risk adjustes performance analysis

8/7/2019 Risk Adjustes Performance Analysis

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Program Funded by:

MBF Direct Leasing PackageISO/ Agent Program

Program Highlights

Aggressive Funding Scores (A: 0.0288 B/ C: 0.0315, D/ E: 0.0399) No First and Last Payment! Lease options for all Terminals, POS Systems, Comstar Devices Next Day ACH Funding (Direct agreement between MBF and ISO) Guaranteed Approvals* Faxable Lease Applications (PDF) Daily Status Reports Free Equipment Split-Funding

Signup Check List(Please complete the following steps to establish a direct MBF Leasing Relationship)

Complete the MBF Vendor Profile Complete, initial and sign the MBF Lease Program Agreement Complete the W9 Form. Attach a clear copy of your drivers license, social security card and

voided check. Fax the package back to 1-630-654-1222 and mail the originals to:

Brian FitzgeraldEVP, Business Development

347 West 83

rd

Street, Suite #C,Burr Ridge, IL 60527Tel: 1-630-654-1200


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EVP Business Development

347 West 83rd Street, Suite #C,

Burr Ridge, IL 60527

Brian FitzgeraldEVP Business Development

Tel: 1-630-654-1200

Dear Prospective ISO:

MBF Leasing, LLC (MBF) and United Bank Card, Inc (UBC) have formed an alliance to offer the verybest direct leasing program in the business. Enclosed herewith is a complete UBC/MBF Lease packet

containing a Vendor Profile, Lease Program Agreement, W9 Form, sample PDF Merchant LeaseApplication and a pre-filled out fax cover sheet for requesting lease scores. This packet will help

you get started on your road to success with MBF Leasing and United Bank Card.

In addition, I have included a list of MBF Procedures below, these will help you identify with our

company and make things a little easier on a day-to-day basis.

1. The First step to submitting lease applications under this program is to fill out andcomplete this entire package. Please remember to include the Vendor Profile, Agreement,

W9 and copies of your drivers license, social security card and voided check. You can faxthem back to me at 1-630-654-1222 to get the process started but please send the

originals as soon as possible.2. Next please review the Sample lease application. Paperwork filled out incorrectly is the #

1 delay in commission funding.

3. After you have received a vendor code from MBF, you may being submitting leaseapplications. To begin the leasing process you will need to obtain an MBF Lease Score

and Lease Number. You will need to complete the fax cover sheet for requesting a leasescore / number (included in this package) and attach the front-page, signature page and

voided check from the merchant application and fax the entire package to: 1-630-654-1222. Once you have faxed for a lease score you can send the merchant application and

lease application to UBC.4. After the lease has been scored and a lease number issued, UBC will ship any equipment

that is to be Split-funded to the merchant. The merchant lease applications will be sent

from UBC to MBF.5. Prior to funding, a verbal verification must be performed between the merchant and an

MBF Representative. To initiate the call please dial 1-630-654-1200 the after theequipment has been installed and the owner trained on its operation.

6. If MBF has received the lease paperwork and a complete verification call has beenperformed before 3:45 CST, then MBF will fund your commissions via ACH same-day.

MBF and UBC look forward to a long and prosperous relationship with you and your organization.We understand that the leasing process can be somewhat complicated at times so if you have anyquestions please fee free to contact me at 1-630-654-1200.

Sincerely,

Brian Fitzgerald

[email protected]


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Vendor _________________________________________________________________________________________________________

Address __________________________________________________________________________________________________________

City ____________________________________________________________________State __________________Zip Code _________

Phone Number ____________________ Fax Number ___________________ E-Mail Address __________________________________

Years In Bankcard Business _________________ Mastercard/Visa Registration #______________________

Type of Business: Corporation Tax ID# _________________________ Partnership Proprietor Other _________

Principals

1) Principals Name ______________________________ 2) Principals Name ________________________________

Title __________________ SS# __________________ Title ____________SS# __________________________

Home Address ________________________________ Home Address __________________________________

City _________ State ____________ Zip __________ City __________ State _______________Zip _________

Date of Birth ____________________ Date of Birth _______________________

Current/Previous Lease Company1)_______________________________________________________________________________________________________________

2)_______________________________________________________________________________________________________________

Bank Processors Used1) Bank _______________________________________ 2) Bank _________________________________________

Contact _____________________________________ Contact _______________________________________

Phone Number _______________________________ Phone Number _________________________________

How Long? __________________________________ How Long? ____________________________________

Bank ReferenceName of Bank _______________________________ Account# _____________________________________

Contact Name _______________________________ Routing# _____________________________________

Bank Phone# ________________________________

How Long? _________________________________

Credit References1) Name ______________________________________ 2) Name _______________________________________

Title ___________________Phone # _____________ Title ____________________ Phone # _____________

Address ____________________________________ Address ______________________________________

City ___________________ State _____ Zip ______ City ____________________ State _______Zip ______

High Credit _________________________________ High Credit ___________________________________

Referred By: ____________________________________________________________________________________________

Applicant authorizes MBF Leasing, LLC, its assigns or its agents to obtain an investigative report from a credit bureau or a credit

agency and to investigate the references given or obtained.

