Merchant Agreement

                                                               

Effective Date: January 1, 2024

                       

BY EXECUTING AN ORDER FORM AND/OR A TOAST MASTER SERVICES AGREEMENT, IN EACH CASE THAT INCORPORATES THIS MERCHANT AGREEMENT BY REFERENCE (THIS “MERCHANT AGREEMENT”), BY CLICKING A BOX INDICATING ACCEPTANCE OF THIS MERCHANT AGREEMENT OR BY USING ANY SERVICES, SOFTWARE OR HARDWARE PROVIDED OR OTHERWISE MADE AVAILABLE BY TOAST, INC. (“TOAST”), MERCHANT AGREES TO BE BOUND BY AND COMPLY WITH THE FOLLOWING: THE TERMS AND CONDITIONS OF THIS MERCHANT AGREEMENT, ALL ORDER FORMS, THE TOAST MASTER SERVICES AGREEMENT (IF APPLICABLE), AS WELL AS THE PAYMENT PROCESSING TERMS, THE TOAST PRIVACY STATEMENT, THE DIGITAL ORDERING TERMS, GUEST TERMS OF SERVICE, END USER LICENSE AGREEMENT, THE DATA PROCESSING ADDENDUM, AND ALL OTHER TERMS, CONDITIONS, AND POLICIES PERTAINING TO THE SERVICES AS DESCRIBED HEREIN, ALL OF WHICH ARE INCORPORATED INTO THIS MERCHANT AGREEMENT BY REFERENCE (COLLECTIVELY, THE “ADDITIONAL TERMS”), AS APPLICABLE TO THE SPECIFIC SERVICES MERCHANT USES. IF THIS MERCHANT AGREEMENT IS BEING ACCEPTED ONLINE BY CLICKING A BOX, THE INDIVIDUAL CLICKING THE BOX ACKNOWLEDGES THAT HE, SHE OR THEY IS ENTERING INTO THIS MERCHANT AGREEMENT ON BEHALF OF MERCHANT AND REPRESENTS AND WARRANTS THAT HE, SHE OR THEY HAS THE AUTHORITY TO BIND MERCHANT TO THIS MERCHANT AGREEMENT. IF YOU DO NOT HAVE SUCH AUTHORITY, DO NOT ACCEPT THIS MERCHANT AGREEMENT ON BEHALF OF MERCHANT.

                       

IF MERCHANT DOES NOT AGREE WITH THE TERMS OF THIS AGREEMENT, MERCHANT MAY NOT USE, AND SHALL CEASE USING, ANY TOAST SERVICES, SOFTWARE OR HARDWARE. CAPITALIZED TERMS USED HEREIN SHALL HAVE THE MEANING ASCRIBED TO THEM IN THIS MERCHANT AGREEMENT, INCLUDING IN SECTION 17 (DEFINITIONS). WHERE APPLICABLE, CERTAIN REFERENCES TO TOAST MAY ALSO BE DEEMED TO INCLUDE TOAST’S BANK PARTNERS AND/OR PAYMENT PROVIDER(S). THIS AGREEMENT CONTAINS AN ARBITRATION AGREEMENT, WHICH WILL, WITH LIMITED EXCEPTION, REQUIRE MERCHANT TO SUBMIT ANY CLAIMS MERCHANT HAS AGAINST TOAST TO BINDING AND FINAL ARBITRATION. UNDER THE TERMS OF THIS AGREEMENT, (1) MERCHANT WILL ONLY BE PERMITTED TO PURSUE CLAIMS AGAINST TOAST ON AN INDIVIDUAL BASIS, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION OR PROCEEDING; AND (2) MERCHANT WILL ONLY BE PERMITTED TO SEEK RELIEF (INCLUDING MONETARY, INJUNCTIVE, AND DECLARATORY RELIEF) ON AN INDIVIDUAL BASIS.

                       

Merchant and Toast hereby agree as follows:

                       

1. Scope

This Agreement applies to and governs Merchant's access to and use of the Services, Hardware, and Professional Services ordered by Merchant under an Order. The Services may include, but may not be limited to, (a) mobile and web applications for use by Merchant’s Employees and Customers to place orders and process Payments; (b) processing of Payments and facilitating payment of Net Sales Proceeds to Merchant’s Bank Account; (c) providing Merchant with certain reporting on its sales and activities; and (d) working with Merchant with respect to any Customer inquiries related to Payments or placing orders, in each case under Merchant’s Toast Account.                       


2. Right to Use the Services

2.1. Subject to Merchant’s compliance with the terms and conditions of this Agreement, Toast grants to Merchant a limited, non-transferable, non-sub-licensable, non-exclusive, revocable license during the Term to permit Employees to access and use the Services solely and exclusively for Merchant’s internal business purposes. The Services are licensed, not sold, and Merchant acknowledges that it does not acquire any license to use the Services in excess of the scope and duration of the license to the Services specified in this Agreement. This license does not grant to Merchant or any other party any right to copy, modify, enhance, or transfer the Services or otherwise disclose any Confidential Information disclosed by Toast to any third party, including without limitation any Intellectual Property Rights (as more fully described in Section 5.1 below).                       

2.2. Merchant is (a) solely responsible for maintaining the security and control of its premises, equipment (including Hardware and associated firmware), and username(s) and access passwords to its Toast Account; and (b) fully liable for all activity of its Employees and Customers that occur under its Toast Account, whether authorized by Merchant or not. Merchant agrees to immediately notify Toast if it becomes aware of any unauthorized activity under its Toast Account and will cooperate with Toast to prevent any further unauthorized activity. Furthermore, regarding Hardware being shipped to the Merchant, Merchant agrees that change of title and ownership, and risk of loss, shall transfer to Merchant at the point of shipment.

2.3. As part of the Services, Toast may provide access to the Toast Platform, including certain Toast Apps. When Employees download or use the Toast Platform or any Employee-facing Toast App, Merchant must ensure its Employees read and agree to the End User License Agreement on their own behalf or on behalf of Merchant, as applicable, which protects Toast’s rights in the Services and allows use of the applicable Toast App only for the purposes of Merchant (including its Employees) accessing and using the Services in accordance with this Section 2 and Section 4 below. Merchants who elect to use Toast Digital Ordering Services will be subjected to the Toast Digital Ordering Terms.                       

2.4. As part of the Services, Toast may from time to time communicate with Merchant using the contact methods provided by Merchant at the time of application and/or during Merchant’s use of the Services, Hardware or Professional Services. Merchant expressly agrees that if it or any of its Employees provide a mobile phone number or email address to Toast, Toast is authorized to contact Merchant or Employees, including without limitation at that number or email address using autodialed or prerecorded message calls or text messages in order to provide transactional, servicing, and account-related messages to Merchant.

                       


3. Implementation and Professional Services

3.1. If Merchant orders any Professional Services under an Order, then, upon request from Toast, Merchant will promptly provide Toast with any information, resources and assistance required by Toast to enable the implementation of the Services or ongoing provision of the Services for Merchant’s purposes as described on the Order and, if applicable, to provide training to the Employees. Any dates specified in an Order are estimates only and are contingent upon Merchant’s timely compliance with its obligations relative to such implementation and any dependencies on Merchant’s performance. If, and to the extent of, any default or breach on the part of Toast under this Agreement that is caused in whole or in part as a result of Merchant’s failure to timely perform its obligations under this Agreement, then Toast shall be entitled to relief from all liability with respect to such failure or delay, and may, in its sole discretion, terminate this Agreement, or any part thereof, upon five (5) days’ prior written notice to Merchant.                       


