming any
minus the wm of the following: (i) all fees imposed by us or arty third parties Payment Tansadion. In response, you must provide us in writing try mrtlfied or
passed through [o you, charges, and discounts set forth In Schedule A; (ii) all overnight mail or by confirmed fax (or try other means as agreed N by Bank) the
adjustrnents and Chargelwcks; (III) all equipment charges (if arry); (iv) all resolution of your imestlgation of wch Retrieval Request and Indude 1e91b1e
Customer refunds, returns, and adjustments; (v) all Reserve Account amounts; copies of any documenbtion required try the Retrieval Request within 7 business
and (vi) any fees, charges, fines, assesvnents, penalties, or other Ilabilibes that days after we send it to you (or such shorter tlme as Ne Payment Brats Rules
may be imposed on us or the Member, from tlme to time, by the Payment may require). You admowledge that your failure [o fulfill a Retrieval Request In
Brands and all related costs and expenses inmred try us. You agree that all acmrdanm with Payment Brand Rules may rewh in an irreversible Chargeback.
amounts set forth above, and any other amounts are due and payable by you at 7. Chareehacks.
the time the reWted services are rendered to you; that all Reserve Amount 7.1 Chargeback Reasoro. You may emive a Chargebeck from a Customer or
amounts are due and payable M you upon esblMishment; and that the related a Payment Brand for a number of reasons under Ne Payment Brand Rules. The
Chargebads, Customer refunds, and adjustments, fees, charges, fines, following are some of Ne most common reasons for Chargeberks, and in rw way
assessments, penalties, and all other liabilities are due and payable by you when Is this intended to be an exhaus[hre Ilst of possible Chargehack reasons:
we receve notke thereof from the Payment Brands or otherwise pursuant to 1) Your failure to issue a refund to a Customer upon the return or non-
Section 4. In the event we do not period such amounts from the prameds delivery of goods or servims.
payable to you, you agree to pay ad such amounts [o us. AlbmadveN, a[ our 2) A required au[horizatlon/approval code was not obtained.
option, we may debit the Settlement Account for wch amounts. Wtthout limiting 3) The Transaction Data was prepared IncomedN or fraudulently.
the foregoing or our rights under Sedlan 7.2 or Section S0, if a Payment Brand 4) We did no[ receive your response to a Retrieval Request within 7
notifies us or [be Member that it Intends to impose any floe or penalty as a result business days or any shorter Bme period required by the Payment &and
of excessive Cbergehacks or your ads or omissions (induding, wiNou[ limiafion, Rules.
your failure m fully comply with arty Payment &and Rules), we may suspend Ne 5) The Customer disputes the Tansaction ar the signaWre on the
processing of your Payment Transadions. Tansamon Data, Or palms that the Tansaction s subjed to a set-ofF,
4.5 Negathre Amanda. To the extent the proceeds from Payment defense, or mun[erclaim.
Tansad'wn5 do not represent sufficent credits or the SeGfement Account does 6) The Customer refuses [a make payment for a Transadion because, in
not have a wfflcient baance to pay amounts due or reasonably an[kipated to the Cus[omerss good faith opinion, a claim or mmpWint has not been
become due under this Agreement, we may purwe aria or mare of Ne folowing resolved, or has been resolved by you in an unsatisfacrory manner.
oDfions: (i) demand and receive immediate payment for such amounts; (ii) dept 7) The credit or tlelNt card comprising the Payment Instrument was not
your Settlement Account for the amount of the negative belanm; (iii)wi[hhold actually presented at the tlme of the Payment Transadion or you failed [o
your settlement payments until all amounts are paid; (iv) delay presentation of obtain an eleNOnic record or DhYSial imprint of such Payment Instrument,
your refunds until you make a payment to us of a wfflcient amount to cover the and Ne Customer denies making Ne purchase. The Merchant
negative belance; (v) coded any amount due or which may become due to us acknowledges Na4 under these drmmsbnces, the fad that an
from any of your hank amounts without notke to you; and (N) pursue any other authorization/approval code was obained does not mean [hat a partlcuWr
remedies we may have at law or in equity. Furthermore, if the amount Tansad'an e a valid or undisputed transadion entered into by the acNal
represented by your Transadion Dab in any day is negatve due to Customer.
refunds/credits being submitted by you in excess of your prceeeds from 7.2 Excesshre Charpelxtcks. If you are receiving an exmssNe amount of
Tansad'pn Data, you shall provide us with wfficient funds prior to Ne Chargebacks, as determined W the Payment Brands from time to time, in
submission of the Transacton Dab so as [a prevent the oavrtence of a negative addltlon to our other remedies under this Agreement we may bke the following
balance, adions: (i) review your internal procedures relating to amepbnce of Payment
4.6 Delinquency/Merdum Fraud. At any time and from time [o tlme we Instruments and ratfi/ you of new procedures you mold adopt in order to avoid
may tempoarily suspend or delay payments to you and/or designate an amount fuNre Chargebecks; (II) notlfy you of a new rate we will charge you to process
of funds that we must maintain in order [o proted us against the risk of, among your Chargebacks; (iii) collect firm you (pusuam [o Secton 4.b) an amount
other things, exsdng, potentlal, or anticipated f7rargebedcs and to sa[LSfy your reasonabN determined by us to be sufficient [o cover anticipated Chargebecks
other obligations under Nis Agreement (such funds being hereinafter referred to and all reWted fees, expenses, and fines; or ('rv) terminate the Agreement with
as Ne °Reserve Account"), which may be funded in Ne same manner as written notice of [erminatlon. You also agree to pay any and aH Payment Brand
provided for negative balances in Sedlon 4.5. The Reserve! Account will conbin fees and fines assessed against you or against Bank or Member relatlng to your
sufficient funds to cover any unhilled processing costs plus our estimated vloladon of Nis Agreemen4 the Opeatlng Gultle, or Ne Payment Bend Rules
exposure based on reawnable criteria for Chargebacks, returns, unshipped wiN reseed N your accepbnm of Payment Instruments, your Transacton Dab
merchandise, and/or unfulfilled servkes and all additlonal liabilities antldDa[ed or with respect [a excessve Charge -bada antler Nis Section.
under Nis Agreement We may (but are no[ required to) appN funds in the 7.3 Claims of Customers. You have tali liability if any Transadion Data for
Reserve Acmun[ toward, and set off any funds that would otherwise be payable which we have ghren Ne Settlement Pcmunt provisional credit's Ne wbjed of a
to you, [be safisfadan of any amounts which are or become due from you Chargeback. Subsequently, you may rewbmi[ appliahle Transadion Dab for a
purwan[ to Nis Agreement The Reserve Account will be held and controlled by second presentment, but only in aaordanre with Payment &and Rules. To Ne
Bank, will no[ bear interes4 and you will have no legal rght or interest in Ne extent Na[ we have paid or may be aped upon [o pay a Chargebedc, refund or
funds in [he Reserve Acmunq provided, Mwever, Na[ upon satisfaction of all of adjustrnent for or on Ne account of a Customer and you do no[ reimburse us as
your obligatons under Nis Agreement we will pay to you any funds Men provided in Nis Agreement, Nen for Ne purpose of our obtaining relmbursemen[
remaining in the Reserve Account Any funds in Ne Reserve Account maybe of such sums paid or aMkipated to be paki, we have all of Ne rights and
commingled wiN other funds, and need not be maintained in a separate remedies of such Customer under appllable federal, sbte, or lost laws and you
account Effedive upon our establishment of a Reserre Amount You irrevoabN authorize us to assert any and all such palms in our own name for and on behalf
grant to us a security interest in any Interest you may now have or later acquire of any such Customer individualN or all wch Customers as a class.
in any and all funds, together wiN Ne procmds thereof, Na[ may a[ any time be e. DisBlav of pavmerd Brand Marks Merchant lv prohibited from using Ne
in our possession and would otherwise be payable to you pursuant [o Ne terms Payment &and Marks, as defined below, other Nan as expressly authorized by
of Nis Agreement You agree ro execute and deliver [o us such instruments and us in writing or by Ne Payment Brands. Payment Brand Marks mean Ne tirantls,
documents (induding, without limitation, security agreements and releases) Nat emblems, trademarks and/or bgos Na[ identlfy a Payment Brand. AdditlonalN,
we may reasonabN request (i) to parted and mnfirn Ne security interest and Merchant shad not use Ne Payment Band Marks other Nan to disday deals,
right of setoff se[ forth in Nis Agreement; and (ii) in connedion wiN any return signage, adverOSing and other forms depleting Ne Payment Brand Marks Nat are
of Reserve Account funds. provided [o Merchant (i) by Ne Payment Brands; (ip by us purwan[ to Nis
Agreement; or (iii) as oNervdse approved in writing by us. Merdran[ may use Ne
Bridgehampton National Bank 092011 Page 4 of 18
Payment Brand Marks onry N promote Ne seMCes covered by the Marks by a Payment Transaction, (ii) to the applicable Payment Brand, or (iii) as
using Nem on deals, indoor ant outdoor signs, advertising matenah and specificalN required by law. You are allowed by the Payment Brand Rules to
marketing materia6; provided that all wch uses by Merchant must be in writlng store only certain Payment Instrument Information (Ne'Permitted Infortnatlon'~
antl approve0 by us and consistent with Payment Brand Rules. Merchant shall currently limited [o the customer's name, Payment Instrument aanunt number
no[ use the Payment erantl Marks In wU a way that customers could believe and expiratlon date) and are prphibitetl from storing additional Payment
that [he products or services offered by Merchant are sponsored or guaranteed Inswment Information, Induding, without limitation, any security code data
by the owners of the Marks. Merchant recognWes that tt has no ownership rights such as NV2, NC2, and PIN data, and any magnetic stripe tack data. You will
in [he Payment Band Marks. MerUant shall not assign to arty third parry the store all media containing Permitted Information in an unreadabe format
rights to use the Payment &and Marks. Merchant's sublicense to use the wherever it W stored and in an area limited to selected personnel on a "need to
Payment Brand Marks hereunder terminates simul[aneousN wiN the termination know° basis only and prior to either party discarding any material containing
of the Agreement Payment Instrument Information, the party will destroy it in a manner rendering
3.FSSa. the account numbers unreadable. If at any time you de[ertnine that Payment
9.1 Scheduk A. You agree to pay us for the services as set forth in Schedule A Instrument Information has been compromised you witl notlry Bank immedia[eN
in accordance with this Agreement Unless otherwise expressN stated In and assist in providing notification to such parties as may be required h1' law, by
Schedule A, wch pricing is based on all Transactions qualifying under the Payment Brand Rules, or as we otherwise reasonabN deem necessary. Merchant
Payment Brand Rules for the lowest Payment Band Interchange rates. For information may be shared by us with our affiliates and with [he Payment Brands
Tansactlons Na[ da not quality for the best rate, Payment Brands may provide subject to Ne provisions of Nis Agreement and Payment Brand Rules. Vou agree
fora "downgrade," and we will apply a higher ate Nan Ne qualifying rate [o comply wiN all data security standards, guidelines and requirements Nat may
shown on SUedule A. Fees payable under Nis Agreement Nat contain a fraction be published from lime to time by any Payment &and, induding, without
of a cent will be rounded up [o Ne next full cent limitation, the Payment Card Industry Data Seanty Standards (collediveN. Ne
9.2 Pdce Changes. We may modify Ne pacing on Schedule A wiN 30 days' "Security Guidelines'. you further agree provitle us upon our request wiN such
prior written notice. In addltbn, vre may change our fees, charges, and discounts tests, scans and assessments of your compliance with Security Guidelines as
resulting from (i) changes in Payment Band fees (such as interchange, requlretl by Ne Payment Brands. Yau must not us of
dY your use of arty Service
assessments, and other charges); (ip changes in pricng by any Nird party Provider and, to Ne extent required by each Payment Band all Servke Providers
provider of a product or service used by you; or (Iii) fees which are atldetl by a must be (i) compliant wiN all Security Guidelines applicable to Service Providers,
Payment Brantl. Such new prices will be applicable to you as of the effective date and (ii) registered with and/or retognWed by wch Payment Brand(s) as being w
established by Ne Payment &antl or third party provider. compliant. Vou agree to exercise reasonable due diligence N ensure Na[ all of
10. Termination. your Service Providers, and any other agents, business partners, conhactors, or
10.1 Term. The initial term of Nis Agreement shall commence upon our wbeontractors wiN aaess to Payment Instrument Informatlon, maintain
acceptance hereof (as evidenced by our acceptance of your fires Transaction for compliance wiN Ne Security Guidelines. To the extent required by each Payment
processing hereunder, and shall wnUnue until either (i) terminated by you ny Band, all payment applications, or software Involved in Ne processing, storing,
giving at least 30 daK" prior written notice to us or (ii) terminated by us W receiving or transmittal of Payment Instrument Information, shall be (i)
gMng ratite N you (such termination by us ro be eftedive as of a date set forth compliant wiN all Security Guidelines appirable to wch payment applications or
in such notlce, or, if no wch date W set forth, to be effedive as of the tlate such wftware, and (ii) registered wiN and/or recognizetl by wch Payment &and(s)
notice a received by you). IF YOU TERMINATE THE AGREEMENT WITHIN THE as being w compliant Vou understan0 Nat your failure to comply with Ne
FIRST 3 YEARS FOLLOWING THE DATE OF yWR EXECUTION OF THIS Payment Brand Rules, including Ne Security Guidelines, or Ne compromise of
AGREEMENT (THE "PAYBAIX PERIOD), YOU AGREE TO PAY AN EARLY any Payment Instrument Information, may rewh in a55e55ment5, fines, and/or
TERMINATION FEE OF;500.00 FOR EACH YEAR OR FRACRIXJ THEREOF THAT penalties by Ne Payment Brands, and you agree [o indemnity and reimburse us
IS NOTFULFlLLED. THE EARLV TERMINALTION FEE WILL BE PAYABLE TO immedia[eN for arty Such assessment, fine, or penalty imposed on u5 Or Ne
BRIDGEHAMPTON NATIONAL BANK UPON TERMINATION IF YOU FAIL TO Member and any reated bss, cost or expense incurted by us or Ne Member. If
COMPLETE THE 3 YEAR TERM DUE TO MIGRATION TO ANOTHER CREDIT CARD any Payment Brand requires a forensic examinatlon of you or any Of your Service
PROCESSOR FOR ANY RERASON WHATSOEVER. SUCH AMWNTS WILL BE Providers, agents, business partners, contractors, or subcontractors due to a
FUNDED, TO THE EXTENT POSSIBLE, ACCORDING TO THE SAME METHODS data security compromise even[ or suspected event, You agree to coopeate wiN
FOR COLLC-CTING AMIXINTS DUE UNDER THIS AGREEMENT. We reserve Ne such forensic examination(induding, without limitation, Ne engagement of an
right to place you or any person owning or controlling your business in Ne examiner aaeDtable to Ne relevant Payment Brand) and agree to pay for all
MATCH file (Member Alert to Control High-Risk Merchants) maintained by Visa costs ant expenses related to such forensic examina[on, including all of our
and MasterCard in Ne event Nis Agreement a terminated for cause. attorneys'fees and other costs relating to such forensk examination.
10.2 Acceurrt Actlvity After Termination. Termination does no[ affect eiher 13.IMormatNn About Merchant's eutlness
party's respective rights and obligations under Nis Agreement as [o Transaction 13.1 Additlonal Finarncial Informatlon. Each of Merchant and Ne
Data submiltetl before terminatlon. If you wbmit Transaction Data N us after undersigced Guarantors (If any) agrees to famish to us upon 5 days' notice such
Ne date of termination, we may, at our ale discretion orb without waiving arty financial statements and information concerning such Guarantors antl Merchant
of our rights or remedies under Nis Agreement, process such Tanwction Data and each of Guarantor's and Merchant's parents, wbsidiaries, and affiliated
in accordance wiN all of Ne terms of Nis Agreement Upon notice of any entltles as we may request
terminatlon of Nis Agreement, we may estimate Ne aggregate dollar amount of 13.2 Other IMormation. With prior notice and during your normal business
Chargebatks and other obligatons, Iiabili0es, and expenses Nat we reawnabN hours, our duN autlrorized representatives may visit your business Oremises and
antidpa[e subsequent to termination, antl you agree to immediately deposit suU may examine your hooks and records Nat pertain [o your Tansaction Data or
amount in your Settlement Account or as otherwise directed by us, or we may your compliance with Nis Agreement You agree to provide us a[ leas[ 30 days'
wdhhold such amount from your settlement funds, in order to establish a poor written notice of your Intent [o change your product line or services, or your
Reserve Account pursuant to and governed by the terms and conditions of Nis trade name, or Ne manner in whiU you accept Payment InsWments. If we
Agreement determine such a change is material to our reWtionship with you, we may refuse
11. Indemnity. Vou agree [o indemnify Bank, Member, Ne Payment Brands, to process 7ransadion Data made subsequent to Ne change. You agree [o
and Neir respectve affiliates, officers, directors, employees, agents, and provide us wiN prompt written notice rf you are Ne subject of any voluntary or
sponsoring banks from any losses, liabilities, and damages of any and every kind involuntary bankruptcy or inwNency petltbn or proceeding. You will also provide
(induding, without Iimi[aton, our costs, expenses and reasonable attorneys' us wiN prompt written notice of (i) any adverse change in your financial
fees) arising out of any claim, compoant, or Chargeback (i) made or chimed by a condition, (ii) any pWned or antidpa[ed liquidation or substantial change Ne
Customer wiM respect [o any Tansaction or Tansaction Daa submitted by you, basic nature of your business, (iii) any transfer or sale of any subs[antal part
(ii) caused by your noncompliance with Nis Agreement, Ne Opereting Guide, or (25% or more in value of ur total assets, or rv if
yo ~ you or your parent is not a
Ne Payment Band Rules, including any breach of a representation or wartanty corporation whose shares are listed on a national securities exchange or on Ne
made by you, (iii) resultng from any voluntary or involuntary bankruptcy or over-Ne-counter market, any change in Ne conhnl or ownership of you or your
inwNency proceeding by or against you, on(ly) related to your placement or Ne parent You will also notiry us of any judgment, writ, warrant of attachment,
placement of any person owning or conhnlling your business in Ne MATCH Flies execution or levy against any wbstantial part (25% or more in value) of your
maintained by Visa and MasterCard. The indemnifiation provided for in Nis total assets not later Nan Nree days after you obtain knowledge of any such
Section does no[ apply to any daim or compWint [o Ne exent i[ is causetl by judgment, wm, wartant of attachment, executlon or levy.
