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Bank of the WestCOPY PROPOSAL FOR BANKING AND MERCHANT SERVICES TO CITYOFLAQUINTA Experience. Innovation. Excellent Service. Results. Building a financial partnership. RESPONSE TO:City of La Quinta City Clerk 78495 Callelampico La Quinta, CA 92253 PREPARED BY: Bank of the West Matthew Kirschenman Vice President, Senior Government Relationship Manager 213.972.0646 matthew.kirschenman@botw.com Karen Carver Vice President, Branch Manager Indian Wells Branch 760.469.4002 karen.carver@bankofthewest.com PROPOSAL DUE:February 15, 2019 / 5:00 PM Name of Proposing Bank: Bank of the West Principal Address: 500 Capitol Mall, Sacramento, CA 95814 Relationship Manager Address: 300 S. Grand Avenue, Los Angeles, CA 90071 Branch Address; 74-989 Highway 111, Indian Wells, CA 92210 BANKA'eWEST BNP PARIBAS The bank for a changing world COPY Table of Contents Table of Contents 1 Tab A Transmlttal Letter 2 Tab B Bank and Personnel File 3 Tab C References 9 Tab D Demand Deposit Accounts 10 Tab E Collateralizatlon of Deposits 12 Tab F Bank Compensation 16 Tab G Deposit Activity 18 Tab H Bill Concentration Service 20 Tab I Wire Transfers 22 Tab J Automated Clearing House (ACH) Service Requirements 24 Tab K Payroll Tax Processing 28 Tab L State Actlvlty/LAIF Transfers 29 Tab M On-line Bank Processes and Information Reporting 30 Tab N Account Reconcilement 33 Tab 0 Daylight Overdraft Protection 36 Tab P Merchant Bankcard 37 Tab Q Purchasing Card 44 Tab R City Disaster Preparedness Program 49 Tab S Implementation Plan 51 Tab T Service Enhancements 53 Tab U Banking Services Bid Form 54 Tab V Sample Account Analysis Statement and Users Guide 55 Tab W Relevant Cash Management Agreements 56 Tab X Financial Statements and Ratings 57 ¨ PAGE 1 BANKA^tWEST BNP PARIBAS COPY Tab A Transmittal Letter February 15,2019 City of La Quinta Attn: Karia Campos. Financing Director 18795 Calle Tampico La Quinta, CA 92253 Dear Ms. Campos: Bank of the West {the Bank) is pleased to submit our proposal for Banking Services to the City of La Quinta (the City). As a premier bank in the state of California for over 140 years, the Bank can provide the City with a highly efficient and cost- effective banking solution that emphasizes our relationship-driven approach. Government Banking Experience We take great pride in our Government Banking capabilities and the financial partnerships that we have developed over the years. We support over 3,900 Public Agency accounts across our footprint. As of January 31, 2019, the Bank has S3.52 billion in public fund deposits collateralized in accordance with the states' government codes and applicable laws. This is a testament to the confidence our clients have in our fiscal strength and industry expertise. We can deliver the technology and services the City requires while staying true to our legacy as a community bank with a focus on personal touch and relationship. The Bank's expertise in Government Banking extends beyond your Relationship Manager, to our Cash Management Consultants, Customer Service Specialists, Public Finance, Custody, Fixed Income and many other areas of the Bank. Matthew Kirschenman is the City's devoted Senior Relationship Manager, located in Los Angeles. In addition to Matt, the City will have a local, dedicated Government Customer Service Specialist and backup, who will handle all of your day-to- day banking service inquiries, based in the City of Industry. Customer service is the cornerstone of our business. Our local and government-specialized servicing approach ensures that we provide consistent, superior service, timeliness and accountability. Our local branch is at 74-989 Highway 11, Indian Weils, CA 92210, which will meet your daily needs. Bank of the West is pleased to offer the City • Implementation waiver: Waiver of three (3) months, of account analysis fee-based cash management fees, including new account supplies n Fixed pricing: Pricing is fixed for the duration of the contract n Preferred Earnings Credit Rate (ECR): 1.50% • Flexible Account Analysis Cycle: Monthly or quarterly account analysis settlement is available • No check cosh/ng/ee; Waived check cashing fee for all City checks cashed at any Bankof the West branch n Employee banking: City employees receive discounted consumer banking products and services n Community outreach: Onsite seminars covering such topics as fraud prevention and financial literacy n Minimum Proposal Qualifications: We meet all the required qualifications • Guarantee: Our proposal is guaranteed for 180 days from the due date By choosing the Bank as your banking partner, you will be selecting a high-touch, market-oriented financial institution with the capabilities that you need and the relationship-driven culture that you want. We are confident we will exceed your expectations and look forward to the City's review of our proposal. Sincerely, Matthew Kirschenman Vice President ¨ PAGE 2 BANKt^JTeWEST BNP PARIBAS COPY Tab B Bank and Personnel File Please respond to the following: Bank Overview - Provide a general overview of the bank's operations, fundamental management, and customer service philosophy, and financial strength. Identify the primary office or branch that the City will be assigned to and where the City will conduct its primary banking business. The Bank, headquartered and chartered in San Francisco, California, is the third-largest commercial bank based in California. As of September 30, 2018, the Bank has $87.6 billion in assets, over 10,000 employees and over 500 retail locations across our 23-state footprint. Our client service philosophy is based on a Trusted Advisor model achieved through close consultation incorporating efficiency, automation and industry and regulatory trends. Our practice of ongoing dialogue and regular relationship reviews with you ensures that we are sharing pertinent industry information, leveraging best practices and adapting to changes in your business and operational strategies. This will help you understand what adjustments or new strategies may be advantageous. Our government services unit is located at 500 Capitol Mall, Sacramento, CA 95814. Our corporate offices are located at 180 Montgomery St., San Francisco, CA 94104, and our processing center is located at 1330 Crossroads Parkway North, City of Industry, CA 91746. Our branch location nearest to the City is 74-989 Highway 111, Indian Wells, CA 92210. The Bank is a subsidiary of holding company BancWest Corporation, BancWest Corporation is a wholly owned subsidiary of BNP Paribas, a European leader in banking and financial services and the fifth highest-rated bank in the world according to Standard & Poor's. Experience - Describe the bank's direct experience In servicing public sector clients. Please Include the information such as the number of nationwide and California public agency clients, the dollar amount of public funds on deposit for each of these categories, and the bank's knowledge of and adherence to the California Government Code and other applicable laws. Bank of the West Government Banking Division has a staff of experienced professionals dedicated to serving the pubiic sector market primarily in California. As of January 31, 2019, Bank of the West has over 3,900 public fund accounts with more than $3.52 Billion in deposits. In California, we have over 1,500 public fund accounts with $2.43 Billion in deposits collateralized in accordance to the California Government Codes and other applicable laws. Relationship Management - Identify the size and scope of your California-based public banking unit, banking officers responsible for the City's accounts, what each person's role and responsibilities will be, and the relevant credentials and experience of each person on the relationship management team. Customer Service is the cornerstone of our business where we empower our employees to provide highly- personalized customer service and promote community well-being. These qualities set us apart and allow us to build strong bonds with our customers. Our strategy is to create a customer-centric, intelligent, energetic and caring customer service organization that delivers personalized and quality customer service to our clients. The Bank has a dedicated team of seasoned professionals that service our government clients with support from throughout the Bank to ensure timely responses on every inquiry. Our Service Professionals are available Monday thru Friday from 6:00 AM to 5:00 PM. The customer service team is located in the City of industry, CA 91746. ¨ PAGE 3 BANKA'eWEST BNP PARIBAS COPY Following is the City's Bank of the West Relationship Team: Matthew Kirschenman Vice President Sr. Government Relationship Manager ® (213) 972-0646 Direct ® (213)408-9748 Cell >1 (866) 235-9308 matthew.kirschenman@botw.com Matthew Kirschenman, Vice President and Senior Government Relationship Manager, will serve as your Relationship Manager and is your primary contact. Matt has focused on California municipalities since 2012. Prior to that, he was in the Marine Corps for five years, after which he received his B.A. in Economics from St. Cloud State University and his Masters in Public Policy from the University of Chicago. As your primary relationship Officer he will coordinate and be responsible for service, delivery of products and overall customer satisfaction. He is located in Los Angeles, and he will be your first line of contact and conduit to the various groups within the Bank. He is responsible for 17 accounts with similar full banking service products. Memberships: CMTA, CSMFO, CSDA, CACTTC Karen Carver Vice President Branch Manager Indian Wells Branch ®(760) 469-4002 lii (760) 773-4041 karen.caiver@bankofthewest.com Karen Carver, Vice President and Branch Manager of the Indian Wells branch, has over 36 years of banking experience with two years with the Bank. She is involved in the Greater Coachella Chamber of Commerce as well as Non Profit Organizations such as Desert Arc, which serves individuals with disabilities, and the Ronald McDonald House, which supports families of children with various illnesses. Ly Huynh Sr. CCS Relationship Specialist Commercial Client Services @ (800) 676-4549 Ext. 5180 S) (323) 727-4984 ly.huynh@bankofthewest.com Ly Huynh is a seasoned Commercial Customer Service Specialist assigned exclusively to the Bank's Government Banking group. She joined the Bank in January 2010 and has been a valuable asset in our Cash Management Customer Services Department for over six years. She has over 18 years of experience in the financial industry and customer service. She is well versed in all Cash Management products and services and is an expert at finding unorthodox solutions. She has an unwavering commitment to customer service and the ability to build productive relationships, resolve complex issues and win customer loyalty. m BANKV?fEWEST BNP PARIBAS ¨ PAGE A COPY Erin Bodien Vice President Senior Treasury Solutions Sales Consultant ■S (213) 972-0532 M, (213) 326-2090 erin.bodien@botw.com Erin Bodien has over 10 years of banking experience with nearly a decade of Treasury Management experience. She joined the Bank in 2018, and prior to that, she was a Treasury Consultant at a large financial institution where she supported corporate clients, including a wide range of industry verticals, higher education institutions and Federal Government agencies, across the United States. She specializes in a consultative approach related to working capital, receivables and payables strategies. She helps her clients achieve industry best in class optimization and cost reduction to their banking services. Erin believes in consistently sharing industry worthy updates and education around best practices, such as fraud prevention, to give her clients the knowledge and tools necessary to attain the best possible results and achieve their goals. She attained a Bachelor of Arts degree from Colorado State University, Fort Collins Colorado. She is based out of our Los Angeles office. BANKV^TeWEST BNP PARIBAS ♦ PAGE 5 COPY Mary Fladland Elavon Regional Sales Manager Government Public Sector (425) 2X0-9606 mary.fladland@elavon.com Mary Fladland, Elavon Regional Government Sales Manager, works with Public Sector clients providing customized payment processing solutions. She is the point person for all activity associated with Elavon, including payment service design, pricing and the contract process. She will support the City with Service Group 3. She has over 13 years of payments industry experience, managing national account portfolios, relationship migrations and integration processes. She currently manages 22 accounts. Paul Duncan, Managing Director Government Banking Division 916-552-4349 paul.duncan@botw.com Uly Ng, Director Government Banking Manager 916-552-4404 lilv.ng@botw.com Ted Neu, Director Public Finance Manager 415-765-4938 ted.neu@botw.com Mary Fladland Elavon Regional Sales Manager Government Public Sector (425)210-9606 marY.fladland@elavon.com Senior Government Relationship Manager BANKA'tWEST BNP PARIBAS Matthew Kirschenman • Primary Contact* Manages the City's overall relationship with the Bank 213-972-0646/320-493-8322 Mobile 866-235-9308 Fax matthew.kirschenman@botw.com City Staff Indian Wells Branch Manager Karen Carver •Local contact on branch services* 760-469-4002 karen.carver@bankofthewest.com Government Customer Service Ly Huynh •Supports daily inquiries* 800-676-4549 lv.huvnh@bankofthewest.com Sr. Treasury Solutions Sales Consultant Erin Bodien •Provides solutions in CM services* 213-972-0532 erin.bodien@botw.com BANKt^h^eWEST BNP PARIBAS ¨ PAGE 6 COPY Customer Service - Describe how the bank handles problem resolution, customer service, day-to-day contact, and ongoing maintenance for governmental entities. Specify whom the City will be calling for day-to-day banking and treasury management issues. Explain the process for elevating an Issue to a higher level to obtain a quick resolution when the day-today contact Is not responsive. The City is assigned a dedicated Government Customer Service Specialist who is your first point of contact for all banking service inquiries and issues. Your Service Specialist will handle all daily inquiries or answer questions, handle transaction confirmations and other data requests as needed by the City's auditors, resolve balancing discrepancies, etc. Our dedicated Government Customer Service Specialist has priority to escalate customer issues to Bank management and operations. As far as elevating an issue to a higher level to obtain a quick resolution, Matt Kirschenman is the City's dedicated Relationship Manager and he is supported by a Government Customer Service Specialist, a Cash Management Consultant and a Public Finance Consultant. Our team servicing approach ensures consistent, superior service and accountability through one source: Matt, your banking relationship partner. Compliance and Exceptions - Include a statement to confirm the bank's compliance to specific minimum qualifications, listing any exceptions to required services. The Bank confirms that we are in compliance to the City's specific minimum qualifications from page seven, 4.0 of the RFP. Responsible Banking Description - Describe the bank's responsible banking policies and practices. Discuss any current efforts, or those that may be Implemented In the City of La Quinta, If the bank were awarded the City banking contract. Lastly, describe any other efforts/contributions the bank has made/would make relative to Investment In the local community (such as fraud prevention seminars hosted at the City's multi-generational Wellness Center.) Community Reinvestment The Bank earned a rating of "Satisfactory" on its most recent CRA examination, as of August 21, 2017, conducted by the FDIC. The Bank is committed to our communities. From 2014 through 2018, the Bank has supported Riverside County with more than $543 million in loans, investments and charitable contributions to individuals, small businesses, companies and community- based organizations. The Bank and its employees work closely with many community- based groups and participate in a financial advisory capacity for numerous organizations. Bank employees serve on a variety of boards and finance committees providing technical, managerial and financial expertise to many organizations specializing in small business development, services benefiting low-income and disadvantaged individuals, economic development and community revitalization, affordable housing and shelter, health, wellness and education. It is through our branch network that the Bank brings its community-oriented banking philosophy, which is firmly committed to achieving the goals of the Community Reinvestment Act (CRA) enacted by Congress in 1977. Throughout the Bank of the West organization, managers and staff believe strongly in the importance of meeting the needs of the communities they serve, including low and moderate-income individuals and neighborhoods. Lending From 2014 through 2018, the Bank extended over $427 million in loans for residential real estate and for the operation of businesses and farms throughout Riverside County. The Bank extended an additional $103.6 million in loans for projects that support affordable housing, economic development, neighborhood revitalization, and community services. ¨ PAGE 7 BANKt^h'eWEST BNP PARIBAS COPY Community Development Investments and Contributions From 2014 through 2018, the Bank has made more than $12 million in CRA qualified community development investments for affordable housing in Riverside County. From 2014 through 2018, the Bank provided $7,500 in community development (CRA-quallfied) contributions to nonprofits in Riverside County. These grants have supported Martha's Village and Kitchen, which serves Coachella Valley's homeless and impoverished individuals, as well as the Boys & Girls Clubs of Coacheila Valley's Greater Futures initiative, which aims to drive positive academic outcomes for youth by identifying and addressing obstacles to this success. Community Development Services Bank of the West employees engage with community members in Riverside County to share their financial expertise and banking knowledge. For example, in 2018, a group of Bank employees volunteered for 16 hours presenting and providing information on homeownership at the Fair Housing Council of Riverside County's Conference where the theme was "Bridging the Housing Gap of the Inland Empire." Additionally, a Bank employee served on the planning committee for the Conference. In 2016, a commercial banker served eight hours on the Board of the California Statewide Community Development Corporation which supports economic development by making low-cost, fixed rate commercial / Industrial real estate financing available to expanding small businesses. ¨ PAGE 8 BANKt^h'eWEST BNP PARIBAS COPY Tab C References (One page maximum) Please provide three (3) local government references that are of similar size and scope of service utilization as the City. Include the following information for each reference: CONTACT NAME /TITLE Adam Pirrie, Finance Director / Treasurer NAME OF CUSTOMER CITY OF CLAREMONT ADDRESS 207 Harvard Avenue, Claremont, CA 91711 TELEPHONE 909-399-5328 FAX 909-399-5366 EMAIL aplrrie@cl.cIaremont.ca.us YEARS AS CUSTOMER Since 2013 SERVICES UTILIZED DDA, Online Image Express, Positive Pay, Remote Check Deposit (aka EDS), Cash Vault, Online WebDirect (Information Reporting, Money Transfers, ACH), Merchant Services, Investments (Brokered CDs) CONTAa NAME/TITLE Annie Yaung, Financial Services Manager NAME OF CUSTOMER CITY OF MONTEREY PARK ADDRESS 320 W Newmark Ave, Monterey Park, CA 91754 TELEPHONE 626 307-1349 FAX 626-307-2516 EMAIL dyaung@montereypark.ca.gov YEARS AS CUSTOMER Since 2012 SERVICES UTILIZED DDA, ACH, ARP, Positive Pay, Cash Vault, Online WebDirect (Information Reporting, Wire Transfers), Cash Vault, Remote Check Deposit (aka EDS), Stop Payments, Image Express, Purchasing Card, Merchant Services. ePayables CONTAa NAME /TITLE Kim Sao, Deputy Director of Administrative Svcs/FInance NAME OF CUSTOMER CITY OF SOUTH GATE ADDRESS 8650 California Ave. South Gate, CA 90280 TELEPHONE 323-544-5278 FAX 310-544-5291 EMAIL ksao@sogate.org@rpvca.gov YEARS AS CUSTOMER Since 2016 SERVICES UTILIZED DDA, ARP, Payee Positive Pay, ACH, ZBZ, Online WebDirect (Information Reporting, Money Transfers, ACH), Cash Vault, Merchant Services ¨ PAGE 9 BANKA^eWEST BNP PARIBAS COPY Tab D Demand Deposit Accounts The City currently uses three (3) demand deposit accounts (DDAs). One is a Zero Balance Accounts with the Deposit Account serving as the Parent ZBA. Checks are issued using the Accounts Payable Account and Payroll Account. 1. How many days after month-end will the City receive its bank statements? Paper statements are typically mailed by the fourth business day after month end. Statements are mailed first class from our statement processing facility in Houston, TX. 2. Are the bank statements available on-line? Yes, both account statements and account analysis statements are available online the day following production. 3. Does the bank offer Zero Balance Accounts (ZBA's)? if so, please describe the service. ZBA is a service that is added to business checking accounts {DDAs}. The service was designed for customers that maintain a main operating account (Parent Account) and separate accounts (Children Accounts) for receivables and payables. Examples of Children Accounts include payroll, petty cash, check writing and incoming electronic payments. There is no limit to the number of Children Accounts that can be added and multiple tiers to the structure can be implemented. The intention of the service is to allow for an automated movement of funds to and from the linked accounts. Once ZBA is added, all of the City's funds are concentrated into the Parent Account. The Children Accounts will typically maintain a zero balance, however target balancing can be established. Intraday, if a Child Account has Insufficient funds to execute a transaction, like a wire, it will look to the Parent Account. The funds in the Parent Account are memo held to ensure the funds are not used for other purposes. Nightly, each Child Account does a net settlement with the Parent. All excess funds in the Children Accounts are swept to the Parent Account. If a Child Account is in a deficit position, funds are swept from the Parent to the Child. Are the transfers to or from the Parent Account automatic? Yes, automatic transfers occur at the end of each business day. 4. Does the bank offer ACH blocks or filters? If so, please explain. Yes, the Bank offers ACH blocks and filters along with ACH Positive Pay. Please see description below: As a means of curtailing electronic fraud, Bank of the West offers ACH Blocks and/or Filters to ensure unauthorized ACH debits do not clear your accounts. The ACH Block service rejects all ACH debits presented against your accounts that are set up for Debit Blocks. The ACH Blocks and Filters service rejects all debits except those that you have specifically authorized. ACH transactions that come through from a previously designated originator can be filtered by Amount, Authorization Date or Expiration Date. • By Originator: The system allows or rejects a transaction based on the Company ID field in the Batch Header record • Dollar Amount: A maximum dollar amount can be set and will reject debit transactions (from the specified originator) exceeding the preset limit • Authorize Date: Transactions will not be accepted from the specified originator until after the Authorization Date. If sent prior, they will be rejected • Expiration Date: Transactions will only be accepted up to the Expiration Date; after that, they will be rejected ¨ PAGE 1 0 BANKt^h-eWEST BNP PARIBAS COPY Once the Block and Filter is established, it is not necessary to monitor the accounts. The Bank's ACH system will monitor the accounts based on the specified criteria. Changes to the criteria or authorized originators can be made at any time. As a companion service, the Bank also offers ACH Positive Pay, a Web-based security tool that prevents unauthorized ACH transactions from posting to your accounts. It has an easy-to-use Web interface allowing you to review incoming ACH credit and ACH debit "exceptions", and to make a "pay" or "return" decision online. Benefits of ACH Positive Pay: • Fraud Mitigation: Allows corporate clients to monitor and manage ACH credit and debit items before transactions are posted to their accounts • Security: Advanced online security features help you reduce the possibility of unauthorized access • Convenience: Provides clients with the convenience of setting up filters to permit previously authorized ACH transactions to post without having to be reviewed • Notifications: Allows users to set up alerts regarding ACH activity that may affect their account. 5. Does the option exist to create sub-accounts under the primary account? No, the Bank does not offer sub-accounting service other than the traditional ZBA service described above. If the City's need is to track deposit locations, the Bank's Deposit Reconciliation service will allow the City to receive location-based reporting information. ¨ PAGE 11 BANKr^H-kWEST BNP PARIBAS COPY Tab E Collateralization of Deposits The bank is required to collateralize public funds deposits under the California Government Code, Sections S3651 and 53652. Copies of the reports filed with the State of California shall be made available to the City upon request. Please detail the bank's procedures for collateralizing public funds deposits. 1. What types of securities are used as collateral? Treasury Notes, Treasury Bills, Agencies securities, Muni (own state) and MBS are the types of securities uses as collateral. The Custodian of collateral is Wells Fargo Bank Minnesota. 2. Which bank department Is responsible for tracking deposits and monitoring collateral? The Money Desk is responsible for tracking deposits and monitoring collateral at the Bank. 3. What is the bank's current level ($ amount) of California public funds deposits and the related collateral? As of January 31, 2019, in California, the Bank over $2.43 billion in public fund deposits and over 1500 accounts that are collateralized in accordance with California state codes and other applicable laws. Of the total $2.43 billion public fund deposits, the minimum collateral required is $2.08 billion and the market value of pledged securities (related collateral) is $2.39 billion. 4. What Is the frequency of reporting to the State Treasurer's Office? Weekly and Monthly as per Sections 53663 and 53661 of California Government Code. 5. Please include a copy of the Bank's Contract for Deposit of Moneys in this section. Please refer to the following pages for a copy of the Bank's Contract for Deposit of Moneys. ¨ PAGE 12 BANKt^JTeWEST BNP PARIBAS COPY BANK,?r. BNP PARIBAS hlWEST CONTRACT FOR DEPOSIT OF PCBLIC FIENDS [California - Inactive and Active] Bank of the WestDepository; Local Agency. Agent of Deposittny Security Safdceeper Depository's Net Worth as of Depository's Paid-up Capital aiKl Surplus: S Depository's Most Recent CRA Rating: Effective Date of this Agreement: This agreement is made by and beha een the local agency named above ("Agency") deposit of fimds nith Depository. Depository and Agency agree, as folio 1. Goveiniog law. This Title 5. Division the Califmua .t ("Dq>ositofy") and the Treasurer of the Agency wiA re^)ect to the Agency's ed into pursuant to California Ck^vemment Code fe: all sections referenced in this agreement shall be to Agency ReprllllVlrio^ Agency has determined that the deposit accounts and services conien^iat^ by tJi^^wment are to the public advantage. The person(s) exectitmg tiiis agreement on behalf of Agency represent and warrant that: (a) they are authorized by the Agency and under applicable law to bind the Agency to this agreement: (b) no furdier approval by any other person board <x governing bod>' is required to make this agreement effective and binding as to the Agency, and (c) Agency s fimds maybe deposited with Depositoiy in accordance with this agreement. Depositoiy Repi eseurarions. Depositor^' represents and warrants diat its net wordi and latest Communitv* Remvestment Act rating are as set forth at the top of this agreement. Interesr. Imerest shall accrue on interest-bearing accounts maintained by Agency at the rate set fwth in Agency's account agreement with Depository If Depositoiy does not have a system that can accrue interest on a 360-day basis for inactive deposits. Depository may increase the rate of interest on die account so that die interest vield is 041-00906 (01-18) BANKt^h'eWEST BNP PARIBAS ¨ PAGE 1 3 COPY equivalent to an account where interest is calculated on a 36(>-day basis. Interest shall be paid quartedy or more frequently', as set forth in the account agreement. Expenses. Unless otherwise agreed by the parties; (a) Depository shall bear the expense of transportation of eligible securities maintained as collateral to and from the designated Agent of the Depository: (b) Agency shall bear the e.xpense of transportation of funds to and from Depository: and (c) Depository shall handle, collect and pay checks, drafts, and other exchange for the fees set f(^ in the account agreement between Depository and .A.gency Other Deposit Terms. Each deposit shall be subject to the terms of die account agreement between Depository and Agency. This agreement supplements and si4>ersedes. wliere inconsistent the terms of the account agreement between Depository and Agency. Deposits. At the time of each deposit. Depository will de^sit shall be subject to the terms of this agreement state if and when interest is to be paid, the rate of deposit, and the terms of withdrawal. eipt to Agency. Each agreement, which ation of the Security for Deposits. Depository shs eligible securities widi the Agent of! .Agency, in accordance with the C< sxKh securities for safekeeping with • any Federal Reserve Bank or hcanch D^sitory. in accordance wil waives security for the nortion ol Depository may add. su' in accOTdmce as defined in the required amount of iw to secure foe deposits of the It of Depository is authorized to place above as "Seairin Holder " or wifo fith any ofoer i^ipro^-ed Agents of 16^. Pursuant to Section 53653. Treasurer sits that is insured pursuant to federal law. iw securities being used as security for deposits Depository not interchange classes of security, without foe prior written appros'al of the Treasurer. Depositor>' shalfhavej* hereby reserves the right to collect interest on the securities maintained as coUMC except in cases where the securities are liable to sale or are sold or converted in accordance wifo the pimisions of California Government Code §53665. Default by Depositoiy. If Depositor^' fails as an institutioa or foils to pay all or part of foe deposits of foe Agency secured by pooled securities in accordance wifo this agreement and i^on the dptnand of the Treasurer or any other auth(»ized official Treasurer will send written notice to the Administrator of Local Agency Securit>' of the State of California (foe "Admmisrrawr "). who shall draw on any ai^licable letter of credit and. or com^ert into money any securities i^cessary to cover (a) the deposits of foe Agency, (b) any accrued interest, and (c) the reasonable e.\penses of foe Administrator, which '^haii be distributed and used by the Administrator, as provided in Section 53665 of foe Code. If the Administrator determines that a securitv* is not qualified to secure public deposits. Depository will substitute other securities to comply wifo the requirements of this agreement. 041-00906 00&18) BANKt^JTeWEST BNP PARIBAS ¨ PAGE 14 COPY Upon notice to the Treasurex from the Administratof. Treasurer may mthdraw deposits in the e\'ent the Depository f^s to pay flie assessments, fines, or penalties assessed by the Administrator <x may withdraw authorization for the placement of pooled securities in an agent of depository in the e\-ent the Agent of Depository feils to pay the fines or penalties assessed by the Administrator. 10. Compliance. Subject to Section 53648 and applicable federal law. the parties shall conq)ly in all respects with the provisions of the Code and other ^licable provisimis of law. 11. Termination. Either party may terminate this agreement as to future deposits by providing 30 days prior written notice to die other party. Date <AGENCY By 7 NameTitle: 5N/ NameTitlc; BANK OF THE WEST \ Date: DEPOSITORY By 041-40906 (O&IS) ¨ PAGE 15 BANKt^h-eWEST BNP PARIBAS COPY Tab F Bank Compensation The City has historically paid for bank services with a combination of hard-dollar fees and compensating balances. Please Indicate the following in this section: 1. Can the City compensate the bank for services with fees, balances, or a combination of the two at Its own election? Please describe any differences In related costs to the City with either option. Yes, the City has the option of paying fees directly or using compensating balances. There is no difference in the cost to the City based on its payment structure; however, it may be advantageous for the City to evaluate the impact that balance reserves will have on a compensating balance program versus a direct fee payment, especially as it relates to investment opportunity on those balances. 2. Can the City choose between paying for analysis deficiencies by check, auto debit, or ACH credit? The default payment method for analysis deficits is by auto debit from a Bank of the West account of the City's choosing. Upon request and with approval from Bank management, invoice settlement by check can be arranged. ACH credit is not currently an option. 3. What is the bank's Earning Credit Rate (ECR) based on, and how Is It calculated each month? The Bank is pleased to offer the City our preferred rate of 1.50% (current Bank standard rate of 0.20% plus an additional 1.30%). With this highly competitive exception rate, the City can manage balances to ensure all service fees are offset in full. The standard rate (base rate) is a bank-adjusted rate and it's applied to the City's monthly Average Investible Balance (Average adjusted Collected Balance less Reserve Requirement). 4. List the bank's average ECR for each of the last eight months (January - August, 2018). The Bank's standard ECR was 0.20% for the past eight months 5. Using the ECR for the month of August 2018, please calculate the level of compensating balances (after float and reserves) needed to offset one dollar of the bank services. ($1 in services = $ In compensating balances.) Using the standard rate of 0.20%, $1 in services = $6,083 in compensating balances. For the City's approved exception rate of 1.50%, $1 in services = $811 in compensating balances. 6. Please explain in detail, how and when the FDIC assessment Is computed and charged. The Deposit Administration Fee is a Bank fee associated with the assessment charges. Financing Corporation charges and other charges provided by law and may also include administrative expense incurred by the Bank in providing depository services. The fee charged is based on the average monthly ledger balance held in a checking account, per $1,000. EXAMPLE; if the average monthly ledger balance is 10,000. The fee would be $10,000/$1,000 X.10 = $1.00. 7. What Is the bank's settlement period for account analysis and billing purposes - monthly, quarterly, semlannually, or annually? How long can any excess balances be carried forward to apply to charges in future billing periods? The Bank offers the City monthly or quarterly settlement of Account Analysis fees. ¨ PAGE 16 BANKt°h^eWEST BNP PARIBAS COPY 8. How long will the bank's pricing, as indicated in this proposal and the Banking Services Bid Form, be fixed? All pricing will be fixed for the life of the contract. 9. Please detail which types of items and services can be applied against the account analysis in addition to the standard bank services, such as merchant bankcard processing, messenger service, armored carrier (currently with Garda World picked up weekly), check stock, supplies, custody services, etc. Is there a markup for any of the items? If so, how much? Aside from general banking service volumes (checks, deposits, ACH transactions etc.), we are open to discussing other items as long as Federal Regulation Q is not violated. The normal mark-up for third-party services is 15%; however, we are open to negotiate depending on circumstances. 10. How does the bank charge for overdrafts? Does the bank charge for the use of uncollected funds? If so, how is the charge calculated? The Bank assesses a per-item fee to the City's account analysis for each item paid or returned due to a negative ledger balance. For the first four overdraft occurrences within a twelve month period, the fee is $18.00 per item. The fee increases to $22.00 per item for subsequent occurrences. In addition, an Overdraft Interest charge of Prime + 2% is assessed on the average negative ledger balance for the month. Yes, the Bank charges a separate Funds Advanced fee of Prime + 2% on the average negative collected balance for the month. 11. Please state the negative collected balance charge that the City will pay and, in detail, explain how this charge is computed. Is the rate quoted in this proposal good for the term of the contract? Please refer to question 10 above. Yes, the rate quoted is good for the term of the contract. 12. Are Account Analysis Reports available on-line? if so, specify the cost. Yes, both the Relationship Summary and the individual account analysis statements are available online. The cost is $0.35 per statement. 13. What procedure is used to make any adjustments to the Account Analysis statements and how long does it take for adjustments to take effect? If the error is identified during a settlement period, the analysis statement will be corrected by the dedicated Relationship Specialist the following month. If the error is identified after the settlement period, the Bank will make a direct adjustment to your account. Any adjustments will be made by your Relationship Manager and Relationship Specialist, typically, within one week. ¨ PAGE 17 BANKt^h-eWEST BNP PARIBAS COPY Tab G Deposit Activity The City currently utilizes a variety of methods to process dally deposits. The City requires weekly deposit pick up from City Hall. Total monthly deposits consist of approximately 600 to 800 un-encoded checks and approximately $20,000.00 to $30,000.00 in coin and currency. Deposited Items should be automatically re- cleared once. Checks that are returned are mailed to the City. The City requires the ability to use the branch to make branch deposits, to get change, to allow employees to cash payroll checks, and for other miscellaneous activities. The City currently visits a local branch once per month. 1. Please identify your branch locations within the City of La Quinta. Do all locations provide night depository services? The branch location nearest to the City is 74-989 Highway 111, Indian Wells, CA 92210. This location does not offer night depository services. The nearest branches with night depository are in Mission Viejo or San Clemente, CA. The Bank recommends the use of armored transport for daily deposits to our Cash Vault facility in Ontario, CA. 2. Please describe the bank's deposit requirements. How should the coin and currency deposits be prepared? How should un-encoded check deposits be prepared? Currency Deposits - Basic currency-only deposit packaging is as follows: • Face bills and sort in order by denomination • Bundle faced and sorted bills in stacks of 500, as quantity permits and secure with a rubber band • Affix address label to bag • Record "Declared Value" amount where indicated • Insert the prepared currency and small amounts of coin along with the original deposit slip in the bag • Seal bag according to instructions and remove tear-off receipt Each currency deposit Is enclosed in a separate plastic, transparent, tamper-evident deposit bag, which enables the most efficient deposit tracking. Currency deposits can include a limited amount of coin up to $10. Coin Deposits - Coin deposits are packaged separately from currency and require their own deposit ticket. Coin deposits are sorted by denomination In separate bags, or mixed denominations in one bag. The Bank accepts coin deposits In standard quantities, non-standard quantities, or subject to count deposits. Coin deposits should be packaged in clear coin deposit bags with pre-printed labels affixed. The deposit ticket associated with coin deposits is included In an envelope with a preprinted label affixed to it. The envelope Is listed separately from the coin on the manifest, so that the envelope Is delivered to the cash vault for posting and the coin Is delivered to the coin vault for verification to ensure same-day credit. Mixed Deposits ~ Currency, checks and some coin (up to $10) can be included in a mixed deposit. To prepare a mixed deposit, place prepared currency, coin, checks (along with a tape of the checks) In one deposit bag with one deposit ticket. 3. How would the City order cash vault supplies? How Is payment made for such supplies? The City will order Cash Vault Supplies through their dedicated Relationship Specialist. The cost for supplies will be assessed to the City's Account Analysis. ¨ PAGE 1 8 BANKt^JT^WEST BNP PARIBAS COPY 4. Please describe in detail the bank's procedures for handling deposit adjustments. What documentation on discrepancies does the bank provide? In the event the Cash Vault makes a deposit adjustment, the City will receive an adjustment notice via the WebDirect Special Report system. The notice will include the deposit date, adjustment date, declared deposit amount, verified currency amount by denomination, location number and reason for the adjustment. For cash- only deposits, the declared deposit amount and any adjustments are electronically posted. For mixed deposits (cash and checks together), deposits and adjustments are posted via the paper-posting stream with images made available. The Bank will always credit the City's account for the declared amount on your deposit slip, and follow with separate debit / credit entries for adjustments. Adjustments will appear the same day as the deposit posting on the City's WebDirect previous day reporting. Cash Vault adjustment notices are also available by mail or fax at an additional cost. 5. Is the deposit adjustment documentation different from cash deposits and check deposits? What is the minimum adjustment amount? How soon would support documentation of a deposit discrepancy be provided to the City? Yes, Adjustments for cash deposits are processed electronically by the vault with a Special Report generated via WebDirect. Adjustments for check or mixed deposits will be paper-based with an image available via Previous Day reporting the following day. 6. Please describe the bank's returned item handling and notification procedures. Is an automatic re^lear option available? How long does It take for returned items to be sent to the City? Include any online tools available for this purpose. The Bank processes return deposited items from its processing center in San Ramon. The City has special handling options including automatic reclear of NSF/UCF items (one time) at a cost of $1.00 each. Returned items are memo posted on WebDirect Current Day activity on the day received with an optional maker name appearing in the transaction information. An image of the item is available the following morning via Previous Day Detail reports. The City will receive an Image Replacement Document (IRD) of the return item typically within two to three business days of processing. Fax or telephone notifications are also available at an additional charge. 7. What are the cut-off times for deposits at the bank's local branch and at the bank's Processing Center to ensure same day credit? Where is the Processing Center/Cash Vault located? Will the City deal directly with the Cash Vault on deposit adjustments or with a local representative? The cut-off for deposits made at the Indian Wells Branch is 5;00 PM. For deposits made at the Cash Vault the cut off times are 7:00 PM for cash only and 6:00 PM for checks only or mixed. Our Cash Vault facility is located at 1375 East Acacia Street Ontario, CA 91761. Any issues regarding deposit adjustments will be directed to the City's dedicated Relationship Specialist to provide accurate tracking and resolution. ¨ PAGE 19 BANKt^WEST BNP PARiBAS COPY Tab H Bill Concentration Service 1. Does the bank have the capability to provide a bill concentration service? If so, please describe the service. The City currently does not use Bill Concentration services nor has large volume of bills for collection. Electronic payments are encouraged; however, the City would like to know if the bank provides centralized bill payment processing should it be needed in the future. The Bank partners with Check Processors Inc to provide bill consolidation services please see description below; Check Processors Inc On July 1, 2011 APIS of Seattle, Washington purchased Check Processors Inc. of California, also known as CPI. CPI was formed in 1986 and since that time has been providing remittance processing services for Water Districts, utility companies, various cities and counties as well as provides services for the State of California. Today they service over 250,000 payments per month. AFTS/CPI has been in business since 1971 and has been providing all types of payment processing services since that time. Bill Pay Consolidation Services (Home Banking Payment Processing) CPI has the solution to streamlining the daily process, resulting in a single consolidated deposit that totals to a posting data file that can update your accounts receivable system. Your staff no longer needs to hand-key any payments. Checks are not delayed or lost in the mail. You receive your funds and your accounts are updated on the same day Check-Free issue the payment information. CPI has the solution through our Home Banking Consolidation (NBC) service by linking your accounts receivable data to 98+% of the online bill payment volume. Our services can process payments originating from: • Fiserv (Checkfree) ¨ Ipay Solutions Using a validation database provided by the billing organization that includes information like account numbers, names, amounts and other information that may be useful for processing, our NBC service links this to the online bill payments received daily. We programmatically match the information sent by your customers via their bank's bill payment service to the validation data file. Payments that can't be matched automatically are visually compared by CPI staff using business rules customized for your needs. The HBC system then saves these business rule "match" logic choices so future payments can be automatically linked. Those payments that can't be matched can either be communicated to you for input on how to apply them (customer friendly approach) or returned un-processed (tough-love approach) so your customer updates their bill payment instructions at their bank so future payments do work correctly. A month or two of the customer friendly approach, followed by tough-love seems to work best for most applications. Each day the HBC service creates audit-control reports and direct A/R updating files that can be imported into your accounting system to apply those payments that have been matched. The funds from the matched transactions are ACH credited to your settlement account the next day. AFTS/CPI provides the City with a text file with bill payment information. AFTS/CPI will provide a posting file in any layout based on the specs that the City provides that will import back into the various accounting software that the City uses. Once your work is done we send an email out to the City letting them know that HBC is processed along with the total deposit. At which time the City can access our web-portal to pick up the posting file to import into their software. We also provide various daily reports of all payments received, and the City can search our web-portal for any payment data that we processed for them. ¨ PAGE 20 BANKt^h-eWEST BNP PARIBAS COPY • Two-Way Messaging - The City can send customized messages to customers on bills and post messages on the payment website. • e-Consent Forms - Consent to paper suppression during registration or at a later time, with the ability to suppress all documents or only certain documents. Reporting: • Reseller Reports: Individual business and aggregated reports including production, stop payment, payment details and more • Business Reports: Activity summaries, customer status reports, deposit information, accounts receivable reconciliation, recurring payments, file upload status and more • Customer Reports: Payment history, payment details, pending payments and more ¨ PAGE 21 BANKt^'eWEST BNP PARIBAS COPY Tab I Wire Transfers The City currently transacts wire transfers on-line, initiating approximately five (5) wires and book transfers a month and receiving approximately two (2) incoming wires per month. 1. Please describe the bank's on-line wire transfer capabilities. What is the deadline for initiating wire transfers? The Bank provides the initiation of domestic and international wires, as well as internal book transfers between Bank of the West accounts. Wire transfers can be generated in US Dollars or multiple foreign currencies and provide same day availability when initiated according to the Wire Deadline schedule provided by the Bank. Wire Initiation - the Bank offers the initiation of wire transfers through the following methods: • Internet / Web-based: Wire initiation using WebDirect, the Bank's online cash management system. • Direct Wire: Phone-in wire transfer requests • Standing Transfer Order (STO): An automated option for repetitive wires with a recurring schedule; can be set-up on a fixed or peg balance amount • Branch: Walk in to a Bank of the West branch and request a wire transfer • Flat File Wire Delivery: File import of wires using WebDirect or WebDirect "Connect." an adjunct service containing an automated scheduler used for large volume of daily wires • Straight thru processing (CPU to CPU): Via the Bank's Integrated Solutions service Wire Types - choose from free-form or create wire templates • Free Form: Initiate a one-time wire transfer without creating recurring transfer instructions • Wire Template: Initiate wire instructions from a pre-formatted template (repetitive transfers) for frequent or regularly scheduled transfer of funds Wire transfers initiated via WebDirect can be scheduled up to 30 days in advance. Wires initiated via Integrated Solutions can be scheduled up to seven days in advance. Wire Deadlines • Incoming Wires received by the Bank before 2:30 PM PT will receive same-day credit. • Outgoing wires will be sent the same day when initiated and approved prior to the cut-off times in the following table. TYPE OF TRANSFER Fed/Domestic Book Transfer/Internal Drawdown International 6.30 AM 2-30 PM 6;30 AM 4:00 PM INPUT METHOD (PACIFIC TIME) 6:30 AM 2:00 PM 6:30 AM 2:30 PM 6.00 AM 2 30 PM 6:00 AM 4 00 PM 600 AM 2:30 PM 6 00 AM 2:30 PM 6.00 AM 2 30 PM 6:00 AM 4 00 PM 6:00 AM 2:30 PM 6 00 AM 2:30 PM Automatic Standing Transfer 6.30 AM 2 30 PM 6:30 AM 4 00 PM 6:30 AM 2:30 PM 6 30 AM 4:00 PM BANKthe^■tWEST BNP PARIBAS ♦ PAGE 22 COPY 2. What safeguards and security measures does the bank have in place to protect the City? WebDirect uses multifactor authentication to prevent unauthorized access to the wire transfer system and the application is secured by 128-bit SSL encryption. Using the System Administration module in WebDirect you may assign specific dollar and approval limits to users initiating wires as well as establish dollar limits per transaction or maximum daily usage amounts for each wire template. Other security measures include password changes and timing-out individual WebDirect sessions. Password changes are required every 90 days by default; however the frequency is controlled by the Administrator and may be modified at the user-level as desired. WebDirect will log out users after 20 minutes of inactivity. If a WebDirect session becomes inactive for 20 minutes, the session will end or "time-out" and the user must log on to begin a new session. Operational security features include required approvals on all free form wires and template setups. Multiple approver requirements (up to nine) can be established on templates prior to wire release. Maximum dollar limits can be established at the user or template levels. ¨ PAGE 23 BANKt^h^eWEST BNP PARIBAS COPY Tab J Automated Clearing House (ACM) Service Requirements ACH Direct Deposit of Payroll: The City utilizes direct deposit services for bi-weekly payroll for the City. Approximately 95% of the 110 City's employees take advantage of the direct deposit service. Please address the following; 1. Describe the bank's direct deposit services, including the software requirements and transmission options available. The Bank's Automated Clearing House (ACH) service provides a reliable, cost-effective method to originate electronic payments. The Bank is a nationally recognized ACH originator and is among the top 50 ACH originators in the United States. Bank of the West will assist the City in identifying how our various ACH solutions fit your cash management requirements. ACH services include the origination of Direct Deposit, Direct Payment, Check Conversion, Corporate Payments and Financial Electronic Data Interchange (EDI). Each option is described briefly in this section. Direct Deposit: The most widely used ACH application; Direct Deposit credits your employees', customers' and beneficiaries' bank accounts at predetermined intervals or as necessary. Direct Payment: An ACH transaction created when your customer or business trading partner gives you authorization to debit their account on a regular basis; this diverse application is typically used to collect loan payments, insurance premiums, recurring bills or other standard invoices Check Conversion: Point of Purchase: A transaction that enables you to convert paper checks received from consumers and some business partners* into electronic payments at the point of purchase (*Not all business checks are eligible for conversion) Re-Presented Check: A transaction enabling you to collect funds from a paper check that has been returned for insufficient or uncollected funds Corporate Payments Corporate Trade Exchange: A transaction that allows payment and remittance information to be exchanged between trading partners using the ACH Cash Concentration and Disbursements (Corporate Credits and Debits): A transaction that allows companies to collect or disburse funds Tax Payments: A transaction that automates the reporting and collection of Federal, State and local tax obligations ACH Origination The Bank offers three methods of ACH origination, WebDIrect ACH and DIrectSend (transmission) are described in detail in this section. Integrated Solutions ACH is described after question five. WebDIrect ACH WebDirect ACH is a comprehensive internet-based ACH origination module allowing the City to simplify collection and disbursement activities by significantly reducing paper check handling. WebDirect ACH enables the City to: Upload NACHA files directly to the WebDirect interface Create ACH batches using preformatted, user-friendly templates for recurring transactions Modify or delete transactions within a batch Import NACHA files to update or create new batches Create electronic Federal and State tax payments View various report types including Return Resolutions and Notices of Change (NOC) ¨ PAGE 24 BANKt^TeWEST BNP PARIBAS COPY Direct Send ACH (transmission) DirectSend ACH is a transmission-based origination service to upload NACHA files directly to the Bank via secure connection. DirectSend includes the following features: • Connect using Secure Transport web portal (HTTPS) or {S)FTP Client (SSH/SCP) • Enter control totals and view online confirmations when the Bank has received your transmitted files • Receive a daily, automated return file in NACHA format, making it easier to manage and post high return volumes ACH Transmission Work Flow: • The City transmits a DirectSend transmission file to the Bank • Upon completion of a successful transmission, the City provides file totals (i.e.: number of transactions and total debit/credit amounts) via ACH Exchange Control Total online platform • The Bank balances the file and releases It to the Clearing House (Federal Reserve); if the Bank does not balance the file, you will be notified and asked to make the appropriate corrections • The Clearing House notifies Bank of the West when the file transmission is complete and a balanced file was received 2. Discuss screening measures that the bank uses to minimize errors on files sent to the bank. Describe the process and timing available for file/error correction. DirectSend and WebDIrect ACH files undergo file validations that are built into the ACH system. Files can be deleted prior to releasing to the ACH operator. If the fi le has already been sent, a reversal may be initiated. If there is an issue with a transmitted file, the City will be contacted by ACH Operations with issue details and instructions. 3. Indicate the transmission deadlines for direct deposit ACH files, including date and time when the bank needs the file from the City and when the funds are debited from the City's account. • WebDirect ACH files must be submitted to the Bank and approved by 5:30 PM PT, at least one business day before the effective or pay date • DirectSend ACH (transmission*) processing requires file transmission and approval by 8:00 PM PT, at least one business day before the effective or pay date * For DirectSend transmission of ACH files during extended processing windows (6:00 PM PT - 8:00 PM PT) the Bank requires the City to provide a direct contact person accessible to the Bank during this time period, in the event file issues warrant communication with the City. We do not recommend leveraging extended processing windows for payroll processing under normal circumstances because it provided very limited time to handle any exceptions / errors that may arise. NACHA guidelines specify that payment is guaranteed only if processed within the stated cut-off time standards. Funds will be debited from your account on the day of settlement (i.e., the effective date) unless the settlement date falls on a bank holiday or weekend, in which case the Bank requests the file be sent in the business day prior to the weekend or holiday. 4. Discuss any employee benefit programs for City employees and indicate if the bank would be able to participate in City-hosted employee benefits presentations. Bank at Work With Bank at Work, your employees have access to products, loans and services with special rates and discounts as well as valuable financial education courses. Best of all, this exclusive employee benefit comes at no cost to the City. In addition to the benefits below, the Bank would be willing to participate in City-hosted employee benefits presentations. ¨ PAGE 25 BANKA'eWEST BNP PARIBAS COPY Through Bank at Work, we offer free financial education seminars to help educate you and your staff with such Issues as identity theft and learning about banking basics with the goal of providing excellent education, feedback, and advice that you and your staff may have regarding any banking needs. Bank at Work can help your employees enhance their financial situation and build a solid financial future. Save time and money when you bank at work Whatever your financial goals, Bank of the West is here to help The Sank at Work' Program can happen right at your place of work, or one of our many branch locations, making it easier for you to get the financial guidance, tools and resources you need In addition, you'll enjoy money saving offers and special perks including; • hiexible account oot'ons that maet your • nracDcai onsjte fi'^ncial education seminars banking needs , rnbanceo rates on selected lenr- CDs and • Streamlined, convenient, and simpli'ed orisite Money Market Plus Savings' account ooening options , annjai fee c»i small safe dwos^; twx' • Access TO dodicaied protossionais for t.naroiai , Waived anniual fee Gold Line Cfverdraft Protection' situations ranging from simple to comple* n Complimentary and dfscounted seff-direcied online trades* through BancWesl investment Servloes PLUS n Complimentary financial review with an Investment Financial Advisor from our affiliated broker/de^r- BancWesl investment Services* To learn more.please contact your Bank at Work repreeentatlye or visit your nearest branch BANKA^eWEST BNP PARIBAS Mnnttf miC tnA -lojmg; mw Iti'H cr ire'Acsi 5. Is there direct support for file testing? Yes, testing plans are unique to each individual client and are based on the combination of products and services provided by the Bank and how those services are delivered (online, transmission, etc.) The Bank understands that a detailed testing plan Is critical to the planning and timing requirements of the implementation; therefore, the Bank will provide a testing plan during the initial phases of implementation ACH Vendor Payments: The City would like to make payments electronically. Describe the program used by the bank to facilitate these payments. The City currently uses Tyler Incode 10 for its financial software. Integrated Solutions ACH Integrated Solutions is a host-to-host payables service that can be used to initiate ACH transactions, as well as wire, check and credit card payments, all in one mixed file. This electronic payment service will automate the City's accounts payables process, helping ensure it is accurate, timely and secure. Heightened Efficiency and Accuracy: Invoices and other payables are entered only once, greatly reducing the likelihood of data entry mistakes Convenience: Integrated Solutions works with compatible accounting platforms so payables are instantly transmitted to Integrated Solutions in one easy step Simplicity: Real-Time payment processing keeps the City fully informed about the current status of each transaction ¨ PAGE 26 BANKT^H-kWEST BNP PARIBAS COPY Integrated Solutions process; The City's Accounting Manager enters invoices, expense reports, and other payables into the City's accounting system. The City's accounting system securely connects to Bank of the West's Integrated Solutions service. Integrated Solutions reviews instructions, validates business rules, sends payments to the Bank's back-end system for further processing and provides status updates to the City's account system in real time. The Bank's back-end system processes payments and provides a confirmation back to Integrated Solutions. ACH Auto Debit: The bank must have the capability to accommodate an online bill collection services. Please refer to Tab H Bill Concentration Service. ¨ PAGE 27 BANKt^h'eWEST BNP PARIBAS COPY Tab K Payroll Tax Processing Please describe the bank's pavroil tax withholding services and its related costs. The City requires the ability to report and pay state and federal tax withholdlngs automatically online or by telephone. TaxDIrect TaxDirect is the most effective way to make your tax payments electronically. The system has the capacity and speed to process payments quickly and accurately, eliminating the need to write checks and complete coupons. Whether it's federal, state or local taxes, we offer a complete service with multiple tax type options. TaxDirect is secure, reliable and confidential. It can only be accessed through your PIN (Personal Identification Number) and Access Code. Furthermore, it carries one of the highest commercial government security ratings. Initiate your payment at least one business day prior to the due date and complete your session no later than 3:00 PM PT for next day credit. You can rely on TaxDirect to pay your taxes on time, every time. Features and Benefits of TaxDirect • Fully compliant with federal, state and local program requirements • Ability to electronically pay 1,700 types of taxes across many jurisdictions • Automatic payments can be scheduled up to 30 days in advance I Direct remittance of payments to the appropriate authorities • Optional immediate payment confirmation • Avoid late penalties due to lost or delayed mail • Access the system 24/7 from the office, home or on the road • Reliable and secure Internet Enter payments online, access a drop-down menu with currently enrolled tax jurisdictions and receive real-time editing and confirmations. For higher volume, you can upload a tax payments file via the online portal. Touch-tone Telephone Our automated interactive voice response (iVR) system allows you to make payments anytime, on the phone Live Operator Enables small businesses with less than 10 payments per month, those with a rotary phone or those requiring customer assistance to complete their transactions BANKt^h'eWEST BNPPARIBAS ¨ PAGE 28 COPY Tab L State Activity/LAIF Transfers The City transacts State of California Local Agency Investment Fund (LAIF) transfers on a regular basis and receives State electronic payments. 1. Please describe the LAIF transfer process. Are the transfers done by telephone, email, fax, wire transfer, etc.? How is the accuracy of transfers assured? LAIF transfers are originated online through the WebDirect Wire module, to an internal clearing account. The Bank will provide the City with wire instructions to the State of California account housed at Bank of the West. 2. What is the charge per transfer to LAIF? From LAIF? Transfers to LAIF are sent as book wire transfers and cost $1.75 each. Transfers from LAIF are received as incoming wires and cost $8.00 each. 3. Does the bank have an office in Sacramento that maintains a direct DDA banking relationship with the State Treasurer's office and the State Controller's office? Yes, the Bank maintains a direct banking relationship with the State Treasurer's Office and the State Controller's Office. 4. Is the bank an approved State of California depository? Yes, the Bank is a California State depository bank. 5. What is the charge for the deposit of State electronic payments? State warrants? The charge for State electronic payments is the same as ail other electronic or paper items deposited. 6. What is the bank's position on past issuance of lOU's by the State of CA? Does the bank accept lOU's for deposit? In the past, the Bank has accepted State of California registered warrants (aka lOU's) for deposit by Bank customers. The Bank reserves the right to make a decision on any future issuance of registered warrants. ¨ PAGE 29 BANKt^h-eWEST BNP PARIBAS COPY Tab M On-line Bank Processes and Information Reporting The City currently utilizes a web-based on-line system to perform a variety of processes, such as placing stop payments and accessing online balance reporting information for all accounts. 1. Please describe the banks on-line banking and information reporting system(s} including a list of all services provided. PLEASE NOTE: Although responses to this RFP refer to WebDirect, our current online solution, we have a firm commitment from Bank leadership and our parent company BMP Paribas, to develop a next generation, digital- banking Cash Management platform and services. The Bank Is actively executing against a multi-year transformation program to develop next-generation Cash Management Products and Services. Key initiatives under this program include redesign of our online banking platform, enhanced host-to-host and API capabilities, ongoing payment modernization efforts and key industry initiatives including Real-Time-Payments and Swift Global Payments Innovation, etc. WebDirect is Bank of the West's online cash management system, it provides the convenience to access account balances, initiate daily banking transactions, and view and print detailed information reporting. Complete with system-wide security features including a dual control system administration module, WebDirect offers a variety of convenient features to support the City in managing your payables and receivables. Features of WebDirect include: • Account Reconcilement: Full, partial and deposit reconcilement services; upload check issues online as single items or in batches using a simple Excel file Account Transfers: Make real time transfers between Bank of the West accounts ACH: Initiate individual electronic transactions online or import batches using a standard ACH file format and process through the Automated Clearing House Tax Payments: Create electronic Federal and State tax payments; a transaction that automates the reporting and collection of Federal, State and local tax obligations Electronic Images: Retrieve, download and print images of paper items such as paid checks and deposits with offsetting credits and debits Information Reporting: Retrieve account balance, summary and detail activity customized to your needs: o Previous and Current day account balance with summary and detail information o Information Reporting account subtotal report o Customized Special Reports Launch: A portal to other Bank of the West online applications Positive Pay with Payee Validation: Use Positive Pay, with or without Account Reconcilement, to help prevent check fraud by making daily "Pay" or "Return" decisions on exception items; files are transmitted online with WebDirect or by direct transmission Special Reports: View and print electronic versions of: monthly bank statements, account analysis statements, investment statements, and ACH, Account Reconcilement, Cash Vault and EDI reports Stop Payments; Conveniently place a stop payment for a single check or range of checks with real-time confirmations; initiate stop payment renewal or deletion System Administration: The City designates two or more "System Administrators" at the time of account setup: system Administrators perform maintenance on your account including password resets and creating, modifying and deleting users Wire Transfers: Create one-time or recurring payments to domestic or international locations in US or foreign currency with real-time confirmations ¨ PAGE 30 BANKA-kWEST BNP PARIBAS COPY 2. What are the current computer hardware and software specifications for most effectively utilizing the bank's on-line system? WebDirect Is internet-based, so software is not required. WebDirect is certified for use on Windows or Macintosh operating systems with Internet Explorer, Firefox or Safari Internet Browsers. Current operating systems will be supported when new operating systems are added. New operating systems and web browser versions will be certified and supported for the application as upgrades are released. The Bank publishes a Features Guide prior to each new WebDirect release and will email the City to notify you of upcoming upgrades to WebDirect. The Features Guide will include an updated listing of the supported operating system and browser combinations and will be available on WebDirect prior to the upgrade. 3. At what time (Pacific Standard Time) is prior day information avaiiabie? Previous Day reports are available at 6:00 AM PT and provide timely, comprehensive reporting of your cash position. 4. is the per item fee for prior day reporting based on the number of items reported or accessed? Unlike Current Day reporting, the Bank charges for Previous Day items reported, not accessed. Please refer to Tab U for pricing detail. 5. Can the reports be customized? Exported to Excel? Yes, the City can create customized online reports using the Bank's WebDirect Information Reporting system. Each standard report (Bank Level) can be customized to the individual needs of each user (User Level) or can be shared among all users of the City (Client Level). Additionally, when configuring reports in WebDirect, the system has extensive filtering capabilities, including filtering by account(s), amount range, check number, reference text and type of item. Customized reports can be produced in human-readable reports or exported in CSV or BAI formats at no additional charge. 6. What types of security measures are In place? How Is the assignment of user I.D.'s and passwords managed? WebDirect has four primary components of security; • Application Front End Security • Browser Security • eCMS Security • Network Security In addition, WebDirect has the following security features: ¨ PAGE 31 BANKt°h^eWEST BMP PARIBAS COPY Security and Customer Administration • Authorized officers of the City designate System Administrator(s) in writing at the time of set-up. The Administrator(s) entitles other users within the City and control system usage • WebDirect offers a dual control administration module (recommended by the Bank) • elmagelD, WebDirect's multi-factor authentication security, is a two-way validation system that confirms you are accessing the correct site and the Bank validates the end user is legitimate • User Profile reports are available and show what administrator(s) completed that maintenance. This is a standard report for administrators or an optional entitlement to other users • WebDirect requires 128 bit encryption • Each administrator is granted access to the ADMIN Module that allows them to create, modify and / or delete users, as well as reset passwords • Dual control enforces user maintenance by requiring two administrators to complete a maintenance request • Administrators activate users that have been locked out of the system or lock specific users out of the system to prevent unwanted access by those users • Passwords and related expiration options provide additional security and are assigned and controlled by administrators • Multi-user access with limits and entitlements • Detect and decrease fraud 7. What is the bank's contingency plan for providing this information in the event of an unexpected bank system problem or natural disaster? If the Bank's primary location is not accessible, an established backup site for operations, customer service and other support units will be activated. The facility will be functional within an established timeframe for each unit. The exact location(s} of these site(s) is confidential information. In the event of a disaster, the Disaster Recovery plan will be implemented. This plan states that a backup site will be activated in 15-30 minutes and will have the capacity to run systems as long as needed, in the unlikely event that our primary processing site and our backup site are both unavailable, we have a third site available on an on- call basis. 8. Does the bank offer electronic delivery of statements, reports, and notices? Yes, WebDirect's Special Reports will allow the City to view and print online versions of monthly bank statements, account analysis statements, ACH Return Notices, EDI reports and Cash Vault receipts. Cash Vault adjustment notices and more. BANKA-kWEST BNP PARIBAS ¨ PAGE 32 COPY Tab N Account Reconcilement The City currently issues approximately 400 Accounts Payable and Payroll checks monthly and utilizes Full Account Reconcilement with Positive Pay services for its disbursement accounts. 1. Does the bank offer Full Account Reconcilement Services with Positive Pay? If so, please describe the service including accepted methods for receiving the Positive Pay data and the format specifications for that data. Yes, the Bank offers full Account Reconcilement Services with Positive Pay. The Bank uses a sophisticated software program with the capability and flexibility to meet the City's specific needs. We designed our Account Reconcilement Services to be flexible and easily implemented with your accounting system. The City can utilize the Bank's standard ARP format or the Bank can customize the format to function with your fi nancial system. There are two options for file export/import: • Download and export paid check information from WebDirect in a BAI or CSV format • Receive a direct transmission of Paid, Partial or Full Reconcilement to your treasury workstation using the following protocols: Secure Transport Web Portal - HTTPS or (S)FTP Client - SSH/SCP Once reconciliation is complete the Bank generates various reports, available by mail, electronically via WebDirect or by transmission, Our reports are easy to generate, view, print and save for future use. Following are features and reports to assist in tailoring your reconcilement program to fit your needs: • Paid check reports via transmission, online in WebDirect, or hard copy • Reports sequenced by check number, issue date or paid date • Available in various subtotal, total and grand total schemes • Custom calendar cut-off dates and "as-of" or "from-to" cut-off dates available • Sub-account tracking and cumulative stop reports • Special reconcilement requests at any time during the accounting period • Paid only reports • Outstanding reports • Stale date feature • Maximum dollar control • Miscellaneous data fields, such as customer identification, department name Account Reconcilement and Monthly Depository Services statements can be downloaded and printed online and are available one day after month-end cut-off. The Bank's Deposit Reconcilement service will capture the identification numbers (ancillary) as a part of the deposit number and report it on electronic and paper statements and reports. If you have multiple locations depositing into a single account, the Bank's Deposit Reconcilement Services can segregate your deposits by location and list non-reporting locations. Through special serial number grouping, daily reporting and comprehensive monthly reports, this service facilities auditing and enhances the control over local depository activity while retaining the convenience and economy of a single depository account. The Bank also recommends the use of Pavee Positive Pay to add an additional layer of fraud protection to your accounts. Payee Positive Pay is a secure and effective way to minimize check fraud losses caused by the payment of unauthorized checks. By reviewing a daily "exception" report with images of suspicious items, the City can return fraudulent checks while paying all legitimate checks in a timely manner. All checks, including those received over-the-counter by the tellers, are verified against the positive pay file before processing. This issue information is picked up four times during the business day: 10:00 AM, 12:00 PM, 2:00 PM and 6:30 PM PST. ¨ PAGE 33 BANKt^JTeWEST BNP PARIBAS COPY Payee Positive Pay combined with Account Reconcilement will streamline accounting procedures and give the City total control over check and reconcilement activity. The Bank also offers Payee Positive Pay as a stand-alone service for customers without Account Reconcilement services, but in need of a safeguard against check fraud. Payee Positive Pay utilizes Optical Character Recognition (OCR) technology to read the payee name on the "Pay to the Order Of" portion of your checks. OCR software reads the payee name and performs a character-by-character match against the payee information provided in the City's issuance file. Payee Positive Pay Workflow • Prior to checks being issued, the City supplies the Bank with an issuance file containing the payee name, account number, check number, issue date, and dollar amount of each check. The issuance file can be transmitted to the Bank using one of two methods: • WebDirect, using a comma separated value (CSV) or fixed width text (TXT) format • DirectSend Transmission • As checks are presented to the City's account for payment, the Bank electronically compares them to your Issuance file. The following components of the check must match for the Bank to pay the item: payee name, account number, check number, issue date and dollar amount. Checks matching the City's file are paid. • Checks that do not match the City's file are identified as "Exceptions," and presented to the City in an Exception Report on WebDirect by 7:45 AM PT. Prior to reporting exceptions to the City, a Bank specialist reviews each item to ensure that only legitimate exceptions are included in the final exception report. • Using simple drop-down menus in WebDirect, the City makes a "Pay" or "Return" decision by 1:00 PM PT. The Bank provides an image of the exception item to assist in making a decision. If a decision is not made prior to the cut-off time, the default disposition established by the City at the time of account set-up will take effect. Payee Positive Pay Cut-Off Times . File Upload Cut Off (Via WebDirect): 10:00 AM, 12:00 PM, 2:00 PM, 6:30 PM • File Upload Cut Off (Via Transmission): 7:00 PM • Exception Viewing Available: 7:45 AM • Exception Response Deadline: 1:00 PM The Bank welcomes the opportunity to discuss Payee Positive Pay services with the City and develop a customized solution to efficiently manage check disbursements and guard against check fraud. 2. Does the bank offer Teller Positive Pay and Payee Positive Pay? Yes. Please see reply to question one for detail. 3. How are the exception items under the Positive Pay reported to the City? What is the procedure and timeline for paying or returning exception items? Checks that do not match the City's file are identified as "Exceptions." and presented to the City in an Exception Report on WebDirect by 7:45 AM PT. Prior to reporting exceptions to the City, a Bank specialist reviews each item to ensure that only legitimate exceptions are included in the final exception report. Using simple drop-down menus in WebDirect, the City makes a "Pay" or "Return" decision by 1:00 PM PT. The Bank provides an image of the exception item to assist in making a decision. If a decision is not made prior to the cut-off time, the default disposition established by the City at the time of account set-up will take effect. 4. How are manual checks issued by the City sent to the bank for inclusion in Positive Pay? Manual (one-off) checks are entered using the Manual Entry function within WebDirect. The same pickup windows apply: 10:00 AM, 12:00 PM, 2:00 PM and 6:30 PM, ¨ PAGE 34 BANKA-eWEST BNP PARIBAS COPY 5. Does the bank provide on-line check Imaging for exception Items? Yes, online images are included with the exception report. 6. Describe the bank's check truncation service. Is on-line check Imaging available for paid Items? Deposit slips? Bank correction advices? WebDirect Transaction and Image Storage The Bank provides a default 90-day archive of images through the online banking platform WebDirect. Images of deposits, disbursement checks and all other paper transactions are available for viewing on our secure internet site. Electronic transactions are also searchable and available on WebDirect for SO-days as a default. (Note: images of electronic transactions are not available because there is no paper item negotiated and therefore no item to scan / capture). Additional transaction and image retention is available for 180 days or one year at an additional cost. 7. Does the bank offer a CD-ROM imaging service? If so, please describe the service and associated costs. ImageExpress The Bank also supplies images of paper transactions through two methods that include longer archiving: 1) ImageExpress CD-ROM Via secure login, the City will have access to images of paid checks and monthly bank statements. Multiple copies of each CD can be delivered to multiple locations and each disc can hold up to 10,000 images. Search Function: The City can search the CD-ROM using various criteria including: serial number, account number, dollar amount or date paid. Once the desired image is located, the City can print a copy of the image if desired. The CD is mailed within three to five days after month-end cut-off. 21 ImageExpress Online Access an online archive of check images within 24 hours of payment. The online site is available 24/7 and is accessible by secure login and password. The City can also use this service to research deposits and view transactions included in the deposits. ImageExpress Online service archives images for seven years starting from the beginning date of service. 