Wholesale Financial Products and Services

1. Wholesale FinancialProducts and Services SEEDFINANCE

2. Product Lines • MicroLINE • MicroPLUS • E-hancement • FinEx • GSL-FLEX • POWERShares • SF-MAX SEEDFINANCE Products and Services

3. MicroLINE is SEEDFINANCE’s basic revolving wholesale microfinance credit facility using tiered rates as an incentive mechanism for good and excellent-performing Partner Financial Institutions (PFIs). The special rates also allow access for PFIs with not so impressive performances but with clear and evident commitments and potential for growth in microfinance. These tiered rate lines are sub-classified into DIAMOND, GOLD, SILVER and BRONZE. MicroLINE SEEDFINANCE Products and Services

4. MicroLINE Purpose and Usage To finance retail re-relending of PFIs to micro-enterprising clients Micro-enterprise activities eligible for funding are the following: • Micro-production, trading and service with at least weekly cash flow • Agricultural enterprises that yield weekly income cycle. SEEDFINANCE Products and Services

5. MicroLINE Features • CREDIT LINE ACCOMMODATION • Minimum of P2,000,000.00 • Maximum of P10,000,000.00 • TERM • One (1) year on Credit Line • Two (2) years on every drawn amount • DRAWDOWN MODE • Direct releasing of amount to the PFI’s bank account • SMART Money Account of PFI SEEDFINANCE Products and Services

6. MicroLINE Features • LIQUIDATION AND VALIDATION • Drawn amounts are subject to liquidation and validation as a requisite in availing next draw downs • REPAYMENT • One (1) month grace period; thereafter, monthly on principal and interest via post-dated checks (PDCs) or • 1 month grace period; thereafter, monthly on principal and interest via e-banking auto-debit arrangement with AUB, BPI, LBP or BDO SEEDFINANCE Products and Services

7. MicroLINE Features • SECURITY • Continuing Surety of BOD and key management officers for GOLD and DIAMOND Partners • REM or CHM required for BRONZE SEEDFINANCE Products and Services

8. MicroLINE Features • DRAW DOWN REQUIREMENTS • BOD resolution and letter-request • Latest (interim) financial statements • Monthly Management Report (MMR) • Credit Offering and Approval Form (COAF) – a SEEDFINANCE prescribed format • Notarized Promissory Notes and Comprehensive Surety Agreement SEEDFINANCE Products and Services

9. MicroLINE Features • INTEREST RATE • 14% p.a. for DIAMOND MMR rating • 15% p.a. for GOLD MMR rating • 16% to 17% p.a. for SILVER and BRONZE • All interest rates are computed on a diminishing balance formula • CHARGES AND FEES • 0.5% Service Fee of the loan amount • Documentary Stamp Tax (DST) • Bank transfer fee (if applicable) SEEDFINANCE Products and Services

10. MicroPLUS is a loan designed for graduating “micros” (those micro-enterprises which have grown up and out of the micro category) of PFIs’ clients and other small enterprises operating within the area of the PFIs’ jurisdiction. It is a co-financing scheme where PFI and SEEDFINANCE share the risks equivalent to their respective investments. MicroPLUS SEEDFINANCE Products and Services

11. MicroPLUS Purpose and Usage • To finance additional working capital needs of graduating micros and small enterprises that include: • Purchase of additional merchandise stocks or refinance receivables. • Purchase of transport vehicle, machineries, equipment, appliances, furniture and fixtures needed by the business. • Construction of store or warehouse or purchase of land. • Renovation or repair of existing store, office, warehouse, shop, factory, vehicle, machinery, appliance, furniture, fixture and/or equipment. SEEDFINANCE Products and Services

12. MicroPLUS Features • CO-FINANCING AMOUNT • Minimum of P200,000.00 • Maximum of P2,000,000.00 • SEEDFINANCE shall finance a maximum of 80% and minimum of 20% of the client’s total approved loan • TERM • One (1) Two (2) years • DRAWDOWN MODE • Through the PFI’s bank account or SMART Money account and PFI disburses to the client SMART Money Account of PFI SEEDFINANCE Products and Services

13. MicroPLUS Features • REPAYMENT • Monthly on principal and interest to SEEDFINANCE (reflecting SEEDFINANCE counterpart amount) via post-dated checks (PDCs) of the Partner PFI • SECURITY • Co-sharing with the PFI on all mortgages of the client SEEDFINANCE Products and Services