_______________________________________________________ _______________________________________________________Principals Signature Principals Signature

**************************************************For MBF Office Use Only******************************************

Approval Status: Date: Approved By: Vendor Codee_____


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PROGRAM AGREEMENT

THIS PROGRAM AGREEMENT (Agreement) is made as of the ________day of__________2004 (the Effective Date) byand between MBF Leasing, LLC (MBF), an Illinois LLC., having its principal place of business at 347 West 83 rd Street, Suite

#C, Burr Ridge, Illinois 60527 and

Vendor Legal Business Name: , the Vendor

Principal Name:

Business Address:

City, State, Zip:

Business Phone#:

State of Incorporation

Date of Incorporation

ISO Code:

Principals Home Address:

City, State, Zip:

Principals Home Phone#:

Social Security Number#:

WHEREAS, Vendor is in the business of selling credit card processing terminals, and printer equipment (Equipment)and related equipment to eligible customers for business use; and .

WHEREAS, Vendor is a valid, existing legal entity and has full power and authority to perform its obligation underthis Agreement and shall act as and represent itself as an independent sales organization;

WHEREAS, many of Vendor s customers desire to lease such Equipment; and

WHEREAS, MBF is in the business of leasing such Equipment and other items of personal and business property tothird parties; and

WHEREAS, MBF and Vendor desire to engage in a program (the Program) in which Vendor will refer customerswho desire to lease such Equipment to MBF and MBF will, subject to the terms and conditions of this Agreement, purchase theEquipment from Vendor and simultaneously lease Equipment to customers of Vendor (Merchant(s)) on terms and conditionsprovided by, and acceptable to MBF.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration and of therepresentations, warranties, covenants and agreements hereafter contained, the parties hereto agree as follows:

Section 1: Leases and Lease Origination

(a) Vendor will refer Merchants who desire to lease Equipment to MBF and shall provide to such Merchants MBFs Leaseagreement (the Lease) and the contents of the terms and conditions of the Lease agreement. As used in this Agreement,the terms Lessor, Lessee, Guarantor, Vendor, Delivery, Acceptance, and Bill of Sale shall have the same meanings as usedin the Lease. Each Equipment Lease and related documents (the Lease Documents) executed and delivered to the Lessorunder this Agreement shall be duly authorized, executed and delivered by the parties thereto; constitute the valid andbinding obligation of such parties, and be fully enforceable in accordance with the terms and conditions set forth therein,except as the enforcement of such documents may be affected by bankruptcy or similar laws affecting creditor rights

generally.

(b) For all transactions with an Equipment cost of equal to, or less than $8,000 for any individual transaction, Vendor shallreview and submit to MBF, subject to and in accordance with the Credit and Funding Requirements attached hereto asExhibit A, in addition to MBFs credit criteria, the Merchant who has been approved by Vendor and its Processor(s) for itsproducts and services (as confirmed in the Vendor Merchant Application), and MBF shall lease the Equipment to suchMerchant provided such Merchant is not in default of any other leases or similar obligations it may have, see the CreditQuality and Guidelines Section and the Section titled Lessees/Merchants Excluded from the Program and Other ProgramGuidelines for additional exclusions. Vendor agrees it will promptly advise MBF of any change in its criteria for evaluatinga Merchant for processing and that the overall merchant Credit Quality will not deteriorate from the current profile orrequired credit quality mix as set forth in this Agreement. All credit and lease application approvals issued by MBF are


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(d) Vendor shall provide MBF with good and merchantable title to the Equipment free and clear of any liens, security interests,encumbrances or claims of any kind. Title shall be passed to MBF by executing the Vendor Bill of Sale section on eachLease submitted for funding or by invoice. The Equipment shall be new and unused and entitled to the benefits of allwarranties afforded by the manufacturer.

