Document:

Amended and Restated Loan Purchase and Servicing Agreement

 EXHIBIT 10.67 
  
 SECOND AMENDED AND RESTATED 
 LOAN PURCHASE AND SERVICING AGREEMENT 
  
 dated as of 
 June 9, 2004 
  
 between 
  
 GROCERS CAPITAL COMPANY 
 as Seller and Servicer 
  
 and 
  
 NATIONAL CONSUMER COOPERATIVE BANK 
 as Buyer 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 ARTICLE I DEFINITIONS
	  	1
			
	 	 	 SECTION 1.01 Defined Terms.
	  	1
	 	 	 SECTION 1.02 General Principles Applicable to Definitions.
	  	14
	 	 	 SECTION 1.03 Accounting Terms
	  	14
		
	 ARTICLE II THE COMMITMENT
	  	15
			
	 	 	 SECTION 2.01 Loans Sold and Purchased as of the Effectiveness Date; Origination of Loans.
	  	15
	 	 	 SECTION 2.02 Agreement to Purchase and Sell Loans.
	  	15
	 	 	 SECTION 2.03 Incremental Purchase.
	  	17
	 	 	 SECTION 2.04 Commitment Termination Date.
	  	18
		
	 ARTICLE III CLOSING PROCEDURE; CONDITIONS TO PURCHASE
	  	19
			
	 	 	 SECTION 3.01 Payment.
	  	19
	 	 	 SECTION 3.02 Effective Date.
	  	19
	 	 	 SECTION 3.03 Buyer's Conditions Precedent to Acceptance.
	  	19
	 	 	 SECTION 3.04 Additional Delivery Requirements for Effectiveness Date.
	  	21
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	23
			
	 	 	 SECTION 4.01 Seller's Corporate Representations and Warranties.
	  	23
	 	 	 SECTION 4.02 Seller's Incremental Purchase Date Representations and Warranties with respect to Loans.
	  	25
	 	 	 SECTION 4.03 Buyer's Representations and Warranties
	  	30
	 	 	 SECTION 4.04 Repurchase Upon Breach of Certain Representations and Warranties.
	  	30
	 	 	 SECTION 4.05 Survival of Representations.
	  	31
		
	 ARTICLE V SERVICING AND COLLECTION
	  	32
			
	 	 	 SECTION 5.01 Servicing; Delegation of Authority to Buyer and Servicer.
	  	32
	 	 	 SECTION 5.02 Maintenance of System; Collection and Maintenance of Information.
	  	32
	 	 	 SECTION 5.03 Maintenance of Lien Priority.
	  	33
	 	 	 SECTION 5.04 Obligor Inquiries; Credit and Collection Policies
	  	33
	 	 	 SECTION 5.05 Obligor Defaults.
	  	34
	 	 	 SECTION 5.06 Servicer Reports; Annual Audit.
	  	35
	 	 	 SECTION 5.07 Loan and Other Payments.
	  	35
	 	 	 SECTION 5.08 Computation and Payment of Periodic Payments, Servicing Fees and Guaranty Fees; Servicer's Expenses.
	  	37
	 	 	 SECTION 5.09 Applicable Rate
	  	38
	 	 	 SECTION 5.10 Concerning Insurance on Collateral
	  	38
	 	 	 SECTION 5.11 Access to Certain Documentation and Certain Information Regarding the Loans.
	  	39
	 	 	 SECTION 5.12 Servicer Representations and Warranties.
	  	39

  

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	 	 	SECTION 5.13 Servicer's Resignation.	  	40
		
	 ARTICLE VI SELLER'S AND SERVICER'S COVENANTS
	  	41
			
	 	 	 SECTION 6.01 Covenants.
	  	41
		
	 ARTICLE VII SELLER OBLIGATIONS AND REPURCHASE OPTIONS
	  	47
			
	 	 	 SECTION 7.01 Repurchase of Loans.
	  	47
	 	 	SECTION 7.02 Minimal Balances.	  	47
	 	 	SECTION 7.03 Repurchase of Expansion Loans.	  	47
	 	 	SECTION 7.04 Repurchase of Loans on the Seventh Anniversary of the Commitment Termination Date.	  	48
		
	 ARTICLE VIII SERVICER DEFAULT
	  	49
			
	 	 	 SECTION 8.01 Servicer Defaults.
	  	49
	 	 	SECTION 8.02 Buyer to Act; Appointment of Successor.	  	50
	 	 	SECTION 8.03 Effects of Servicing Transfer.	  	51
		
	 ARTICLE IX TERMINATION EVENTS
	  	52
			
	 	 	 SECTION 9.01 Termination Events.
	  	52
	 	 	SECTION 9.02 Consequences of Termination Event.	  	53
	 	 	SECTION 9.03 Remedies of a Secured Party.	  	53
		
	 ARTICLE X MISCELLANEOUS
	  	55
			
	 	 	 SECTION 10.01 Further Assurances.
	  	55
	 	 	SECTION 10.02 Indemnities.	  	55
	 	 	SECTION 10.03 No Waiver: Remedies Cumulative.	  	55
	 	 	SECTION 10.04 Governing Law.	  	56
	 	 	SECTION 10.05 Consent to Jurisdiction; Waiver of Immunities.	  	56
	 	 	SECTION 10.06 Notices.	  	56
	 	 	SECTION 10.07 Assignment.	  	56
	 	 	SECTION 10.08 Capital Markets Funding.	  	56
	 	 	SECTION 10.09 Severability.	  	56
	 	 	SECTION 10.10 Attorney's Fees.	  	57
	 	 	SECTION 10.11 Setoff.	  	57
	 	 	SECTION 10.12 Limitation on Third Party Beneficiaries.	  	57
	 	 	SECTION 10.13 Term of Agreement.	  	57
	 	 	SECTION 10.14 Entire Agreement; Amendment.	  	57
	 	 	SECTION 10.15 Headings.	  	57
	 	 	SECTION 10.16 Counterparts.	  	57

  

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 SECOND AMENDED AND RESTATED 
 LOAN PURCHASE AND SERVICING AGREEMENT 
  
 This SECOND AMENDED AND RESTATED LOAN PURCHASE AND SERVICING AGREEMENT (this “Agreement”) is executed as of June 9, 2004, by and between GROCERS
CAPITAL COMPANY, a California corporation (“GCC”), as Seller (in such capacity, the “Seller”) and as Servicer (in such capacity, the “Servicer”), and NATIONAL CONSUMER COOPERATIVE BANK, a financial institution organized
under the laws of the United States (the “Buyer”). 
  
 RECITALS 
  
 WHEREAS GCC and Buyer entered into that
certain Amended and Restated Loan Purchase and Servicing Agreement dated as of December 7, 2001 (as amended, the “Amended and Restated Loan Purchase and Servicing Agreement”), which Amended and Restated Loan Purchase and Service Agreement
amended and restated that certain Loan Purchase and Servicing Agreement dated as of August 29, 1996; 
  
 WHEREAS GCC and Buyer desire (i) to amend and restate the Amended and Restated Loan Purchase and Servicing Agreement as set forth in this Agreement and
(ii) in connection therewith, amend and restate the Amended and Restated Guaranty Agreement as set forth in the Second Amended and Restated Guaranty Agreement; and 
  
 WHEREAS the Loans outstanding under the Amended and Restated Loan Purchase and Servicing Agreement (each an “Amended
and Restated Loan” and, collectively, the “Amended and Restated Loans”), shall remain outstanding as Loans under, and subject to, the terms of this Agreement. 
  
