CREDIT CARD ISSUANCE CONTRACT We, the undersigned, BANCO CATHAY DE COSTA RICA S.A., the bearer of corporate identification number 3-101-216492, hereinafter called the ISSUER, and, who for the purposes of this contract will be called the CARDHOLDER, have agreed to enter into this CREDIT CARD contract, as the case may be. This contract will be governed by the current commercial standards contained in Costa Rican legislation and the following clauses: 1. CREDIT LIMIT AND USE: The ISSUER is hereby opening a line of credit for the CARDHOLDER in the amount of $5,000.00 in the legal tender of the United States of America. The line of credit may be used by presenting the CATHAY card when purchasing goods and services at any of the merchants affiliated with the brand name designated by the ISSUER that are competent for usage in the country or abroad. 2. USING THE CARD: The CARDHOLDER may make use of the CATHAY credit card to take out cash advances at the automated teller network that the ISSUER determines. The CARDHOLDER hereby submits him or herself to the limits, conditions, charges, and fees that the ISSUER and the affiliated members of the teller network deem to be expedient. As of the time when this contract is signed, these fees amounted to two percent of the dispensed amount when the ATM being used belongs to the ATH network and five percent when the ATM being used belongs to any other ATM network. Likewise, the CARDHOLDER may withdraw cash at the teller window at any BANCO CATHAY branch, bearing a fee of two percent of the requested amount 3. AUTOMATIC CHARGES: The CARDHOLDER has the right to ask the ISSUER to add automatic charges to this contract. Automatic charges are booked without using the physical card and are understood to be implemented when they have been expressly requested by the CARDHOLDER. This same requirement applies to taking out insurance policies for theft and assistance services. 4. THE MECHANICS OF USING THE CARD: Each time the CARDHOLDER decides to use his or her CATHAY credit card, the physical card must be presented to the merchant s representative, along with the CARDHOLDER s personal identification. At that time a voucher must be signed that is used as a document to evidence the transaction. Both requirements will be applicable regardless of whether what is being purchased is a good or service.
5. CONTRACT EFFECTIVE PERIOD: This contract will be effective for two years after the date that the credit card is issued and approved. That period may be renewed for successive equivalent periods. To renew the card, the CARDHOLDER must be current with his or her obligations to the ISSUER. Likewise, the ISSUER will have the power to use other additional criteria to approve the card renewal. If the contractual tie between the parties is extinguished, whatever the cause may be, it is the CARDHOLDER s responsibility to return the main and any additional physical cards so the ISSUER may destroy them within a period of ninety calendar days after the CARDHOLDER delivers the documentation. 6. BASIC CONDITIONS FOR ISSUING THE CARD: The ISSUER establishes basic requirement to issue credit cards. These requirements are sub-divided into specific profiles: a) INDIVIDUAL: Individuals must have monthly income above the range set by the ISSUER, a minimum job history of six months, and be of a legal age to be able to act. In addition, the applicant must file an application in writing, provide a legible photocopy of the current pay stub as of the time when the application is filed, provide a salary statement issued by the applicant's employer, provide a copy of the CARDHOLDER s legible identification card or a document suitable for identification, and provide a copy of the bill for water, electricity or telephone service. If the applicant works freelance, he or she must document the monthly income by providing a certification of income issued by a certified public accountant. b) COMPANIES: Companies must provide financial statements for the last three fiscal periods along with a recent cut-off statement not more than three months old, the company s articles of incorporation, a copy of the corporate identification number, a notary or registry certification of its legal incumbency, and a written application for the credit card to be issued. Individuals who are to be additional cardholders must provide a photocopy of their identification cards. The foregoing, however, does not limit the ISSUER such that it may change the aforementioned basic guidelines or it may include additional requirements in determined cases. Likewise, issuing credit cards and/or purchasing balances may be founded on back-to-back securities where the credit limit granted is backed by an investment instrument whose collateral is greater than or equal to the credit limit that is granted. These instruments include term certificates of deposit or any other equivalent mechanism. It is up to the ISSUER to determine whether or not there is a need to endorse the interest coupons as of the time of finalization or whether that provision may be ignored. When a back-to-back plan is used, it is understood by the CARDHOLDER and/or DEBTOR that the instrument backing the operation will not be returned until