Section 3: Credit Quality & Guidelines

(a) It is understood that MBF will assign credit scores of A, B, C, D or E to all Leases submitted by Vendor. MBF and Vendoracknowledge that the Vendor is expected to provide Leases that maintain a funding ratio of:

A, B and C 72%D, E 28%

(b) At Vendors request, MBF will provide Vendor with a report showing the Lease count, funded by MBF, under the Programfrom the inception of the Program through the current date, and during the preceding month, to determine the aggregateamount of credit quality mix funded for all Leases rated A, B, C, D or E.

(c) In the event, the aggregate amount of D and E credit quality transactions funded by MBF exceeds the amount shown in (a)above, then, MBF may suspend funding all or some D and E credit quality transactions until the aggregate amount oftransactions funded by MBF is within the required amount.

Section 4: Lessees/Merchants Excluded from the Program and other Program Guidelines

(a) MBF shall not be obligated under this Agreement to enter into a Lease with any Merchant falling into any of the followingcategories:

(i) Consumers, non-business lessees.

(ii) Applicants less than 18 years of age at the signing of the Lease.

(iii) Merchants who have engaged in previous transactions involving MBF or any other leasing company in which suchMerchants have had a derogatory history (severe delinquency, collections, charge-offs, liens, suits, judgments) asdetermined by MBF at its reasonable discretion.

(iv) Merchants with open bankruptcy petitions (not dismissed or discharged) and/or who are in Debtor inPossession status.

(v) Merchants with open and unpaid federal or state tax lien(s), and/or any unpaid judgment(s) or judgment liens.

(vi) Merchants who while engaged in previous transactions involving MBF or any other leasing company, haveengaged in any illegal use of the leased equipment.

(vii) Merchants providing adult oriented material or services.

(viii) E-commerce processing services, in home business, Internet based business, multi-level marketing programs,seminar based business, seminar based lease origination, business opportunities or software.

(ix) Notwithstanding any language contained herein to the contrary, MBF will not be obligated to fund any transactionin which the funding amount is in excess of $5,000.00 and the merchant is assigned a credit score of D or E.

(b) The following are certain Program guidelines applicable to all Merchants and all transactions contemplated pursuant to thisAgreement.

(i) Minimum Base Monthly Payment for any Lease shall be no less than $9.99.

(ii) Maximum Equipment Funding Amounts are applicable to all transactions contemplated hereunder.

(iii) Each Lease must be personally guaranteed by at least one principal owner of the Merchant/Lessee (the PersonalGuarantor).


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Section 5: Lease Fees

(a) In connection with each Lessee, MBF will provide a loss and destruction waiver fee for a monthly charge of $4.95 permonth (pro-rated for the first month), per set of equipment included in the Lease. This fee may be changed from time totime and will be waived if the Lessee provides MBF, within thirty (30) days of the Lease commencement date, a validcertificate of insurance from a recognized and acceptable insurance company naming MBF as Loss Payee and AdditionalInsured.

(b) MBF will assess and bill to the Lessee, an annual tax compliance fee that is currently $25.00 for each Merchant/Lesseetransaction and may change due to changes in state compliance and filing fees.

Section 6: Responsibilities of the Parties

(a) MBF will notify Vendor of its credit decision pertaining to an individual Lease within four (4) hours after MBF receivesfrom Vendor a complete merchant or lease application form, provided, however, that Vendor delivers such merchant orlease application form to MBF on a business day that is not a holiday. Credit decisions pertaining to a Lease based upon acompleted merchant processing or lease application form received by MBF after 3:00 p.m. CST shall be delivered to theVendor no later than 10:30 a.m. on the following business day.

(b) MBF, or its assignees, shall be responsible for servicing the Leases and collection of rentals thereunder.(c) MBF will furnish Vendor with all lease credit application and Lease Documents.(d) Each party acknowledges and agrees that each is an independent contractor in performing its obligations under this

Agreement, and that, unless specifically authorized, neither party is authorized to make any commitment or representationon behalf of the other party. Vendor understands it is not an agent for MBF and this Agreement does not confer upon it any

powers of an agent. Vendor acknowledges that MBF acts as a source of funds to the customers of Vendor and is not amanufacturer, service company or supplier of Equipment.

(e) Vendor shall perform all of its obligations under any maintenance or service agreement with respect to the Equipment.Vendor will maintain and service the Equipment covered by a Lease during the term of the Lease and perform, immediately,all of its obligations and commitments made to the Lessee.

(f) Vendor and /or Guarantor shall notify MBF of any name change, change to corporate status or structure, business address,home address, of principal or any other material change to Vendor status.

(g) In the event that Vendor or any of its principals file for bankruptcy, MBF must be notified within forty-eight (48) hours ofsuch filing and MBF reserves the right to terminate this agreement upon such notification if necessary.

