Document:

Purchase Agreement

 Exhibit 10.1 
 PURCHASE AGREEMENT 
 between 

TWO MAIN DEVELOPMENT LLC, 
 a Delaware limited liability company 
 and 

AMERICAN ASSETS TRUST, L.P., a Maryland 
 limited partnership 
 March 1, 2011 

First and Main 

100 SW Main Street 

Portland, Oregon 97204 

  
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 AGREEMENT OF PURCHASE AND SALE 

SUMMARY OF CERTAIN TERMS 
  

			
	 Effective Date:
	  	March 1, 2011
		
	 Seller:
	  	Two Main Development LLC, a Delaware limited liability company
		
	 Seller’s Address:
	  	 Two Main Development LLC

c/o Shorenstein Properties LLC
 235 Montgomery
Street, 16th Floor

San Francisco, California 94104
 Attention:
Andrew Friedman
 Telephone: (415) 772-7174
 Facsimile: (415) 765-9080
 Email: afriedman@shorenstein.com

 
 with a copy to:

 
 Shorenstein Properties LLC
 235 Montgomery Street, 15th Floor
 San Francisco, California 94104
 Attention: Corporate Secretary
 Telephone: (415) 772-7017

Facsimile: (415) 772-7080
  

with copy to:
  
 Pillsbury Winthrop Shaw Pittman LLP
 50 Fremont Street

San Francisco, California 94105
 Attention:
Stephen M. Wright, Esq.
 Telephone: (415) 983-1188
 Facsimile: (415) 983-1200
 Email: stephen.wright@pillsburylaw.com

		
	 Buyer:
	  	American Assets Trust, L.P., a Maryland limited partnership
		
	 Buyer’s Address:
	  	 American Assets Trust, L.P.

c/o American Assets Trust, Inc.
 11455 El Camino
Real, Suite 200
 San Diego, California 92130
 Attention: Mr. John Chamberlain
 Telephone: (858) 350-2600

Facsimile: (858) 350-2620

  
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	With a copy to:	  	 American Assets Trust, L.P.

c/o American Assets Trust, Inc.
 11455 El Camino
Real, Suite 200
 San Diego, California 92130
 Attention: Adam Wyll, Esq.
 Telephone: (858) 350-2600

Facsimile: (858) 350-2620

		
	With a copy by email to:	  	gis@smclawoffices.com
		
	Real Property:	  	100 SW Main Street, Portland, Oregon 97204
		
	Purchase Price:	  	$129,434,224
		
	Initial Deposit:	  	$1,000,000
		
	Additional Deposit:	  	$4,000,000
		
	Approval Date:	  	March 4, 2011
		
	Seller Representative:	  	Andrew Friedman
		
	Buyer Representative:	  	John Chamberlain
		
	Title Company:	  	Chicago Title Insurance Company
		
	Closing Date:	  	March 11, 2011

 Closing Cost Allocations: 

 

							
	Costs	  	Buyer	  	Seller	 
	 Title Insurance
	  	See Section 8.3	  			
	 Escrow Fees
	  	50%	  	 	50	% 
	 Recording Fees
	  	100%	  			
	 Survey Updates
	  	100%	  			
	 Transfer Tax
	  	See Section 8.3	  			

 The information provided in this summary of certain terms is provided as a convenience only. In the event of any
conflict between any information contained herein and the Agreement, the Agreement shall control. 

  
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 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE 1 Purchase and Sale
	  	 	6	  
	 1.1
	  	The Property	  	 	6	  
	 1.2
	  	Property Approval Period	  	 	7	  
	 ARTICLE 2 Purchase Price
	  	 	11	  
	 2.1
	  	Amount and Payment	  	 	11	  
	 2.2
	  	Deposit	  	 	11	  
	 2.3
	  	Liquidated Damages	  	 	11	  
	 2.4
	  	Seller Default	  	 	12	  
	 ARTICLE 3 Completion of Sale
	  	 	12	  
	 3.1
	  	Place and Date	  	 	12	  
	 ARTICLE 4 Title and Condition
	  	 	13	  
	 4.1
	  	Title to the Property	  	 	13	  
	 4.2
	  	Leases	  	 	13	  
	 4.3
	  	Personal Property	  	 	13	  
	 4.4
	  	Contracts	  	 	13	  
	 4.5
	  	Permits	  	 	13	  
	 4.6
	  	Acceptance of Title	  	 	13	  
	 4.7
	  	“AS IS” Sale	  	 	14	  
	 4.8
	  	Environmental Definitions	  	 	16	  
	 ARTICLE 5 Representations and Warranties
	  	 	17	  
	 5.1
	  	Seller	  	 	17	  
	 5.2
	  	Buyer	  	 	19	  
	 ARTICLE 6 Covenants
	  	 	19	  
	 6.1
	  	Seller	  	 	19	  
	 6.2
	  	Buyer	  	 	20	  
	 6.3
	  	Casualty Damage	  	 	21	  
	 6.4
	  	Eminent Domain	  	 	22	  
	 ARTICLE 7 Conditions Precedent
	  	 	22	  
	 7.1
	  	Seller	  	 	22	  
	 7.2
	  	Buyer	  	 	23	  
	 ARTICLE 8 Closing
	  	 	24	  
	 8.1
	  	Procedure	  	 	24	  
	 8.2
	  	Possession	  	 	25	  
	 8.3
	  	Closing Costs	  	 	25	  
	 8.4
	  	Prorations	  	 	25	  
	 8.5
	  	Tenant Reconciliations and Post-Closing Adjustments	  	 	26	  
	 8.6
	  	Post-Closing Access	  	 	27	  
	 ARTICLE 9 General
	  	 	27	  
	 9.1
	  	Notices	  	 	27	  
	 9.2
	  	Attorneys’ Fees	  	 	29	  

  
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	 9.3
	  	Governing Law	  	 	29	  
	 9.4
	  	Construction	  	 	29	  
	 9.5
	  	Terms Generally	  	 	29	  
	 9.6
	  	Further Assurances	  	 	29	  
	 9.7
	  	Partial Invalidity	  	 	29	  
	 9.8
	  	Waivers	  	 	29	  
	 9.9
	  	Miscellaneous	  	 	29	  
	 9.10
	  	Time is of the Essence	  	 	30	  
	 9.11
	  	Electronic Signatures	  	 	30	  
	 9.12
	  	Exculpation	  	 	30	  
	 9.13
	  	Or. Rev. Stat. § 93.040	  	 	31	  
	 9.14
	  	Like Kind Exchange	  	 	31	  
	 9.15
	  	Regulation 3-14 Cooperation	  	 	31	  

 EXHIBITS 

 

			
	 Exhibit A
	  	Bargain and Sale Deed
	 Exhibit B
	  	Assignment of Leases
	 Exhibit C
	  	Bill of Sale
	 Exhibit D
	  	Assignment of Contracts
	 Exhibit E
	  	Assignment of Permits
	 Exhibit F-1
	  	Tenant Estoppel Certificate
	 Exhibit F-2
	  	Seller’s Estoppel Certificate
	 Exhibit G
	  	Seller’s Closing Certificate
	 Exhibit H
	  	Buyer’s Closing Certificate
	 Exhibit I
	  	Certificate of Nonforeign Status

 SCHEDULES

  

			
	 Schedule 1
	  	Preliminary Report
	 Schedule 2
	  	Leases
	 Schedule 3
	  	Excluded Personal Property
	 Schedule 4
	  	Construction Contracts and Warranties
	 Schedule 5
	  	Service Contracts
	 Schedule 6
	  	List of Building, Engineering and Environmental Reports
	 Schedule 7
	  	Seller Disclosures
	 Schedule 8
	  	Security Deposits and Letter of Credit
	 Schedule 9
	  	Pending New Leases and Lease Amendments
	 Schedule 10
	  	Seller TI/LC Obligations

  
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 PURCHASE AGREEMENT 

THIS PURCHASE AGREEMENT (this “Agreement”), is entered into as of March 1, 2011, by and between TWO MAIN
DEVELOPMENT LLC, a Delaware limited liability company (“Seller”), and AMERICAN ASSETS TRUST, L.P., a Maryland limited partnership (“Buyer”). 
 W I T N E S S E T H: 
 In consideration of the covenants in this Agreement,
Seller and Buyer agree as follows: 
 ARTICLE 1 
 Purchase and Sale 
 1.1 The Property. Seller agrees to sell to Buyer
and Buyer agrees to purchase from Seller, in accordance with this Agreement, the following property (collectively, the “Property”): 
 (a) That certain real property commonly known as First and Main located at 100 SW Main Street, and all entitlements, rights-of-way, easements and similar interest benefiting such real property
(collectively, the “Real Property”), as more particularly described in preliminary report No. 472511488291TO-CTORM dated as of February 4, 2011 issued by Chicago Title Company and attached hereto as Schedule 1 and
incorporated herein by reference (the “Preliminary Report”). 
 (b) Seller’s interest in all leases, lease
amendments, lease guaranties, work letter agreements, improvement agreements, subleases, assignments, licenses, concessions and other agreements (the “Leases”) with all persons (“Tenants”) leasing, using or
occupying the Property, including the Leases described on Schedule 2 attached hereto. 
 (c) Except for those items
described on Schedule 3 attached hereto, all tangible and intangible personal property owned by Seller, located on or in the Real Property and used in connection with the operation and maintenance of the Property (the “Personal
Property”). 
 (d) Seller’s interest in all construction contracts and agreements described in Schedule 4
attached hereto and all warranties and guaranties relating the Property (to the extent assignable)(the “Construction Contracts and Warranties”). 
 (e) Seller’s interest in all service contracts and agreements described in Schedule 5 attached hereto (the “Service Contracts”) that are approved pursuant to section 1.2(h).

 (f) All building permits, certificates of occupancy, and other certificates, permits, licenses and approvals (the
“Permits”) pertaining to the Real Property; provided, however, that Buyer shall be responsible for any expense incurred in connection with the transfer of such Permits. 

  
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 1.2 Property Approval Period. 

(a) During the period from the date of this Agreement to 5 p.m., Pacific standard time, on March 4, 2011 (the “Property
Approval Period”), Buyer shall in accordance with this section 1.2, in good faith and with diligence, at Buyer’s sole cost and expense, review and investigate the physical and environmental condition of the Property, the character,
quality and general utility of the Property, the zoning, land use, environmental and building requirements and restrictions applicable to the Property, the state of title to the Property, the Leases, the Construction Contracts and Warranties, the
Service Contracts and the Permits. Buyer shall be responsible for preparing and paying the cost of any amendment or update to the survey of the Property dated January 14, 2008 prepared by MacKay & Sposito, Inc. (such existing survey,
the “Survey”) that may be required by Buyer or its lender. Buyer shall determine whether or not the Property is acceptable to Buyer within the Property Approval Period. If, during the Property Approval Period, Buyer determines that
the Property is not acceptable, Buyer shall have the right, by giving written notice to Seller on or before the last day of the Property Approval Period, to terminate this Agreement. If Buyer exercises the right to terminate this Agreement in
accordance with this section 1.2, this Agreement shall terminate as of the date such termination notice is given by Buyer, in which event the Initial Deposit (defined below) shall be retained by Seller. If Buyer does not exercise the right to
terminate this Agreement in accordance with this section 1.2, this Agreement shall continue in full force and effect, and Buyer shall have no further right to terminate this Agreement pursuant to this section 1.2. 

(b) During the Property Approval Period, Seller shall make available to Buyer at the Property the following items (collectively, the
“Diligence Documents”): 
 (i) all plans and specifications for the Property, logs and manuals
for building equipment, if any, and governmental reports that Seller has in Seller’s possession or control, without request to or investigation of third parties, and permit Buyer to examine the structural, mechanical, electrical, plumbing,
roof, foundation, soils and environmental condition of the Real Property. Buyer acknowledges that Seller has made available to Buyer, prior to the date hereof, the materials described in Schedule 6 attached hereto. 

(ii) copies of all the Leases, all the Construction Contracts and Warranties, all Service Contracts and all tenant and
correspondence files relating to the foregoing. 
 (iii) all of Seller’s books and records relating to the
operation of the Property including, without limitation, the following documents that Seller has in its possession or control: 
 (A) copies of all certificates of occupancy, licenses, permits, authorizations, and approvals issued by all governmental authorities having jurisdiction over the Property and copies of all certificates
issued by the local board of fire underwriters (or other body exercising similar functions); 
 (B) copies of
each bill for current real estate, personal property and possessory interest taxes, water charges and other utilities; and 

  
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 (C) All records and files relating to the physical condition, operation and
maintenance of the Property. 
 (c) Notwithstanding anything to the contrary herein, Seller shall not be required to provide,
copy or make available to Buyer (and the Diligence Documents do not include) any internal memoranda, appraisals and valuation reports and similar information or information covered by the attorney-client privilege. Buyer acknowledges that the
materials relating to the Property to be furnished by Seller to Buyer contain confidential and proprietary information. Buyer agrees to keep all such information confidential and not to disclose any such information to any third party except to the
extent necessary to carry out the responsibilities of Buyer pursuant to this section 1.2 or to obtain financing for the Property. Notwithstanding the foregoing, Buyer shall also have the right to disclose or publically file such confidential
information (including this Agreement and its exhibits/schedules) as shall be required to comply with any governmental or legal requirements applicable to Buyer or as shall be necessary to Buyer’s prosecution of its rights and remedies under
this Agreement. If Buyer exercises the right to terminate this Agreement in accordance with this section 1.2, Buyer shall, within five (5) days after the termination date, return to Seller all copies of all materials relating to the
Property theretofore furnished by Seller. No representation or warranty in respect of any documents, reports, studies, information or other materials (including the accuracy or completeness thereof) are or shall be deemed to be made or provided by
Seller relating thereto or to the Property or otherwise, and Buyer hereby acknowledges that no representations or warranties, either express or implied, were made by Seller (other than as expressly set forth in this Agreement or the documents and
instruments executed by Seller in connection with this Agreement) with respect to any of the foregoing. To the extent any person or entity, other than Seller as expressly set forth herein, including any surveyors, appraisers, title agents, tenants,
escrow agent, attorneys, engineering consultants or environmental consultants, made any representations or warranties (other than as expressly set forth in section 5.1) or any other statements (verbal or written) to Buyer, or provided any documents,
reports, studies, information or other materials, Buyer acknowledges it shall have no claim or right of action against Seller arising therefrom, nor any right to rescind or revoke this Agreement on account thereof. 

(d) Buyer shall indemnify Seller and Seller Parties (defined below) for, defend Seller and Seller Parties against, and hold Seller and
Seller Parties harmless from all claims, demands, liabilities, losses, damages, costs and expenses, including reasonable attorneys’ fees and disbursements, arising from any entry on the Property by Buyer or any of Buyer’s representatives.
The foregoing indemnification covenant shall survive any termination of this Agreement. If this Agreement is terminated for any reason other than Seller’s default and Seller, at Seller’s option, requests any reports relating to the
Property provided to Buyer by third parties (the “Buyer Reports”), Buyer shall deliver the Buyer Reports to Seller; provided, however, such delivery shall be without representation or warranty as to the accuracy or completeness of
any such Buyer Reports, and Seller acknowledges that Seller (and anyone to whom Seller provides such Buyer Reports) shall have no claim or right of action against Buyer arising therefrom. Notwithstanding anything to the contrary herein, Buyer shall
not be required to provide, copy or make available to Seller any internal memoranda, appraisals and valuation reports and similar information or information covered by the attorney-client privilege. 

  
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 (e) Buyer shall maintain, and shall ensure that its contractors, agents and third parties
under its control maintain, public liability and property damage insurance from a licensed insurance company insuring Buyer and its representatives against any liability arising out of any entry or inspections of the Property pursuant to the
provisions hereof. Such insurance maintained by Buyer (and Buyer’s agents) shall be in the amount of Three Million Dollars ($3,000,000) combined single limit for injury to or death of one or more persons in an occurrence, and for damage to
tangible property (including loss of use) in an occurrence. Any policy maintained by Buyer (and Buyer’s agents) shall (i) insure the contractual liability of Buyer covering Seller, (ii) name the Seller (and its successors and
assigns), Shorenstein Properties LLC, a Delaware limited liability company, and Shorenstein Realty Services, L.P., a Delaware limited partnership (“SRS”), as additional insureds, (iii) contain a cross-liability provision,
(iv) contain a provision that the insurance provided by Buyer hereunder shall be primary and noncontributing with any other insurance available to such Seller, and (v) be in form and substance adequate to insure against all liability of
Buyer and its agents arising out of any entry or inspections of the Property pursuant to the provisions of this section 1.2. Buyer shall provide Seller with evidence of such insurance coverage prior to any entry or inspection of the Property.

 (f) Buyer, by giving notice to Seller on or before the Property Approval Date (the “Title Objection Date”),
may object to any title exception in the Preliminary Report or any matter shown on the Survey or any matter shown on any update to the Survey or new survey. Buyer, by giving notice to Seller on or before the date that is two (2) business days
after the discovery thereof, may object to any title exception in any update to the Preliminary Report. Buyer shall be deemed to have approved title to the Property as shown in the Preliminary Report, as updated and the Survey, or any updates or new
surveys, unless Buyer objects to any title exception or survey matter in accordance with this section 1.2. If Buyer makes any such objection, Seller may, by giving notice to Buyer on or before the date that is three (3) business days after
Buyer’s objection notice, elect either to remove such objections (or insure over such objections if reasonably acceptable to Buyer) or not to remove such objections. Seller shall be deemed to have elected not to remove any such objection (or
insure over such objection) unless Seller elects to remove or insure over any such objection in accordance with this section 1.2. If Seller elects to remove or insure over any such objection, Seller shall remove or insure over the title
exception or survey matter in question on or before the Closing Date (defined below). If Seller elects (or is deemed to have elected) not to remove or insure over any such objection, Buyer shall have the right, by giving notice to Seller on or
before the date that is five (5) business days after Seller’s election not to cure (or deemed election not to cure), either to terminate this Agreement (in which case the Initial Deposit (as defined below) shall be retained by Seller) or
to withdraw such objection and accept title to the Property subject to the title exception or survey matter in question. If Buyer does not exercise the right to terminate this Agreement in accordance with this section 1.2, Buyer shall be deemed
to have approved title to the Property subject to the title exception or survey matter in question and to have withdrawn such objection. If Seller requires additional time to remove or insure over a title exception identified by Buyer, the Closing
Date shall be postponed for up to thirty (30) days as Seller may deem necessary to remove such title exception. 

  
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 (g) Seller hereby grants Buyer the right to enter onto/into the Real Property for purposes
relating to Buyer’s activities under this section 1.2; which right shall be subject to the requirements of this section 1.2 and shall continue until the Closing or earlier termination of this Agreement. Buyer acknowledges and agrees that any
and all inspections of the Property shall be conducted in a manner not unreasonably disruptive to tenants or to the operation of the Property. With respect to meetings with tenants and subtenants, Seller agrees to permit Buyer to meet with tenants
of the Property; provided, however, that Buyer must provide Seller with written notice of such proposed meeting (which shall be arranged by Seller) at least two (2) business days prior thereto, and also provided that a representative of Seller,
at Seller’s election, is available for and is present at such meeting. Except as expressly set forth above, neither Buyer nor any of the Buyer’s representatives shall contact tenants of the Property or make any inquiries of tenants of the
Property. Seller shall make available to Buyer Seller’s employees, representatives, contractors, building engineers, leasing agents and property managers (and their employees) at times and frequencies reasonably sufficient to allow Buyer to
conduct its due diligence prior to the end of the Property Approval Period. Seller shall have the right to have a representative present during any due diligence investigations conducted by Buyer at the Property. In the event Buyer or any of
Buyer’s representatives desire to conduct any physically intrusive due diligence, such as sampling of soils, inspection of building materials, roof inspections, drilling wells or the like, Buyer shall identify in writing exactly what procedures
such party desires to perform and the identity of the contractor or consultant which will perform such work and request Seller’s express prior written consent thereto, which consent may be given or withheld in Seller’s sole and absolute
discretion. Upon receipt of Seller’s written consent, Buyer and/or Buyer’s representatives, as applicable, shall perform any and all due diligence strictly in compliance with the agreed upon procedures and with any and all laws,
ordinances, rules, regulations, permits and licenses applicable to the Property. 
 (h) On or before the expiration of the
Property Approval Period, Buyer shall have the right to disapprove, by written notice to Seller, any of the Service Contracts that are not terminable without penalty or fee upon no more than thirty (30) days prior notice. If Buyer desires to
have any Service Contract terminated that is not expressly terminable upon no more than thirty (30) days notice without penalty or fee (each a “Non-Terminable Service Contract”), then Buyer shall notify Seller in writing of any
such Non-Terminable Service Contract that it desires to have terminated. If Buyer notifies Seller that desires to terminate a Non-Terminable Service Contract and Seller responds in writing that Seller will not terminate such Non-Terminable Service
Contract, then Buyer’s sole remedy will be to terminate this Agreement. All of the Service Contracts which are either terminable on no more than thirty (30) days’ notice without penalty or fee, or which are not disapproved by Buyer,
or with respect to which Buyer’s initial disapproval is waived or deemed to be waived hereunder by virtue of Buyer’s failure to disapprove a Service Contract prior to the expiration of the Property Approval Period, are referred to as the
“Approved Service Contracts.” Notwithstanding the foregoing, Buyer shall be required to assume Seller’s obligations, if any, for leasing commissions due to outside brokers: (1) for tenants already installed who exercise
renewal or expansion options under their leases after the date of this Agreement and (2) for leases under negotiation prior to the Closing and disclosed to Buyer on Schedule 9 (including any commissions due to SRS described on such
schedule), or otherwise disclosed in writing to Buyer pursuant to section 6.1, and which are executed within one hundred twenty (120) days after the Closing. 

  
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 ARTICLE 2 
 Purchase Price 
 2.1 Amount and Payment. The total purchase price
for the Property (the “Purchase Price”) shall be One Hundred Twenty Nine Million Four Hundred Thirty Four Thousand Two Hundred Twenty Four Dollars ($129,434,224). At the Closing on the Closing Date, Buyer shall pay the total
purchase price for the Property to Seller in cash in immediately available funds, subject to adjustments as provided in section 8.4. 
 2.2 Deposit. Upon execution of this Agreement, Buyer shall deposit the sum of One Million Dollars ($1,000,000) (the “Initial Deposit”) in cash in immediately available funds in
escrow with Chicago Title Insurance Company, 455 Market Street, Suite 2100, San Francisco, California 94105, Attention: Terina Kung, phone: (415) 291-5128, fax: (415) 896-9423 (the “Title Company”). The Initial Deposit
shall be nonrefundable to Buyer and shall be released to Seller in the event Buyer elects to terminate this Agreement in accordance with section 1.2. Buyer’s failure to deposit the Initial Deposit in escrow in a timely manner shall constitute a
material breach of this Agreement and Buyer shall be liable for the amount of the Initial Deposit as liquidated damages for such breach. If Buyer does not exercise the right to terminate this Agreement in accordance with section 1.2 hereof, Buyer
shall, on or before the last day of the Property Approval Period, deposit the additional sum of Four Million Dollars ($4,000,000) (the “Additional Deposit”) in cash in immediately available funds in escrow with the Title Company.
The Initial Deposit and the Additional Deposit together with all interest earned thereon shall collectively be referred to as the “Deposit.” The Deposit shall be held by the Title Company in an interest-bearing account designated in
writing by Buyer and approved in writing by Seller. If Seller and Buyer complete the purchase and sale of the Property in accordance with this Agreement, the Deposit and all interest thereon shall be applied to payment of the total purchase price
for the Property in accordance with section 2.1 hereof. If Buyer exercises the right to terminate this Agreement in accordance with section 1.2 hereof, or if the purchase and sale of the Property is not completed and this Agreement terminates for
any reason other than a material default by Buyer under or a material breach by Buyer of this Agreement, then (i) the Deposit and all interest thereon shall be returned to Buyer upon such termination of this Agreement and (ii) if requested
by Seller, Buyer shall provide Seller with original and copies of all studies, tests, reports and other documents or materials relating to the Property prepared, conducted or made by, for or on behalf of Buyer in accordance with section 1.2.

 2.3 Liquidated Damages. SELLER AND BUYER AGREE THAT, IF THE PURCHASE AND SALE OF THE PROPERTY IS NOT COMPLETED IN
ACCORDANCE WITH THIS AGREEMENT BECAUSE BUYER DEFAULTS UNDER OR BREACHES THIS AGREEMENT AND FAILS TO CURE SUCH DEFAULT OR BREACH WITHIN ONE BUSINESS DAY OF WRITTEN NOTICE, SELLER SHALL BE ENTITLED TO TERMINATE THIS AGREEMENT AND UPON TERMINATION THE
DEPOSIT SHALL BE PAID TO SELLER AS LIQUIDATED DAMAGES AND AS SELLER’S SOLE AND EXCLUSIVE REMEDY IN THE CASE OF SUCH A DEFAULT OR BREACH BY BUYER UNDER THIS AGREEMENT. BUYER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT
TO ESTIMATE THE DAMAGE THAT SELLER MAY SUFFER IN THE EVENT OF SUCH DEFAULT BY BUYER. THEREFORE, 

  
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BUYER AND SELLER AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT SELLER WOULD SUFFER IF BUYER DEFAULTS AND FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY IS AN AMOUNT EQUAL TO
THE DEPOSIT. THE PAYMENT OF THIS AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER. SELLER AND BUYER HAVE MADE THIS PROVISION FOR LIQUIDATED DAMAGES BECAUSE IT WOULD
BE DIFFICULT TO CALCULATE, ON THE DATE HEREOF, THE AMOUNT OF ACTUAL DAMAGES FOR SUCH BREACH, AND THESE SUMS REPRESENT REASONABLE COMPENSATION TO SELLER FOR SUCH BREACH. 
 SELLER’S INITIALS:              BUYER’S INITIALS:
             
 2.4 Seller Default. Seller and Buyer
agree that, if the purchase and sale of the Property is not completed in accordance with this Agreement because Seller materially defaults under or materially breaches this Agreement, Buyer shall be entitled, as Buyer’s sole remedy to either
(i) terminate this Agreement and upon termination the Deposit shall be returned to Buyer and Seller shall reimburse Buyer for the actual, documented third-party costs incurred by Buyer in connection with this transaction, but not in excess of
Two Hundred Fifty Thousand Dollars ($250,000) or (ii) demand and have specific performance of this Agreement (provided, however, if the remedy of specific performance is unavailable due solely to the fact that the Property has been sold by
Seller to a bona fide purchaser, then Buyer shall be entitled to bring an action against Seller for damages). Buyer shall be deemed to have elected to terminate this Agreement and receive back the Deposit if Buyer fails to file suit for specific
performance against Seller in a court of competent jurisdiction, on or before the date which is thirty (30) days following the date upon which Closing was to have occurred. Buyer waives any right to record a lis pendens on the Property.

 ARTICLE 3 
 Completion of Sale 
 3.1 Place and Date. The purchase and sale of
the Property shall be completed in accordance with Article 8 hereof (the “Closing”). Subject to the terms of this Agreement, the Closing shall occur through Escrow No. 160310130 with the Title Company on March 11,
2011 (the “Closing Date”). Prior to the Closing Date, Seller and Buyer each shall give appropriate written escrow instructions, consistent with this Agreement, to the Title Company for the Closing in accordance with this Agreement
and upon giving such instructions such party need not be physically present at the Closing. Seller shall have the right to extend the Closing Date for an additional thirty (30) days in order to obtain Tenant Estoppel Certificates executed by
Tenants in order to satisfy the Minimum Estoppel Requirement set forth in Section 7.2(d). 

  
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 ARTICLE 4 
 Title and Condition 
 4.1 Title to the Property. Seller shall convey
to Buyer fee title to the Real Property, by a duly executed and acknowledged statutory special warranty deed (the “Deed”) in the form of Exhibit A attached hereto, free and clear of all monetary liens (including, without
limitation, all deeds of trust and mechanics’ liens), encumbrances, leases, easements, restrictions, rights, covenants and conditions, except the following (the “Permitted Exceptions”): (a) the matters shown as exceptions
in the Preliminary Report, or any updates thereto and approved (or deemed to be approved) by Buyer pursuant to section 1.2 hereof; (b) the Leases; (c) matters which would be shown by a correct survey of the Property or a physical
inspection of the Property to the extent not disapproved by Buyer (and agreed to be cured or insured over by Seller) pursuant to section 1.2 hereof; (d) taxes and assessments which are not past due as of the Closing Date; and (e) any other
matters created, permitted or approved by Buyer. 
 4.2 Leases. Seller shall assign good title to Seller’s interest
in the Leases to Buyer and Buyer shall assume said Leases, by a duly executed Assignment and Assumption of Leases (the “Assignment of Leases”) in the form of Exhibit B attached hereto. 

4.3 Personal Property. Seller shall transfer all of Seller’s title to the Personal Property to Buyer, by a duly executed Bill
of Sale (the “Bill of Sale”) in the form of Exhibit C attached hereto without warranty or covenant. 
 4.4 Contracts. Seller shall assign all of Seller’s interest in the Construction Contracts and Warranties and all of Seller’s interest in the Approved Service Contracts (collectively, the
“Contracts”) to Buyer and Buyer shall assume the Contracts, by a duly executed Assignment and Assumption of Contracts (the “Assignment of Contracts”) in the form of Exhibit D attached hereto. 

4.5 Permits. Seller shall assign all of Seller’s interest in the Permits to Buyer, by a duly executed Assignment of Permits
(the “Assignment of Permits”) in the form of Exhibit E attached hereto without warranty or covenant. 
 4.6 Acceptance of Title. Buyer’s acceptance of the Deed from Seller for the Real Property at the Closing on the Closing Date and the issuance of the Title Policy (defined below) or a marked-up
commitment to Buyer by the Title Company on the Closing Date shall conclusively establish that Seller conveyed the Property to Buyer as required by this Agreement and shall discharge in full Seller’s obligations under section 4.1 hereof
with respect to title to the Real Property. 

  
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 4.7 “AS IS” Sale 

(a) Prior to the Closing: 
 (i) Buyer shall conduct all such inspections, investigations, tests, analyses, appraisals and evaluations of the Property (including for Hazardous Materials, as defined below) as Buyer considers necessary
or appropriate (all of such inspections, investigations and reports being herein collectively called the “Investigations”). 
 (ii) Seller shall make available to Buyer, and otherwise allow Buyer access to, the Diligence Documents pursuant to section 1.2 hereof. 

(b) Buyer represents to Seller that it is experienced in the acquisition of real property similar to the Real Property and that Buyer
recognizes the risks of acquiring and owning the Property and that an allocation of risk is intended by this Agreement. 
 (c)
Prior to Closing Buyer shall review, examine, evaluate and verify all Diligence Documents and the results of the Investigations to the extent it deems necessary or appropriate with the assistance of such experts as Buyer deemed appropriate and:

 (i) shall be familiar with the physical condition of the Property; 

(ii) shall have completed its due diligence with respect to the Property and the Diligence Documents to its satisfaction;

 (iii) shall be acquiring the Property based exclusively upon its own investigations and inspections of the
Property and the Diligence Documents; and 
 (iv) shall be represented by advisors and consultants (including
legal counsel) of its choice in the transaction contemplated by this Agreement. 
 (d) EXCEPT FOR SELLER’S REPRESENTATIONS
AND WARRANTIES SET FORTH IN THIS AGREEMENT THAT EXPRESSLY SURVIVE THE CLOSING AND INSTRUMENTS EXECUTED BY SELLER AT CLOSING (THE “SELLER’S WARRANTIES”), THE PROPERTY IS BEING SOLD, AND BUYER IS ACCEPTING POSSESSION OF THE
PROPERTY ON THE CLOSING DATE, “AS IS, WHERE IS, WITH ALL FAULTS,” WITH NO RIGHT OF SETOFF OR REDUCTION IN THE PURCHASE PRICE. EXCEPT FOR SELLER’S WARRANTIES, NEITHER SELLER, ITS COUNSEL OR BROKERS, NOR ANY PARTNER, OFFICER, DIRECTOR,
EMPLOYEE, AGENT OR ATTORNEY OF SELLER, ITS COUNSEL OR BROKERS NOR ANY OTHER PARTY RELATED IN ANY WAY TO ANY OF THE FOREGOING (EACH A “SELLER PARTY” AND COLLECTIVELY THE “SELLER PARTIES”) HAVE OR SHALL BE DEEMED TO
HAVE MADE ANY VERBAL OR WRITTEN REPRESENTATIONS, WARRANTIES, PROMISES OR GUARANTEES (WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE) TO BUYER WITH RESPECT TO THE PROPERTY, ANY MATTER SET FORTH, CONTAINED OR ADDRESSED IN THE DILIGENCE DOCUMENTS
(INCLUDING, BUT NOT LIMITED TO, THE ACCURACY AND COMPLETENESS THEREOF) OR THE RESULTS OF THE INVESTIGATIONS. 
 (e) AT CLOSING
BUYER SHALL HAVE HAD THE OPPORTUNITY TO CONDUCT TESTING AND INSPECTIONS TO CONFIRM INDEPENDENTLY ALL INFORMATION THAT BUYER CONSIDERS MATERIAL TO ITS PURCHASE OF THE PROPERTY OR THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT. EXCEPT FOR
SELLER’S WARRANTIES, BUYER IS NOT RELYING ON (AND SELLER 

  
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AND EACH OF THE SELLER PARTIES DOES HEREBY DISCLAIM AND RENOUNCE) ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE, FROM SELLER OR THE SELLER PARTIES, AS TO: (i) THE OPERATION OF THE PROPERTY OR THE INCOME POTENTIAL, USES, OR MERCHANTABILITY OR FITNESS OF ANY PORTION OF THE PROPERTY FOR A PARTICULAR PURPOSE; (ii) THE PHYSICAL CONDITION
WHETHER VISIBLE OR NOT, OF THE PROPERTY OR THE CONDITION OR SAFETY OF THE PROPERTY OR ANY IMPROVEMENTS THEREON, INCLUDING, BUT NOT LIMITED TO, PLUMBING, SEWER, HEATING, VENTILATING AND AIR CONDITIONING, LIFE SAFETY, BUILDING MANAGEMENT, VERTICAL
TRANSPORTATION, AND ELECTRICAL SYSTEMS, ROOFING, FOUNDATIONS, SOILS AND GEOLOGY, INCLUDING HAZARDOUS MATERIALS, LOT SIZE, OR SUITABILITY OF THE PROPERTY OR ANY IMPROVEMENTS THEREON FOR A PARTICULAR PURPOSE; (iii) THE PRESENCE OR ABSENCE,
LOCATION OR SCOPE OF ANY HAZARDOUS MATERIALS IN, AT, OR UNDER THE PROPERTY; (iv) WHETHER THE APPLIANCES, IF ANY, PLUMBING OR UTILITIES ARE IN WORKING ORDER; (v) THE HABITABILITY OR SUITABILITY FOR OCCUPANCY OF ANY STRUCTURE AND THE QUALITY
OF ITS CONSTRUCTION; (vi) WHETHER THE IMPROVEMENTS ARE STRUCTURALLY SOUND, IN GOOD CONDITION, OR IN COMPLIANCE WITH APPLICABLE MUNICIPAL, COUNTY, STATE OR FEDERAL STATUTES, CODES OR ORDINANCES; (vii) THE ACCURACY OF ANY STATEMENTS,
CALCULATIONS OR CONDITIONS STATED OR SET FORTH IN SELLER’S BOOKS AND RECORDS CONCERNING THE PROPERTY OR SET FORTH IN THE DILIGENCE DOCUMENTS OR ANY OF SELLER’S OFFERING MATERIALS WITH RESPECT TO THE PROPERTY; (viii) THE DIMENSIONS OF
THE PROPERTY OR THE ACCURACY OF ANY FLOOR PLANS, SQUARE FOOTAGE, LEASE ABSTRACTS, SKETCHES, REVENUE OR EXPENSE PROJECTIONS RELATED TO THE PROPERTY; (ix) THE OPERATING PERFORMANCE, THE INCOME AND EXPENSES OF THE PROPERTY OR THE ECONOMIC STATUS
OF THE PROPERTY; (x) THE ABILITY OF BUYER TO OBTAIN ANY AND ALL NECESSARY GOVERNMENTAL APPROVALS OR PERMITS FOR BUYER’S INTENDED USE AND DEVELOPMENT OF THE PROPERTY; (xi) THE LEASING STATUS OF THE PROPERTY OR THE INTENTIONS OF ANY
PARTIES WITH RESPECT TO THE NEGOTIATION AND/OR EXECUTION OF ANY LEASE FOR ANY PORTION OF THE PROPERTY; AND (xii) SELLER’S OWNERSHIP OF ANY PORTION OF THE PROPERTY. 
 (f) EXCEPT TO THE EXTENT SET FORTH IN THE SELLER’S WARRANTIES, NEITHER SELLER NOR ANY SELLER PARTY IS UNDER ANY DUTY (AND BUYER HEREBY RENOUNCES ANY DUTY OF SELLER OR ANY SELLER PARTY) TO MAKE ANY
AFFIRMATIVE DISCLOSURES OR INQUIRY REGARDING ANY MATTER RELATING TO THE PROPERTY THAT MAY OR MAY NOT BE KNOWN TO SELLER OR ANY SELLER PARTY. 
 (g) BUYER, FOR BUYER AND BUYER’S SUCCESSORS AND ASSIGNS, HEREBY RELEASES SELLER AND SELLER PARTIES, AND THEIR SUCCESSORS AND ASSIGNS FROM, AND WAIVES ALL CLAIMS AND LIABILITY, INCLUDING ENVIRONMENTAL
LIABILITY (DEFINED BELOW), AGAINST SELLER AND SELLER PARTIES, AND THEIR SUCCESSORS AND ASSIGNS FOR OR ATTRIBUTABLE TO THE FOLLOWING: 
 (i) ANY AND ALL STATEMENTS OR OPINIONS HERETOFORE OR HEREAFTER MADE, OR INFORMATION FURNISHED, BY THEM TO BUYER OR ITS AGENTS OR REPRESENTATIVES RELATING TO THE PROPERTY, EXCEPT FOR SELLER’S
WARRANTIES; AND 

  
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 (ii) ANY STRUCTURAL, PHYSICAL OR ENVIRONMENTAL CONDITION AT THE PROPERTY,
INCLUDING, CLAIMS OR LIABILITIES RELATING TO THE PRESENCE, DISCOVERY OR REMOVAL OF ANY HAZARDOUS MATERIALS IN, AT, ABOUT OR UNDER THE PROPERTY, OR FOR, CONNECTED WITH OR ARISING OUT OF ANY AND ALL CLAIMS OR CAUSES OF ACTION BASED UPON ENVIRONMENTAL
LAW (DEFINED BELOW). 
 (h) AFTER CLOSING, AS BETWEEN BUYER AND SELLER, THE RISK OF LIABILITY OR EXPENSE ASSOCIATED WITH THE
PROPERTY (INCLUDING ENVIRONMENTAL LIABILITIES), EVEN IF ARISING FROM EVENTS BEFORE CLOSING, WILL BE THE SOLE RESPONSIBILITY OF BUYER, REGARDLESS OF WHETHER THE LIABILITIES WERE KNOWN OR UNKNOWN AT CLOSING. ONCE CLOSING HAS OCCURRED, BUYER
INDEMNIFIES SELLER FOR, HOLDS SELLER HARMLESS FROM, AND RELEASES SELLER FROM LIABILITY FOR ANY LATENT DEFECTS AND FROM ANY LIABILITY ASSOCIATED WITH THE PROPERTY, INCLUDING LIABILITY UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND
LIABILITY ACT, THE RESOURCE CONSERVATION AND RECOVERY ACT, AND ANY OTHER ENVIRONMENTAL LAWS. BUYER INDEMNIFIES SELLER FOR, HOLDS SELLER HARMLESS FROM, AND RELEASES SELLER FROM ANY LIABILITY ASSOCIATED WITH THE PROPERTY ARISING AS THE RESULT OF
SELLER’S OWN NEGLIGENCE OR THE NEGLIGENCE OF SELLER’S REPRESENTATIVES. BUYER INDEMNIFIES SELLER FOR, HOLDS SELLER HARMLESS FROM, AND RELEASES SELLER FROM ANY LIABILITY FOR ENVIRONMENTAL LIABILITIES AFFECTING THE PROPERTY ARISING AS THE
RESULT OF THEORIES OF PRODUCTS LIABILITY AND STRICT LIABILITY, OR UNDER NEW LAWS OR CHANGES TO EXISTING LAWS ENACTED AFTER THE DATE OF THIS AGREEMENT THAT WOULD OTHERWISE IMPOSE ON SELLERS IN THIS TYPE OF TRANSACTION NEW LIABILITIES FOR
ENVIRONMENTAL LIABILITIES AFFECTING THE PROPERTY. 
 (i) This section 4.7 shall survive the Closing. 

4.8 Environmental Definitions. As used herein “Environmental Law” means any international, federal, state, local
or foreign statute, law, ordinance, regulation, rule, code, order, consent decree or judgment, in each case in existence as of the Closing Date, relating to or regulating human health or safety, or industrial hygiene or environmental conditions or
protection of the environment, or pollution or contamination of the air, soil, surface water or groundwater, and includes the Comprehensive Environmental Response Compensation and 

  
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Liability Act of 1980, the Resource Conservation and Recovery Act of 1976, the Toxic Substances Control Act, the Federal Water Pollution Control Act, the Safe Drinking Water Act, the Hazardous
Materials Transportation Act, the Oil Pollution Act of 1990 and any state laws implementing the foregoing federal laws. As used herein “Environmental Liability” means any claim, demand, order, suit, obligation, liability, cost
(including, the cost of any investigation, testing, compliance or remedial action), consequential damages, loss or expense (including attorneys’ and consultants’ fees and expenses) arising out of, relating to or resulting from any
Environmental Law or environmental, health or safety matter or condition, including natural resources, and related in any way to the Property or to this Agreement or its subject matter, in each case, whether arising or incurred before, on or after
the Closing Date. As used herein “Hazardous Materials” means (i) any petroleum, petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials or polychlorinated biphenyls,
(ii) any chemical, material or substance defined or regulated as toxic or hazardous or as a pollutant, contaminant or waste under any Environmental Law or any Mold or Mold Condition. As used herein “Release” means any spilling,
leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing into the environment, including continuing migration, of Hazardous Materials into or through soil, surface water or groundwater. As used
herein “Mold” means mold, mildew, fungus or other potentially dangerous organisms. As used herein “Mold Condition” means the presence of Mold or any condition(s) that reasonably can be expected to indicate the
presence of Mold, including observed discoloration of walls, ceilings or floors, complaints received within the last six (6) months of respiratory ailment or eye irritation by tenants, employees or any other occupants or invitees in the
Property or any notice from a governmental agency of complaints regarding the indoor air quality at the Property. 
 ARTICLE 5

 Representations and Warranties 
 5.1 Seller. The representations and warranties of Seller in this section 5.1 and in Seller’s Closing Certificate (defined below) are a material inducement for Buyer to enter into this
Agreement. Such representations and warranties shall survive the Closing for only nine (9) months after the Closing Date (including, without limitation, all covenants and indemnities included in the exhibits attached hereto)(the
“Survival Period”), at which time such representations and warranties shall terminate. Except as disclosed on Schedule 7 attached hereto, Seller represents and warrants to Buyer as of the date of this Agreement as set forth
below in this section 5.1. 
 (a) Seller is a limited liability company duly formed, validly existing and in good standing under
the laws of the State of Delaware. Seller is duly qualified to do business and is in good standing in the State of Oregon. Seller has full power and authority to enter into this Agreement and to perform this Agreement. The execution, delivery and
performance of this Agreement by Seller have been duly and validly authorized by all necessary action on the part of Seller, and all required consents or approvals have been duly obtained, and neither the execution and delivery of this Agreement,
nor the incurrence of the obligations set forth in this Agreement, nor the consummation of the transactions contemplated by this Agreement, nor compliance with the provisions of this Agreement will conflict with or result in a breach of any of the
provisions 

  
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of, or constitute a default under, any bond, note or other evidence of indebtedness, contract, indenture, mortgage, deed of trust, loan, agreement, lease, or other agreement or instrument to
which Seller is a party or by which the Real Property may be bound. This Agreement is a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject to the effect of applicable bankruptcy,
insolvency, reorganization, arrangement, moratorium or other similar laws affecting the rights of creditors generally. 
 (b)
The Leases in effect as of the date of this Agreement are accurately described on Schedule 2 attached hereto and at the Closing there will be no other leases, rental agreements, or similar agreements granting rights of occupancy to any
portion of the Real Property other than (i) the Leases described on such Schedule 2, and (ii) any leases entered into in accordance with the provisions of section 6.1 of this Agreement. The Leases have not been amended or modified by
Seller except as shown on Schedule 2, the copies of the Leases provided to, or made available to, Buyer are true, complete, and correct copies of such Leases (including all amendments, addenda, and other agreements relating thereto) currently
in the possession of Seller and, to the best of Seller’s knowledge, no party is in default under any of the Leases. The security deposits held by Seller under the Leases are correctly set forth in Schedule 8 attached hereto. 

