Terms of Use User Agreement for X.com's PayPal™ Service This Agreement applies to your use of X.com's PayPal™ payment service and any related products and services (collectively the "Service"). This Agreement affects your rights and you should read it carefully. In this Agreement, "you" or "your" means any person or entity using the Service ("Users"). Unless otherwise stated, "X.com" will refer collectively to PayPal, X.com Corporation and their respective parent or subsidiary companies, affiliates, officers, employees and agents. By checking the consent box on the account signup page, you represent that you understand and accept the terms and conditions of this Agreement. We may amend this Agreement at any time by posting the amended terms to our site, and your continued use of the Service will constitute acceptance of the amended terms. This Agreement was last modified on October 16, 2000. I. User Responsibilities Eligibility. In order to use the Service, you must register for a Personal, Premier, or Business account. If you use the Service for the purpose of conducting e-commerce on a regular basis, you agree to register for, or upgrade to, a Premier or Business Account. You agree that you will register for and maintain no more than one Personal and one Premier or Business Account. X.com reserves the right to terminate duplicate accounts. You must be at least 16 years of age to register for an account. If you are under the age of 18, you hereby represent that you are using the service with the consent of your parent or guardian. No Multiple Accounts. Should you register for more than one Personal Account, X.com reserves the right to terminate all of your accounts and will restrict you from the system going forward. Users may register and hold one Personal Account and either one Premier or one Business Account. Registration Information. You agree to provide true, accurate and complete registration information and to maintain and promptly update your information as applicable. You agree not to impersonate any person or use a name that you are not authorized to use. If any information you provide is untrue, inaccurate, not current, or incomplete, without limiting other remedies, X.com has the right to terminate your use of the Service and X.com, its agents, suppliers, and subcontractors have the right to recover from you any costs or losses incurred as a direct or indirect result of the inaccurate or incomplete information. You authorize X.com and its agents, suppliers and subcontractors to make any inquiries they consider necessary to validate your registration. International Use. You must be a resident of the United States to use the Service. International accounts will be available soon. Withdrawals. Once a User has confirmed an email address, a User may elect to withdraw all or part of the balance of his or her account by direct deposit into the User's bank account or by physical check sent to the User's street address. Spending Limits. Each User will be limited to $250.00 of spending until confirmation of email and bank account has been completed. Users who are paying with a credit card and signing up through a Web Accept or Instant Purchase transaction will be limited to $500.00 of spending until confirmation of email and bank account has been completed. Upon confirmation of both email and bank account, the credit card charge limit for each User will increase to $1,000.00 over a 6-month period, subject to credit availability from the User's credit card issuer. Payments to a Premier or Business Account will not count toward the User's charge limit. This limit is subject to change. Credit Card Receiving Limit. Personal Accounts are limited to receiving $500 of credit card payments every six months. Payments funded from the sender's bank account or existing PayPal account balance will not count against the recipient's limit. Payments funded wholly or partially by a credit card are classified as credit card payments in the PayPal system. Minimum Transaction Size. The minimum transaction amount for any payment between Users is $0.01. Electronic Transfers. Upon your request, X.com will make electronic transfers via the Automated Clearing House (ACH) system to and from your bank account. You agree that such requests constitute authorization for such transfers. If you request an electronic transfer from your bank account, you grant X.com the right to validate the authenticity of your bank account by making two small deposits to your bank account at X.com's own expense. Your bank account and your PayPal account will be considered verified once you correctly enter the deposit amounts on the X.com website. X.com will never make electronic transfers from your bank account without your explicit permission. Furthermore, X.com provides you unlimited protection against unauthorized withdrawals from your bank account. No Cash Advances. You agree not to engage in behavior that could reasonably be construed as providing yourself a cash advance from your credit card, and agree not to assist users who engage in behavior that could reasonably be construed as providing themselves a cash advance from their credit cards. Such behavior includes, but is not limited to, a User paying