• Agreement of STEM Group LLC 840 1st Avenue; Suite 400, King of Prussia, PA 19406
• 3210 Equity Accelerator does not replace your homeowner’s insurance and is not insurance of any kind.

MORTGAGE ACCELERATION PAYMENT ACCUMULATION:

• All Equity Acceleration payments will be applied directly to the mortgage principal until the mortgage is paid off.
• Equity Acceleration payments will be applied quarterly (4 times a year) in a time/value vesting model.
• Cash payout is not available.
• Each use of the Equity Preservation Benefit will diminish the speed of the mortgage payoff.
• The subscriber will continue to pay the mortgage, real estate taxes, school tax, utilities, HOA fees, etc. – everything that an owner would normally pay. Failure to do so will result in termination of 3210 membership.
• Equity Acceleration may incur a tax event for the property owner.

SUBSCRIPTION PAYMENT CALCULATOR:

• Subscription payment is calculated by remaining mortgage debt X 0.00117
  • For example: A mortgage balance of $350,000 will require a $410 monthly payment for the life of the subscription.
• All subscription payments will occur on the 1st of every month.
• Initial payment will be applied to the current month if made before the 15th and applied to the following month if made after the 15th.
• Mortgage balance is discovered by the most current mortgage statement that will be put on file with STEM Group LLC.
• All mortgage principal distribution payments are managed by STEM Group LLC.
• If the mortgage is sold to another lender, the subscriber will be required to update STEM Group LLC with the new lender information by sending a current mortgage statement to STEM Group LLC: 840 1st Avenue, Suite 400, King of Prussia, PA 19406. If an Equity Acceleration payment is returned, the subscriber will be notified, and the payment will be added to the following quarter’s payment.

REFINANCING:

• If the subscriber refinances their mortgage, the subscription position will be determined by the refinance amount. If the refinance does not exceed the remaining balance the subscription will remain unchanged. If the refinance increases the principal amount the subscription will be recalculated, and the subscriber’s new vesting period will begin.
  • Two examples:
    • A subscriber starts with a $350,000 loan. After some years the principal balance has been reduced to $100,000. The subscriber refinances only the remaining balance of $100,000. The original subscription will remain in place.
    • A subscriber starts with a $350,000 loan. After some years the principal balance has been reduced to $100,000. The subscriber refinances a new loan of $350,000. The payment will be recalculated at the new amount and the vesting period will reset.

SUBSCRIPTION COMPLETION:

• Once the final Equity Acceleration payment is made and the subscriber’s mortgage is paid off, the subscription will end. No further monthly payments will be due from the subscriber and no further quarterly payments will be made to the mortgage company.

EQUITY PRESERVATION BENIFIT:

• Equity Preservation Benefit is not intended to replace homeowner’s insurance.
• Subscriber will be reimbursed for all “out of pocket” payments made directly to vendors for repairs or replacement of failed, covered, systems.
• Replacement is not restricted to the original product or purchase amount.
• Customer can select the desired replacement and can get it installed.
• The annual allowance for failed system repair or replacement is 3% of the original mortgage value.
  • For example: If the mortgage amount at beginning of subscription is $350,000, the subscriber will have an annual allowance of $10,500.00 (3%) for repairs or replacement.
• The 3% annual allowance will be fixed for the duration of the subscription.
• The reimbursement is a loan against future Mortgage Acceleration payments, which will be used to satisfy the reimbursement loan before being applied to remaining mortgage principal.
• The subscriber must be enrolled for 6 (six) months before any service request can be made.
• No system can be replaced more often than the manufacturer’s defined life expectancy.
  • For example: If a refrigerator’s life expectancy is 15 years, there will be no ability to replace a refrigerator twice during the life of the subscription.
• Major damage to the property such as a failing roof, collapsing foundation or “Acts of God” are not covered under 3210.
• Faulty new systems (lemons) will not be covered. Manufacturer’s and or vendor’s warranties will be responsible for these failures.

REQUESTING EQUITY PRESERVATION BENEFIT:

• The subscribers will coordinate their own repairs.
• Vendor Selection:
  • Subscribers will select their own vendor.
  • Subscribers will pay the vendor directly and be reimbursed by STEM Group LLC.
  • An original, valid invoice for services rendered will need to be uploaded to STEM Group LLC for reimbursement.

SUBSCRIPTION CANCELLATION:

• Members may cancel any time with written notice to STEM Group (see Defaulting section). Any subscription cancellation that occurs after the 1st of the month will be terminated on the 1st day of the following month. No payments will be refunded.

DEFAULTING:

• If the subscriber fails to make a monthly payment for any reason the agreement will be suspended.
• If the subscriber terminates in the first two years and repair or replacement charges have been incurred, the subscriber agrees that a lien will be applied to the subscriber’s property for these charges. Payment will continue until the outstanding balance is paid.

• For example: If a subscriber terminates after 1 year but they have just replaced their furnace, a lien will be placed against the property. The subscriber will continue to pay until the total amount of the furnace installation costs are paid, at which time the lien will be removed.

EQUITY PRESERVATION BENEFIT THAT ARE COVERED:

 
b. Not reimbursed:

DISPUTES:

• Any disputes arising out of or related to this Agreement shall be resolved through good faith negotiations between the parties. If the parties are unable to resolve any disputes within 30 days after the dispute arises, either party may initiate binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall be conducted by a single arbitrator selected by the parties or, if the parties are unable to agree on an arbitrator, by an arbitrator appointed by the American Arbitration Association. The arbitration shall be conducted in the English language and shall take place in the city where 3210 Equity Accelerator’s principal office is located. The parties shall bear their own costs and expenses, including attorney’s fees, of the arbitration, unless otherwise provided by law. Any arbitration award may be confirmed and enforced in any court of competent jurisdiction.

FORCE MAJEURE:

• Neither party shall be liable for any failure or delay in performance under this Agreement due to causes beyond its reasonable control, including, but not limited to, financial collapse, acts of God, war, strikes, embargoes, fires, floods, earthquakes, hurricanes, or other natural disasters.

HIGH INFLATION OR ECONOMIC DOWNTURN:

• In the event of an economic event that significantly affects the subscriber’s ability to make payments, the subscriber may request to temporarily pause their subscription payments. STEM Group will consider such requests in good faith. If an agreement cannot be reached, either party may choose to terminate the Agreement as per the terms outlined in the Defaulting section.

DATA CONFIDENTIALITY AND SECURITY:

• All personal data will be securely held by STEM Group LLC.
• We will never sell your personal data.
• All credit card information is held by the credit card processing companies.

CHANGES TO THE TERMS AND/OR SERVICE:

STEM Group LLC has the discretion to update the Terms at any time. When we do, we will revise the updated date at the bottom of this page. It is important that you frequently review the Terms for any changes to stay informed. By using the Service, you acknowledge and agree that it is your responsibility to review the Terms periodically to become aware of modifications. As our Service constantly evolves over time, we may change or discontinue all or any part of the Service, at any time and without notice, at our sole discretion.

OUR GUARANTEE: If your mortgage is not paid off in 10 years, we will refund you the difference between what you paid into the system and what has been paid out in your behalf (if any) and an additional $5,000.*

*10-year time-frame commences at sign-up. All subscription payments must be made for the duration of the 10-year period. Payment will be in the form of a one-time and final payment against your mortgage principal. Early termination voids the guarantee. Use of equity preservation benefit may extend pay-off beyond 10 years.