(c) To Seller’s knowledge and except for office and janitorial supplies typically used in Class A office buildings, there are
no Hazardous Materials are present in, on or under the Real Property, and there is no present Release of any Hazardous Material in, on or under the Real Property except as disclosed on Schedule 6. 

(d) To Seller’s knowledge, Seller has received no written notice that there is any litigation, arbitration or other legal or
administrative suit, action or proceeding pending against Seller relating to the Real Property or any part thereof that would materially affect the value of the Real Property. 
 (e) Seller is not a “foreign person” as defined in section 1445 of the Internal Revenue Code of 1986, as amended, and the Income Tax Regulations thereunder. 

(f) Except for Eastdil Secured (“Broker”), Seller has not dealt with any real estate broker or finder in connection with
the sale of the Property to Buyer or this Agreement. 
 (g) Seller has not previously assigned, transferred, or conveyed, or
purported to assign, transfer, or convey, any right, title, or interest in the Property or any portion thereof (other than conveyances for security purposes which have previously, or will be as of Closing, be terminated). 

As used herein, “to Seller’s knowledge,” “to the knowledge of Seller” and similar phrases shall mean to the current actual
knowledge of Gregg Meyer (as Asset Manager) only, without any duty of independent investigation or inquiry. Actual knowledge shall not be deemed to exist merely be assertion by Buyer of a claim that any of the foregoing persons should have known of
such facts or circumstances, if such person did not have actual knowledge such facts and circumstances. 

  
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 5.2 Buyer. The representations and warranties of Buyer in this section 5.2 and
in Buyer’s Closing Certificate (defined below) are a material inducement for Seller to enter into this Agreement. Seller would not sell the Property to Buyer without such representations and warranties of Buyer. Such representations and
warranties shall survive the Closing for the Survival Period, at which time such representations and warranties shall terminate. Buyer represents and warrants to Seller as of the date of this Agreement as set forth below in this section 5.2.

 (a) Buyer is a limited partnership duly organized and validly existing and in good standing under the laws of the State of
Maryland. Buyer is (or shall be prior to the Closing) duly qualified to do business and is in good standing in the State of Oregon. Buyer has full power and authority to enter into this Agreement and to perform this Agreement. The execution,
delivery and performance of this Agreement by Buyer have been duly and validly authorized by all necessary action on the part of Buyer and all required consents or approvals have been duly obtained or will be obtained. This Agreement is a legal,
valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting the rights of
creditors generally. 
 (b) Except for Eastdil Secured, Buyer has not dealt with any real estate broker or finder in connection
with the purchase of the Property from Seller or this Agreement. 
 ARTICLE 6 

Covenants 

6.1 Seller. Seller covenants and agrees with Buyer as follows: 

(a) Prior to the expiration of the Property Approval Period, Seller shall provide Buyer with updated lists of Leases and Contracts. After
the execution of this Agreement, Seller shall not execute any additional lease or any contract affecting the Real Property or amend, modify, renew, extend or terminate any of the Leases, the Contracts or the Permits in any material respect without
the prior approval of Buyer, which approval shall not be unreasonably withheld, provided that Seller will not be obligated to obtain Buyer’s written approval (i) if Seller is contractually obligated to take such action under the terms of
any such Lease, Contract or Permit or (ii) to enter into any new Lease or amendment to Lease currently under negotiation as described on Schedule 9 attached hereto provided that such new Lease or amendment to Lease is entered into on
substantially the terms described on Schedule 9. Between the date of this Agreement and the Closing Date, Seller shall manage, operate, maintain and repair the Real Property and the Personal Property in the ordinary course of business in
accordance with sound property management practice, keep the Real Property and the Personal Property in good repair and working order and sound condition, promptly give Buyer copies of written notices received by Seller asserting any material breach
or default under the Leases or the Contracts or any material violation of the Permits or any covenants, conditions, restrictions, laws, statutes, rules, regulations or ordinances applicable to the Real Property or the Personal Property, and perform
when due Seller’s obligations under the Leases, the Contracts and the Permits in accordance with the Leases, the Contracts and the Permits and all applicable laws. Between the date of this Agreement and the Closing Date, Seller shall keep or
cause to be kept in force property insurance covering all buildings, structures, improvements, machinery, fixtures and equipment included in the Real Property insuring against risks of physical loss or damage, subject to standard exclusions, with
such policy limits as Seller determines is prudent in the exercise of sound property management practices. 

  
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 (b) Seller shall indemnify Buyer for, and defend Buyer against, and hold Buyer harmless from
all actions, claims, demands, liabilities, losses, damages, costs and expenses, including reasonable attorneys’ fees and disbursements, that may be suffered or incurred by Buyer if any representation or warranty made by Seller in
section 5.1 hereof or in Seller’s Closing Certificate was untrue or incorrect in any material respect when made or that may be caused by any breach by Seller of any such representation or warranty. Notwithstanding the foregoing, Buyer
shall not have the right to enforce any claim, nor shall Seller be liable in any way to Buyer, for a breach of a representation or warranty of Seller if the breach in question results from or is based on a condition, state of facts or other matter
of which Buyer had actual knowledge prior to the Closing (which for purposes hereof will mean the actual knowledge of John W. Chamberlain). Furthermore, Seller shall have no liability to Buyer for a breach of any representation or warranty made by
Seller under section 5.1 hereof or in Seller’s Closing Certificate unless written notice containing a description of the specific nature of such breach has been given by Buyer to Seller and Buyer shall have commenced an action against
Seller with respect to such breach prior to the date that is thirty (30) days after the expiration of the Survival Period. Furthermore, no claim for breach of any representation or warranty of Seller shall be actionable or payable unless the
valid claims for all such breaches collectively aggregate more than Four Hundred Thousand Dollars ($400,000), in which event the full amount of such claims shall be actionable. In no event shall the aggregate liability of Seller to Buyer by reason
of a breach of one or more of Seller’s representations exceed the sum of Three Million Dollars ($3,000,000). 
 (c) Seller
shall use commercially reasonable efforts (but shall not be obligated to compensate any tenants in connection therewith) to obtain an estoppel certificate (the “Tenant Estoppel Certificate”) executed by each tenant under each of the
Leases that is either: (i) substantially in the form of Exhibit F-1 attached hereto, (ii) substantially in the form required by the Lease for such tenant, or (iii) for governmental entities, is in the form provided by such
governmental entity and to deliver each Tenant Estoppel Certificate to Buyer before the Closing Date. For the avoidance of doubt, if the tenant in question marks up or amends the form or substance of the estoppel certificate provided by the landlord
such that (i) it is inconsistent with the applicable Lease or (ii) it discloses a material default under the Lease or identifies a potential claim against the landlord, such document shall not qualify as a Tenant Estoppel Certificate for
purposes of satisfying the provisions of Section 7.2(d). 
 (d) If the purchase and sale of the Property is completed in
accordance with this Agreement, Seller shall pay the commission due Broker in accordance with the separate written agreement between Seller and Broker. 
 6.2 Buyer. Buyer covenants and agrees with Seller as follows: 
 (a) Buyer
shall indemnify Seller for, and defend Seller against, and hold Seller harmless from all actions, claims, demands, liabilities, losses, damages, costs and expenses, including reasonable attorneys’ fees and disbursements, that may be suffered or
incurred by Seller if any representation or warranty made by Buyer in section 5.2 hereof or in Buyer’s Closing Certificate was untrue or incorrect in any respect when made or that may be caused by any breach by Buyer of any such
representation or warranty. 

  
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 (b) Except for liabilities retained or incurred by Seller hereunder, from and after the
Closing, Buyer shall indemnify Seller and its affiliates and their respective officers, directors, employees and agents (collectively, “Seller’s Affiliates”), defend Seller and Seller’s Affiliates against, and hold Seller
and Seller’s Affiliates harmless from and against all claims, demands, liabilities, losses, damages, costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements based upon, arising out of, in connection
with or relating to the Property, including, without limitation, any such liabilities that are caused by any failure by Buyer to perform the obligations of the landlord under the Leases first accruing on or after the date of this Agreement or of the
Property owner under the Contracts first accruing on or after the date of this Agreement. 
 6.3 Casualty Damage. If,
before the Closing Date, the improvements on the Property are damaged by any insured casualty and the cost to restore such improvements, as reasonably agreed by Seller and Buyer, is more than Five Million Dollars ($5,000,000), Buyer shall have the
right, by giving notice to Seller within thirty (30) days after Seller gives notice of the occurrence of such casualty to Buyer, to terminate this Agreement, in which event this Agreement shall terminate. If, before the Closing Date, the
improvements on the Property are damaged by any casualty not covered by insurance and the cost to restore such improvements, as reasonably determined by Seller and Buyer, is more than Two Million Dollars ($2,000,000) (such an event being referred to
as a “Major Uninsured Casualty”), Seller and Buyer each shall have the right, by giving notice to the other within thirty (30) days after Seller gives notice of the occurrence of such casualty to Buyer, to terminate this
Agreement, in which event this Agreement shall terminate. If, in the event of a Major Uninsured Casualty, Seller elects to terminate this Agreement (as provided above), then Buyer may override such election by agreeing, in writing, to assume the
responsibility for such damage with no right to any claim against Seller on account thereof, in which event the subject transaction shall proceed as if such damage had not occurred. If this Agreement terminates as result of an election by Buyer or
Seller following a Major Uninsured Casualty the Deposit shall be immediately returned to Buyer. If, before the Closing Date, the improvements on the Property are damaged by any insured casualty and the cost to restore such improvements, as
reasonably determined by Buyer, is Five Million Dollars ($5,000,000) or less, or the improvements on the Property are damaged by any casualty not covered by insurance and the cost to restore such improvements, as reasonably determined by Seller and
Buyer, is Two Million Dollars ($2,000,000) or less, or either Seller or Buyer has the right to terminate this Agreement pursuant to either of the preceding sentences but neither Seller nor Buyer exercises such right, then this Agreement shall remain
in full force and effect and, on the Closing Date, any insurance proceeds (or, if not theretofore received, the right to receive such proceeds) payable to Seller on account of the damage shall be transferred to Buyer and the amount of any deductible
under Seller’s insurance policy to the extent of the restoration cost as reasonably determined by Seller and Buyer shall be a credit to Buyer against the total purchase price for the Property. Seller shall give notice to Buyer reasonably
promptly after the occurrence of any damage to the improvements on the Property by any casualty. If necessary, the Closing Date shall be postponed until Seller has given any notice to Buyer required by this section 6.3 and the period of thirty
(30) days described in this section 6.3 has expired, and the restoration cost has been determined by Seller and Buyer. 

  
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 6.4 Eminent Domain. If, before the Closing Date, proceedings are commenced for the
taking by exercise of the power of eminent domain of all or a material part of the Property which, as reasonably determined by Buyer, would render the Property unsuitable for Buyer’s intended use, Buyer shall have the right, by giving notice to
Seller within thirty (30) days after Seller gives notice of the commencement of such proceedings to Buyer, to terminate this Agreement, in which event this Agreement shall terminate. If, before the Closing Date, proceedings are commenced for
the taking by exercise of the power of eminent domain of less than such a material part of the Property, or if Buyer has the right to terminate this Agreement pursuant to the preceding sentence but Buyer does not exercise such right, then this
Agreement shall remain in full force and effect and, on the Closing Date, the condemnation award (or, if not theretofore received, the right to receive such award) payable to Seller on account of the taking shall be transferred to Buyer. Seller
shall give notice to Buyer reasonably promptly after Seller’s receiving notice of the commencement of any proceedings for the taking by exercise of the power of eminent domain of all or any part of the Property. If necessary, the Closing Date
shall be postponed until Seller has given any notice to Buyer required by this section 6.4 and the period of thirty (30) days described in this section 6.4 has expired. For purposes of this section 6.4, a “material part of the
Property” shall mean a part of the Property that would result in a decrease of the value of the Property by ten percent (10%) of the Purchase Price or more. 
 ARTICLE 7 
 Conditions Precedent 

7.1 Seller. The obligations of Seller under this Agreement are subject to satisfaction of all of the conditions set forth in this
section 7.1. Seller may waive any or all of such conditions in whole or in part but any such waiver shall be effective only if made in writing. After the Closing, any such condition that has not been satisfied shall be treated as having been
waived in writing. No such waiver shall constitute a waiver by Seller of any of its rights or remedies if Buyer defaults in the performance of any covenant or agreement to be performed by Buyer under this Agreement or if Buyer breaches any
representation or warranty made by Buyer in section 5.2 hereof or in Buyer’s Closing Certificate. If any condition set forth in this section 7.1 is not fully satisfied or waived in writing by Seller, this Agreement shall terminate, but
without releasing Buyer from liability if Buyer defaults in the performance of any such covenant or agreement to be performed by Buyer or if Buyer breaches any such representation or warranty made by Buyer before such termination. 

(a) On the Closing Date, Buyer shall not be materially in default in the performance of any material covenant to be performed by Buyer
under this Agreement; provided, however, prior to any termination pursuant to this paragraph, Seller shall provide Buyer with written notice of such default and Buyer shall have one (1) business day to cure such default. 

  
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 (b) On the Closing Date, all representations and warranties made by Buyer in
section 5.2 hereof shall be true and correct in all material respects as if made on and as of the Closing Date and Seller shall have received a Buyer’s Closing Certificate (“Buyer’s Closing Certificate”) in the form of
Exhibit G attached hereto, certifying to Seller that all of Buyer’s representations and warranties are materially true and correct on and as of the Closing Date, with only such exceptions (other than material adverse exceptions) as
are necessary to reflect facts or circumstances arising between the date of this Agreement and the Closing Date that would make any such representation or warranty untrue or incorrect on and as of the Closing Date. 

(c) On the Closing Date, no judicial or administrative suit, action, investigation, inquiry or other proceeding by any person shall have
been instituted against Seller that challenges the validity or legality of any of the transactions contemplated by this Agreement. 
 7.2 Buyer. The obligations of Buyer under this Agreement are subject to satisfaction of all of the conditions set forth in this section 7.2. Buyer may waive any or all of such conditions in whole
or in part but any such waiver shall be effective only if made in writing. After the Closing, any such condition that has not been satisfied shall be treated as having been waived in writing. No such waiver shall constitute a waiver by Buyer of any
of its rights or remedies if Seller defaults in the performance of any covenant or agreement to be performed by Seller under this Agreement or if Seller breaches any representation or warranty made by Seller in section 5.1 hereof or in
Seller’s Closing Certificate. If any condition set forth in this section 7.2 is not fully satisfied or waived in writing by Buyer, this Agreement shall terminate, but without releasing Seller from liability if Seller defaults in the
performance of any such covenant or agreement to be performed by Seller or if Seller breaches any such representation or warranty made by Seller before such termination and Buyer shall be entitled to the immediate return of the Deposit. 

(a) On the Closing Date, Seller shall not be materially in default in the performance of any material covenant to be performed by Seller:
provided, however, prior to any termination pursuant to this paragraph, Buyer shall provide Seller with written notice of such default and Seller shall have one (1) business day to cure such default. 

(b) On the Closing Date, all representations and warranties made by Seller in section 5.1 hereof shall be true and correct in all
material respects as if made on and as of the Closing Date and Buyer shall have received a Seller’s closing certificate (“Seller’s Closing Certificate”) in the form of Exhibit H attached hereto, certifying to
Buyer that all of Seller’s representations and warranties are materially true and correct on and as of the Closing Date, with only such exceptions (other than material adverse exceptions) as are necessary to reflect facts or circumstances
arising between the date of this Agreement and the Closing Date that would make any such representation or warranty untrue or incorrect on and as of the Closing Date; provided that if Seller’s Closing Certificate includes any material adverse
exceptions, Seller shall have the right, but not the obligation, upon written notice to Buyer, to postpone the Closing Date for up to seven (7) days and to take any action available to Seller that Seller deems appropriate to allow Seller to
deliver Seller’s Closing Certificate at the Closing (as so postponed) without material adverse exception. If requested, Buyer shall cooperate in good faith with Seller in connection therewith. For purposes of this section 7.2(b),
“material” shall mean any matter that would result in damages of, or decrease the value of the Property by, two percent (2%) of the Purchase Price or more. 

  
 - 23 -

 (c) On the Closing Date, the Title Company shall be irrevocably committed and prepared to
issue to Buyer a standard owner’s policy of title insurance, with liability equal to the total purchase price for the Property, insuring Buyer that fee title to the Property is vested in Buyer subject only to the Permitted Exceptions and the
usual preprinted exceptions (the “Title Policy”). 
 (d) On the Closing Date, Buyer shall have received Tenant
Estoppel Certificates executed by tenants which in the aggregate lease at least seventy percent (70%) of the total leased rentable square footage of office space on the Property (collectively, the “Minimum Estoppel
Requirement”). In the event Seller cannot for any reason obtain a Tenant Estoppel Certificate from tenants under the Leases sufficient to reach the Minimum Estoppel Requirement, Seller, at its option, may deliver to Buyer a Seller’s
estoppel certificate substantially in the form of Exhibit F-2 attached hereto with respect to any tenants such that when combined with the Tenant Estoppel Certificates that were obtained, will satisfy the Minimum Estoppel Requirement. If
Seller obtains a Tenant Estoppel Certificate from any such tenant after delivery of such Seller’s estoppel certificate with respect to such tenant, such Seller’s estoppel certificate shall, after delivery thereof to Buyer and as of the
date of such Tenant Estoppel Certificate, be void ab initio and shall have no further force or effect. 
 (e) On the Closing
Date, no judicial or administrative suit, action, investigation, inquiry or other proceeding by any person shall have been instituted against Buyer that challenges the validity or legality of any of the transactions contemplated by this Agreement.

 ARTICLE 8 
 Closing 
 8.1 Procedure. Seller and Buyer shall cause the following
to occur at the Closing on the Closing Date: 
 (a) The Title Company shall be unconditionally prepared to record the Deed for
the Real Property, duly executed and acknowledged by Seller, in the Office of the Multnomah County Recorder in the State of Oregon. 
 (b) Seller shall date as of the Closing Date, execute and deliver to Buyer (i) the Assignment of Leases, (ii) the Bill of Sale, (iii) the Assignment of Contracts, (iv) the Assignment
of Permits, (v) a Certificate of Non-Foreign Status in the form of Exhibit I attached hereto, (vi) Seller’s Closing Certificate, (vii) a letter to all Tenants under the Leases notifying them that the Property has been
sold to Buyer and directing them to pay future rent and other charges to Buyer at the address to be furnished by Buyer, and (viii) such other documents as are reasonably necessary to effectuate the sale of the Property to Buyer (including any
state, county or city transfer tax declarations). 
 (c) Buyer shall date as of the Closing Date, execute and deliver to Seller
(i) the Assignment of Leases, (ii) the Assignment of Contracts, (iii) Buyer’s Closing Certificate, and (iv) such other documents as are reasonably necessary to effectuate the sale of the Property to Buyer (including any
state, county or city transfer tax declarations). 

  
 - 24 -

 (d) Buyer shall pay to Seller the Purchase Price for the Property in cash in immediately
available funds in accordance with section 2.1 hereof. 
 8.2 Possession. Subject to the Leases, Seller shall
transfer possession of the Property to Buyer on the Closing Date including delivery of all keys, codes, and other security devices for the Property. Seller shall, on the Closing Date, deliver to Buyer the Leases, Contracts, Permits and any other
plans and specifications, certificates, licenses and approvals relating to the Property in the possession of Seller, which shall become the property of Buyer on the Closing Date, and copies of all of Seller’s books and records relating to the
operation of the Real Property. 
 8.3 Closing Costs. Seller shall pay for the standard portion of the Title Policy
and the cost of any endorsements or additional coverage obtained at the request of Seller in order to eliminate or insure over a title matter to which Buyer objected under, and in accordance with procedure described in, section 1.2 hereof. Except as
provided above, Buyer shall pay the cost of any upgrades, endorsements, co-insurance and reinsurance to the Title Policy, including the cost of extended coverage over general exceptions. Buyer shall be responsible for any applicable city, county
and/or state transfer tax. Buyer shall pay recording charges for the Deed. Escrow fees and any other expenses of the escrow for the sale shall be split equally between Buyer and Seller. Any other costs shall be paid in accordance with local custom.

 8.4 Prorations. Prior to the Closing, Seller shall provide to Buyer a draft proration schedule and information and
verification reasonably necessary to support such prorations schedule. Buyer and Seller shall use their reasonable best efforts to finalize as many items on such proration schedule as possible before the Closing. The items in subparagraphs
(a) through (d) of this section 8.4 shall be prorated between Seller and Buyer based on the actual number of days in the applicable period, as of the end of day immediately preceding the Closing Date, with Seller being entitled to income
and obligated for expenses attributable to the period prior to the Closing Date, and Buyer being entitled to the income and obligated for expenses attributable to the Closing Date and thereafter. 

(a) Real Estate Taxes and Assessments. Seller or Buyer, as the case may be, shall be allocated real estate taxes and assessment
installment payments (including, any assessments imposed by private covenant) applicable to Buyer’s period of ownership or applicable to Seller’s period of ownership, respectively, even if such taxes and assessment installment payments are
not yet due and payable. 
 (b) Rent. Buyer shall receive a credit for any rent and other income (and any applicable
state or local tax on rent) under the Leases collected by Seller before the Closing that applies to any period after the Closing. Uncollected rent and other uncollected income shall not be prorated at the Closing. After the Closing, Buyer shall
apply all rent and income collected by Buyer from the tenants, unless such tenant properly identifies the payment as being for a specific item, first to tenant’s monthly rental for the then current month, second to the tenant’s monthly
rental for the month in which the Closing occurred and then to arrearages in the reverse order in which they were due, remitting to Seller, after deducting any actual out-of-pocket collection costs, any rent properly allocable to Seller’s
period of ownership. Buyer shall bill and attempt to collect such rent arrearages in the ordinary course of business, but shall not be obligated to 

  
 - 25 -

 
engage a collection agency or take legal action to collect any rent arrearages. Any rent or other income received by Buyer after the Closing that is owed to Seller shall be held in trust and
remitted to Seller promptly after receipt. Buyer’s obligations under this section 8.4(b) shall terminate as of the date set forth in section 8.5, and Buyer shall retain any past due rents received after such date. All tenant security deposits
(and interest thereon if required by law or contract to be earned thereon) shall be transferred or credited to Buyer at the Closing. Any letters of credit or other non-cash tenant security deposits held by Seller shall be transferred and re-issued
to Buyer. As of the Closing, Buyer shall assume Seller’s obligations related to tenant security deposits, but only to the extent they are properly credited and transferred to Buyer. 

(c) Contracts and Operating Expenses. Seller or Buyer, as the case may be, shall receive a credit for regular charges under the
Service Contracts and for operating expenses, paid and applicable to Buyer’s period of ownership or payable and applicable to Seller’s period of ownership, respectively. Amounts due under the Construction Contracts shall be paid in
accordance with sections 8.4(e) and (f). 
 (d) Utilities. Without duplication of the apportionment for operating expense
pass-throughs, unreimbursed charges for assessments for sewer and water and other utilities, including charges for consumption of electricity, steam and gas and any other receipts or charges, as applicable, shall be apportioned by Buyer and Seller
within four (4) weeks after the Closing. Seller shall use reasonable efforts to have all meters read as close to, but before, the Closing as is feasible, and shall be responsible for amounts shown due by reason of such readings. 

(e) Seller TI/LC Obligations. Buyer shall receive a credit against the Purchase Price for the improvement, moving, relocation or
other payments, credits, allowances or obligations to tenants and leasing commissions accrued by Seller that are described on Schedule 10 attached hereto (the “Seller TI/LC Obligations”) to the extent they are not paid by
Seller on or before the Closing. Buyer shall assume the obligation to pay such costs as and when they become due and payable. 

(f) Buyer TI/LC Obligations. Buyer shall be responsible for all improvement, moving, relocation or other payments, credits,
allowances or obligations to tenants (including any parking subsidy obligations) and leasing commissions for all Leases other than the Seller TI/LC Obligations (the “Buyer TI/LC Obligations”). Buyer shall reimburse Seller through
escrow for any of the Buyer TI/LC Obligations paid by Seller prior to the Closing. 
 (g) BETC Credit. Seller shall have
no further interest in the Building Energy Tax Credit (the “BETC”) available from the Oregon Department of Energy in connection with the Property. Seller shall cooperate with Buyer in connection with the transfer of the BETC to
Buyer following the Closing. 
 8.5 Tenant Reconciliations and Post-Closing Adjustments. On or before the date that is
one (1) year after the Closing (the “Reconciliation Date”), Buyer shall prepare and present to Seller a calculation of the proration of operating expense pass-throughs and other items based upon the actual amount of such items
charged to or received by the parties for their period of ownership in 2011. The parties shall make the appropriate adjusting payment between them within thirty (30) days after presentment to Seller of Buyer’s calculation. Seller may
inspect 

  
 - 26 -

 
Buyer’s books and records related to the Property to confirm the calculation. Such adjusting payment shall be considered final and no additional post-Closing adjustment for any incorrect
proration or adjustment shall be made. To the extent that there is insufficient information on the Reconciliation Date to accurately complete the proration of income and expense, Buyer shall prepare and present to Seller a calculation of operating
expense and real property taxes pass-throughs under the Leases and other items based upon the actual amount of such items charged to or received by the parties for their period of ownership on or before the Reconciliation Date. 

8.6 Post-Closing Access. For a period of at least one (1) year after the Closing, upon reasonable prior notice and during
normal business hours, Buyer shall provide Seller and Seller’s designated accountants and auditors with access to the books and records of the Property and all similar information relating to the period prior to the Closing Date. 

ARTICLE 9 

General 

9.1 Notices. All notices and other communications under this Agreement shall be properly given only if made in writing and
(i) mailed by certified mail, return receipt requested, postage prepaid, or (ii) delivered by hand (including messenger or recognized delivery, courier or air express service), or (iii) by facsimile or email (accompanied by telephonic
notice) provided however, that if such communication is given via facsimile transmission or email, an original counterpart of such communication shall concurrently be sent in the manner specified in item (ii) above, to the party at the address
set forth in this section 9.1 or such other address as such party may designate by notice to the other party pursuant to this section 9.1. Such notices and other communications shall be effective on the date of receipt (evidenced by the
certified mail receipt) if mailed, on the date of such hand delivery if hand delivered, on the date of facsimile confirmation (provided that the foregoing requirements in connection with such facsimile are satisfied) or on the date the email is
sent, provided that the sender does not receive any failure of delivery notice (provided that the foregoing requirements in connection with such email are satisfied). If any such notice or other communication is not received or cannot be delivered
due to a change in the address of the receiving party of which notice was not previously given to the sending party or due to a refusal to accept by the receiving party, such notice or other communication shall be effective on the date delivery is
attempted. Any notice or other communication under this Agreement may be given on behalf of a party by the attorney for such party. 
  

	 	(a)	The address of Seller: 

 Two Main
Development LLC 
 c/o Shorenstein Properties LLC 

235 Montgomery Street, 16th Floor 
 San Francisco, CA 94104 
 Attention: Andrew Friedman 

Telephone: (415) 772-7174 
 Facsimile: (415) 765-9080 

  
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 Email: afriedman@shorenstein.com 

with a copy to: 

Shorenstein Properties LLC 
 235 Montgomery Street, 15th Floor 
 San Francisco, CA 94104 

Attention: Corporate Secretary 
 Telephone: (415) 772-7017 
 Facsimile: (415) 772-7080 

with a copy to: 

Pillsbury Winthrop Shaw Pittman LLP 
 50 Fremont Street 
 San Francisco, California 94105 

Attention: Stephen M. Wright, Esq. 
 Telephone:(415) 983-1188 
 Facsimile: (415) 983-1200 

Email: stephen.wright@pillsburylaw.com 
  

	 	(b)	The address of Buyer is: 

American Assets Trust, L.P. 
 c/o American Assets Trust, Inc. 
 11455 El Camino Real, Suite 200 

San Diego, California 92130 
 Attention: Mr. John Chamberlain 
 Telephone: (858) 350-2600 

Facsimile: (858) 350-2620 
 with a copy to: 
 American Assets Trust, L.P. 

c/o American Assets Trust, Inc. 
 11455 El Camino Real, Suite 200 
 San Diego, California 92130 

Attention: Adam Wyll, Esq. 
 Telephone: (858) 350-2600 
 Facsimile: (858) 350-2620 

With a copy by e-mail to: 
 gis@smclawoffices.com 

  
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 9.2 Attorneys’ Fees. If there is any legal action or proceeding between Seller
and Buyer arising from or based on this Agreement, the unsuccessful party to such action or proceeding shall pay to the prevailing party all costs and expenses, including reasonable attorneys’ fees and expenses, incurred by such prevailing
party in such action or proceeding and in any appeal in connection therewith. If such prevailing party recovers a judgment in any such action, proceeding or appeal, such costs, expenses and attorneys’ fees and expenses shall be included in and
as a part of such judgment. 
 9.3 Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Oregon without regard to principles of conflicts of laws. 
 9.4 Construction. Seller and Buyer
acknowledge that each party and its counsel have reviewed and revised this Agreement and that the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this
Agreement or any document executed and delivered by either party in connection with the transactions contemplated by this Agreement. The captions in this Agreement are for convenience of reference only and shall not be used to interpret this
Agreement. 
 9.5 Terms Generally. The defined terms in this Agreement shall apply equally to both the singular and the
plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The term “person” includes individuals, corporations, partnerships, limited liability
companies, trusts, other legal entities, organizations and associations, and any government or governmental agency or authority. The words “include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” The words “approval,” “consent” and “notice” shall be deemed to be preceded by the word “written.” 

9.6 Further Assurances. From and after the date of this Agreement, Seller and Buyer agree to do such things, perform such acts,
and make, execute, acknowledge and deliver such documents as may be reasonably necessary or proper and usual to complete the transactions contemplated by this Agreement and to carry out the purpose of this Agreement in accordance with this
Agreement. 
 9.7 Partial Invalidity. If any provision of this Agreement is determined by a proper court to be invalid,
illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement and this Agreement shall remain in full force and effect without such invalid, illegal or unenforceable provision.

 9.8 Waivers. No waiver of any provision of this Agreement or any breach of this Agreement shall be effective unless
such waiver is in writing and signed by the waiving party and any such waiver shall not be deemed a waiver of any other provision of this Agreement or any other or subsequent breach of this Agreement. 

9.9 Miscellaneous. The Exhibits and Schedules attached to this Agreement are by this reference incorporated herein and made a
part of this Agreement. Except as provided in paragraph (c) of section 1.2, neither Seller nor Buyer shall make any public announcement of this Agreement or the transactions contemplated by this Agreement without the prior consent of the other,
unless any such announcement is reasonably necessary to comply with applicable law. 

  
 - 29 -

 
Buyer shall not assign or transfer this Agreement, or any interest in or part of this Agreement, without the prior consent of Seller. Notwithstanding the foregoing, Buyer shall have the right to
assign this Agreement without the prior consent of Seller to any affiliate of Buyer or to an exchange accommodator in connection with any IRC Section 1031 tax deferred exchange, and in such case, Section 5.2(a) hereof shall automatically
be amended to reflect the proper state of formation and type of entity of such assignee Buyer. No such assignment or transfer shall release Buyer from any obligation or liability under this Agreement. Subject to the foregoing, this Agreement
shall benefit and bind Seller and Buyer and their respective personal representatives, heirs, successors and assigns. This Agreement may be executed in counterparts, each of which shall be an original, but all of which shall constitute one and the
same Agreement. This Agreement may not be amended or modified except by a written agreement signed by Seller and Buyer. This Agreement constitutes the entire and integrated agreement between Seller and Buyer relating to the purchase and sale of the
Property and supersedes all prior agreements, understandings, offers and negotiations, oral or written, with respect to the sale of the Property. 
 9.10 Time is of the Essence. Time is of the essence of this Agreement. In the computation of any period of time provided for in this Assignment or by law, the day of the act or event from which the
period of time runs shall be excluded, and the last day of such period shall be included, unless it is not a business day, in which case the period shall be deemed to run until the end of the next day which is a business day. 

9.11 Electronic Signatures. Each party (i) has agreed to permit the use, from time to time, of telecopied signatures in order
to expedite the transaction contemplated by this Agreement, (ii) intends to be bound by its telecopied signature, (iii) is aware that the other will rely on the telecopied signature, and (iv) acknowledges such reliance and waives any
defenses (other than fraud) to the enforcement of any document based on the fact that a signature was sent by telecopy. As used herein, the term “telecopied signature” shall include any signature sent via facsimile or via email in
portable document format (“.pdf”). 
 9.12 Exculpation. No constituent shareholder, member or partner in
or agent of Seller or Buyer nor any advisor, trustee, director, officer, employee, beneficiary, shareholder, member, manager, partner, participant, representative or agent of any partnership, limited liability company, corporation, trust or other
entity that has or acquires a direct or indirect interest in Seller or Buyer, shall have any personal liability, directly or indirectly, under or in connection with this Agreement or any agreement made or entered into under or pursuant to the
provisions of this Agreement, or any amendment or amendments to any of the foregoing made at any time or times. Buyer and its successors and assigns and, without limitation, all other persons and entities, shall look solely to Seller’s assets
for the payment of any claim or for any performance, and Buyer, on behalf of itself and its successors and assigns, hereby waives any and all such personal liability. Seller and its successors and assigns and, without limitation, all other persons
and entities, shall look solely to Buyer’s assets for the payment of any claim or for any performance, and Seller, on behalf of itself and its successors and assigns, hereby waives any and all such personal liability. 

9.13 Or. Rev. Stat. § 93.040. THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT
PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND 

  
 - 30 -

 
REGULATIONS THAT, IN FARM OR FORESTRY ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITTING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930 IN ALL
ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, AND
SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND
BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF
NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, AND SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009. 

9.14 Like Kind Exchange. Buyer shall cooperate with Seller in effecting a tax-deferred exchange of the Property under
Section 1031 of the Internal Revenue Code so long as no unreimbursed additional costs (other than Buyer’s internal costs and attorneys’ fees) or liabilities are incurred by Buyer. Likewise, Seller shall cooperate with Buyer in
effecting a tax-deferred exchange of the Property under Section 1031 of the Internal Revenue Code so long as no unreimbursed additional costs (other than Seller’s internal costs and attorneys’ fees) or liabilities are incurred by
Seller. Nothing contained in this section 9.14 shall result in any delay of the Closing Date. 
 9.15 Regulation 3-14
Cooperation. Seller acknowledges that it has been advised that Buyer is an affiliate of American Assets Trust, Inc. (“AAT”), a real estate investment trust, and that, as such, Buyer will require cooperation from Seller in
meeting certain regulatory requirements applicable to Buyer. Upon Buyer’s written request, during the period commencing on the date of this Agreement and ending two (2) years following the Closing, Seller shall make Seller’s books and
records (to the extent not delivered to Buyer in accordance with the requirements of section 8.2) available to Buyer for inspection, copying, and audit by Buyer’s designated accountants, at Buyer’s expense, to enable or assist AAT to make
any necessary or appropriate filings (as specified on attached Exhibit J), if, as, and when such filing may be required by the Securities and Exchange Commission (the “Commission”) or otherwise by applicable law. Furthermore,
and without limiting the foregoing, for a period of two (2) years following the Closing, Seller, or, in the event Seller is dissolved, an affiliate of Seller reasonably acceptable to Buyer shall execute, from time to time upon reasonable
advanced notice, the form of audit letter contained in attached Exhibit K, as the same may be modified from time to time to reflect only the Seller’s period of ownership. The covenants and agreements set forth in this section 9.15 shall
survive the Closing for a period of two (2) years. 
 [SIGNATURE PAGE TO FOLLOW] 

  
 - 31 -

 IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the date first
hereinabove written. 
  

			
	SELLER:
	
	 TWO MAIN DEVELOPMENT LLC,
 a Delaware limited liability company

		
	By:	 	/S/    ANDREW
FRIEDMAN        
	Name:	 	Andrew Friedman
	Title:	 	Vice President

 

					
	BUYER:
	
	 AMERICAN ASSETS TRUST, L.P.,
 a Maryland limited partnership

		
	By:	 	 AMERICAN ASSETS TRUST, INC.,
 a Maryland corporation, its General Partner

			
		 	By:	 	/S/    JOHN W.
CHAMBERLAIN        
		 		 	John W. Chamberlain
		 		 	President and CEO

 Title Company acknowledges receipt of the Deposit in the amount of One Million Dollars
($1,000,000) and a copy of this Agreement executed by both Buyer and Seller. 
  

									
	Dated: March 2, 2011	 		 	CHICAGO TITLE INSURANCE COMPANY
					
		 		 		 	By	 	/s/ Terina Kung
					
		 		 		 	Its	 	Escrow officer

 EXHIBIT A 
 FORM OF DEED 
 After Recording Return to: 

Until a change is requested, all tax 

Statements shall be sent to: 

STATUTORY SPECIAL WARRANTY DEED 
              , a              (“Grantor”) conveys and
specially warrants to             , a              (“Grantee”) the real property located in Multnomah
County, Oregon, described on the attached Exhibit A, free of encumbrances created or suffered by Grantor except for those described on the attached Exhibit B. 
 The true consideration for this conveyance is                     . 

BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY,
UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, AND SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN
VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND
BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND
TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, AND SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009. 

Dated this              day of
            , 2011. 
  

  
 Exhibit A

 EXHIBIT B 
 ASSIGNMENT OF LEASES 
 THIS ASSIGNMENT OF LEASES, made as of
            ,             , by and between
            , a              (“Seller”), and
            , a              (“Buyer”), 

W I T N E S S E T H: 
 For valuable consideration, receipt of which is acknowledged, Seller and Buyer agree as follows: 
 1. Assignment and Assumption. 
 (a) Seller hereby assigns and transfers to
Buyer all right, title and interest of Seller in, to and under the leases, lease amendments, lease guaranties, work letter agreements, improvement agreements, subleases, assignments, licenses, concessions and other agreements described in
Exhibit 1 attached hereto and made a part hereof (the “Leases”). 
 (b) Buyer hereby accepts the
foregoing assignment, and assumes and agrees to perform all of the covenants and agreements in the Leases to be performed by the landlord thereunder that arise or accrue from and after the date of this Assignment. 

2. Indemnification. 
 (a) Seller shall indemnify and defend Buyer against and hold Buyer harmless from all claims, demands, liabilities, losses, damages, costs and expenses, including, without limitation, reasonable
attorneys’ fees and disbursements, that are caused by any failure by Seller to perform any of the obligations of the landlord under the Leases before the date of this Assignment. Seller’s indemnity obligations under this Assignment shall
terminate nine (9) months from the date of this Assignment and in no event shall the aggregate liability of Seller under this Assignment, that certain Assignment of Contracts between Seller and Buyer dated as of March __, 2011 and section
6.1(b) of that certain Purchase Agreement between Seller and Buyer dated as of March __, 2011 exceed Three Million Dollars ($3,000,000). 
 (b) Buyer shall indemnify and defend Seller against and hold Seller harmless from all claims, demands, liabilities, losses, damages, costs and expenses, including, without limitation, reasonable
attorneys’ fees and disbursements, that are caused by any failure by Buyer to perform any of the obligations of the landlord under the Leases first accruing on or after the date of this Assignment. 

3. Further Assurances. Seller and Buyer agree to execute such other documents and perform such other acts as may be reasonably
necessary or proper and usual to effect this Assignment. 
 4. Governing Law. This Assignment shall be governed by and
construed in accordance with the laws of the State of Oregon. 

  
 Exhibit B

 5. Successors and Assigns. This Assignment shall be binding upon and shall inure to
the benefit of Seller and Buyer and their respective personal representatives, heirs, successors and assigns. 
 IN WITNESS
WHEREOF, Seller and Buyer have executed this Assignment as of the date first hereinabove written. 
  

			
	SELLER:
	
	BUYER:

  
 Exhibit B

 EXHIBIT C 
 BILL OF SALE 
 For valuable consideration, receipt of which is
acknowledged,             , a              (“Seller”), hereby sells, assigns, transfers and
delivers to             , a              (“Buyer”), all of the personal property, tangible or
intangible, owned by Seller and used exclusively in connection with the operation of the real property described on Exhibit 1 attached hereto but excluding those items described in Exhibit 2 attached hereto (the
“Personal Property”). 
 SELLER HAS MADE NO AFFIRMATION OF FACT OR PROMISE RELATING TO THE PERSONAL PROPERTY
THAT HAS BECOME ANY BASIS OF THIS BARGAIN OTHER THAN THAT SELLER HAS NOT PREVIOUSLY ASSIGNED, TRANSFERRED OR CONVEYED ANY SUCH PERSONAL PROPERTY, AND FURTHER, SELLER HAS MADE NO AFFIRMATION OF FACT OR PROMISE RELATING TO THE PERSONAL PROPERTY THAT
WOULD CONFORM TO ANY SUCH AFFIRMATION OR PROMISE. SELLER DISCLAIMS ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE WHATEVER WITH RESPECT TO THE PERSONAL PROPERTY. THE PERSONAL PROPERTY IS SOLD ON AN “AS IS” BASIS. 

Dated:             . 

 

	
	SELLER:

  
 Exhibit
C 

 EXHIBIT D 
 ASSIGNMENT OF CONTRACTS 
 THIS ASSIGNMENT, made as of
            ,             , by and between
            , a              (“Seller”), and
            , a              (“Buyer”), 

W I T N E S S E T H: 
 For valuable consideration, receipt of which is acknowledged, Seller and Buyer agree as follows: 
 1. Assignment and Assumption. 
 (a) Seller hereby assigns and transfers to
Buyer all right, title and interest of Seller in, to and under the contracts (the “Contracts”) described in Exhibit 1 attached hereto and made a part hereof and all warranties and guarantees associated with the property
described in Exhibit 2. 
 (b) Buyer hereby accepts the foregoing assignment, and assumes and agrees to perform all
of the covenants and agreements in the Contracts to be performed by Seller thereunder that arise or accrue from and after the date of this Assignment. 
 2. Indemnification. 
 (a) Seller shall indemnify and defend Buyer against
and hold Buyer harmless from all claims, demands, liabilities, losses, damages, costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements, that are caused by any failure by Seller to perform the obligations
of Seller under the Contracts before the date of this Assignment. Seller’s indemnity obligations under this Assignment shall terminate nine (9) months from the date of this Assignment and in no event shall the aggregate liability of Seller
under this Assignment, that certain Assignment of Leases between Seller and Buyer dated as of March __, 2011 and section 6.1(b) of that certain Purchase Agreement between Seller and Buyer dated as of March __, 2011 exceed Three Million Dollars
($3,000,000). 
 (b) Buyer shall indemnify and defend Seller against and hold Seller harmless from all claims, demands,
liabilities, losses, damages, costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements, that are caused by any failure by Buyer to perform the obligations of Buyer under the Contracts first accruing on or
after the date of this Assignment. 
 3. Further Assurances. Seller and Buyer agree to execute such other documents and
perform such other acts as may be reasonably necessary or proper and usual to effect this Assignment. 
 4. Governing
Law. This Assignment shall be governed by and construed in accordance with the laws of the State of Oregon. 
  

  
 Exhibit D

 5. Successors and Assigns. This Assignment shall be binding upon and shall inure to
the benefit of Seller and Buyer and their respective personal representatives, heirs, successors and assigns. 
 IN WITNESS
WHEREOF, Seller and Buyer have executed this Assignment as of the date first hereinabove written. 
  

	
	SELLER:
	
	BUYER:

  
 Exhibit D

 EXHIBIT E 
 ASSIGNMENT OF PERMITS 
 For valuable consideration, receipt of which is
acknowledged,             , a             (“Seller”), hereby assigns and transfers to
            , a             (“Buyer”), all of Seller’s right, title and interest in, to and
under all building permits, certificates of occupancy and other certificates, permits, licenses and approvals (the “Permits”) pertaining solely to the real property described on Exhibit 1 attached hereto or to Seller’s
interest in all buildings, structures, improvements, machinery, fixtures and equipment affixed or attached to such real property and all easements and rights appurtenant to such real property 

Dated:                     .

