Brooke Capital Corporation Guaranty and Security Agreement dated June 19, 2008



 Exhibit 10.3 
 GUARANTY AND SECURITY AGREEMENT 
 This GUARANTY AND SECURITY AGREEMENT (this “Guaranty”) is
made as of the 19th day of June, 2008, by Brooke Capital Corporation, a Kansas corporation (the “Guarantor”), in favor of Autobahn Funding Company LLC, as Lender (the “Lender”), and DZ Bank AG Deutsche
Zentral-Genossenschaftsbank, as Agent (the “Agent”), in connection with that certain Amended and Restated Credit and Security Agreement, dated as of August 29, 2006, by and among Brooke Credit Funding, LLC, a Delaware limited
liability company, as Borrower (the “Borrower”), Aleritas Capital Corp., a Delaware corporation (f/k/a Brooke Credit Corporation) (“Brooke Credit”), as Seller and Subservicer, Brooke Corporation, a Kansas
corporation, as Master Agent Servicer and Performance Guarantor (the “Parent”), the Lender and the Agent. Such Amended and Restated Credit and Security Agreement, as it may be amended, restated, supplemented or otherwise modified
from time to time, is hereinafter referred to as the “Credit and Security Agreement”. 
 1. Definitions. Unless
otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Credit and Security Agreement. All terms defined in Article 9 of the UCC in the State of New York as in effect on the date hereof, and not
specifically defined herein or in the Credit and Security Agreement, are used herein as defined in such Article 9. In addition, the following terms have the following meanings (such meanings to be equally applicable to both the singular and the
plural forms of the terms defined): 
 “Brooke Obligations” means all present and future indebtedness and other liabilities
and obligations (howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, or due or to become due) of Brooke Credit and/or the Parent to the Lender, the Agent and/or any other Secured Party, arising under or in
connection with the Performance Guaranty, the Sale and Servicing Agreement, the Credit and Security Agreement or any other Related Document or the transactions contemplated hereby or thereby and shall include, without limitation, all liability for
costs, expenses, indemnifications, repurchase obligations and all other amounts due or to become due from Brooke Credit or the Parent under the Related Documents, including, without limitation, interest, fees and other obligations that accrue after
the commencement of a bankruptcy, insolvency or similar proceeding (in each case whether or not allowed as a claim in such proceeding). 
 “Collateral” has the meaning specified in Section 2(ii). 
 2. Guaranty. (i) For value received,
and in consideration of the waivers granted by the Agent and the Lender pursuant to the amendment to the Credit Agreement of even date herewith (from which the Guarantor will derive substantial direct and indirect benefit), the Guarantor
unconditionally guarantees for the benefit of the Secured Parties the full and prompt payment when due, whether at maturity or earlier, by reason of acceleration or otherwise, and at all times thereafter, of all the Brooke Obligations now or
hereafter existing under the Performance Guaranty, the Sale and Servicing Agreement, the Credit and Security Agreement or 

  

 Signature Page to 
 Guaranty and Security Agreement 








 
any other Related Document; provided that the aggregate amount of payments made by the Guarantor hereunder in respect of the Brooke Obligations at the
request of the Agent or the Lender shall not exceed $25,000,000. In addition, the Guarantor shall pay to the Agent and the Lender on demand and in immediately available funds an amount equal to all reasonable fees, costs and expenses (including,
without limitation, all court costs and attorneys’ and paralegals’ fees, costs and expenses) paid or incurred by the Agent or the Lender in: (1) endeavoring to collect all or any part of the Brooke Obligations from, or in prosecuting
any action against, the Guarantor relating to this Guaranty or any other Related Document or the transactions contemplated hereby or thereby; (2) taking any action with respect to any security or collateral securing the Brooke Obligations or
the Guarantor’s obligations hereunder; or (3) preserving, protecting or defending the enforceability of, or enforcing, this Guaranty or its rights hereunder. In addition, the Guarantor further agrees to pay to the Agent and the Lender, on
demand and in immediately available funds, interest on any amount due hereunder, from the date of demand under this Guaranty until paid in full at the Base Rate plus 2% (the “Interest Rate”). The Guarantor hereby agrees that this
Guaranty is an absolute guaranty of payment and is not a guaranty of collection. 
 (ii) To secure the payment and performance by the
Guarantor of all of the covenants and obligations to be paid or performed by it pursuant to this Guaranty and each other Related Document, the Guarantor hereby grants to the Agent, on behalf of the Secured Parties (and their respective successors
and assigns), a security interest in all of the Guarantor’s right, title and interest in and to all of the following property and interests in property (collectively, the “Collateral”), in each case whether tangible or
intangible and whether now owned or existing or hereafter arising or acquired and wheresoever located: 
 (a) all right, title
and interest of the Guarantor in, to and under all Brooke Franchise Agreements now or hereafter existing, including, without limitation, all moneys due and to become due under or in connection with any such Brooke Franchise Agreement (whether in
respect of Sales Commissions, fees, expenses, indemnities or otherwise); 
 (b) all other accounts, equipment, inventory,
general intangibles, payment intangibles, instruments, investment property, documents, chattel paper, goods, moneys, letters of credit, letter of credit rights, certificates of deposit, deposit accounts and all other property and interests in
property of the Guarantor, whether tangible or intangible, whether real property or personal property and whether now owned or existing or hereafter arising or acquired and wheresoever located; and 
 (c) all proceeds of the foregoing property described in clauses (a) and (b) above, including, without limitation, proceeds which
constitute property of the type described in clauses (a) and (b) above and, to the extent not otherwise included, all (i) payments under any insurance policy (whether or not the Agent or the Lender is the loss payee thereof),
indemnity, warranty or guaranty payable by reason of loss or damage to or otherwise with respect to any of the foregoing and (ii) interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for or on account of the sale or other disposition of any or all of the then existing Collateral. 







