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ACCREDITATION MEMORANDUM OF UNDERSTANDING (ELECTRONIC SELF-SERVICE)

Between The TAN2000 International Regulatory Corporation (a Connecticut Benefit Corporation) and Accrediting Entity ____________________ (a _____________________________)

This memorandum of understanding is intended to convey the commitment of both organizations to the trust and accountability necessary to build a strong entrepreneurial community.

ADOPTION OF COMMUNITY STANDARDS

Accrediting Entity agrees that it, through its authorized representatives, are electing to become accredited because of a strong commitment to a strong entrepreneurial community. Trust is the cornerstone of the community, and the Board of Governors exist to promote the trust within the community, for the mutual benefit of everyone in the community.

Community Standards, as adopted by the Board of Governors upon recommendation from the Corporation’s Board of Directors and Senior Management Team, on behalf of the staff and leadership of the Corporation, are enforceable on all Accreditation Holders to facilitate trust and accountability. There is a mechanism that will allow a check on the power of the Board of Governors, that requires a substantial pushback by all Accreditation holders.

VOTING RIGHTS AND BOARD OF GOVERNORS JURISDICTION

Accrediting Entity gets voting rights for the membership of both System and Jurisdictional Board of Governors. In consideration for these voting rights, Accrediting Entity agrees to uphold the community standards and processes adopted by the Board of Governors and enforced through the processes and programs enacted by this Corporation and its personnel. It is understood that the actions and decisions of the System Board of Governors and the Board of Governors for the Jurisdiction(s) in which the Accredited Entity has any operations are applicable to the Accredited Entity.

Accrediting Entity has 1 vote for the ________________________ for the System Board of Governors, and the Board of Governors for ______________________________. Should the Accrediting Entity operate in other jurisdictions, it is Accrediting Entity's responsibility to notify the Benefit Corporation so that this Agreement may be amended appropriately. Such voting rights are subject to meeting the Endorsement/Certification requirements in order to demonstrate the organization’s adherence to the community standards and processes, and in certain cases, regulatory requirements as required by law.

CONFLICT OF INTEREST RULES

The Benefit Corporation, due to the nature of its programs and services which include services that fall under regulatory authority and statutory registration exemptions provided by state and federal laws and regulations, requires a level of impartiality to the marketplace, similar to a utility company, in order to implement the Community Standards as advanced and adopted by the Board of Governors. Therefore, this agreement is constructed to comply with conflict of interest principles generally required for the Securities industry, to enable the Benefit Corporation to carry out its purpose and mission.

GENERAL ACCREDITATION PROVIDED; ENDORSEMENT PROCEDURE

This memorandum of understanding will provide the basic level of general accreditation. Within the programs, and consistent with Board of Governors’ standards, certain functions require additional endorsements. Such endorsements may be added or removed at a later date through the amendment process. Such documents shall be countersigned by an authorized representative of both organizations and shall not be effective until it is accepted by an authorized representative of both organizations.

In order for Accrediting Entity to receive endorsements, Accrediting Entity must comply with regulatory requirements if applicable for the area of endorsement, and the standards adopted by the Board of Governors for the area of endorsement. Such agreement must be signed by a representative of the Corporation that is directly authorized, by both the Board of Governors and the Board of Directors of the Corporation, to award such endorsements.

Once endorsements are awarded to Accrediting Entity, Accrediting Entity understands and agrees that continual compliance with the regulatory requirements, if applicable, along with the standards and processes adopted by the Board of Governors for the area of endorsement, must be adhered to at all times, and that failure to adhere to or comply with such processes and standards, or regulatory requirements, will result in the revocation of the endorsement and sanctioning may be applicable.

Accrediting Entity understands that their endorsement and accreditations will be publicly reported for the purposes of developing and further building community trust in the entrepreneurial community and the Corporation’s mission of advancing a fair and consistent marketplace and ecosystem for all early stage entrepreneurs. Furthermore, Accrediting Entity understands and agrees that if criminal violations are discovered, the Corporation may be required to report such criminal activity to the appropriate regulatory authorities and Accrediting Entity understands that the Corporation cannot accept any liability for such reporting.

