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<br />In the event of Option 2 above, you and we agree that the terms and <br />conditions set forth in Sections 17(b), 31, 33, 35-37, and 42 of this <br />Agreement will not apply." <br /> <br />5. The following will be added as Section 31: "Purchased <br />Equipment; Supplies. We will sell to you, and you will buy from us the <br />Equipment identified in the Application as being purchased by you (the <br />"Purchased Equipment''), free and clear of all liens and encumbrances <br />(subject to Section 36), except that any "Software" (as defined in Section <br />37 below) will not be sold to you outright but instead will be provided to <br />you pursuant to, and subject to the conditions of Section 37 hereof. We <br />will also sell to you and you will buy from us the supplies identified in the <br />Application as requested by you from time to time." <br /> <br />6. The following will be added as Section 32: "Site Preparation. <br />You will prepare the installation site or sites for the Equipment, including <br />but not limited to the power supply circuits and phone lines, in <br />conformance with the manufacturer's and our specifications and will make <br />the site or sites available to us by the confirmed shipping date," <br /> <br />7. The following will be added as Section 33: "Payment of Amounts <br />Due for Equipment. <br /> <br />a, The purchase price specified in the Application for purchased <br />equipment and supplies, if applicable, will be due and payable <br />upon exeeution of this Agreement. You will pay such purchase <br />price to us prior to shipping of the equipment and supplies. All such <br />payments will be made: (I) in a lump sum by check or by debit to the <br />Settlement Account through ACH or (2) in installments by debit to <br />the Settlement Account through ACH (defined below) in each case, <br />as specified on the Application, In the event you do not specify <br />payment timing or method, payment will be made in a lump sum via <br />ACH debit to the Settlement Account. We will also provide you the <br />supplies identified in the Application, as requested by you from time <br />to time. You will pay the purchase price for such supplies, including <br />all applicable taxes prior to delivery of the supplies or at our option <br />such amounts will be collected by invoice or by debits or deductions <br />pursuant to this Section. You hereby authorize us to collect all <br />amounts due from you under this Agreement by initiating our debit <br />entries for such amounts to your account designated pursuant to the <br />Card Processing Agreement to be debited and credited for amounts <br />due from and to you under the Card Processing Agreement (the <br />"Settlement Account") or by deducting (or causing Bank of America, <br />N,A. to deduct) such amounts from settlement amounts due to you <br />under the Card Processing Agreement. All Authorizations and other <br />provisions in your Card Processing Agreement regarding the debiting <br />and crediting of your Settlement Account apply with equal force with <br />respect to amounts due to or from you under this Agreement. This <br />authority will remain in full force and effect until we have given <br />written notice to your bank where your Settlement Account is <br />maintained that all monies due from you under this Agreement have <br />been paid in full. <br /> <br />If you will make any payment hereunder by check and such check <br />will be returned for non-sufficient funds, or if you will make any <br />payment hereunder by debit to the Settlement Account and funds in <br />the Settlement Account are inadequate, you agree to reimburse us <br />immediately for any account shortfall that occurs as a result thereof <br />together with our then current fee for handling such shortfall. Should <br />you fail to deposit sufficient funds to cover the shortfall in toto within <br />forty eight (48) hours of notice of such shortfall, you will then owe to <br />and be charged by us a late charge of 15% of the amount past due. <br />Any deposits made to the Settlement Account will be applied first to <br />late charges, then to processing charges and then to Equipment <br />charges. <br /> <br />b. In addition, you will pay, or reimburse us for, amounts equal to <br />any applicable taxes or assessments, however designated, levied or <br />based on such charges, or on this Agreement or the Equipment and <br />related supplies or any services, use or activities hereunder. <br /> <br />c. As indicated in the Application, sepamte charges apply for <br />Equipment supplies." <br /> <br />8. The following will be added as Section 34: "Use of Equipment. <br /> <br />a, You will cause the Equipment to be operated by competent and <br />qualified personnel in accordance with any openlting instructions <br />furnished by the manufacturer or us and in connection with the <br />services provided under your Card Processing Agreement. You will <br />not use the Equipment, or permit the Equipment to be used, in any <br />manner or for any purpose for which the Equipment is not designed <br />or reasonably suited. <br /> <br />b. You will comply with all governmental laws, rules and <br />regulations relating to the use of the Equipment. You are also <br /> <br />HAMS MSA (8-2-05) <br /> <br />Page 18 of 19 <br /> <br />responsible for obtaining all legally required permits for the <br />Equipment. <br /> <br />c. After delivery of the equipment any loss, destruction, theft of or <br />damage to the Equipment that occurs thereafter will not relieve you <br />from your obligation to pay the full purchase price payable <br />hereunder. 