 (iii) Upon the occurrence of an Event of Default or a default in respect of any obligation of the
Guarantor to be performed by it pursuant to this Guaranty or any other Related Document, the Agent shall have, in addition to all other rights and remedies under this Guaranty or otherwise, all other rights and remedies provided to a secured party
under the UCC of the applicable jurisdiction and other applicable laws, which rights shall be cumulative. The rights and remedies of a secured party which may be exercised by the Agent shall include, without limitation, the right, without notice
except as specified below, to solicit and accept bids for and sell the Collateral or any part thereof in one or more parcels at a public or private sale, at any exchange, broker’s board or at any of the Agent’s offices or elsewhere, for
cash, on credit or for future delivery, and upon such other terms as the Agent may deem commercially reasonable. The Guarantor agrees that, to the extent notice of sale shall be required by law, 10 days’ notice to the Guarantor of the time and
place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification and that it shall be commercially reasonable for the Agent to sell the Collateral on an “as is” basis, without
representation or warranty of any kind. The Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given and may adjourn any public or private sale from time to time by announcement at the time and place
fixed therefore, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 
 3. Obligations
Unconditional. The Guarantor hereby agrees that its obligations under this Guaranty shall be unconditional, irrespective of: 
 (i) the
validity, enforceability, avoidance or subordination of any of the Brooke Obligations or any of the Related Documents; 
 (ii) the absence of
any attempt by, or on behalf of, the Lender or the Agent to collect, or to take any other action to enforce, all or any part of the Brooke Obligations whether from or against Brooke Credit or the Parent, any other guarantor of the Brooke Obligations
or any other party; 
 (iii) the election of any remedy by, or on behalf of, the Lender or the Agent with respect to all or any part of the
Brooke Obligations; 
 (iv) the waiver, amendment, consent, extension, forbearance or granting of any indulgence by, or on behalf of, the
Lender or the Agent with respect to any provision of any of the Related Documents; 
 (v) the failure of the Lender or the Agent to take any
steps to perfect and maintain its security interest in, or to preserve its rights to, any security or collateral for the Brooke Obligations or any rights as against any other guarantor of the Brooke Obligations or any release of any collateral
security for or release of any other guarantor in respect of the Brooke Obligations; 
 (vi) the election by, or on behalf of, the
Lender or the Agent, in any proceeding instituted under Chapter 11 of Title 11 of the United States Code (11 U.S.C. 101 et seq.) (the “Bankruptcy Code”), of the application of Section 1111(b)(2) of the Bankruptcy
Code; 







 (vii) any borrowing or grant of a security interest by Brooke Credit or the Parent, as a
debtor-in-possession, under Section 364 of the Bankruptcy Code; 
 (viii) the disallowance, under Section 502 of the Bankruptcy
Code, of all or any portion of the claims of the Lender or the Agent for repayment of all or any part of the Brooke Obligations, including any amount due hereunder; or 
 (ix) any actual or alleged fraud by any party (other than the Lender or the Agent); or 
 (x) any other
circumstance which might otherwise constitute a legal or equitable discharge or defense of Brooke Credit, the Parent or a guarantor (other than the defense of payment or performance). 
 4. Guarantor Representations and Warranties. The Guarantor represents and warrants as follows: 
 (i) Corporate Existence and Power. The Guarantor is a corporation duly incorporated, validly existing and in good standing under the laws of the
State of Kansas, and has all necessary powers and all governmental licenses, authorizations, consents and approvals required to carry on its business in each jurisdiction in which the nature of its business requires such authorization, except for
any such governmental license, authorization, consent or approval the absence of which would not be reasonably likely to have a Material Adverse Effect. 
 (ii) No Conflict. The execution, delivery and performance by the Guarantor of this Guaranty and each other Related Document to which it is a party are within the powers granted by the Guarantor’s
organizational documents, have been duly authorized by all necessary action, do not contravene or violate (i) its organizational documents, (ii) any law, rule or regulation applicable to it in any material respect, (iii) any
restrictions under any material agreement, contract or instrument to which it is a party or by which it or any of its property is bound, or (iv) any order, writ, judgment, award, injunction or decree binding on or affecting it or its property,
and do not result in the creation or imposition of any Adverse Claim on assets of the Guarantor. This Guaranty and each other Related Document to which the Guarantor is named as a party has been duly authorized, executed and delivered by the
Guarantor. 
 (iii) Governmental Authorization. Other than the filing of the financing statements required hereunder, no authorization
or approval or other action by, and no notice to or filing with, any Governmental Authority is required for the due execution, delivery and performance by the Guarantor of the Related Documents to which it is a party. No injunction, writ,
restraining order or other order of any nature adversely affects the Guarantor’s performance of its obligations under this Guaranty or any other Related Document to which it is a party. 
 (iv) Binding Effect. The Related Documents to which the Guarantor is a party constitute its legal, valid and binding obligations enforceable
against the Guarantor in accordance with their respective terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting creditors’ rights generally.