Bank' own negligence or willful miwonducL The indemnity Drovided under Nis 14. Disdalmer. Limitatlon M Damaees. Subject to Section 5, we will, at our
Section 11 shall survive Ne terminatlon of [his Agreement. own expense, cortect any Tansadtion Data to the extent Na[ such ertors have
iZ No Disdosurc M Customer Information. You will exercise reawnable been caused by us or by malfundions of our processing systems. Under no
care [o prevent disclosure or use of Payment Instrument Information, other than circumstances will Bank's financial responsibility for our failure of performance
(i) [o your agents and contractors for the purpose of assiwng you in completlng antler Nis Agreement ex[eed Ne total fees paid to us under Nis Agreement (net
Bddgehampton National Bank 092011 Page 5 of IB
of Payment Brand fees, Mlyd party fees, interchange, assessments, and fines) for THIS PROVISION CAREFULLY. if PROVIDES THAT ANYDISPIlIE MAY BE
Me six momhs poor Co the Ome Me Ilablliry arose. IXCEPI' AS OTHERWISE RESOLVED BV BINDING ARBITRATION. ARBITRATION REPLACES THE RIGFfT TO
PROVIDED FOR IN THIS AGREEMENT, IN NOEVENT WILL ANY PARTY, I75 GO TO CWRT, INCLUDING THERIGHT TO A JURY AND THE RIGHT TO
RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, OR AFFlLIATES, BE LIABLE PARTICIPATE IN A CLA55 ACITON OR SIMILAR PROCEEDING. Any claim,
FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL,OR PUNITNE DAMAGES OR ANV dispute, or controversy ("gaim' by either you or Bank against the other, or
LOSS, THEFT, DISAPPEARANCE, OR DAMAGE TO DATA TRANSMITTED against the officers, directors, empbyees, agents, parents, wbsidiaries, affiliates,
ELECTRONICALLY 1N CONNECITON WITH THISAGREEMENT. THIS AGREEMENT beneficlanes, agents, succeswrs, or assigns of Me other, arising from or relating
IS A SERWCE AGREEMENT, AND EXCEPT AS EXPRESSLY PROVIDED IN THIS in any way [a this Agreement or [o our relationship, Including Claims regarding
AGREEMENT, Bank.ANDMEMBER DISCLAIM ALL OTHER REPRESENTATIONS OR Me applicability of [his arbitration douse or the validity of [be entire Agreement,
WARRANTIES, EXPRESS OR IMPLIED, MADE TO MERCHANT OR ANY shall be resolved exclusiveN arM finalty by binding arbitraton administered by
OiHERPERSON, INCLUDING, WITHOUT LIMITATION, ANV WARRANTIES the National Arbitration Forum, under its Code of Procedure in effect at the time
REGARDING QUALITY, SUITABILITY, MERCHANTABILITY, FCENESSFOR A the gaim is filed, except as otherwise provided below. All gaims are subject to
PARTICULAR PURPOSE, OR OTHERWISE (REGARDLESS OF ANV COURSE OF arbitration, no matter what theory [hey are based on. ThlS includes Claims based
DEALING, CUSTOM, OR USAGE OF TRADE) OF ANVSERVICES PROVIDED UNDER on contract, tort (inducting intentional tort), fraud, agency, your or our
THIS AGREEMENT OR ANY GOODS PROVIDED INCIDENTAL TO SUCH SERVICES. negligence, statutory or regulatory provisions, or any other source of law. gaims
35. Miscellarvaous. and remedies sought as part of a cWss acton, private attome
15.1. Taxes. Unless y general, or other
you are otherwise exempt, you agree [o pay any [axes representative acton are subject to arbitration on an individual (non-class, non-
imposed on Me services, equipment, intellectual property, supplies, and other representative) basis only, and the arbitrator may award relief onN on an
goods Durchased or tangible property provided under this Agreement, and you individual (non-doss, non-representative) basis. Vou and Bank will agree on
authorize us [o Increase the amount we collect from you to reflect any and all another arbitration forum If the National Arbitraton Forum ceases operations,
assessments or Increases in the sale, use, oaupatlpnal, property, lease, or other The arbitration will be conducted before a single arbitrator antl will be limited
taxes imposed on such sale or lease of servkes, tangible property, or intellectual wlety to the gaim between you and us. The arbitraton, or any portion of R, will
property, equipment, supplies, and other goods purchased. not be consolidated with any other arbitration and will not be coMucted on a
15.2 AppliraWn and Credit Check. You represent and warrant Ma[ cWss-wide or Uass acton basis. The Prohibitbn against doss action contained in
statements made on your APPlkation for this Agreement are true as of [he date this Section shall be non-severable from the remainder of Ma Section. If either
of your executlon of this Agreement Your signaNre on this Agreement party prevails in the arbitratlan of any gaim against Me other, the non-prevailing
authorizes us to pertortn any credit check deemed necessary with respect to party will reimburse Me prevailing party for any fees d paid to the National
Merchant and its directors, officers, affiliates, principals, and guarantors (if Arbitration Forum in connection with the arbitration, as well as for any
applicable). reasonable attorneys' fees Incurred by Me prevailing party in connection with
15.3 Sectlon Neadirga. The section headings of [his Agreement are for suN arbitration. Any decision rendered in such arbitration proceedings will be
convenience only and do not define, llmi[, or describe the scope or intent of this final and binding on the parties, and judgment may be entered in a court of
Agreement competent Jurisdiction. Rules and forms of the Na0onal Arllitratlon Fomm may be
15.4 Assignment. We may assign this Agreement to an entity qualified under obtained and Gaims may be filed at any National Arbitra0on Forum office,
Payment Brand Rules to pertorm our odiga[iors under this Agreement. You www.arb-famm.com. or P.O. Box 50191, Minneapolis, Minnesota 55405,
cannot assign or transfer your rights or delegate your responsibilities under this telephone 1-800174-2371. Any arbitration hearing at which you aDPear will take
Agreement without our prior written consent Failure to obtain our consent may place at a location wIMIn Bridgehamp[on, New Vork. This arbitra[on agreement
result in a tertninatlon of this Agreement is made pursuant to a transaction Involving interstate commerce, and shall be
15.5 Parties. This Agreement finds you and us and our respective heirs, governed by the Federal Arbitration
Act, 9 U.S.C§§ 1-16. This arbitration
representatives, succeswrs (including those by merger and acqulsi[ion), and agreement aPPlies to all gaims now in existence or that may arise in the future.
permitted assigns. Vou represent and waraM that your execution of and Nothing in [his Agreement shall be construed to revent an
p y party's use of (or
pertormance under this Agreement (p In no way breaches, [ontravenes, violates, advancement of any gaims, defenses, or offsets in) bankruptcy or repossession,
or in any manner conflicts with any of your other legal obligations, including, replevin, judidal forecbwre or any other prejudgment or provisional remedy
without Ilmitation, your corporate charter or simiWr document or any agreement reating to any collateal, security, or other property interests for contractual
between you and any third party or affiliated entity; (ii) has been duN authorized debts now or hereafter awned by either party ~ the other. IN THE ABSENCE OF
6y all necessary action and does rw[ require any consent or other acton by or in THIS ARBITRATION AGREEMENT, VOU AND WE MAV OTHERWISE HAVE HAD A
respect of any third party; and (iii) Mat the person signing this Agreement on RIGHT OR OPPORTUNITY TO LITIGATE CLAIMS THROUGH A COURT BEFORE A
your behalf B duly authorized to do so. In providing services [o you, we will no[ JUDGE OR A ]URY AND/OR TO PARTICIPATE OR BE REPRESENTED IN
be acting in Me capadty of your agen4 parbter, or join[ venturer, and we are LITIGATION FILED IN COURT BV OTHERS (INCLUDING CLASS ACIlONS), BUT
acting as an independent contractor. Each parry agrees Mat any other party may EXCEPT AS OTHERWISE PROVIDED ABOVE, THOSERIGHTS, INCLUDING ANY
publicly disr]ose, Mrough press releases or otherwise, Me existence of Me RIGHT TO A ]URY TRIAL, ARE WAIVED AND ALL CLAIMS MUST NOW BE
business reWtionship Mat is the wbject of Mis Agreement Any wch disclosure RESOLVED'THROl1GH ARBITRATION.
may identify the partles 6y name but shall no4 without Me prior written consent 15.11 Force Makure. Neither party will be liable for delaK in processing or
of the non-disclosing party, include any of [he terms of Mis Agreement oMer nonpertormance caused by such events as fires, telecommunica8ons or
15.6 Severobility. Should arty provision of Ma Agreement be determined [o be utlliry or power failures, equipment failures, labor strife, riots, war, terrorist
invalid or unenforceable under any law, rule, or regulation, including any atbdc, rronpertormance of our vendors or wppliers, acts of God, or other causes
Payment Brand Rule, such determination will not affect Me validity or over which the respectlve parry has no reasonable control, except Mat nothing in
enforceability of any other provision of Mis Agreement. Mis Secton 15.11 will affect or excuse your liabilitles antl obligatlons for
15.7 Wahers. No term or condition of Mis Agreement may be waived except Chargebaclcs, refunds, or unfulfilled products and servkes.
pursuant [o a written waiver executed by Me party against whom such waiver is 15.12 Amendment This Agreement may be amended at any time by Bank
rough[ M be enforced. upon notice to you. Your continued submission of Transactions to us following
15.8 Entire Agreement The Payment Brand Rules, Operating Guide, such notice will be deemed [o be your acceptance of such ameMment
Applkatlon, and all schedules, and attachments to Mis Agreement are made a 16. Survival. The provisions of Sections 4.2, 4.4, 4.5, 4.6, 6.1, 7, 10.2, 11, 12,
part of Mis Agreement for all purposes. This Agreement represents the entire 14, 15, and 17 shall survive Me termination of Mis Agreement
understanding between Merchant and Bank with respect [o the matters 17. De0nNions.
contained herein and supersedes any prior agreements between Me Darden. This "Applkatlon` Is your statement of your finandal condition, Me characteristics of
Agreement shall prevail over Me [ertns of any agreement governing Me your business or organization that you have wbmitted to us on Me cover pages
Settlement Account. of Mis Agreement, and related informa8on you have submitted to us, including
15.9 NoNtes. Except as otherwise provided in this Agreement, all notices must credit and financlal infortnatlon, to induce us to enter into Mis Agreement wIM
be given in writing and eiher hand delivered, faxed, or mailed first class, you and Ma[ has induced us [o process your Transactons under [he terms and
postage prepaid or sent via overnight courier (and will be deemed to be given conditlons of this Agreement.
when w delivered or mailed), to Me addresses set forth below or to such other "Chargebeck" is a reversal of a Transaction you previousty presented to Bank
address as either party may from time [o tlme speciry to [he other party in pursuant M Payment Brand Rules.
writln9• "COmeyed Transactlon" is any Payment Transaction conveyed to a Payment
15. 10 Governing law; Waiver of Jury Trial; Arbltratlon. This Agreement Bend for settlement by such Payment Brand directly to Merchant
will be governed by and construed in accordance wRh Me laws of Me State of "Customer" is Me person or endry to whom a Payment Instrument Is issued or
New York without reference ro conflict of law provisions. Arty actlon, proceeding, who is otherwise entitled [o use a Payment Instrument.
arbita0on or mediation relating to or arising from Mis Agreement must be "Customer Informatlon° is personal informa[bn related [o a Customer or a
brought, held, or otherwise occur in Bridgehampton, New York. PLEASE READ Customer's Payment Instrument [hat is obtained by a Merchant as part of a
Bridgehampton National Bank 092011 Page 6 of 18
Transaction. Such information may include, but no[ be limited to, Customers merchant identified on Me cover page of the Agreement ("Merchant") to Bank at
name, address, phone number, date of birth, Payment Instrument amount arty tlme created or arising, Induding, without limitatlon, ro aft Indebtedness,
number and expiraton date, PIN data, and CVV2 or CVC2 data, antl any data obligations, and Ilabllities of Merchant arising under Ne Agreement
read, sranned, or otherwise obtained from the Payment Instrument, whether This Personal Guaranty is a guaranty of payment and no[ a guaranty of
printed thereon, or magnetically, electronically or otherwise stored Nerepn. collection. Each Guarantor agrees that he or she le IiaNe for Ne Indebtedness as
"Effectrve Dale" means Ne date [his Agreement takes effect pursuant ro Section primary obligor. Bank may proceed against one or more Guarantors whether or
10.1. no[ Bank proceeds against Merchan4 arty other obligors, or any mllateral
"Bank," "we; "our,° and "us" is The Bndgehampron National Bank, having its securing the Indebtedness. This Persorel Guaranty may not be revoked by any
principal office a[ 2200 Montauk Highway, &idgehampron, New York 11932. Guarantor and shall continue to be effective with respect to any Indebtedness
"Merchant,"you,° and'your"'s the Merrhant identfied in the Applicatlon on the arising or created after any attempted revocation.
cover page of the Agreement Each Guarantor arknowlectges Ha[ he or she will benef[ from the services and
"Member" is the entity providing sponsorship to Bank as required 6y all finandal amommodation provided by Bank to Merchant's business. EaU
applicable Payment Brand. Guaranor is familiar with, and has independency renewed books and records
"Payment Brand" Is any payment method provider whose payment method is regarding, He financial conditlon of Merchant and is familiar with the value of
accepted W Bank for processing, Induding, but not Ilmirod to, Visa, U.S.A., Inc., any and ali colateral intended ro be created as security for the payment of the
MasterCard International, Inc., Discover financial Services, LLC and other credit Indebtedness. However, no Guarantor is relying on wch finandal condition or
and debit card providers, debit network providers, gift cards, and other stored collateral, including, without limitaton, Ne Merchant's Reserve Amount (as
value and byatty program providers. defined in Sectron 4.6 of the Agreement) if any, as an inducement to enter into
"Payment Brand Rules" are the bylews, rules, and regulatlons, as they exist from this Personal Gua2nry.
tlme [o time, of the Payment Brands. The o6liga[bns of eaU Guarantor hereunder shall be enforceable irtespective of
"Payment Applkation" is a third party applicatlon used W Merchant that is the validity, legality, or enforceabiiiry of Merchant's obligations(induding vrithout
involved in the authorizatbn or settlement of Transaction Data. limitation, the expiretlon of any applicable limitations perimd) and shall not in any
"Payment Instmment" is an amount, or evidence of an account, authonzetl and way be affected W or mndidonal upon (p any action taken uMer the Agreement
established between a Customer and a Payment &and, or representatives or or the exerdse of any right or power [hereby mnferted; (ip the bankruptcy or
members of a Payment Brand that you amept from Customers. Payment similar proceedings involving or affectrng Merchant; (lil) arty assignment,
Instruments include, but are no[ limited ro, credit and debit cards, stored value modiflcatlan, alteration, or amendment of, or acttlitlon ro, Ne Agreement
cards, loyalty Ards, electronic gift cards, au[hanzed amount or access numbers, whether with or without suU Guarantor's knowledge or consent; (iv) any
paper certificates, credit amounts and Ne Ilke. renewal, extension, increase, modificatlon, alte2tbn or reanangemen[ of alt or
"Payment Instrument Information" is personal informatlpn related ro a Customer any part of the Indebtedness; (v) any adjustrnen4 indulgence, forbearance, or
or the CustomeYS Payment Instrument, that is obtained by Merchant from Ne compromise that might be grentect by Bank to Merchant or any Guarantor; or
Customer's Payment Instrument, or from He Customer in connection with his or (vi) any other aNOn, inactron, ar cirmms[ance whatsoever (with or without
her use of a Payment Instrument (far example a security code, a PIN number, or notice to or knowledge of or consent by suU Guarantor) Nat may in any manner
He customer's ZID code when provided as part of an address verificatlon vary He risks of such Guarzntor or might otherwise constitute a legal or
system). WiHOUt limiting He foregoing, such information may include a equitable defense or ctischarge of any surety or guarantor. The Guarantor hereby
Customer's name, Payment Instrument account number and expiration date, waives all defenses based on omurtences of the types described in clauses (i)
date of birth, PIN data, security code data such az CVV2, CVC2,and any data Nrough (vl) above.