  

	
	SELLER:

  
 Exhibit E

 EXHIBIT F-1 
 TENANT ESTOPPEL CERTIFICATE 
 The undersigned (“Tenant”) hereby certifies
to              (“Buyer”), as follows: 
  

	1.	Attached to this Estoppel Certificate as Exhibit 1 is an accurate and complete list of the lease and all amendments and modifications thereto and guaranties
thereof (the “Lease”) by which Tenant leases the space described therein (the “Premises”), which space is located in the building located at 100 SW Main Street, Portland, Oregon (the “Building”),
currently owned by Two Main Development LLC (“Landlord”). The Building, the land on which the Building is located and any other improvements located on such land are herein collectively referred to as the
“Property”. 

  

	2.	The term of the Lease has commenced and the full rent is: [check one] 

  

	 	 ̈	now accruing under the Lease in the amount of $             per month for base rent plus operating
expenses and taxes, subject to adjustment as set forth in the Lease. 

  

	 	 ̈	will begin to accrue on             . 

 

	3.	No monthly rent (excluding security deposits) has been paid more than thirty days in advance except as follows
             (if none, please state “none”). 

  

	4.	Landlord holds a security deposit of $             (if none, please state “none”) and a
letter of credit in the amount of $             (if none, please state “none”) under the Lease. 

 

	5.	The Lease is in full force and effect, has not been amended or modified (except for the amendments or modifications, if any, identified in Exhibit 1 attached to
this Tenant Estoppel Certificate), and constitutes the entire agreement and only lease between Landlord and Tenant relating to the Premises. 

  

	6.	Except as expressly set forth in the Lease, Tenant has not been granted any options to terminate the term of the Lease earlier than the date specified in
Paragraph 2 above, nor any options and/or rights of first refusal to extend the term of the Lease or to lease any other space in the Property. Tenant does not have any outstanding options to purchase, or rights of first refusal or first offer
to purchase, the Premises or any part of the Property. Tenant has no parking rights related to the Premises except as set forth in the Lease. 

  

	7.	To Tenant’s current actual knowledge, as of the date of this Estoppel Certificate, there is no breach or default by Landlord under the Lease and Tenant has no
knowledge of any event which with the giving of notice, the passage of time or both would constitute a default by Landlord under the Lease. To Tenant’s current actual knowledge, as of the date of this Estoppel Certificate, Tenant has no
defense, claim or demand against the landlord, under the Lease or otherwise, which can be offset against rents or other charges due or to become due under the Lease. 

  
 Exhibit F-1

	8.	Tenant has not assigned the Lease or subleased all or any part of the premises thereunder other than by a document identified in Exhibit 1 attached hereto.

  

	9.	Tenant is not a debtor in any bankruptcy case or other insolvency proceeding relating to Tenant. To Tenant’s current actual knowledge, any guarantor of the Lease
(“Guarantor”), as of the date of this Estoppel Certificate is not a debtor in any bankruptcy case or other insolvency proceeding relating to Guarantor. 

 

	10.	All improvements required to be completed by Landlord have been completed and there are no contributions, credits, free rent, rent abatements, deductions or other sums
due to Tenant from Landlord except             . 

Notwithstanding anything contained in this Estoppel Certificate, nothing contained in this Estoppel Certificate shall constitute or be deemed to
constitute an amendment, modification or waiver of any term or condition of the Lease or any right or remedy of Tenant thereunder. In the event of a conflict between the Lease and this Estoppel Certificate, the Lease shall control. 

The foregoing information is accurate and complete. Tenant acknowledges that Buyer will rely on this Tenant Estoppel Certificate in purchasing such
building from the current owner and Tenant agrees that Buyer shall have the right to rely on this Estoppel Certificate in connection therewith. 

Dated:             . 

 

			
	TENANT:
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 Exhibit F-1

 EXHIBIT F-2 
 SELLER ESTOPPEL CERTIFICATE 
 The undersigned (“Landlord”) hereby
certifies to              (“Buyer”),             , as follows: 

 

	1.	Attached to this Estoppel Certificate as Exhibit 1 is an accurate and complete list of the lease and all amendments and modifications thereto and guaranties
thereof (the “Lease”) by which              (“Tenant”) leases the space described therein (the “Premises”), which space is located
in the building located at             , Portland, Oregon (the “Building”), currently owned by
             LLC (“Landlord”). The Building, the land on which the Building is located and any other improvements located on such land are herein collectively
referred to as the “Property”. 

  

	2.	The term of the Lease has commenced and the full rent is: [check one] 

  

	 	 ̈	now accruing under the Lease in the amount of $             per month for base rent plus operating
expenses and taxes, subject to adjustment as set forth in the Lease. 

  

	 	 ̈	will begin to accrue on             . 

 

	3.	No monthly rent (excluding security deposits) has been paid more than thirty days in advance except as follows
             (if none, please state “none”). 

  

	4.	Landlord holds a security deposit of $             (if none, please state “none”) and a
letter of credit in the amount of $             (if none, please state “none”) under the Lease. 

 

	5.	The Lease is in full force and effect, has not been amended or modified (except for the amendments or modifications, if any, identified in Exhibit 1 attached to
this Tenant Estoppel Certificate), and constitutes the entire agreement and only lease between Landlord and Tenant relating to the Premises. 

  

	6.	Except as expressly set forth in the Lease, Tenant has not been granted any options to terminate the term of the Lease earlier than the date specified in
Paragraph 2 above, nor any options and/or rights of first refusal to extend the term of the Lease or to lease any other space in the Property. Tenant does not have any outstanding options to purchase, or rights of first refusal or first offer
to purchase, the Premises or any part of the Property. Tenant has no parking rights related to the Premises except as set forth in the Lease. 

  

	7.	To Landlord’s current actual knowledge, as of the date of this Estoppel Certificate, there is no breach or default by Landlord under the Lease and Landlord has no
knowledge of any event which with the giving of notice, the passage of time or both would constitute a default by Landlord under the Lease. To Landlord’s current actual knowledge, as of the date of this Estoppel Certificate, Tenant has no
defense, claim or demand against the landlord, under the Lease or otherwise, which can be offset against rents or other charges due or to become due under the Lease. 

  
 Exhibit F-2

	8.	To Landlord’s current actual knowledge, Tenant has not assigned the Lease or subleased all or any part of the premises thereunder other than by a document
identified in Exhibit 1 attached hereto. 

  

	9.	To Landlord’s current actual knowledge, Tenant is not a debtor in any bankruptcy case or other insolvency proceeding relating to Tenant. To Landlord’s current
actual knowledge, any guarantor of the Lease (“Guarantor”), as of the date of this Estoppel Certificate is not a debtor in any bankruptcy case or other insolvency proceeding relating to Guarantor. 

 

	10.	All improvements required to be completed by Landlord have been completed and there are no contributions, credits, free rent, rent abatements, deductions or other sums
due to Tenant from Landlord except             . 

 The
foregoing information is accurate and complete. Landlord acknowledges that Buyer will rely on this Tenant Estoppel Certificate in purchasing such building from the current owner and Tenant agrees that Buyer shall have the right to rely on this
Estoppel Certificate in connection therewith. 
 Dated:             .

 [Signature] 

  
 Exhibit F-2

 EXHIBIT G 
 SELLER’S CLOSING CERTIFICATE 
 For valuable consideration,
receipt of which is acknowledged,              , a              (“Seller”), hereby certifies to
             , a              (“Buyer”), that all representations and warranties made by Seller in
section 5.1 of the Purchase Agreement dated              ,              , between Seller and Buyer (the
“Purchase Agreement”) are materially true and correct on and as of the date of this Certificate except for any changes in the list of Leases attached to the Assignment of Leases from Schedule 2 attached to the Purchase
Agreement (and all such changes are permitted under the terms of the Purchase Agreement) or in the list of Contracts attached to the Assignment of Contracts from Schedule 4 and Schedule 5 attached to the Purchase Agreement. This
Certificate is executed by Seller and delivered to Buyer pursuant to the Purchase Agreement.  
 Dated:
             . 
  

	
	SELLER:

  
 Exhibit G

 EXHIBIT H 
 BUYER’S CLOSING CERTIFICATE 
 For valuable consideration, receipt of
which is acknowledged,              , a              (“Buyer”), hereby certifies to
            , a              (“Seller”), that all representations and warranties made by Buyer in
section 5.2 of the Purchase Agreement dated             ,             , between Seller and Buyer (the
“Purchase Agreement”) are materially true and correct on and as of the date of this Certificate. This Certificate is executed by Buyer and delivered to Seller pursuant to the Purchase Agreement. 

Dated:             . 

 

	
	BUYER:

  
 Exhibit H

 EXHIBIT I 
 CERTIFICATE OF NONFOREIGN STATUS 
 Section 1445 of the Internal
Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including section 1445), the owner of a disregarded entity (which has legal title to a U.S. real
property interest under local law) will be the transferor of the property and not the disregarded entity. To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest by Shorenstein Realty
Investors Eight, L.P., a Delaware limited partnership (“Seller”), the undersigned hereby certifies the following on behalf of Seller: 
 1. Seller is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); 

2. Seller is not a disregarded entity as defined in Income Tax Regulations section 1.1445-2(b)(2)(iii). 

3. Seller’s U.S. employer identification number is             ;
and 
 4. Seller’s office address is             .

 Seller understands that this certification may be disclosed to the Internal Revenue Service by the transferee and that any
false statement contained herein could be punished by fine, imprisonment, or both. 
 Under penalties of perjury I declare that
I have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of Seller. 

Dated:             . 

 

	
	SELLER:

  
 Exhibit I

 EXHIBIT J 
 SEC REQUIREMENTS 
 For the period of time commencing on the date of the
Agreement to which this Exhibit is attached, and continuing through the second (2nd) anniversary of the Closing Date, Seller shall, from time to time, upon reasonable advance notice from Buyer, provide Buyer and its representatives, agents and employees with access to review and
copy, in Seller’s offices, all financial and other information in Seller’s possession relating to the Property and pertaining to the period of Seller’s ownership and operation of the Property, which information is relevant and
reasonably necessary, in the reasonable opinion of the outside, third party accountants (the “Accountants”) of AAT, to enable AAT and its Accountants to prepare financial statements in compliance with any or all of (a) Rule 3-14 of
Regulation S-X of the Commission; (b) any other rule issued by the Commission and applicable to AAT; and (c) any other applicable requirements of any registration statement, report or disclosure statement filed with the Commission by, or
on behalf of, AAT. Seller acknowledges and agrees that the following is a representative description of the information and documentation that AAT and the Accountants may require in order to comply with (a), (b) and (c) above: 

Rent rolls for the calendar month in which the Closing occurs and the eleven (11) calendar months immediately preceding the calendar
month in which the Closing occurs; 
 Seller’s written analysis of both (a) scheduled increases in base rent required
under the Leases in effect on the Closing Date; and (b) rent concessions imposed pursuant to those Leases, of (a) and (b), provided Seller is not obligated to prepare any such analysis and need only provide any such analysis as may exist
and be in Seller’s possession; 
 Seller’s internally-prepared Operating Statements; 

Leases; 

  
 Exhibit J

 Tax bills; 
 Seller’s cash receipt journal(s) and bank statements; 
 Seller’s general
ledger; 
 Seller’s schedule of expense reimbursements required under Leases in effect on the Closing Date; 

Schedule of those items of repairs and maintenance performed by, or at the direction of Seller, during Seller’s final fiscal year in
which Seller owns and operates the Property (the “Final Fiscal Year”); 
 Schedule of those capital improvements and
fixed asset additions made by, or at the direction of, Seller during the Final Fiscal Year; 
 Seller’s invoices with
respect to expenditures made during the Final Fiscal Year; 
 Access (during normal and customary business hours) to responsible
personnel to answer accounting questions; and 
 A representation letter in such form as is reasonably required by Buyer, signed
by the individual(s) responsible for Seller’s financial reporting, which representation letter may be required to assist the Accountants in rendering an opinion on such financial statements (provided it is understood that Seller’s
financial statements may be prepared on a Federal Income Tax accrual basis of accounting). 

  
 Exhibit J

 EXHIBIT K 
 FORM AUDIT LETTER 
 (Letterhead of Seller) 

Ladies and Gentlemen: 
 We are providing this
letter in connection with your audit of the balance sheet of Two Main Development LLC (the “Property”) as of December 31, 2010, and the related statements of operations, member’s capital and cash flows for the year then ended,
for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of the Property in conformity with accounting principles generally
accepted in the United States of America (“GAAP”). Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or
misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. Materiality
limitations do not apply to representations not directly related to amounts included in the financial statements. 
 We confirm, to our actual
knowledge, the following representations made to you during your audit: 
 1. The financial statements referred to above are fairly presented in
conformity with GAAP. 
 2. There have been no: 
 (a) Circumstances that have resulted in communications from the Property’s external legal counsel reporting evidence of a material violation of securities law or breach of fiduciary duty, or similar
violation by the Property or any agent thereof. 
 (b) Communications from regulatory agencies concerning noncompliance with, or deficiencies
in, financial reporting practices. 
 3. There are no: 
 (a) Violations or possible violations of laws or regulations, whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. 

(b) Unasserted claims or assessments that our lawyers have advised us are probable of assertion and must be disclosed in accordance with Financial
Accounting Standards Board (“FASB”) Accounting Standards Certification (“ASC”) Section 450- Contingencies.  

  
 Exhibit K

 (c) Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GAAP.

 (d) Material transactions that have not been properly recorded in the accounting records underlying the financial statements. 

(e) Events that have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in
the financial statement. 
 4. We acknowledge our responsibility for the design and implementation of programs and controls to prevent, deter
and detect fraud. We understand that the term “fraud” includes misstatements arising from fraudulent financial reporting and misstatements arising from misappropriation of assets. 
 Misstatements arising from fraudulent financial reporting are intentional misstatements, or omissions of amounts or disclosures in financial statements to deceive financial statement users. Misstatements
arising from misappropriation of assets involve the theft of an entity’s assets where the effect of the theft causes the financial statement not to be presented in conformity with GAAP. 
 5. We have no knowledge of any fraud or suspected fraud affecting the Property involving: 
 (a)
Management, 
 (b) Employees who have significant roles in internal control over financial reporting, or 

(c) Others where the fraud could have a material effect on the financial statements. 
 6. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, short sellers, or others.

 7. The Property has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.

 8. We have no knowledge of any officer or director of the Property, or any other person acting under the direction thereof, having taken any
action to fraudulently influence, coerce, manipulate or mislead you during your audit. 
 9. The following have been properly recorded or
disclosed in the financial statement: 
 (a) Related party transactions including sales, purchases, loans, transfers, leasing arrangements,
guarantees, ongoing contractual commitments and amounts receivable from or payable to related parties. 

  
 Exhibit K

 We understand that the term “related party” refers to affiliates of the enterprise; entities for
which investments are accounted for by the equity method by the enterprise; trusts for the benefit of employees, such as pension and profit sharing trusts that are managed by or under the trusteeship of management; principal owners of the
enterprise; its management; members of the immediate families of principal owners of the enterprise and its management; and other parties with which the enterprise may deal if one party controls or can significantly influence the management or
operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Another party also is a related party if it can significantly influence the management or operating
policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its
own separate interests. 
 (b) Guarantees, whether written or oral, under which the Property is contingently liable, including guarantee
contracts and indemnification agreements. 
 (c) Significant estimates and material concentrations known to management that are required to be
disclosed in accordance with the AICPA’s Statement of Position (SOP) 94-6, Disclosure of Certain Significant Risks and Uncertainties. Significant estimates are estimates at the balance sheet date, which could change materially within the
next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which it is reasonably possible that events could occur which would significantly disrupt normal finances within the
next year. Concentrations include material sources of financing, including off· balance sheet arrangements and transactions with unconsolidated, limited purpose entities, and contingencies inherent in the arrangements, that are reasonably
likely to affect the continued availability of liquidity and financing. 
 10. The Property has satisfactory title to all owned assets, and
there are no liens or encumbrances on such assets, nor has any asset been pledged as collateral, except as disclosed in the financial statements. 
 11. The Property has complied with all aspects of contractual agreements that would have a material effect on the financial statement in the event of noncompliance. 

Further, we confirm that we are responsible for the fair presentation in the financial statements of financial position, results of operations and cash
flows in conformity with GAAP. 
  

	
	Very truly yours,

  
 Exhibit K

 Schedule 2 – List of Leases 

USA GSA Armed Forces Recruiting (LOR07177) 
  

	 	1.	Special Requirements Package, dated 1/21/10 

  

	 	2.	Attachment 2 to SFO No. 9OR2095 

  

	 	3.	Solicitation for Offers, dated 3/4/10 

  

	 	4.	Proposal to Lease Space (for SFO 9OR2095), dated 3/31/10 

  

	 	5.	General Clauses 

  

	 	6.	Lease Agreement, dated 4/21/10 

  

	 	7.	Supplemental Lease Agreement No. 1, dated 7/26/10 

  

	 	8.	Representations and Certifications, dated 8/25/10 

  

	 	9.	Supplemental Lease Agreement No. 2, dated 9/13/10 

  

	 	10.	Supplemental Lease Agreement No. 3, dated 12/16/10 

 USA GSA Drug Enforcement Administration (LOR07127) 
  

	 	1.	Special Requirements Package, dated 9/16/09 

  

	 	2.	Solicitation for Offers, dated 10/13/09 

  

	 	3.	Amendment 1 to Solicitation for Offers 9OR2096, dated 11/24/09 

  

	 	4.	Amendment 2 to Solicitation for Offers 9OR2096, dated 12/3/09 

  

	 	5.	Amendment 3 to Solicitation for Offers 9OR2096, dated 12/22/09 

  

	 	6.	Proposal to Lease Space (for SFO 9OR2096), dated 1/21/10 

  

	 	7.	General Clauses 

  

	 	8.	Lease Agreement, dated 1/27/10 

  

	 	9.	Supplemental Lease Agreement No. 1, dated 5/21/10 

  

	 	10.	Supplemental Lease Agreement No. 2, dated 7/14/10 

  

	 	11.	Representations and Certifications, dated 8/25/10 

  

	 	12.	Supplemental Lease Agreement No. 3, dated 10/5/10 

  

	 	13.	Supplemental Lease Agreement No. 4, dated 12/16/10 

 USA GSA Internal Revenue Service (LOR07128) 
  

	 	1.	Special Requirements Package, dated 9/17/09 

  

	 	2.	Solicitation for Offers, dated 12/7/09 

  

	 	3.	Amendment 1 to Solicitation for Offers 9OR2122, dated 12/22/09 

  

	 	4.	Amendment 2 to Solicitation for Offers 9OR2122 

  

	 	5.	Proposal to Lease Space (for SFO 9OR2122), dated 1/21/10 

  

	 	6.	General Clauses 

  

	 	7.	Lease Agreement, dated 1/27/10 

  

	 	8.	Supplemental Lease Agreement No. 1, dated 6/9/10 

  

	 	9.	Supplemental Lease Agreement No. 3, dated 8/24/10 

  

	 	10.	Representations and Certifications, dated 8/25/10 

  

	 	11.	Supplemental Lease Agreement No. 4, dated 9/13/10 

  

	 	12.	Supplemental Lease Agreement No. 5, dated 11/10/10 

  

	 	13.	Supplemental Lease Agreement No. 6, dated 12/16/10 

 USA GSA Internal Revenue Service (LOR07130) 

 

	 	1.	Special Requirements Package, dated 10/13/09 

  

	 	2.	Solicitation for Offers, dated 11/17/09 

  

	 	3.	Amendment 1 to Solicitation for Offers 9OR2121, dated 12/17/09 

  

	 	4.	Amendment 2 to Solicitation for Offers 9OR2121, dated 12/22/09 

  

	 	5.	Proposal to Lease Space (for SFO 9OR2121), dated 1/21/10 

  

	 	6.	General Clauses 

  

	 	7.	Lease Agreement, dated 1/27/10 

  

	 	8.	Supplemental Lease Agreement No. 1, dated 6/9/10 

  

	 	9.	Supplemental Lease Agreement No. 2, dated 8/24/10 

  

	 	10.	Representations and Certifications, dated 8/25/10 

  

	 	11.	Supplemental Lease Agreement No. 3, dated 9/23/10 

  

	 	12.	Supplemental Lease Agreement No. 4, dated 11/22/10 

  

	 	13.	Supplemental Lease Agreement No. 5, dated 1/28/11 

 USA GSA US Department of Agriculture (LOR07146) 
  

	 	1.	Special Requirements Package, dated 10/15/09 

  

	 	2.	Solicitation for Offers, dated 1/6/10 

  

	 	3.	Proposal to Lease Space (for SFO 9OR2109), dated 1/20/10 

  

	 	4.	General Clauses 

  

	 	5.	Lease Agreement, dated 3/11/10 

  

	 	6.	Supplemental Lease Agreement No. 1, dated 6/9/10 

  

	 	7.	Supplemental Lease Agreement No. 2, dated 8/9/10 

  

	 	8.	Representations and Certifications, dated 8/25/10 

  

	 	9.	Supplemental Lease Agreement No. 3, dated 9/13/10 

  

	 	10.	Supplemental Lease Agreement No. 4, dated 12/16/10 

 USA GSA Veterans Benefits Administration (LOR07129) 
  

	 	1.	Special Requirements Package, dated 9/30/09 

  

	 	2.	Solicitation for Offers, dated 10/28/09 

  

	 	3.	Amendment 1 to Solicitation for Offers 9OR2105, dated 12/9/09 

  

	 	4.	Amendment 2 to Solicitation for Offers 9OR2105, dated 12/22/09 

  

	 	5.	Proposal to Lease Space (for SFO 9OR2105), dated 1/8/10 

  

	 	6.	General Clauses 

  

	 	7.	Lease Agreement, dated 1/27/10 

  

	 	8.	Supplemental Lease Agreement No. 1, dated 5/21/10 

  

	 	9.	Supplemental Lease Agreement No. 2, dated 7/26/10 

  

	 	10.	Supplemental Lease Agreement No. 4, dated 8/9/10 

  

	 	11.	Memo, dated 8/16/10 

  

	 	12.	Representations and Certifications, dated 8/25/10 

  

	 	13.	Supplemental Lease Agreement No. 5, dated 9/13/10 

  

	 	14.	Supplemental Lease Agreement No. 6, dated 11/22/10 

  

	 	15.	Supplemental Lease Agreement No. 7, dated 12/16/10 

  

	 	16.	Supplemental Lease Agreement No. 8, dated 1/28/11 

 Portland Energy Conservation, Inc. 
  

	 	1.	Lease Agreement, dated 8/26/10 

  

	 	2.	Commencement Letter, dated 2/1/11 

 Storage Agreements 

 

	 	1.	Storage Lease Agreement, dated 1/4/11 

USAgencies Credit Union 
  

	 	1.	Lease Agreement, dated 10/12/10 

  

	 	2.	Commencement Letter, dated 11/16/10 

 tw
telecom of oregon llc 
  

	 	1.	Communications License Agreement, dated 3/31/09 

  

	 	2.	First Amendment to Communications License Agreement, dated 5/29/09 

  

	 	3.	Confirmation of Relevant Dates, dated 12/20/10 

Integra Telecom of Oregon, Inc. 
  

	 	1.	Communications License Agreement, dated 6/18/09 

 Schedule 3 – Excluded Personal Property 

 

					
	 Description of Property
	  	 Quantity
	  	 Location

			
	Signage	  		  	
	 Type 21 - Entrance Closed - Silver
	  	1	  	Storage Behind Mailroom
	 Type 21 - Please Pardon Inconvenience - Silver
	  	1	  	Storage Behind Mailroom
	 Type 22 - Caution Please Watch Step
	  	1	  	Storage Behind Mailroom
	 Type 22 - Caution - Wet Floor at Revolving Door 
	  	2	  	Storage Behind Mailroom
	 Type 25 - Restroom Closed Door Hanger
	  	5	  	Storage Behind Mailroom
	 Type 28 - Caution Wet Floor
	  	5	  	Storage Behind Mailroom
	 Type 69 - Please Pardon Inconvenience - Silver
	  	4	  	Storage Behind Mailroom
	 Safety Cone Signs-Icy Conditions/Men Working
	  		  	
	 Above
	  	12	  	Storage Behind Mailroom
	 Safety Cones & Accessories
	  	10	  	Storage Behind Mailroom
	 Loading Dock Signs
	  	3	  	Loading Dock
	 No Smoking Building Signs
	  	6	  	Building Exterior
	 No Parking - Compactor
	  	1	  	Loading Dock

 Schedule 4 – Construction Contracts & Warranties 

Construction Contracts: 

Core & Shell – Hoffman Construction 
 AIA Document A111 – 1997 
  

	 	•	 	 Standard Form of Agreement between Owner (Two Main LLC) and Contractor (Hoffman Construction Company of Oregon), dated 11/12/2007

 AIA Document A201 – 1997 

 

	 	•	 	 General Conditions of the Contract for Construction (including Exhibits A to I) Contract Correction Letter, dated 11/12/2007

 Core & Shell – Architect 
 AIA Document B141 – 1997 
  

	 	•	 	 Standard Form of Agreement between Owner (Two Main Development, LLC) and Architect (GBD Architects, Incorporated), dated 2/14/2008

 GBD Sub-Consultant PL Insurance Requirements Letter, dated 

2/28/2008 GSA Tenant Improvement Construction Contracts 
 Implementation Letter (DEA) 
  

	 	•	 	 Between Owner (Two Main Development, LLC) and Contractor (Lease Crutcher Lewis, LLC), dated 4/5/2010 

Implementation Letter (IRS – Permanent) 
  

	 	•	 	 Between Owner (Two Main Development, LLC) and Contractor (Lease Crutcher Lewis, LLC), effective date 4/5/2010 and agreement date 6/14/2010

 Implementation Letter (IRS – Temporary) 

 

	 	•	 	 Between Owner (Two Main Development, LLC) and Contractor (Lease Crutcher Lewis, LLC), effective date 4/5/2010 and agreement date 6/14/2010

 Implementation Letter (USDA OIG) 

 

	 	•	 	 Between Owner (Two Main Development, LLC) and Contractor (Lease Crutcher Lewis, LLC), effective date 4/5/2010 and agreement date 6/11/2010

 Implementation Letter (VBA) 

 

	 	•	 	 Between Owner (Two Main Development, LLC) and Contractor (Lease Crutcher Lewis, LLC), effective date 4/5/2010 and agreement date 6/11/2010

 Bike Hub Amenity Contract 
 Implementation Letter (Bike Hub), dated 1/26/2011 
  

	 	•	 	 Agreement Between Owner (Shorenstein Realty Services, LP, a California Limited Partnership) and Contractor (Lease Crutcher Lewis, LLC) made pursuant to
the On-Call Agreement between SRS and Contractor dated 10/31/2008 

 PECI Construction Contract 

Implementation Letter (Portland Energy Conservation, Inc.), dated 10/3/2010 

 

	 	•	 	 Agreement Between Owner (Shorenstein Realty Services, LP, a California Limited Partnership) and Contractor (Lease Crutcher Lewis, LLC) made pursuant to
the On-Call Agreement between SRS and Contractor dated 10/31/2008 

 Schedule 1 Modification Notice 

AIA Document B141 – 1997 between Shorenstein Realty Services, LP, a California Limited Partnership, (“Owners Agent”), and GBD Architects
Incorporated, (“Architect”), dated 2/17/2011 
 AIA Document A111 – 1997 between Shorenstein Realty Services, LP, a California
Limited Partnership, (“Owners Agent”), and Lease Crutcher Lewis, LLC, (“Contractor”), dated 3/12/2010 
 Construction
Warranties 
 Letter of Warranty for Project: Shorenstein Realty Services: GSA First and Main – VBA Suite; Job #PC10585, dated
8/31/2010 
 Letter of Warranty for Project: Shorenstein Realty Services: GSA First and Main – DEA Suite; Job #PC10584, dated 8/31/2010

 Letter of Warranty for Project: Shorenstein Realty Services: GSA First and Main – AFR Suite; Job #PC10591, dated 8/31/2010 

Letter of Warranty for Project: Shorenstein Realty Services: GSA First and Main – OIG Suite; Job #PC10590, dated 8/31/2010 

Letter of Warranty for Project: Shorenstein Realty Services: GSA First and Main – IRS-P Suite; Job #PC10586, dated 8/31/2010 

Letter of Warranty for Project: Shorenstein Realty Services: GSA First and Main – IRS-T Suite; Job #PC10587, dated 8/31/2010 

 Schedule 5 – Service Contracts 

Alarm Monitoring 
 Agreement for Alarm
Monitoring Services, between Shorenstein Realty Services, L.P. and Convergint Technologies, LLC, dated June 1, 2010 (includes 6 other downtown properties). 
 Architects 
 Agreement between SRS and GBD Architects Incorporated, dated May 1, 2009.
Modification notice dated February 17, 2011 reflecting Schedule 1 changes. 
 Carpet Cleaning 

Agreement between SRS and Millennium Building Services, dated February 11, 2011. 
 Compactor Maintenance 
 Agreement for Project Services, between Shorenstein Realty Services,
L.P. and Wessco, dated August 5, 2010. 
 Communications License 
 Communications License Agreement between Two Main Development LLC and Comcast of Tualatin Valley, Inc., dated April 26, 2010. 
 Fire System Testing 
 Agreement for Fire System Testing & Inspection &
Preventative Maintenance, between Shorenstein Realty Services, L.P. and Convergint Technologies, dated January 18, 2011. 
 General
Contractors 
 Agreement between Shorenstein Realty Services, L.P. and Lease Crutcher Lewis, October 31, 2008. Extension letter dated
October 29, 2010 (extends contract to May 31, 2011). Modification Notice dated March 12, 2010 reflecting Schedule 1 changes. 

Janitorial Services 
 Janitorial Services
Agreement, between Shorenstein Realty Services, L.P. and GCA Services Group, dated August 1, 2010. 
 Landscaping 

Service Contract between Teufel Nursery, Inc. and Two Main Development, LLC, dated February 25, 2011. 

Life Safety System Maintenance & Testing 
 Agreement for Alarm Monitoring Services, between Shorenstein Realty Services, L.P., and Convergint Technologies, LLC, dated June 1, 2010. 
 Life Safety System Confidence Testing (Sprinkler System) 
 Fire Sprinkler Confidence
Testing, Agreement for Project Services, between Shorenstein Realty Services, L.P. and Pacific Fire Systems, LLC, dated February 1, 2011 

 Parking Garage 
 Parking Management and Services Agreement between Shorenstein Realty Services, L.P. and City Center Parking, dated October 11, 2010. 
 Security Services 
 Security Services Agreement, between Shorenstein Realty Services, L.P.
and ABM Security Services, dated January 14, 2011. 
 Waste Removal 
 Agreement for Project Services, Waste & Recycling Removal Services, between Shorenstein Realty Services, L.P., and Allied Waste Services, dated April 1, 2010. 

Window Washing 
 Agreement for Project
Services, between Shorenstein Realty Services, L.P. and Premier Cleaning Services, LLC, dated January 12, 2011. 
 National Contracts

 Carpet & Floor Cleaning 
 Agreement for Project Services, between Shorenstein Realty Services, L.P. and Northwest Commercial Carpet & Floor Cleaning, dated January 1, 2008. 

Construction 
 AIA Document A111 –
1997, Standard Form of Agreement between Shorenstein Realty Services, L.P., and Howard S. Wright Constructors, dated October 31, 2008. Schedule 1 Modification Notice, dated March 12, 2010. Contract Extension Letter, dated October 29,
2010. 
 AIA Document A111 – 1997, Standard Form of Agreement between Shorenstein Realty Services, L.P., and Russell Construction, Inc.,
dated October 31, 2008. 
 AIA Document A111 – 1997, Standard Form of Agreement between Shorenstein Realty Services, L.P., and Walsh
Construction Co./Oregon, dated October 31, 2008. Schedule 1 Modification Notice, dated March 12, 2010. 
 Elevator / Escalator
Maintenance 
 Elevator / Escalator Maintenance Agreement, between Shorenstein Realty Services, L.P. and Kone, Inc., dated October 1,
2007. 
 Engineering Services 

Engineering Services Agreement, between Shorenstein Realty Services, L.P. and Able Engineering Services, Inc., dated December 1, 2010. 

 Environmental Consulting Services 
 Agreement for Environmental Consulting Services, between MACTEC Engineering and Consulting, Inc. and Shorenstein Realty Services, L.P., dated October 30, 2007. First Amendment to Agreement for
Project Services, dated July 1, 2009. 
 Lease Administration 
 Agreement for Project Services, between Shorenstein Realty Services, L.P. and Realogic Analytics, Inc., dated May 11, 2009. 
 Vendor and Tenant Insurance Certificate Tracking 
 Agreement for Project Services between
Shorenstein Realty Services, L.P. and Business Credentialing Services, dated October 1, 2009. 

 Schedule 6 – List of Building, Engineering and Environmental Reports

 Building Reports: 
 Window Test Report #1 (B2728.00 – First & Main), dated 5/1/2009 
  

	 	•	 	 Submitted by RDH Building Sciences Inc. for Window L9 Benson Curtainwall 1 

 Window Test Report #2 (B2728.00 – First & Main), dated 5/1/2009 
  

	 	•	 	 Submitted by RDH Building Sciences Inc. for Window L9 Benson Curtainwall 2 

 Window Test Report #3 (B2728.00 – First & Main), dated 6/18/2009 
  

	 	•	 	 Submitted by RDH Building Sciences Inc. for Window L4 Benson Curtainwall South 

Window Test Report #4 (B2728.00 – First & Main), dated 9/2009 

 

	 	•	 	 Submitted by RDH Building Sciences Inc. for Window L16 Benson Curtainwall South 

Window Test Report #5 (B2728.00 – First & Main), dated 3/10/2010 

 

	 	•	 	 Submitted by RDH Building Sciences Inc. for Window L1 Benson Curtainwall South 

Window Test Report #6 (B2728.00 – First & Main), dated 3/10/2010 

 

	 	•	 	 Submitted by RDH Building Sciences Inc. for Window L1 Fin Wall Location 1 

 Window Test Report #7 (B2728.00 – First & Main), dated 3/10/2010 
  

	 	•	 	 Submitted by RDH Building Sciences Inc. for Window L1 Fin Wall Location 2 

 Environmental Reports: 
 Phase I Environmental Site Assessment Report, dated
6/20/2000 
  

	 	•	 	 City Center Parking Lot, 1124 SW 2nd Street, Portland, OR 

 

	 	•	 	 Submitted by SECOR International Incorporated for Urban Growth Property Trust 

State of Oregon Department of Environmental Quality Memorandum 
  

	 	•	 	 Conditional No Further Action Recommendation, First & Main site, ECSI# 4085, dated 6/11/2009 

State of Oregon Department of Environmental Quality 
  

	 	•	 	 Conditional No Further Action Determination, First and Main Office Building, City block of in Multnomah County, Tax Lot number 600, Tax Map 1S/1E-03BD,
ESCI Site ID No. 4085, dated 10/13/2009 

 Closure Report, Proposed First and Main Office Building, dated 3/3/2009 

 

	 	•	 	 By GeoDesign, Inc. for Oregon Department of Environmental Quality, Northwest Region and Shorenstein Realty Services, LP 

Memorandum RE: First and Main Office Building (ESCI No. 4085), Additional Soil Excavation and Oversight 

 

	 	•	 	 GeoDesign, Inc., dated 12/1/2009 

 Schedule 7 – Seller Disclosures 

NONE 

 Schedule 8 – Security Deposits and Letter of Credit 

NONE 

 Schedule 9 – Pending New Leases and Lease Amendments 

Starbucks Corporation 
 Commercial Lease
Agreement by and between Two Main Development, LLC and Starbucks Corporation for 1,782 USF for a lease term of ten (10) years and base rent of $21.00 psf/year for lease years 1 through 5 and $23.10 psf/year for lease years 6 through 10.

 USA GSA Internal Revenue Service (LOR07128) 
 Supplemental Lease Agreement No. 7 (for overtime HVAC from 1/29/11 through 4/15/11 at a rate of $55.00 per hour) 
 Non-Binding Letter of Intent – RTJ Enterprises, LLC 
 Received by Seller 3/1/11, dated
2/9/11 from RTJ Enterprises, LLC dba Freshii for retail space of approximately 2,200 SF; terms not mutually agreed upon. 
 Non-Binding
Letter of Intent – Scottrade, Inc. 
 Received by Seller 3/1/11, dated 2/24/11 from Scottrade, Inc. for retail space of approximately
1,600 SF to 1,800 SF; terms not mutually agreed upon. 

 Schedule 10 – Seller TI, LC and Base Building Obligations 

 

					
	 Description
	  	Amount	 
		
	 Starbucks Corporation
	  			
	 Tenant Improvements
	  	$	265,000.00	  
	 Leasing Commissions
	  	$	17,401.00	  
		
	 Portland Energy Conservation, Inc.
	  			
	 Tenant Improvements
	  	$	949,370.00	  
	 Leasing Commissions (to be paid by Seller 3/1/11)
	  	$	360,977.97	  
		
	 Bike Hub Amenity
	  	$	39,500Exhibit 10.10.1

 Exhibit 10.10.1 

 

			
	

 STERLING NATIONAL BANK

 LOAN AND SECURITY AGREEMENT 

BY AND AMONG 
 STERLING NATIONAL BANK, 
 as Administrative Agent and Collateral Agent

 THE LENDERS PARTY HERETO 
 AND 
 CDS BUSINESS SERVICES, INC., 

as Borrower 

DATED AS OF : February 28, 2011 

 Table of Contents 

 

									
	1.	  	THE LOANS	  	 	1	  
				
		  	1.1	  	Loans	  	 	1	  
		  	1.2	  	Revolving Loan Account; Register	  	 	2	  
		  	1.3	  	Interest	  	 	3	  
		  	1.4	  	Maturity Date	  	 	3	  
		  	1.5	  	Overadvances	  	 	3	  
		  	1.6	  	Monthly Statement and Automatic Charges	  	 	4	  
		  	1.7	  	Fees	  	 	4	  
		  	1.8	  	Computations of Interest and Fees	  	 	4	  
		  	1.9	  	Increased Costs; Capital Requirements	  	 	4	  
		  	1.10	  	Taxes	  	 	5	  
		  	1.11	  	Reserved	  	 	6	  
		  	1.12	  	Conditions to Credit Extensions	  	 	6	  
		  	1.13	  	Letters of Credit	  	 	6	  
			
	 2.
	  	GRANT OF SECURITY INTEREST AND COLLATERAL MATTERS	  	 	9	  
				
		  	2.1	  	Grant of Security Interest	  	 	9	  
		  	2.2	  	Borrowing Base	  	 	9	  
		  	2.3	  	Reserved	  	 	9	  
		  	2.4	  	Records	  	 	9	  
		  	2.5	  	Legends	  	 	10	  
		  	2.6	  	Inspection	  	 	10	  
		  	2.7	  	Purchase Money Security Interests	  	 	10	  
		  	2.8	  	Search Reports and Credit Reports	  	 	10	  
		  	2.9	  	Further Assurances	  	 	10	  
			
	 3.
	  	REPRESENTATIONS AND WARRANTIES	  	 	11	  
				
		  	3.1	  	Organization and Qualification	  	 	11	  
		  	3.2	  	Authorization; Enforceability	  	 	11	  
		  	3.3	  	Ownership; Subsidiaries	  	 	11	  
		  	3.4	  	Title to Properties; Absence of Liens and Claims	  	 	11	  
		  	3.5	  	Places of Business	  	 	12	  
		  	3.6	  	Validity and Perfection of Security Interest	  	 	12	  
		  	3.7	  	Governmental Approvals; No Conflicts	  	 	12	  
		  	3.8	  	Permits	  	 	12	  
		  	3.9	  	Litigation and Environmental Matters	  	 	12	  
		  	3.10	  	Investment Company Status	  	 	13	  
		  	3.11	  	Compliance with Law and Agreements	  	 	13	  
		  	3.12	  	Financial Statements	  	 	13	  
		  	3.13	  	Accounts and Contract Rights	  	 	13	  
		  	3.14	  	Title to Collateral	  	 	13	  
		  	3.15	  	Location of Collateral	  	 	13	  
		  	3.16	  	Borrower Taxes	  	 	14	  
		  	3.17	  	Federal Reserve Regulations	  	 	14	  
		  	3.18	  	Labor Matters	  	 	14	  
		  	3.19	  	Insurance	  	 	14	  
		  	3.20	  	Solvency	  	 	14	  
		  	3.21	  	Disclosure	  	 	14	  
		  	3.22	  	ERISA	  	 	14	  
		  	3.23	  	Factoring Documents	  	 	15	  
			
	 4.
	  	AFFIRMATIVE COVENANTS	  	 	15	  

									
				
		  	4.1	  	Payments and Performance	  	 	15	  
		  	4.2	  	Books and Records; Inspection	  	 	15	  
		  	4.3	  	Financial Statements and Reporting	  	 	15	  
		  	4.4	  	Maintenance of Existence; Conduct of Business	  	 	15	  
		  	4.5	  	Compliance with Law	  	 	16	  
		  	4.6	  	Notice to Account Debtors	  	 	16	  
		  	4.7	  	Solvency	  	 	16	  
		  	4.8	  	Operating and Deposit Accounts	  	 	16	  
		  	4.9	  	Payment of Borrower Taxes, Accounts Payable and Other Obligations	  	 	16	  
		  	4.10	  	Maintenance of Collateral	  	 	16	  
		  	4.11	  	Insurance	  	 	16	  
		  	4.12	  	Notification of Material Events	  	 	17	  
		  	4.13	  	Lien Law	  	 	17	  
		  	4.14	  	Environmental	  	 	17	  
		  	4.15	  	Third Parties	  	 	18	  
		  	4.16	  	Use of Proceeds	  	 	18	  
		  	4.17	  	Establishment of Lock Box and Blocked Account	  	 	18	  
		  	4.18	  	Landlord Waiver	  	 	19	  
		  	4.19	  	Borrower Certificate of Incorporation	  	 	19	  
			
	5.	  	NEGATIVE COVENANTS	  	 	19	  
				
		  	5.1	  	Financial Covenants	  	 	19	  
		  	5.2	  	Indebtedness	  	 	19	  
		  	5.3	  	Liens	  	 	20	  
		  	5.4	  	Fundamental Changes	  	 	20	  
		  	5.5	  	Investments, Loans, Advances, Guarantees and Acquisitions	  	 	20	  
		  	5.6	  	Asset Sales	  	 	21	  
		  	5.7	  	Sale-and-Leaseback transactions	  	 	21	  
		  	5.8	  	Restricted Payments	  	 	21	  
		  	5.9	  	Transactions with Affiliates	  	 	21	  
		  	5.10	  	Restrictive Agreements	  	 	22	  
		  	5.11	  	Amendment of Material Documents	  	 	22	  
		  	5.12	  	Lines of Business	  	 	22	  
		  	5.13	  	Accounting Changes	  	 	22	  
		  	5.14	  	Hedging Agreements	  	 	22	  
		  	5.15	  	Factoring Documents	  	 	22	  
			
	6.	  	DEFAULT	  	 	22	  
				
		  	6.1	  	Default	  	 	22	  
		  	6.2	  	Acceleration	  	 	25	  
		  	6.3	  	Other Remedies	  	 	26	  
		  	6.4	  	Power of Attorney	  	 	26	  
		  	6.5	  	Nonexclusive Remedies	  	 	27	  
		  	6.6	  	Reassignment to the Borrower	  	 	27	  
			
	7.	  	AGENT	  	 	27	  
				
		  	7.1	  	Appointment, Authority and Duties of Agent	  	 	27	  
		  	7.2	  	Agreements Regarding Collateral	  	 	29	  
		  	7.3	  	Action Upon Default	  	 	29	  
		  	7.4	  	Remittance of Payments and Collections	  	 	29	  
		  	7.5	  	Ratable Sharing; Allocation	  	 	30	  
		  	7.6	  	Defaulting Lenders	  	 	31	  
		  	7.7	  	Replacement of Lenders	  	 	31	  
		  	7.8	  	Indemnification of Agent Indemnitees	  	 	31	  
		  	7.9	  	Limitation on Responsibilities of Agent	  	 	32	  
		  	7.10	  	Successor Agent	  	 	32	  

  
 -2-

									
		  	7.11	  	Consents, Amendments and Waivers; Overadvances	  	 	32	  
		  	7.12	  	Due Diligence and Non-Reliance	  	 	34	  
		  	7.13	  	Representations and Warranties of Lenders	  	 	34	  
		  	7.14	  	The Required Lenders	  	 	34	  
		  	7.15	  	Several Obligations	  	 	34	  
		  	7.16	  	Agent in its Individual Capacity	  	 	34	  
		  	7.17	  	No Third Party Beneficiaries	  	 	35	  
		  	7.18	  	Notice of Transfer	  	 	35	  
			
	8.	  	MISCELLANEOUS	  	 	35	  
				
		  	8.1	  	Waivers	  	 	35	  
		  	8.2	  	Severability	  	 	35	  
		  	8.3	  	Deposit Collateral	  	 	35	  
		  	8.4	  	Indemnification	  	 	35	  
		  	8.5	  	Costs and Expenses	  	 	35	  
		  	8.6	  	Counterparts	  	 	36	  
		  	8.7	  	Complete Agreement	  	 	36	  
		  	8.8	  	Binding Effect of Agreement	  	 	36	  
		  	8.9	  	Amendments and Waivers	  	 	36	  
		  	8.10	  	Assignment by Lenders	  	 	36	  
		  	8.11	  	Terms of Agreement	  	 	37	  
		  	8.12	  	Notices	  	 	37	  
		  	8.13	  	Governing Law	  	 	38	  
		  	8.14	  	Reproductions; Disclosures	  	 	39	  
		  	8.15	  	Completing and Correcting this Agreement	  	 	39	  
		  	8.16	  	ADDITIONAL WAIVERS	  	 	39	  
		  	8.17	  	Jurisdiction and Venue	  	 	39	  
		  	8.18	  	JURY WAIVER	  	 	39	  
		  	8.19	  	Joint and Several	  	 	39	  
		  	8.20	  	Construction	  	 	40	  
		  	8.21	  	USA PATRIOT Act Notice	  	 	40	  
		  	8.22	  	Foreign Asset Control Regulations	  	 	40	  
		  	8.23	  	Electronic Execution of Documents	  	 	40	  
			
	9.	  	GENERAL PROVISIONS RELATED TO NEWTEK	  	 	40	  
				
		  	9.1	  	Taxes	  	 	40	  
		  	9.2	  	Credit Reports and Disclosure	  	 	41	  
			
	10.	  	NEWTEK’S REPRESENTATIONS AND WARRANTIES	  	 	41	  
				
		  	10.1	  	Authorization; Enforceability	  	 	41	  
		  	10.2	  	Governmental Approvals; No Conflicts	  	 	41	  
		  	10.3	  	Permits	  	 	42	  
		  	10.4	  	Litigation and Environmental Matters	  	 	42	  
		  	10.5	  	Investment Company Status	  	 	42	  
		  	10.6	  	Compliance with Law and Agreements	  	 	42	  
		  	10.7	  	Federal Reserve Regulations	  	 	42	  
		  	10.8	  	Labor Matters	  	 	42	  
		  	10.9	  	Solvency	  	 	42	  
		  	10.10	  	Disclosure	  	 	42	  
		  	10.11	  	ERISA	  	 	43	  
			
	11.	  	NEWTEK AFFIRMATIVE COVENANTS	  	 	43	  
				
		  	11.1	  	Payments and Performance	  	 	43	  
		  	11.2	  	Books and Records; Inspection	  	 	43	  
		  	11.3	  	Maintenance of Existence; Conduct of Business	  	 	43	  
		  	11.4	  	Compliance with Law	  	 	43	  

  
 -3-

									
		  	11.5	  	Solvency	  	 	43	  
		  	11.6	  	Operating and Deposit Accounts	  	 	43	  
		  	11.7	  	Payment of Newtek Taxes, Accounts Payable and Other Obligations	  	 	43	  
		  	11.8	  	Environmental	  	 	44	  
		  	11.9	  	Third Parties	  	 	44	  
			
	12.	  	NEWTEK NEGATIVE COVENANTS	  	 	44	  
				
		  	12.1	  	Financial Covenants	  	 	44	  
		  	12.2	  	Fundamental Changes	  	 	44	  
		  	12.3	  	Lines of Business	  	 	45	  
		  	12.4	  	Accounting Changes	  	 	45	  
		  	12.5	  	Deposit Collateral	  	 	45	  

 EXHIBITS 

A - Borrowing Base Certificate 
 SCHEDULES

 3.1 Organization and Qualification 
 3.3 Ownership; Subsidiaries 
 3.4 Title to Properties; Absence of Liens and Claims 

3.5 Places of Business 
 3.9 Litigation and
Environmental Matters 
 3.15 Location of Collateral 
 3.19 Insurance 
 3.23 Factoring Documents 

5.2 Existing Indebtedness 
 5.5 Existing
Investments 
 ANNEXES 

1 - Definitions 
 2 - Terms and Conditions of
Facility (including fees, financial reporting and financial covenants) 

  
 -4-

			
	

 STERLING NATIONAL BANK

 LOAN AND SECURITY AGREEMENT 

This LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into at New York, New York, as of
February 28, 2011, by and among CDS BUSINESS SERVICES, INC., a Delaware corporation, with its chief executive office located at 60 Hempstead Avenue, 6th Floor, West Hempstead, New York 11552 (the “Borrower”), THE LENDERS PARTY HERETO
(collectively, the “Lenders”) and STERLING NATIONAL BANK, a national banking association, with an address of 500 Seventh Avenue, New York, New York 10018-4603 (the “Agent”). 