 (v) Accuracy of Information. All information heretofore furnished by the Guarantor or any of its
Affiliates to the Agent in writing for purposes of or in connection with this Guaranty, any of the other Related Documents or any transaction contemplated hereby or thereby is, and all such information hereafter furnished by the Guarantor or any of
its Affiliates to the Agent in writing will be, true and accurate in all material respects, on the date as of which such information is stated or certified and does not and will not contain any material misstatement of fact or omit to state a
material fact or any fact necessary to make the statements contained therein, taken as a whole and in context, not misleading. 
 (vi)
Actions, Suits. There are no actions, suits or proceedings pending or, to its knowledge, threatened against or adversely affecting the Guarantor or any of its properties, in or before any court, arbitrator or other body, which, if adversely
determined, would be reasonably likely to have a Material Adverse Effect. The Guarantor is not in default with respect to any order of any court, arbitrator or governmental body. 
 (vii) Security Interest. This Agreement, together with the financing statements filed on or prior to the date hereof, is effective to create a
valid and perfected first priority security interest (subject only to the Permitted Columbian Bank Lien and the Permitted FLAC Lien) in (i) all Brooke Franchise Agreements in which the Guarantor has acquired or may hereafter acquire an interest
and (ii) all other Collateral now existing or hereafter arising or acquired. 
 (viii) Not an Investment Company. The Guarantor
is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended from time to time, or any successor statute. 
 (ix) Taxes. The Guarantor has paid when due all taxes payable by it other than those taxes which are being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained in accordance with GAAP. The Guarantor has filed (on a consolidated basis or otherwise) on a timely basis all tax returns (including, without limitation, all foreign, federal,
state, local and other tax returns) required to be filed and is not liable for taxes payable by any other Person. No tax lien or similar adverse claim has been filed, and no claim is being asserted, with respect to any such tax, assessment or other
governmental charge. 
 (x) Places of Business; Jurisdiction of Incorporation. The principal places of business and chief executive
office of the Guarantor and the offices where the Guarantor keeps all its Records are located at the address(es) listed on Exhibit I hereto. The Federal Employer Identification Number for the Guarantor is correctly set forth on Exhibit I hereto. The
Guarantor’s sole jurisdiction of incorporation is the State of Kansas. 
 (xi) Names. In the past five years, the Guarantor has
not used any legal names, trade names or assumed names other than Brooke Capital Corporation and has not engaged in any merger or consolidation, except as set forth on Exhibit I hereto. 
 (xii) Solvency. The Guarantor is solvent and will not become insolvent after giving effect to the transactions contemplated hereby; the Guarantor
is able to pay its debts as they become due; and the Guarantor, after giving effect to the transactions contemplated hereby, will have adequate capital to conduct its business. 