someone by charging a credit card, then receiving the funds back from the original Recipient and attempting to withdraw the funds from an account. X.com reserves the right to reverse all such transactions and to terminate any accounts that are associated with such behavior. Correct E-mail. You agree that you have access to the Internet and to a current e-mail address. You have sole responsibility for providing X.com with a correct and operational e-mail address. X.com will not be liable for any undelivered e-mail communications or any costs you incur for maintaining Internet access and an e- mail account. You must promptly notify X.com of any change in your e-mail or postal mailing address. Electronic Communications. To the fullest extent permitted by applicable law, this Agreement and any other agreements, notices or other communications regarding your account and/or your use of the Service ("Communications"), may be provided to you electronically and you agree to receive Communications in an electronic form. Electronic Communications may be posted on the pages within the X.com website and/or delivered to your e-mail address. You will print a copy of any Communications and retain it for your records. All Communications in either electronic or paper format will be considered to be in "writing," and to have been received no later than five (5) business days after posting or dissemination, whether or not you have received or retrieved the Communication. X.com reserves the right but assumes no obligation to provide Communications in paper format. Your consent to receive Communications electronically is valid until you revoke your consent by notifying X.com of your decision to do so, by sending an email message to help@paypal.com or by telephoning customer sevice. If you revoke your consent to receive Communications electronically, X.com may terminate your right to use the Service. No Spam. You agree not to use unsolicited email, usenet, message board postings, or similar methods of mass messaging (spam) to gather referral bonuses. The use of spam to promote the Service has strict negative consequences. We will immediately and permanently terminate the account of any User who has used unsolicited email to gain referrals. In addition, you may be subject to state and federal penalties and other legal consequences under applicable law if you send unsolicited email. Our Anti-Spam Policy is intended to protect our users, the Internet, and us. Privacy. Our Privacy Policy is posted here. You agree that you have had an opportunity to review, download or print our Privacy Policy. You consent to have your name, email address, date of sign- up, and whether you have verified (or not verified) an account at another financial institution made available as identification to anyone whom you have paid or who is attempting to pay you through the PayPal service. Handheld Devices. In the event of the loss or malfunction of your handheld device, payments made since your last connection to the PayPal server may be lost, and X.com Corp. disclaims all liability for such loss. Not a Bank. You acknowledge that (i) the Service is not a banking service (ii) Service accounts are not insured by any government agency, (iii) the Service is not subject to banking regulations and (iv) X.com will invest in liquid assets and that interest earned on those assets will be the property of X.com. Escheat. If you do not access your account for a period of five years, it will be terminated. After the date of termination, you will have 90 days to redeem your account balance, after which it will be subject to applicable state laws regarding escheat of unclaimed property. Passwords. You may not divulge your account password(s) to anyone else, nor may you use anyone else's password. X.com is not responsible for losses incurred by Users as the result of their misuse of passwords. Close Account. You may close your account at any time, provided all applicable fees for services and account management have been paid in full. Upon closure of an account, any monies remaining in the account, less any applicable fees, will be immediately and automatically paid in full. You will remain liable for all obligations related to the account even after such account is closed. Hacking. If you use, or attempt to use the Service for other purposes including but not limited to tampering, hacking, modifying or otherwise corrupting the security or functionality of Service, your account will be terminated and you will be subject to damages and other penalties, including criminal prosecution where available. Assignability. You may not transfer any rights or obligations you may have under this Agreement without the prior written consent of X.com. X.com reserves the right to transfer any right or obligation under this Agreement without your consent. Indemnification. You agree to indemnify and hold X.com, its affiliates, officers, directors and employees harmless from any claim, action, demand, loss, or damages (including attorneys' fees) made or incurred by any third party arising out of or relating to your use of the Service. Choice of Law. This Agreement is governed by the laws of the state of California as such laws are applied to agreements