8. Describe the bank's on-line stop payment, void, and cancellation services and features. How long is a stop payment effective via any method available? WebDirect's Stop Payment module can be used to place a stop on a single check or a range of checks. The system performs an automatic check history from an inventory of 90 days paid check history. If the check has not been paid within the last 90 days, a stop payment will be placed in real time. The City can select a six or 12-month term for online stop payments. Stop payments placed via phone through Customer Service have a 13-month term. Account Reconciliation clients can submit Void or Cancel requests online or via direct transmission in lieu of a stop payment. If the voided/canceled check is presented, it will be included as an exception item through the Positive Pay system for a pay / return decision. 9. Describe how long online Images are available for display and what type of Images are available. WebDirect provides a default 90 day history with 180 or 365 days available at an additional cost. All paper based transactions are available including paid checks, returned deposited items, deposit tickets and deposited items. ¨ PAGE 35 BANKA'eWEST BNP PARIBAS COPY Tab O Daylight Overdraft Protection The City currently requires daylight overdraft protection. Sweep account services are currently not used but may be included in the response if upon evaluation of services needs there is a benefit to resume using this service. The City currently maintains an average of $1,000,000 in the bank and has both LAtF and CAMP accounts for liquidity purposes. 1. Describe any issues, concerns, and charges associated with the use of daylight overdraft facility. A daylight overdraft (same-day) occurs when a debit transaction such as an outgoing wire transfer exceeds the collected funds in an account prior to receipt of an incoming wire, ACH credit or other memo-posted transaction. The Bank credits incoming ACH, wires and other settlements throughout the day in order to minimize the occurrence of a daylight overdraft. The Bank can establish both ACH and daylight overdraft limits in conjunction with the past, present and anticipated funding needs of the City, including historic wire transfer and ACH activity. These facilities are underwritten by the Bank's Public Finance Department. This credit facility is subject to the Bank's approval and will be reviewed on an annual basis. There are no fees associated with the daylight overdraft line or its use. 2. Will the bank guarantee payment of all the items even If It results in the account being overdrawn temporarily for the day? The Bank cannot guarantee that ail items drawn on the City's account will be paid regardless of the funding account balance. In the event an item exceeds the available account balance and the established overdraft line, the Bank will contact the City in an effort to understand the circumstances and decision the payment. These safeguards are in place to protect the City and the Bank. Good communication between the Bank and the City are critical to ensuring all items are paid as intended and fraud risk is mitigated. ¨ PAGE 36 BANKA^WEST BNP PARIBAS COPY Tab P Merchant Bankcard The City currently accepts Visa and MasterCard credit card payments approximating $62,000.00 In collections per month, with transactions averaging at approximately 500 per month. The City currently has three (3) merchant locations or I.D.s accepting payment for the City for services. The City prefers a single point of contact for technical Issues, configuration changes, upgrades, maintenance, and troubleshooting for any merchant bankcard issues. Current payments received are for business licenses, permits, construction permits, wellnesses center classes and membership dues, merchandise from the museum gift shop. The City does not collect any form of utility payments. Current credit card terminals utilize EMV chip reader technology and are compatible with Canadian license exempt RSS Standards, and are part 15 of the FCC rules. Elavon agrees to the terms, conditions and specifications of the City of La Quinta provided that the parties also execute Elavon's Company Application and Terms of Service and applicable schedules, copies of which are submitted herewith (the "Agreement"}. The Payment Networks require that Elavon enter into agreements with its customers containing specific provisions mandated by the Payment Network Regulations, which provisions are not included in the RFP. Therefore, in the event that Elavon is the successful bidder, Elavon wilt require that the parties include the terms of the Agreement, in substantially the same form as submitted herewith, in the final contract and will, in good faith, work and negotiate with the requestor toward a resolution of all conflicting items. In certain instances Elavon may, through its various sales channels, submit more than one response to this RFP. While Elavon's exceptions to the legal terms and conditions of the RFP may be similar, the remainder of the bid and pricing issues will differ due to the independent responses prepared by each sales channel. 1. Please describe the bank's Merchant Bankcard and Polnt-of-Sale processing capabilities. Since 1993, Elavon has teamed with Bank of the West as its exclusive provider to meet its clients' payment processing needs. Elavon has been providing merchant services to the public sector for over 20 years. We are also one of the few processors within the industry that performs most bankcard processing functions in- house and owns our own platforms, We choose to not use third-party processing vendors for these key functions so we have direct control of these critical processes and minimize outside risk, which translates into better service and reliability for our clients. We handle every aspect of the acquiring relationship—transaction processing, risk and underwriting, settlement, equipment deployment, chargeback management, reporting and customer service. • All bankcard interchange and settlement processing • Exception item handling (i.e., retrieval requests and chargebacks) • Accounting and billing • Reporting and statement production • New card acceptor implementations and training • Customer service Here are a few highlights of our services: • ELAVON'S GOVERNMENT AND PUBLIC SECTOR group offers a powerful suite of payment solutions to the public sector which we are happy to discuss • SECURITY Elavon adheres to the strictest PCI and security standards, making cardholder data protection a key priority; our solutions support the latest security technologies • EMV, ENCRYPTION, TOKENIZATION As experts in payment security we provide safe and compliant solutions along with knowledgeable guidance to help you manage financial risk. Our seasoned team will engage in a collaborative dialogue to deliver an economical suite of products and services for both your front counter and Internet payment needs. STABILITY: Our core processing platform is built on proven, dependable and redundant Stratus switch technology that delivers maximum uptime. ¨ PAGE 37 BANKt^h-eWEST BNP PARIBAS COPY • DEDICATED Experienced employees deliver credit and debit card products, services and support with an accuracy and clarity that is second to none in the retail payments processing industry. Our dedicated, knowledgeable 24-hour Customer Service team is able to answer any questions you may have regarding your processing. • SAME DAY FUNDING Customers depositing into a bank of the West checking account and processing on Elavon's network typically receive same day business funding via ACH for Visa, MasterCard and Discover provided the batch settlement is completed and received by Elavon before 7;00PM (Pacific Standard Time). Some of our processing services include: Visa® MasterCard® American Express® Discover* Credit Cards | Debit Cards Visa, MasterCard Utility Card Program Convenience Fee | Service Fee Programs E-commerce Gateway Solutions Token ization Encryption EMV Ready Credit Card / Debit Card Terminals Converge Converge 8t a Elavon's Converge product is our flexible, secure payment solution designed to grow with your business. Using a variety of payment choices to include: online, mail order] telephone order, face-to-face or mobile transactions. Converge is the Next Generation platform for your commerce experience. Simple, yet robust • Supports all payment environments whether in-person or when card is not physically present, including e- commerce • Offers full range of payment options - credit and debit cards, ACH and more • Allows up to 5,000 users / merchant IDs to grow with your business Security that Matters • Supports EMV technology on PIN pads reducing fraud risks for your business and your customers • Minimizes stored data liability and reduces your PCI compliance efforts • Support encryption and tokenization • Available security features help protect your customers' data throughout the payment lifecycle Efficient and Cost Effective • Fully hosted, requires no hardware / software • Keeps upfront costs manageable by taking payments online directly from your PC • Easily add payment environments as your business needs evolve • Cost-effective peripherals are available to process in-person payments with ease ¨ PAGE 38 BANKt^h'eWEST BMP PARIBAS COPY E«COMM6RCE Converge Mobile is another optional feature of Converge which is our secure, complete payment solution that transforms mobile devices into terminals. You can accept key-entered transactions or swiped transactions with the addition of our card reader that encrypts card data at the time of swipe to ensure security. 2. Please describe your reporting methodology and how adjustments and charge backs and other debit adjustments are netted from daily proceeds or debited from dally proceeds or debited separately? Is the discount fee refunded when a charge back or refund occurs? What Is the rebuttal process? Elavon understands that excessive chargebacks can have a dramatic Impact on your bottom line. They create a tremendous amount of back-office work and result in significant fees. Elavon provides the experience and insight to help you keep chargebacks under control. We have an experienced Chargeback Department team that handles all cardholder-merchant disputes Including retrieval requests using a proprietary Automated Dispute Resolution Processing (ADRP) system. • Our customers have the option of selecting separate checking accounts for chargebacks and adjustments. Chargebacks are debited/credited from/to our customer when the Item is received by Visa/MasterCard and processed by Elavon's Automated Disputes Resolution Processing system. • Credits may be initiated by our customer at any time and will be processed upon receipt by Elavon. Funds would be debited from a processing account. • The discount fees are not able to be refunded as per the Card Associations. • If you believe any adjustments are required, you should notify Elavon immediately and no more than forty-five (45) days from the date of the monthly statement. Failure to notify Elavon promptly could affect any ability to recover funds and correct inaccuracies on your behalf. • Elavon does charge a fee for chargebacks (see Schedule), fees are charged per incident. • In the event that debits to any of the accounts reject, Elavon reserves the right to net items from daily transaction proceeds. Elavon's Online optional product called - Case Management (OCM) allows you to easily receive, view, respond to and manage all your chargeback and retrieval activity through this optional service available with our Payments Insider reporting tool. With the advanced technology of our OCM solution, you have the flexibility to direct how cases are handled, dynamically manage workflow and streamline responses. OCM is a comprehensive workflow management solution that allows you to prioritize and manage case activity. • Online reporting tool that monitors chargebacks/retrievals • Receive, view, respond and manage activity • Notifications within 24 hours 3. When and how will the City receive funds for each da/s transactions? Is the settlement by ACH or Fed wire? Are settlement amounts listed separately on the bank statement or will they appear In one lump sum? Will the bank break out settlement amounts by merchant location? Customers depositing into a Bank of the West DDA (checking account) and processing on our Elavon network typically receive same business day funding via ACH for Visa, MasterCard, and Discover provided batch settlement Is completed before 7;00PM (Pacific Standard Time). ¨ PAGE 39 BANKA-kWEST BNP PARIBAS COPY Deposits are shown separately on your cash management reports. However, this is dependent upon your depositor bank's reporting capabilities. Weekends and federal banking holidays will impact funding times. Saturday and Sunday batch settlement will typically be deposited on Monday as separate deposits. If a federal holiday lands on a weekday, typically funds will be deposited to the PDA the following business day. American Express will be handled according to the contract the client has in place however Elavon is an approved settlement and billing provider of American Express (i.e., the authorization, processing, and settlement performed through Elavon). 4. What Is the cutoff time for card transactions? Should the City be interested in receiving same day funding, settled batches need to be received by Elavon prior to 7PM PST and processed on our Elavon network. The City may opt to settle at any time that best meets their needs and if after 7:00 PM PST the City would typically receive next-day funding. 5. The City has three (3) credit card terminals with third party vendor settlements (Ingenico brand with chip reader technology). Can the bank supply the City with additional terminals If needed? Does the bank have a preferred credit card third party vendor for daily settlements? Elavon has a variety of EMV equipment, Ingenico being one of those terminal types with options to purchase or lease equipment. We will be happy to discuss the Cities equipment needs should we be considered as a fmalist. 6. Is the bankcard relationship managed by a separate unit of the bank, or by the Account Relationship Manager? Please briefly describe the structure of this area. Elavon, the Bank's merchant service partner will manage the merchant service relationship. Elavon's customer service organization is multi-faceted as described below. Mary Fladland Regional Sales Manager Elavon | Government Public Sector Phone: 425-210-9606 marv.fiadland@elavon.com Mary Fladland, Elavon's Regional Sales Manager for the Government and Public Sector has over 15 years of payments industry experience in leadership positions managing national account portfolios, relationship migrations and integration processes for card payment solutions. Mary works with Government and Institution Public Sector clients providing payment processing solutions. Mary will function as the point person for all activity associated with Elavon, including payment service design, pricing and contract process. A Customer Account Manager will also be assigned to you and is responsible for the overall high level management. CAM's provide consultative service, develop relationships and add overall value to our relationship with customers. Over the long term, your Customer Account Manager is responsible for evaluating your needs and carefully mapping them to present and future Elavon products and services, to ensure that your objectives are met and your satisfaction is complete. We will name a specific Implementation Customer Account Manager later in the process. For routine daily services, Elavon operates a call center for customer assistance supported by a dedicated and well- trained staff of service professionals and is available 24 hours a day, seven days a week. ¨ PAGE 40 BANKt^h-eWEST BNP PARIBAS COPY 7. When and how are the discount rate fees charged to the City? Can this fee be paid through analysis? Is tiered pricing available? Interchange pass-through models remain the most transparent method of merchant services pricing. The Elavon processing fee does not vary by card type and simply floats above the Visa/MC and Discover published interchange rates, dues and assessments for each given qualification category. We are able to offer a tiered rate structure and would be happy to discuss the (2) different pricing options. 8. Is reporting Information available online? What is the fee associated with this service? Is a "corporate level" view available to see all the merchant accounts? MerchantConnect I Payments insider, our most comprehensive and versatile reporting solution, offers a real time view of transaction data. You can access a year's worth of reporting (2 years for chargeback and retrieval) information on multiple MIDs and "drill down" into your data to view batches of transactions grouped by card type or batch reference number. Hierarchical reporting allows you to aggregate data from multiple locations. The Payments Insider tool reports that are typically available: • Authorization reports - Approximately one hour after transaction Is processed • Settled Transaction Data - Two to four hours after settlement • Qualification Data - 24 hours after settlement • Statements - Third business day of the month Billing Statements Our billing statements are available online for up to 13 months for premium users. They are designed to facilitate ease in the reconciliation of transactions and to provide management reporting information. We offer a variety of statement types, each containing varying levels of detail: • The Chain Merchant Summary statement is used by companies with many locations. This report combines several current chain reports into one chain summary report and provides summaries of total fees paid by the chain, as well as for each chain location. a. Customer recaps are month-to-date and year-to-date data. b. Customer locations are sorted by store number, if that information is provided. c. The deposit section of the statement includes batch numbers and all card types. This section displays the amount deposited by Elavon and by other card organizations. In addition, the customer may select further deposit detail by card type (Visa* MasterCard*, and Discover® etc.) The fee sections break out fees for Visa/MasterCard, Discover, etc., chargebacks, the payment device, debits and other fees. Fee information is organized in an easy-to- understand format. d. Statements can be delivered by mail or electronically. See Schedule A for pricing. 9. What network will be used for front-end and back-end operations? Elavon owns its own platform; however, it is important to discuss this further to ensure we are providing the most accurate information to the City. 10. Please explain your rate increase policies. Can the rates be fixed for any period of time during the Cit/s contract? Interchange levels and Assessments determined by Visa, MasterCard and Discover and are subject to change by the Acquirers, Any changes, increases or decreases would be passed on to your organization typically following statement notifications. Should we be considered a finalist we will discuss the areas where rates might be fixed and how it may impact the duration of the contract. ¨ PAGE 41 BANKt^h-eWEST BNP PARIBAS COPY 11. What payment gateway platforms are accepted or provided? Elavon is certified to over 300 different VARS, Gateways, middleware and POS Systems. Elavon's Converge product Is a multi-faceted product offering an array of processing options which we are happy to discuss in greater detail to determine how it may meet the City's needs. 12. The following pertains to the associated discount rate and other applicable charges. Please provide the following: a. Visa Authorization Fee - b. MasterCard Authorization Fee - Visa, MasterCard and Discover Credit | Debit card fees - see Schedule A. (Interchange, dues and assessments plus an Elavon fee of - 0.25% + $0.05 authorization fee). c. Monthly Service Fee - See Schedule A. d. Monthly Statement Fee - Mailed monthly statements @ $10 per | Basic Online Statements - FREE e. Please list any and all other applicable fees that the City would be charged. See Schedule A f. List any other credit cards accepted (Discover, American Express, etc.) and provide information answering the questions in this section for such other services Pricing - Interchange pass-through models remain the most transparent method of merchant services pricing. The Elavon processing fee does not vary by card type and simply floats above the Visa/MC and Discover published interchange rates, dues and assessments for each given qualification category. Elavon's pricing is dependent upon interchange and other fees imposed on all credit card processors by Visa, MasterCard and other third parties Visa / MasterCard / Discover: IC-«-D-i-A+ 0.25% + $0.05 per transaction. IC = Interchange, D = dues, A = assessments American Express Card Fees would need to be negotiated between your organization and American Express. Elavon would transmit the card data to American Express to be processed by American Express. American Express: $0.10 per transaction Pin Debit: Debit Interchange, network assessments, switch fees + $0.25 per transaction Pin Debit Monthly Fee - $5 (per mid) ** It will be important to discuss this item and determine if Pin Debit is applicable for the City.** Schedule A Visa/MasterCard/Discover Interchange Fees Interchange Card Level PASS THROUGH Association Fees | Assessments PASS THROUGH Other Fees VISA/MasterCard/Discover Processing Fee 0.250% VISA/MasterCard/Discover Per Transaction Fee $0.05 cents per American Express Fee, (settlement)$0.10 / per transaction Foreign Network Fees, (onlv, if appiicabte)$0.04 - $0.07 /per transaction Pin Debit Fees - Network, assessments, switch fees *$0.25 cents $5 monthly fee Voice Operator/AVSFee/ARU (only If, utilized) '$0.85 per authorization Monthly MID Processing Fee Minimum (per mid)*$25 One-Time Application Fee, $100 per mid $100 per Chargeback Fees (only when occurs)$20 per Return NSF Item Fees (only when occurs)$20 per Supplies (purchased thru a 3'^ party, pricing varies)Varies Paper Merchant Statement fees, (only, if desired)$10/monthly On-line Basic Payment insider Merchant Statements FREE BANKA'eWEST BNP PARIBAS ¨ PAGE 42 COPY AR integration / direct certification to network, (only, if needed)Fee may vary upon application PCI Monthly Fee - Choice of Basic or Plus ** Per MID $10 Basic or $15 Plus PCI Non Compliance Fee***$60/monthly Equipment (EMV) Terminal Types Offered - (to be discussed) Equipment / Software - (more options to be discussed) Converge $499 purchase + $10 monthly Tokenization, (if desired)$0.07/per transaction Reporting Tool Options - (more options available) Web reporting tool (Premium 1-5 users) (if, desired)$15/monthly Web reporting tool with OCM (Premium 1-5 users) (if, desired)$25/monthly ••Not all equipment, products and pricing are represented here. Other options are available and may be discussed if selected as a finalist.•• Pricing Provisions: 1. Pricing implies that all hardware and software is certified to Elavon's network / platform. If another Payment Provider Network (PPN) is necessary to authorize and settle transactions; we will pass through any additional fees. Fees vary by specific "PPN." 2. American Express transactions are submitted directly to American Express for processing, payment and settlement. 3. Rate qualifications require compliance with Discover, Visa and MasterCard Interchange requirements, including settlement within 24 hours of authorization, 4. Processing fees may be adjusted from time to time to reflect and correspond to increases or decreases in applicable Discover, Visa and MasterCard Interchange, Assessments and Debit Network Fees. Additional Comments 1. 'If the Elavon processing fees do not reach $25, we will assess a minimum processing cost of $25. ••There are (2) PCI options to choose from, PCI Basic or PCI Plus. The option the City selects will determine the level of assistance the City will receive. PCI basic offers monetary coverage up to lOOK in forensic / investigation cost and PCI Plus provides up to 250K in forensic / investigation cost. These levels of coverage are determined and dependent on the Attestation of the City of La Quinta regarding its PCI Compliance. We will be happy to discuss both options. ••• This fee is only assessed if the City of La Quinta has not provided its required PCI SAQ (Self-Assessment Questionnaire) within 90 days of MID issuance. Discover, MasterCard and Visa Interchange, and Assessments, pricing are dependent upon interchange and other fees imposed on all Associations members and other Acquirers. Elavon will pass through increases or decreases of these fees imposed by the Association members upon written notice. 2. 3. Elavon agrees to offer the pricing herein for 180 days. If requestor wishes to add products or services at the conclusion of the bid process, Elavon will submit a new Schedule of Fees and any additional Schedules for such services, if applicable. BANKA^eWEST BNP PARIBAS ¨ PAGE 43 COPY Tab Q Purchasing Card The City currently has a purchasing card program In place for employees to make various types of purchases and incur expenses for City-related business. The approximate annual spend of the program is estimated at $1,000,000 with an average transaction size of $5,000 and 5 to 10 cards being issued. Online monitoring and administrative management Is preferred. 1. Does the bank offer a purchasing card service? If so, please describe the service. Flexible, Cost Effective Purchasing Power The City can take advantage of Bank of the West's Commercial Card Program, one of the fastest growing e- commerce solutions today. Corporofe Cards Corporate Cards provide convenience, cost and time savings for the management of expenses related to travel entertainment and ancillary business expenses. You maintain transaction control by establishing individual spending limits, types of allowable purchases and management oversight using customized reports. Tracking of spending Is facilitated through clear billing statements and reports - which can be segregated individually, by department or consolidated for the entire company. Purchasing Cards Purchasing cards replace the traditional accounts payable check and petty cash promoting the automation of procurement. Like Corporate Cards, there are a number of controls to safeguard the use of company funds. Through Internet-based reporting, purchases are easily reconciled, automatically allocated to various cost centers, departments or GL Accounts and automatically extracted through a detailed and customized transaction data interface. The Bank of the West Credit Card Program Is designed to combine functionality of both Corporate and Purchasing Cards. Card Features MasterCard acceptance at over 44 million merchant locations globally Purchasing controls may be set by the Company Each Program Administrator can manage the program to fit the particular needs of their company, division, business unit and employees Cardholders can be restricted in their usage through Merchant Category Code restrictions Velocity controls, i.e. transaction restrictions by Day, Week. Month or by Transaction Single Purchase limits. I.e. transaction restrictions based on amount Virtual Card Numbers are available using Purchase Control Chip and PIN cards for International travelers Insurance Coverage At no cost. Bank of the West offers the following Insurance and assistance programs to cardholders: Automatic Travel Accident Insurance: $100,000 in common carrier travel accident Insurance Car Rental Insurance (Collision Damage Waiver} Purchase Assurance (replacement for loss or damaged goods purchased within 90 days) Extended Warranty (double the manufacturer's warranty up to one year) Emergency Card Replacement Emergency Cash Advances Emergency Message Relay Service Medical and Referral Assistance Legal Referral Assistance Emergency Transportation Assistance Emergency Ticket Replacement Assistance ¨ PAGE 44 BANKt^h-eWEST BNP PARIBAS COPY Lost luggage Locator Service Emergency Translation Service Prescription Assistance and Valuable Document Delivery Arrangements Pre-Trip Assistance MasterCoverage Liability Waiver program (up to $100,000 per employee) Customer Sen/ice Your assigned Account Manager, will serve as the senior point of contact for your organization. This individual will manage the relationship from a day-to-day perspective for any issues that require consultative support, technical support or escalation. Once installation is completed, this person will provide continued senior-level support throughout the life of the program with primary support including: • Sharing industry benchmarks and best practices so your program can receive the benefit of global processes improvement. • Serving as the primary point of contact for any communications, outstanding issues or process integration needs. • Introducing additional features that can add further value to your program and provide unique customization. • Managing all ongoing training, service requests and projects. • Reviewing/measuring program growth year after year; ensuring a clearly defined purchasing card strategy in alignment with the overall company objectives and initiatives and identifying additional opportunities for purchasing card payment. • Defining a strong supplier strategy A dedicated customer service officer will be assigned at the onset of your program for implementation and this person may be contacted as well as their back-up through our toll-free number. Your officer will be responsible for accurate and timely processing of new card and maintenance requests and responding to general customer inquiries. PROCUREMENT/VENDOR PAYMENTS Bank of the West ePayables is a virtual card payment solution that saves time, increases efficiency and control, and reduces fraud risks substantially through the automation of vendor payments. Vendors receive a secure email remittance with payment and virtual card information so that payments are received quickly and securely. Minimum annual qualified projected spend to qualify is $5MM. Bank of the West Differentiators File Customization - The Bank will accept payment data in any format. There are no specific file requirements as long as the necessary payment information is included. The Bank will translate your file into the necessary card network format Vendor Optimization and Enrollment - The Bank will enroll the highest number of vendors possible through an extensive calling campaign. Virtual card Numbers (VCN's) - VCN's offer exact pay technology, so that your vendor can only charge an approved amount to ensure easy reconciliation. Maximize Working Capital Bank of the West offers multiple payment cycles to fit City of La Quinta's needs, providing extra float through longer cycles (up to 55 days). ¨ PAGE 45 BANKr^'kWEST BNP PARIBAS COPY T&E/Corporate Cards Corporate Cards provide convenience, cost and time savings for the management of expenses related to travel and ancillary business expenses. You maintain transaction control by establishing individual spending limits, types of allowable purchases and management oversight using customized reports. Tracking of spending is facilitated through clear billing statements and reports - which can be segregated individually or by department, Bank of the West will provide City of La Quinta with an automated expense reporting tool at no cost. This tool will allow cardholders to generate an expense report and route to their manager for approval. Once approved, the report can be exported to your financial systems. All card transactions will be loaded on a daily basis to the tool. Cardholders can also attach receipts and add out of pocket expenses. This internet based tool is accessible via mobile devices. Online Account Management Bank of the West offers a robust online Account Management system called CentreSuite. This internet based system offers full cardholder transaction access, online statements, online payments and management information reporting. CentreSuite also offers the ability to set spend alerts, adjust card limits, order / cancel cards and maintain cardholder information in real time. The Centre Suite modules include the following: • The Account Management Module • The Expense Management Module • The Statement Management Module • The Report Management Module Implementation and Account Servicing A dedicated Implementation Manager will be assigned. Implementation will remain engaged throughout the program set-up. They can also be re-engaged in the future if needed. Ongoing support will be provided by a client Service Representative as well as a Senior Account Manager assigned to your card relationship. Your Service Representative always has a backup available who will be familiar with your account. Your Commercial Card Senior Account Manager is responsible for managing your relationship including the development and execution of strategies by growing existing product volume or cross-selling existing clients on additional commercial card products. Bank of the West Advantages • Unsurpassed acceptance with over 49 million merchants worldwide. Provides opportunity for a larger program to maximize rebate and process savings • Competitive financial incentives to maximize rebate earning potential • Greater earning potential on large transactions • Standard payment terms are 30/25, which means a 30-day billing cycle with payment due 25 days after billing cycle close Includes: No fee commercial card program CentreSuite Real-Time Reporting and Expense Reporting 30 day cycle, 25 day payment terms Implementation support and assigned Account Manager 24/7 toll free cardholder customer support Large Ticket pricing of .50% Rebate Tiers ¨ PAGE 46 BANKA'eWEST BNP PARIBAS COPY ANNUAL VOLUME REBATES REBATES Minimum Maximum 30/14 30/25 S S 999,999 0.00% 1,000,000 $ 2,499,999 1.30%1.20% 2,500,000 $ 4,999,999 1.31%1.25% 5,000,000 $ 7,499,999 1.35%1.29% 7,500,000 S 9,999,999 1.39%1.33% 10,000,000 $ 14,999,999 1 1,42%1.36% 15,000,000 $ 19,999,999 1.46%1.40% 20,000,000 and over 1.49%1.43% ^ SUBJECT TO CREDIT APPROVAL -30/25 means monthly billing cycle with 2S-days grace period (payment due 25 days after cycle date) -Rebate rate effective from dollar one ($1) 2. Please detail all of the fees associated with the service and/or any rebate available with the program. Rebates start at IMM/year, Please refer to question one for detail of rebate. Annual Account Fees* - please check your choice(s) Corporate Cards - Merchant Category Codes (MCC) restrictions NOT available Purchasing and Fleet Cards - Merchant Category Codes (MCC) restrictions available (card design may be different from the illustration but will indicate card type on card} KANK.^VItlSI ».4< tJ ---- $30.00 (Waived if annual Net Purchasing Volume is >$240,000) $45.00 (Waived if annual Net Purchasing Volume is > $720,000) Billing - please check your choice(s} Corporate Billing Individual Billing Late payment fee (if the Amount Due printed on the periodic billing statement is not paid in full by the Payment Due Date) $25.00 Fraud protection per card $0.00 ATM fees - Domestic $1.00 per withdrawal $2.50 per withdrawalATM fees - International Foreign Transaction Fee International Transaction Fee (Visa/Mastercard Fees) 1.5% 1.0% Finance Charge - Purchase (if the Amount Due printed on the periodic billing statement is not paid in full by the Payment Due Date) Prime + 4.99% (Corporate Billing) Prime + 6.99% (Individual Billing) Finance Charge - Cash Advance 18% Emergency Card Replacement (24 hour service)** Emergency Cash Advance** Domestic Fee; $125.00 International: $165.00 ¨ PAGE 47 BANKt°h^eWEST BNP PARIBAS COPY NSF Payment Fee $15.00 per returned payment Over-the-credit-limit Fee $25.00 Copy of Sales Draft $2.00 per sales draft Copy of Statement $8.00 per statement Logo Card Setup Fee (monochrome logo on standard design)$300.00 per design Custom File Interface Setup Fee**$l,500.00/per data feed*** Monthly Data File Transmission Fee**$10a.00/perdata feed*** New and Replacement Card Fees $0.00 (standard mail) $20.00 per card (overnight) •Annual Account Fee. The Company agrees to pay an annual account fee for establishing and maintaining an account (e.g.. Card account, Company account) issued on behalf of the Company. Fees are always waived the first year. This fee is payable on the anniversary date of account issuance and annually thereafter. •• Mastercard ONLY *** Program Maintenance and Transactions Fees to be waived when average monthly Net Purchasing Volume exceeds $200,000.00 and the average transaction size exceeds $125.00. 3. How often are the statements and reports remitted to the City? Is the reporting available on line? Statements and reports are remitted monthly. Yes, reporting is available online. 4. Is there an interface available to download cardholder purchase information, either in an Excel format or directly to the City's accounting system? Yes. 5. Do you provide an online application to review/approve procurement card transactions and to manage other aspects of the program? We provide expense reporting and approval workflow online if desired. Minimum annual volume is $1MM. Virtual Card online requests are available for $lMM/ye3r minimum volume as well. Please also refer to question one. 6. Identify how fraud protection Is identified, prevented, and monitored. Fraud monitoring and fraud alerts via phone / email / text to help flag suspicious transactions in an automated environment. 7. Describe if credit cards can be managed online? Including requesting additional cards, editing purchasing limits, editing availability of vendors for each card, making online payments, and any other online services available for the management of credit cards. Yes, with the exception of editing availability of vendors for each card. Please also refer to question one. ¨ PAGE 48 BANKt^h'eWEST BNP PARIBAS COPY Tab R City Disaster Preparedness Program 1. Please describe any processes in place to assist the City in the event of a natural disaster. In the event of a disaster situation to power, operational facilities and transportation, the Bank will partner with the City to determine the specific support needed and provide the necessary resources both locally and in our back office support. The Bank has established a Business Continuity Management (BCM) program based on generally accepted industry practices and principles covering critical bank operations. The program is consistent with FFIEC business continuity requirements and is led by an experienced team with full executive and Board support. It addresses the following core elements: • Emergency Response (ER) - Life safety matters and immediate incident response • Crisis Management (CM) - Extended management of incidents and recovery activities • Business Continuity (BC) - Continued operation and restoration of critical business processes • Technology Disaster Recovery (DR) - Continued operation and restoration of critical applications and technology Within each of these core elements, specific strategies have been put in place to bolster the bank's ability to withstand and recover from business disruptions. These strategies include, but are not limited to: • Documented and tested ER, CM, BC and DR plans, deployed at local and regional levels • Geographically dispersed expertise, with remote networking capabilities through high-capacity, redundant VPN access channels, accessible via Internet • A broad set of data backup and system redundancy solutions, including: • A thorough data backup strategy for data center servers including offsite storage • A geographically distant, back-up data center designed to address mission critical applications and core technology services • Periodic application assessment to align system recovery with business needs • Annual testing of key systems • Periodic risk and impact assessments • Local and national Crisis Management Teams In the event of a disaster the Bank will employ Disaster Recovery procedures. The Bank plans to continue operations during and after catastrophic events impacting its marketplace. Bank of the West's current policy is not to discuss, disclose, infer or prepare certain information about disaster / disaster planning that can be used by third parties. As such, below we will describe the Disaster Recovery procedures in as much detail is allowed to protect the security of the Bank. The plan is tested annually and updated as needed by the Bank. in the event of an emergency or disaster, WebOirect can be accessed anywhere you have internet access. Information Reporting: WebDirect, our commercial banking platform internet-based information reporting and transaction initiation product. Is a licensed product securely maintained on servers within the confines of the Bank's service center. WebDirect maintains full redundancy and failover for minor issues. Recovery time objective is four hours in the case of a disaster to reroute access to the backup facility. Wire Transfer: BOW's IntraNet Wire Transfer system is a server-based platform that is fault tolerant. As with WebDirect, a second "mirror" system located at an undisclosed location is kept in synch throughout the processing day. The automated interface between the production wire system and WebDirect also exists on the backup platforms. ¨ PAGE 49 BANKt^/eWEST BNP PARIDAS COPY ACH: Bank of the West's contingency plans for ACH transactions are similar to wire transfer, consisting of mirrored sites. Given sufficient ACH volume, the City may opt to initiate ACH transactions utilizing Direct Send. Direct Send mailboxes are backed up on a daily basis at Bank of the West's mirror sites. Global EBICS: To ensure the availability of the TCPJP based communication technique EBICS, the internet access will be realized via two separate web-accounts, being routed via two separate entries to the server of the data processing center and linked to the existing infrastructure via two redundant systems. A multilevel firewall-system secures the Banking Communication Server (BCS) bank system via the internet as well as other systems in the data processing center. The firewall-systems in use are redundant and operated in the hot standby procedure. Any case of disruption will lead to an automatic switch of the system into standby mode. ¨ PAGE 50 BANKt°h^.WEST BNP PARIBAS COPY Tab S Implementation Plan As part of any conversion, the City requires an efficient transition to the new bank or to enhanced services with its existing bank. 1. Please describe the overall plan the bank would coordinate to ensure such a conversion. Achieving a well-managed, seamless transition to the Bank is a key element of our approach to serving the City. The Bank's implementation process relies on structured but flexible project management methodology. Our approach is intended to clearly define a plan along a timeline, foster cooperation between organizations and monitor and report progress. The first step in the process is to schedule an implementation-planning meeting with the City to discuss and strategize the conversion process. The Bank and the City will discuss expectations, resource requirements, and task responsibility. From this meeting a formal Implementation Plan will be developed and will serve as a working document for both parties. The Bank and the City will establish a schedule for implementation update meetings. The updates will be conducted via conference call in most cases unless otherwise agreed upon. The purpose of the update calls is: n Identify information required to proceed with the implementation n Monitor project progress n Enable project team members to share information and seek guidance from the implementation project manager n Solicit input and assistance as needed n Answer any questions the City may have Our goal is to keep the City informed and involved throughout the process to ensure that your needs are fully met. When the City becomes a client of Bank of the West, you can expect: n To receive recommendations focused on your goals and needs because our financial solutions are strategically customized for the City • To experience a relationship-driven culture and team servicing approach committed to providing you superior customer service n A full suite of banking solutions to meet the needs of the City 2. Please detail all costs and the responsible party (bank or City) associated with the conversion of all new services. In an effort to minimize the cost to the City related to conversion, the Bank will waive the first three months' analysis fees with initial supply orders to be included. Third party vendor fees such as Elavon are not included In this waiver. 3. What size conversion allowance will the bank provide to the City? Please state a specific dollar amount or Identify those supplies, products, or services included. Bank of the West will provide the City with a three (3) month Implementation waiver to cover all set-up costs and an initial supply order (Check Stock, Deposit Tickets, Deposit Bags & Endorsement stamps) during this period. This equates to a value of up to $4,400. ¨ PAGE 51 BANKt^h-eWEST BNP PARiBAS COPY 4. Will the bank provide on-site training for City personnel for all the services selected? How is the training typically structured? Implementation services will be led by a dedicated implementation specialist, with additional assistance provided by your cash management team members. The implementation specialist is responsible for ensuring that the entire implementation process runs according to our agreed upon plan. Additionally, the Bank will provide comprehensive training for all systems and processes. Typically, training sessions are hosted via live webinar, presented by one of our seasoned product specialists. Your Relationship Manager and Cash Management Consultant will join the training onsite, as necessary, to provide in- person support and one-on-one assistance. We appreciate these opportunities to get to get to know your staff and better understand your operations. Most implementation tasks can be accomplished concurrently to facilitate a timely conversion process. Once the implementation process is complete, you will be introduced to your dedicated customer service management team for on-going daily support. Additional training after the initial implementation will be provided for new or existing employees needing a "refresher." Additional training will also be provided for new or upgraded systems and products. 5. The target implementation date Is July 1,2019. The Bank is typically able to complete account opening and service conversion within 30-45 days of receipt of signed agreements. This timeframe can be affected by the complexity of services requested and connectivity testing. ¨ PAGE 52 BANKt^h-^WEST BNP PARIBAS COPY Tab T Service Enhancements Based on the information provided in the RFP and your firm's knowledge of the public sector, please describe any services or technological enhancements, not previously mentioned, that should be considered for further improving effectiveness of the City's treasury management operations. CASH MANAGEMENT SERVICES Our Cash Management Consultant can analyze the City's unique situation and will work to create solutions to enhance and streamline the City's banking procedures. Following are some of the process improvement ideas to consider. Our relationship management philosophy is to communicate and meet with our clients annually or quarterly to perform a relationship review. The purpose of this meeting is to review the existing services you are using and discuss product enhancements and new product development and to ensure that we are meeting your product and service expectations. Our goal is to position you to capitalize on new opportunities as they arise. The Bank understands the challenges faced by public agencies today. Our Cash Management Consultant will analyze the City's operating environment and will work with you to provide solutions that will enhance, streamline and optimize the efficiency of the City's banking procedures, while containing costs. Our implementation goal is to successfully convert the City quickly and efficiently with a minimum level of disruption to existing processes. PUBLIC FINANCE The Bank of the West Public Finance Department is a major provider of credit facilities in the form of letters of credit, private placements, direct purchase facilities, lines of credit and funded loans and leases to municipal borrowers. Our team has a combined forty years of experience in providing these facilities to local government agencies. ¨ PAGE 53 BANKt^h'eWEST BNP PARIBAS COPY Tab U Banking Services Bid Form Complete the Bid Form with pricing information. Please refer to the following pages for a completed Bid Form. ¨ PAGE 54 BANKt°h^eWEST BNP PARIBAS 1 t2^S3 P^timateqaWonthtv^U^ ^VolumaiE1^3 tTot^ i-' alance & Compensation Information Services Deoosit Insurance-Bank Assessment 0.10 3.289.16 $ 328.92 $ 3.946.99 General Account Services Account Maintenance 7.00 3.00 $ 21.00 $ 252.00 ZBA Deoositorv + Master Maint 8.00 1.00 $8.00 $ 96.00 ZBA Subsidiary Account Maint 8.00 1.00 $ 8.00 S 96.00 Debits Posted-Other -27.00 $$No Charge Credits Posted-Other --$$No Charge Paoer Deoosit Statement Mailed --$$ Depository Services Banking Center Deoosit-CA 0.80 22.00 $17.60 $211.20 Vault Deoosit-CA 1.10 44.00 $ 48.40 $ 580.80 Deo Conditioninq-Surchq-Vault --$$ Curr/Coin DeoyStOO Vault-CA 0.11 666.04 $ 73.26 $ 879.17 Vault Deoosit-Extended Hours-CA N/A $$ CKS Deo Un-Encoded Items 0.05 26.00 $ 1.30 $ 15.60 Retums-Charqeback 2.25 -$$ 3rd Party Courier-Vault N/A -$$Courier bills direct to City Mail Notification-RecelDt-Vault 2.00 -$$ Deoosit Correction-Cash 5.00 -$$ Deoosit Correction-Non Cash 2.00 -$$ Paper Disbursement Services . ARP PPay Maint-No Recon 35.00 1.00 $ 35.00 $ 420.00 ARP Full mo. Maint General Checks Paid Truncated 0.07 327.00 $ 22.89 $ 274.68 NSF Items Paid/Returned 2.25 $$ Payee Positive Pay Maint 55.00 1.00 $ 55.00 $ 660.00 Payee Pos Pay w/o Reconcilement Payee Positive Pay-Issue Match -327.00 $$No Charge Positive Pay Exceotions 0.75 -$$ Stoo Pay Automated-12 months 7.50 -$$ ' RP PPay No Recon Inout Item 0.06 310.00 $ 18.60 S 223.20 D Rom Maintenance -$-$-No Charge 'Image Express Online Flat Rate; all Image Maintenance 40.00 S -$-accounts, all items: 7 vrhlst. Image Retrieval CPO 0.055 1.00 s 0.06 S 0.66 Image via Prev Day Rotg - 90 day hist On Line Image Retrieval CPO 0.055 7.00 s 0.39 $4.62 image via Prev Day Roto - 90 dav hist CD Rom Disk 12.00 1.00 $ 12.00 $ 144.00 CD Rom oer Imaae 0.03 327.00 s 9.81 S 117.72 ARP PosiUve Pay Notif --$$No Charge ARP Issue Posted Notif .-$$No Charge ARP Issue Reed Notif .-$$No Charge ARP PPay Inout File Trans -$$No Charge Paper Disb Recon Services ARP Void Cancel items 0.06 -$$ General ACH Services ACH Monthly Maintenance (wl 30.00 1.00 S 30.00 $ 360.0Q ACH Coroorate On Us Credits 0.05 -$$ ACH Coroorate Off Us Credits 0.05 251.00 $ 12.55 S 150.60 Consumer Credit On Us Credits fwl 0.05 16.00 $0.80 $ 9.60 Consumer Credit Off Us Credits (vA 0.05 -$-$ PC Tax Payment 3.00 -$$ ACH Blocks Auth Instructions 5.00 -$$Account Block ACH Blocks Auth Maintenance 0.75 -$$Maintenance per Filter ACH Blocks Auth Add-Chanoe 2.25 -$$Add/Chanoe oer Filter ACH Debit Received Item (w)0.08 -$-$ ACH Credit Received Item fw)0.08 138.00 $11.04 $132.48 ACH Retum Item iw)2.00 -$$ ACH Inout-Transmlssion (vA 7.50 -$$via transmission; no charge online ACH Delete/Reversal fwl 8.00 -$$oer file ACH Notif of Change iNOCl 2.00 -$$ ACH Ootional Reoorts-Electronic 0.35 -$$ ACH Ootional Reoorts-Fax (w)N/A -$$Online Only - 0.35 each ^CH Ootional Reoorts-Mail fwl N/A -$$Online Only - 0.35 each ' CH Standard Reoorts-Mail (wl N/A -$$Online Only - 0.35 each CH Standard Reoorts-Electronic 0.35 -$$ mCH Standard Reoorts-Fax (vA N/A -$$Online Only - 0.35 each Wire & Other Funds Transfer Svc GP Mthly Maint Basic 10.00 1.00 ll 10.00 1 120.00 1 Online Wire Maint. liEstimatedB ^onthl^U^ i^VQiumeB lectronlcWire Out-Domestic 8.00 2.00 5 16.00 S 192.00 n:.!DOk Credit 0.35 -$-$Book transfer charae Outaoina Wire Confirm Notlf --S $No Charoe Wire Payee Advisina N/A -$$ GPS Confirms .-$$No Charoe Pend Wire ADorova! Notif --$$No Charae Incomina Wire Notif-Emall --$$No Charae GP Cust Mant Temo Storaoe --$-s -No Charge Incomina Domestic Wire 8.00 2.00 $ 16.00 s 192.00 Wire Advice-Phone 15.00 -$$ On Line Information Services Previous Day Account Fee --$$See WebDirect Info Rptq fees below Previous Day Standard Item --$$See WebDirect Info Roto fees below Previous Day Maintenance --$$No Charge Email Notification Schedule --$$No Charoe Online Subscriotion -1.00 $$No Charae Per Imaoe Access 0.055 .$$Imaoe via Prev Dav Roto - 90 day hist Service Enhancements/Other Remote Deoosit Services 45.00 1.00 S 45.00 $ 540.00 Monthly Maint. 1st acct Imaae Cash Letter Deoosits 0.65 21.00 S 13.65 $163.80 RDC per deoosit Totals - Monthly and Annual Fees 815.26,9,783.12 • Other Information Eaminas Credit Rate for Auqust 2018 1.50%-$$ Uncollected Funds Rate (%)015 Prime +2.00%-$$ Overdraft Rate (%\Prime +2.00%-$$ Fixed Pridno Guarantee f# of Years)5.00 -$$ NSF/OD Charoe 1-4 Occurrences 18.00 -$$ NSF/OD Charae 5+ Occurrences 22.00 -$$ Additional RDC Location/DDA Fee 8.00 -$$ RDC Deoosits Processed 0.65 -$-$ RDC Checks Deoosited 0.04 890.00 $35.60 $427.20 ^ - on Customer Check Cashed -2.00 $$ Dreiqn Item Deposited 3.00 2.00 S 6.00 S 72.00 Canadian Items (USD) JebDirect information Reporting Online Setuo&Traininq WAIVED $$No Charae MonUilv Maintenance - Includes 5 accounts 40.00 1.00 $ 40.00 S 480.00 Additional Mo. Maint. 6+ accounts 6.00 $$ Prev Summary Balance Reported Items 1-500 Induded 500.00 $$ Prev Summary Balance Reported Items 501 -1.000 0.08 $$ Prev Summary Balance Reported Items 1.001 +0.06 $$ Prev Detail Items -1-500 Included 500.00 $-$ Prev Detail Items - 500-1.000 0.08 133.00 $ 10.64 $ 127.68 Prev Detail Items n 1.001+0.06 $$ Curr Summary Balance Reported Items 1-500 Induded 500.00 $$ - • Curr Summary Balance Reported Items 501-1.000 0.08 $$ Curr Summary Balance Reported Items 1.001 +0.06 $$ Curr Detail Items -1-500 Induded 500.00 $S Curr Detail Items - 500-1.000 0.08 $$ Curr Detail Items -1.001+0.06 $$ Extended Storaoe -180 Davs foer account)22.00 $$ Extended Storaoe -1 Year foer account)50.00 $-$ Soedal Reports - Analysis Statement 0.35 4.00 $ 1.40 $ 16.80 Soedal Reports - Deoosit Statement 0.35 3.00 $ 1.05 $ 12.60 Special Reports - ACH Reports 0.35 $$ Soedal Reports - Acct Recon Reports 0.35 $$ Check Imaoes viewed 0.06 $$ Stop Payments 16 mo.)5.00 $$ Stop Payments M2 mo.)n 7.50 $$ Stop Payment Cancellation 2.75 $$ Account Level Billino Report 35.00 $$ Online Wire Transfer Book Wire 1.75 $$TransferTo LAIF International Wires 12.00 $$ Incomino Wire Transfers 8.00 $$ 'iicomino Wire Notification bv Fax 8.00 $$ tcomino Wire Notification bv Phone 8.00 $$ iiicomino Wire Notification by Mail 0.75 $$ - - Online ACH Services No charge for file upload Monthly Maintenance 18.00 $$ pEstimlradl lEsti^teillrTotil}jMontHty.Unm ^Volume'm w^nuallCostM Br Transaction 1-1.000 0.08 $$ fK-BrTransaction 1.001-1.000 0.06 $S Returned Item 2.00 $$ ACH Services Direct Inout rrransmlsslon) Setuo Fee (One Time)WAIVED $$No Charae Vendor Inout (Transmission) Setuo Fee (One Time)WAIVED $$No Charae Monthly Maintenance 30.00 $$ Additional Comoanv IDs 30.00 $s Inout PerTransmission 7.50 $$ Transactions Processed - Per Item 0.05 $$ ACH Addenda Character 0.0050 S s Prenote per transaction 0.010 S $ Returned Item 2.00 s s ACH Retum File - oer monUi 75.00 $$ ACH Receiot File - oer month 75.00 $$ Chances /Reversals/Deletions oer File 8.00 $$ Chances/Deletions oer Batch 8.00 s s Batch Reversals 25.00 s s Reiected Debits and Credits 0.35 $$ - n Branch Cash Services Currency Deoosited oer dollar. Branch 0.00140 $$ Coin Deoosited - Loose, oer SI 0.03 $$ Coin Deoosited - Rolls 0.10 $$ Coin Bacs - FRB Standard 2.25 $$ Coin Bacs - Non-FRB Standard 4.00 $$ Non-Standard Baas - Mixed Denomination 10.00 s s Cash Orders 2.50 s $ Coin SuDOlied - ]ndi\ndual Roll 0.10 $$ Coin SuDolied - Standard Box 2.50 $s Currency SuDDlied. oer SI 0.00140 $s Dual Control Deo. Processlnc. oerdeo.0.60 $$ Deoosit Adjustments -2.00 $$ ~ ashlers Checks 4.00 $$ ODV of Paid Check 2.50 $$ If oreicn Item Deoosited - Collection 50.00 $$ Cash VauK Deoosits 1.10 $$ Adiustments 5.00 s $ Curmncv Deoosited oer dollar Standard 0.00110 $s Non-Standard 0.00130 $$ Cash Baa Deoosit Processina Fee 0.25 $$ - • Mixed Baa Deoosit Processina Fee 0.50 $s Coin Deoosited Standard Sorted 2.40 $s Standard Half 2.20 $s Non-Standard - Partial/Mixed 4.70 $$ Subiect to Count 8.50 $$ Rolled Coin 0.85 $$ Cash Orders Automated Touchtone 2.55 s s Non-Electronic 13.00 $s Late/Emeraencv 30.00 $s Touchtone Standlna Order 3.00 s s Standinq 2.00 $s Standing Order Change (oer location)20.00 $s Currennv/Coln SuooHed Currency - Standard 0.00090 s $ Currency - Non-Standard 0.00120 $s Coin Full Box 3.40 s s Coin Half Box 2.25 $$ Coin oer Roll 0.085 s $ Deoosit Receints and Adiustment Notices Adiustment - Electronic 0.85 $$ Receiot - Electronic 0.85 $$ - - '-adiustment - Mailed 2.75 s $ .'.eceiot - Mailed 2.55 $$ /adiustment - Faxed 2.00 $$ Receiot - Faxed 2.00 $$ SuooliesA/endor Billing Ccst+ 15%$$ Per Unit Cost Estimated Monthly Unit Volume Total Monthly Cost Estimated Total Annual Cost Comments esearch (oer hour)30.00 $S correct Packaaino (oer occurance)40.00 S $ TaxDirect Enrollment - One Time 12.00 $$ Account Maintenance - oer change 3.00 $$ Federal Tax Pavment Fee 3.00 $$ State Tax Pavment Fee 3.00 $$ Mailed Receiot Fee 4.00 $$ Fax Receipts 1.50 $$ Quarteriv Reports 9.00 $$ Image Express - CD Rom & Online Online Access (7 year archive)$$ Monthly Maintenance 40.00 $S Image Express Online Flat Rate; all accounts, all items: 7 vr hist. CD Rom 12.00 $$ Per Item 0.03 $$ Additional Copies of CD Rom 5.00 $$ Account Reconcilement Monthly Maintenance - per account 35.00 $$ Data Transmission per issue 0.06 $$ Void - Cancel per Issue 0.06 $$ Output Transmssion per File 6.00 $$ Monthly Max. fDaily Output)75.00 1.00 $ 75.00 S 900.00 Partial Reconcilement Monthly Maintenance 35.00 $$ Checks Paid 0.03 $$ Denosit Reconcilement Monthly Maintenance 35.00 $$ Deposit Processed 0.05 $$ Poaitive Pav Monthly Maintenance 20.00 $$ Exception Item 0.75 $$ Pavee Positive Pav lonUily Maintenance 55.00 S $ xception Item 0.75 $$ Check Return 3.00 $$ ACH Positive Pay • Debit Block / Filter Setup and training - ore time fee WAIVED $$No Charge ACH Positive Pav • Monthly Maintenance 20.00 1.00 S 20.00 $ 240.00 Exception Item 1.25 $$ Block Monthly Maintenance per account 5 00 $$ EPA Debit Filter (Setup/Modify)2.25 $$ Filter Monthly Maintenance 0.75 $$ Investment Sweeps Repo Monthly Maintenance 55.00 $$ Dreyfus CM Treasury Sweep 100.00 $$ Home Bill Consolidation Monthly Maint (per PO Box or Address)50.00 $$ Per Item 0.06 $$ Returned Item 5.00 $$ SubTotal $ 189.69 $ 2,276.28 Sub total from above $ 815.26 $ 9,783.12 Grand Total % 1,004.95 $ 12,059.40 Bank Information Name of Contact Bank Officer Matt Kirschenman Signature of Authorized Bank Officer Bank Officer's Telephone Number (213) 972-0646 Bank Officer's E-mail Address Man Kirsriienfnan®botw com COPY Tab V Sample Account Analysis Statement and Users Guide Please refer to the following pages for a sample Account Analysis Statement and Users Guide. ¨ PAGE 55 BANKA-eWEST BNP PARIBAS ANALYZED BUSINESS ACCOUNT STATEMENT Relationship Summary June 20XX Relationship Account Number: XXXXXX>CX1234 Cost Center: OOXXX ABC CORPS HOLDINGS INC. (OPERATING ACCOUNT) 1234 ANY STREET OURTOWN 2345 6789 BANK OF THE WEST IS PROUD TO INTRODUCE THREE NEW FEATURES TO OUR SUITE OF CASH MANAGEMENT SERVICES: WEBDIRECT REAL TIME REPORTING OF COMMERCIAL LOANS, BATCH FILE WIRE INITIATION VIA SECUREDIRECT, AND PAYEE INFORMATION FOR POSITIVE PAY. QUESTIONS? CONTACT CASH MANAGEMENT CUSTOMER SERVICE (1-800-400-2781) OR YOUR ASSIGNED REPRESENTATIVE. THANK YOU FOR BANKING WITH BANK OF THE WEST. Balance Summary Average Ledger Balance 22,484,118.90 Less: Average Float .00 Average Collected Balance 22,484,118.90 Less: Reserve requirement 2,248,411.89 Investable Balance 20,235,707.01 Average Collected Balance 22,484,118.90 Less: Balance Required for Services 30,663,851.74 Excess/(Deficit) Balance 8,179,732.84- Average Daily Ledger Balance Overdraft .00 Results Summary Current Period Earnings Credit 0.2400% 3,991.70 Less: Current Period Analyzed Charges 5,443.88 Total Analyzed Result 1,452.18- Total Charges To Be Debited on 07/20/XX 1,452.18 Number of days in cycle 30 Avg Adj Coll Balance requited to offset $1 of analyzed charges 5,632.72 Balance required to cover all analyzed charges 30,663,851.74 ANALYZED BUSINESS ACCOUNT STATEMENT Relationship Summary June 20XX Relationship Account Number: Cost Center: XXXXXXXX1234 OOXXX ABC CORPS HOLDINGS INC. (OPERATING ACCOUNT) 1234 ANY STREET OURTOWN 2345 6789 Detail Account Summary Account Average Average Average Invest Service Number Account Name Ledger Collected Neg Coll Balance Charge XXXXX1234 ABC CORPS 14,900,050 14,900,050 0 13,410,045 2,287.50 XXXXX2345 ABC CORPS 0 0 0 0 443.50 XXXXX3456 ABC CORPS 422,919 422,919 0 380,527 218.03 XXXXX4567 ABC CORP'S 0 0 0 0 72.50 XXXXX5678 ABC CORPS 0 0 0 0 77.78 XXXXX6789 ABC CORPS 4,543,433 4,543,433 0 4,089,090 713.83 XXXXX7890 ABC CORPS 0 0 0 0 77.13 XXXXX8901 ABC CORPS 522,643 522,643 0 470,379 337.83 XXXXX9012 ABC CORPS 820,232 820,232 0 738,209 331.79 XXXXX0123 ABC CORPS 200,000 200,000 0 180,000 129.70 XXXXX1234 ABC CORPS 0 0 0 0 75.70 XXXXX2345 ABC CORPS 1,074,839 1,074,839 0 967,355 678.59 Service Detail Serv.AFP Unit Balance Code Code Description Volume Price Charge Required MISCELLANEOUS SERVICES 00001 150100 CHECKS PAID 107 0.1800 19.26 108,486 00029 010400 MONTHLY MAINTENANCE 12 240.00 1,351,852 00093 000230 DEPOSIT ADMINISTRATION FEE 22,484 0.1500 3,372.60 18,996,911 ZBA CHARGES 00299 010020 ZBA CONCENTRATION ACCOUNT FEE 3 32.0000 96.00 540,741 00300 010020 ZBA TIER ACCOUNT FEE 6 20.0000 120.00 675,926 IMAGE EXPRESS SERVICES 00070 151353 CD PRODUCED - PER CD 1 25.0000 25.00 140,818 00071 151353 IMAGES WRITTEN TO CD 109 0.0600 6.54 36,837 WIRE TRANSFER SERVICES 01400 350300 INCOMING WIRE - AUTO 8 12.0000 96.00 540,741 01427 350541 OUTGOING INTERNATIONAL REPAIR 1 10.0000 10.00 56,327 LOCKBOX SERVICES 02103 050001 DDA ACCOUNT MAINTENANCE 1 15.0000 15.00 84,490 02175 050405 CD-ROM *1 20.0000 20.00 112,654 02181 050000 BASIC LOCKBOX BASE 1 300.0000 300.00 1,689,816 ACCOUNT RECONCILEMENT PROCESSING 02508 200201 INPUT ISSUE, ELECTRONIC 1 0.0800 0.08 450 02515 200010 BASE FEE 2 75.0000 150.00 844,908 POSITIVE PAY 02601 150030 POSITIVE PAY BASE FEE 2 25.0000 50.00 281,636 02602 150030 EXCEPTION ITEMS 104 1.2500 130.00 732,253 02610 150030 STAND ALONE POSITIVE PAY BASE FEE 9 30.0000 270.00 1,520,834 ACH SERVICES 00007 250201 ELECTRONIC (ACH) CREDITS 3 0.2000 0.60 3,379 00008 250200 ELECTRONIC (ACH) DEBITS 90 0.2000 18.00 101,388 ANALYZED BUSINESS ACCOUNT STATEMENT Relationship Suiomary June 20XX Relationship Account Number: Cost Center: XXXXXXXX1234 OOXXX ABC CORPS HOLDINGS INC. (OPERATING ACCOUNT) 1234 ANY STREET OURTOWN 2345 6789 Service Detail Serv.AFP Unit Balance Code Code Description Volume Price Charge Requited G05550 251052 ACH BLOCK MAINTENANCE 11 2.5000 27.50 154,899 05557 251053 DEBIT FILTER RECURRING 22 2.0000 44.00 247,839 WEBDIRECT 06028 151351 WD CHECK IMAGING 13 0.1000 1.30 7, 322 06410 400002 WD MID MKT BASE FEE 1-5 ACCOUNTS 1 75.0000 75.00 422,454 06411 400002 WD MID MKT PER ADD'L ACCOUNT 10 15.0000 150.00 844,908 06427 200221 WD MID MKT PRE DAY DETAIL ITEMS 348 0.0000 0.00 0 CURRENT DAY INFO REPORTING 06467 400224 WD MID MKT CURR DAY DETAIL ITEMS 62 0.0000 0.00 0 SPECIAL REPORTS 06120 010306 WD/ANALYSIS STATEMENT 13 1.0000 13.00 73,225 06125 010307 WD/DEPOSIT STATEMENT 13 1.0000 13.00 73,225 06161 409999 WD/PARAGON SPECIAL REPORT 1 1.0000 1.00 5, 632 MONEY TRANSFER 06200 350000 WD/WIRE TRANSFER BASE FEE 1 30.0000 30.00 168,981 06225 350100 WD DOMESTIC WIRE 2 10.0000 20.00 112,654 06230 350700 WD INTERNATIONAL WIRE 8 15.0000 120.00 675,926 06236 350104 WD ACCOUNT TRANSFER ITEMS 10 1.0000 10.00 56,327 Total Analyzed Charges 5,443.88 Total Charges 5,443.88 TREND ANALYSIS AVG POSITIVE INVEST BAL EARNINGS COLLECTED AVAILABLE CREDIT EARNINGS FEE BASED WAIVED ANALYZED MONTHLY MONTH BALANCE FOR SVCS RATE ALLOWANCE CHARGES CHARGES CHARGES POSITION 06/13 22,484,118 20,235,707 0.2400%3,991 0 0 5, 443 1,452- 05/13 9,087,150 8,178,638 0.2500%1,736 0 0 3,550 1,813- 04/13 10,130,500 9,117,450 0.2500%1,873 0 0 3, 628 1,755- 03/13 4,315,672 3,884,546 0.2600%857 0 0 857 0 02/13 1,973,313 1,777,787 0.2600%354 0 0 2,519 2,164- 01/13 5,554,838 4,999,685 0.2600%1,104 0 0 2,950 1,846- 12/12 9,898,961 8,911,739 0.2800%2,113 0 0 4,368 2,254- 11/12 11,958,751 10,762,876 0.2800%2,470 0 0 3,938 1,468- 10/12 17,943,863 16,149,477 0.2800%3,829 0 0 4,782 952- 09/12 16,159,560 14,543,604 0.2800%3,337 0 0 4, 699 1,361- 08/12 18,044,163 16,242,006 0.2800%3,851 0 0 5,338 1,486- 07/12 19,056,285 17,150,656 0.3000%4,357 0 0 4,389 531- GO mi BANK.°AWESTJ£L COMMEftCIAL BAWKIWC BMP PARIBAS CROUP ACCOUNT ANALYSIS STATEMENT bonlufilKvesicQn fSt(4Miiiwui|u<ai MtnMroic eniitaittftwM Bonk of the Vest's kcatnt Amtysls Stotenent Bwk it iKc West ti9s designed your ftccnint Aits^ atterasK Id M cdmplele end easy lo read rm eni recenre youi Aicoimt Anelysis aatemeni dumif IM imiMk dt eedi msrdh tdi the pretfroua month's acOoity, n a separate mailfig tnsm your regular husiness chedung statemesL If jou here morethan one analyzed husinesschecSjng acount ledh us ya can loaive an individual Accouid Analyvs slatsment foeeacA accadiL asvied at a cohsolidated tuminaty staletMnl of you Bccomts This hnudiure prmndes you with a slep-hy-step eiplanatai ol the tntonnahDn on your Account Analysis statemeel. this portion olthestaleniint indicates it thesisaanit 'Sa! a Summary or detail account level, lists the accdnnt -ngmbe' and the slalamenl period 0 Boionce Sunnnry Inisseclmn provides detailed balance mtonnatKB («yooi account Each line iseeplained tielow: • AnragiUdtcr Balance the sum ol the dally tialences for the imath dtviPari It) ttieacluel days in the month. • baraieFlhit The sum of the daily Mlaeces not collKlcd fur the month, divided hy the actual daysmthamonBi • kitnft tuDectad Balance Ihe average ledger tsatance minus Ihetnenfeldit- n Anran Riiitin CstetM BalBKt The Sum of Ihe deny ending negative collected tialancas and the daily endmg tedger oterdrafi lialances tn the month. dwiifedbythenumMrclIhe days m Ihe month. • lletratiAd)atti<Culae4Bd BAsti The sum of Ihe negative collected Palance and Ihe average ilaily collected tialanca This tialance Is used to ceiculate the leserve reouiremeni > Lap! Resent RataSnmat Reserves ere funds which the Pent is leQulied to ntamtim loiihe Federal Reserve Banli lor certain deposits Reserves ate calculated on collecled Mlancet. • lavastlbia Balaact Average collected halance mihas the reserve requiiemtnts. The loveslihte Balance is used to calculate Ihe Earnings Credit emmnt. > Bmna RttaM Far Juntcus The required tialances to offset the current month's analyzed chsrges >Escese/(OeflcR)BaMct The eicess or deficit Oalsnce requued tooilsel the current month s tneiyied charges > Aeeeaga Oady Ladpr BtlaKa OwdnR The sum ol llie negatrve daily endmg ltdgei Paiances over the month, divided liy the numlrer of days in the month, fhahgureis used to calculate the ledgei Overdraft interest charge in the Service Detail section 0 Results SuMVY The ftesein Sumary ptoviSn en eyerviete nt Ds vrece cMfge caCutabon tach line ilem le apiameg bilnii • CvmPenod EaiMnii Cntt The immtflHe BaJence niulhpl>eg ^Iheearmnfe cnM rate. imM br IM nvniMi }f dajfs« the |cii. aog mgftiDtieg hy the ngnhet ot dars m the oonth The KipbNf eaniinia credit rate is detentuned By the halance tei in wtiach the eccainl's Seance le SeHen Sewca 'alls • CvTHl PvW MiM Chstis Thelilal uS el services l« the current gengd • Pnriats Hoath'i tailRid lesoll The net result olihe account on the previous monltis Silement hiouEht loiwaicl.il Iht account seltiei Mliai than monlhly • TetMMrnd O*"''' Theeaninis credit minus the Ktivit) ctiaitet Anetatrve numhei results in an aclnirr chaiet < Taul Ch«t*i <h M OetiM ee ikh 2>lk The aihount el the activity chiiies ngl cnend he the earnusp credit Unless other arraoseeients have been tube tnis emouni uiii be automeiKalir bedudcS Itoiii ent account on the 29llict each month Itmnni aclmle • h«n0 A^iftid Colhctid lilMet l««dra< t» DIW Si olAiulnMCkiriM The batince reguved la ottsel tl at aneliad charps Tea ounhei titi been ediusted up to include the Seserve ticoueement • SMmh RiqiM le tmuT AD tulpM Clortu Ihehalance leguireOie ollsel ihe cuireni nonlti'i anal)2Hl chuies This numherees been ediusted up to iKluM the ReMive Reguirimeiit. O Detoil kc9«t Ti—tiry A Detail Account Summaisappeers on Reialionsbip Sommery statements anoeach suoseduenicurposite statement It provides a deianed smneiary at each ^ount withm Ihet goition at the rctatMiBtup 0SemnBMl Thisportnn ol tne itatenoei icsts eKb stmce used Ibis month to delermrne the actnrtyotiaip e biseriplMk ThedescnpMee'eacAstrviceusit] this month • VoluM: ThequanlilygtlriiiuctiOftSbitniillei] tills month. • Rrtea The cost Iota sui|letransactiort • Clirttr Tha cost let the services provided. • SilenceRieiired: 'heeveregecottectedbalance ream red (o oUiel the cost dl inis service piovided this monin 0 Trend iMtrsis The trend Anattsis proMcs sumai| lotats tor Ihe prior ITmonths For any quedions. please conlacl youi dedicatei) Relalionshtp Manages. - - — u - •' "Z' •-1 ff-i COPY Tab W Relevant Cash Management Agreements Please refer to the following pages for these sample agreements: Authorized Officers or Agents Waiver of Security Cash Management Agreements and Terms and Conditions Deposit Account Disclosure for Business Accounts Commercial Card Agreement Merchant Services Agreement ¨ PAGE 56 BANKr^H-kWEST BNP PARIBAS BANKt^eWEST' COMMERCIAL BANKING GROUP DEPOSIT ACCOUNT SIGNATURE CARD ADDENDUM AUTHORIZED OFFICERS OR AGENTS Organization Legal Name Tax Identification Number Attachment to Commercial Banking Group Deposit Account Signature Card Dated: COMPANY AUTHORIZED OFFICERS OR AGENTS Any of the following officers or agents of this Organization are authorized to have the power(s) designated below on account number(s): Name Signature Date Deleted (Bank Use OnIy)"*~| □ Designated Signer □ W\Te Transfer q Obtain Account Information Or, acting alene te perform any nStoD?avment □Telephone Transfer Request combination of these activities: Request ^ Obtain / Provide instructions for various□ Ooen/Ciose Account services Name Signature Date Deleted (Bank Use Only) □ Designated Signer □ Wire Transfer q Obtain Account information Or, acting alone te perform any n StooVavment ^ Telephone Transfer Requestcombination of these activities: Request ° instructions for various □ Ooen/Glose Account services Name Signature Date Deleted (Bank Use Only) ' s D Designated Signer □ Wire Transfer q Obtain Account Information Or, acting alone to perform any r? o^Vavment ^ Telephone Transfer Requestcombination of these activities: Request ° instructions for various □ Open/Close Account services Name Signature pate Deleted (Bank Use Only) □ Designated Signer O Wire Transfer q obtain Account Information Or, acting alone to perform any naooVavment ^ Telephone Transfer Requestcombination of these activities; Request O instructions for various □ Ooen/Close Account services The foregoing shall remain in full force and effect until Bank receives written notice amending or revoking the authorization ina form and at an agreed upon location, and Bank has a reasonable time to act upon it. Receipt of such notice shall not affect any action taken by Bank of the West prior thereto. Business Entity Name Printed Signer's Name Authorized Signature Date _ BAI\Kf;i>.Vi"EST Revision 08/28/2013 BANKr^WESTiSL COMMERCIAL BANKING BNP PARIBAS GROUP WAIVER OF SECURITY TO WHOM IT MAY CONCERN, SECURITY FOR DEPOSITS. Depository shall at all times maintain the required amount of eligible securities Including Letters of Credit with the Agent of Depository to secure the deposits of the Agency, in accordance with the Code. The Agent of Depository, BANK OF THE WEST, is authorized to place such securities for safekeeping with Wells Fargo bank N.A., MN or with any Federal Reserve Bank or branch thereof or with any other Approved Agents of Depository, In accordance with Section 53659. Pursuant to Section 53653, Treasurer waives security for the portion of any deposits that are Insured pursuant to federal law. I am authorized to waive security for the portion of any deposits that are insured pursuant to federal law for deposits held by BANK OF THE WEST. Dated: Local Agency: By: Name: Title: BANK-fStWEST AUTHORIZATION AND AGREEMENT FOR CASH MANAGEMENT SERVICES This Authorization and Agreement for Cash Management Services (this "Agreement") is executed by each of the business organizations named below (collectively, the "Business Entities"). Each Business Entity acknowledges that It has received from Bank of the West ("Bank") the Cash Management Terms and Conditions ("Terms and Conditions"). Deposit Account Disclosure for Business Accounts ("Disclosure Booklet"). applicable Schedules of Fees and Charges, applicable User Materials, related documents and disclosures (collectively, the "Disclosure Agreement") pertaining to the provision of one or more Cash Management Services (collectively "Services") by Bank to the Business Entities. Each Business Entity agrees that the Services obtained from Bank are subject to this Agreement, the Terms and Conditions, and the Disclosure Agreement, as those documents currently exist and may be added to, deleted from or otherwise changed from time to time in the future. Each Business Entity expressly acknowledges and agrees that if it has any electronic services, amendments to the Terms and Conditions and the Disclosure Agreement may be delivered or posted electronically, as is further disclosed in the Terms and Conditions. Capitalized terms used in this Agreement, not otherwise defined, have the meanings given to them in the Terms and Conditions. Multiple Entity Cash Management Services Linking - Check if applicable [□] Each of the undersigned Business Entities hereby authorizes the linking of its accounts with all of the below- named Business Entities for the selected Services. Each of the undersigned Business Entities hereby appoints the Business Entity first listed below ("Principal Business Entity") to act as the attorney in fact for such Business Entity with respect to ail matters concerning Services with Bank, such authority specifically, but without limitation, including the right to: (1) establish, continue, modify, and terminate an account, Service or other banking arrangement made by or on behalf of Business Entity: (2) contract to procure other such Services available from Bank as Principal Business Entity considers desirable; (3) receive bank statements, vouchers, notices, and similar documents from a financial institution and act with respect to them; and (4) designate a person(s) ("Designee(s)") to act with respect to the Services. This power of attorney is coupled with an interest. The undersigned intend that Bank treat all Business Entities as one entity for purposes of the Services provided pursuant to this Agreement. Specifically and without any limitation intended, each Business Entity specifically authorizes all deposit [and other] accounts of each Business Entity to be linked together for Account Analysis purposes, linked in the Deposit Concentration Service, linked In the Zero Balance Accounting Service, linked in access via our Online Banking Service through any website owned, operated, controlled, or maintained by Bank or any of its affiliates, without restriction. The accounts so linked may include, without limitation, deposit accounts (for example and without limitation, savings, checking, money market, certificates of deposit), credit accounts (for example and without limitation, lines of credit, credit cards, loans, leases), investment and brokerage accounts (for example and without limitation, mutual funds, stocks, securities, annuities) and any and all other accounts that we may now or in the future hold for or on behalf of any named Business Entity. Each Business Entity represents with respect to the individual who executes this Agreement on its behalf ("Designee") that the Designee is an authorized signer for the Business Entity. Each Business Entity agrees that; • Any Designee is authorized to access any account of any Business Entity named In this Agreement when such access is accomplished electronically via any Service provided in accordance with this Agreement. • Each Designee shall further be entitled to access and control all such accounts singly via the Service without regard to any multiple signer designations, requirements, or restrictions that might othenwise be applicable to a specific account but for this Agreement. Such access includes, without limitation, the ability to: (1) control such accounts electronically; (2) view or Initiate transactions including, without limitation, withdrawals; (3) deposit and transfer money; (4) generally perform all types of electronic transactions to and from each account of each Business Entity; and (5) further authorize other users to access the accounts to perform similar functions (under the control of such persons authorized hereunder). Each Business Entity acknowledges and agrees that the linking of its business account(s) through the designated Services as contemplated In this Agreement could subject each of the Business Entities haink^i.v;kst Page 1 of 3 Revision Date 05/01/13 (individually or collectively) to claims involving or arising out of the commingling of funds, and each Business Entity hereby assumes all of the risks involved. Each Business Entity further acknowledges and agrees that, for purposes of Online Banking, the granting of access to the deposit accounts of each Business Entity by way of a single identification number and password is provided by Bank only at the request and for the convenience of each Business Entity. Each Business Entity, individually and collectively, agrees to indemnify, protect, hold harmless and defend Bank from and against any and all claims, demands, damages, expenses, liabilities or costs (including attorneys' fees, professional fees and court costs), of whatever kind or nature whatsoever, in connection with or arising from allowing any of the accounts belonging to each Business Entity to be linked to one another for access via the Services or from the provision of the Services. There are additional pages attached to this Agreement, which contain additional Business Entities whose accounts and services may also be linked to the accounts of the Business Entities reflected on this page. Cash Management Servicefsl Requested D Account Analysis Service D Account Reconcilement Services □ ACH Blocked Service O Assured Access Card TM Services □ Cash Vault Services O Controlled Disbursement D Deposit Concentration Service□ Direct Delivery of Checks Service n DirectPay Manager □ Electronic Commerce Service n Electronic Deposit Service□ Image Clearing Service □ ImageExpress Services G Online Banking Services D Payment Orders ACH □ Payment Orders Wires □ Positive Pay Services □ RemittanceBanking Services (LockBox) □ Remote Cashier's Check Service □ SecureDirect Banking Integration Q Sweep Services Q Tax Direct Services □ Third Party Depository Services G Zero Balance Accounting Services Each Business Entity understands that use of any Service is subject to; (1) Bank's receipt of any required information and documentation; (2) Bank's approval; and (3) each Business Entity's completion of any testing or training requirements. The undersigned Designee, and each of them, is an officer, owner, principal or other authorized individual of the Business Entity on whose behalf the Designee is acting. The undersigned Business Entity and Designee represent and warrant that the Business Entity on whose behalf the Designee is acting has taken all action required by its organizational or constituent documents to authorize the undersigned Designee to execute and deliver this Agreement and any other documents Bank may require with respect to a Service, and to provide to Bank instructions, and to designate employees and agents to act in the name of and on behalf of the Business Entity regarding the Services and any and all accounts affected by any Service obtained on behalf of the Business Entity. m SIM-SS KM ITIES .IOIMNG IN C ASH MANAGF.MENT SER\ KT.S PRINCIPAL BUSINESS ENTITY Tax Identification Number Business Entity Name Printed Signer's Name Authorized Signature Title Tax Identification Number; Business Entity Name Printed Signer's Name Authorized Signature Title A HAMKilt.OTCT Page 2 of3 Revision Date 05/01/13 CORPORATE/ASSOCIATION RESOLUTION RESOLVED: The or (Title) (Name) (Title) (Name) (Title) (Name) of this Corporation is authorized to enter into any cash management services agreements with Bank of the West, to designate from time to time persons, in such number as may be directed, to manage any cash management service and otherwise give instructions regarding this organization's cash management service(s). RESOLVED further that the authority conferred is in addition to any other authorizations in effect and shall remain in force until Bank receives written notice of its revocation at the office where the account is maintained or at such other location as Bank may direct. CERTIFICATION I certify that this resolution was adopted by this organization in accordance with law and Its charter documents at a meeting duly held by this organization's governing body, and is now in effect, I certify that all of the signatures on the reverse are genuine and are those of person(s) who are authorized to execute the form who has such title as is listed above. I further certify that I have full authority to execute this certification. Bank of the West is entitled to rely upon this certification until written notice of its revocation is delivered to Bank of the West. DATED SIGNATURE PRINT NAME/TITLE (Must be Secretary or Assistant Secretary) For Bank Use Only Name:Name: Title:Title: Office/Unit: Date:Date: Signature Signature HANK.'VVTEST Page 3 of 3 Revision Date 05/01/13 / ^ BANKA-eWEST BNP PARIBAS Cash Management Terms and Conditions April 23, 2018 Cash Management Terms and Conditions GENEBtAL TERMS AND CONDITIONS 4 1. Amendments to Terms and Conditions 4 2. Binding Effect; Successors and Assigns 4 3. Compliance with Applicable Laws 5 4. Consent To Audit and to Verification of Identifying and Credit Information 5 5. Cutoff Hours 5 6. Duty to Review Statement and Items 5 7. Electronic Banking Services 5 8. Electronic Communications 5 9. Entire Agreement 5 10. Equipment; Software 5 11. Erroneous Reports 6 12. Funding Limits; Available Funds 6 13. General Representations and Warranties 6 14. General Security Procedure Requirements 6 15. Governing Law; Submission to Jurisdiction 9 16. Indemnity '. 9 17. Joint and Several Authority to Combine Funds 10 18. Lawful Use 10 19. Liability; Duty to Correct; Limitations of Liability; Statute of Limitations 10 20. No Advertising 11 21. No Implied Waivers; Remedies Not Exclusive 11 22. Non-Encrypted Transmissions via Computer 11 23. Notice of Claim 11 24. Notices 12 25. No Warranty 12 26. OurAgents 13 27. Payment for Services 13 28. Privacy 13 29. Proper Instructions 14 30. Proprietary Information 14 31. Recording and Use of Communications .-. 14 32. Responding to Legal Process or Investigations 15 33. Severability 15 34. Termination 15 35. Training 15 36. YourAgents 15 Effective: April23,2018 I I BANKthe^A^ESX Page2of54 ' ' BNPPARIBAS Cash Management Terms and Conditions TERMS AND CONDITIONS FOR SPECIHC SERVICES 15 37. Account Analysis Services 15 38. Account Reconcilement Services 16 39. ACH Blocked Service 1® 40. Assured Access Card ™ Services 17 41. Cash Vault Services 20 42. Controlled Disbursement Subscriber Service.... 