14. MicroPLUS Features • DRAWDOWN REQUIREMENTS • Letter-request of the PFI; BOD resolution approving the amount of client’s loan • Minimum reports: Profile of prospective borrower, interview report, loan application, project visit, CIR, AIR, BRR, ECR, Approval/Action Memo of the PFI. • INTEREST RATE • Based on the PFI’s prevailing interest rate for its SME loans but should not be lower than 18% p.a. base interest on a straight line computation method • DRAWDOWN MODE • Through the PFI’s bank account or SMART Money account and PFI disburses to the client SMART Money Account of PFI SEEDFINANCE Products and Services

15. MicroPLUS Features • CHARGES AND FEES • 0.5% Service Fee of the loan amount • Documentary Stamp Tax (DST) • Bank transfer fee (if applicable) SEEDFINANCE Products and Services

16. E-HANCEMENT is a loan facility provided to PFIs for efficiency enhancement and technology investment on mobile and electronic banking services E-HANCEMENT SEEDFINANCE Products and Services

17. E-hancement Purpose and Usage • To provide subsidy funding to PFIs for efficiency enhancement and marketability specifically on: • Hosted Core Banking Services (HCBS) package. • Investment on ATM machines, Point-Of-Sale devices, mobile gadgets. • Advanced computerization – hardware and software • Installation of online branch network systems or mobile branch operations. • Capacity and image-building program of the PFI (systems and manuals, renovations and refurbishment, branching out fixed assets acquisition) SEEDFINANCE Products and Services

18. E-hancement Features • LOAN AMOUNT • Minimum of P100,000.00 • Maximum of P2,000,000.00 • For capacity- and image-building purposes: Max is P250K • TERM • Minimum of one (1) year • Maximum of two (2) years • For every loan amount availed • DRAWDOWN MODE • Direct releasing of amount to the PFI’s bank account • SMART Money Account of PFI SEEDFINANCE Products and Services

19. E-hancement Features • REPAYMENT • One (1) month grace period; thereafter, monthly on principal and interest via post-dated checks (PDCs) or • 1 month grace period; thereafter, monthly on principal and interest via e-banking auto-debit arrangement with AUB, BPI, LBP or BDO • SECURITY • Continuing Surety of BOD and key management officers • DRAWDOWN MODE • BOD resolution and letter-request • Brief project overview of the Technology Investment • Notarized Promissory Notes and Comprehensive Surety Agreement SEEDFINANCE Products and Services

20. E-hancement Features • INTEREST RATE • 10% Interest rate p.a. for DIAMOND and GOLD Partners • 12% Interest rate p.a. for BRONZE Partners • All interest rates are computed on a diminishing balance formula • CHARGES AND FEES • 0.5% Service Fee of the loan amount • Documentary Stamp Tax (DST) • Bank transfer fee (if applicable) SEEDFINANCE Products and Services

21. FINEX or Financial Emergency Extension is a liquidity management loan granted to PFIs that are operating mobile and ATM/electronic banking services for its micro- and small enterprise clients. Mobile and electronic banking services recognized by SEEDFINANCE and eligible for FINEX liquidity funding assistance are ENCASH ATM operation and SMART Money Center operation. Finex SEEDFINANCE Products and Services

22. FINEX Purpose and Usage • To provide back-up funding during emergency or liquidity needs of the PFI for the following: • ATM operation – reloading of cash into the machine • SMART Money – increasing the amount in the ENCASHMENT and RELOADING settlement accounts SEEDFINANCE Products and Services

23. FINEX Features • LOAN AMOUNT • P1,000,000.00 for each ATM in a form of credit line • Draw downs: • Minimum of P30,000.00 for SMART Money • Minimum of P300,000 for ATM • TERM • Minimum of five (5) days • Maximum of sixty (60) days • For every loan amount availed SEEDFINANCE Products and Services

24. FINEX Features • DRAW DOWN MODE • One-time same day release of requested amount directly to: • SMART Money Account of PFI; • Nearest online account of the PFI (bank transfer fee applies) • REPAYMENT • One (1) time principal and interest via post-dated checks (PDCs) or • On a case to case basis, repayment of principal and interest may be done via 2 to 3 equal PDCs within the term. SEEDFINANCE Products and Services