entered into and to be performed entirely within California by California residents. Arbitration. Any controversy or claim arising out of or relating to this Agreement or the provision of Services shall be settled by binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association. Any such controversy or claim shall be arbitrated on an individual basis, and shall not be consolidated in any arbitration with any claim or controversy of any other party. The arbitration shall be conducted in Palo Alto, California, and judgment on the arbitration award may be entered in any court having jurisdiction thereof. Either you or X.com may seek any interim or preliminary relief from a court of competent jurisdiction in Palo Alto, California necessary to protect the rights or property of you or X.com Corp. (or its agents, suppliers, and subcontractors) pending the completion of arbitration. II. Rights and Disclaimers of X.com Processing. X.com shall make reasonable efforts to ensure that requests for electronic debits and credits involving bank accounts and check issuances are processed in a timely manner. However, a number of factors, several of which are outside of our control, will contribute to when the funds are received. We make no representations or warranties regarding the amount of time needed to complete processing, such as delays in the banking system or the U.S. mail service, nor shall we be liable for any actual or consequential damages arising from any claim of delay. Miscellaneous Disclaimers. (a) X.com reserves the right to hold funds beyond the normal distribution periods for transactions it deems suspicious to ensure integrity of the funds. (b) X.com shall not be responsible for payments made to unintended Recipients due to the input of incorrect information by Senders or for payments made in incorrect amounts. X.com shall not be responsible for the verification of the identity of Users. (c) X.com shall not be responsible for any information lost due to malfunction or loss of a handheld device. (d) X.com shall not be obligated to pay a User for any Payments for which X.com has not been fully paid by the Sender's credit card issuer. (e) X.com will not have any liability in connection with any unauthorized interception or use of data relating to you or the PayPal service; any inability to use or access the service or the PayPal website for any reason; any actions or transactions by an individual that uses your user name and password; or any cause over which X.com Corp. does not have direct control, including problems attributable to computer hardware or software (including computer viruses), telephone or other communications, or Internet service providers. (f) In no event shall X.com be liable (A) for damages caused other than by intentional misconduct or (B) for any indirect, special, incidental, consequential or punitive damages whatsoever (including, but not limited to, damages for lost profits, disclosure of confidential information, or loss of privacy), arising out of or in any way related to the use of or inability to use business service or the PayPal website or any of the associated services, even if X.com Corp. has been advised of the possibility of such damages. In no event shall X.com Corp. be liable for any act or omission of any third party (such as, for example, any provider of telecommunications services, internet access or computer equipment or software) or any circumstances beyond our control (such as, for example, a fire, flood, or other natural disaster, war, riot, strike, act of civil or military authority, equipment failure, computer virus, or failure or interruption of electrical, telecommunications or other utility services). Restrictions. X.com, at its sole discretion, reserves the right to restrict an account for any one of the following events: Reports of unauthorized or unusual credit card use associated with the account including, but not limited to, notice by the card issuing bank Reports of unauthorized or unusual bank account use associated with the account Complaints received regarding non-shipment of merchandise, merchandise not as described, or problems with merchandise shipped Initiation of a charge back process through your issuing bank Receipt of potentially fraudulent funds Unconfirmed identity Initiation of transactions considered to be cash advances or assisting in cash advances Sending unsolicited, commercial email or posting referral links on web sites where they are not permitted Opening multiple Personal accounts The account has been used in or to facilitate fraudulent activity Inability of United States Postal Service to deliver the street address confirmation letter to the address associated with the account Reports of someone other than the intended recipient receiving the Street Address Confirmation letter in the mail Name on the bank account associated with the PayPal account does not match the name on the PayPal account Insufficient funds in the PayPal account to cover the return of an Electronic Funds Transfer for insufficient funds in the bank account, incorrect bank routing number, or incorrect bank account number Insufficient funds in the PayPal account to cover the return of a check sent in for deposit. Use