 NOW THEREFORE, for full and fair consideration, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 SECTION 1.01 Defined Terms. The following terms, as used herein, have the following meanings: 
  
 “Affiliate” shall mean, with respect to a Person, any other
Person (or group of related Persons) which (i) directly or indirectly controls, is controlled by or is under common control with, such Person, or (ii) directly or indirectly owns more than 10% of such Person’s voting stock. The term
“control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise;
provided, however, that the mere fact that a representative of a Unified Patron serves and acts as a director of Unified or Seller shall not cause such Unified Patron to be an Affiliate of Unified or Seller. 
  

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 “Agent” shall mean NCB, in its capacity as Agent under the Portfolio Credit Facility.

  
 “Amended and Restated Guaranty Agreement”
means the Amended and Restated Guaranty Agreement, dated as of December 7, 2001, by and between Buyer and Guarantor. 
  
 “Amended and Restated Loan” and “Amended and Restated Loans” shall have the meanings set forth in the recitals to this
Agreement. 
  
 “Amended and Restated Loan Purchase and
Servicing Agreement” shall have the meaning set forth in the recitals to this Agreement. 
  
 “Applicable Rate” shall mean, for each Loan, the rate determined pursuant to Section 5.09. 
  
 “Assignment and Assumption Agreement” shall mean the
Assignment and Assumption Agreement and General Release dated as of October 2, 2000, by and among URI, Unified, GCC and NCB. 
  
 “Bank Act” shall mean the National Consumer Cooperative Bank Act, 12 U.S.C. §§ 3001-3051, and any regulations and policies
adopted thereunder. 
  
 “Business Day” means a
day (i) other than Saturday or Sunday, and (ii) on which commercial banks are open for business in Washington, D.C., and Los Angeles, California. 
  
 “Buyer” shall mean NCB, as buyer hereunder. 
  
 “Cash Flow Ratio” means, with respect to any Obligor of any Loan as of any date of determination, a fraction expressed as a ratio where
the numerator is equal to the sum of: (i) profits before taxes for such Obligor, (ii) interest expense for such Obligor, (iii) depreciation for such Obligor, (iv) amortization for such Obligor and (v) employee stock ownership plan (ESOP)
contribution/compensation expense for such Obligor, if a leveraged transaction (each of the foregoing being determined in accordance with GAAP consistently applied for the most recently ended period of 12 fiscal months of such Obligor), and where
the denominator is equal to the aggregate scheduled principal and interest payments in respect of indebtedness of such Obligor due during the ensuing period of 12 consecutive months. 
  
 “Cash Interest Expense” shall mean, for any period, gross interest expense for such period determined in
accordance with GAAP. 
  
 “Code” shall mean the
Internal Revenue Code of 1986, as amended, and any successor statute thereto. 
  
 “Collateral” shall mean all or any portion of any collateral, whether real or personal, tangible or intangible, or otherwise, pledged by any Obligor or Loan Guarantor to secure repayment of its Loan
and the related Note (other than Cooperative Assets). 
  

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 “Collateral Coverage Ratio” means, with respect to any Loan, a fraction expressed as a
ratio where the numerator is equal to the sum of: (i) the net book value of inventory, and other assets other than furniture, fixtures, equipment and real estate of the Obligor of such Loan, (ii) the greater of (a) the net book value of furniture,
fixtures and equipment of the Obligor and (b) the product of 3.5 multiplied by average weekly sales of such Obligor up to a maximum of the gross book value of such furniture, fixtures and equipment and (iii) the appraised value of real estate
of the Obligor which complies in all respects with the Credit and Collection Policy, and where the denominator is the aggregate outstanding principal balance of all loans secured in whole or in part by any of the above described assets. 

 
 “Collections” shall mean any and all amounts received
from or on behalf of the Obligors in respect of Loans and related Notes or Related Documents during any applicable Due Period regardless of how received and including, without limitation, receipt of Scheduled Payments, payments from Loan Guarantors,
Liquidation Proceeds and Insurance Proceeds. 
  
 “Commitment Termination Date” shall have the meaning set forth in Section 2.04. 
  
 “Consolidated Net Worth” shall mean, with respect to any Person, as of any date, the aggregate shareholders’ equity of such Person
and its Subsidiaries that would be shown on a consolidated balance sheet as of such date. 
  
 “Consolidated Tangible Net Worth” shall mean, with respect to any Person, at any date, Consolidated Net Worth less (i) all assets which should be classified as intangible assets (such as goodwill,
patents, trademarks, copyrights, franchises and covenants not to compete) and (ii) to the extent not already deducted from total assets, all reserves including those for deferred income taxes, depreciation, obsolescence or amortization of properties
and (iii) all capital stock or other investments in any direct or indirect subsidiary other than in (x) any offshore investment subsidiary, or (y) a subsidiary having all or substantially all of its operations in the United States. 
  
 “Controlled Group” means all members of a controlled group
of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Seller, are treated as a single employer under Section 414 of the Code. 
  
 “Cooperative Assets” shall mean the assets (including cash)
owned or earned by an Obligor relating to its membership in Unified, including Unified’s capital stock and patronage dividends. 
  
 “CPLTD” shall mean, with respect to any Person, as of any date, that portion of such Person’s long-term Debt (that is, Debt with a
term of greater than one year) which matures and is due and payable within one year. 
  
 “Credit Agreement” shall mean the Credit Agreement, dated as of December 5, 2003, by and among Unified, the lenders named therein and Harris Trust and Savings Bank, as Administrative Agent, as the
same may be modified, amended, restated, supplemented or replaced from time to time. 
  

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 “Credit and Collection Policy” shall mean, with respect to GCC, the credit, collection,
enforcement and other policies and practices of GCC relating to Loans, related Notes and Related Documents existing on the Effectiveness Date and as set forth in Exhibit A hereto, as the same may be modified from time to time with the consent of the
Buyer, which consent will not be unreasonably withheld. 
  
 “Cross Collateral” shall mean, with respect to any Loan, all or any portion of the Primary Collateral pledged to secure (i) on a parity basis, any other Obligor Group Loan or Loans previously purchased by the Buyer, and/or
(ii) on a subordinated basis, any other notes or indebtedness of the Obligor or any member of its Obligor Group, which Primary Collateral, in either case, also secures such Loan. 
  