4. Usage Restrictions

4.1. Neither Merchant nor its Employees will, directly or indirectly: (a) reverse engineer, decompile, disassemble or otherwise attempt to discover the source code, object code or underlying structure, ideas or algorithms of the Services; (b) modify, translate, or create derivative works based on the Services; or copy (except for archival purposes), rent, lease, distribute, pledge, assign, or otherwise transfer or encumber rights to the Services; (c) use or access the Services to build or support, and/or assist a third party in building or supporting, products or services competitive with the Services; (d) remove or obscure any proprietary notices or labels from the Services; (e) use the Services for any fraudulent undertaking or in any manner that could damage, disable, overburden, impair or otherwise interfere with Toast's provisioning of the Services (including but not limited to the use of automated systems or software (e.g. screen scraping) to extract data from the Toast Platform or other aspects of the Services); (f) violate or breach any operating procedures, requirements or guidelines regarding Merchant’s use of the Services that are posted on or through the Toast Platform or otherwise provided or made available to Merchant, including, without limitation, any action or inaction taken contrary to the requirements of PCI-DSS; (g) alter, distribute, license, resell, transfer, assign, rent, lease, timeshare or otherwise commercially exploit the Services to any third-party or provide it as a service bureau; (h) conduct any penetration or vulnerability testing on the Service or Toast’s network; or (i) copy any features, functions, text or graphics of the Services, including without limitation, the structure, sequence or organization of the user interface of the Toast Platform.

4.2. Merchant represents, warrants and covenants that (a) any sales transaction submitted by Merchant will represent a bona fide sale of goods or services by Merchant to a Customer; (b) any sales transactions submitted by Merchant will accurately describe the goods and/or services sold and delivered to a Customer; (c) Merchant will fulfill all of its obligations to each Customer for which Merchant submits a transaction and will resolve any consumer dispute or complaint directly with Customer; (d) Merchant and all transactions initiated by Merchant will comply with Applicable Law and Rules; (e) except in the ordinary course of business, no sales transaction submitted by Merchant through the Services will represent a sale to any principal, partner, proprietor, or owner of Merchant’s entity; (f) neither Merchant nor any of its Employees shall retain or store any portion of the magnetic-stripe data subsequent to the authorization of a sales transaction, nor any other data prohibited by Applicable Law and Rules, or this Agreement, or engage in the unauthorized use, transfer or disclosure of the same; (g) Merchant’s use of the Services will be in compliance with this Agreement; and (h) Merchant has put in place appropriate policies as well as technical, organizational and administrative security controls to safeguard Personal Information as well as other data associated with the Services, the Hardware and Merchant’s obligations under this Agreement. Except as otherwise permitted by Toast in writing, the payment processing portion of the Services may only be used in the United States of America; provided, that Toast reserves the right to restrict Merchant’s ability to accept certain Card payments in United States territories. As such, Merchant may not export or otherwise make available the payment processing portion of the Services directly or indirectly, outside of the United States of America, and Merchant acknowledges that the Services may be subject to export restrictions imposed by Applicable Law and Rules, including U.S. Export Administration Regulations (15 C.F.R. Chapter VII). Merchant acknowledges and agrees that Merchant is solely responsible for its own compliance with Applicable Law and Rules.

4.3. Merchant will use the Services only for its management and operation of its own business, and not for any business, services or offerings of non-affiliated third-parties. Without limiting the generality of the foregoing, Merchant will not act as a payment intermediary or aggregator on behalf of any third-party. This means that Merchant may not use the Services to handle, process or transmit funds for any third party. Merchant is also prohibited from using the Services to process cash advances or cash-back transactions.

4.4. Toast will review the information that Merchant submits via an Order Form, in connection with Merchant’s request to sign up for the Services, and Toast will forward such information to its payment provider(s). Merchant hereby agrees that Toast may share information about Merchant and Merchant’s Bank Account with its payment provider(s) for the purpose of providing the Services to Merchant or with other third parties for validation purposes. Once Merchant submits its Order Form, which includes the merchant application, Toast or its payment provider(s) may conclude that Merchant is not permitted to use the Services, in which case Toast may decide in its sole discretion to discontinue entering into an Agreement with Merchant, or if an Agreement has already been formed, may immediately terminate this Agreement. Merchant shall ensure any information it has provided, including information regarding its Merchant Bank Account, is up to date at all times, shall notify Toast immediately of any changes thereto and authorizes and instructs Toast to share any such changes with its payment provider(s).

                       

4.5. Merchant will provide information requested by Toast, in connection with Merchant’s application or ongoing business thereafter, within five (5) business days following such request (unless required sooner under Applicable Law and Rules or by Toast’s payment provider(s)), including without limitation invoices from suppliers, government-issued identification or a business license. Merchant must also provide Toast with access to inspect Merchant’s business location(s) upon request. Merchant, each of its then-current beneficial owners (i.e., persons who directly or indirectly have greater than a 25% ownership stake in Merchant), and its then-current designated control person (i.e., an individual having significant responsibility to control, manage or direct Merchant), each authorize Toast to obtain – and will provide to Toast upon request – identity-verifying information about Merchant, beneficial owners, and such designated control person from time to time, including documentation as necessary, consumer reports on Merchant and such beneficial owners and designated control person, including information relative to criminal history, or any other information necessary to comply with the requirements of the Bank Secrecy Act, as amended by the US PATRIOT Act of 2001, or as otherwise amended, modified, or replaced from time to time, as well as requirements of the Office of Foreign Assets Control.

4.6. Toast may perform maintenance on the Services from time to time, which may result in service interruptions, delays, errors or bugs. Toast will not be liable for any such interruptions, delays, errors or bugs. Toast may contact Merchant in order to assist Toast with the Services and obtain information needed to identify and fix any errors.

4.7 Merchant may access the Services only through devices identified by Toast as compatible with and capable of accessing or supporting the Services using a wired or wireless connection to the internet. The Services do not function with every device and may only be used on approved Toast Hardware. Toast may alter which devices are approved as compatible with the Services in Toast’s discretion from time to time, provided that Toast will give Merchant reasonable notice unless such change is at the direction of a payment provider or regulator or due to a change in Applicable Law or Rules. Merchant is (a) solely responsible for the payment of any fees that may be imposed by its internet and/or data provider and (b) its use of the Services accessed via the internet is subject to the terms of any agreements in place with such internet and/or data provider and availability and uptime of those services and wireless equipment. Toast does not warrant, endorse, guarantee, or assume responsibility or liability for any product or service advertised or offered by a third party.

4.8. Merchant will comply with the following requirements in connection with its use of the Services: (a) with respect to each Customer who requests the delivery of transaction receipts via text message or email, such Customer must individually enter his or her Customer Data in the appropriate space displayed on the applicable device; Merchant and/or Employees are NOT permitted to add or modify any Customer Data (including but not limited to phone number and email address) on behalf of a Customer unless requested by the Customer; (b) any communications provided to Customers as part of the Services (e.g. marketing, enrollment in a loyalty program) who desire to receive marketing material, enroll in a loyalty program, or otherwise receive communications from Merchant as part of the Services, must have provided their contact information as part of the Services and have consented to these communications as required by Applicable Law; Merchant and/or Employees are NOT permitted to add or modify a Customer's consent indication on his or her behalf unless specifically requested by Customer; (c) Merchant shall not send any communications, including transactional or commercial messages, to Customers in violation of Applicable Law and Rules, including without limitation the Telephone Consumer Protection Act of 1991, the CAN-SPAM Act (2003) and Canada's anti spam legislation contained in An Act to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage reliance on electronic means of carrying out commercial activities, and to amend the Canadian Radio-television and Telecommunications Commission Act, the Competition Act, the Personal Information Protection and Electronic Documents Act and the Telecommunications Act (as the same may be amended, modified, or replaced); (d) if Merchant is located in Canada and its loyalty program includes points used by guests to purchase goods or services from Merchant, Merchant may not terminate the points under such program by the passing of time alone unless the goods or services obtained through such points are, individually, worth less than $50 Canadian; (e) to the extent required by Applicable Law and Rules, if Merchant amends or terminates its loyalty program, Merchant will provide reasonable notice of such change or termination of its loyalty program to guests; and (f) to the extent required by Applicable Law and Rules, if Merchant terminates its loyalty program, Merchant will not reinstate its loyalty program within a year of such termination unless it has retained sufficient information to reinstate the points of any prior participant in its terminated program. Merchant agrees to send any communications, including transactional or commercial messages, to Customers in a manner consistent with the purposes for which the Customer has provided consent or has provided their information.