the following cut-off for the assigned card has occurred. At any rate, the ISSUER must have the space and sufficient time to carry out the pertinent liquidation. The CARDHOLDER accepts that, by signing this agreement, he or she has received an explanatory brochure about the credit card underlying this contract and that he or she has fully understood the brochure and the provisions contained therein. 7. ACOUNT STATEMENTS: The ISSUER will send a monthly account statement to the CARDHOLDER that will itemize the transactions made up to the last day of the cut-off. The account statement will show: individual charges, purchases made from domestic or foreign merchants, late fees, pay-off amount, (including any sums credited to using the regular line of credit), and the different cut-off and due dates. The account statement may be used to tell the CARDHOLDER about any promotional plans, regulations, or changes in standards tied to the credit card, changes in rates or deadlines and any other information that the CARDHOLDER deems to be expedient. The CARDHOLDER must provide a specific address to send the account statements to and is fully liable for the accuracy of the information provided to that end. Even when the CARDHOLDER indicates addresses and exact means of receiving the account statement, the CARDHOLDER will be liable for asking for the statement to be sent inasmuch as there may be some factor that affects the account statement being sent in a timely fashion. The CARDHOLDER must report late deliveries to the ISSUER. The CARDHOLDER is aware of and understands that late receipt of an account statement will not be admissible or justifiable for late payments. If the CARDHOLDER fails to report that inconsistency within ten days after the cut-off date, the account statement will be held to have been delivered. If the CARDHOLDER changes address or the originally indicated means of receiving account statements, the CARDHOLDER must report it to the ISSUER to change the information so the statements may be sent properly. If, however, the CARDHOLDER does not report any changes, the CARDHOLDER may not make any claim against the ISSUER. 8. CLAIMS ABOUT ACCOUNT STATEMENTS: When the CARDHOLDER believes that charges or expenses have been booked incorrectly, the CARDHOLDER must file a claim with the ISSUER within ten days after receipt of the account statement. At that point, the ISSUER will process the claim and settle it based on the guidelines and regulations established by VISA INTERNATIONAL. The account statements will be issued monthly. The cut-off dates are the 21 st day of the month and payments are due on the 6 th day of each month.
9. INTEREST: The CARDHOLDER will pay annual interest on the charges against the regular line of credit in the amount of thirty-eight point forty percent (38.40%) annually on balances in colones. That rate is equivalent to three point forty-eight percent (3.48%) monthly with a daily factor of point eleven percent (0.11%). The CARDHOLDER will pay interest on balances in dollars at twenty-seven percent (27%) annually. That rate is equivalent to two point twenty-five percent (2.25%) monthly with a daily factor of point zero seven percent (0.07%). Likewise, the CARDHOLDER will pay late fees at two percent (2%) above the rate stipulated for current interest. The late fee percentage is applicable to balances in colones and dollars both. If the CARDHOLDER is late in making payments, the CARDHOLDER must pay the ISSUER late fees of two percent (2%) above the rate stipulated for current interest and additional charges in place at the time due to late payments. To calculate the interest, the parties understand and accept that the calculation mechanism is made up of the following formulas: a) Calculation for Non-Reimbursable Interest: This interest is calculated based on the non-financeable debits to the card in the cut-off period. As its name indicates, this interest may not be subsidized by the payments the CARDHOLDER makes. The calculation formula is as follows: Non-Reimbursable Interest = (Debit Amount * Annual Current Interest Rate / 360 * No. of Days from the Purchase Date to the Cut-off Date) b) Current Interest Calculation: This is the current interest on the balance financed on the card. It is calculated based on the balance owed as of the previous cut-off and taking into account the daily interest rate and the number of actual days from the previous cutoff date to the current cut-off date. The formula is as follows: Current Interest = Beginning Balance Owed * Annual Current Interest Rate / 360 * Cut- Off Days Negative Interest. Current interest is not generated if the CARDHOLDER pays off the amount owed on time (i.e., by the payment due date stipulated on the account statement). c) Late Fee Calculation: This is the interest calculated on the amount in arrears based on the following formula: (Daily Overdue Balance * Annual Late Fee Interest / 360). d) Intra Cathay: There are two choices that the customer may make. The term may be for 24 months at an annual interest rate of 28.56% or 48 months with an annual interest rate of 35.04%. Three percent (3%) will be charged if it is paid off prior to making six payments on the Intra Cathay balance.