read, scanned, or otherwise obtained from He Payment tnswmen[, whether Guarantors authorize Bank, from time to time, without notice or demand and
printed thereon, or magnetcally, electroniralN or mthenvise stored Hereon. without affecting Nelr liability hereunder, to (i) renew, compromise, extend,
"Payment T2nsattlon" is a transaction conducted between a Customer and amelerere, or otherwise change He time far payment of, or otherwise Uange
Merchant utlizing a Payment Instrument in which consideration is exchanged Ne terms of, He Indebtedness or Ne Agreement; (li) take and hold semrity for
between Ne Customer and Merchant He payment mf Ne Indebtedness or Nis Personal Guaranty, and exchange,
"Permitted CLsromer Information" is Customer Infortnatlon which is permitted [o enforce, waive, and release any such security, or take additbnai seariry; (iii)
be stored in an unreatlaWe format pursuant to Ne Payment erantl Rules. apply such security or Ne proceeds Hereof in such order or manner as Bank, in
Curtently, permitted information, as of He date of Nis Agreement, is limited ro its discretion, may determine; (iv) release, in whole or in part, Merdlant or any
Ne Cusromels name, Ne Payment InstrumenCS account number, and Ne Guarantor from IWbiliry for He payment of Ne Guaranteed Debt; (v) substitute
Payment Instrument's expiration date, if any." any one or more of the Guarantors or acquire additlonal gua2ntors; and (vi) ro
Retrieval Request" is a request for infortna[bn by a Customer or Payment &antl obtain and review suU informatlon (inducting without limitaton, Ne reports of
relating to a claim or complain[ concerning a Transactor. any consumer credtt bureau) as Bank may deem necessary ro confirm
"Security Standards" means any rule, regulation, standard or guideline published, Guarantors' creditworthiness.
provided, or amended from time ro time, by the Payment Brands or He Payment Guarantors hereby waive notice of (i) Ne inmmence by Merchant of any
Card Industry Security Standards Council, Induding but rwt limited to Ne Indebtedness; (ii) acceptance of His Personal Guaranty Agreement; (iii)any
Payment Card Industry Data Security Standards, Visa's Cardhokler Information renewal, modifxadon, extension, or amenctmen[ of Ne Agreement or of any
Semriry Program, DiscoveYs Information Security & Compliance Program, other instrument or document pertaining ro ail or any part of Ne Irdebtedness;
American Express's Data Security Operating Policy, MasterCard's Slte Data (iv) He accurtence of arty breach or defauh under Ne Agreement; (v) Bank'
Protection Program, Visa's Payment Applicatlon Best P2ctlces, , Ne Payment transfer or dispmsition of He Indebtedness, or any part Hereof;(vi) sale or
Card Industry's Payment Applica[irn Data Security Standard, Mas[erCard's POS foredosure (or posting or advertising for sale ar forecbsure) of any mfla[eral far
Terminal Security program, the Payment Applicatlon Data Security Standard, and He Indebtedness; (vii) protest, proof of non-paymen4 or tlefautt bl' Merchant;
Ne Payment Card Industry PIN Entry Device Standard. and (viii) any oUer actlon a[ arty time token or omttted by Bank. Guarantors
"Servke Provider" is any party Ha[ processes, stores or transmits Customer hereby waive all presentment demands for performance or payment, protests,
Information on your behalf, including, but not limited to your agents, business notices of protest, nonpertormance, dishonor, default and non-payment, and atl
partners, contractors and subcontractors. other notices ar formalities.
"Stored Value Transaction" is a Payment Tansaction utilizing a Payment This Personal Guaramy shall be binding on, and inure to Ne benefit of, Ne
Instrument issued by or on the behalf of a Merchant in which a Customer parties hereto and Neir respective heirs, adminis[re[ors, I al re
eg presentatives,
receives value from Ne Merchant in exchange for mnsidera[lon from He successors, and assgns. Guarantors may no[, without the prior written consent
Customer. of Bank, assign any of Nelr rights, powers, dudes, or obligations hereunder.
"Trnsacton" is a Stored Value Transaction and/or a Payment Transaction. Guarantors jointly and severally agree to pay reasonable attorneys' fees and all
"Trnsacton Data" le Ne written or elearonk record of a Transaction. other costs and expenses which may be inarted W Bank in the enforcement of
Nis Personal Guaranty. Bank'righ[s hereunder shall be cumulative of any and all
PERSONAL GUARANTY oMer rights Nat Bank may have against Guarentors.
To induce Bank to enter into Ne foregoing Agreement (as He same may
hereafter be renewed, modified, extended, or amended, [be "Agroemen['~,and MERCHANT OPERATING GUIDE
far other good and valuable consideadon, the receipt and sufficiency of which GENERAL RULES APPLICABLE TO ALL TRANSACTIONS
are hereby acknowledged, the guarantors named on He cover page of Ne
Agreement (each a "Guarantor" and collectively, [he "GUaranrors'~ Jointly and 1. ACCEPTANCE OF CERTAIN PAYMENT INSTRUMENTS
severally, irrevocably and unconditionally guarantee ro The Bridgehampton In offering Visa and MasterCard payment optlons to your Customers, you may
National Bank ("Bank's and its sumessors and assigns Ne due and punctual elect any one of the following optlons: (i) amept all types of Visa and MasterCard
payment of Ne "Indebtedness" (hereinafter defined). As used herein, He term payment Instruments -Induding consumer credit and debiVcbeck cards, and
"Indebtedness" means all indebtedness, ohliga[ions, and IiahilRles of Ne
Bnd9ehampton National Bank 092011 Page 7 of 18
commercial credit and debiVchedc ards; (ii) attept onN Visa and MasterCard are subject [o modHicatlon from time to time. CortsequentN, the folowing Is onN
credH cards and commercal cards (if you choose [his optlon you must aaep[ all a partial list of circumstances that might give rise N Chargebatla:(i) a Customer
consumer credit cards (but not consumer debiUchedr cards) and all commercial attount number is inmmet[ or otherwise imralid; (il) an authorizatbn/approval
card products, including business debiVcheck cards; or (Iii) accept onN Visa and code was not received or other required authorizaton was not obtained; (Ili) an
MasterCard consumer debiUchedc ards (if you dwose this option you must authorhaUOn/aDMOVaI code was obtained for the wrong amount or wrong date;
accept all consumer dehiUUeck acct products (but not business debH/chedc (Nj the Customer never received the merdwndise/service requested; (v) a
cards) and will not aaep[ any kind of credit ards). The aaeptance optlons Customer's refund/vedit was processed as a sale; (vi) the Transacton Data is
above: appN only fA U.S. domestic Visa and MasterCard Payment Trensaclians for the wrong amount; (vii) a Cusomer was never credited for returned
and, as such, they do not appN N YCSa or MasterCard Payment InsWments merchandise or a anceled order, (vile the Payment Instrument was expired,
issued by rwrfU.S. banks. In other wards, if your Customer presents a Visa or munterteit, altered, or invalid at time of saki; (ixj a Payment Transacton or
MasterCard Payment Instrument issued from a European or Asian bank, for Conveyed Transacton was deposited more than once; (x) the Customer did not
example, you must accept that acct just as you would any other acct (provided auMOr¢e or consent to the Transacton; (xi) the signature on [he Transaction
you receive a valitl authorizatlon and confine the identity of the Cusomer, etc.), receipt does not match the signature on the Payment Instrument (if required);
regardless of the acceptance option Uolce you have made and even if you have (xll) Ne Payment Instrument was not imprinted or Hs magnetic strip was no[
elected no[ N attep[ that type of Payment Instmment from U.S. issuers. If you electronially recorded (for example, "swiping" or "tapping" a Payment
choose N limit Ne types of Visa and MasterCard Payment Instruments you Instrument) through a terminal; (xiii) the Customer asserts any disputes, daim,
accept, the following rules apply N you: (i) you must display appropriate signage counterclaim, defense or offset against you; (xiv) the TrartsaNOn Data or any
to indiate acceptance of the limited acceptance category you have selected material Informatlon thereon Is illegible, Incomplete, inaaurete or unsigned, or is
(that is, accept onN debiUcherk acct products or gnry aedH and mmmerclal not delivered N us within the required time IIf11115; (xvj Ne Transamon Data rs
products; (ii) H you elect limited aaeptance, any Transaction Data wbmitted fraudulent or does no[ represent a bona fide bansamon in the oMinary course of
into interchange outside of the selected product ateggry will be assessed the your business, or is sub)eR N any claim of illegality, negligence, dishonesty or
sgndard interchange fee applkable [o [hat acct prgduct and may also have offset; and (xvij you have failed N provide miles of Transaction Data requested
additlonal fees/surcharges assessed; and (iii) additional Visa and MasterCard by us (retrieval request) within the prescribed tlme perbd.
Rules that may be apdiable to you may be viewed On their respective wehsites. 6. DISPURNG CHARGEBACKS
2. AUTHORIZATION/APPROVAL CODES If you have reason to dispute or respond N a Chargebatlc, then you must do so
All Payment Transactions and Conveyed Transactions require by the date providetl 6y u5 on our report N you. We are not required N
authorization/approval codes. You must request and receive an investigate, reverse or make any adjustment to arty Chargeback when thirty (30j
auhorizaton/approval code for the NNI amount of the Transamon. An calendar days have elapsed from the date of the Chargebatlc All responses to
authorization/approval mile indicates (i) the availability of credit on the Payment Chargebacks must be in writing, and must contain the folbwing Informatlon: (i)
Instrument at the time of inquiry, and (iij that the Payment Instrument aaount date of debit/credi[ atlvke; (IIj company ase number; (iii) total amount of
number is valid. It Is not a promise or a guarantee that you will receive payment Chargeback; (ivj date and dollar amount for which the Transaction Data was
for that transaction. It does not warant that the person presenting the Payment originalN submitted (v) H known, the date and authorization approval code; and
Instrument has Ne authority m do so. (vi) any supportlng daamen[atlon to subs[antlate your daim. You should include
3. REFUNDS/CREDITS a dated cover letter detailing reasons for requesting a review of the Chargeback
You must disdose your re[urn/refuntl poky N your Customers. You must You should retain a copy of the correspondence and ad daumentation for your
complete a credH for the total amount of the refund and identity the files. You should also retain proof that we received your response.
merchandise being reNrned aM any shipping and handling charges being 7. DATA SECURITY AND PRIVACY
returned. You must imprint or recortl the credit voucher with Hie same Payment Vou agree ro post and maintain on all your Web sites beN your consumer data
Instrument used to make the original purchase. For retail Payment Transamons privacy policy (which must compN with all Payment &and Rules, regulatrmre and
and Conveyed Transactions, the aedR wuUer must be dated and signed by the guidelines) and your method of trarcadlon security. You may not retain or store
Customer and the appropriate copy provided N the Customer. Cash refunds CVV2/CVC2 data or PIN data subsequent N the authorization. You must compN
shouk never be issued for Payment Trertsactlons or Conveyed Transactions, with all Security Standards published by Hie Payment &ands and the PCISSC
unless required by Ww. If you fail to follow these procedures, you may be unable inducting, but not limited to, Visa's Customer Informatlon Seariry Program
to rebut a Chargebeck from the Customer for failure to issue a refund (even if ("CISP), Mas[er('ard's Security Data Program (MSOP) and the Payment Card
you actually gave Ne refund by ash or diedc). Paperwork is no[ necessary for Industry Data Security Standard (PCIDSS).Pursuan[ fo the Security Standards,
an even exchange. For an uneven exchange, complete a credit for [he total you must, among other things: (i) Instatl and maintain a working network firewall
amount of the merchandise being reNrned and complete a new Transaction to protect data accessible via the Internet; (iij keep security patches up~[o-da[e;
receipt for any new merchandise purchased. You canrwt process a credit or (iii) encrypt shred data and tlata sent over open networks; (IV) use and update
refund without having completed a previous purchase Tansaction with the same anti-virus software; (v)resbict aaess to data by empbyees who are on a "need-
Customer. to-know" besis;(vi) assign a unique ID N each person with computer access to
4. PROCESSING OF TRANSACRON DATA data; (vii) not use vendor-supdied defaults for system passwords and other
You must submit Trensadion Data (inducting credit vouchers) to us on or before security parameters; (viii) track access to data by unique ID; (ix) regularly test
the next business day after [he date of the Trensadion. Late submission Of semriry systems and processes; (x) maintain a policy that addresses information
Transaction Data may revel[ in higher Payment Brand fees and interchange security for empbyees and contractors; (xi) restrict physial aaess N Customer
rates, Chargebacks and other negative consequences You must not submit information; (xii) when outsourcing adminLStratbn of informaton asses,
Payment Transactions or Conveyed Transactions for payment until the goods are networks, or data you must retain legal contrd pf proprietary information antl
delivered, shipped, or the services are performed (except as oherwise provided use limited "need-to-knoW access to wU assets, networks or dam; antl (xiii)
in Ne Merchant Agreement, and onN if you have notified us Nat you are doing reference the protection of Customer Informatlon and compliance with the
so on your apdicatlon or otherwise in writing). If Ne Customer disputes being Security Standards in contracts wiN other sendce providers. You must notiN
charged for merchandise or services before receiving Nem, Ne resuH will be a Bank of arty Nird party vendor wiN access to Customer Information, and you are
Chargeback to you. We may from tlme to time contact Customers N verify Nat responsible for enwring Nat all third party vendors are compliant wiN Ne
Ney have received goods or sevices for which Transactions have been Security Standards, to Ne extent appliahle. The Semriry SNndards may require
wbmit[ed. You annol present for processing any Transaction Data that was no[ Na[ you engage an approved Nird party verxbr to conduct quarterly perimeter
originated as a rewH of an act directly between the Customer and you. You sans and/or an on-sde security review of your systems in order to be compliant
anno[ present for processing any Tansactbn Data you know or should have Visa and MasteKard's individual requirements far such sans or semriry reviews
known N be (p trauduien[ or (IIj no[ authorized by the Customer. You will be can be accessed Nrough Ne Visa and MasterCard websites a[ www.Visa.mm
responsible for Ne actions of your employees while ceding in your empby. The and www.Mas[erCard.com. The Payment Brand rules provide Nat Customer
collection and payment of all federal, state aM bcal [axes is your responsibility. information and Transacon Data is awned by [be Payment Bend and Ne
Taxes collected must be included in Ne total transaction amount and no[ Customer. Bank also asserts wme ownership rights in Hie Transacon Data N
collected separeteN by another form of payment You must submit one Ne extent it belongs N tfre Payment Brand system. You are responsible for
Transaction Data record for all goods and services sold in Ne same transaction. securing Customer information. You will not use any Payment Instrument or
All available information about Ne sale, including any handling and shipdn9 Customer Informatlon other Nan for Ne sole purpose of completing the
charges, must be acare[ely recorded. You must provide [o Ne Customer a true transaction authorized by Ne Customer for which Ne information was provided
and completed record of [he Transamon. to you, or as specifically aAowed by the Payment Brand Rules, or required by
5. CHARGEBACKS law. Bank Or any Payment Bran0 may Inspect Merchant's premises and
Chargebacks of Payment Transactions and Conveyed Transactions may occur computers, aM Ne premises and computers of arty company Ne Merchant has
under a variety of circumstances, as dictated by [he Payment Brand Rules, which contracted wiN, far the purposes of verifying Na[ Customer information is
Bridgehamp[on National Bank 092011 Page a of 1B
I '
secureN stored and processed, and Is not used far arty Wrpose other than photocopy of a driver's license. You cannot retain or srore full magnetlc-stripe
processing the transactions to which It relates. data, CW2, CVC2 codes or PIN data after the authorization of a Payment
8. CERTAIN MERCHANT PROHIBITIONS Transaction or Conveyed Tansactron, except as required to complete the
You may not (i) accept Customer payments for previous Visa or Visa EleNon transmissbn of such Transaction Data ro us.
charges; (II) require a Customer ro complete a Wstcartl or similar device that 3. FORGERIES/COUNTERFEIT PAYMENT INSTRUMENTS
incudes [he Customer's account number, Payment Instrument expiatron date, You should examine all notkes received Rom us or Rom a Payment Brand ro
signature, or any other account data in plain view when mailed; (iii)add arty tax help you determine whether a Payment Instrument presented is counterteit You
[o a Transaction unless applicable law expressly requires that you be permitted should attempt ro retain the Payment Instrument while making an authorizatlon
to impose a tax; (iv) request or use a Payment Irustrument account number for request and then match any signature on the Payment Instrument with Ne one
any purpose other than as payment for its goods or seMCes, except ro support on the Transaction receipt. You should compare the account number on the
Visa's Health Care Eligibility SeMce or Repaid Load Network; (v) disburse funds Payment Instrument to the account number printed on the receipt or displayed
in the form of travelers cheques, if the sole Wrpose le to allow Ne Customer ro on [he terminal. You should examine each Payment Instrument [o see if it looks
make a cash purchase of goods or services Rom you; (N) accept Visa or Visa genuine. You should use reasonable, peaceful efforts ro recover any Payment
EleNOn for Ne Wrchase of stop; or (vip acce0[ Visa Electron far a manual rash [nsWment if you have reasonable grounds ro believe such Payment InsWment
disbursement. You understand and acknowledge that all Visa BIN information is counterteit fraudulent or stolen. You will be solely responsible for your actions
provided by us ro you Is proprietary and confidential information bebnging to in recovering/retaining Payment Instruments.