4.9. Merchant will abide by Toast’s Community Philosophy. Toast will not tolerate threats, harm, or intimidation tactics towards Toast employees - whether actual, veiled, or implied – including without limitation, derogatory or degrading language, threats, bullying, harassment, and/or intimidation.

4.10. Where applicable, Merchant will hold an active Software subscription license for all Hardware devices. In the event that Merchant does not have an active Software subscription license for all Hardware devices, Toast shall have the right, in its sole discretion, to (i) either deactivate such devices or begin charging Merchant the applicable Software Fees for such devices, and (ii) irrespective of whether the devices are deactivated per clause (i), to charge Merchant for any historical Software Fees that would have been due by Merchant to Toast for use of these devices.                       


5. Ownership: Merchant Data, Customer Data & Intellectual Property

5.1. As between the parties, Toast (and/or its licensors) retains all rights, title and interest (including all worldwide Intellectual Property Rights) in and to the Services, Hardware, and Professional Services, including all derivatives, updates, modifications, upgrades, enhancements, extensions, or improvements thereof, as well as any new features and functionality thereto. Merchant may voluntarily submit Feedback at any time. Merchant hereby irrevocably assigns and transfers to Toast all right, title and interest (including all worldwide Intellectual Property Rights) in and to the Feedback and acknowledges that Toast is free to use, disclose, reproduce and otherwise exploit any and all Feedback provided by Merchant or any Employee relating to the Services, Hardware, or Professional Services in Toast’s sole discretion, entirely without obligation or restriction of any kind. Any rights not expressly granted herein are reserved by Toast.


5.2. Merchant owns all Merchant Data. Merchant hereby grants to Toast a non-exclusive, royalty-free, fully paid up, and worldwide license to use, copy, modify (including the right to create derivative works of), display and transmit Merchant Data solely in connection with the Services including the development of potential offerings or other future products and services under consideration by Toast (whether developed independently by Toast or through a third party). Merchant is solely responsible for the accuracy, quality, content and legality (including compliance with all Applicable Law and Rules) of Merchant Data, the means by which Merchant Data is acquired, and any transfer and use of Merchant Data outside of the Services by Merchant or any third party authorized by Merchant. Merchant represents, warrants and covenants that it has all rights necessary to upload the Merchant Data to the Services and to otherwise have such Merchant Data used or shared, as applicable, by Toast in relation to the Services. Merchant will not upload or store any data or materials containing any such information in violation of this Section.                       

5.3 Merchant acknowledges and agrees that, in the course of providing the Services to Merchant, both Toast and Merchant will collect, store and use Customer Data. To the extent Merchant’s use of the Customer Data is outside the scope described in this Agreement or within Toast’s Privacy Statement, Merchant shall be solely responsible for putting in place any additional controls (e.g. notice, consent) and governance in relation to such use. Each Party’s use of Customer Data shall be in compliance with the Applicable Law and Rules.

5.4. Notwithstanding anything to the contrary in this Agreement, Toast may create anonymized or aggregated data from Merchant Data, Customer Data and/or Personal Information that does not identify Merchant, any Customers or any Employees or any other identifiable individual. Such aggregated or de-identified data may include data analysis across Toast, itsmerchant customers and partners and may be used for any lawful purposes, including, to use, disclose, compile, distribute and publish anonymous statistical or analytical data regarding the performance, provision, and operation of the Hardware or Services, the development of new products or services or otherwise. Upon creation, as between Merchant and Toast, Toast shall own and retain all Intellectual Property Rights in and to such anonymized or aggregated data entirely without obligation to Merchant or restriction of any kind.

5.5. Merchant hereby grants Toast a non-exclusive, royalty-free right and license to use and display Merchant’s Marks on its website, marketing collateral and other public disclosures, or to otherwise identify Merchant as a customer of Toast. Toast obtains no rights in the Merchant Marks except for the limited right described in this sub-Section, and Merchant retains all right, title and interest in and to the Merchant Marks. All use of the Merchant Marks by Toast will inure to Merchant.  

5.6. Merchant agrees and acknowledges that any use or display by Merchant of a trademark or other mark owned by the Payment Network(s) shall comply with the rules and regulations issued by such Payment Network and shall cease use of and remove all such trademark(s) from display upon termination of this Agreement.
                       

6. Billing and Payment

6.1. Merchant will pay all Fees set forth in each Order. All Fees are non-cancelable and non-refundable, except as otherwise provided for herein. Merchant will pay all Fees in U.S. Dollars or in such other currency as agreed to in writing by the parties.

6.2. Merchant’s Fees for Software will remain unchanged during the Initial Term of this Agreement. Toast reserves the right to change (i) Card processing rates and other non-Software Fees at any time during the Term upon thirty (30) days’ prior written notice to Merchant, and (ii) any Fees at the beginning of, or at any time during, a Renewal Term upon thirty (30) days’ prior written notice to Merchant. In each case, such notice will include the effective date of the change(s). If Merchant does not accept such change(s) made pursuant to this Section 6.2, then Merchant shall provide Toast with written notice, prior to the effective date of such change(s), that: (a) in the case of a non-Software Fee increase or a Fee increase for any Software subscription module (other than Toast’s monthly POS core tablet subscription), Merchant has elected to remove such applicable non-Software product or service or the Software subscription module that is subject to the Fee change; or (b) in the case of a change in Card processing rates or in the Fee for Toast’s monthly POS core tablet subscription, Merchant has elected to terminate this Agreement. If Merchant does not provide written notice pursuant to the immediately foregoing sentence, or if Merchant otherwise continues to use the applicable Services subsequent to the effective date of any change in Fees and/or Card processing rates, then Merchant shall be deemed to have accepted such change(s). In the event of a termination by Merchant pursuant to clause (b) of this Section 6.2, the Early Termination Fee under Section 8.4 shall not apply (other than the processing fee for Software financing). In the event Merchant elects to remove a product, service or module or to terminate the Agreement pursuant to Section 6.2(a) or Section 6.2(b), any amounts prepaid by Merchant as of the date of such removal or termination shall be non-refundable. 

Notwithstanding anything to the contrary in this Section 6.2, in the event that Toast permits Merchant to modify an Order to remove a product, service or module at any time during the Term (other than in connection with a price increase by Toast as set forth in the immediately foregoing paragraph), Toast shall have the right to update pricing across the Merchant’s remaining products, services or modules.                       

6.3. All amounts invoiced hereunder are due and payable as specified in the applicable Order. In the event that Toast inadvertently did not provide Merchant with an invoice, the invoice provided by Toast reflected incorrect amounts owed by Merchant, or Merchant did not otherwise receive an invoice from Toast, Merchant is still responsible for paying any Fees and/or other amounts due based on Services provided. Unpaid Fees that are not the subject of a written good faith dispute are subject to a finance charge of 1.5% per month, with interest compounding monthly, (or 19.56% annually) on any outstanding balance, or the maximum permitted by Applicable Law and Rules, whichever is lower, plus all reasonable expenses of collection, including reasonable attorneys’ fees and costs. Such unpaid invoices, finance charges and expenses may be deducted from the deposit of any Net Sales Proceed under Section 5 of the Payment Processing Terms. Without prejudice to any right to set-off which Toast may be entitled to as a matter of law, Toast may set-off any amounts due to Merchant, including any Net Sales Proceeds, against any amounts owed or other liabilities of Merchant, now or at any time hereafter due, owing or incurred by Merchant to Toast under this Agreement.

6.4. All Fees are exclusive of applicable Taxes, or similarly-related assessments or charges. Merchant will be responsible for, and agrees to pay, all applicable sales, use, excise, personal property, services, value added taxes, taxes of a similar nature, and final withholding taxes (excluding personal property and capital taxes on items owned and used by Toast and excluding taxes based on Toast’s net income all of which shall be borne by Toast), imposed by any governmental authority having jurisdiction on any items, goods and/or Services being paid for by Merchant hereunder.

Toast may charge Taxes, as required by law, which Merchant agrees to pay, unless Merchant provides Toast with valid exemption documentation satisfying applicable legal requirements of the relevant tax authority. Tax exemption will only apply from and after the date Merchant provides exemption documentation satisfactory to Toast. Taxes shall not be deducted from the payments to Toast, except as required by law, in which case Merchant shall increase the amount payable as necessary so that after making all required deductions and withholdings, Toast receives and retains (free from any Tax liability) an amount equal to the amount it would have had no such deductions or withholdings been made.                       