10. PAYMENTS. The CARDHOLDER must make monthly payment either at any Banco Cathay branch or at the places or using the media that the ISSUER determines, i.e.: Servimas stands by making a deposit to Banco de Cathay. Each payment must be in cash or the equivalent in quasimoney. When the latter payment method is used, the payment will not be credited until the ISSUER is able to completely substantiate the transaction. In addition, if payment is made by check and it has insufficient funds or it is impossible for the ISSUER to substantiate it, the CARDHOLDER must pay an administrative fee of 5,500 when the check is in colones and $10 when the check is in dollars. Each payment will be made in the currency used for the purchase. When the purchase is in dollars, the CARDHOLDER must pay in dollars or its equivalent in colones at the exchange rate set by the ISSUER at the time of payment. It is understood that the period of time used to calculate the minimum payments will be fortyeight (48) months. The minimum payment will be calculated using a year of 360 calendar days to apply the interest rate. The ISSUER has the right to calculate those payments in the following order: overdrafts, administrative fees, late fees, current interest, and balance owed. The basic payment mechanism is as follows: a) The CARDHOLDER may pay off the balance indicated on the account statement within two weeks after the cut-off date without any current interest being charged, except for cash withdrawals or monthly payments no less than the minimum payment as indicated on the account statement, b) Likewise, the CARDHOLDER may make the minimum payments indicated on the account statement within two weeks after the cut-off date. The calculation mechanism for the minimum payment is based on the following formula: (Balance Owed as of the Previous Cut-Off + Purchases and Cash Advances Payments to the Balance Owed) / Term) + Interest + Overdue Payments + Overdrafts + Non- Financeable Debits = Minimum Payment. The pay-off amount is determined as follows: Ending Balance Current Interest for Period. 11. OVERLIMIT FEES: When the CARDHOLDER exceeds the credit limit, the difference will be due when the monthly pay-off is due and may not be financed in any way. Failure to pay this item will make the full amount owed on the credit card come due. Overlimits occur when the sum of the purchases, accrued interest as of the
cut-off date, service charges, fees, or other items are higher than the credit limit that is originally granted the CARDHOLDER. 12. RELEASE FROM LIABILITY: The ISSUER will not be held liable or accept any claims from the CARDHOLDER when any of the following situations occur: a) When the CARDHOLDER may not carry out transactions due to any damages to the card or when the card is kept by an ATM; b) When a merchant refuses to accept payment by using a Cathay credit card; c) when the card is lost or stolen and there are charges on the card but the CARDHOLDER has failed to process and report the loss to the ISSUER. Therefore, if third parties make purchases or book transactions with the lost or stolen card, the CARDHOLDER will be solely liable for those purchases and no claim will be accepted due to this circumstance. Likewise, the CARDHOLDER understands that if the account is closed for any reason, the CARDHOLDER will be entirely and absolutely liable for returning the card to the ISSUER inasmuch as it is the property of the party granting the credit. 13. CARD LOSS OR THEFT: The CARDHOLDER must report by telephone or in writing when a credit card is lost or stolen so it may be blocked or cancelled, as the case may be. If the event occurs abroad, the CARDHOLDER must report to the ISSUER by telephone or fax. The CARDHOLDER will be liable for a third party using the card whether it is by means of a forged signature or not until the CARDHOLDER reports to the ISSUER in writing. In case of transactions that are made with the personal identification number (PIN), the liability extends to the third business day after the written report so the pertinent investigation may be done to determine whether the CARDHOLDER is responsible for that usage. If so, the CARDHOLDER s liability will continue even after the indicated deadlines. Reporting lost cards in country for all cards is 2527-7802 or 2257-1766 International (outside Costa Rica) Cathay Visa Clasica 1-800-847-2911 Cathay Visa Gold, Business 1-800-847-2911 Cathay Visa Platinum or Infinite 1-800-396-9665 14. ENFORCEMENT. According to Article 611 of the Costa Rican Code of Commerce, the outstanding balance for the CARDHOLDER s card when the account is terminated may be called due and payable
so long as there is a certification issued by a Public Accountant or using the means that it deems appropriate. Added to the balance that is legally called due, the CARDHOLDER must pay the late fees stipulated in this contract and any personal and processing costs that the ISSUER may incur during the collection process. The courts of law in the Central Canton of San Jose will be the competent authority for this process. In addition, the CARDHOLDER waives the extension of the time period granted for having accepted payments against the principal, interest or other charges after they are due or for having been granted a non-extended time period or not, to pay off the amounts that are overdue. 15. COLLATERAL: The liability for the co-signer(s) on this contract will be joint and several in relation to the obligations that arise from this agreement. If any extensions are given, if the credit limit is raised, or if any changes are made that increase the degree of exposure for the co-signer(s), they will be reported formally by the ISSUER to the following address. The co-signer(s) must formally accept or refuse to bear that joint and several bond. The CARDHOLDER may use term certificates of deposit as collateral. They must be endorsed to the ISSUER so it may keep them in custody. The CARDHOLDER authorizes the ISSUER to renew, as many times as needed, the certificates used as collateral for this contract when they mature. If one installment is overdue, the collateral may be called due such that the CARDHOLDER expressly authorizes the ISSUER to cash the certificates used as collateral. If there is anything remaining, the ISSUER will turn that remainder over to the CARDHOLDER within the period of time that the ISSUER deems to be expedient. 16. DOMICILE: For the purposes of the Law on Service of Notifications and for sending the account statement, the CARDHOLDER indicates the following contractual domicile. If there are any changes, they will be reported by the CARDHOLDER to the ISSUER. Service of notification will be deemed to be valid at the following address: P.O. Box e-mail. If the CARDHOLDER fails to report a change of address to the ISSUER, any communication arising from the text of this contract will be deemed to have been properly delivered within twenty-four (24) hours after receipt or delivery, as the case may be. 17. ADDITIONAL CARDS: The CARDHOLDER may ask the ISSUER for additional cards linked to the originally approved line of credit. The ISSUER will evaluate the specific request