 (xiii) ERISA. The Guarantor is in compliance in all material respects with ERISA and has not
incurred and does not expect to incur any liabilities to the Pension Benefit Guaranty Corporation (or any successor thereto) under ERISA. 
 5. Affirmative Covenants of the Guarantor. Until the Final Payout Date, the Guarantor agrees that it will perform and observe its covenants and agreements set forth in this Section 5. 
 (i) Reporting. The Guarantor will maintain a system of accounting established and administered in accordance with GAAP, and will furnish to the
Agent: 
 (a) Annual Financial Reporting. Within 120 days after the close of each of its fiscal years, financial
statements for the Guarantor and its consolidated Subsidiaries for such fiscal year prepared in accordance with GAAP and certified in a manner acceptable to the Agent by independent public accountants acceptable to the Agent. 
 (b) Quarterly Reporting. Within 45 days after the close of each of the quarterly periods of each of its fiscal years, balance
sheets for the Guarantor and its consolidated Subsidiaries as at the close of each such period and statements of income and retained earnings and a statement of cash flows for the Guarantor and its consolidated Subsidiaries for the period from the
beginning of such fiscal year to the end of such quarter, all prepared in accordance with GAAP (subject to normal year-end adjustments and without footnotes) and certified by the Guarantor’s chief financial officer. 
 (c) S.E.C. Filings. Promptly upon the filing thereof, copies of all registration statements and annual, quarterly, monthly or other
regular reports which the Guarantor or any of their respective Affiliates files with the Securities and Exchange Commission if any of such Persons shall have a class of security that is publicly traded. 
 (d) Other Information. Such other information (including non-financial information) as the Agent or the Lender may from time to
time reasonably request. 
 (ii) Notices. The Guarantor will notify the Agent in writing of any of the following within one Business
Day of learning of the occurrence thereof, describing the same and, if applicable, the steps being taken with respect thereto: 
 (a) Judgment. The entry of any judgment or decree against the Guarantor or any of its Affiliates. 
 (b)
Litigation. The institution of any litigation, arbitration proceeding or governmental proceeding against the Guarantor or any of its Subsidiaries or to which the Guarantor or any of its Affiliates becomes a party if such litigation,
arbitration proceeding or governmental proceeding, if adversely determined against the Guarantor or any of its Affiliates, would be reasonably likely to have a Material Adverse Effect. 







 (iii) Compliance with Laws. The Guarantor will comply in all material respects with all applicable
laws, rules, regulations, orders writs, judgments, injunctions, decrees or awards to which it may be subject. 
 (iv) Information;
Compliance Reviews. The Guarantor will furnish to the Agent from time to time such information with respect to it and its Affiliates as the Agent may reasonably request. The Guarantor shall, from time to time during regular business hours as
requested by the Guarantor or the Agent permit the Agent, or any of their respective agents or representatives, at the Guarantor’s expense, (i) to examine and make copies of and abstracts from all Records in the possession or under the
control of the Guarantor relating to the Brooke Franchise Agreements and the other Collateral and (ii) to visit the offices and properties of the Guarantor and its Affiliates for the purpose of examining such materials described in clause
(i) above, and to discuss matters relating to the Guarantor’s financial condition or the Collateral or the Guarantor’s performance under the Brooke Franchise Agreements to which it is a party with any of the officers or employees of
the Guarantor or such Affiliates having knowledge of such matters. 
 (v) Taxes. The Guarantor will pay when due any taxes payable by
it other than those taxes which are being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained in accordance with GAAP. 
 (vi) Maintenance and Perfection of Collateral. The Guarantor will cause the Agent to have a first priority perfected security interest in all
Collateral (subject only to the Permitted Columbian Bank Lien and the Permitted FLAC Lien). To the extent the Guarantor has or acquires any real property or interest therein, the Guarantor shall promptly notify the Agent thereof in writing and will
furnish to the Agent all information that the Agent may reasonably request with respect thereto. If so requested by the Agent, the Guarantor will take all actions necessary or desirable, or that the Agent may reasonably request, in order to ensure
that the Agent has a first priority perfected lien on all such real property and interests in real property, including, without limitation, the execution and delivery of appropriate mortgages, deeds of trust or other similar instruments as
appropriate under the laws of the relevant jurisdiction where the real property is located. 
 6. Negative Covenants of Guarantor.
Until the Final Payout Date, the Guarantor agrees that it will perform and observe its covenants and agreements set forth in this Section 6. 
 (i) Name Change, Offices, Records and Books of Accounts. The Guarantor will not change its name, identity or corporate structure or relocate its chief executive office or jurisdiction of organization or any office where Records are
kept unless it shall have: (i) given the Agent at least 30 days prior notice thereof and (ii) delivered to the Agent all financing statements, instruments and other documents requested by the Agent in connection with such change or
relocation. The Guarantor will not change its jurisdiction of organization to a jurisdiction other than a State within the United States. 