ENDORSEMENTS INCLUDED IN THIS AGREEMENT

As part of this Agreement, the following Endorsement Forms (STD-3A Series Forms) is being made a part of this Agreement:

EXECUTION

In consideration of this document being electronically executed, the following representative certifies, under the penalty of perjury, that:

The representative understands that electronic signature information will be collected, including proof of their use of this system, such as their IP address and other identifying information, and agrees to undertake any additional certifications that are necessary to effect this Agreement.

WARNING: Submission of a false document to TANRC for accreditation purposes will subject that individual to personal liability under the Operating Rules and Standards of The TAN2000 International Regulatory Corporation. Any intentional false statements may cause the submitter of such statements to face sanctions, up to and including a permanent ban on access to TANRC regulated marketplaces, which means that individual will not be able to be employed by any TANRC Accredited entity in any capacity. Such actions are publicly reportable through the TANRC Online Record of Sanctions.


SERVICE PROVIDER ENDORSEMENT TO THE ACCREDITATION AGREEMENT (ELECTRONIC SELF-SERVICE)

Between The TAN2000 International Regulatory Corporation (a Connecticut Benefit Corporation) and Accrediting Entity ____________________ (a _____________________________)

This agreement supersedes all previous versions, and this process is governed by the Board of Governors (also known legally as the Benefit Board). Only the latest version of this agreement will be accepted once it has been approved by the Board of Governors.

PURPOSE

The purpose of this Agreement is to facilitate the endorsement necessary to allow __________________________ to formally be recognized as an Accredited Service Provider to all programs and marketplaces regulated by The TAN2000 International Regulatory Corporation.

Endorsements to Accreditations, and the operation and standards of Endorsements and Accreditation, are governed by the Board of Governors of the Corporation. In order for the organization to be eligible to vote and/or participate in the community standards setting process and community trust building processes, their Accreditation Agreement with the Corporation, and all Endorsements, must be in good standing.

PARTIES

The “Benefit Corporation” shall refer to The TAN2000 International Regulatory Corporation, a Connecticut Benefit Corporation headquartered at 2275 Silas Deane Highway, Third Floor, Devlin & Hale Suite, Rocky Hill, Connecticut.

The “Accredited Entity” shall refer to __________________________, a __________________________ headquartered at __________________________.

ANNUAL CERTIFICATION AND PAYMENT REQUIRED

Accrediting Entity understands that annual recertification of this Endorsement is required under Benefit Corporation’s Operating Standards and Procedures. An annual fee in the amount of ___________________________, as approved by the Board of Governors, is due and payable within 30 days of execution of this Endorsement. This Endorsement is not effective until this fee is received and if the fee is not received within 30 days, this Endorsement will be terminated and the termination will be reported publicly through the TANRC Online Record of Accredited Entities.

Accrediting Entity further understands that renewal of this Endorsement must be completed no later than 10/17/2019, otherwise, this Endorsement will be automatically revoked and reported publicly through the TANRC Online Record of Accredited Entities. Automatic revocation of the Endorsement will be reported as an involuntary automatic revocation of endorsement.

Accrediting Entity agrees to follow the most current Renewal Procedures as adopted by the Board of Governors of the Corporation, and agrees that should renewal be desired, that renewal shall commence on or before 30 days prior to the expiration of this Annual Certification. Failure to do so may result in automatic revocation of endorsement, pursuant to the preceding paragraph.

Should the Accrediting Entity require a change in Endorsements or ceases to operate, Accrediting Entity agrees that it shall request voluntary termination of this Endorsement with an effective date of the voluntary termination of this endorsement no later than 10/17/2019.

NO REFUND OF ANNUAL CERTIFICATION FEE

The annual fee per Endorsement as approved by the Board of Governors, due and payable under this Endorsement, shall not be refundable under any circumstances as it is used to defray the costs of operating the necessary functions of this Endorsement.