 “Debt” of any Person shall mean at any date, without duplication, (i) all obligations of such Person for
borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments or agreements (including obligations of the parties under this Agreement or the Guaranty Agreement), (iii) all obligations of such
Person to pay the deferred purchase price of property or services other than trade payables and open accounts arising in the ordinary course, (iv) all obligations of such Person as lessee which are capitalized in accordance with generally accepted
accounting principles, (v) all Debt secured by a lien on any asset owned of such Person, whether or not such Debt is otherwise an obligation of such Person which Debt, if Non-Recourse Debt to such Person, shall be deemed to be in an amount equal to
the lesser of the principal amount of such obligations or the aggregate fair market value of such assets, and (vi) all Guaranteed Debt (including, in the case of the Guarantor, the Guarantor’s obligations under the Guaranty Agreement).

  
 “Defaulted Loan” shall mean, as of any date,
a Loan with respect to which any of the following has occurred: (a) there has occurred an Obligor Default with respect to such Loan and such Obligor Default has been continuing for a period of 45 days, or (b) the Obligor under such Loan has sought
protection under the United States Bankruptcy Code or is the subject of an involuntary bankruptcy. 
  
 “Determination Date” shall mean the Business Day before each Payment Date. 
  
 “Due Date” shall mean the day on which the Scheduled Payment is due from the Obligor on a Loan. 

 
 “Due Period” shall mean, with respect to any Payment
Date, the calendar month preceding the month in which such Payment Date occurs. 
  
 “EBITDA” shall mean, for any Person, for any period, the consolidated net income (or net loss) of such Person for such period, plus (a) the sum of (i) depreciation expense, (ii) amortization
expense, (iii) Cash Interest Expense, (iv) total income tax expense, and (v) extraordinary or unusual losses (and other after-tax losses on sales of assets outside of the ordinary course of business and not otherwise included in extraordinary or
unusual losses), less (b) the sum of (i) extraordinary or unusual gains (and other after tax gains on sales of assets outside of the ordinary course of business and not otherwise included in 
  

 -4- 

 extraordinary or unusual gains) of the Person for such period and (ii) the net income (or loss) of any Person that is
accounted for by the equity method of accounting, except to the extent of the amount of dividends or distributions paid to such Person. 
  
 “Effectiveness Date” shall mean the date when all of the conditions set forth in Section 3.04 have been satisfied. 
  
 “ERISA” shall mean the Employee Retirement Income Security
Act of 1974, as amended from time to time. 
  
 “Existing
Loan Representation” shall mean a representation or warranty made by Seller with respect to an Amended and Restated Loan under the Amended and Restated Loan Purchase and Servicing Agreement. 
  
 “Expansion Loan” shall mean any Loan (other than an Amended
and Restated Loan) (A) the proceeds of which shall be used by the related Obligor to finance capital or leasehold improvements, inventory or to expand or renovate a grocery store, (B) which, on the applicable Incremental Purchase Date, satisfies all
of the terms and conditions of this Agreement (including, without limitation, Section 3.03(m)), and (C) with respect to which (i) the Collateral Coverage Ratio is less than 1:1, (ii) the Cash Flow Ratio for the related Obligor is less than 1.1:1
and/or (iii) the related Obligor does not have a positive net worth. 
  
 “Expansion Loan Projections” shall have the meaning set forth in Section 3.03(m). 
  
 “Expansion Loan Repurchase Date” shall mean, with respect to any Expansion Loan, the date which is twelve months following the
Incremental Purchase Date on which the Seller sold such Expansion Loan to the Buyer. 
  
 “GAAP” has the meaning specified in Section 1.03. 
  
 “GCC” shall mean Grocers Capital Company, a California corporation, and its Successors and assigns. 
  
 “Government Approval” shall mean an approval, permit,
license, authorization, certificate or consent of any Governmental Authority. 
  
 “Governmental Authority” shall mean the government of the United States or any State or any foreign country or any political subdivision of any thereof or any branch, department, agency,
instrumentality, court, tribunal or regulatory authority which constitutes a part or exercises any sovereign power of any of the foregoing. 
  
 “Guaranteed Debt” shall mean, as applied to any debt, for any Person (i) a guarantee by such Person (other than by endorsement for
collection in the ordinary course of business), direct or indirect, in any manner, of any part or all of such debt or (ii) a similar agreement, direct or indirect, contingent or otherwise, providing for the payment or performance (or payment of
damages in the event of non-performance) of such Person of any part or all of such debt. The amount of any Guaranteed Debt of such Person shall be deemed to be the maximum amount of the debt guaranteed for which the guarantor could be held liable
under such Guaranteed Debt. 
  

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 “Guarantor” shall mean GCC and its Successors and assigns. 
  
 “Guarantor Default” shall have the meaning given in Section
5.1 of the Guaranty Agreement. 
  
 “Guaranty”
shall have the meaning given in the Guaranty Agreement. 
  
 “Guaranty Agreement” means the Second Amended and Restated Guaranty Agreement, dated as of the date hereof, by and between Buyer and Guarantor, as the same may be amended and supplemented from time to time. 
  
 “Guaranty Amount” shall have the meaning given in the
Guaranty Agreement. 
  
 “Guaranty Fee” shall have
the meaning given in Section 2.2 of the Guaranty Agreement. 
  
 “Guaranty Payments” shall mean the amounts paid by Guarantor to the Servicer, for the benefit of the Buyer, pursuant to the Guaranty. 
  

“Incremental Purchase” shall have the meaning ascribed to such term in Section 2.03 hereof. 
  
 “Incremental Purchase Date” shall mean the date (which shall
be the first Business Day of a month, or such other day as the Buyer shall agree) of each Incremental Purchase. 
  
 “Insurance Proceeds” shall mean proceeds paid by any insurer pursuant to any insurance policy covering a Loan or Collateral, including
but not limited to, title, hazard, life, health and/or accident insurance policies. 
  
 “Interest Accrual Period” shall mean, with respect to each Payment Date, the period commencing on the first day of the month preceding such Payment Date and ending on the last day of the month
preceding such Payment Date. 
  
 “Investment
Agreement” shall mean the Third Amended and Restated Investment Agreement dated as of October 2, 2000, by and among GCC and Unified. 
  
 “LIBOR” shall mean, for any LIBOR Period (and each Interest Accrual Period during such LIBOR Period), the quotient of (i) the rate for
deposits in U.S. dollars for a period of 90 days which appears on the screen designated as page “LIBOR” on the appropriate display on the Bloomberg Financial Markets System (or such other screen as may replace the same on such service) at
11:00 A.M. (London time) on the related LIBOR Determination Date divided by (ii) the number equal to 100% minus the daily average of the stated maximum rate (rounded upward to the nearest 0.01%), as determined by Buyer in accordance with its usual
procedures (which determination shall be conclusive in the absence of manifest 
  

 -6- 

 error), at which reserves are required to be maintained during such LIBOR Period (including supplemental, marginal, and
emergency reserves) under Regulation D of the Board of Governors of the Federal Reserve System by Buyer against “Eurocurrency liabilities” (as such term is defined in Regulation D), but without benefit or credit of proration, exemptions,
or offsets that might otherwise be available to Buyer from time to time under Regulation D. Without limiting the generality of clause (ii) of the preceding sentence, such clause (ii) shall include any other reserves required by law to be maintained
by Buyer against (x) any category of liabilities that includes deposits by reference to which LIBOR is being determined and (y) any category of extension of credit or other assets that includes the Loans. If the rate described in clause (i) of the
first sentence of this definition does not appear as contemplated therein, then the rate in such clause (i) for such LIBOR Period will be the rate described in such clause (i) as determined on the immediately preceding LIBOR Determination Date. Each
determination of LIBOR by Buyer including, but not limited to, any determination as to the applicability or allocability of reserves to eurocurrency liabilities or as to the amount of such reserves, shall be conclusive and final in the absence of
manifest error. 
  