FOR VALUE RECEIVED, and in consideration of the granting by the Lenders of financial accommodations to or for the benefit of the
Borrower, including without limitation respecting the Obligations, each Loan Party represents and agrees with the Agent and the Lenders, as of the date hereof and as of the date of each loan, credit and/or other financial accommodation, as follows:

 1. THE LOANS 

1.1 Loans. Subject to the terms and conditions of this Agreement and the other Loan Documents, during the term of this Agreement, the Agent,
absent the occurrence of a Default or an Event of Default, may direct the Lenders, in its sole discretion, to make revolving loans to Borrower (the “Revolving Loans”) in an amount not to exceed the lesser of the Borrowing Base and
the Maximum Facility Amount (but subject to Section 1.5 below), except as such amount may be decreased by the Required Lenders, in their sole discretion. Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, repay and reborrow Revolving Loans. 
 A request for a Revolving Loan shall be made or shall be deemed to be
made, each in the following manner: the Borrower shall give the Agent same-day notice, no later than 12:30 p.m. on any Business Day, of its request for a Revolving Loan, in which notice the Borrower shall specify the amount of the proposed Revolving
Loan and the proposed borrowing date; provided, however, that no such request may be made at a time when there exists a Default or an Event of Default. Each check presented for payment against the Borrower’s controlled disbursement account, if
any, at the Agent and any other charge or request for payment against such controlled disbursement account shall constitute a request for a Revolving Loan. As an accommodation to the Borrower, the Agent may permit telephone requests for Revolving
Loans and electronic transmittal of instructions, authorizations, agreements or reports to the Agent by the Borrower. Unless the Borrower specifically directs the Agent in writing not to accept or act upon telephonic or electronic communications
from the Borrower, the Agent shall have no liability to the Borrower for any loss or damage suffered by the Borrower as result of the Agent’s honoring of any requests, execution of any instructions, authorizations or agreements or reliance on
any reports communicated to it telephonically or electronically and purporting to have been sent to the Agent by the Borrower and the Agent shall have no duty to verify the origin of any such communications or the authority of the Person sending it.

 Each Lender agrees, severally to the extent of its Lending Amount and not jointly with the other Lenders, upon the terms and subject to the
conditions set forth herein, to make Revolving Loans to Borrower on any Business Day if the Agent has agreed, in its discretion, to make such Loan. Each Revolving Loan shall be funded by Lenders on a Pro Rata basis in accordance with their
respective Lending Amounts. Subject to its receipt of notice from Agent of a Revolving Loan, each Lender shall timely honor its Lending Amount by funding its Pro Rata share of each Revolving Loan that is properly requested and that the Borrower is
entitled to receive under this Agreement. The Agent shall endeavor to notify the Lenders of 

 
each request for a Revolving Loan (or deemed request), by 1:30 p.m. on the proposed funding date. Each Lender shall deposit with Agent an amount equal to its Pro Rata share of the Revolving Loan
requested or deemed requested by the Borrower at the Agent’s designated bank in immediately available funds not later than 3:00 p.m. on the date of funding of such Revolving Loan, unless the Agent’s notice to Lenders is received after
1:30 p.m. on the proposed funding date, in which event Lenders shall deposit with Agent their respective Pro Rata shares of the requested Revolving Loan on or before 11:00 a.m. of the next Business Day. Subject to its receipt of such
amounts from the Lenders, Agent shall make the proceeds of the Revolver Loans received by it available to Borrower by disbursing such proceeds in accordance with the Borrower’s disbursement instructions set forth in the applicable Revolving
Loan Request. Neither the Agent nor any Lender shall have any liability on account of any delay by any bank or other depository institution in treating the proceeds of any Revolving Loan as collected funds or any delay in receipt, or any loss, of
funds that constitute a Revolving Loan, the wire transfer of which was initiated by the Agent in accordance with wiring instructions provided to the Agent. Unless the Agent shall have been notified in writing by a Lender prior to the proposed time
of funding that such Lender does not intend to deposit with the Agent an amount equal such Lender’s Pro Rata share of the requested Revolving Loan, Agent may assume that such Lender has deposited or promptly will deposit its share with the
Agent and the Agent may in its discretion disburse a corresponding amount to the Borrower on the applicable funding date. If a Lender’s Pro Rata share of such Revolving Loan is not in fact deposited with the Agent, then, if the Agent has
disbursed to the Borrower an amount corresponding to such share, then such Lender agrees to pay, and in addition the Borrower agrees to repay, to the Agent forthwith on demand such corresponding amount, together with interest thereon, for each day
from the date such amount is disbursed by the Agent to or for the benefit of the Borrower until the date such amount is paid or repaid to the Agent, (a) in the case of the Borrower, at the interest rate applicable to such Borrowing and
(b) in the case of such Lender, at the Wall Street Journal Prime Rate. If such Lender repays to the Agent such corresponding amount, such amount so repaid shall constitute a Revolving Loan, and if both such Lender and the Borrower shall have
repaid such corresponding amount, Agent shall promptly return to the Borrower such corresponding amount in same day funds. A notice from Agent submitted to any Lender with respect to amounts owing under this paragraph shall be conclusive, absent
manifest error. 
 The Borrower hereby irrevocably authorizes the Agent to disburse the proceeds of each Revolving Loan requested by the
Borrower as follows: the proceeds of each Revolving Loan requested under this Section shall be disbursed by the Agent in lawful money of the United States of America in immediately available funds, in the case of the initial borrowing, in accordance
with the terms of the written disbursement letter from Borrower, and in the case of each subsequent borrowing, by credit to any account of Borrower at the Agent or by wire transfer or Automated Clearing House (ACH) transfer to such bank accounts as
may be agreed upon by the Borrower and the Agent from time to time, or elsewhere if pursuant to a written direction from the Borrower. 
 1.2
Revolving Loan Account; Register. An account of the Borrower shall be opened on the books of each Lender in which account (the “Revolving Loan Account”) a record will be kept of all Revolving Loans owing to such Lender, and
all payments thereon and other appropriate debits and credits as provided by this Agreement. No failure of any Lender to make, and no error by any Lender in making, any entry in such books will affect the Borrower’s obligation to repay the full
principal amount advanced by such Lender to or for the account of the Borrower or the Borrower’s obligation to pay interest thereon at the agreed upon rate. Agent shall maintain a register (the “Register”), which shall include
a master account and a subsidiary account for each Lender and in which accounts (taken together) shall be recorded (i) the date and amount of each Revolving Loan made hereunder, (ii) the effective date and amount of each Assignment and
Acceptance delivered to and accepted by it and the parties thereto, (iii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iv) the amount of any sum
received by the Agent from the Borrower or any other Loan Party and each Lender’s Pro Rata share thereof. The Register shall be available for inspection by the Borrower or any Lender at the offices of Agent at any reasonable time and from time
to time upon reasonable prior notice. No failure of the Agent to make, and no error by the Agent in making, any entry in such books will affect the Borrower’s obligation to repay the Obligations or provide the basis for any claim against the
Agent. 

  
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 1.3 Interest. 
  

	 	(a)	Rate. All Loans and the outstanding amount of all other Obligations shall bear interest, in the case of Loans, on the unpaid principal amount thereof from the
date such Loans are made and, in the case of such other Obligations, from the date such other Obligations are due and payable until, in all cases, paid in full, except as otherwise provided in clause (c) below, at the rate(s) set forth
in Section 1 of Annex 2. 

  

	 	(b)	Payments. Interest accrued shall be payable in arrears (i) if accrued on the principal amount of any Loan, at maturity (whether by acceleration or
otherwise) and on the first day of each month commencing on the first such day following the making of such Loan and (ii) if accrued on any other Obligation, on demand from and after the time such Obligation is due and payable (whether by
acceleration or otherwise). 

  

	 	(c)	Default Interest. Notwithstanding the rates of interest specified in clause (a) above or elsewhere in any Loan Document, effective immediately upon
(A) the occurrence of any Event of Default under Sections 6.1(k) or 6.1(l) or (B) the delivery of a notice by the Agent (which Agent may deliver in its discretion or at the direction of the Required Lenders) to the
Borrower during the continuance of any other Event of Default and, in each case, for as long as such Event of Default shall be continuing, the principal balance of all Obligations (including any Obligation that bears interest by reference to the
rate applicable to any other Obligation) then due and payable shall bear interest at a rate that is 5% per annum in excess of the interest rate otherwise applicable to such Obligations from time to time, payable on demand or, in the absence of
demand, on the date that would otherwise be applicable. 

  

	 	(d)	Savings Clause. Anything herein to the contrary notwithstanding, the obligations of the Borrower hereunder shall be subject to the limitation that payments of
interest shall not be required, for any period for which interest is computed hereunder, to the extent (but only to the extent) that contracting for or receiving such payment by the Agent for the benefit of the Lenders would be contrary to the
provisions of any Requirement of Law limiting the highest rate of interest which may be lawfully contracted for, charged or received by the Agent for the benefit of the Lenders, and in such event the Borrower shall pay the Agent interest at the
highest rate permitted by Requirements of Law (“Maximum Lawful Rate”); provided, however, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, the Borrower shall continue to pay
interest hereunder at the Maximum Lawful Rate until such time as the total interest received by the Agent is equal to the total interest that would have been received had the interest payable hereunder been (but for the operation of this paragraph)
the interest rate payable since the Closing Date as otherwise provided in this Agreement. 

 1.4 Maturity Date. The
Borrower hereby unconditionally promises to pay to the Agent, for the benefit of the Lenders, the then unpaid principal amount of all loans and advances made respecting the Revolving Loans, together with all accrued interest thereon and all other
amounts due and payable hereunder in connection with the Revolving Loans, on the Maturity Date or such earlier date following acceleration thereof or the termination of this Agreement. In addition, the Agent’s agreement to advance funds
respecting the Revolving Loans shall expire on the Maturity Date and there shall be no further advances respecting the Revolving Loans. Subject to the fees set forth in Section 12(e) of Annex 2, the Borrower may at any time upon thirty
(30) days written notice to the Agent cancel the Revolving Loan facility in its entirety and terminate this Agreement. 
 1.5
Overadvances. If at any time the outstanding principal amount of the Revolving Loans exceeds the lesser of (i) the Borrowing Base and (ii) the Maximum Facility Amount (such excess being hereinafter referred to as an
“Overadvance”), either without Agent’s consent, as the result of an Eligible Account becoming ineligible (an “Unintentional Overadvance”) or with Agent’s consent, as the result of Agent’s making
additional advances in its discretion, but subject to Section 7.11, that result in an Overadvance (a 

  
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“Permitted Overadvance”), Borrower shall (i) in the case of an Unintentional Overadvance, on demand made by Agent, forthwith pay to Agent such amount as will eliminate the
Overadvance; and (ii) in the case of a Permitted Overadvance, pay to the Agent, on the date specified by the Agent, such amount as will eliminate the Overadvance. At the end of any month in which any Overadvance has occurred, Borrower shall be
charged an Overadvance Fee in the amount set forth in Section 12 of Annex 2. All Overadvances shall be secured by the Collateral. All checks or other items paid by the Agent which cause an overdraft in any deposit account maintained by the
Borrower with the Agent shall, at the option of the Agent, constitute a Revolving Loan (or Overadvance, as the case may be) to the Borrower pursuant to this Agreement and shall be secured by all Collateral. 

1.6 Monthly Statement and Automatic Charges. After the end of each month, the Agent shall render to the Borrower a statement of the Credit
Extensions showing the loan balance and all applicable credits and debits; provided that the failure of the Agent to so render shall in no event limit any Loan Party’s duties and obligations under any Loan Document. Each statement shall be
conclusive, binding and final for all purposes, absent manifest error and deemed to have been accepted by the Borrower and shall be binding upon the Borrower in respect of the loan balance and all charges, debits and credits of whatsoever nature
contained therein respecting the Credit Extensions, unless the Borrower notifies the Agent in writing of any discrepancy within twenty (20) days from the mailing by the Agent to the Borrower of any such monthly statement. At the option of the
Agent, all payments in respect of any Obligation will automatically be debited from any of the Borrower’s accounts, as elected by the Agent. 
 1.7 Fees. The Borrower shall pay to the Agent all of the fees set forth in Section 12 of Annex 2 hereto. 
 1.8 Computations of Interest and Fees. All computations of interest and of fees (other than flat fees) shall be made by the Agent on the basis of a year of 360 days for the actual number of days
(including the first day but excluding the last day) occurring in the period for which such interest and fees are payable. Each determination of an interest rate or the amount of a fee hereunder shall be made by the Agent and shall be conclusive,
binding and final for all purposes, absent manifest error. All fees shall be (a) deemed to be an Obligation, (b) fully earned on the earlier of (i) the date specified such fee is earned or (ii) the date such fee is payable and
(c) nonrefundable and shall not be subject to reduction, rebate or proration whatsoever. For purposes of calculating interest hereunder, all repayment items shall be credited to the Borrower’s account three Business Days after receipt
thereof by the Agent, subject to reversal for any reason in the Agent’s sole reasonable discretion including, but not limited to, dishonor or bankruptcy. 
 1.9 Increased Costs; Capital Requirements. 
  

	 	(a)	Increased Costs. If at any time the Agent or any Lender determines that, after the date hereof, the adoption of, or any change in or in the interpretation,
application or administration of, or compliance with, any law, statute, rule, regulation or other similar Requirements of Law of any Governmental Authority shall have the effect of (i) increasing the cost to the Agent or such Lender of making,
funding or maintaining any Credit Extension or to agree to do so or of participating, or agreeing to participate, in extensions of credit, or (ii) imposing any other cost to the Agent or such Lender with respect to compliance with its
obligations under any Loan Document, then, upon demand by the Agent or such Lender, the Borrower shall pay to the Agent amounts sufficient to compensate the Agent or such Lender for such increased cost. For purposes of this provision, the Dodd-Frank
Wall Street Reform and Consumer Protection Act and all rules, regulations, orders, requests, guidelines and directives in connection therewith are deemed to have been adopted and gone into effect after the date of this Agreement.

  

	 	(b)	 Increased Capital Requirements. If at any time the Agent or any Lender determines that, after the date hereof, the adoption of, or any change in
or in the interpretation, application or administration of, or compliance with, any Requirement of Law from any Governmental Authority regarding capital adequacy, reserves, special deposits, compulsory loans,

  
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insurance charges against property of, deposits with or for the account of, Obligations owing to, or other credit extended or participated in by, the Agent or such Lender or any similar
requirement shall have the effect of reducing the rate of return on the capital of the Agent or such Lender (or any Person controlling the Agent or such Lender) as a consequence of its obligations under or with respect to any Loan Document to a
level below that which, taking into account the capital adequacy policies of the Agent, such Lender or Person, the Agent, such Lender or Person could have achieved but for such adoption or change, then, upon demand from time to time by the Agent,
the Borrower shall pay to the Agent amounts sufficient to compensate the Agent, such Lender or Person for such reduction. 

  

	 	(c)	Compensation Certificate. Each demand for compensation under this Section 1.9 shall be accompanied by a certificate of the Agent or the applicable
Lender claiming such compensation, setting forth in reasonable detail the computation of the amounts to be paid hereunder, which certificate shall be conclusive, binding and final for all purposes, absent manifest error. In determining such amount,
the Agent and any Lender may use any reasonable averaging and attribution methods. 

 1.10 Taxes. 

 

	 	(a)	Payments Free and Clear of Taxes. Except as otherwise provided in this Section 1.10, each payment by Borrower under any Loan Document shall be made
free and clear of all present or future taxes, levies, imposts, deductions, charges or withholdings and all liabilities with respect thereto (and without deduction for any of them) (collectively, the “Taxes”) other than for taxes
measured by net income (including branch profits taxes) and franchise taxes imposed in lieu of net income taxes, in each case imposed on the Agent or any Lender as a result of a present or former connection between the Agent or such Lender and the
jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than such connection arising solely from the Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, any Loan Document). 

  

	 	(b)	Gross-Up. If any Taxes shall be required by law to be deducted from or in respect of any amount payable under any Loan Document to the Agent or any Lender
(i) such amount shall be increased as necessary to ensure that, after all required deductions for Taxes are made (including deductions applicable to any increases to any amount under this Section 1.10), the Agent or such Lender
receives the amount it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall timely pay the full amount deducted to the relevant taxing authority or other authority
in accordance with applicable Requirements of Law. 

  

	 	(c)	Other Taxes. In addition, Borrower agrees to pay, and authorizes the Agent to pay in its name to the extent Borrower fails to do so on prior to the date when
due, any stamp, documentary, excise or property tax, charges or similar levies imposed by any applicable Requirement of Law or Governmental Authority and all liabilities with respect thereto (including by reason of any delay in payment thereof), in
each case arising from the execution, delivery or registration of, or otherwise with respect to, any Loan Document or any transaction contemplated therein (collectively, “Other Taxes”). Within thirty (30) days after the date of
any payment of Taxes or Other Taxes by Borrower, the Borrower shall furnish to the Agent, the original or a certified copy of a receipt evidencing payment thereof. 

 

	 	(d)	 Indemnification. The Entity Loan Parties shall reimburse and indemnify, within thirty (30) days after receipt of demand therefor the
Indemnitees for all Taxes and Other Taxes (including any Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 1.10) paid by such Indemnitee and any liabilities arising therefrom or

  
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with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. A certificate of any Indemnitee claiming any compensation under this clause (d), setting
forth in reasonable detail the computation of the amounts to be paid thereunder and delivered to the Borrower shall be conclusive, binding and final for all purposes, absent manifest error. In determining such amount, an Indemnitee may use any
reasonable averaging and attribution methods. 

 1.11 Reserved. 

1.12 Conditions to Credit Extensions. Without limiting the discretionary nature of any Credit Extension hereunder, the Agent’s and each
Lender’s obligation to make Credit Extensions, including the initial Credit Extension hereunder, shall be subject to the fulfillment by the Borrower on or before the date thereof of the following conditions precedent: 

 

	 	(a)	Representations and Warranties True, Complete and Correct. Each representation and warranty of any Loan Party contained herein and in any agreement or instrument
furnished to the Agent shall be true, complete and correct in all material respects as of the date of said Credit Extension (except for representations which by their terms relate to a different date, in which case said representations and
warranties shall continue to have been true, complete and correct in all material respects as of said date); and 

  

	 	(b)	No Material Adverse Change. There shall have been no Material Adverse Effect since the Closing Date; and 

 

	 	(c)	No Default. There shall have occurred no Event of Default or any condition or event which would upon notice or lapse of time, or both, constitute an Event of
Default; and 

 1.13 Letters of Credit. 
  

	 	(a)	Issuance of Letters of Credit. Subject to all of the terms and conditions hereof, Agent and each Lender agrees to establish the LC Facility pursuant to which,
during the period from the date hereof to the Maturity Date, the Agent and the Lenders on behalf of the Borrower shall make available to the Borrower one or more Letters of Credit on the Borrower’s request therefor from time to time, subject to
the following terms and conditions: 

 (i) The Agent will not be required to issue any Letter of Credit to the
extent that the issuance thereof would cause the LC Obligations exceed the Maximum LC Obligation or the sum of Revolving Loans plus the LC Obligations to exceed the Maximum Facility Amount. 

(ii) The Borrower acknowledges that the Agent’s willingness to issue any Letter of Credit is conditioned upon (a) the
Agent’s receipt of (i) an LC Application executed by an Authorized Person with respect to the requested Letter of Credit, (ii) such LC Support as the Agent, in the exercise of its sole discretion, requests, and (iii) such other
instruments and agreements as the Agent may customarily require for the issuance of a letter of credit of equivalent type and amount as the requested Letter of Credit, and (b) the satisfaction of each of the LC Conditions and compliance with
Section 1.11. In no event shall the Agent have any liability or obligation to Borrower for any failure or refusal by the Agent to issue, for the Agent’s delay in issuing, or for any error of the Agent in issuing or failure to issue,
any Letter of Credit. 
 (iii) Letters of Credit may be requested only if they are to be used (a) to support obligations of
the Borrower incurred in the ordinary course of business of the Borrower, or (b) for such other purposes as the Agent may approve from time to time in writing. 
 (iv) The Borrower shall comply with all of the terms and conditions imposed on it by the Agent, whether such terms and conditions are contained in an LC Application or in any agreement with
respect thereto, shall pay all of the Agent’s fees customarily charged in 

  
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connection with the application for, issuance, and negotiation of letters of credit, and all of the rights and remedies that the Agent has under an LC Application or any agreement related thereto
shall be in addition to any rights and remedies of the Agent contained in any of the Loan Documents. The Borrower agrees to reimburse the Agent for any draw under any Letter of Credit on the date drawn, and to pay the Agent the amount of
all other liabilities and obligations payable to the Agent under or in connection with any Letter of Credit immediately when due, irrespective of any claim, setoff, defense or other right that the Borrower may have at any time against the Agent
or any other Person. Until the Agent has received payment from the Borrower in accordance with the foregoing provisions of this clause (iv), the Agent (and each Lender, from and after the time such Lender makes payment to the Agent pursuant to
clause (ii) of Section 1.13(b) below), in addition to all of its other rights and remedies under this Agreement, shall (A) be entitled to interest at the rate otherwise applicable to Revolving Loans hereunder (including, if
applicable, the Default Rate) and (B) be fully subrogated to the rights and remedies of each beneficiary under a Letter of Credit whose claims against the Borrower have been discharged with the proceeds of such Letter of Credit.
Whether or not the Borrower submits any request for a Revolving Loan to the Agent, the Borrower shall be deemed to have requested from the Agent a Revolving Loan in an amount necessary to pay to the Agent all amounts due the Agent pursuant to
this clause (iv). 
 (v) The Borrower assumes all risks of the acts, omissions or misuses of any Letter of Credit by the
beneficiary thereof. The obligation of the Borrower to reimburse the Agent for all amounts paid by the Agent by reason of a Letter of Credit shall be absolute, unconditional and irrevocable, and shall be paid without regard to any lack of validity
or enforceability of any Letter of Credit, the existence of any claim, setoff, defense or other right which the Borrower may have at any time against a beneficiary of any Letter of Credit, or improper honor by the Agent of any draw request under a
Letter of Credit. If presentation of a demand, draft, certificate or other document does not comply with the terms of a Letter of Credit and the Borrower contends that, as a consequence of such noncompliance, it has no obligation to
reimburse the Agent for any payment made with respect thereto, the Borrower shall nevertheless be obligated to reimburse the Agent for any payment made by the Agent with respect to such Letter of Credit, but without waiving any claim the
Borrower may have against the Agent in connection therewith. 
 (vi) No Letter of Credit shall have an expiration date after
the earlier of (a) one hundred eighty (180) days after the date of issuance and (b) one hundred eighty (180) days after the Maturity Date and, and in the event such expiration date is after the Maturity Date, such Letter of
Credit shall be Cash Collateralized during the period from the date of its issuance until the date it expires or is terminated. 

(vii) Subject to subsection (vi), above, no Letter of Credit shall be extended or amended in any respect unless all of the LC Conditions
are met as though a new Letter of Credit were being requested and issued. With respect to any Letter of Credit that contains any “evergreen” or automatic renewal provision, each Lender shall be deemed to have consented to any such
extension or renewal, unless any such Lender shall have provided to the Agent written notice that it declines to consent to any such extension or renewal at least 30 days prior to the date on which the Agent is entitled to decline to extend or
renew the Letter of Credit. If all of the LC Conditions are met and no Default or Event of Default exists, each Lender shall be deemed to have consented to any such extension or renewal. 

 

	 	(b)	Participations. 

 (i)
Immediately upon the issuance of any Letter of Credit, each Lender shall be deemed to have irrevocably and unconditionally purchased and received from the Agent, without recourse or warranty, an undivided interest and participation equal to the Pro
Rata share of such Lender (a “Participating Lender”) in all LC Obligations arising in connection with such Letter of Credit, but in no event greater than an amount which, when added to such

  
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Lender’s Pro Rata share of all Revolving Loans and LC Obligations then outstanding, exceeds such Lender’s Lending Amount. 

(ii) If the Agent makes any payment under a Letter of Credit and Borrower does not repay or cause to be repaid the amount of such payment
on the same day such payment was made by the Agent pursuant to clause (iv) of Section 1.13(b) above, the Agent shall promptly notify each Participating Lender of such payment and each Participating Lender shall promptly (and in any
event within one (1) Business Day after its receipt of notice from Agent) and unconditionally pay to the Agent, for the account of the Agent, in immediately available funds, the amount of such Participating Lender’s Pro Rata share of such
payment. If a Participating Lender does not make its Pro Rata share of the amount of such payment available to the Agent on a timely basis as herein provided, such Participating Lender agrees to pay to the Agent, forthwith on demand, such amount
together with interest thereon at the Wall Street Journal Prime Rate until paid. The failure of any Participating Lender to make available to the Agent such Participating Lender’s Pro Rata share of the LC Obligations shall not relieve any other
Participating Lender of its obligation hereunder to make available to Agent its Pro Rata share of the LC Obligations. No Participating Lender shall be responsible for the failure of any other Participating Lender to make available to Agent its Pro
Rata share of the LC Obligations on the date such payment is to be made. 
 (iii) Whenever the Agent receives a payment on
account of the LC Obligations, including any interest thereon, as to which Agent has previously received payments from any Participating Lender, the Agent shall promptly pay to each Participating Lender which has funded its participating interest
therein, in immediately available funds, an amount equal to such Participating Lender’s Pro Rata share thereof. 
 (iv) The
obligation of each Participating Lender to make payments to the Agent in connection with the Agent’s payment under a Letter of Credit shall be absolute, unconditional and irrevocable, not subject to any counterclaim, setoff, qualification or
exception whatsoever, and shall be made in accordance with the terms and conditions of this Agreement under all circumstances and irrespective of whether or not the Borrower may assert or have any claim for any lack of validity or unenforceability
of this Agreement or any of the other Loan Documents; the existence of any Default or Event of Default; any draft, certificate or other document presented under a Letter of Credit having been determined to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate in any respect; the existence of any setoff or defense any Loan Party may have with respect to any of the Obligations; or the termination of the Lending Amounts.

 (v) Neither the Agent nor any of its officers, directors, employees or agents shall be liable to any Participating Lender for
any action taken or omitted to be taken under or in connection with any of the LC Documents except as a result of actual gross negligence or willful misconduct on the part of the Agent. The Agent does not assume any responsibility for any failure or
delay in performance or breach by the Borrower or any other Person of its obligations under any of the LC Documents. The Agent does not make to Participating Lenders any express or implied warranty, representation or guaranty with respect to the
Collateral, the LC Documents, or any Loan Party. The Agent shall not be responsible to any Participating Lender for any recitals, statements, information, representations or warranties contained in, or for the execution, validity, genuineness,
effectiveness or enforceability of or any of the LC Documents; the validity, genuineness, enforceability, collectability, value or sufficiency of any of the Collateral or the perfection of any Lien therein; or the assets, liabilities, financial
condition, results of operations, business, creditworthiness or legal status of any Loan Party or any Account Debtor. In connection with its administration of and enforcement of rights or remedies under any of the LC Documents, the Agent shall
be entitled to act, and shall be fully protected in acting upon, any certification, notice or other communication in whatever form believed by the Agent, in good faith, to be genuine and correct and to have been signed, sent or made by a proper
Person. The Agent may consult 

  
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with and employ legal counsel, accountants and other experts and to advise it concerning its rights, powers and privileges under the LC Documents and shall be entitled to act upon, and shall be
fully protected in any action taken in good faith reliance upon, any advice given by such experts. The Agent may employ agents and attorneys-in-fact in connection with any matter relating to the LC Documents and shall not be liable for the
negligence, default or misconduct of any such agents or attorneys-in-fact selected by the Agent with reasonable care. The Agent shall not have any liability to any Participating Lender by reason of the Agent’s refraining to take any action
under any of the LC Documents without having first received written instructions from the Required Lenders to take such action. 

(vi) Upon the request of any Participating Lender, the Agent shall furnish to such Participating Lender copies (to the extent then
available to the Agent) of each outstanding Letter of Credit and related LC Documents as may be in the possession of the Agent and reasonably requested from time to time by such Participating Lender. 

 

	 	(c)	Cash Collateral Account. Upon the Agent’s demand therefor, the Borrower shall Cash Collateralize all outstanding Letters of Credit. The Borrower hereby
pledges to the Agent, for the benefit of the Lenders, and grants to the Agent, for the benefit of the Lenders, a security interest in all Cash Collateral held in the Cash Collateral Account from time to time and all proceeds thereof, as
security for the payment of all Obligations, whether or not then due or payable. From time to time after cash is deposited in the Cash Collateral Account (which Cash Collateral Account may, in the Agent’s sole discretion, be a
separate, segregated account maintained at the Agent), the Agent may apply Cash Collateral then held in the Cash Collateral Account to the payment of any amounts, in such order as the Agent may elect, as shall be or shall become due
and payable by the Borrower to the Agent or any Lender with respect to the LC Obligations. Neither the Borrower nor any other Person claiming by, through, under or on behalf of the Borrower shall have any right to withdraw any of the
Cash Collateral held in the Cash Collateral Account, provided that upon termination or expiration of all Letters of Credit and the payment and satisfaction of all of the LC Obligations, any Cash Collateral remaining in the Cash Collateral
Account shall be returned to the Borrower unless an Event of Default then exists (in which event the Agent may apply such Cash Collateral to the payment of any other Obligations outstanding, with any surplus to be turned over to the Borrower).

 2. GRANT OF SECURITY INTEREST AND COLLATERAL MATTERS 

2.1 Grant of Security Interest. In consideration of the Agent and each Lender extending credit and other financial accommodations to or for the
benefit of the Borrower, whether under this Agreement or otherwise and whether evidenced by notes or not, the Borrower hereby grants to the Agent, for the benefit of the Lenders, a first priority security interest in, a lien on and pledge and
assignment of the Collateral owned by the Borrower. The security interest granted by this Agreement is given to and shall be held by the Agent, for the benefit of the Lenders, as security for the payment and performance of all Obligations,
including, without limitation, all amounts outstanding pursuant to the Loan Documents. 
 2.2 Borrowing Base. Subject to
Section 7.11, the Agent shall have the right from time to time, in its sole discretion, to amend, substitute or modify the percentages set forth in the definition of Borrowing Base and the definition(s) of Eligible Customer Obligations,
Eligible Client Advances, Eligible Accounts and the form of Borrowing Base Certificate, in each case upon fifteen (15) days’ prior written notice to Borrower. 
 2.3 Reserved. 
 2.4 Records. The Borrower shall hold its books and records relating
to the Collateral segregated from all the Borrower’s other books and records in a manner satisfactory to the Agent; and shall deliver to the Agent from time to time promptly at its request all invoices, original documents of title, contracts,

  
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chattel paper, instruments and any other writings relating thereto, and other evidence of performance of contracts, or evidence of shipment or delivery of the merchandise or of the rendering of
services; and the Borrower will deliver to the Agent promptly at the Agent’s request from time to time additional copies of any or all of such papers or writings, and such other information with respect to any of the Collateral and such
schedules of inventory, schedules of accounts and such other writings as the Agent may in its sole discretion deem to be necessary or effectual to evidence any loan hereunder or the Agent’s security interest in the Collateral. 

2.5 Legends. The Borrower shall promptly make, stamp or record such entries or legends on the Borrower’s tangible books and records or on any
of the tangible Collateral (including, without limitation, chattel paper) as Agent shall request from time to time, to indicate and disclose that Agent has a security interest in such Collateral. 

2.6 Inspection. The Agent, or its representatives, at such times as are set forth in Section 2 of Annex 2, shall have the right at the
sole cost and expense of the Borrower, and the Borrower will permit the Agent and/or its representatives: (a) to examine, check, make copies of or extracts from any of the Borrower’s books, records and files (including, without limitation,
orders and original correspondence); (b) to perform field exams or otherwise inspect and examine the Collateral and to check, test or appraise the same as to age, quality, quantity, value and condition; and (c) to verify the Collateral or
any portion or portions thereof or the Borrower’s compliance with the provisions of this Agreement. The costs of such field exams and inspections shall consist of a per-person auditor charge as are set forth in Section 2 of Annex 2
or the actual costs if such auditor is retained by the Agent. The Borrower hereby irrevocably authorizes and directs all accountants and auditors employed or engaged by the Borrower at any time during the term of this Agreement and all data
processing centers or other persons having information relevant to the Borrower’s financial condition to deliver copies of all materials in their possession to the Agent upon the Agent’s request therefor. 

2.7 Purchase Money Security Interests. To the extent Borrower uses proceeds of any loans to purchase Collateral, the repayment of such loans shall
be on a “first-in-first-out” basis so that the portion of the loan used to purchase a particular item of Collateral shall be repaid in the order in which Borrower purchased such item of Collateral. 

2.8 Search Reports and Credit Reports. The Agent shall have the right, prior to the date of this Agreement and from time to time thereafter as
Agent may determine in its reasonable discretion, to order UCC search results under all names used by the Borrower during the prior five (5) years, from each jurisdiction where any Collateral is located, from the State, if any, where the
Borrower is organized and registered, the State where the Borrower’s chief executive office is located and all other locations deemed necessary by the Agent, all at the expense of the Borrower. The Agent is authorized to make all inquires the
Agent deems necessary to verify the accuracy of the information in respect of Borrower or Newtek contained in the Loan Documents and to determine the credit worthiness of such party. Borrower and Newtek authorize any Person or credit reporting
agency to give to the Agent any information it may have on such party. Borrower and Newtek authorize the Agent to answer questions about such party’s credit experience with the Agent. 
 2.9 Further Assurances. The Borrower will, at the request of the Agent, from time to time, at its own cost and expense, execute and deliver to Agent such documents, and take or cause to be taken,
all such other or further action, as Agent may request in order to effect and confirm or vest in Agent and the Lenders all rights contemplated by this Agreement and the other Loan Documents (including, without limitation, to correct clerical errors)
or to vest more fully in or assure to the Agent the security interest in the Collateral granted to the Agent by this Agreement or to comply with applicable statute or law and to facilitate the collection of the Collateral (including, without
limitation, the execution of stock transfer orders and stock powers, endorsement of promissory notes and instruments and notifications to obligors on the Collateral). To the extent permitted by Requirements of Law, the Borrower authorizes the Agent
to file financing statements, continuation statements or amendments, and any such financing statements, continuation statements or amendments may be filed at any time in any jurisdiction. Agent may at any time and from time to time file financing
statements, continuation statements and amendments thereto 

  
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which contain any information required by the Code for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment, including the description of
the Collateral as “all assets” or “all property”, whether the Borrower is an organization, the type of organization and any organization identification number issued to the Borrower. The Borrower agrees to furnish any such
information to Agent promptly upon request. In addition, the Borrower shall at any time and from time to time take such steps as Agent may reasonably request for Agent (i) to obtain an acknowledgement, in form and substance satisfactory to
Agent, of any bailee having possession of any of the Collateral that the bailee holds such Collateral for Agent, (ii) to obtain control of any Collateral comprised of deposit accounts, electronic chattel paper, letter of credit rights or
investment property, with any agreements establishing control to be in form and substance satisfactory to Agent, (iii) to obtain a mortgage or deed of trust on any real property owned by the Borrower and to obtain all necessary surveys, title
insurance and other requirements in connection with such mortgage or deed of trust, and (iv) otherwise to insure the continued perfection and priority of Agent’s security interest in any of the Collateral and the preservation of its rights
therein. The Borrower hereby constitutes Agent its attorney-in-fact to execute, if necessary, and file all filings required or so requested for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed; and such power,
being coupled with an interest, shall be irrevocable until this Agreement terminates in accordance with its terms, all Obligations are irrevocably paid in full and the Collateral is released. 

3. REPRESENTATIONS AND WARRANTIES 
 In order to induce the Agent and each Lender to enter into this Agreement and to extend the credit herein provided for, Borrower represents and warrants to the Agent and each Lender that: 

3.1 Organization and Qualification. The Borrower and each Subsidiary is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization, has all requisite power and authority to own its property and to carry on its business as now conducted currently proposed to be conducted and, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. The name of the Borrower is as set forth on the
signature page hereto and the Borrower shall not change such name, conduct its business in any other name or take title to the Collateral in any other name while this Agreement remains in effect. Neither Borrower nor Newtek has had any name, or
conducted business under any name in any jurisdiction, other than its name set forth on the signature page hereto, during the past five years except as set forth on Schedule 3.1 hereto. 

3.2 Authorization; Enforceability. The Transactions are within the corporate, limited liability company, partnership or other analogous powers of
Borrower to the extent it is a party thereto and have been duly authorized by all necessary corporate, limited liability company, partnership or other analogous equity holder action, if required. Each Loan Document has been duly executed and
delivered by Borrower to the extent it is a party thereto and constitutes a legal, valid and binding obligation thereof, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally. 
 3.3 Ownership; Subsidiaries. The Stock of the Borrower is owned beneficially and of record
as set forth on Schedule 3.3. As of the Effective Date, neither the Borrower nor Newtek has any Subsidiaries except as set forth on Schedule 3.3. 
 3.4 Title to Properties; Absence of Liens and Claims. Except as set forth on Schedule 3.4, 
  

	 	(a)	The Borrower and each Subsidiary has good title to, or valid leasehold interests in, all real and personal property material to its business, except for minor defects
in title that do not interfere with its ability to conduct its business as currently conducted or contemplated to be conducted or to utilize such properties for their intended purposes. 

  
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	 	(b)	The Borrower and each Subsidiary owns, or is entitled to use, all trademarks, trade names, copyrights, patents and other intellectual property material to its business,
and the use thereof by such Person does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

  

	 	(c)	The Borrower does not own any real property. 

  

	 	(d)	No Collateral is in the possession of any Person asserting any claim thereto or security interest therein other than the Agent or its designee.

 3.5 Places of Business. Borrower’s chief executive office is accurately set forth in the preamble to this
Agreement. Schedule 3.5 hereto lists each location existing on the date hereof where (i) the Borrower’s books and records (including computer printouts and programs) are maintained and (ii) any tangible Collateral is stored or
located. 
 3.6 Validity and Perfection of Security Interest. This Agreement is effective to create in favor of the Agent, for the
benefit of the Lenders, a legal, valid and enforceable security interest in the Collateral and when (i) financing statements in appropriate form, properly describing the collateral and identifying the Borrower as debtor and identifying the
Agent as the secured party are filed in the office of the secretary of state of the jurisdiction of organization of the Borrower or such other office specified by the Code as necessary for perfection, (ii) the Agent obtains control of
Collateral consisting of investment property and possession of Collateral consisting of instruments and (iii) appropriate documents with respect to Patents, Trademarks and Copyrights, if any, are filed in the United States Patent and Trademark
Office or the United States Copyright Office, as the case may be, the security interest granted to the Agent shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Borrower in such Collateral, in
each case prior and superior in right to any other Person, other than with respect to Permitted Liens. 
 3.7 Governmental Approvals; No
Conflicts. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) the filing of financing statements and other documents contemplated
by Section 3.6 (and appropriate amendments and continuations of financing statements that may be required under the Code to maintain the perfection and priority of the Liens of the Agent on the Collateral) and (ii) such as have been
obtained or made and are in full force and effect, (b) will not violate any Requirement of Law or the Organizational Documents of Borrower or any order of any Governmental Authority applicable to any of them, (c) will not violate or result
in a default under any indenture, agreement or other instrument binding upon Borrower or its assets, or give rise to a right thereunder to require any payment to be made by Borrower, and (d) will not result in the creation or imposition of any
Lien on any asset of the Borrower (other than Liens in favor of the Agent). 
 3.8 Permits. Borrower possesses or has the right to use,
and is in compliance with, all Permits and other rights that are material to the conduct of its business and knows of no conflict with the valid rights of others which could reasonably be expected to have a Material Adverse Effect. To the best
knowledge of Borrower, no event has occurred which permits or, after notice, lapse of time (or both) or any other condition, could reasonably be expected to permit, the revocation or termination of any such franchise, license or other right which
revocation or termination could reasonably be expected to have a Material Adverse Effect. 
 3.9 Litigation and Environmental Matters.
Except as set forth on Schedule 3.9: 
  

	 	(a)	There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting Borrower (i) that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve any Loan Document or the Transactions.