22 43. Deposit Concentration Service 24 44. Direct Delivery of Checks 24 45. DIrectPay Manager 25 46. Electronic Commerce Service (ECS) 26 47. Electronic Deposit Services 26 48. Image Clearing Service 29 49. ImageExpress Services 32 60. Online Banking Services 32 51. Other Electronic Banking Service 35 52. Payment Orders (Wire Transfers and ACH) 35 53. Positive Pay Services 42 64. Remittance Banking Services (Lockbox) 43 55. Integrated Solutions Services 44 56. Sweep Services 46 57. TaxDirect Services 48 58. Third Party Depository Services 49 59. Zero Balance Accounting Services 49 GLOSSARY 51 Eff6Ctiv6i April 23, 2018 PSSS 3 of 54 BNP PARIBAS Cash Management Terms and Conditions Welcome to Bank of the West! Thank you for selecting Bank of the West as your business bank. It is a pleasure to serve you. Your agreement for cash management services (the "Services") is governed by your Authorization and Agreement for Cash Management Services, this Cash Management Terms and Conditions booklet ("Booklet"), the Deposit Account Disclosure for Business Accounts ("Disclosure Booklef), any current Schedule of Fees and Charges, Analyzed Business Checking Schedule of Fees and Charges, any User Materials, and any confirmations or other documents and disclosures that pertain to the provision of one or more Services by us (collectively, "Terms and Conditions"). This Booklet and any of the documents and agreements that are included within the Terms and Conditions may be amended, restated supplemented, or otherwise modified from time to time or altogether deleted from the Terms and Conditions. This Booklet contains general provisions that apply to any and all Services that we may provide to you and it also contains provisions that apply to specific Services that you may not wish to use. The general provisions are in all cases subject to more specific information in the specific provisions or in the User Materials or other referenced documents. For example, specific provisions about cutoff times for ACH transactions control for those Services in place of the general provisions about cutoff times. In some cases, we will need to obtain additional information from you regarding your eligibility for and continued use of specific Services. Depending on the Service, we may ask you to sign a certification or other foim confirming such information and agreeing to additional terms and conditions that will apply to a specific Service If we offer you special terms and conditions for a Service that differ from the terms and conditions set forth in this Booklet, we will give those terms and conditions to you in a written form that clearly specifies that those terms and conditions apply in place of contrary or conflicting terms and conditions contained in this Booklet or in our standard forms and other documents. As part of our commitment to offering you a dioice of Services that meet our high standards of excellence, we are constantly reevaluating, updating and upgrading our Services, including adding new Services, and those reviews and changes result in regular updates to the Terms and Conditions. You therefore understand and agree that the Terms and Conditions will evolve and change over time (including modifications, additions and deletions). You may view our current Terms and Conditions at any time by going to our website at bankofthewest com and clicking on the tabs/links for Cash Management Services and Terms and Conditions. By accepting or using any Services, you agree to all the Terms and Conditions, as in effect at the time you use the Services. Any changes in our Terms and Conditions will apply only to transactions effected after the date the changed Terms and Conditions are posted to our website. You acknowledge your acceptance of those changes by continuing to use the affected Service(s) after the time of posting of those changes. In this Booklet "BOW," "we," "us," "our." "Bank of the West' and "Bank" refer to Bank of the West. The words "you" and "your" refer to the person or entity identified on our records as the accountholder of the account. Any other defined terms in this Booklet will be capitalized. You may find the definitions within the terms and conditions of this Booklet and/or in the Glossary at the end of this Booklet. GENERAL TERMS AND CONDTTIONS 1. Amendments to Terms and Conditions We may amend, add, or delete any term and condition detailed in this Booklet and in ftie Terms and Conditions at any time. Generally, any additions, deletions or other amendments will be posted on the Bank's Website, www.bankofthewest com. To the extent and in the manner and timeframes required by law, the Bank will notify you in advance of any changes that affect your rights and obligations. You indicate your acceptance of any change we make by continuing to use the Service after the change becomes effective. 2. Binding Effect: Successors and Assigns The Terms and Conditions shall be binding upon and inure to the benefit of the parties hereto and their respective successors, administrators, liquidators, receivere, trustees, assignees, custodians, conservators or other similar officials. You may not assign your rights or delegate your duties under the Terms and Conditions without our consent, and any purported assignment in violation of this provision shall be null and void. With prior notice to you, we may assign or transfer any or all of our rights and obligations under the Terms and Conditions or your accounts to any parent entity, any affiliate, any direct or indirect wholly owned subsidiary of us or any other person which acquires all or substantially all of the custodial business of us. You hereby consent to any such assignment or transfer and agree to enter into any agreement which we may reasonably request to effect such assignment or transfer. Effective: April 23, 2018 BANKthe\A/ESX Page 4 of 54 BNPPARIBAS Cash Management Terms and Conditions 3. Compliance with Applicable Laws You agree to conduct your business and operations in accordance with all applicable laws, rules and regulations, and you agree to be bound by, and to comply with, the ACH Requirements and Wire Transfer Requirements, as defined in the Glossary and Section 52 of this Booklet. 4. Consent To Audit and to Verification of Identifying and Credit Information Consent to Audit - At least annually, upon our request, you agree to make yourself, your premises, your documentation and due diligence processes and procedures available for audit by us for compliance with applicable laws, rules and regulations, and with the Terms and Conditions. We will provide you with not less than ten (10) days prior notice of any audit and agree to wofk with you to set a reasonable time for any audit. Verification of Identity and Credit - In accordance with federal law. we must make a reasonable determination and verification of the profile Information of our clients. Until verification is completed, we may not be able to service and maintain your account. By requesting any Services, you acknowledge and consent to us obtaining background and/or credit reports necessary to comply with any federal or state statutes or industry regulations. 5. Cutoff Hours Each Service may have cutoff hours as set forth In various User Materials or other documentation. In general, transactions initiated or instructions received after the established cutoff hour shall be considered as having been made on our next Banking Day. 6. Duty to Review Statement and Items See your Disclosure Booklet for additional information and details. 7. Electronic Banking Services We offer various electronic banking services, some of which are accessible via the World Wide Web and others of which are software based. You hereby authorize us to offer our various electronic banking Services via licenses and/or third party servicers. 8. ElectronlcCommunicattons If you use any electronic banking Service or Internet banking Service, you agree that any and all disclosures and communications regarding those Services or the Terms and Conditions may be made electronically, including via email, or by posting to our Website in accordance with applicable law. Any electronic disclosure or communication we make will be considered made when transmitted by us and any disclosure or communication we make by posting to our Website will be considered made \flrfien posted by us. 9. Entire Agreement The Terms and Conditions constitute the entire and complete understanding tjetween and among the parties with respect to the Services, and no representations or agreements, expressed or implied, of any kind or character whatsoever have t>een made except as are expressly set forth in the Terms and Conditions, 10. Equipment: Software You must provide and properly install all required Equipment and maintain the Equipment in good working order. You accept full responsibility for the security and confidentiality of all matters related to the Equipment. Any Equipment requirements are described in the User Materials or other referenced documents, as amended from time to time. Unless othenvise agreed between you and us, we are not responsible for the installation or setup of any Equipment. We do not guarantee access to any Services from all computers, modems or communication software packages. Should you choose Effective: April 23. 2018 BANKth'e WEST Page 5 of 54 BNP PARIBAS Cash Management Terms and Conditions to use equipment not listed in the User Materials or other referenced documents or not previously authorized by us in writing, we may not support such equipment and you may not be able to access the Services with such equipment, 11. Erronegus Repgrts if you receive an Erroneous Report, you will immediately notify us by telephone and will return the original Erroneous Report to us by U.S. Mail or, if instructed by us, destroy the Erroneous Report in a commercially reasonable manner. You agree you will not disclose, use, review, copy, sell, disseminate, publish or distribute any Erroneous Report. 12. Funding Limits: Available Funds In our sole discretion, we may establish a funding limit ("Funding Limit") from time to time with respect to any Service, including, without limitation, for the Controlled Disbursement Subscriber Service or for any Payment Orders originated through the ACH Service. We will have no obligation to you to fund any Service for amounts in excess of funds available in designated deposit accounts. 13. General Representations and Warranties You represent and warrant that: (i) you have taken all necessary action to authorize the execution, delivery and performance of the Terms and Conditions; (ii) the person signing the documents establishing your account relationship is duly authorized to do so; (iii) you have obtained all consents, authorizations or instructions required in connection v^th your agreement to the Terms and Conditions, including those required by any government body, and such consent, authorizations and instructions are in full force and effect; (iv) your acceptance of the Terms and Conditions and your performance of your obligations under the Terms and Conditions will not violate any law, regulations, order, ordinance, rule, charter, bylaw, or other organizational document applicable to you or any agreement by which you are bound or by which any of your assets are affected; (v) the Terms and Conditions constitute a legal, valid and binding obligation, enforceable against you in accordance with their terms; and (vi) all information, documents, statements (written or oral), agreements and work papers furnished or to be furnished in writing to us by you relating to you (Information"), including without limitation any Information containing any representation, warranty, covenant or agreement made in respect of you, your affiliates or your and their businesses and operations, is or will be at the time of delivery to us accurate and complete in all material respects. You understand that we may rely on such Information in connection with transactions effected for credit to your accounts. 14. General Security Procedure Requirements (a) General Security Procedures (a)(i) Introduction - The following general security procedure requirements apply to any Services provided. Certain Services require special security procedure requirements. The User Materials outline in detail the security safeguards that allow you to determine the holder of the security system for your company, Authorized Users, authorized transaction types and dollar limits on all transactions. For certain Services, you will be responsible for the administration, including the deletion of Authorized Users. (a)(ii) Access - Most Services can be accessed and instructions and communications can be given by you to us by electronic means, such as a computer terminal. If we give you access to a secure system of communicating with us, such as our online banking services, you will be given or will select a user id and password, which shall become component of a Security Device. Each Authorized User must have a unique user id and password. You will be responsible for the confidentiality and use of each Security Device. You will be responsible for all instructions received by us through and under any authorized Security Device as more fully described herein. We resen/e the right to require you to change any or all of the security procedures or codes at any time. We may require that you designate an individual (and, where applicable, we recommend that you have at least two Individuals) who are authorized to take control of the security procedures inherent in the Service. Unless we are othenMse advised, the employee(s) (up to two), who execute the enrollment agreement are conclusively presumed to be the Designated Company Contact ("DCC") The DCC is, or can assign to another(s), the role of System Administrator(s). The System Administrator(s) is responsible for assigning the levels of security necessary for you. The System Administrator(s) shall also be responsible for distributing the Security Device to Effective: April 23. 2018 BANKtheNA^EST Page 6 of 54 BNPPARIBAS Cash Management Terms and Conditions Authorized Users and retrieving the Security Device from the Authorized User or disabling the Security Device upon revocation of an Authorized User's access rights. (a)(iii) Default Passv/ord - Any initial default passwords are sent to the DCC under separate cover. (a)(lv) Password Change - Any System Administrator(s) will be required to change the initial passwords the first time they login into the System. It is the System Administrator's responsibility to understand the security capabilities built into the Service and to assign and, as appropriate to your business and security needs, to restrict access to the various applications only to those employees who have a need to know, keeping in mind the importance of separation of duties as an important way of protecting your organization. You agree to change user id and passwords frequently in order to ensure the security of the user id and passwords. The System Administrator also maintains the responsibility of setting certain limits related to dollar or volume thresholds for Authorized Users. (a)(v) Agreement to Comply - You agree to follow the security procedures we have established for your communications with us. (a)(vi) Confidentiality-We do not publish these security procedures or make them generally available to the public because doing So would compromise the integrity of the security procedures. You are responsible for maintaining the confidentiality of any security procedures established. You agree to keep all security procedures and Security De\rices protected, secure, and strictly confidential and to provide or make available the same only to Authorized Users. You agree to instruct each Authorized User not to disclose or provide any security procedures or Security Devices to any unauthorized person. If you or your agents have reason to believe that any security procedures or any Security Device (including any identification codes) have or may have become known by unauthorized persons (whether or not your employees), you shall immediately notify us by telephone. In the event of any actual or threatened breach of security, we may issue you a new Security Device or establish new security procedures as soon as reasonably practicable, but we shall not be liable to you or any third party for any delay in taking such actions. (a)(vii) Our Reliance - Until you notify us and we have a reasonable opportunity to act on the notice, you shall remain responsible for any transactions and/or instructions given by use in accordance with the security procedure. You are solely liable for any transactions and/or communications initiated by us before we have received notice from you of the breach or potential breach of any security procedure and have had a reasonable opportunity to act on such notice. (a)(viii) Breach of Security Procedures - You agree to notify us immediately if you become aware of: (i) any loss or theft of any Security Device; or (ii) unauthorized use of any Security Device, or of the Service or any information. You further agree to notify us immediately if we are required to take any action to terminate access to any Services by any Authorized User(s). You agree to confirm any oral notification in writing to us within 24 hours. You agree to cooperate with us to replace the security procedures (Including any identification codes) in accordance with our security requirements, in the event of the breach of any applicable security procedure, you agree to assist us in determining the manner and source of the breach. Such assistance shall include, but shall not be limited to, providing us or our agent access to your systems, computer hardware and software, storage media and devices, and any other equipment or device that was used or may have been used in breach of the security procedure. You further agree to provide to us with any analysis of such systems, computer hardware and software, storage media and devices, and other equipment or devices, or any report of such analysis, performed by you, your agents, law enforcement agencies, or any other third party. Your failure to assist us shall be deemed an admission by you that the breach of the security procedure was caused by a person who obtained access to your transmitting facilities or v^tio obtained information facilitating the breach of the security procedure from you and not from a source controlled by us. (a)(ix) Change of security procedures - We reserve the right to modify, amend, supplement, or cancel any or all security procedures, and/or to cancel or replace any Security Device, at any time and from time to time in our discretion. We will endeavor to give you reasonable notice of any change in security procedures; provided that we may make any change in security procedures v^thout advance notice to you if we, in our judgment and discretion, believe such change to be necessary or desirable to protect the security of our systems and assets. Your implementation and use of any changed security procedures and/or continued use of the Service after any change In security procedures shall constitute your agreement to the change and your agreement that the Effective:April23.2018 I I BANKtheWEST Page7of54 BNPPARIBAS Cash Management Terms and Conditions applicable security procedures, as changed, are commercially reasonable and adequate for the purposes intended. (a)(x) Your Security Responsibilities - You are solely responsible for providing for and maintaining the physical, electronic, procedural, administrative, and technical security of your data and systems. You acknowledge that we do not control the Intemet or other information systems operated by third parties and you will not hold us or our agents liable for any failures, acts, or omissions of any third party information system operator, including but not limited to, unauthorized access to, alteration, theft, or destruction of information and data. You agree that we are not responsible If your computer system, your intemal controls or other operating software that causes Interaction between us to operate poorly or slowly. You agree to audit your security practices and othenwise comply with our rules pertaining to Internet security as provided to you in writing. You acknowledge and agree that such rules may be modified by us, such modifications to be effective upon the giving of notice thereof by us to you. You agree that your email system will not block emails from our domain and that you are fully responsible If your email system blocks emails from our domain. You must take preventative action to scan all files for viruses. We are not responsible for any computer viruses (including, without limitation, programs commonly referred to as "malware," "keystroke loggers," and/or "spyware), problems or malfunctions resulting from any computer viruses, or any related problems that may be associated with the use of an online system. Any material downloaded or othenwise obtained through the use of any electronic Service Is obtained at your own discretion and risk, and we are not responsible for any damage to your computer or operating systems or for loss of data that results from the download of any such material, whether due to any computer virus or otherwise. You are solely responsible for maintaining and applying anti-virus software, security patches, firewalls, and other security measures with respect to your operating systems, and for protecting, securing, and backing up any data and information stored in or on your operating systems. We are not responsible for any errors or failures resulting from defects in or malfunctions . of any software installed on your operating systems. You acknowledge and agree that it is your responsibility to protect yourself and to be vigilant against e-mail fraud and other Intemet frauds and schemes (Including, without limitation, fraud commonly referred to as "phishing"). You agree to educate your Authorized Users, agents, and employees as to the risks of such fraud and to train such persons to avoid such risks. You acknowledge that we will never contact you by e-mail in order to ask for or to verify account numbers. Security Devices, or any sensitive or confidential information. In the event you receive an e-mail or other electronic communication that you believe, or have reason to believe, is fraudulent, you agree ' that neither you nor your Authorized Users, agents, and employees shall respond to the e-mail, provide any information to the e-mall sender, click on any links in the e-mail, or othenwise comply With any instructions in the e-mail. You should forward any suspected fraudulent or suspicious e-mail to us. You acknowledge and agree that you are aware of are and are familiar with the concept of a "man-in-the-middle" or "man-ln-the-browser" attacks and that you will be vigilant in detecting such attacks on your computer, access devices, and systems. Contact us Immediately if you suspect that you may be the victim of such an attack. Contact us immediately if you experience any delays or receive any unusual messages, such as "system unavailable" or "try again later" . after using a Security Device. You agree that we are not responsible for any losses, injuries, or harm Incurred by you as a result of any electronic, e-mail, or Intemet fraud. You acknowledge and agree that as an integral part of these security procedures, you wll review transactions on your account daily and notify us Immediately if you suspect an unauthorized transaction. You acknowledge and agree, to frie extent allowed by law, that you will be liable for any unauthorized transactions that could have been prevented were It not for your failure to review transactions dally on your account. (b) Special Security Requirements for Payment Orders You agree to comply with the follovsnng security procedure requirements with respect to all Payment Orders you originate and transmit to us. You understand and acknowledge that the purpose of these security procedures Is to verify the authenticity of Payment Orders delivered to us In your name and not to detect errors in transmission or in the content of Payment Orders submitted to us. You agree to implement appropriate procedures -to ensure the accuracy of all Payment Orders submitted to us and the integrity of the transmission of such Payment Orders. You represent that you have carefully considered the circumstances or your initiation of a Payment Order and the transactions and activity that you will effect through the Service, and you acknowledge and agree that the security procedure, Including (without limitation) any Security Devices used In connection therewith, constitute commercially reasonable security procedures under applicable law for the transactions and activity you intend to effect through the Service. You authorize us to follow any and all instructions entered and transactions initiated using applicable Effective:April23,2018 I I BANKt%\VEST Page8of54 ' ' BNPPARIBAS Cash Management Terms and Conditions security procedures unless and until you have notified us, according to notification procedures we prescribe, that the security procedures or any Security Device has been stolen, compromised, or otherwise become known to persons other than Authorized Users and until we have had a reasonable opportunity to act upon such notice. You agree that the initiation of a transaction using applicable security procedures constitutes sufficient authorization for us to execute such transaction notwithstanding any particular signature requirements identified on any signature card or other documents relating to your account, and you agree and intend that the submission of Payment Orders and instructions using the security procedures shall be considered the same as your written signature in authorizing us to execute such transaction. You acknowledge and agree that you shall be bound by any and all transactions and activity effected through the Service through the use of such security procedures, whether authorized or unauthorized, and by any and all transactions and activity otherwise initiated by Authorized Users, to the fullest extent allowed by law. You further agree that we may act on any Payment Order that we have verified in accordance with the security procedures. If a Payment Order (or a request for cancellation or amendment of a Payment Order) received by us purports to have been transmitted or authorized by you, it will be deemed effective as your Payment Order and you will be obligated to pay us the amount of such Payment Order even though the Payment Order was not in fact authorized by you so long as we act in compliance with the following security procedures. If a Payment Order received by us was in fact transmitted or authorized by you, you will be obligated to pay the amount of the Payment Order regardless of whether we followed these security procedures. Regardless of the method you use to transmit files to us, you are strictly responsible for establishing and maintaining procedures to safeguard against unauthorized transmissions. You warrant that no individual will be allowed to initiate transfers in the absence of proper supervision and safeguards and that you wilt take reasonable steps to maintain the confidentiality of the security procedures and any passwords, codes, security devices and related Instructions. You agree to notify us as soon as possible if you t>e[ieve or suspect that any unauthorized person has received access to any security information, but doing so will not affect your liability for any transactions processed by us in good faith prior to receiving such notification and acting within a reasonable time to prevent unauthorized transactions. 15. Governing Law: Submission to Jurisdiction EXCEPT AS OTHERWISE PROVIDED IN THE TERMS AND CONDITIONS, THE TERMS AND CONDITIONS AND THEIR ENFORCEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA (without regard to any principles of conflicts of law). In the event of any action by us to enforce the Terms and Conditions, you agree to pay the costs thereto, including, but not limited to, reasonable attorneys' fees and court costs. You hereby submit to the nonexclusive jurisdiction of the United States District Court for either the Central District of California or the Northern District of California and of the California Superior Court sitting in either the County of Los Angeles or the County of San Francisco for purposes of all legal proceedings arising out of or relating to the Terms and Conditions or the transactions contemplated thereby. You irrevocably waive, to the fullest extent permitted by law, any objection which you may now or hereafter have to the laying of the venue of any such proceeding brought in such court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum, and you agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner permitted by law. 16. Indemnity We shall not incur any liability with respect to any act or omission in reliance upon any document, including any written notice or instruction provided for in the Terms and Conditions. You agree to indemnify and hold us harmless for any and all actions we take in accordance with your instructions, even if we vary from our standard procedures in honoring such instructions. In the event that we or our respective officers, directors, shareholders, agents, representatives or affiliates, or any heirs, legal representatives, successors or assigns of the foregoing (each an "Indemnified Party" and collectively the "Indemnified Parties") become involved in any capacity in any action, proceeding or Investigation brought by or against any person (including you) arising out of or based upon any false representation or warranty or breach or failure by you to comply with any covenant or agreement made by you herein or in any other document furnished by you to any Indemnified Party in connection with the Terms and Conditions or any transaction effected pursuant to the Terms and Conditions, or any claim arising directly or indirectly from your use of the Services, any Software, technical computer service, including Software installation or de-installation, or system, or any claim is otherwise made against any of the Indemnified Parties arising out of the performance by us of our duties and obligations under the Terms and Conditions, you will Indemnify and hold harmless each of the Indemnified Parties from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including, but not limited to, reasonable legal costs and expenses) of any kind or nature whatsoever (collectively, "Losses") incurred in connection Effective; April 23.2018 BANKth'eWEST Page9of54 BNPPARIBAS Cash Management Terms and Conditions therewith, other than such Losses that are ultimately determined by a court of competent jurisdiction by final and non- appealable judgment to have resulted from such Indemnified Party's gross negligence or willftjl misconduct. 17. Joint and Several Authority to Combine Funds If more than one party joins or participates in one or more Services, the contractual obligations shall be the independent obligations of each party, the obligations hereunder being joint and several. Each of such party agrees that there is no expectation of privacy between the entities that have joined and/or participated in the Services. Each party that participates in one of more Services hereby represents and warrants to us that any and all transfers and commingling of funds required or permitted by any Services, and all other aspects of the perfonnanc® hereof by the parties, have been duly authorized by law and by all necessary parties, including, without limitation, the account holder of each account, and that each party has obtained and shall maintain in its regular business records and make available to us upon reasonable demand adequate documentary evidence of such authorization from the account holder of each account, executed by the duly authorized officer(s) of each such account holder in accordance with such account holder's organizational documents and board resolutions or other written consents. Each representation and warranty contained herein shall be continuing and shall be deemed to be repeated upon each use of the Services and our effecting each transfer and commingling of funds. 18. Lawful Use You agree that you shall not (and you shall have appropriate procedures and monitoring in place to assure that your employees and agents do not) use our Services for any purpose that is unlawful, abusive, harassing, libelous, defamatory, obscene, threatening or damaging in any way. 19. Liability: Duty to Correct: Limitations of Liabilitv: Statute of Limitations We are not responsible for any loss, delay, cost or liability which arises, directly or indirectly, in whole or in part, from: (1) your actions or omissions, or those of third parties which are not within our immediate and reasonable control; (ii) your negligence, willful misconduct, bad faith or breach of any agreement with us; (iii) any ambiguity, inaccuracy or omission in any instruction or information provided to us; (iv) any error, failure, loss of information, disruption or delay in the transmission or delivery of data, records or items due to a breakdown in any computer, utility or communications facility; (v) any error or omission, willful or negligent by any third party, that which results in any equipment malfunction or any loss, cost, expense or damage to you in connection with any Sof^are, system, technical computer service, including Software installation or de-installation, or the Bank's or you use thereof: (vi) circumstances beyond our reasonable control, including delays by third parties, unusually severe weather conditions, accidents, strikes or labor disputes, riots, acts of govemment, insurrection, war, civil unrest, sabotage, fire, explosion, flood, water damage (e.g.. from fire suppression systems), acts of terrorism or acts of God; or (vii) the application of any government or funds-transfer system rule, guideline, policy or regulation. Our performance of our obligations shall be extended to include the period of time that we (or our third party processor, if any) were delayed or prevented from performing our obligations under the Terms and Conditions by reason of any of the above causes. (a) Duty To Correct If we make an error, upon written notice of the error, we will, to the extent reasonably possible, correct the error promptly. (b) Limitations of Liability (b)(i) Except for direct losses caused by our gross negligence or willful misconduct, our liability for every loss, cost, or liability arising from our errors, whether caused by acts or omissions, is limited to the average monthly charge for the Services in question for the six-month period preceding the date of loss. We shall not be responsible, under any circumstances for any loss of goodwill or for any punitive, special, consequential or indirect damages or loss profits that you incur in connection with the Terms and Conditions or the Services, any Equipment, Software or system, even if the Bank has been advised of the possibility of such damages. We shall not be liable for any failure to perform any of our obligations under the Terms and Conditions if such performance would result in us being in breach of any law, regulation, requirement or provision of any government, governmental agency, banking or taxation authority in accordance with which we are required to act, as we shall determine in our sole discretion. Effective: April 23, 2018 BANKtheNA^EST PaQe10of54 BNPPARIBAS Cash Management Terms and Conditions (b){ii) You acknowledge that our fees for Services have been established in contemplation of; (a) the limitations on our liability set forth in the Terms and Conditions; (b) your agreement to review statements, confirmations, reports, and notices promptly, and to notify us immediately of any discrepancies or problems; and (c) the application of the alternative dispute resolution provisions set forth in the Terms and Conditions. (c) Statute of Limitations Any claim, action or proceeding to enforce the Terms and Conditions or to recover for any Services related loss must be commenced within one year from the date that the event giving rise to the claim, action or proceeding first occurs. This Section shall survive termination of the Terms and Conditions and ail Services. 20. No Advertisina No party hereto shall use the name of any other party hereto in any marketing or advertisement without the prior written consent of any such other party. You shall not advertise or promise any Service without the Bank's prior written consent 21. No Implied Waivers: Remedies Not Exclusive No failure by us to exercise, and no delay in exercising and no cour^ of dealing with respect to, any right or remedy under the Terms and Conditions shall operate as a waiver thereof; nor shall any single or partial exercise by us of any right or remedy under the Terms and Conditions preclude further exercise thereof or the exercise of any other right or remedy. The rights and remedies specified in the Terms and Conditions are cumulative and are not exclusive of any other rights or remedies provided by law. No course of dealing and no delay or failure of ours, our parent company, affiliates, subsidiaries, agents, successors in interest or assigns in exercising any right, power or privilege under the Terms and Conditions or any other agreement in connection with these Services shall affect future exercise thereof or the exercise of any other right, povrer of privilege; nor shall any single or partial exercise of any such right, power or privilege preclude any further exercise thereof or any other right, power or privilege. Our rights and remedies, and those of our parent company, affiliates, subsidiaries, agents, successors in interest or assigns under the Terms and Conditions or any other documents or instruments pursuant to or in connection with the Services are cumulative and not exclusive of any rights or remedies which any such party would otherwise have. 22. Non-Encrvpted Transmissions via Computer You acknowledge that certain computer data transmissions or other communications between you and any other party may not be encrypted. You assume the risk of interception of unencrypted data transmitted between you and us or between us and any third party that represents you. 23. Notice of Claim (a) Reporting Period (a)(i) Thirty-Day Reporting Period - You agree to review, regularly and promptly, all reports, bank statements, Payment Order instructions, adjustments, charges, entries and other transactions. You shall immediately or, in any event, not later than thirty (30) calendar days following the date that we first mail or otherwise make available to you notification of the transaction ("Notice Period"), notify us of any error or discrepancy between your records and any notice or statement from us. or any transaction or transfer you believe was not authorized. You agree to notify us immediately of any claim you have or any claim that is made to you by a third party, that any of our acts or omissions in connection with any Service has caused you or the third party damage. (a)(ii) Reporting Periods of Less than Thirty Days - In some cases, you are obligated to notify us of unauthorized activity or discrepancies within a shorter time frame. You shall notify us of errors in ACH or wire transactions as soon as possible, and not later than 24 hours after first discovering the unauthorized transaction or error. See ACH Services at Section 52. Effective: April 23, 2018 E3H BANKtheWEST Page11of54 BNPPARIBAS Cash Management Terms and Conditions (b) Failure to notify {b)(i) If you fail to notify us of discovery within the Notice Period, in the event of an erroneous Payment Order, you will be liable for all losses {including any loss of interest) up to the amount of the Payment Order which result from your failure to give us notice or which might have been prevented by giving us notice and, in the event of an unauthorized Payment Order, we will not be liable for any loss of interest which results from your failure to give us notice or which might have t)een prevented by giving such notice. (b)(ii) Unless otherwise provided in the Terms and Conditions, if you fail to notify us of any error or discrepancy within 30 calendar days following the day we first mail or otherwise make available to you a notice, including notice via electronic format which may be available via the Internet, you are precluded from asserting and waive any such error or the discrepancy against us. 24. Notices We are entitled to rely on any written notice or other written communication, including facsimile, electronic mail (i.e., email) or other messages delivered in electronic medium if we believe in good faith that the communication is genuine and has been signed or otherwise authenticated by a person designated by you as an authorized representative. Any person designated by an authorized representative in the corporate or organizational resolutions or consents, signature cards or statement of designated authorized signatories on any of your deposit accounts with us is deemed by us to be an authorized representative for all purposes of your deposit accounts. You may add or delete your designated authorized representatives in accordance with our established procedures for changing authorized representatives. We are entitled to act on any incomplete communication, where in our reasonable opinion, it contains sufficient information. We have no duty to discover, and shall not be liable for, errors or omissions made by you or the duplication of any communication made by you. We may refuse to execute any communication where we reasonably doubt its contents, authorization, origination or its compliance with our policies or procedures. You agree that we may require notices regarding specific Services to be give to us at a location and In a manner we so provide to you. For example, any notice to us with respect to ACH transactions must be given to the contact person we designate to you from time to time for your ACH transactions. You cannot give effective notice to any other personnel of the Bank or to any contact person designated to you for any other account purpose or in the manner provided below for general notices, (a) Notice Address Except as otherwise provided to you, all notices to BOW regarding any Services shall be sent to Bank (C/0 Customer Service Support Unit) at; Bank of the West SC-XRD-3E-D 13300 Crossroads Parkway North City of Industry, CA 91746. (b) Proof of Delivery Notices to you will be deemed made when delivered orally, electronically, in person, or by mail at the address you designate for your bank statements unless you specify in writing another address for notices, 25. No Warranty YOU ACKNOWLEDGE THAT THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, AS TO (I) THE VALUE, CONDITION, DESIGN OR FUNCTIONING OF ANY SERVICE; AND (II) THE USE, MERCHANTABILITY, FITNESS FOR ANY PURPOSE, INCLUDING THE IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OF ANY SYSTEM, SOFTWARE, SOFTWARE OR OTHER RIGHTS TRANSFERRED HEREIN, FREEDOM FROM INFRINGEMENT OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER WITH RESPECT TO THE SYSTEM, SOFTWARE OR OTHER RIGHTS TRANSFERRED HEREIN. IN THIS REGARD. YOU ACKNOWLEDGE THAT BANK WILL NOT BE LIABLE TO YOU FOR ANY PUNITIVE, INCIDENTAL, INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES, LIABILITY, LOSS OR DAMAGE CAUSED OR ALLEGED TO HAVE BEEN CAUSED BY THE USE OF OR INABILITY TO USE THE SYSTEM, SOFTWARE OR OTHER RIGHTS TRANSFERRED HEREIN, Effective; April 23, 2018 BANKt%WEST Page 12 of 54 BNP PARIBAS Cash Management Terms and Conditions 26. Our Agents In the event that any Service(s) are dependent on our ability to obtain or provide access to third party networks and distribution systems, you agree that if the network or system is unavailable, or in the event that we determine, in our sole discretion, that we are unable to continue providing third party network or system access, we may discontinue the related Service(s) or may provide the Service(s) through an alternate third party network or system. In any event, the Bank shall not be liable for the unavailability of any third party network or system. 27. PavfTient for Services You will pay us for the Services at the current price we quote or cite plus, if applicable, additional fees and expenses for any taxes or extraordinary Services. With some exceptions, the amounts due for the Service(s) may be charged to Account Analysis. See Section 37 and the Deposit Account Disclosure for Business Accounts for a description of our Account Analysis terms and conditions. If your monthly analysis credits are insufficient to pay the amounts due, absent other written arrangements with us, you agree that we may debit any of your accounts for any and all fees and expenses. If you close your account or terminate any Service, you will owe us fees and charges for any unpaid Services and for the month in which your account was closed or in which any Service was terminated. You agree that we may debit any fees and charges from any funds of yours that we hold. We also may collect both actual and estimated fees and charges from you at the time you close your account or after your account is closed. 28. Privacv You agree to comply with all privacy and data-security laws applicable to your activities in connection with the handling of personal financial information belonging to your employees or other consumers with respect to whom any Services may be offered. Without limiting the foregoing, you acknowledge that the Gramm-Leach Bliley Act ("GLBA") governs disclosures of "nonpublic personal information," as such term is defined in Title V of the GLBA and any state statutes adopted in compliance therewith, the FTC Regulations promulgated pursuant thereto (including 16 CFR Part 313, 16 CFR Part 314, 12 CFR Part 332 and 12 CFR Part 364), and any state regulations promulgated under such state statutes or in compliance with the GLBA (collectively, the "Privacy Act and Regulations"), about consumers. You agree to comply with the Privacy Act and Regulations to the extent applicable and with all applicable law relating to consumer information. To the extent necessary, required or advisable to maintain any personal financial information of any consumer, you agree to adopt and maintain a comprehensive privacy policy and information security policy with respect to the handling of personal information of individuals. You agree to comply with such privacy policy and information security policy. (a) Your Privacy Obligations You agree that with respect to nonpublic personal information, you will: (a)(i) Comply with the terms and provisions of frie Privacy Act and Regulations, including the provisions regaining the sharing of nonpublic personal information; (a)(ii) Not use or disclose to any third party wifriout our prior written consent any nonpublic personal information that you obtain from us except to carry out the purposes for which we provided such nonpublic personal Information: (a)(iii) Comply with all applicable information security standards established by requirements of applicable law; and (a)(iv) In the event of a security breach or any other violation relating to any personal information under your control or the control of a third party service provider with which you have contracted, you will pay any out-of- pocket expenses incurred by us if we are involved in responding to such security breach, including paying the cost of notifying individuals that information about them was subject to a security breach- Effective; April 23,2018 EdH BANKtheWEST Page 13of543^p pARiBAs Cash Management Terms and Conditions 29. Proper Instructions (a) Duty to Act Except as expressly provided in the Terms and Conditions, we wit! act for your account only pursuant to Proper Instructions provided to us and we will have no duty to act in the absence thereof. As used herein, "Proper Instructions" means your instructions or those of your authorized agent or attorney-in-fact designated by you on a form reasonably acceptable to us and in accordance with the security procedures or other operational procedures established by you and us in accordance with the Terms and Conditions, given orally either in person or by telephone, or by facsimile transmission or by electronic mail or any electronic service that provides access to our Services, setting forth in reasonable detail the specific transaction(s) involved and subject to such authentication procedures, if any, as we may determine. Any Proper Instructions given by you to us shall not be effective until they are actually received by us and we have had a reasonable opportunity to act upon such instructions. You agree that we may act upon and shall incur no liability in acting upon any such instructions as reasonably understood by us, provided that such instructions reasonably appear to be genuine to us. You agree that you are responsible for and we may rely upon the accuracy and authenticity of all data and other information ftjrnlshed to you by your employees and agents. You acknowledge that we reserve the right to decline to accept any Proper Instructions or to execute any transaction{s) for your account in our sole discretion. We shall in no event have any responsibility to accept Proper Instructions or to otherwise act with respect to your account unless indemnified to our satisfaction. Nothing in this provision, however, obligates us to honor, either in whole or in part, any transaction or instruction that (i) is not in accordance with any condition agreed upon between you and us in the Terms and Conditions or in any other agreement between you and us; (ii) we have reason to believe may not be authorized by you; (iii) exceeds any transaction limit. Funding Limit, or daily limits imposed by us on your transactions; (iv) exceeds your collected and available funds on deposit virith us; (v) involves funds that are subject to a hold, dispute or legal process which prevents their withdrawal; (vi) violates any provision of any applicable risk control program of the Federal Reserve Bank or any rule or regulation of any federal or state regulatory authority; or (vii) for the protection of you or any other party, we have reasonable cause not to honor. (b) Unauthorized instructions You agree that we are not obligated to follow any instructions purported to be from you or any person representing you or any other person unless such instructions are provided to us in accordance with the Terms and Conditions and any security procedures or other operational procedures we may put in place from time to time. You also agree that we are not obligated to provide any notices regarding transactions for you to any person other that the authorized representative designated by you to receive such notices in accordance with the Terms and Conditions and our procedures in place from time to time. 30. Proprietary Information You acknowledge that all User Materials, any Software or systems (collectively, "Proprietary Information") used in providing the Services and all information relating thereto are our proprietary properties or properties which we are authorized to sub-license and have great commercial value. You acknowledge that you acquire no property or proprietary rights in the Proprietary Information as a result of your use of the Services. You agree to protect the confidentiality of these materials. You agree that you will not distribute, alter, recompile, disassemble, reverse engineer or make, publish or distribute any derivative work from the Proprietary Information, nor shall you obscure, alter or remove any copyright, trademark, service mark, patent notice or other proprietary notice that is placed on the Proprietary Information. You agree to destroy, delete or return to us such Proprietary Information upon our request or upon termination of the Services. You agree to promptly notify the Bank (with confirmation in writing) of any compromise or disclosure, or reasonable suspicion of compromise or disclosure of, or security breach involving any Proprietary Information 31. Recording and Use of Communications You agree that all communications or data transmissions between you (or your authorized representatives) and us may be monitored and/or electronically recorded and retained by us. You agree that we may produce such communications or data transmissions as evidence in any proceedings brought in connection with the Terms and Conditions or any Service. Effective: April 23. 2018 mrmM BANK A'e WEST Paae14of54 BNPPARIBAS Cash Management Terms and Conditions 32. Responding to Legal Process or Investigations If we receive a request for information regarding account activity or transactions from a third party with a legal right to request such information (such as a Federal Reserve Bank or ACH Operator, a state or federal banking regulator with jurisdiction over our operations, law enforcement officials with apparent legal authority to request or require such information or private parties with apparent authority to require disclosure of such information under legal process), you agree to reimburse us for any costs associated with responding to such request, including, but not limited to, the costs of production of such information (including research, copying and shipping, costs of appearing at depositions or interviews, costs of correspondence, and costs of court filings or appearances in the event we believe it is prudent to make such filings or appearances to protect your rights (or, in the case of Third-Party Senders of ACH Entries, the rights of your Originators). We may request your assistance with or participation in such response, and if we do so. you agree to assist us and cooperate with us as reasonably requested. 33. Severabilitv Should any term, condition or provision of the Terms and Conditions be found to be invalid, illegal or unenforceable, such finding shall in no way affect the validity or enforceability of the other terms and provisions of the Terms and Conditions which shall be construed as valid and enforceable as if the invalid or unenforceable term, condition or provision was never a part of the Terms and Conditions. 34. Termination We may terminate any or all Services immediately upon providing notice of such termination to you and you may terminate any or all Services upon giving us not less than ten (10) days prior written notice of such termination. From and after the effective date of such termination, neither you nor we shall have any further rights or obligafions to the other under the terms of this Booklet; provided, however, that any obligations or liabilities of either party to the other party which have accrued prior to the effective date of the termination shall continue to be enforceable against the party so bound until such obligations or liabilities have been fully paid or satisfied. The provisions in Sections 2, 9.15,16,19, 20, 21, 23,24, 25. 27, 30. 31, 32, and 33 shall survive the termination of the Service. 35. Training We will provide you with our standard User Materials and other documents for the Services you request. These User Materials and other documents contain instructions for using the Services. We will not provide to you or your employees any specialized, customized or individualized training for the Services (except in accordance with special arrangements and subject to such fees and charges as we may mutually agree). 36. Your Agents You assume sole responsibility for any actions performed on your behalf by your agents or contractors. You agree that we have no duty to monitor, detect or report any errors, omissions, or unlawful activities by your agents or contractors. TFRMS AND rONDTTTONS FOR SPFCIFTC SFRVTCKS 37. Account Analysis Services. (a) Checking Account If you use Cash Management services, we reserve the right to require that you have an Analyzed Business Checking Account. The statement is generated based on a calendar month, although your account may settle other than monthly. The average monthly Available Balance in an Analyzed Business Checking account may earn an "Earnings Credit" which may be applied against that month's service fees for the account An Earnings Cr^it in excess of the total monthly service fees cannot be credited to the account as interest. The Earnings Credit is calculated on a Effective: April23, 2018 EiflH BANKthe\A^EST Page15of54 BNPPARIBAS Cash Management Terms and Conditions 365/366-day year basis using an "Earnings Credit Rate" which is a variable rate established by us. As the factors used to determine the rate change, the Earnings Credit Rate will vary. (b) Thirty-Day Reporting Period You agree to promptly examine each Analyzed Business Checking Account statement received from us to promptly report any erroneous debit or credit. You Either agree that within thirty (30) days after we mail or othenwise make your statement available, you will report to us any claim for credit or refund due. Within 30 days after we mail or otherwise make your statement available, you will report to us any claim for credit or refund resulting from a forged, unauthorized or missing endorsement. Without regard to care or lack of care on our part, if we do not receive notice within the time frames specified above, we are released from all liability for the item(s) charged to your account and for all other transactions or matters covered by your statement. 38. Account Reconcilement Services If your business writes a significant number of checks each month, our Account Reconcilement Services may help simplify your bookkeeping procedures. Our Account Reconcilement Services also help you to increase audit control of your checking account(s) and, depending on the Account Reconcilement Services you request, provide you with tools to help authenticate that a check was issued by you prior to it being paid. Your enrollment in Account Reconcilement Services does not alter your obligations to keep your check stock safe and to adopt other security measures, or to promptly review account activity and report to us checks paid with missing signatures or with altered information, or to check the endorsement on paid checks. (a) Traditional Service This is our full Account Reconcilement Service for each account. You agree to provide us Issue Information on checks you have Issued within the timeframes and in the manner described in the User Materials. At the end of each accounting period, such as we agree, we provide you with the status of all checks you have issued, including paid, outstanding, exception, stopped, voided, and cancelled checks. The previous month's outstanding checks are carried forward and the dollar amounts balanced for each period. You agree to add to your Issue Information all the items identified by us as not matching Issue Information. (b) Partial Reconcilement Service Under the Partial Reconcilement Service, each accounting period, we send you a report of all checks paid within that period. (c) Deposit Reconcilement Service. Under the Deposit Reconcilement Service, if you have multiple business locations depositing to a single deposit account, we will segregate deposits by location. You may customize your Account Reconcilement Services by the manner in which you receive your paid check information. We offer images of paid checks on CD-ROM through our ImageExpress product or you may receive transmission or paper report. 39. ACH Blocked Service The ACH Blocked Service is designed to permit you to protect your designated account(s) from ACH Credit Entries and/or ACH Debit Entries. For the security of your account(s) you may vwsh to block all ACH Entries or block ACH Entries originating from specifically designated Originators. You must identify, in a form satisfactory to us, the specific originators whose ACH Entries you wish to block and provide the information required by us. You may opt to restrict Entries to a maximum dollar amount. You may further opt to set an expiration date for permissible Entries and, if you do so, Entries received after that designated expiration date will be rejected and returned to the Originator as unauthorized. Blocked Entnes are limited to those received by us from external sources not directly related to us. We may opt not to restrict Entries that are: internal Entries originated for payment of fees owed to us. charges for services provided by our vendors in connection with any Service provided to you, payments or transfers originated by us or by one of our vendors in connection Effective: April 23. 2018 BANK WEST PaQe16of54 BNP PARIBAS ^ Cash Management Terms and Conditions with Services provided to you. You acknowledge that unless tax payments are specifically authorized through the Service prior to receipt by us, the Service will cause those payments to be rejected. The following Services are also available to you if you enroll in the ACH Blocked Service. (a) ACH Filters ACH Filters allows certain pre-authorized ACH Debit Entries by designate Originators to post against your deposit account. Pre-authorized ACH Debit Entries will flow through the normal ACH processing system and post to your deposit account(s). ACH Debit Entries that do not match the criteria of the ACH Filter will be prevented from posting to your deposit account(s) and vwll be returned to the Originator, ACH Filters do not expire as long as you are enrolled in the Service. (b) ACH Positive Pay This Service permits you to preauthorize ACH Entries by designated Originators and to view and decision (honor or reject) non-preauthorized ACH Entries each Banking Day through the Internet using a login available through the ACH Positive Pay URL. ACH Entries that you choose to pay will flow through the normal ACH processing system and post to your deposit account(s). ACH Entries that you choose to reject will not post to your deposit account{s) and will be returned to the Originator. Any ACH Entry for which you do not make a decision to pay or reject by 2:00 p.m. Pacific Time will be rejected automatically. Your System Administrator(s} has the authority to grant additional users access to the ACH Positive Pay system. ACH Debit Entries received prior to the setup of the ACH Blocked Service (including ACH Fitters and/or ACH Positive Pay) may be posted to your deposit account(s) in accordance with the NACHA Rules (as defined in this Booklet). Enrollment In the ACH Blocked Service is required to use ACH Filters and ACH Positive Pay You acknowledge that your failure to use the ACH Blocked Service (including ACH Filters and/or ACH Positive Pay) could substantially increase the likelihood of undetected fraudulent activity on your deposit accounts) and that it is neither unreasonable nor unreasonable under the circumstances for us to require you to use our ACH Blocked Service (Including ACH Filters and/or ACH Positive Pay) upon request. You agree that if you fail to implement the ACH Blocked Service (including ACH Filters and/or ACH Positive Pay) following our request that you do so, you will be precluded from asserting any claim against us for paying an unauthorized, altered, counterfeit or other fraudulent Item that the ACH Blocked Service (including ACH Filters and/or ACH Positive Pay) was designed to detect or deter, and we will not be required to re-credit your deposit account or otherwise be liable to you for paying such Item. 40. Assured Access Card ™ Services The Assured Access Card Services are offered to qualifying employers and other persons that desire to offer individuals, such as employees or independent contractors ("Individuals"), the ability to have payments made through a debit card as an alternative to receiving pay or other disbursements by check or cash. We make the program ("Assured Access Card Program") available through a Website hosted by a vendor ("Vendor") as a service provider to us. This Service enables you to make disbursemente into a Bank of the West deposit account held with us, such deposit account Ijeing eligible for FDIC Insurance. The debit card (an "Assured Access Card" or "Card") can be used at automated teller machines ("ATMs") and at point of sale ("PCS") terminals wherever the MasterCard® or Star Acceptance Mark is displayed or wherever the Debit MasterCard is accepted, to withdraw the funds as designated by you for allocation to the Individuals, Our provision of the Assured Access Card Program is subject to the following terms and conditions. (a) Solicitation for and Issuance of Cards (a)(1) You must offer to each of the eligible Individuals, on a non-discriminatory basis, the opportunity to receive payment of their disbursement payments by having such amount electronically loaded on a Card which an Individual may use to withdraw cash at electronic terminals, pay for goods and services at merchants that accept tiie Card, and to transfer funds to other Cards authorized by the Individual. (a)(ii) You must not require any individual to receive his or her disbursement payments through the Card and must offer to each Individual the option of receiving such payments by traditional paper check. Effective: April 23. 2018 BANKth^eWEST Page 17 of 54 BNP PARIBAS Cash Management Terms and Conditions (b) Advertising (b)(i) You must display, in an appropriate and effective manner, any advertising or promotional materials provided or required by us to infonn Individuals that Cards may be used, on a voluntary basis, to receive their regular disbursement amounts. (b}(ii) You have the right to use or display the proprietary names and symbols associated with Cards only while we are providing the Assured Access Card Program to you or until you are notified by us to cease such usage. (b)(iii) You must comply with all applicable rules and regulations conceming use of service marks and copyrights of others that may be associated with the Assured Access Card Program. (c) Cardholder Enrollment and Issuance of Assured Access Cards . (o)(i) If an Indiwdual wshes to enroll in the Assured Access Card Program, you must use the Vendor-hosted website to input all enrollment information into the system. By inputting an Individual's information in the system and enrolling that Individual, you represent, warrant and certify to us that you have verified that the name, address and other identifying information inputted are the true and correct name, address and other identifying information of that Individual. You understand and acknowledge that Individuals are prohibited under United States law ti-om receiving Assured Access Cards or participating in the Assured Access Card Program if such persons are designated on certain United States Treasury lists of known or suspected terrorists, criminals or other prohibited persons (the "Treasury Lists"), and that we will check the names provided by you against those lists and bar any person whose name appears on any such list from participating in the Assured Access Card Program. You therefore acknowledge that accurate and complete Identification of Individuals is a matter of vital national security, and you represent, warrant and covenant that you will use all necessary means to ensure that such identifying information provided to us is accurate and complete. (c)(ii) After checking names of Individuals against the Treasury Liste and confimiing that an Individual is not named on such Treasury Lists, we shall issue a BOW Assured Access Card to such Individual and send the Card to the Individual with a Cardholder Agreement. The Cardholder Agreement shall provide that use of the Card Is subject to all the terms and conditions contained in the Cardholder Agreement The Individual will also be informed that a personal identification number ("PIN") has been set for the Card, which PIN shall be the last four digits of the Individuars telephone number, as provided by you. The Individual shall be required to activate the Card by calling an 800 telephone number and changing the PIN to a number designated by the individual. Once the Individual's Card is activated, the Individual shall be a "Cardholder." We may deliver the Card, Cardholder Agreement and any ancillary documents (the "Document Package") directly to the Individual or may deliver the Document - Package to you to deliver to the Individual. You agree to provide the entire Document Package as provided by us to any Individuals if requested by us. (c)(iii) The Assured Access Card will give the Cardholder electronic access to his or her Card funds, as described in our current schedule of fees and charges for the Assured Access Card Program. (c)(iv) You must send funds to the Account via a deposit transaction and send infomiation ("Allocations") to us with respect to the allocation of fonds to each Cardholder. You must coordinate between us and the Cardholders all matters related to participation in the Assured Access Card Program. (c)(v) We will issue all necessary new and replacement Assured Access Cards to the Cardholders, in such form as we detennlne, and with such ATM, POS and other marks or logos on them as we determine. We may change its affiliation with any ATM or POS networks at any time. In the event that it does so, however, vye shall not be obligated to issue replacement Assured Access Cards to those existing Cardholders. (c)(vi) In the event that any Cardholder terminates his or her participation in the Assured Access Card Program or such Cardholder's participation is terminated for any reason, you must cease funding the Account with funds for that Cardholder. The Cardholder will continue to have access to his or her funds on the Card or such funds will be disbursed to the Cardholder in accordance with the Cardholder Agreement. Effective: April 23,2018 BANKt^'eWEST P3,e 18 of54 BNPPARIBAS ^ Cash Management Terms and Conditions (c)(vii) If a Card has a negative balance or overdraft, we will apply the next available deposit to the Card to recover such overdrawn funds, If such deposit occurs. You will not be responsible for the amount of any overdraft on any Card, or for losses that result from fraud or from lost or stolen Assured Access Cards, except to the extent that such losses are caused by any negligent or intentional act or omission by you or any agent of yours. (c)(viii) You virill be bound by and comply with the Terms and Conditions and applicable state and federal laws and regulations, our policies related to Assured Access Cards and rules and regulations of any network or clearinghouse through which funds are transmitted in connection with the Assured Access Card Program. (c)(ix) You must notify us of all Individuals that you have authorized to access the Assured Access Card Program website hosted by Vendor ("Authorized Users"). If an Authorized User's employment is terminated by you, or the Individual is otherwise no longer eligible to participate, you must immediately notify us and we will promptly terminate such Authorized Users access to the Assured Access Card Program website. (d) Credit of Allocations to Cards (d)(i) You must fund the Account via a deposit transaction and must transmit the Allocations to us for each deposit. (d)(ii) In the event that you fell to deliver in a timely manner or otherwise, funds or Allocations to us, you will be solely responsible for notifying your Cardholders that funds may not be credited to their Cards until the funds and Allocations are received and ^lly reconciled. (d)(iii) Subject to the terms and conditions of the Terms and Conditions, applicable laws, rules and regulations, and the respective Cardholder Agreement, we will credit the designated Card in the amount of each corresponding Allocation received by us. We will have no liability for failure to effect credit to the Account or the Cards due any failure of funds or Allocations to be delivered to BOW in a timely manner. (d)(iv) We may reject any Allocations received on behalf of you. You shall have no right to reverse an Allocation after we have received such Allocation, except in accordance with applicable laws, rules and regulations. (d)(v) You will use the format as provided to you by us for transmission of Allocations. (d)(vi) You will have the ability to access information regarding the Cards and deposits to the Account through the Vendor-hosted website. (d)(vil) Individuals will have ttie ability to access information regarding debit and credit transactions on their Cards via voice response unit ("VRU") hosted by Vendor, through live telephone customer service hosted by Vendor, and by access through the Vendor-hosted website. Vendor will provide a written record of Card transactions to a Cardholder covering the most recent 60-day period upon the Cardholder's oral or written request. (d)(viii) You will provide to each Cardholder, on each applicable disbursement date, a written, itemized disbursement statement showing the Cardholder's gross payment for the payment period in question, all required and authorized deductions, and the Cardholder's net payment for such payment period. (d)(ix) You must at all times comply vwth all applicable laws regarding payment of each Cardholder's disbursement and related matters. (d)(x) You must set up and maintain a system in accordance with all applicable legal requirements, to store and maintain Cardholder payroll records in such a manner so as to allow you to forward, within twenty four (24) hours, copies of any backup material requested by us regarding amounts authorized by you to be loaded on a Card. (e) • Correction of Errors We will make reasonable efforts to act upon your request to cancel or amend an Allocation but shall have no liability for failure to do so in any specific timeframe or before funds are withdrawn from a Card. You will remain liable to us, which may seek immediate payment from you, for any Allocations already credited to a Card. Effective:April23.2018 I I BANKtheWEST Page19of54 ' ' BNPPARIBAS Cash Management Terms and Conditions (f) Your Warranties You warrant that each Allocation shall be for an amount (i) due to the Cardholder and not subject to any claims by you or (11) duly authorized to be disbursed to the Cardholder. If the BOW Payroll Card is used for the payment of wages, you further warrant that it is in compliance with all applicable Rules governing the payment of wages (g) Individual Validation You certify that Individuals have completed and complied with all appropriate Enrollments and associated procedures, and that you have verified each Individual's identification. We have the right to audit Cardholder files for purposes of verifying how you conducted the identity verification at a mutually agreeable time and location. 41. Cash Vault Services Under cur Cash Vault Services, we offer both Traditional and Remote Cash Capture Cash Vault Services. (a) Traditional Cash Vault Service The Traditional Cash Vault Services allow you to make withdrawals of cash and deposits of cash and items to one or more designated cash vault locations approved by us. You agree to make any such deposits in accordance with any User Materials we may provide to you. and that any failure to follow our instructions may result In delay in posting of your deposit (a)(i) Armored Courier Serwce -You must arrange with an armored courier for the delivery of deposits to us and/or for the pick-up and delivery of currency and/or coin from a designated cash vault location for each of your location{s). Each of your locations must be established with the Bank and have a profile in the system before deposits will be accepted at any of our designated cash vault location(s). The armored courier acts as your legal agent. You agree that ail currency, coin, checks and other property that is in the possession of the armored courier legally remains in your possession until it is physically released to and accepted by one of our designated cash vault location(s). You agree to work with your courier should there be any discrepancy between what you believe you delivered to the courier and the amount accepted by us. (a)(ii) Credit To Your Account - Any credit to your accounts prior to our verification of a deposit is provisional credit only and may be corrected. Our verification of deposits is conclusive and binding on you. You waive any discrepancy between your records and our records if your claim is not made within thirty (30) days of the original assumed deposit date. (a)(iii) Tampered Bags-We do not knowingly accept bags that display evidence of tampering. Should we accept a deposit bag and notice any evidence of tampering, we will open the bag using our established security procedures (including opening the bag in dual custody), but you agree that we are not liable for any shortage within any shipment that is not distinctly and securely sealed in accordance with our instructions. (a)(iv) Traditional Cash Vault Cash Order Service - In connection with any coin and currency you order from our cash vaults, you authorize us to debit your account (i) on the day that such coin and currency are available for release from such cash vault to your armored courier, or (ii) on the day that we deliver such coin and currency to another location for pickup by your armored courier, as applicable. Each time you use our Traditional Cash Vault Cash Order Service, you represent and warrant that you have sufficient collected and available funds in your account for each change order requested by you. We have no obligation to release any coin and currency ordered by you unless there are sufficient collected and available funds in the designated account or sufficient funds under a line of credit to pay for such order at the time scheduled for release of the coin and currency to the armored courier. (b) Remote Cash Capture Service Remote Cash Capture Service (the "RCC Service") allows you to receive provisional credit for currency placed into and validated by a smart safe (the "Safe"). Currency placed into and validated by the Safe shall be referred to as "Safe Currency." You agree that for the Safe to be eligible for the RCC Service, it must be installed at a location designated and approved by us ("Safe Location") Subject to cutoff times and other provisions contained in this Effective: April 23. 2018 BANKth'eWEST Page 20 of 54 BNPPARIBAS Cash Management Terms and Conditions Booklet, we may provide you with provisional credit for Safe Currency; such provisional credit will be subject to subsequent verification and/or adjustment by us at cur designated branch or cash vault location ("Designated Location'). You agree that Safe Currency and non-currency items contained in the Safe legally remain in your possession until physically released to and accepted by us or our agent at the Designated Location. The RCC Service shall be governed by this Booklet, except as othenwise provided herein. (b)(i) Your Responsibilities Concerning RCC Safe and Armored Courier Provider - You are solely responsible: • For the procurement, whether by lease, sale or otherwise, of the Safe from one of the Bank's approved armored couriers; • For the installation and servicing of the Safe; • For any subsequent removal of the Safe; • For complying with all terms and conditions of your agreement with the armored courier that provides the Safe; • For registering your Safe's location with Bank; • For preparing deposits for non-currency items placed in the Safe's manual drop; and • For engaging an armored courier to remove the Safe Currency and any manual drop items from the Safe and to transport the same to the Designated Location not less than each seven (7) days. We expressly disclaim any responsibility or liability for your arrangement with the armored courier. Each of your Safe Locations must be reported to the Bank and have a profile in our system before electronic deposit information will be acx^pted for processing by frie Bank or before Safe Currency will be accepted at any of our Designated Location(s). You are not required to prepare deposit and/or duplicate deposit slips with respect to Safe Currency, as deposit information regarding such Safe Currency will be securely transmitted to us in an electronic file from the Safe. Manual drop items will be picked up when your Safe is serviced and delivered with the Safe Currency to us at a Designated Location for processing as a traditional deposit. You will not receive provisional credit for any items (including currency) placed In the Safe's manual drop. You agree that the armored courier you engage to transport your currency and items to us will meet the requirements set by the Designated Location; and further agree that the armored courier is at all times your agent, not ours, except as otherwise provided herein. (b)(ii) RCC Cutoff Times-The Bank's end of day cutoff time for Safe Currency is 10:00 pm Pacific Time ('End of Day Cutoff). Safe Currency reported to the Bank on the Banking Day prior to the End of Day Cutoff will be provisionally credited to your deposit account the same Banking Day. Safe Currency received after the End of Day Cutoff, or on a non-Banking Day, will be provisionally credited to your deposit account as of the next Banking Day. (b)(iii) Provisional Credit - Until final verification at the Designated Location, any credit provided for Safe Currency is provisional credit which is the amount credited to your designated deposit account when the Safe sends its electronic updates to us upon your deposits of currency into the Safe. Safe Currency will be available to you for all purposes subject to the End of Day Cutoff. Safe Currency may be the subject of legal process. (b)(iv) Settlement - Upon receipt of the Safe Currency at the Designated Location, the Safe Currency will be verified and, at that point, the provisional credit for the Safe Cumency shall be deemed final credit. In the event of a discrepancy (regardless of the reason for the discrepancy) between the Safe Currency amounts transmitted In the electronic file from the Safe and the Safe Currency amounts verified at the Designated Location, an adjustment shall be made to your deposit account. Information concerning such adjustments will be reflected In your deposit account statements and, in some cases, In written or electronic advices and reports produced through our Internet Banking Service. (b)(v) Armored Courier Scheduled Pickups - Each Safe Location requires a minimum of one armored courier pick-up per a rolling seven (7) calendar day period. You agree to establish and maintain an armored courier pick up schedule that minimizes the aggregate amount of Safe Currency kept across all of your Safes. (b)(v) Umitations of Uability - YOU ASSUME ALL RISK OF LOSSES FOR ANY SAFE CURRENCY UNTIL SUCH CURRENCY IS RECEIVED AND VERIFIED BY US AT A DESIGNATED LOCATION. YOU ACKNOWLEDGE THAT WE DO NOT PROVIDE. NOR DO WE MAKE ANY RECOMMENDATIONS REGARDING THE SAFE. WE HAVE NOT MADE AND DO NOT MAKE ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OF NATURE, DIRECTLY OR INDIRECTLY, EXPRESS OR IMPLIED. AS TO ANY MATTER WHATSOEVER. INCLUDING THE SUITABILITY OF THE SAFE, ITS' DURABILITY, ITS' CONDITION. ITS' QUALITY. AND/OR ITS' RELIABILITY. ACCORDINGLY, WE ALSO DISCLAIM ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR USE OR PARTICULAR PURPOSE WHETHER ARISING BY Effective: April 23,2018 I I BANKt%'eWEST Page21of54 ' ' BNPPARIBAS r Cash Management Terms and Conditions OPERATION OF LAW OR OTHERWISE. WE SHALL NOT BE LIABLE TO YOU OR OTHERS FOR ANY LOSS. DAMAGE OR EXPENSE OF ANY KIND OR NATURE CAUSED DIRECTLY OR INDIRECTLY BY THE SAFE OR ANY FILE TRANSMITTED FROM THE SAFE, HOWEVER ARISING OR THE USES THEREOF OR THE FAILURE OF ANY OPERATION THEREOF, NO REPRESENTATION OR WARRANTY AS TO THE SAFE OR ANY OTHER MATTERS BY OTHERS SHALL BE BINDING UPON US OR IMPOSE ANY LIABILITY UPON US NOR SHALL THE BREACH OF SUCH RELIEVE YOU OR IN ANY WAY AFFECT ANY OF YOUR OBLIGATIONS TO US HEREIN. IF THE SAFE IS NOT SATISFACTORY FOR ANY REASON, YOU SHALL NOT MAKE ANY CLAIM ON ACCOUNT THEREOF AGAINST US. REGARDLESS OF CAUSE, YOU WILL NOT ASSERT ANY CLAIM WHATSOEVER AGAINST US FOR LOSS OR ANTICIPATORY PROFITS OR ANY OTHER INDIRECT SPECIAL OR CONSEQUENTIAL DAMAGES. (b)(vi) Supplemental Representations and Warranties - In addition to the representations and warranties set forth in this Booklet, you represent and warrant to us that (a) you have given or procured, as the case may be, all necessary consents and approvals for our accessing of your information and/or information of the armored courier, as we deem appropriate, for purposes of this Booklet; and (b) you and/or the armored courier as your agent shall safeguard all Safe Currency and non-currency items until delivery of the same at the Designated Location and commencement of verification. (b)(vii) Security Breach or Loss of Safe Currency - In the event that (a) the security of the Safe is breached prior to such delivery and commencement of verification at the Designated Location; (b) delivery of the Safe Currency to the Designated Location is delayed; and/or (c) the Safe Currency never reaches the Designated Location (regardless of the reason), we may reverse and/or adjust any credit, provisional or otherwise, provided with respect to such Safe Currency. You agree to notify us promptly in the event of any such security breach, delay, or loss of Safe Currency. (b)(viii) Supplemental Termination Provisions - In addition to our termination rights in Section 34 of this Booklet, we may immediately terminate your use of the RCC Service in the event; (a) you breach, or permit the breach of, the security of the Safe; (b) we determine that you have failed to maintain a financial condition that we deem to be reasonably satisfactory to minimize any credit or other risks to us in providing the RCC Service or \we deem immediate termination to tre necessary or appropriate to prevent a fi nancial loss to us; (c) you breach any provision of this Section 41; and (d) we, in our sole disaetion, determine that the RCC Service is no longer feasible or desirous for us to continue to offer. (c) General Terms and Conditions Applicable to All Cash Vault Services The use of the Cash Vault Service to make bulk shipments of currency is strictly prohibited. This includes bulk shipments of currency from both foreign and domestic locations. Bulk shipments of currency means the use of common, independent, or Postal Service air/land/sea carriers to transport large volumes of bank notes (U.S. or foreign) from sources, which often take the form of containerized cargo, either inside or outside the United States to a bank in the United States. 