Merchant is responsible for determining and fulfilling its obligations under Applicable Law and Rules to report, collect, and remit any applicable Taxes, duties, or other governmental fees on the sale of Merchant’s products and services, payments received, or any other transactions arising from or out of Merchant’s use of the Services. Toast makes no representation or warranty that the Services, Hardware, or Professional Services will enable Merchant to meet the tax requirements applicable to Merchant in a specific jurisdiction. In certain jurisdictions, Toast may be required to collect and remit state and local sales, use, or similar taxes from the Customer on behalf of Merchants and remit such taxes directly to the tax authority under state or local laws in Marketplace Facilitator Jurisdictions. In Marketplace Facilitator Jurisdictions, Toast will inform Merchant that Toast will remit any applicable taxes to the tax authority, to the extent required under the law, and Toast will be relieved of any responsibility to remit such Taxes to Merchant. Any Taxes that Toast is not required to collect and remit on behalf of Merchants in the Marketplace Facilitator Jurisdictions and non-Marketplace Facilitator Jurisdictions will remain the responsibility of the Merchant and Merchant will be responsible for remitting such Taxes to the appropriate tax authorities.                       

Toast may be obligated under Applicable Law and Rules, including tax laws, to report Required Tax Reporting to tax authorities and/or with respect to Merchant’s use of the Services. Upon request, Merchant shall provide Toast with the necessary information, or other reasonable assistance as appropriate to the request, so that Toast can comply with all applicable tax compliance or reporting requirements. Merchant acknowledges that Toast will report to the applicable tax and revenue authorities the Required Tax Reporting. Merchant agrees to cooperate in good faith in response to any tax authority inquiry, audit, controversy, and/or examination for purposes of substantiating and documenting Taxes collected and remitted pursuant to sales under this Agreement.

6.5. Toast may report annually to the Internal Revenue Service and applicable state tax authorities as required by Applicable Law and Rules, Merchant’s name, address, telephone number, Tax Identification Number (including, but not limited to a Social Security Number (SSN), or Employer Identification Number (EIN)), applicable IRS account numbers, the total gross dollar amount of the Payments Merchant receives in a calendar year, and the total gross dollar amount of the Payments Merchant receives for each month in the applicable calendar year, without regard to adjustments for applicable credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts, the dates of any transactions, designated merchant category codes, applicable backup withholding details. Such criteria and thresholds noted above may vary, depending on Applicable Law and Rules. Merchant further acknowledges and agrees that Toast may take action in accordance with Applicable Law and Rules, including initiating backup withholding, when appropriate.

6.6. If Merchant financed its original license of the Software during the Initial Term, then upon the first Renewal Term and for each Renewal Term thereafter, Merchant’s payment terms for Software Fees shall revert to billed monthly in advance. If Merchant elects to finance Hardware through a third-party lender and, either (a) fails to consummate the financing transaction with such lender, or (b) due to Merchant's default or any other purpose, Toast purchases the related credit agreement from such lender, then Merchant's payment terms shall revert to billed monthly in advance until the credit obligation has been paid in full or no further payments are due. In any event, Toast shall collect monthly payments due via ACH debit from Merchant’s Bank Account.

6.7. If Merchant elects to purchase Services through a Pay-as-you-go Subscription, Merchant acknowledges that the Fee offered will constitute and be comprised of Fees for Software and Card processing rates, except as otherwise disclosed in this Agreement or in other applicable terms. Pay-as-you-go subscriptions may be subject to an inactivity Fee, which will be assessed in the event Merchant fails to meet required Card processing minimums. Pay-as-you-go subscriptions do not constitute an offer of credit, nor do they constitute an equipment lease or loan for goods or services provided. Except as otherwise provided in this Agreement, or expressly stated in any other applicable terms, Toast shall enforce Merchant’s liability for Pay-as-you-go Platform Fees consistent with sub-Section 6.3 herein, and shall not seek recourse against Hardware purchased in a Pay-as-you-go Order.

6.8. Merchant shall provide Toast with a method of payment for debits (charges), and a method of receiving payments for credits (reimbursements), associated with Fees or other amounts owing for Services in a form acceptable to Toast, which may include a bank account and/or a debit or credit card. Merchant authorizes Toast to store bank account information and payment card information provided by Merchant for any use authorized by Merchant, as permitted by this Agreement, or as permitted by any other agreement as between Merchant and Toast. Merchant represents that the payment method provided is owned by the Merchant, established and used for business purposes, and is held by a financial institution in the Merchant's country and denominated in the local currency. You may update or cancel this authorization any time within Toast systems or by contacting Toast’s support team at Toast Central located at central.toasttab.com. This authorization will remain in effect until updated or canceled. The withdrawal of any authorization does not affect the validity of the storage or use by Toast of bank account or payment card information prior to the withdrawal of the authorization.

7. Payment Processing

7.1. Payment Processing Terms are located at the link set forth in the Definitions Section.
                       

8. Term and Termination; Suspension; Survival

8.1. The initial term of this Agreement will commence upon the earlier of: (i) the Contract Start Date (as defined in the Order), or (ii) the Go- Live Date and, unless terminated earlier as set forth in this Agreement, shall remain in full force and effect for the remainder of the initial term outlined in the Order (the “Initial Term”). Thereafter, the term of this Agreement with respect to such applicable Order(s) shall automatically renew for successive one (1) year periods (each a “Renewal Term”; collectively, the Initial Term and any subsequent Renewal Term(s) shall be referred to as the “Term”); provided, however, that any Renewal Term shall be subject to the terms of the then-current version of the Merchant Agreement as in effect on the date such Renewal Term commences (and upon commencement of a Renewal Term, any special terms or promotions previously offered by Toast to Merchant shall no longer be valid) and further provided that either party may terminate an Order, and this Agreement with respect to such Order, by providing at least thirty (30) days’ written notice of its intent not to renew prior to the end of the then-current Term. Merchant hereby acknowledges and agrees that Merchant is responsible to review the Merchant Agreement for updates prior to the commencement of any such Renewal Term, and agrees that entering such Renewal Term confirms Merchant's consent to the terms of the Merchant Agreement as then in effect, provided, however, that either party may terminate an Order, and this Agreement with respect to such Order, by providing at least thirty (30) days’ written notice of its intent not to renew prior to the end of the then-current Term.


8.2. Toast may suspend Merchant's username and password, Toast Account and access to the Services, and/or may terminate this Agreement upon written notice to Merchant in the event any of the following occur: (a) Merchant fails to make any payment due within thirty (30) days; (b) Merchant provides any inaccurate, untrue or incomplete information or fails to comply with the Toast Account registration requirements, as determined in Toast’s sole discretion; (c) Toast determines that Merchant is incurring excessive Chargebacks; (d) Merchant violates Sections 2, 4, 7 or 12; (e) any agreement between Toast and a payment provider pursuant to which Toast is authorized to provide access to payment processing services terminates or expires; (f) (1) Toast determines in its discretion that any change to, clarification or interpretation by a regulatory authority or Payment Network of, or enactment of any Applicable Law and Rules, would render any portion of the Services illegal, otherwise have a material adverse effect upon the Services or a party, or pose unreasonable risk to Toast or (2) Toast is directed to terminate this Agreement or the Services by a regulatory authority, payment provider or a Payment Network or (g) for any reason upon ninety (90) days’ prior written notice to Merchant. As determined it its sole discretion, Toast, its payment provider(s), and/or one or more Payment Network(s) may terminate this Agreement immediately and without notice for any suspected issues that could potentially cause a violation of this Agreement, the Payment Network rules, any law or regulation, or may impose a potential security threat, data breach, fraud or other crime, or damage to the Payment Network(s).

8.3. In the event of a material breach of this Agreement by either party, the non-breaching party will have the right to terminate the applicable Order(s), and/or this Agreement for cause if such breach has not been cured within thirty (30) days of receipt of written notice from the non-breaching party specifying the breach in reasonable detail and the remedy being sought. In the event Merchant terminates this Agreement due to Toast’s uncured breach, Merchant shall be entitled to a pro rata refund of any Software Fees paid for Services not delivered as of the date of termination, to the extent such Software Fees have been paid in advance.