 “LIBOR Business Day” shall
mean any Business Day on which commercial banks are open for dealings in Dollar deposits in London. 
  
 “LIBOR Determination Date” shall mean the second LIBOR Business Day prior to the commencement of each LIBOR Period. 
  
 “LIBOR Period” shall mean (i) for the initial LIBOR Period,
the period commencing on the Effectiveness Date and ending on June 30, and (ii) for each LIBOR Period thereafter, the period commencing on the first day of the applicable calendar quarter (October 1, January 1, April 1 or July 1, as the case may be)
and ending on the last day of such calendar quarter (December 31, March 31, June 30 or September 30, as the case may be). 
  
 “Liquidated Loan” shall mean any Defaulted Loan as to which the Servicer has determined that all amounts which it reasonably and in good
faith expects to recover have been recovered from or on account of such Loan; provided, however, that a Loan which has not been determined to have become a Liquidated Loan within two months after becoming a Defaulted Loan shall be
deemed a Liquidated Loan on the two month anniversary date of such Loan becoming a Defaulted Loan. A Loan which is deemed a Liquidated Loan shall be due and payable on the date so deemed. 
  
 “Liquidation Losses” shall mean, with respect to any Liquidated Loan, on any date, the amount by which (A)
the sum of (i) the Principal Balance of such Loan, and (ii) accrued and unpaid interest thereon at the Applicable Rate, exceeds (B) the Net Liquidation Proceeds and Insurance Proceeds thereon, if any. 
  
 “Liquidation Proceeds” shall mean cash (other than Insurance
Proceeds) and any other amounts received in connection with the liquidation of Defaulted Loans and from Loans with respect to which an Obligor Event has occurred and, in each case, related Collateral, whether through trustee’s sale, foreclosure
sale or otherwise. 
  

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 “Loan” shall mean each loan, including each Non-Conforming Loan and Expansion Loan, in
each case whether existing on the date hereof or hereafter arising, originated by Seller in the ordinary course of its business and sold and transferred from time to time to the Buyer pursuant to this Agreement, together with the Property related
thereto, the Loans subject to this Agreement being identified on the Loan Schedules. 
  
 “Loan File” or “Loan Files” shall have the meaning set forth in Section 2.02(b). 
  
 “Loan Guarantor” shall mean any Person who (i) guarantees an Obligor’s payment and/or other obligations under any Loan, (ii)
co-signs, or is a co-maker on, the related Note, or (iii) otherwise supports, either in a primary or secondary position, an Obligor’s obligations with respect to a Loan, the related Note or other Related Documents. 
  
 “Loan Interest Rate” shall mean, with respect to any date,
the then-applicable annual rate of interest borne by a Loan, pursuant to its terms, which, as of the Effectiveness Date (in the case of the Amended and Restated Loans) or the applicable Incremental Purchase Date (in the case of all other Loans), is
shown on the applicable Loan Schedule. 
  
 “Loan
Schedule” shall mean, with respect to the Amended and Restated Loans, the schedules of Amended and Restated Loans delivered to Buyer prior to the Effectiveness Date pursuant to the Amended and Restated Loan Purchase and Servicing Agreement,
and, with respect to each of the Loans that is not an Amended and Restated Loan, the schedule of Loans delivered to the Buyer on or before each Incremental Purchase Date, such schedule identifying each Loan to be purchased pursuant to such
Incremental Purchase by the name and address of the Obligor (and, if different from such address, the location of the grocery store to which such Loan relates) and the following information with respect to each such Loan: (i) the Principal Balance
as of the close of business on the day preceding the applicable Incremental Purchase Date, (ii) the account number on Seller’s records, (iii) the original principal amount of the Loan, (iv) the date the Loan was made and original number of
months to maturity and original amortization period, in months, (v) the Loan Interest Rate as of the applicable Incremental Purchase Date and whether such Loan Interest Rate is fixed or variable, (vi) the dates on which Scheduled Payments are due
and when the first Scheduled Payment was due, (vii) the schedule of Scheduled Payments applicable to such Loan, (viii) amortization method and period, (ix) the remaining number of months in the amortization period as of the applicable Incremental
Purchase Date, (x) if the Loan has a variable Loan Interest Rate, the margin which is added to the Prime Rate to determine the Loan Interest Rate, the maximum and minimum Loan Interest Rates, if applicable, the Loan Interest Rate adjustment
frequency and the Loan payment adjustment frequency, (xi) whether such Loan is an Amended and Restated Loan, (xii) the remaining term to maturity as of the applicable Incremental Purchase Date, (xiii) for Loans other than Expansion Loans, the Cash
Flow Ratio and the Collateral Coverage Ratio as of such Incremental Purchase Date (including the work product by which such ratios were determined and the Loans taken into account in determining the Collateral Coverage Ratio), (xiv) the aggregate
Principal Balance of the related Obligor Group Loans (including such Loan) as of the close of business on the Incremental Purchase Date for such Loan, (xv) whether such Loan has Cross Collateral, (xvi) whether such Loan is secured by real estate
Collateral and (xvii) whether such Loan is an Expansion Loan and, if so, the related Expansion Loan Repurchase Date. 
  

 -8- 

 “Margin” shall mean (a) for each Loan which is an Amended and Restated Loan, 150 basis
points and (b) for each Loan which is not an Amended and Restated Loan, 200 basis points. 
  
 “Maximum Purchase Amount” shall mean $70,000,000 in aggregate Principal Balance outstanding at any time less the aggregate Principal Balance of “Assigned Loans” as defined in the Assignment
and Assumption Agreement. 
  
 “Minimum
Documentation” shall mean, with respect to a Loan secured by any real estate Collateral, (i) a statement or estimation by Seller as to the assessed value of the related mortgaged property, and (ii) copies of any title search or report which
may have been prepared by an attorney or title company relating to the mortgaged property. 
  
 “Modification Losses” shall mean, with respect to any Restructured Loan, as to any date, the amount, on such date, by which (A) the present value of all payments which would have been scheduled to be
made on such Loan if such Loan had not become a Restructured Loan, exceeds (B) the present value of all payments scheduled to be made on such Restructured Loan. 
  

“Monthly Interest Amount” shall have the meaning given in Section 5.08. 
  
 “Monthly Report” shall mean the monthly report prepared by the Servicer substantially in the form of
Exhibit B hereto. 
  
 “NCB” shall mean National
Consumer Cooperative Bank, a financial institution organized under the laws of the United States, and its Successors and assigns. 
  