of an an anonymizing proxy. Termination. X.com, in its sole discretion, reserves the right to terminate this Agreement, access to its web site, or access to Service without notice for any reason and at any time. Trademarks. X.COM, PAYPAL and all related logos, products and services described in this website are either trademarks or registered trademarks of X.com Corporation, or their licensors, and (aside from "Use of Logos" below) may not be copied, imitated or used, in whole or in part, without the prior written permission of X.com. In addition, all page headers, custom graphics, button icons, and scripts are service marks, trademarks, and/or trade dress of X.com and may not be copied, imitated, or used, in whole or in part, without the prior written permission of X.com. Use of Logos. Notwithstanding the above, HTML logos provided by X.com through its Affiliate Program, Web Accept feature, or Auctions Tools features ("Logos"), may be used without prior written consent for the purpose of directing web traffic to the Service. These Logos may not be altered, modified, or changed in any way, or used in a manner that is disparaging to X.com or the PayPal service. Logos may not be displayed in any manner that implies sponsorship or endorsement by X.com. X.com is a payment service, and no agency, partnership, joint venture, employee- employer or franchiser-franchisee relationship is intended or created by this Agreement. III. Insurance Against Unauthorized Access In General. X.com protects Users from unauthorized transactions against your online account with up to $100,000 in coverage per loss of SafeWeb® Remote Banking Insurance (provided by Travelers Property Casualty, a member of Citigroup). There are no additional fees to receive this benefit. Insurance Terms. The SafeWeb Remote Banking Insurance Master Policy responds to losses that you would normally have liability for under applicable banking regulations. It is very important that you contact us at once if you believe your user ID or password has been compromised, or if someone has transferred or may transfer money from your account without your permission. Under applicable banking regulations, the extent of your liability for an unauthorized transaction is largely determined by your promptness in notifying us or your bank if someone has gained access to your password, or if a transfer or withdrawal in your monthly statement is incorrect or unauthorized. Notifying us quickly limits your liability: a) If you notify us within two business days after you learn that your password or other means to access your account may have become known by an unauthorized person, you can lose no more than $50.00 if an unauthorized person uses your password or other means to access your account without your permission to initiate a transaction. If you do not notify us within two business days, and we can prove that we could have stopped someone from using your password or other means to access your account without your permission if you had told us, you could be liable for as much as $500.00. b) We will periodically email you a notice to inspect your transaction history online. If your transaction history shows electronic funds transfers that you did not make or authorize, notify us at once. If you do not notify us within 60 days after receiving notice, you may not recover any money you lose after the 60 days if we can prove that we could have stopped someone from taking the money if you had notified us in time. If a good reason (such as a long trip or hospital stay) kept you from notifying us, we may extend the time periods. c) In case of unauthorized transactions, payment problems, errors or questions about your account, you should notify X.com through application messaging or e-mail. You must: 1) Tell us your name and primary email address; 2) Describe the error or the transaction you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information; and, 3) Tell us the dollar amount of the suspected error. If you tell us by telephone, we may require that you send your complaint in writing within ten (10) business days. We will tell you the results of our investigation within ten (10) business days after we hear from you, and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) calendar days to investigate the complaint or question. If we decide to do this, we will provisionally credit your transaction account within ten (10) business days for the amount you think is in error, so that you may have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within ten (10) business days, we may not provisionally credit your transaction account. If we determine there was no error, we will mail you a written explanation within three (3) business days after we finish the investigation. You may ask for copies of documents which we used in our investigation. We may revoke any provisional credit provided to you if we find that an error did not occur. IV. Consumer Protection Policies In general. X.com's consumer fraud protection policies as defined below are designed to reduce fraud by encouraging payments between Verified Users ("Verified Users" or "Verified User") of the Service and to increase the security of online transactions in our