25. FINEX Features • SECURITY • PN (may be sent after the release of funds) • Continuing Surety of BOD and key management officers based on the credit line amount (may be sent after the release of funds) • Hold-out of available paid-up investment • DRAW DOWN REQUIREMENTS • Request letter from the CEO/GM or any authorized officer of PFI addressed to SEEDFINANCE MD/CEO, copy furnished RPO/BDA in-charge and MFO SEEDFINANCE Products and Services

26. FINEX Features • INTEREST RATE • 24% Interest rate p.a. • Computation of interest is based on the number of days the loan is used • CHARGES AND FEES • Documentary Stamp Tax (DST) • Bank transfer fee (if applicable) SEEDFINANCE Products and Services

27. GSL-FLEX or Group Salary Loan - Funds for salary Loan to Employees of Exemplary partners, is a group salary loan offering of SEEDFINANCE to Partner-Financial Institutions (PFIs) so as not to unnecessarily take a toll on their service funds for personnel benefits. PFIs are encouraged to outsource salary loan benefits to their employees to avoid conflict of interest situations. GSL-FLEX SEEDFINANCE Products and Services

28. GSL-FLEX Purpose and Usage • To provide wholesale funds for group salary loans of regular or permanent employees of PFIs which usage is either for providential or productive purposes. • Amount of salary loan to individual employees is based on the net take home pay vis-a-vis the term of loan. SEEDFINANCE Products and Services

29. GSL-FLEX Features • LOAN AMOUNT • Minimum of P100,000.00 and maximum of P1,000,000.00 per batch salary loan • Individual loan amounts ranges from P10,000 up to P150,000 for the first availment subject to increase based on the performance of the PFI • TERM • Twelve to Twenty-Four (12-24) months SEEDFINANCE Products and Services

30. GSL-FLEX Features • MODE OF RELEASE • Directly to the SMART Money account of the individual employee • Through SMART Money account of PFI • Via check or electronic transfer of batch total amount directly to the nearest online account of the PFI (service fee and bank transfer fee apply). • REPAYMENT • Via salary deduction remitted to SEEDFINANCE on a forth-nightly (every 15 days) basis in the form of PFI PDCs SEEDFINANCE Products and Services

31. GSL-FLEX Features • SECURITY • One (1) co-maker who is a regular/permanent employee of PFI • Corporate guarantee • DOCUMENTARY REQUIREMENTS • Photocopy of employees’ ID, ITR, latest one month pay slip, PN, Disclosure statement duly conformed by the employee-borrower • Covering MOA signed by authorized officers • BOD resolution of the PFI • Promissory Note and CSA of the PFI for the whole facility SEEDFINANCE Products and Services

32. GSL-FLEX Features • INTEREST RATE • Straight line method of interest computation • 11% p.a. DIAMOND MMR rating • 12% p.a. GOLD MMR rating • 13% p.a. SILVER MMR rating • 14% p.a. BRONZE MMR rating • CHARGES AND FEES • Documentary Stamp Tax (DST) • Bank transfer fee (if applicable) SEEDFINANCE Products and Services

33. GSL-FLEX Features • INCENTIVES • Rebates of 6% p.a. or 0.5% of the interest income per month at the end of term based on perfect repayment of batch loan shall be awarded to the PFI as collection commission to the PFI. • Additional 0.5% incentive to PFI for using SMART Money facilities to collect from employees and remit to SEEDFINANCE SEEDFINANCE Products and Services

34. Universal Line is an omnibus package of credit facilities involving 5 SEEDFINANCE financial products, namely: MicroLINE, MicroPLUS, FINEX, E-hancement, GSL-FLEX. This special line facility for select DIAMOND and GOLD PFIs has a lower fixed interest rate regardless of current performance rating at the time of draw down request. PFIs are given free hand in managing allocations of available credit line balance to any of the above-mentioned products. UNIVERSAL Line SEEDFINANCE Products and Services

35. UNIVERSAL Line QUALIFICATIONS • Medium-sized PFIs (with assets above P20M and employees of not less than 20) • PFIs with microfinance, SME finance, Mobile/ATM banking. • DIAMOND and GOLD PFIs (at the time of evaluation); have proven good repayment record with SEEDFINANCE; and, no adverse findings with other financial institutions. SEEDFINANCE Products and Services

36. UNIVERSAL Line Features • CREDIT LINE AMOUNT • P20M for DIAMOND Partners • P15M for GOLD Partners • TERM OF LINE • Individual products term • Mode of Release: • Via electronic transfer or through SMART Money if within P1M. • REPAYMENT, SECURITY, REQUIREMENTS • Individual products terms SEEDFINANCE Products and Services