 (ii) Merger. The Guarantor shall not merge or consolidate with or into, or convey, transfer, lease
or otherwise dispose of (whether in one transaction or in a series of transactions, and except as otherwise contemplated herein) all or any material part of its assets (whether now owned or hereafter acquired) to, or acquire all or any material part
of the assets of, any Person, or permit of any its Subsidiaries to do any of the foregoing, except as contemplated by the Related Documents. 
 (iii) Sales, Liens, Etc. The Guarantor shall not sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, or create or suffer to exist any Adverse Claim upon (including, without
limitation, the filing of any financing statement) or with respect to, any Collateral, or assign any right to receive income in respect thereof other than, in each case, the creation of the interests therein in favor of the Borrower, the Agent and
the Secured Parties provided for in the Related Documents, and the Guarantor shall defend the right, title and interest of the Agent and the Secured Parties in, to and under the Collateral, against all claims of third parties claiming through or
under the Guarantor. 
 (iv) Columbian Bank Debt. The Guarantor will not incur any Indebtedness owing to Columbian Bank and Trust
Company or any Affiliate thereof other than the Indebtedness owing by the Guarantor as of the date hereof in an aggregate principal amount less than or equal to $7,500,000. 
 7. Enforcement; Application of Payments. Upon the occurrence of an Event of Default, the Agent may proceed directly and at once, without notice,
against the Guarantor to obtain performance of and to collect and recover the full amount, or any portion, of the Brooke Obligations, without first proceeding against Brooke Credit or the Parent, any other guarantor or any other party, or against
any security or collateral for the Brooke Obligations. Subject only to the terms and provisions of the Credit and Security Agreement, the Agent shall have the exclusive right to determine the application of payments and credits, if any, from the
Guarantor, Brooke Credit, the Parent or any other guarantor or from any other party on account of the Brooke Obligations or any other liability of the Guarantor to the Secured Parties. 
 8. Waivers. (i) The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of
receivership or bankruptcy of Brooke Credit or the Parent, protest or notice with respect to the Brooke Obligations, all setoffs and counterclaims and all presentments, demands for performance, notices of nonperformance, protests, notices of
protest, notices of dishonor and notices of acceptance of this Guaranty, the benefits of all statutes of limitation, and all other demands whatsoever (and shall not require that the same be made on Brooke Credit or the Parent as a condition
precedent to the Guarantor’s obligations hereunder), and covenants that this Guaranty will not be discharged, except by complete payment (in cash) of the Brooke Obligations. The Guarantor further waives all notices of the existence, creation or
incurring of new or additional Brooke Obligations arising from the transactions contemplated by the Related Documents, and also waives all notices that the principal amount, or any portion thereof, and/or any interest on any instrument or document
evidencing all or any part of the Brooke Obligations is due, notices of any and all proceedings to collect from the maker, any endorser or any other guarantor of all or any part of the Brooke Obligations, or from any other party, and, to the extent
permitted by law, notices of exchange, sale, surrender or other handling of any security or collateral given to the Agent to secure payment of all or any part of the Brooke Obligations. 







 (ii) The Agent is hereby authorized, without notice or demand and without affecting the liability of the
Guarantor hereunder, from time to time, (a) with the agreement of Brooke Credit or the Parent (if such agreement is required), to renew, extend, accelerate or otherwise change the time for payment of, or other terms relating to, all or any part
of the Brooke Obligations, or to otherwise modify, amend or change the terms of any of the Related Documents; (b) to accept partial payments on all or any part of the Brooke Obligations; (c) to take and hold security or collateral for the
payment of all or any part of the Brooke Obligations, this Guaranty, or any other guaranties of all or any part of the Brooke Obligations or other liabilities of Brooke Credit or the Parent, (d) to exchange, enforce, waive and release any such
security or collateral; (e) to apply such security or collateral and direct the order or manner of sale thereof as in its discretion it may determine; and (f) to settle, release, exchange, enforce, waive, compromise or collect or otherwise
liquidate all or any part of the Brooke Obligations, this Guaranty, any other guaranty of all or any part of the Brooke Obligations, and any security or collateral for the Brooke Obligations or for any such guaranty. Any of the foregoing may be done
in any manner, without affecting or impairing the obligations of the Guarantor hereunder. 
 9. Setoff. At any time after all or any
part of the Brooke Obligations have become due and payable (by acceleration or otherwise), the Agent may setoff and apply toward the payment of all or any part of the Brooke Obligations any moneys, credits or other property belonging to the
Guarantor, at any time held by or coming into the possession of the Agent or its affiliates. 
 10. Financial Information. The
Guarantor hereby assumes responsibility for keeping itself informed of the financial condition of Brooke Credit and the Parent and any and all endorsers and/or other guarantors of all or any part of the Brooke Obligations, and of all other
circumstances bearing upon the risk of nonpayment of the Brooke Obligations, or any part thereof, that diligent inquiry would reveal, and the Guarantor hereby agrees that neither the Lender nor the Agent shall have any duty to advise the Guarantor
of information known to it regarding such condition or any such circumstances. In the event either the Lender or the Agent, in its sole discretion, undertakes at any time or from time to time to provide any such information to the Guarantor, neither
the Lender nor the Agent shall be under any obligation (i) to undertake any investigation not a part of its regular business routine, (ii) to disclose any information which the Lender or the Agent, pursuant to accepted or reasonable
commercial finance or banking practices, wishes to maintain confidential or (iii) to make any other or future disclosures of such information or any other information to the Guarantor. 
 11. No Marshalling; Reinstatement. The Guarantor consents and agrees that none of the Lender, the Agent nor any party acting for or on behalf of
the Lender or the Agent shall be under any obligation to marshall any assets in favor of the Guarantor or against or in payment of any or all of the Brooke Obligations. The Guarantor further agrees that, to the extent that Brooke Credit, the Parent,
the Guarantor or any other guarantor of all or any part of the Brooke Obligations makes a payment or payments to the Agent, or the Agent receives any proceeds of Collateral for the Brooke Obligations, which payment or payments or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or 