 “Net Liquidation Proceeds” shall mean Liquidation Proceeds net of the sum of (i) amounts required to be released to the related Obligor
pursuant to applicable law, and (ii) unreimbursed reasonable fees and expenses incurred by NCB or the Servicer in servicing the liquidation of a Defaulted Loan or Loan with respect to which an Obligor Event has occurred, as the case may be.

  
 “Non-Conforming Loan” shall have the meaning
given in Section 2.01 hereof. 
  
 “Non-Recourse
Debt” shall mean debt or that portion of debt of any Person or a Subsidiary of such Person as to which (a) the holders of such debt agree that they will look solely to the property securing such debt for payment on or in respect of such
debt and (b) no default with respect to such debt would permit (after notice or passage of time or both) according to the terms thereof, any holder of any debt for money borrowed by such Person or a Subsidiary of such Person to declare a default on
such debt or cause the payment thereof to be accelerated or payable prior to stated maturity. 
  
 “Note” shall mean the promissory note (or notes) in substantially the form(s) included in Exhibit C hereto evidencing the indebtedness of an Obligor under a Loan. 
  

 -9- 

 “Obligor” shall mean the Person or Persons primarily obligated to repay a Loan and the
indebtedness evidenced by the related Note including, without limitation, all Persons executing such Note. 
  
 “Obligor Default” shall mean (a) the failure by an Obligor to pay when due (whether a Scheduled Payment, at maturity, upon required
prepayment, acceleration, demand or otherwise) the Loan and the indebtedness evidenced by the related Note or any Related Document, or any interest or premium thereon, which failure continues after the applicable grace period, if any, specified in
such Note or Related Document relating to such Loan; or (b) the failure by an Obligor to perform any term or covenant on its part to be performed under any Loan, related Note or Related Document which failure continues after the applicable grace
period, if any, specified in the Note or Related Document, if the effect of such failure to perform is to accelerate or to permit the acceleration of the maturity of the indebtedness evidenced by such Note or Related Document; or (c) the occurrence
of an event or condition whereby the indebtedness related to the Loan of any Obligor shall be declared to be due and payable or required to be prepaid (other than by regularly scheduled required prepayment) prior to the stated maturity thereof.

  
 “Obligor Event” shall mean, with respect to a
Loan, (a) the failure by an Obligor to pay when due (whether a Scheduled Payment, at maturity, upon required prepayment, acceleration, demand or otherwise) the Loan and the indebtedness evidenced by the related Note or any Related Document, or any
interest or premium thereon, which failure continues after the applicable grace period, if any, specified in such Note or Related Document relating to such Loan; or (b) any representation or warranty made or given hereunder with respect to such Loan
shall have been false or incorrect when made or given; or (c) the making by an Obligor of a prepayment of the Loan (whether such prepayment is optional or required, or pursuant to the acceleration thereof, or otherwise). 
  
 “Obligor Financial Statements” shall mean the balance sheets
and related statements of income prepared in good faith by or for the Obligor and in accordance with the requirements, if any, of the Related Documents. For purposes of determining the Cash Flow Ratio and Collateral Coverage Ratio, the financial
statements reflecting the most recently-available fiscal year’s results will be used, provided that if such financial statements reflect a period ended more than nine months earlier, an interim statement covering at least two
quarters’ results shall be used. 
  
 “Obligor
Group” shall include an Obligor and any of its Affiliates and Subsidiaries. 
  
 “Obligor Group Loans” shall mean all Loans purchased by the Buyer with respect to any member of an Obligor Group. 
  
 “Operating Agreement” shall mean the Third Amended and Restated Operating Agreement dated as of October 2,
2000, by and among GCC and Unified. 
  
 “Payaheads” shall mean, with respect to a Due Period, any amounts received on a Loan in excess of the Scheduled Payment due on the Due Date relating to such Due Period which does not constitute either a Principal Prepayment
or payment with respect to an overdue amount. Payaheads are payments of principal for purposes of this Agreement. 
  

 -10- 

 “Payment Date” shall mean the 5th Business Day of each calendar month, commencing July
8, 2004. 
  
 “Periodic Payment” shall have the
meaning given in Section 5.08. 
  
 “PBGC” shall
mean the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA. 
  
 “Person” shall mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a
government or political subdivision or any agency or instrumentality thereof. 
  
 “Plan” shall mean any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code that either (a) is maintained by a member of
the Controlled Group for employees of a member of the Controlled Group or (b) is maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which a member of the
Controlled Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions. 
  
 “Portfolio Credit Facility” shall mean any loan agreement or other credit facility by and between NCB and GCC. 
  
 “Primary Collateral” shall mean that portion of the
Collateral in which Seller had, prior to the sale and assignment hereunder, first priority perfected security interests; provided that real estate Collateral shall not be considered Primary Collateral. 
  
 “Prime Rate” shall mean the “Prime Rate” from time
to time announced by Union Bank of California, San Francisco, California; provided, however, that if such rate is not announced, the Prime Rate shall be a substantially comparable index selected by the Seller and approved by the Buyer.

  
 “Principal Balance” shall mean, with respect
to any Loan, at any date, (i) the principal balance of the Loan outstanding as of the Effectiveness Date (in the case of Amended and Restated Loans) or the Incremental Purchase Date (in the case of all other Loans) on which such Loan, as the case
may be, was purchased (without giving effect to any payment due or received on such date), minus (ii) the sum of (a) the principal portion of the Scheduled Payments received during each Due Period ending prior to the most recent Payment Date, which
were distributed to the Buyer, and to the Servicer and the Guarantor, as the case may be, pursuant to Section 5.08 on any previous Payment Date, (b) all Principal Prepayments and Payaheads, and (c) all Insurance Proceeds, Net Liquidation Proceeds,
Guaranty Payments and Repurchase Proceeds to the extent applied as recoveries of principal in accordance with the provisions hereof, which were distributed to the Buyer, and to the Servicer and the Guarantor, as the case may be, pursuant to Section
5.08 on any previous Payment Date. 
  

 -11- 

 “Principal Prepayment” shall mean any payment or other recovery of principal on a Loan
equal to the Principal Balance thereof, received in advance of the final scheduled Due Date which is intended to satisfy a Loan in full. 
  
 “Property” shall mean the Loans, the related Notes, Related Documents, Collateral pledged to secure the Loans, and, as more fully set
forth in Section 2.02(a), all of the other rights, title and interest of the Seller conveyed and sold pursuant to Sections 2.01 and 2.02(a). 
  
 “Purchase Price” shall have the meaning given in Section 3.01. 
  
 “Rating Agency” shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., Moody’s Investors Service, Inc. or any Successor of either, or any other nationally-recognized rating agency. 
  
 “Related Documents” shall mean with respect to each Loan and related Note, the security agreement, assignment and guarantees
substantially in the forms included in Exhibit C hereto, and any other loan agreement, mortgage, assignment of lease and other document, instrument or assignment reasonably acceptable to the Buyer, including all amendments or modifications of any of
the foregoing (other than the Supply Agreement between such Obligor and Unified) executed by the Obligor or other Person on Obligor’s behalf in respect of such Loan and related Note. 
  