42. Controlled Disbursement Subscriber Service Under the Controlled Disbursement Subscriber Service, we act as your agent to open and maintain a deposit account with our servicer ("Servicer") ("Controlled Disbursement Account"). Writing checks on the Controlled Disbursement Account is the only activity permitted on the Controlled Disbursement Account. You must also maintain a funding account ("Funding Account") with us and must maintain sufficient Hinds in the Funding Account to fund all activity in the Controlled Disbursement Account. So long as there are sufficient funds in the Funding Account, we will make deposits to the Controlled Disbursement Account in an amount adequate to meet each day's presentments. (a) Required Documentation You must complete and return to us account application documents to open an account with Servicer. You agree to provide whatever information and authorizations are necessary to allow us to act as your agent in opening and controlling the Controlled Disbursement Account, including obtaining all account records on the Controlled Disbursement Account. As your agent, we have the exclusive right to make deposits to and to manage the Controlled Disbursement Account. This includes, without limitation, the right to issue return or stop payment instructions with respect to checks written on or presented against the Controlled Disbursement Account. Effective; April 23. 2018 BANKth'eWEST Paqe 22 of 54 BNP PARIBAS Cash Management Terms and Conditions (b) Information Reporting The Servicer requires that you must agree to subscribe to and maintain a subscription to one of our electronic information reporting Services. On each Servicer's Banking Day which is also a Banking Day, we will receive information from Servicer regarding the funding requirement on your Controlled Disbursement Account We will make this Information available to you by 7:45 a.m. Pacific Time on each of our Banking Days. We will determine the collected balance in your Funding Account as of 11:00 a.m. Pacific Time. If there is a sufficient positive collected balance to cover the day's presentments or if other acceptable arrangements have been made with us to cover presentments against the Controlled Disbursement Account, we will Instruct Servicer to allow the checks to be paid. We will, then debit the Funding Account for that day's presentments, if, however, the collected balance In your Funding Account is insufficient, we may instruct Servicer to dishonor one or more of the checks presented against the Controlled Disbursement Account that day. You understand and agree that Servicer will follow our Instructions regarding payment or dishonor of checks presented against the Controlled Disbursement Account. If we instruct Servicer to honor any check for payment against Insufficient funds or if Servicer honors any check against insufficient funds, you Vinll hold us harmless from any losses sustained. If Servicer dishonors any checks presented based on either instructions from us or if there are insufficient funds to honor the checks or if the check does not pass the Servicer's check verification procedures, you agree to hold us harmless from any and all losses, claims or damages you may have or assert as a result of the dishonor of the check(s). (c) Pre-Fund In the event that we are olosed on one of Sen/leer's Banking Days, you agree to pre-fund the amount which we reasonably determine to be your average daily disbursement activity amount We will notify you of the pre-funding amount prior to our closed Banking Day. The pre-funding amount and actual amount needed to fund the Servicer (shortages owed by you to us and overages owed by us to you), shall be settled on our next Banking Day. You agree you are not entitled to and will make no claims for compensation from either Servicer or us for excess prefunding amounts. (d) Returned Checks We resenre the right to instruct Servicer to retum unpaid any check presented for payment against the Controlled Disbursement Account in the event that (i) there are insufficient positive collected ftjnds in the Funding Account to cover the checks presented on the Controlled Disbursement Account, (ii) debits cannot be posted because the Controlled Disbursement Account is closed or because of any other condition or (ili) any communications failure or other condition prevents us from monitoring the checks presented for payment at Servicer. If we should instruct Servicer to pay those checks, you must pay us in immediately available funds. (e) Stop Payments You shall notify us no later than 1:45 p.m. Pacific Time each Banking Day of any checks drawn on the Controlled Disbursement Account upon which you request a stop payment. We will notify Servicer of any stop payment orders In the manner and within the time limits as have been established between us and Servicer. Stop payment orders received by us after 1:45 p.m. Pacific Time will be effective beginning on our next Banking Day or, if applicable, on Servicer's next Banking Day. You agree to give us written confirmation of all verbal or telephonic stop payment orders within 14 Banking Days after the day upon which the order is made, and you understand and agree that failure to give timely written confirmation may cause the stop payment order to expire. Should you fail to furnish timely written confirmation of a verbal or telephone stop payment order, we may in our absolute discretion either cancel the stop-payment order or leave it in place. (f) MiOR Encoding All checks to be used in connection with the Controlled Disbursement Account shall be magnetically encoded to include serial number, transit routing number (043301601 for Servicer Pittsburgh accounts) and account number. We shall provide you with Servicer's encoding specifications for checks prior to the initial order. You must supply us with a group of fifty (50) voided checks from the initial order and from each reorder. These checks are for testing purposes and will be returned to us with Servicer's findings. Servicer has the right to approve the form of all checks utilized in connection with the Service. (g) . Liability You and we both acknowledge and agree that Servicer is not obligated to and will not verify or confirm the propriety Effective;23,2018 I I BANKthe\A^EST Page 23 of 54 ' ' BNPPARIBAS Cash Management Terms and Conditions or correctness of any action or omission by either you or us. (h) Special Rules Governing Controlled Disbursement Account with Servicer The terms and conditions outlined in our current Deposit Account Disclosure for Business Accounts shall be deemed to apply to all Controlled Disbursement Accounts. The following provisions shall also apply. In the event of a conflict between this Booklet and the Deposit Account Disclosure for Business Accounts the terms in this Booklet and the User Materials shall control. (h)(i) If you authorize action by any form of communication, such as telephone, online or in person, or if an applicable security procedure calls for authorization by any form of communication, Servicer can rely on persons identifying themselves by the designated form of communication as authorized individuals. (h)(ii) Servicer reserves the right to charge any of your accounts with it if an item deposited is dishonored, returned or not paid even if Servicer has not sent to you notice of the dishonor. (h)(iii) Stop Payment requests on items issued from a Controlled Disbursement Account may be placed through us or via the Web and must be received prior to the cutoff hour established from time to time. Both Servicer and we require a reasonable time to act on stop payment requests. Reasonable time shall mean at least until the next Banking Day following receipt of the stop payment request. (h)(iv) The terms and conditions regarding the Controlled Disbursement accounts shall be governed by the laws of^e Commonwealth of Pennsylvania. (1) Alternative Check Storage Service With this Service, you may receive a CD-ROM of checks presented against your Controlled Disbursement Account(s). 43. Deposit Concentration Service With this Service, you may initiate Payment Orders to transfer funds from your deposit accounts at other U.S. financial institutions to your deposit accounts with us. You must meet any conditions on these transfers imposed by the other financial institutions. 44. Direct Delivery of Checks We make available the ability to make deposits to a processing center rather than to one of our branches. All deposits made pursuant to this Service must meet the standards set in the User Materials. Deposits not prepared in accordance with the User Materials may be rejected or delayed and we may impose additional fees for handling non-conforming deposits. (a) Courier You must arrange with a courier for tiie pick up and delivery of your non-cash deposits to a designated location. The courier acts as your legal agent. All items in the possession of the courier legally are considered to be in your possession until physically released to one of our authorized locations. (b) Deposit Recreation You should be prepared to recreate your deposits in the unlikely event that your items are lost in transit. We will not be responsible for items lost in transit. Effective. April 23, 2018 ESI BANKth'eWEST Paqe24of54 BNPPARIBAS Cash Management Terms and Conditions 45. DirectPav Manager (a) Service Our DirectPay Manager Service is an application which allows you to perform multiple functions as a merchant to initiate both ACH debit Entries and credit Entries to consumer or business accounts using an automated system. You may initiate one-time or recurring entries. The service also enables you to initiate transactions to Debit or Credit Cards. Entries may be made using an online tool called Virtual Terminal, add a 'Pay Now' button to a website, scan checks for ACH Conversion and swipe Debit/Credit Cards for various Card transactions. (b) Compliance When using this service and initiating ACH or Card Entries, you must remain in compliance with the operational rules of the National Automated Clearing House Association ("NACHA"), any card issuer rules, such as VISA® International and MasterCard® International rules; all Federal, State and Local laws, rules and regulations that govern ACH Entries, including but not limited to the NACHA Rules, Federal Reserve Regulation E, all applicable Federal Reserve Operating Circulars, Title 31 of the Code of Federal Regulations Part 210 and regulations and requirements of the Office of Foreign Assets Control ("OFAC") (c) Authorization You shall obtain authorization from each Receiver prior to requesting an Entry to that Receiver's account. You shall retain proof of each Receiver's authorization for a period of two (2) years after receipt or termination of the authorization, whichever comes later, or for the appropriate period designated by the Rules and Regulations. (d) Submitting Entries You shall submit, by facsimile, email or regular mail, fully executed Receiver's authorization forms In a accordance with the specifications and forms provided by us from time to time; (ii) Check Conversion-Merchants shall, through the use of a check reader and POS terminal, create a Debit Entry that will be transmitted to us (ill) All others shall create a file or electronic message containing any Entry(ies) in accordance with the specifications and forms provided by us from time to time, depending upon the specific format, and deliver the file or message to us via a pre-approved method, which could include, electronic transmission. You will be responsible for the correctness, both as to content and form, of all Entries submitted to us. If any Entry is not readable, out of balance, or unprocessable, it is your responsibility to correct and resubmit the Entry to us. You must deliver each ACH Entry or file of Entries to us no later than (5:00 PM PT] of the second business day before the Effective Entry Date or in accordance with the schedule we provide. With respect to On Us Entries, the relationship t>etween you and us will be governed by the Rules and, to the extent applicable, we agree to assume all the rights and obligations of both an ODFI and a RDFI, and you agree to assume the obligations of an Originator and to make the same warranties to us as the RDFI as we would be required to make pursuant to the Rules where we are the ODFI. (e) initiate Transmission of Reports and Entry Files You are solely responsible for communicating with us to receive daily reports and/or Entry files. We are under no obligation to initiate a transmission of data to you. (f) Processing Limits We may impose a limit on the dollar amount of Entries we will process for you. This limit may be changed by us from time to time, upon notice to you. The notice is effective when given or at such later time as is provided in the notice. If you exceed the established limit, we may suspend Entry processing. (f)(i) In some cases, our DirectPay Manager Services allow you to act as a Service Bureau Merchant, which means you are originating ACH Entries on behalf of another merchant as Originator, as a Check Conversion Merchant, which means you are a merchant originating ACH Debit Entries by means of a check as a sourre document, or as a processor of credit card and ATM/debit card transactions. These Services are subject to the terms and Effective: April 23.2018 BANKtheWEST Page25of54 BNP PARIBAS Cash Management Terms and Conditions conditions for Third-Party Senders under a separate agreement. If you are processor of credit card and ATM/debit card transactions, you will also need to sign an agreement with a credit card processing third-party service provider. 46. Electronic Commerce Service fECSl The Electronic Commerce Service ("ECS") automates the exchange of business and financial information between you and your trading partners using Electronic Data Interchange ("EDI"). ECS permits you to receive the accompanying EDI information from inbound ACH payments (you are the "receiver") in a reporting format you request, or to originate outbound ACH payments from an EDI X12 (820 and 835) formatted payment file (EDI X12 translation into NACHA formatted payment file) ("EDI X12 File(s)"), as outlined below. (a) EDI Reporting ECS services allows the accompanying information contained in ACH payments received by you (as the "receiver") to be reported back to you via fax, secure data transmission or our Online Banking Services. You must provide us the applicable accounts and information, the receiving vendor, and such other information as we may reasonably request. You acknowledge that the data provided to you by us contains the information sent by the Originator (as defined in Section 52). We are not responsible for data omitted by the Originator. (b) EDI X12 File Translation Into NACHA formatted Payment Files ED! X12 File Translation allows you or a third party contracted by you to generate EDI X12 Files and deliver such EDI X12 Files via transmission to our third party servicer. The third party servicer will (i) translate the EDI X12 Files into the required NACHA format; (ii) deliver the EDI X12 Files to us for settlement to your account; and (iii) present the EDI X12 Files to the ACH network and RDFI(s) (as defined in Section 52) for posting to the recipient accounts. EDI X12 Files that are received and converted into NACHA format for processing and distribution to the ACH Operator by us are considered ACH Entries and will be transmitted and settled in accordance with the ACH Requirements set forth in Section 52 In the event you use a third party to create and transmit the EDI X12 Files, such third party will act as your authorized representative and you will be solely responsible for ensuring that your third party complies with all of the requirements on your behalf. The EDI XI2 Files must be formatted according to standard EDI file specifications (which are not furnished by us). All new implementations will require successful file testing before going live. All cutoff times, credit limits, exceptions, and processing rules found in Section 52 govern the handing of the NACHA formatted files. 47. Electronic Deposit Services Our Electronic Deposit Services ("EDS") allow you to use software provided by us to create electronic images of paper checks and drafts ("Items") as described in the Tenns and Conditions and in the User Materials and other guidelines as we may communicate from time to time (each, an "Electronic Image") and to transmit an electronic file of such Electronic Images and other information (collectively, the "Electronic File") to us for deposit to your checking account with us ("EDS Account"). After we receive your Electronic File, we, at our sole option, use the Electronic File either: (a) to create substitute check(s), that we present to the bank on which the Paper Item is either: (i) drawn or (ii) payable at or through (each, "Paying Bank"); or (b) to generate one or more electronic files (from the original Electronic File) for presentment directly or indirectly to Paying Bank, (a) Conditions to Provision of the Service As conditions to our providing the Electronic Deposit Services, you agree that you will: (a) maintain your EDS Account and any other deposit accounts with us in good standing: (b) meet credit standards established by us from time to time and provide financial information as requested by us from time to time; and (c) comply with the User Materials and other guidelines and restrictions regarding the Electronic File as we may communicate to you from time to time. You also agree that, absent our express written consent, you (i) will not deposit to any personal account any item that is made payable to any business, (ii) will only deposit items in your EDS Account that are made payable in the name in which your EDS Account is titled, and (iii) will not deposit items in your EDS Account that are payable jointly to two or more persons or to any business in which two or more persons hold an interest unless the same persons hold the same interests in the account in which the items are deposited. Effective; April 23, 2018 BANKthe WEST Page 26 of 54 BNP PARIBAS Cash Management Terms and Conditions (b) License Grant As part of the Service, Bank will provide guides, and other information about the Service ("Documentation'), the hardware and Licensed Software. Customer is granted a non-exclusive, royalty-free (except for any Bank fee for the Service), non-transferable, limited and revocable right to use the Documentation and Licensed Software solely as a component in the Service. The Documentation and Licensed Software be used solely as contemplated by this Terms and Conditions and shall at all times remain the sole and exclusive property of Bank and Customer shall have no right, title or interest therein except as expressly provided in this Terms and Conditions. Bank and any third party claiming through Bank reserve the right to protect its rights, title and interest in and to the Documentation and Licensed Software by enforcing its rights against Customer directly. This license shall terminate when the Terms and Conditions is terminated. (c) No Grant Nothing, in this Terms and Conditions shall be construed as a grant of any rights under any patent, mask work right, copyright, trademark, service mark or license. Effective: April 23,2018 i^BII BANKthe^A^ESX Page 27 of54 BNPPARIBAS Cash Management Terms and Conditions (d) Creating Electronic Images and Transmitting Your Electronic File to Us. You will use hardware meeting our specifications and our Electronic Deposit Service software to scan items that you wish to deposit to your EDS Account by means of EDS and to transmit your Electronic File to us. The format of your Electronic Fiie must meet our Electronic Check File specifications as established by us from time to time. (e) Disposition of Imaged Checks You agree that all Items belong to you and not to us and that those items shall be handled in accordance with the Terms and Conditions and any User Materials. After receipt by us of any transmission by you to us of imaged Items for deposit to your EDS Account, we will acknowledge by electronic means receipt of your transmission. Your electronic transmission Is subject to proof and verification. If you do not receive an electronic notice of receipt wthin one (1) hour of your transmission, you agree to contact your Bank representative. You agree to retain the originals of all imaged items after validation in accordance with commercially reasonable standards and with your internal procedures for not less than fourteen (14) calendar days or for such time as is required by and in accordance with applicable law, statute, or regulation. Thereafter, in a commercially reasonable manner, you will destroy the originals of all such imaged Items. You agree to take commercially reasonable steps to safeguard the originals of such imaged Items until such time as they have been destroyed. (f) Responsibility for Multiple Deposits of the Same Item You agree to implement commercially reasonable procedures to ensure that no Item is deposited more than once via electronic or other means, either vwth us or with any other financial institution, whether intentionaiiy or unintentionally, whether as a result of fraud for any other reason whatsoever. You agree that the aggregate amount of any Items which are deposited more than once vwii be debited from your EDS Account, and to the extent funds in your EDS Account are insufficient to cover such amount; any balance shall be debited by us from any of your other deposit accounts as determined by us in our sole discretion. You ftjrther ackno\A^edge that you, and not we, are responsible for the processing and handling of any original items which are imaged and deposited utilizing EDS and you assume all liability to the drawer of any item imaged using EDS or liability arising from our printing of any substitute check from those images. (g) Adjustments You agree that in the event that an electronically captured Item is captured for an incorrect amount, we may make a credit or debit adjustment to your account in order to correct the error. In the event that the adjustment amount is $60 or less, the correction cannot be made through the electronic system, and you agree to reconcile the correct amount directly with the maker of the item. (h) Processing Your Electronic File If you transmit your Electronic File to us before the cut-off time we separately disclose to you on any day which is a Banking Day, we will review and, if appropriate, process your Electronic File on that Banking Day. If you transmit your Electronic File to us after the cut-off time on any Banking Day, we will review and, if appropriate, may process your Electronic File on the next Banking Day. (i) Exception Items When we review and process your Electronic File, we may reject any Electronic Image that we, in our sole discretion, determine to be ineligible for EDS (each, an "Exception Item") including, without limitation, Electronic images of any item not payable to you or as identified in above. Electronic Images of Items drawn on banks located outside the United States, items drawn on U.S. banks in foreign currency, Electronic Images that are illegible (due to poor image quality or otherwise). Electronic Images of Items previously processed. Electronic Images previously converted to substitute checks, and Electronic Images with unreadable MICR infomnation. Each Banking Day on Vi1;)ich we review and process your Electronic File, we will notify you of all Exception Items. You agree that If you wish to attempt to deposit any Exception Item to any of your deposit accounts with us, you will only do so by depositing the original Paper Item on which the Exception Item is based. You acknowledge and agree that even if we do not initiaily identify an Electronic Image as an Exception Item, the substitute check created by us therefrom may nevertheless be Effective:April23,2018 I I BANKtheWEST Page28of54 BNPPARIBAS Cash Management Terms and Conditions returned to us because, among other reasons, the Electronic Image is deemed illegible by Paying Bank. Our failure to identify an Exception Item shall not preclude or limit the obligation of you to us. In the event an Electronic Image is an Exception Item because it is illegible or otherwise unusable by us, you must either provide a usable original or copy or, if the original or copy is unusable, obtain a usable document from the maker and submit that usable document to us. Failure to provide a usable version will result in the Exception Item being debited ti'om your EDS Account. (j) Your Special Representations and Warranties for Each EDS Deposit You represent and warrant to us for each EDS deposit G)(i) You vwll use EDS only for Items that are payable to or endorsed or deposited by you and that are not ineligible for any of the reasons described above as Exception Items. G)(ii) You will mafntaln control over and responsibility for retention and destruction of original Items. In that regard, you are responsible for the safekeeping of all original Items and other sensitive information in accordance with applicable law and commercially reasonable industry standards. G)(iii) You vwll destroy original Items from which you have previously created and submitted to us an Electronic Image In accordance with the rules stated in the Disposition of Imaged Checks section. (j)(iv) You vil! maintain control over and responsibility for any and all sensitive electronic data relating to consumer information. Said data includes but is not limited to consumer names, addresses, and account numbers. Pursuant to the previous paragraph. You are responsible for the safekeeping of all electronic data and notification of any compromise of such data. (j)(v)' You viflll not submit any duplicate Electronic Images to us. G)(vi) You will not deposit to your EDS Account or otherwise negotiate any original Item from which you have prevriously created and submitted to us in an Electronic File or which was previously presented at another bank, and shall not deposit to any account or othenwise negotiate at another bank any original Item which you have previously submitted to us an Electronic File, unless we have notified you that the Electronic Image is an Exception Item. G)(vil) You will transmit to us only Electronic Images that are suitable for processing, including, but not limited to. Electronic Images that are legible and contain readable MICR data. G)(viii) You agree to notify us immediately if duplicate items are transmitted to us using EDS or if a duplicate deposit is made either to us or to any other financial Institution. You agree to cooperate with us in identifying duplicate items. G)(ix) You agree to not reverse, decompile or reverse engineer the Licensed Software. G)(x) You agree to use commercially reasonable efforts to protect and secure the Documentation and Licensed Sof^are against, and prevent any improper use and/or theft thereof, (j)(xi) You shall not, without our consent, combine Into any system, the hardware or Licensed Software, and that the hardware and Licensed Software shall be used exdusively in accordance with the Documentation. (j)(xii) You agree to, upon our request following termination of the Service, return to us the Licensed Software and Documentation at a time and in the manner agreed upon by us. (k) Availability of Items; Rules Governing Items (k)(i) You agree that Items deposited to your EDS Account will be made available to you on the schedule provided to you in your User Materials. Effec^ve: April23,2018 I I BANKt%;WEST Page29of54 ' ' BNPPARIBAS Cash Management Terms and Conditions (k)(ii) You agree that Items deposited to your EDS account are governed by the Uniform Commercial Code just as if the Items had been deposited to your account in paper form. 48. image Clearing Service. (a) Description of Service. Our image Clearing Service ("ICS"} allows you to use your own hardware and software to create electronic images of paper checks and drafts (paper checks and drafts shall be called "Paper items") as described in these Terms and Conditions and in the User Materials and other guidelines as we may communicate from time to time (each, an "Electronic Image") and to transmit an electronic file of such Electronic Images and other information (collectively, the "Electronic File") to us for deposit to your checking account with us ("ICS Account"). After we receive your Electronic File, we, at our sole option, use the Electronic File either: (a) to create substitute check(s), that we present to the bank on which the Paper Item is either: (i) drawn or (ii) payable at or through (each, "Paying Bank"); or (b) to generate one or more electronic files (from the original Electronic File) for presentment directly or indirectly to Paying Bank. (b) Conditions to Provision of the Service. As conditions to our providing the Image Clearing Services, you agree that you will: (b)(i) maintain your ICS Account and any other deposit accounts with us in good standing; (b)(ii) meet credit standards established by us from time to time and provide financial information as requested by us from time to time; (b)(iii) use the Service for you alone and not for any third party, absent our express written consent,and (b){iv) comply witfi the User Materials and other guidelines and restrictions regarding the Electronic File as we may communicate to you from time to time. You also agree that you (b)(v) will not deposit to any personal account any item that is made payable to any business (without pre approval by your Relationship Manager, (b)(vi) will only deposit items in your ICS Account that are made payable in the name in which your ICS Account is titled, and (b)(vii) will not deposit items in your ICS Account that are payable jointly to two or more persons or to any business in which two or more persons hold an interest unless the same persons hold the same interests in the account in which the items are deposited. (c) Creating Electronic Images and Transmitting Your Electronic File to Us. (c)(i) You will use your hardware and software to scan Items that you wish to deposit to your ICS Account by means of the ICS Services and to transmit your Electronic File to us. The format of your Electronic File must meet our Electronic Check File specifications as established by us from time to time. (c)(ii) You are responsible for ensuring the Electronic Image is a legible, accurate representation of the front and back of the eligible check. Electronic Images must meet the image standards, as outlined in our Image Clearing Services File Specifications document. You also are responsible for ensuring the MICR line information from the original check is accurately scanned, entered or repaired for each Electronic Image. (c)(iii) You recognize that a Electronic Image may not capture or include all security features contained in the original check, such as watermarks. You are responsible for any loss or failure to collect a Electronic Image that Effective: April 23. 2018 BANKtheWEST Page 30 of 54 BNP PARIBAS Cash Management Terms and Conditions results from an ihaccurate or illegible Electronic Image or your failure to provide full and correct MICR data or dollar amount for a Electronic Image. (c)(iv) You will transmit Electronic Images to us according to the transmission deadlines provided to you by us from'time to time. A Electronic Image file shall not be deemed received by us until we receive the Electronic Image file. (d) Disposition of Imaged Checks. You agree that all Paper Items belong to you and not to us and that those Paper Items shall be handled in accordance with these Terms and Conditions and any User Materials. After receipt by us of any transmission by you to us of imaged Items for deposit to your ICS Account, we will acknowledge by electronic means receipt of your transmission. Your electronic transmission is subject to proof and verification. If you do not receive an electronic notice of receipt within one (1) hour of your transmission, you agree to contact your Bank representative. Generally, the rejection of any Item wll be posted within one business day but, we reserve the right to post a rejection of any Item at any time. You will retain the original of all original checks which you image through the Service for a reasonable period of time as determined by you and in accordance with all applicable state and federal laws and regulations, but in no event less than fourteen (14) calendar days. This 14-day retention requirement is a minimum requirement and may not offer you the legal protection you need. You should consult with your own legal counsel in establishing a minimum retention procedure. You agree to safeguard the originals of such imaged checks until such time as they have been destroyed. (e) Responsibility for Multiple Deposits of the Same Item. You agree to implement commercially reasonable procedures to ensure that no Item is deposited more than once via electronic or other means, either with us or with any other financial institution, whether intentionally or unintentionally, whether as a result of fraud for any other reason whatsoever. You agree that the aggregate amount of any Items which are deposited more than once vwll be debited from your ICS Account, and to the extent funds In your ICS Account are insufficient to cover such amount, any balance shall be debited by us from any of your other deposit accounts as determined by us in our sole discretion. You further acknowledge that you, and not we, are responsible for the processing and handling of any original items which are imaged and deposited utilizing.the ICS Services and you assume all liability to the drawer of any item imaged using the ICS Services or liability arising from our printing of any substitute check from those images. (f) Adjustments. You agree that in the event that an electronically captured Item is captured for an incorrect amount, we may make a credit or debit adjustment to your ICS Account In order to comect the error. In the event that the adjustment amount is $50 or less, the correction cannot be made through us, and you agree to reconcile the correct amount directly with the maker of the item. (g) Processing Your Electronic File. If you transmit your Electronic File to us before the cut-off time, as set forth in the User Materials, on any day which is a Banking Day, we will review and, if appropriate, process your Electronic File on that Banking Day. If you transmit your Electronic File to us after the cut-off time on any Banking Day, we will review and, if appropriate, may process your Electronic File on the next Banking Day. (h) Exception Items. When we review and process your Electronic File, we may reject any Electronic Image that we, in our sole discretion, determine to be Ineligible for the ICS Services (each, an "Exception Item") including, without limitation. Electronic Images of Items drawn on banks located outside the United States, items drawn on U.S. banks in foreign currency. Electronic Images that are illegible (due to poor image quality or otherwise). Electronic Images of Items previously processed. Electronic Images previously converted to substitute checks, and Electronic Images with unreadable MICR information. Each Banking Day on which we review and process your Electronic File, we will notify you of all Exception Items. You agree that if you wish to attempt to deposit any Exception Item to any of your deposit accounts Effective:April23.2018 I I BAN1CTME^A^ESX Page31of54 ' ' BNPPARIBAS Cash Management Terms and Conditions with us, you will only do so by depositing the original Paper Item on which the Exception Item is based. You acknowledge and agree that even If we do not initially identify an Electronic Image as an Exception Item, the substitute check created by us therefrom may nevertheless be returned to us because, among other reasons, the Electronic Image is deemed illegible by Paying Bank. Our^ilure to identify an Exception Item shall not preclude or lirhit the obligation of you to us. In the event an Electronic Image is an Exception Item because it is illegible or othePiVise unusable by us, you must either provide a usable original or copy or, if the oiiginal or copy is unusable, obtain a usable document from the maker and submit that usable document to us. Failure to provide a usable version will result in the Exception Item being debited from your ICS Account. (I) Funds Availability. We shall make funds from accepted Electronic Files available according to our funds availability schedule and the Deposit Account Disclosure Agreement for Personal or Business Accounts, as appropriate. Our funds availability schedule will be provided to you upon request and may be amended by us titim time to time. (j) File Suspension (j){i) The Bank may request to suspend the submission of files wth at least twenty-four (24) hours written notice to you if continued submission of files is or will be commercially unviable. Such notice shall provide in reasonable detail the reasons that the submission of files has been suspended. Upon receipt of such notice and request you shall consent or object to the suspension in writing as promptly as possible; provided that the Bank shall consent if based on the request it can reasonably be expected that continued submission of. files would have material adverse impact on check processing. 0 )(ii) The foregoing notwithstanding, you shall have until the end of the 24-hour period to propose a remedy to the stated problem, and the Bank will give due consideration to the solution and consent or object to implementation of such solution, consent not to be unreasonably withheld. The parties agree to use commercial best efforts to resolve any problem and end any suspension of the submission of image files as promptly as possible. The Bank shall process paper items until image submission is resumed. The Bank shall give 24 hours notice of the intention to resume image submission processes, which period shall exclude weekends and holidays (k) Your Special Representations and Warranties for Each ICS Deposit You represent and warrant to us for each ICS deposit: (k)(i) You will ensure the Image Is an accurate representation of all information on the front and back of the original check at the time the original check was converted to an Image, and the Image contains all endorsements from the original check; (k)(ii) You will maintain each Image (or related electronic data file) contains a record of all MICR line information required for a substitute check and otherwise satisfies all of the requirements of Check 21 and Regulation CC for the creation and/or transferring of a substitute check created ft^om that Electronic Image; (k)(ili) You will use an image format that adheres to Industry standards, as those standards are changed from time to time. The current standards will be outlined in the Bank of the West's Image Clearing Service File Specifications document (k)(iv) You will use the ICS Services only for Items that are payable to or endorsed or deposited by you and that are not ineligible for any of the reasons described above as Exception Items. (k)(v) You will maintain control over and responsibility for retention and destruction of original Items. In that regard, you are responsible for the safekeeping of all original Items and other sensitive information in accordance with applicable law and commercially reasonable industry standards. (k)(vi) You will destroy original Items from which you have previously created and submitted to us an Electronic Image in accordance with the rules stated in the Disposition of Imaged Checks section. Effective: April 23.2018 BANKt%'eWEST Paae32of64 ' ' BNPPARIBAS ^ Cash Management Terms and Conditions (k)(vii) You will maintain control over and responsibility for any and all sensitive electronic data relating to consumer information. Said data includes but is not limited to consumer names, addresses, and account numbers. Pursuant to the previous paragraph, You are responsible for the safekeeping of all electronic data and notification of any compromise of such data. (k)(viii) You will not submit any duplicate Electronic Images to us. (k)(ix) You will not deposit to your ICS Aoiount or otherwise negotiate any original item from which you have previously created and submitted to us in an Electronic File or which was previously presented at another bank, and shall not deposit to any account or otherwise negotiate at another bank any original Item which you have previously submitted to us an Electronic File, unless we have notified you that the Electronic Image is an Exception Item. (k)(x) You will transmit to us only Electronic Images that are suitable for processing, including, but not limited to, Electronic Images that are legible and contain readable MICR data. (k)(xi) You agree to notify us immediately if duplicate items are transmitted to us using the ICS Services or if a duplicate deposit is made either to us or to any other financial institution. You agree to cooperate witii us in identifying duplicate items. (I) Testing The parties will agree upon testing to be performed whenever software or hardware modifications or enhancements, initiated by either party, may affect the creation and processing of ICS files. Both parties will make their best effort not to impact the accuracy of the ICS file formats. 49. ImaaeExpress Services Our ImageExpress product provides you with copies of paid checks, either online or by CD-ROM. ImageExpress CDROM offers the convenience of check storage of your paid check images on CD-ROM. ImageExpress Remote Inquiry offers on line viewng of paid and deposited check images from our image archive within 24 hours of the pay date of an item. 50. Online Banking Services Our Internet Banking Services enable customers to use the World Wide Web to access account balances and transaction information and to store this infonnation on their personal computers We also have available a Service that permite you to initiate certain electronic transfers. Your deposit account information that is accessible via the Web is updated each Banking Day and is current as of the end of the previous Banking Day and will include any current Banking Day activity that has been memo posted to the account You agree that application for and use of our Internet Banking Services is subject to all terms and conditions applicable to your deposit agreement{s) with us to the extent they are not inconsistent with the Terms and Conditions. You agree that your request for and acceptance of the Service(s) shall t>e for bona fide and lawful purposes permitted under the Terms and Conditions (including the Service procedures) and to update your software and hardware if necessary to use the Service. (a) Balance Reporting The Balance Reporting Service provides you with online access to linked account balances, transaction, and investments. The Service may be customized to the Services you receive and the information you need (b) Online Bill Payment Services (b)(i) Our online Bill Payment Services allow you to make payments from any Bank of the West checking account (called the "Bill Payment Account"), as follows: (a) A bill payment may be made or scheduled from the Bill Payment Account you designate at a time up to 365 days in advance of the date the payment is to be made (called a "Single Payment") Alternatively, a bill payment may be set up as automatic recurring payments to be made at substantially regular intervals (that is, monthly, quarterly, etc.) in the same amount and to the same payee (called a "Reojrring Payment"). The Bill Payment Account must be a checking account against which you are permitted Effective: April 23. 2018 BANKtheNVEST Page 33 of 54 BNP PARIBAS Cash Management Terms and Conditions to write an unlimited number of checks during each statement cycle, (b) The maximum amount of any one bill payment is the lesser of the current available deposit balance in the Bill Payment Account (plus any available credit in an associated line of credit) or $25,000.00. We reserve the right, at our sole discretion, either to complete or reject any attempted bill payment that exceeds the applicable limit or available balance. Regardless of our decision in ^at regard, your Bill Payment Account may be subject to an overdraft/returned item fee, as stated in the Terms and Conditions. In addition, we reserve the nght to further limit the dollar amount or the frequency of . transactions from any of your deposit accounts for security reasons, without liability to you. (c) Each bill payment must be made in United States Dollars and directed to an Eligible Payee as directed below. (b)(ii) Eligible Payees - All payees you properly select are Eligible Payees except for the foliowing: (a) a federal, state or local government agency, taxing authority or court, (b) a securities broker, (c) a payee located at an address that is not within the United States; and (d) a payee on the Specialty Designated Nationals List as published from time to time by the Office of Foreign Assets Control. We reserve the right to add to the list of payee categon'es that are not Eligible Payees without prior notice when required by law or regulation. If, despite this Agreement, you direct us to make a bill payment payable to a payee that is not an Eligible Payee, you authorize us, at our absolute discretion, either to (a) decline to make the bill payment, (b) make or attempt to make the bill payment and charge the Bill Payment Account against which your bill payment is drawn for the full amount of the payment; or (c) charge the Bill Payment Account against which your payment is drawn for the full amount of the bill payment and freeze the bill payment subject to legal requirements. (b)(iii) Payment Instructions - You must enter your bill payment instructions no later than four (4) Banking Days before the payment due date. Do not include any grace period. If there is not enough time to process your bill payment to reasonably expect the payment to be received by the Payee on or before that date, as determined by the Online Bill Payment Service, you will be so advised and the system will not confirm the payment In such instances, you must either select another due date or make arrangements to make your payment outside of the bill payment system. Any due date you designate that falls on a weekend or holiday will be considered to have been designated to be the previous Banking Day. Neither we nor our Service Provider or any of our other agents are or vwll be responsible for any late charges, extra interest or other charges imposed on you by a payee because of a late payment VWien you have entered and transmitted a bill payment Instruction, you authorize us to deduct the amount of the bill payment from the Bill Payment Account on the process date. We reserve the right to refuse to honor bill payment requests that we believe or suspect (rightly or wrongly) are fraudulent or erroneous. You understand, however, that our exercise of this right will be at our sole discretion, and you should not rely upon us to discover or prevent loss as a result of a fraud or erroneous bill payment (b)(lv) Bill Payments - Your bill payment will be made, at our sole discretion, either by electronic funds transfers • to the payee through the automated clearing house ("ACH"), or by preparing and sending a check to the payee, at the address you specify. Regardless of the method we use to forward the bill payment to the payee, will determine when the amount of the bill payment will be deducted from the Bill Payment Account. Payments Issued by direct check will clear your Bill Payment Account just as a check you wrote yourself. The check will post to your Bill Payment Account and an image will be available via the Information Reporting module of our online Cash Management platform. For payments delivered via electronic funds transfer, the Bill Payment Account vwll be debited on the scheduled due date. Your periodic statement vwll reflect the deduction and will show the date, amount and the name or abbreviated name of the payee. It is important that you include with each bill payment instruction the account number assigned to you by the payee. This number will be included on the check or writh the ACH payment we send to the payee. Without this number, the payee may not know or may have difficulty determining which account is to be credited properly, as the payee will not be receiving a traditional payment coupon along with your payment If the account number at the payee is either omitted or incorrect in any way, we will not be liable for any fees or charges incurred if the payment is not processed in a timely manner. Payees may require return of a payment stub or coupon with your payment and may delay or refuse to process online bill payments because they will not conform to their intemal or contractual payment requirements. We are not responsible for any delay In or refusal with regard to the processing of your bill payment by any payee. Our only responsibility is to assure that we process your payments in accordance vwth the Terms and Conditions. If a payee, for any reason, refuses to accept your bill payment or if, for any other reason, a bill payment cannot be completed, we will reverse the bill payment by re-crediting the amount of the bill payment to the Bill Payment Account unless we notify you othervwse. We are not responsible or liable for any late charges or extra interest or other charges or costs or expenses that may result from the payee's delay in accepting and processing, or the payee's non-acceptance or return of any payment Effective: April 23, 2018 Eai BANKr^'kWEST Pa^e 34 of 54 BNP PARIBAS ^ Cash Management Terms and Conditions {b)(v) Canceling Bill Payments - You can cancel any Single Payment or Recurring Payment by using the Online Bill Payment Service to cancel the payment. In the case of a Recurring Payment, you can skip any next scheduled payments or cancel all Recum'ng Payments to the same payee. You must transmit your request to skip or cancel payments before the Cutoff Time on the process date for the bill payment. If you do not meet that deadline, the Online Bill Payment Service will not process your cancellation Instructions and the bill payment vwll be sent as previously Instructed. This Is because, even though the bill payment may not have reached the payee, It will be too late to stop the process of debiting funds for the payment from the Bill Payment Account and Issuing our ACH instructions or check In favor of the payee. (c) Check Printing Services (c)(i) Our Check.Printing Services allow you to Issue checks ("CPS Checks") from any Bank checking account (called the "Ched< Payment Accounf) using the facsimile signature of an authorized signer. The Check Payment Account must be a checking account which permits the Issuance of an unlimited number of checks during each statement cycle. CPS Checks will bear your Check Payment Account number, the Check Payment Account's owner name and the facsimile of the signature of any authorized signer on the Check Payment Account as selected by us at our sole discretion or as you and we may agree. We reserve the right, at our sole discretion, either to complete or reject any your request to issue a CPS Check If that CPS Check exceeds any applicable limit or the available balance in the Check Payment Account. Without regard to our decision in that regard, your Check Payment Account may be subject to an overdrafVretumed Item fee, as stated In the Account Agreement In addition, we reserve the right to further limit the dollar amount or the frequency of transactions from any of your deposit accounts for security reasons, without liability to you. (c)(ll) You may not issue a CPS Check payable to a payee on the Specialty Designated Nationals List as published from time to time by the Office of Foreign Assets Control. If, despite this agreement, you Issue a CPS Check payable to a payee that is on the Specialty Designated Nationals List, you authorize us, at our absolute discretion, either to (a) decline to make the payment, (b) make or attempt to make the payment and charge the Check Payment Account against which your payment Is drawn for the full amount of the payment; or (c) charge the Check Payment Account against which your payment is drawn for the full amount of the payment and freeze the payment subject to legal requirements. {c)(lii) CPS Checks Issued pursuant to this Check Printing Service will be mailed by us or our Service Provider using United States Postal Service (the "USPS") first class postage or by other mall courier services. Neither we nor our Service Provider will be responsible or liable for delays in the delivery of any CPS Check by the USPS or a mall courier service. Neither we nor our Service Provider or any of our other agents are or will be responsible for any late charges, extra interest or other charges Imposed on you by a payee because of a late payment When you have entered and transmitted a CPS Check request, you authorize us to pay the amount of the CPS Chedt from the Check Payment Account upon presentment. We reserve the right to refuse to honor any CPS Check requests that we believe or suspect (rightly or wrongly) are fraudulent or en-oneous. You understand, however, that our exercise of this right will be at our sole discretion, and you should not rely on us to discover or prevent loss as a result of a fraud or erroneous CPS Check. CPS Checks Issued pursuant to this Service will clear your account just as any check you wrote yourself. The CPS Check will post to your Check Payment Account and an image will be available via the Informafion Reporting module of our online Cash Management platform. Your periodic statement will reflect the deduction and will show the date, amount and frie name or abbreviated name of the payee. Payees may require retum of a payment stub or coupon with a payment, Including a CPS Check, and may delay or refuse to process the CPS Check because the CPS Check does not conform to their Internal or contractual payment requirements. We are not responsible for any delay In or refusal vi/ith regard to the processing of your CPS Check by any payee. Our only responsibility Is to assure that we process your payments in accordance writh the Terms and Conditions. We are not responsible or liable for any late charges or extira Interest or other charges or costs or expenses that may result from the payee's delay In accepting and processing, or the payee's non-acceptance or retum of any CPS Check. (c)(lv) CPS Check requests received by us prior to the established cut-off time will be Issued and mailed on the same Business Day. CPS Check requests received by us after the established cut-off time will be issued and mailed on the next Business Day. For more specific Information on cut-off ti mes, required CPS Check Information and reporting features, please refer to the User Materials. Effective: Apm 23,2018 KM BANKr-ffEWEST Page 35 of 54 ^ BNPPARIBAS Cash Management Terms and Conditions (c)(v) By using the Check Printing Services, you authorize us to pay from funds on deposit with us in the Check Payment Account all CPS Checks and other orders for payment of money signed wth a facsimile or mechanical signature of an authorized signer which reasonably resembles the form provided to us or as you and we may agree from time to time. We may do so regardless of under what circumstances, by whom or by what means the purported facsimile signature may have been affixed. You shall be responsible for the amount of each CPS Check or any check signed with your authorized signer's facsimile signature. You agree to indemnify and hold us (including ours correspondent banks), our parent company, affiliates, and our or their respective directors, officers, employees, or agents thereof, harmless from and against any and all losses, claims, liability, demands and expenses, including attorney's fees, incurred or arising in connection of payment of CPS Checks by us in accordance with this Section. This facsimile agreement shall remain in effect for so long as you use the Check Printing Services. (d) Stop Payment Service (d)(i) You agree to place any stop payment within the time frames and subject to the terms described in the User Materials. We will validate the clearance of paid checks up to one statement cycle in arrears. Any item that clears prior to the current statement cycle requires you to review your records. A stop payment may be placed for an item paid prior to the current statement cycle. (d){ii) A stop payment request will not be effective until we conduct a review for the time period specified in the applicable User Material and we determine that the check has not been paid during that period and if so. we will respond to you with an online status of your request as accepted. A stop payment request terminates at the end of the period designated in the applicable User Materials, unless the Stop Payment Request is renewed or canceled earlier. A stop payment Request is canceled automatically when the account on which the check is drawn is closed even if you maintain other deposit accounts with us. (e) Commercial Loan Reporting The commercial loan reporting function allows you to access commercial loan information via the Internet Banking Services. Accessible information includes, without limitation, commercial loan balances for the current Banking Day as well as loan invoice history information: however, the accessible information is for informational purposes only and is not designed or intended to provide authoritative financial, accounting, investment, or other professional advice which may be relied upon by you for lending transactions nor does it replace your official bank statement. Certain restrictions apply and some commercial loans may not be eligible to be accessed via the Internet Banking Service. For more information on non-eligible commercial loans and accessible information available through the commercial loan reporting function, please refer to the User Materials. 51. Other Electronic Banking Service We offer a line of other online cash management Services that are accessible with software via computer/modem. 52. Payment Orders (Wire Transfers and ACH^ This Service permits you to request and send domestic and international funds transfers. As used in this Booklet, the term funds transfer is equivalent to the ternn "funds transfer" as defined in Uniform Commercial Code, Article 4A. As used in this Booklet, "Payment Orders' include, without limitation, a funds transfer, and amendments and cancellations to a funds transfer. A Payment Order may tie requested for either the same business day or may be dated for a future day (called a value-dated Payment Order). (a) Payment Order You may request Payment Orders from those of your accounts as we agree, in the format, times, and following the restrictions as we may impose from time to time. We may require you to designate whether you wish to conduct repetitive Payment Orders, non-repetitive Payment Orders, or both repetitive and non-repetitive Payment Orders. Our online Cash Management platform allows you to initiate domestic ACH transactions and ACH transactions to Effective: April 23. 2018 BANKTHE^A/ESX Page 36 of 54 BNPPARIBAS Cash Management Terms and Conditions certain foreign countries and wires and international wires in U.S. dollars or take advantage of the exchange rates for foreign currency money transfers. (b) Rejection of Payment Orders You acknowledge that we may reject any Payment Order that does not comply with the Terms and Conditions or with the parameters as are set by us from time to time for Payment Orders. We may reject, without liability, any Payment Order, including a "Value-Dated" Payment Order, if you fail to maintain sufficient collected funds in a designated account or sufficient available funds in a credit line we have made available to you for the arnount of each Payment Order you request (c) Cancellation or Amendment of Payment Order A Payment Order may be canceled or amended only if we have not transmitted the Payment Order or credited the Beneficiary's account To be effective, the communication canceling or amending the Payment Order must (i) comply with the agreed upon security procedures and with such other terms and conditions as we set; and (ii) be received by us at a time and in a manner that gives us a reasonable opportunity to act on the communication. We will have no liability if cancellation or amendment is not effected. (d) Foreign Currency Transactions You acknowledge that foreign curency Payment Orders must be based on a currency that we trade and that all rates of exchange will be the rate in effect at the time the Payment Order is received by us or at any other rate as is agreed to by the parties. Outgoing foreign currency wires are given a Value Date, typically two days ahead of the send date. We require the setting of a Value Date earlier than the settlement date to ensure that the funds can be obtained in the designated currency prior to settlement. If the Payment Order is returned for any reason, you agree to accept any foreign money credit refund in United States Dollars, based on our then-current buying rate converting the currency to United States Dollars on frie date of refund, less any charges and expenses incurred by us. (e) Cross Border Entries You acknowledge that Cross-Border payments must be based on a currency traded by us and that all rates of exchange will be the rate in effect at the time the Payment Order is received by the Bank or at any other rate as is agreed to by the parties. If the Payment Order is returned for any reason. Company agrees to accept any foreign money credit refund in United States Dollars, based on Bank's then-current buying rate converting the currency to United States Dollars on the date of refund, less any charges and expenses incumed by the Bank. (f) Inconsistency of Name and Number You acknowledge and agree that if a Payment Order identifies a Beneficiary or Receiver with a name and account number that do not match, payment of the Payment Order may be made on the basis of the account number even if the name of the account holder for that account does not match the name specified in the Payment Order, and you will be obligated to pay the amount of the Payment Order in such event. (g) Customer Only Transactions You shall not submit a Payment Order on behalf of a third party without our prior written consent (h) Special Security Procedures Special security procedures apply to Payment Orders. Please see Section 14(b} (i) Terms and Conditions Applicable to Payment Orders through ACH Services These Services permit qualifying customers to initiate credit entries or payments to a third party ("Credit Entries") and/or debit entries or collections from a third party ("Debit Entries') all in accordance with this Booklet, the ACH Effective: April 23,2018 I I BANKthe\A^ESX Page 37 of54 ' ' BNPPARIBAS Cash Management Terms and Conditions Rules, and the ACH Requirements. All ACH Services are provided subject to the ACH Requirements, and in the event of any conflict between anything contained in the Terms and Conditions or any Bank policy, procedure, statement or representation, on the one hand, and the ACH Requirements, on the other hand, the ACH Requirements shall prevail and govern. You agree to comply with the ACH Requirements whether or not the Entry is sent through the ACH system (for example, where we are the Receiver's bank in addition to being yoar bank and the transfer is made solely within our own institution and not through the external ACH system, the requirements for authorization under the ACH Requirements must still be followed). You agree to comply with the ACH Requirements as are in effect from time to time, including any requirements governing the proper formatting of Entries Defined terms used herein are to be defined in accordance vwth their definitions in the ACH Requirements. Definitions of su(^ terms are provided herein for convenience only, and the definitions in the ACH Requirements shall control. We may suspend or terminate any ACH Services, including Third-Party Sender Services, at any time upon notice to you In the event we make a determination, in our sole discretion, that continuation of the Services subjects us to unacceptable risks. Suspension or termination of Services does not affect either your or our rights or obligations with respect to Entries initiated prior to such suspension or termination. (i)(i) Originator - When you initiate a Credit Entry or a Debit Entry, you are acting as an Originator of an Entry under the ACH Rules, and we are the Originating Depository Financial Institution ("ODFI") under the ACH Rules. When you originate a Credit Entry to or a Debit Entry from a third party, the third party is a Receiver under the ACH Rules, and the bank that holds the deposit account from which the Entry is debited or to which the Entry is credited is the Receiving Depository Financial institution CRDFi") under the ACH Rules. (i)(ii) Transmittai of ACH Entries - If approved for the ACH Service, you shall transmit Credit Entries and/or Debit Entries, as appropriate, to us to the location(s) and in compliance with the formatting and other requirements provided to you by us. You agree that your ability to originate Entries under this Booklet is subject to exposure limits In accordance with any Funding Limits set by us. (i)(ili) ACH Transaction Exposure Limits - Our internal risk control procedures include a determination of ACH credit exposure limits for all ACH customers. ACH debit exposure limits are also established for customers approved by us for originating Debit Entries. These ACH exposure limits can include, but are not necessarily limited to: (I) total dollar value of Individual ACH files transmitted to us; (ii) dollar value or number of individual ACH Entries within each file; (ill) frequency of origination of ACH files; and (iv) consideration of total exposure to us over multiple settlement dates related to all unsettled files originated by you. You agree to comply wth the exposure limits we estabiish for you from time to time. You understand and agree that any file or file Entry received by us that would exceed any of the exposure limits estabiished for you may, in our sole discretion, be delayed or rejected, and we will have no liability to you for any damages or losses you may incur arising from our eiection to delay or reject such files or Entries. (i)(iv) Processing, Transmittai and Settlement of ACH Entries - We will process Debit Entries and Credit Entries received from you that conform to our estabiished file specifications, transmit such Entries as ODFI to the ACH Operator and settle such Entries, ail in accordance with the ACH Rules. We will use reasonable efforts to transmit • such Entries to the ACH Operator In accordance v\dth the fiie receipt cutoff times and transmission timeframes set forth in our ACH Processing Schedule, as amended from time to time. Ask us for a copy of our current ACH Processing Schedule. In the event Entries are not transmitted on the date of receipt we generally will transmit such Entries on the next Banking Day on which we and the ACH Operator are open for business. We cannot guarantee the day of settlement of any Entries, including On-Us or Same Day Entries. (i)(v) On-Us Entries - If an Entry is received for debit from or credit to an account maintained with us, it is . considered an "On-Us Entry." On-Us Entries often settle sooner than other Entries. Please see our ACH Processing Schedule. Settlement of all Entries is in accordance with and subject to the ACH Rules. (1) (vi) Same Day ACH Entries - if an Entry is received by us with an Effective Entry Date of the current day's date, it wili be considered a "Same Day Entry." The Entry will be distributed to the Fed as a Same Day Entry if it is received prior to the established Same Day ACH cutoff time (see ACH Processing Schedule) and complies with the ACH Rules established for Same Day ACH. if the Entry does not compiy with the ACH rules for Same Day, or is sent and distributed after the established Same Day ACH cutoff, the Entry will automatically be processed as a next day Entry. 0) Payment for Services; Settlement Options 0')(i) Payment for ACH Services - You agree to pay us the charges for ACH Services we provide to you In Effective: April 23.2018 RSI BANKt^'eWEST P3,e 38 of54 BNP PARIBAS Cash Management Terms and Conditions accordance with cur current Fee Schedule, as that schedule is added to, deleted from or otherwise amended from time to time. In addition, you agree to pay us the amount of any sales, use, excise, value added, utility or other similar taxes imposed on such Services (other than taxes imposed on us based upon our income), as well as any fees .for related Services at our standard rates for such Services to the extent such Services are incurred in connection vwth providing ACH Services. Effective: April 23.2018 Eai BANKt^TeWEST page 39 of54 BNP PARIBAS Cash Management Terms and Conditions (j)(ii) Settlement Options - You must pay us the amount of each Credit Entry and each reversal of a Debit Entry on or before the settlement date (the "Settlement Date' as specified in the ACH Rules) for the transaction. G)(ill) Payment Account - We may, vwthout prior notice or demand, obtain payment of any amount due and payable to us for ACH transactions by debiting the accounts designated by you for such transactions (the "Designated ACH Accounts"). Unless we make alternative arrangements with you, the Designated ACH Accounts will also be the accounts to which Credit Entries are credited. You are required to maintain a sufficient balance in the Designated ACH Accounts at all times to cover expected transaction dollars originated by you. In the event there are not sufficient funds in the Designated ACH Accounts to cover your obligations for submitted transactions, including amounts owed to us for reversals and for fees and other amounts owed to us, we may set off or debit such amounts from any other accounts you have with us (including any accounts in which you hold an interest with any other person or entity or in another capacity), whether established at the time the Designated ACH Accounts are established or established at some later time. You further agree that we may, at any time, require you to establish a reserve account (the "Reserve Accounf) into which we may deposit funds withdrawn by us from those other accounts to ensure that you will have sufficient funds to cover your payment obligations for ACH transactions. We will notify you If we require a Reserve Account and if we require any increase in the Reserve Account from time to time. You agree that we are not liable for nonpayment of any checks drawn against accounts from which we withdraw funds in order to fund the Reserve Account. Transactions submitted to us may be delayed until we are able to satisfy ourselves that the funds in the Designated ACH Accounts^will be sufficient to satisfy any funding needs. In the event you terminate your relationship with us or otherwise close Designated ACH Accounts. In our sole discretion, we may continue to hold funds in the Designated ACH Accounte or Reserve Account up to three (3) years or until all outstanding transactions or retums have cleared and the timeframe for rejection or retum has expired. 0)(iv) Funding Limits - We offer both Credit Guidance and Fre-Funding as two methods to providing you vwth Funding Limits. G)(v) Credit Guidance - - If you are approved for a Credit Guidance, we wll settle to your account on the effective date (an "Effective Entry Date' as defined In the ACH Rules) of the Items originated. In the case of Credit Entries, we will debit your account on the Effective Entry Date. In the case of Debit Entries, we will ftjnd your account on the Effective Entry Date. G)(vi) Pre-Fund. - In the event you are not approved for a Credit Guidance, you may be approved to Initiate entries on a pre-furided ("Pre-Funded°) basis. Under this option, before we will transmit Credit Entries to Receivers, your designated deposit account must have sufficient available funds to cover the amount of those Credit Entries. We will utilize the Presentment Date for settlement and will debit funds directly from your designated account on the day Entries are received. You must present Credit Entries to us not less than one banking day prior to the Effective Settlement Date of such Credit Entries. As to Debit Entries, we will fund your designated account for the o^etting amount of those Debit Entries on the Effective Settlement Date. We may place all or a portion of the funds represented by the Debit Entries on hold for a pre-determined number of Banking Days following the Emotive Settlement Date. We vwll provide you with hold terms for Pre-Funded Debit Entries in writing. The pre-determined number of hold days and portion(s) of hold(s) may be adjusted periodically based on your originations and retums. We will advise you if the hold portions and number of days are adjusted. . 0)(vii) Debit Entries on the Effective Settlement Date. - We may place all or a portion of the funds represented by the Debit Entries on hold for a pre-determined number of Banking Days followng the Effective Settlement Date. We will provide you with hold terms for Pre-Funded Debit Entries in writing. The pre-<fetermined number of hold days and portion(s) of hold(s) may be adjusted periodically based on your originations and retums. We will advise you if the hold portions and number of days are adjusted. . G)(viil) Credit Guidance Conversion - We reserve the right to convert you from a Credit Guidance status to a PreFund status at any time, wth or without cause and with or without prior notice. G)(ix) Your Representations and Warranties Regarding ACH Entries - Each time you originate an Entry, you represent and warrant to us that: (i) each person showing as the Receiver on an Entry has authorized the transaction and the debiting or crediting of the designated account in the amount shown and on the Emotive Entry Date designated on the Entry; (ii) such authorization is in writing and signed by or similarly authenticated for all Debit Entries; (ill) you have taken commercially reasonable measures to authenticate the Receiver; (iv) such Effective: April 23.2018 i I BANKt^WEST Page40of54 ' ' BNPPARIBAS Cash Management Terms and Conditions authorization Is operative at the time of transmitta! to us; (v) Entries transmitted to us by you are in accordance with all requirements of this Booklet and the ACH Requirements; (vi) you will perform all your obligations hereunder in accordance with all the ACH Requirements and all other applicable laws and regulations, including the sanctions and laws administered by the federal Office of Foreign Assets Control; (vii) for all Credit Entries, you are bound by and will comply with the ACH Requirements in effect from fa me to time, including without limitation the provision of the ACH Rules that makes payment of an Entry provisional until final settlement and you specifically agree that if settlement is not received, we will be entitled to reverse such transaction. You further agree to indemnify us from and against any losses or expenses we may incur as a result of any breach of these representations and warranties. In the event you violate any applicable Rules or regulations and a fine is imposed on us due to your negligence, vWietiier caused willfully, by negligence or otherwise, we may charge, and you agree to pay, such fine, including fees for research, attorney's charges and other related costs to the violation. (j)(x) Rejection of Entries - We may reject any Entries that do not conform to the requirements set forth herein and in the ACH Requirements and any other standards, guidelines or procedures we may establish from time to time. We riiay also reject any Entry that specifies an Effective Entry Date that is more than 30 calendar days after the date of receipt of the Entry by us. You agree that if we elect in our discretion to process a file or file Entry that would be subject to rejection for any reason, such action does not result in a waiver of our right to reject future files or file Entries that are otherwise subject to rejection. We have the right to reject On-Us Entries that would be subject to rejection or return under the ACH Rules if processed through an ACH Operator. We also have the right to reject any Entry or file that we believe in our reasonable judgment might be contrary to applicable law or that might subject us to unacceptable risk. We vwll notify you by telephone or by another method of such rejection no later than the close of business on the Banking Day on which we would othenwise transmit such file or Entry. We will notify you of such rejections no later than the Banking Day such Entry would otherwise have been transmitted by us to the ACH Operator or. in the case of an On-Us or Same Day entry, the Effective Entry Date. Notices of rejection will be effective when given. We will have no liability to you for any rejection of an Entry or file as provided herein or for failure to provide timely notice of rejection to you. (j)(xi) Disputes with Receivers - In the event that we become involved in any dispute between you and any Receiver(s) relating to any Entry, you agree to hold us harmless and to indemnify us, our officers, directore, employees, and agents against claims, liabilities, and expenses arising out of the dispute. (i)(xii) Cancellation or Amendment of Entries - You have no legal right to cancel or amend any Entry after we receive it, but we will generally use reasonable efforts to act on a request by you for cancellation or amendment of an Entry if we can do so prior to its transmission to the ACH Operator or, in the case of an On-Us Entry, prior to debiting or crediting the Receiver's account. We are not able to cancel or amend any Entry after it has been transmitted to the ACH Operator. 0)(xiii) Permissible SEC Codes - Once approved as an ACH Originator, upon review of your business needs, you will be approved to transmit Entries using specific Standard Entry Class (SEC) Codes. Should you transmit Entries to us using SEC Codes other than those previously approved, at our sole discretion, your file may be rejected and may not be transmitted by us to the ACH Operator or may be transmitted. In either case, you are obligated to comply with all applicable ACH Requirements and applicable laws. G)(xiv) Returned ACH Entries-We will notify you either by phone, electronic transmission or by mail of the receipt of a returned Entry from an ACH Operator no later than one Banking Day after the Banking Day of such receipt. Except for an Entry retransmitted by you in accordance with the ACH Rules, we shall have no obligation to retransmit a returned Entry to the ACH Operator if we complied with the terms of this Booklet with respect to the original Entry. 