8.4. Upon the Effective Date, Merchant agrees to pay Toast all Hardware and Software Fees, plus applicable Taxes, indicated in each applicable Order, for the total number of Locations indicated therein, and for the entire duration of the Term. Unless otherwise agreed to by Toast, Merchant acknowledges and agrees that it may terminate this Agreement at any time following the Effective Date, provided that Merchant shall remain responsible for payment of all Fees for Services provided by Toast through the effective date of termination. Additionally, Merchant shall incur and pay (a) an early termination fee equal to either (i) the remaining Fees for Software Subscription Fees that would have otherwise been due for the remainder of the then-current Term, or ii) for a Pay-as-you-go subscription, one-hundred and fifty dollars ($150.00) multiplied by the number of months remaining in the then-current Term, as applicable (“Early Termination Fee”), and (b) any applicable processing fee related to Software financing.


8.5. Upon any termination or expiration of an Order and/or this Agreement, Merchant's right to access and use the Services covered by the applicable Order(s) will terminate. Upon any such termination or expiration, all Sections of this Agreement which by their nature should survive termination or expiration will survive, including without limitation, the following Sections: Section 17 (Definitions), Section 4 (Usage Restrictions), Section 5 (Ownership; Merchant Data, Customer Data & Trademarks), rights to any payments of Fees or Net Sales Proceeds earned up to the date of termination, Section 9 (Disclaimer of Warranties), Section 10 (Limitation of Liability), Section 12 (Confidential Information), Section 14 (Notices) and Section 16 (General Provisions). Notwithstanding the foregoing, at Merchant's request if received within thirty (30) days of termination of the Order or Agreement for any reason other than termination by Toast for Merchant’s uncured material breach, to the extent Merchant is otherwise unable to access the information itself, Toast will permit Merchant to access the Services solely and exclusively to the extent necessary for Merchant to retrieve a copy of Merchant Data, Customer Data, and any other data, materials, and information collected by the Merchant as part of the Services and contained in Merchant’s Toast Account. Subject to the Payment Processing Terms, Merchant acknowledges and agrees that Toast has no obligation to retain Merchant Data and that Toast will have the right to irretrievably delete and destroy Merchant Data after thirty (30) days following the termination of this Agreement. Merchant agrees it will continue to permit Toast access to Merchant’s Bank Account until all amounts due under this Agreement are paid in full.

                       

9. Representations; Disclaimer of Warranties

9.1. Each party represents and warrants to the other party that it has the power and authority to enter into this Agreement.

9.2. Merchant represents, warrants and covenants to Toast that (a) it is a legal resident of, or is a business entity authorized to conduct business in, any jurisdiction in which it operates; (b) the name identified by Merchant when Merchant registered is its legal name or business name under which it sells goods and/or services; and (c) the taxpayer identification number identified by Merchant is its legal taxpayer identification number.

9.3. Limited Warranty and Return Policy. Toast represents, warrants and covenants to Merchant that, during the Term, the Services will materially conform to the printed and digital instructions, on-line help files, technical documentation and user manuals for the Services provided by Toast to Merchant, as the same may be updated by Toast from time to time in the ordinary course of business (together the “Specifications”). Merchant’s sole and exclusive remedy for Toast’s breach of this limited warranty is limited to Toast correcting the Services or, if such correction is not commercially reasonable, termination of this Agreement in connection with Section 8.3 above. Any Hardware sold by Toast to Merchant hereunder is covered by Toast’s Limited Warranty Policy and Toast, Inc. Return Policy available at https://pos.toasttab.com/limited-warranty, which is hereby incorporated by reference and made part of this Agreement.

                       

9.4. Toast does not warrant that the Services, which may permit Merchant to process payments or use the Services on a compatible third-party device, will be compatible with all third-party devices or carriers. Merchant’s use of the Services may be subject to the terms of Merchant’s agreements with its third-party device manufacturers and carriers. Such carriers’ normal rates and fees, such as data transfer fees, may apply and Merchant is solely liable for the payment of all such carrier fees. All third party hardware and other products included or sold with the Services are provided solely according to the warranty and other terms specified by such manufacturer who is solely responsible for service and support for its hardware product. For service, support, or warranty assistance, Merchant will contact the manufacturer directly.

9.5. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, TOAST AND ITS THIRD- PARTY PROVIDERS HEREBY DISCLAIM ALL EXPRESS OR IMPLIED WARRANTIES WITH REGARD TO THE SERVICES, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT AND QUALITY. TOAST AND ITS THIRD-PARTY PROVIDERS MAKE NO REPRESENTATIONS OR WARRANTIES REGARDING THE RELIABILITY, AVAILABILITY, TIMELINESS, SUITABILITY, ACCURACY OR COMPLETENESS OF THE SERVICES OR THE RESULTS MERCHANT MAY OBTAIN BY USING THE SERVICES. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, TOAST AND ITS THIRD-PARTY PROVIDERS DO NOT REPRESENT OR WARRANT THAT (A) THE OPERATION OR USE OF THE SERVICES WILL BE TIMELY, UNINTERRUPTED OR ERROR-FREE; OR (B) THE QUALITY OF THE SERVICES WILL MEET MERCHANT'S REQUIREMENTS. MERCHANT ACKNOWLEDGES THAT NEITHER TOAST NOR ITS THIRD-PARTY PROVIDERS CONTROL THE TRANSFER OF DATA OVER COMMUNICATIONS FACILITIES, INCLUDING THE INTERNET, AND THAT THE SERVICES MAY BE SUBJECT TO LIMITATIONS, DELAYS, AND OTHER PROBLEMS INHERENT IN THE USE OF SUCH COMMUNICATIONS FACILITIES. TOAST IS NOT RESPONSIBLE FOR ANY DELAYS, DELIVERY FAILURES, OR OTHER DAMAGE RESULTING FROM SUCH PROBLEMS. WITHOUT LIMITING THE FOREGOING, TOAST DOES NOT WARRANT OR GUARANTEE THAT ANY OR ALL SECURITY ATTACKS WILL BE DISCOVERED, REPORTED OR REMEDIED, OR THAT THERE WILL NOT BE ANY SECURITY BREACHES BY THIRD PARTIES. EXCEPT WHERE EXPRESSLY PROVIDED OTHERWISE BY TOAST, THE SERVICES ARE PROVIDED TO MERCHANT ON AN "AS IS" BASIS.

                       

10. Limitation of Liability

10.1. IN NO EVENT WILL TOAST BE LIABLE UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY: (A) FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (B) FOR LOSS OF USE, INACCURACY, COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY, LOSS OF PROFITS, DATA OR BUSINESS INTERRUPTION; OR (C) FOR ANY MATTER BEYOND ITS REASONABLE CONTROL, WHETHER OR NOT FORESEEABLE, EVEN IF TOAST HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE, AND EVEN IF A REMEDY SET FORTH HEREIN HAS FAILED ITS ESSENTIAL PURPOSE.

10.2. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW AND RULES, TOAST’S AGGREGATE LIABILITY FOR ALL CLAIMS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE TOTAL FEES ACTUALLY PAID BY MERCHANT TO TOAST IN THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE DATE OF THE APPLICABLE CLAIM.

                       

11. Indemnification

11.1 Merchant will indemnify, defend and hold harmless Toast and its directors, officers, employees, affiliates and agents from and against any and all losses, damages, liabilities, fines, fees, costs, expenses or other amounts whatsoever including all reasonable legal and accounting fees and expenses and all reasonable collection costs (including such amounts imposed or assessed by the Payment Networks or regulatory authorities) arising from any proceedings, claims, investigations or demands brought by any third party (including Payment Networks or regulatory authorities) to the extent resulting from or arising out of (a) Merchant’s use of the Services, other than those attributable to Toast’s gross negligence or willful misconduct, (b) Toast’s processing activities on behalf of Merchant, (c) Merchant’s, or any Employees’, breach or non-performance of any provision of this Agreement; (d) any Tax assessment or (e) any claims against Toast related to the use by Toast of any Merchant Data or any of Merchant’s intellectual property.

