SimpleTab QR is a service that may be used in conjunction with Merchant’s POS device and allows the Merchant’s customers to pay for goods or services provided by Merchant using a smartphone (the “Service”).

Merchant wishes to utilize the Service in conjunction with EVO’s services and, to that end, agrees to pay the Monthly Costs associated with such use and acknowledges the following:

1. Transactions processed by Merchant utilizing SimpleTab QR are subject to the Terms and Conditions of the Processing Agreement.

2. The Service is intended to be used in conjunction with a POS device that is approved by EVO.

3. EVO has the exclusive right to terminate Merchant’s use of the Service in the event that: (a) Merchant has stopped processing with EVO; (b) Merchant or EVO terminates the Processing Agreement; (c) Merchant is engaged in fraud, criminal activity or any other improper or unauthorized use of the Service; and (d) for any other reason and at any time if EVO determines, in its sole discretion that it is necessary to do so to protect EVO’s or Bank’s interest or the interests of consumers.

4. Merchant is solely responsible for verifying the accuracy and completeness of all transactions, including accurate account information and transaction amounts. EVO shall not be liable for any improperly processed or unauthorized transactions or fraudulent or illegal activity, including but not limited to any Losses that Merchant may incur as a result of any such transactions or activity by Merchant, its third party agents, employees, subcontractor or any other third party. Any liability of EVO or Bank is limited pursuant to section 9C of the Processing Agreement.

5. Merchant understands and agrees that it is using the Service in accordance with the terms of this Addendum, and except as expressly set forth herein, Merchant has no ownership rights, title to, or interest of any kind in the Service.

6. Merchant agrees not to alter, modify, or enhance the Service or remove any proprietary markings, confidential legends, or EVO marks that appear on the Service.

STORED VALUE CARDS

(a) Services. The Merchant’s customers are given a magnetic stripe card by the Merchant in exchange for money received, merchandise returned or other considerations. The Card represents a dollar value that the Merchant’s customer can either use or give to another individual. There is no security associated with the card itself. The actual record of the balance on the card is maintained on Processor’s Stored Value Card database. The card, the design and use of which is proprietary to the Merchant, is designed to be swiped through a POS terminal during each transaction at Merchant’s location. When the customer gives the magnetic stripe card to the cashier, the cashier will press the appropriate keys dependent upon the transaction type, swipe the card into the terminal, and key in the amount to be applied against the card’s balance. This information will be immediately transmitted to Processor and the appropriate approval response will be routed to the Merchant. Associated with the program is a standard monthly reporting package detailing the Merchant’s transactions and the outstanding balances on the individual cards. The Merchant will have access to help desk support through Processor for their stored value card transactions. Cardholders will have access to an interactive voice response system (“IVR”), via a toll free number, through which they may receive some basic account information. Merchant’s card program will be configured in the manner specified by Merchant to Processor during enrollment, which will represent binding program rules relating to Merchant’s card program. Changes to such program requested by Merchant subsequent to setup will be made at Processor’s sole discretion and in the time and manner which Processor shall determine. We will supply a detailed statement reflecting your Program activity. We will not be responsible for any error that you do not bring to our attention within ninety days from date of such statement.

(b) Cards & Packaging. You may be obligated to purchase Cards from us if you participate in this program. If you are obligated to purchase Cards from us or if you elect to do so anyway, we will arrange for the Card production and may, at our option, invoice you therefore, in lieu of electronically debiting your account. Any such invoice will be payable upon receipt. Cards, Packaging and Point-of-purchase marketing materials are available and priced on a per bundle basis, based on current rates. All production and delivery timeframes and costs provided by us are estimates only and we do not guarantee any specific date of delivery or price for Cards produced by third parties. You are responsible for all production costs and delivery charges for Cards. The form and content of all Cards will be subject to our approval.

(c) Compliance and Warranties. Merchant is solely responsible for complying with all applicable laws relating to your Cards and you agree to indemnify and hold us harmless from any loss, damage or claim relating to or arising out of any failure to comply with applicable laws in connection with your Card program. The stores value and loyalty services described herein are provided without warranties of any kind, either express of implied, including but not limited to warranties or merchantability and fitness for a particular purpose. Neither this agreement nor any documentation furnished under it is intended to express or imply any warranty by Processor the services will function without interruption or errors. Any security mechanisms incorporated in the services have inherent limitation, and you must independently determine the mechanisms adequately meet its security and reliability requirements. By using the services, Merchant represent they have so determined.