ADDITIONAL ACCESS TO MARKETPLACES GRANTED UNDER THIS ENDORSEMENT

Accrediting Entity, provided that this Endorsement is active and in good standing, and in compliance with the Operating Standards and Regulations that are applicable to all Service Providers, shall be granted the ability to access Marketplace functions that require the Service Provider General Endorsement.

Certain types of Service Providers require an additional Endorsement to access those functions within all Regulated Marketplaces of the Benefit Corporation. Accrediting Entity understands that they may not access such functions without the required additional Endorsements as stipulated by the Board of Governors.

REPORTABILITY AND SANCTIONS

Accrediting Entity understands that it is subject to the authority of the Board of Governors and agrees that should they be found in violation of approved Operating Standards and Regulations, they may be assessed sanctions against this Endorsement or their Accreditation Agreement, and such sanctions may be publicly reported. Sanctions may include fines, suspension of Endorsement or Accreditation privileges, and in extreme cases, termination of the Endorsement or the Accreditation Agreement.

Accrediting Entity further understands that if the Accrediting Entity operates in a field subject to external governmental regulation, the Benefit Corporation may be required to report activity of the Accrediting Entity to the appropriate regulatory authorities and Accrediting Entity understands that the Corporation cannot accept any liability for such reporting.

CONSUMER PROTECTION COMPLIANCE REQUIREMENT

All Accrediting Entities that receive the Service Provider Endorsement shall comply with all Consumer Protection Laws and Regulations in effect in all jurisdictions that they are registered to operate in with the Service Provider Endorsement. Failure to do so will be deemed a violation of Operating Standards and Regulations, and subject to sanctions under this Agreement.

TYPE OF ENDORSEMENT, JURISDICTIONS THIS AGREEMENT IS APPLICABLE TO

This agreement is an Initial Endorsement. This Endorsement permits the Accrediting Entity to operate as a Service Provider in all marketplaces and programs regulated by the Benefit Corporation in the following jurisdictions: ____________________.

Should the jurisdictions that the Accrediting Entity operates as a Service Provider change, Accrediting Entity understands that this Endorsement must be amended and shall cause this Endorsement to be amended in accordance with the Benefit Corporation’s Procedure on Amendments to Endorsements, including the payment of any applicable fees to facilitate such amendment, as approved by the Board of Governors.

SERVICES ENDORSED UNDER THIS AGREEMENT

This Endorsement permits the Accrediting Entity to operate as a Service Provider for the following services in all marketplaces and programs regulated by the Benefit Corporation: ______________________________.

This version of the Agreement only authorizes service providers to provide services in all regulated marketplaces which do not require additional regulation. Should Accrediting Entity offer a service that is subject to additional regulation, Service Provider understands that they cannot offer such services in all regulated marketplaces prior to amending this agreement with an authorized representative from the Benefit Corporation with the appropriate regulatory forms.

Should the services that the Accrediting Entity offers under this Endorsement change, Accrediting Entity understands that this Endorsement must be amended and shall cause this Endorsement to be amended in accordance with the Benefit Corporation’s Procedure on Amendments to Endorsements, including the payment of any applicable fees to facilitate such amendment, as approved by the Board of Governors.

EXECUTION

In consideration of this document being electronically executed, the following representative certifies, under the penalty of perjury, that:

The representative understands that electronic signature information will be collected, including proof of their use of this system, such as their IP address and other identifying information, and agrees to undertake any additional certifications or amendments that are necessary to effect this Endorsement.

WARNING: Submission of a false document to TANRC for accreditation purposes will subject that individual to personal liability under the Operating Rules and Standards of The TAN2000 International Regulatory Corporation. Any intentional false statements may cause the submitter of such statements to face sanctions, up to and including a permanent ban on access to TANRC regulated marketplaces, which means that individual will not be able to be employed by any TANRC Accredited entity in any capacity. Such actions are publicly reportable through the TANRC Online Record of Sanctions.

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