                       

12. Confidential Information

12.1. Each party (the "Receiving Party") understands that the other party (the "Disclosing Party") has disclosed or may disclose Confidential Information relating to the Disclosing Party's business under this Agreement. For the avoidance of doubt, Toast’s Confidential Information includes the Services, Hardware, and any information relating thereto. The Receiving Party agrees: (a) to take reasonable precautions to protect such Confidential Information; (b) not to use such Confidential Information except to exercise its rights or perform its obligations under this Agreement; and (c) not to disclose to any third person any such Confidential Information other than as expressly permitted in this Agreement. The Disclosing Party agrees that the foregoing obligations will not apply with respect to any Confidential Information that the Receiving Party can document (i) is or becomes generally available to the public by Disclosing Party or a third party not bound by a confidentiality obligation; (ii) was in Receiving Party’s possession or known by it prior to receipt from the Disclosing Party; (iii) was rightfully disclosed to Disclosing Party by a third party not bound by a confidentiality obligation; or (iv) was independently developed without use of any Confidential Information of the Disclosing Party as demonstrated by Receiving Party’s written records.

                       

12.2. Notwithstanding any provision of this Agreement to the contrary, either party may disclose the other party’s Confidential Information, in whole or in part (i) to its Representatives who have a need to know and are legally bound to keep such Confidential Information confidential by written confidentiality obligations or, in the case of professional advisors, are bound by ethical duties to keep such Confidential Information confidential, consistent with the terms of this Agreement; (ii) as required by law (in which case Merchant shall, if permitted by Applicable Law and Rules, provide Toast with prior written notification thereof and the opportunity to contest such disclosure, and shall use its reasonable efforts to minimize such disclosure in each case to the extent permitted by applicable law), or (iii) otherwise in accordance with Toast’s Privacy Statement. The Receiving Party will remain primarily responsible for any breach of this Section 12 by any of its Representatives with whom it shares the other party’s Confidential Information as permitted by this Section 12.2.

                       

13. Data Privacy & Security

13.1. The parties acknowledge that the Personal Information of Merchant, Merchant’s Employees and Customers will be Processed as part of the Services. For the purposes of any Personal Information Processed under this Agreement, the terms of the Merchant Data Processing Addendum found at https://pos.toasttab.com/privacy/merchantdpa shall apply. The Merchant Data Processing Addendum forms part of and is incorporated into this Agreement by reference.

13.2. For certain Services, Toast will act as a Processor and will Process Personal Information on your behalf. For example, Toast Processes (i) the Personal Information of Merchant Employees in connection with Services that relate to the management and administration of Employees on behalf of the Merchant, and (ii) the Personal Information of Customers in connection with certain Services that allow the Merchant to communicate with and provide offerings directly to their Customers, including loyalty, gift card, guestbook and marketing products. Additional details on each party’s obligations can be found in the Merchant Data Processing Addendum.

13.3. Each Party is responsible for implementing and maintaining appropriate technical, organizational and administrative security controls to safeguard Personal Information as well as other data associated with its respective obligations under this Agreement and the provision of the Services. For the avoidance of doubt, this includes access controls and ensuring that Personal Information or other data collected as part of the Services is not improperly disclosed. In all cases, this obligation shall not limit Merchant’s obligations regarding the implementation of any security measures required under the Applicable Data Protection Laws.

13.4. If either Party (whether directly or through a third party) discovers or becomes aware of a Security Incident, the discovering Party shall promptly notify the other Party and take any additional steps that are reasonably necessary to remedy any non-compliance with this Agreement. This includes complying with all applicable requirements of this Agreement as well as cooperation with the investigation of the Security Incident. To the extent any Security Incident is attributable to the acts or omissions of the Merchant, Merchant shall bear all costs associated with remedying the Security Incident and complying with its legal obligations under the Applicable Data Protection Laws.


13.5. As part of this Agreement, Toast shall, with reasonable notice, have the right to perform an audit of Merchant’s facilities, systems and personnel to verify Merchant’s compliance with this Section if it has a reasonable suspicion of a breach or potential breach of the terms of this Agreement. Merchant will provide full cooperation to Toast and its Representatives in connection with any such audit.

                       

14. Notices

14.1 Except as provided in Section 16, Toast may give notice applicable to Toast’s general customer base by means of a general notice on the Services portal, and may also send notice applicable to Toast’s general customer base as well as notices specific to Merchant to the mailing address, email address, telephone number, Merchant’s account on any electronic platform Merchant uses to access Toast’s services, and any other contact information Toast has on file for Merchant. It is Merchant’s responsibility to maintain the accuracy of Merchant’s contact information, and Merchant must notify Toast immediately of any change. Any communication Toast sends to the contact information Toast has on file for Merchant before Merchant notifies Toast of any change, and Toast has an opportunity to act on such change, shall be considered received by Merchant.

14.2 Notices to Toast must be sent via registered mail, postage prepaid, return receipt requested, to Toast, Inc., 401 Park Drive,Boston, MA 02215, Attn: General Counsel.

                       

15. Force Majeure

Neither party shall be in default of its obligations under this Agreement to the extent its performance is delayed or prevented by any act of God, earthquake, flood, national disaster, strike, embargo, riots, sabotage, utility or transmission disruption or outage, equipment or widespread communications network or internet failure, governmental or regulatory changes, acts of declared or undeclared war, terrorism, fire, unforeseen vendor issues, pandemic or any other similar event beyond such party’s control (each a “Force Majeure Event”). Upon the occurrence of a Force Majeure Event, the non-performing party shall be excused from any further performance or observance of the affected obligations for as long as such circumstances prevail, and provided that such party continues to attempt to recommence performance or observance to the greatest extent possible as soon as possible and without delay.                   

16. General Provisions

16.1 Governing Law and Jurisdiction. The Parties intend that this Agreement be construed and enforced in accordance with the laws of the Commonwealth of Massachusetts without regard to any conflict-of-law or choice-of-law rules, and that the rule of construction that provides that a document is construed against the maker thereof be inapplicable in the construction of any of the terms of this Agreement. The Uniform Computer Information Transactions Act, and the United Nations Convention on the International Sale of Goods, shall not apply to this Agreement.

16.2 Dispute Resolution. Any dispute, claim, or controversy arising out of or relating in any way to this Agreement or the breach, termination, enforcement, interpretation, or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, or in connection with Merchant’s use of the Services or our websites, shall be determined through confidential binding arbitration in Boston, Massachusetts before one arbitrator. The confidential binding arbitration shall be administered by AAA pursuant to its Commercial Arbitration Rules, and the parties shall maintain the confidential nature of the arbitration proceeding and the award, including the hearing. Judgment on the award may be entered in any court having jurisdiction. Notwithstanding the foregoing, this Agreement shall not preclude either party from pursuing a court action in the state or federal courts in Boston, Massachusetts for the sole purpose of obtaining a temporary restraining order or preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an arbitration proceeding pursuant to this Agreement. In any event, any action or proceeding by Merchant against Toast relating to any dispute must commence within one year after the cause of action accrues.

16.3 Prohibition of Class and Representative Actions and Non-Individualized Relief. Except where prohibited by Applicable Law and Rules, Merchant and Toast agree that each may bring claims against the other only on an individual basis and not as plaintiff or class member in any purported class or representative action or proceeding. Unless both Merchant and Toast agree otherwise, the arbitrator may not consolidate or join more than one person’s or party’s claims and may not otherwise preside over any form of a consolidated, representative, or class proceeding. Also, the arbitrator may award relief (including monetary, injunctive, and declaratory relief) only in favor of the individual party seeking relief and only to the extent necessary to provide relief necessitated by that party’s individual claim(s).

