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-1- 12.08 Form: Selling-Agent-Oriented Sample Stored Value Product Agreement and Disclosures (For use by institutions selling stored value products on behalf of issuing institutions.) BY RECEIVING, RETAINING, ACTIVATING, USING OR AUTHORIZING OTHERS TO USE CUSTOMER'S XYZ STORED VALUE CARD, CUSTOMER WILL HAVE ACCEPTED THE XYZ SVC, AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS SET FORTH IN THIS AGREEMENT. Agreement made between ABC, Inc., a corporation existing under the laws of the State of __________, with a principal place of business at ______________________________ ("ABC") and the individual purchaser of stored value product ("Customer"). WHEREAS, ABC is in the business of selling financial products, including a stored value product ("SVC"); and WHEREAS, Customer desires to purchase an SVC from ABC. NOW THEREFORE, in consideration of the promises set forth below, the Parties agree as follows. 1. Initial Purchase of Customer's XYZ Stored Value Product Customer agrees to pay $__________ to ABC in consideration for an XYZ Stored Value Product ("XYZ SVC"). At the time of purchase, Customer's XYZ SVC will [be valueless] [or] [have $__________ in pre-loaded value]. It is Customer's responsibility to load all further value onto Customer's XYZ SVC. Value will be -2- loaded onto Customer's XYZ SVC from Customer's XYZ [checking/deposit] account(s). 2. Loading Value onto Customer's XYZ SVC Customer may add value to Customer's XYZ SVC, either from a personal computer or an authorized XYZ or ABC location [including, but not limited to, physical XYZ and ABC locations, ATMs and ALMs] by effecting a transfer from Customer's XYZ [checking/deposit] account(s). Each time Customer adds value to Customer's XYZ SVC, Customer authorizes XYZ to debit an SVC transfer fee from Customer's [checking/deposit] account(s) in the amount of $__________ ABC DOES NOT POSSESS ANY OWNERSHIP INTEREST IN ANY PRESENT OR FUTURE VALUE LOADED ONTO CUSTOMER'S XYZ SVC. ABC IS A RESELLER OF XYZ STORED VALUE PRODUCTS ONLY. AS SUCH, ABC BEARS NO RESPONSIBILITY FOR THE TRANSFER OF FUNDS BETWEEN XYZ AND ABC. Customer should not attempt to transfer funds from Customer's [checking/deposit] account(s) in an amount greater than that actually available in that account. Should Customer succeed in transferring value to Customer's XYZ SVC in an amount greater than that actually available in that account, Customer will be subject to XYZ's overdraft procedures including, but not limited to, Customer's being obligated to immediately repay to XYZ the overdraft amount plus any and all applicable overdraft fees. Customer's periodic [checking/deposit] account(s) transaction histories will reflect any transfers of value from Customer's -3- [checking/deposit] account(s) onto Customer's XYZ SVC. CUSTOMER WILL NOT RECEIVE ANY SEPARATE DOCUMENTATION OUTLINING CUSTOMER'S XYZ SVC TRANSACTION HISTORY. Any errors or disputes regarding value added onto Customer's XYZ SVC, by whatever means, will be handled according to the same XYZ procedures used for errors or disputes regarding Customer's [checking/deposit] account(s). Customer's XYZ SVC has no expiration date and can have value added to it until such time as (i) XYZ ceases to maintain an active SVC program; (ii) Customer is found to have violated any of the terms of this Agreement; and/or (iii) for any other reason not covered by (i) or (ii), provided XYZ provides Customer with 30 days prior written notice of its intent to disallow the addition of value to XYZ SVCs. At all times, including any of the circumstances described in this paragraph, Customer will be permitted to redeem the remaining value stored on Customer's XYZ SVC in U.S. currency equivalents. EXCEPT that any attempt to load value onto Customer's XYZ SVC by fraudulent means, including, but not limited to, attempts to load value from sources other than Customer's XYZ [checking/deposit] account(s) will release XYZ from all liability and from any duty to redeem any remaining value on the XYZ SVC. Further, any attempt to load value onto Customer's XYZ SVC by the means described in this paragraph will result in prosecution under any and all state, federal and local civil and criminal laws. -4- 3. Use of Customer's XYZ Stored Value Product XYZ is in no way liable or responsible if, for any reason, Customer's XYZ SVC is not honored at any establishment or by any entity. USING CUSTOMER'S XYZ SVC IS SIMILAR TO USING CASH. CUSTOMER'S XYZ SVC SHOULD BE HANDLED AND SAFEGUARDED IN THE SAME MANNER AS CASH. Customer's ability to use Customer's XYZ SVC depends solely and exclusively on the dollar amount Customer has chosen to load