Visa. Vou must not disdose Visa BIN Information ro any third party without prbr 4. TRAVEL AND ENTERTAINMENT SERVICES
written permission from Visa. Vou understand and acknowledge that Visa may A[ your opton and as specified in the applicable sections of the Payment &and
impose conditions on, or permanen[ry prohibit you Rom parficipating in the Visa Rules, Merchants may parodpa[e in one or more spedalized travel
program for any reasons R deems appropriate, inducting, but not limited ro (i) Aentertainment services offered by arty of the Payment Brands. Merchants
Raudulen[ activiry;(ii) submitting Transaction Data that does no[ result Rom an offering travel and entertainment seMCes must institute and compty with Ne
act between you and the Customer (laundering); (iii) entering into this procedures set forth in the Payment &aM Rules.
Agreement under a new name with the Intent ro circumvent provisions of the
Rules; (iv) actlviry [hat rouses us [o repeatedN oblate Ne Rules; any other SPECIALIZED RULES FOR MAIL ORDER, TELEPHONE ORDER, AND
acdviry that may result in undue economic hardship or damage to the gootlwill of INTERNET TRANSACTIONS
the Visa system.
1. COMPLETION OF SALE
SPECIALIZED RULES FOR RETAIL TRANSACTIONS Vou are responsible for determining [hat the purchaser u the person whose
name appears as the Customer. If an account number is transposed into an
1. PRESENTATION OF PAYMENT INSTRUMENTS invalid or inaauraro account number, the sale will result in a Chargebeck. Vou
You or your employee must examine each Payment InsWment presented to must be authorized by us ro accept Payment Instruments far mail, telephone,
determine that the Payment Instrument presented le valid and has not expired. Internet and pre-authorized orders, and you must have noted such on your
You must exerdse reasonabe diligence to determine that the authorized apDlicetron ro us. All information that wmultl normally be imprinted from a
signature on arty Payment Instrument) presented cortesponds ro the Customers Payment Instrument must be dearly written in the appropriate areas on the
signaNre on the Transaction Data. You must no[ honor expired, invalid, aRered, order or Transaction receipt "Mall Order' or "Phone Order" should be written on
counterteiL or revoked Payment Instruments nor any Payment Instrument the signature line of the Transaction receipt
presented by any person other than the proper Customer as evidenced by the 2 RECURRING TRANSACTIONS
authorized signature on the Payment Instrument. A Customer may authorize fror retorting transactions, you must obtain a wrlRen request Rom the Customer
another person [o use his or her Payment Ins[mment for purchases, provided for the goods and seMCes ro be charged ro the Cusomers acooun[, spedfying
Ne user's signature appears on the back of Ne Payment Instrument The Ne Requency of the recurring charge and the duration of time during which such
signature on the back must match Ne one on Ne Tartsacomn Data. If the charges may be made. Vou will not complete any recurring bansad'an after
Payment Instmment is not signed, in additlon ro requesting an authortratron, you receiving: (i) a cancellatlon notice from the Customer (ii) notice from Bank or any
may review Wsitive identification as albwed by kxal and state law, such as a Payment Brand that the Payment Instmmen[ Is no[ ro be honored; or (iii) an
passport or driver's Ioense, ro confirm that the user is the Customer, record the authorization/approval code that the Payment Instrument is not ro be honored.
information and require the Customer to sign the signature panel of Ne Payment You must indude in your TansarHOn Daly the electronic indlcaror Na[ the
Instrument prior ro comdefing the Tansactbn. You should no[ complete a hansadon is a recurring transaction.
Tansacoon if the Customer does not present his or her Payment Instrument or if
you cannot obtain an electronic swipe record of Dhyskal Imprint Of the Payment SPECIALIZED RULES FOR STORED VALUE TRANSACTIONS
Instrument ([his includes mail, telephone and intemet orders). By the wbmissbn
of any Transaction Data ro us, you will be deemed to wamdnt Ne Identity of Ne 1. PAYMENT INSTRUMENTS & PACKAGING
purchaser as the authorized holder of Me Payment Instrument, and fi the You may be obligated ro purchase Stored Value Payment Transaction Payment
Customer later denies making [he purchase, you will not be able ro rebut Ne Instruments ("Gift Cards) Rom us or pay us a data transfer fee in lieu thereof.
Chargebedc. Please check the pricing schedule of your Merchant Agreement ro see if these
2. COMPLETION OF TRANSACRONS requirements apply ro you. If you are obligated ro purchase GiR Cards Rom us or
You must use a suitable imprinter ro legihty imprint Payment Instruments on if you elect to do so, we will artange for the Gift Card production and may, at our
Transaction Da[a or, capture the informatlon from the Payment Instrument by option, invoice you therefore, in lieu of electrmnicalN debitrng your auount Any
electronic tlata capture. A photocopy of the Payment Instrument is rro[ an such invoice will be payade upon receipt Gift Cards, Packaging and Point-of-
accep[able substltute for an imprint. If Ne account number is manualty keyed purchase marketlng materials are available and priced on a per bundle basis,
into the terminal, you must imprint the Payment Instrument. Your name, based on curtent rates. All production and delivery timeftames and costs
location, dry antl state must match the Merchant plate on Ne imprinter. You provided by us are estimates onN and we do not guarantee any specific date of
must notify us of any changes ro Ne information on the Merchant plate. [n delivery or prbe for GiR Cards produced by Nird parties. You are responsible for
addition to having the Customer sign the TransaNOn receipt, The Transaction all production costs and delivery charges for GiR Cards. The farm and content of
date and dollar amounts and other informatlon must be clearly written or printed all GiR Cards will be subject ro our approval.
on [he Transaction receipt or captured by an eledronb device. A brief descriptlon 2 COMPLIANCE AND WARRANTIES
of [he goods sold or seMCe rendered must be provided on the Tansa[timn You are coley responsible for complying with all applcable laws relating ro your
receipt Authorzafion/approval code numbers must be clearty recorded in the Gift Card program and you agree [o indemnify and hold us harmless from any
appropriate place on the Tansaction receipt Never ctrde or underline any loss, damage or claim relating ro or arising out of any failure ro comply with
informatlon on Ne Transaction receipt Every Transacton Receipt and credit applicable laws in connection [herewith. You are solely responsible for moniroring
voucher must be imprinted (or printed Rom electronic tlraR capture equipment) Ne legal devebpmenCS applicable [o the operation of your 6iR Card program and
wiN the Cusromer's truncated account number and Merchant name. You will ensuring that your GiR Card program complies fully with such requirements as in
give the Customer a true and completed copy of the Transaction Receipt or eRect from time to Ume. Merchant acknowledges that Bank cannot reasonably
appropriate facsimile. If the Customers copy of Ne Transaction receipt or aedi[ be expected ro monitor and interpret the Wws applicable ro ICS merchants, and
voucher is printed Rom electronic draft capture equiDment/terminal, it must has no responsibility ro monitor or interpret laws applicable [o Merchant's
comply with all applicable Payment Band Rules and laws. You cannot require business.
Customers to provide any personal information as a condition for honoring 3. FRAUD
Payment Instruments unless otherwise required by Ne Payment Brand Rules or You hereby agree (i) Na[ you are responsible for ensuring Nat all GiR Cards
law. Personal informa[on incudes, but is not limited ro, a home or business require actlvatlon a[ the Wint of sale; (ii) ro provide notificatbn in writlng ro
telephone number, a home or business address, a social security number, or a Bank of any fraud losses by type by fifteen days following Ne end of each
eridgehampton National Bank 092011 Page 9 of 18
calendar quarter; (iii) that you will be soleN responsible for any and all value Regula[ons conceming your aaepmnce of Discovery Network Cards and the
adding and Raud kisses and expenses rebtlng to or arising from your GiR Card; preparation and submission of Saks OraRs.
(N) to discourage transportation bf groups of sequentially numbered GiR Cards; 3. Submicsbn of Saks DraRS. Except as provided in this Discovery
and (v) to deactivate or otherwise remove all value from Gift Cards that have Network Program Agreement, the terms and conditions governing your
peen compromised. You will be responsible far arty fraudulent trans -actions submission of Saks DrafCS and Gedi[ Drafts using the Discovery Network Card
involving your Gift Cards, induding, without limi[atlon, the unauthorized are as specified in the MAA Vou agree to transmit Saks Drafts to us each
activatbn of GIft Cards, reloading of existing Gift Cards (whether pursuant to a business day in the format directed by us and by the transmissbn deadline.
manual telephone order or otherwise) will additional value, or the unauthorized Additional requirements for Discovery Network Card Sales W mail, telephone
replicatlon of Gift Cards or Gift Card data far fraudulent transactons. Bank and Internet are described in the Operatlng Regulatons and MAA.
provides a number of toots and options to help Merchant reduce Merchant's risk 0. Telephone, Mall Order arM Intemet Discover® Network Card
of exposure for fraudulent transaQbns. We urge you to make use of any arM all Sales. Except as provided In this Discovery Network Program Agreement, the
of such tools as we may offer in order th help reduce the risk of such terms and conditons governing your processing of telephone, mail order and
transactions. In particular, we recommend that you utilize only those vendors Intemet Discow;ry Network Card sales using the Discovery Network Card are
that have been certifed by Bank as having appropriate security measures in as specified in the MAA. You agree to obtain our prior approval before accepting
place to reduce the risk of counterteit Gift Cards and the loss of sensitlve Gift am/ Discovery Network Cards Saks over the Intemet Vou agree to comply with
Card information that might resuk In unauthorized transactons, and, we our data security and encrypfbn requirements in the Ope2dng Regulations and
recommend that you promptly and frequently reconcile Me transaction reports MAA, induding our procedures for Discovery Network Card transactions over the
we provide to you against your own internal transaction records, and [o report Intemet and Discovery Network Card transactons on your web site.
any unauthorized transactons [o your account representative a[ Bank. Because 5. Settlement of 7ransactlons. Except as provided in this Discovery
manual GIR Card transactions (i.e. those involving the activatlon or rebading of Network Program Agreement, the terms and conditions governing Settlement for
Payment Irustruments over the telephone in uses where your terminals may be your transactions using Discovery Network Card are as spetlfied in the MPA. As
unavailable) pose a higher risk of po[emial fraud, we urge you to pay spatial used in this Agreemen4 the [ertn "Settlement" means the rocedure
p by which we
attentlon [o these transactions and recondle them on an even more frequent will reimburse you for the amount of each valid Discovery Network Card sale for
basis. In the event that you do not recondle your transaction reports and which you submit Saks Drafts ro us that represent a purchase from your
promptly report any suspicious actlviry [o us, Bank may not be able to assist you establishment with a Discovery Network Card, minus an amount equal to the
in canceling fraudulently activated or reloaded GiR Cards, or in otherwise sum of any Chargebacks, any credits to Discovery Network Cartlhokers Mat you
identifying Me source of any fraud. submit th us, and the fees due m us and plus or minus adjustmenLS Mat we
make [o reconcile or cortetl: errors in your Sales Drafts. The timing for your
SPECIALIIED RULES FOR DLSCOVER FULL SERVICE PROCESSING Settlement payments i5 described in the Operetrng Reguktlon5 antl MAA, unless
otherwise indicated by us in writing. We may, at our discretion, change the
PREFACE tlming of your Settlement payment upon fwe (S) oleMar days' advance written
Bank (sometimes referred to as `We" or "us'~ and Discover Finandal Services LLC notce if required by Discovery Network Vour terminals or pointof--sale devices
("DLSCOVery Network's have initiated a program ([he "Program) to albw Bank must be programmed will Me Merchant Account Number Mat we assigned to
[o provide merchant processing seMces for Discovery Network Card you if you are [o receive Settlement for Discovery Network Card sales. You are
transactions. These Terms antl Contli[bns (including Me Supplemental responsible for the programming of your terminals to accept Discovery Network
Discovery Network Merchant Processing Opeatrng Procedures contained herein Card sales If a thiM party programs your [ertninals, you are responsible for such
(sometimes refered [o as the "Operating Regula[ions'~ (collectiveN, the third party's acts and omissions in connection [herewith, induding, without
"Discovery Network Program Gulde'~), together with Me Discovery Network Iimitatlon, any payment of your Settlement amounts to the incortect party.
Merchant Processing Application and Agreement delivered herewith (the Promptly following the completion of programming services, you agree to
"Program Application"; and together wth the Discovery Network Program confirm receipt in your Settlement Account Settlement amounts for Discovery
Guide, the "Discovery Newark Progam Agreement" or the "Agreement"), Network Card sales accepted by you. If you do not receive Settlement amounts
compose an agreement between Bank and you governing your acceptance of for Discovery Newark Card sales in accordance with Me Agreement and
Discovery Network Cards, and Bank's prowslen of merchant services to you in Opeatlng Regulations, you must contact us Immediately or risk non-payment for
connection with Discovery Network transactions. By accepting Discovery such Discovery Network Card sales. You must compN will each of the terms
Network Cards, you agree to be bound W thB Discovery Network Progam and conditions in this Agreement
Agreement Capitalized terms used but not otherwise defined In Mis Discovery 6. 7ransardion Fee and Other Fees.
Network Pragam Agreement have the meanings given them in [he agreement A. Your service fees are indicated in the Service Fee SUedule of your
among Bank, you and the Bank identified therein contained in the Merdiant Progam Application (the "SeMCe Fee Schedule°J or otherwise provided th you in
APPlkatron And Agreement, the Ope2trng Procedures and Me Schedules writing by us. Those fees are based upon, among other Mings, assumptions
thereto, and the documenhs incorporated therein, each as amended from tlme [o assoda[ed will your designated Combined Card Sales Estlmated MonthN
time, which collectively constitute the agreement among such parties concerning Volume, Higher[ TCket, and Typical Ticke[/Sales Amount as set forth in this
Credt Card transaction processing and related matters (the "MAA'~. Bank will Discovery Network Program Agreement and your meMad of doing business. In
provide Services [o addition, if you exceed these amounts, we may hold your funds and/or interrupt
you in connection with your acceptance of Discovery ar terminate Services. Any request for an increase to these amounts is
Network Cards as provided in this Discovery Newark Program Agreement contlngen[ upon our prior written approval. If the Estlmated MonMly Volume,
TERMS AND CONDITIONS FOR GRD ACCEPTANCE Highert Tickef/SaleS Amours[ or Typkal Ticket/Saks Amours[ are no[ a5 expected
or if you signifcantN alter your method of doing business, we may without prior
1. Incorporation of MAA. The [ertns and conditions of the MAA, as notice adjust your fees, or change any other amount we charge you far
amended from time to time, are incorporated into Mis Discovery Network acceptlng Discovery Network Cards. In addition, we may Rom tlme to time
Program Agreement by reference and are hereby made a part of Mis Discovery increase our fees or charge you additional fees for any other reason by delivering
Newark Progmm Agreement. Except and [o the extent provided below in Mir [o you written notice of such increased or additional fees thirty (30) days poor [o
Discovery Network Program Agreement, the terms and conditions of the MAA Me effective date of any such Increase or addition of fees. Your continued use
(which we may amend Rom time to trme as provided in the MM) shall govern of our Services after the effective date of arty increase shall be deemed
your acceptance of Discovery Network Cards, and Bank's provision of SeMCes acceptance of [he increased fees for Services, throughout Me term of Mis
[o you in connection will Discovery Network Card transactions. This Discovery Agreement Charges for which you have no[ obtained Authonzatlon or Ma[ are
Network Program Agreement applies soleN to your acceptance of Discovery no[ submitted eletlronkalN are subject to supdemen[al fees.
Network Cards, and shall no[ amend the terms of the MAA in any respect except S• You must notiry us in writlng of any enor or omission in respect of your
as spedficalN set forth herein with respect M Discovery Network Cards, and not Serwce fees or other fees or payments for Charges or Credits within forty-five
with respect to any other Credit Cards. days of the date of the statement containing such ertor or omission. If you do
Z Acteptarrce of Discovery Network Cards. Except as provided in this not do so, the statement will be conclusiveN settled as complete and cortect in
Discovery Network Program Agreement, [he terms and conditlons governing respect of such amounts, provided Ma[, if we de[ertnine at any time that we
your acceptance of Discovery Network Cards are as spedfed in the MAA. You have paid you in error, we may effect a Chargeback to recover such ertoneous
agree [o attep[ Discover® Network Calls a[ all of your establishments in payment
payment for purchases of goods and services from all Discovery Network ~ntFade% Except as provided in Mis Discovery Network Program
Cardholders who want to use Discover® Network Cards at your establishment Agreement, Me terms and conditions governing the fees payable by you to us for
You agree to folbw the procedures In Mis Agreement and in Me Operatlrg the provision of Services related to your acceptance of Discovery Network Card
are as specified in [he MAA. The folowing terms and conditions govern the fees
Bodgehamp[on National Bank 092011 Page 10 of 18
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payable by you to us far the provision of Services related to your acceptance of THEORY FOR LOST PROFITS, LOST REVENUES, LOST BUSINESS
Discovery Network Card: OPPORTUNITIES, EXEMPLARY, PUNITIVE, SPECIAL, INCIDENTAL,
A. You shall be charged fees for the SeMCes, which shall be calculated and INDIRER OR CONSEQUENTIAL DAMAGES, EACH OF WHICH IS HEREBY
payable pursuant M MI5 Discovery Network Rogram Agreement and any EXCLUDED BY AGREEMENT OF THE PARTIES, REGARDLESS OF
atldi0onal pddng supplements. You agree [o pay any fines Imposed on us by WHETHER SUCH DAMAGES WERE FORESEEABLE OR WHETHER ANY
Discovery Network resulting from Chargehacks and any other fees or fines PARTY OR ANY ENTITY NAS BEEN ADVISED OF THE POSSIBILITY OF
imposed by Discovery Network with respect to your acts or omissions. SUCH DAMAGES.