(d) Indemnity. In the event of any loss, theft, disappearance of or damage to data that is transmitted electronically in connection with the Program, you agree to indemnify and hold harmless Processor with respect to such. You are solely responsible for monitoring the legal developments applicable to the operation of your Card program and ensuring that your Card program complies fully with such requirements as in effect from time to time. Merchant acknowledges that Processor cannot reasonably be expected to monitor and interpret the laws applicable to its diverse customer base, and has no responsibility to monitor or interpret laws applicable to Merchant’s business. Merchant hereby agrees (i) they are responsible for ensuring that all Cards require activation at the point of sale; (ii) to provide notification in writing to Processor of any fraud losses by type by fifteen days following the end of each calendar quarter; (iii) Merchant will be solely responsible for any and all value adding and fraud losses and expenses relating to or arising from their Card program; (iv) to discourage transportation of groups of sequentially numbered Cards; and (v) to deactivate or otherwise remove all value from Cards which have been compromised. Merchant shall be responsible for any fraudulent transactions involving your Cards, including, without limitation, the unauthorized activation of Cards, reloading of existing Cards (whether pursuant to a manual telephone order or otherwise) with additional value, or the unauthorized replication of Cards or Card data for fraudulent transactions. Processor provides a number of tools and options to help Merchant reduce Merchant’s risk of exposure for fraudulent transactions. Processor urges Merchant to make use of any and all of such tools as we may offer in order to help reduce the risk of such transactions. In particular, Processor recommends Merchant utilize only those vendors which have been certified by Processor as having appropriate security measures in place to reduce the risk of counterfeit Cards and the loss of sensitive Card Information which might result in unauthorized transactions and, Merchant promptly and frequently reconcile the transaction reports Processor provides to Merchant against their own internal transaction records, and to report any unauthorized transactions to Merchant’s account representative. Because manual Card transactions (i.e. those involving the activation or reloading of cards over the telephone in cases where Merchant terminals may be unavailable) pose a higher risk of potential fraud, Processor urges merchant to pay special attention to these transactions and reconcile them on an even more frequent basis. In the event Merchant does not reconcile their transaction reports and promptly report any suspicious activity to Processor. Processor may not be able to assist Merchant in canceling fraudulently activated or reloaded cards, or in otherwise identifying the source of any fraud.

(e) “Central Account” shall mean the designated bank account of Merchant for the consolidation of Proceeds. “Corporate Account” shall mean the designated bank account/s of Merchant used for operating Merchant-owned locations. “Franchisee” means a licensed franchisee of Merchant. “Proceeds” shall mean all funds received from the sale of Cards. “Processing Agreement” shall mean the stored value card agreement entered into between Processor and the Merchant prior to or concurrent with the execution of this Agreement. “Redemptions” shall mean the total value of goods or services provided by a Redeeming Franchisee and/ or Merchant in exchange for the value of a Card presented to a Redeeming Franchisee or Merchant by a consumer. “Redeeming Franchisee” means a Franchisee or Corporate location that gives value for the redemption of a Card. “Redeeming Franchisee Account” means the designated bank account of the Redeeming Franchisee. “Selling Franchisee” means the Franchisee or Corporate location that sells a Card. “Selling Franchisee Account” means the designated bank account of the Selling Franchisee.

(f) Account Settlement. From time to time, Proceeds may be transferred via Automated Clearing House (“ACH”) debit by Processor from a Selling Franchisee Account, the Central Account or the Corporate Account to either the Central Account or a Redeeming Franchisee Account, as applicable. Additionally, from time to time, Redemptions may be transferred from the Central Account or a Selling Franchisee Account via ACH credit by Processor to a Redeeming Franchisee Account or the Corporate Account, as applicable. Reports concerning these transfers will be made available to the Merchant through the Processor’s electronic reporting product. The amount of the Proceeds to be debited or credited and the recipient of such debits or credits will be based on instructions received by Processor from the Merchant and transaction data collected by Processor pursuant to Merchant’s Stored Value Card Program. Merchant agrees to cause each Redeeming Franchisee and Selling Franchisee to execute a consent letter in a form acceptable to Processor to permit Processor to perform its obligations under this Agreement.

(g) Fees. Merchant hereby agrees to pay Processor fees for these Stored Value Card Program’s services in an amount set forth in Merchant Processing Agreement or Addendum.