onto Customer's XYZ SVC. CUSTOMER'S XYZ SVC IS NEITHER A CREDIT CARD NOR A DEBIT CARD. Customer will not receive a monthly transaction statement or any other type of documentation outlining Customer or Customer's authorized users' XYZ SVC transactions. Customer may or may not receive a signed copy of a sales draft from a merchant when originating transactions with Customer's XYZ SVC. Customer will not be able to "stop payment" on a transaction conducted with Customer's XYZ SVC. 4. Customer's Liability CUSTOMER'S XYZ SVC DOES NOT REQUIRE A "PIN NUMBER" OR ANY OTHER TYPE OF SECURITY CODE FOR USE. CUSTOMER'S XYZ SVC SHOULD BE HANDLED WITH THE SAME EXPECTATIONS FOR RECOVERY IN THE EVENT OF LOSS OR THEFT AS CUSTOMER HAS WHEN HANDLING CASH. If Customer permits someone else to use Customer's XYZ SVC, expressly, impliedly or otherwise, Customer is liable for any transaction made by that person, even if that -5- person exceeds the authority Customer has granted to them. Value stored on Customer's XYZ SVC in no way constitutes an account with XYZ. Except as may otherwise be prescribed by law, the amounts stored on Customer's XYZ SVC are not insured by the Federal Deposit Insurance Corporation or by any other form of insurance, deposit or otherwise. If Customer's XYZ SVC is lost or stolen, Customer agrees to notify XYZ immediately by calling XYZ at 1-800-(____)- (____). Customer also agrees to assist us in our attempts to recover any losses from demonstrably unauthorized XYZ SVC uses and to assist in their prosecution. 5. XYZ's Liability Customer agrees that XYZ has no liability for any XYZ SVC that is LOST by any party. Customer further agrees that if any XYZ SVC whose maximum stored value is less than or equal to five hundred dollars ($500.00) is stolen, XYZ IS NOT LIABLE FOR ANY AMOUNT. [OR] XYZ IS LIABLE ONLY FOR THE LESSER OF THE INITIAL PURCHASE PRICE OF THE CARD OR THE REMAINING VALUE STORED ON CUSTOMER'S XYZ SVC AT THE TIME IT WAS STOLEN. UNDER NO CIRCUMSTANCES SHALL XYZ BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES OR LOST PROFITS, EVEN IF XYZ HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. -6- Customer further agrees that if any XYZ SVC whose maximum stored value is equal to or greater than five hundred one dollars ($501.00) is STOLEN from Customer or Customer's authorized user only, XYZ'S LIABILITY IS LIMITED TO THE LESSER OF $__________ OR THE AMOUNT THAT CAN REASONABLY BE DETERMINED TO HAVE BEEN REMAINING ON THE CARD AT THE TIME IT WAS STOLEN. 6. ABC's Liability ABC SERVES AS NEITHER A GUARANTOR, OBLIGOR NOR UNDERWRITER OF XYZ'S STORED VALUE PRODUCTS. AS SUCH, ABC IS IN NO WAY LIABLE TO CUSTOMER, XYZ, OR ANY OTHER PARTY FOR THE VALUE STORED ON CUSTOMER XYZ SVC. 7. Miscellaneous Provisions 7.1 Governing law The laws of the state of __________ will govern any and all disputes between Customer and/or ABC, XYZ concerning Customer's XYZ SVC. 7.2 Waiver Subject to applicable law, XYZ may delay enforcement of its rights without having such delay be deemed a waiver thereof. 7.3 Disputes with Entities with whom Customer Conducts XYZ SVC Transactions. Customer must report to XYZ any dispute concerning XYZ SVC transactions that cannot first be satisfactorily resolved by Customer and the party at issue. Customer must also put the information about the dispute in writing, -7- including the date, amount and location of the transaction (in the case of transactions originated on the Inter-net/World Wide Web, location means the home page URL of the entity in question), and the reason for the dispute. For nonelectronic transactions, Customer must include a copy of the sales drain. For electronic and/or Interact/World Wide Web transactions Customer must also include a physical address of the party in question. Any expense incurred by XYZ in obtaining any of the foregoing information will by charged to Customer. 7.4 Release of XYZ and ABC from Liability Unless otherwise provided by applicable law, in consideration for using XYZ SVC, Customer waives and releases XYZ and ABC from all defenses, rights and claims Customer has or may have against any third party arising from or related to any use of the XYZ SVC. 7.5 Attorneys' Fees If XYZ is forced to take action against Customer for any reason arising out of Customer's use of the XYZ SVC, including, but not limited to, Customer's violation of the terms of this Agreement, Customer must pay reasonable attorneys' fees and other costs incurred by XYZ. -8- XYZ CUSTOMER By:______________________ By:_______________________ Date:____________________ Date:_____________________ Title:___________________ Title:____________________ Date:____________________ Date:_____________________