From J.D. Oder, 11
To: Nate Hirshberg; Isaacman, Jared
Re:
05/27/16,14:22

Jared Isaacman
1 think we can do this pretty
easily

Wc can use a bridge server and
have an api from utg to 4Go

Jared Isaacman
UTG and 4Go run on diff
platforms
Wc can only do it for new deals

J.D. Oder, 11
The bridge will allow it to work
for everyone

Sent from my iPhone

From:   J.D. Oder, II
To: Isaacman, Jared
Date:   07/14/16,11:33 AM

Jared Isaacman
How many merchants arc up on
bridge w tokenization?

Any semi integrated partners
doing great volume up yet?

J.D. Oder, 11
3.5k

Jared Isaacman
wc arc talking about 2 different
things

The bridge you are referring to is
the old school "middleware" term
we use to use bc mercury
trademarked paylink

That is not a tokenization bridge

J.D. Oder, II
Gotcha

J.D. Oder, 11
Idk the answer to that

Jared Isaacman
1 am talking about the 40 million
in sales that shift4 does

J.D. Oder, 11
I have asked joe to give me
those numbers

Jared Isaacman
And 40% of it on old pos
systems that need register and
payment tokenization

Jared Isaacman
gotcha

Sent from my iPhone

From: Isaacman, Jared
To: J.D. Oder, II
Date: 01/10/17,7:5i AM

Jared Isaacman
It was

Do we k now exactly how many
MICROS merchants we have
where payments arc 100% in
our control?

What about on the new
registration?

From:   J.D. Oder, II
To: Isaacman,Jared
Date:   05/26/16, 2:58 PM

Jared Isaacman
So if we want to win more
business in future we just have
to have 4go support more
register types?
Is that easy?

J.D. Oder, 11
4Go can do that, but
realistically it would be better to
do a bridge app that will give us
a lot more speed and control

The i'm on vacatton-but-here-i-
am-working guy(
Sent (rom my iPhone

SkyTab Hybrid "Cash Discount" Mode

Overview:

As of the writing of this document, the SkyTab Hybrid solution controls all pricing within the POS and has no ability to apply service fees at the gateway level. It only has the
ability to do "Cash Discount" mode. The following will explain the details of the workflow.

Setup:

1.
Add Service Fee in POS.
Service fee must be added/mapped in the POS and selected in the SkyTab Hybrid setting (per terminal). The value must match exactly.

Lighthouse:

1.
Login to Lighthouse and select location
Select "Register Settings" along the top menu bar
Select "Payment Terminal Configuration".

4, Select "Add Device".
NOTE: This device has been factory provisioned.
Please verify that the Store Number and Serial
Number are set correctly before linking.

5. Select "SkyTab (Hybrid Mode)" from the
Payment Devices drop down menu.

6. Select the proper terminal service fee.

7. Hit "Unlink Device", THEN hit "Link Device" to
save changes and activate the Service Fec.
2.
3.

Workflow:
1. Run Transaction in POS.
2.
Send to payment terminal.
The SkyTab Hybrid Payment Terminal solution will show the total of Sale + Service Fee, and the screen will say Cash Discount.

3.

Settle/Sync Transactions.
A. Settle the batch on the Payment Terminal.
B. After the Payment Terminal has been settled, go to Lighthouse>'Reports’>’SkyTab Reconciliation’ and sync all transactions from POS.
NOTE: The POS must be settled for all payment types, including cash.
C. Once synced, the batch will show as "Closed" on the 'SkyTab Reconciliation' screen.

Service Fee Notes:

*   If the service fee in POS and Lighthouse are not properly mapped, the totals will not reconcile and will display incorrect amounts within Lighthouse.
*   If the service fee is changed on the POS or Lighthouse at any time, you must run through the process of Unlink Device, THEN Link Device.
*   The service fee is enabled/disabled per device, so multi-location merchants can be configured appropriately.

From:   Isaacman, Jared
To: Oder, J.D., II
Date:   08/08/16, 7:52 PM

Jared Isaacman
Was on w/Dan Hirsh today. Wc
seem to always manage to
confuse poor old Danny B

We wcre going over the
difference between Shift4 token
and a Vantiv token

Our token can bc used on any
register in future

Vantiv token would only work w/
Vantiv assuming they supported
it

He didn't seem to get it

J.D. Oder, 11
Lol.