1 <br /> <br />d. You will not move the Equipment from the installation location <br />set forth in the Application for any reason or use whatsoever without <br />our prior written consen t. <br /> <br />e. Notwithstanding anything in this Agreement to the contrary, you <br />will be solely responsible for properly maintaining all Equipment and <br />meeting all technical standards required by this Agreement. You will <br />at all times insure that all point-of-sale Equipment will display, print <br />and report your name, city, state and the transaction date on all <br />transaction receipts, as penalties may be assessed against you for <br />transactions that are inaccurately lnmscribed." <br /> <br />9. The following will be added as Section 35: "Ownenhip & <br />Protection of Equipment. During the period of time when any charges, <br />taxes or fees for or on Equipment will be due us, and until such time as all <br />charges, taxes and fees due will have been received by us, it is expressly <br />understood and agreed by you that: (I) you will not directly or indirectly <br />create or permit to exist, and will promptly and at your own expense <br />discharge, any lien, charge or encumbrance on the Equipment; (2) you will <br />not alter the Equipment in any manner whatsoever; (3) you will maintain <br />the Equipment at your expense in the same condition in which it was <br />delivered to you, ordinary wear and tear excepted; and (4) in the event of <br />any loss, theft, damage or destruction of the Equipment from any cause <br />whatsoever, you will notify us immediately of such condition and we, in <br />our sole discretion, will determine the extent of loss and the cost of repair <br />and/or replacement, and you will bear the entire risk and promptly pay the <br />cost of such repair and/or replacement." <br /> <br />10. The following will be added as Section 36: "Security Interest; <br />Financing Statements. You hereby grant to us a security interest in all <br />Purchased Equipment and the related Software to secure payment of the <br />purchase price thereof in accordance with the Uniform Commercial <br />Code." <br /> <br />II. The following will be added as Section 37: "Software License. <br />Anything in this Agreement to the contrary notwithstanding, we retain all <br />ownership and copyright interest in and to all software, computer I <br />programs, related documentation, technology, know how and processes <br />embodied in or provided in connection with the Equipment (collectively, . · <br />"Software"), and you will have only a nonexclusive license to use the <br />Software in the operation of the Equipment. You will not reverse <br />engineer, disassemble or decompile the Software. You will not give any <br />third party access to the Software without our prior written consent. Your <br />obligations under this Section will survive the termination of this <br />Agreement." <br /> <br />12, The following will be added as Section 38: "Limited Warranty <br />for Equipment; Maintenance. Equipment provided to you by us <br />hereunder will be free from defects in material or workmanship at the <br />initial date of shipment to you and, if covered by any applicable wammty, <br />will be repaired or replaced by us free of charge within thirty (30) days <br />therefrom. We will take appropriate steps, to the extent permitted, to <br />assign to you any and all warranties provided by the manufacturer of the <br />Purchased Equipment, but we will not provide any warranty with respect <br />to the Purchased Equipment. <br /> <br />Equipment provided to you by us hereunder will conform to applicable <br />specifications for the period of time specified in, and be covered by the <br />warranty provided in, the written materials accompanying each component <br />of Equipment, copies of which materials will be provided to you upon <br />delivery of the specified Equipment. The exact term, conditions and <br />coverage of each wammty will vary for each component of Equipment in <br />accordance with such written materials, The cost incurred by you, if any, <br />to repair or replace Equipment will be determined by us based upon the <br />specific provisions of the warranty applicable thereto as set forth in such <br />written materials, our applicable repair and replacement policy and the <br />date you request such repair or replacement relative to the initial date of <br />shipment by us, <br /> <br />The warranty statement in the written materials provided to you with <br />respect to the Equipment describes the following in explicit detail, but in <br />general, such warranty will be voided if there is: (l) altenltion, installation, <br />repair or maintenance of the Equipment performed by persons not <br />authorized by us; (2) connection ofany device to Equipment or peripherals <br />not certified for use with the Equipment; (3) openltion of the Equipment I <br />outside the published specifications; (4) negligence by you or any other '. <br />person with respect to the Equipment; or (5) altenltion of Equipment serial <br />number{s). <br />