payments network. A Verified User is a registered user of the Service who maintains a confirmed bank account on the X.com website, thereby providing X.com with proof that he or she holds ownership of an account at a bank or other financial institution. X.com considers this verification process a secure and easy way to gain additional proof of a User's identity without asking for additional pieces of personal information during the registration process. This process, in conjunction with our other proprietary authentication methods, lowers our company's financial risk and allows us to provide the Buyer and Seller Protection Guarantees listed below. Buyer Protection Guarantee. Purchases from Sellers who are Verified Users will be guaranteed against fraud up to $5,000 per Buyer per year if the Seller fails to ship the paid-for goods. This policy does not apply to disputes about the quality or attributes of delivered goods or to goods lost in the mail. The Seller's verification status is available on the Service website when a Buyer confirms payment. Although this Guarantee only protects purchases from Verified sellers, all sellers - both Verified and Unverified - should be aware that they are liable for non-shipment of goods. Non-shipment of goods may constitute a criminal violation, and X.com will cooperate with law enforcement agencies to apprehend and prosecute offenders. If goods have been lost in the mail, buyer and seller should file appropriate claims through the insurance obtained at the time of shipment. Buyers who do not receive their merchandise must make several documented attempts to contact the Seller and resolve the dispute on their own before filing a claim with X.com. Claims of non-receipt of goods may be filed with X.com no sooner than 30 days and no later than 60 days from the date of payment or from the promised delivery date if the Seller indicates such date will be in excess of 30 days from the date of payment. Buyers may file claims via email by using the Web Forms on the Contact Us page of the website. Claims must include 1) your name and primary email address; 2) a description of the items that were purchased; 3) the email address of the Verified User to which the payment was made; 4) the timeline of events since the payment in question was made: a) date of payment, b) amount of payment, c) details of communication or correspondence between Sender and Recipient of the payment. X.com or its agents will investigate claims and X.com's determination shall be binding on all parties. X.com may require the Seller to provide proof of shipment, or a refund, in order to resolve the complaint. X.com seeks to provide full reimbursement up to $5,000 per year to defrauded Buyers within 30 days from the date the claim is filed, though such time frame may be extended to accommodate the investigation. Both Verified and Unverified buyers are protected under the Buyer Protection Guarantee, and are protected for all methods of payment - credit card, bank account, or existing funds - available through the Service. The Buyer Protection Guarantee is effective as of 8/1/00, and applies to transactions paid on or after 8/1/00. The Buyer Protection Guarantee does not obviate any other consumer rights Users may have, including charge back rights that may be granted by the User's credit card issuer. Seller Protection Guarantee. Beginning August 23, 2000, X.com agrees to indemnify sellers for charge back liability resulting from buyer's fraudulent use of a stolen credit card and/or false claims of non-shipment of goods for purchases made through the Service for up to $5,000 per year when the following conditions are met: a) The seller is Verified; b) The seller can provide reasonable proof-of-delivery which can be tracked online. (Most U.S. carrier companies offer this service, including the U.S. Postal Service.); c) The seller accepted payment from only one PayPal account for the purchase. (Multiple payments from different accounts for a single item are a fraud indicator. Sellers should not accept such payments.); d) The seller does not ship internationally (when X.com releases international payments (coming soon), this rule will be replaced with a list of approved countries). In the near future X.com will provide tools for sellers to determine if a buyer is Verified and whether the buyer's requested shipping address matches buyer's credit card billing address. When these tools are available and notice has been given, sellers will be required to ship the purchases of Unverified buyers to the buyer's credit card billing address in order to qualify for protection under the Seller Protection Guarantee. If the buyer is Verified, sellers will be able to ship to any address and qualify for protection under the Guarantee. Charge Backs. The Buyer Protection Guarantee does not obviate any other consumer rights Users may have, including charge back rights that may be granted by the User's credit card issuer. X.com fully stands behind all credit card transactions by accepting disputes customers lodge with their issuing bank. The consumer is fully protected and as the merchant of record we accept final responsibility for all card transactions. As such, we afford customers all the rights