8. You acknowledge Mat we will process your Discovery Network Card (N) NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
transactlons at Me Qualified Discount Rate only when your transactors meet CONTRARY, THE CUMULATIVE LIABILITY OF PROCESSOR FOR ALL
cerMin vi[eria se[ by Discovery Network and us. When your Ord transactions LOSSES, CLAIMS, SUITS, CONTROVERSIES, BREACHES, OR DAMAGES
fail to meet [hose qualificatlon cntena, we will process your transactions at Me FOR ANY CAUSE WHATSOEVER (INCLUDING, BUT NOT LIMITED TO,
higher Non-Qualified Discount Ra[e (or, in certain circumstances, a[ an THOSE ARISING OUT OF OR RELATED TO THIS AGREEMENn AND
intermediate Mid-Qualifed Discount Ra[e) indicated in Me Program Application. REGARDLESS OF THE FORM OF ACRON OR LEGAL THEORY SHALL NOT
C. The fees for Servkes may be adjusted to reflect increases or decreases by EXCEED, (I) X50,000; OR (II) THE AMOUNT OF FEES RECEIVED BY
Discovery Network in fee levels, assessments and other Discovery Network PROCESSOR PURSUANT TO THIS AGREEMENT FOR SERVICES
fees or to pass Mrough increases charged by third parties for online PERFORMED IN THE IMMEDIATELY PRECEDING 12 MONTHS,
communications and similar Items. All such adjustrnents shall be your WHICHEVER IS LESS.
responsibility to pay and shall become effective upon Me date any such change 10. Factoring. You agree Mat you will not factor any Discovery Network Card
is Implemented by Discovery Network or Mird party. sales. See Operating Regulations for complete cteMils regarding what conStiN[es
e. Retentbn of Records. You agree [o keep an original copy of all Sales fac[onng and the liability you incur ff you factor any Discovery Network Card
Drafts, mailftelephone order forms, documentation required in the Operabng sales.
Regula[ons and other reWrect document(s), e.g. shipping invoices, for no less 11. Other Ob1lgaNOm.
Man Mree hundred and sixty flue (365) days from Me Discovery Network Card A. CanfldentWliry. Vou must keep confldentral and not disrbse M any Mird
transaction date, or one hundred and eighty (180) days from the date of party Me terms of Mis Agreement and any information Ma[ you receive from us
submission of Sales Drefts, whichever is alter. You also agree M keep microfilm Ma[ is not publicN available. WiMout limiting Me foregoing, you must not use,
or other copies of Sales Drafts for no less Man Mree (3) years from Me date of store or disclose any such Informatron ar any Discovery Network Grdhokler or
Me Discovery Network Card transactlgn. You agree to provide us wiM a copy of Discovery Network Card tranuctlon informatlon other than as necessary to
any Sales Drags, mailftelephone order forms and Me documenatron required in complete a Discovery Network Card transaction, including any retentlon or
Me Operatng Regulatlons wlMin ten (10) calendar days of our request. storage of IIS[s of Discovery Network UM numbers or Discovery Network CaN
9. Term and Termination. transaction information and any use of or aaess ro Discovery Network
A. Termination. We may terminate this Agreement a[ any time and for any Cardholders' personal information far marketlng and/or other purposes.
reason W gNing you Mirry (30) days prior written notice. We may terminate B. Non-Dlscrlminatian. You must not adopt arty practice Mat dLSCriminates
immediately and without suN notice if you have materially breached Mis against or provides for unequal treatment of any person who elects to pay using
Agreement or due M an Event of Default as outlined in Me MAA, or if Me a Discovery Network Card versus any other credit, diarge, debit, stored value or
Discovery Network Card sales conducted W you, Me goods or services sold by other payment Discovery Network Card accepted by you, except wiM respect M
you or your business practices violate any U.S., federal, state or bcal laws, your propdeMry Discovery Network Cards (e.q., private Wbel and loyalty cards)
statute or regulation. Furthermore, you acknowledge Mat Me Discovery and gift cards.
Network Operating Rules give Discovery Network certain rights M require C. Contact with Discover® Network Cardholders. Vou may no[ contact
terminator or modifipdon of Mis Agreement with respect to transactions any Discovery Network Cardholder with rasped to any matter arising under Mis
inwMng Discovery Network Cards and Me Discovery Netvrork Card system Agreement, inducting any disputes, except as required under the Operating
and [o imestiga[e you. Regulatlons for aaeptance pf DLSCOVery Network Card hansactions.
B. EffeR of Terminator; Survival. You agree [o accept Discovery D. Minimum/Maximum DoIWr LImBS and Other Limits. You must not
Nelvrork Cards and folbw Me terms of Mis Agreement until termination is require Ma[ arty Discovery Network Cardholder make a minimum purchase in
effective. The terms in Mts Agreement gow:rning Me atteptance of Discovery order to use a Discovery Network Card, nor may you limit the maximum amount
Network Cards, 6ansmissions and processing of Sales DraRS and mailftelephone Ma[ a Discovery Network Cardholder may spend when using a Discovery
order forms and Settlement will continue [o apply even after termination of [his Netvrork Card, except when Me Issuer has not provided a positive Authorization
Agreement, untll all Discovery Network Card transactions made poor ro wch response for a Discovery Network Card transaction.
termination are settled or resolved. Upon termination of Mis Agreement, you E. Entire Agreement. This Discovery Network Rogram Agreement Is Me
agree to immedia[eN send us all Sales Drafts, maiUtelephone order forms and entire agreement between you and us and wpersedes any preNOUS a9reemen[s,
documentation required, but not prevlousN wbmitted to us for any Discovery undersmndings, or courses of dealing regarding [he subject matter hereof. The
Network Cartl sak:s made up to Me date to termination. We are no[ liable to you terms and conditions of Me MAA remain in effect except as provided in Mis
for any direct or consequential damages Mat you may suffer as a result of our Discovery Network Program Agreement solely wKh respect to our processing of
termination in accordance wIM Mis Agreement. Terminatlon of your acceptance Discovery Network Card transactions.
of Discovery Network Cards or [ermna[ion of Nis Agreement will no[ prejudice F. Contacts. Any provision contained in Me MAA which directs you to
any claim either party may have under Mis Agreement that arses prior [o Me contact Discovery Network far customer servke or for any other inquiry or
effective tla[e of such termination, and notwRhstanding any such termination, purpose is modifed hereby to provide Ma[ you are ro contact Bank for customer
Mis Sectbn 9 will survive as an Independent obligation. servke or in relation [o such inquiry or purpose.
C. Indemnification and Limitation of Liability. G. Refererrw to Discovery Network Procedures. Any provision
(i) You agree M indemnify and hold us harmless from and against all losses, contained in Me MAA which refers M Cards other Man Visa or MasterCard shall
liabilities, damages and expenses resuking from any breach of any wartanty, be construed so as no[ ro apply [o Discovery Network Cards, and any provision
covenant or agreement or any misrepresenta0on by you under Mis Agreement, which refers you spec"fiscally [o procedures or terms and conditlorts of Discover0
or arising out of any gross negligence or willful misconduct of you or your Network (but not references [o Associatron Rules) will be disregartled.
employees, in connection with your performance under this Agreement or H. Settlement Obligatbns. We wi0 settle Discovery Network Cartl
otherwise arising from your provision of goods and services to Discovery transactlons in substantlally Me same manner Ma[ we settle Carct transacdons
Network Cardholders. for other Card types. All settlements for Discovery Network Card transactions
(ii) THIS DISCOVER® NETWORK AGREEMENT IS A SERVICE will be net of Credits/refunds, adjustrnents, applkable discount fees when due,
AGREEMENT AND WE DISCLAIM ALL REPRESENTATIONS OR Chargebad[s and any other amounts Men due from you.
WARRANTIES, EXPRESS OR IMPLIED, MADE TO YOU OR ANY OTHER
PERSON, INCLUDING WITHOIR LIMITATION, ANY WARRANTIES SUPPLEMENTAL DISCOVER MERCHANT PROCESSING OPERATING
REGARDING QUALITY, SUITABILITY, MERCHANTABILITY, FITNESS PROCEDURES
FOR A PARTICULAR PURPOSE OR OTHERWISE OF ANY SERVICES OR
ANY GOODS PROVIDED INCIDENTAL TO THE SERVICES PROVIDED In adtlitlon to Me provisions of Section 1-11 of Mss Discovery Netvrork Program
UNDER THIS AGREEMENT. Guide, the folbwing Supplemental Discovery Network Merchant Processing
(Ili) NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE Opea[irg Rocedures ("Operating Regulalions'~ describe certain procedures and
CONTRARY, IN NO EVENT SHALL ANY PARTY, THEIR RESPECTIVE methods for wbmi[tlng Discovery Network Card transactions for payment,
AFFILIATES OR ANY OF THEIR RESPECTIVE DIRERORS, OFFICERS, obtaining author¢atrons, responding to Disputes, and other aspects of our
EMPLOYEES, AGENTS OR SUBCONTRARORS, BE LIABLE UNDER ANY services reWang to Discovery Network Cards. Unless prohibited W law, you are
THEORY OF TORT, CONTRAR, 57RIR LIABILITY OR OTHER LEGAL required [o comply with Mere Operating Regulators and Me Rogrem Guide (a5
Bridgehamp[on National Bank 092011 Page 11 of 18
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tlescribed above) as part of your Discovery Network Program Agreement and 2. The expiration date on the Discovery Network Card beirg presented (4
you are also responsible for following any additional or conFlkting requirements digits, mmyy);
imposed by your slate or bcal jurisdiction. 3. A brief reason the Authorzalion is being cancelled;
Capitalized terms used In these Opereting Requlatlans but not defined 4. The Card Number;
herein have the meanings Oiven to them In the Discovery Network 5. The original amount of the Authorization;
Program Agreemerrt (irrdudirg deflnRloro Incorporated M reference 6. The new amount of the total transactron;
from the Program Guide). 7. The original Aulfiorization Code for Me Author7ddon being wricelled.
"NOTE: Yau must refer to both the Operatlng Procedures contained in 14. Discwery Network Card Iderrtlficatbn Data (CID). Vou must
the Program Guide and this document whenever you ere dMermining obtain the three-digit UD in all Discovery Network Card Not Present Card Sales.
relevant Dlacover® Network pdkks or procedures." The UD must be includetl In all Aufharhatlon requests you send m us for an
• The methods, procedures and requlremerrts described In then Authorzaton response with respect [o Discovery Network Card Not Present
Operatlng ReguWtloro will appy to all aspects of your acceptance of, Card Saks. Failure [o include Me UD in an Authorization request for a
antl our services reWting to, Discovery Network Carder Discovery Network Card Not Present Card Sale may resuR in a Chargeback to
• If, and to the exterrt, these Operetlrrg Regulatbro do rrot directly you. You are sMCtly prohibited from retaining, archlNrg or otherwise storing the
coMlkt with the Wnguage contained in the Program Guide, both the ?D In any form or format for any reason, Induding the recording of Me UD on
Program Guide and the Operatlng Regulatlons will apply th your Transaction Receipts or Sales Drafts.
acceptance of, and our servces relatlng to, Discovery Network Calls. SS. Merchant Creation of Sales Drafts, TrensacUOn Receipts and Sales
12 Sublicense to Use Program Marks. Drafts. you must prepare a Sales Drag for each Discovery Network Card
121 Sublicense. you are granted a limited sublicense M use the Program transaction and provide a Transacton Receipt or a copy of the Sales Drag [o the
Marks, solety in connection with your acceptance of Discovery Network Cards, Discovery Network Cardholder at the lime of completion of the DLSCOVery
and wbject to this Agreement "Program Marks" means the brands, emblems, Network Card transaction, in each wse in accordance with these Operatlng
trademarks and/or logos Ma[ identity Discovery Network Cards. Additionally, Regulations. Prior to comdetlng the Sales Drag, you must verity Me Discovery
ypu shall no[ use [he Program Marks other than to display decals, slgnage, Network Grd has not expired and has been signed by the Discovery Network
advertising and other forms depictlng the Program Marks that are provided to Cardholder as described in this Agreement and Operating Regulations.
yqu by us or otherwise approved in advance in writing by us. You shall ensure that [he Sales Drag for each Discovery Network Card
122 Display of Program Marko. You must Orominently display, a[ each transaction, whether eleNonically genera[etl or manually printed on paper, is
of your locations, in raUlogs and websi[es, slgnage or bgos showing the legible and contains all of Me following informaton prbr [o transmission to us:
Program Marks in such manner and with such Requency as accorded any other 1. Date of Discovery Network Card transaction
third-party credi4 charge, debit, stored value or other payment Discovery 2. Total amount of Discovery Network Card transaction, Induding tax
Network Card accepted by you. 3. Discovery Network Card amount number (imprinted for Sales Drags if
122 Restriction on Use of Program Marks. You are prohibited Rom using Discovery Network Card is no[ read electronically)
the Program Marks other than as expressly authored in writlng by us. You may 4. Expiration date of Me Diswvery Network Card
use the Program Marks only [o promote the services covered by the Program 5. Author¢adon Code, when applkabk
Marks by using [hem on tlecals, indoor and outdoor signs, advertising materials 6. Merchant's "doing-business-as"name and physical address (city /town and
and marketlng materials; provided that all such uses by you must be approved in country)
advance by us in writing. Vou shall no[ use the Prog2m Marks in such a way 7. Valid Discovery Network Cardholder signature (for Discovery Network
that customers could believe that the products err services offered by you are Card Saks)
sponsored or guaranteed W the owners of the Program Marks. You recognbe 8. If manually imprinted, ensure the Discover Network scripted "D" ¢ clearly
that you have no ownership rights in Me Program Marks. Vou shall not assign [o legible on the impdnb
any third party arty of Me rights to use the Program Marks. 15.1 Sgruture on Discovery Network Card. You must verify Mat there is a
123 Termirutlon of Sublknse. Vour sublkense to use Me Program Marks signature qn Me signature panel on [he back of Me Discovery Network Card
shall terminate upon [be eariler of (i) Me termination of Mis Agreement, (ii) and verity Mat Me name an Me bads of the Discovery Network Card Is
Delivery of notice by us or by Discovery Network to you of Me termination of reasmnabty similar [o Me name embossed on Me Ront pf Me Discovery Network
Me sublicense, or (iii) termination of Me Ikense of the Program Marks by Card.
Discovery Network to us. You must immediately dlscontlnue use or display of 15.2 Urolgrred Discovery Network Cards. If a Discovery Network Grd
Me Program Marks, upon [erminatlon of Me License. presented to you is not signed, you must request two Dieces of iden[ifiatlon,
13. Requiremems ApplkaWe to All Autlrorizatlon Requests. one of which h a government-Issued picture Idenlifia[bn. When you have
Each Authonzatbn request you submit [o u5 must fully comply will Me confirmed Mat Me person presenting Me Discovery Network Grd i5 Me
appliohle provisions of Mis Agreement. Submission of an Authorzation Request Discovery Netwgrk Grdholder, you must require Me Discovery Network
Ma[ does not fulN comply with Me apdiable provisions of Mis Agreement may GNhglder to sign Me back of Me Discovery Network Grd. If you are unable to
resuR in assessment of additional fees to you, a declined Authorzatlon response posi0veN identify Me Discovery Network Grd presenter as Me Discovery
err a Chargeback [o you of Me Discovery Nelwark Grd Sale. Network Grdholder, err if you have reason [o suspect Raud, you should contact
13.1 Discovery Nelwark Cardholder VerMraUOn and Discovery us.
Network Card Retrieval. Occasionally In response [o an Authorzaton request, 15.3 VerlRration of Discover® Network Card Expiration Dabs. For each
we may direct you [o obtain certain infonna[ion Rom Me Discovery Network Discovery Network Grd Sak, you must check or obtain Me expiraton date on
Grd presenter [o verity the Discovery Network Card presenter's Identlry. ALso, Me Discovery Network Grd and confirm Mat Me Discovery Network Grd is
in response m an Au[horizatlon request we may direct you to take and rebin a no[ expiretl prior to completing Me Discovery Network Card Sale. The
Discovery Network Grd Rom Me Discovery Network Grd presenter. If we Discovery Network Card is valid Mrough Me last day of the monM embossed on
direR you [o retain a Discovery Network Grd, you must call our Aumorization Me Discovery Network Grd. If Me Discovery Network Grd has expired, You
Center and folbw Me instructions we provide. Do no[ use any force or effort if must no[ accept i[ far a Discovery Network Grd Sale. If you are suspicious [hat
Me Discovery Network Grd Dresenter refuses M give up Me Discovery Me Discovery Ne[vrork Grd presenter is not an auMorized user of Me
Network Grd, and do no[ take any action that will alarm or embarrass Me Discovery Network Card, you should call us at the telephone number we provide
Discovery Network Grd presenter. you will bear all responsibility for claims, to you.
liabilities, costs and expenses as a result of any failure by you, your empbyees, 16. Your Submissbn of Sales Drafts to Us. you shall collet[ all Sales
vendors err agenCS, [ha[ attempt M retain a DiscoverC•J Network Grd without Me Drags and transmit Me Sales Drafts to us. We are NOT required to reimburse
Issuer's direct request or Mat fail [o use reasonable, lawful means in retaining or you for Discovery Network Grd Saks R we do not receive Sales Drafts wiMin
attemptlng [o retain a Discovery Network Grd. fifty (60) daK of the transaction date. For Discovery Network Grd Sales and
13.2 Request for Cancellatbn of Authortratlon. If a Discovery Network Credits, Me transamon date h Me date Mat you conduct Me Discovery Network
Grd Sale Is cancelled or Me amount of Me Discovery Network Card Sale Grd Sale or issue the Uedit [o Me Discovery Network Grdholder. Except for
changes following your receipt of Authorization for Me Discovery Network Card Discovery Network Grdholder deposits for purchases, you may cwt send us
Sale, you must call us and request a cancellatlon of Me Authorization. An Sales DraRS for goods or servbes ordered by a Discovery Network Grdholder
Authorization may be cancelled a[ arty time wahin eight (8) OaK of your receipt untll the goods or services have been tlelivered err furnished to Me Discovery
of Me Authorization but must be cancelled before Sales Drags relatng to Me Network Grdholder. Sales Drafts submitted M us for Settlement more Man sixty
Discovery Network Grd Sale has keen submitted to us. Once Sales Drafts (60) daK after Me transaction date may be rejected or, if accepted and
relating to the Discovery Network Grd Sale have been submitted to Discovery processed, are subdeR to Chargebadc to you.