0)(xv) Notices - We will prowde you with all information, as required by the ACH Rules, with respect to each Notification of Change (NOC) Entry or Corrected Notification of Change (Corrected NOC) Entry received by us relating to Entries transmitted by you. We will provide such information to you vwthln two Banking Days of the Settlement Date of each NOC or Corrected NOC Entry. You are obligated to ensure that changes requested by the NOC or Corrected NOC are made within six (6) Banking Days of your receipt of the NOC information from us or prior to Initiating another Entry to the Receiver's account, whichever is later. Should you receive notice that any ACH pre-notification has been rejected, you agree not to Initiate any Entry until the cause for rejection has been corrected and another pre-notification has been submitted and accepted by the RDFI. You shall cease Initiating Effective: April 23.2018 EiflH BANKtheWEST Page 41 of 543^p paribAS Cash Management Terms and Conditions ) \ / Entries immediately upon receipt of any actual or constructive notice of Receiver's termination or revocation of authority. (j)(xvi) Retums will be monitored for excess activity. You agree to work with us should you have retums that are deemed excessive or if we receive notice from any regulatory or goveming body of excessive retums. , (j)(xvii) Reconciliation of the Designated ACH Account - Entries transmitted by us or credited to a Receiver's account maintained with us will be reflected on your periodic statement for the Designated ACH Account. You agree to notify us within thirty (30) calendar days of any discrepancy between your records and the information - shown on your periodic statement If you do not notify us within thirty (30) calendar days after the first periodic statement on which a discrepancy appears, you agree that we are not liable for any and all losses and/or other discrepancies that result from your failure to give notice wthin such timefirame. You agree that you waive any right to dispute a transaction in tiie event you fail to notify us of the discrepancy within, thirty (30) days after your receipt of the first periodic statement on which the discrepancy appears. G)(xviii) ACH File Transmissions - You may transmit ACH files directly to our ACH department from a personal computer controlled by you or by use of third-party processor engaged by you. You also may transmit ACH files to us through our online Cash Management platform. If you use our online Cash Management Platform, then the procedures for that platform will be provided to you separately, and those procedures will apply. If you do not use our online Cash Management Platform, then the following procedures will apply. In the event you transmit files through a third-party processor, the third-party processor will be acting as your authorized representative and you will be responsible for ensuring that the third-party processor complies with all of the following requirements on your behalf. G)(xix) Authorized Computers - We virill authorize and license you to use one or more computers for transmitting your ACH files to us. You are solely responsible for access by your employees or other authorized representatives to the authorized computers and to the data files maintained on the computer. Your authorized representative vinll be able to access the ACH system by utilizing prearranged logon procedures consisting of user identification t names and passwords. Your authorized representative will provide us with verification of the totals contained in J the transmission by communicating totals via telephone to our automated voice response system ("VRS"). Procedures and personal identification numbers for use of the VRS will be provided to you separately. In the event you or your authorized representatives are unable to communicate totals to us in this manner, your authorized representative may send a facsimile notification to us containing the file totals. Facsimiie notifications should be provided on your company letterhead, reference the exact name contained in our records as accountholder and contain an authorized signature. G)(xx) ACH Scheduling Service - If you use our ACH Scheduling Service, we \mII anticipate the receipt of an ACH file transmission from you on each scheduled processing date identified by you in writing on our form of ACH File ' Transmission Calendar (subject to our acceptance and approval). You are responsible for ensuring that we receive a transmission on each scheduled processing date or for notifying us if a transmission vwll not take place on a scheduled processing date. You are also solely responsible for ensuring that we receive any new or updated processing schedules as required. We are not responsible for untimely or erroneous ACH file transmissions that occur as a result of changes to your established processing schedule if not communicated to us in a timely manner and accepted and approved by us. G)(xxi) ACH Totals - We will verify that the file totals agree with the information given to us by you by telephone or facsimile transmission or other previously agreed upon media. In the event of a discrepancy in the totals, we will contact your specified authorized representative. If an authorized representative is not available, we will not process the file until an authorized representative can be contacted on the following Banking Day. G)(xxii) ACH Data Integrity - You are solely responsible for the accurate creation, modification, and deletion of the account information maintained on your personal computer and used for ACH transactions. You agree to comply with any written procedures provided to you by us for the creation, maintenance and initiation of ACH transactions. G)(xxiii) Retention of Records - You must retain data on ail files adequate to permit us to recreate all Entries for a period of at least thirty (30) calendar days following the date you transmit the files to us for processing, and you must provide copies to us upon our request You must retain all written authorizations for ACH Entries for a period \ of at least two years following the date on which such authorizations expire. For recurring Entries, you must retain Effective; April 23,2018 I I BANKTHE^A^ESX Page 42 of64 BNPPARIBAS Cash Management Terms and Conditions authorizations for a period of not less than two years following termination or revocation of the original authorization. If you originate RCK Entries, authorizations must be maintained for at least seven years folloviring the settlement date. (i)(xxiv) Reversing ACH Entries - In the event of duplicate or erroneous files, as defined in the ACH Rules, we will allovy you to send reversing Entries. Reversals must be made within five (5) days of the original settlement date per the ACH Rules. You must notify the Receiver by the end of the day on the settlement date for any reversed Entry submitted by you. You may make this notification by any reasonable method you choose. (j)(xxv) Duty to fumish Documents - From time to time, we may be required to obtain Receiver authorizations. You agree to fumish us vwth copies of Receiver authorizations or other documents within five (5) business days of our initial request. Documents shall be provided by you to us at your own expense. (k) Money Transfer Service You can initiate the transfer of funds from your accounts with us using our Online Cash Management platform. Using this online Money Transfer Service, you can transfer funds and adjust balance levels in your accounts and shall pay Bank charges for the Services provided herein according to the Bank's current fee schedule. You must provide information to us regarding the transaction and recipient as requested by us in order to comply with legal and regulatory requirements and our intemal policies and procedures. Note; i) Intermediary and beneficiary institutions may also assess a fee with the result that the payee/beneficlary may receive an amount that is less than the face value of a money transfer, ii) Beneficiary's complete Intemational Bank Account Number (IBAN) is required for wires sent to Europe. An incomplete/missing IBAN may result In a vwre reject or retum with additional charges assessed by the receiving bank, ill) wires sent to Mexico require an 18-digit CLABE as the beneficiary's account number. (I) Terms and Conditions Applicable to Wire Transfers These Services permit qualifying customers to initiate wire transfers in accordance virith this Booklet and applicable state and federal laws and regulations and other applicable legal requirements (collectively, the "Wire Transfer Requirements'). All Wire Transfer Services are provided subject to the Wire Transfer Requirements. You agree to comply with the Wire Transfer Requirements. The Wire Transfer Services are also subject to the requirements described above under "Money Transfer Service." (m) Security Procedures for SWIFT and EBiCS Payment Orders You may have authorized us (or may in the future authorize us) to act on instructions we receive through the BNP Paribas or Bank of the West data transfer networks, the SWIFT network or other networks (collectively, the "Networks"). Your authorization may be provided in a variety of ways, such as (but not limited to) in an agreement with us for SWIFT messaging services, an Authority Letter appointing an agent to act on your behalf under a separate SwiftNet Agreement, or an authorization related to electronic data transmission via EBICS. We may act on any request for information or any order, instruction or Payment Order that our computer system receives through the interface we maintain with the relevant Network (collectively, the "Network Instructions'). Network Instructions may be originated by you, your affiliates, our affiliates or others. Our determination that a Network Instruction was received through the interface we maintain witii the relevant Network shall constitute the mutually agreed security procedure for Network Instructions (the "Network Security Procedure"). The Network Security Procedure shall be the controlling manner of authenticating Network Instructions notwithstanding any other security procedure that may now or hereafter be agreed to with respect to other instructions and Payment Orders. Except as set forth in the preceding sentence, all other provisions of the Terms and Condition relevant to security procedures and Payment Orders shall apply to the Network Security Procedure and Network Instructions, respectively. (n) Intemational ACH Transactions Financial Institutions are required by law to scrutinize or verify any Intemational ACH transaction ("lAT) that they receive against the Specialty Designated Nationals (SDN) list of OFAC. This action may, from time to time, cause us to temporarily or permanently suspend processing of one or more lAT's and may affect the settlement and/or availability of such payments. At our sole discretion and without liability to you or any third party, we reserve the right to refuse to initiate or receive ACH transactions for any or no reason, including, without limitation, any ACH transfer to or from any person or entity located in a country with which the Bank has determined not to engage. Effective: April 23, 2018 I I BANKA'kWEST Page 43 of 54 ' ' BNP PARIBAS Cash Management Terms and Conditions (0) Reservation of Rights on Payment Orders At our sole discretion and without liability to you or any third party, we reserve the right, for any or no reason, to reject, impose conditions on, cancel, delay or suspend any instructions to initiate any Payment Order on your behalf (even if previously accepted): similarly, at our sole discretion and without liability to you and without prior notice, we reserve the right to refuse to receive any Payment Order on your behalf. If we take any such action described in the previous sentence, we will use reasonable efforts to notify you of such action by communicating with you in a method allowed by these policies or in some other commercially reasonable manner, including verbally notifying you or your designated representative, but we shall have no liability to you or any third party if we are unable to give such notice to you. In the event we take any such action as described above in this paragraph, you agree that you will indemnify us and hold us harmless from all loss, cost or expense arising from such action, including without limitation, with respect to claims by third parties. 53. Positive Pay Services Under our Positive Pay Service, you have three options. (a) Traditional Positive Pay Service With the Traditional Positive Pay Service, you agree to provide to us the following Issue Information for each Item: (1) Item serial number; (ii) dollar amount of the Item; and (iii) Item issuance date. Using your issue Information, we will deliver to you on each Banking Day a Reported Item List that allows you to return unauthorized Items. Items which do not match the Issue Information will be flagged and made available to you, so that you can make a pay/no- pay decision on each flagged Item. Under the Traditional Positive Pay Service, you will receive account reconcilement reporting; however, you must agree to have our Account Reconcilement Service (Traditional Service) to receive such reporting. For more information on how the Traditional Positive Pay Service works including, without limitation, delivery and cutoff times, reporting features, and each party's responsibilities and obligations, please refer to the User Materials. (b) Stand-Alone Positive Pay Service With the Stand-Alone Positive Pay Service, you agree to provide to us the following Issue Information for each Item: (i) Item serial number; (ii) dollar amount of the Item; and (iii) Item issuance date. Using your Issue Information, we will deliver to you on each Banking Day a Reported Item List that allows you to retum unauthorized Items. Items which do not match the Issue Information will be flagged and made available to you, so that you can make a pay/no- pay decision on each flagged Item. There will be no account reconcilement related reporting available with the Stand-Alone Positive Pay Service. For more information on how the Stand-Alone Positive Pay Service works including, without limitation, delivery and cutoff times, reporting features, and each party's responsibilities and obligations, please refer to the User Materials. (c) Payee Positive Pay Service Wth the Payee Positive Pay Service, you agree to provide to us the following Issue Information for each Item: (i) the payee name(s) on the Item; (ii) Item serial number; (iii) dollar amount of the Item; and (iv) Item issuance date. You will provide us with pay or return instructions for Items that either do not have a payee match or that have a payee match but that do not match the MICR information provided to us by you. Account reconcilement related reporting is available for the Payee Positive Pay Service if you agree to have our Account Reconcilement Service (Traditional Service). For more information on how the Payee Positive Pay Service works including, without limitation, delivery and cutoff times, reporting features, and each party's responsibilities and obligations, please refer to the User Materials. (d) General Teims and Conditions Applicable to All Positive Pay Services (d)(i) If the Issue Information you provide does not precisely match the information captured from the Item during the course of processing operations, then we or our Servicer will create a Reported Item List. From time to time in advance, we or our Servicer may permit you to establish parameters for Items you wish to appear on your Reported Item List. Effective: April 23. 2018 ^Sll BANKth'eWEST Page44of54 BNPPARIBAS Cash Management Terms and Conditions (d)(ii) You agree to tell us whether you want the Items listed on the Reported Items List to be paid or rejected from payment You must advise us of your wishes in the manner and in the timeframes established in the User Materials, You shall provide us with standing instructions that we will implement in the event we do not hear from you within the required timeframes. Those instructions shall be either to "pay all" or "return all ° You agree that in the event you fail to place standing instructions on file with us, we will adopt the "pay all" approach. We will then pay all Items subject to the availability of funds on deposit. In our sole discretion, we may overdraw your account. We are entitled to conclusively rely on your "pay" or "return" instructions. Further, in the event we receive no instructions from you and adopt the default "pay all" approach, tfie default approach shall be conclusively deemed to be the equivalent of your express instruction to "pay all" Items. (d)(iii) If an Item on the Reported Items List is paid, either by you or by your standing instruction, the issue information will be updated by the information from the Item. (d){iv) Any Items rejected under a Positive Pay Service v/ill be marked 'Refer to Maker." You agree to respond promptly to any inquiries regarding those Items. You understand that you may have liability for the payment of any Item to a party, including us or Servicer, who is a holder or holder in due course under the Uniform Commercial Code. {d)(v) You agree that our duty (and the duty of Servicer. as applicable) to you is to provide the Reported Items List. We shall have no responsibility or liability for payment of any check or draft which precisely matches Oie issue data on file for any Item or account; except that if you claim an Item is not property payable due solely to a forged endorsement or material alteration to the payee information, then the rights and responsibilities with regard to the forged endorsement or material alteration shall t>e determined under applicable law. Further, you understand and agree that we cannot return Items that have been cashed over-the-counter or otherwise paid prior to the time that you; (i) instruct us to pay or return the Items and (ii) we have a reasonable time to act upon such instruction. (d)(vi) Other than the duties specifically undertaken, as desaibed above, you relieve us (and our Servicer) of all liability, including liability related to obligations arising under applicable law, or othenwise concerning examination of Items presented for payment, and you hold us (and Servicer) harmless from any and all claims made by anyone (including, but not limited to claims regarding our refusal to honor Items presented for payment at any of our offices, if we did not have accurate issue information regarding the Item at the time of presentment for payment) for loss or damage, or for breach of security, or for breach of confidentiality of our data or records which may arise in connection with the performance of the Positive Pay Services. We reserve the right to require you to place a stop payment order on any Item to be returned. Any such stop payment orders will be subject to our customary stop payment fees. (d)(vii) You acknowledge that our Positive Pay Service is intended to be used to identify and return Items vtrfiich you suspect, in good faith, are fraudulent. The Positive Pay Service is not intended to be used as a substitute for your placing stop payment orders on Items which you do not wish to be paid and which are not suspected as being fraudulent. If we suspect or conclude, in our sole discretion, that you are using the Positive Pay Service in violation of the previous sentence, we may require you to provide evidence that Items we return pursuant to your instructions were in fact fraudulent. We will hold you liable for losses v^re sustain on Items returned under the Positive Pay Service which are not established as fraudulent Items. (d)(viii) You acknowledge that your failure to use the Positive Pay Service could substantially increase the likelihood of undetected fraudulent activity on your deposit account(s) and that it is neither unreasonable nor unreasonable under the circumstances for us to require you to use our Positive Pay Service upon request. You agree that if you fail to implement the Positive Pay Service following our request that you do so, you will be precluded from asserting any claim against us for paying an unauthorized, altered, counterfeit or other fraudulent Item that the Positive Pay Service was designed to detect or deter, and we will not be required to re-credit your deposit account or otherwise be liable to you for paying such Item. 54. Remittance Banking Services fLockboxi You may direct your debtors and/or customers to forward their payments by check, or other paper item, to the post office address we designate ("Designated Address"). We and any servicer we engage, acting on your behalf, shall have exclusive and unrestricted access to mail directed to the Designated Address. We will endorse, on your behalf or at your reasonable request, checks and other deposited items that were sent to the Designated Address and appear to be for deposit to your credit, even if you are a joint payee on the check. Items received at the Designated Address shall be processed as agreed to both you and us and credited to the account you designate. Unless otherwise agreed to by both parties, all collected Effective: April 23. 2018 BANKtheWEST Page 45 of 54 BNP PARIBAS Cash Management Terms and Conditions funds shall be deemed to be your ftjnds for all purposes e.g., adjustmente, bankruptcy, levy, attachment, and other forms of legal process. The crediting and collection of checks and other deposited items will be handled under the terms and conditions as agreed upon by both parties. 55. Integrated Solutions Services Our Integrated Solutions suite of Services provides you access to your designated accounts at Bank of the West using a Bank of the West interface as a single point of entry through which you may directly conduct banking transactions using your computer and your compatible third-party accounting system provider or software, Integrated Solutions allows you to provide data and to make payments directly from your accounting systems without manually entering information. The Integrated Solutions suite of Services includes Integrated Payables, Information Reporting, and Receivables as such Services are made available by us. Our provision of the Integrated Solutions Service to you is subject to. and you shall be bound by. all applicable terms, provisions, or conditions of any service provider agreement between us and any service provider, and in the event of a conflict between the terms of the Terms and Conditions and the applicable terms of any service provider agreement, the terms of such the service provider agreement shall govern and control. You acknowledge and agree that you are not a third party beneficiary of any service provider agreement and shall not have any direct claims or recourse against any service provider, except to the extent expressly permitted by the terms of the service provider agreement and subject to all limitations and disclaimers provided in such service provider agreement. You acknowledge that the Integrated Solutions Service may involve the transmission of confidential consumer information that may be subject to federal and/or state privacy laws and regulations. You shall comply with all federal and state privacy lav« and regulations including, without limitation, any breach notification requirements. Further, you agree to notify us if a Integrated Solutions Request or any other information provided by you to us contains protected health information subject to the federal Health Insurance Portability and Accountability Act of 1996 and regulations promulgated thereunder by the U. S. Department of Health & Human Services. You shall comply with all security procedures established by us for the Integrated Solutions Service. The specific security procedures are set forth in Section 14 of this Booklet and the Integrated Solutions Security Procedures Addendum attached hereto and included in this Booklet and the Terms and Conditions by this reference. Such security procedures shall be amended from time to time in accordance with this Booklet. You agree that all Integrated Solutions Requests contain sensitive banking information and shall only use secure transmission options provided by us. For some Payment Orders and Services such as ACH, Wire Transfers and Online Banking, other established security procedures are utilized when accessing such Services through the Integrated Solutions Service. You are solely responsible for developing and maintaining your own internal security procedures to prevent errors and unauthorized access to your computer systems and the Integrated Solutions Service by unauthorized employees, agents, vendors and customers. You understand that while we determine the third-party accounting systems and software compatible with the Integrated Solutions Service we are not responsible for these systems or software or computer hardware you choose. We will not be liable or responsible to you for any errors or loss or unauthorized access to your accounts attributable to the third-party accounting system or software or computer hardware. You acknowledge that we have no obligation to maintain back-up copies of or your request for us to initiate a Integrated Solutions transaction or any other information provided by you to us. You shall preserve ail records relating to the Integrated Solutions Service as required by law and as specified for the Integrated Solutions Services you use. You shall permit us to examine, verify and copy such records upon our reasonable request and notice to you. You agree that you (i) shall use the Integrated Solutions Service only in the ordinary course of your internal business operations, (ii) shall not use the Integrated Solutions Service in violation of the terms of the Terms and Conditions , (iii) shall not use the Integrated Solutions Service to conduct any type of service bureau or time-sharing operation or to provide remote processing, network processing, network telecommunications or similar services to any person, whether on a fee basis or othenArise, and (Iv) shall ensure that the Integrated Solutions Service is used only by your authorized users in accordance with any documentation we provide to you. In the event of any error in connection with the Integrated Solutions Service or any Integrated Solutions transaction, you shall provide to us detailed documentation and explanation, together with underlying data, to substantiate any error and to assist us in diagnosing, reproducing and correcting the error You shall use any modifications, revisions, and updates in the Integrated Solutions Service, including changes in programming languages, rules of operation and screen or report format, as and when they are implemented and/or made available by us or our service provider. You agree to devote all equipment, facilities, personnel and other resources reasonably Effective; April 23,2018 BANKth'eWEST Page46of54 BNPPARIBAS Cash Management Terms and Conditions necessary to Implement the Integrated Solutions Service and to be trained in the use of the Integrated Solutions Service, and we shall not be responsible for any delays or addifonal fees and costs associated with your failure to timely perform such obligations. (a) Integrated Payables Integrated Payables is a service within the suite of Integrated Solutions Services. Our Integrated Payables Service offers customers a solution to automate their accounts payable processing. The Integrated Payables Service creates a secure gateway to exchange machine-to-machine payment information between the customer and Bank of the West. The specific banking transactions available through Integrated Payables are more felly described in the Integrated Payables User Materials which shall be amended from time to time in accordance with this Booklet The Integrated Payables Service works in conjunction vwth third-party accounting systems or software determined compatible by us in our sole discretion. Not all third-party- accounting systems or software will be compatible with the Integrated Payables Service. You agree that your requests to initiate payments utilizing the Integrated Payables Service shall be governed by this Section 55, the sections of the Terms and Conditions governing the applicable payment mechanism, and all applicable laws, rules and regulations governing the applicable payment mechanism. When the Integrated Payables Service is used to access other the Bank's services, products, or payment facilities (including, without limitation, the wire transfer service, check printing, ACH or credit card services when available), the terms, conditions, and agreements governing such other services, products, and payment facilities remain in fe ll force and effect, except as expressly modified or amended by this Section 55. You agree to promptly execute and deliver to us any documentation we require to evidence your agreement to our terms and conditions for services, producte, and payment facilities accessed and used by you through the use of the Integrated Payables Service; provided, that your use of the Integrated Payables Service to use, access, and/or perform other Bank sen/ices, products, or transactions automatically constitutes your acceptance of and agreement to any and all terms, conditions, and provisions in effect and imposed by us at the time of your use or performance of such services and transactions wittiout the execution of any related documentation by you. You agree to be bound by and to comply with any and all documentation, instructional materials or technical Information relating to the use of the Integrated Payables Service that is made available to you by us or our service providers in connection with the Integrated Payables Service, as amended from time to time. You authorize us to execute all payment requests and settle to your account all payment requests delivered to us in compliance with the Terms and Conditions and the applicable security procedures. You may from time to time request that we initiate electronic payments using electronic payment channels such as the ACH, SWIFT and credit card networks, wire transfer system, and other available electronic funds transfer systems (Please refer to the Integrated Payables User Materials for available electronic payment channels as not all electronic payment channels may be available through the Integrated Payables Service). For certain payment requests, you will have the option of including an email address of the beneficiary/payee in the payment request to us, and if you provide such email address, we will generate an email to the beneficlary/payee advising them of the incoming payment. You must submit Integrated Payables transactions at or prior to the established deadline for processing on the Business Day of receipt Integrated Payables transactions received after the established deadline will be processed on the next Business Day. All established deadlines are set forth in the Integrated Payables User Materials and subject to change. We will notify you of any rejected Integrated Payables transactions in accordance with our standard procedures. You represent and warrant to us that all Information in each Integrated Payables transaction delivered to us shall be accurate, timely and authorized and shall be in compliance with all applicable laws, rules and regulations. Accordingly, any Inaccuracy in the Integrated Payables transaction or information provided by you may result in unintended processing by us. We are not responsible for detecting or reporting any error or inaccuracy in information provided by you and we shall not be liable to you for any information or Integrated Payables transaction which is incorrect or incomplete. You are solely responsible for scheduling and initiating any and all Integrated Payables Service transactions sufficiently in advance of applicable due dates. We disclaim any and all representations or warranties, express or implied, that any transaction executed through the Integrated Payables Service will be timely and/or properly received, processed, and applied by any counterparty to such transaction. You assume all risk relating to the timely and proper scheduling, initiation, processing, transmission, receipt, and application of Integrated Payables Service transactions, and you release us from any and all claims, liabilities, and/or damages related thereto or arising or resulting therefrom. Except for those losses caused directly by our gross negligence or willful wrongful acts, you agree to indemnify, defend, and hold us and our service prowder harmless from and against any and all losses, costs, suits, damages, claims, liabilities, and expenses (including, without limitation, reasonable attorneys' fees) arising ftom or related in any way to any relationships, claims, or disputes between you and any and all counterparties to transactions executed by you through the Integrated Payables Service (including, without limitation, payees of payment transactions executed through the Integrated Payables Service). Effective: April 23, 2018 I I BANKt^'eWEST Page47of54 BNPPARIBAS Cash Management Terms and Conditions We shall have no obligation to permit you to amend, modify, cancel, or stop payment on an Integrated Payables transactions after you have initiated or submitted such transactions for execution through the Integrated Payables Service. In the event we shall permit you to amend, modify, cancel, or stop payment on an Integrated Payables transactions, you must act wthin applicable deadlines established by us for such purposes and otherwise afford us a reasonable opportunity to respond to instructions to amend, modify, cancel, or stop payment on such Integrated Payables transaction: provided, that in no event shall we have any liability to you or any counterparty to your Integrated Payables transaction if we shall fail to execute or timely execute any instruction to amend, modify, cancel, or stop payment on such Integrated Payables transaction. Additional terms apply to Payment Orders. Please see Section 52. 56. Sweep Services. (a) Deposit Sweep Service Our Sweep Services allow you to transfer unused balances from your demand deposit account into a Federal Funds deposit or used to purchase an interest in government securities (subject to an agreement by us to automatically repurchase such securities on a set maturity date). (b) Establishment of Investment Accounts At your request, and with the Bank's approval, we will establish for you a non-FDIC insured account for your Federal Funds deposit ("Federal Funds Accounf) or your government securities repurchase account ("Repo Account") in accordance with the information you provide to us. (c) Rules Governing Federal Funds Account The Federal Funds Account will consist of United States dollar-denominated overnight time deposits held in our account at the Federal Reserve Bank. (d) Rules Governing Repo Account The Repo Account will consist of securities that will be purchased by you from us from time to time, subject to our agreement to repurchase such securities at a stated maturity date at the original purchase price plus interest at a stated interest rate. You must execute a master securities repurchase agreement ("Master Repo Agreement") in order to have a Repo Account. The terms of the Master Repo Agreement will govern our relationship with respect to funds in the Repo Account, pursuant to the terms of the Master Repo Agreement. (e) Automatic Investment We will monitor the balance of the deposit account (the "Sweep Account") that you designate for funds to be swept into the Federal Funds Account or Repo Account, as the case may be. At the close of business on each Banking Day. we will automatically transfer all collected funds from the Sweep Account in excess of the target balance you designate to us (the "Target Balance") into the Federal Funds Account or Repo Account, as you have designated. On the following Banking Day. the principal amount in the Federal Funds Account or Repo Account, plus any interest, will be automatically transferred by us from the Federal Funds Account or Repo Account to the Sweep Account. (f) Interest Rates The interest rate on the Federal Funds Account shall be the Federal Funds Target Rate as computed by the Federal Open Market Committee. This rate is found in the official press statement by the Federal Open Market Committee that follows their most recent regularly scheduled monetary policy meeting and is available online at the Federal Reserve Board website. The interest rate on the Repo Account will be calculated by subtracting the number of basis points quoted by us at the time the Repo Account is established as the Initial Interest Discount from the ovemight Federal Funds rate set by the Federal Reserve Bank Interest on the Federal Funds Account or Repo Account will be calculated on a simple and daily basis using a 360-day year This means that the per annum rate will be divided by 360 to arrive at a daily rate, which is then applied to the balance for each calendar day and credited to the Sweep Effective; April 23, 2018 BANKtheWEST Page 48 of 54 BNPPARIBAS Cash Management Terms and Conditions Account on the followring Banking Day. For the Repo Account, interest as described above will be deemed to include all payments of Pricing Differentials as described In the Master Repo Agreement and we will pay the quoted rate regardless of any fluctuation In the market price of underlying securities purchased under the Master Repo Agreement By requesting a Repo Account, you acknowledge and agree that the Interest rate on your Repo Account will not be related to the yield on any underlying securities in the Repo Account. (g) Repo Account Securities Management Pursuant to the Master Repo Agreement you will purchase an Interest in securities from us to be automatically repurchased by us from you on a stated maturity date. For each securities purchase transaction, you vwll receive an undivided interest in all securities held by a custodian bank for a portion of all of our repurchased transaction customers. These securities will be investment-grade debt securities and \wlll always have a market value that equals or exceeds the stated balance of funds In your Repo Account. Your interest In those securities may be subject to liens of third parties, may be used by us for deliveries on other securities transactions, and shall be subject to our ability to satisfy any lien or to obtain substitute securities vwthout prior notice to you. (h) Repo Account Maturity Your Repo Account vwll mature at the close of business one Banking Day following the effective day of each securities transaction. However, on each Banking Day, the maturity date shall be automatically extended one additional Banking Day (until the close of the Immediately succeeding Banking Day) unless we give you notice to dose the Repo Account and to pay all amounts due as of such extended maturity date. You may close the Repo Account at any time, effective on the tenth day after you give us written notice thereof, so long as you have paid us all amounts then due. You will then receive any accrued but unpaid Interest earned on the Repo Account through the date of closing,- but any fees debited to the Repo Account before the closing date, Induding monthly fees, will be nonrefundable. On the date of closing of the Repo Account, we will reacquire all of your rights In the securities held in the Repo Account. (I) Security Interest in Securities Held In Repo Account We will maintain the securities In the Repo Account vwth the custodian we select pursuant to the temis of the Master Repo Agreement We Intend to transfer full ownership of your Interest In the securities to you. However, In the event that the transfer of ftjll ownership Is invalidated for any reason, we here grant to you a seourity interest in such securities to the extent of the ownership Interest we intended to transfer, together vwth any proceeds, and vrfille we intend this security interest to be perfected by possession, we make no representation or warranty to you regarding the perfection of your security Interest or your ability to recover your funds by selling your interest In the securities. (j) Statements/Confirmations An account statement detailing the activity between the Sweep Account and Federal Funds Account will be sent to you each month. (k) Fees and other terms The monthly fee for our Sweep Servl^ Is listed In our pricing schedule and will be automatically deducted each month ffom your Sweep Account. (I) Limitation of liability In the event that we are unable to sweep funds Into your Federal Funds Account on any day for any reason, we will not charge you fees for the Sweep Services for that day but we will not be liable to you for any lost interest you may suffer. . (m) FDIC Eligibility No FDIC Insurance of Federal Funds Account or Repo Account. Your Sweep Account is insured by the Federal Deposit Insurance Corporation up to the current maximum Insurance limit (currently generally $100,000), but your Federal Funds Account or Repo Account Is NOT INSURED BY THE FDIC. This means that funds that are swept Effective:April23,2018 ] I BANKTHE^A^ESX Page49of54 ' ' BNPPARIBAS Cash Management Terms and Conditions out of your Sweep Account and into your Federal Funds Account or Repo Account are not federally insured by the FDIC for the period of time they are in the Federal Funds Account or Repo Account. When the funds are swept back into the Sweep Account, they are again insured by the FDIC. (n) Loan Sweep Services Our Loan Sweep Services allow you to automatically transfer funds between a revolving line of credit identified by you (the "Loan Account") and a demand deposit account you maintain with us (the "Loan Sweep Deposit Account"). (o) Transfer Between Loan Sweep Deposit Account and Loan Account Each Banking Day, after all transactions for the day have been posted to the Loan Sweep Deposit Account and the Loan Account, we will transfer funds between the Loan Sweep Deposit Account and the Loan Account as follows: First, we will transfer any positive Available Balance or Ledger Balance (depending upon which you designate to us in the setup of your Loan Sweep Services) that exceeds the Target Ceiling (also as designated by you in the setup of your Loan Sweep Services) from the Loan Sweep Deposit Account to pay dovm the outstanding balance of the Loan Account and to bring the Loan Sweep Deposit Account back to the Target Balance. If there is no outstanding balance on the Loan Account, no transfer will be made. If the balance in the Loan Sweep Deposit Account is less than the Target Floor, we will transfer from the Loan Account to the Loan Sweep Deposit Account an amount sufficient (up to the maximum available credit limit) to bring the Loan Sweep Deposit Account balance back to the Target Balance. (p) Payment Payment of any item presented against the Loan Sweep Deposit Account which would create an overdraft in ttie Loan Sweep Deposit Account will only be made to the extent of the available credit limit in the Loan Account. (q) Insufficient funds You agree that if at any time the Available Balance or Ledger Balance, as applicable, in your Loan Sweep Deposit Account is insufficient to pay items presented to the Loan Sweep Deposit Account for payment, we may pay or dishonor items in our sole discretion and in any order as we may determine, and you specifically waive any claims against us for the same. Items paid or dishonored pursuant to this Section will be subject to any applicable fees and charges. Ofiier than as provided in this Section, no separate loan advances may be made from the Loan Account. You will sign a separate Loan Agreement and pay interest on advances according to that Loan Agreement. You hereby assign and grant to us a security interest in the Loan Sweep Deposit Account and any future additional deposit accounts you may have with us as security for the performance of your obligations under the Loan Agreement and the Terms and Conditions. Your rights in the Loan Sweep Deposit Account and any other deposits you have with us are subordinate and junior to our rights to reimbursement for any withdrawals or items paid from the Loan Sweep Deposit Account. Our rights and remedies as described herein are in addition to all other rights and remedies that we may have under the Loan Agreement or any other applicable law. 57. Ta?tDirect Services Our TaxDirect Services allow you to use touch-tone telephone or Internet to initiate Federal, State and certain local tax deposits. Our performance of TaxDirect Services are conditioned upon your furnishing all requested data, authorizations, and written instructions at the times and in the manner specified by us in the User Materials. We are entitled to rely on the accuracy of any data furnished by you to us. When initiated via touch-tone telephone or Internet, you are responsible for electronically inputting relevant data in accordance with the procedures and instructions established by us from time to time, and such data will subsequently be processed by us. (a) Deposit Account; Sufficient Funds You agree to maintain with us a commercial bank account ("the TaxDirect Deposit Accounf) with sufficient funds to cover all tax deposits and other fees and charges related to the TaxDirect Services. You hereby authorize us to charge the TaxDirect Deposit Account for the amount of each tax deposit, as related by you to us. In the event you fail to maintain sufficient funds in the TaxDirect Deposit Account, we shall have no obligation to perform the TaxDirect Services or make any tax deposit for you even if we have received instructions to do so. In the event we, in our Effective: April 23, 2018 BANKthe\A/ESX Page 50 of 54 BNP PARIBAS Cash Management Terms and Conditions discretion, overdraft the TaxDirect Deposit Account to make tax deposit disbursements, we shall not be obligated to do so in the ftjture, regardless of the number of times we have previously allowed such overdrafts. You are liable for the payment of any disbursement made by us for TaxDirect Services even though there are insufficient funds in the TaxDirect Deposit Account at the time the disbursements are made. (b) Duty to Maintain Records Nothing herein shall relieve you of any duty imposed by law or contract regarding the maintaining of records or from employing adequate audit, account and review practices customarily followed by similar businesses. You agree to promptly review for accuracy all records and information delivered from time to time to you by us and promptly notify us of any errors. You will retain a copy of all of your source documents, including without limitation your completed TaxDirect Service Application, any User fylateriats, the Terms and Conditions, completed state and federal tax agency authorization forms for you. tax payment information needed to make each tax deposit, acknowledgment numbers generated after you initiate a tax payment request, and audit information or receipts acknowledging or confirming the payment of your tax deposits. We may retain copies of any of the foregoing documents, information or receipts, but we are not required to do so under the Terms and Conditions or any other contract or other obligation to you. (c) Service Limited to You Only you may use the TaxDirect Services. You may not provide your access code or personal identification number to any third party, nor may you initiate a tax deposit on behalf of any other consumer or entity. (d) We Are Acting Only as Your Agent In performing the TaxDirect Services, we are acting only as your agent. Any tax deposit funds received from you by us will remain a deposit liability of us to you and will not be trust funds until we deposit the same to the credit of the appropriate govemmental agency on the tax due date or otherwise makes such funds available to the govemmentat agency. Funds held by us for you will not bear interest and may be invested by us solely for our own benefit, but any such investment shall be at our risk. You will be entitled to recover any funds held by us prior to the time such funds are credited or othen/vise made available to the govemmental agency upon written notice to us given in time for us to act thereon. 58. Third Party Depository Services Our Third Party Depository Service provides a delivery channel for you to make cash or check deposits at branches or processing centers of a third party with whom we have a contractual arrangement. This service enables your out-of-market or out-of-state locations that are not in close proximity to a BOW branch to make deposits. You must use specified deposit documents for the Service. The Service does not include check cashing at the third party locations. Deposits submitted prior to the established cutoff hour will be posted to your BOW account our next banking day. (a) Your responsibilities You agree to make any such deposits under the Service in accordance with the form, format, and instructions provided to you, and that any failure to follow these instructions may result in a delay in the posting of your deposit. (b) Deposit Discrepancies Any deposit discrepancy, such as an adjustment or a retumed check, will be reported to us by the third party and will be debited or credited to your account in the usual manner. (c) Notifications You agree to contact us regarding any questions or other issues that may arise under the Service. Any notice to the third party regarding the Service does not constitute notice to BOW. 59. Zero Balance Accounting Services Effective: April 23, 2018 BANKtheWESX Page 51 of54 BNP PARIBAS Cash Management Terms and Conditions If your company disburses funds from multiple accounts or maintains a number of different depository accounts, the Zero Balance Accounting Service may assist you. Under this Service you designate a primary demand deposit account, called the "Concentration Account," and secondary accounts, called "Tier Account(s)". You authorize us to transfer funds iDetween the Concentration Account and Tier Accounts in order to bring the respective balance of the Tier Account(s) to (1) the target balance or (2) the balance that you have selected as of the close of each Banking Day. Any debits to the Tier Accounts that reduce the balance in the Tier Account to a sum less than the target balance will be funded automatically from the Concentration Account. You may draw checks (or arrange for other debits) against the Concentration and/or Tier Accounts. We will pay those checks up to the collected and available balance on deposit in the Tier and/or Concentration Account. You agree that we are not acting as a fiduciary with respect to funds in either the Concentration Account or in any Tier Account. If any Concentration Account or Tier Account is under different ownership, all owners must join in the Terms and Conditions and each accepts any financial liability for co-mingling and/or for the movement of funds between Concentration and Tier Accounts. Effective: April 23, 2018 BANKt^'eWEST BNP PARIDAS Page 52 of 54 Cash Management Terms and Conditions r.TOSSARY Account Agreement means your signature card, the Deposit Account Disclosure for Business Accounts (Disclosure Statement and Agreement), and the current Schedule of Fees and Charges for Business Deposit Accounts. Access shall include (i) retrieval and/or storage or processing of you Data on the Bank System, (ii) retrieval or receipt of you Data by the Bank System, and (iii) physical access to the components of the Bank System. ACH shall mean the automated clearinghouse. ACH Operator means either the Federal Reserve ACH Operator or the EPN (Electronic Payments Network) private ACH Operator. ACH Requirements means the Uniform Commercial Code, applicable state and federal laws and regulations, including, without limitation, the Electronic Funds Transfer Act and Federal Reserve Regulation E, all applicable Federal Reserve Bank operating circulars, including without limitation Operating Circular No. 4, applicable Federal Reserve Bank procedures, and the Internal Revenue Code and Internal Revenue Service regulations (with respect to federal tax payments made through the ACH system) and including the ACH Rules. ACH Rules means the current rules, regulations, operating procedures and guidelines of NACHA. ANSI X9.37 Standards refers to the Accredited Standards Committee X9 standards and technical guide Specifications for Electronic Exchange of Check and Image Data. Authorized User means any person or entity you authorize to use any Service or to access any your accounts, or reasonably believed by Bank to have been authorized by you to use any Service or to access any of your accounts, including (without limitation) any person or entity to which you have provided or disclosed a Security Device or made available or disclosed any Security Procedures, or any person or entity knowing or in possession of a Security Device or Security Procedure without regard to whether such person or entity gained access to or possession of the Security Device or Security Procedure from you, and/or any person or entity expressly authorized to use any Service or access any of your accounte. Any Authorized User shall continue to be an Authorized User unless and until you have notified us. according to notification procedures prescribed by us, that such person or entity is no longer an Authorized User and until we have had a reasonable opportunity to act upon such notice. Banking Day means Monday through Friday, excluding weekends and Federal holidays, even if we are open for business. Beneficiary means the person to be paid on a Payment Order by the beneficiary's bank. Business Day means a day on which a person is open for transaction of general business. Cashier's Checks means checks drawn by the Bank on itself. Check Image means an electronic image of an original check (including a substitute check) and the accOTipanying MICR data information created by you in connection with the Service. Check 21 means the Check Clearing for the 21st Century Act (12 U.S.C. 5001-5018) as it may be amended from time to time. Equipment means equipment, hardware, software, including, without limitation. PCs, modems, phone lines, hardware, and any attachments necessary to perform the requested Service. Erroneous Transmission means a facsimile transmission sent to you that, on its face, is not intended for you or a data transmission received by you that was corrupted during transmission resulting in incomplete or missing data as determined by a mismatch between the record count which is available following the end of the transmission. Expedited Funds Availability Act (EFA Act-12 U.S.C. 4001-4010) requires banks to disclose their funds availability policies and requires standardization of hold policies. The act is implemented through Regulation CC as it may change from time to time. Effective; April 23, 2018 BANKt%WEST page 53 of 54 BNP PARIBAS Cash Management Terms and Conditions Funding Account means the account you have designated for funding withdrawals from the Controlled Disbursement Account. ICL File means an Image Cash Letter File, an electronic transmission of check images and MICR line data sent to the Bank. Issue information means the information you provide to us regarding Items issued on your deposit account Depending on the Service, Issue information may include (I) payee name(s) on the Item; (ii) Item serial number; (ill) dollar amount of the Item; and (iv) the Item issuance date. MICR data means Magnetic Ink Character Recognition information in compliance with various ANSI X9 standards covering MICR placement, quality and image replacement documents NACHA means the National Automated Clearinghouse Association. Original Check means the paper check that you scan to create a check image. Payment Orders has the same definition as given in Division 11 of California's Commercial Code, "an instruction of a sender to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if all of the following apply: (a) The instructiomdoes not state a condition to payment to the beneficiary other than time of payment; (b) The receiving bank is to be reimbursed by debiting an account of, or otherwise receiving payment from, the sender (c) The instruction is transmitted by the sender directly to the receiving bank or to an agent funds transfer system, or communication system for transmittal to the receiving bank." Regulation CO means Federal Reserve Board Regulation CC: Availability of Funds and Collection of Checks, 12 C.F.R. Part 229, as it may be amended from time to time. Reported Item List This term applies with respect to a Positive Pay Service and means a transmission from us which includes either (i) all Items which have been presented but which do not "match" your issue information by serial number, payee name, and/or dollar amount of paper checks or drafts issued; or (ii) a "nil" report if all presented Items match the serial numbers, payee name, and dollar amount on your issue information or if no paper checks or drafts were presented for payment. Security Device means, without limitation, any code, password, personal identification number, user identification technology, token, certificate, or other element means, or method of authentication or identification used in connection with a Security Procedure. Servicer's Banking Day shall refer to any day a serviceris principal office is open to perform services. Services means any cash management service which you obtain through us. Services Account Disclosure means the disclosure provided to those customers that use the Controlled Disbursement Service through a servicer. Software means the executable code version of a computer software product that is supplied to or licensed to you by or through us in connection with any Service (and shall include without limitation, all software supplied as part of any update, enhancement, patch, bug fix, maintenance release, customization, upgrade, or modification of that software). Substitute Check or IRD (Image Replacement Document) means a copy of an original check, created from a check image, which is similar in size to an original check with a slightly reduced image of the front and back of the original check. Substitute checks should meet ANSI X9.90 standards. The term substitute check shall have the meaning set forth in Check 21 and Regulation CO, as it may be amended from time to time. User Materials means any set up forms, user manuals, reference cards or other product description materials, including online messages. Effective; April 23.2018 EBI Deposit Account Disclosure For Business Accounts BANKt^TeWEST BNP PARIBAS Effective December 2,2017 TABLE OF CONTENTS YOUR ACCOUNT AGREEIV1ENT WITH BANK OF THE WEST ...5 The Agreement 5 Uabllity 5 Our Relationship 6 ResenraWon of Rights 6 Governing Law. 6 IIVIPORTANT DEFINITIONS 6 WHEN YOU OPEN YOUR ACCOUNT 8 Identification Requirements 8 Account Opening Verification g Business and Other Organizational Accounts 9 Use and Purpose of Business Accounts 9 Ownership Restrictions Applicable to Interest-Bearing Checking Accounts 9 GENERAL INFORMATION ABOUT DEPOSIT ACCOUNTS 9 Balances and Cut-offTimes 9 Identifying Your Account Number for Deposits 10 Change in Signers 10 Change in Address 10 Signature Requirements 10 Review of Drawer Signatures 11 Death or Incompetence 11 Dormant Accounts and Escheatment 11 Notices 12 Changes in Terms and Conditions 12 Sub-Accounts 12 Positive Pay Service 13 Automated Clearing House Transactions 13 Unlawful Internet Gambling 13 DEPOSITS TO YOUR ACCOUNT 13 Accepting Deposits 13 Verification of Deposits 14 Correction of Deposit Errors 15 CHECKS 15 Check Cashing 15 Check Cashing Fee - Bank of the West Check 15 Remotely Created Checks Deposited 15 Requirements When Creating or Depositing a Remotely Created Check 16 Postdated and Void-Dated Checks 16 Stale-Dated Checks 16 Checks Drawn in Non-U.S. Dollars and/or Drawn on Foreign Banks 17 Endorsements or Notations on Items 17 "Mechanized" and Facsimile Check Signatures 17 Returned Deposited Items 18 Advanced Notification of Returned Item 18 Stop Payments 19 1 Order of Paying Checks and Other Items 19 Check Printing 20 Check Processing 20 Checks Accepted for Deposit 21 Electronification of Checks 21 Merchant Capture Program 22 Check Deposits by a Mobile Deposit Service 22 FUNDS AVAILABIUTY POLICY 22 Your Ability to Withdraw Funds 22 Determining the Availability of Your Deposits 23 Longer Delays May Apply 23 Special Rules for New Accounts 23 Deposits at Automated Teller Machines and Cut-Off Times 24 Holds on Other Funds (Check Cashing) 24 Holds on Other Funds (Other Account) 24 Effect of Release of a Hold 24 WITHDRAWALS AND ACCOUNT CLOSURES 24 Closure of the Account 24 Reporting of Account Closure 25 Right to Advance Notice of Withdrawal or for Cash Withdrawals 25 Authority to Withdraw 25 Other Withdrawal Limitations 26 Availability of Funds 26 DEBIT CARD SERVICES FOR BUSINESS ACCOUNTS 26 Bank of the West ATM Account Access 26 Designation of Primary Funding Account 27 Shared ATM Network Account Access 27 Frequency and Dollar Limitations at Bank of the West and Shared ATM Networks 27 Types of Debit Card Point-of-Sale Transactions 27 Frequency and Dollar Limitations on Point-of-Saie Transactions 28 Currency Conversion and Foreign Transaction Fees 28 Advisory Against Illegal Use 28 Use of Your Debit Card 29 information About Debit Card Purchase Transactions 29 information About Settlement of Debit Card Transactions 30 Effect of Authorization Hold on Other Transactions 30 Stop Payment on Purchase Transactions 31 Chip Cards at Merchant Terminals 31 Debit Card Security Measures 31 Limitations on Frequency of Transfers from Savings and Money Market Accounts 31 Related Fees 31 Your Liability for Use of Debit Card 32 Mastercard® Debit Card Zero Liability 32 Bectronic Fund Transfers Initiated By Third Parties 32 2 Errors or Questions Concerning Your Card and Certain Other Transactions 33 Lost and Stolen Cards 33 Termination of Business Debit Card Services 33 Debit Card Usage Not Governed by Electronic Fund Transfer Act 33 Mastercard® Easy Savings™ Program 34 FUNDS TRANSFERS 34 Funds Transfers 34 Reservation of Rights on Funds Transfers 34 Notice of Receipt of Funds Transfer 34 Funds Transfer's Reliance on Identification Numbers 34 Transmitting and Recording information About You in the Funds Transfer Payment Process 35 Transfers Received Through the Automated Clearing House ..35 ACH AND INTERNATIONAL ACH TRANSACTIONS 35 INFORMATION ABOUT FDIC INSURANCE 35 FDIC Insurance 35 IMPORTANT INFORMATION ABOUT YOUR BUSINESS CHECKING, SAVINGS AND MONEY MARKET ACCOUNTS...36 Rate information 36 Frequency of Rate Changes 36 Tiered Rate Accounts 36 Compounding and Crediting Frequency 36 Computation Method 36 Annual Percentage Yield or APY 37 Effect of Closing an Account 37 Accrual of Interest on Noncash Deposits 37 Transaction Limitations on Sa\rings and Money Market Accounts 37 Analyzed Business Checking Balance Related Terms 38 Analyzed Business Checking: interest on Overdrafts and Uncollected Funds Used 39 IMPORTANT INFORMATION ABOUT YOUR BUSINESS CERTIFICATE OF DEPOSIT ACCOUNTS 39 Rate and Term information 39 Compounding Frequency 39 Crediting Frequency 39 Computation Method 39 Annuai Percentage Yield or APY 39 Effect of Closing an Account 39 Accruai of interest on Noncash Deposits 39 Grace Period 39 Additional Deposits 40 Withdrawals of Interest Prior to Maturity 40 Wthdrawals of Principai Prior to Maturity 40 Early Wthdrawal Penalties 40 Additional Wthdrawals 40 Automatically Renewable Certificates of Deposit 40 Renewal Notices 41 3 Non Automatically Renewable Certificate of Deposit 41 Returned Interest Disbursements 41 OVERDRAWN ACCOUNTS AND PAYMENT OF OVERDRAFTS 42 Overdrawn Accounts or Insufficient Funds 42 Standard Overdraft Practices 42 Overdraft Program Alternatives 43 Savings Overdraft Protection for Sole Proprietorships 43 BuslnessLInk Reserve Line 44 ABOUT YOUR ACCOUNT STATEMENTS 45 Account Statements In General 45 Statements and Your Responsibility to Review 45 Combined Statements 46 Check Safekeeping 46 IRS REPORTING 46 Tax Identification Number and Interest Reporting 46 Backup Withholding 47 Notice to All Non-Resident Aliens 47 SAFE AND SELF-SECURED DEPOSIT BOXES 47 ACCOUNT SECURITY 48 Your Responsibility 48 Account Numbers 48 Closing a Compromised Account 48 Blank Checks 48 Claim of Loss 48 Preventing Fraud and Other Losses 49 RESOLUTION OF DISPUTES BY ARBITRATION 49 Agreement to Arbitrate Disputes 49 Disputes Covered By Arbitration 49 Disputes Not Covered By Arbitration 50 Commencing an Arbitration 50 Arbitration Procedure 50 No Class Action or Joinder of Parties 51 Applicable Law 51 Severabllity 51 ADDITIONAL TERMS AND CONDITIONS 52 Legal Processes 52 Right of Set-off and Security Interest 52 Pledges and Security Interest to Others 53 Referrals to Reporting Agencies and Collection Actions 53 Transfer of Ownership 53 Agents and Powers of Attorney (Sole Proprietorships Only) ....53 Conflicting Demands 54 Investigative Freezes 54 Enforcement 54 Instructions by Facsimile, Email or Volcemall 54 Our Communications with You 55 Retaining Records 55 YOUR ACCOUNT AGREEMENT WITH BANK OF THE WESr The Agreement This Deposit Account Disclosure for Business Accounts ("Disclosure"), along with any other documents we give you pertaining to your Account(s), Is a contract that establishes rules which control your Account(s) with us. Please read this carefully and retain It for future reference. If you sign the signature card or open or continue to use the Account(s), you agree to these rules. You will receive a separate signature card, schedule of rates ("Rate Sheet"), a Schedule of Fees and Charges for Business Deposit Accounts, and any addenda, to this Disclosure (collecUvely, the "Agreement"). If you have any questions, please call us. As used In this Agreement the words "Bank." "we," "our," and "us" mean Bank of the West and the words "you" and "youri* mean the Account holder(s) and anyone else with the authority to deposit, withdraw, or exercise control over the funds In the Account. However, this Agreement does not Intend, and the terms "you" and "your" should not be Interpreted, to expand an Individual's responsibility for an organization's liability. The headings In this Agreement are for convenience or reference only and will not govern the interpretation of the provisions. Unless It would be inconsistent to do so, words and phrases used In this Agreement should be constmed so the singular includes the plural and the plural includes the singular. The purpose of this document Is to: n Summarize some laws that apply to common transactions; • Establish rules to cover transactions or events \vhich the law does not regulate; • Establish rules for certain transactions or events v^ich the law regulates but permits variation by agreement; and • Give you disclosures for some of our policies which may be applicable to you or In which you may be Interested. If any provision of this document is found to be unenforceable according to Its terms, all remaining provisions vnll continue In full force and effect. We may permit some variations from our standard Agreement, but we must agree to any variation in writing either on the signature card for your Account or In some other document. Liability You agree, for yourself and the person or entity you represent If you sign as a representative of another, to the terms of your Account(s), Including this Agreement. You authorize us to deduct fees and charges (as disclosed In our Schedule of Fees and Charges for Business Deposit Accounts) as accrued, without notice to you, directly from the Account balance as accrued. If your Account's Available Balance Is insufficient to pay for such fees and charges, you agree to pay us promptly for any deficiency. You will pay any additional charges for services you request which are not covered by this Agreement. Each of you also agrees to be jointly and severally (Individually) liable for any Account shortage resulting from charges or Overdrafts, whether caused by you or another vrith access to your Account. This liability Is due Immediately, and can be deducted directly from the Account's Available Balance. You have no right to defer payment of this liability, and you are liable regardless of whether you signed the Item or benefited from the charge or Overdraft. You vtrill be liable for our costs, to the extent permitted by law, whether Incurred as a result of collection or In any other dispute involving your Account. This Includes, but Is not limited to, disputes between you and a signer on your Account or similar party; or a third party claiming an interest in your Account. All costs can be deducted from your Account when they are Incurred, without notice to you. If your Account's Available Balance Is Insufficient to pay for such costs, you agree to pay us promptly for any deficiency. We shall not be liable for special. Indirect, punitive or consequential damages which arise under this Agreement or by law with respect to your Account. Any loss to you is reduced by your recovery of funds or services from any other source. Should a dispute arise between the parties. It Is agreed that we \Mll make every effort to resolve It amicably. However, should the dispute not be resolved, the procedures outlined In the RESOLUTION OF DISPUTES BY ARBITRATION section of this Agreement will apply.- Our Relationship Our relationship with you shall be one of debtor and creditor; no fiduciary, quasi-fiduciary, or other special relationship exists behveen us. Reservation of Rights We shall not be deemed to have waived any of the provisions contained in this Agreement by having waived the same or similar provisions at any other time. We reserve the right to close any Account at any time without prior notice, vrith or \Mthout cause. We reserve the right to refuse to open any Account, and also the right to add to or to change or discontinue terms of any Account or service after opening. Examples used In this Agreement are not Intended to be the only applications of the rule being explained. Examples are illustrative and not limiting. Governing Law Except as othenvise expressly indicated herein, this Agreement Is subject to applicable federal and state laws of your Branch of Account and other applicable rules such as the operating letters of the Federal Reserve Banks and payment processing system rules (except to the extent that this Agreement can and does vary such rules or laws). The body of state and federal law that governs our relationship with you, however. Is too large and complex to be reproduced here. * Doing business In South Dakota as Bank of the West California. IMPORTANT DEFINITIONS Capitalized terms used herein but not othervnse defined herein shall have the definitions assigned to such terms In the Rate Sheet, the Schedule of Fees and Charges for Business Deposit Accounts or in other documents that make up part of this Agreement. Account. The term "account" means any business savings, money market, transactlonal (checking), or certificate of deposit account that you have with us. Agent. The term "agent" shall mean any person that you authorize to act on your behalf. Refer to "Agents and Powers of Attorney (Sole Proprietorships Only)" In the ADDITIONAL TERMS AND CONDITIONS section of this Agreement for additional details regarding appointment of Agents. Automated Clearing House (ACH). The ACH is a nationwide electronic fund transfer system that permits participating depository financial institutions to clear payments electronically. ACH transactions are governed by clearing house operating rules. Using the ACH, originating financial Institutions may cause payments, such as payroll. Social Security or other government benefits, to be debited from one Account party and paid Into Uie Account of a beneficiary. Similarly, originating financial Institutions may cause direct payments, such as mortgages, loans, utility bills, or Insurance premiums to be debited from a debtor's Account and paid Into the Account of the creditor. Available Balance. The total amount of funds on deposit for your Account reduced by any deposit holds, authorization holds, pledges, restraints and pending transactions. Branch of AccounL The banking branch v/here your Account is opened or to which your Account Is assigned. Business Day. Our Business Days are Monday through Friday, excluding federal holidays. Card. As used In this Agreement, "Card" includes the Debit Card. Debit Card. The Debit Card Issued by the Bank may be used at ATMs and PCS Terminals inside and outside the United States that display any of the logos on the Debit Card. Direct Deposits. Electronic deposits of periodic payments that are made Into your Account through the ACH. Wire transfers, deposits you make, and transfers you make between your deposit Accounts with us are not considered Direct Deposits. Item. An "Item" means any paper check or draft whether presented In paper form or electronic form. If Indicated in the context. It may include an ACH debit or credit, or any form of electronic presentment. Overdraft An Overdraft results from the Bank's payment of Items or Card transactions despite an Insufficient Available Balance. The Bank may assess an Overdraft Fee for this service. Refer to the OVERDRAWN ACCOUNTS AND PAYMENT OF OVERDRAFTS section of this Agreement for further details. PoInt-of-Sale (PCS). A purchase transaction conducted at any merchant or self-service Terminal where the Debit Card Is accepted. Provisional Credit Credit provided to you by the Bank on a temporary basis. Unless you are othenvise Informed, you may access funds for which you have a Provisional Credit but recognize that a Provisional Credit may be reversed until It Is legally deemed to be final. If reversed, you will be liable to the Bank to the extent Provisionally Credited funds were used. Remotely Created Check. Like any standard check or draft, a Remotely Created Check (sometimes called a telecheck, preauthorized draft or demand draft) Is a check or draft that can be used to withdraw money from an Account. Unlike a typical check or draft, however, a Remotely Created Check is not issued by the paying bank or the drawer and does not contain the signature of the Account holder (or a signature purported to be the signature of the Account holder). In place of a signature, the Remotely Created Check usually has a statement that the Account holder authorized the check or has the Account holder's name typed or printed on the signature line. For example. If a person provides an Account number In response to a telephone solicitation, the telephone solicitor can use the Account number to issue a Remotely Created Check to withdraw money from that Account. Please refer to "Remotely Created Checks" in the CHECKS section of this Agreement for further details. Returned Item. An Item that Is presented against your Account for payment, but the Bank dishonors or rejects for payment due to an Insufficient Available Balance. The Bank may assess a Returned Item Fee for this service. Right of Set-off. The Bank's debiting of any deposit Account(s) you hold with the Bank (assets we owe you) to apply to a debt that you owe the Bank. Refer to "Right of Set-off and Security Interest" In the ADDlTlOftAL TERfUIS AND CONDITIONS sedion of this Agreement for further details. Shared ATM Network. Any automated teller machine that displays any of the logos on your Card. Substitute Check. To make check processing faster, federal law (Check 21) permits banks to replace original checks with "substitute checks." These checks are similar In size to original checks with a slightly reduced Image of the front and back of the original check. The front of a Substitute Check states: This Is a legal copy of your check. You can use it the same way you would use the original check." You may use a Substitute Check as proof of payment just like the original c^eck. Terminal. An ATM, self-service Terminal, or attended PCS Terminal; used Interchangeably with either the phrase ATM or PCS Terminal. Tiered Rate Account. An Account that may have two (2) or more Interest rates, determined by specified balance levels. WHEN YOU OPEN YOUR ACCOUNT Identification Requirements We require Identification, including a Social Security Number, Taxpayer Identification Number, and/or certification of foreign status (non-resident alien), for each signer and beneficial owner on an Account prior to opening the Account. We may refuse to open, and we may close, any Account for which you do not provide us with acceptable Identification for any signer or beneficial owner and/or If you do not provide a Taxpayer Identification Number, Social Security Number, or certification of foreign status. "Beneficial owner" means any Individual \Mio has ultimate control of the funds In the Account. In addition, we require appropriate business documentation Identifying the business entity and a Tax Identification Number, foreign identification number and/or certification of foreign status, as applicable, for the business entity prior to opening the Account. Account Opening Verification We may make any Inquiries that we consider appropriate to determine If we should open and maintain your Account. This may Include obtaining Information from financial institutions or other third parties about your Account and/or any signer on the Account. You agree that we may verify credit and employment history on you, any manager or owner and on any other signer on the Account by any necessary means. Including preparation of a credit report by a credit reporting agency. If we decline to open an Account or provide any services based on Information we receive, we vkrill provide you with the name and address of the company that provided the information. When we open your Account, we are doing so on a provisional basis and, subsequently, may close your Account at any time at our discreUon. Business and Other Organizational Accounts Accounts are available for and may be opened by a corporation, organization, or association, including an Individual acting as a sole proprietor, a partnership, a limited partnership, a limited liability partnership, a limited iiabliify company, a joint venture or a non-profit corporation. The Individuals authorized to open and take action on those Accounts (e.g., authorized signatories) may be required to provide the Bank with appropriate documentation (e.g. resolutions, agreements, etc.) to evidence the authority of those individuals to act on behalf of the ent^. We nmII honor such an authorization until we receive written notice of change from the goveming body of the entity. It Is mutually agreed that the authority of each person named as authorized to take action with respect to the Account shall continue In fiill force and effect until we receive actual written notice of revocation or change. Use and Purpose of Business Accounts Accounts for non-personal entitles such as sole proprietorships, corporations, limited liability companies, partnerships, etc. are intended for business and commercial purposes, and may not be used for personal, family or household purposes. If any of these Accounts are being used for personal, family or household purposes, we reserve the right to either close the Account or request that you change the Account to an appropriate product type designated by us for personal ownerships. Ownership Restrictions Applicable to Interest-Bearing Checking Accounts Federal law restricts ownership of certain fypes of interest-bearing checking Accounts by non-personal entitles to unincorporated sole proprietorships, non-profit organizations, governmental units, and fiduciaries where all beneficiaries would be entitled to maintain an Interest-bearing checking Account. If we find that you have an Interest-bearing checking Account and we believe you are not entitled to one, we reserve the right to change your Account to a checking Account not subject to these ownership restrictions. We will notify you prior to any change. GENERAL INFORMATION ABOUT DEPOSIT ACCOUNTS Balances and Cut-off Times Balances shown on statements, receipts, and records may not reflect transactions and charges made but not yet posted. Unless otherwise posted, the daily cut-off time for each branch is the same as the branch lobby closing time. Most transactions made before each branch's cut-off time will be posted on the Business Day they are presented. Check with the branch for any exceptions. Availability of your deposits for ATM and night drop transactions may be found in "Deposits at Automated Teller Machines and Cut-Off Times" in the FUNDS AVAILABILITY POLICY section of ttiis Agreement. Cut-off times for our Online and Mobile Service may be found in the separate Online and Mobile Service Agreement. Any knowledge, notioe, or stop payment order received by the Bank, or any legal process served upon the Bank, arrives too late to affect our right or duty to pay an item or charge your Account for the item if the knowledge, notice, stop payment order, or legal process is received or served on the later of either 10 a.m. local time or one (1) hour after the opening of your Branch of Account the next Business Day after the Business Day on which we receive the item, if your Branch of Account opens after 9 a.m. local time, then, for purposes of this provision, your Branch of Account shall be deemed to be our Contact Center with the stop payment cut-off time of 10 a.m. (local time of your Branch of Account). The cut-off time for the Bank to exercise Right of Set-off v^ii be the close of the next Business Day after the Business Day on which we receive the item. Identifying Your Account Number for Deposits You are responsible for correctly identifying the Account to which you want ffjnds deposited or payments made. We may credit a deposit to an Account based solely on the Account number listed on the deposit slip or other instruction to credit an Account, even if the name on the deposit slip or other instruction differs from the name on the Account. You are responsible for any cost, loss, or damage caused by your failure to identify correctly the Account to which a deposit is to be made. Change In Signers The Bank must be notified of any change to the signers on your Account. Any change.will be effective \Mthin a reasonable time of the Bank's receipt and acceptance of the new signatures at the Branch of Account. You must stop payment on any item(s) issued by any removed signer if you do not want any Item issued by a removed signer to be honored by us. Change in Address You are responsible for notifying us of any change in your address, name, telephone number or email address (if applicable). Unless we agree otherwise and except as provided in this Agreement or in any other agreement between us, such changes must be made in writing or online by at least one of the Account holders. Informing us of such changes on a check reorder form or via email is not sufficient. We will attempt to communicate with you only by use of the most reoent statement mailing address you have provided to us. We may change your address of record if we receive an address change notice from the U.S. Postal Senrice, or if we receive information from another person in the business of providing corrected address information that the address in our records no longer corresponds to your address. Change of address requests may be subject to verification. Signature Requirements if you indicate on your signature card or other Account opening documents that more than one (1) signature is required for Account opening, deposit, instructions. Account maintenance or for any form of withdrawal, that indication is for your ovm internal procedures, it Is not binding on us. We may honor the request and instructions of any signer on the Account and pay out funds from your Account if the item or other withdrawal instruction is signed or authorized by any one of the persons authorized to sign on the Account. You agree that we have no liability to you if we do this. Review of Drawer Signatures You agree that the Bank does not fail to exercise ordinary care in paying an item solely because our procedures do not provide for sight-review, provide for sight-review only for items above a threshold level, or prowde for sight-review on a sample basis, at our discretion. The Bank reserves the right not to sight-review drawer signatures because we pay items on an automated basis to reduce costs for all customers. To determine the authenticity of your signature, we may refer to your signature card or to an item or other document upon which your signature appears, if we cannot accurately verify your signature on any item by comparing it with your signature card, an item that posted to your Account, or other document upon which your signature appears, you are responsible for any losses that may result from our inability to verify your signature. Death or Incompetence You agree to notify us promptly in writing if any sole proprietor or any signer with a right to withdraw funds from your Account(s) dies or becomes legally incompetent. We may continue to honor your Items and instructions until: (1) we know of your death or incompetence, and (2) we have had a reasonable opportunity to act on that knowledge. We also may. at our sole discretion, freeze, set-off. refuse, and/or reverse any transaction (including but not limited to, federal or retirement benefits to the deceased) if any sole proprietor or any signer with a right to \Mthdraw funds from your Account dies or becomes legally incompetent. You agree that we may pay or certify any items drawn on or before the date of death or legal incompetence for up to 10 days after your death or legal incompetence unless ordered to stop payment by someone claiming an interest in the Account. You also agree that, at our sole discretion, we may continue to honor transactions by other signers on the Account and Account holders of the Account, if permitted by the Account type of ownership, until we receive \written notice to the contrary. Dormant Accounts and Escheatment State laws generally require that any Account or other property be escheated or sent to the U.S. State indicated by your last known address if, after a certain amount of time, the owner has not conducted certain fypes of activity on the Account, including: • Increased or decreased the balance of the Account, or • Corresponded in writing with the Bank concerning the Account, or • Otherwise indicated an interest in the Account as evidenced by a memorandum or other record on file with the Bank. Note: Automatic transactions such as Direct Deposits or recurring transfers do not count as activity on the Account. If your Account has none of the types of activity detailed above (or as detailed in the applicable State law) for a period of time, your Account may be designated as "dormant." Dormant Accounts will not receive bank statements. While dormant, the Account will continue to be charged applicable service charges. Unless your Account has a balance of under $10, we will 10 11 attempt to notify you and to advise you how to reactivate your Account. If your Account becomes dormant, any attempted activity may be dishonored. For example, credits and debits initiated through the Automated Clearing House may be rejected, and Items presented against the Account may be questioned and, if we believe appropriate, dishonored without any liability to you. Your property may be transferred to the appropriate U.S. State if no activity occurs in the Account within the time period specified by State law. The specific length of time between the last acliwty or contact and escheatment varies by State law, but is generally between three (3) and seven {7) years. The time period begins whenever you do any of the activities above or when a certificate of deposit matures. Unless your Account balance is less than $10, we wll attempt to notify you by sending a letter to your last known address before your deposit may have to be sent to the State. If no response to the letter is received from a legal owner of the Account, the ^nds \mII be sent to the State indicated by your last knov/n address. Once this has occurred, you will have to file a claim for the return of the funds with the State. Further information may be obtained from the State. Once your funds are surrendered to the State, you agree that we no longer have any liability or responsibility with respect to the funds. The Bank may assess an Inactive Account Letter Fee for each communication sent to you regarding inactivify, dormancy, and escheatment. Notices Any written notice you give to the Bank is effective when it is actually received by the Bank, and after we have had a reasonable opportunity to act on it. Any written notice the Bank gives to you is effective when it is deposited in the U.S. mail, postage prepaid, and addressed to you at your statement mailing address. Changes in Terms and Conditions We may amend, add, or delete any provisions of the terms and conditions detailed in these pages at any time. To the extent and in the manner and time frames required by law, we will notify you in advance of any changes that affect your rights and obligations. You indicate that you accept a change we make by continuing your Account relationship with us or, if the change affects your certificate of deposit, by allowing the certificate of deposit to renew after the change becomes effective. Sub-Accounts For our internal accounting purposes, your checking Account consists of two sub-Accounts. One of these is a transaction sub- Account (e.g., a checking sub-Account). You will transact business on this sut>-Account. The other is a nontransaction sut>- Account (e.g., a savings sub-Account). The sub-Accounts wll only occur on our books. You cannot directly access the nontransaction sub-Account, but you agree that we may automatically, and without a specific request from you, initiate indiwdual transfers of funds between sub-Accounts from time to time at no cost to you. This Account organization viriii not change the amount of federal deposit insurance available to you, your Available Balance, the information on your periodic statements, your fees, your bank statement or the interest calculation on your Account, if this is an Interest-bearing Account. 