 “Repurchase Amount” shall mean the amount set forth as such in Section 2.02(d). 
  
 “Repurchased Loans” shall mean all Loans purchased by the
Seller through a payment of Repurchase Proceeds pursuant to Sections 2.02(d), 4.04(a), 7.01, 7.02 and 9.02. 
  
 “Repurchase Proceeds” shall mean the amounts received from Seller with respect to a Repurchased Loan. 
  
 “Responsible Officer” shall mean, when used with respect to
the Buyer, Servicer, Guarantor or Seller, any vice chairman of the executive committee, the president, any vice president (whether or not designated by numbers or words added before or after the title “vice president”), the secretary or
the treasurer. 
  
 “Restructured Loan” shall mean
any Defaulted Loan the terms of which are modified in accordance with Section 5.05. 
  
 “Scheduled Payment” shall mean the regularly scheduled payment of principal and/or interest required to be made by an Obligor on a Loan pursuant to the terms of the related Note. 
  
 “Seller” shall mean GCC. 
  
 “Separate Account” shall have the meaning given in Section
5.07 hereof. 
  

 -12- 

 “Servicer” shall mean GCC or its successor (including a Successor Servicer) under
Section 5.05 or 5.13. 
  
 “Servicer Default”
shall mean any act or occurrence described as a Servicer Default under Section 8.01 hereof. 
  
 “Servicing Account” shall mean the Servicing Account established pursuant to Section 5.07 of this Agreement, which may be a Separate Account as required pursuant to Section 5.07, 5.13 or 8.02.

  
 “Servicing Fee” shall have the meaning given
in Section 5.08(c) hereof. 
  
 “Servicing
Officer” shall mean any officer of the Servicer, or any agent of the Servicer involved in, or responsible for, the administration or servicing of the Loans whose names appear on the list of servicing officers furnished to the Buyer by the
Servicer in the certificate pursuant to Section 5.01(d), as such list may from time to time be amended. 
  
 “Subsidiary” shall mean, with respect to any Person, any corporation or other entity of which securities or other ownership interests
having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person. 
  
 “Successor” shall mean, for any corporation or banking association, any successor by merger or
consolidation, or by acquisition of substantially all of the assets of the predecessor. 
  
 “Successor Servicer” shall mean any successor Servicer appointed pursuant to Section 5.13 or Section 8.02(a) of this Agreement. 
  
 “Supply Agreement” shall mean, either individually or collectively, all agreements between an Obligor and
Unified, with respect to the supply of goods and services by Unified to such Obligor. 
  
 “Termination Date” shall mean the first date on which each Loan shall have been (i) paid in full, or (ii) repurchased by Seller pursuant to Section 2.02(d), 4.04, 7.01, 7.02 or 9.02 hereof.

  
 “Termination Event” shall have the meaning
given in Section 9.01. 
  
 “Transfer Letter”
shall mean the transfer letter relating to the Servicing Account described in Section 3.04(i) hereof. 
  
 “Unfunded Vested Liability” shall mean, for any Plan at any time, the amount (if any) by which the present value of all vested
nonforfeitable accrued benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a
potential liability of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA. 
  

 -13- 

 “Unified” shall mean Unified Western Grocers, Inc., a California corporation, and the
direct and indirect owner of 100% of the outstanding capital stock of Seller. 
  
 “Unified Patron” shall mean a member-patron of Unified. 
  
 “URI” shall mean United Resources, Inc., an Oregon corporation. 
  
 “Welfare Plan” shall mean a “welfare plan” as defined in Section 3(1) of ERISA. 
  
 SECTION 1.02 General Principles Applicable to Definitions. Definitions
given in Section 1.01 shall be equally applicable to both singular and plural forms of the terms therein defined and references herein to “he” or “it” shall be applicable to Persons whether masculine, feminine or neuter.
References to an Article, a Section, a Schedule or an Exhibit is a reference to an article or section of the particular agreement in which the reference appears, or a schedule or an exhibit to the particular agreement in which such reference
appears, respectively, unless otherwise stated. References herein to any document including, without limitation, this Agreement, a Loan, a Note and a Related Document shall be deemed a reference to such document as it now exists, and as, from time
to time hereafter, the same may be amended. 
  
 SECTION 1.03
Accounting Terms. Except as otherwise provided herein, accounting terms not specifically defined shall be construed, and all accounting procedures shall be performed, in accordance with generally accepted United States accounting principles
(“GAAP”) consistently applied. 
  
 SECTION 1.04
Interpretation. 
  
 This Agreement was drafted with the joint
participation of the parties hereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning hereof. 
  
 [End of Article I] 
  

 -14- 

 ARTICLE II 
  
 THE COMMITMENT 
  
 SECTION 2.01 Loans Sold and Purchased as of the Effectiveness Date; Origination of Loans. The parties hereto acknowledge that Seller has assigned,
sold, transferred and otherwise conveyed each of the Amended and Restated Loans to Buyer pursuant to the Amended and Restated Loan Purchase and Servicing Agreement. Upon the Effectiveness Date, each of the Amended and Restated Loans shall, for all
purposes hereof, be deemed to be “Loans” hereunder. In addition, during the term of this Agreement, GCC agrees to originate loans with the view to selling such loans to the Buyer hereunder, provided that nothing herein is intended
to prevent Seller from making loans not expected to be sold and/or not sold to Buyer pursuant to this Agreement, and further provided that Seller may sell loans not sold to Buyer under this Agreement to third parties with the prior
written consent of Buyer, which consent shall not be unreasonably withheld. In determining whether to approve any potential loan with a view to selling such loan to the Buyer pursuant to this Agreement, the Seller shall apply the eligible loan,
credit and underwriting standards set forth in this Agreement, as well as information known to the Seller from, among other things, its current and previous business dealings with a potential Obligor. The Seller shall only originate and sell, and
the Buyer shall only be obligated to purchase, Loans and Property related thereto satisfying the eligibility, credit, underwriting and other criteria set forth in this Agreement, to the extent such Loans are offered for sale and purchased hereunder;
provided, that the Buyer may, but shall be under no obligation to, purchase Loans not meeting such criteria (each Loan so purchased, a “Non-Conforming Loan”) so long as the criteria not met by each Non-Conforming Loan are set forth
in a certificate of a Responsible Officer of Seller delivered to Buyer on or prior to the date of Buyer’s purchase of each Non-Conforming Loan. 
  
 SECTION 2.02 Agreement to Purchase and Sell Loans. 
  