 
required to be repaid to Brooke Credit, the Parent, the Guarantor, such other guarantor or any other party, or their respective estates, trustees, receivers
or any other party, including, without limitation, the Guarantor, under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or repayment, the part of the Brooke Obligations which has been
paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect as of the time immediately preceding such initial payment, reduction or satisfaction. 
 12. Subrogation. Until the Brooke Obligations have been paid in full, the Guarantor (i) shall have no right of subrogation with respect to
such Brooke Obligations and (ii) waives any right to enforce any remedy which the Lender or the Agent now has or may hereafter have against Brooke Credit, the Parent, any endorser or any guarantor of all or any part of the Brooke Obligations or
any other party, and the Guarantor waives any benefit of, and any right to participate in, any security or collateral given to the Agent to secure the payment or performance of all or any part of the Brooke Obligations or any other liability of
Brooke Credit or the Parent to the Lender or the Agent. 
 13. Subordination. (i) The Guarantor agrees that any and all claims of
the Guarantor against Brooke Credit or the Parent, any endorser or any other guarantor of all or any part of the Brooke Obligations, or against any of their respective properties (collectively, the “Subordinated Indebtedness”),
shall be subordinate and subject in right of payment to the prior payment, in full and in cash, of all Brooke Obligations; provided, however, that prior to the occurrence of any Event of Default, the Guarantor shall have the right to
ask, demand, sue for, take or receive any payment or distribution in respect of the Subordinated Indebtedness from Brooke Credit or the Parent. Notwithstanding any right of the Guarantor to ask, demand, sue for, take or receive any payment in
respect of the Subordinated Indebtedness from Brooke Credit or the Parent, all rights, liens and security interests of the Guarantor, whether now or hereafter arising and howsoever existing, in any asset of Brooke Credit or the Parent (whether
constituting part of the security or collateral given to the Agent to secure payment of all or any part of the Brooke Obligations or otherwise) shall be and hereby are subordinated to the rights of the Lender and the Agent in such asset. 

(ii) From and after the occurrence of any Event of Default: 
 (a) The Guarantor shall have no right to possession of any asset of Brooke Credit or the Parent or to foreclose upon any such asset,
whether by judicial action or otherwise, unless and until all of the Brooke Obligations shall have been fully paid and satisfied and all financing arrangements between the Borrower, the Agent and the Lender have been terminated. 
 (b) If all or any part of the assets of Brooke Credit or the Parent, or the proceeds thereof, are subject to any distribution, division or
application to the creditors of Brooke Credit or the Parent, whether partial or complete, voluntary or involuntary, and whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any other
action or proceeding, or if the business of Brooke Credit or the Parent is dissolved or if substantially all of the assets of Brooke Credit or the Parent are sold, then, and in any such event, any payment or distribution of any kind 








 
or character, either in cash, securities or other property, which shall be payable or deliverable upon or with respect to any of the Subordinated
Indebtedness shall be paid or delivered directly to the Agent for application to payments due hereunder. 
 (c) The Guarantor
hereby irrevocably authorizes and empowers the Agent (as a present grant, effective the date hereof and subject only to the condition that an Event of Default exists) in respect of the Subordinated Indebtedness to demand, sue for, collect and
receive every payment or distribution thereon and give acquittance therefor and to make and present for and on behalf of the Guarantor such proofs of claim and take such other action, in the Agent’s own name or in the name of the Guarantor or
otherwise, as the Agent may deem necessary or advisable for the enforcement of this Guaranty. The Agent may vote such proofs of claim in any such proceeding, receive and collect any and all dividends or other payments or disbursements made thereon
in whatever form the same may be paid or issued and apply the same on account of any unpaid Brooke Obligation. 
 (d) Should
any payment, distribution, security or instrument or proceeds of any of the foregoing be received by the Guarantor upon or with respect to the Subordinated Indebtedness following the occurrence of an Event of Default and prior to the satisfaction of
all of the Brooke Obligations and the termination of all financing arrangements between the Borrower and the Lender, the Guarantor shall (to the extent of unpaid Brooke Obligations) receive and hold the same in trust, as trustee, for the benefit of
the Agent and shall forthwith deliver the same to the Agent, in precisely the form received (except for the endorsement or assignment of the Guarantor where necessary), for application to any of the Brooke Obligations, due or not due, and, until so
delivered, the same shall be held in trust by the Guarantor as the property of the Agent. If the Guarantor fails to make any such endorsement or assignment to the Agent, the Agent or any of its officers or employees are hereby irrevocably authorized
to make the same. 
 (iii) The Guarantor agrees that until the Brooke Obligations have been paid in full (in cash) and satisfied (except for
contingent indemnification obligations) and all financing arrangements between the Borrower and the Lender have been terminated, the Guarantor will not assign or transfer to any other party any claim the Guarantor has or may have against Brooke
Credit or the Parent, without the prior written consent of the Agent. 
 14. Enforcement; Amendments; Waivers. No delay on the part of
the Lender or the Agent in the exercise of any right or remedy arising under this Guaranty, the Credit and Security Agreement, any of the other Related Documents or otherwise with respect to all or any part of the Brooke Obligations, the Collateral
or any other guaranty of or security for all or any part of the Brooke Obligations shall operate as a waiver thereof, and no single or partial exercise by the Lender or the Agent of any such right or remedy shall preclude any further exercise
thereof. No modification or waiver of any of the provisions of this Guaranty shall be binding upon the Lender or the Agent, except as expressly set forth in a writing duly signed and delivered by the Lender or the Agent (as applicable). Failure by
the Lender or the Agent at any time or times hereafter to require strict performance by Brooke Credit, the Parent, the Guarantor, any other guarantor of all or any part of the Brooke Obligations or any other party of any of the provisions,
warranties, terms and conditions contained in any of the Related Documents now or 