  
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	 	(b)	Borrower has not (i) failed to comply with any Environmental Law or to obtain, maintain or comply with any Permit or other approval required under any
Environmental Law, (ii) become subject to any Environmental Liability, (iii) received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.

 Since the date of this Agreement, there has been no change in the status of the matters contemplated in this
Section that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect. 
 3.10
Investment Company Status. Borrower is not an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended. 
 3.11 Compliance with Law and Agreements. Borrower is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property. No default under any such indenture, agreement or other instrument has occurred and is continuing or would result from the incurrence of the obligations of the Loan Parties under the
Loan Documents or from the grant or perfection of the Liens granted to the Agent under this Agreement. 
 3.12 Financial Statements. The
Borrower has heretofore furnished to the Agent the financial statements as indicated in Section 3 of Annex 2. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash
flows of the Borrower any other entities reflected therein as of such dates and for the indicated periods in accordance with GAAP (subject to normal year-end audit adjustments and the absence of footnotes in the case of quarterly statements) and are
consistent with the books and records of the Borrower (which books and records are correct and complete). Since December 31, 2009, the Borrower has conducted its business only in the ordinary course and there has been no Material Adverse
Change. 
 3.13 Accounts and Contract Rights. With respect to each Account Receivable: (i) no transaction giving rise to such
Account Receivable violated or will violate any applicable federal, state or local law, rule or ordinance, (ii) no Account Receivable is subject to terms prohibiting the assignment thereof or requiring notice or consent to such assignment,
except for notices and consents that have been given or obtained, as the case may be, and (iii) each such Account Receivable represents a bona fide transaction which requires no further act on the Borrower’s or any other
Person’s part to make such Account Receivable payable by the Account Debtor with respect thereto, and such Account Receivable is not subject to any offsets or deductions other than credits and discounts to customers in the ordinary course of
business and does not represent any consignment sales, guaranteed sale, conditional sale, installment sale, sale-or-return or other similar understanding or any obligation of any Affiliate of the Borrower or any Client. No contract right, Account
Receivable, general intangible or chattel paper is or will be represented by an instrument, and no contract right, account or general intangible is, or will be represented by any conditional or installment sales obligation or other chattel paper.

 3.14 Title to Collateral. The Borrower has good and valid rights in and title to the Collateral in which it purports to grant a
security interest hereunder and has full power and authority to grant to the Agent, for the benefit of the Lenders, a Lien on such Collateral pursuant hereto and to execute, deliver and perform its obligations with respect to the Collateral in
accordance with the terms of this Agreement, without the consent or approval of any other Person other than any consent or approval which has been obtained. The Collateral owned or held by or on behalf of the Borrower is so owned or held by it free
and clear of any Lien, except for Permitted Liens. The Lien of the Agent on the Collateral is and shall be prior to any other Lien on any of the Collateral, other than Permitted Liens which by operation of law have priority over such Lien.

 3.15 Location of Collateral. Except as set forth on Schedule 3.15, no Collateral is in the possession of, or under the control
of, any Person other than the Borrower or the Agent. 

  
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 3.16 Borrower Taxes. Borrower has timely filed or caused to be filed all tax returns and reports
required to have been filed and has paid or caused to be paid by the relevant due date all Loan Party Taxes required to have been paid by it. 

3.17 Federal Reserve Regulations. Neither Borrower nor any of the Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of buying or carrying Margin Stock. None of the Collateral is used or was acquired primarily for personal, family or household purposes 
 3.18 Labor Matters. As of the date hereof, there are no strikes, lockouts or slowdowns against Borrower or any Subsidiary pending or, to the knowledge of the Borrower, threatened. The hours worked
by and payments made to employees of the Borrower and the Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or foreign law dealing with such matters. All material payments due from
Borrower or any Subsidiary, or for which any claim may be made against Borrower or any Subsidiary, on account of wages and employee health and welfare insurance and other benefits, have been paid or, to the extent required by GAAP, accrued as a
liability on the books of Borrower or such Subsidiary. The consummation of the Transactions will not give rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to which Borrower
or any Subsidiary is a party or by which it is bound. 
 3.19 Insurance. Schedule 3.19 sets forth a description of all insurance
maintained by or on behalf of the Borrower and the Subsidiaries as of the date hereof. As of the date hereof, all premiums in respect of such insurance that are due and payable have been paid. 

3.20 Solvency. After giving effect to the transactions contemplated by this Agreement, and before and after giving effect to the making of
each Loan, Borrower is Solvent. No transfer of property has been or will be made by Borrower and no obligation has been or will be incurred by Borrower in connection with the transactions contemplated by this Agreement or the other Loan Documents
with the intent to hinder, delay, or defraud either present or future creditors of Borrower. 
 3.21 Disclosure. The Borrower has
disclosed to the Agent all agreements, instruments and corporate or other restrictions to which Borrower or any Subsidiary is subject, and all other matters known to it, that, individually, could reasonably be expected to result in a Material
Adverse Effect. None of the reports, financial statements, certificates or other written information furnished by or on behalf of Borrower or any Subsidiary to the Agent in connection with the negotiation of the Loan Documents or delivered
thereunder (as modified or supplemented by other written information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading, provided that, with respect to projected financial information, Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time and there
can be no assurance that actual results will comport with such projections. 
 3.22 ERISA. Each Plan applicable to Borrower is in
compliance in all material respects with the applicable provisions of ERISA, the Tax Code and other federal or state Laws. Each Plan that is intended to qualify under Section 401(a) of the Tax Code has received a favorable determination letter
from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the best knowledge of the Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification. The Entity
Loan Parties and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Tax Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of
the Tax Code has been made with respect to any Plan. No Lien imposed under the Tax Code or ERISA exists or is likely to arise on account of any Plan. There are no pending or, to the best knowledge of the Borrower, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect
to any Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect. (i) No ERISA Event has occurred or is reasonably expected to occur; 

  
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(ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither any Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of
ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA and other than periodic contribution requirements); (iv) neither Borrower nor any ERISA Affiliate has incurred, or reasonably
expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and
(v) neither Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA, which in each case could reasonably be expected to have a Material Adverse Effect. 

3.23 Factoring Documents. Annexed hereto as Schedule 3.23 is a list of each existing Factoring Document to which Borrower is a party,
providing the name and address of each Client. Borrower represents that (i) each such Factoring Document is in full force and effect and no notice of termination has been sent or received by Borrower with respect to any of such Factoring
Documents, (ii) it has perfected its security interest in the collateral pledged by any Client pursuant to the Factoring Documents and (iii) each Factoring Document is in conformity with all Lending Laws. 

4. AFFIRMATIVE COVENANTS 
 Until the principal of and interest on each Loan and all fees and other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit have expired and all LC Obligations
have been reimbursed, Borrower agrees to comply with the covenants set forth in this Article 4. 
 4.1 Payments and Performance.
Borrower will duly and punctually pay all payment Obligations and will duly and punctually perform all other Obligations on its part to be performed under the Loan Documents. 
 4.2 Books and Records; Inspection. Borrower will, and will cause each of the Subsidiaries to, at all times keep proper books of account in which full, true and correct entries will be made of its
transactions in accordance with generally accepted accounting principles, consistently applied and which are, in the opinion of a Certified Public Accountant acceptable to Agent, adequate to determine fairly the financial condition and the results
of operations of Borrower. Borrower will, and will cause each of the Subsidiaries to, at all reasonable times make its books and records available in its offices for inspection, examination and duplication by the Agent and the Agent’s
representatives and will permit the Agent and the Agent’s representatives to (i) inspect the Collateral and all of its properties, (ii) discuss its affairs, finances and condition with its officers and independent accountants and
(iii) perform any field examination, Collateral analysis or other business analysis or audit relating to Borrower or any Subsidiary at such reasonable times and as often as reasonably requested (and in any event not less frequently than
specified in Section 2 of Annex 2); provided that, if no Event of Default exists, the Borrower shall be responsible only for reasonable fees and expenses in connection with any such examination, Collateral analysis or other
business analysis or audit as specified in Section 2 of Annex 2. Borrower will from time to time furnish the Agent with such information and statements as the Agent may request in its sole discretion with respect to the Obligations or
the Agent’s security interest in the Collateral. The Borrower shall, during the term of this Agreement, keep the Agent currently and accurately informed in writing of each location where such the Borrower’s records relating to its accounts
and contract rights are kept and each of its places of business, and shall not remove such records to another location, change the location of its chief executive office or open or close, move or change any existing or new place of business without
the prior written consent of the Agent. 
 4.3 Financial Statements and Reporting. The Borrower will furnish to Agent and each Lender the
financial statements and reports set forth in Section 13 of Annex 2 hereto. 
 4.4 Maintenance of Existence; Conduct of
Business. Borrower will, and will cause each of the Subsidiaries to, maintain its existence in good standing and shall do or cause to be done all things 

  
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necessary to preserve and keep in full force and effect its legal existence and all rights, Permits, privileges and franchises material to the conduct of its business. 

4.5 Compliance with Law. Borrower will, and will cause each of the Subsidiaries to, comply with all laws, rules, regulations and orders of any
Governmental Authority applicable to it or its property. 
 4.6 Notice to Account Debtors. The Borrower (i) agrees, at the request
of the Agent, to notify in such manner as the Agent requests any or all of the Account Debtors in writing of the Agent’s security interest in the Collateral and (ii) hereby authorizes the Agent to notify any or all of the Account Debtors
of the Agent’s security interest in the Collateral, such notification to be given at the expense of the Borrower. 
 4.7 Solvency.
Borrower will remain Solvent during the term of this Agreement. 
 4.8 Operating and Deposit Accounts. Borrower shall maintain
with the Agent the accounts set forth in Section 4 of Annex 2. 
 4.9 Payment of Borrower Taxes, Accounts Payable and Other
Obligations. Borrower will, and will cause each of the Subsidiaries to, pay, before the same shall become delinquent or in default, its obligations, including Loan Party Taxes, except and only to the extent that (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings diligently conducted, (b) Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make
payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. The Agent may, at its option, from time to time, discharge any taxes, liens or encumbrances of any of the Collateral, and the Borrower will pay to
the Agent on demand or the Agent in its sole discretion may charge to the Borrower all amounts so paid or incurred by it. 
 4.10 Maintenance
of Collateral. The Borrower will keep the Collateral and all of its other tangible Property in good repair, working order and condition (ordinary wear and tear excepted). The Borrower will immediately notify the Agent of any loss or damage to,
or any occurrence which could reasonably be expected to materially adversely affect the value of, any Collateral. The Agent may, at its option, from time to time, take any action that the Agent may deem proper to repair, maintain or preserve any of
the Collateral without affecting any of its rights or remedies provided herein or as a secured party under the Code, and the Borrower will pay to the Agent on demand or the Agent in its sole discretion may charge to the Borrower all amounts so paid
or incurred by it, which amount shall be added to the amount of the indebtedness secured by the Collateral. 
 4.11 Insurance. The
Borrower will maintain in full force and effect property insurance on all Collateral and any other property of the Borrower, if any, and maintain insurance against such risks of liability (including business interruption insurance) as specified in
Section 5 of Annex 2. Such insurance policies shall name the Agent, for the benefit of the Lenders, as an additional insured with respect to liability coverage and lender loss payee with respect to casualty and business interruption
coverage, as applicable, and shall provide that, with respect to property claims affecting the Collateral, no loss shall be adjusted thereunder without the Agent’s approval. In addition, all such policies shall provide that they may not be
canceled without first giving at least thirty (30) days’ written notice of cancellation to the Agent and shall contain a standard lender’s loss payable endorsement acceptable to the Agent. The Borrower shall provide to the Agent,
promptly upon Agent’s request, evidence of such insurance and of the annual renewal of each such policy. In the event that the Borrower fails to provide evidence of such insurance, the Agent may, at its option, obtain such insurance and charge
the cost thereof to the Borrower, which amount shall be added to the amount of the indebtedness secured hereby, shall be payable on demand and shall be secured by the Collateral. At the option of the Agent, all insurance proceeds received from any
loss or damage to any of the Collateral including, without limitation, inventory and Accounts Receivable shall be applied either to the replacement or repair thereof or as a payment on account of the Obligations. From and after the occurrence of an
Event of Default, the Agent is authorized to cancel any insurance maintained hereunder and apply any returned or unearned premiums, all of which are hereby assigned to the Agent, as a payment on account of the Obligations. 

  
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 4.12 Notification of Material Events. The Borrower will furnish to the Agent prompt written notice of
the following: 
  

	 	(a)	the occurrence of any Default or Event of Default; 

  

	 	(b)	the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Affiliate
thereof (or any of their respective Property); 

  

	 	(c)	the occurrence of any ERISA Event; 

  

	 	(d)	the occurrence of any damage in an amount equal to or greater than $50,000 to any portion of any Collateral or the commencement of any action or proceeding for the
taking of any Collateral having a value equal to or greater than $50,000 or any part thereof or interest therein under power of eminent domain or by condemnation or similar proceeding; 

 

	 	(e)	any suspension of business, assignment for the benefit of creditors, dissolution, petition in receivership or under any chapter of the United States Bankruptcy Code, as
amended from time to time, by or against any Account Debtor, any Account Debtor’s becoming insolvent or unable to pay its debts as they mature or any other act of the same or different nature amounting to a business failure of which Borrower
has knowledge; 

  

	 	(f)	any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect; and 

 

	 	(g)	any dispute, allowance or settlement with any Account Debtor relating to an amount in excess of $125,000. 

Each notice delivered under this Section shall be accompanied by a statement of the chief financial officer or other executive officer of
the Borrower setting forth in reasonable detail a description of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
 4.13 Lien Law. If any account or general intangible included in the Collateral represents money owing pursuant to any contract for the improvement of real property or for a public improvement for
purposes of the Lien Law of the State of New York (the “Lien Law”), Borrower shall comply with the filing requirements of the Lien Law and (i) give Agent notice of such fact; (ii) receive and hold any money advanced by
Agent with respect to such account or general intangible as a trust fund to be applied to the payment of trust claims as such term is defined in the Lien Law (Section 71 or otherwise); and (iii) until such trust claim is paid, not use or permit
the use of any such money for any purpose other than the payment of such trust claims. 
 4.14 Environmental. Borrower shall and shall
cause each of the Subsidiaries to, use and operate all of its facilities and property in compliance with all Environmental Laws, keep all necessary Permits, approvals, certificates, licenses and other authorizations relating to environmental matters
in effect and remain in compliance therewith, and handle all Hazardous Materials in compliance with all applicable Environmental Laws. Borrower agrees to indemnify and hold each Indemnitee harmless from all liability, loss, cost, damage and expense,
including attorneys’ fees and costs of litigation, arising from any violation by Borrower of any Environmental Law (including those arising from any lien by any Federal, state or local government arising from the presence of Hazardous
Materials) or from the presence of Hazardous Materials located on or emanating from any of the premises owned or controlled by Borrower or a Subsidiary. The Borrower further agrees to reimburse Agent or any Lender upon demand for any costs incurred
by Agent or such Lender in connection with the foregoing, which amount shall be added to the amount of the indebtedness secured by the Collateral. Borrower agrees that its obligations hereunder shall be continuous and shall survive the repayment of
all Obligations. 

  
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 4.15 Third Parties. Borrower acknowledges and agrees that the Agent shall have no duty to, and shall
not be deemed to have assumed any liability or responsibility to, Borrower or any third Person for the correctness, validity or genuineness of any instruments or documents that may be released or endorsed to Borrower by the Agent (all of which shall
be without recourse to the Agent) or for the existence, character, quantity, quality, condition, value or delivery of any goods purporting to be represented by any such documents; and the Agent, by accepting a Lien on the Collateral, or by releasing
any Collateral to Borrower, shall have no duty to, and shall not be deemed to have assumed any obligation or liability to, any supplier, Account Debtor or any other third party, and Borrower agrees to indemnify and defend the Agent against and hold
it harmless from any claim or proceeding arising out of the foregoing. 
 4.16 Use of Proceeds. The proceeds of the Credit Extensions
shall be used to finance the general corporate purposes of the Borrower in the ordinary course of business. No portion of any loan shall be used for (i) the purpose of purchasing or carrying any “margin security” or “margin
stock” as such terms are used in Regulations U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. 221 and 224 or (ii) primarily personal, family or household purposes. 

4.17 Establishment of Lock Box and Blocked Account. On or prior to March 31, 2011, the Borrower shall direct all of its Account Debtors to
make all payments on the Accounts directly to a post office box (“Lock Box”) at Sterling National Bank, with, in the name of, and under exclusive control of the Agent. The Borrower shall establish a blocked account at (the
“Blocked Account”) at Sterling National Bank, in the Agent’s name for the benefit of Borrower, into which all payments received in the Lock Box shall be deposited, and into which the Borrower will immediately deposit, or cause
to be deposited, all payments received by the Borrower or any other Person with respect to Accounts or for inventory or services sold, leased or rendered by the Borrower, a Client or a customer of a Client and received by the Borrower or any other
Person in the identical form in which such payments were received, whether by cash or check. If the Borrower, any Affiliate or Subsidiary of the Borrower, or any shareholder, officer, director, employee or agent of the Borrower or any Affiliate
or Subsidiary, or any other Person acting for or in concert with the Borrower shall receive any monies, checks, notes, drafts or other payments relating to or as proceeds of Accounts or other Collateral, the Borrower and each such Person shall
receive all such items in trust for, and as the sole and exclusive property of, the Agent for the benefit of the Lenders and, immediately upon receipt thereof, shall remit the same (or cause the same to be remitted) in kind to the Blocked Account.
The Borrower agrees that all payments made to the Blocked Account established by the Borrower or otherwise received by the Agent, whether in respect of the Accounts of the Borrower or as proceeds of other Collateral of Borrower or otherwise, will be
applied on account of the Revolving Loans and also on account of such other due and payable Obligations of the Borrower as the Agent shall determine in accordance with the terms of this Agreement. The Borrower agrees to pay all fees, costs and
expenses which the Borrower incurs in connection with opening and maintaining a Lock Box and Blocked Account. All of such fees, costs and expenses which remain unpaid by the Borrower pursuant to any Lock Box or Blocked Account Agreement with
the Borrower, to the extent same shall have been paid by the Agent hereunder, shall constitute Revolving Loans hereunder, shall be payable to the Agent for the benefit of the Lenders by the Borrower upon demand, and, until paid, shall bear interest
at the highest rate then applicable to Revolving Loans hereunder. All checks, drafts, instruments and other items of payment or proceeds of Collateral delivered to the Agent in kind shall be endorsed by the Borrower to the Agent, and, if that
endorsement of any such item shall not be made for any reason, the Agent is hereby irrevocably authorized to endorse the same on the Borrower’s behalf. For the purpose of this paragraph, the Borrower irrevocably hereby make, constitutes
and appoints the Agent (and all Persons designated by the Agent for that purpose) as the Borrower’s true and lawful attorney and agent-in-fact (i) to endorse each Borrower’s name upon said items of payment and/or proceeds of
Collateral of the Borrower and upon any chattel paper, document, instrument, invoice or similar document or agreement relating to any Accounts Receivable of the Borrower or goods pertaining thereto; (ii) to take control in any manner of any
item of payment or proceeds thereof; (iii) to have access to any lock box or postal box into which any of Borrower’s mail is deposited; and (iv) open and process all mail addressed to any Borrower and deposited therein. At all
times during the period commencing on the Closing Date and ending on or prior to March 31, 2011, all payments with respect to Accounts and other Collateral shall be received by no Person other than EFT, Inc. or Borrower and shall be remitted to
Agent in accordance with the terms of 

  
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this Section 4.17. On or prior to March 31, 2011, Borrower shall terminate Borrower’s agreement with EFT, Inc. 
 4.18 Landlord Waiver. Within thirty (30) days following the Closing Date, the Borrower shall provide to the Agent a waiver, in form and substance satisfactory to the Agent, from the landlord
with respect to Borrower’s premises at 60 Hempstead Avenue, 6th Floor, West Hempstead, New York 11552. 
 4.19 Borrower Certificate of
Incorporation. Within thirty (30) days following the Closing Date, the Borrower shall provide to the Agent a revised, or an amendment, to the Certificate of Incorporation of Borrower certified by the Secretary of State of the State of
Delaware, in form and substance satisfactory to the Agent which shall reflect the proper authorized share capital of Borrower and restrict payments to holders of Borrower’s Stock in accordance with Section 5.8 hereof, 

5. NEGATIVE COVENANTS 
 Until the principal of and interest on each Loan and all fees and other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit have expired and all LC Obligations
have been reimbursed, Borrower Party agrees to comply with the covenants set forth in this Article 5. 
 5.1 Financial Covenants.
Until the principal of and interest on each Loan and all fees and other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit have expired and all LC Obligations have been reimbursed, the Borrower agrees to
comply with the financial covenants set forth in Section 14 of Annex 2 hereto. 
 5.2 Indebtedness. The Borrower will not,
and will not permit any Subsidiary (if any) to, create, incur, assume or permit to exist any Indebtedness, except: 
  

	 	(a)	Indebtedness under the Loan Documents; 

  

	 	(b)	Indebtedness existing on the date hereof and set forth in Schedule 5.2 and subject to a Subordination Agreement, but not any extensions, renewals or replacements
of any such Indebtedness; provided that, with respect to any such Indebtedness, the Borrower shall, no later than thirty (30) days following the Closing Date, deliver to the Agent, all in form and substance acceptable to the Agent, (i) an
amendment to each promissory note evidencing such Indebtedness that provides that (1) the maturity date of the related Indebtedness shall be no earlier than six months following the Maturity Date and (2) the holder of such Indebtedness
shall not be permitted at any time prior to maturity thereof to exercise, collect on or otherwise enforce any call provision, put right or similar provision and (ii) evidence that all loan agreements, security agreements and promissory notes
with respect to such Indebtedness (1) contains the legend required by the related Subordination Agreement and (2) has been revised (A) to permit the Obligations and security interest granted in the Collateral hereunder and (B) so
the representations, covenants and defaults thereunder are no more restrictive than the representations, covenants and Events of Default contained in the Loan Documents; 

 

	 	(c)	unsecured Indebtedness owing to Newtek that is incurred after the date hereof and subject to a Subordination Agreement; 

 

	 	(d)	 Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets,
including Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof, provided that (A) such Indebtedness is incurred prior to or within 90 days after such acquisition or the completion of such construction or

  
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improvement and (B) the aggregate principal amount of Indebtedness permitted by this clause (iii) shall not exceed $150,000 at any time outstanding; and

  

	 	(e)	Guaranties in favor of the Agent for the benefit of the Lenders. 

 5.3 Liens. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign
or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except: 
  

	 	(a)	Permitted Liens; and 

  

	 	(b)	Liens created under the Loan Documents. 

 5.4
Fundamental Changes. Borrower will not nor will it permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of
(in one transaction or in a series of transactions) all or substantially all of its assets, or all or substantially all of the equity securities of any of the Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate or
dissolve, except that, if at the time thereof and immediately after giving effect thereto, no Event of Default shall have occurred: 
  

	 	(a)	any Subsidiary may merge into the Borrower in a transaction in which the Borrower is the surviving entity; and 

 

	 	(b)	any Subsidiary may merge into any other; and 

  

	 	(c)	any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the Borrower. 

With out limiting the restriction set forth in Section 5.5 below, upon, following the written consent of Agent, any Person
becoming a direct or indirect Subsidiary of the Borrower, the Borrower will provide the Agent with written notice thereof setting forth information in reasonable detail describing all of the assets of such Person and shall (a) cause any such
Person to execute and deliver to the Agent a joinder agreement in form and substance acceptable to the Agent, causing such Subsidiary to become a party to this Agreement, as a joint and several “Borrower” and (b) deliver such other
documentation as the Agent may reasonably request in connection with the foregoing, including, without limitation, authorization to file appropriate UCC-1 financing statements, collateral access agreements, blocked account agreements, certified
resolutions and other organizational and authorizing documents of such Person and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation
referred to above), all in form, content and scope reasonably satisfactory to Agent. 
 5.5 Investments, Loans, Advances, Guarantees and
Acquisitions. The Borrower will not, and will not permit any of the Subsidiaries to, purchase, hold or acquire (including pursuant to any merger, other than a merger permitted by Section 5.4) any Stock, evidences of indebtedness or
other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, guarantee any obligations of, or make or permit to exist any investment or any other interest in,
any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions (including pursuant to any merger)) any assets of any other Person constituting a business unit, except: 

 

	 	(a)	Permitted Investments; 

  

	 	(b)	investments existing on the date hereof and set forth in Schedule 5.5; 

 

	 	(c)	Investments consisting of extensions of credit in the nature of accounts receivable arising from the grant of trade credit in the ordinary course of business;

  
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	 	(d)	loans and advances to officers, directors and employees of the Borrower or any Subsidiary in the ordinary course of the business of the Borrower and its Subsidiaries as
presently conducted in compliance with all Requirements of Law (including, to the extent applicable, the Sarbanes-Oxley Act of 2002, as amended) in an aggregate principal amount not to exceed $5,000 at any time outstanding; and

  

	 	(e)	investments made by the Borrower in the equity securities of any Domestic Subsidiary and made by any Domestic Subsidiary in the equity securities of any other Domestic
Subsidiary provided that (i) any such equity securities owned by the Borrower or any Domestic Subsidiary shall become Collateral pursuant to this Agreement. 

 5.6 Asset Sales. The Borrower will not, and will not permit any of the Subsidiaries to, sell, transfer, lease or otherwise dispose (including pursuant to a merger, other than a merger permitted by
Section 5.4) of any asset, including, without limitation, Accounts, any equity securities, nor will the Borrower issue, or permit any of the Subsidiaries to issue, any additional shares of its equity securities, except: 

 

	 	(a)	sales, transfers, leases and other dispositions of inventory, used or surplus equipment and Permitted Investments, in each case in the ordinary course of business and
other assets having a value not in excess of $5,000 in any fiscal year; 

  

	 	(b)	sales, transfers, leases and other dispositions made by the Borrower to any Subsidiary and made by any Subsidiary to the Borrower or any other Subsidiary;

  

	 	(c)	dispositions of fixed or capital assets to the extent that (i) such property is exchanged for credit against the purchase price of other replacement fixed or
capital assets or (ii) the proceeds of such disposition are reasonably promptly applied to the purchase price of such fixed or capital assets; 

  

	 	(d)	dispositions of Accounts Receivable or participations therein, or assignment of Accounts Receivable for collection, both in the ordinary course of business; provided
that the proceeds of any such disposition or participation shall be immediately paid to the Agent for application to the Obligations in such a manner as the Agent may from time to time determine; and 

 

	 	(e)	dispositions of assets having a value not in excess of $50,000 in any fiscal year that are worn out or no longer used or useful in the conduct of business.

 5.7 Sale-and-Leaseback transactions. The Borrower will not, and will not permit any of the Subsidiaries to, enter into
any arrangement, directly or indirectly, with any Person whereby it shall sell or transfer any Property used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such Property or other Property that it
intends to use for substantially the same purpose or purposes as the Property being sold or transferred. 
 5.8 Restricted Payments. The
Borrower will not, and will not permit any of the Subsidiaries to, (i) declare or make, or agree to pay for or make, directly or indirectly, any Restricted Payment, (ii) be or become liable in respect of any obligation (contingent or
otherwise) to purchase, redeem, retire, acquire or make any other payment in respect of its equity securities or any option, warrant or other right to acquire any such shares of equity securities or (iii) create, issue or permit to be
outstanding any class of Stock the terms of which conflict, in any manner, with the restrictions set forth in clauses (i) or (ii) above. 
 5.9 Transactions with Affiliates. The Borrower will not, and will not permit any of the Subsidiaries to, sell, transfer, lease or otherwise dispose of (including pursuant to a merger, other than a
merger permitted by Section 5.4) any property or assets to, or purchase, lease or otherwise acquire (including pursuant to a merger) any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates,
except in the ordinary course of business at prices and on terms and conditions not 

  
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less favorable to the Borrower or such Subsidiary than could be obtained on an arms-length basis from unrelated third parties. 
 5.10 Restrictive Agreements. The Borrower will not, and will not permit any of the Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement
that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets or (b) the ability of any Subsidiary to pay dividends
or other distributions with respect to any shares of its equity securities or to make or repay loans or advances to the Borrower or any other Subsidiary or to guarantee Indebtedness of the Borrower or any other Subsidiary, provided that (i) the
foregoing shall not apply to restrictions and conditions imposed by law or by this Agreement, and (ii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of this Section shall not apply to restrictions or conditions imposed by any
agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the Property securing such Indebtedness and (v) clause (a) of this Section shall not apply to customary provisions in
leases restricting the assignment thereof. 
 5.11 Amendment of Material Documents. The Borrower will not, and will not permit any of the
Subsidiaries to amend, modify or waive any of its rights under its Organizational Documents, other than immaterial amendments, modifications or waivers that would not reasonably be expected to adversely affect the Agent or any Lender. In furtherance
of the foregoing, the Borrower will not change its name, its type of organization or jurisdiction of organization without (x) giving the Agent at least thirty (30) days prior written notice thereof and (y) taking all actions required
to maintain the perfection and priority of the Lien of the Agent on all Collateral. 
 5.12 Lines of Business. Borrower will not, nor
will it permit any of the Subsidiaries to, engage in any business other than the business in which it is engaged on the date hereof and any business reasonably similar, complimentary, ancillary or related thereto. 

5.13 Accounting Changes. Borrower will not, nor will it permit any of the Subsidiaries to make or permit, any change in (a) accounting
policies or reporting practices except as required or permitted by GAAP or (b) its fiscal year. 
 5.14 Hedging Agreements. The
Borrower will not, and will not permit any of the Subsidiaries to, enter into any Hedging Agreement, other than Hedging Agreements entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any Subsidiary is
exposed in the conduct of its business or the management of its liabilities 
 5.15 Factoring Documents. The Borrower will not, and will
not permit any of the Subsidiaries to, (a) amend any statement of credit or similar policy in a manner that could reasonably be expected to (i) adversely affect the Collateral, the collectability of the Accounts, the Agent or the Lenders
or (ii) make any such policy less restrictive than it was on the Closing Date, (b) change any Factoring Document in a manner that could reasonably be expected to (i) impact the enforceability of such document or (ii) adversely
impact the rights of the Borrower thereunder or (c) purchase any Account or make any Client Advances except pursuant to the Factoring Documents, in each case without the prior written consent of the Agent. 

6. DEFAULT 
 6.1
Default. “Event of Default” shall mean the occurrence of one or more of any of the following events: 
  

	 	(a)	 default of any Obligation, whether hereunder or otherwise, including, without limitation, failure to (i) pay in full and when due (whether by
acceleration or otherwise) any 

  
 -22-

	 	 
installment of principal or interest, or default of Borrower, under any other Loan Document, LC Document or any other agreement with the Agent or any Agent Affiliate or (ii) reimburse the
Agent for drawings under Letters of Credit in accordance with the terms of the LC Documents; or 

  

	 	(b)	failure of Borrower to maintain aggregate collateral security value satisfactory to the Agent; or 

 

	 	(c)	default of any debt, liability, obligation, covenant or undertaking of Borrower or Newtek to any Agent Affiliate or to any other Person; or 

 

	 	(d)	if any statement, representation or warranty heretofore, now or hereafter made by Borrower or Newtek in connection with this Agreement or in any supporting financial
statement of Borrower or Newtek shall be false or misleading in any material respect when made or deemed made; or 

  

	 	(e)	the liquidation, termination or dissolution of Borrower or Newtek, or the merger or consolidation of any such entity into another entity, or its ceasing to carry on
actively its present business or the appointment of a receiver for its property, in each case without the prior written consent of the Agent, which consent may be granted or withheld by the Agent in its sole discretion; or 

 

	 	(f)	reserved; 

  

	 	(g)	any Guarantor repudiates or purports to revoke the Guarantor’s Guaranty, or fails to perform any obligation under such Guaranty; or 

 

	 	(h)	an Overadvance arises as the result of any reduction in the Borrowing Base, or arises in any manner or on terms not otherwise approved of in advance by the Agent in
writing, and such Overadvance is not cured within three (3) days; or 

  

	 	(i)	an event of default or termination event (however defined) occurs under any derivative, foreign exchange, or similar transaction or arrangement entered into between
Borrower and the Agent or any Agent Affiliate; or 

  

	 	(j)	a Change of Control shall occur; or 

  

	 	(k)	Borrower or Newtek becomes insolvent or admits in a writing an inability to pay debts as they mature, or Borrower or Newtek makes an assignment for the benefit of
creditors; or Borrower or Newtek applies for or consents to the appointment of any receiver, trustee, or similar officer for the benefit of Borrower or Newtek, respectively, or for any of their properties; or any receiver, trustee or similar officer
is appointed without the application or consent of Borrower or Newtek; or any judgment, writ, warrant of attachment or execution or similar process is issued or levied against a substantial part of the property of Borrower or Newtek; or

  

	 	(l)	Borrower or Newtek files a petition under any chapter of the United States Bankruptcy Code or under the laws of any other jurisdiction naming Borrower or Newtek as
debtor; or any such petition is instituted against Borrower or Newtek; or Borrower or Newtek institutes (by petition, application, answer, consent or otherwise) any bankruptcy, insolvency, reorganization, debt arrangement, dissolution, liquidation
or similar proceeding under the laws of any jurisdiction; or any such proceeding is instituted (by petition, application or otherwise) against Borrower or Newtek; or 

  
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	 	(m)	any levy, lien (including, without limitation, a mechanics lien), seizure, attachment, execution or similar process shall be issued or levied on any of the property of
the Borrower, in each case other than a Permitted Lien; or 

  

	 	(n)	this Agreement or any other Loan Document, or any provision thereof, shall for any reason cease to be in full force and effect in accordance with its terms or Borrower
or Newtek shall so assert in writing; or 

  

	 	(o)	Agent’s security interest in any of the Collateral fails to be a first priority security interest; or 

 

	 	(p)	an arbitration award, judgment, or decree or order for the payment of money in an amount in excess of (i) $50,000 which is not insured or subject to indemnity, is
entered against the Borrower which is not immediately stayed or appealed or (ii) $250,000 which is not insured or subject to indemnity, is entered against Newtek which is not immediately stayed or appealed; or 

 

	 	(q)	Borrower or Newtek is in default with respect to any bond, debenture, note or other evidence of material indebtedness issued by Borrower or Newtek that is held by any
third Person other than the Agent, or under any instrument under which any such evidence of indebtedness has been issued or by which it is governed, or under any material lease or other contract, and the applicable grace period, if any, has expired,
unless default has been waived by the holder of such indebtedness; or 

  

	 	(r)	Borrower or Newtek liquidates, dissolves, terminates or suspends its business operations or otherwise fails to operate its business in the ordinary course, or merges
with another Person; or sells or attempts to sell all or substantially all of its assets; or 

  

	 	(s)	Borrower fails to pay any indebtedness or obligation owed to the Agent which is unrelated to this Agreement as it becomes due and payable; or 

 

	 	(t)	Borrower engages in any act prohibited by any Subordination Agreement, or makes any payment on Subordinated Indebtedness (as defined in the Subordination Agreement)
that the Subordinated Creditor was not contractually entitled to receive; or 

  

	 	(u)	any director, officer or owner of at least 15% of the issued and outstanding Stock of Borrower or Newtek is indicted for a felony offence under state or federal law, or
Borrower or Newtek hires an officer or appoints a director who has been convicted of any such felony offense, or a Person becomes an owner of at least 15% of the Stock of Borrower or Newtek who has been convicted of any such felony offense; or

  

	 	(v)	any ERISA Event, which the Agent or Required Lenders in good faith believe to constitute sufficient grounds for termination of any Plan or for the appointment of a
trustee to administer any Plan, has occurred and is continuing thirty (30) days after the Borrower gives the Agent a written notice of the ERISA Event; or a trustee is appointed by an appropriate court to administer any Plan; or the PBGC
institutes proceedings to terminate or appoint a trustee to administer any Plan; or Borrower, Newtek or any ERISA Affiliate files for a distress termination of any Plan under Title IV of ERISA; or Borrower, Newtek or any ERISA Affiliate fails to
make any quarterly Plan contribution required under Section 4.12(m) of the TAX CODE, which the Agent or Required Lenders in good faith believe may, either by itself or in combination with other failures, result in the imposition of a
Lien on Borrower’s or Newtek’s assets in favor of the Plan; or any withdrawal, partial withdrawal, reorganization or other event occurs with respect to a Multiemployer Plan which could reasonably be expected to result in a material
liability by Borrower or Newtek to the Multiemployer Plan under Title IV of ERISA; or 

  
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	 	(w)	the occurrence of such a change in the condition, affairs (financial or otherwise) or operations of Borrower, or the occurrence of any other event or circumstance, such
that the Agent or Required Lenders, in their sole discretion, deems that it is insecure or that the prospects for timely or full payment or performance of any obligation of Borrower the Agent or the Lenders has been or may be impaired.

 6.2 Acceleration. If an Event of Default shall occur, at the election of the Agent or Required Lenders, but
automatically in the case of an Event of Default under Sections 6.1(k) and 6.1(l) above, all Obligations shall become immediately due and payable without notice or demand. The Agent is hereby authorized, at its election or the election
of Required Lenders, after an Event of Default, without any further demand or notice except to such extent as notice may be required by Requirements of Law, to take possession and/or sell or otherwise dispose of all or any of the Collateral at
public or private sale; and the Agent may also exercise any and all other rights and remedies of a secured party under the Code or which are otherwise accorded to it in equity or at law, all as Agent may determine, and such exercise of rights in
compliance with the requirements of law will not be considered adversely to affect the commercial reasonableness of any sale or other disposition of the Collateral. If notice of a sale or other action by the Agent is required by Requirements of Law,
unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, Borrower and Newtek agrees that ten (10) days’ written notice to Borrower and Newtek, or the shortest
period of written notice permitted by such law, whichever is smaller, shall be sufficient notice; and that to the extent permitted by law, the Agent, Agent Affiliates, its officers, attorneys and agents may bid and become purchasers at any such
sale, if public, and may purchase at any private sale any of the Collateral that is of a type customarily sold on a recognized market or which is the subject of widely distributed standard price quotations. Any sale (public or private) shall be
without warranty and free from any right of redemption, which Borrower and Newtek hereby waives and releases. No purchaser at any sale (public or private) shall be responsible for the application of the purchase money. The proceeds of any collection
or of any sale or disposition of the Collateral held pursuant to this Agreement shall be applied towards the Obligations in such order and manner as the Agent determines in its sole discretion, any statute, custom or usage to the contrary
notwithstanding and the Agent shall have the unrestricted right from time to time to change any application already made of the proceeds of any of the Collateral to any of the Obligations, as the Agent in its sole discretion may determine. Any
balance of the net proceeds of sale remaining after paying all Obligations of the Borrower to the Agent shall be returned to Borrower or such other Person as may be legally entitled thereto; and if there is a deficiency, the Borrower shall be
responsible for repayment of the same, with interest. Upon demand by the Agent, the Borrower shall assemble the Collateral and make it available to the Agent at a place designated by the Agent which is reasonably convenient to the Agent and the
Borrower. Borrower and Newtek hereby acknowledge that the Agent and each Lender has extended credit and other financial accommodations to the Borrower upon reliance of Borrower’s and Newtek’s granting the Agent the rights and remedies
contained in this Agreement including without limitation the right to take immediate possession of the Collateral upon the occurrence of an Event of Default and Borrower and Newtek hereby acknowledge that the Agent is entitled to equitable and
injunctive relief to enforce any of its rights and remedies hereunder or under the Code and Borrower and Newtek hereby waive any defense to such equitable or injunctive relief based upon any allegation of the absence of irreparable harm to the Agent
or any Lender. The Agent may, following acceleration, for any reason apply for the appointment of a receiver of the Collateral (to which appointment Borrower and Newtek hereby consents) without the necessity of posting a bond or other form of
security (which Borrower and Newtek hereby waives). In addition, upon the occurrence of an Event of Default, the Agent may, or at the direction of the Required Lenders shall, require that the Borrower Cash Collateralize the LC Obligations at
such time, such Cash Collateral to be held by the Agent in a Cash Collateral Account on terms and conditions satisfactory to the Agent in its sole discretion. 
 Borrower and Newtek acknowledge that any exercise by the Agent of the Agent’s rights upon an Event of Default may be subject to compliance by the Agent with any Requirement of Law of any Governmental
Authority, and may impose, without limitation, any of the foregoing restricting the sale of securities. The Agent, in its sole discretion at any such sale, may restrict the prospective bidders or purchasers as to their number, nature of business and
investment intentions, and may impose, without limitation, a requirement that the Persons making such purchases represent and agree, to the satisfaction 

  
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of the Agent, that they are purchasing the Collateral for their own account, for investment, and not with a view to the distribution or resale thereof. 

The Agent shall not be required to marshal any present or future security for (including but not limited to this Agreement and the
Collateral subject to the security interest created hereby), or Guarantees of, the Obligations or any of them, or to resort to such security or Guarantees in any particular order; and all of its rights hereunder and in respect of such securities and
Guaranties shall be cumulative and in addition to all other rights, however existing or arising. To the extent that it lawfully may do so, Borrower and Newtek hereby agree that it will not invoke any law relating to the marshaling of collateral
which might cause delay in or impede the enforcement of the Agent’s rights under this Agreement or under any other instrument evidencing any of the Obligations or under which any of the Obligations is outstanding or by which any of the
Obligations is secured or guaranteed, and to the extent that it lawfully may do so, Borrower and Newtek hereby irrevocably waive the benefits of all such laws. Except as required by Requirements of Law, the Agent shall have no duty as to the
collection or protection of the Collateral or any income thereon, nor as to the preservation of rights against prior parties, nor as to the preservation of any rights pertaining thereto beyond the safe custody thereof. 