(h) Vendor shall not jeopardize or otherwise take any action to interrupt the Lease agreement between MBF and the Lessee atany time during the lease term or its renewal periods.

(i) Vendor will abide by the policies and procedures of MBF and its designated representatives established from time totime and will not submit to MBF any Lease contracts that have been rejected by other leasing companies withoutnotification to MBF, nor shall Vendor submit any pending MBF transaction to another leasing company until the transactiondisposition has been made by MBF.

Section 7: Term of the Agreement

(a) The rights and obligations of the parties hereunder with respect to Leases originated prior to expiration of this Agreement shallsurvive said expiration.

(b) Both parties reserve the right to terminate this Agreement with notice for (1) the breach of any terms, conditions orobligations in this Agreement, (2) acts of fraud or misrepresentation, or (3) any illegal acts or intentional wrongdoingcommitted by the other partys employees, agents or authorized representatives. Termination pursuant to this Section shall

be effective immediately upon the delivery of a written notice of termination (a "Notice of Termination") which shallinclude a reference to this paragraph and shall state the reason for the termination.

(c) Either party may terminate this agreement upon thirty (30) days prior written notice to the other party.(d) MBF may assign this Program Agreement, provided that (1) the assignee shall be economically capable of performing the

obligations of MBF hereunder, and (2) the assignee fully assumes all the rights and obligations of the MBF hereunder.Vendor may assign this Program Agreement, provided that (1) Vendor gives MBF at least thirty (30) days notice of suchassignment, and (2) the assignee fully assumes all the rights and obligations of Vendor hereunder.


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Section 8: Integration

This Agreement contains the parties entire understanding concerning its subject matter and supersedes and merges all previousverbal and written agreements.

Section 9: Recourse

(a) If the Lessee fails to make the required minimum regularly scheduled Lease/rental installments, due after the advance rentalsare paid (regardless of bank notification date or payment reject reason), Vendor will repurchase the Lease from MBF for thesum of the Funding Amount paid to Vendor. The minimum regularly scheduled lease/rental installment payments requiredare:

Credit Quality Required Minimum RegularlyScheduled Payment(s)

A-E 1 (after MBF collects anyinterim and/or advancepayments)

(b) All requested repurchase amounts are due and payable within ten (10) days of notification to Vendor. Repurchase amountswill be deducted from future Lease fundings with notification to Vendor. In the event that Vendor fails to pay this amountwhen due, Vendor hereby authorizes MBF to automatically set off any amount due to satisfy the obligation to repurchase theLease under this Agreement from any account MBF has on file for Vendor. Vendor will use its best efforts to support andassist MBF to collect and/or resolve any payment default issues.

(c) In the event that MBF determines with evidence that incident of misrepresentation, fraud or forgery exists on a Leasetransaction at any point during the term of the Lease, Vendor will be required to repurchase the Lease for the full receivable

balance due on the Lease less any payments collected and retained by MBF including the purchase option.

(d) In the event that Vendor breaches any warranty, representation or covenant in the Lease Documents or in this Agreement,then Vendor will pay to MBF, on demand, the repurchase price of the lease as described in section (c) above plus allreasonable costs and expenses incurred by MBF relating to such Lease Documents and Equipment covered thereby,including but not limited to costs and expenses for maintenance, repair, protection and preservation of the Equipment and allreasonable attorney and collection fees and expenses in connection with defending or enforcing MBFs rights and remediesunder this Agreement.

(e) Upon payment to MBF of the repurchase price with respect to an individual Lease, at the request of Vendor, MBF shallassign to Vendor all of its rights, title and interest in, and to, the Lease and Equipment without recourse, representation orwarranty of any kind.

(f) In the event that Vendor and/or Guarantor(s) fail to pay the repurchase price within ten (10) days after the date of writtennotification to Vendor and/or Guarantor(s) with respect to any Lease, MBF shall have a right to commence an action againstVendor and/or Guarantor(s) for the payment of the repurchase price of such Lease(s) and all other amounts due under thisAgreement and to exercise all of its rights under the lease Documents, all such rights and remedies being cumulative, notexclusive and enforceable alternatively, successively or concurrently. MBF reserves the right to report a statement to Dunand Bradstreet, to notify Credit Reporting Agencies of the Guarantors default under this Agreement, and to alert any thirdparty of any incidences of default under this Agreement.