12 Positive Pay Service For business Accounts, you acknowledge that your failure to use our positive pay service could substantially increase the likelihood of undetected fraudulent actiwfy on your business Account(s) and that it is not unreasonable under the circumstances for us to require you to use our positive pay service upon request. You agree that if you fail to implement the positive pay senrice, you will be precluded from asserting any claim against us for paying an unauthorized, altered, counterfeit or other fraudulent Item that the positive pay senrice was designed to detect or deter, and we will not be required to re-credit your Account or otherwise be liable to you for paying such Item, provided we used ordinary care in the payment of any such item or transaction. Automated Clearing House Transactions We may accept on your behalf payments to your Account which have been transmitted through one or more Automated Clearing House. Credit for ACH transactions is proirisional until we receive final settlement for the transaction through a Federal Reserve Bank. If we do not receive final settlement, you agree that we are entitled to a refund of the amount credited to your Account for the transaction, and the party making payment to you shall not be deemed to have paid you the amount of the transaction. We wrill notify you of the receipt of ACH Items through the periodic statements we provide to you. Although we will not provide next day notice via mail, you may verify ACH transactions by accessing the various business online banking services or by contacting our Contact Center at the address or phone number listed at the end of this Agreement. These transactions are not subject to the Electronic Fund Transfer Act. Your rights and obligations with respect to ACH transactions involving your Account are governed by the laws of the state of New York, as well as the operating rules of the National Automated Clearing House Association. Unlawful Internet Gambling Banking regulation prohibits banks from processing restricted transactions through a business account. Restricted transaction means any of the following transactions or transmittais involving any credit, funds, instrument, or proceeds that prohibits any person engaged in the business of gambling, betting or wagering (which does not include the activities of a financial transaction provider, or any interactive computer service or telecommunications service) from knowingly accepting, in connection with the participation of another person in unlawful internet gambling: (1) credit, or the proceeds of credit, extended to or on behalf of such other person (including credit extended through the use of a credit card); (2) an electronic fund transfer, or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer,' or money transmitting senrice, from or on behalf of such other person; or (3) any check, draft, or similar instrument that is drawn by or on behalf of such other person and is drawn on or payable at or through any financial institution. DEPOSITS TO YOUR ACCOUNT Accepting Deposits At our sole discretion, we may accept or reject deposits to your Account from any source and need not question the authorify of tiie depositor to make the deposit. In accepting Items for deposit, 13 we will give only Provisionat Credit until coiiection is fnal for any items, other than cash, we accept for deposit (including Items drawn "on us"). Before settlement of any Item becomes final, we act only as your Agent, regardless of the form of endorsement or lack of endorsement on the Item and even though we provide you Provrisional Credit for the Item. The Bank may refuse to accept any Item. If the Bank accepts an Item, the risks in the check collection process shall be borne solely by you. You acknowledge that if an Item has "cleared" or has been "paid," the Item is still subject to reversal and cha^eback to your Account whenever the Bank is unable to collect the funds from the drawee/issuer institution. If the institution upon which an Item Is drawn does not honor the Item, If an Item you deposit is returned unpaid, or if an Item is lost in transit, the Bank is authorized to reverse the deposit to your Account (or debit your Account for checks cashed or paid), to reverse any related interest, and to pursue a collection action against you if necessary, all without regard to the timeliness of the return of the item. We reserve the right either not to credit your Account or, if already credited, to charge your Account for any Items lost in transit. In the unlikely event that your deposit is lost in transit, you will be asked to recreate the check portion of your deposit. Therefore, you should maintain adequate records to permit identification of the drawer of any deposited Item that is reported lost in the payment process and to provide that drawer vrith adequate information to take whatever action is appropriate for cancellation and/or replacement of ttie item which you deposited. You agree that Bank of the West is not responsible for items lost while not in our possession. We may reverse any Provisional Credit for Items that are lost, stolen, or returned (or debit your Account for checks cashed). We may also reverse any related interest without regard to the timeliness of the return of the item. If you give us cash that we later determine to be counterfeit, we will charge your Account for the amount we determine to be counterfeit. Actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final coiiection in U.S. dollars. We are not responsible for transactions by mall or outside depository until we actually record them. We will treat and record all transactions received after our "daily cutoff time" on a Business Day we are open, or received on a day we are not open for business, as if initiated on the next Business Day that we are open. At our option, we may take an Item for collection rather than for deposit. If we accept an item for coiiection, the Item will be deposited to your Account when payment of the Item is received by the Bank. At our discretion, our Collection Fee may be netted from the proceeds of the collected Item. In addition, institutions that pay Items on collection typically remit the amount of the Item less any fee they assess, if we accept a third-party check for deposit, we may require any third party endorsers to verity or guarantee their endorsements, or present acceptable identification and endorse in our presence. We reserve the right to require that any check be made payable to, and be deposited into the Account of, a named payee. Any items that the Bank is unable to collect may be returned to you by standard U.S. mail. Verification of Deposits All transactions, induding those for which the Bank has provided a receipt, are subject to the Bank's final verification. Verification of a deposit does not occur at the teller window (or upon deposit into an ATM). Consequently, the receipt that you receive at the time of your deposit is not evidence that your deposit has been verified. If you give a written verification of deposit to a third party that requests us to release your Account-related information, we will assess a fee to the third party for this service. Correction of Deposit Errors When we receive your deposits, we may provisionally credit your Account for the amount indicated on the deposit slip (or. as to ATM deposits wiUrout a deposit slip, the amount indicated on the ATM screen), subject to later verification by us. You must ensure that the amount indicated on the deposit slip (or ATM screen) is correct even if you did not prepare a deposit slip. If we later determine that the amount indicated on the deposit slip or reported on an ATM receipt is incorrect, we may make the appropriate debit or credit adjustment to your Account. The Bank may reverse or otherwise adjust any credit it determines was erroneously made to your Account at any time without prior notice to you. CHECKS Check Cashing We may require that you first deposit to your Account any Item you have requested be cashed. At our discretion, however, we may permit the negotiation of Items payable to you for cash with or without your endorsement. If any cashed Item is returned to us for any reason, we may charge the Returned item to any of your Accounts. A Deposited Item Returned Fee may also be assessed on your Account. We may require that any Item drawn on your Account be presented for cashing at your Branch of Account. We may also require reasonable identification to cash such an Item. We will decide what identification is reasonable under the circumstances and such identification may be documentary or physical and may include collecting a thumbprint or fingerprint. The inability or refusal to provide the fingerprint by any person presenting an Item for cashing is grounds for us to refuse to cash the Item. You agree that we shall have no liability, including, \Mthout limitation, liability for wrongful dishonor, for our refusal to cash an Item under these conditions. Check Cashing Fee - Bank of the West Check We may charge a fee to anyone v\riio does not have an eligible deposit Account with us who is cashing an Item drawn on your Account, with certain exceptions. Refer to our Schedule of Fees and Charges for Business Deposit Accounts for details. in many states, employers are obligated to provide payroll payments to employees such that there are no bank fees for their employees to negotiate the payroll payment at the bank. We offer services whereby employers can fulfill statutory obligations to employees. Check with your Branch of Account. Remotely Created Checks Deposited You warrant and agree to the following for every Remotely Created Check we receive from you for deposit or collection: (1) you have received express and verifiable authorization to create the Remotely Created Check in the amount and to the payee that appears on the Remotely Created Check; (2) you will maintain proof of the authorization for at least three (3) years from the date of the auti^orization, and supply us the proof if we ask; and (3) if a Remotely Created Check is returned, you owe us the amount of the Remotely Created Check, without regard to when the Remotely Created Check is returned. At any time, should you deposit or wish to deposit Remotely Created Checks, we may require that you execute additional agreement(s) and that you esteblish a reserve Account, pledged to us, that would serve as a 14 15 fund to accept chargebacks of Remotely Created Checks. Any reserve Account would be required to be maintained for the length of the applicable statute of limitation. We may take funds from any of your Accounts, including any reserve Account, to pay the amount you owe us. If there Is an Insufficient Available Balance in your Account to pay the amount of our loss, you still owe us and shall promptly pay the remaining balance. Requirements When Creating or Depositing a Remotely Created Check Any Remotely Created Check you seek to deposit must contain the followng information for the account of the person for whom you have created the check: • The account owner's bank account number. • The account owner's name printed or typewritten. • Refer any questions on your creating a Remotely Created Check to your vendor who supports this service. You also must include an External Processing Code (EPC) of a '6' in position 44 of the MICR line to the immediate left of the Routing number and such other features including any size or ctxQck processing requirements as we may require from time to time. Wth respect to any Remotely Created Check you deposit, you represent that you are entitled to enforce each Remotely Created Check. We may immediately terminate or limit our acceptance of Remotely Created Checks at any time without pnor notice. You agree to indemnify, defend and hold us harmless from and against any and all losses, damages, claims, judgments, liability, costs, and expenses that we may incur arising directly or indirectly from your deposit of Remotely Created Checks. Your indemnification obligations under this provision shall survive any termination of our Account relationship with you. Postdated and Void-Dated Checks A postdated check is one which bears a date later than the date on which the check is written. We may properly pay and charge your Account for a postdated check even though payment was made before the date of the check, unless we have received a stop payment order in time to have a reasonable opportunity to act. If you wish a postdated check to be honored on or after the date written on the check, you must release the stop payment order on the date you want the postdated check to be paid. Because we process checks mechanically, your stop payment order will not be effective and we will not be liable for filing to honor your stop payment order unless it precisely identifies the number, date, amount and payee of the Item. If you put a void- date on your chedc (a date or number of days after which the check is not good), we may pay the check and cha^e it to your Account even if it is presented for payment after the void-date. If you do not want us to pay a void-dated check, you must place a stop payment order on it on or after the void date. Refer to "Stop Payments" in this section of this Agreement. Stale-Dated Checks We are not obligated to, but may at our option, pay a check, other than a ceilified check, presented for payment more than six months after its date. If you do not want us to pay a stale- dated check, you must place a stop payment order on the check. Refer to "Stop Payments" In this section of this Agreement. Checks Drawn In Non-U.S. Dollars and/or Drawn on Foreign Banks We may refuse to accept any item(s) for deposit or collection if they are payable In a currency other than U.S. dollars. If we accept any Item for deposit, we may assume that any Item drawn on an Institution outside the United States of America ("Foreign Bank") is payable in the currency of the country where the Foreign Bank is located. If we accept an Item drawn on a Foreign Bank, you assume all risk of loss associated with currency value fluctuations and late returns. We may use our current buying or selling rate, as applicable, when processing foreign currency Items and may recover from your Account, or from you, any costs or loss Incurred in connection with our processing of such Items. Refer to "Accepting Deposits" in the DEPOSITS TO YOUR ACCOUNT section of this Agreement. Endorsements or Notations on Items All Items presented for deposit should be properly endorsed. To ensure that your Item is processed without delay, you must endorse it (sign it on the back) in a specific area. Your entire endorsement (whether a signature or a stamp) along virith any other endorsement information (e.g. additional endorsements, ID information, driver's license number, etc.) must fell vwthin 1 1/2" of the "trailing edge" of an Item. Endorsements must be made in blue or black ink. so that they are readable by automated check processing equipment. As you look at the front of a check, the trailing edge" is the left edge. When you flip the check over, be sure to keep all endorsement information within 1 1/2" of that edge. If an Item is not endorsed, the Bank is authorized to supply any missing endorsement or collect any Item without endorsement. You warrant all endorsements are genuine. There may, however, be some instances in which the Bank may require your endorsement before accepting an Item for deposit or encashment. We may accept or pay Items bearing restrictive endorsements or other notations, whether on the front or the back of the Item. You agree that such restrictive endorsements and other notations shall have no effect on us. You agree to indemnify, defend, and hold us harmless from and against any and ail losses, damages, claims, judgments, liability, costs, and expenses related to or arising out of our acceptance or payment of such Items. Your Indemnification obligations under this provision shall survive any termination of our Account relationship with you. We reserve the right to refuse to cash or accept Items bearing qualified endorsements (e.g., an endorsement "without recourse" or "no protest"). If we agree to accept such Items, you agree that such qualified endorsements shall have no effect on us. We reserve the right to refese to cash or accept for deposit Items which bear more than one (1) endorsement or the endorsements of payees who are not known to us. If you wish to deposit or cash an Item that has been endorsed by a payee who is not known to us, we reserve the right to require that: (1) all endorsers be present and endorse in our presence before we accept an Item; or (2) all endorsements be guaranteed by a financial institution. "Mechanized" and Facsimile Check Signatures If you use a procedure or mechanism that causes Remotely Created Checks or any other type of check to be drawn on your Account with a typed signature, facsimile signature, notation, mark, or other form of mechanical symbol (collectively, the "Mark") that is not the signature that is on the signature card that you signed vrhen you opened your Account, you are adopting the 16 17 Mark as your signature and authorizing the Bank to pay checks on which the Mark appears or purports to appear. You should understand, however, that it is easier for someone to imitate, duplicate, or counterfeit a form of mechanical signature than it is for someone to imitate, duplicate, or counterfeit a unique and distinctive signature. For this reason, by adopting a form of Made, you are assuming ail risk of loss resulting from the unauthorized use and/or forgery of the Mark, and are explicitly authorizing the Bank to pay any and all checks presented against your Account which contain any mechanical signature which reasonably resembles the form you have adopted regardless of: • whether the Mark is actually that which you have adopted, • how or by whom the Mark was affixed, and • whether the check vt^ich bears or purports to bear the Mark was, in fact, authorized by you. If you adopt a facsimile check signature, you agree to indemnify, defend and hold us and our correspondent banks harmless from and against any and all losses, damages, claims, judgments, liability, costs, and expenses v^ich we or they may suffer arising directly or indirectly out of the misuse, uniawhjl, or unauthorized use of a facsimile signature by any person, including but not limited to, the payment of all Items bearing, or purporting to bear, your authorized facsimile signature, even if the facsimile signature was affixed by copying or offierwise counterfeiting the facsimile signature. Unless you make advance arrangements with us, we have no obligation to honor facsimile signatures on your Items. You must notify us at once if you suspect that your facsimile signature is being or has been misused. Your indemnifcation obligations under this provision shall sun/ive any termination of our Account relationship with you. Returned Deposited Items If an Item you deposit'to or cash against your Account is retumed to us for any reason, without regard to the timeliness of the retum, the amount of the item and a Deposited Item Retumed Fee will be charged to your Account. If we receive an affidavit, declaration under penalty of perjury, or another form of certification stating, as to any Item on which we make a warranty, (1) that an endorsement of the Item deposited to or cashed against your Account is forged, unauthorized, or missing. (2) that the Item contains an alteration, or (3) that the Item is otherwise unauthorized so that we may have breached a warranty we make as a depository bank, we may rely on the truthfulness of the affidavit, declaration, or certification. Without prior notice to you, the Bank reserves the right in its sole discretion to place a hold on the funds pending an investigation or to charge back to your Account the amount of any Item deposited to your Account or cashed for you and which is later retumed to us due to an allegedly forged, unauthorized or missing endorsement, claim of alteration, encoding error, or other problem which, in our judgment, justifies reversal of credit. We reserve the right to deposit ttie funds at issue wth an appropriate court. Once we have debited your Account for the amount of the Retumed Item and the Deposited Item Retumed Fee, the item may be mailed back to you by standard U.S. mail at the address we have on our records for the Account in question. Advanced Notification of Retumed Item If we receive advance notification that any Item which you deposited or cashed is being retumed by the drawee institution, we reserve the right to place a hold on your Account for the amount of those funds. We will mail you a notice ad\rising you of this action. Upon our actual receipt of the Item, it may be 16 charged to your Account and, unless an Overdraft is created, will be returned to you so you may take whatever action you deem appropriate. Stop Payments Before we pay a check or third-party transfer, you have the right to place a stop payment order ("Order") on the Item, provided that: • The Bank is authorized to deduct from your Account the Bank's applicable Stop Payment Fee. • Each Order applies ONLY to the Items that conform EXACTLY to the descriptions you pro\rided on the Order. If any of the Information conceming the Item is not given or is Incorrect (including your failure to give the precise amount of the Item, to the penny), the Bank may not be able to honor the Order. • The Bank must receive each Order at a time and in a manner that allows the Bank a reasonable opportunity to act on the Order for the Order to be honored. Each Order shall not be effective if the Bank has already: (1) accepted or certified the Item; (2) paid the Item in cash; or (3) settled for the Item without having the legal right to revoke the settlement under statute, rule, or agreement. • Each Order will terminate at the earliest of the follovring: (1) 13 months from the date it is received by the Bank; (2) your closure of the Account; or (3) in the case of non-recurring ACH Orders, after the ACH Item is retumed one (1) ti me. Unless the Order is renewed (and the fee applicable at the time charged), the Item may be paid if it is presented for payment after the Order terminates. If the Order terminated as a result of you closing the Account, a new Order must be placed at the fee applicable at that time if you later reopen the same Account. • If the Bank is able to and does stop payment on the item, the payee or other holder of the Item may be able to recover from you the amount of tiie Item plus other appropriate fees and damages. • If more than one person is permitted to draw (make NMthdrawals) on your Account, any of those persons may stop payment on any Item. • You agree to indemnify, defend and hold the Bank harmless from and against any and all losses, damages, claims, judgments, liability, costs and expenses that the Bank may either incur or be assessed due to honoring the Order. You authorize the Bank to debit your Account for any such amount due the Bank. Your indemnification obligations under this provision shall survive any termination of our Account relationship with you. • if the Bank re-credits your Account after paying the Item over a valid and timely Order, you agree to transfer to the Bank ail of your rights against the payee or other holder of the Item and to assist the Bank in any later action taken against said payee or other holder. Order of Paying Checks and Other Items We post many transactions in "groups" at the end of each Business Day as follows: First, we credit your Account for Items and funds that have been accepted for deposit to your Account. Charges against your Account are then generally processed in the following sequence; (1) previously authorized transactions (e.g., ATM withdrawals, PCS Debit Card transactions, checks 19 you cash at a branch, and checks drawn on the Bank that are negotiated at one of our branches); (2) wire transfers; (3) transfers of ^nds between Bank of the West Accounts; (4) Bank fees; (5) checks presented for payment against your Account; and (6) transactions presented through the ACH. Note; Online banking bill payments may be processed as either checks or ACH transactions. Wthin each group, we generally pay Items as follows: If Items have a machine readable date and/or time stamp, we pay the Items in the order of the date/lime stamp. If we have no date/time stamp, we pay those items after Items with a time stamp, sequenced from the lowest amount to the highest amount. If the Items are checks, we pay them In check number order (from low to high). When we cannot readily determine check numbers, we pay those checks after checks with identifiable check numbers in sequence from the lowest amount to the highest amount. The order in which transactions are paid can affect the total amount of Overdraft/Returned Item Fees. On any given Business Day, we may have system issues that could cause us to change the order in which groups and transactions are processed. Our order of posting depends on a number of factors, including when a transaction occurs, whether it has already been approved by us or has become final, the order in which it is presented, the amount, system availability, risk to the Bank, and the type of transaction in question, among other variables. We will not give you prior notice of any change to the general posting order described above. We always reserve the right to post transactions that are payable to Bank of the West first, and we may post any transaction earlier or later in the process than is indicated above. As such, if you want to avoid an Overdraft or the possibility of a rejected transaction, you should take steps to ensure that your Account has a sufficient Available Balance to cover each of your transactions and fees. Note: We may provide you with balance, transaction and other information throughout the day via online banking, the Contact Center, or a branch employee. Since many transactions are not ordered, posted or processed unUI the end of the Business Day, we cannot guarantee which Items or transactions (with a few exceptions, such as checks cashed at a branch) wili be paid until pror^sing has been completed. Check Printing If you do not purchase your check stock from us, you must be certain that we approve the check stock you purchase. We may refuse any withdrawals or transfer requests which you attempt on forms not approved by us or by any method we do not specifically permit. Even if we honor a nonconforming request, we are not required to do so later. On most Accounts, there \mII be a charge for check printing. The printing charge will vary according to the check design, style and quantity you select. Check Processing We process Items mechanically by relying solely on the information encoded in magnetic ink along the bottom of the Items. This means that we do not individually examine all of your items to determine if the Item is properly completed, signed and endorsed or to determine if it contains any information other than what is encoded in magnetic ink. You agree that we have not failed to exercise ordinary care solely because we use our automated system to process items and do not inspect all Items processed in such a manner. Using an automated process helps us keep costs dowrr for you and all Account holders. Checks Accepted for Deposit Checks accepted for deposit to, or to be cashed against, your Account may not be available for immediate withdrawal. Refer to the FUNDS AVAILABILITY POLICY section of this Agreement for information about when you can withdraw funds you deposit. Aiso, although we attempt to identify and prevent fraudulent transactions, we have no duty to you to determine whether any check you deposit or cash is forged,, counterfeit, altered, improperly endorsed, or otherwise improper. Electronificatlon of Checks Many transactions which are initiated with a paper check may be converted into an electronic fund transfer through the Automated Clearing House (ACH) at some point in the payment process. This section describes four common ACH programs that may affect your Account and may be identified on your Account statement. • Point of Purchase Program (POP): Merchants participating in the "Point of Purchase" program are able to take one (1) of your checks and scan it at the point of purchase thereby converting it into an electronic payment through the ACH. Participating merchants are required to: (1) inform you of their participation in Uie program; (2) request your signature; (3) return your check to you marked "Void" or "Not Negotiable": and (4) give you a receipt. This electronic transaction will be debited from the Account on which the check was drawn and w/ill appear on your statement with the details of the transaction, including the check number. To participate in the Point of Purchase program, you must use a check with a preprinted check number on it. You may not use a check that you have previously used, whether or not it has been marked "Void" or "Not Negotiable." You may stop payment on these transactions before your Account is debited if you notify us that the check was converted to a Point of Purchase electronic payment.' If you fail to notify us of the conversion of your check into an electronic payment, we will not be liable for our failure to stop payment on the electronic payment • Accounts Receivable Truncated Checks Program (ARC): Some payees that you pay on a regular basis, such as utilities, credit card companies, and insurance companies participating in the ARC Program, may convert the check you mail to them into an ACH electronic debit from the Account upon which the check was written. The debit vwll appear on your Account statement with the check number, the payee's name and the indicator "Check Payment." The payee keeps the check and it wli not be returned to you. When the payee participates in this program, the payee must notify you. You should review all statement messages and materials accompanying your bill closely for this notification. You may stop payment on these transactions as long as your stop payment request is received before the transaction is posted. • Back Office Conversion Program (BOC): Merchants or manned bill payment locations participating in the ACH "Back Office Conversion" program will accept your check for payment and later scan It in a back office environment converting it to an ACH electronic debit to your Account. Participating merchants and bill payment locations are required to inform you of their participation in the program with conspicuous signage as well as provide notification on your receipt to include a phone number for questions. This electronic transaction will be debited from the Account on which the check was drawn and will appear on your 20 21 statement with the details of the transaction, Including the check number, payee information and date. You may stop payment on these transactions before your Account is debited. • Represented Checks Program (RCK): Some payees may convert a returned unpaid check into an ACH electronic debit from the Account upon which the check was written. The debit will appear on your Account statement \Mth the check number, the payee's name, and the Indicator "Converted Paid Item." The payee keeps the check and it will not be returned to you. When the payee participates In this program, the payee must notify you. You should review all signage and postings at merchant locations for this notification when writing a check. You may stop payment on these transactions as long as your stop payment request Is received before the transaction Is posted. Merchant Capture Program Merchants may participate In a merchant capture program with their bank. This program allows merchants to electronically transmit checks to their bank for deposit to the merchant's account rather than physically deposit the checks at their bank. Merchants are not .required to notify you when they are participating In a merchant capture program. When you write a check to a participating merchant, the merchant will retain and later destroy the check; the check will not be retumed to you. The debit will appear on your Account statement along with your other payments. You may stop payment on these transactions as long as your stop payment request is received before the transaction is posted. You may or may not receive a substitute check or image of the check In your statement. Check Deposits by a Mobile Deposit Service Both consumers and businesses to whom you make checks payable may participate In a mobile deposit service with their bank whereby they may make deposits of checks to their checking, savings, or money market account from their home or other remote iocations by scanning eligible checks. The images of the checks and associated deposit account Information will be delivered electronically to their bank rather than be physically deposited at their bank. Please be aware that a participant In a mobile deposit service Is not required to notify you when they make such a deposit. If you write a check to a parlldpant and the check Is deposited using a mobile deposit service with their bank, the participant \mII retain the check, and the check will generally not be retumed to you. The debit will appear on your Account statement along with your other payments. You may stop payment on these transactions as long as your stop payment request Is received before the transaction Is posted. You may or may not receive a Substitute Check or image of the check In your statement. FUNDS AVAIUBILITY POLICY Your Ability to Withdraw Funds Our policy is to make funds from your cash and check deposits available to you on the first Business Day after the Business Day we receive your deposit. Electronic Direct Deposits and wire transfers will be available on the Business Day we receive the deposit Once the funds are available, you can vrithdraw them In cash and we wll use the funds to pay Items presented against the Account. Determining the Availability of Your Deposits For detemilning the availability of your deposits, every day Is a Business Day, except Saturdays, Sundays, and federal holidays. If you make a deposit at one of our branches on a Business Day that we are open, we will consider that day to be the day of your deposit. However, If you make a deposit at one of our branches on a non-Business Day, we will consider that the deposit was made on the next Business Day we are open. Deposits made at one of our night drop facilities are considered to be received and deposited when we remove them fi'om the night drop. We wlil remove and process deposits once a day not later than the next Business Day following the day the deposit was placed in our night drop. Longer Delays May Apply In some cases, we vdll not make all of the funds that you deposit by check available to you on the first Business Day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second Business Day after the day of your deposit. The first $200 of your deposits, however, will be available on the first Business Day after the day of your deposit. If we are not going to make all of the funds from your deposit available on the first Business Day after the day of your deposit, we will notify you at the time you make your deposit. We \mII also tell you \Mien the funds will be available. If your deposit is not made directly to one of our employees, or If we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit. If you vrill need the funds from a deposit right away, you should ask us when the funds will be available. In addition, some or all of the funds you deposit by check may be delayed for a longer period under the following circumstances: • We believe a check you deposit will not be paid. • You deposit checks totaling more than $5,000 on any one day. • You redeposit a check that has been retumed unpaid. • You have overdravm your Account repeatedly In the last six months. • There Is an emergency, such as failure of computer or communications equipment. We will notify you If we delay your abilify to vrithdraw funds for any of these reasons, and we vtrili tell you when the funds wll be available. They will generally be available no later than the seventh Business Day afier the day of your deposit. We are under no obligation to pay any Items you have authorized against funds that are not yet available. The Bank may pay such Items at our discretion and overdraw your Account or they may be retumed due to an insufficient Available Balance. Refer to the OVERDRAWN ACCOUNTS AND PAYMENT OF OVERDRAFTS section of this Agreement. Special Rules for New Accounts If you are a new customer, the following special rules will apply during the first 30 days your Account Is open. When opening a business Account, you are generally considered a new customer even If you currently have a personal checking Account wifri the Bank. 22 23 Funds from electronic Direct Deposits and wire transfers to your Account will be available on the day we receive the deposit. Funds from deposits of cash and the first $5,000 of a day's total deposits of cashier's, certified, teller's, traveler's, and federal, state and local government checks will be available on the first Business Day after the day of your deposit If the deposit meets certain conditions. For example, the checks must be payable to you. The excess amount over $5,000 will be available on the ninth Business Day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) Is not made in person to one of our employees, the first $5,000 will not be available until the second Business Day after the day of your deposit. Funds from all other check deposits vmII be available on the ninth Business Day afier the day of your deposit. Deposits at Automated Teller Machines and Cut-Off Times If you make a deposit at one of our ATMs before 4:30 PM Pacifio Time (PT) on a Business Day we are open, we will consider that day to be the day of your deposit. However, If you make the deposit after 4:30 PM PT, or on a non-Business Day, or on a day we are not open, we will consider our next Business Day we are open to be the day of your deposit. The first $200 of funds from any deposit (cash or checks) made at ATMs we own or operate will be available on the first Business Day after the day of your deposit, unless a longer hold applies. Holds on Other Funds (Check Cashing) If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your Account. Those funds will be available at the time funds from the check we cashed would have been available If you had deposited it. Holds on Other Funds (Other Account) If we accept for deposit a chedc that is drawn on another bank, we may make funds from the deposit available for withdrawal Immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit In another Account with us. The funds In the other Account would then not be available for withdrawal subject to the time periods described In this section for the type of check that you deposited. Effect of Release of a Hold Our voluntary release of a hold on fijnds or the expiration of a hold, does not guarantee that the funds are "good" or that the check in question will not be returned. If any Item you deposited Is retumed for any reason, your Account may be charged for such retumed item(s). WITHDRAWALS AND ACCOUNT CLOSURES Closure of the Account We may close your Account at any time, with or witfiout cause, upon reasonable notice to you and tender of the Account balance (including any accrued interest if applicable, subject to any agreement concerning maturity or the Bank's Right of Set- ofO either In person or by mail. Items presented for payment after the Account Is closed may be dishonored. Reasonable notice depends on the drcumstances, and in some cases, such as when we cannot verify your Identity or we suspect fraud. It might be reasonable for us to give you notice after the closure or when Account closure becomes effective. For instance. If we suspect fraudulent activity with respect to your Account, we might immediately freeze or close your Account and then give you notice. You agree to keep us informed of your current address at all times. If your checking, sawngs, or money market Account reaches a zero dollar balance ($0) and maintains that balance for 90 days or more, your Account may be closed without notice to you. In addition, your Account will be subject to closure as a result of inactivity and escheatment of the balance in accordance with applicable State law. Refer to "Dormant Accounts and Escheatment" In the GENERAL INFORMATION ABOUT DEPOSIT ACCOUNTS section of this Agreement. When you close your Account, you are responsible for leaving enough money in the Account to cover any outstanding items to be paid from the Account, if you close your Account, any accrued Interest that has not yet been credited to the Account will be forfeited. This Includes Account closings caused by legal process. Reporting of Account Closure If you do not satisfactorily maintain your Account or If we close your Account for cause, information concerning your Account Including, without limitation, insufficient funds activity, fraud or attempted fraud perpetrated by you, or criminal activity, may be reported to consumer reporting agencies. Information we report usually includes, as applicable, your name, business name, address, Taxpayer Identification Number or Social Security Number, driver's license number, and the date and reason the Account was closed. The consumer reporting agency may supply this information to others. Adverse information prodded to a consumer reporting agency may affect your ability to open another deposit account at other financial Institutions. Right to Advance Notice of Withdrawal or for Cash Withdrawals We reserve the right to require not less than 7 days' notice In writing before each withdrawal from an interest-bearing checking Account (unless you are Informed otherwise), sawngs Account or money market Account as defined by Regulation D. Additionally, if you require a withdrawal from your checking Account in the form of cash, we reserve the right to require Indemnification from you and not less than 7 days' notice In writing before the withdrawal. Authority to Withdraw Unless clearly indicated otherwise on tf»e Account records, any signer on your Account, acting alone, who signs to open the Account or has authority to make withdrawals may withdraw or transfer all or any part of the Account balance at any time. Each of you (until we receive written notice to the contrary) authorizes each other person who signs or has authority to make vrithdrawals to endorse any Item payable to you or your order for deposit to this Account or any other transaction with us. The Bank may honor all transactions authorized by any signer on your Account, Including third-party drafts, POS transactions, electronic transfers, and ATM transfers and withdrawals, as previously arranged, from any Account. For some Accounts, the Bank may require you to surrender any certificate or other writing evidencing the funds on deposit. 24 25 other Withdrawal Umttations We reserve the right to require you to provide seven (7) days prior notice if you request and we agree to provide you with a large cash vwthdrawal. We reserve the right to obligate you to execute an indemnity for large cash withdrawals. We also, at cur sole discretion, reserve the right to pay out any withdrawal from your checking Account in the form of a cashier's check. We may refuse any withdrawal or transfer request which is greater in number than the frequency permitted, or which is for an amount greater or less than any withdrawal limitations. We will use the date the transaction Is completed by us (as opposed to the date you initiate It) to apply the frequency limitations. In addition, we may place [imitations on the Account until your identity Is verified. Refer to the IMPORTANT INFORMATiON ABOUT YOUR BUSINESS CHECKING. SAVINGS AND MONEY MARKET ACCOUNTS section of this Agreement for details related to frequency limitations on withdrawals from your savings and money market Accounts. Withdrawals from a certificate of deposit prior to maturity or prior to any notice period may be restricted and may be subject to a penalty. Refer to the IMPORTANT INFORMATION ABOUT YOUR BUSINESS CERTIFICATE OF DEPOSIT ACCOUNTS section of this Agreement for details related to any applicable \A#idrawal penalty. Availability of Funds Refer to the FUNDS AVAILABILITY POLICY section of this Agreement for Information about when you can withdraw funds you deposit. For those Accounts to which our Funds Availability Policy does not apply, you can ask us when you make a deposit when those funds will be available for withdrawal. We may determine the amount of available funds in your Account for the purpose of deciding whether to return an Item for Insufficient funds at any time between the time when we receive the Item and when we return the Item or send a notice In lieu of return. DEBIT CARD SERVICES FOR BUSINESS ACCOUNTS Indicated In this section of the Agreement are types of transactions that you may conduct using your business Debit Card. Your business Debit Card permits you to access your Account via Bank of the West ATMs or Shared ATM Networks, to obtain cash at other financial Institutions using the Mastercard® network, to conduct merchant and self-service PCS purchases, and to conduct such other activities as we permit to holders of a Card, subject to certain transaction limitations as outlined below. In addition, you may arrange to have electronic funds transfers to or from your business Account that are authorized by you and initiated by third parties. Please read this section of this Agreement carefully because It tells you your rights, liabilities and obligations for the transactions listed. Bank of the West ATM Account Access * A business Debit Card (available to all businesses), along with a PIN, allows you access to Bank of the West's ATMs. Most of our offices have ATMs, and the ATMs are available virtually 24- hours a day. Consult a branch office for specific hours and locations. You may use your Card and PIN to perform any of the followng transactions: • make deposits to your linked business checking, money market, or savings Account(s); • wiUidraw cash from your linked business checking, money market, or savings Account(s); • transfer funds between your linked checking, money market, or savings Account(s); • make payments from your linked business checking, money market, or savings Account(s), such as loan payments, accepted by Bank of the West; • obtain the Account balance of your linked business checking, money market, or savings Account(s): and • obtain a statement of the last ten (10) transactions (where available) on your Account(s). Some of these services may not be available at all Terminals. The types of ATM transactions you may perform depend on the types of Accounts you maintain vwth us and the type of Terminal. Designation of Primary Funding Account You may link all your checking, money market savings, and savings Accounts to your Card, but you must, however, designate one checking Account to be your primary funding Account. If you have more than one (1) checking Account linked to your Card, you may change your primary Account designated for use by contacting our Contact Center at the number listed at the end of this Agreement. Shared ATM Network Account Access * You may access your Account(s) at a Shared ATM Network using your Debit Card and PIN to: • withdraw cash from your primary business checking, savings, or money market Account(s); • transfer funds among your linked checking, money market and savings Account(s); and • determine the Available Balance in your linked primary business checking, savings, or money market Account(s). Some of these services may not be available at all ATMs. The types of ATM transactions you may perform depend on the types of Accounts you maintain with us. Frequency and Dollar Limitations at Bank of the West and Shared ATM Networks * Unless you are informed othenwise: • you may make an unlimited number of cash withdrawals from Bank of the West ATMs or Shared ATM Networks each calendar day; • you may withdraw up to $500 (or such other maximum amount as is agreed upon between you and the Bank) In cash each calendar day. For Shared ATM Networks, the dollar limitation Includes the amount of any fee Imposed by the owner of the ATM. We reserve the right to change Urese maximum daily limits on cash withdrawals, which we make based on periodic risk assessments. Types of Debit Card PoInt-of-Sale Transactions * You may access your primary checking Account to purchase goods (In person, online, or by phone), pay for services (In 26 27 person, online, or by phone), get cash from a merchant. If the merchant permits, or from a participating financiai institution, and othenMse make any purchase with participating merchants who have agreed to accept the Debit Card. Frequency and Dollar Limitations on Point'Of-Sale Transactions * Unless you are informed otherwise, using your Debit Card: • you may make up to 30 merchandise transactions per calendar day, per Debit Card. These transactions include PIN-based PCS. signature-based PCS, phone, electronic payments, and internet purchases each calendar day; • you may purchase up to $3,000.00 (or such other maximum amount as is agreed upon between you and the Bank) worth of goods or services each day that you use your Debit Card; and • you may withdraw up to $500.00 in cash each day when you use your Debit Card to obtain cash from other financial institutions using the Mastercard® Network. Please note that the dollar limitation includes the amount of any fee imposed by the merchant. Also, the dollar limitations on PCS transactions may vary depending on the type of Account(s) you maintain with which the Debit Card is associated. We reserve the right to change these maximum daily limits on cash withdrawals and purchases, which we make based on periodic risk assessments. * Aii transactions are subject to funds availability and applicable transaction limits. Currency Conversion and Foreign Transaction Fees For any transactions conducted in a currency other than U.S. dollars, the merchant, network, or card association that processes the transaction may convert any related debit or credit into U.S. dollars in accordance with its then-current policies. Mastercard® currently uses a conversion rate that is either (a) selected from a range of rates available in the wholesale currency markets (which rate may be different from the rate Mastercard® itself receives), or (b) the government-mandated rate. The conversion rate may be different from the rate in effect on the date of your transaction and the date it is posted to your Account. Your foreign transaction will Incur a Mastercard® fee and a Bank of the West fee for each transaction that you conduct outside the United States in a foreign currency. These variable fees will be separately disclosed on your periodic statement The applicable fees are set forth in our Schedule of Fees and Charges for Business Deposit Accounts. Advisory Against Illegal Use It is your responsibility to use the Card only for valid and lawful purposes, if you use the Card for any other purpose or transaction, including, without limitation, unlawful gambling activity, you agree to assume ail responsibility and liability for ail losses, costs, and expenses you or we incur as a result of such use. We reserve the right to block and/or not approve any authorization request for use of the Card in any activity we believe is not lawful, including online gambling, if you breach any of the terms and conditions of this Agreement, unless othenMse limited by law, you agree to indemnify, defend and hold us harmless from and against any and aii resulting losses, damages, claims, judgments, liability, costs, and expenses. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions In which the cardholder may be located. Your indemnification obligations under this provision shall survive any termination of our Account relationship with you. If you use your Card for any illegal transaction, this Agreement also applies to such transaction, and you agree to pay any and all amounts related to such transaction pursuant to the terms of this Agreement. We may, in our sole discretion, restrict the use of or terminate your Card if we notice excessive use of your Card or other suspicious activities or if we reasonably believe the Card is or has been used for one or more illegal transactions. Use of Your Debit Card Your Card is propeify of Bank of the West, and we may revoke your Card and privileges to access electronic services at any time without notice. You must follow the procedures used by the merchant, online merchant or financial institution for using your Card. Information About Debit Card Purchase Transactions When you use your Debit Card for a one time everyday POS purchase, you are making a withdrawal from your primary checking Account. You may be asked to use your PIN, sign a sales slip or other document, or only to provide your Debit Card number. Some merchants may assess a fee for this type of transaction. We are not liable if a merchant or financiai institution refuses to accept your Debit Card or Debit Card number. (1) VWien you do a PIN-based transaction with your Debit Card, we deduct the amount of your transaction almost immediately, including any cha^e imposed by the merchant, from the Available Balance in the primary checking Account that you designate for this service. (2) l^en you do a signature-based transaction with your Debit Card, we give authorization to the merchant and place a hold ("Authorization Hold") on the Available Balance in your primary checking Account pending settlement from the merchant (refer to "Effect of Authorization Hold on Other Transactions' below). The Authorization Hold is placed for up to three (3) business days; however, for some types of purchases we may place an Authorization Hold for a longer period. The merchant is responsible for submitting and settling the transaction, and the Bank has no control over merchants to require that they do so in a timely manner. NOTE: Merchants such as, but not limited to, car rental companies, and hotels may request approval from us for an estimated amount of your purchase (which may be more or less than the actual final amount of the purchase) since the merchant does not always know the exact amount of your purchase when it requests an authorization. (3) When you use your Debit Card number for an online purchase, some online merchants (through a participating network) request approval of the transaction but the amount Is not deducted from your Available Balance until the merchant ships your purchase and submits settlement to the Bank. The Bank has no control over this arrangement with the online merchants or participating network. As Is true with aii your Debit Card transactions, you are responsible for ensuring you maintain a sufficient Available Balance in your Account to cover ail transactions you conduct until they are debited from your Account. 28 29 Information About Settlement of Debit Card Transactions Once we have given authorization to the merchant on a purchase transaction and any Authorization Hold has been placed on your Account, the merchant must settle the transaction by submitting the final transaction amount to the Bank for processing. (1) If the merchant settles within three business days, the transaction wiii be paid out of the Authorization Hold which will then expire immediately. • if the actual final amount is less than the Authorization Hold, the transaction will be paid, the Authorization Hold vnli expire, and the difference will be returned to the Available Balance in your Account. • if the actual final amount exceeds the Authorization Hold and you do not have a sufficient Available Balance in your Account to make up the difference, your Account wiii become overdrawn and you may be charged an Overdraft Fee. (2) If the merchant does NOT settle within three (3) business days, the Authorization Hold expires and the funds are returned to the Available Balance in your Account. When the merchant does settle: • If you have a sufficient Available Balance in your Account, the transaction will be paid. • if you do not have a sufficient Available Balance in your Account at the time the merchant settles (due to other transactions on your Account), your Account will become overdrawn and you may be charged an Overdraft Fee. in ail situations described above, the Bank is legally obligated to pay the actual final amount of the transaction to the merchant. Effect of Authorization Hold on Other Transactions You are responsible for maintaining a sufficient Available Balance in your Account to equal the amount of your transaction (e.g., additional tip placed on a restaurant transaction) plus any other transactions you have conducted that may post to your Account during the Authorization Hold. The presence of an Authorization Hold (which may be for more than the actual amount of the purchase) on your Account could affect the Available Balance needed to cover other transactions. If another transaction (e.g., check or ACH transaction) is presented for payment in an amount greater than the Available Balance in your Account after the Authorization Hold has been placed, and we decide to pay the transaction, your Account may become overdrawn and you may be subject to an Overdraft Fee. If we do not pay the presented transaction, the ltem(s) may be returned and.you may be subject to the Returned Item Fee. Refer to the OVERDRAWN ACCOUNTS AND PAYMENT OF OVERDRAFTS section of this Agreement for details. If you do not ultimately use your Debit Card to pay for your purchases or if the actual amount of purchases posted to your Account varies from the estimated amount authorized by us, It Is the responsibility of the merchant, not the Bank, to cancel the prior authorization based on the estimated amount. The failure of the merchant to cancel a prior authorization may result in a temporary-reduction of your Account balance. If the authon'zation is for an amount higher or lower than the actual purchase amount, the hold may remain on your Account even after the actual purchase is paid from your Account. The actual purchase amount will be paid from your Account vtfrienever the merchant sends It to us, even if that is after the hold has expired. Stop Payment on Purchase Transactions You may not stop payment on a purchase transaction. Instead, you must setfie directly with the merchant any disputes you have about goods and services for which you pay wth your Card or with the financial Institution where you obtain cash wnth your Card. Merchants are independent from us, and we are not responsible for representations made by merchants from which you choose to purchase goods and services with your Card. Chip Cards at Merchant Terminals With the introduction of chip card technology, all ATM and Debit Cards are issued with an Imbedded chip which provides increased secxirity from fraudulent or counterfeit card usage. Chip cards used at merchant chip card terminals will typically require transactions to be processed as PIN-based, and signature-based processing of transactions may not be an available option at all terminals. Merchants who process purchase transactions are independent from us, and we are not responsible for the options they may offer for processing transactions using their chip card terminals. Debit Card Security Measures We reserve the right to monitor Card transaction activity as a means to deter fraudulent transactions. If any unusual transaction activity is detected, we may attempt to contact you to confirm the authenticity of the activity. You owe us a duty to cooperate with us in any investigation of activity we believe is unusual and potentially fraudulent. Hov^ver, if we are unable to contact you regarding any unusual or suspicious activity, we may, at our sole discretion, block your Card in an effort to prevent fraudulent transactions. In the event that you confirm the transaction activity as legitimate, we may, at our discretion, unblock your Card. We reserve the right to terminate all rights to use your Card if we have reason to believe that there has been an unauthorized use of your Card or PIN. We may, in our sole discretion, restrict the use of or terminate your Card If we notice excessive use of your Card or other suspicious activities. We reserve the right to decline transactions at the PCS to deter possible fraud. It Is your responsibility to update Bank of the West in a timely manner regarding any change in contact information, name, address, and phone number(s). Cur right to monitor your Card transaction activity does not replace your responsibility to review your Account activity or change your liability regarding reporting unauthorized activity to us. You may not "opt out" of this process. Limitations on Frequency of Transfers from Savings and Money Market Accounts Additional limitations on withdrawals and transfers from savings and money market Accounts may apply. Refer to Transaction Limitations on Savings and Money Market Accounts" in the IMPORTANT INFORMATION ABOUT YOUR BUSINESS CHECKING, SAVINGS AND MONEY MARKET ACCOUNTS section of this Agreement. Related Fees Please refer to our Schedule of Fees and Chafes for Business Deposit Accounts for additional information about fees. Also, refer to "Currency Conversion and Foreign Transaction Fees" above in this section. When you use an ATM or make a purchase at a Terminal not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer). 30 31 Your Liability for Use of Debit Card You are responsible for selecting individuals from your business who are authorized to hold Cards ("users"). You agree that the Bank will charge your Account for the amount of each authorized transaction in which the Card or the Card number is used. You agree to indemnify, defend and hold the Bank, its directors, officers, employees, and agents harmless from and against any and all losses, damages, claims, judgments, liability, costs, and expenses arising from or relating to the issuance of any Card and/or payment of any and all transactions and charges incurred with the Card. Your indemnification obligations under this provision shall survive any termination of our Account relationship Mnth you. You will require users to comply with the provisions of this Agreement and all other applicable agreements. You are fully responsible for the failure of any user to comply with this Agreement. You agree that you are responsible for obtaining the Card from any user who leaves your business or any user that you determine is no longer authorized to have a Card and canceling the Card immediately. You remain responsible for all transactions with any Card that occur before the Card is cancelled with Bank of the West. n/lastercard® Debit Card Zero Liability Mastercard® imposes certain limits on cardholder liability for a Debit Card. You will not be liable for any unauthorized transactions using your Debit Card, if; (1) you can demonstrate that you have exercised reasonable care in safeguarding your Debit Card from the risk of loss or theft; and (2) upon becoming aware of a loss or theft, you promptly report the loss or theft to us. If you do not meet these conditions, you may be liable for the full amount of the unauthorized transaction(s). Electronic Fund Transfers Initiated By Third Parties In addition to transactions you may conduct with your Debit Card, you may authorize a third party to initiate electronic fund transfers between your business Account and the third party's account. These transfers to make or receive payment may be one-time occurrences or may recur as directed by you. Tliese transfers may use the Automated Clearing House (ACH) or other payments network. Your authorization to the third party to make these transfers can occur in a number of ways. For example, your authorization to convert a check to an electronic fund transfer or to pay electronically a returned check charge can occur when a merchant provides you with notice and you go forward with the transaction (typically, at the point of purchase, a merchant will post a sign and print the notice on a receipt). In all cases, these third party transfers will require you to provide the third party with your Account number and bank information. This information can be found on your check as well as on a deposit or withdrawal slip. Thus, you should only provide your bank and Account information (whether over the phone, the Internet, or via some other method) to trusted third parties whom you have authorized to initiate these transfers. Examples of these transfers include, but are not limited to: • Preauthorized credits: You may make arrangements for certain Direct Deposits to be accepted into your checking, money market, or savrings Account(s). • Preauthorized payments: You may make arrangements to pay certain recurring bills from your checking, money market, or savings Account(s). • Electronic check conversion: You may authorize a merchant or other payee to make a one-time electronic payment from your checking Account using information from your check to pay for purchases or pay bills as discussed in "Electroniflcation of Checks" in the CHECKS section of this Agreement. • Electronic returned check charge: You may authorize a merchant or other payee to initiate an electronic fund transfer to collect a charge in the event a check Is returned for insufficient funds. Errors or Questions Concerning Your Card and Certain Other Transactions Write or call us at the phone number and/or address listed at the end of this Agreement as soon as possible if you believe that your statement or any transaction receipt is incorrect or if you need more information about a Card transaction or electronic fund transfer listed on the statement or transaction receipt. We must hear from you no later than 30 days after we sent you the first statement on which the error or the problem appeared. You can call us, but doing so may not preserve your rights. When you call or write, specify your designated Account number. Card number, the dollar amount of the suspected error, a description of the error, and an explanation of why you believe there is an error, if you tell us orally, we may require that you send us your complaint or question in writing vwthin 10 Business Days. If we decide no error was made, we will send you a written explanation after we finish our investigation. You can request, and we will provide, copies of the documents used in our investigation. We may assess a reasonable fee to cover our duplication costs. Lost and Stolen Cards If any user's Card is lost or stolen, you or any user or designee must notify us immediately either orally or in writing. You may call or write to us at the address or phone number listed at the end of this Agreement. Termination of Business Debit Card Services We may terminate your business Debit Card Services at any time without cause. We specifically reserve the right to terminate these Services if: (1) you or any user of a business Debit Card should breach any of the terms and conditions set forth in this section of this Agreement; (2) you are in defriult of any other Agreement with the Bank (including but not limited to your failure to pay any indebtedness owed to us when due should your business close, or in the event of bankruptcy, insolvency, or liquidation). You may cancel the business Debit Card services by calling us or writing us on your business letterhead at the address listed at the end of this Agreement. In your letter, please identify the Debit Card number, your designated Account number, and the service and/or Debit Card(s) to be canceled. Debit Card Usage Not Governed by Electronic Fund Transfer Act Your Debit Card transactions as well as any electronic transfer of frjnds to or from your business Account are not governed by the Electronic Fund Transfer Act. You understand and agree that you are not a "consumer" within the meaning of the Federal Electronic Fund Transfer Act and the Bureau of Consumer Financial Protection Regulation E, and the Act/Regulation shall not apply to any dispute arising between you and the Bank. 32 33 Mastercard® Easy Savings'^ Program Mastercard® Easy Savings Program Cardholder Terms & Conditions: Cardholder must be enrolled in the Mastercard® Easy Savings Program. Payments must be made at participating merchant locations with only an eligible Mastercard® card issued by a US bank. PiN-based debit transactions are not eligible. Participating merchants and rebate offers subject to change. Restrictions apply, if you do not wish to receive these rebates, contact the financlai institution that issued your Mastercard® small business card to cancel your enrollment in the Mastercard® Easy Savings Program. Go to htfp://wvwv.easysavings.com for more details. FUNDS TRANSFERS Funds Transfers A funds transfer is the transaction or series of transactions that begins with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. A funds transfer is completed by the acceptance by the beneficiary's bank of a payment order for the benefit of the beneficiary of the originator's order. Funds transfers are commonly called wire transfers but may also be transfers through an Automated Clearing House, though other transactions may be covered in this "Funds Transfers" section. Refer to the separate WIRE TRANSFER REQUEST or any other wire transfer agreement that is required to be executed at the time of any funds transfer for terms and conditions that apply. Reservation of Rights on Funds Transfers At our sole discretion and without liability to you or any third party, we reserve the right, for any or no reason, to reject, impose conditions on, cancel, delay or suspend any instructions to initiate any funds transfer on your behalf (even if previously accepted); similarly, at our sole discretion and without liability to you and without prior notice, we reserve the right to refuse to receive any funds transfer on your behalf. If we take any such action described in the previous sentence, we will use reasonable efforts to notify you of such action by communicating \Mth you in a method allowed by these policies or in some other commercially reasonable manner, including verbally notifying you or your designated representative, but we shall have no liability to you or any third party if we are unable to give such notice to you. in the event we take any such action as described above in this paragraph, you agree that you will indemnify us and hold us harmless from all loss, cost or expense arising from such action, including without limitation, with respect to claims by third parties. Notice of Receipt of Funds Transfer in the event we receive a funds transfer for your Account, we are not responsible for notifying you of our receipt of the funds transfer. The funds transfer will be reflected on your Account statement for the applicable period. You agree that we shall not be liable for any damages, claims, or losses including, without limitation, loss of any interest incurred by you for any failure on our part to notify you of receipt of a frinds transfer. Funds Transfer's Reliance on Identification Numbers If a funds transfer order designates the beneficiary by both name and an identifying Account number, we, or any bank receiving the funds transfer order, may pay the lunds transfer order based upon the number alone, even if the Account number does not belong to the named beneficiary, if a funds transfer order designates an intermediary bank or a beneficiar/s bank by both name and an identifying number, we, or any bank receiving the funds transfer order, are entitled to rely on the identifying number alone, even if the number does not belong to the named bank. Transmitting and Recording Information About You In the Funds Transfer Payment Process Any funds transfer (or payment order) executed by us is subject to rules and regulations applicable to funds transfers, including the Federal Bank Secrecy Act and its regulations, in order to comply with all applicable laws and regulations in executing any funds transfer, we may transmit information regarding you, such as your name, address, and Account number, as part of the payment process. In addition, vrtren we receive any funds transfer or payment order, we may require and record your name and Account number and other information. By sending or receiving funds transfers through us, you agree that you will assist us in complying with the applicable laws and regulations and hold us harmless from any liability in connection with our compliance with the lavrs or regulations. Transfers Received Through the Automated Clearing House If the Bank receives a credit entry on your behalf or for your Account where the credit entry was transmitted through the Automated Clearing House and if the Bank does not receive payment for the credit entry from the financial institution originating the payment, the credit to your Account may be reversed. ACM AND INTERNATIONAL ACH TRANSACTIONS Financial institutions are required by law to scrutinize or verify any international ACH transaction (lAT) tiiat they receive against the Specially Designated Nationals (SDN) list of the Office of Foreign Assets Control (OFAC). This action may, from time to time, cause us to temporarily or permanently suspend processing of one or more lATs and may affect the settlement and/or availabiilfy of such payments. At our sole discretion and without liability to you or any third party, we reserve the right to refuse to initiate or receive ACH transactions for any or no reason, induding, without limitation, any ACH transfer to or from any person or entity located in a country vvnth which the Bank has determined not to engage. INFORMATION ABOUT FDIC INSURANCE FDIC Insurance Funds in your Account(s) with us are insured by the Federal Deposit insurance Corporation (FDIC) and backed by the full faith and credit of tiie United States. The amount of insurance coverage you have depends on the number of Accounts you have wjth us that are of different "ownership." An individual Account is one unique form of "ownership." A joint Account, a pay-on-death Account, and a self-directed qualified retirement Account (e.g., an IRA) are examples of other forms of "ownership." Deposit insurance for a person's self-directed 34 35 qualified retirement Account is provided at a maximum of $250,000. (An iRA is a seif-directed qualified retirement Account as is any Account where the owner decides where and how to invest the balance.) Additionaily, funds are insured up to $250,000 per depositor for the total amount of funds combined in ail of your other insured Accounts vMth us. Deposits owned by corporations, partnerships, and unincorporated associations Onciuding for-profit and not-for-profit organizations) are insured together under the same ownership category up to $250,000. Such deposits are insured separateiy from the personai deposits of an organization's owners, stockhoiders, partners or members. To qualify for insurance coverage under this ownership category, a corporation, partnership or unincorporated association must be engaged in an "independent activity," meaning that the entity is operated primarily for some purpose other than to increase deposit insurance coverage. if you want a more detailed explanation or additional information, please contact the FDiC directly at 1-877-ASKFDiC (1-877-275- 3342). You can also visit the FDiC website at www.fdic.gov and dick on the "Deposit Insurance" link. The link includes detailed contact information as well as a deposit insurance estimator. IMPORTANT INFORMATION ABOUT YOUR BUSINESS CHECKING, SAVINGS AND MONEY MARKET ACCOUNTS Rate Information Interest rates are determined by Bank policy, market conditions and the daily balance of the Account. Frequency of Rate Changes We may change the interest rate on your Account as frequently as daily. Rate change notices will not be sent; however, our current rates are available at www.bankofthewest.com or by telephoning any Bank of the West branch or our Contact Center at the number listed at the end of this Agreement. Hered Rate Accounts For tiered rate Accounts, interest will be paid on the entire collected balance at the interest rate set for the tier into which the entire end-of-day collected balance fails. We reserve the right to pay the same interest rate on more than one balance tier. We also reserve the right to pay lower interest rates on the higher or highest balance tiers. Compounding and Crediting Frequency interest will be credited monthly on interest-bearing business checking, savings, and money market Accounts. Refer to the Bank's current Rate Sheet to determine the compounding frequen^ for your checking, savings or money market Account, as applicable, interest is available for withdrawal when it has been credited to your Account. Computation Method We use the daily balance method to calculate the interest on your Account. This method applies a daily periodic rate to the principal in the Account each day. For all interest-earning 36 checking Accounts and money market Accounts, interest is accrued and calculated on the daily collected ending balance. On savings Accounts (other than money market savings Accounts), interest Is accrued and calculated on the daily ending balance, interest is calculated on an actuaI/365-day basis (actual/366 in leap years). Annual Percentage Yield orAFY The annual percentage yield quoted for your Account assumes that interest earned remains in the Account, that all funds remain on deposit for one (1) year ft-om the date of deposit, and that the interest rate does not change. Interest wthdrawn will reduce the annual percentage yield earned. Effect of Closing an Account if you or we close your Account before interest is credited or change your Account to a non-interest bearing Account within the statement period, you \mII not receive the accrued interest. You will not forfeit interest if your Account closes because you are transferring it to another Bank of the West branch. Accrual of Interest on Noncash Deposits interest begins to accrue no later than the Business Day we receive credit for the deposit of noncash Items (for example, checks). Items drawn on other financial institutions usually take one (1) to three (3) Business Days before we receive Provisional Credit for them. We may reverse interest that has been earned on any deposit that is reversed for any reason. Transaction Limitations on Savings and Money Market Accounts For savings and ail money market Accounts you may make up to six (6) transfers or vMthdrawais by means of a preauthorized, automatic, or telephone transfer to another Account of yours or to a third party or by check, draft. Debit Card, or similar order to a third party or to another Account (includes online banking transfers) during either the statement cycle period (for money market Accounts) or the calendar month (for savings Accounts). A preauthorized transfer includes any arrangement with us to pay a third party from your Account at either (1) a predetermined time; (2) on a fixed schedule; or (3) upon oral or written orders including orders received through the Automated Clearing House (ACM). If the transfer or withdrawal is initiated in person, by mail, messenger, or at an ATM, then there is no limit on the number of payments that may be made directly to you or directly to us for amounts you owe us, or transfers to other Accounts you have with us. Withdrawals by phone are also unlimited if you are requesting that a check be mailed to you. For each transaction in excess of the six (6) during the statement cycle period or calendar mon^ (whichever applies), an Excess Withdrawal Fee vwii be charged regardless of the Account balance, other fees, or the type of withdrawal. Transfers from savings Accounts (excluding money market Accounts) through online banking or through our Contact Center will be prevented if the limit of six (6) transactions for the calendar month has already been reached. However, other countable transactions such as a pre-authorlzed payment from your savings Account to a third party, outgoing wire transfer request, etc. that occur during the same calendar month will not be prevented and could cause you to exceed the six (6) transactions. Therefore, you are responsible for managing your savings or money market Account to stay within the transaction limitations. 