(h) Guarantee. Processor is irrevocably and absolutely guaranteed by Merchant and the Owner and Guarantor signing this Agreement, the prompt payment of all rejected ACH amounts. This is an unconditional guaranty of payment, and not a guaranty of collection, and Processor may enforce these obligations hereunder without first suing, or enforcing Processor’s rights or remedies against a Redeeming Franchisee or Selling Franchisee or any other obligor. Merchant, Owner and Guarantor hereby waive all notices to which they might otherwise be entitled. Merchant, Owner and Guarantor hereby consent and agree to, and acknowledge that their obligations hereunder shall not be released or discharged by, the following: (a) the renewal, extension, modification or alteration of this Agreement or any related document or instrument; (b) any forbearance or compromise granted to a Redeeming Franchisee or Selling Franchisee or any other obligor by Processor; (c) the insolvency, bankruptcy, liquidation or dissolution of a Redeeming Franchisee or Selling Franchisee or any other obligor; and (d) any act or omission of Processor or a Redeeming Franchisee or Selling Franchisee which would otherwise constitute or create a legal or equitable defense in favor of Merchant, Owner or Guarantor. Merchant, Owner and Guarantor represent and warrant that each of them have received or will receive direct or indirect benefit from the making of this guaranty, that they are familiar with the financial condition of each Redeeming Franchisee and Selling Franchisee and that they have made no representations to Processor in order to induce Processor to execute this Agreement.

This Addendum shall become effective on the date set forth below and shall automatically terminate upon the earlier to occur of (i) the termination of the Processing Agreement or (ii) Merchant notifies EVO in writing to discontinue PATT.

For each year that this Addendum is in effect, Merchant shall be entitled to replace one (1) defective terminal at no cost to Merchant. Merchant shall pay the full value of any additional replacement terminals. Merchant must return the defective terminal to EVO and if EVO determines that the terminal was damaged by Merchant, Merchant shall be responsible for the full replacement cost of the damaged terminal. Merchant must return the number of terminals identified above to EVO within ten (10) days after the termination of this Addendum for any reason. Merchant shall be responsible for lost or stolen terminals. In the event Merchant fails to return the terminal(s) within the time period set forth above, or the terminal is returned damaged, EVO may charge Merchant for the full value of the terminal by ACH debiting the bank account on file with EVO. All shipping and handling charges shall be paid by Merchant.

Merchant understands and agrees that it is using the software (the “Software”) for the PATT in accordance with the terms of this Addendum, and except as expressly set forth herein, Merchant has no ownership rights, title to, or interest of any kind in the Software or the PATT. Merchant agrees not to alter, modify, or enhance the Software or remove any proprietary markings, confidential legends, or EVO marks that appear on the Software.

By entering into this EVO Store and Forward Merchant Liability Agreement Merchant hereby requests that EVO enable Store and Forward (“SaF”), also called Delayed Authorization or Offline Authorization, on its merchant account and accepts all liability associated therewith.

Merchant understands that accepting a credit card using SaF allows Merchant to enter transactions off-line, without getting an approval in real-time, and that this type of transaction is inherently not as secure as processing a credit card transaction on-line. By requesting that EVO enable SaF on Merchant’s Point of Sale (“POS”) device Merchant agrees to:

1. Use SaF only as a last resort to capture transactions and card data during temporary connectivity outages;

2. Transmit all transactions accepted while using SaF within no more than 48 hours of card acceptance;

3. Accept all liability resulting from SaF transactions including but not limited to chargebacks, non-compliance assessments and other associated losses or fines (“Losses”);

4. Ensure that all card data will be stored on Merchant’s POS only and will not be stored elsewhere electronically or in hard copy;

5. Ensure that all SaF transactions are submitted as EMV whether contact or contactless;

6. Not send any transactions with a fictitious authorization or “force-post”; and

7. Process all transactions in compliance with card brand and PCI DSS rules.

Further, Merchant understands, accepts and acknowledges that some of the risks associated with accepting a credit card in SaF include but are not limited to the following:

1. EVO will have NO record of Merchant’s transactions while in SaF mode;

2. When transactions are accepted in SaF, credit cards may get declined and Merchant will not be credited for these declines. Credit cards could decline for the same reasons they are declined when processed in real time (insufficient funds, inactive cards, and invalid), however, when Merchant accepts a credit card in SaF, the services and/or products will already be in the customer’s possession.

3. When Merchant accepts a credit card using SaF, transactions will exist ONLY on Merchant’s POS device. In the event Merchant’s credit card terminal suffers a critical failure, this will result in the total loss of the entire batch, and all stored transactions will be unrecoverable.