Dumb

Sent from my iPhone

18 Q. Okay. And what --
19 A. And the purpose of it and --
20 Q. What was that purpose?
21 A. The purpose was to migrate them off of the
22 legacy CardConnect platform to the i4Go platform,
23 and the bridge code would handle certain data
24 elements that weren't compatible with the
25 CardConnect -- or the i4Go platform.

23 A. We had to make changes to their bridge code,
24 as well as ours.
25 Q. And what changes did you have to make

1 to the i4Go code?
2 A. Made several data -- several software calls
3 changed. We changed format of data elements.
4 Q. Okay. And then what changes did you have
5 to make to the bridge code?
6 A. It reflected all of the changes we made on
7 the i4Go side.
8 Q. Okay.
9 A. The bridge code also had to do things like
10 filter transactions, et cetera, and do things of
11 that nature.
12 Q. Why did it have to filter transactions?
13 A. Because some of the processing platforms
14 they were using was not compatible with i4Go.
15 Q. So, for example, transactions done on a
16 processor other than Elavon; is that fair to say?
17 (Pause in proceedings.)
18 Q. Does that help?
19 A. Yes.
20 Q. Okay.
21 A. Sorry. Let me think about that.
22 Yes, you're correct.
23 Q. Okay. You mentioned that a purpose of
24 the bridge code was to help with merchant migration.
25 How did the bridge code assist with

1 merchant migration?
2 A. The handling of these differences in data
3 allowed for minimal, if any, changes, integration
4 changes, on the partner community.
5 Q. And when you say partner community, you're
6 talking about independent sales organizations and
7 agent banks; correct?
8 A. I'm talking about merchants and partners
9 that have integrated, yes.
10 Q. Okay.
11 A. And resellers, yes.
12 Q. Okay. So is it fair to say, then, an
13 advantage of this bridge code was that it reduced or
14 eliminated any changes that a merchant or reseller
15 would have to make in order to work with i4Go; is
16 that fair?
17 A. Minimal changes, to be accurate.
18 Q. Minimal changes.
19 All right. So other than
20 merchant migration, did the bridge code do anything
21 else?
22 A. Yes.
23 Q. What else did it do?
24 A. Filtered transactions, it added --
25 well, primarily, it handled the data

1 differences between legacy CardConnect and
2 i4Go API.
3 Q. Okay. And you mentioned that it filtered
4 transactions; correct?
5 A. That is correct.
6 Q. And it filtered transactions, meaning
7 what?
8 A. Meaning that not all transactions would be
9 passed to i4Go.
10 Q. Okay. So what happened?
11 Where did they go?
12 A. They were pushed down to Elavon.
13 Q. Okay. So they were processed through
14 Elavon; correct?
15 A. That is correct.
16 Q. Okay. And a primary benefit, or any
17 benefit of this bridge code, was that it allowed
18 CardConnect to move all of its merchants on Elavon to
19 Shift4's processing platform; is that fair?
20 A. That is not correct.
21 Q. Okay. What's wrong about that?
22 A. The only merchants that can move from one
23 platform to another are ones that have integrated to
24 what we call our CardConnect API.
25 Q. Okay.

1 A. So if they're integrated directly to
2 Elavon, which we have a lot of, those cannot be
3 moved without them making changes.
4 Q. Okay. But the benefit, or a benefit of
5 bridge code was that it allowed merchants that are
6 boarded on the CardConnect API on Elavon to be
7 migrated over to i4Go; correct?
8 A. Provided minimal changes and handled all
9 data differences, yes.
10 Q. Now, bridge code was always a part of
11 Shift4's plan with CardConnect from day one; correct?
12 A. Yes.
13 Q. And was bridge code put in place at the
14 time Shift4 acquired CardConnect?
15 A. Yes.
16 Q. So the bridge code was put in place at the
17 end of June 2017; is that correct?
18 A. Yes.
19 Q. And is bridge code still being used
20 today?
21 A. Yes.

9 Q. Okay. Now, what other software
10 applications are involved with processing a payment
11 through CardConnect from the time a payment is
12 initiated at the merchant's point-of-sale to the
13 time, all the way to when the switch -- the
14 transaction is sent to the switch?
15 A. It goes to the bridge, and from the bridge
16 to i4Go.
17 Q. Okay. Any other software?
18 A. No.
19 Q. Okay. So in CardConnect's response to
20 Interrogatory Number 7, it described a Lighthouse
21 gateway and then an i4Go gateway.
22 Are you familiar with that terminology?
23 A. Yes.
24 Q. Okay. And my understanding of that
25 terminology, the Lighthouse gateway is the bridge;

1 correct?
2 A. Yes.