37. UNIVERSAL Line Features • INTEREST RATE • Various method of interest computation per product • MicroLINE • DIAMOND – 12% p.a. diminishing balance • GOLD – 13% p.a. diminishing balance • MicroPLUS • 18% p.a. (prime rate) • FinEX • 24% p.a. computed based on number of days • E-hancement • 10% p.a. diminishing balance • GSL-FLEX • 10% p.a. straight line SEEDFINANCE Products and Services

38. UNIVERSAL Line Features • CHARGES AND FEES • Service fee of 0.5% of loan amount (waived if released through SMART Money) • Documentary Stamp Tax (DST) • Bank transfer fee (if applicable) SEEDFINANCE Products and Services

39. Mobile Banking As opposed to traditional “brick and mortar” banking, mobile banking or M-banking is the method of performing banking transactions e,g … balance checks, payments, transfers, deposits, credit application, etc. … … via a mobile device such as mobile phone, laptops/netbooks/electronic, ATM cards, etc. SEEDFINANCE Products and Services

40. POWER Shares or Preferred Ownership With Efficient Returns is the Series B preferred Stock of SEEDFINANCE Corporation offered to PFIs and individuals with social responsibility. Power Shares SEEDFINANCE Products and Services

41. Features SEEDFINANCE Products and Services

42. SF-MAX • SEEDFINANCE Microfinance Assistance eXtras is a service that help encourage existing SF partner- and non-partner Financial Institutions (FIs) whether MFI or SME, or socially-responsible SME going-concern, to grow based on a continuing development perspective. • SF-MAX is offered as a special fee-based product or service primarily for deserving, operationally and financially-viable and qualified MSME finance institutions or MSME-FIs and to donor-sponsored small, weak and struggling MFIs in the rural areas. SEEDFINANCE Products and Services

43. SF-MAX SF-MAX MARKETING • For partner-MFIs • direct marketing is foreseen, whether through direct mail offers, telemarketing, online marketing, or personal-relationship-selling by the field operations group. • For non-partners • cost-free promotions, networking, online marketing, and guerilla advertising can be done by H.O. (MD-COO) and the operations group, too. SEEDFINANCE Products and Services

44. SF-MAX SF-MAX TOR • A TOR clearly spells out the scope or coverage of the work to be done • At the minimum, the TOR shall include: • background of the engagement • objectives desired to be achieved in the project • scope of work and deliverables • responsibilities of the client and the SF-MAX team, • timeframe and timetables, reporting arrangements where applicable, logistical supports • the professional fees and out-of-pocket expenses provisions. SEEDFINANCE Products and Services

45. SF-MAX SF-MAX MANPOWER COMPLEMENT • To ensure fairness and equity to both the SF employees and the organization, the identification of manpower complement for SF-MAX engagements shall be: • Voluntary • Team Leader/CorpPlan formally invite SF team to volunteer as fee-based consultants • Management Prerogative • In cases where the volunteers may not be sufficient or SF manpower still proves to be lacking, management taps expertise from external associates/consultants SEEDFINANCE Products and Services

46. SF-MAX SF-MAX FEES • = P7,500 per man-day regular rate • P2,500K per man-day may be offered as discount • SEEDFINANCE-CONSULTANTS Sharing and Tax • Gross Receipt (SF-MAX FEE) • less: SF GRT of 5% • SF-CONSULTANTS share (50%-50%) • SF Share less 35% Income Tax • Consultants Share less 20% Professional Tax • Distribution of professional fees based on man-days SEEDFINANCE Products and Services

47. SF-MAX Code of Conduct SF-MAX Consultants • Conduct of SF-MAX assignments with utmost integrity, credibility, and professionalism. • They adhere to set parameters, timelines, deadlines, and other targets. • Participate in consultations for the improvement of the conduct of the engagement. • Contribute existing talents, skills, competencies, and without hesitations augment these with additional research, request for mentoring or coaching, seeking of further training, etc. SEEDFINANCE Products and Services

48. SF-MAX Code of Conduct SF-MAX Consultants • Adherence to the confidentiality and customer rights policies and provisions. • As sub-contractors for SF-MAX, we adhere to the standard corporate policies on confidentiality, non-disclosure, proprietary rights, patent application, non-competition, and conflict-of-interest-situations. SEEDFINANCE Products and Services