 (a) On each Incremental Purchase Date, Seller does hereby irrevocably assign, sell, set-over, transfer and otherwise convey to the Buyer, without recourse
(but subject to Seller’s covenants, representations, warranties and indemnities specifically provided herein), the following (collectively the “Property”): all of Seller’s right, title and interest (whether now existing or
hereafter acquired) in, to and under (i) each Loan purchased on such date and any and all moneys of whatsoever nature payable pursuant to each such Loan on and after such date, including all payments thereon and in respect of the related Note, all
Insurance Proceeds, any Net Liquidation Proceeds, other Collections, and any other amounts payable in connection with the termination of such Loan, in each case, whether or not paid or received (ii) all rights, powers, and remedies of Seller under
or in connection with each such Loan, whether arising under the terms of such Loan, by statute, at law or in equity, or otherwise arising out of any default by the Obligor under such Loan, including all rights to exercise any election or option or
to make any decision or determination or to give or receive any notice, consent, approval or waiver thereunder, (iii) all security interests and lien rights of Seller in each item of Collateral pledged to secure any such Loan, all additions,
alterations, accessions or modifications thereto or replacement of any part thereof, and all intangibles and other rights associated with the Collateral, (iv) all rights of Seller under each Related Document, in each case as the same may be
modified, amended, supplemented or restated 
  

 -15- 

 from time to time, (v) all documents of title, books and records concerning the foregoing property (including all
computer programs, tapes, disks and related items containing any such information), and (vi) all proceeds, products, rents or profits of the foregoing of any nature whatsoever, including all Insurance Proceeds and Net Liquidation Proceeds. The
foregoing transfer, sale, assignment and conveyance does not constitute and is not intended to result in the creation, or an assumption by the Buyer, of any obligation of Seller or any other Person in connection with any Loan, the related Note,
Related Documents or Collateral or under any agreement or instrument relating thereto, including any obligation to any Obligor. 
  
 (b) In connection with each transfer, sale and assignment of Loans hereunder, the Seller hereby agrees to deliver to the Buyer or its agent on or before
the applicable Incremental Purchase Date, all loan files, documents and instruments with respect to each Loan transferred and sold on such Incremental Purchase Date, which Loan Files shall include, but not be limited to, the following (collectively,
the “Loan Files”): 
  
 (i) the original
Note related to such Loan, endorsed by Seller as follows: “Pay to the order of National Consumer Cooperative Bank, without recourse” and signed by a Responsible Officer of Seller, with all prior and intervening endorsements showing a
complete chain of endorsement from the originator to Seller, if Seller was not the originator; 
  
 (ii) the executed original counterparts of the Related Documents, together with executed originals of all modifications or amendments
thereof; 
  
 (iii) an irrevocable power of
attorney of Seller to the Buyer to execute, deliver, file, record or otherwise deal with the Collateral for such Loan in accordance with this Agreement. Certain rights under the power of attorney will be delegated by the Buyer to the Servicer to
permit the Servicer, on Buyer’s behalf, to prepare, execute and file of record UCC financing statements and other notices; 
  
 (iv) all documents evidencing or related to any insurance policies; and 
  
 (v) with respect to Loans secured by mortgages on real property, (A) either: (i) the original mortgage, with
evidence of recording thereon, (ii) a copy of the mortgage certified as a true copy by a Responsible Officer of Seller where the original has been transmitted for recording until such time as the original is returned by the public recording officer
or duly licensed title or escrow officer or (iii) a copy of the mortgage in those instances where the original recorded mortgage has been lost; and (B) either: (i) originals of all intervening assignments, if any, showing a complete chain of title
from the originator to Seller, including warehousing assignments, with evidence of recording thereon if such assignments were recorded, (ii) copies of any assignments certified as true copies by a Responsible Officer of Seller where the originals
have been submitted for recording until such time as the 
  

 -16- 

 originals are returned by the public recording officer, or (iii) copies of any assignments in any
instances where the original recorded assignments have been lost; and (C) any available Minimum Documentation and any other documentation in Seller’s possession in respect of such real property. 
  
 (c) It is the intention of the parties to this Agreement that each conveyance
of Seller’s right, title and interest in and to the Property pursuant to this Agreement shall constitute a purchase and sale and not a loan. If, notwithstanding the foregoing, the conveyance of the Property to the Buyer hereunder is
characterized by any third party as a pledge, the parties intend that Seller shall be deemed hereunder to have granted to the Buyer a first priority perfected security interest in all of Seller’s right, title and interest in, to and under the
Loans, the Notes, the related Collateral and Related Documents, and all monies due or to become due with respect thereto after the applicable Incremental Purchase Date, and that this Agreement shall constitute a security agreement under applicable
law. The Seller shall take all steps necessary and desirable, or as otherwise may be requested by Buyer, to reflect the Buyer’s security interest in and to and lien on the Loans and Property. 
  
 (d) If the Buyer determines that any documents or documents constituting a
part of a Loan File are missing (other than the original Note or original security agreement) or defective (that is, mutilated, damaged, defaced, incomplete, improperly dated, clearly forged or otherwise physically altered) with respect to any Loan
in any respect which materially and adversely affects the interests of the Buyer, then the Buyer shall within 10 Business Days notify Seller, whereupon Seller shall have a period of 30 days within which to correct or cure any such defect. If any
such material defect (other than a defect, with respect to a Non-Conforming Loan, which has been disclosed to Buyer in accordance with Section 2.01 hereof) has not been corrected or cured in all material respects, notwithstanding any other provision
of this Agreement, Seller shall repurchase the related Loan from the Buyer at a price equal to the sum of (i) the Principal Balance of such Loan as of the first day of the Due Period during which such repurchase occurs and (ii) an amount equal to
interest accrued at the applicable Loan Interest Rate on such Repurchased Loan to, but not including, the day on which such repurchase occurs (the “Repurchase Amount”). The Repurchase Amount shall be paid by Seller to the Buyer in
immediately available funds within 10 days of the day after which such repurchase obligation arises and, upon receipt by the Buyer of such amount, the Buyer shall release or cause to be released to the Seller the related Loan Files and shall execute
and deliver or cause to be executed and delivered such instruments of transfer or assignment of such Loan, the security interest in the related Property, in each case without recourse, representation or warranty, as Seller shall reasonably request
(as shall be prepared by and at the expense of Seller). It is understood and agreed that the obligation of Seller to repurchase any Loan as to which a material defect in a constituent document exists and to make the related payments as described in
this Section 2.02(d), together with the indemnification rights contained in Section 10.02 and the right of Buyer to be reimbursed for reasonable fees and expenses incurred in effecting this repurchase, shall, constitute the sole remedies against
Seller available to the Buyer with respect to each such defective Loan. 
  
 SECTION 2.03 Incremental Purchase. (a) Each of the parties hereby agrees that, subject to Section 2.01 and to the other terms and conditions hereof, until the Commitment Termination Date, the Seller may from time to time on the first
Business Day of 
  

 -17- 

 any month after the Effectiveness Date, elect to offer to sell to the Buyer and Buyer shall purchase certain identified
loans out of GCC’s portfolio and the Property related thereto, all on the terms and conditions set forth in this Agreement (each, an “Incremental Purchase”). Notwithstanding the foregoing, the Buyer shall not be obligated to make an
Incremental Purchase for a principal amount of less than $2,500,000 (or such other lesser amount as is approved by Buyer) other than the final Incremental Purchase which may be in such lesser amount as remains of the Maximum Purchase Amount. In
addition the Buyer shall not be obligated to make an Incremental Purchase (or any portion thereof) to the extent the aggregate Principal Balance of all Loans (after giving effect to the Loans to be purchased on such Incremental Purchase Date)
purchased hereunder would exceed the Maximum Purchase Amount. 
  