37 If you exceed six (6) transfers in the applicable period, the Bank will notify you and may close your Account or transfer the balance of your Account to a checking product type that does not have transaction limitations. Transfers and payments are counted as of the end of the day the funds are actually withdrawn to determine whether any transfer threshold has been exceeded. Analyzed Business Checking Balance Related Terms Average Ledger Balarice. The average daily ledger balance for the Account for the analysis cycle. This figure is equal to the aggregated dally ledger balance for the cycle, divided by the number of days in the cycle. Average Daily Float The average dally float Is equal to the aggregated daily balances not collected for the cycle, divided by the number of days in the cycle. Float calculations are based on the time assigned for the collections of deposited Items which may be longer or shorter than the actual collection time. Average Daily Collected Balance. The average daily collected balance is equal to the average ledger balance less the average daily float. Negative Collected Balance. The average daily adjusted collected balance is the sum of the negative collected balances and the average daily collected balance. This figure is used to calculate the reserve requirement. Average Daily Adjusted Collected Balance. The average dally adjusted collected balance is the sum of the negative collected balances and the average daily collected balance. This figure Is used to calculate the reserve requirement. Legal Reserve Requirement. Reserves are funds which the Bank is required to maintain at a Federal Reserve Bank for deposits. Reserves are calculated by multiplying collected balances by a fixed factor of 10%, regardless of the actual reserve requirement for your funds. The Bank's actual reserve requirement may be lower based on sub-accounting and other factors. Balance to Support Services. The balance to support services is equal to the average collected balance less the reserve requirement. Average Daily Ledger Balance Overdraft. The average daily ledger balance Overdraft is the sum of the aggregated daily ledger Overdraft balances divided by the number of days in the month. This figure Is used to calculate the interest charge for ledger balance Overdrafts. Earnings Credit. The earnings credit is a credit earned by the customer to apply toward the payment for services provided. This figure is calculated by multiplying the balance to support services by the earnings credit rate In effect, divided by the number of days in the year, multiplied by the number of days in the month. The earnings credit rate is subject to change without prior notice. Current pricing information is available from your relationship manager. Prime Rate. The prime rate shall mean an index for a variable interest rate which is quoted, published, or announced by Bank of the West as Its prime rate and as to which loans may be made by Bank of the West at, above, or below such rate. Analyzed Business Checking: Interest on Overdrafts and Uncollected Funds Used Interest on Overdrafts or uncollected funds may be charged at the Prime Rate plus four (4) percent. Interest on Overdrafts is applied to the average daily ledger balance Overdraft for the month, interest on uncollected funds used Is applied to the negative collected balance for the month. Interest shall be adjusted concurrently with any change in the Prime Rate. Interest on each advance shall be computed on a 365/365 day basis (366 for a leap year), and charged on the actual number of days elapsed. IMPORTANT INFORMATION ABOUT YOUR BUSINESS CERTIFICATE OF DEPOSIT ACCOUNTS Rate and Term Information You will be paid Interest on your certificate of deposit (CD) at the disclosed rate until the first maturity of your Account. Your Account will mature as stated on your CD receipt. Compounding Frequency Interest will be compounded monthly. Crediting Frequency For CDs with terms of 32 days or longer, you may choose the frequency of interest payments. Interest can be paid as frequently as monthly, but must be paid at least once a year. On CDs, interest may be reinvested into the CD, credited to another checking, money market or savings Account, or paid to you by check. CDs with terms of 7 to 31 days will receive interest only at maturity. Interest may be reinvested Into the CD or deposited to a checking, money market or savings Account. Computation Method We use the daily balance method to calculate the interest on your CD. This method applies a daily periodic rate to the principal in the CD each day. For all CDs, interest is accrued and calculated on the daily ending balance on an actual/365-day basis (actual/366-day basis in leap years). Annual Percentage Yield or APY The annual percentage yield quoted for your CD assumes that interest earned remains in the CD, that all funds remain on deposit for one (1) year from the date of deposit (even for shorter term deposits), and that the Interest rate does not change. Effect of Closing an Account If you close your CD before interest is credited, you vwll receive the accrued interest. CDs closed during the grace period will forfeit any accrued interest. Accrual of Interest on Noncash Deposits Interest begins to accrue on noncash deposits on the Business Day you deposit them (for example, checks). Grace Period All automatically renewing CDs with terms of 32 days or longer have a 10 calendar day "grace period" following the maturity 38 39 date of the CD when you can withdraw funds or make changes to the CD without an early vwthdrawal penalty. CDs with terms of 7 to 31 days have a 1-day grace period. Additional Deposits Unless otherwise indicated, additional deposits of $100 or more can be made only within the grace period on automatically renewable CDs. interest on the additional funds, both cash and non-cash, will begin to accrue on the Business Day you make your deposit and will be at the same rate as the renewed CD. The additional deposit(s) will mature at the same time as the renewed CD. Withdrawals of interest Prior to Maturity Interest which has been credited to the CD during the term of the CD may be withdrawn \wthout penalty at any time. interest which has been reinvested at maturity may be wthdrawn without penalty at any time provided that the CO term and interest rate have not changed since the renewal. If either the term or interest rate of the CD changes upon renewal, any credited interest becomes part of the principal of the CD. A withdrawal of interest will reduce eamlngs. Withdrawals of Principal Prior to Maturity You may make withdrawals of principal from your CD before maturity only if we agree at ^e time you request the withdrawal. Your withdrawal prior to maturity may be subject to an early withdrawal penalty. Principal withdrawn before maturity is included In the amount subject to the early vnthdrawat penalty. Early Withdrawal Penalties Any early withdrawal penalties assessed may reduce the principal balance remaining in your CD after the withdrawal. For CDs with terms of 7 to 31 days or terms of 60 months and longer, the penalty is calculated at the interest rate in effect on the CD at the time of the vrithdrawai. The penalties on the amount withdrawn are as follows: TERM PENALTY 7 to 31 Days $25 31 days simple interest 32 Days to 11 Months $25 +1% of the amountwithdrawn 12 to 59 Months $25 3% of the amountwithdrawn 60 Months or Longer 730 days simple interest Additional Withdrawals Additional withdrawals without penalty are permitted upon a depositor's death or mental incapacity. Withdrawals at any other time may be permitted at the Bank's discretion but may be subject to early withdrawal penalties. CDs closed during the grace period will forfeit any interest that accrued during the grace period. Automatically Renewable Certificates of Deposit An automatically renewable CD will automatically renew at maturity for the same term. You may prevent automatic renewal if we receive written notice from you before maturity of your intention not to renew, if you withdraw the funds In the CD at maturity (or within the grace period mentioned above) or if we receive written notice from you within the grace period mentioned above, if you prevent renewal, interest will not accme after final maturity. Each renewal term will be the same as the original term, beginning on the maturity date (unless we tell you othenvise). The interest rate will be the same interest rate that we offer on new CDs on the maturity date for the same term, minimum balance (if any) and other features as the original time deposit (unless we tell you othenvise). Renewal Notices if your CD automatically renews, we will mail a renewal notice approximately fifteen (15) days prior to the maturity date (except for CDs with terms of 7 to 14 days). The renewal notice will include a phone number you can call on the maturity date (or shortly thereafter) to find out the interest rate and annual percentage yield on your renewed CD. Non-Automatlcally Renewable Certificate of Deposit Any non-renewable CD will not automatically renew at maturity. Interest will not accrue after the maturity date. We will mail a maturity notice approximately fifteen (15) days prior to the maturity date (except for 7-14-day terms). The maturity notice wriii include a phone number you can call if you would like to open another CD. Returned Interest Disbursements in the event an interest disbursement from your CD is returned to the Bank or cannot be disbursed, we will do the follo\wng: • By Check: if an interest distribution check is returned to the Bank for any reason, we will do two things: (1) cancei the distribution check and credit the funds to your CD, and (2) no longer mail interest distribution checks to you but rather credit any interest to the CD. If you provide us with a valid address, you may then request that we reinstate the mailing of interest distribution checks on the CD. Please note that in the event an interest check is credited back to a CD, and the CD subsequently renews, ail interest credited will become part of the principal if either the CD term or interest rate change at renewal. As such, any withdrawals after the grace period may be subject to an early withdrawal penalty. • By ACH or Internal Transfer: if an interest payment in the form of an ACH debit or intemal transfer from your CD cannot be disbursed for any reason, we will do two things: (1) issue a ched< payable to you in the amount of the payment and mail it to you at the last known address we have on our records for you; and (2) issue all future interest payments in the form of a check payable to you. We will continue to issue these payments in the form of a check until you notify us that the necessary corrections to the ACH or internal transfer information have been made and you request that we reinstate the ACH debit or internal transfer of the interest payments. 40 41 OVERDRAWN ACCOUNTS AND PAYMENT OF OVERDRAFTS Overdrawn Accounts or Insufficient Funds If your business Account is overdrawn for any reason including: (1) the Bank cannot coliect the funds from a deposit you have made; (2) the Bank has intentionaily or unintentlonaiiy paid items for which you do not. have a sufficient Available Balance; or (3) there was not a sufficient Available Baiance to cover the amount of a service or other Bank charge, then you agree to reimburse the Bank for the amount of the Overdraft (including any Returned Item or Overdraft Fee) without regard to the signer on the ltem(s) that created the Overdraft or who benefited from the charge or Overdraft. Payment of an overdrawn Account is due immediately or upon demand by the Bank. Absent an eariier demand and deciaration of default or absent your request to declare an Account in default, if you fail to pay the amount of the overdraft on an Account within 60 calendar days, we \mII deem the Account to be in default and will take such actions as we deem appropriate for collecting an Account in defriult. Such actions include, without limit, closing an Account and sending the Account for collection. You are responsible for managing your Account to ensure a sufficient Available Balance Is maintained to cover your transactions. You can help avoid Returned Item and Overdraft Fees by maintaining a record of your deposits and withdrawals by check, recurring payments and Debit Card transactions. in the event your Account does not have a sufficient Available Baiance to cover an electronic transaction conducted in any manner, including at the ATM or at a merchant either with or without a PIN, we reserve the right, in our sole discretion, to pay or dishonor the electronic transaction, if your Account is overdrawn by reason of an electronic transaction, an Overdraft or Returned item Fee may be charged to your Account (as applicable). Should we choose to honor your electronic transaction, you will not be advised or warned friat the transaction is causing your Account to become overdrawn and will not have the prior right to cancel the transaction. Overdraft or Returned Item Fees are in addition to any applicable fees related to the transaction. it should be understood that the Bank is under no obligation to pay any checks, drafts, electronic or other items you have authorized which may overdraw your Account. Also, the fact that we may honor withdrawal requests when you have an insufficient Available Baiance in your Account does not obligate us to do so later. So you can NOT rely on us to pay Overdrafts on your Account regardless of how frequently or under what circumstances we have paid Overdrafts on your Account in the past. We can change our practice of paying Overdrafts on your Account without notice to you. We may use subsequent deposits, including Direct Deposits of social security or other government benefits, to cover such Overdrafts and Overdraft Fees. Standard Overdraft Practices We may choose, at our discretion, to assist you with an unplanned or occasional Overdraft by paying checks, ATM withdrawals, ACH, recurring and nonrecurring Debit Card transactions and purchases, and other items drawn on your Account and charging you an Overdraft Fee when your Account does not have a sufficient Available Baiance to cover those Items. Whether we will pay a particular item is decided by the Bank, at our sole discretion, by evaluating a number of factors relating to your Account. Opting Out . If you do not want us to pay checks, ATM withdrawals, ACH, or recurring or nonrecurring Debit Card transactions or purchases when doing so will overdraw your checking Account, please contact your local branch or call our Contact Center at the number listed at the end of this Agreement. Your opt out choice will become effective within two (2) Business Days. Even If we do not pay an Item, you will Incur a Returned Item Fee if we return an item because your account has an insufficient Available Balance. ATM and Business Debit Card transactions will generally be declined. Even when you have opted out, there still may be times when an Item will be paid (or an AHVI or Debit Card transaction will not be declined), an Overdraft occurs, and an Overdraft Fee is charged. The dishonoring of a check, ACH item, recurring or nonrecurring Debit Card transaction, or other items drawn on your Account could result in additional fees or other consequences imposed under your agreement with the payee or by law. The Bank reserves the right to amend or terminate our standard Overdraft practices without notice at any time. Additionally, there are certain instances where checking Accounts are not eligible for our Standard Overdraft Practices. Overdraft Program Alternatives We offer Overdraft programs, such as BusinessLInk Reserve (line of credit; credit approval required) and Savings Overdraft Protection (for sole proprietorships), which may be less expensive than our Standard Overdraft Practices. Refer to the Schedule of Fees and Charges for Business Deposit Accounts for applicable fees for these Overdraft program alternatives. Savings Overdraft Protection for Sole Proprietorships A sole proprietorship is the only non-personal entity for which Savings Overdraft Protection may be set up. It is not available for any other type of business entity. Savings Overdraft Protection Is available for sole proprietor Accounts only when an individual either does not want or does not qualify for our BusinessLInk Reserve product. This service is available if you have a business savings or business money market Account and any business checking Account. The owner(s) of the business checking Account must be the same as the owner(s) of the business savings or business money market Account. if there is an insufficient Available Baiance In your business checking Account to cover the amount of items presented for payment, we wiil automatically transfer funds from the Available Balance in your linked business savings or business money market Account to your checking Account. We transfer funds in increments of $50 up to the amount of the Overdraft, including any Savings Overdraft Protection Transfer Fee (Transfer Fee'), up to the amount of the Available Balance in your linked business savings or business money market Account. The total of ail $50 increments is considered one transfer, and we charge a Transfer Fee per transfer each day that a transfer occurs, if your business savings or business money market Account does not have a balance of $50, but there is a sufficient Available Baiance to cover the Overdraft amount and the Transfer Fee, then the entire 42 43 business savings or business money market balance will be transferred into the business checking Account. If one (1) or more Items are presented against your business checking Account and there is a sufficient Available Balance in your linked business savings or business money market Account to cover one (1) or more of the Items plus the Transfer Fee, we will transfer enough to cover as many of the Items as possible plus the Transfer Fee, up to the remaining Available Balance in your savings or money mah(et Account. If you have Savings Overdraft Protection and a transfer occurs to a linked checking Account that is overdrawn $5 or less, no Transfer Fee will be assessed. Each Savings Overdraft Protection transfer counts as one (1) of the six (6) limited transactions you are allowed each calendar month from your savings Account or each statement cycle from your money market Account. For savings Accounts, if you have already used the six (6) allotted transactions during any calendar month, the Overdraft transfer will not occur. For a money market Account, if you have already used the six (6) allotted transactions during any statement cycle, the Overdraft transfer may occur and you vrill be charged the Excess Withdrawal Fee in addition to the Transfer Fee. Funds you deposit into your savings or money market Account may not be available immediately for Savings Overdraft Protection. Savings Overdraft Protection does not cover ATM and everyday Debit Card transactions as they post to your Account throughout the day. Savings Overdraft Protection only covers transactions that post during nightly batch processing. Accordingly, if you attempt to make an ATM or everyday Debit Card transaction against an insufficient Available Balance in the business checking account then the transaction may be declined even if you have Savings Overdraft Protection and there is a sufficient Avaiiable Balance to transfer from your savings or money market Account to cover the transaction. BusinessLInk Reserve Line If you have a BusinessUnk Reserve Line as Overdraft protection for your linked business checking Account and one (1) or more Items are presented against your business checking Account, we \Mil transfer enough funds to the business checking Account to cover as many of the Items as possible plus the Loan Advance Fee, up to the avaiiable credit limit in your BusinessLInk Reserve Line. Transfers will be made in multiples of $100 or in the amount of credit available from your BusinessLInk Reserve Line. However, if the available credit limit in your BusinessLInk Reserve Line is insufficient to cover any one (1) of the Items plus the Loan Advance Fee, no transfer from your BusinessLInk Reserve Line vrill occur. The BusinessLInk Reserve Line as Overdraft protection for your linked business checking Account covers checks, ATM withdrawals, everyday Debit Card transactions, recurring Debit Card transactions, ACH debits, automatic electronic payments and other transactions from your business checking Account. You must apply for the BusinessLInk Reserve Line. Total Overdraft coverage is determined by your available credit limit, and credit is subject to credit approval. Please refer to the BusinessLInk Reserve Line Agreement and Addendum for full details. ABOUT YOUR ACCOUNT STATEMENTS Account Statements in General Statements are a valuable tool to help prevent fraudulent or mistaken transfers. Your statement will show the transactions that occurred in connection with your Account during the statement period. Statements on checking and money maricet Accounts are generated monthly based on the statement cycle date of the Account. Your first statement cycle on any Account may be less than 30 days. Statements on savings Accounts (excluding money mari<et Accounts) are generated quarterly unless there has been electronic transaction activity on the Account in which case a statement wiil be generated for the month in which the electronic transaction activity occurred. Statements and Your Responsibility to Review Periodic statements include all Account activity for the statement period. It is important that you review each statement upon receipt and notify us in writing of: • Any error, omission, alteration, unauthorized transaction, unauthorized signature, or other irregularity in any deposit, withdrawal, transfer, or fee; and • Any loss, theft, improper or unauthorized use of any instrument evidencing funds on deposit, or any banking forms relating to an Account. You must examine your statement of Account or any checks that the Bank has mailed or delivered to you with "reasonable promptness." If you discover (or reasonably should have discovered) any errors, omissions, unauthorized transactions, unauthorized signatures, alterations, forgeries or other irregularities, you must promptly notify us of the relevant facts. As between you and us, if you fail to do either of these duties, you \mII have to either share the loss with us, or bear the loss entirely yourself (depending on whether we used ordinary care and, if not, whether we contributed to the loss). The loss could be not only with respect to items on the statement but other Items with unauthorized signatures or alterations by the same wrongdoer. You agree that the time you have to examine your statement and report to us will depend on the circumstances, but will not, in any circumstance, exceed a total of 30 days from when the statement is first sent or made available to you. If you do not report unauthorized transactions within 30 days after the statement Is mailed or made available, we will not be liable for payment of any forged or unauthorized Items shown on the statement In the event that unauthorized or forged transactions are committed by the same person, the 30 days begins on the date the first statement In which the first unauthorized transaction appears Is mailed or made available. Reports of unauthorized transactions or incorrect activity not involving electronic fund transfers must be made in writing to the branch where your Account is held. For claims of check forgery, you may initially contact your Branch of Account or call our Contact Center at the number listed at the end of this Agreement. You may be required to visit a branch to sign a claim of forgery in the presence of a Bank employee. You agree that you will have at least two different people review your statements, notices and returned checks, or in the alternative, the person v^o reviews those will be someone who does not have authority to transact on the Account. 44 45 You agree to cooperate in any investigation we may undertake regarding your claim. We reserve the right to investigate your claim fully and we reserve a reasonable length of time for our investigation. We reserve the right to exercise all of our legal defenses to your claim. Please note that the Bank stops preparing and sending statements for dormant Accounts and Accounts for which the Bank has received returned mail from the address on file. To request copies of any paid checks, contact your Branch of Account or call our Contact Center at the number listed at the end of this Agreement. Combined Statements Multiple checking, savings, money market, and certificate of deposit Accounts may be automatically combined on one (1) statement if they have, the same ownership and mailing address. Check Safekeeping You agree that you vrill not receive your canceled checks. With our Check Safekeeping service, we keep copies of your deposit slips and canceled checks In an electronic form for seven (7) years rather than return the originals to you in your statement. To request copies of deposit slips or paid ohecks, contact your Branch of Account or call our Contact Center at the number listed at the end of this Agreement. When requesting a copy of a deposit slip or check, please provide the following information, as applicable, which is shown on your Account statement: Account name, Account number, check number, dollar amount of the deposit slip or check, and the date shown on the deposit slip or posting date of the check. In most instances, we will mall the copy to you wiUiln two (2) Business Days. If you prefer, you may pick up the copy at your Branch of Account. If you request copies of more than two (2) Items per statement period, there v\rill be a fee. IRS REPORTING Tax Identification Number and Interest Reporting Federal tax law requires us to report interest payments we make to you of $10 or more in a calendar year and to include your Taxpayer Identification Number (TIN) on the report. Interest includes dividends, interest, incentives and bonus payments for purposes of this rule. Therefore, we require you to provide us with your TIN and to certify that it is correct. The TIN is either a Social Security Number (SSN), or an Employer Identification Number (EIN). For most organization or business Accounts other than sole proprietorships, the appropriate TIN is the EiN of the organization or business entity. For sole proprietorships, either the SSN or the EIN is appropriate. The appropriate TINs for various types of Accounts are: Type of Account TIN Sole Proprietorship SSN or EIN of the owner (as determined by IRS requirements) Corporation EIN of the corporation Partnership or LLP EIN of the partnership or LLP Limited Liability Company (LLC)EIN of the LLC or SSN of ttie single member (If applicable) Backup Withholding In some circumstances, federal law requires us to withhold and pay to the IRS a percentage of the interest that is eamed on funds in your Accounts. This is known as backup withholding. The percentage withheld will be determined by the rate in effect under IRS regulations at the time backup withholding begins. We \mII not have to backup withhold on interest payments when you open your Account if you certify your TIN and certify that (a) you are exempt from backup withholding, (b) you have not been notified by the IRS that you are subject to backup withholding as a result of a failure to report ail interest or dividends, or (o) the IRS has notified you that you are no longer subject to backup withholding. We may subsequently be required to begin backup wthholding if the IRS informs us that you supplied an incorrect TIN or that you underreported your interest income. Withholding will occur at the time interest is paid. The amount of backup withholding will be reported to you and the IRS. if you are a foreign person (either an individual who Is a nonresident alien or a foreign organization) you must certify your foreign status on the appropriate IRS Form W-8 (Certificate of Foreign Status). Your foreign status must be re-certified on a new IRS Form W-8 every three (3) years, if you do not recertify when required, your Account v,nll be put on backup withholding at the expiration of the current Form W-8 on file wth the Bank. Backup withholding may also occur at any time upon any request served to the Bank by the IRS. The percentage withheld will be determined by the rate in effect under IRS regulations at the time backup withholding begins. If you are an exempt payee (receiver of interest payments), you need to supply us with your TIN, certify that your TIN is correct, and certify your exempt status. Some examples of exempt payees include corporations, organizations exempt from tax under Section 50i(a) of the internal Revenue Code, and an individual retirement plan or a custodial Account under Section 403(b)(7) of the Internal Revenue Code. If you do not supply us vwth the appropriate TIN or Form W-8, we may refuse to open your Account. All Account holders agree to be jointly and severally responsible for amounts that the Bank is required to withhold. You also agree that the Bank Is permitted to remove kjnds from any Account in any of your names for the amount of the backup withholding if It cannot be obtained from the Account to which interest has been credited. The Bank will inform you if the funds are removed from any Account other than the one to which interest was paid to pay the withholding. Any questions regarding tax withholdings should be directed to the IRS. Notice to All Non-Resldent Aliens IRS regulations require that we report to the IRS all deposit interest of $10 or more paid to Accounts belonging to certain non resident aliens, even if you provided us with a signed Certification of Foreign Status (Form W-8). Interest includes dividends, interest, incentives and bonus payments. SAFE AND SELF-SECURED DEPOSIT BOXES Refer to the separate Safe Deposit Box Rental Agreement or the Self-Secured Deposit Box Rental Agreement that is required to be executed at the time of rental of any safe deposit box or self- secured deposit box. 46 47 ACCOUNT SECURITY Your Responsibility it is your responsibility to protect the Account number(s), Card(s) and PlN(s) for your Account(s). Do not discuss, compare, or share information about your Account number(s), Card(s) or PIN(s) with anyone unless you are willing to give them fui! use of your money. Checks and electronic withdrawals are processed by automated methods, and anyone who obtains your Account number. Card or PIN could use it to wthdraw money from your Account, with or without your permission. You agree that if we offer you services appropriate for your Account to help identify and limit fraud or other unauthorized transactions against your Account, such as positive pay or commercially reasonable security procedures, and you reject those services, you will be responsible for any fraudulent or unauthorized transactions which could have been prevented by the services we offered, provided we used ordinary care in the payment of any item or transaction. Account Numbers Thieves can encode your Account number on a check, which looks and functions like an authorized check and can be used to withdraw money from your Account. Your Account number can also be used to issue a "Remotely Created Check." If you have truly authorized the Remotely Created Check (to purchase a sen/ice or merchandise, for example), it is property payable. But it can be risky to authorize a Remotely Created Check. A svinndier could issue a Remotely Created Check in an amount greater than you authorized, or issue additional Remotely Created Checks that you have not authorized. We will not know if the withdrawal is unauthorized or in an amount greater than the amount you have authorized. Payment can be made from your Account even though you did not contact us directly and order the payment. Closing a Compromised Account if you or we suspect that your Account is or may be compromised (this means, for example, third parties may have access to your Account number or there may have been or there is reason to suspect that there may be unauthorized transactions on the Account), we may recommend that you close your Account and open a new Account, if we recommend that you close your Account and you do not do so, we are not liable to you for subsequent losses or damages on the Account due to unauthorized transactions; provided we used ordinary care in the payment of any item or transaction. When you open a new Account, you are responsible for notifying any third parties that need to know your new Account number. Blank Checks You must also take precaution in safeguarding your blank checks. Notify us at once if you think your blank checks have been lost or stolen. As between you and us, If you are negligent in safeguarding your checks, you must bear the loss entirely yourself, or share the loss wth us if we failed to use ordinary care which substantially contributes to the loss. Claim of Loss If you claim a credit or refund because of a forgery, alteration, or any other unauthorized vrithdrawal, you agree to cooperate with us in the investigation of the loss, including giving us an afndavit containing whatever reasonable Information we require concerning your Account, the transaction, and the circumstances surrounding the loss. You must notify law enforcement authorities of any criminal act related to the claim of lost, missing, or stolen checks or unauthorized withdrawals. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. We vriii not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys' fees incurred by you. You agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or othenMse reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources. Preventing Fraud and Other Losses You have a duty to protect your Account against abuse: • Watch for out-of-sequence checks and checks made payable to cash or to a bank. Review your transaction activity often for unexpected fluctuations. • Do not keep your PIN \Mth or written on your Debit Card. • Do a thorough background check on Agents, bookkeepers, accountants, or other employees who may be handling any part of your banking and/or who have access to your confidential records. • Assign different individuals the responsibility for opening mail, reconciling bank statements and issuing checks. • Require that the owner or principal of the business open bank statements. • Do not assume missing checks are not a problem. Destroy any checks that you do not intend to use. • Notify us immediately if an employee who has been authorized to transact business with the Bank leaves your company. Please note that we reserve the right to a reasonable amount of time to act on your instructions. Refer to "Statements and Your Responsibility to Review" in the ABOUT YOUR ACCOUNT STATEMENTS section of this Agreement for details related to your obligation to review your Account statements. RESOLUTION OF DISPUTES BY ARBITRATION PLEASE READ THIS PROVISION CAREFULLY. UNDER THIS PROVISION, YOU WAIVE YOUR RIGHTS TO TRY ANY CLAIM IN COURT BEFORE A JUDGE OR JURY AND TO BRING OR PARTICIPATE IN ANY CLASS OR OTHER REPRESENTATIVE ACTION. Agreement to Arbitrate Disputes If you have a dispute with the Bank, and you are not able to resolve the dispute informally, you and we agree that upon demand by either you or us the dispute will be resolved through the binding arbitration process set forth in this section. Disputes Covered By Arbitration Any dispute relating to or arising out of your Account or this Agreement, including any aspect of any agreement that is governed by this Agreement, will be subject to arbitration. Ail 48 49 disputes are subject to arbitration, no matter what legal theory they are based on or what remedy (damages, or injunctive or declaratory relief) they seek. Disputes include any unresolved claims concerning any services relating to such Account, including, without limitation, safe deposit box services, wire transfer services, your use of any of the Bank's banking locations or facilitiesr or to any means you use to access your Account(s). Disputes include not only claims made directly by you, but also made by anyone connected with you or claiming through you, such as a joint Account owner, Account beneficiary, employee, representative. Agent, predecessor or successor, heir, assignee, or trustee in bankruptcy. Disputes include not only claims that relate directly to the Bank, but also its parent, affiliates, successors, assignees, employees, and agents and claims for which we may be directly or indirectly liable, even if we are not properly named at the time the claim is made. Disputes include claims based on any theory of law, contract, statute, regulation, tort (including fraud or any intentional tort), or any other legal or equitable ground, and include claims made as counterclaims, cross-claims, third party claims, interpleaders or otherwise. Disputes include claims made as part of a class action or other representative action, it being expressly understood and agreed to that the arbitration of such claims must proceed on an individual (non-class, non- representative) basis. Disputes also include claims relating to the enforceability or interpretation of this arbitration provision. A party who initiates a proceeding in court may elect arbitration with respect to any dispute advanced in that proceeding by any other party. This arbitration provision shall survive any termination of your Account(s) or relationship vrith us. Disputes Not Covered By Arbitration Disputes filed by you or by us individually in a small claims court are not subject to arbitration, so long as the disputes remain in such court and advance only an individual claim for relief. Commencing an Arbitration The party Initiating arbitration must choose one of the following arbitration forums to administer the arbitration: • The American Arbitration Association ("AAA") under AAA's Commercial Arbitration Rules and Mediation Procedures (Including Procedures for Large, Complex Commercial Disputes), except as modified by this Agreement. AAA's Rules may be obtained from www.adr.org or 1-800-778-7879 (toll- free). • JAMS/Endispute ("JAMS") under JAMS' Comprehensive Arbitration Rules & Procedures or Streamlined Arbitration Rules & Procedures except as modified by this Agreement. JAMS' Class Action Procedures shall not apply. JAMS' rules may be obtained from www.jamsadr.com or 1-800-352-5267 (toll free). Arbitration Procedure The arbitration shall be decided by a single neutral arbitrator selected in accordance >Mth AAA's or JAMS' rules, as applicable. The arbitrator will decide the dispute in accordance with the terms of our agreements and applicable substantive law. including the Federal Arbitration Act and applicable statutes of limitation. The arbitrator shall honor claims of privilege recognized at law. The arbitrator may award damages or other relief (including injunctive relief) available to you or us under applicable law. The arbitrator will not have the authority to awrard relief to, or against, any person or entity who is not a party to the arbitration. An award in arbitration shall determine the rights and obligations between the named parties only, and only in respect to the dispute in arbitration and shall not have any bearing on the rights and obligations of any other persons, or on the resolution of any other dispute. The arbitrator will take reasonable steps to protect customer Account information and other proprietary or confidential information. Any arbitration hearing shall take place in the same city as the U.S. District Court that is closest to your home address, unless the parties agree in writing to a different location or the arbitrator so orders. At your or our request, the arbitrator \mII issue a reasoned written decision sufficient to explain the essential findings and conclusions on which the award is based. The arbitrator's award shall be final and binding, subject to judicial review only to the extent allowed under the Federal Arbitration Act. You or we may seek to have the award vacated or confirmed and entered as a judgment in any court having jurisdiction. No Class Action or Joinder of Parties You and we agree that no class action, private attorney general or other representative claims may be pursued in arbitration, nor may such action be pursued in court if either you or we elect arbitration. Unless mutually agreed to by you and us, claims of two or more persons may not be joined, consolidated, or otherwise brought together in the same arbitration (unless those persons are joint Account owners or beneficiaries on your Account and/or related Accounts, or parties to a single transaction or related transaction). Applicable Law You and we agree that you and we are participating in transactions that Involve interstate commerce and that this agreement and any resulting arbitration are governed by the Federal Arbitration Act. To the extent state law applies, the laws of the state governing your Account relationship apply. No state statute pertaining to arbitration shall apply. Severabillty Except as this provision othenvise provides, if any part of this provision is deemed to be invalid or unenforceable, that part will be severed from the remainder of this provision and the remainder of this provision will be enforced. If any of the provisions of this agreement to arbitrate disputes regarding joinder, consolidation, class actions, class arbitrations, general public or private attorney general actions is found to be illegal or unenforceable, that invalid provision shall not be severable and this entire agreement to arbitrate disputes shall be unenforceable. 50 51 ADDITIONAL TERMS AND CONDITIONS Legal Processes If we are served with any legal process (subpoena, restraining order, levy, search warrant, writ of attachment or execution, or similar order) which we believe to be valid and which we believe applies to your Account or relationship with us, even if we are not a party, we may comply with such legal process. We may comply with any legal process without regard to the location served or the manner of service. The result is that we may accept legal processes in person, by mail, electronically, or by facsimile transmission at any branch or office, including locations other than the branch or office at which funds, property, or records are held. This means that, unless otherwise expressly prohibited by law, a legal process issued and sen/ed in one state may affect an Account held at any of our branches In any other state. Unless prohibited by law, we may charge you a fee for each legal process. Any fees or expenses we Incur In responding to any legal action (including, without limitation, our internal expenses) may be charged to your Account. On subpoenas or other requests for information, unless prohibited by law, if we are not fully reimbursed for research and other handling costs by the party who served the process, we may charge those costs to your Account. If there is an insufficient Available Balance in your Account, you agree to promptly pay us any defidency. You agree to indemnify, defend, and hold us hamiless from and against any and all losses, damages, claims, judgments, liability, costs and expenses associated with our compliance with any legal process that we believe to be valid. Accounts opened with trust or fiduciary designations, in particular, may be subject to legal process. Your indemnification obligations under this provision shall survive any termination of our Account relationship v\rith you. Legal processes must be served before our cut-off hour of 10 a.m. local time where the applicable branch is located to be effective against checks posted but not yet finally paid. Right of Set-off and Security Interest We may (without prior notice and when permitted by law) set off the funds in your Account against any due and payable debt you owe us now or in the future, by any of you having the right of vMthdrawal, to the extent of such person's or legal entity's right to withdraw. The amount of the set-off may be further limited by applicable law. If the debt arises from a note, 'any due and payable debt" includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance the due date for which we properly accelerate under the note. If the Bank debits funds from a certificate of deposit Account, the funds vrithdrawn may be subject to an early withdrawal penalty. If the debt is owed to us by a sole proprietor, the Bank may also debit any personal Accounts of ffre sole proprietor. If the debt is owed to us by a partnership, the Bank may debit any personal Account of any general partner. This Right of Set-off does not apply to your Account if prohibited by law. For example, the Right of Set-off does not apply to an Account if: (1) it is an Individual Retirement Account or similar tax- deferred Account, or (2) the debt is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest), or (3) the debtor's right of w^idrawal only arises in a representative capacity. 52 We will not be liable for the dishonor of any Item when the dishonor occurs because we set off a debt against your Account. You agree to indemnify, defend and hold us harmless from and against any and ail losses, damages, claims, judgments, liability, costs, and expenses arising as a result of our exerdse of our Right of Set-off. Your indemnification obligations under this provision shall survive any termination of our Account relationship with you. In addition, you grant the Bank a security interest in ail of your deposit Accounts to secure any obligation you owe to the Bank. Pledges and Security Interest to Others You cannot give a security Interest or pledge your Account to someone else without first getting the Bank's written consent. We are not required to give consent to a security interest or pledge. Referrals to Reporting Agencies and Collection Actions Negative information reflecting on your credit may be submitted to credit reporting agencies if: • We initiate a collection activity against you for indebtedness arising out of a default In your Account relationship. Further, you shall be liable to us for Interest, at the legal rate, for any and all indebtedness you incur based on your Account activity from the date the indebtedness is incurred; • You fail to fulfill the terms of your obligations with regard to your deposit Account(s) wth the Bank; or • In the Bank's judgment, you misuse your Account. Depending on the situation, a negative report may occur even if the Bank does not incur a loss in connection with your Account. Transfer of Ownership Accounts are NOT TRANSFERABLE. Federal regulations exclude from the definition of transfer an Account pledged as collateral for a loan or the passing of tiUe upon death, divorce, marriage, incompetency, or by operation of law. Neither transfer between natural persons when made on the books at Bank of the West nor the addition or subtraction of names of other natural persons Is regarded as a transfer. Agents and Powers of Attorney (Sole Proprietorships Only) You may wish to appoint an Agent to conduct transactions on your behalf. (We, however, have no duty or agreement whatsoever to monitor or Insure that the acts of the Agent are for your benefit.) If you want to give another person access to your Account, please talk to your Branch of Account well In advance of the date by which you wish to allow this access. As a sole proprietor, you may name additional signers to your Account. Those signers are your Agents. The Bank makes available a durable power of attomey form that is limited to a specific deposit Account as identified on the power of attomey form and which vwll remain valid notwithstanding the incapacity of the principal. If you name an Agent or an attomey-ln-fact on a non-Bank form, we may require that the form naming the Agent or attomey-in-fact be reviewed and approved according to our procedures. If you have more than one power of attomey or agency appointment on file with the Bank, we will honor each one independently unless you tell us to do otherwise or one power of attomey clearly revokes all prior appointments. For example, unless there is a clear revocation of other powers of attomey, if you have named two (2) different persons as attomeys-in-fact on separate powers of attomey, we will permit each to act In accordance with the information on the power of attomey on which they are named. 53 If the power of attorney is not "durable," it is revoked when you become incompetent. We may continue to honor the transactions of the Agent until: (1) we have received written notice or have actual knowledge of the termination of the authority or the death of the grantor of the power of attorney, and (2) we have had a reasonable opportunity to act on that notice or knowledge. You agree not to hold us responsible for any loss or damage you may incur as a result of our foliowng instructions given by an Agent acting under a valid power of attorney. We reserve the right to refuse attomeys-in-^ct access to certain banking services which you may have, such as the Online and Mobile Service. You agree that we will not be liable to you for any loss or damage you incur as a result of actions by any Agent/attomey-in-fact. Conflicting Demands In case of conflicting certifications or demands, a dispute about ownership of the Account, ownership of any funds in the Account, or any Account holder's authority or capacity to act on the Account, we may refuse to honor any request or order concerning your Account or any check drawn on your Account until we receive: (1) joint instructions regarding the Account, or (2) a court order. At our sole discretion, we may require the signatures of all Account holders and/or ail signers on your Account to comply with a specific request or for the withdrawal of funds and/or closing of an Account. In such event, we may also refuse to honor any further transactions and may return checks and other items. We resen/e the right to Interplead or deposit with the courts any disputed funds. We will not be liable for any losses Incurred or any Items that are dishonored as a consequence of placing a hold on funds In your Account for these reasons. Investigative Freezes As part of our loss prevention program, when we suspect that irregular, unauthorized, or unlawful activities may be involved with your Account, we may "freeze" (or place a hold on) Uie balance in your Account (and in other Accounts you maintain with us) pending an investigation of such suspected activities. You will be notified of any investigative freeze. While your Account is frozen, all wiUrdrawals from the Account are generally blocked. We will not be liable for any losses Incurred or any items that are dishonored as a consequence of placing a hold on frinds In your Account for these reasons. Enforcement You agree to be liable to the Bank for any liabiiity, loss or expense that the Bank incurs as a result of any dispute involving your Account or services. You authorize the Bank to deduct any such liabiiity. loss or expense from any of your Accounts without pnor notice to you. You agree to indemnify, defend, and hold us harmless from and against any and all losses, damages, claims, judgments, liability, costs, and expenses in connection with or arising out of this Agreement. Your obligations under this provision shall survive any termination of our Account relationship with you. Instructions by Facsimile, Email or Volcemail Unless required by law or we have agreed otherwise in writing, we are not required to act upon instructions you give us via facsimile transmission or leave by voice mail or on a telephone answering machine or make by email. Our Communications with You You agree that we, any of our affiliates, agents, independent contractors or sen/ice providers may monitor and record telephone calls regarding your banking services to assure the quality of our service or for other reasons. You also expressly consent that we, any of our affiliates, agents. Independent contractors or service providers may use written, electronic or verbal means to contact you. Your consent includes, but is not limited to, contact by manual calling methods, prerecorded or artificial voice messages, text messages, emails and/or automatic telephone dialing systems. You agree that we, any of our affiliates, agents, independent contractors or sen/ice providers may contact you by using any email address or any telephone number you pro\ride, including a telephone number for a cellular phone or other wireless device, regardless of whether you incur any charges as a result. Retaining Records We may retain records related to your Account in any form Including (but not limited to) paper, film, fiche, and electronic medium. If we are not able to produce the original or a copy of your signature card or any other document relating to your Account or service, our records (in whatever form we retain such records) will be deemed conclusive. If there is a discrepancy between your records and our records, our records will be deemed conclusive. CONTACT CENTER Call our Contact Center at: Phone: 1-800-488-2265 1-800-659-5495 (TTY users only) [Exit Code] + 1 + 925-975-3202 (Calling from Outside US) 6:00 AM - Midnight (Central Time) Monday - Friday 7:00 AM - Midnight (Central Time) Saturday, Sunday, and federal holidays Calls may be randomly monitored or recorded to ensure quality service. Write to our Contact Center at: Bank of the West Branch Service Center 13505 California Street NE-BBP-03-GA Omaha, NE 68154 EtuaiNousm LENDER Member FDIC Form #030-08511 (Rev. 08/17) 200575925-020 ® 1992,1693,1995WoItersNuwer Financial Services - Bankers Systems™ Form BOW-AIB-B 10/15/2016 Custom TCM-5Bs.3o,4m.5 54 55 BANKt^h'eWEST BNP PARIBAS COMMERCIAL CARD AGREEMENT This Commercial Card Agreement (this "Agreement"), effective as of , 2019 (the "Effective Date") is entered into between Bank of the West ("Bank"), a BNP Paribas Company, and ("Company"). WHEREAS, Bank is a California chartered bank engaged in the business of providing credit cards and related services and whose principal credit card office is located at 13505 California Street, Omaha. NE 68154. WHEREAS, Company is a . duly organized and validly existing under the laws of whose principal place of business is located at WHEREAS, in connection with the payment of certain business expenses of Company, Company has requested that Bank issue Cards to Company and certain Employees for the purpose of business related purchases and expenses. Company and such Employees will apply for Cards, and applicable Cardholder Agreements will govern the Cards (the "Program"). NOW, THEREFORE, in consideration of their mutual promises and obligations and intending to be legally bound hereby, the parties agree as follows: ARTICLE I - DEFINITIONS The terms below shall have the meanings set forth in this Agreement. "Bank Manager" means an individual designated by Bank, from time to time, to be the primary contact with the Company Manager. "Card" means a Credit Card or a Virtual Card Number issued by Bank to Company and/or an Employee. "Cardholder" means an Employee to whom a Card is issued by Bank, regardless of whether the Employee or Company is liable on the Card. "Cardholder Agreement" means an agreement pursuant to which a Card is issued to a Cardholder which includes without limitation the terms and conditions for obtaining credit through the use of a Card. "Cash Advance" means a cash loan or similar transaction under a Credit Card. "Company Credit Limit" means the maximum indebtedness that Company and all Employees may borrow under all Cards (including Cash Advances). "Company Manager" means an individual designated by Company, from time to time, to be the primary contact with the Bank Manager. "Corporate Billing" means Bank provides periodic billing statements for Cards to Company for Company to remit payments to Bank. "Credit Card" means any card, plate, or other single credit device that may be used from time to time to obtain credit. "Data Rate III Transaction" (also known as level 3 transaction) means a Transaction that is subject to enhanced data requirements defined by the applicable card network (e.g., Mastercard) where Bank receives a diminished merchant interchange rate from the applicable card network. "Employee" means any director, officer, or employee of Company who is designated by Company to be a Cardholder. "Employee Credit Limit" means the maximum indebtedness that an Employee may borrow under a Card (including Cash Advances). Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 1/20 BANKt^h^cWEST BNP PARIBAS "Individual Billing" means Bank provides periodic billing statements for Cards to Cardholders for Cardholders to remit payments to Bank. "Large Ticket Transaction" means a Transaction whose Transaction amount is greater than the minimum threshold defined by the applicable card network {e.g.. Mastercard) where Bank receives a diminished merchant interchange rate from the applicable card network. "Merchant Partner Program" means a program of a card network (e.g., Mastercard) in which a merchant negotiates reduced interchange for Transactions with the card network. "Net Purchasing Volume" means the total amount of all transactions net of credits and fees posted to the Card account during the applicable measuring period minus Cash Advances on the Card account. "Transaction" means a credit transaction under a Card and includes a Cash Advance. "Virtual Card Number" means a value created and stored via software and linked to a number embossed and/or encoded on a Credit Card. Virtual Card Numbers will identify Bank and a Cardholder account and consist of a major industry identifier, a Bank identifier, an individual account identifier, and a check digit and that can be used in place of a Credit Card in relation to so-called "Cardholder not present" transactions, such as transactions initiated through ecommerce, telephone, mobile telephone, or mall order and any other transactions for which a tangible plastic Credit Card is not being physically swiped or dipped. ARTICLE n - ISSUANCE OF THE CARDS II.A. The Prooram. Subject to Bank's then normal and customary underwriting criteria based on a credit evaluation of Company, upon receipt of a card request from a Company Manager, Bank will issue a Card subject to the terms and conditions of the Cardholder Agreement delivered by Bank. In all cases. Bank shall have the sole and absolute discretion on underwriting decisions. Company shall be liable on all Cards and obligations arising under or in connection with all Cards regardless of whether Company selects Corporate Billing or Individual Billing. H.B. Securitv Interest. To secure performance of all Company's obligations under this Agreement and all other obligations owed by Company to Bank, whether or not evidenced by this or any other agreement and now existing or hereafter created, Company hereby grants to Bank a security interest in and to all of the following property (the "Collateral"): (a) Equipment, all goods now owned or hereafter acquired by Company, or in which Company has or may acquire any interest, inciuding but not limited to all machinery, equipment, furniture, furnishings, fixtures, tools, supplies and motor vehicles of every kind and description, and all additions, accessions, improvements, repiacements and substitutions thereto and thereof; (b) Inventory, all Inventory now owned or hereafter acquired by Company including but not limited to raw materials, work in process, finished goods, inventory leased to others or held for lease, merchandise, parts and supplies of every kind, including inventory temporarily out of Company's custody or possession, together with all returns on accounts; (c) Accounts, all accounts, letter of credit rights, commercial tort claims, contract rights and general intangibles, including software and payment intangibles, now owned or hereafter created or acquired by Company including but not limited to receivables, credit card receivables, health care receivables, insurance receivables, software receivables and license fees, goodwill, trademark rights, trade styles, trade names, patents, patent applications, copyrights and copyright applications, customer lists, business records and computer programs, tapes, disks and related data processing software that at any time evidence or contain information relating to any of the Collateral; (d) Documents, all documents, instruments and chattel paper, whether electronic or tangible, now owned or hereafter acquired by Company, including, but not limited to, warehouse and other receipts, bills of sale, promissory notes and bills of lading; and (e) Monies, all monies, deposit accounts, certificates of deposit, investment property and securities of Company now or hereafter in Bank's or Bank's agents' possession. Bank's security interest in the Collateral shall be a continuing lien and shall include the proceeds and products of the Collateral, including without limitation proceeds of insurance. Company hereby consents to Bank filing financing statements in all locations deemed appropriate by Bank from time to time. The security interest granted to Bank in the Collaterai shall not secure or be deemed to secure Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 2/20 BANKt^'cWEST BNP PARIBAS any indebtedness of Company which is at the time of creation subject to the provisions of any state or federal consumer credit or truth-in-lending disclosure statutes. To the extent permitted by law, any additional security interest Company grants at any time in favor of Bank in assets of Company, other than real property or improvements constructed on such real property, shall also secure all obligations and indebtedness arising in connection with this Agreement; provided, however, that the provisions of any deed of trust or mortgage which purports to secure Company's indebtedness and other obligations under this Agreement shall control. Company and Bank hereby amend and modify any such document or agreement to provide that the security interest in assets of Company, other than real property or improvements constructed on such real property, granted therein further secures the obligations under this Agreement, II.C. Credit Limits. Il.C.a The Employee Credit Limit for each Card and Company Credit Limit shall be established from time to time by Bank in Bank's sole and absolute discretion based on Bank's then normal and customary underwriting criteria and Company's request. All indebtedness under all Cards shall be deemed to be indebtedness under the Company Credit Limit. Bank may, in Bank's sole discretion, increase the Company Credit Limit or an Employee Credit Limit at the request of Company, subject to Bank's then normal and customary underwriting criteria. The Employee may not request an increase in the Employee Credit Limit. Il.C.b If Bank reasonably believes that the prospects for performance by Company of Company's obligations under this Agreement, all Cards and Cardholder Agreements are impaired. Bank may, in Bank's sole discretion, reduce the Company Credit Limit by written notice delivered thirty (30) days prior to the effective date of the reduction in the Company Credit Limit. II.C.c If, on the effective date of the reduction in the Company Credit Limit, the total outstanding liabilities owed to Bank under all Cards exceeds the new Company Credit Limit, Company will immediately pay (or cause to be paid) Bank an amount sufficient to reduce the total outstanding obligation owed to Bank under the Cards to a sum at least equal to the new Company Credit Limit, and if usage of the Cards will cause Company to exceed the new Company Credit Limit, Company shall not use the Cards and shall cause the Cardholders to cease using the Cards until such time that credit is available under the new Company Credit Limit. Nothing herein shall be construed to prohibit Bank from charging any applicable over limit fee. Il.Cd Notwithstanding anything to the contrary, if the approval of an application for a Card, or increase in an Employee Credit Limit, would cause the then Company Credit Limit to be exceeded, Bank shall not be obligated to issue such Card or grant the application to increase the Employee Credit Limit even if Bank's then applicable customary and normal underwriting criteria is satisfied. ARTICLE III - LIMITATION OF LIABILITIES ASSUMED Limitation of Liabilities. Except in the case of gross negligence of Bank, or if applicable law, Cardholder Agreement, or this Agreement excuses liability on the part of Company or the Cardholder, Company, or the Cardholder, as the case may be, shall be fully liable for all Transactions and obligations arising under a Card or applicable Cardholder Agreement regardless of whether the Transaction is for business or consumer purposes. Bank shall be under no duty to investigate or inquire whether a Transaction is authorized by Company or whether the Transaction was for consumer purposes. In the event of possible loss, theft or Unauthorized Use of a Card, Company agrees to notify Bank immediately. Company agrees to assist Bank In determining the facts and circumstances relating to any Unauthorized Use of a Card. Company wilt not be liable for (1) Unauthorized Use that occurs after Company notifies Bank of loss, theft, or possible Unauthorized Use; (2) a Transaction that the applicable card network determines is not the responsibility of Company or Bank pursuant to the applicable card network's chargeback program, as amended from time to time; (3) a Transaction that Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 3/20 BANKt'^h'eWEST BNP PARIBAS occurs after Company requests, during normal business hours and in accordance with the terms of this Agreement, that the Card account be closed; (4) Unauthorized Use of a stolen Card if Company reports the Card stolen via facsimile, electronic mail, or telephone as provided in this Agreement within twenty-four (24) hours after Company or any Cardholder discovers, or using reasonable care should have discovered, the theft of such Card, provided that if the Card is not reported stolen within such time frame. Company shall be liable for all charges associated with the stolen Card until the date that Company or any Cardholder notifies Bank of the theft of such Card. Notwithstanding the foregoing, any Company for which Bank issues less than ten (10) Cards shall not be liable for Unauthorized Use occurring before Company notifies Bank that exceeds the lesser of $50 or the amount of money, property, labor, or services obtained by the Unauthorized Use. "Unauthorized Use in this Agreement is use that did not benefit either the Company or the Cardholder and was incurred by someone who is not the Cardholder or who did not have actual, implied or apparent authority to use the Card or Card account. For Cards not issued with the name of an individual on the Card, (a) some merchants may not accept the Card as a form of payment, and (b) Company loses charge-back rights on any fraudulent Transactions pursuant to Card association rules and policies. Therefore, Company may not prevail in any Transaction dispute process. ARTICLE IV - COVENANTS OF BANK Bank covenants with Company as follows; IV.A. Bank Manager. Bank will appoint a Bank Manager who shall meet with the Company Manager as frequently as mutually agreeable but at least quarterly to discuss matters related to the Cards. Cardholder Agreements, and this Agreement. Such meetings may be conducted telephonically. IV.B. Employee Information. Bank shall: (a) provide to the Company Manager a copy of each of the Cardholder's periodic statement, and (b) notify the Company Manager of Bank's termination of a Card account. ARTICLE V - COVENANTS OF COMPANY Company covenants with Bank as follows: V.A. Company Manager. Company will appoint a Company Manager who shall meet with Bank Manager as frequently as mutually agreeable to discuss matters related to the issuance of the Cards, Cardholder Agreements, and this Agreement. Such meetings may be conducted telephonically. V,B. Company's Revocation of Authority. Company must revoke the authority of any Cardholder who is no longer an Employee of Company. If Company revokes the authority of any Cardholder to use a Card, the Company Manager shall promptly notify Bank, and after a reasonable time to act on such notice. Bank shall terminate the Card account and post no Transactions to such Card account, provided that the use of the Card shall not be considered unauthorized by the Company until Bank has had a reasonable time to act upon Company's notice. The notice may be provided in writing or orally, telephonically, facsimile transmission or electronic mail. The Company shall use best efforts to recover the unauthorized Card from such Cardholder and deliver the Card to Bank promptly after recovery of the Card. V.C. Cooperation with Investigation. Company will cooperate, execute, acknowledge and deliver such instruments and take such other actions as Bank may reasonably require in connection with any unauthorized or fraudulent use of a Card, loss or theft of a Card, including without limitation executing an affidavit in a form satisfactory to Bank and providing to Bank a copy of a police report. V.D. Reliance. For purposes of this Agreement, any Employee shall be deemed authorized to act and give instruction and notice to Bank (except for a request to increase the Employee Credit Limit) for the Card issued to such Employee. Bank shall be entitled to act upon such notice from such Employee without liability or obligation to Company or the Cardholder, and shall be under no obligation or duty to Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 4/20 BANKt^h'cWEST BNP PARIBAS inquire into or investigate the authenticity, validity, or accuracy of such notice or information, notwithstanding any knowledge that Bank may have to the contrary. The Company Manager shall be deemed authorized to act for and bind Company and give instruction and notice to Bank. V.E. Use of Employee Information. Company agrees that Company shall use any information about an Employee provided to Company under or in connection with this Agreement only in connection with the Program and for no other purpose. V.F. Individual Billing Payments. If Company selects Individual Billing, Company will provide Employees with a mechanism by which to claim or report business expenses Incurred through the use of Cards. Company agrees to pay to the Bank, within thirty (30) days of written notice, all amounts due and owing under or in connection with each Card not paid by either a Cardholder or Company's reimbursement process above within 120 days of the payment due date on the periodic billing statement. V.G. OFAC. Company represents and warrants to Bank that neither Company nor any of Company's Employees are listed on the United States Office of Foreign Assets Control's ("OFAC") Specially Designation Nationals ("SDN") list or the European Union Consolidated List. Bank may impose federally required OFAC restrictions on Card use for any SDN or in OFAC designated major sanctioned countries. V.H. Exclusivitv. From the Effective Date and continuing until the Agreement is terminated. Bank shall be the exclusive provider to Company of Cards and Company shall not obtain commercial cards issued by a third party. ARTICLE VI - CONFIDENTIALITY VI.A. Company acknowledges that (a) Bank is subject to the consumer and customer privacy provisions of the Gramm-Leach-Bliley Act of 1999 ("Act") and the implementing regulations promulgated by applicable federal banking regulators (the "Regulations"), (b) the Bank Confidential Information covered by this Agreement may include Non-Public Personal Information as that term is defined in the Regulations, and (c) Bank has certain obligations to protect the Bank Confidential Information from unauthorized disclosure to third parties. Company understands that Company's willingness and ability to cooperate with and assist Bank in this regard is a material factor in Bank's willingness to enter into this Agreement. VI.B. For purposes of this Agreement, the following terms shall have the meanings assigned to them below; VI.B.a "Confidential Information" means Bank Confidential Information or Company Confidential Information, as applicable. VI.B.b "Bank Confidential Information" means all information of Bank, whether or not in written, electronic or optical form, including, without limitation; (i) the names, addresses, social security numbers, telephone and facsimile numbers, financial data, e-mail addresses, and any other Non-Public Personal Information regarding Bank's, Bank's operating subsidiaries', or Bank's affiliates' customers and consumers, or prospective customers and consumers; (ii) that Company knows or should have known is proprietary, confidential or a trade secret, and (iii) is clearly identified as proprietary, confidential or a trade secret. Notwithstanding the foregoing. Bank Confidential Information shall not include information that: (i) is or becomes generally available to the public other than as a result of a disclosure by Company, or any of Company's Representatives, in violation of this Agreement; (ii) is independently developed by employees or agents of Company who had no knowledge of or access to any of the Bank Confidential Information; (iii) was known to Company prior to disclosure by Bank hereunder; (iv) is or becomes available to Company from a source other than Bank; or (v) is disclosed with the consent of Bank; provided that with respect to clauses (iii) and (iv) above, the source of such information was not bound at the time of such disclosure by a nondisclosure, confidentiality or similar agreement with Bank or otherwise Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 5/20 BANKt^^TcWEST BNP PARIBAS prohibited from transmitting the information to Company, or any of Company's respective Representatives, because of a contractual, legal or fiduciary obligation. Company shall have the burden of proving that any Bank Confidential Information that Company or Company's respective Representatives uses or discloses contrary to the terms of this Agreement is not Bank Confidential Information. VI.B.c "Company Confidential Information" means all information of Company, whether or not in written, electronic or optical form, that (i) is clearly identified as proprietary, confidential or a trade secret, (ii) Bank knows or should have known is proprietary, confidential or a trade secret, and (iii) is information regarding Company's customers and consumers including, but not limited to, Nonpublic Personal Information regarding such customers and consumers and prospective customers and consumers. Notwithstanding the foregoing. Company Confidential Information shall not include information that; (i) Is or becomes generally available to the public other than as a result of a disclosure by Bank, or any of Bank's Representatives, in violation of this Agreement; (ii) is independently developed by employees or agents of Bank who had no knowledge of or access to any of the Company Confidential Information; (iii) was known to Bank prior to disclosure by Company; (iv) is or becomes available to Bank from a source other than Company; or (v) is disclosed with the consent of Company; provided that with respect to clauses (iii) and (iv) above, the source of such information was not bound at the time of such disclosure by a nondisclosure, confidentiality or similar agreement with Company or otherwise prohibited from transmitting the Company Confidential Information to Bank, or any of Bank's Representatives, because of a contractual, legal or fiduciary obligation. Bank shall have the burden of proving that any information that Bank or Bank's Representatives uses or discloses contrary to the terms of this Agreement is not Company Confidential Information. VI.B.d "Representatives" means any directors, officers, employees, agents, stockholders, subsidiaries, affiliates, attorneys, accountants and other advisors or representatives of a party. VI.C. Non-Use and Non-Disclosure of Confidential Information, (a) Company agrees to treat the Bank Confidential Information as strictly confidential and use and disclose the Bank Confidential Information only in connection with Company's performance of Company's duties and obligations under this Agreement. Company and Company's Representatives shall hold all Bank Confidential Information in a fiduciary capacity and shall exercise the highest degree of care in safeguarding all such Bank Confidential Information against loss, theft, intentional or inadvertent use and disclosure, and shall take all steps reasonably necessary to maintain the confidentiality thereof. Company shall immediately notify Bank of the date of, and circumstances involved in, any loss or unauthorized use or disclosure of Bank Confidential Information. Company agrees to disclose Bank Confidential Information only to Company's Representatives as is necessary for Company to perform Company's respective duties and obligations under this Agreement. Company shall notify all of Company's Representatives of Company that has access to or knowledge of any of the Bank Confidential Information as to the existence of this Agreement and require them to abide by the terms hereof, and shall be responsible for any use or disclosure of Bank Confidential Information by Company's Representatives that is contrary to the terms hereof to the same extent as if Company had used or disclosed such Bank Confidential Information. Company and Company's Representatives shall not, directly or indirectly: (i) disclose, divulge or discuss the Bank Confidential Information with any third party (other than Company's Representatives); (ii) use any of the Bank Confidential Information for any purpose whatsoever other than in connection with their respective performance of their respective duties and obligations under this Agreement; or (iii) use any of the Bank Confidential Information for the gain, benefit, advantage or profit of any other person. (b) Bank agrees to treat the Company Confidential Information as strictly confidential and use and disclose the Company Confidential Information only in connection with Bank's performance of Bank's duties and obligations under this Agreement. Bank and Bank's Representatives shall hold all Company Confidential Information in a fiduciary capacity and shall exercise the highest degree of care in safeguarding ail such Company Confidential Information against loss, theft, intentional or inadvertent use and disclosure, and shall take all steps reasonably necessary to maintain the confidentiality thereof. Bank shall immediately notify Company of the date of, and circumstances Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 6/20 BANKt^h'cWEST BNP PARIBAS involved in, any loss or unauthorized use or disclosure of Company Confidential Information. Bank agrees to disclose Company Confidential Information only to Bank's Representatives as is necessary for Bank to perform Bank's duties and obligations under this Agreement. Bank shall notify each of Bank's Representatives that has access to or knowledge of any of the Company Confidential Information as to the existence of this Agreement and require them to abide by the terms hereof, and shall be responsible for any use or disclosure of Company Confidential Information by Bank's Representatives that is contrary to the terms hereof to the same extent as if Bank had used or disclosed such Company Confidential Information. Bank shall not, and shall cause Bank's Representatives not to, directly or indirectly: (i) disclose, divulge or discuss the Company Confidential Information with any third party (other than Bank's Representatives); (ii) use any of the Company Confidential Information for any purpose whatsoever other than in connection with Bank's performance of Bank's duties and obligations for Bank and under this Agreement; or (iii) use any of the Company Confidential Information for the gain, benefit, advantage or profit of any other person. VI.D. Compulsory Disclosure. In the event that Company or Bank, as applicable, is requested or required, as a result of any judicial or regulatory proceeding, to make any disclosure of Bank Confidential Information or Company Confidential Information, as applicable. Company or Bank, as applicable, agrees to provide the other party with advance notice thereof as promptly as possible (but in no event less than seven business days unless applicable law or a court order provides for disclosure prior to expiration of the seven business day period) so that the other party may seek an appropriate protective order or other appropriate remedy. If Bank or Company, as applicable, is unable to timely obtain such a protective order or other appropriate remedy and the other party is compelled to disclose any Confidential Information or else stand liable for contempt or suffer any similar censure, sanction or penalty, then Bank or Company, as applicable, may disclose only that portion of the Confidential Information that such party is advised by counsel is legally required to be disclosed, and such party shall use reasonable efforts to obtain reliable assurances that the Confidential Information that is so disclosed will be treated confidentially. Any party to this Agreement may reveal Confidential Information to a regulatory agency with jurisdiction over such party and to such party's auditors and attorneys. VI.E. Destruction and Return of Confidential Information. Company agrees that all Bank Confidential Information, including any summaries, copies or reproductions permitted hereby, are and shall remain the property of Bank. From time to time, and at any time, in Bank's sole discretion, Bank may request in writing that Company either immediately destroy or return the Bank Confidential Information to Bank, and Company agrees to promptly comply with Bank's request and shall cause Company's respective Representatives to comply with Bank's request, including, but not limited to, the destruction or deletion of all machine readable, electronic or optical Bank Confidential Information from computer systems and data storage devices. If destruction or return of the Bank Confidential Information is not feasible, then Company shall consult with Bank and take prompt action to make such Bank Confidential Information unavailable or inaccessible to Company, Company's Representatives and other persons. Company agrees to promptly provide Bank with written certification of Company's satisfaction with the terms of this paragraph. Notwithstanding anything to the contrary contained herein, for purposes of this section, the periodic statements on a Card account to Company under Article IV hereof, shall be property of Company and shall not be subject to the provisions of this section. Bank agrees that all Company Confidential Information, including any summaries, copies or reproductions permitted hereby, are and shall, as between Bank and Company, remain the property of Company. From time to time, and at any time, in Company's sole discretion. Company may request in writing that Bank either immediately destroy or return to Company, and Bank agrees to promptly comply with Company's request and shall cause Bank's Representatives to comply with Company's request, including, but not limited to, the destruction or deletion of all machine readable, electronic or optical Company Confidential Information from computer systems and data storage devices. If destruction or return of the Company Confidential Information is not feasible, then Bank shall consult with Company and take prompt action to make such Company Confidential Information unavailable or Inaccessible to Bank, Bank's Representatives and other persons. Bank agrees to promptly provide. Commercial Card Agreement - Corporate Liability wth Purchase Control 2019 (editable) 7/20 m BANKA^eWEST BNP PARIBAS and to cause its Representatives to promptly provide Company with written certification of Bank's satisfaction with the terms of this paragraph. VI.F. No License. Obligation or Warranty. No right, title or license is hereby granted by Bank, by implication or otherwise, to Company or any of Company's Representatives, except for the limited usage rights specifically described herein, with respect to any Bank Confidential Information. No right, title or license is hereby granted by Company by implication or otherwise, to Bank or any of Banks Representatives, except for the limited usage rights specifically described herein, with respect to any Company Confidential Information. VI.G. Specific Performance, Company and Bank each recognizes and acknowledges, on behalf of itself and their respective Representatives, that the Bank Confidential Information and Company Confidential Information are special and unique to Bank, or Company, as applicable, and that any breach or threatened breach of any of the provisions of this Agreement will result in irreparable and continuing harm to Bank or Company, as applicable, for which there will be no adequate remedy at law and which could not be adequately compensated by monetary damages. If either party or any of such party's respective Representatives, breaches, or threatens to commit a breach of, any of the provisions of this Agreement, then the other party shall have (but shall not be limited to) the right and remedy to have this Agreement specifically enforced by any court having equity jurisdiction, including but not limited to the right to obtain temporary and permanent injunctions against the party allegedly in breach of this Agreement, and such party's Representatives, without having to prove actual damages or post a bond. In connection with the enforcement of this section, the parties hereby irrevocably submits for the purposes of any action or proceeding to enforce this Agreement to the jurisdiction of the courts of the State of Nebraska and the Federal District Court for the District of Nebraska, and to venue in Omaha, Nebraska. VI.I. Notices of Default. Bank and Company shall each promptly give written notice to the other upon becoming aware of the impending or threatened occurrence of any event which could reasonably be expected to cause or constitute a breach of any of their respective representations, warranties, covenants or agreements contained in this Agreement. ARTICLE VII - TERMINATION VILA. The initial term of this Agreement shall commence on the Effective Date and remain in force for a period of three (3) years from the Effective Date, VII.B, Upon expiration of the initial term, this Agreement shall automatically renew for additional successive terms of one (1) year until a party delivers written notice of non-renewal to the other party at least thirty (30) days prior to the end of the then-current term, or this Agreement is terminated in accordance with the terms of this Agreement. VIl.C. This Agreement may be terminated: Vll.C.a By Bank if Company materially breaches any representation, warranty or agreement contained in this Agreement which is not cured within thirty (30) days after written notice of such breach has been delivered to Company. Vll.C.b By Company if Bank materially breaches any representation, warranty or agreement contained in this Agreement which is not cured within thirty (30) days after written notice of such breach has been delivered to Bank. VII.C.c By Company if the Federal Deposit Insurance Corporation is appointed as a receiver for Bank. Vll.C.d By Bank if Company commences a voluntary case or other proceeding seeking rehabilitation, liquidation, reorganization or other relief with respect to itself or Company's debts under any rehabilitation, bankruptcy, insolvency or other similar law generally affecting the rights of creditors now or hereafter in effect or seeking the appointment of a trustee, rehabilitator, receiver, liquidator, custodian or other similar official of Company or substantially all of Commercial Card Agreement - Coiporate Liability wth Purchase Control 2019 (editable) 8/20 BANKt^WEST BNP PARIBAS Company's property, or consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against Company, or make a general assignment for the benefit of creditors, or file an answer admitting the material allegations of a petition filed against Company in any such proceeding or fail generally to pay Company's debts as they become due, or take any corporate action to authorize any of the foregoing; or Vll.C.e By Bank if an involuntary case or other proceeding be commenced against Company seeking rehabilitation, liquidation, reorganization or other relief with respect to Company or Company's debts under any rehabilitation, bankruptcy, insolvency or other similar law generally affecting the rights of creditors now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of Company or any substantial part of Company's property, and such involuntary case or other proceeding remains undismissed and unstayed for a period of sixty (60) days, this Agreement shall be terminated as to such party. Vll.C.f By Bank upon sixty (60) days prior notice if Bank reasonably believes that the prospects for performance by Company of Company's obligations under this Agreement, all Cards and Cardholder Agreements are significantly impaired. VII.D. Effect of Termination. The termination of this Agreement shall not affect, diminish, release or impair any obligation or liability incurred by a party to the other party which was incurred prior to the effective date of termination under this Agreement any obligation or liability incurred by a Cardholder to Bank prior to the effective date of termination of the applicable Card, or in connection with this Agreement. On the effective date of termination, Bank may, without further notice to Company or any Cardholder, terminate and cancel all Cards without incurring any further obligation and liability. ARTICLE VIII - INDEMNIFICATION VIIL indemnification. Company shall indemnify Bank and hold Bank harmless from and against any and all damage, loss, or injury which Bank may suffer, incur or sustain arising out of this Agreement, the Cards, the Cardholder Agreements, and any Transaction unless such damage, loss, or injury was caused by the sole negligence of Bank. To exercise Bank's indemnification rights hereunder as the result of the assertion against Bank of any claim or potential liability or loss for which indemnification is provided. Bank shall promptly notify Company of the assertion of such claim, discovery of any such potential liability or loss or the commencement of any action or proceeding in respect of which indemnity may be sought hereunder. Bank shall advise Company of all facts relating to such assertion within the knowledge of Bank, and shall afford Company the opportunity at Company's sole cost and expense to defend against such claims for liability. Company shall notify Bank within thirty (30) days of receipt of a notice of claim, whether Company shall assume the defense of such claim (unless a shorter response period is required under the circumstances). If the defense of a claim is assumed by Company. Bank shall be consulted and kept fully informed with regard to the progress of such claim. Bank shall cooperate with Company in connection with such claim. In any such action or proceeding. Bank shall have the right to retain Bank's own counsel, but the fees and expenses of such counsel shall be at Bank's own expense unless (i) Company and Bank mutually agree to the retention of such counsel, (ii) the named parties to any such suit, action, or proceeding (including any impleaded parties) include both Bank and Company, and in the reasonable judgment of Bank, representation of Bank and Company the same counsel would be inadvisable due to actual or potential differing or conflicts of interests between them, or (iii) Company has failed to promptly assume or diligently prosecute or defend the claim. ARTICLE IX - REPRESENTATIONS AND WARRANTIES IX.A. Bank hereby represents, warrants and covenants to and with Company as follows: IX.A.a The execution and delivery by Bank of this Agreement, the performance by Bank of Bank's duties and obligations hereunder and the consummation of the transactions contemplated Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 9/20 -7^BANKt^h^eWEST BNP PARIBAS hereby do not (i) conflict with or result in a violation or breach of any term or provision of any law, rule, regulation, judgment, decree, order or injunction applicable to Bank or any of Bank's assets and properties or any contractual restriction of any kind binding or affecting Bank or any of Bank's properties, or (ii) conflict with or result in a violation or breach of or constitute, with or without notice or lapse of time or both, a default under any material agreement to which Bank is a party or any material obligation or responsibility which Bank has to any third party. IX.A.b Bank is a corporation duly organized, validly existing and in good standing under the laws of California. Bank has the corporate power and authority to execute and deliver this Agreement and to perform Bank's obligations hereunder. IX.B. Company hereby represents, warrants and covenants to and with Bank as follows; IX.B.a The execution and delivery by Company of this Agreement, the performance by Company of Company's duties and obligations hereunder and the consummation of the transactions contemplated hereby do not (i) conflict with or result in a violation or breach of any term or provision of any law, rule, regulation, judgment, decree, order or injunction applicable to Company or any of Company's assets and properties or any contractual restriction of any kind binding or affecting Company or any of Company's properties, or (ii) conflict with or result in a violation or breach of or constitute, with or without notice or lapse of time or both, a default under any material agreement to which Company is a party or any material obligation or responsibility which Company has to any third party. IX.B.b Company has the power and authority to execute and deliver this Agreement and to perform Company's obligations hereunder. ARTICLE X - MISCELLANEOUS X.A. Survival- Articles III, V.C. V.E, V.F, VI, VII.D and Vlll shall survive termination of this Agreement. X.B. Assignment. Neither this Agreement nor any of the rights, interests or obligations of either party hereunder may be assigned by either of the parties without the prior written consent of the other party, provided, however, that Bank may subcontract with a third party to perform the non-credit services to be provided by Bank without the consent of Company. No such permitted assignment or subcontracting shall release the assignor or subcontractor from assignor's or subcontractor's obligations and liabilities under this Agreement. X.C. Binding Effect. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and permitted assigns. X.D. Notices. Except as provided In Article IV, all information, notices, requests, demands, consents and other communications given or required to be given under this Agreement and under the related documents shall be in writing and delivered to the applicable party at the address indicated below: If to Bank: Bank of the West 180 Montgomery Street, 11th floor San Francisco, CA 94104 Attention: Commercial Card Manager If to Company: or, as to each party at such other address as shall be designated by such party In a written notice to the other party complying as to delivery with the terms of this section. Any notices shall be In writing. Commercial Card Agreement - Corporate Uability with Purchase Control 2019 (editable) 10/20 m BANKx^H^eWEST BNP PARIBAS including telegraphic or facsimile communication, and may (but need not) be sent by registered or certified mail, return receipt requested, postage prepaid or telegraphed. Notices may not be sent by electronic mail. Notice shall be effective upon actual receipt thereof. X.E. Incorporation. All appendices attached to this Agreement are incorporated into this Agreement by reference. X.F. Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Nebraska (excluding Nebraska's choice of law rules), and as applicable, federal law, X.G. Entire Agreement. This Agreement contains the entire understanding of and all agreements between the parties with respect to the subject matter hereof and supersedes any prior or contemporaneous representation, information, bid. offer, letter of intent, agreement or understanding, oral or written, pertaining to any such matters which agreements or understandings shall be of no force or effect for any purpose. This Agreement may not be amended or supplemented in any manner except by mutual agreement of the parties and as set forth in a writing signed by a duly authorized representative of the parties hereto or their respective successors in interest, provided that, notwithstanding anything to the contrary contained herein, Bank may unilaterally, in Bank's sole discretion, amend the terms and conditions of any Cardholder Agreement, including, without limitation, the interest, fees and charges related to the Cards, in accordance with the provisions of the Cardholder Agreement. X.H. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. X.I. Headings and Construction. The headings used in this Agreement are inserted for purposes of convenience of reference only and shall not limit or define the meaning of any provisions of this Agreement. As used herein, the singular includes the plural and vice-versa, the masculine includes the feminine, and vice-versa, "and" means "or" and vice-versa, unless the context clearly indicates the contrary, X.J. Waiver. The waiver of any breach of any provision under this Agreement by any party shall not be deemed to be a waiver of any preceding, subsequent or other breach under this Agreement. No such waiver shall be effective unless in writing and executed by any authorized signatory. X.K. Third Party Beneficiaries. Except as expressly provided in this Agreement, the parties intend that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person other than the parties to this Agreement. X.L. Severabilitv. If any provision of this Agreement, as applied to any part or circumstances, shall be adjudged by a court of competent jurisdiction to be void, invalid or unenforceable, the same shall in no way affect any other provision of this Agreement, the application of any such provision, or any other circumstances, or the validity or enforceability of the other provisions of this Agreement. X.M. Force Maieure. Neither party to this Agreement shall be liable to the other party for any delay or non- performance of such party's obligations under this Agreement or any Cardholder Agreement arising from any cause beyond such party's reasonable control, provided, however, that such party shall, on a best efforts basis, cure such inability to timely perform such party's obligations hereunder, and if such party is unable to cure such nonperformance within thirty (30) days of the force majeure event, the other party may terminate this Agreement. X.N. Association Rules. Company acknowledges and agrees that the association rules of the applicable card network shall govern and regulate certain issues which arise out of the usage of the Cards. X.O. No Partnership. Neither this Agreement nor the performance of the services of the respective parties hereunder shall be considered or construed to (a) create a partnership, association or joint venture between Company and Bank, or (b) constitute any party to this Agreement or any of such party's respective agents, employees or Representatives as the agent, employee or representative of the any other party, and no party to this Agreement shall make any representations to the contrary. No party to this Agreement will be under any obligation to any other person, except for obligations expressly assumed under this Agreement or by operation of law. Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 11/20 BANKt^h-eWEST BNPPARIBAS X.P. Cooperation. The parties shall cooperate to insure that the respective duties and obligations of each of the parties hereunder are effectively, efficiently and promptly discharged. Each party shall execute and deliver to the other parties such further instruments and documents and take such further action as may from time to time be necessary to carry out the Intent and purposes of this Agreement. Commercial Card Agreement - Coiporate Liability with Purchase Control 2019 (editable) 12/20 BANKi^H^tWEST BNP PARIBAS IN WITNESS WHEREOF, the parties to this Agreement have caused this Agreement to be executed by their duly authorized officers as of the date first above written. COMPANY NAME BANK OF THE WEST Name;Name: Title:Title; Signature Signature Date Date Additional company signatory (optional) Name: Title: Signature Date Commercial Card Agreement - Corporate Uabiiity with Purchase Control 2019 (editable)13/20 BANKt^h^eWEST BNP PARIBAS APPENDIX A-PRICING o Annual Account Fees* - please check your choice(s) □ Corporate Cards - Merchant Category Codes (MCC) restrictions NOT available □ Purchasing and Fleet Cards - Merchant Category Codes (MCC) restrictions available (card design may be different from the illustration but vmII indicate card type on card) V"* BttNK.iWfSI%. (IHPPAIIIIIAS rj ^ 3c:: UANk—Wl>l V U B C •• ri < a: K i: $30.00 (Waived if annual Net Purchasing Volume is 2$240.000) $45.00 (Waived if annual Net Purchasing Volume is a $720,000) o Billing - please check your choice(s)□ Corporate Billing □ Individual Billing o Late payment fee (if the Amount Due printed on the periodic billing statement is not paid in full by the Payment Due Date)$25.00 o Fraud protection per card $0.00 o ATM fees - Domestic $1.00 per withdrawal o ATM fees - International $2.50 per withdrawal o Foreign Transaction Fee o Intemational Transaction Fee (Visa/Mastercard Fees) 1.5% 1.0% o Finance Charge - Purchase (if the Amount Due printed on the periodic billing statement is not paid in full by the Payment Due Date) Prime + 4.99% (Corporate Billing) Prime + 6.99% (Individual Billing) o Finance Charge - Cash Advance 18% o Emergency Card Replacement (24 hour service)** o Emergency Cash Advance** Domestic Fee; $125.00 Intemational: $165.00 o NSF Payment Fee $15.00 per returned payment o Over-the-credit-limit Fee $25.00 o Copy of Sales Draft $2.00 per sales draft o Copy of Statement $8.00 per statement o Logo Card Setup Fee (monochrome logo on standard design)$300.00 per design o Custom File Interface Setup Fee**$1,500.00/per data feed*** o Monthly Data File Transmission Fee**$100.00/per data feed*** o New and Replacement Card Fees $0.00 (standard mail) $20.00 per card (overnight) * Annual Account Fee. The Company agrees to pay an annual account fee for establishing and maintaining an account (e.g., Card account. Company account) issued on behatf of the Company. Fees are always waived the first year. This fee is payable on the anniversary date of account issuance and annually thereafter. ** Mastercard ONLY *** Program Maintenance and Transactions Fees to be waived when average monthly Net Purchasing Volume exceeds $200,000.00 and tfie average transaction size exceeds $125.00. Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable)14/20 BANKt^h^WEST BNP PARIBAS APPENDIX B - REBATES Bank will pay Company a rebate based on the formula and terms set forth herein. Rebates are paid on the total Net Purchasing Volume once the minimum volume of $1,000,000 has been attained for each calendar year of the Agreement. The account must be in good standing to earn rebates. No rebates will be earned or paid if Company was in default under this Agreement at any time during any applicable rebate year. Rebates are paid yearly within sixty (60) days after the end of each calendar year of the Agreement. In no event shall Bank pay Company a rebate for the year in which the Agreement is terminated if such termination occurs during any calendar year and such termination is not a termination at the end of such calendar year. The rebate is based on the Net Purchasing Volume less any costs of travel rewards. Cash Advances and other cash transactions do not earn rebates. Bank reserves the right to deduct fraud losses from the rebate. Program Maintenance and Transactions Fees in Appendix A will be deducted from the rebate. The Rebate Schedule is subject to change or discontinuance if the interchange rate received by Bank is materially reduced or if there is a substantial change in the LIBOR (London Interbank Offered Rate) index or the index that Bank replaces LIBOR with in the event that LIBOR is discontinued. Such change in the rebate schedule will not impact any rebates previously earned and Bank will provide at least sixty (60) days' notice of any such change. Notwithstanding anything in this Appendix or the Agreement to the contrary, rebates are not earned on charges that earn Bank of the West Travel Rewards. Accordingly, any rebate dollar amount calculation will not include Net Purchasing Volume associated with charges that qualify and/or are used for calculation of rewards as part of the Bank of the West Travel Rewards program. For purposes of solely determining the rebate rate tier used to calculate a rebate, the total Net Purchasing Volume will be used (without any deduction of charges that earn Bank of the West Travel Rewards). Rebates Schedule: Net Purchasing Volume 30/25* 1 Minimum Maximum REBATE RATE** 1 0 999,999.99 0.00% 1,000,000 2,499,999.99 0.65% 2,500,000 4,999,999.99 0.75% 5,000,000 7,499,999.99 0.83% 7,500,000 9,999,999.99 0.91% 10,000,000 Over 1,00% * 30/25 means monthly billing cycle with 25 days' grace period (payment due 25 days after cycle date) Rebate rate effective from dollar one ($1) If Bank receives reduced interchange due to Large Ticket Transactions, Bank reserves the right to apply a maximum rebate rate (the "Large Dollar Rebate") of 0.45% to Large Ticket Transactions. If Bank receives reduced interchange due to Data Rate III Transactions (also known as Level 3 transactions). Bank reserves the right to apply a maximum rebate rate (the "Data Rate III Rebate") of 1.00% to Data Rate III Transactions. Bank reserves the right to reduce the rebate rate by 0.20% for Net Purchasing Volume coming from Cards with Individual Billing. In this case, the rebate rate will be no less than the rate for $1 million, unless Net Purchasing Volume of $1 million is not reached. All Net Purchasing Volume incurred on Cards with Corporate Billing will earn the standard rebate rate shown above. Commercial Card Agreement - Cotporate Liability with Purchase Control 2019 (editable)15/20 BANKt^h^eWEST BNP PARIBAS Bank reserves the right to exclude transactions at any merchant who participates in a Merchant Partner Program from the rebate, even if such transactions are included in the Net Purchasing Volume. Accordingly, any rebate dollar amount calculation will not include Net Purchasing Volume associated with a Merchant Partner Program. Bank reserves the right to exclude Large Ticket Transactions and Transactions under a Merchant Partner Program from the Net Purchasing Volume should the total Net Purchasing Volume exceed $2,499,999.99 or should Large Ticket Transactions and Transactions under a Merchant Partner Program exceed 5% of the total Net Purchasing Volume. Commercial Card Agreement • Corporate Uabitity with Purchase Control 2019 (editable) 16/20 a BANKt^h'eWEST BNP PARIBAS APPENDIX C - PURCHASE CONTROL SERVICES This Appendix C is made a part of the Commercial Card Agreement (the "Agreement") entered into between the parties and governs Company's receipt of Purchase Control Services from Bank. Bank offers a hosted technology platform and related services, supporting authorization, transaction routing and alert controls (collectively, the "Purchase Control Services") to its commercial card customers. Capitalized terms not expressly defined herein shall have the meanings ascribed to them in the Agreement. 1. Provisions of Services. Bank may modify the Purchase Control Services as necessary to implement technical and functional changes to Bank's systems. Company shall implement technical and functional changes to its systems as may be reasonably required by Bank to access the Purchase Control Services. Each party shall bear its own costs associated with the implementation of any changes or modifications to its systems. The Purchase Control Services are intended to provide Company with the following key product features: • Generation of unique Virtual Card Numbers linked to a Credit Card • Enhanced authorization controls whereby spending can be controlled in various ways including purchase amount, purchase type, validity period and supplier • Flexible, user-configurable workflow model to support the request, review and approval of purchase requests received via the hosted web-site (if applicable) • Integration via a real-time XML Messaging Application Programming Interface (API) with Customer's e- procurement or in-house purchasing system or with certain travel management companies to perform real time requests for Virtual Card Numbers (if applicable). • Support of the Virtual Card Number for enhanced data reporting In management information systems (e.g., MasterCard Global Data Repository and Smart Data Product Suite) and acting as a unique identifier of a Card for the reconciliation process • Ability to enhance travel industry addenda information for up to 30 custom cost allocation fields for Card payments (Company cannot include any Protected Health Information data in these fields) • Ability to process payments to customer's suppliers through a batch file initiated by Company using protocols as defined by Bank and/or Company (if applicable) 2. Equipment: Software. Company must provide and properly install all required equipment and software and maintain the equipment and software in good working order. Company accepts full responsibility for the security and confidentiality of all matters related to the equipment and software. Any equipment and software requirements are described in the User Materials, as such may be amended from time to time. For purposes of this Appendix C, "User Materials" means any set up forms, user manuals, reference cards or other product description materials, including online messages related to Purchase Control Services. Unless othenAfise agreed between the parties. Bank is not responsible for the installation or setup of any equipment or software. Bank does not guarantee access to the Purchase Control Service from all computers, modems or communication software packages. Should Company choose to use equipment or software not listed in the User Materials or not previously authorized by Bank in writing. Bank may not support such equipment and software and Company may not be able to access the Purchase Control Services with such equipment and software. 3. General Security Procedure Requirements. A. The User Materials outline in detail the security safeguards provided to Company by Bank and the System Administrator's roles and responsibilities. Those security safeguards include, without limitation, use of a user id and password, the ability by Company's designated System Administrator to delegate to various users access to specified Purchase Control Service modules, hours of access, the functions and accounts accessible by any user within the specified modules. Company will be responsible for the administration of such access, including the deletion of authorized users. Company will monitor Card use and accept and act on all communications regarding the Purchase Control Services. Bank may without further inquiry, rely on, deal with and accept instructions related to the Purchase Control Services from any Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 17/20 BANKt^h^eWEST BNP PARIBAS person who identifies himself or herself as the person designated by Company as the System Administrator. B. The Purchase Control Services can be accessed and instructions and communications can be given by Company to Bank by electronic means, such as a computer terminal. If Bank gives Company access to a secure system of communicating with Bank, such as Bank's online banking services, Company will be given or will select a user id and password. Each individual who is authorized by Company to access the Purchase Control Services must have a unique user id and password. Company will be solely responsible for the confidentiality and use of each user id and password and represents and warrants that Company will implement commercially reasonable physical and electronic controls and safeguards to protect the confidentiality and integrity of user ids and passwords. Company is responsible for all instructions received by Bank through and under any authorized user id and password. Bank reserves the right to require Company to change any or all of the security procedures or codes at any time. Bank may require that Company designate an individual {and, where applicable. Bank recommends that Company have at least two individuals) who are authorized to take control of the security procedures inherent in the Purchase Control Services. Company may designate an Employee(s) as the Designated Company Contact ("DCC"). The DCC is, or can assign to other Company Employees, the role of System Administrator(s). The "System Administrator(s)'' is a Company Purchase Control Services user that is responsible for assigning the levels of security necessary for Company and access rights of other Company Employees who are granted access to the Purchase Control Services. C. Any initial default passwords are sent to the DCC under separate cover. D. Any System Administrator(s) will be required to change the initial passwords the first time they use their IDs to login into the Purchase Control Services. It is the System Administrator's responsibility to understand the security capabilities built into the Purchase Control Services and to assign and, as appropriate to Company's business and security needs, to restrict access to the various applications only to those Employees who have a need to know, keeping in mind the importance of separation of duties as an important way of protecting Company. The System Administrator also maintains the responsibility of setting certain limits related to dollar or volume thresholds for authorized users. E. Company agrees to follow the security procedures Bank has established for communications with Bank. F. Bank does not publish these security procedures or make them generally available to the public because doing so would compromise the integrity of the security procedures. Company is responsible for maintaining the confidentiality of any security procedures established. If Company or Company's agents have reason to believe that any security procedures (including any identification codes) have or may have become known by unauthorized persons (whether or not Company's Employees), Company shall immediately notify Bank by telephone. G. Until Company notifies Bank and Bank has a reasonable opportunity to act on the notice, Company shall remain responsible for any transactions and/or instructions given by use of each user id and password. Company is solely liable for any transactions and/or communications initiated by Bank before Bank has received notice from Company of the breach or potential breach of any security procedure and have had a reasonable opportunity to act on such notice. H. Company agrees to notify Bank immediately if Company becomes aware of: (i) any loss or theft of any user id or password; or (ii) unauthorized use of user id and/or password, or of the Purchase Control Services or any information. Company further agrees to notify Bank immediately if Company is required to take any action to terminate access to the Purchase Control Services by any user(s). Company agrees to confirm any oral notification in writing to Bank within 24 hours. Company agrees to cooperate with Bank to replace the security procedures (including any identification codes) in accordance with Bank's security requirements. I. FAILURE TO PROTECT USER IDENTIFICATION CODES AND OTHER SECURITY DEVICES MAY ALLOW AN UNAUTHORIZED PARTY TO (I) USE THE PURCHASE CONTROL SERVICES. (II) CORRECT, CHANGE, VERIFY, OR SEND DATA USED WITH THE PURCHASE CONTROL SERVICES; Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable) 18/20 BANKt^h^eWEST BNP PARIBAS (IN) SEND INFORMATION AND COMMUNICATIONS TO, OR RECEIVE INFORMATION AND COMMUNICATIONS FROM BANK; (IV) ACCESS COMPANY'S ELECTRONIC COMMUNICATIONS AND FINANCIAL DATA; OR (V) PROCESS FRAUDULENT PAYMENT ORDERS IN COMPANY'S NAME. ALL ENTRIES INTO THE PURCHASE CONTROL SERVICES, ALL COMMUNICATIONS SENT AND ALL USES OF THE PURCHASE CONTROL SERVICES THROUGH COMPANY'S IDENTIFICATION CODES WILL BE DEEMED TO BE COMPANY'S INSTRUCTIONS, COMPANY'S ENTRIES, COMPANY'S COMMUNICATIONS AND USES AUTHORIZED BY COMPANY AND WILL BE BINDING UPON COMPANY. COMPANY ASSUMES THE ENTIRE RISK FOR THE FRAUDULENT OR UNAUTHORIZED USE OF ALL IDENTIFICATION CODES. J. Company acknowledges that the Internet may be insecure and that Bank cannot control the operation of the internet. Company accepts all risk associated with use of the internet, including the possibility that data and information may be monitored or read by others. Company agrees that it will not hold Bank or Bank's agents liable for any failures, acts, or omissions of any third party information system operator, including but not limited to, unauthorized access to, alteration, theft, or destruction of information and data. Company agrees to employ a commercially reasonable security technology for transmitting the check images and deposit data to Bank. In the event of a change in the commercially reasonable standard as a result of technological advancements. Company agrees to utilize such security technology which will satisfy such then commercially reasonably standard. Company agrees that Bank is not responsible if Company's computer system. Company's Internal controls or other operating software causes interaction between the parties to operate poorly or slowly. Company agrees to audit its security practices and otherwise comply with Bank's rules pertaining to internet security as may be provided to Company from time to time. Company acknowledges and agrees that such rules may be modified by Bank, such modifications to be effective upon the giving of notice thereof by Bank to Company. Company agrees that its email system will not block emails from Bank's domain and that Company is fully responsible if its email system blocks emails from Bank's domain. Company must take preventative action to scan all files for viruses. 4. Service Fee. In consideration of Bank's provision of Purchase Control Services to Company, Company agrees to pay the following service fees in connection with the Purchase Control Services (as well as other fees or expenses recognized herein). 1 Service Fees | □ Purchase Control - On Demand: ability to create ad-hoc Virtual Card Numbers via a secure online portal (one at a time)No fees □ Purchase Control - Batch: ability to automate the creation of multiple Virtual Card Numbers via a batch file (ePayables) o Monthly Maintenance* o Implementation Fee* $185 $1500 D Purchase Control - Business Travel: ability to create ad-hoc Virtual Card Numbers specific to business travel (Conferma) 0 Monthly Maintenance* o Implementation Fee* $185 $1500 *AII fees are waived if annual Purchase Control Services volume is a $1.000.000 or overall annual Commercial Card program volume is a $5,000,000). othenvise these fees will be deducted from annual rebates. Implementation Fee will be assessed if participation is discontinued before the end of the first program year. 5. No Warranty; Disclaimer. COMPANY ACKNOWLEDGES THAT THERE ARE NO WARRANTIES. EXPRESS OR IMPLIED, AS TO THE VALUE, CONDITION, DESIGN OR FUNCTIONING OF THE PURCHASE CONTROL SERVICES, THE USE, MERCHANTABILITY. FITNESS FOR ANY PURPOSE, INCLUDING THE IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, OF ANY SYSTEM, SOFTWARE, LICENSED SOFTWARE OR OTHER RIGHTS TRANSFERRED HEREIN, FREEDOM FROM INFRINGEMENT OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER WITH RESPECT TO THE PURCHASE CONTROL Commercial Card Agreement - Corporate Liability with Purchase Control 2019 (editable)19/20 BANKx^H^tWEST BNP PARIBAS SERVICES OR OTHER RIGHTS TRANSFERRED HEREIN. IN THIS REGARD, COMPANY ACKNOWLEDGES THAT BANK WILL NOT BE LIABLE TO COMPANY FOR AN INCIDENTAL, INDIRECT, SPECIAL. OR CONSEQUENTIAL DAMAGES, LIABILITY, LOSS OR DAMAGE CAUSED OR ALLEGED TO HAVE BEEN CAUSED BY THE USE OR INABILITY TO USE THE PURCHASE CONTROL SERVICES, OR OTHER RIGHTS TRANSFERRED HEREIN. 6. Bank's Agents. In the event the Purchase Control Services are dependent on Bank's ability to obtain or provide access to third party networks, distribution systems and websites {their terms apply), the parties agree that if the network or system is unavailable or in the event Bank determines, in Bank's discretion, that Bank is unable to continue providing third party network or system access, Bank may discontinue the Purchase Control Services or may provide the Purchase Control Services through an alternate third party network or system. In any event, Bank has no liability for the unavailability of the third party network or system, 7. Proprietary Information. Company acknowledges that all User Materials, any software, licensed software or systems used in providing the Purchase Control Services and all information relating thereto, either are Bank's proprietary properties or properties which Bank is authorized to sub-license and have great commercial value and further are considered Confidential Information. Company acknowledges that it acquires no property or proprietary rights in the User Materials, software system, or licensed software as a result of Company's use of the Purchase Control Services. Company agrees to protect the confidentiality of these materials. Company agrees that It will not distribute, alter, recompile, disassemble, reverse engineer or make, publish or distribute any derivative work from the software system or licensed software, nor shall Company obscure, alter or remove any copyright, trademark, service mark, patent notice or other proprietary notice that is placed on User Materials, software or licensed software. Company agrees to destroy, delete or return to Bank any User Materials, software or licensed software provided to Company upon termination of the Purchase Control Services. 8. Training. Bank will provide Company with Bank's standard User Materials for the Purchase Control Services and features set forth in Section 1. These User Materials contain instructions for using the Purchase Control Services. Bank will provide training to Company's Card Program Administrator(s) on Purchase Control Services in frequency and scope as determined reasonable by Bank. Any specialized, customized or individualized training for Purchase Control Services for Company's Employees may be requested in accordance with special arrangements and subject to such fees and charges as the parties may mutually agree, 9. Company's Agents. Company assumes sole responsibility for any actions performed on Company's behalf by Company's Employees, agents or contractors. Company agrees that Bank has no duty to monitor, detect or report any errors, omissions, or unlawful activities by Company's agents or contractors. Company agrees that Bank may rely on instructions, data, or any documentation provided to Bank by Company's designated agents or contractors. 10. Protected Health Information Restriction Company shall not include any Protected Health Information data in the custom cost allocation fields. 11. Indemnification and Hold Harmless. In addition to any indemnification obligations in the Agreement, Company shall indemnify, defend, and hold Bank harmless from any loss, damage, liability, or expense sustained, including attorney's fees and expenses of litigation, arising or resulting from Company's use of the Purchase Control Services. Commercial Card Agreement - Corporate Utility with Purchase Control 2019 (editable) 20/20 V New Application-Government/Institutional Company Information ¨ DBA Name: Contact Name: ¨ DBA Address Type:¨ DBAAddressI (ivoPOBo>0 DBA Address 2: ¨ City:¨ State ¨ DBA Phone #; ♦Zip Code: DBA Fax #: Date Founded:Mobile Phone#: ♦ Email Address: CIP Exemption: Other Address (tPoteFEHEtmHANabove} □ Mailing □ Shipping □ See ALSO Special instructions (uorb thm one option may be selected) Location Name:Phone #: Contact:Fax#: Address;City:1 State: | Zip Code: Statements/ Retrievals /Chargebacks Statements: □ DBA or □ Mailing or □ 1^-9 I Auto Send: E3 Yes □ No (Chain companies only-MUST include CHAIN SET UP form) Retrievals: Mail To: □ DBA □ Mailing or Fax To: □ DBA □ Mailing or Euaii To:OR □ Online Case Management (OCM) Chargebacks: Mail To: □ DBA □ Mailing aac Fax To: □ DBA □ Mailing or Emajl To:OR □ Online Case Management (OCM) CwTACT Information (Au-moRtzEp Rep) ♦ □ Officer □ Manager □ Authorized Representative □Other: ♦ First Name: ♦ Title: MN:♦ Last Name: ♦ US Person: Contact Address (No PC BOX):♦Address Type: City:♦State:♦Zip Code: ♦DOB Contact Phone #: Individual ID Exemption Class: GOVERNMENT □ FEDERAL □ State □ Local (political subdivision of a us state) Other Company Information ♦ Average Sale Amount: S □ Card Present 100%Omni Commerce (must total 100%) ♦ High Sale Amount: S □ Card Not Present 100%Card Present % ♦ Number of High Sales Transactions annually:□ Internet 100%Card Not Present* % ♦ Total MONTHLY Visa/MC/AMEX/DISC/UnionPay Sales: $□ OMNI Commerce Internet * % ♦ Annual Total Revenue: (Cash, Check, Caro)$♦Internet : product website: ♦ Industry Type: ♦ Description of product/services offered:♦Internet: "Contact us* email: Special Program MCC Only:'Customer Service Phone tt and Previous Processor Required below When does the customer receive t>« raooucT or service? If not same day. # of Days (include shipping timf framf) ♦Customer Service Phone #: ♦Previous Processor: If seasonal, please check months closed below. (Customer must contact Customer Sfrvicf to npACTn/ATFANnffPArTivATAarHnnuT) □ January □ February □ March □ April □ May □ July □ August □ September □ October □ November □ June □ December Bank Account ccheckimgaccouivts only) ♦ Deposit Bank Name :♦ aba/Routing#♦ DOA Account #: Billing/Chargeback Bank Name different)aba/Routing #:DDA Account#: Chargeback Bank Name (if different than billing):ABA/RouTiNG #:DDA Account #: □ FASTTRACK funding MONTHLY FEE $Tape ID (opt): USA-GOV-ELV-1018 Card Acceptance (please check e<cH card you wish to acceptj □ ALLVtSA/MftSTERCARD/AMEXAjNIONPAY/ Discover Cards (Jcb, di, pay pal payment device) □ Visa Credit □ Visa DEBft □ MC Credit □ MC Debit □ Discover(JCB.Di.PAvPALPuvuEWTDtvicf) □ UnkjnPay □ Amex Pricing Category □ Retail □ Restaurant □ Lodging □ Supermarket □ MO/TO/Internet □ aru □ Omni Commerce (T«R0&EICP only) Pricing Information Fees Pricing Program: If-IXED OHLY) visa/MasterCard/UnionPav/ Discover Cards American Express Opt Blue Application $100 Rate'Per Item*Rate Per Item iNSTALLATtONrr RAINING $100 Tiered | Qualified %$%$Reporting & Support Package $12.99 Mid Qualified %$%$Monthly Minimum $35 Non Qualified %$%$CHARGEBACK (PIR OCCURRENCE)$25 Opt. □ Check Card □ Sp RMKT □ ops/Small Tkt Return Item/NSF (per occurrence)$20 %s Statement: □ Electronic or □ Paper Monthly Statement Maiung (PLPE R ST»Tll»ENTS ONI Yl $10 Opt Rewards %$ Opt. Commercial Card %$Rush Shipment $ In TERCHANGE PLUS %$%$Verizon Data Plan (per oev«): i!*B«o«n.)$ Enhanced ICPlus 1 Check Card Qualified %$Verizon Data Plan Overage (per mb)$ Qualified %$%$Other:$ Rewards Qualified %$Authorizations Mid Qualified %$%$Visa (perauth)$Voice - AR U (per auth)$0.85 Commercial Non Qualified %$MasterCard (per autm)$Voice Operator (pctauth)$0.85 Non Qualified %$%$Discover (perautn)$Voice * AVS (per auth)$0.85 Fl XED - PRICING PGM:%$%$UNIONPAY (perauth)$ Voice Bank Ref (per auth)$0.85■Ryt7CS4«n»ALL Cmo AccEPTANce rvpE] klecyeo. All CMoBKtvAsssastttMrt tnj. aePAasB> imouoMArcosT. **P4 yPAL ACC&TAHCt AND HATES AJSBAl^ OH CAHD /HttSEHT TnAHSACTIOHS OKAY.AMEX Opt Blue (per auth)$ PCI Security Program/Safe-t Package AMEX PS (TPSP)(perau™)$Dial Communication (peraltth)$0,024 Security Program ►PCI $7 PIN Debit (AU0afrNETtKMKIS«IMLLS£PASSarNR0U«<AreO11) Solution Package PIN DESrr Monthly fee $ ► (PjrMoktx Plus tmes. if APPLICABLE)$IC Plus (perauth)$ ICPiMS/EHH ICPLUS M0Nr'lCPLS/AtJJM'ASSOGI.(T!eiiED/0lAPeHEHTIAL MOHT'lCDIF/Aum'ASSOC) Other Card Types Existing AMEX SE# [10 D.'GITS)PerAltth: S EBT SEU (7 DIGITS)Per Auth: S American Express PS (TPSP) □ Customer is eligible for AMEX TPSP and accepts □ Customer is eligible for AMEX TPSP but declines acceptance Industry Type: Pricing Information for Amex PS (TPSP) Tierd Rate Per Item Enhanced ICPlus Rate Kr Item Qualified %$Qualified %S Mid Qualified %$Mid Qualified %$ Non Qualified %%Non Quaufieo %$ Interchange Plus %i USA-GOV-ELV-1018 Point of Sale (Equipment or Software) i Network. □ Elavon □ Other 1 [_| A Third Party iNTEGFtATOR will BE USED FOR IMPLEMENTATION' VAR Service Provider (Hosted):1 VAR (Distributed): Vendor: Product- Version- Qty POS Description Item Code no TYPE 0mm CMl' Terminal ENCRYPT OniiA Reprog Fee Per unit Purchasf/Sftip Price Per Unit Lf< Term Monthly kSE** Monthly Rate Son Annual Fee Per Unit WARE/WlRELI Monthly FEE ss PerAltth fee □□$$$$$$ □□$$$$$$ □□$$$$s s □u $$s $$$ n u $$$s $$ □u $$s $$$ Etmfon Mtfn&v hav9 no roipontjtdity fv antf $r,9t 'jsk io Irsbility to Con^pary )n nnnectan witti any har<fwara > sofSrva 0/ any ratataC COfnpany uo^ a Of act a^raatnent (tneJuding any aafa watranty or eod-owf Acense ADDmoNAL POS Services: Description Setup fee Annual Fee Monthly Fee $$$$ $$$$ I Retail (Auto Close Default) □ Restaurant (Quick Close OEFAtA-T) □ Cato Not Present (Auto Close Default) H Quick Close Tip Function (Default) □ Quick Close □ Store AND FoRWAfio □ No Signature □ Contactless No Signature) Q F Q Tine Dining ab Function □ Lodging {Quick Close Default) □ Quick Stay Custom Prompts: O Terminal Auto Close {Rtl, MOTO) Time Zone□ NO Tip (Rest) □ NO SERVER PROMPT (Rest) □ Clerk Prompt (Rtl)□ Cash Back Pin Debft (Rtl): $ Q Tip Function Waiter (Rtl) Communication Method (IP Default): □ Dial | Training (Default g Training required): □ No Training I PHOf« Information: Access#. !»•«) D Custom Footer: O Tip Function Cashier (Rtl) ^ I understand that I am entenng into a -month commercial equipment lease for credit-card processing equipment I understand this is a NON-CANCELLABLEcommercial equipment lease and that I will be required to make monthly payments of $ under mis lease for the entire -month term, regardless of anyrepresentations made by the Sales Representative. Under a -monm term with a monthly payments of $ , I understand the approximate total cost of the equipment lease to be S I also realize that I will have to pay applicable sales tax every month and, If I do not provide evidence of insurance, I will be charged anadditional $4.95morithly to cover equipment. I understand the equipment lease may be more expensive than purchasing the same equipment outnght, and that I have had anopportunity to research the cost to purchase the same equipment outright. As an altemative to a lease. I understand I may purchase the equipment outright at the time of the leaseapplication for the amount of $ Finally, I understand that I will be personally responsible for making payments under this lease and that any failure to pay all amounts when due may result in additional charges, potential damage to my credit rating, and/or legal action against me to collecl both past and future payments owed under the lease. The end if lease residual value is $ plus taxes if applicable. ^mpany nereby aulhonzes Eiavon, through its Ladco Leasing division (■Lessor'), to automatically withdraw Company s monihly lease payments and any amounts, Including any and all taxes or ottier charges,wed in accordance with the lease, as apfXicSile. by initiating debit entnes to Company's account at the fi narwal insbiution ("Bank") indicated fiereon or such other finanaai insbtulion used by Company fromlime to lime. A lease payment (whether paid by debit or other means) that is not nonoted oy Bank for any reason will be sutifect to a returrted item service fee imposed by Lessor Upon compleiion of the lease term, this authonzation shall lemain m effect until Lessor has received wntten notice from Company of its terrmnabon >Bank Name:►aba/Routing FDDA Account#: ELECTKONfC Check Service ►ANNUAL check volume. $►Average check amount: $►Maximum check amount: $►ECS Monthly Minimum: $ ECS - Paper Check Conversion PROCESSIFKS OPTtONS: □ POP (PCS image) □ arc (PCS Image) □ boc □ Conversion with Guarantee Guarantee Rate:% Per Transaction: $ □ Conversion w/Verification Qr □ Conversion Only Per Transaction: $ Collections Per Return Transaction: $O ACH Check > Check NOT Present (CNP) Processing Options: □ Concurrent Enrollment (includes: WEB, TEL, PPD and CCD)« XNP Individual Enrollment - choose one (one per MID) □ WEB-Internet Initiated □ PPD-Prearranged Payment □ TEL/IVR-Telephone Initiated □ CCD - Corporate to Corporate Converge setups wiu. be Concurrently enrolled in all product types = XNP □ ACN-ECHECKWlTHVERIFICATtON Per Transaction: $0 Per Return TRANSAcnoN: $ □ ACH-Echeck Conversion Only Per Transaction: $ Per Return Transaction: $ Other ECS Check Conversion Service Requests □ Prompts for Driver's License (If not selected, information must be obtained on check for Guarantee Service) □ Enquire Reporting Access: #ofUsers: @$29,95 each Per □ NSF Service Fee Processing @ $2 per NSF item. Not applicable for Guarwjtee Service NSF Service Fee Amount: □ Max Allowed or □ Specified Service Fee Amount $; ACH Echeck nsf Service Fee Amount: □ S15 (default) or □ Specired Service Fee Amount $_ Specify NSF resubmission attempts: Do or Qi (2 is the default) _ (State Max is default) ACH - Echeck Ques'honnaire 1. What tvpes of payments will you accept using ACH-Ecmeck (e.g., utiltty bill payments, mont«.y rent payments, monthly billing for general s^vices)? 2. Will you obtain authorization from your OJSTOMERS prior to ACCeniNG an ACH entry in accordance with the ECS OPERATING GUIDE (E.G.. orally via telephone for teUivr, or in wrhing FOR PPO)? □ Yes □ No I. Will you verify and authenticate THE IMNhTY OF YOUR CUSTOMERS IN ACCORDANCE WITH the ECS OPERATING GUIDE PRIOR TO INITIATING ACH ENTRIES FOR THOSE CUSTOMERS (E.G., BYOBTAJMNGA CUSTOMER'SNAME, ADDFtESS AND TELEPHONE NUMBER OR USING A database TO VERIFY the ACCURACY OF THE INFORMATION PROVIDED BY CUSTOWR)? □ YES □ NO n. Wia YOU OFFER ACH-ECHECK TO EXJSTING OR NEW CUSTOMERS? □ EXISTING □ NEW 5. Will you maintain and disclose to your customers procedures for CANCELUNG an AUTHORIZATION? □ Yes □ No 6. WLL YOU ensure that INFOFMATION REGAFtOiNG EACH TRANSACTION AUTHORIZATION ENTERED BY A CUSTOMER AND/OR YOUR SERVICE REPRESENTAHVE IS ACCURATE AND NOT A DUPUCA^ TRANSACTION? □ Yes □ No USA-GOV-ELV-1018 nwronMiv OR DMCPwithOCM k Monthly Fee $ FSEtUpFeeS ►# USERS ►Set Up Type (CHECK ONE) □MID □ CRN □ ACS ►MonthuyFee$ ►SetUpFee$►Remote ID ftTHFR VAS 1 nCC Conversion Rate; %nr.C Rebate; % □ Dynamic Currency Conversion (DCC).Annual DCC Reqistration Fee: $DCC Exchange Rate Source; US Bank Convenience Fee and Government/Public Institution Service Fees (GPISF) Convenience Fee Services Programs Convenience Fee Funchno Model (check one): □ Company Managed Convenience Fee' □ Elavon Managed Convenience Fee' Payment Transaction Types □ Credit (check au that apply): □ Visa □MasterCard □ Discover □ American Express PS □ Signature Debit (check nx that apply): □ Visa □ MasterCard □ Discover □ pin-Based Debit □ ACH (VIA Electronic Check Services) Elavon Product Suppmting Eiavon-Managed CoNVENiENce Fee Assessment to be Used BY Company (check all that apply): □ Company Prowhetary Solution or Service Phowoer □ Other: Convenience Fee Pmcino: Convenience Flat Fee Amount: % {^HVENi»4CE Fee %: (MasterCard. Discover & ACH Programs only) Implementation Fee (if appucasle): ( (CHECK ALLTHftT APPLY. BUT ONLY (F COMPANY ELECTS GPISF ASSESSMENTS: □ Company-Managed Service Fes' □ Company-Managed WITH Elavon PCS DEvices/SEHvicE Fee Terminals* □ Elavon-Managed Service Fee^ Card Acceptance (check all that apply): □ Point of Sale D Internet □ IVR □ Other: GPISF SERvices Programs (check all that apply, but only if Company pi fcts GPfSF assessments: □ MasterCard Government and Education Payment Program □ Visa Government and Education Payment Program □ American Express Government and Education Payment Program □ Discover Government and Education Payment Program Transaction Types: □ Federal Income Tax □ Government Fees □ State Income Tax □ Real Estate Property Tax □ Business Tax □ Other Tax □ TumoN □ Other Educahon Expenses Payment Types for GPISF Assessment Inot all payment types are ax»PORTEO for all programsVcmeck all that apply, but only if Company elects GPISF assessment): □ 0»EDIT-(CHECKWX THAT APPLY): □ Visa- Eligible MCCs: 8211.8220.8244,8249,9211,9222,9311.9399 □ MasterCard - Eugible MCCs: 8211.8220,8299,9211,9222,9223,9311,9399,9402 □ Discover (available * Elavon-acouired) □ Amerjcw Express PS - Eligible MCCs: 8211.8220.8244,8249.9211.9311.9399,9222 □ Signature Debit - (check all that ppply) □ Visa - Eugible MCCs: 0211,8220,8244,8249,9211.9222,9311.9399 □ MasterCard- Eugible MCCs: 8211,8220,8299,9211.9222,9223.9311,9399,9402 □ Discover (available if Elavon-acouired) □ ACH (via Eiectronic Check Services) Elavon Product Supporting GPISF Assessment to be Used by Coijany (check all that apply): □ Service Fee terminal □ Company Proprietary Solution or Service Provider □ Safe-T Services (AOUTtOMM. enroument form reoureo; □ Other: GPISF PreciNo: Credit Card Service Fee; % or $ Signature Destt Service Fee: % or $ ACH (VIA Electronic Check Services): S Implemntation Fee (if appucable): $ ' 'Company-Managed' Convenience Fee means that Company establishes the amount of the Convenience Fee (suk^ect to the requirements of the Agreement and applicable Payment Network Regulations) and retains the Convenience Fee. Company pays Elavon ttie per transaction fees as set forth in this application to the Agreement for all Convenience Fee Transactions. ''Elavon- Managed' Convenience Fee means that Elavon establishes the amount of the Convenience Fee and retains the Convenience Fee in lieu of Company's obligation to pay Elavon the per transaction fees as set forth in 8ils application to the Agreement for Convenience Fee Transactions. The Convenience Fee is still charged by Company and included in the overall transaction amount charged to the Cardholder. ' "Company-Managed" Service Fee means that Company estatilishes the amount of the GPISF, programs its POS Devices to assess the GPISF, and retains the GPISF (subject to the requirements of the Agreement and applicable Payment Network Regulations). Company pays Elavon the per transaction fees as set fortii in this api^ication for all GPISF Transactions. *'Company-Managed with Elavon POS Devices/Service Fee Terminals' means that Elavon programs the POS Devices to assess the GPISF established by Company and Company retains the GPiSF Company pays Elavon the per tiansaction fees as set forth in this application to the Agreement for all GPISF Transactions. '"Elavon-Managed" Service Fee means that Elavon establishes the amount of the GPiSF, and Elavon charges and retains the GPISF in lieu of Company's obligation to pay Elavon the per transaction fees and Safe-T Services fees (if Safe-T is chosen above) for GPiSF Transactions. USA-GOV-ELV-1018 Substitute Form w-9 D Government □ Non-Profit Charitable or Social (include documents that support Tax Exempt Status) □ Other ♦ Legal Business Name* ♦ Legal Business Address (NO PO BOX):>TIN (Employer ID#): 1 ♦City ♦ State:1 eZlPCODE:no — ►TIN (Social Security #): Company Repres^tatons ^Certifications By signing Pelow, the applicant company ("Company-) and its rBpre8enlatjve(s) represent and wairant to Elavon Inc CBavon- or -memDef as i' Highway, Knornlle TN 37920 (collecLvely. -we' or "us") that (i) all informatton provided m this «>mpany application (•ComUny^pL^^"^ andfinancial condition of Company, and (ii) the persons siyiirtg this Company Application are duty authonzed to tund Company to all provisions of thisCompany Application and the Agreement The signature by an authonzed representative of Convany on the Company Application, or the transmission of a Transaction Receipt or other evidence of aCompany s acceptance of and agreement to the terms and conditions contained in the Agreement including, without limitation, this Company Application the Terms of Service( TOS ). the Addendum to the Tenro of Service for Govemmentflnstitutional Companies attached hereto, and the Operatir^ Guide incorporated herein by this reference and located at our website atnttps mer^yiponneci cofrvi;wRWeo/paffTQ5 ENG pdf and nttps /Avww merchaniconnect com/CWRWeb/DqfrQPERATiNG GLiiDE Eno odt respectn^iy If you are accepting electronic oavmanlstf^h Trans^ Pay yw dso agrw to the Terms and Conditions set out under the Resources tab at www elavon corrVbansendDav and as subsequently amended m the Operatin^Guide in thrTransend^y S^t^ Company does not have access to view the TOS or C^>eraang Guide at our website please contact our customer service center Notwithstanding any such norvrecelDi of the TOS orGuide Company agrws to conviy with the Agreement, and all ^(Xicable laws, rules, and regulations including the rules and regiJations of the Payment Networks, and understands that failure tocomply will resutl in termination of processing services Capitalized terms shall, unless otherwise defined in this Company Application, have the same meaning ascribed to them m the TOS and Operating Gisde an Authon^on Code via electronic termna or simlar device before completing any transaction Company understands that an ALTTHORIZATION CODE IS NOT A GUARANTEE OFACCEPTANCE OR PAYMENT OF A TRANSACTION. RECEIPT OF AN AUTHORIZATION CODE DOES NOT MEAN THAT COMPANY WILL NOT RECEIVE A CHARGEBACK FOR THAT TRANSACTION Company and its r^resentative(s) authorize us {Xior to our acceptance of this Company Appilcation and from time to time thereafter, to mvesngate the business Nstory and backyouvJ of Comoanv and toobtain credit reports or other back^eund irtvesiigation reports on Company that we consider necessary to review the acceptance and ccnttnuation of this Company Application Corrmany also authonzes anv person or credit reporting agency to compile information to answer tfwse creiSi inquines and to tumish thai irtfofTTiaiion to us r y IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT To help the government fi ght the funding of terrorism and money laundering activifies Federal law requires all yST*^^ <0 oWa". venfy. and record information that identifies each person who opens an account This means we will ask for certain inforrrBtion and identitying documents to allow us to identity Tins Company Application may be signed m one or more counterparts, each of which shall constitute an ongnal and all of which, taken together, shall constitute one and the same CompanyApphcatton Delivery of executed counterparts of this Company Appiicatior may be accomplished by a facsinvie transmission, and a signed facsimile or copy of this Company Application shs^i constitute a Signed ongna All companies must comply with the requirements of the Payment Card Industry Data Secunty Standards CPCI DSS") Elavon requires Level 4 convanies (determined based on Transaction voluine) to validatePCI DSS compliance on an annual basis, with intial validation to occur no later than ninety (90) days after account approval Any company that has not validated PCI DSS corr^iance within ninety (90) days ofaccount approval, or in sttf-sequeni years on or before the anniversary date of account approval, will be chwged a monthly non-conpliance fee of S69 99 until Elavon is prodded with vaiidaowi of PCi DSScompliance Company may be digWe for Data Breach Financial Assistance Coverage folfowing account ap^val and PCl DSS corrpliance validatiCKi See the TC I Conriliahce Program Overview tor assistance details and conditions Amencan Express Acceptance Program (Acceptance Prooraml if Company has elected to accept Amencan Express® Transactions (as indicated in the Card Acceptance section of this Company Appilcation)in adctition to all other terms of this Agreement Company agrees to the Acceptance Program terms of the TOS By signing below or by accepting a Transaction initiated with an Amencan Eiqiress® Payment '"device. Company expressly authonzes Elavon to submit Amencan Express® Transactions to, and to receive settlemeni funds from, Amencan Express on Company's behatf Corrpany further authonzes Elavon0 provide Company's contact information to Amencan Express, and Con^ny agrees that Amencan Express may use and share such contact information for its business purposes and as permitted byipplicable Laws, including to communicate with Company regarding products, services, and resources available to Company's business. Amencan Express's use of the email address and mobile phone numberMPvided above is subject to Ifie consent to such use as Indicated In Section 1 ot this Company Application Consent to Amencan Express's use of contact information for such commumcasons may bewithdrawn at any time by contacting oix customer service center Even if consent is withdrawn. Corr^ny may still receive messages related to import^it information about Compwiy's account from AmencanExpress Company or Elavon may termmaie Company's acceptance of Amencan Express® Payment Devices at any nme. with or without cause, without affeaing Company s nghts and obligations pursuant tothe remainder of this Agreement Company acknowledges that, if at any time Company Is no longer qualified to partapate m the Acceptance Pnjgram. Company may be enrolled m the standard AmencanExpress® card acceptance program, which may have different terms and conditions than the Acceptance Program, and Company's acceptance of Amencan Express® Payrr»ni Devices pursuant to thisAgreement will be termlnaied Company acknowfedges that Amencan Express is an intended third-party beneficiary of this Agreement, solely with re spect to the terms and cooditons ^icable to Company's acceptance of Amencan Express® Payment Devices, and that Amencan Express has the nghi to enforce such terms and conditions directly aganst Company ♦ Signature: X ♦ Printed Name:♦ Title:♦ Date: Signature: X i Printed Name:Title:Date: SUbMil (bU BY (Internal use Unly) 1 To the best of my knowledge. I certify tl"ial the information provided in this Company Application was provided by the Company and is true, complete and accurate I further certify that the signatures were 11 provided by the Company's authonzed representative. | Sales Rep SiGN.ATUiu:: X ♦ Printed Name:♦ Rep id *:♦ Date: ♦ Rep Phone #:♦ Rep Email: 'USA-GOV-ELV-1018 USA-GOV-ELV.1018 ADDENDUM TO THE TERMS OF SERVICE FOR GOVERNMENT/INSTITUTIONAL COMPANIES The following provisions hereby replace the like-numbered provisions of the Terms of Service ("TOS") or are hereby inserted or deleted from the TOS, as indicated, for Companies operating under the Agreement. Capitalized terms used and not otherwise defined in this Addendum shall have the meanings ascribed to them in the Agreement or the Operating Guide. 1) Section 4.1 Security Interests is deleted. 2) Section 5.2(a) is revised to add the following: "(iv) Company may terminate the Agreement on 60 days' prior written notice to Elavon if sufficient legislative appropriation is not available." 3) Section 5.2(b) is deleted and replaced with the following: "By Elavon. Elavon may terminate the Agreement immediately in writing if any of the following occur: (i) A material adverse change in Company's financial condition; (ii) The commencement of a Bankruptcy Proceeding by or against Company; (iii) Any representation by Company is false or misleading in any material respect as of the date made, or becomes false or misleading in any material respect at any time during the Term; (iv) Any Payment Network or application of Payment Network Regulations requires Elavon to terminate the Agreement or cease processing Transactions for Company; (v) Assignment of the Agreement or change of control of Company without Elavon's written consent; (vi) The levy, garnishment or attachment of the DDA, the Reserve Account, or any of Company's property in Elavon's possession; (vii)Any change, not approved by Elavon, that constitutes a material change in the types of goods or services Company sells or in the methods by which Company sells them, or any change that results in Company's violation of Elavon's underwriting policy; or (viii) If, after Elavon provides 30 days' written notice, Company has either (1) Chargebacks or Retrieval Requests in excess of 1% of the gross dollar amount of Company's Transactions or returns in excess of 2.5% of the gross dollar amount of Company's Transactions, or (2) the acceptance of Card Not Present or Convenience Fee Transactions without proper disclosure to Elavon in the Agreement (including in the Company Application) or an amendment to the Agreement. 4) Section lO.lAudit is revised to read as follows: "Audit. If Elavon or Member reasonably suspects that they are subject to a financial or reputational risk due to Company's actions or omissions, Company authorizes Elavon and its agents to perform an audit or inspection of Company's operations and records to confirm Company's compliance with the Agreement upon reasonable advance notice, during normal business hours, and at Elavon's expense (unless Elavon reasonably determines based on such audit that Company is not in compliance with the Agreement, in which case Company will bear the cost). Company will obtain and submit a copy of an audit from a third party acceptable to Elavon of the financial, physical security, information security, and operational facets of Company's business at its expense when requested by Elavon. Further, Company acknowledges and agrees that the Payment Networks have the right to audit Company's business to confirm compliance with the Payment Network Regulations. Company will maintain complete and accurate records of its performance under the Agreement. Company will execute and deliver to Elavon all documents Elavon reasonably deems necessary to verify Company's compliance with Section 8.1." 5) Section 10.2(b) Financial Information is revised as follows: "Financial Information. At Elavon's request, Company will provide Elavon audited financial statements prepared by an independent certified public accountant selected by Company, or if Company is audited by a governmental authority, then Company will provide financial statements from such governmental authority. Within 120 days after the end of each fiscal year (or in the case of a government entity, when available), Company will furnish Elavon, as requested, a financial statement of profit and loss for the fiscal year and a balance sheet as of the end of the fiscal year, each audited as provided above. Company will also provide Elavon such interim financial statements and other information as Elavon may request from time to time." 6) Section 13 Indemnification is deleted and replaced with the following four sections: "13(a). Company Responsibilities. As between Company and Elavon, Company will be responsible for, and at its own expense, defend itself against any suits, claims, losses, demands or damages arising out of (i) any sale or provision of goods or services resulting in a Transaction processed under the Agreement; (ii) Company's breach of the Agreement; (iii) all use of any user ID and password other than by Elavon or Elavon's third-party contractors; (iv) Company's or its Service Providers' gross negligence or willful misconduct; (v) Company's or its Service Providers' violation of Laws or 6 USA-GOV-ELV-1018 Payment Network Regulations; or (vi) any personal injury or real or tangible personal prdperty damage to the extent caused by Company or its Service Providers. Company will not make any claims against Elavon for any liabilities, claims losses, costs, expenses and demands of any kind or nature, arising out of or in connection with any of the foregoing suits claims, losses, demands or damages. ' 13(b). Elavon Responsibilities. In addition to Elavon's obligations in Section 13(c), Elavon will be responsible for and will at its own expense defend itself against any suits, claims, losses, demands or damages arising out of (i) Elavon's breach of the Agreement; (ii) Elavon's or its third party contractors' gross negligence or willful misconduct; (iii) Elavon's or Its third party contractors' violation of applicable Laws or Payment Network Regulations; (iv) Elavon's alleged infringement or other violation of a U.S. or Canada patent, copyright or trademark of a third party by the Services in the form delivered or Company's use thereof; or (v) any personal injury or real or tangible personal property damage to the extent caused by Elavon or its third party contractors. 13(c). Infringement Claims. (i) Elavon will defend Company and its employees, officers, and agents in connection with claims, actions, demands or proceedings (made or threatened) brought by a third party, and will pay the final award of damages assessed against Company, its employees, officers or agents in a final judgment by a court of competent jurisdiction, including awarded costs, or any amount in settlement or compromise authorized by Elavon in writing, arising out of Elavon's alleged infringement or other violation of a U.S. or Canada patent, copyright or trademark of a third party by the Services (but not Equipment) in the form delivered or Company's use thereof (an "Infnngement Claim"L (ii) If any part of the Services or the use of the Services becomes, or in Elavon's opinion is likely to become, the subject of an Infringement Claim, and as a result of such Infnngement Claim Company's use of the Services may be enjoined or interfered with, then Elavon will, at its option and expense, either, and in addition to defending Company and paying the final amount of damages as provided for in this section, (1) obtain a license for Company to continue using the alleged infringing component(s) of the Services; (2) modify the alleged infringing component(s) of the Services to avoid the infnngement in a manner that still permits the Services to perform in all material respects in accordance with the Agreement; or (3) replace the alleged infringing component(s) of the Services with compatible, functionally equivalent, and non-infringing component(s). Elavon will use commercially reasonable efforts to accomplish the remedies identified in this section in a manner that minimizes the disruption to Company's business operations. If Elavon is not able to accomplish the above remedies within a commercially reasonable time frame and on commercially reasonable terms, Elavon may terminate the Agreement upon written notice to Company. Upon such termination, Elavon will promptly refund any fees paid for Services not performed as of the date of termination. (iii) Elavon will have no liability for any Infringement Claim to the extent caused by (I) access to or use of the Services other than as specified under the Agreement and the related Documentation, (2) combination or use of the Services with non-Elavon products or services (whether or not provided to Company by Elavon), (3) any hardware, devices, software, services or other resources not provided by Elavon, (4) failure or refusal by Company to install, implement or use any Update or correction provided by Elavon, (5) modification or alteration of the Services by anyone other than Elavon without Elavon's prior written consent, (6) Company's goods or services, or (7) the negligence, gross negligence or willful misconduct of, or breach of the Agreement by, Company. (iv) THIS SECTION 13fc) SETS FORTH THE EXCLUSIVE REMEDY OF COMPANY AND THE SOLE AND COMPLETE LIABILITY OF ELAVON WITH RESPECT TO ANY INFRINGEMENT CLAIMS. 13(d). Procedure. (i) If an Infringement Claim is subject to Elavon's obligations in Section 13(c) of the Agreement, Company will: (1) Provide Elavon prompt notice of the Infringement Claim (provided that any delay in notification will not relieve Elavon of its obligations under this Section nCdl except to the extent that the delay materially impairs its ability to fully defend the Infringement Claim); (2) Subject to Section 13(d)(in. give Elavon the right to exercise exclusive control over the preparation and defense of the Infringement Claim, including appeals, negotiations and any settlement or compromise thereof, provided that Elavon will notify Company in writing of its election regarding the assumption of control of the preparation and defense of such Infringement Claim within 15 days following receipt of Company's written notice of such Infringement Claim, but, in any event, no later than 10 days before the date on which any written response to a complaint, summons, or other legal filing is due; and (3) Provide such assistance in connection with the defense and settlement of the Infringement Claim as Elavon may reasonably request, at Elavon's expense. Elavon will not enter into any settlement that imposes any liability or obligation on Company, or contains any admission or acknowledgement of wrongdoing (whether in tort or otherwise), without Company's prior written consent. (ii) Company may join in the defense, with its own counsel, at its own expense." 7) Section 16 Personal Guaranty is deleted. 8) Section 18.2 Jurisdiction and Venue; Governing Law is deleted. 7 USA-GOV-ELV-1018 9) Section 18.3 Exclusivity is deleted. 10) Section 18.5 Assignability is revised as follows: "Assignability. Company will not assign the Agreement, directly, by operation of law, or by change of control of Company, without Elavon's prior written consent. If Company nevertheless assigns the Agreement without Elavon's consent, the Agreement will be binding on both the assignee and Company. Elavon will not transfer or assign the Agreement without the prior written consent of Company, provided that such consent will not be required for (i) the assignment or delegation to an affiliate of Elavon, or (ii) the assignment or delegation to any Person into or with which Elavon will merge or consolidate, or who may acquire substantially all of Elavon's stock or assets." 11) Section 18.6Arbitration is deleted. 12) Section 18.9 Attorney's Fees and Expenses is deleted. 13) Section 18.12 Amendments is revised as follows: "Amendments. Except as otherwise provided in the Agreement, amendments to the Agreement will be in writing and signed by the parties. Notwithstanding the foregoing, Elavon and Member may amend or modify the Agreement, to the extent such changes are required by or attributable to changes in the Payment Network Regulations or other Laws, upon written notice to Company. Elavon or Member will inform Company of such a change in a periodic statement or other written notice, and such change will become effective at least 30 days after the issuance of the notice. Notwithstanding the previous sentence, changes to fees authorized by the Agreement will be effective upon notice to Company, unless a later effective date is provided. Further, Elavon is entitled to pass through to Company any fee increases imposed upon Elavon by Visa, MasterCard, Discover Network, any other Payment Network, and any other third party including telecommunications vendors." 14) Schedule A, Section 1.8 Title; Quiet Enjoyment is replaced as follows: "Title; Quiet Enjoyment. Lessor will at all times retain title to the Leased Equipment. All documents of title and evidence of delivery will be delivered to Lessor. Lessee hereby authorizes Lessor, at Lessee's expense, to cause the lease or any statement or other instrument in respect to the lease showing the interest of Lessor in the Leased Equipment including Uniform Commercial Code Financing Statements, to be filed or recorded and/or refiled and rerecorded, and grants Lessor the right to execute Lessee's name thereto. Lessee agrees to execute and deliver any statement or instrument requested by Lessor for such purpose, and agrees to pay or reimburse Lessor for any filing, recording or stamp fees or taxes arising fi-om the filing or recording of any such instrument or statement. Lessee will at its expense, protect and defend Lessor's title against all persons claiming against or through Lessee, at all times keep the Leased Equipment free from legal process or encumbrance whatsoever and, will give Lessor immediate notice thereof and will be responsible for any loss caused thereby. Lessee agrees to procure for Lessor, such estoppel certificates, landlord's or mortgagees' waiver or other similar documents as Lessor may reasonably request. Provided Lessee is not in default hereunder. Lessee will quietly use and enjoy the Leased Equipment subject to the terms hereof." 15) Schedule A, Section 1.10 Net Lease; Taxes is replaced as follows: "Net Lease; Taxes. Lessee intends the rental payments hereunder to be net to Lessor, and Lessee agrees to pay any applicable sales, use, excise, personal equipment, stamp, documentary and ad valorem taxes, license and registration fees, assessment, fines, penalties and similar charges imposed on the ownership, possession or use of the Leased Equipment during the term of the lease. Lessee will pay all applicable taxes (except Lessor's federal or state net income taxes) which may be imposed on Lessor or Lessee with respect to the lease payments hereunder or the ownership of the Leased Equipment. Lessee will pay as additional rent, any applicable taxes documented as paid or advanced by Lessor on behalf of Lessee. Lessee agrees that the reimbursement of equipment tax calculation is based on an average tax rate. Unless otherwise agreed to in writing. Lessee will file personal equipment tax returns with respect to the Leased Equipment." 16) Schedule A, Section 1.11 Indemnity is replaced as follows: "Responsibility of Lessor. As between Lessor and Lessee, Lessee will be responsible for, and at its own expense, defend itself against any and all liability, damage or loss, arising out of the ownership, selection, possession, leasing, operation, control, use, condition, maintenance, delivery and return of the Leased Equipment. The obligations herein provided will continue in frill force and effect notwithstanding the termination of the lease." 17) Schedule A, Section 1.16 Remedies is replaced as follows: "Remedies. If an Event of Default will occur. Lessor may, at its option, at any time (i) declare immediately due and payable and recover from Lessee, as liquidated damages for the loss of a bargain and not as a penalty, an amount equal to all accrued and unpaid rental payments and late charges, taxes, and other fees, plus the Loss Amount; provided, however, that if an Event of Default will occur as described in Section 1.15(iv) through (vi) above. Lessor without any notice or action will be deemed to have made such a declaration; (ii) automatically charge the DDA for all money amounts owed; (iii) to the extent permitted by applicable Law, without demand or legal process, enter into the premises where the Leased Equipment may be found and take possession of and remove the Leased Equipment, without liability for such retaking; (iv) Lessor may hold, sell or otherwise dispose of any such Leased Equipment at a private or public sale; or (v) exercise any other remedies available under applicable Law. If Lessor takes possession of the Leased Equipment, Lessor will give Lessee credit for any sums received by Lessor from the sale or rental of the Leased Equipment afrer deduction of the 8 USA-GOV-ELV-1018 expenses of sale or rental and Lessee will remain liable to Lessor for any deficiency. Notwithstanding the foregoing, to the extent any software included with the Leased Equipment is nontransferable or its transfer restricted, Lessee agrees that Lessor and/or the licensor of such software will have no duty to remarket or otherwise mitigate any damages relating to such software. Lessee will also be responsible for all expenses incurred by Lessor in connection with the enforcement of any of Lessor's remedies including all expenses of repossessing, storing, shipping, repairing and selling the Leased Equipment. Lessor and Lessee acknowledge the difficulty in establishing a value for the imexpired lease term and, owing to such difficulty, agree that the provisions of this Section represent an agreed measure of damages and are not to be deemed a forfeiture or penalty. All remedies of Lessor hereunder are cumulative, are in addition to any other remedies provided for by Law, and may, to the extent permitted by Law, be exercised concurrently or separately. The exercise of any one remedy will not be deemed to be an election of such remedy or to preclude the exercise of any other remedy. No failure on the part of the Lessor to exercise and no delay in exercising any right to remedy will operate as a waiver thereof or modify the terms of the lease." 18) Schedule A, Section 1.19 Miscellaneous is replaced as follows: "Miscellaneous. If Lessee fails to pay any rent or other amount required herein to be paid to Lessor within five (5) days of when due. Lessee agrees to pay Lessor, in addition to the payment, a late charge of 15% of "the amount, past due (but at least $7.50) for each late payment. Each month the past due payment remains unpaid, an additional late fee in the amount defined will be assessed. Payments are applied to late fees and service charges first and then to the lease obligation. Amounts will be payable in addition to all amounts payable by Lessee to Lessor as a result of exercise of any of the remedies herein provided. If Lessee requests any services not provided for herein. Lessee agrees to pay an applicable fee for delivery of such services. Lessee will inform Lessor of any change in Lessee's name, address, billing address, telephone numbers, location of the Leased Equipment, or DDA. If Lessee fails to comply with any provision of the lease. Lessor will have the right, but not be obligated, to affect such compliance on behalf of Lessee upon ten (10) days prior written notice to Lessee. In such event, all monies expended by, and all expenses of Lessor in effecting such compliance, will be deemed to be additional rental, and will be paid by Lessee at the time of the next monthly payment of rent. All notices under the lease will be sufficient if given personally or mailed postage prepaid to the party intended at the respective address set forth herein, or at such other address as said party may provide in writing from time to time. The lease inures to the benefit of and is binding upon the personal representatives, successors and assigns of the parties hereto. Time is of the essence of the lease. Lessor and Lessee intend the lease to be a valid and subsisting legal instrument, and agree that no provision of the lease that may be deemed unenforceable will in any way invalidate any other provision or provisions of the lease, all of which will remain in frill force and effect. The lease will be binding when accepted in writing by Lessor and will be governed by the laws of the state where the Leased Equipment is located." 19) Schedule A, Section 1.20 Important Information about Credit Reporting is deleted. 20) Schedule A, Section 2.6 Title; Quiet Enjoyment is replaced as follows: "Title; Quiet Enjoyment. Lessor will at all times retain title to the Leased Equipment. Lessor may at Lessee's expense, cause the lease or any document, statement or other instrument in respect to the lease showing Lessor's interest in the Leased Equipment, including without limitation Personal Property Security Act or Civil Code of Quebec financing statements, to be filed, registered or recorded, or refiled, reregistered and rerecorded, as applicable. Lessee waives the right, where permitted by law, to receive a copy of any financing statement, financing change statement or verification statement. Lessee agrees to execute and deliver any document, statement or instrument requested by Lessor for such purpose, and agrees to reimburse Lessor for any expense arising therefrom. Lessee will at Lessee's expense protect and defend Lessor's title against all persons claiming against or through Lessee, at all times keep the Leased Equipment free fixim legal process or encumbrance whatsoever, and will give Lessor immediate notice thereof and will be responsible for any loss caused thereby. Lessee agrees to procure for and deliver to Lessor, such estoppel certificates, landlord's or mortgagees' waiver or other similar documents as Lessor may request. Provided Lessee is not in default hereunder. Lessee may quietly use and enjoy the Leased Equipment subject to the terms hereof." 21) Schedule A, Section 2.9 Indemnity is replaced as follows: "Responsibility of Lessor. As between Lessor and Lessee, Lessee will be responsible for, and at its own expense, defend itself against any and all liability, damage or loss, arising out of the ownership, selection, possession, leasing, operation, control, use, condition, maintenance, delivery and return of the Leased Equipment. The obligations herein provided will continue in fiill force and effect notwithstanding the termination of the lease." 22) Schedule B, Section 1.5 Personal Guaranty is deleted. 23) Schedule B, Section 1.6 Jurisdiction and Venue; Governing Law is deleted. 24) Schedule B, Section 1.7 Arbitration is deleted. 25) Schedule C, Section 16 is hereby added: "16. Effective March 1, 2020, (i) either Elavon or Company may terminate the ECS services portion of the Agreement at any time upon thirty days' prior written notice to the other party, and (ii) Elavon may, at its option, transition Company to a new program offered by Elavon that provides services similar to the ECS." 9 USA-GOV-ELV-1018 COPY Tab X Financial Statements and Ratings Provide the most recent audited financial statements or annual report for the bank (a reference to electronic availability will suffice). Also include the bank's most current Standard and Poor's, Mood/s, and/or Fitch credit ratings, where available. A current IDC rating should also be provided. The Bank's Annual Financial Statements can also be downloaded here; CREDIT RATINGS As of 9/30/2018 Lor^-Mm Short-tarm Long-tinn Short-tsnn is$u«r issuer deposite deposits MOOOY'S A3 P-1 Aa3 P-1 FTTCH A F1 A+F1 STANOARO A POOR'S A-2 CAPITAL RATIOS A8oraf30/2018 HER I RISK-BASED CAPfTAL RATK) TOTAL RISK-BASED CAPITAL RATIO TIER I LEVERAGE RATIO 12.30% 13.25% 10.01% BANKt^h-eWEST BNP PARIBAS ¨ PAGE 57