 
at any time or times hereafter executed by such parties and delivered to the Lender or the Agent shall not waive, affect or diminish any right of the Lender
or the Agent at any time or times hereafter to demand strict performance thereof and such right shall not be deemed to have been waived by any act or knowledge of the Lender, the Agent, or their respective agents, officers or employees, unless such
waiver is contained in an instrument in writing, directed and delivered to Brooke Credit, the Parent or the Guarantor, as applicable, specifying such waiver, and is signed by the Lender or the Agent (as applicable). No waiver of any Event of Default
by the Lender or the Agent shall operate as a waiver of any other Event of Default or the same Event of Default on a future occasion, and no action by the Lender or the Agent permitted hereunder shall in any way affect or impair the Lender’s or
the Agent’s rights and remedies or the obligations of the Guarantor under this Guaranty. Any determination by a court of competent jurisdiction of the amount of any principal and/or interest owing by Brooke Credit or the Parent to the Lender or
the Agent shall be conclusive and binding on the Guarantor irrespective of whether the Guarantor was a party to the suit or action in which such determination was made. 
 15. Effectiveness; Termination. This Guaranty shall become effective upon its execution by the Guarantor and shall continue in full force and effect and may not be terminated or otherwise revoked until the
Final Payout Date. If, notwithstanding the foregoing, the Guarantor shall have any right under applicable law to terminate or revoke this Guaranty, the Guarantor agrees that such termination or revocation shall not be effective until a written
notice of such revocation or termination, specifically referring hereto, signed by the Guarantor, is actually received by the Agent. Such notice shall not affect the right and power of the Lender or the Agent to enforce rights arising prior to
receipt thereof by the Agent. If the Lender grants loans or takes other action after the Guarantor terminates or revokes this Guaranty but before the Agent receives such written notice, the rights of the Agent with respect thereto shall be the same
as if such termination or revocation had not occurred. 
 16. Successors and Assigns. This Guaranty shall be binding upon the
Guarantor and upon its successors and assigns and shall inure to the benefit of the Lender and the Agent and their respective successors and assigns; all references herein to the Borrower, to Brooke Credit, to the Parent, to the Lender, to the Agent
and to the Guarantor shall be deemed to include their respective successors and assigns; provided that the Guarantor may not assign any of its rights or obligations hereunder without the prior written consent of the Lender and the Agent. The
successors of the Guarantor, Brooke Credit and the Parent shall include, without limitation, their respective receivers, trustees, debtors-in-possession or successor trustees. 
 17. GOVERNING LAW. ANY DISPUTE AMONG THE LENDER, THE AGENT OR THE GUARANTOR ARISING OUT OF OR RELATED TO THE RELATIONSHIP ESTABLISHED AMONG THEM
IN CONNECTION WITH THIS GUARANTY, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 







 18. CONSENT TO JURISDICTION; COUNTERCLAIMS; FORUM NON CONVENIENS. (a) EXCLUSIVE
JURISDICTION. EXCEPT AS PROVIDED IN SUBSECTION (b) OF THIS SECTION 18, THE AGENT, THE LENDER AND THE GUARANTOR AGREE THAT ALL DISPUTES BETWEEN THEM ARISING OUT OF OR RELATED TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH
THIS GUARANTY, WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED ONLY BY FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK OR, TO THE EXTENT SUCH COURTS LACK JURISDICTION, STATE COURTS LOCATED IN NEW YORK, NEW YORK, BUT THE
PARTIES ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK, NEW YORK. 
 (b) OTHER
JURISDICTIONS. THE AGENT SHALL HAVE THE RIGHT TO PROCEED AGAINST THE GUARANTOR OR ITS REAL OR PERSONAL PROPERTY IN A COURT IN ANY LOCATION TO ENABLE THE AGENT TO OBTAIN PERSONAL JURISDICTION OVER THE GUARANTOR OR TO ENFORCE A JUDGMENT OR OTHER
COURT ORDER ENTERED IN FAVOR OF THE AGENT. THE GUARANTOR SHALL NOT ASSERT ANY PERMISSIVE COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY THE AGENT ARISING OUT OF OR RELATING TO THIS GUARANTY. 
 (c) VENUE; FORUM NON CONVENIENS. EACH OF THE GUARANTOR, THE AGENT AND THE LENDER WAIVES ANY OBJECTION THAT IT MAY HAVE (INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON FORUM NON CONVENIENS) TO THE LOCATION OF THE COURT IN WHICH ANY PROCEEDING IS COMMENCED IN ACCORDANCE WITH THIS SECTION 18. 
 19. SERVICE OF PROCESS. THE GUARANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE GUARANTOR’S NOTICE ADDRESS SPECIFIED BELOW, SUCH SERVICE TO BECOME EFFECTIVE FIVE (5) DAYS AFTER SUCH MAILING. 

