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We appreciate your continued business as a customer ("Agency") of CSG Forte Payments, Inc. ("Forte"). The purpose of this letter is to address recent regulatory trends in the payments business and to ensure that our continued provision of payments services is clearly defined. As described in the merchant services agreement between you and Forte (the "Agreement"), during the process of providing Automated Clearing House (ACH), credit and debit card processing services, Forte may remit settlement funds to you from various customer payment types (e.g., various card networks, debit networks, Originating Depository Financial Institutions (ODF(s), etc.). As part of this settlement process, Forte may, as your agent, receive and temporarily hold settlement funds. Certain states have come to require this "Agent of the Payee" relationship to be formally represented in the customer contract (in this instance, the Agreement). Both Forte and Agency have an obligation under the Agreement to comply with all applicable laws in the provision and receipt of services. Therefore, through this letter and your return acknowledgement, we wish to clarify the following with regard to the settlement funds and the Agreement: 1. Forte is acting as Agency's authorized agent for the limited purpose of receiving settlement funds from constituents/consumer on Agency's behalf and Agency expressly appoints Forte to act as its agent to receive settlement funds on Agency's behalf. 2. Receipt of settlement funds by Forte shall be considered receipt of settlement funds by Agency, extinguishing the constituent's/consumer's payment obligation to Agency (in the amount paid by the constituent/consumer) as if the constituent/consumer had paid Agency directly. Such is the case even if the settlement funds are not received by Agency from Forte. 3. Forte, and not the individual constituent/consumer, is solely liable to Agency for settlement funds if Forte fails to remit settlement funds to Agency. These statements do not change the nature of the relationship between the parties, nor any of the processes, procedures, or means by which Forte performs the payment services under the Agreement. Rather, this letter is to allow us to comply with the requirement that these items be specifically set forth in writing between the parties. Further, these statements only apply if, and to the extent, that Forte actually holds and remits settlement funds to you under the Agreement. Therefore, please have an authorized signor acknowledge the receipt and acceptance of the terms of this letter in the signature blank below. Please return an executed version of this letter no later than July 1, 2020 to avoid any potential suspension of service.' You may email the acknowledgement to y-overnmentsupportL&forte. net or mail it to: CSG Forte Payments c/o Legal 500 W Bethany Dr. 4200 Allen, TX 75013 ' It is Forte's position that since this letter is clarifying the existing services and not making any modification or amendment to the terms of the Agreement, a formal amendment pursuant to the terms of the Agreement is not applicable or required.