TERMS AND CONDITIONS FOR IP COMMUNICATION CHANNEL Please ensure that the person signing this Agreement is properly and duly authorised to do so. 1 INTRODUCTION This Agreement is between: Electronic Transaction Services Limited (PAYMARK) and (Merchant) 2 INTERPRETATION 2.1 Definitions In this Agreement, the following words have the following meanings, unless the context requires otherwise: “Appendix” means the appendix to this Agreement. “Approved Access Point” means the Merchant’s point of access to the Paymark Network “Connection Date” means the date where the IP Service is made available to the Merchant or the date whereby access to the System. “Dedicated Phone Line” means the Merchant’s existing Telecom business phone line procured under a Telecom approved contract that the Merchant dedicates for PAYMARK’s exclusive uninterrupted use in respect of the Services as more particularly described in clause 4.1 herein. “Equipment” means all equipment provided to enable the Merchant’s Terminal to communicate with PAYMARK’s System over a Telecom Business Phone Line. “IP” means Internet Protocol. “Merchant Agreement” means the agreement between PAYMARK, the Merchant and the Merchant’s bank, under which PAYMARK provides the Merchant with access to and use of the System via a copper wire Communication Channel. “Paymark Network” means the Merchant’s point of access to Paymark’s IP Network. MGM1264844-v1.DOC “Schedule” means the schedule to the Merchant Agreement. “Telecom” means Telecom New Zealand Limited. 3 IP SERVICE 3.1 IP Service On and from the Connection Date, PAYMARK will provide the Merchant with access to and use of the System using an IP based network. 4 DEDICATED PHONE LINE 4.1 Dedicated Phone Line The Merchant hereby grants to PAYMARK the exclusive uninterrupted use of the Merchant’s nominated Dedicated Phone Line to provide the Services. The Merchant may use the Dedicated Phone Line for voice and fax, provided that the Merchant must not use the Dedicated Phone Line for other data services. 4.2 The Merchant acknowledges and agrees that the Approved Access Point shall only be used for the processing of EFTPOS transactions to and from PAYMARK and not for any other purpose unless agreed in writing by PAYMARK. 5 FEES AND CHARGES 5.1 Telecommunications Access Fee The Merchant acknowledges and agrees that, in addition to all other fees and charges that remain payable under the Merchant Agreement, on and from the Connection Date the Merchant must pay to Paymark the “direct port connection” telecommunications access fee set out in Part ‘A’ of the Schedule in respect of the IP based network. 5.2 Installation Paymark agrees to pay the costs for the installation of the Equipment at the Merchants premises up to a maximum cost of $200.00 (plus GST) per Merchant site PROVIDED THAT the Merchant shall be liable for the cost of installation if the Merchant elects to terminate the Service or elects to utilise a different method of connection to the Service within twelve (12) months from the Connection Date. 5.3 No Additional Cost The Merchant shall be liable for any costs associated with the relocation or repositioning of the Equipment after the initial installation referred to in clause 5.2. Where the Merchant elects to relocate, reposition or change the Equipment the Merchant shall pay for the costs associated with the change. Paymark will, upon request by the Merchant, provide an indication of the costs on a case by case basis. MGM1264844-v1.DOC 6 MERCHANT’S OBLIGATIONS 6.1 Merchant’s responsibility The Merchant acknowledges and agrees that the power supplies and cabling in respect of the Dedicated Phone Line, its connection to the Paymark Network, and the proper placement and use of the Equipment is at all times the Merchant’s responsibility and may only be used for EFTPOS connectivity unless otherwise agreed by PAYMARK in writing. 6.2 Compliance with terms and conditions The Merchant will comply with: (a) the requirements of Telecom’s terms and conditions, as initially set out in the Appendix, as may be reasonably amended from time to time by PAYMARK or Telecom; and (b) any other applicable end-user responsibilities and terms and conditions relating to the Service. 6.3 Telecom Network Where the Merchant has customised its Terminal configuration, the Merchant acknowledges and agrees that it is solely responsible for the cost of any corrective action(s) required for that Terminal to integrate and communicate effectively with the Service. 6.4 Services The Merchant acknowledges and agrees that: (a) Telecom provides equipment, services and infrastructure that is integral to the Service; (b) PAYMARK’s only obligations regarding quality of Service are those set out in the Merchant Agreement and this Agreement; (c) PAYMARK’s sole liability to the Merchant with respect to quality of Service is to use all commercially reasonable efforts to procure restoration of the Service or repair or replacement of products supplied by Telecom, to the extent PAYMARK is able under its agreement(s) with Telecom; and (d) PAYMARK is free to change its telecommunications service provider at PAYMARK’s sole discretion, provided that change has no material adverse effect to the Service or the terms of this Agreement. 6.5 Liability The Merchant will be responsible for any party to whom it directly or indirectly allows access to the Paymark Network and hereby indemnifies PAYMARK for any loss, claim, MGM1264844-v1.DOC liability, damage or expense that PAYMARK suffers as a result of the acts, errors or omissions of the Merchant or any other person for whom the Merchant is responsible. 6.6 Equipment The Merchant acknowledges and agrees that all right, title, property and interest in the Equipment will at all times rest with Telecom, and the Merchant only has a right of possession for so long as the Merchant requires the Equipment under this Agreement. The Merchant will return the Equipment to PAYMARK in an undamaged and re-usable condition (subject to normal wear and tear) within two (2) weeks of the date the Merchant no longer requires the Equipment and in any event at the expiry or termination of this Agreement. 7 TERMINATION 7.1 Duration of this Agreement This Agreement will commence on the date it is fully executed by the parties and continue in force for the duration of the Merchant Agreement. 7.2 No Responsibility where Breach of Agreement The Merchant acknowledges and agrees that PAYMARK has no responsibility to continue to supply the Service to the Merchant, and PAYMARK may terminate the Merchant Agreement, where the Merchant is in breach of any obligation or arrangement with PAYMARK (whether under this Agreement or the Merchant Agreement), including the failure to pay any fee or other charge. Merchant (as defined above) by: PAYMARK (as defined above) by: ___________________________ ___________________________ Director its duly authorised signatory ___________________________ ___________________________ Director MGM1264844-v1.DOC APPENDIX Telecom Business terms and conditions http://www.telecom.co.nz/help/content/0,10709,203728-204524,00.html?link=rdt MGM1264844-v1.DOC