Network, Me Authorization wnno[ be changed. You must provide Me fallowing 1QS Preparatlon and Transmission of Sales Drafts. Vou must ensure you
information to us, In [his order: Include all merchandise and/or seMCes purdtasetl at one time and a[ one Wsh
1. The Discovery Network Card Acwun[ Number (16 digits); register on one Sales Draft, or in a single t2nsmission of Sales Drags, and you
Bntlgehampton National Bank 092011 Page 12 of 18
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must transmit Me Sales Drafts relatng [o merrhantlise and/or servkes digits).
purchased at one time and at a single cash register In a single electronic We make our Address Verficetlon Service available to you in order M reduce the
transmission of Sales Drafts unless oherwise approved by us in writing. risk of Disputes alleging fraud associated wiM Discovery Network Card Not
Notwithstanding Me foregoing, you may use separate Sales Drafts or use Present Card Saks. ComPletlng an Address Verifiwtlon rs not a guarantee
mukiple hansmisslons M submit Sales Drafts M us. against passible Dispuks, onN a tool by which [o reduce the risk or occurrence
1G2 Sala Draft Requirements. If your Merchant Agreement albws you [o of fraudulent actlviry in DLSCOVery Netvrork Card Not Present Card Sales. We will
submit paper Sales Drafts [o us, you must fulN complete each Saks Draft as not provide you with arty information about a Discovery Network Cardholder or
described above. After imprinting Me Discovery Network Card, you should Discovery Network Card Account In response M a request for Address
ensure your business name, address and coresponding Discovery Network Verifiwtion, but will onN vedN Me Discovery Network Cardholder information
Merchant Number are legibly printed on Me Saks Draft In addton, you should provided M us.
NII in [he informaton described bebw as applicable, and ensure Mat all Orinted (N) DocumentaHOn of Discovery Network Card Saks In addition [o
and written information is clearN readable on all copies. compNing wiM [he requirements for preparodon of Saks Drag in Sedlon 16, you
16.3 Credits for Returns. In disputes involving returns, we will honor your must obtain [he following information Rom the Discovery Network Cardholder
return policy as long as it complies wIM all federal, state and local laws and le for each mail or telephone order Discovery Network Card sale: Discovery
clearly posted or otherwise made known to Me Discovery Netwgrk Cardholder Network Cardholder name, Discovery Network Card Attoun[ Number,
at Me time of Me Discovery Network Card Sale. We may request a copy of your Discovery Network Card expiration date, killing address and shipping address, if
return policy from you at any time. If a Discovery Network Cardholder returns different Man Me billing address. You must retain such Informaton abng wiM
goods or services purchasetl wiM a Discovery Network Card in accordance wiM Me shipping dale for the document retertdon perod in [he Agreement Vou shall
your return policy, you must give a Credit M Me Discovery Network Card provide [he shipping date M Me Discovery Network Cardholder at the time of
Account by completlng a Uedit Oran If a Discovery Network Cardholder each telephone order Discovery Network Card sale and upon request for each
receives merchandise or services Ma[ are defective Or not a5 agreetl upon at Me mail order Discovery Network Card Sale.
time of [he Discovery Network Card Sak, you must give Me Discovery Network (v) Transmissbn of Saks Drafts. For each mall or telephone order
Cardholder a Creds, if requested by Me Discovery Network Cardholder. If you Discovery Network Grd Sale, you must trdnsmR Sales DroRS M us each
do not give a Discovery Network Cardholder a requested Gedit In the above business day in our forth and krmat All Sales Drafts shah be transmitted to us
circumstances, [he Discovery Network Card Sale may be wbject to Chargeback using an electronic meare of tronsmissbn. You must rw[ transmit Sales Drafts
to you. For each refund, you shall ekNOniceIN submit the Sales Drafts for Me [o us for merchandise or services ordered by a Discovery Network Cardholder
Credit M us wiNin [en (10) calendar tlays after you have issuetl Me Gedi[ M Me untll [he merchandise or services have been shipped, delNered or famished to
Discovery Network Cardholder or we may process a Chargeback [o you for Me Me Discovery Network Cardholder, except Ma[ you may accept a Discovery
original Discovery Network Cab Sale. Yau must give written evidence of Me Network Card for a deposit on a purchase of merchandise or services and you
Gedit M Me Discovery Network Cardholder. may transmit Me Sales DraRS relating [o wch deposit prior to Me tlme of
16.4 CredR Transaction Receipt and CrWR Drags Requirements. You shipment or delivery of Me merchandise or servkes purchased in such
must ensure Mat all Transactbn Receipts and Sales Drafts created as a result of Discovery Network Card sale.
a Gedit, whether generotetl by electronic means or completed manually on (vl) Odlvery Requiremens. At Me tlme of tlelNery of merchandise or
paper, include [he following infortnafion: services ordered in a mail or telephone order Discovery Network Card Sale, you
1. Discovery Network Card Account Number (imprinted, if possible) must provide Me Discovery Network Cardholder wiM an Invoice ar other similar
2. Discovery Network Cardholders name documentation Mat Includes Me Infortnatbn obained Rom Me Discovery
3. Discovery Network Urd expiratbn date Network Cardholder in Sedlon Ifi. You also must obtain Me Discovery Network
4. Merchant's name, locetlon (city/town and country) and Discovery Network Cardholder's signature as proof of delivery fi delivery is made M Me Discovery
Merchant Number Network Cardholder. If Me Discovery Network Cardholder requests delivery to
5. Quantity and brief descriptlan of merchandise or service returned/refunded a MIr0 party, you must obtain Me signature of a party designated by Me
6. Dale of Me Credit issuance Discovery Network Cardholder as proof of delivery. You must retain Mis proof
7. Total amount of Me Credi4 inducting taxes, and [be name of Me currency of delivery for Me document retention period as set forth in Me Agreement If a
used Discovery Network Cartlhalder takes delivery of merchandise ordered by mail or
8. Signature of an authorized reDresentatlve of the Merchant telephone a[ your retail bcation, you must obtain an imprint of Me Discovery
17. Discovery Network Card Not Present Sales. Network Card and the Discovery Network Cardholder's signature on Me Sales
17.1 Mall and Telephone Order Discovery Network Card Salp. You may OrottS.
accept Discovery Network Cards for telephone or mail order sales if you compN 17.2 Card Saks over the Internet Vou must obtain our prior approval before
with Me following procedures and Me requirements in Me Agreement You must accepting any Discovery Network Card transactlons over Me Interne[ and you
obtain an Authorzaton dedsion for each mail or telephone order Discovery must comply wiM Me requirements in Me Agreement ant Mese Operating
Network Card Sale as descrihetl in SeNOn 13 and MIS SeNon 17.1. Vou must Regulatlons for each Discovery Network Card Sale attepted over Me Interne[.
doament the Discovery Network Card Sak and send Saks Drags to us as Any Discovery Network Card Sale [ha[ does not comply wiM the Agreement and
described below, Mere Operotlng Regulations is subject M Gargeback For each Discovery
(i) Obtalninp Ardhorizatlon. For each mail or telephone order Discovery Network Card sale over Me Internet You must compN wIM Me requirements of
Network Card sale, you must transmit Me CID wiM Me authorization request If Mis sectbn.
you accept a Discovery Network Card Sale witlaut receiving a prior (i) Protocol for Inbernet Disoovery Network Grd Transactlons. Each
authorization approval antl wimou[ Vanamittlng Me CID in Me auMOrizatlon Internet Discovery Network Card transaction attepted by you and wbmitted [o
request, Me Discovery Network Card sale may be subject [o Chargeback M you us shall compN wiM our standards, Including, without limi[atlon, our standards
as desvibed in the MAA governing [be formattlng, transmission and erxryptlon of data, rekmed M as our
(ii) Address VerNicatlon Services (AVS). For each Discovery Network "designated protocol°. You shall attep[ onN Mose Interne[ Discovery Network
Card Not Present Discovery Network Card Sale, you must verify [he name and Card transactions Mat are encrypted In attoMance wdh our designaed protocol.
billing address of Me Discovery Network Cardholder contluctlng Me Discovery As of Me date of these Operafing Regulations, our designated protocol for Me
Network Card Sale using Me eleNOni[ Address Verification procedures described encryptbn of data is Secure Socket Layer (SSL). We may, at our discretion,
herein, which are available through Me Address Verification Service we provide withhold Settlement untll security standards can be verified. However, our
[o you. designated protocol, including any specifxatbre with respect to data encryption,
(III) Electronic Address VerNlotlon Service. Address Verification must be may change at any tlme upon 30 days advance written notice. You may not
obtained Rom us by 11:59 p.m. Eas[em Time on [he same day Ma[ you send accept Discovery Network Card AcoouM Numbers through Ektctronk
Me AuMOriza[bn Request regarding [he Discovery Network Cartl Sale [o us, Mail over the Internet.
regardless of whether Me Au[hor¢atlon Request Is approved or declined. To (il) eroovser Support for Protocol. You shall not accept any Internet
obroin Address Verification for a Discovery Network Card Sale, you must comDN Discovery Network Card transactions unless Me transaction is sent by means of
wiM the following procedures: a browser which supports our designated protocol. However, if you desire to
a. Use an eleNOnic terminal to request Address Verification; or accept a Discovery Network Card transaction Roma Discovery Network
b. If you do not have an eectronk terminal or are unable to obtain Address Cardholder whose browser does not support our designated protocol, you may
Verficatlon using your eleNonic krminal, you should call us, and you must accept such a Discovery Network Card transacton by means other than Me
provide the following information: Interne[, wch as mail, klephone or facsimile.
1. Card Number; (III) Authorization and Submission Requlremerds. You shall no[ accept
2. Numeric porton of the Discovery Network Cardholder's billing address (5 any Interne[ Discovery Network Card transactlons except in comdiance wiM Me
digits); and Agreement and Mese Operatng Regulatlons. AdditbnalN, You shall compN wiM
3. ZIP code of [he Discovery Newark Cardholders billing address (5 or 9
Bridgehampton Na[bnal Bank 092011 Page 13 of 18
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the following requirements for each Internet Discovery Network Card rent the roam to another guest, you may bill the Discovery Network Cardholder
transaction: far a no-show charge equal to one nighCS bilging (plus applicable taxes).
1. You must obtain an authorization decision for the Discovery Network Card (b) Record o1 Gwranteed Resemtbns. Vou must preserve a record of
Sale as described in Seaton 16 using an electronic means of transmission that is the folowing information for each guaranteed reservation:
approved by us. 1. Discovery Network Cardholder's name as it is embossed on the
2. You must wbmi[ the CID to us. If you do not submit the CID to us, the Dlscow!ry Network Card;
Discovery Network Card Sale may be whjed: to Chargeback as described in 2. Cartl account number and Discovery Newark Card expiratlon date;
Section 17.1 and this Seaton. 3. Antldpated arival date and length of slay;
3. You must obtain address verificatlon for the Discovery Network Card Sale 4. The rancelladon policy in its entlrery, inclusive of the date and time
from us using the procedures Described in Section 17.1 and this Seaton. the cancellation prMleges expire; and
4, you must submit Sales Drafts using an eleNOnic means of transmission 5. Any other pertlnent details related to [he reserved acoommodatlons.
and you must comply with other requirements In Seaton 16. You may not (c) Written CoMirmatlon of Gwran[eed Reservatlorre. You must provide
submit Sales Drafts to us using non-eleNOnic means. Discovery Network Cardholders with written confirtnatlon of each guaranteed
5. You must cwt wbmi[ Sales Drafts to m until the merchandise or services reservation. The confirmation must contain:
ordered are delivered to the Discovery Network Cardholder. 1. Discovery Network Cardholder's name as it is embossed on the Discovery
(iv) Chargeback for Noncompliance. Any Discovery Netwgrk Card Network Card;
transaction over the Internet that falls tq comply with the Agreement or these 2. Cab Account number aM Discovery Network Card expiratlon date;
Operating Regulations is subject to immediate Chargeback. We may collect any 3. Reservation confirmation number;
amounts owed by you with respect to Chargebacks on the Internet Diwow:ry 4. Antkipa[ed artival date and length of stay;
Network Card transactions from [he proceeds of Settlement amounts otherwise 5. The cancelation policy in Its entirety, inclusive of the date and time the
payable for any Card transactions. We may, at our discretlon, terminate Me cancellation privileges with expire; and
Agreement immediately if you fail [o comply with these terms. 6. Any other pertinent details relatetl to [he reserved accommodations.
18. SpetWl Circumstardtes. Except as provided In this Discovery Network (d) Cancellatbn of Gwranteed Reservatkars. If a Discovery Network
Program Agreement, the terms and condgions governing your praessing of Cardholder seeks to ancel a reservation in acoordance with your cancellatlon
spedal industry sales using the Discovery Network Card are as spedfed in the policy and spedfied lime frames, you must provide the Discovery Network
MAA. If you accept Dbcovery Network Card sales for recurting billing qr Cardholder with a cancellation number and instruNOns to retain a record of it.
installment sales Vansactlons with Discovery Newark Cardholders please refer You shall forward written confirmaton of the anceltafion of each guaranteed
to the Operating Regulations and MAA far detailed requirements for these resevadgn within three Business Days of Discovery Newark CaMtalder's
transactions, including the format for auNorizatlon requests. If you area request for written confirmation. ThIS cancellation confirmation must contain:
merchant In the lodging industry, please refer [o us for procedures for 1. Discovery Network Cardholder's reference that charges were placed on
guaranteed reservations, advance deposits and prbriry checkouts. the Discowery Network Card, if appliable;
18.1 Card Acceptance dutlrg Store Cbsings ar LlquWation. You must 2. Discovery Network Cardholder's name as R is embossed on the Discover®
comply with [he following requirements during [be Ipuida0gn and/or dosure of Newark Card;
any of your outlets, Icradons and/or entlre business: 3. Card Acoount number and Discovery Network Card expiration date;
1. Post sigre visible to customers sorting "All Sales Are Final"; 4. Reservatlon cancellation number; and
2. Stamp receipts or print Sales DmRS with notke that "All Sales Are Final"; 5. Any other pertnent information related to the reserved accommodafions.
and (e) Saka Drafts for 'NO-Slww' Charges. If the Discovery Newark
3. Contact us to advise of the cbsure of locations and/or liquidation of your Cardholder does not ancel a reservation in accordance with your pncelladon
establishment policy and specified time frames and the Discovery Network Cardholder does
18.2 Polkdes for MerchaMS In the Lodging Industry. no[ use the accommodatlons and
you do not rent the room to another guest,
(i) Overvkw. Provided below are our requirements for Merchantr in the you may charge the Discovery Network Cardtaber fora °No-show" charge by
lodging industry, who take reservations and require Discovery Network preparing and trartsmittrng Sales Drafts with the following informatlon:
Cardholders to pay advance depgsls. If you do not comply with the procedures 1. Discovery Network Cardholder's name as rt is embossed on the Discovery
in Section 18.2(Ii) for guaranteed reservatons and Section 18.2(idi) for advance Network Card;
deposits, any Discovery Newark Urd sales accepted by you for guarenteed 2. Urd Account number and Discovery Network Card expiraton date;
reservations and advanced deposits are wbjea [o Chargeback. Please note that 3. Hotel name and locatlon (imprinted);
for all Discovery Newark Card transactions [ha[ are no[ swiped through your 4. Room rate (quoted when reservation was made induding applicable taxes);
terminal or POS device you must follow the procedures described in Section 17. 5. Transaction date;
(il) RequiremeMS for Gwrarrteed Reservatbns. You may accept 6. AuthorUadon approval code;
Discovery Network Cardhoders' reservations for accommodafions and 7. Empbyees initlals; and
guarantee rooms for late artival after the normal 6:00 p.m. (local time) check-in 8. The words "No-show" printed on the Discovery Network Cardholder's
deadline if ycu folow the procedures in this Seaton. tf the check-in deadline signature line
passes without a canceXatlon of the reservation by the Discovery Network (tit) Advance Deposit You may require Discovery Network Cardholders to
Cardholder, you may bill the Discovery Network Cardholder for one night's pay a deposR at the tlme of a reservation, H you compy with Ne requirements In
lodging (plus applicable taxes); if you have complied with all of your obligations this Sedion. The amount of the deposit cannot exceed the cast of seven nights
in this Sedion. lodging (plus applicable tax) and the deposit must be applied to the entlre bill.