6.3 Other Remedies. Without limiting the foregoing, at any time that an Event of Default exists or has occurred and is continuing, the Agent may
in its discretion (or shall at the direction of Required Lenders), enforce the rights of the Borrower against any Account Debtor, secondary obligor or other obligor in respect of any of the Accounts Receivable. Without limiting the generality of the
foregoing, the Agent may in its discretion (or shall at the direction of Required Lenders), at any such time (i) notify, or direct the Borrower to notify, any or all Account Debtors, Clients, secondary obligors or other obligors in respect
thereof that the Accounts Receivable have been assigned to the Agent and that the Agent has a security interest therein and the Agent may direct, or notify the Borrower to direct, any or all Account Debtors, secondary obligors and other obligors to
make payment of Accounts Receivables directly to the Agent, (ii) direct the Borrower to immediately deliver to the Agent all agreements and other documents relating to any Accounts Receivable, (iii) demand, collect or enforce payment of
any Accounts Receivable or such other obligations, but without any duty to do so, and the Agent and the Lenders shall not be liable for any failure to collect or enforce the payment thereof nor for the negligence of its agents or attorneys with
respect thereto and (iv) take whatever other action the Agent may deem necessary or desirable for the protection of its interests and the interests of the Lenders. At any time that an Event of Default exists or has occurred and is continuing,
at the Agent’s direction, all invoices and statements sent to any Account Debtor shall state that the Accounts Receivable and such other obligations have been assigned to the Agent and are payable directly and only to the Agent and the Borrower
shall deliver to the Agent such originals of documents evidencing the Borrower’s purchase of, and the sale and delivery of goods or the performance of services giving rise to, any Accounts Receivable as the Agent may require. The Borrower shall
immediately comply with any notice or direction given by the Agent pursuant to this Section. 
 6.4 Power of Attorney. The Borrower
hereby irrevocably constitutes and appoints the Agent as the Borrower’s true and lawful attorney, with full power of substitution, at the sole cost and expense of the Borrower but for the sole benefit of the Agent and the Lenders, upon the
occurrence of an Event of Default, to convert the Collateral into cash, including, without limitation, completing the manufacture or processing of work in process, and the sale (either public or private) of all or any portion or portions of the
inventory and other Collateral; to use pursuant to a royalty free license all of the Borrower’s intellectual property; to enforce collection of the Collateral, either in its own name or in the name of the Borrower, including, without
limitation, executing releases or waivers, compromising or settling with any Account Debtors and prosecuting, defending, compromising or releasing any action relating to the Collateral; to receive, open and dispose of all mail addressed to the
Borrower and to take therefrom any remittances or proceeds of Collateral in which the Agent has a security interest; to notify Post Office authorities to change the address for delivery of mail addressed to the Borrower to such address as the Agent
shall designate; to endorse the name of the Borrower in favor of the Agent upon any and all checks, drafts, money orders, notes, acceptances or other instruments of the same or different nature; to sign and endorse the name of the Borrower on and to
receive as secured party any of the Collateral, any invoices, freight or express receipts, or bills of lading, storage receipts, warehouse receipts, or other documents of title of the same or different nature relating to the Collateral; to sign the
name of the Borrower on any 

  
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notice of the Account Debtors or on verification of the Collateral; and to sign, if necessary, and file or record on behalf of the Borrower any financing or other statement in order to perfect or
protect the Agent’s security interest. The Agent shall not be obliged to do any of the acts or exercise any of the powers hereinabove authorized, but if the Agent elects to do any such act or exercise any such power, it shall not be accountable
for more than it actually receives as a result of such exercise of power, and it shall not be responsible to the Borrower except for its own gross negligence or willful misconduct. All powers conferred upon the Agent by this Agreement, being coupled
with an interest, shall be irrevocable so long as any Obligation of the Borrower or surety to the Agent shall remain unpaid or the Agent is obligated under this Agreement to extend any credit to the Borrower. 

6.5 Nonexclusive Remedies. All of the Agent’s rights and remedies not only under the provisions of this Agreement but also under any other
agreement or transaction shall be cumulative and not alternative or exclusive, and may be exercised by the Agent at such time or times and in such order of preference as the Agent in its sole discretion may determine. 

6.6 Reassignment to the Borrower. Whenever the Agent deems it desirable that any legal action be instituted with respect to any Collateral or that
any other action be taken in any attempt to effectuate collection of any Collateral, the Agent may reassign the item in question to the Borrower (and if the Agent shall execute any such reassignment, it shall automatically be deemed to be without
warranty or recourse to the Agent in any event) and require the Borrower to proceed with such legal or other action at the Borrower’s sole liability, cost and expense, in which event all amounts collected by the Borrower on such item shall
nevertheless be subject to the Agent’s security interest. 
 7. AGENT 

7.1 Appointment, Authority and Duties of Agent. 
  

	 	(a)	 Each Lender hereby irrevocably appoints and designates Sterling National Bank as Agent to act as herein specified. Agent may, and each Lender by its
becoming a party to this Agreement or execution of an Assignment and Acceptance shall be deemed irrevocably to have authorized Agent to, enter into all Loan Documents to which Agent is or is intended to be a party and all amendments hereto, for its
benefit and the Pro Rata benefit of Lenders and, except as otherwise provided in this Article 7, to exercise such rights and powers under this Agreement and the other Loan Documents as are specifically delegated to Agent by the terms
hereof and thereof, together with such other rights and powers as are reasonably incidental thereto. Each Lender agrees that any action taken by Agent or the Required Lenders in accordance with the provisions of this Agreement or the other Loan
Documents, and the exercise by Agent or the Required Lenders of any of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all Lenders. Without limiting
the generality of the foregoing, Agent shall have the sole and exclusive right and authority to (a) act as the disbursing and collecting agent for Lenders with respect to all payments and collections arising in connection with this Agreement
and the other Loan Documents; (b) execute and deliver as Agent each Loan Document and accept delivery of each such agreement by any Loan Party or any other Person; (c) act as collateral agent for the Lenders for purposes of the perfection
of all security interests and Liens created by this Agreement or the Loan Documents and, subject to the direction of the Required Lenders, for all other purposes stated therein, provided that Agent hereby appoints, authorizes and directs each Lender
to act as a collateral sub-agent for Agent and the other Lenders for purposes of the perfection of all security interests and Liens with respect to Borrower’s Deposit Accounts maintained with, and all cash held by, such Lender; (d) subject
to the direction of the Required Lenders, manage, supervise or otherwise deal with the Collateral; and (e) except as may be otherwise specifically restricted by the terms of this Agreement and subject to the direction of the Required Lenders,
exercise all remedies given to Agent with respect to any of the Collateral under the Loan Documents relating thereto, Requirements of Law or otherwise. The duties of Agent shall be ministerial and

  
 -27-

	 	 
administrative in nature, and Agent shall not have by reason of this Agreement or any other Loan Document a fiduciary relationship with any Lender (or any Lender’s participants). Unless and
until its authority to do so is revoked in writing by Required Lenders, Agent alone shall be authorized to determine whether to fund a Revolving Loan, whether any Accounts constitute Eligible Accounts or whether to impose or release any reserve, and
to exercise its own credit judgment in connection therewith, which determinations and judgments, if exercised in good faith, shall exonerate Agent from any liability to Lenders or any other Person for any errors in judgment.

  

	 	(b)	Agent (which term, as used in this sentence, shall include references to Agent’s officers, directors, employees, attorneys, agents and Affiliates and to the
officers, directors, employees, attorneys and agents of Agent’s Affiliates) shall not: (i) have any duties or responsibilities except those expressly set forth in this Agreement and the other Loan Documents or (ii) be required to
take, initiate or conduct any litigation, foreclosure or collection proceedings hereunder or under any of the other Loan Documents except to the extent directed to do so by the Required Lenders during the continuance of any Event of Default. The
conferral upon Agent of any right hereunder shall not imply a duty on Agent’s part to exercise any such right unless instructed to do so by the Required Lenders in accordance with this Agreement. 

 

	 	(c)	Agent may perform any of its duties by or through its agents and employees and may employ one or more Agent Professionals and shall not be responsible for the
negligence or misconduct of any such Agent Professionals selected by it with reasonable care. The Borrower shall promptly (and in any event, on demand) reimburse Agent for all reasonable expenses incurred by Agent pursuant to any of the provisions
hereof or of any of the other Loan Documents or in the execution of any of Agent’s duties hereby or thereby created or in the exercise of any right or power herein or therein imposed or conferred upon it or Lenders (excluding, however, general
overhead expenses), and each Lender agrees promptly to pay to Agent, on demand, such Lender’s Pro Rata share of any such reimbursement for expenses that is not timely made by Borrower to Agent. 

 

	 	(d)	The rights, remedies, powers and privileges conferred upon Agent hereunder and under the other Loan Documents may be exercised by Agent without the necessity of the
joinder of any other parties unless otherwise required by Requirements of Law. If Agent shall request instructions from the Required Lenders with respect to any act or action (including the failure to act) in connection with this Agreement or any of
the other Loan Documents, Agent shall be entitled to refrain from such act or taking such action unless and until Agent shall have received instructions from the Required Lenders; and Agent shall not incur liability to any Person by reason of so
refraining. Without limiting the foregoing, no Lender shall have any right of action whatsoever against Agent as a result of Agent acting or refraining from acting hereunder or under any of the Loan Documents pursuant to or in accordance with the
instructions of the Required Lenders except for Agent’s own gross negligence or willful misconduct in connection with any action taken by it. Notwithstanding anything to the contrary contained in this Agreement, Agent shall not be required to
take any action that is in its opinion contrary to any Requirement of Law or the terms of any of the Loan Documents or that would in its reasonable opinion subject it or any of its officers, employees or directors to personal liability.

  

	 	(e)	Agent shall be entitled to rely, and shall be fully protected in so relying, upon any certification, notice or other communication (including any thereof by telephone,
telex, telegram, telecopier message or cable) believed by it to be genuine and correct and to have been signed, sent or made by or on behalf of the proper Person or Persons, and upon advice and statements of Agent Professionals.

  

	 	(f)	 Agent shall promptly, upon receipt thereof, forward to each Lender (i) copies of any significant written notices, reports, certificates and other
information received by Agent 

  
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from any Loan Party (but only if and to the extent such Loan Party is not required by the terms of the Loan Documents to supply such information directly to Lenders) and (ii) copies of the
results of any field audits by Agent with respect to the Borrower. The Agent shall have no liability to any Lender for any errors in or omissions from any field audit or other examination of Borrower or the Collateral, unless such error or omission
was the direct result of Agent’s willful misconduct. 

 7.2 Agreements Regarding Collateral. 

 

	 	(a)	Lenders hereby irrevocably authorize Agent to release any Lien with respect to any Collateral (i) upon the termination of the Lending Amounts and Full Payment of
the Obligations, (ii) that is the subject of an asset sale permitted pursuant to Section 5.6 above, or (iii) with the written consent of all Lenders. Agent shall have no obligation whatsoever to any of the Lenders to assure that any
of the Collateral exists or is owned by Borrower or is cared for, protected or insured or has been encumbered, or that Agent’s Liens have been properly, sufficiently or lawfully created, perfected, protected or enforced or are entitled to any
particular priority or to exercise any duty of care with respect to any of the Collateral. 

  

	 	(b)	Agent and Lenders each hereby appoints each other Lender as agent for the purpose of perfecting Liens (for the benefit of the Lenders) in any Collateral that, in
accordance with the Code or any other Requirements of Law, can be perfected only by possession. Should any Lender obtain possession of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor,
shall deliver such Collateral to Agent or otherwise deal with such Collateral in accordance with Agent’s instructions. 

 7.3
Action Upon Default. Agent shall not be deemed to have knowledge of the occurrence of a Default or an Event of Default unless it has received written notice from a Lender or the Borrower specifying the occurrence and nature of such Default or
Event of Default. If Agent shall receive such a notice of a Default or an Event of Default or shall otherwise acquire actual knowledge of any Default or Event of Default, Agent shall promptly notify the Lenders in writing and Agent shall take such
action and assert such rights under this Agreement and the other Loan Documents, or shall refrain from taking such action and asserting such rights, as the Required Lenders shall direct from time to time. If any Lender shall receive a notice of a
Default or an Event of Default or shall otherwise acquire actual knowledge of any Default or Event of Default, such Lender shall promptly notify the Agent and the other Lenders in writing. In no event shall the Required Lenders, without the prior
written consent of each Lender, direct Agent to accelerate and demand payment of the Loans held by one Lender without accelerating and demanding payment of all other Loans or to terminate the Lending Amounts of one or more Lenders without
terminating the Lending Amounts of all Lenders. Each Lender agrees that, except as otherwise provided in any of the Loan Documents or with the written consent of the Agent and the Required Lenders, it will not take any legal action or institute any
action or proceeding against any Loan Party with respect to any of the Obligations or Collateral or accelerate or otherwise enforce its portion of the Obligations. 
 7.4 Remittance of Payments and Collections. 
  

	 	(a)	 All payments by any Lender to the Agent shall be made not later than the time set forth elsewhere in this Agreement on the Business Day such payment is
due; provided, however, that if such payment is due on demand by the Agent and such demand is made on the paying Lender after 1:30 p.m. on such Business Day, then payment shall be made by 11:00 a.m. on the next Business Day. Payment by the Agent to
any Lender shall be made by wire transfer, promptly following the Agent’s receipt of funds for the account of such Lender and in the type of funds received by the Agent; provided, however, that if the Agent receives such funds at or prior to
12:00 noon, the Agent shall pay such funds to such Lender by 4:00 p.m. on such Business Day, but if the Agent receives such funds 

  
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after 12:00 noon, the Agent shall pay such funds to such Lender by 4:00 p.m. on the next Business Day. 

 

	 	(b)	With respect to the payment of any funds from the Agent to a Lender or from a Lender to the Agent, the party failing to make full payment when due pursuant to the terms
hereof shall, on demand by the other party, pay such amount together with interest thereon at the Wall Street Journal Prime Rate. In no event shall the Borrower be entitled to receive any credit for any interest paid by the Agent to any Lender, or
by any Lender to the Agent, at the Wall Street Journal Prime Rate as provided herein. 

  

	 	(c)	If the Agent pays any amount to a Lender in the belief that a related payment has been or will be received by the Agent from a Loan Party and such related payment is
not received by the Agent, then the Agent shall be entitled to recover such amount from each Lender that receives such amount. If the Agent determines at any time that any amount received by it under this Agreement or any of the other Loan Documents
must be returned to a Loan Party or paid to any other Person pursuant to any Requirement of Law, court order or otherwise, then, notwithstanding any other term or condition of this Agreement or any of the other Loan Documents, the Agent shall not be
required to distribute such amount to any Lender. 

 7.5 Ratable Sharing; Allocation. 

 

	 	(a)	If any Lender shall obtain any payment or reduction (including any amounts received as adequate protection of a bank account deposit treated as cash collateral under
the United States Bankruptcy Code) of any Obligation of the Borrower (whether voluntary, involuntary, through the exercise of any right of set-off or otherwise) in excess of its Pro Rata share of payments or reductions on account of such Obligations
obtained by all of the Lenders, such Lender shall forthwith (i) notify the other Lenders and the Agent of such receipt and (ii) purchase from the other Lenders such participations in the affected Obligations as shall be necessary to cause
such purchasing Lender to share the excess payment or reduction, net of costs incurred in connection therewith, on a Pro Rata basis; provided that if all or any portion of such excess payment or reduction is thereafter recovered from such purchasing
Lender or additional costs are incurred, the purchase shall be rescinded and the purchase price restored to the extent of such recovery or such additional costs, but without interest. The Borrower agrees that any Lender so purchasing a participation
from another Lender pursuant to this Section may, to the fullest extent permitted by Requirements of Law, exercise all of its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the
direct creditor of the Borrower in the amount of such participation. 

  

	 	(b)	 At any time that an Event of Default exists or the Agent receives a payment or Collateral proceeds in an amount that is insufficient to pay all amounts
then due and payable to the Agent and the Lenders, all monies to be applied to the Obligations shall be allocated among Agent and such of the Lenders as are entitled thereto (and, with respect to monies allocated to Lenders, on a Pro Rata basis
unless otherwise provided herein): (i) first, to the Agent to pay the amount of expenses that have not been reimbursed to the Agent by the Borrower or the Lenders, together with interest accrued thereon at the rate applicable to the Revolving
Loans, until Full Payment of all such Obligations; (ii) second, to the Agent to pay principal and accrued interest on any portion of the Revolving Loans which the Agent may have advanced on behalf of any Lender and for which the Agent has not
been reimbursed by such Lender or the Borrower, until Full Payment of all such Obligations; (iii) third, to the extent that the Agent has not received from any Participating Lender a payment as required by Section 1.13, to the Agent
to pay all such required payments from each Participating Lender, until Full Payment of all such Obligations; (iv) fourth, to Agent to pay any claims that have not been paid pursuant to any indemnity of Agent Indemnitees

  
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by any Loan Party or the Lenders, in each case together with interest accrued thereon at the rate applicable to Revolving Loans, until Full Payment of all such Obligations; (v) fifth, to the
Agent to pay any fees due and payable to the Agent, until Full Payment of all such Obligations; (vi) sixth, to each Lender, ratably, for any claims such Lender has paid to Agent Indemnitees pursuant to its indemnity of Agent Indemnitees and any
expenses such Lender has reimbursed to Agent or such Lender has incurred, to the extent that such Lender has not been reimbursed by the Loan Parties therefor; (vii) seventh, to the Agent to pay principal, interest and fees with respect to LC
Obligations (or to the extent any of the LC Obligations are contingent and an Event of Default then exists, deposited in the Cash Collateral Account to Cash Collateralize the LC Obligations), which payment shall be shared with the Participating
Lenders in accordance with Section 1.13 above; (viii) eighth, to the Lenders in payment of the unpaid principal and accrued interest in respect of the Revolving Loans and other Obligations in any way relating to the Loan Documents
then outstanding, in such order of application as shall be designated by the Agent (acting at the direction or with the consent of the Required Lenders); and (ix) ninth, to Sterling National Bank or any Affiliate of Sterling National Bank in
payment of any other Obligations owed to such Person and secured by the Collateral hereunder. The allocations set forth in this paragraph are solely to determine the rights and priorities of the Agent and the Lenders as among themselves and may be
changed by the Agent and the Lenders without notice to or the consent or approval of the Borrower or any other Person. 

 7.6
Defaulting Lenders. If a Lender becomes a Defaulting Lender then, until such time as such Defaulting Lender has, as applicable, funded its Pro Rata share of the applicable Revolving Loan and made payment in full to the Agent of all amounts
otherwise necessary to cease to be a Defaulting Lender such Defaulting Lender shall not (i) have the right to vote regarding any issue on which voting is required or advisable under this Agreement or any other Loan Document (it being understood
and agreed that this provision takes precedence over any other provision in this Agreement or the other Loan Documents which, on its face, may require the consent of all Lenders, other than to the extent expressly provided in
Section 7.11) and, with respect to any such Defaulting Lender, the amount of the Revolving Loans held by such Lender shall not be counted as outstanding for purposes of determining “Required Lenders” hereunder or (ii) be
entitled to receive any payments of principal, interest, or fees from the Borrower, the Agent or the other Lenders, as applicable, in respect of its Revolving Loans or Lending Amounts and Agent may, but shall not be required, to apply such payments
to such Defaulting Lender’s obligations hereunder, at such time, and in such order, as Agent may elect in its sole discretion. 
 7.7
Replacement of Lenders. If (a) any Lender shall become a Defaulting Lender or (b) a Lender refuses to consent to an amendment, modification or waiver of this Agreement that, pursuant to Section 7.11 requires consent of
100% of the Lenders or 100% of the affected Lenders and the consent of the Required Lenders has been obtained with respect to such amendment, modification or waiver, then the Agent may, but shall have no obligation to, replace such Lender (the
“Affected Lender”), or cause such Affected Lender to be replaced, with another lender satisfying the requirements of an assignee Lender under Section 8.10, by having the Affected Lender sell and assign all of its rights
and obligations under this Agreement and the other Loan Documents (including participations in LC Obligations) to the replacement Lender pursuant to an Assignment and Acceptance. Upon receipt by any Affected Lender of a written notice from the Agent
stating that the Agent is exercising the replacement right set forth in this Section, such affected Lender shall sell and assign all of its rights and obligations under this Agreement and the other Loan Documents to the replacement Lender pursuant
to an Assignment and Acceptance for a purchase price equal to all amounts owed to (less amounts owed, if any, by) the Affected Lender hereunder or under any other Loan Document as of the date of such assignment. 

7.8 Indemnification of Agent Indemnitees. Each Lender agrees to indemnify and defend the Agent Indemnitees (to the extent not reimbursed by the
Borrower, but without limiting the indemnification obligations of the Loan Parties under any of the Loan Documents), on a Pro Rata basis, and to hold each of the Agent Indemnitees harmless from and against, any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, awards, costs (including remedial response costs), charges, expenses and disbursements of any kind or nature (including reasonable attorneys’, accountants’,

  
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consultants’, or paralegals’ fees and expenses) which may be imposed on, incurred by or asserted against any of the Agent Indemnitees in any way related to or arising out of any of the
Loan Documents or referred to herein or therein or the transactions contemplated thereby; provided that no Lender shall be liable for any of the foregoing to the extent it arises from the gross negligence or willful misconduct of the party to be
indemnified. The foregoing indemnity shall survive the payment of the Obligations and the termination of this Agreement. 
 7.9 Limitation on
Responsibilities of Agent. Agent shall not be liable to Lenders for any action taken or omitted to be taken under or in connection with this Agreement or the other Loan Documents except as a result and to the extent of losses caused by
the Agent’s actual gross negligence or willful misconduct. The Agent does not assume any responsibility for any failure or delay in performance or breach by any Loan Party or any Lender of its obligations under this Agreement or any of the
other Loan Documents. Agent does not make to Lenders, and no Lender makes to Agent or the other Lenders, any express or implied warranty, representation or guarantee with respect to the Obligations, the Collateral, the Loan Documents or any Loan
Party. Neither the Agent nor any of its officers, directors, employees, attorneys or agents shall be responsible to Lenders, and no Lender nor any of its agents, attorneys or employees shall be responsible to the Agent or the other Lenders, for:
(i) any recitals, statements, information, representations or warranties by or on behalf of any Loan Party contained in any of the Loan Documents or in any certificate or other document furnished pursuant to the terms hereof; (ii) the
execution, validity, genuineness, effectiveness or enforceability of any of the Loan Documents; (iii) the genuineness, enforceability, collectability, value, sufficiency, location or existence of any Collateral, or the validity, extent,
perfection or priority of any Lien therein; (iv) the validity, enforceability or collectability of any the Obligations; or (v) the assets, liabilities, financial condition, results of operations, business, creditworthiness or legal status
of any Loan Party or any Account Debtor. Neither the Agent nor any of its officers, directors, employees, attorneys or agents shall have any obligation to any Lender to ascertain or inquire into the existence of any Default or Event of Default, the
observance or performance by any Loan Party of any of the duties or agreements of such Loan Party under any of the Loan Documents or the satisfaction of any conditions precedent contained in any of the Loan Documents. 

7.10 Successor Agent. Subject to the appointment and acceptance of a successor Agent as provided below, the Agent may resign at any time by giving
at least 30 days written notice thereof to each Lender and the Borrower. Upon receipt of any notice of such resignation, the Required Lenders, after prior consultation with (but without having to obtain consent of) each Lender, shall have the right
to appoint a successor Agent which shall be (i) a Lender, (ii) a United States based affiliate of a Lender, or (iii) a commercial bank that is organized under the laws of the United States or of any State thereof and has a combined
capital surplus of at least $100,000,000 and, provided no Default or Event of Default then exists, is reasonably acceptable to the Borrower (and for purposes hereof, any successor to Sterling National Bank shall be deemed acceptable to Borrower). If
no successor agent is appointed prior to the effective date of the resignation of Agent, then Agent may appoint, after consultation with Lenders and the Borrower, a successor agent from among Lenders. Upon the acceptance by a successor Agent of an
appointment to serve as an Agent hereunder, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent without further act, deed or conveyance, and the retiring Agent
shall be discharged from its duties and obligations hereunder. Notwithstanding anything to the contrary contained in this Agreement, any successor by merger or acquisition of the stock or assets of Sterling National Bank shall continue to be Agent
hereunder without further act on the part of the parties hereto. 
 7.11 Consents, Amendments and Waivers; Overadvances. 

 

	 	(a)	No amendment or modification of any provision of this Agreement or any of the other Loan Documents, nor any waiver of any Default or Event of Default, shall be
effective without the prior written agreement or consent of the Required Lenders; provided, however, that 

 (i)
without the prior written consent of the Agent, no amendment or waiver shall be effective with respect to any provision in any of the Loan Documents (including this Article 7) 

  
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to the extent such provision relates to the rights, duties, immunities, exculpation, indemnification or discretion of Agent; 

(ii) without the prior written consent of the Agent, no amendment or waiver with respect to any of the LC Obligations or the
definition of “Defaulting Lender” (except to be more inclusive of the facts and circumstances which cause a Lender to become a Defaulting Lender) shall be effective; 
 (iii) without the prior written consent of each affected Lender (including any Defaulting Lender), no amendment or waiver shall be effective that would (1) increase or otherwise modify any Lending
Amount of such Lender (other than to reduce such Lender’s Lending Amount on a proportionate basis with the same Lending Amounts of other Lenders); (2) alter (other than to increase) the rate of interest or fees payable in respect of any
Obligations owed to such Lender; (3) waive or defer collection of any interest or fee payable to such Lender; (4) subordinate the payment of any Obligations owed to such Lender to the payment of any Indebtedness; or (5) extend the
Maturity Date (which consent, for the avoidance of doubt, is not required in connection with any automatic extension of the Maturity Date); and 
 (iv) without the prior written consent of all Lenders (except a Defaulting Lender), no amendment or waiver shall be effective that would (1) waive any Default or Event of Default if the Default or
Event of Default relates to Borrower’s failure to observe or perform any covenant that may not be amended without the unanimous written consent of Lenders (and, where so provided hereinafter, the written consent of the Agent) as hereinafter set
forth, (2) alter the provisions of Section 1.3(d), Section 1.9, Section 2.1 (except to add to the categories of property of the Borrower constituting Collateral), Section 7.5, this Section,
Section 8.4 or Section 8.9, (3) amend the definitions of “Pro Rata” or “Required Lenders” (and the other defined terms used in such definitions), or any provision of this Agreement obligating Agent to
take certain actions at the direction of the Required Lenders, or any provision of any of the Loan Documents regarding the Pro Rata treatment or obligations of Lenders, (4) subordinate the priority of any Liens granted to Agent under any
of the Loan Documents to consensual, non-statutory Liens granted after the Closing Date to any other Person, except as currently provided in or contemplated by the Loan Documents (including a subordination in favor of the holders of Permitted Liens
that are permitted to have priority over Agent’s Liens), (5) release any Loan Party from liability for any of the Obligations, or (6) modify the definition of “Borrowing Base” or increase the advance rates set forth in
Section 6 of Annex 2. 
  

	 	(b)	The Borrower will not, directly or indirectly, pay or cause to be paid any remuneration or other thing of value, whether by way of supplemental or additional interest,
fee or otherwise, to any Lender (in its capacity as a Lender hereunder) as consideration for or as an inducement to the consent to or agreement by such Lender with any waiver or amendment of any of the terms and provisions of this Agreement or any
of the other Loan Documents to the extent that the agreement of all Lenders to any such waiver or amendment is required, unless such remuneration or thing of value is concurrently paid, on the same terms, on a Pro Rata or other mutually agreed upon
basis to all Lenders; provided, however, that the Borrower may contract to pay a fee only to those Lenders who actually vote in writing to approve any waiver or amendment of the terms and provisions of this Agreement or any of the other Loan
Documents to the extent that such waiver or amendment may be implemented by vote of the Required Lenders and such waiver or amendment is in fact approved. 

  

	 	(c)	 Agent may require Lenders to fund Permitted Overadvances (in which event, and notwithstanding anything to the contrary set forth in this Agreement, the
Lenders shall continue to make Revolving Loans up to their Pro Rata share of the Lending Amounts); provided that upon direction in writing by Required Lenders, Agent shall cease making Permitted Overadvances solely to the extent such Permitted
Overadvances are in excess of ten percent (10%) of the Maximum Facility Amount. In no event shall Borrower or any 

  
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other Loan Party be deemed to be a beneficiary of this paragraph or authorized to enforce any of the provisions of this paragraph. 

7.12 Due Diligence and Non-Reliance. Each Lender hereby acknowledges and represents that it has, independently and without reliance upon
the Agent or the other Lenders, and based upon such documents, information and analyses as it has deemed appropriate, made its own credit analysis of each Loan Party and its own decision to enter into this Agreement and to fund the Loans to be made
by it hereunder and to purchase participations in the LC Obligations, and each Lender has made such inquiries concerning the Loan Documents, the Collateral and each Loan Party as such Lender feels necessary and appropriate, and has taken such
care on its own behalf as would have been the case had it entered into the other Loan Documents without the intervention or participation of the other Lenders or the Agent. Each Lender also hereby acknowledges that it will, independently and without
reliance upon the other Lenders or the Agent, and based upon such financial statements, documents and information as it deems appropriate at the time, continue to make and rely upon its own credit decisions in making Loans and in taking or
refraining to take any other action under this Agreement or any of the other Loan Documents. Representations and Warranties of Lenders. Each Lender represents and warrants to Borrower, Agent and the other Lenders that (a) it has
the power to enter into and perform its obligations under the Loan Documents, (b) it has taken all necessary action to authorize its execution and performance of the Loan Documents to which it is a party and (c) none of the consideration
used by it to make or fund its Loans or to participate in any other transactions under this Agreement constitutes for any purpose of ERISA or Section 4975 of the Tax Code assets of any “plan” as defined in Section 3(3) of ERISA
or Section 4975 of the Tax Code and the rights and interests of such Lender in and under the Loan Documents shall not constitute plan assets under ERISA. 
 7.14 The Required Lenders. As to any provisions of this Agreement or the other Loan Documents under which action may or is required to be taken upon direction or approval of the Required Lenders,
the direction or approval of the Required Lenders shall be binding upon each Lender to the same extent and with the same effect as if each Lender joined therein. Notwithstanding anything to the contrary contained in this Agreement, Borrower shall
not be deemed to be a beneficiary of, or be entitled to enforce, sue upon or assert as a defense to any of the Obligations, any provisions of this Agreement that requires Agent or any Lender to act, or conditions their authority to act, upon the
direction or consent of the Required Lenders; and any action taken by Agent or any Lender that requires the consent or direction of the Required Lenders as a condition to taking such action shall, insofar as Borrower is concerned, be presumed to
have been taken with the requisite consent or direction of the Required Lenders. Several Obligations. The obligations of each Lender under this Agreement and the other Loan Documents are several and neither Agent nor any Lender shall be
responsible for the performance by the other Lenders of its obligations hereunder or thereunder. Notwithstanding any liability of Lenders stated to be joint and several to third Persons under any of the Loan Documents, such liability shall be
shared, as among Lenders, Pro Rata. Nothing contained in this Agreement and no action taken by Lenders pursuant hereto shall be deemed to constitute the Lenders to be a partnership, association, joint venture or any other kind of entity. 

7.16 Agent in its Individual Capacity. With respect to its obligation to lend under this Agreement, the Loans made by it and each promissory note
issued to it, Agent shall have the same rights and powers hereunder and under the other Loan Documents as any other Lender and may exercise the same as though it were not performing the duties specified herein, and the terms “Lenders,”
“Required Lenders,” or any similar term shall, unless the context clearly otherwise indicates, include Agent in its capacity as a Lender. Agent and its Affiliates may each accept deposits from, maintain deposits or credit balances for,
invest in, lend money to, act as trustee under indentures of, serve as financial advisor to, and generally engage in any kind of business with Borrower or any other Loan Party, or any Affiliate of Borrower or any other Loan Party, as if it were any
other bank and without any duty to account therefor (or for any fees or other consideration received in connection therewith) to the other Lenders. Sterling National Bank and its Affiliates may receive information regarding Borrower or any of
Borrower’s Affiliates and Account Debtors (including information that may be subject to confidentiality obligations in favor of Borrower or any of its Affiliates) and Lenders acknowledge that neither Agent nor Sterling National Bank shall be
under any 

  
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obligation to provide such information to Lenders to the extent acquired by Sterling National Bank in its individual capacity and not as Agent hereunder. 

7.17 No Third Party Beneficiaries. This Article 7 is not intended to confer any rights or benefits upon Borrower or any other Person except
Lenders and Agent, and no Person (including the Borrower) other than Lenders and the Agent shall have any right to enforce any of the provisions of this Article. Notice of Transfer. Agent may deem and treat a Lender party to this Agreement as
the owner of such Lender’s portion of the Loans for all purposes, unless and until a executed Assignment and Acceptance has been received by Agent. 
 8. MISCELLANEOUS 
 8.1 Waivers. Borrower and Newtek waive notice of intent to
accelerate, notice of acceleration, notice of nonpayment, demand, presentment, protest or notice of protest of the Obligations, and all other notices, consents to any renewals or extensions of time of payment thereof, and generally waives any and
all suretyship defenses and defenses in the nature thereof; provided, however, that Newtek does not waive the requirement that demand be made upon it in accordance with the Guaranty for payment of its obligations under this Agreement. 

8.2 Severability. If any provision of this Agreement or portion of such provision or the application thereof to any Person or circumstance shall
to any extent be held invalid or unenforceable, the remainder of this Agreement (or the remainder of such provision) and the application thereof to other persons or circumstances shall not be affected thereby. 

8.3 Deposit Collateral. Borrower and Newtek hereby grant to the Agent and any Agent Affiliate a continuing lien and security interest in any and
all deposits or other sums at any time credited by or due from the Agent or any Agent Affiliate to Borrower or Newtek, as the case may be, and any cash, securities, instruments or other property of Borrower and Newtek in the possession of the Agent
or any Agent Affiliate, whether for safekeeping or otherwise, or in transit to or from the Agent or any Agent Affiliate (regardless of the reason the Agent or Agent Affiliate had received the same or whether the Agent or Agent Affiliate has
conditionally released the same) as security for the full and punctual payment and performance of all of the liabilities and obligations of the Borrower to the Agent or any Agent Affiliate and such deposits and other sums may be applied or set off
against such liabilities and obligations of the Loan Parties to the Agent or any Agent Affiliate at any time, whether or not such are then due, whether or not demand has been made and whether or not other collateral is then available to the Agent or
any Agent Affiliate. 
 8.4 Indemnification. The Borrower shall indemnify, defend and hold each Indemnitee harmless of and from any claim
brought or threatened against any Indemnitee by any Loan Party or endorser of the Obligations, or any other Person (as well as from reasonable attorneys’ fees and expenses in connection therewith) on account of the Agent’s or any
Lender’s relationship with any Loan Party or endorser of the Obligations (each of which may be defended, compromised, settled or pursued by the Indemnitee with counsel of the Indemnitee’s election, but at the expense of the Borrower),
except for any claim arising out of the gross negligence or willful misconduct of such Indemnitee. The within indemnification shall survive payment of the Obligations, and/or any termination, release or discharge executed by the Agent or any Lender
in favor of any Loan Party. 
 8.5 Costs and Expenses. The Borrower shall pay to the Agent on demand any and all costs and expenses
(including, without limitation, reasonable attorneys’ fees and disbursements, court costs, litigation and other expenses) incurred or paid by the Agent in the preparation of this Agreement and in establishing, maintaining, protecting or
enforcing any of the Agent’s rights or the Obligations, including, without limitation, any and all such costs and expenses incurred or paid by the Agent (a) in defending the Agent’s security interest in, title or right to the
Collateral or in collecting or attempting to collect or enforcing or attempting to enforce payment of the Obligations and (b) in any bankruptcy or other proceeding related to any Loan Party. In addition, the Borrower shall pay to the Agent on
demand, for the 

  
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benefit of the Lenders any and all costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements, court costs, litigation and other expenses) incurred or
paid by each Lender (a) in collecting or attempting to collect or enforcing or attempting to enforce payment of the Obligations and (b) in any bankruptcy or other proceeding related to any Loan Party. 

8.6 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which, taken
together, shall constitute but one agreement. Any party to a Loan Document may rely on signatures of the parties thereto or in any notice or communication delivered pursuant thereto which are transmitted by facsimile or other electronic means as
fully as if manually signed. 
 8.7 Complete Agreement. This Agreement and the other Loan Documents constitute the entire agreement and
understanding between and among the parties hereto relating to the subject matter hereof, and supersedes all prior and contemporaneous proposals, negotiations, agreements and understandings among the parties hereto with respect to such subject
matter. 
 8.8 Binding Effect of Agreement. This Agreement shall be binding upon and inure to the benefit of the respective heirs,
executors, administrators, legal representatives, successors and assigns of the parties hereto, and shall remain in full force and effect (and the Agent shall be entitled to rely thereon) until released in writing by the Agent. Subject to
Section 7.10, the Agent may transfer and assign this Agreement and deliver the Collateral to the assignee, who shall thereupon have all of the rights of the Agent; and the Agent shall then be relieved and discharged of any responsibility
or liability with respect to this Agreement and the Collateral. Neither Borrower nor Newtek may assign or transfer any of its rights or delegate any of its obligations under this Agreement. Except as expressly provided herein or in the other Loan
Documents, nothing, expressed or implied, is intended to confer upon any party, other than the parties hereto, any rights, remedies, obligations or liabilities under or by reason of this Agreement or the other Loan Documents. 

8.9 Amendments and Waivers. No amendment or waiver of this Agreement or any other Loan Document or any provision hereof or thereof, and no consent
to any departure by any Loan Party therefrom, shall be effective unless the same shall be in writing and signed by the Agent and the Lenders (or, where otherwise expressly permitted pursuant to Section 7.11, the Required Lenders in lieu
of the Agent and the Lenders), Borrower and Newtek, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No course of dealing and no delay or omission on the part of Agent in
exercising any right hereunder shall operate as a waiver of such right or any other right and waiver on any one or more occasions shall not be construed as a bar to or waiver of any right or remedy of Agent on any future occasion. The rights,
remedies, powers and privileges herein provided or provided in the other Loan Documents are cumulative and not exclusive of any rights, remedies powers and privileges provided by law. Without limiting the generality of the foregoing, to the extent
permitted by law, the making of a Credit Extension shall not be construed as a waiver of any Event of Default, regardless of whether the Agent or any Lender may have had notice or knowledge of such Event of Default at the time. 

8.10 Assignment by Lenders. 
  

	 	(a)	 Each Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its
Lending Amount and the Loans at the time owing to it); provided that, except in the case of an assignment to an Affiliate of the Lender or an Approved Fund, such assignment is subject to the prior written consent of the Agent (which consent shall
not be unreasonably withheld). Each such partial assignment shall be in a minimum principal amount of $100,000 (unless otherwise agreed by Agent in its sole discretion) and integral multiples of $50,000 in excess of that amount; Subject to
notification of an assignment, the assignee shall be a party hereto and, to the extent of the interest assigned, have the rights and obligations of the assigning Lender under this Agreement, and such Lender shall, to the extent of the interest
assigned, be released from its obligations under this Agreement (and, in the case of an 

  
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assignment covering all of the Lender’s rights and obligations under this Agreement, the Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections
2.9, 2.10 and 8.4). Each Loan Party hereby agrees to execute any amendment and/or any other document that may be necessary to effectuate such an assignment. Any assignment or transfer by the Lender of rights or obligations under this Agreement that
does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by the Lender of a participation in such rights and obligations in accordance with paragraph (b) of this Section. Notwithstanding anything to the
contrary in Article 7, in this paragraph or elsewhere in this Agreement, Sterling National Bank shall be the sole Lender as of the Closing Date and may not assign to one or more assignees all or a portion of its rights and obligations as Lender
under this Agreement except (i) upon the occurrence and during the continuance of an Event of Default or (ii) upon the agreement of Borrower and Agent, which may be granted or withheld in the Agent’s sole discretion, to increase the
Maximum Facility Amount above $10,000,000; provided that, for the avoidance of doubt, this sentence shall not in any way or at any time restrict Lender’s rights pursuant to Section 8.10(b) and Section 8.10(c) below.

  

	 	(b)	Each Lender may, without the consent of the Agent or the Borrower, sell participations to one or more banks or other entities in all or a portion of the Lender’s
rights and obligations under this Agreement (including all or a portion of its Lending Amount and the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Agent and Borrower shall continue to deal solely and directly with the Lender in connection with the Lender’s rights and
obligations under this Agreement. 

  

	 	(c)	Each Lender may at any time, without the consent of the Agent or the Borrower, pledge or assign a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment of a security interest shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto 

 8.11 Terms of
Agreement. This Agreement shall continue in full force and effect so long as any Obligations or obligation of any Loan Party to Agent shall be outstanding, or the Agent shall have any obligation to extend any financial accommodation hereunder,
and is supplementary to each and every other agreement between or among any Loan Parties and Agent and shall not be so construed as to limit or otherwise derogate from any of the rights or remedies of Agent or any of the liabilities, obligations or
undertakings of or among any Loan Parties under any such agreement, nor shall any contemporaneous or subsequent agreement between or among any Loan Parties and the Agent be construed to limit or otherwise derogate from any of the rights or remedies
of Agent or any of the liabilities, obligations or undertakings of or among any Loan Parties hereunder, unless such other agreement specifically refers to this Agreement and expressly so provides. 

8.12 Notices. Unless otherwise specifically provided herein, any notice delivered under this Agreement shall be in writing addressed to the
respective party as set forth below and may be personally served, sent by facsimile transmission or sent by overnight courier service or certified or registered United States mail and shall be deemed to have been given (a) if delivered in
person, when delivered; (b) if delivered by facsimile transmission or electronic mail, on the date of transmission if transmitted on a Business Day before 4:00 p.m. or, if not, on the next succeeding Business Day (provided that, in either case,
the sender shall have received from the recipient a confirmation of transmission (in addition to any electronic confirmation of receipt generated by the facsimile or electronic mail system); (c) if delivered by overnight courier, one business
day after delivery to such courier properly addressed and with shipping charges paid; or (d) if by United States mail, three business days after deposit in the United States mail, registered or certified mail, postage prepaid, return receipt
requested, and properly addressed. 

  
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 Notices shall be addressed as follows: 

If to the Agent, to: 
 Sterling National Bank 
 500 Seventh Avenue 

New York, New York 10018-4603 
 Attention: Marline Alexander 
 Fax No.: (212) 869-5579 

With a copy to: 

Lowenstein Sandler PC 
 1251 Avenue of the Americas, 18th Floor 
 New York, New York 10020 

Attention: Lowell A. Citron, Esq. 
 Fax No.: (973) 422-6809 
 If to Borrower, to: 

CDS Business Services, Inc. 
 60 Hempstead Avenue, 6th Floor 
 West Hempstead, New York 11552 

Attention: David Leone, President 
 Fax No.: (516) 546-3820 
 With a copy to: 

Newtek Business Services, Inc. 
 Legal Department 
 1440 Broadway, 17th floor 

New York, NY 10018 
 Fax No.: 212-356-9542 
 If to Newtek: 

Newtek Business Services, Inc. 
 1440 Broadway, 17th Floor 
 New York, NY 10018 

Attention: Barry Sloane, Chief Executive Officer 
 Fax No.: 212-643-0622 
 With a copy to: 

Newtek Business Services, Inc. 
 Legal Department 
 1440 Broadway, 17th Floor 

New York, NY 10018 
 Fax No.: 212-356-9542 
 or in any case, to such other address as the party
addressed shall have previously designated by written notice to the serving party, given in accordance with this Section. Notwithstanding the foregoing, any notice, request or demand by any Loan Party to or upon the Agent to make a Credit Extension
shall not be effective until received. 
 8.13 Governing Law. This Agreement has been executed or completed and/or is to be performed in
New York, and it and all transactions thereunder or pursuant thereto shall be governed as to interpretation, validity, effect, rights, duties and remedies of the parties thereunder and in all other

  
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respects by the laws of New York, without giving effect to the conflicts of laws principles thereof, but including Sections 5-1401 and 5-1402 of the General Obligations Law. 

8.14 Reproductions; Disclosures. This Agreement and all documents which have been or may be hereinafter furnished by any Loan Party to the Agent
or any Lender may be reproduced by the Agent or such Lender by any photographic, photostatic, microfilm, xerographic or similar process, and any such reproduction shall be admissible in evidence as the original itself in any judicial or
administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made in the regular course of business). The Agent and each Lender may refer to any Loan Party and this financing transaction in general
terms in connection with any marketing material undertaken by the Agent or such Lender. No Loan Party shall issue any press releases or other disclosure regarding this financing transaction without the prior written consent of the Agent and each
affected Lender. 
 8.15 Completing and Correcting this Agreement. Each Loan Party authorizes the Agent to fill in any blank spaces and
to otherwise complete this Agreement and to correct any patent errors herein. 
 8.16 ADDITIONAL WAIVERS. IN ANY ACTION, SUIT
OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS AGREEMENT, EACH LOAN PARTY WAIVES (i) THE RIGHT TO INTERPOSE ANY SET-OFF OR COUNTERCLAIM OF ANY NATURE OR DESCRIPTION, (ii) ANY OBJECTION BASED ON FORUM NON CONVENIENS OR VENUE AND
(iii) ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES. 
 8.17 Jurisdiction and Venue. Each Loan Party irrevocably
submits to the nonexclusive jurisdiction of any Federal or state court sitting in New York County, over any suit, action or proceeding arising out of or relating to this Agreement. Each Loan Party irrevocably waives, to the fullest extent it may
effectively do so under Requirements of Law, any objection it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that the same has been brought in an inconvenient
forum. Each Loan Party hereby consents to any and all process which may be served in any such suit, action or proceeding, (i) by mailing a copy thereof by certified mail, postage prepaid, return receipt requested, and by first class mail to
such Loan Party’s address shown in this Agreement or as notified to the Agent in accordance with the terms of this Agreement or (ii) by serving the same upon such Loan Party in any other manner otherwise permitted by law, and agrees that
such service shall in every respect be deemed effective service on such Loan Party. 
 8.18 JURY WAIVER. EACH LOAN PARTY, AGENT
AND EACH LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, (A) WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS AGREEMENT, THE
OBLIGATIONS, ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND (B) AGREE NOT TO SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE, OR HAS NOT BEEN, WAIVED. EACH LOAN PARTY
CERTIFIES THAT NEITHER AGENT, ANY LENDER NOR ANY OF THEIR REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT AGENT WOULD NOT IN THE EVENT OF ANY SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

 8.19 Joint and Several. All joint obligations of Loan Parties (or any group of Loan Parties) shall be joint and several (whether
or not expressly stated herein), and such obligation and liability on the part of each Loan Party shall in no way be affected by any extensions, renewals and forbearance granted by Agent or any Lender to any Loan Party, failure of Agent to give any
Loan Party notice of borrowing or any other notice, any failure of Agent to pursue or preserve its rights against any Loan Party, the release by Agent of any Collateral now or thereafter acquired from any Loan Party, and such agreement by each Loan
Party to pay upon any notice issued pursuant thereto is unconditional and unaffected by prior recourse by Agent to any other Loan Party or any Collateral for such Loan Party’s Obligations or the lack thereof. 