18 Q. And which merchants that do not use
19 CardSecure P2PE can go through the i4Go gateway?
20 A. Any mechant can use i4Go gateway provided
21 it meets the requirements for the processing
22 platform.
23 Q. Okay. And do you know what percentage of
24 merchants that were processing through CardConnect on
25 Elavon's platform are now processing through i4Go?

1 A. I do not.
2 Q. Okay. Is there anyone at Shift4 that would
3 know the answer to that question?
4 A. There could be.
5 Q. Okay. Who would that be?
6 A. Perhaps someone in finance.
7 Q. Okay. So what is residual-based
8 compensation?
9 A. It's sharing the profits with a partner.
10 Q. Okay. And when you say partner, who are
11 you referring to?
12 A. Could be a reseller.
13 Q. Okay.
14 A. Could be an agent bank.
15 Q. Okay. Does Shift4 pay CardConnect
16 residual-based comp?
17 A. Yes.
18 Q. How does that work?
19 A. We have an entity called CardConnect,
20 LLC. We have a master merchant account relationship
21 with the acquiring bank, in this case, Elavon. All
22 of CardConnect merchants are boarded under that
23 master merchant relationship. So every merchant is a
24 sub-merchant of that master merchant ID. And at the
25 end of the month, the -- Elavon settles all the

1 funds minus, you know, the fees to be paid, the
2 interchange, et cetera, and funds the CardConnect,
3 LLC master merchant ID. And then from that amount,
4 we, in turn, then take out our fees, which is
5 profit.
6 Q. Okay. How does Shift4 calculate its fees
7 that it takes out?
8 A. It's a simple calculation of what we
9 earned on that merchant account versus what we paid
10 out, expenses we paid out, whether it's interchange,
11 assessments, third-party fees. It's real
12 simple -- simple accounting.
13 Q. Okay. Are you involved in the
14 calculation of that amount?
15 A. No, I'm not.
16 Q. Do you know who is at Shift4?
17 A. Someone in finance.
18 Q. Okay. Are you familiar with how the
19 Lighthouse Transaction Manager works?
20 A. Yes.
21 Q. How does it work?
22 A. It's used to do -- it's a website used to
23 register merchants.
24 Q. Okay. When you say register merchants,
25 what do you mean?

1 A. To board merchants on the platform.
2 Q. How do you board merchants on the
3 platform?
4 A. By entering their information.
5 Q. Okay. And what do you do with that
6 information once it's entered?
7 A. It then gets sent to Elavon to create the
8 sub-merchant ID on their platform.
9 Q. And sub-merchant ID is generated in
10 Lighthouse Transaction Manager; correct?
11 A. No.
12 Q. Okay. The sub-merchant ID, is that an 13 Elavon term?
14 A. Yes.
15 Q. Okay. Is there a Shift4 or CardConnect
16 term for the sub-merchant ID?
17 A. Merchant ID.
18 Q. Okay. How is that created?
19 A. That is created by the bridge, combination
20 of the, what we call, internal customer ID,
21 combined with an incremental number.
22 Q. Okay. So the internal customer ID, how is
23 that created?
24 A. That is created at the time of
25 registration of the partner/customer.

1 Q. Okay. And do you have to have an internal
2 customer ID first before you can get a merchant ID;
3 is that correct?
4 A. Yes.
5 Q. Okay. And the internal customer ID, is
6 that created in Lighthouse Transaction Manager?
7 A. Yes.

15 it to?
16 A. This is to be used for integration and also
17 to assist our support team to troubleshoot production
18 issues.
19 Q. Okay. And what is production?
20 A. Live transactions.
21 Q. Okay. Does Shift4 have access to
22 CardConnect's production environment?
23 A. No.
24 Q. Okay. So is it a one-way sync that goes
25 from CardConnect's production environment to the

1 Shift4 Staging Mirror database?
2 A. Yes.
3 Q. Okay. So a mirror, what do you mean by
4 that?
5 A. A mirror is a copy of the data. It is not,
6 per se, a sync.
7 Q. Okay.
8 A. But it is a point-in-time copy of data that
9 is made every so often.
10 Q. Okay. So it's not a live sync, but
11 rather just copies data from time to time?
12 A. That is correct.