and privileges expected of a credit card transaction. You acknowledge that X.com does not control the outcome of any charge back decision initiated through a customer's credit card issuing bank. X.com encourages all buyer purchase disputes to be filed and resolved through the Service's dispute resolution process, and reserves the right to restrict future account access or functionality of buyers who file charge back complaints outside the Service. If a charge back claim is initiated, whether as a result of a dispute or for any other reason, the parties agree to provide to any requesting party on a timely basis any and all necessary documentation to resolve any charge back or dispute. X.com DOES NOT act as the agent of either party in any transaction or resulting dispute, though X.com does control the outcome of disputes initiated through the Service's dispute resolution process. In the event a charge back dispute is resolved against you, and you qualify for the Seller Protection Guarantee, X.com will indemnify you for the charge back amount up to $5,000 per year. In the event a charge back dispute is resolved against you and you do not qualify for the Seller Protection Guarantee, you agree to hold X.com harmless for the charge back amount and to reimburse X.com from either your PayPal account or by other means. Although X.com will vigorously pursue debt collection of any amounts owed to it, X.com will never make electronic transfers from your bank account without your explicit permission. Termination. Excessive disputes, charge backs, refunds, complaints, and claims from other customers, or other abuses of the Service are, without limitation, grounds for restricting your account and/or terminating your right to use the Service. V. Additional Terms of Use for Business and Premier Accounts The terms below apply specifically to use of Premier and Business Accounts through the Service and any related products and services (collectively, the "Premier/Business Service"). Account Information. In addition to the terms listed above, you further agree that X.com may access and disclose information about you or your use of the Premier/Business Service when X.com deems necessary or appropriate to comply with the law or legal process, to protect X.com's systems and customers, or to ensure the integrity and operation of X.com's business and systems. Unless otherwise prohibited by law, such disclosure may include, without limitation, user profile information (e.g., name, e-mail address, etc.), transaction information, IP address and traffic information, and usage history. Contact and Refund Information. Each user of the Premier/Business Service will be required to input its customer service contact information into the Premier/Business Account application upon registration. You agree to clearly identify your customer service contact information, including but not limited to your business name, address, telephone number, fax number and e-mail address. You further agree to update such information to keep it true, accurate, current, and complete. Taxes. Each user of the Business Service is required to provide its Tax Identification Number (TIN) upon registration. It is your responsibility to determine what, if any, taxes apply to the payments you make or receive and to collect, report and remit the correct tax to the appropriate tax authority. X.com is not obligated to determine whether taxes apply, and is not responsible to collect, report, or remit any taxes arising from any transaction. Security Features. X.com strongly suggests that you use a web browser with 128-bit encryption. Regardless of whether you use a web browser with security features, X.com is unable to ensure that data transmitted via the Premier/Business Service is secure and/or will not be intercepted by third parties. Account Use. By accepting the terms as outlined in this Agreement and using your Premier or Business Account, you attest that you hold all the necessary licenses to engage in the advertising and sale of the goods and services offered for sale or use through your Premier or Business Account, and that you do not provide unlawful or illicit products or services. You will not use the Business Service, the website or any of the services offered therein for any unlawful, fraudulent or improper activity. If X.com has reason to believe that you may be engaging in or have engaged in fraudulent, unlawful, or improper activity, including without limitation any violation of any terms and conditions relating to the Premier/Business Service, the website or any related services, your access to the website and any services contained therein may be suspended or terminated. You will cooperate fully with X.com to investigate any suspected unlawful, fraudulent or improper activity. Fees. X.com's current Fee Schedule for using the Premier/Business Service is posted on the website. Unless otherwise stated, all fees quoted are in U.S. dollars. Users are responsible for paying all fees associated with the use of their Premier or Business Accounts and the Premier/Business Service. This Agreement is subject to change at any time without notice, and you agree to review the current terms of use prior to initiating a transaction.