16.4 Pre-Arbitration Dispute Resolution. Toast is always interested in resolving disputes amicably and efficiently, and most concerns can be resolved quickly and to the participant’s satisfaction by contacting Toast’s support team at Toast Central located
at central.toasttab.com. If such efforts prove unsuccessful, a party who intends to seek arbitration must first send to the other, by certified mail, a written notice of dispute (the “Notice of Dispute”). The Notice of Dispute to Toast should be sent to Toast at 401 Park Drive, Boston, MA 02215, Attn: General Counsel. The Notice of Dispute must (i) describe the nature and basis of the claim or dispute and (ii) set forth the specific relief 
sought. If Toast and Merchant do not resolve the claim or dispute, despite good faith attempts, within sixty (60) calendar days after the Notice of Dispute is received, Merchant or Toast may commence an arbitration proceeding. During the arbitration, the amount of any settlement offer made by either party shall not be disclosed to the arbitrator until after the arbitrator determines the amount, if any, to which the parties are entitled.                       

16.5 No Waiver. The failure of either party to enforce any right or provision in this Agreement will not constitute a waiver of such right or provision unless acknowledged and agreed to by such party in writing; and any waiver with respect to a specific circumstance will not constitute a waiver of the same provision or any other provision of this Agreement for any subsequent circumstance unless expressly provided by such written agreement, except that Toast may modify this Agreement to comply with, and as a result of, amendments to Applicable Laws and Rules. The Section headings are provided merely for convenience and will not be given any legal import in the interpretation or enforcement of this Agreement. No joint venture, partnership, employment, or agency relationship exists between Toast and Merchant as a result of this Agreement or use of the Services.

16.6 Entire Agreement. This Agreement, together with all exhibits, attachments, and addenda incorporated by reference herein and in any Orders and/or Toast Master Services Agreement, represent the parties' entire understanding relating to the Services and the subject matter hereof and thereof, and supersede any prior or contemporaneous, conflicting, or additional communications, whether written or verbal, and will control over any different or additional terms of any non-Toast ordering document, and no terms included in any such purchase order or other non-Toast ordering document will apply to the Services or Hardware. This Agreement may be amended only by written agreement signed by the parties, except (i) as provided in Section 8.1 in connection with a Renewal Term, and (ii) that Toast may update this Merchant Agreement via a general notice to its customer base by providing reasonable notice and having Merchant check a box agreeing to such updated Merchant Agreement. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be invalid or unenforceable, if the essential terms and conditions of this Agreement for each party remain valid, binding, and enforceable, then such provision(s) will be deemed to be restated and construed to reflect the original intentions of the parties in accordance with Applicable Law and Rules with respect to the invalid or unenforceable provision(s), and with all other provisions of this Agreement remaining in full force and effect.

16.7 Assignment. Merchant may not assign this Agreement without the prior written approval of Toast, such approval not to be unreasonably withheld or delayed. Any purported assignment in violation of this Section 16.7 will be null and void and without force or effect.

16.8 Electronic Signature. Signatures transmitted and received electronically, such as through transmission of a scanned or faxed document, or via secure email or a service such as DocuSign or a process that otherwise requires typing your name and acknowledging it as an electronic signature, or electronically indicating assent, acknowledgement or acceptance of an agreement, document or other writing, are true and valid signatures for all purposes hereunder and shall bind the parties to the same extent as that of a live signature on paper. Any transactions or services resulting from the Merchant’s instructions which Toast receives in the Merchant’s name or under the Merchant’s credentials, including any electronic signature, shall be deemed to have been “a writing” and authenticated by the Merchant “in writing” for purposes of any law in which a writing or written signature is needed or required. All electronic signatures and records maintained by Toast of transactions under the Merchant’s or its authorized users’ credentials shall be deemed to have been “signed” and will further constitute an “original” when printed from records established and maintained by Toast or its agent in the normal course of business. The Merchant agrees not to contest the authorization for, or validity or enforceability of, Toast’s electronic records and documents, or the admissibility of copies thereof, under any applicable law relating to whether certain agreements, files or records are to be in writing or signed by the party to be bound thereby. Records and “signed” documents, if introduced as evidence on paper in any judicial or other proceedings, will be admissible to the same extent and under the same conditions as other documentary business records.16.9. Representatives. Each party shall be primarily responsible for each of its respective Representatives’ compliance with this Agreement.

                       

17. Definitions

                       

“Agreement” means collectively: (i) this Merchant Agreement, (ii) the Toast Master Services Agreement ( if applicable), (iii) any Order(s), (iv) the End User License Agreement, (v) Toast’s Limited Warranty, (vi) Digital Ordering Terms (if applicable), (vii) Guest Terms of Service, (viii) the Privacy Statement, (ix) the Payment Processing Terms, and any other exhibit, addendum, schedule, or attachment to any of the foregoing that is incorporated by reference therein or herein.

                       

“Applicable Data Protection Laws” means all applicable federal, state, provincial, regional and local laws, directives, regulations, and rules imposed by any government, agency or authority in relation to the processing and security of Personal Information, including, but not limited, to the GDPR, the EU Directive on Privacy and Electronic Communications 2002/58/EC (“PECR”), the data protection law of the United Kingdom, including but not limited to the Data Protection Act 2018 (“UK GDPR”), Switzerland’s Federal Data Protection Act of 19 June 1992, Canada’s Personal Information Protection and Electronic Documents Act (“PIPEDA”), as well as any applicable provincial legislation, the CCPA as amended, replaced or superseded from time to time and Virginia’s Consumer Data Protection Act.

                       

“Applicable Law and Rules” means all federal, state, provincial, local and foreign laws, rules, regulations, regulatory guidance, and industry best practice (as may be enacted or amended from time to time) applicable to Merchant and/or Merchant’s business, including without limitation, any applicable tax laws and regulations, the requirements of the Bank Secrecy Act as amended by the USA Patriot Act (or similar law, rule or regulation), the requirements of the Office of Foreign Assets Control, the then-current version of the Payment Card Industry Data Security Standards as made available
at 
https://www.pcisecuritystandards.org (“PCI-DSS”) and the Operating Regulations. For the purposes of this Agreement, Applicable Laws and Rules includes Applicable Data Protection Laws. Merchant shall refer to the following for applicable PCI-DSS and Payment Network requirements, as may be updated from time to time:                            

     ●  PCI-DSS: www.pcisecuritystandards.org

      


“Card(s)” means most U.S.-issued, and most non-U.S. issued, credit and debit cards with a Visa, Mastercard, Discover or American Express logo, and/or any other card types, if applicable, of which Toast reserves the right to add or remove at any time in its sole discretion.


“Chargeback” means a transaction that is reversed or charged back to Merchant’s Bank Account if the transaction: (a) is disputed; (b) is reversed for any reason by one or more Payment Network(s), Toast’s processor, a Customer, or Toast’s financial institution; (c) was not authorized; or (d) is unlawful, suspicious or in violation of the terms or conditions of this Agreement.


“Community Philosophy” means Toast’s Community Philosophy framework of expectations for conduct for interactions between Toast employees and customers, partners, vendors, etc. and process for addressing conduct that does not align with our standards and values, available at the Toast Investor Relations webpage
at 
https://investors.toasttab.com.


“Confidential Information” means (i) the terms (but not the fact or existence) of this Agreement, and (ii) all trade secrets and other confidential and/or proprietary information disclosed by the Disclosing Party to the Receiving Party orally, or in writing, whether or not designated as proprietary or ‘Confidential’ or some similar designation, including without limitation customer lists, financials, products, services, organizational structure and internal practices, forecasts, sales, budgets, trade secrets, know-how, designs, specifications, documentation, components, source code, object code, images, icons, audiovisual components and objects, schematics, drawings, notes, analyses, compilations, reports, forecasts, studies, data, statistics, summaries and other materials disclosed to the Receiving Party that contain, or are based on, in whole or in part, any of the information described in this definition.


“Customers” refers to Merchant’s customers or guests.


“Customer Data” means data and information, which may include Personal Information, collected by Toast via the Services, such as when a Customer enters payment information, submits an online order, enrolls in a loyalty program or requests a digital receipt, and may include without limitation: (i) contact information (such as name, phone number, email address, etc.); (ii) information about the transaction; (iii) Card information; (iv) Customer purchase history; and (v) location information.

                       

“Effective Date” means the date of last signature of an Order Form or Toast Master Services Agreement, as applicable.