20. WAIVER OF JURY TRIAL. EACH OF THE GUARANTOR, THE AGENT AND THE LENDER WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG THE LENDER, THE AGENT OR THE GUARANTOR ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS GUARANTY OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH. ANY OF THE AGENT, THE GUARANTOR OR THE LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS GUARANTY WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 21. Further Assurances. If the Guarantor fails to perform any of its obligations hereunder, the Agent may (but shall not be
required to) perform, or cause performance of, such obligation; and the Agent’s reasonable costs and expenses incurred in connection therewith shall 








 
be payable by the Guarantor. The Guarantor irrevocably authorizes the Agent at any time and from time to time in the sole discretion of the Agent, and
appoints the Agent as its attorney-in-fact, to act on behalf of the Guarantor (i) to execute on behalf of the Guarantor as debtor and to file financing statements necessary or desirable in the Agent’s sole discretion to perfect and to
maintain the perfection and priority of the interest of the Agent in the Collateral and (ii) to file a carbon, photographic or other reproduction of this Guaranty or any financing statement with respect to the Collateral as a financing
statement in such offices as the Agent in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the interests of the Agent in the Collateral. This appointment is coupled with an interest and is
irrevocable. The Guarantor hereby authorizes the Agent to file one or more financing statements against the Guarantor in such jurisdictions as the Agent may select identifying the collateral as “all assets”, “all property” or
words of similar import. 
 22. Waiver of Bond. The Guarantor waives the posting of any bond otherwise required of the Agent or the
Lender in connection with any judicial process or proceeding to enforce any judgment or other court order entered in favor of the Agent or the Lender, or to enforce by specific performance, temporary restraining order, or preliminary or permanent
injunction, this Guaranty or any other agreement or document among any of the Agent, the Lender or the Guarantor. 
 23. Advice of
Counsel. The Guarantor represents and warrants to the Agent and the Lender that he has discussed this Guaranty and, specifically, the provisions of Sections 17 through 21 hereof, with its lawyers. 
 24. Notices. All notices and other communications required or desired to be served, given or delivered hereunder shall be in writing or by a
telecommunications device capable of creating a printed record and shall be addressed to the party to be notified as follows: 
 if to the
Guarantor, at: 
 Brooke Capital Corporation 
 10950 Grandview Drive, Suite 600 
 Overland Park, Kansas 66210 
 Attention: President 
 Telephone:
(913) 661-0123 
 Facsimile: (913) 339-6328 
 if to the Lender, at: 
 Autobahn Funding Company LLC 
 c/o DZ BANK AG Deutsche 
 Zentral-Genossenschaftsbank 
 New York Branch 
 609 5th Avenue 
 New York, New York 10017-1021 
 Attention: Asset Securitization Group 
 Telecopy: (212) 745-1651 







 if to the Agent, at: 
 DZ BANK AG Deutsche 
 Zentral-Genossenschaftsbank 
 New York Branch 
 609 5th Avenue 

New York, New York 10017-1021 
 Attention:
Asset Securitization Group 
 Telecopy: (212) 745-1651 
 or, as to each party, at such other address as designated by such party in a written notice to the other party. All such notices and communications shall be deemed to be validly served, given or delivered
(i) three (3) days following deposit in the United States mails, with proper postage prepaid; (ii) upon delivery thereof if delivered by hand to the party to be notified; (iii) upon delivery thereof to a reputable overnight
courier service, with delivery charges prepaid; or (iv) upon confirmation of receipt thereof if transmitted by a telecommunications device. 
 25. Severability. Wherever possible, each provision of this Guaranty shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Guaranty shall be prohibited by or invalid under
such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Guaranty. 
 26. Merger. This Guaranty represents the final agreement of the Guarantor with respect to the matters contained herein and may not be contradicted
by evidence of prior or contemporaneous agreements, or subsequent oral agreements, among any of the Agent, the Guarantor and the Lender. 
 27. Execution in Counterparts. This Guaranty may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Guaranty by facsimile shall be effective as delivery of a manually executed counterpart of this Guaranty. 
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