  
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 8.20 Construction. Each party to a Loan Document has been represented by counsel in connection with
the Loan Documents and the transactions contemplated thereby and has participated jointly with the other parties in the negotiation and drafting of this Agreement and the other Loan Documents. In the event an ambiguity or question of intent or
interpretation arises, this Agreement and the other Loan Documents shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
provisions of this Agreement. 
 8.21 USA PATRIOT Act Notice. The Agent hereby notifies the Loan Parties that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies each Loan Party, which information
includes the name and address of each Loan Party and other information that will allow the Agent to identify each Loan Party in accordance with the Patriot Act. Each Loan Party is in compliance, in all material respects, with the Patriot Act. No
part of the proceeds of the Credit Extensions will be used by any Borrower, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 

8.22 Foreign Asset Control Regulations. Neither of the Credit Extensions nor the use of the proceeds of any thereof will violate the Trading With
the Enemy Act (50 U.S.C. § 1 et seq., as amended) (the “Trading with the Enemy Act”) or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) (the
“Foreign Assets Control Regulations”) or any enabling legislation or executive order relating thereto (including, without limitation (a) Executive Order 13224 of September 21, 2001 Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive Order”) and (b) the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)). Furthermore, none of the Loan Parties and none of or their Affiliates (a) is or will become a “blocked person” as described in the Executive Order, the Trading With
the Enemy Act or the Foreign Assets Control Regulations or (b) engages or will engage in any dealings or transactions, or be otherwise associated, with any such “blocked person” or in any manner violative of any such order.

 8.23 Electronic Execution of Documents. The words “execution,” “signed,” “signature,” and words of like
import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Requirement of Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records
Act, or any other similar state laws based on the Uniform Electronic Transactions Act. 
 9. GENERAL PROVISIONS RELATED TO
NEWTEK 
 9.1 Taxes. 
  

	 	(a)	Payments Free and Clear of Taxes. Except as otherwise provided in this Section 9.1, each payment by Newtek under any Loan Document shall be made free
and clear of all present or future Taxes, other than for taxes measured by net income (including branch profits taxes) and franchise taxes imposed in lieu of net income taxes, in each case imposed on the Agent or any Lender as a result of a present
or former connection between the Agent or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than such connection arising solely from the Agent
or such Lender having executed, delivered or performed its obligations or received a payment under, or enforced, any Loan Document). 

  
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	 	(b)	Gross-Up. If any Taxes shall be required by law to be deducted from or in respect of any amount payable under any Loan Document to the Agent or any Lender
(i) such amount shall be increased as necessary to ensure that, after all required deductions for Taxes are made (including deductions applicable to any increases to any amount under this Section 9.1), the Agent or such Lender
receives the amount it would have received had no such deductions been made, (ii) Newtek shall make such deductions and (iii) Newtek shall timely pay the full amount deducted to the relevant taxing authority or other authority in
accordance with applicable Requirements of Law. 

  

	 	(c)	Other Taxes. In addition, Newtek agrees to pay, and authorizes the Agent to pay in its name to the extent Newtek fails to do so on prior to the date when due,
any Other Taxes. Within thirty (30) days after the date of any payment of Taxes or Other Taxes by Newtek, the Borrower shall furnish to the Agent, the original or a certified copy of a receipt evidencing payment thereof.

  

	 	(d)	Indemnification. Newtek shall reimburse and indemnify, within thirty (30) days after receipt of demand therefor the Indemnitees for all Taxes and Other
Taxes (including any Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 9.1) paid by such Indemnitee and any liabilities arising therefrom or with respect thereto, whether or not such Taxes or Other
Taxes were correctly or legally asserted. A certificate of any Indemnitee claiming any compensation under this clause (d), setting forth in reasonable detail the computation of the amounts to be paid thereunder and delivered to the Borrower shall be
conclusive, binding and final for all purposes, absent manifest error. In determining such amount, an Indemnitee may use any reasonable averaging and attribution methods. 

 9.2 Credit Reports and Disclosure. The Agent is authorized to make all inquires the Agent deems necessary to verify the accuracy of the information in respect of Newtek contained in the Loan
Documents and to determine the credit worthiness of Newtek. Newtek authorizes any Person or credit reporting agency to give to the Agent any information it may have on Newtek. Newtek authorizes the Agent to answer questions about Newtek’s
credit experience with the Agent. The Agent and each Lender may refer to Newtek and this financing transaction in general terms in connection with any marketing material undertaken by the Agent or such Lender. Unless required to do so by applicable
law, Newtek shall not issue any press releases or other disclosure regarding this financing transaction without the prior written consent of the Agent and each affected Lender. 
 10. NEWTEK’S REPRESENTATIONS AND WARRANTIES 
 In order to induce the
Agent and each Lender to enter into this Agreement and to extend the credit herein provided for, Newtek represents and warrants to the Agent and each Lender that: 
 10.1 Authorization; Enforceability. The Transactions are within the corporate, limited liability company, partnership or other analogous powers of Newtek to the extent it is a party thereto and
have been duly authorized by all necessary corporate, limited liability company, partnership or other analogous equity holder action, if required. Each Loan Document has been duly executed and delivered by Newtek to the extent it is a party thereto
and constitutes a legal, valid and binding obligation thereof, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally. 

10.2 Governmental Approvals; No Conflicts. The Transactions (a) will not violate any Requirement of Law or the Organizational Documents of
Newtek or any order of any Governmental Authority applicable to any of them and (b) will not violate or result in a default under any indenture, agreement or other instrument binding upon Newtek or its assets, or give rise to a right thereunder
to require any payment to be made by Newtek. 

  
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 10.3 Permits. Newtek possesses or has the right to use, and is in compliance with, all Permits and
other rights that are material to the conduct of its business and knows of no conflict with the valid rights of others which could reasonably be expected to have a Material Adverse Effect. To the best knowledge of Newtek, no event has occurred which
permits or, after notice, lapse of time (or both) or any other condition, could reasonably be expected to permit, the revocation or termination of any such franchise, license or other right which revocation or termination could reasonably be
expected to have a Material Adverse Effect. 
 10.4 Litigation and Environmental Matters. Except as set forth on Schedule 3.9:

  

	 	(a)	There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting Newtek (i) that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve any Loan Document or the Transactions.

  

	 	(b)	Newtek (i) has not failed to comply with any Environmental Law or to obtain, maintain or comply with any Permit or other approval required under any Environmental
Law, (ii) has not become subject to any Environmental Liability, (iii) has not received notice of any claim with respect to any Environmental Liability or (iv) knows of no basis for any Environmental Liability.

 10.5 Investment Company Status. Newtek is not an “investment company” as defined in, or subject to regulation
under, the Investment Company Act of 1940, as amended. 
 10.6 Compliance with Law and Agreements. Newtek is in compliance with all laws,
regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property. No default under any such indenture, agreement or other instrument has
occurred and is continuing or would result from the incurrence of the obligations of the Loan Parties under the Loan Documents or from the grant or perfection of the Liens granted to the Agent under this Agreement. 

10.7 Federal Reserve Regulations. Newtek is not engaged principally, or as one of its important activities, in the business of extending credit
for the purpose of buying or carrying Margin Stock. None of the Collateral is used or was acquired primarily for personal, family or household purposes 
 10.8 Labor Matters. As of the date hereof, there are no strikes, lockouts or slowdowns against Newtek pending or, to the knowledge of the Borrower, threatened. The hours worked by and payments made
to employees of Newtek have not been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or foreign law dealing with such matters. All material payments due from Newtek, or for which any claim may be made
against Newtek, on account of wages and employee health and welfare insurance and other benefits, have been paid or, to the extent required by GAAP, accrued as a liability on the books of Newtek. The consummation of the Transactions will not give
rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to which Newtek is a party or by which it is bound. 
 10.9 Solvency. After giving effect to the transactions contemplated by this Agreement, and before and after giving effect to the making of each Loan, Newtek is Solvent. No transfer of property has
been or will be made by Newtek and no obligation has been or will be incurred by Newtek in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or
future creditors of Newtek. 
 10.10 Disclosure. The Borrower has disclosed to the Agent all agreements, instruments and corporate or
other restrictions to which Newtek is subject, and all other matters known to it, that, individually, could reasonably be expected to result in a Material Adverse Effect. None of the reports, financial statements,

  
 -42-

 
certificates or other written information furnished by or on behalf of Newtek to the Agent in connection with the negotiation of the Loan Documents or delivered thereunder (as modified or
supplemented by other written information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading, provided that, with respect to projected financial information, Newtek represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time and there can be no assurance that
actual results will comport with such projections. 
 10.11 ERISA. (i) No ERISA Event has occurred or is reasonably expected to
occur; (ii) no Plan has any Unfunded Pension Liability; (iii) neither Newtek nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums
due and not delinquent under Section 4007 of ERISA and other than periodic contribution requirements); (iv) neither Newtek nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred
which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither Newtek nor any ERISA Affiliate has engaged in a
transaction that could be subject to Sections 4069 or 4212(c) of ERISA, which in each case could reasonably be expected to have a Material Adverse Effect. 
 11. NEWTEK AFFIRMATIVE COVENANTS 
 Until the principal of and interest on
each Loan and all fees and other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit have expired and all LC Obligations have been reimbursed Newtek agrees to comply with the covenants set forth in this
Article 11 that are applicable to Newtek. 
 11.1 Payments and Performance. Newtek will duly and punctually pay all payment Obligations
in accordance with the Guaranty and will duly and punctually perform all other Obligations on its part to be performed under the Loan Documents. 
 11.2 Books and Records; Inspection. Newtek will at all times keep proper books of account in which full, true and correct entries will be made of its transactions in accordance with GAAP,
consistently applied and which are, in the opinion of a Certified Public Accountant acceptable to Agent, adequate to determine fairly the financial condition and the results of operations of Newtek. Newtek will at all reasonable times make its books
and records available in its offices for inspection, examination and duplication by the Agent and the Agent’s representatives and will permit the Agent and the Agent’s representatives to discuss its affairs, finances and condition with its
officers and independent accountants 
 11.3 Maintenance of Existence; Conduct of Business. Newtek will maintain its existence in good
standing and shall do or cause to be done all things necessary to preserve and keep in full force and effect its legal existence and all rights, Permits, privileges and franchises material to the conduct of its business. 

11.4 Compliance with Law. Newtek will comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its
property. 
 11.5 Solvency. Newtek will remain Solvent during the term of this Agreement. 

11.6 Operating and Deposit Accounts. Newtek shall maintain with the Agent the accounts set forth in Section 4 of Annex 2. 

11.7 Payment of Newtek Taxes, Accounts Payable and Other Obligations. Newtek will pay, before the same shall become delinquent or in default, its
obligations, including Loan Party Taxes, except and only to the extent that (a) the validity or amount thereof is being contested in good faith by appropriate 

  
 -43-

 
proceedings diligently conducted, (b) Newtek has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such
contest could not reasonably be expected to result in a Material Adverse Effect. 
 11.8 Environmental. Newtek shall use and operate all
of its facilities and property in compliance with all Environmental Laws, keep all necessary Permits, approvals, certificates, licenses and other authorizations relating to environmental matters in effect and remain in compliance therewith, and
handle all Hazardous Materials in compliance with all applicable Environmental Laws. Newtek agrees to indemnify and hold each Indemnitee harmless from all liability, loss, cost, damage and expense, including attorneys’ fees and costs of
litigation, arising from any violation by Newtek of any Environmental Law (including those arising from any lien by any Federal, state or local government arising from the presence of Hazardous Materials) or from the presence of Hazardous Materials
located on or emanating from any of the premises owned or controlled by Newtek. Newtek agrees that its obligations hereunder shall be continuous and shall survive the repayment of all Obligations. 

11.9 Third Parties. Newtek acknowledges and agrees that the Agent shall have no duty to, and shall not be deemed to have assumed any liability or
responsibility to, Newtek or any third Person for the correctness, validity or genuineness of any instruments or documents that may be released or endorsed to Newtek by the Agent (all of which shall be without recourse to the Agent) or for the
existence, character, quantity, quality, condition, value or delivery of any goods purporting to be represented by any such documents; and the Agent, by accepting a Lien on the Collateral, or by releasing any Collateral to Newtek, shall have no duty
to, and shall not be deemed to have assumed any obligation or liability to, any supplier, Account Debtor or any other third party, and Newtek agrees to indemnify and defend the Agent against and hold it harmless from any claim or proceeding arising
out of the foregoing. 
 12. NEWTEK NEGATIVE COVENANTS 

Until the principal of and interest on each Loan and all fees and other amounts payable under the Loan Documents shall have been paid in
full and all Letters of Credit have expired and all LC Obligations have been reimbursed, Newtek agrees to comply with the covenants set forth in this Article 12 that are applicable to Newtek. 
 12.1 Financial Covenants. Until the principal of and interest on each Loan and all fees and other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit
have expired and all LC Obligations have been reimbursed, Newtek agrees to comply with the financial covenants, applicable to it, set forth in Section 14 of Annex 2 hereto. 
 12.2 Fundamental Changes. Newtek will not or will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or
sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of its assets, or all or substantially all of the equity securities of any of the Subsidiaries (in each case, whether now
owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto, no Event of Default shall have occurred: 

 

	 	(a)	any Subsidiary of Newtek may merge into Newtek in a transaction in which Newtek is the surviving entity; 

 

	 	(b)	any Subsidiary of Newtek (other than the Borrower and its Subsidiaries) may merge into any other; and 

 

	 	(c)	any Subsidiary of Newtek (other than the Borrower) may sell, transfer, lease or otherwise dispose of its assets to Newtek. 

 

	 	(d)	 Notwithstanding the foregoing or anything else in this Agreement, Newtek shall be free to dispose of any asset provided that doing so (i) does not
involve the disposition of all or a 

  
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substantial part of its assets, except for fair consideration that is retained by Newtek or (ii) would result in a Material Adverse Effect. 

12.3 Lines of Business. Newtek will not engage in any business other than (i) the business in which it is engaged on the date hereof and any
business reasonably similar, complimentary, ancillary or related thereto or (ii) other lines of business that would not result in a Material Adverse Effect. 
 12.4 Accounting Changes. Newtek will not make or permit, any change in (a) accounting policies or reporting practices except as required or permitted by GAAP or (b) its fiscal year.

 12.5 Deposit Collateral. Newtek hereby grants to the Agent and any Agent Affiliate a continuing lien and security interest in any and
all deposits or other sums at any time credited by or due from the Agent or any Agent Affiliate to Newtek and any cash, securities, instruments or other property of Newtek in the possession of the Agent or any Agent Affiliate, whether for
safekeeping or otherwise, or in transit to or from the Agent or any Agent Affiliate (regardless of the reason the Agent or Agent Affiliate had received the same or whether the Agent or Agent Affiliate has conditionally released the same) as security
for the full and punctual payment and performance of all of the liabilities and obligations of the Loan Parties to the Agent or any Agent Affiliate and such deposits and other sums may be applied or set off against such liabilities and obligations
of the Loan Parties to the Agent or any Agent Affiliate. 
 (Remainder of Page Intentionally Left Blank) 

  
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 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed on
their behalf as of the date set forth in the first paragraph hereof. 
  

									
	BORROWER:	 		 		 	
				
	CDS BUSINESS SERVICES, INC.,	 		 		 	Witness
					
	By:	 	 /s/ David Leone
	 		 		 	 /s/ Patrick Gesuele

	Name:	 	David Leone	 		 		 	
	Title:	 	President	 		 		 	
				
	Acknowledged and Agreed to:	 		 		 	
				
	GUARANTOR	 		 		 	
				
	NEWTEK BUSINESS SERVICES, INC.,	 		 		 	Witness
					
	By:	 	 /s/ Barry Sloane
	 		 		 	 /s/ Jessica McCarthy

	Name:	 	Barry Sloane	 		 		 	
	Title:	 	Chief Executive Officer	 		 		 	
				
	Accepted:	 		 		 	
		
	ADMINISTRATIVE AGENT, COLLATERAL AGENT	 	
	AND LENDER:	 		 		 	
			
	STERLING NATIONAL BANK,	 		 	Lending Amount: $10,000,000
	as Agent and a Lender	 		 		 	
					
	By:	 	 /s/ Joseph Costanza
	 		 		 	
	Name:	 	Joseph Costanza	 		 		 	
	Title:	 	Senior Vice President	 		 		 	

 Signature Page to Loan and Security Agreement 

 EXHIBIT A 
 FORM OF BORROWING BASE CERTIFICATE 

Date:                    

 To: Sterling National Bank (the “Agent”) 

 

	Re:	Revolving Loans evidenced by that certain Loan and Security Agreement, dated as of             
    , 20     (the “Loan Agreement”), by                     
(“Borrower”) in favor of the Agent in the face amount of $            (the “Revolving Loans”). 

Computation of Borrowing Base 
 CDS Business Services, Inc. (“Borrower”): 
  

							
	1	  	Gross Accounts Receivable (Customer Obligations)	  		  	
		  	less: Credits/Returns	  		  	
		  	less: Retail Accounts	  		  	
	2	  	Net Accounts Receivable	  		  	
		  	Less: Over 90 Days (commercial)	  		  	
		  	Concentrations	  		  	
		  	Credits over 90	  		  	
		  	Disputes	  		  	
		  	Related Entity	  		  	
		  	Bill and Hold	  		  	
		  	Unsatisfactory Credit	  		  	
		  	Cross Aging	  		  	
		  	Foreign Accounts	  		  	
	3	  	Total Ineligible	  		  	
	4	  	Net Eligible A/R Collateral (Customer Obligations) - (2)-(3)	  		  	
	5	  	Borrowers Net Investment Balance (Per Schedule III)	  		  	
	6	  	Approved Advance Percentage	  		  	
	7	  	Approved Advance Percentage multiplied by Net Investment (Eligible Client Advances)-See Schedule III	  		  	
	8	  	Cash Collateral Pledged by Parent	  		  	
	9	  	Maximum Amount of Revolving Loans [including LC Obligations]	  		  	
		  	Borrowing Base of Borrower equals the lesser of (8) and (9)	  		  	
	10	  	Outstanding Amount of Revolving Loans [plus LC Obligations]	  		  	
	11	  	Net Amount Available (Due) = (x) lesser of (8) or (9) minus (y) (10)	  		  	

 Pursuant to the Loan Agreement, Agent has agreed to make the Revolving Loans on the conditions set forth in
the Loan Agreement including, without limitation, that the undersigned execute and deliver to the Agent this Certificate from time to time. Terms used in this Certificate shall have the same meaning as ascribed thereto in the Loan Agreement. For
purposes of inducing Sterling National Bank to make Revolving Loans pursuant to the terms of the Loan Agreement, the undersigned hereby certifies that the foregoing statement is true and correct and in accordance with the books and records of
Borrower and such Collateral is available as acceptable Collateral for Revolving Loans in accordance with the representations and warranties set forth in the Loan Agreement and as of the date hereof no Event of Default, or event which after notice
or lapse of time or both would be an Event of Default under the Loan Agreement has occurred. The outstanding Maximum Facility Amount reflects our indebtedness under the Loan Agreement subject to changes by Sterling National Bank. 

CDS BUSINESS SERVICES, INC. 
  

											
	 By:
	 	  
	 	  
	  	,	  	  
	  	

 Annex 1 
 Definitions 
 The following terms are defined in the corresponding
sections: 
  

			
	 Defined Term
	 	 Section

	Affected Lender	 	7.7
	Agreement	 	Preamble
	Amendments and Waivers	 	8.9
	Authorized Person	 	1.8
	Blocked Account	 	4.18
	Borrower	 	Preamble
	Borrowing Base	 	Annex 2
	Agent	 	Preamble
	Collateral Management Fee	 	Annex 2
	Deposit Collateral	 	8.3
	Event of Default	 	6.1
	Executive Order	 	8.22
	Financial Statements	 	3.12
	Foreign Asset Control Regulations	 	8.22
	Guarantor(s)	 	Annex 2
	Lenders	 	Preamble
	Lien Law	 	4.14
	Loans	 	1.1
	Loan Documents	 	1.1
	Lockbox	 	4.18
	Maturity Date	 	Annex 2
	Maximum Facility Amount	 	Annex 2
	Maximum Lawful Rate	 	1.3(d)
	Maximum LC Obligation	 	Annex 2

			
	Other Taxes	 	1.14(c)
	Overadvance	 	1.7
	Participating Lender	 	1.13(b)
	Patriot Act	 	8.21
	Register	 	1.2
	Revolving Loan and Revolving Loans	 	1.1
	Revolving Loan Account	 	1.2
	Taxes	 	1.14(a)
	Trading with the Enemy Act	 	8.22

 Defined Terms. As used in
this Agreement, the following terms have the following meanings: 
 “Account Debtor” is used as defined in the
Code, including any Person required to make payment with respect to a Customer Obligation or a Client Advance. 

“Account(s) Receivable or Account” shall mean all the Borrower’s accounts, accounts receivable, instruments,
documents, chattel paper, payment intangibles and all other debts, obligations and liabilities in whatever form owing to the Borrower from any Person for goods sold by it or for services rendered by it, or however otherwise established or created,
all supporting obligations with respect thereto, all right, title and interest of the Borrower in the goods or services which gave rise thereto, including rights to reclamation and stoppage in transit and all rights of any unpaid seller of goods or
services and including, without limitation, all Customer Obligations, Client Advances, Purchased Accounts, Repurchased Accounts and other obligations and indebtedness, direct, contingent or otherwise, owing to the Borrower pursuant to a factoring
agreement or any other financing agreement; whether any of the foregoing be now existing or hereafter arising, now or hereafter received by or owing or belonging to the Borrower. 

“Affiliate” shall mean with respect to any Person, (a) any Person which, directly or indirectly through one or more
intermediaries controls, or is controlled by, or is under common control with, such Person, or (b) any Person who is a director or officer (i) of such Person, (ii) of any subsidiary of such Person, or (iii) any Person described
in clause (a) above. For purposes of this definition, control of a Person shall mean the power, direct or indirect, (ix) to vote 10% or more of the Stock or other form of ownership interest having ordinary voting power for the election of
directors (or the comparable equivalent) of such Person, or (y) to director or cause the direction of the management and policies of such Person whether by contract or otherwise. Control may be by ownership, contract or otherwise. 

“Agent Indemnitees” shall mean the Agent and its Affiliates and all of Agent’s and each of its Affiliates’
present and future officers, directors, agents, employees and attorneys 
 “Agricultural Lien Statute” shall
mean, collectively, each statute, law or regulation (or other mandatory provision of state or local law) that could either (a) create or give rise to an agricultural lien in or against any portion of the products purchased, stored or otherwise
handled by any Person from whom the Borrower purchases inventory (or by any other Person from whom such first Person purchases or otherwise receives goods in the ordinary course of business), or (b) create a Lien against, or impose a trust
upon, some portion of the Borrower’s inventory (and/or the accounts derived therefrom) for the benefit of unpaid agricultural producers, any broker acting on behalf of an agricultural producer, any cooperative whose members consist of
agricultural producers or any other Person that purchases goods from an agricultural producer in the ordinary course of business. 

 “Agent Affiliate” shall mean any Affiliate of the Agent or the Agent,
including, without limitation, or any of its banking or lending affiliates, or any bank acting as a participant under any loan arrangement between the Agent and any Loan Party, or any third party acting on the Agent’s behalf. 

“Agent Professionals” shall mean attorneys, accountants, appraisers, business valuation experts, environmental engineers
or consultants, turnaround consultants and other professionals or experts retained by Agent or any Agent Affiliate. 

“Approved Fund” shall mean any Person (other than a natural person) that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages the Lender. 
 “Assignment and Acceptance” shall mean an assignment and acceptance
entered into by a Lender and an assignee and accepted by the Agent. 
 “Borrowing Base Certificate” shall mean
the Borrowing Base Certificate in the form attached hereto as Exhibit A, delivered in accordance with the terms and conditions of this Agreement. 
 “Business Day” shall mean any day of the year that is not a Saturday, Sunday or a day on which banks are required or authorized by law to close in New York City. 

“Capital Lease Obligations” of any Person shall mean the obligations of such Person to pay rent or other amounts under
any lease of (or other arrangement conveying the right to use) Property, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP (as in effect on the date hereof), and the
amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP (as in effect on the date hereof). 
 “Cash Collateral” shall mean cash, and any interest or other income earned thereon, that is deposited with the Agent in accordance with the Agreement to Cash Collateralize any LC
Obligations. 
 “Cash Collateral Account” shall mean a demand deposit, money market or other account
established by the Borrower at the Agent, which account shall be subject to the Agent’s Liens for the benefit of the Lenders. 
 “Cash Collateralize” shall mean, with respect to LC Obligations arising from Letters of Credit outstanding on any date, the deposit with the Agent of immediately available funds into the
Cash Collateral Account in an amount equal to 110% of the sum of the aggregate Undrawn Amounts of such Letters of Credit, plus all related fees and other amounts due or to become due in connection with such LC Obligations. 

“Change in Control” shall mean (a) any sale, conveyance, assignment or other transfer, directly or indirectly, of
any ownership interest in Borrower or the sale of more than fifty percent (50%) of the assets of Borrower or (b) that either Barry Sloane or Peter Downs ceases to be involved in the day-to-day operations of Newtek performing functions
substantially similar to the functions performed on the date hereof, and a successor thereto acceptable to the Agent, has not commenced such functions within 120 days thereof. 
 “Client” means a Person that has entered into Factoring Documents with the Borrower. 
 “Client Advances” shall mean the “Net Investment” as calculated pursuant to Schedule III to the Borrowing Base Certificate and approved by the Agent. 

“Client Fees” All fees now or hereafter payable by a Client to the Borrower pursuant to Factoring Documents. 

 “Closing Date” shall mean the date upon or after the execution of this
Agreement on which all of the conditions precedent to the making of the initial Credit Extension shall have been satisfied or waived. 
 “Code” shall mean the Uniform Commercial Code of any applicable jurisdiction and, if the applicable jurisdiction shall not have any Uniform Commercial Code, the Uniform Commercial Code as
in effect in the State of New York; provided that, if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of a security interest in any Collateral or the availability of any remedy under the Loan
Documents is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “Uniform Commercial Code” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be. 
 “Collateral” shall mean all right, title and interest of the Borrower in and to each of the following items, whether now owned or existing or hereafter created, acquired or arising, and
wherever located from time to time: 
  

	 	(i)	accounts; 

  

	 	(ii)	chattel paper; 

  

	 	(iii)	goods; 

  

	 	(iv)	inventory; 

  

	 	(v)	equipment; 

  

	 	(vi)	fixtures; 

  

	 	(vii)	farm products; 

  

	 	(viii)	instruments; 

  

	 	(ix)	investment property; 

  

	 	(x)	documents; 

  

	 	(xi)	commercial tort claims; 

  

	 	(xii)	deposit accounts and money; 

  

	 	(xiii)	letter-of-credit rights; 

  

	 	(xiv)	general intangibles; 

  

	 	(xv)	supporting obligations; 

  

	 	(xvi)	vehicles; 

  

	 	(xvii)	real property; 

  

	 	(xviii)	to the extent not listed above, all other personal property and real property; 

 

	 	(xix)	health-care insurance receivables; 

  

	 	(xx)	money; 

  

	 	(xxi)	Client Fees; and 

  

	 	(xxii)	all proceeds and products of the foregoing. 

 “Contractual Obligation” shall mean, with respect to any Person, any provision of any security issued by such Person or of any document or undertaking (other than a Loan Document) to
which such Person is a party or by which it or any of its property is bound or to which any of its property is subject. 

“Copyrights” shall mean all of the following now owned or hereafter acquired by the Borrower: (i) all
copyright rights in any work subject to the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise, and (ii) all registrations and applications for registration of any such copyright in
the United States or any other country, including registrations, recordings, supplemental registrations and pending applications for registration in the United States Copyright Office. 

“Credit Extension” shall mean providing any financial accommodation hereunder, including he making of a Loan or the
issuance of a Letter of Credit or bankers’ acceptance. 
 “Customer Obligations” shall mean the
obligations of an Account Debtor to make payment to the Client or the Borrower with respect to any Account. 

 “Default” shall mean any Event of Default and any event that, with the
passing of time or the giving of notice or both, would become an Event of Default. 
 “Defaulting Lender” shall
mean any Lender (a) that for any reason fails or refuses to (i) fund its Pro Rata share of any Loan or LC Obligation in violation of this Agreement or (ii) make any other payment of any nature to Agent under any applicable term hereof
or the other Loan Documents, (b) against which any bankruptcy, insolvency, reorganization, debt arrangement, dissolution, liquidation or similar proceeding under the laws of any jurisdiction shall have occurred and be continuing, (c) that
has notified the Borrower, the Agent, or any other Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its
funding obligations under this Agreement or any other agreement in which it commits or is obligated to extend credit or (d) that has become or is insolvent, as reasonably determined by the Agent in consultation with the Borrower. 

“Dilution” shall mean, as of any date of determination, a percentage, based upon the prior twelve (12) months,
which is the result of dividing (a) actual bad debt write-downs by (b) the Borrower’s actual amount of Customer Obligations purchased by Borrower during such period (excluding extraordinary items) plus the amount of clause (a).

 “Document” means a document of title, as defined in Section 1-201 of the Code. 

“Dollars” and the sign “$” each mean the lawful money of the United States of America. 

“Domestic Subsidiary” shall mean any Subsidiary that is not a “controlled foreign corporation” within the
meaning of Section 957 of the Tax Code. 
 “Eligible Account” shall mean an Eligible Client Advance or
Eligible Customer Obligation. owing to the Borrower which is acceptable to the Agent in its sole discretion for lending purposes. Without limiting the Agent’s discretion, the Agent shall, in general, consider an Account to be an Eligible
Account if it is an Eligible Client Advance or Eligible Customer Obligation and meets, and so long as it continues to meet, the following requirements: 
  

	 	(a)	it is genuine and in all respects is what it purports to be; 

  

	 	(b)	it is owned by the Borrower, the Borrower has paid the full agreed acquisition price therefor, if any, the Borrower has the right to subject it to a security interest
in favor of the Agent or assign it to the Agent and it is subject to a first priority, perfected security interest in favor of the Agent and to no other claim, lien, security interest or encumbrance whatsoever, other than Permitted Liens;

  

	 	(c)	it was acquired by the Borrower in the ordinary course of business pursuant to the Factoring Documents; 

 

	 	(d)	it is evidenced by an invoice rendered to the Account Debtor thereunder, is due and payable within the number of days set forth in Section 7(a) of Annex 2
and does not remain unpaid past the due date thereof for more than for the number of days set forth in Section 7(b) of Annex 2; provided, however, that if more than the percentage specified in set forth in Section 7(c) of the
aggregate dollar amount of invoices owing by a particular Account Debtor remain unpaid more than the earlier of (A) the number of days set forth in Section 7(b) of Annex 2 past the respective due dates thereof or (B) the number
of days set forth in Section 7(a) of Annex 2 after the respective invoice dates thereof, then all Accounts owing by that Account Debtor shall be deemed ineligible; 

 

	 	(e)	 it is valid, legally enforceable and unconditional obligation of the Account Debtor thereunder, and is not subject to setoff, counterclaim, credit,
allowance or adjustment by 

	 	 
such Account Debtor, or to any claim by such Account Debtor denying liability thereunder in whole or in part; 

 

	 	(f)	it is not an Account with respect to which the Account Debtor is the United States of America or any state or local government, or any department, agency or
instrumentality thereof, unless the Borrower assigns its right to payment of such Account to the Agent pursuant to, and in full compliance with, the Assignment of Claims Act of 1940, as amended, or any comparable state or local law, as applicable;

  

	 	(g)	it is not an Account with respect to which the Account Debtor is located in a state which requires the Borrower, as a precondition to commencing or maintaining an
action in the courts of that state, either to (i) receive a certificate of authority to do business and be in good standing in such state; or (ii) file a notice of business activities report or similar report with such state’s taxing
authority, unless (x) the Borrower has taken one of the actions described in clauses (i) or (ii); (y) the failure to take one of the actions described in either clause (i) or (ii) may be cured retroactively by the Borrower
at its election; or (z) the Borrower has proven, to the Agent’s satisfaction, that it is exempt from any such requirements under any such state’s laws; 

 

	 	(h)	the Account Debtor is located within the United States of America; 

  

	 	(i)	it is not an Account with respect to which the Account Debtor’s obligation to pay is subject to any repurchase obligation or return right, as with sales made on a
bill-and-hold, guaranteed sale, sale on approval, sale or return or consignment basis; and 

  

	 	(j)	it is not an Account (i) with respect to which any representation or warranty contained in this Agreement is untrue; or (ii) which violates any of the
covenants of the Borrower contained in this Agreement. 

 “Eligible Client Advances” shall mean a
Client Advance owing to the Borrower which is acceptable to the Agent in its sole discretion for lending purposes. Without limiting the Agent’s discretion, the Agent shall, in general, consider a Client Advance to be an Eligible Client Advance
if it meets, and so long as it continues to meet, the following requirements: 
  

	 	(a)	the Client Advance is not made to or owed by a director, officer, employee or agent of the Borrower, or a Subsidiary or Affiliate of the Borrower;

  

	 	(b)	the Client is a Person other than a natural person or individual; 

  

	 	(c)	no portion of such Client Advance is in default under the terms of the relevant Factoring Documents; 

 

	 	(d)	the Accounts or other property securing such Client Advance are not subject to litigation and the Client does not dispute the amount of the Client Advance owing to the
Borrower; 

  

	 	(e)	the Client Advance is not subject to the Lien of any Person (other than the Agent); 

 

	 	(f)	the Borrower has not sold a participation in such Client Advance to any Person; 

 

	 	(g)	the Client or any other Person obligated to make payment, or to guarantee the payment, of the Client Advance is not subject to a bankruptcy or insolvency proceeding;

  

	 	(h)	the Client Advance is not secured solely by real estate; 

	 	(i)	it is not a Client Advance which is owing by a Client to the extent that the aggregate amount of Client Advances owing from such Client and its Affiliates to the
Borrower exceeds 25% of the aggregate amount of Eligible Client Advances of the Borrower; 

  

	 	(j)	the Client Advance complies with all Requirements of Law including, without limitation, any Lending Law; 

 

	 	(k)	it is the portion of a Client Advance which is fully secured; and 

  

	 	(l)	it is the portion of such Client Advance which is not in default under the terms of the relevant Factoring Document. 

“Eligible Customer Obligations” shall mean a Customer Obligation owing to the Borrower which is acceptable to the Agent
in its sole discretion for lending purposes. Without limiting the Agent’s discretion, the Agent shall, in general, consider a Customer Obligation to be an Eligible Customer Obligation if it meets, and so long as it continues to meet, the
following requirements: 
  

	 	(a)	it arises from (i) the performance of services by the Client, in the ordinary course of its business, and such services have been fully performed and acknowledged
and accepted by the Account Debtor thereunder; or (ii) the sale or lease of goods by the Client, in the ordinary course of its business, and such goods have been delivered and accepted by the Account Debtor, and (w) such goods have been
completed in accordance with the Account Debtor’s specifications (if any) and delivered to the Account Debtor, (x) such Account Debtor has not refused to accept, returned or offered to return, any of the goods which are the subject of such
Account, (y) with respect to any letter of credit advance, the Borrower has possession of, or the Borrower has delivered to the Agent (at the Agent’s request) shipping and delivery receipts evidencing delivery of such goods and
(z) neither the Account Debtor nor any other Person obligated under such Customer Obligation is subject to a bankruptcy or insolvency proceeding; 

  

	 	(b)	the Customer Obligation does not arise from a retail or consumer transaction; 

 

	 	(c)	no portion of the Customer Obligation is subject to a dispute by the Account Debtor or any other Person obligated to make payment thereof; 

 

	 	(d)	the Customer Obligation does not arise from contractually delinquent Accounts purchased at a discount by the Borrower; 

 

	 	(e)	the Customer Obligation complies with all Requirements of Law including, without limitation, any Lending Law 

 

	 	(f)	the Customer Obligation does not arise from a Repurchased Account; 

  

	 	(g)	the Customer Obligation does not arise with respect to the sale of goods on consignment, sale or return, sale on approval, bill and hold, or other terms by reason of
which the payment thereof may be conditional; 

  

	 	(h)	the Customer Obligation does not constitute a health-care insurance receivable; 

 

	 	(i)	 it is not (i) a Customer Obligation which is owing by Family Dollar Stores, Inc. or an Affiliate thereof to Always Home International, Inc., to
the extent that the aggregate amount of Eligible Customer Obligations owing from such Account Debtor and its Affiliates to such Client exceeds 60% of the aggregate amount of Eligible Customer Obligations of such Client or (ii) another Eligible
Customer Obligation which is owing by an Account Debtor of a Client with then-outstanding Accounts Receivable in excess of $250,000, to 

	 	 
the extent that the aggregate amount of Eligible Customer Obligations owing from such Account Debtor and its Affiliates to the Client exceeds 30% of the aggregate amount of Eligible Customer
Obligations of the Client (or, with respect to a specific Eligible Customer Obligation and specific Client, such higher percentage as the Agent may agree to in writing from time to time in its sole discretion); and 

 

	 	(j)	it is genuine and in all respects is what it purports to be; 

  

	 	(k)	it is owned by the Borrower, the Borrower has paid the full acquisition price therefore, if any, the Borrower has the right to subject it to a security interest in
favor of the Agent or assign it to the Agent and it is subject to a first priority perfected security interest in favor of the Agent and to no other claim, lien, security interest or encumbrance whatsoever, other than Permitted Liens;

  

	 	(l)	it was acquired by the Borrower in the ordinary course of business pursuant to the Factoring Documents; 

 

	 	(m)	it is evidenced by an invoice rendered to the Account Debtor thereunder, is due and payable within the number of days set forth in Section 7(a) of Annex 2
and does not remain unpaid past the due date thereof for more than for the number of days set forth in Section 7(b) of Annex 2; provided, however, that if more than the percentage specified in set forth in Section 7(c) of Annex
2 of the aggregate dollar amount of invoices owing by a particular Account Debtor remain unpaid more than the earlier of (A) the number of days set forth in Section 7(b) of Annex 2 past the respective due dates thereof or
(B) the number of days set forth in Section 7(a) of Annex 2 after the respective invoice dates thereof, then all Accounts owing by that Account Debtor shall be deemed ineligible; 

 

	 	(n)	it is valid, legally enforceable and unconditional obligation of the Account Debtor thereunder, and is not subject to setoff, counterclaim, credit, allowance or
adjustment by such Account Debtor, or to any claim by such Account Debtor denying liability thereunder in whole or in part; 

  

	 	(o)	it is not an Account with respect to which the Account Debtor is the United States of America or any state or local government, or any department, agency or
instrumentality thereof, unless the Borrower assigns its right to payment of such Account to the Agent pursuant to, and in full compliance with, the Assignment of Claims Act of 1940, as amended, or any comparable state or local law, as applicable;

  

	 	(p)	it is not an Account with respect to which the Account Debtor is located in a state which requires the Borrower, as a precondition to commencing or maintaining an
action in the courts of that state, either to (i) receive a certificate of authority to do business and be in good standing in such state; or (ii) file a notice of business activities report or similar report with such state’s taxing
authority, unless (x) the Borrower has taken one of the actions described in clauses (i) or (ii); (y) the failure to take one of the actions described in either clause (i) or (ii) may be cured retroactively by the Borrower
at its election; or (z) the Borrower has proven, to the Agent’s satisfaction, that it is exempt from any such requirements under any such state’s laws; 

 

	 	(q)	the Account Debtor is located within the United States of America; 

  

	 	(r)	it is not an Account with respect to which the Account Debtor’s obligation to pay is subject to any repurchase obligation or return right, as with sales made on a
bill-and-hold, guaranteed sale, sale on approval, sale or return or consignment basis; 

	 	(s)	it is not an Account (i) with respect to which any representation or warranty contained in this Agreement is untrue; or (ii) which violates any of the
covenants of the Borrower contained in this Agreement; and 

  

	 	(t)	it is not an Account with respect to which the prospect of payment or performance by the Account Debtor is or will be impaired, as determined by the Agent in its sole
discretion. 

 “Entity Guarantor(s)” shall mean all Guarantors which are corporations, limited
liability companies or other entities. 
 “Environmental Laws” shall mean all Requirements of Law and Permits
imposing liability or standards of conduct for or relating to the regulation and protection of human health, safety, the environment and natural resources, including CERCLA, the SWDA, the Hazardous Materials Transportation Act (49 U.S.C.
§§ 5101 et seq.), the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. §§ 136 et seq.), the Toxic Substances Control Act (15 U.S.C. §§ 2601 et seq.), the Clean Air Act (42 U.S.C. §§ 7401 et seq.),
the Federal Water Pollution Control Act (33 U.S.C. §§ 1251 et seq.), the Occupational Safety and Health Act (29 U.S.C. §§ 651 et seq.), the Safe Drinking Water Act (42 U.S.C. §§ 300(f) et seq.), all regulations
promulgated under any of the foregoing, all analogous Requirements of Law and Permits and any environmental transfer of ownership notification or approval statutes, including the Industrial Site Recovery Act (N.J. Stat. Ann.
§§ 13:1K-6 et seq.). 
 “Environmental Liabilities” shall mean all liabilities (including costs
of Remedial Actions, natural resource damages and costs, fines, penalties, indemnities and expenses of investigation and feasibility studies) that may be imposed on, incurred by or asserted against the Borrower or Newtek as a result of, or related
to, any claim, suit, action, investigation, proceeding or demand by any Person, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law or otherwise, arising under any Environmental Law
or in connection with any environmental, health or safety condition or with any Release and resulting from the ownership, lease, sublease or other operation or occupation of property by any Group Member, whether on, prior to or after the date
hereof. 
 “ERISA” shall mean the United States Employee Retirement Income Security Act of 1974, as amended.

 “ERISA Affiliate” shall mean, collectively, Borrower, Newtek and any Person under common control, or treated
as a single employer, with Borrower or Newtek, within the meaning of Section 414(b), (c), (m) or (o) of the Tax Code. 
 “ERISA Event” shall mean any of the following: (a) a reportable event described in Section 4043(b) of ERISA (or, unless the 30-day notice requirement has been duly waived under
the applicable regulations, Section 4043(c) of ERISA) with respect to a Title IV Plan, (b) the withdrawal of any ERISA Affiliate from a Title IV Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial
employer, as defined in Section 4001(a)(2) of ERISA, (c) the complete or partial withdrawal of any ERISA Affiliate from any Multiemployer Plan, (d) with respect to any Multiemployer Plan, the filing of a notice of reorganization,
insolvency or termination (or treatment of a plan amendment as termination) under Section 4041A of ERISA, (e) the filing of a notice of intent to terminate a Title IV Plan (or treatment of a plan amendment as termination) under
Section 4041 of ERISA, (f) the institution of proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC, (g) the failure to make any required contribution to any Title IV Plan or Multiemployer Plan when due,
(h) the imposition of a lien under Section 412 of the Tax Code or Section 302 or 4068 of ERISA on any property (or rights to property, whether real or personal) of any ERISA Affiliate, (i) the failure of a Plan or any trust
thereunder intended to qualify for tax exempt status under Section 401 or 501 of the Tax Code or other Requirements of Law to qualify thereunder and (j) any other event or condition that might reasonably be expected to constitute grounds
under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or for the imposition of any liability upon any ERISA Affiliate under Title IV of ERISA other than for
PBGC premiums due but not delinquent. 