                       

“Employees” means Merchant’s employees, agents and contractors who are authorized to use the Services.

                       

“End User License Agreement” or “EULA” means the additional terms of service applicable to Merchant’s and its Employees’ use of the Services, including without limitation, the Toast App, available
at 
http://pos.toasttab.com/end-user-license-agreement.

                       

“Feedback” means suggestions, enhancement requests, ideas, feedback, recommendations or other input about the Services, Professional Services and/or Hardware.

                       

“Fees” means any fees of any kind whatsoever (whether denominated as “fees,” “charges,” “rates,” or otherwise) set forth in an Order or otherwise owed to Toast by Merchant in connection with the Agreement, including without limitation, fees for Software, Hardware, Professional Services and amounts in respect of Card processing rates.

                       

“Go-Live Date” means the actual date upon which Merchant begins using the Services and is capable of processing Payments in a live production environment (if applicable).

                       

“Hardware” means any terminal, tablet, kitchen display screen (“KDS”), switch, router, card, cable, wall mount, printer or other item of physical hardware, as made available by Toast, and purchased under an Order.

                       

“Location(s)” means the actual number of locations for which Merchant is agreeing to purchase and/or license, as applicable, the Hardware, Services and/or Professional Services, as reflected in an Order.

                       

“Intellectual Property Rights” means any and all rights under patent law, copyright law, trade secret law, trademark law, moral rights, goodwill, and any and all other intellectual property rights under the laws of any governmental authority that are in existence now and in the future, including without limitation any applications, registrations, extensions and renewals related to the foregoing.

                                                       

“Marketplace Facilitator Jurisdiction“ means a state or local jurisdiction where Toast may be required to collect and remit Taxes from the Customer on behalf of Merchant and remit such taxes directly to the tax authority.

                       

“Merchant” means the contracting entity listed on the applicable Order Form or Toast Master Services Agreement, as applicable.

                       

“Merchant Data” means any files, graphics, images, text, emails, data or other information submitted by Merchant in the course of using the Hardware and Services and/or collected by Toast, including without limitation Merchant’s name, address, contact information, Employee information, products, loyalty program information, logos, promotional information, advertisements, transaction details and other information or material submitted by Merchant to Toast through the Services, excluding Customer Data. Merchant data may include Personal Information, whether from Merchant’s Employees, existing customer information or otherwise.

                       

“Merchant Marks” means Merchant’s business name, logo, trademarks, service marks, images, domain names and other similar content provided to Toast for use with the Services.

                       

“Merchant’s Bank Account” means the bank account (or accounts) designated by Merchant on the Order Form or Toast Master Services Agreement, as applicable, for the facilitation of transactions, settlement of Net Sales Proceeds and/or payment of Fees hereunder.

                       

“Net Sales Proceeds” means funds remitted by Toast to Merchant resulting from Payments, less all applicable Fees due and owing relative to the applicable transaction.

                       

“Off-Line Mode” shall have the meaning provided in the Payment Processing Terms.

                       

“Operating Regulations” means the collective body of Card brand and payment network by-laws, operating requirements and/or all other rules, policies and procedures, as each may be amended or supplemented from time to time, including but not limited to the Payment Card Industry Data Security Standards, the VISA Cardholder Information Security Program, the Mastercard Site Data Protection Program, the Mastercard Click to Pay Terms and Conditions, and any other program or requirement that may be published and/or mandated by a Card brand or payment network.

                       

“Order” or “Order Form” means any Toast ordering document (including any online order) specifying the Services, Hardware and Professional Services purchased and/or licensed hereunder, as mutually agreed to and accepted by Toast. The Order may also contain the merchant application and related data.

                       

“Pay-as-you-go Subscription” means an agreement to purchase Services where the Merchant agrees to pay a Platform Fee based on usage of the Services, as well as any other applicable Fees as may be disclosed to the Merchant.

                                                          

“Payment Network” means American Express Travel Related Services Company, Inc. (“American Express”), DFS Services, LLC (“Discover”), Mastercard International Inc. (“Mastercard”), China UnionPay Co. Ltd., and/or Visa Inc. (“Visa”), and/or any other payment networks that Toast may utilize in its sole discretion.

                       

“Payment Processing Terms” or “Payment Terms” means the then-current version of the processing terms and conditions available
at 
https://pos.toasttab.com/payment-processing-terms.

                       

“Payments” means a Card payment made to Merchant by a Customer.

                       

“Personal Information” means any information relating to an identified or identifiable individual or household. Personal Information may include, but is not limited to, a name, address, contact details, unique identifiers, payment card information, biometric identifiers and information, preferences, history and profile data, IP addresses, and location-based information, but excludes aggregated or anonymized information. Personal Information shall include any information that constitutes “personal information” or “personal data” under the Applicable Data Protection Laws.

                       

“Privacy Statement” means the then-current version of Toast’s Privacy Statement available at https://pos.toasttab.com/privacy.

                       

“Process” or “Processing” means any operation or set of operations performed on Personal Information or sets of Personal Information, whether or not by automated means, including, but not limited to, the collection, recording, access, organization, structuring, storage, use, adaption, alteration, retrieval, disclosure, restriction, deletion or destruction of Personal Information.

                       

“Processor” means the entity which processes Personal Information on behalf of a Controller. For the purposes of this Agreement, “Controller” includes similarly defined terms under the Applicable Data Protection Laws, including, but not limited to, a “service provider” or “contractor”.

                       

“Professional Services” means any implementation services and/or training provided by Toast to Merchant pursuant to an Order.

                       

“Representatives” means a party’s respective officers, employees, directors, consultants, agents, professional advisors (e.g., attorneys, auditors, financial advisors, accountants and other professional representatives), contractors and third-party service providers.

                       

“Required Tax Reporting“ means information that Toast is required to provide to certain tax authorities under Applicable Law and Rules.

                       

“Reserve” or “Reserve Account” means an amount of Merchant funds designated by Toast and/or its payment providers that must be held and maintained by Toast and/or its payment providers, or by Merchant if directed by Toast, in order to protect Toast from risks related to Merchant’s acts or omissions as more fully described in Section 8 of the Payment Processing Terms.

                       

“Security Incident” means any accidental or unlawful destruction, loss, alteration, theft, unauthorized disclosure of, or access to, Personal Information.

                       

“Services” means Toast’s websites, Software, the Toast Platform, Toast Apps, supported integrations with third parties, customer support, and the Payment Processing services described under Section 7 (Payment Processing) of this Agreement or any other current or future services offered by Toast.

                       

“Software” means Toast’s point-of-sale restaurant, hospitality and retail management system made available to Merchant via the Toast Platform, including both online and offline components, products, services, features, content, and updates related thereto.

                       

“Specifications” means the printed and digital instructions, on-line help files, technical documentation and user manuals for the Services provided by Toast to Merchant.

                       

“Taxes” means taxes, levies, or duties imposed by taxing authorities. “Toast Account” means Merchant’s account with Toast.

                       

“Toast Apps” means, collectively, mobile applications made available by Toast as part of the Toast Services, for download by Merchants, Employees or Customers, as applicable, that enable Merchants, Employees and Customers to interact with, access and use the Services.

                       

“Toast Digital Ordering Terms” means the terms and conditions governing the Toast Apps and associated website, software, and other products and services provided by Toast to enable Customersguests to make purchases from Merchant (collectively, “Toast Digital Ordering Services”), which are available
at https://pos.toasttab.com/toast-takeout-terms.

                       

“Toast Limited Warranty” means the limited warranty for Hardware and Software extended to Merchant by Toast, and available
at https://pos.toasttab.com/limited-warranty.

                       

“Toast Master Services Agreement” means a master services agreement that Toast may enter into with select merchants that contains certain terms, conditions, and/or fees or other arrangements agreed upon by such merchant and Toast.

                       

“Toast’s monthly POS core tablet subscription” means the software directly associated with usage of Toast’s hardware POS counter-top tablets which are used to process payments.


“Toast Platform” means Toast’s proprietary online and offline software system either installed on Hardware, or made available for download by Merchant online, that enables Employees and Customers to interface with, access and use the Services.