and will approve or deny it based on its internal policies and guidelines. It is also clear that, in addition to the MAIN CARDHOLDER, the ADDITIONAL CARDHOLDER will be jointly and severally liable without limitation. Both the MAIN CARDHOLDER and the ADDITIONAL CARDHOLDER will be absolutely liable for how the main and additional cards linked to the line of credit are used. 18. ASSIGNMENTS: The CARDHOLDER authorizes the ISSUER to assign or sell its credit rights arising from this agreement. Such an assignment or sale will be to legal entities that have the ability to pay for the amount due at the time of the conveyance. This conveyance does not require the CARDHOLDER to be notified, inasmuch as any payment received on the account or by the originally stipulated means in this agreement will be held to have been properly made. 19. COLLECTION FEES: The CARDHOLDER authorizes the ISSUER to implement collections proceedings against the CARDHOLDER every time the CARDHOLDER goes into arrears. The authorized procedures include sending text and voice messages, regular telephone calls with no restriction as to time of day, sending written messages to the CARDHOLDER s home or place of work, home visits and any other mechanism that the ISSUER deems to be necessary. Likewise, the CARDHOLDER accepts that if the CARDHOLDER s payments are late, any legal or administrative proceeding against it will be charged to the CARDHOLDER s account as a direct consequence of the late payment. (CHECK FEES) 20. FEES FOR PURCHASES MADE ABROAD: When the CARDHOLDER makes purchases or takes out cash advances at merchants or automated tellers located outside the Costa Rican territory, the CARDHOLDER must pay a fee equivalent to ONE PERCENT of the transaction that was made. That fee is charged by Visa International (the card brand that owns the receivables). 21. INFORMATION UPDATES: The CARDHOLDER expressly accepts that it must provide personal financial information every time the ISSUER deems it to be necessary to be in line with the guidelines contained in the Constitutional Law of the Central Bank, the General National Banking System Law, the current Bylaws of the General Superintendency of Financial Entities, and other associated norms. In addition, the CARDHOLDER must provide the ISSUER with updated personal information in terms of: the home address, telephone number, job and financial information; and any other piece of information that the ISSUER deems to be necessary. Any other document used as
back-up will be kept in custody by the ISSUER for up to ninety calendar days. 22. ADDENDA: The CARDHOLDER agrees that the ISSUER may make amendments to the contractual conditions by means of an addendum that will go into effect two weeks after the payment due date stipulated on the last monthly account statement. An amendment will be issued for each specific change to the contract so the CARDHOLDER will become aware of it in a timely fashion. Within the same two-week period, the CARDHOLDER may object to the change and ask for the contractual relationship to be terminated. To do so, the CARDHOLDER must pay off the total outstanding balance at that time. The termination must be reported to the ISSUER in writing at any of its offices. If the two weeks pass without any formal objection by the CARDHOLDER, the modified clause will be held to have been accepted for all legal intents and purposes. 23. INVALIDATION: The parties hereto agree that if any clause is deemed to be invalid, null and void, or ineffective, it will only affect the clause in dispute and will not invalidate the rest of the contractual stipulations. The essence of the agreement will be understood to remain in place until the agreement expires. 24. READING THE CONTRACT: The CARDHOLDER expressly states that the contents of this agreement are acceptable to him or her and that he or she has read the full agreement and understands all of it. 25. CARDHOLDER DUTIES: a) Comply with his or her payment obligations. b) Use the debit or credit card in person and refrain from revealing the teller and other electronic system access codes. c) Prior to signing the payment voucher, check the amounts and accuracy of the information. d) Request and keep the payment vouchers and other documents related to purchasing goods and using services. e) Ensure that any additional cards that the CARDHOLDER requests are used properly. f) Tell the ISSUER his or her domicile, fax, postal or e-mail address, or any other informational medium needed so the issuer can send account statements and any other information related to handling the card and keep the information updated. Update files. g) Report to the Issuer when the account statements are not received within the period of time in the contract except when laws or other bylaws establish longer periods, in which case the period of time that is most beneficial to the CARDHOLDER will apply.
h) Check the interest rate and other charges made by the ISSUER and the procedures to file claims on time about the products and services acquired using the debit or credit card. i) File claims within the period of time in the contract except when other regulations establish longer periods, in which case the period of time that is most beneficial to the CARDHOLDER will apply. j) Report any card theft or loss to the issuer as soon as the CARDHOLDER becomes aware of it. IN WITNESS WHEREOF, we have set our hands hereunto in the city of San on the 24 th day of August, 2012. Owner ID: Signature: The ISSUER CARD