 “Factoring Documents” shall mean (i) an accounts receivable purchase
agreement or similar agreement between a Client and the Borrower pursuant to which the Borrower purchases Accounts from, and/or makes Client Advances to, such Client and (ii) all material documents in connection therewith, in each case without
material deviation to the respective form provided to the Agent prior to the Closing Date, or changed as permitted by this Agreement, or otherwise approved by Agent in writing. 

“Food Security Act” shall mean 7 U.S.C. Section 1631, and any successor statute thereto, together with each
existing or future state statute or regulation establishing a “central filing system” (as defined in 7 U.S.C. Section 1631) that has been certified by the Secretary of the United States Department of Agriculture. 

“Full Payment” shall mean, (a) with respect to any of the Obligations, the full, final and indefeasible payment in
full, in cash and in United States dollars, of such Obligations, including all interest, fees and other charges payable in connection therewith under any of the Loan Documents, whether such interest, fees or other charges accrue or are incurred
prior to or during the pendency of an insolvency or similar proceeding and whether or not any of the same are allowed or recoverable in any bankruptcy case pursuant to Section 506 of the United States Bankruptcy Code or otherwise, (b) with
respect to any LC Obligations represented by undrawn Letters of Credit, the depositing of cash with the Agent, as security for the payment of such Obligations, not to exceed 105% of the aggregate undrawn amount of such Letters of Credit and
(c) with respect to any Obligations that are contingent in nature (other than Obligations consisting of LC Obligations), such as a right of the Agent or a Lender to indemnification by any Loan Party, the depositing of cash with the Agent in an
amount equal to 100% of such Obligations or, if such Obligations are unliquidated in amount and represent a claim which has been overtly asserted (or is reasonably probable of assertion) against the Agent or a Lender and for which an indemnity has
been provided by the Borrower in any of the Loan Documents, in an amount that is equal to such claim or Agent’s good faith estimate of such claim. 
 “GAAP” shall mean generally accepted accounting principles in the United States of America, as in effect from time to time, set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants, in the statements and pronouncements of the Financial Accounting Standards Board and in such other statements by such other entity as may be in general use by significant
segments of the accounting profession that are applicable to the circumstances as of the date of determination. 

“Governmental Authority” shall mean any nation, sovereign or government, any state or other political subdivision
thereof, any agency, authority or instrumentality thereof and any entity or authority exercising executive, legislative, taxing, judicial, regulatory or administrative functions of or pertaining to government, including any central bank, stock
exchange, regulatory body, arbitrator, public sector entity, supra-national entity (including the European Union and the European Central Bank) and any self-regulatory organization (including the National Association of Insurance Commissioners).

 “Guarantor(s)” shall mean those Persons described as such in Section 8 of Annex 2. 

“Guaranty” shall mean any guaranty executed by a Guarantor in favor of the Agent for the benefit of the Lenders (if more
than one, the “Guaranties”). 
 “Hazardous Material” shall mean any substance, material or waste that
is classified, regulated or otherwise characterized under any Environmental Law as hazardous, toxic, a contaminant or a pollutant or by other words of similar meaning or regulatory effect, including petroleum or any fraction thereof, asbestos,
polychlorinated biphenyls and radioactive substances. 
 “Hedging Agreement” shall mean any interest rate
protection agreement, foreign currency exchange agreement, commodity price protection agreement or other interest or currency exchange rate or commodity price hedging arrangement and other hedging agreements (including, without limitation, all
“swap agreements” as defined in 11 U.S.C. § 101). 

 “Indebtedness” shall mean (A) all indebtedness for borrowed money or
for the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), and all obligations under leases which are or should be, under GAAP, recorded as capital leases, in respect of
which a Person is directly or contingently liable as borrower, guarantor, endorser or otherwise, or in respect of which a Person otherwise assures a creditor against loss; (B) all obligations for borrowed money or for the deferred purchase
price of property or services secured by (or for which the holder has an existing right, contingent or otherwise, to be secured by) any Lien upon property (including without limitation accounts receivable and contract rights) owned by a Person,
whether or not such Person has assumed or become liable for the payment thereof; (C) indebtedness evidenced by bonds, debentures, notes or other similar instruments; (D) obligations and liabilities directly or indirectly guaranteed by such
Person; (E) obligations or liabilities created or arising under any conditional sales contract or other title retention agreement with respect to property used and/or acquired by such Person; (F) all obligations of such Person in respect
of letters of credit or bankers’ acceptances; (G) all obligations, contingent or otherwise of such Person as an account party or applicant in respect of letters of credit; and (H) all other liabilities and obligations which would be
classified in accordance with GAAP as indebtedness on a balance sheet or to which reference should be made in footnotes thereto. The amount of any guarantee shall be deemed to be the lower of (a) an amount equal to the stated or determinable
amount of the primary obligation in respect of which such guarantee is made and (b) the maximum amount for which the Person giving such guarantee may be liable pursuant to the terms of the agreement embodying such guarantee unless such primary
obligation and the maximum amount for which such Person may be liable are not stated or determinable, in which case the amount of such guarantee shall be such Person’s maximum reasonably anticipated liability in respect thereof as determined by
such Person in good faith. 
 “Indemnitees” shall mean the Agent Indemnitees and the Lender Indemnitees.

 “LC Application” shall mean an application by the Borrower to the Agent, pursuant to a form approved by the
Agent, for the issuance of a Letter of Credit, which application is submitted to the Agent at least five (5) days prior to the requested issuance of such Letter of Credit. 

“LC Conditions” shall mean the following conditions, the satisfaction of each of which is required before the Agent
shall be obligated to issue a Letter of Credit: (i) each of the conditions set forth in Section 1.12 of this Agreement has been and continues to be satisfied, including the absence of any Default or Event of Default;
(ii) after giving effect to the issuance of the requested Letter of Credit and all other unissued Letters of Credit for which an LC Application has been submitted to the Agent, the LC Obligations would not exceed the (x) the Maximum
LC Obligation and (y) the difference of (A) minus (B), where (A) is the Maximum Facility Amount and (B) is the sum of the principal amount of Revolving Loans plus the face amount of Letters of Credit then outstanding; and
(iii) such Letter of Credit has an expiration date that is no more than one hundred eighty (180) days from the date of issuance and in the event such expiration date is after the Maturity Date, such Letter of Credit shall be Cash
Collateralized during the period from the date of its issuance until the date it expires or is terminated, unless otherwise agreed by the Agent in its discretion; (iv) the currency in which payment is to be made under the Letter of Credit is
Dollars; and (v) there is no Defaulting Lender at the time such Letter of Credit is to be issued or amended, unless arrangements satisfactory to the Agent shall have been made with respect to the undivided interest and participation of such
Defaulting Lender in and to such Letter of Credit and all other Letters of Credit then outstanding, which arrangements may include the Borrower’s posting of Cash Collateral in an amount equal to such Defaulting Lender’s interest and
participation therein on terms satisfactory to the Agent. 
 “LC Documents” shall mean any and all agreements,
instruments and documents (other than an LC Application) required by the Agent to be executed by the Borrower or any other Person and delivered to the Agent as a condition to the issuance of a Letter of Credit. 

“LC Facility” shall mean a sub-facility established pursuant to Section 1.13 of this Agreement and described
in Section 11 of Annex 2 and shall be considered utilization of the Maximum Facility Amount. 

 “LC Obligations” shall mean, on any date, an amount (in Dollars) equal to
the sum of (without duplication) (i) all amounts then due and payable by Borrower on such date by reason of any payment that is made by the Agent under a Letter of Credit and that has not been repaid by the Borrower to the Agent, plus
(ii) the Undrawn Amount of all Letters of Credit which are then outstanding or for which an LC Application has been delivered to and accepted by the Agent and (iii) all fees and other amounts due or to become due in respect of Letters of
Credit outstanding on such date. 
 “LC Support” shall mean a guaranty, Cash Collateral or other support
agreement in favor of the Agent, acceptable to the Agent in its sole and absolute discretion, pursuant to which the payment or performance by Borrower of its obligations under an LC Application, including the obligation to reimburse the Agent for
any payment made by the Agent under such Letter of Credit, is guaranteed or otherwise assured to the Agent’s sole satisfaction. 
 “Letter of Credit” shall mean commercial or standby letters of credit issued by the Agent for the account of, or to support an obligation of, the Borrower in accordance with terms and
provisions of the LC Documents. 
 “Lender Indemnitees” shall mean the Lenders, the Lenders’ Affiliates,
and all of their respective present and future officers, directors, employees, agents and attorneys. 
 “Lending
Amount” shall mean, at any date for any Lender, the obligation of such Lender to make Revolving Loans and to purchase participations in LC Obligations pursuant to the terms and conditions of this Agreement, which shall not exceed the
principal amount set forth opposite such Lender’s name under the heading “Lending Amount” on the signature pages of this Agreement or the principal amount set forth in the Assignment and Acceptance by which it became a Lender, as
modified from time to time pursuant to the terms of this Agreement or to give effect to any applicable Assignment and Acceptance. “Lending Amounts” means the aggregate principal amount of the Lending Amounts of all Lenders, the
maximum amount of which on any date shall be $10,000,000. 
 “Lending Laws” Any statute, law, regulation or
ordinance issued by any Governmental Authority which pertains to any present or future business conducted by the Borrower, including, but not limited to Regulation Z of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II,
federal and state usury statutes, the Fair Debt Collection Practices Act, the Florida Documentary Tax Stamp statute or any other federal, state of local law or regulation, as each shall be amended from time to time. 

“Lien” shall mean any lien (statutory or other), mortgage, pledge, hypothecation, assignment, security interest,
encumbrance, charge, claim, restriction on transfer or similar restriction or other security arrangement of any kind or nature whatsoever, including, without limitation, any conditional sale or other title retention agreement and any capital or
financing lease having substantially the same economic effect as any of the foregoing. 
 “Loan Documents”
shall mean this Agreement, the Notes (if any), any security agreements, pledge agreements or guaranties and any and all other documents, amendments or renewals executed and delivered in connection with any of the foregoing. 

“Loan Party” shall mean the Borrower and all Guarantors, including, without limitation, Newtek. 

“Loan Party Taxes” shall mean any and all current or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority, including, without limitation, income taxes, real and personal property taxes, assessments and charges and all franchise, income, unemployment, retirement benefits, withholding, sales, F.I.C.A. and
other taxes. 
 “Managing Person” shall mean with respect to any Person that is (i) a corporation, its
board of directors, (ii) a limited liability company, its board of control, managing member or members, (iii) a limited partnership, its general partner, (iv) a general partnership or a limited liability partnership, its managing

 
partner or executive committee or (v) any other Person, the managing body thereof or other Person analogous to the foregoing. 

“Material Adverse Effect” shall mean any act, omission, event or undertaking which, singly or together with one or more
other acts, omissions, events or undertakings, could reasonably be expected to have a materially adverse effect upon (1) the business, assets, properties, liabilities, condition (financial or otherwise), results of operations or business
prospects of the Borrower or Newtek or (2) the ability of any Loan Party to perform its obligations in a timely manner under this Agreement and the other agreements and instruments executed and delivered in connection herewith. 

“Maturity Date” is defined in Section 9 of Annex 2. 

“Multiemployer Plan” shall mean any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to
which the Borrower, Newtek or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions. 

“Newtek” means Newtek Business Services, Inc., a New York corporation. 

“Note” shall mean any promissory note evidencing a Loan. 

“Obligation(s)” shall mean, without limitation, (a) all loans, advances, indebtedness, bankers’ acceptances,
notes, reimbursement obligations, liabilities, rate swap transactions, basis swaps, forward rate transactions, commodity swaps, commodity options, equity or equity index swaps, equity or equity index options, bond options, interest rate options,
foreign exchange transactions, cap transactions, floor transactions, collar transactions, forward transactions, currency swap transactions, cross-currency rate swap transaction, currency options and amounts, liquidated or unliquidated, owing by any
Loan Party to the Agent, Sterling National Bank or any Agent Affiliate at any time, of each and every kind, nature and description, whether arising under this Agreement, any of the Loan Documents or otherwise, and whether secured or unsecured,
direct or indirect (that is, whether the same are due directly by Borrower to the Agent or any Agent Affiliate; or are due indirectly by Borrower to the Agent or any Agent Affiliate as endorser, guarantor or other surety, or as obligor of any
obligations due third persons which have been endorsed or assigned to the Agent or any Agent Affiliate, or otherwise), absolute or contingent, due or to become due, now existing or hereafter arising or contracted, including, without limitation,
payment when due of all amounts outstanding respecting any of the Loan Documents and (b) all loans, advances, indebtedness, bankers’ acceptances, notes, reimbursement obligations, liabilities, rate swap transactions, basis swaps, forward
rate transactions, commodity swaps, commodity options, equity or equity index swaps, equity or equity index options, bond options, interest rate options, foreign exchange transactions, cap transactions, floor transactions, collar transactions,
forward transactions, currency swap transactions, cross-currency rate swap transaction, currency options and amounts, liquidated or unliquidated, owing Borrower to any other Lender, of each and every kind, nature and description, arising under this
Agreement or any of the Loan Documents, and whether secured or unsecured, direct or indirect (that is, whether the same are due directly by Borrower the Lender; or are due indirectly by any Loan Party to the Lender as endorser, guarantor or other
surety, or as obligor of any obligations due third persons which have been endorsed or assigned to the Lender, or otherwise), absolute or contingent, due or to become due, now existing or hereafter arising or contracted. Said term shall also include
all interest and other charges chargeable to Borrower or due from Borrower to the Agent or any Agent Affiliate from time to time and all costs and expenses referred to in this Agreement. 

“Organizational Documents” shall mean as to any Person which is (i) a corporation, the certificate or articles of
incorporation and by-laws of such Person, (ii) a limited liability company, the articles of organization or certificate of formation and limited liability company agreement or similar agreement of such Person, (iii) a partnership, the
partnership agreement or similar agreement of such Person and, in the case of a limited partnership, the certificate of limited partnership, or (iv) any other form of entity or organization, the organizational documents analogous to the
foregoing. 

 “Patents” shall mean all of the following now owned or hereafter acquired
by the Borrower: (i) all letters patent of the United States or any other country, all registrations and recordings thereof, and all applications for letters patent of the United States or any other country, including registrations, recordings
and pending applications in the United States Patent and Trademark Office or any similar offices in any other country and (ii) all reissues, continuations, divisions, continuations-in-part, renewals or extensions thereof, and the inventions
disclosed or claimed therein, including the right to make, use or sell the inventions disclosed or claimed therein. 

“PBGC” shall mean the United States Pension Benefit Guaranty Corporation and any successor thereto. 

“Pension Plan” shall mean any “employee pension benefit plan” (as such term is defined in Section 3(2) of
ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by any Loan Party or any ERISA Affiliate or to which any Loan Party or any ERISA Affiliate contributes or has an obligation to contribute,
or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years. 

“Permit” shall mean, with respect to any Person, any permit, approval, authorization, license, registration,
certificate, concession, grant, franchise, variance or permission from, and any other Contractual Obligations with, any Governmental Authority, in each case whether or not having the force of law and applicable to or binding upon such Person or any
of its property or to which such Person or any of its property is subject. 
 “Permitted Investments” shall
mean: 
 (a) Eligible Client Advances; 
 (b) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent that such
obligations are backed by the full faith and credit of the United States of America), in each case measuring within one year from the date of acquisition thereof; 
 (c) investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from Standard &
Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., or any successor thereto, or from Moody’s Investors Service, Inc. or any successor thereto; 

(d) investments in certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of
acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, the Agent or any domestic office of any commercial bank organized under the laws of the United States of America or any State thereof
that has a combined capital and surplus and undivided profits of not less than $500,000,000; and 
 (e) fully collateralized
repurchase agreements with a term of not more than 30 days for securities described in clause (a) of this definition and entered into with a financial institution satisfying the criteria described in clause (c) of this definition.

 “Permitted Liens” shall mean (A) Liens securing the Obligations hereunder, (B) Liens for taxes not
yet due and payable, that remain payable without penalty or that are being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves or other appropriate provisions are maintained in
accordance with GAAP, (C) Liens arising under Agricultural Lien Statutes and similar statutes, rules or regulations, (D) Liens of warehousemen and bailees for customary storage charges and fees, (E) purchase-money Liens covering
solely equipment constituting capital assets owned or leased by the Borrower and the proceeds thereof and securing not more than $3,000 in 

 
purchase money Indebtedness, (F) Liens of a collecting bank on items in the course of collection arising under Section 4-208 of the Code, (G) pledges or cash deposits made in the
ordinary course of business (i) in connection with workers’ compensation, unemployment insurance or other types of social security benefits (other than any Lien imposed by ERISA), (ii) to secure the performance of bids, tenders,
leases (other than capital leases) sales or other trade contracts (other than for the repayment of borrowed money) or (iii) made in lieu of, or to secure the performance of, surety, customs, reclamation or performance bonds (in each case not
related to judgments or litigation), (H) judgment liens (other than for the payment of taxes, assessments or other governmental charges) securing judgments and other proceedings not constituting an Event of Default under
Section 6.1(k) or Section 6.1(p) and pledges or cash deposits made in lieu of, or to secure the performance of, judgment or appeal bonds in respect of such judgments and proceedings, (I) unexercised statutory or common
law bankers’ and brokers’ liens and (J) Liens of landlords and mortgagees of landlords (arising by statute on fixtures and movable tangible property located on the real property leased or subleased from such landlord for amounts not
yet due, that remain payable without penalty or that are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves or other appropriate provisions are maintained in accordance with GAAP, or
(k) liens that are subject to a Subordination Agreement. 
 “Plan” shall mean any “employee benefit
plan” (as such term is defined in Section 3(3) of ERISA) established by Borrower or Newtek or, with respect to any such plan that is subject to Section 412 of the Tax Code or Title IV of ERISA, any ERISA Affiliate. 

“Person” or “party” shall mean individuals, partnerships, corporations, limited liability companies and all
other entities. 
 “Pro Rata” shall mean, with respect to any Lender on any date, a percentage (expressed as a
decimal, rounded to the second decimal place) arrived at by dividing the amount of the total Lending Amounts of such Lender on such date by the aggregate amount of the Lending Amounts of all Lenders on such date (regardless of whether or not any of
such Lending Amounts have been terminated on or before such date). 
 “Property” shall mean all types of real,
personal, tangible, intangible or mixed property. 
 “Purchased Account” A Customer Obligation owing to a Client
which has been purchased by the Borrower and as to which the Borrower has a Lien and has assumed the credit risk pursuant to and subject to the terms of the relevant Factoring Documents. 

“Release” shall mean any release, threatened release, spill, emission, leaking, pumping, pouring, emitting, emptying,
escape, injection, deposit, disposal, discharge, dispersal, dumping, leaching or migration of Hazardous Material into or through the environment. 
 “Remedial Action” shall mean all actions required by applicable Environmental Laws to (a) clean up, remove, treat or in any other way address any Hazardous Material in the indoor or
outdoor environment, (b) prevent or minimize any Release so that a Hazardous Material does not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment or (c) perform pre-remedial studies
and investigations and post-remedial monitoring and care with respect to any Hazardous Material. 
 “Repurchased
Account” A Customer Obligation owing to a Client in which the Borrower has been granted a Lien pursuant to the relevant Factoring Agreement, but as to which the Client has repurchased such Customer Obligation or Account as provided for in
the relevant Factoring Documents. 
 “Required Lenders” shall mean, at any date of determination thereof,
Lenders (excluding any Defaulting Lender at such time) having Lending Amounts representing at least 50.1% of the aggregate Lending Amounts at such time (excluding the Lending Amounts of any Defaulting Lender at such time); provided, however, that if
all of the Lending Amounts have been terminated, the term “Required Lenders” 

 
shall mean Lenders (excluding any Defaulting Lender at such time) holding Loans representing at least 50.1% of the aggregate principal amount of Loans outstanding at such time (excluding Loans
held by any Defaulting Lender at such time); provided further, that at any date of determination on which there are no more than two Lenders, the term “Required Lenders” shall mean all Lenders on such date. 

“Requirements of Law” shall mean, with respect to any Person, collectively, the common law and all federal, state,
local, foreign, multinational or international laws, statutes, codes, treaties, standards, rules and regulations, guidelines, ordinances, orders, judgments, writs, injunctions, decrees (including administrative or judicial precedents or authorities)
and the interpretation or administration thereof by, and other determinations, directives, requirements or requests of, any Governmental Authority, in each case whether or not having the force of law and that are applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is subject. 
 “Restricted
Payment” shall mean, as to any Person, any dividend or other distribution by such Person (whether in cash, securities or other property) with respect to any shares of any class of equity securities of such Person, or any payment (whether in
cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such shares or any option, warrant or other right to acquire any
such shares. 
 “Solvent” shall mean, with respect to any Person on a particular date, that on such date
(a) the fair value of the property of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is
not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities
beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property
would constitute unreasonably small capital. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that would reasonably be
expected to become an actual or matured liability. 
 “Stock” shall mean all shares of capital stock (whether
denominated as common stock or preferred stock), equity interests, beneficial, partnership or membership interests, joint venture interests, participations or other ownership or profit interests in or equivalents (regardless of how designated) of or
in a Person (other than an individual), whether voting or non-voting. 
 “Subordination Agreement” shall mean a
subordination agreement satisfactory in form and substance to the Agent and executed by a subordinated creditor in favor of the Agent (if more than one, the “Subordination Agreements”). 

“Subsidiary” shall mean, with respect to any Person, any corporation, partnership, joint venture, limited liability
company, association or other entity, the management of which is, directly or indirectly, controlled by, or of which an aggregate of more than 50% of the outstanding Voting Stock is, at the time, owned or controlled directly or indirectly by, such
Person or one or more Subsidiaries of such Person. Unless otherwise indicated, references to a “Subsidiary” mean a Subsidiary of Borrower. 
 “Tax Code” shall mean the U.S. Internal Revenue Code of 1986, as amended. 
 “Title IV Plan” shall mean a Pension Plan or Plan. 

“Trademarks” shall mean all of the following now owned or hereafter acquired by the Borrower: (a) all trademarks,
service marks, trade names, corporate names, company names, business names, fictitious business names, trade styles, trade dress, logos, other source or business identifiers, designs and general intangibles of like nature, now existing or hereafter
adopted or acquired, all registrations and 

 
recordings thereof, and all registration and recording applications filed in connection therewith, including registrations and registration applications in the United States Patent and Trademark
Office, any State of the United States or any similar offices in any other country or any political subdivision thereof, and all extensions or renewals thereof, (b) all goodwill associated therewith or symbolized thereby and (c) all other
assets, rights and interests that uniquely reflect or embody such goodwill. 
 “Transactions” shall mean
(a) the execution, delivery and performance by each Loan Party of each Loan Document to which it is a party, (b) the making of the Credit Extensions and (c) the use of the proceeds of the Credit Extensions. 

“Undrawn Amount” shall mean on any date and with respect to a particular Letter of Credit, the total amount then
available to be drawn under such Letter of Credit in Dollars. 
 “Voting Stock” shall mean Stock of any Person
having ordinary power to vote in the Managing Persons or other controlling Persons, of such Person (irrespective of whether, at the time, Stock of any other class or classes of such entity shall have or might have voting power by reason of the
occurrence of any contingency). 
 “Wall Street Journal Prime Rate” shall mean the highest rate published from
time to time by the Wall Street Journal as the “prime rate,” or, in the event the Wall Street Journal ceases publication of the prime rate, the base, reference or other rate then designated by the Agent, in its sole and absolute
discretion, for general commercial loan reference purposes, it being understood that such rate is a reference rate, not necessarily the lowest, established from time to time, which serves as the basis upon which effective interest rates are
calculated for loans making reference thereto. 
 Accounting Terms and Principles and GAAP. All accounting determinations
required to be made pursuant hereto shall, unless expressly otherwise provided herein, be made in accordance with GAAP. No change in the accounting principles used in the preparation of any financial statement hereafter adopted by the Borrower shall
be given effect if such change would affect a calculation that measures compliance with any provision of this unless the Borrower and the Agent agree to modify such provisions to reflect such changes in GAAP and, unless such provisions are modified,
all financial statements, Agreement, certificates and similar documents provided hereunder shall be provided together with a reconciliation between the calculations and amounts set forth therein before and after giving effect to such change in GAAP.

 Certain References. Unless otherwise expressly indicated, references (i) in this Agreement to an Exhibit, Annex,
Schedule, Article, Section or clause refer to the appropriate Exhibit, Annex or Schedule to, or Article, Section or clause in, this Agreement and (ii) in any Loan Document, to (A) any agreement shall include, without limitation, all
exhibits, schedules, appendixes and annexes to such agreement and, unless not undertaken in accordance with the terms thereof, any modification to any term of such agreement, (B) any statute shall be to such statute as modified from time to
time and to any successor legislation thereto, in each case as in effect at the time any such reference is operative and (C) any time of day shall be a reference to New York time. Titles of articles, sections, clauses, exhibits, schedules and
annexes contained in any Loan Document are without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. Unless otherwise expressly indicated, the meaning of any term defined (including
by reference) in any Loan Document shall be equally applicable to both the singular and plural forms of such term. 
 Code
Terms All terms which are not defined herein but which are defined in the Code shall have the meanings given to them in the applicable Code. 
 Interpretation and Certain Terms. Except as set forth in any Loan Document, all accounting terms not specifically defined herein shall be construed in accordance with GAAP (except for the term
“property,” which shall be interpreted as broadly as possible, including, in any case, cash, securities, other assets, rights under Contractual Obligations and Permits and any right or interest in any property).

 
The terms “herein,” “hereof” and similar terms refer to this Agreement as a whole. In the computation of periods of time from a specified date to a later specified date in any
Loan Document, the terms “from” means “from and including” and the words “to” and “until” each mean “to but excluding” and the word “through” means “to and including.” In any
other case, the term “including” when used in any Loan Document means “including without limitation.” The term “documents” means all writings, however evidenced and whether in physical or electronic form, including all
documents, instruments, agreements, notices, demands, certificates, forms, financial statements, opinions and reports. The term “incur” means incur, create, make, issue, assume or otherwise become directly or indirectly liable in respect
of or responsible for, in each case whether directly or indirectly, and the terms “incurrence” and “incurred” and similar derivatives shall have correlative meanings. 

 ANNEX 2 
 SCHEDULE OF FACILITY INFORMATION 
  

	1.	Interest Rate (Section 1.3(a)) 

 In the case of all Obligations, including Revolving Loans, a rate per annum equal to the greater of (x) five percent (5%) or (y) the sum of the Wall Street Journal Prime Rate plus two
percent (2%). 
  

	2.	Inspections (Sections 2.6 and 4.2) 

 Frequency: Provided that no Event of Default has occurred, (i) field examinations and Collateral audits and analyses will not be conducted more than three (3) times in any twelve-month
period at the Borrower’s expense and (ii) additional field examinations and Collateral audits and analyses may be conducted at the Lenders’ expense. After the occurrence and during the continuance of an Event of Default, there shall
be no limit on the number of field examinations and Collateral audits and analyses that may be conducted at the Borrower’s expense. 
 Cost: $1,000 per day plus out-of-pocket expenses if such auditor is an employee of Agent. Actual costs plus out-of-pocket expenses if such auditor is retained by the Agent. 

 

	3.	Financial Statements (Section 3.12) 

 Consolidated balance sheet and statements of income, stockholders’ equity and cash flows of each of the Borrower and Newtek (i) as of and for the fiscal years ended December 31,
2007, December 31, 2008 and December 31, 2009, in each case audited with an unqualified opinion), reviewed by J.H. Cohn LLP, independent certified public accountants (the “Financial Statements”) and (ii) as of
and for the fiscal quarter ended September 30, 2010, certified by the chief financial officer of the Borrower. 
  

	4.	Operating and Deposit Accounts (Section 4.8) 

 If the Borrower shall fail to maintain with the Agent during any calendar quarter non-interest bearing deposits having net collected balances (including any cash collateral provided by Newtek to secure
the Guaranty and then-maintained with Agent), after charges to compensate Agent for services rendered to Borrower, equal to at least $200,000. Borrower shall pay to the Agent, for its own account, a fee equal to the amount of any daily deficit
multiplied by a rate per annum equal to the greater of (x) five percent (5%) and (y) the sum of the Wall Street Journal Prime Rate plus two percent (2%). 

 

	5.	Reserved 

  

	6.	Definition of Borrowing Base 

 “Borrowing Base” shall mean an amount not to exceed the following as shown on Agent’s records at any time and as reported by the Borrower prior to each request for a Revolving Loan
and in a Borrowing Base Certificate as required by this Agreement: 
  

	 	(a)	 Up to the lesser of (i) 85% of Eligible Client Advances or (ii) 85% of Eligible Customer Obligations, in each case (less maximum discounts,
credits and allowances which may be taken by or granted to Account debtors in connection therewith in the ordinary course of Borrower’s business) payable not more than 

	 	 
ninety (90) days from the date of invoice, and for which invoices have been issued and are payable; provided that such advance rate shall be reduced by one (1) percentage point for each
whole or partial percentage point by which Dilution (as determined by the Agent based on the results of the most recent twelve (12) month period for which the Agent has conducted a field audit of Borrower) exceeds five percent (5%), PLUS:

  

	 	(b)	Up to the lesser of (x) $750,000 and (y) 100% of the cash collateral posted by Newtek pursuant to the Guaranty and then-maintained with the Agent (and not
applied by the Agent for any purposes after the occurrence and during the continuance of a Default or an Event of Default), which, as of the Closing Date, shall be $750,000 (seven hundred fifty thousand dollars) MINUS 

 

	 	(c)	An amount equal to 100% of the LC Obligations at such time, if any, MINUS 

  

	 	(d)	such reserves as the Agent elects, in its sole discretion, to establish from time to time. 

 

	7.	Eligible Accounts 

  

	 	(a)	Maximum days to maturity re invoices: payment must be due no more than ninety (90) days after the date of the relevant invoice (see clause (m) of
“Eligible Customer Obligations”) 

  

	 	(b)	Maximum days past maturity re invoices: payment must be made no more than ninety (90) days after the date of the relevant invoice (see clause (m) of
“Eligible Customer Obligations”) 

  

	 	(c)	Maximum percentage of invoices with maturity longer than that set forth in (a) above and past due beyond the number of days set forth in (b) above, per
Account Debtor: fifty percent (50%) (see clause (m) of “Eligible Customer Obligations”) 

  

	8.	Guarantor(s) 

 Newtek
Business Services, Inc. 
  

	9.	Maturity Date: 

February 28, 2014. 
  

	10.	Maximum Facility Amount 

$7,500,000.00 (seven million, five hundred thousand dollars); provided that such amount shall be increased to $10,000,000.00 (ten million
dollars) from and after the time that the Borrower delivers to the Agent and each Lender the financial reports required pursuant to Section 13(a) of this Annex for the fiscal year ending December 31, 2010, in form and substance
satisfactory to the Agent in its sole discretion. 
  

	11.	Maximum LC Obligation 

 $0

	12.	Fees 

  

	 	(a)	Closing Fee. At the time of the execution and delivery of this Agreement, the Borrower shall pay to the Agent, for its own account, a closing fee equal to
$50,000.00 (fifty thousand dollars). Such closing fee shall be deemed fully earned upon execution of this Agreement by Borrower. Such fee shall be in addition to, and not in substitution for, all costs and expenses payable by Borrower under the Loan
Documents. 

  

	 	(b)	Unused Line Fee. The Borrower shall pay to the Agent, for the benefit of the Lenders, monthly in arrears, on the first day of each month, an unused line fee,
chargeable to the Borrower’s Revolving Loan Account, equal to 25 basis points (0.25%) per annum of the daily average amount by which the Maximum Facility Amount exceeds the outstanding principal balance of the Revolving Loans as determined by
Agent in sole discretion. 

  

	 	(c)	Letter of Credit Fee. Borrower shall pay to Agent (i) for the benefit of the Lenders, for Letters of Credit, the standard rate charged by Sterling National
Bank on the average amount of the LC Obligations, payable monthly, in arrears, on the first Business Day of the following month, (ii) for its own account, the standard fronting fee charged by Sterling National Bank on the average amount of the
LC Obligations, payable monthly, in arrears, on the first Business Day of the following month and (ii) for its own account, all normal and customary charges associated with the issuance, amending, negotiating, processing and administration of
Letters of Credit, on demand. 

  

	 	(d)	Collateral Management Fee. Upon execution hereof and on the first day of each calendar month thereafter, the Borrower shall pay the Agent, for its own account, a
fee (the “Collateral Management Fee”), chargeable to the Borrower’s Revolving Loan Account, of $350.00 (three hundred fifty dollars). The Collateral Management Fee shall be in addition to any other costs and expenses payable
under this Agreement. 

  

	 	(e)	Termination Fee. If the Borrower shall terminate this Agreement for any reason or the Obligations hereunder shall be accelerated, in each case, prior to the
Maturity Date, the Borrower shall pay to the Agent, for the benefit of the Lenders, an early termination fee in an amount equal to the applicable “Required Percentage” (as set forth below) multiplied by the Maximum Facility Amount.
For purposes hereof, the “Required Percentage” shall mean (a) two percent (2%) if this Agreement terminates at any time on or before the first anniversary hereof and (b) one percent (1%) if this Agreement
terminates at any time after the first anniversary hereof but on or before the second anniversary hereof. 

  

	 	(f)	Overadvance Fee. If at anytime an Overadvance exists and is not cured as permitted by this Agreement within three (3) days, the Borrower shall pay to the
Agent, for the benefit of the Lenders, a fee equal to 1.50% of the highest Overadvance Amount during each month the Overadvance remains outstanding. The payment of such fee shall not limit the obligations of the Borrower or any of the Agent’s
rights or remedies hereunder or under the Loan Documents or otherwise. 

  

	13.	Reporting  

 Borrower will
furnish to Agent and each Lender: 
  

	 	(a)	 as soon as available to Borrower, but in any event within ninety (90) days after the close of each fiscal year, the audited consolidated balance
sheet of Borrower, Newtek and their respective consolidated subsidiaries and related statements of income, stockholders’ or owners’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form
the figures for the previous fiscal year, all reported on (without a “going concern” or like qualification or exception and without any qualification or exception 

	 	 
as to the scope of such audit), prepared by J.H. Cohn LLP or other independent certified public accountants of recognized standing selected by the Borrower and reasonably acceptable to the Agent
and stating that such financial statements present fairly in all material respects the financial condition and results of operations of Borrower, Newtek and their consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied; provided that solely with respect to Newtek (and not the Borrower), the requirements with respect to the delivery of information set forth in this paragraph shall be deemed to be satisfied by delivery to the Agent and each Lender of a copy
of Newtek’s filed Form 10-K (or any successor or comparable forms) with the Securities and Exchange Commission (or any successor thereto) as at the end of and for any applicable fiscal year; 

 

	 	(b)	as soon as available, but in any event within sixty (60) days after the end of each of the first three fiscal quarters of Borrower’s and Newtek’s fiscal
year, Borrower’s and Newtek’s consolidated balance sheet and related statements of income, stockholders’ or owners’ equity and cash flows as of the end of and for such fiscal quarter and the portion of the fiscal year then
elapsed, setting forth in each case in comparative form the figures for the corresponding period or periods of the previous fiscal year, certified by the chief financial officer of Borrower and Newtek as presenting fairly in all material respects
the financial condition and results of operations of Borrower and Newtek and their respective Subsidiaries on a consolidating basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of
footnotes; provided that solely with respect to Newtek (and not the Borrower), the requirements with respect to the delivery of information set forth in this paragraph shall be deemed to be satisfied by delivery to the Agent and each Lender of a
copy of Newtek’s filed Form 10-Q (or any successor or comparable forms) with the Securities and Exchange Commission (or any successor thereto) as at the end of and for any applicable fiscal quarter; 

 

	 	(c)	as soon as available to Borrower, but in any event within thirty (30) days after the end of each calendar month, its consolidated balance sheet and related
statements of income, stockholders’ or owners’ equity and cash flows as of the end of and for such month and the portion of the fiscal year then elapsed, setting forth in each case in comparative form the figures for the corresponding
period or periods of the previous fiscal year, certified by the chief financial officer of the Borrower as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries
on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes; 

  

	 	(d)	concurrently with any delivery of financial statements under clauses (a), (b) and (c) above, a certificate of the chief financial officer of the Borrower in a
form mutually acceptable to the Agent and the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto,
(ii) setting forth reasonably detailed calculations demonstrating compliance with the financial covenants set forth in Section 14 of this Annex and (iii) stating whether any change in GAAP or in the application thereof has occurred
since the date of the audited financial statements referred to in Section 3.12 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;

  

	 	(e)	upon Lender’s reasonable request, access to Borrower’s records, including, without limitation, a list of the then-effective access codes to Borrower’s
computerized files containing information regarding Borrower’s Client Advances, Customer Obligations and the Collateral; 

  

	 	(f)	 together with each delivery of financial statements pursuant to clause (a) above, a discussion and analysis of the financial condition and results
of operations of the Borrower 

	 	 
and its consolidated Subsidiaries for the fiscal year covered by such financial statements and discussing the reasons for any significant variations from the projections referred to in paragraph
(g), below, for such fiscal year; 

  

	 	(g)	within ninety (90) days after the close of each fiscal year, a projected consolidated balance sheet and related statements of income, stockholders’ or
owners’ equity and cash flows of the Borrower and its consolidated Subsidiaries, as of the end of such period and for the current fiscal year, giving effect to projected Credit Extensions and representing the Borrower’s good faith estimate
of its and its consolidated Subsidiaries’ future financial performance and prepared on the basis of assumptions believed by the Borrower to be fair and reasonable in light of current business conditions at the time such projections are prepared
(which assumptions shall be set forth therein; 

  

	 	(h)	within fifteen (15) days after the last day of each calendar month and at any time upon the request of the Agent, a Borrowing Base Certificate;

  

	 	(i)	within fifteen (15) days after the last day of each calendar month, (i) an accounts receivable aging report as of the last day of such month in the form of
Schedule I to the Borrowing Base Certificate, (ii) an accounts payable aging report as of the last day of such month in the form of Schedule II to the Borrowing Base Certificate, (iii) a Client Advance report as of
the last day of such month in the form of Schedule III to the Borrowing Base Certificate and (iv) an updated Schedule 3.23 which shall include all Factoring Documents and any other material financing agreements, factoring
agreements, security agreements, guaranties and other material documents pursuant to which the Borrower provides financing to any Person including, without limitation, a Client Advance; 

 

	 	(j)	daily reporting with respect to collections on Accounts Receivable in the form of the attachment to the Borrowing Base Certificate; 

 

	 	(k)	as soon as available, but not later than thirty (30) days after the filing of same with the Internal Revenue Service or analogous state Governmental Authority, a
copy of the federal and state income tax returns of Borrower for the most recently completed tax year, together with all schedules and supporting documentation, all in the form filed with the Internal Revenue Service or such analogous state
Governmental Authority and, in the event Borrower shall file an application for extension of the time to file an income tax return with respect to any such tax return, the Borrower agrees to furnish to the Agent and each Lender a copy of same, not
later than thirty (30) days after such application for an extension is filed; 

  

	 	(l)	Borrower shall make available to Agent, in writing or by providing access to the computer system storing such information, (a) on the first Business Day of each
calendar quarter and (b) immediately upon its written request following an Event of Default or a determination by Agent that an Event of Default is probable, a detailed reporting of Customer Obligations purchased and currently owned, and Client
Advances outstanding; 

  

	 	(m)	as soon as available to Borrower, but in any event within five (5) days after receipt by Borrower, a copy of any “management letter” provided to Borrower
by its accountants; and 

  

	 	(n)	promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of Borrower or any of its
Subsidiaries, or compliance with the terms of the Loan Documents, as the Agent may reasonably request. 

  

	14.	Financial Covenants 

Definitions. The following definitions shall apply to this Section of this Annex: 

 “Guarantor Cash Collateral” shall mean the amount
calculated in clause (b) of the definition of Borrowing Base set forth in Section 6 of this Annex 2. 
 “Guarantor Leverage Ratio” shall mean, the ratio as of any date of determination of (i) the sum of (x) Total Debt as of such date minus (y) the following non-cash
items on the balance sheet (I) Notes Payable-Credits in lieu of cash and (2) Liability on SBA Loans Transferred, to (ii) Newtek Tangible Net Worth as of such date. 

“Indebtedness” shall mean (A) all indebtedness for borrowed money or for the deferred purchase price
of property or services, and all obligations under leases which are or should be recorded as capital leases, in respect of which a Person is directly or contingently liable as borrower, guarantor, endorser or otherwise, or in respect of which a
Person otherwise assures a creditor against loss; (B) all obligations for borrowed money or for the deferred purchase price of property or services secured by (or for which the holder has an existing right, contingent or otherwise, to be
secured by) any lien upon property (including without limitation accounts receivable and contract rights) owned by a Person, whether or not such Person has assumed or become liable for the payment thereof; (C) indebtedness evidenced by bonds,
debentures, notes or other similar instruments; (D) obligations and liabilities directly or indirectly guaranteed by such Person; (E) obligations or liabilities created or arising under any conditional sales contract or other title
retention agreement with respect to property used and/or acquired by such Person; (F) all obligations of such Person in respect of bankers’ acceptance; (G) all obligations, contingent or otherwise of such Person as an account party or
applicant in respect of letters of credit; and (H) all other liabilities and obligations which would be classified in accordance with GAAP as indebtedness on a balance sheet or to which reference should be made in footnotes thereto. 

“Intangible Assets” shall mean, as of the date of determination thereof, assets that in accordance with
GAAP are properly classifiable as intangible assets, including, but not limited to, goodwill, franchises, licenses, patents, trademarks, trade names and copyrights. 

“Leverage Ratio” shall mean, the ratio as of (i) Total Debt (other than Subordinated Indebtedness)
as of such date to (ii) Tangible Net Worth as of such date. 
 “Newtek Tangible Net Worth”
shall mean, as of any date of determination, total equity less (i) intangible assets (net of accumulated amortization) and (ii) goodwill. 
 “Subordinated Indebtedness” shall mean, as of the date of determination thereof, all Indebtedness (including accrued but unpaid interest thereon) which has been subordinated in writing to
the Obligations on terms and conditions acceptable to the Agent. 
 “Tangible Net Worth” shall
mean, as of the date of determination thereof, (a) the sum of (i) Subordinated Indebtedness plus (ii) the amount of the Guarantor Cash Collateral plus (iii) Total Assets, excluding all Intangible Assets (other than deferred
financing) and all obligations owed from Affiliates or any employee, officer or owner of Borrower, (b) less Total Liabilities other than Subordinated Indebtedness. 

“Total Assets” shall mean, as of the date of determination thereof, the total assets of the Borrower
which would be classified in accordance with GAAP as assets on a balance sheet or to which reference should be made in footnotes thereto, all calculated with respect to the Borrower. 

“Total Debt” shall mean, as at any date of determination, the aggregate stated balance sheet amount of
all Indebtedness of the Borrower or Guarantor, as applicable. 
 “Total Liabilities” shall mean,
as of the date of determination thereof, the total liabilities and obligations of the Borrower which would be classified in accordance with GAAP as liabilities 

 
on a balance sheet or to which reference should be made in footnotes thereto, all calculated with respect to the Borrower. 
 Financial Covenants. 
 (a) The Borrower will not at any time or during any fiscal
period (as applicable) fail to be in compliance with any of the following financial covenants: 
 (i) Leverage Ratio.
Borrower shall not permit the Leverage Ratio to be greater than 7.00 to 1.00 at any time. 
 (ii) Tangible Net Worth. The
Borrower shall not permit its Tangible Net Worth to be less than $1,024,270.00 at any time. 
 (b) Newtek will not at any time or
during any fiscal period (as applicable) fail to be in compliance with any of the following financial covenants: 
 (i)
Guarantor Leverage Ratio. Newtek shall not permit Guarantor Leverage Ratio to be greater than (x) 1.50 to 1.00 as of December 31, 2010, (y) 2.00 to 1.00 at any time during the 2011 calendar year and (z) 2.50 to 1.00 at any
time after the 2011 calendar year. 
 (ii) Net Loss. Newtek shall (i) as of the end of each of the first three fiscal
quarters of each fiscal year, suffer no loss in excess of $250,000 in the aggregate for the then-elapsed portion of such fiscal year and (ii) suffer no after-tax loss as of and for the end of each fiscal year, in each case as determined in
accordance with GAAP.

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