(a) Notice to Discover® Network UrdhoWer o! Rights and When you require an advance deposit, you must prowde Discovery Network
Obligatiora. At the time of reservatlon, you must verily that the Discovery Cardholders with the informatlon required below. Nate: gwovery Network
Network Cardholder plans to guarentee Ihelr reservation. If a guarantee is Cardholders may NOT be charged a "No-show' penalty in additon to a fortei[ed
requested, you must advise the Discovery Network Cardholder of the rights and advance deposit
obligations se[ forth below and you must compy with these requirements. Vou (a) Obligatlons with AMarrce D If
apostle. you make advance deposits for
must Inform the DlscoveKN Network Cardholder of the room rate and reservation reservatlons, you must campty with the following requirements:
confirmaton number and you should advise the Discovery Network Cardholder I. Hold reserved aaammodatlons untl checkout time following the Wst day
to retain this information. covered by an advance deposit
1. Accommodations of the type requested by the Discovery Network 2. A spedfied reservation cancella[bn time frame induding Ne date and time
Cardholder will be held by you until checkout time on the day folowing the when cancelaton privileges expire.
scheduled arrival date. 3. Full reimbursement of advance deposits when the Discovery Network
2. If the Discovery Network Cardholder seeks ro oncel the reservation, the Cardholder cancels a reservation within the specified tlme frame.
Discovery Network Cardholder must do so before 6:00 p.m. (Iwal time) on the 4. A disclosure informing Discovery Network Cardholders of their rights and
scheduled artival date. Resorts may move the 6:00 p.m. (local time) deadline obligations that failure [o cancel a reservafion within the specified time frame
back no more than three hours to 3:00 p.m. (local tlme), if the Discovery may rewft in forteiture of all or par[ of an advance deposit. Note: Discovery
Network Cardholder has been informed of Me date and time the cencella0on Network Cardholders may NOT be charged a no-show penalty in addition to a
privileges expire. forteited advance deposit under this policy.
3. At the tlme of the resevaton, you shall provide [he Discovery Network (b) Sales Drafts Requfremems for Advarrce Deposits/Folio. For each
Cardholder with a telephone number [o call for cancella[bns and instructions to advance deposit taken by you, you shall prepare Sales Dregs in the amount of
retain a record of it the advance tleposi[ and transmit it to us immediately after taking the
4. If the reservation is no[ kancelled within the allowed time frame and the reservation for the advance deposit Sales Drafts must contain the following
Discovery Network Cardholder does no[ use the accommodatlon and you do no[ information:
&idgehamp[on Natlonal Bank 092011 Page 14 of 18
1. Discovery Network Cardholder's name as R is embossed on the Discovery 6. Transmit completed Sales DraRS [o us within the applicable time frame.
Network Card; (vi) Estimated Authorization. If you seek M obtain an authorzatbn deaslon
2. Card Account Number and expiraton date; far Me estimated amount of charges [o be billed to a Discovery Network
3. Discovery Network Cardholders complete mailing address and phone Cardholder, you shall comply with the following procedures. A[ the beginning of
number; the Discovery Network Cardholders stay and On a periodic basis MereaRer, you
4. TansaUlon date; may obtain an authorization dedsion as se[ forth in herein for an amount equal
5. Antcpated arrival date and length of stay; to the estimated total of a Discovery Network Cardholders charges based on
6. Reservation confrtnafion number; his/her length of stay and other criteria. You must follow the procedures in
7. AuthonzaCgn approval code; Section 13 and this Section 18 to obtain an Authorizatbn decision for the amount
8. Advance deposit amount (including applicable taxes); and of the estimated charges expected during the length of a Discovery Network
9. Words "Advance Deposit" on the Discovery Network Cardholder signature Urdhoklers stay and to obtain additlonal Authorization decisions for the acual
line charges [ha[ exceed the amount originally estimated by you for whkh you
(c) Written CoMirmation. Vou must provide the Discovery Network obtained Authorizatlon decison.
Cardholder wiM written confirmation of an advance deposit Ma[ contains the (a) Check-in Estimate. A[ check-in, you may estimate the Discovery
following infortnatlon: Network Cardholder's total charges based on the below requirements and obtain
1. A copy of Me Sales Drags that you prepared and transmitted for the an authorization decision for the amount of that estimate:
advance deposit; i. Intended length of stay;
2. Reference that charges were placed on the Discovery Network Card; 2. Room rate;
3. Discovery Network Cardholder's name as C is embossed on Me Discovery 3. Applicable fazes;
Network Card; 4. Applicable seMCe charges; and
4. Card Account Number and expiratlon date; 5. Any miscellaneous charges, as dictated by experience
5. Reservaton confirmatlon number, (vii) Charges to Estmated Charges. You must monitor the charges made
6. Anticipated arrival date; during the course of a Discovery Network Cardholders stay [o ensure that the
7. The cancellation policy in its entlrery, inclusive of the date and time Me actual charges do not exceed the amount indim[ed in the estimated
cancellation prnrileges expire; and authorization. The following conditbns appty:
8. Any other perCnen[ detaik related [o the reserved accommodations 1. If the actual charge activity exceeds the amount of Me esCmakd
(d) Cancelaton of Reservations with Advance Deposits. If the Authorization, [hen you must secure a positive Authorzaton decision or approval
Discovery Network Cardholder requests a oncegation of a reservation in for the amount in excess of Me estimated Authorizatbn. Note: Such amounts
accordance with your cancellaton policy and time frames, you must issue a should not be cumulative and each additOnal Authorization dedsion should cover
Credtt M the Discovery Network Cardholder's Discovery Network Card Account a separate portlon of the total amount. If an Authorization request is declined,
for the full amount of the advance deposit charged to [he account within ten no charges occurring after that date will be accepted by us for that Discovery
(10) days of the Discovery Network Cardholder's request In addtion, you Network Cardholder.
must: 2. A final (or additionap AuMorizatlon decision is not required if Me final
1. Provide a oncellation number to the Discovery Network Cardholder and amount (total sum) of the Discovery Network CaMholtler's charges does no[
Instructions M retain a record of the number. exceed Cie sum of the previousty autlwrized charges, plus a twenty percent
2, Prepare Sales Drags for the Credit as described in Mis Section 18 and (20%) toleance.
transmit the Sales Drafts to us within the Cme fames prescribed by the 3. The dates, authodzed amounts, and Melr respective AuModzaCOn approval
Opeatlng Regulatons. codes must be individualN recorded on Me Sales Drafts.
(e) Saks Drafts Required for Cancellation of Reservatbrrs with 18.3 Customer Actlvated Terminals ('CAT Terminals'. If you sell
Advanced DeposHS. Vou must prepare and transmC Sales Dra(s to us for each petroleum-related products and use Customer Activated Tertninak ("CAT
cancellatlon that Includes the following informatlon and you must send a copy of Tertninals'~ to accept Discovery Network Cards, you must comply with the
the Saks Drags documenting the Credit to the Discovery Network Cardholder following requirements:
within the Cme frames prescribed by [he Opeatlng Regulations: (p You must contact the sales representatlve assigned to your aaount to
1. Discovery Network Cardholder's name as it is embossed on the Discovery obtain a unique Merchant Account Number for use excluslveN with Discovery
Network Card; Network Card transactions on CAT Termina6 ("CAT Merchant number. If you
2. Card Attount Number and expiration date; are unable [o contact our sales representative assigned [o your aaount, please
3. Discovery Network Cardholder's complete mailing address and phone contact Bank.
number, (ip You agree [o use Me Unpue CAT Merchant number (no[ any other
4. Tansad:lon date; Merchant number) for all Discovery Network Card transactions qn CAT
5. Reservation Cancellation Number; Terminals. You shall use the CAT Merchant number for the sole and exclusive
6. Advance deposit amount; and purpose of Discovery Netvrork Card tansactons on CAT Terminals.
7. Words "Advance Deposit" on the Merchant's signature line (III) If you comply with the procedures In this Secton and Me procedures for
(iv) Ovuhookings. If the accommodations reserved by a Discovery Network obtaining Authorization decisions in Secton 13, the Discovery Network Card
Cardholder pursuant to a guaanteed reservatlon or with an advance deposit are transactons that you accept on CAT Terminals will not he subject [o Chargeback
unavailable upon arrival you must at your ovm expense, provde the Discovery up M Me maximum amougt of your Floor Limit for Me reasors: (a) Missing
Network Cardholder with the following: Signature (IS) arM (b) No Imprint on Bales Drag (SI). Vou may be subject [o
1. Comparable accommodations for one night at a similar Merchant locatlon Chargehack for oMer reasons, including, without Ilmi[atlon, Me failure to compy
(inducting applcable [axes); with Me procedures in Mis Section and SeNon 13.
2. Tanspor[ation m the alternate Merchant locatlon; and 18.4 Overview of Requiremerrts for Automatic Payment Dlam. Vou must
3. Forwarding of all calls and messages [o Me alternate Merchant locatlon comply wiM Me Authorization requirements herein, as supplemented by this
(v) Priority Chedr-out Service. If you offer priority checkout seMCes, you Section, with respect to each amount billed to a Discovery Network Card
must compy wiM the following requirements: account pursuant to an Automatic Payment Plan. If you fail to compy with arty
I. Require the Discovert9 Network Cartlhokler to sign the registratlon card a[ of the requirements in [his Agreement or Opeatlng ReguWCons with respell [o
the Cme of check-in acknowledging responsibility for all charges. Obtain an an Au[omatlc Payment Plan, or if a Discovery Network Cardholder initiates a
authorization decision for the estimated amount of the accommodatlons at Dispute a[ arty tlme with respect to (i) a Discovery Network Card sale involving
check-in by swiping the Discovery Network Card through your terminal or POS an Automatic Payment Plan or (ii) the goods or services Mat you agreed [o
devke. provide pursuant to an Automatic Payment Plan, a Dispute may be inidatetl
2. Comde[e Sales Drags at checkout by enkrinq [he total amount of charges against you of any Automatic Payment Discovery Network Card Sale, in addition
incurted during Me stay including: restaurant, telephone antl miscellaneous [o any payments Mat were prevlousN submitted to and settled by us.
expenses. 18.5 Authodzation Requirements far Automatic Payment %are. If you
3. Write Me words "Priority Check-out" on Me signature line of Me Sales engage in AUtnmafiC Payment Discovery Network Card Sales, you must obtain a
Drags. separate, curtent Authorization Response for each Au[omatlc Payment
4. Obtain a final Authorization approval code far any additional amounts from Discovery Network Card Sale at Me Cme each Automatlc Payment Discovery
Me check-in estimate to equal the total amount to be billed [o [he Discovery Network Card Sale becomes due. If we or you have terminated your Merchant
Network Cardholder. Agreement, you may not submit Authorization Requests for Automatlc Payment
S. Mail Me Discovery Network Cardholder (at the address shown on Me Discovery Network Card Sales Mat are due after the termination date of your
reg6hation Discover0 Netvrork Card) a copy of Me Sales Drags and itemized Merchant Agreement If Me Discovery Network Card Attoun[ of the Discover®
bilging hill. Network Cardholder who agreed m Me Automatlc Payment Plan is terminated,
Bridgehampton National Bank 092011 Page 15 of 18
the Issuer will respond with a negative Authorization Response to any (v) Any Authorization Requests and Sales Drafts
you submR ro us in connection
wbsequent Authorization Requests, induding Authorization Requests related ro with a Discovery Network Card Sale invoMng Cash Over must compty with all
Auromatk Payment Plan initla[ed prior ro the termination of the Dixow!ry requirements of these Operatlng Regulatons.
Network Card Account. An Iswer's positive Authorizaton Response for one 20. No Sigrraturc Required Discover® Nelwark Card Sales. Card Sales
Auromadc Payments DixoveK3 Network Card Sale ¢ not a guarantee that any conducted by Merchants apeatlng in rnrmin MCCS, will not be subject ro
fuNre AuromaOC Payment Authoriza0on Request will be approved or paid. If Chargebadc to you for your failure ro obtain the Dtxovery Network
Dixovery Network Card A[cepronce by you is suspended or terminated for arty Cardholder's signature on the Tansadion Receipt if (i) the full Track Data is
reawn, you may not submit any Authorization Requests for your Automatlc transmitted ro us with the Authorzaton Request, and (Ip the Discovery Network
Payment Plans during the suspension or after the Discovery Network Card Card Sale amount is USD 525.00 or less. No Signature Required Dixovery
Acceptance Termination Date. If you submit Sales DaRs to us for an Auromatk Nelvrork Card Sales conductetl in accordance with the foregoing requirement
Payment Dixovery Netvrork Card Sale that has not received a positive may be subject ro Dispute for oMer reasons specified in these Operatng
Authorizaton Response, the Automatic Payment Discover0 Network Card Sale Regulatons and [be Dispute Rules.
may be wbject ro Dispute and/or you may pay higher Interchange antl fees. If a 21. Cash Reimbursement. The Cash Reimbursement you earn for each
Discovery Network Cardholder disputes arty Automa0c Payment Dixovery Cash Advance transacted in accordance with these Operating Reguatons are set
Network Card Sale or your performance of your obligations In connecton with forth in the Acquirer Interchange and Assessment Manual.
the Automatic Payment Plan, a Dispute may be initiated with respect to the 21.1 Cash Advances and Cash Equivak:ms. You may no[ accept a
Disputed Automatic Payment DLxovery Network Card Sales and any prbr Discovery Network Cart in exdtange for advandng cash or ash equivalents
Auomatc Payment Dixover0 Network Card Sales for which you have received (i.e., value on the Internet for e-commerce transadions) to a Dixoverc9 Network
Settlement. Cardholder, unless you and we have agreed in writing. If you dispense cash or
18.6 Discovery Network Cardholder's Approval. You must obtain the cash equivalents in connection with the presenta[bn of a Dixovery Network
Dixover0 Network Cardholder's written aDPraval ro charge amounts ro the Card without our pertnisslon in [he forth of a written agreement, wch a
Dixovery Network Cardholder's Discovery Network Card Atcqun[ in Discovery Network Cab transaction is wbject to Chargebedc ro you, regardless
accordance with an Automatlc Payment Plan. If you use the Internet or another of whether your agreement with the Dixovery Network Cardholder dexribes a
electronic process to receive a Discovery Network Cardholder application for an cash advance or cash equNabnt as a sale of goods or sevices.
Automatc Payment PWn, you must retain all eledronic evidence of [be 21.2 Fees to Discovery Network Cardholders. Nolwithstantling anything
Dixovery Network Cardholder's approval of the Automatic Payment Plan. The herein ro [be contrary, you are Drohibited frgm assessing or otherwise Imposing
Dixovery Network Cardholder's approval, whether written or eleNOnic, must a fee or wrcharge on a Cash Advance transadion. The amount of the Cash
indude all of Ne following information: Advance transaction reflected in Cash Advance Sales Darts wbmitted by you ro
(i) Discovery Network Cardholder's name, address and Dixovery Network us for Settlement must be the amount of cash disbursed ro the Dixovery
Card Number, Network Cardholder. If any fees were assessed ro the Discovery Network
(ii) Amount of each Automatic Payment Discovery Network Cartl Sale; Cardholder by you in wnnectlon wRh a Cash Advance, induding, a fee paid in
(iip Timing or frequency of payments; cash after the transadion was completed, the enOre amount of the Cash
(iv) Length of time over which the Discovery Network Cardhoder permits the Advance transaction is subject to Dispute.
Merchant ro bill Automa0c Payments to the DixoveKN Network Card Account; 22. Discovery Network Card Security Features. All gxovery Network
(v) Merchant's Dixoverp Network Merchant Number; Cards contain common chaac[er"stra and distnctive features. Security features
(vi) Card expiration date; and common ro all Dixovery Network Cards indude:
(vii) Total amount of Automatic Payments ro be billed ro Dixovery Network (p Dsstinctive Dixovery Network/NOVUS or Dixovery Network Attep[ance
Cartl Account, induding taxes and tip(s). Mark, depending on die date of issuance of the Discovery Network Card,
18.7 Delayed Delivery Saks. For delayed delivery sales in which you charge (il) The Discovery Netvrork Card Number on Discovery Network Cards is
a deposit, you may prepare two separate Tansadion Receiphs or Sales Drafts - made u0 of a[ least 16 digits,
one Tansaction Receipt/Sales Draft labeled "DeposiC and one labeled (iii) The embossed dgits of the Dixoverp Network Card Number are clear and
'Baance.' You may not submit Sales Dafts (either manualN or electronially) to uniform in size and spadng.
us, relating ro [he Trareactron Receipt/Sales Draft labeled "Balance" until the (iv) The embossed expiration date, if present, appears in a MMYY format below
merchandise or service b completely delivered [o the Dixovery Network the title "Valid Thru' and indicates the last month in whkh the Discovery
Cardholder. For delayed delivery sales, you must obtain [he "DeposiC Network Card is valid,
Authorbaton before you wbmit Sales Dafts to us for the "Deposit" or "Balance' (v) The Dixovery Network Card contains a magnetic stripe, whkh maybe a
Dixavery Network Card Sale. Any Authorization for delayed delivery of hologaphic magnetic stripe bearing a security hologam, depending on the issue
merchandise or services will be valid for ninety (90) calendar days. If delivery of date of the DixoveKq Network Card.
the merchandise or service Durchase0 will occur more than ninety (90) calendar (vi) An underprint of the word "VOID' on the signature panel becomes visible if
days after [he "DeposiC Authorzaton, you must obtain a subsequent erawre of the signature is attempted,
Authorization for the 'Balance." In addition, you must comDle[e Address (vii) Depending on the issue date of the Dixovery Network Card, the• words.