Section 10: Miscellaneous

(a) Each party acknowledges and agrees that this Agreement (and the terms thereunder) and any information or data it has orwill acquire from the other party, not otherwise properly in the public domain, was received in confidence. Each partyhereto agrees not to divulge, communicate or disclose to any third party, except as may be required by law or for theperformance of this Agreement (including conducting due diligence or notifying a partys lender), this Agreement (or theterms thereof) or any confidential information of the other party. Except to the extent expressly stated here, this provision is

not intended to supersede any confidentiality or non-disclosure agreement, which may exist between the parties.

(b) This Agreement shall be governed in accordance with the laws of the State of New York. Vendor hereby irrevocablyconsents to the jurisdiction and venue of any court in the State of New York, or any court Lessor may choose. Vendorhereby waives all rights to a trial by jury and agrees that at MBFs sole discretion, MBF may submit any matter arising outof the Agreement, including any claim or counterclaim, to binding arbitration under the rules of the American ArbitrationAssociation, in any site of MBFs choice.

(c) Vendor shall indemnify and hold MBF harmless from any claims, damages or losses, including but not limited to reasonableattorneys fees and legal expenses arising from a material breach of Vendors representations, warranties or covenants. MBFshall indemnify and hold Vendor harmless from any claims, damages or losses, including but not limited to reasonable


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attorneys fees and legal expenses arising from a material breach of MBFs representations, warranties or covenants. In noevent shall one party be liable to the other for any special, incidental, consequential, indirect or punitive damages.

(d) All notices provided in this Agreement shall be in writing and deemed given when mailed or faxed to Vendor or MBF attheir respective addresses set forth above, if sent by registered or certified mail, return receipt requested, or when actuallyreceived if given in any other manner.

The undersigned, jointly and severally, hereby unconditionally guaranty, without deduction or diminution by reason ofCounterclaim, offset or defense, and in accordance with all terms and conditions of this Agreement, including any and allmodifications, additions, supplements and amendments thereof that all information provided and contained in this Agreement istrue and correct and that signor has full and complete authority to enter into this Agreement on behalf of Vendor.

This Agreement, when executed by both MBF and Vendor, shall constitute the entire Agreement between the parties, and shallsupersede and cancel all prior offers and negotiations, whether in writing or otherwise. No amendment or modification of thisAgreement shall be effective unless in writing and duly executed by all parties hereto.

In witness whereof, each of the parties has caused this Agreement to be executed as of the date below.

MBF Leasing, LLC Vendor

By: _______________________________________ Signature: _______________________________________

Authorized Signor Title of Signatory: ________________________________Title

Date: ______________________________________ Date: __________________________________________

_________________________________________________Guarantors Signature, No Title

Date: ____________________________________________


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Exhibit AMBF Leasing, LLC

Credit and Funding Requirements

To assist in processing lease transactions with MBF Leasing, LLC(MBF) please review the following

requirements:

1. Complete MBF lease credit application including equipment description, lease term and monthlypayment or an acceptable form of the merchant service application, which provides authorization for

MBFs credit investigation.

2. Guarantor information and signatures, including Social Security numbers are required on allapplications. If there are two guarantors on the merchant application MBF will require two

signatures on the lease agreement and guaranty section. From time to time it may be necessary to

obtain a copy of the Merchants social security card if the number cannot be verified.

3. A Personal Guaranty is required on all lease documents; a signature of the principal owner of thebusiness must appear in the Personal Guaranty box.

4. An authorized ISO agent must sign Bill of Sale on the Lease Agreement.5. If the lease agreement is received without an executed Bill of Sale an invoice billing MBF will be

required.

6. A Voided check copy from the Lesseesbusiness checking account is required at all times.7. A signature is required in all appropriate boxes. White Out is not acceptable on the lease

agreement. Cross-outs or changes to the Lease Agreement are not acceptable.

8. Serial Numbers for all leased equipment and MID numbers must be received prior to funding.9. Verification of Lessee Signature (copy of advance payment check or signature on the merchant

service application may be acceptable).

10.Equipment location must be provided if other than billing address.11. If lease transaction is over the approved program amount additional information, financial

statements, or documentation fees may be required.

12.Advance and Interim Payments will be collected by MBF.13. Verbal Verification of lease terms conducted by MBF directly with the merchant.


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FAX COVER SHEET

From: _______________________

Company: _______________________

Fax: ______________________

Phone: _______________________

MBF Vendor Code: ________________

To: MBF Leasing, LLC

Attn: Scoring Department

Fax: 1-630-654-1222

Phone: 1-630-654-1200

Re: Request Lease Score & Number

Attachments: Merchant ApplicationLease ApplicationVoided Check

Merchant Name:__________________________________________________

Lease Term: (Please circle) 12 24 36 48 months

Lease Amount: $__________________ / month

Equipment Type:__________________________________________Qty:___________