Ver'rficatlon a[ [he 6me of the "Balance' Authorization and must obtain proof of DISCOVER or DISCOVER NETWORK appear in ultraviolet Ink on roe front of [be
delivery upon delivery of the seMCe or merchandise. Any delayed delivery Dixovery Network Card and become visibe when the Discovery Network Card
Dixover® Network Card Sale [hat is not conduRed in acoordance with the is held under an ultraviolet light.
foregoing requirements may result in assessment of Fees or fines by the 22.1 Distinctive Security Features -Standard Credit, Debit and Stored
association, ro you and/or may be wbject ro Dispute. Value Discovery Network Cards. In additon ro the common security
19. Cash Over. You may issue Cash Over in mnnecoon wim Dixovery features for all Discovery Network Cards listed above, most slaMard,
Network Card Sales, provided that you compN with Me Operating Regulations for rectangular plastic Dixovery Network Cards accepted on the DixoverOa
each Dixovery Network Card Sale and with roe following additional Network include the folowing distinctive features:
requirements applkahle to each Discover® Network Card Sale involving Cash (I) Distinctive Dixovery Network Acceptance Mark positioned In the bwer
Over. right comer on both sides of the Discovery Network Card, Untrl October 2007,
(i) You must deliver to us a single Authorization request for [he aggregate the Discovery Network/NOVUS Acceptance Mark may appear onN on the back
total of Ne goods/services purchase amount and the Cash Over amount of the of older Dixover0 Network Cards.
Dixovery Network Card Sak. Vou may no[ submit sepaate Autfarizatbn (Ip Dixovery Network Cardholder name ¢ embossed on [he front of the
requests [o us for the goods/services purchase amount and the Cash Over Dixovery Network Card, evenN spaced and aligned.
amount. (III) The xrip[ed D is embossed beneath the Discovery Network Card Number
(II) The Sales DreRS you submit ro us in connecion with a Dixovery Network on the front of Me Discovery Network Card and appears on the same line as [he
Card Sale involving Cash Over must indude both the purchase amount and the embossed year beneath [he "Member Since' title and [he embossed date
Cash Over amount of the Discovery Network Card Sale. Vou may no[ submit beneath the Nalid Thru" ttle.
separate Sales Dafts to us for the purchase amount and the Cash Over amounb (iv) Card Numbers on all Dixovery Network Grds are embossed, clear and
(iii) No minimum purchase is required for you ro issue Cash Over ro a uniform in size and spacing and should extend into the hobgam on the front of
Dixovery Network Cardholder, provided that wme portion of the total the Dixovery Network Card, if a hobgam is presets on the front of the
Discovery Network Card Sale amount must be attributable ro the purchase of Discovery Network Card, where the last four digits are within the hobgam.
goods or services by [he Discovery Network Cardholder. Vou must not Issue (v) For Discovery Network Cards issued before April 15, 2006 tie distinct
Cash Over as astand-alone transadion. circulation (New Geneatbn) or rectangular (Old Geneatbn) three-dimensional
(iv) The maximum amount of cash [hat you may issue [o a Discovery Network hologam bearing a distinct pattern of a globe with an arrow through it.
Cardholder as Cash Over in connecton with a Discovery Network Card Sale Is (vi) The Dixovery Network Card Number or the lax four digits of the
$100.00. Discovery Network Card Number on [he signature panel are followed by a
Bridgehamp[on National Bank 092011 Page 16 of IS
three-digit CID that must be included in certain Authonzatbn requests E. IMarmatlon Provided. You must provide us or OLSCOVery Network as
(vll) The Discovery Network Card Number or the Ws[ four d'gi[s of [he requested, with the following Informatbn conceming any suspected or actual
Discovery Network Card Number appear in reverse Indent printing on the data security breach: (i) Me date of such breach, (ii) details conceming the data
signaNre panel antl must match the last four digits of the Discovery Network compromised (e.g., DLSCmvery Network Card numbers and explratlon dates,
Card Number embossed on the front of the DiSCOVery Network Card. Discovery Network Cardholder names and addresses), (iii) the meMod of such
22.2 Esceptbrrs to Standard Security Features. Standard, rectangular breath, (iv) your security personnel contacts, (v) the name of any Person
plastlc, stored value Discovery Network Cards are not required a hear [he (induding any law enforcement agency) assisting you with your investlgation of
Discovery Network Cardholder Name. In additbn, standard, rectangular plastlc such breach, and (w) any other information whkh we reasonabN request from
stored value gift Discovery Network Cards accepted a[ a limited; specific list of you conceming such breach, including arty forensics report(s). You will provide
merchants are not required to include Me three-dimensional hologram patterned the information listed in (i)-(vi) as soon as is reasonabN practidble and the
as a globe with an arrow through it and are rat required N bear the Discovery Informatbn listed in (i}(v) shall in any event be provided to us within 48 hours
Network Acceptance Mark on the front of the Discovery Network Card. of your initial notification [o us of such breads. You must provide us or
Valid Discovery Network Cards may apt always be rectanguWr in shape (e.g., Discovery Network as requested, with copies of any reports conceming such
Discovery Network 2GOTM Discovery Netvrork Card), may not bear all or may breach as soon as Dradicable. Vou must not Issue arty Press release or other
bear different security features than MoSe described In this Section and may not Dublic announcement concerning such breach until after you have provided us
be panted In English. and Discovery Network with the informaton requested in (I)-(v) above.
23. Reminders for Preventing FraWukM Discovery Network Card 25. Changes In Business You must notlry us ImmediateN of any charge [o
Usage. ]n additlon [o complying with AuMOrtratlon requirements as stated in Me information included in your Merchant Profile, including If you engage in, or
your Agreement, You shall pay careNl attention [o both the Discovery Network in the future elects to engage In, any new lines or types of business activities no[
Card presenter and the Discovery Network Card presented. [n particular, you disclosed [o us during your initial apPliwtion process or if you change your
shoukf: business activities in any of the folowing ways:
A. Verify that Me signature on the Transaction Doamentation is reasonabh 1. Change of ownership;
similar [o Me signaNre on the back of the Discovery Network Card 2. Change in type or kind of business;
e. Check Me signature panel for signs of erasure or akera[bn. You should not 3. Change in Merchant Identity, induding corporete/Iegal name or
accept the Discovery Network Card if the word "VOID" appears In the signature Address; or telephone numbers;
panel. 4. Cbsing or liquitlating business entlreN or any lacetlons;
C. Check the Discovery Network Card expiratlon date and do no[ accept any 5. Change In processing meNod (I.e. Transaction Drafts ro POS Device);
expired Discovery Network Card. 6. Voluntary or involuntary party in a bankruptcy case;
D. Examine the Discovery Network Card for signs of al[eraben. 7. Entry into a loan or other agreement with a third party that seeks to affect
E. If you have any doubts about [he validity of Use Discovery Network Card Me Merchant Agreement;
or the Discovery Network Card presenter, you may request additlonal 8. Change to the entlry Mat is a party M Me Merchant Agreement or entities
identlfkatlon from Me Discovery Network Card presenter and/or utilize listed in your records, Including try merger or acquisition; and
procedures outlined in your Agreement 9. Change to or from a business Mat conducts exdusively retail sales to one
F. When using a POS Device and Drin[er [o process Discovery Network Card Mat accepts Discovery Network Card Sales by mail, telephone order or Internet
transactions, Me Merchant must verify Mat Me Discovery Netvrork Card Number transactions.
pdn[ed on Me Transaction Receipt matches Me Discovery NeNrork Card 26. FactoHng. Factoring is Me submistion of Authorization Requests and/or
Number embossed on [be front of [he Discovery Network Card. Sales Drafts W a Merchant for Discovery Network Card sales or Cash Advances
G. Fallow procedures for Atldress Verifration if Me Discovery Network Card transacted by another business. Fac[odng is considered fraud unless you are
Sale is a Discovery Network Card Not Present transactbn. regatered wiM us as a Payment Servke Provider.
H. Enter Me CID for all Authorizatlon Requests in all Discovery Network Grd Factoring is expressN prohibited under your Merchant Agreement This means a
Not Resent transactions. Merchant Mat submitted Me Sales Drafts on behaK of another Person will suffer
24. pats Sewrlty. any losses assodated with Me Disputes of Discovery Network Card Sales. Also if
A. Security Requirements. A[ all times during Me term of Mis Agreement any fraud Is Involved, Me Factoring Merchant could face criminal prosecution.
you must compN wiM PCI Data Security Standard and Me other obligations wiM 27. No Merchant Acquisition by Merchants Vou may not enter InN formal
respell [o data security in [his Agreement ("Security Requirements' as maybe or informal agreements with other merchants /or Discovery Network Card
amended from tlme [a time. We may impose restrictions, fines, or prohibit you Acceptance.
from accepting Cards if we determine Ma[ you are not in compliance wiM Me 28. AudR Rights. You will allow us [o coMuct, or to engage a Mird party
Security Requirements. You must be in compliance wIM the Security designated by us to conduct, annual examinations and audits of your compliance
Requirements as well as comply with general secudry procedures. You wiM Me applicable provisions of Mere Ope2ting Regulations and welh aDPiiable
understand and acknowledge Mat i[ is soleN Your responsibility [o maintain law.
compliance wiM [he Securely Requirements and [o pay arty and all fines levied by 29. Employee Purchases. You must no[ contluct Cash Advances, Discovery
Me applicable association or network for your non-compliance. Vou also Network Card Sales or returns for goods or services wiM your owners, officers or
understand and acknowledge Mat you are soleN responsible for the compliance employees using such individuals' personal Discovery Network Cards, except far
of any and all third parties Mat are given access by you, N Discovery Network bona fide Discovery Network Card bansadions In Me ortlinary course of
Cardholder data, and for any Mird party POS VAR ("Value Added Reseller') business.
software Mat you may use.
B. TermlruHOn; IndemnNlcetion. We may in our sole discretion, wspend Glossary
or terminate Discovery Network Card processing services under Me Agreement Except as prowled in Mis Discovery Network Program Agreement, Me terms
far any actual or suspected data secudy compromise. NolwiMStanding anything which are defined in Me MAA's Gkxsary shall have the same meanings in Mis
in this Agreement [o [he contrary, you agree to indemnity and hold us harmless Discovery Network Program Agreement The terms below shall have Use
from and against all bsses, liabilities, damages and expenses resulting from your following meanings for all purposes under Me Discovery Network Program
failure to compN wiM Me Security Requirements. Agreement:
C. Notice d Data Security Breach. You must notify us as soon as Affiliate means any entity Ma[ controls, h controlled 6y, or is under common
reasonabN practicable and in no event more Man 24 hours after becoming control wiM a party, Including its subsidlarles.
aware of (i) any suspected or acNal data security breach in any of your systems Associatbn means Me Discovery Network or any entlry formed m administer
or databases used to conduct or in any way process Discovery Network Card and promote Cards, induding without limitatbn MasterCard Internatlonal,
transactions or [o store Discovery Network Cardholder inbrtnatbn, including Incorporated, Visa U.S.0., Inc. and Visa International, and arty applicable Debi[
websi[es or electronic links used N conduct DismverOO Network Card Networks.
transactions, and (il) any noncompliance by you wiM Me Security Requirements. Automatic Payment %an meare an obligation, either of a fixed or variable
Such breaches shall incude Mird parry incursions [hat could in any way result in amount Ma[ k paid by a Discovery Network Cardholder wIM a series of charges
access [o Discovery Network Card transaction Informatbn, Discovery Network to an Account over a period time pursuant to an agreement between Me
Card account information or Discovery Network Cardholder Information. Discovery Network Cardholder ant Me Merchant
D. Investigatkn. Vou must, at your expense (q perform or cause to be Autladzatbn Center means a department Mat electronicelN communicates a
pertormel an independent inves[gaUOn (including a forensics analysis) of any merchant's request for AuModzation on GedU Discovery Network Carl
data security breach, (ii) pertorn or cause to be pertormel any remedial actions transactions to Discovery Network or Me Dismver0 Network Cardholder's bank,
recommended by any such independent investlgatlgn, and (iii) cooperate with us respectlveN. and transmits such Authorization to Me merchant wa electronic
in Me investigatlon and resolutlon of any data security breach. equipment or by voke Authorization.
eridgehamp[on National Bank 092011 Page 17 of 18
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Bank means the entity identlfled on the Appliation whkh provides certain
servkes under this Dixovery Network Progam Agreement
Card Aaount means Me records maintained by Me Issuer of Me respective
Dixovery Network Card transactbns, payments and available balance or credit
line for a given Discovery Network Card.
Card Number means Me unique identlfying number Ma[ h assigned by Me
Issuer at the time of Dixovery Network Card issuance.
Card Issuer means Dixovery Network or Me bank that issues a Card [o a
person.
Card SaM means a sale of goods or servkes [o a DLSCOVery Network
Cardholder by a Merrhan4 either In a Dixovery Network Card Present
environment or as a Dixovery Network Card Not Present transactions, either or
which is conducted pursuant [o a Merchant Agreement where the amount or
such sale is applied to a Dixavery Network Card Acwun[ and considered an
obliga[bn of the Discovery Network Cardholder.
Card Not Presets refers [o a Dixover0 Network Card transaction [hat occurs
where Me Dixovery Network Card 5 not present a[ the point-of-sale, induding
Internet, mall order and telephone-order Diswvery Network Card Sales.
Cash Advance means the disbursement of currency, Including foreign currency,
[o a Cardholder try a Cash Advance merchant in conneRbn with the presen[atlon
of a Card at branch location, exduding an ATM. Cash Advance does not include
convenience checks, balance transfers, cash back points, quasi-cash ar Cash
Over.
Cash Advance Merchant means a Merchant that is a financial institution that is
permiRed under Mere Operating Regulations and has been authorized by
Acquirer to dispense Cash Advances.
Cash Over means dispensing of cash by a Merchant in connection with a
Dixovery Network Cats Sale for Me purchase of goods or seMCes.
Chargeback means Me procedure by whkh a Sales Drag or other indicia of a
Dixovery Network Card transactlon (pr disputed portion) Is returned to Bank or
Me issuing bank Merchant Is responsible for reimbursing us for all 0largebacks.
CID or Discovery Network Card Identlflcation Data refers to Me three digit
number Mat folbws Me mmple[e or truncated Diswver<9 Network Card Number
in Me signature panel on the back of each Dixovery Network Card.
Cradle mearus a refund or prke adjustment gven for a prevbus purchase
transa[don.
Credit Card means a valid Dixovery Network Card or a valid Dixovery
Network Card bearing Me service mark of Ysa or MasterCard and, M Me eMen[
Me Schedules so provide, a valid Card issued W arty other Association specified
in such Schedules.
CredR Limit means Me aedi[ Ilse set by Me Dixovery Network Card Issuer
for Me Dixovery Network Cardholders account
Dispute means a ticket Retrieval Requests, Uargeback, request for
represen[ment of a Discovery Netvrork Card trartsactlon, or Representmen[ of a
Dixovery Network Card transaction, as the context may require, by an Issuer,
Acquirer or Dixovery Network, including supporting Information and
documentatlon provided by Me Issuer or Acquirer In wnnection wits any of the
foregoing, and Dixovery Network's process of resolving or eRecting any of Me
foregoing.
MM means the agreements among Merchant and Bank contained in the
Merchant Processing Application and Agreement, Me Program Guide and the
Schedules thereto and Me documents Incorporated Merein, each as amended
from dme to time, whkh collectively constitute Me agreement among such
parties. References in the MAA W Me °Agreement"are references to Me MAA.
Non-Qwlified Program Fee means Me difference between Me Dixovery
Network fee associated wits Ne Antlcipated Fee Level and the Discovery
Network fee associated with Me more costly fee level at which [he transaction
actualN was processed.
Non-Qualified Surcharge means a surcharge applied to any Dixovery
Network Card transactlon Ma[ falls [o qualify far the Antkipa[ed Fee Level and is
Merefore downgraded to a more cosly fee level. The Non-Qualified Surcharge
(the amount of which is set forth in the Service Fee Schedule) is in addition [o
Me Non-Qualified Progam Fee, which is also your responsibility.
Transaction Receipt means a paper or electlnnk copy of transaRion data
generated at [he point of sale when Me Dixovery Network Cartl transaction is
conducted using a POS Device, a copy of which Is provided [o the Discovery
Network Cardholder.
We, our, and us mean Bank
You and your mean Me entity acceptlng Me Dixow:ry Network Card under
Mis Dixovery Network Program Agreement and its ARdia[es conducting
business in Me same industry.
eridgehampton National Bank 092011 Page 18 of 18
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