 (b) Subject to satisfaction of all of the applicable terms and conditions hereof (including, without limitation, Section 3.03(m)), until the Commitment Termination Date, the Buyer shall from time to time make Incremental Purchases of
Expansion Loans and the Property related thereto, all on the terms and conditions set forth in this Agreement. Notwithstanding the foregoing, the Buyer shall not be obligated to make an Incremental Purchase of any Expansion Loan for a principal
amount of less than $250,000 (or such lesser amount as is approved by the Buyer) other than the final Incremental Purchase of any Expansion Loan which may be in an amount equal to $5,000,000 minus the aggregate Principal Balance of all Expansion
Loans. In addition, the Buyer shall not be obligated to make an Incremental Purchase of Expansion Loans to the extent the aggregate Principal Balance of (i) all Expansion Loans (after giving effect to the Expansion Loans to be purchased on such
Incremental Purchase Date) would exceed $5,000,000 or (ii) all Loans (after giving effect to all Loans (including Expansion Loans) to be purchased on such Incremental Purchase Date) would exceed the Maximum Purchase Amount. 
  
 (c) The Seller shall provide the Buyer with written notice of its intention
to request an Incremental Purchase in the form of Exhibit D hereto no later than five (5) Business Days (or such shorter period as may be acceptable to Buyer) before each Incremental Purchase. Upon satisfaction of all terms and conditions contained
herein, including under Section 2.02, Buyer shall pay to the Seller the Purchase Price of each Incremental Purchase on the applicable Incremental Purchase Date. 
  

SECTION 2.04 Commitment Termination Date. Unless earlier terminated in accordance with Section 10.13, the initial “Commitment Termination
Date” is June 9, 2007, and the Commitment Termination Date may be extended by mutual agreement of the parties. The Seller and the Buyer may agree at any time to set an earlier Commitment Termination Date. 
  
 [End of Article II] 
  

 -18- 

 ARTICLE III 
  
 CLOSING PROCEDURE; CONDITIONS TO PURCHASE 
  
 SECTION 3.01 Payment. Subject to Sections 3.03 and 3.04, the Buyer shall pay in immediately available funds to Seller, on or before 12:00 noon
Washington, D.C. time, on each Incremental Purchase Date, the sum of 100% of the Principal Balance of each Loan (calculated as of such date, without giving effect to any payment due or received on such date) sold by the Seller to Buyer on such
Incremental Purchase Date (each such sum, collectively, the “Purchase Price”). 
  
 SECTION 3.02 Effective Date. Each sale made pursuant to the Amended and Restated Loan Purchase and Servicing Agreement was effective in accordance with its respective terms, and all right, title and interest in
the Amended and Restated Loans and the related Property passed to Buyer thereunder. Each sale made pursuant to Sections 2.01 and 2.03 shall be effective, and all right, title and interest in the Loans (other than the Amended and Restated Loans) and
the related Property so sold shall pass to the Buyer, at such time as Buyer shall pay the Purchase Price in respect thereof. 
  
 SECTION 3.03 Buyer’s Conditions Precedent to Acceptance. The obligation of Buyer to pay the Purchase Price on each Incremental Purchase Date
is subject to the fulfillment on or before such Incremental Purchase Date of each of the following conditions (each relating only to the Loans and related Property purchased on such date): 
  
 (a) Buyer shall have received the original Notes and such Notes shall have
been duly endorsed by Seller without recourse or warranty except as provided herein, and Buyer shall have received the Related Documents; 
  
 (b) Buyer shall have received the original executed counterpart of each Related Document and all other Property with respect to each Loan (or, to the
extent more than one original counterpart exists, all original executed counterparts of such agreements and Related Documents that are in the possession of the Seller or any of its Affiliates), and each such Related Document shall be in a form
reasonably satisfactory to Buyer; 
  
 (c) With respect to Loans
secured by mortgages on real property, Buyer shall have received (A) either: (i) the original mortgage, with evidence of recording thereon, (ii) a copy of the mortgage certified as a true copy by a Responsible Officer of Seller where the original
has been transmitted for recording until such time as the original is returned by the public recording officer or duly licensed title or escrow officer or (iii) a copy of the mortgage in those instances where the original recorded mortgage has been
lost, as so certified by the Seller; and (B) either: (i) originals of all intervening assignments, if any, showing a complete chain of title from the originator to Seller, including warehousing assignments, with evidence of recording thereon if such
assignments were recorded, (ii) copies of any assignments certified as true copies by a Responsible Officer of Seller where the originals have been submitted for recording until such time as the originals are returned by the public recording
officer, or (iii) copies of any assignments in any instances where the original recorded assignments have been lost, as so certified by the Seller; and (C) all available Minimum Documentation and all other documentation with respect to each Loan;

  

 -19- 

 (d) The Seller and all secured parties and assignees, if applicable, shall have consented to the filing
of, and the Buyer shall have received, Uniform Commercial Code financing statements on Form UCC-3 (or such other UCC form as required by applicable law) designating the Seller: (i) as “Assignor” evidencing the assignment to the Buyer by
Seller of all security interests in personal property arising in favor of Seller under the Related Documents, and in the Collateral relating to the Loans (other than security interests in Cooperative Assets); and (ii) as “Borrower/Debtor”
evidencing the release of the lien of the Agent as “Lender/Secured Party” under any loan or credit agreement among GCC, as borrower, lenders party thereto, and NCB as agent and/or lender; and (iii) as “Borrower/Debtor” evidencing
the release and discharge of each and every lien, charge, mortgage, encumbrance and right of any other Person or with respect to the Collateral; in each case, in form and content sufficient for filing with the applicable location for central filing
in each state where a related form UCC-1 (or such other UCC form as required by applicable law) is filed; 
  
 (e) The Buyer shall have received evidence satisfactory to Buyer in its sole discretion that the security interests arising in its favor under this
Agreement in the Loans, related Notes, related Collateral (other than Collateral which is not governed by the Uniform Commercial Code unless Buyer, in its sole discretion, requires otherwise), the Related Documents and the proceeds thereof have been
duly perfected by the filing of all such Uniform Commercial Code financing statements and the taking of all such other or additional acts as may be necessary to create a valid and perfected lien of first priority enforceable against all third
parties (other than (i) prior lien holders in the case of Collateral which is not Primary Collateral (but only to the extent such lien holders’ liens arise with respect to obligations of an Obligor) and (ii) in Collateral which is not governed
by the Uniform Commercial Code) in all jurisdictions to secure all of Seller’s obligations to Buyer; 
  
 (f) No Termination Event, and no event which with the giving of notice or passage of time or both would constitute a Termination Event shall have occurred
and be continuing, and a Responsible Officer of Seller shall have so certified to Buyer in writing; 
  
 (g) Each applicable representation and warranty of the Seller set forth in Section 4.01 or 4.02 shall be true and correct in all material respects, and a
duly Responsible Officer of Seller shall have so certified to Buyer in writing in substantially the form of Exhibit E hereto; 
  
 (h) Each representation and warranty of Guarantor set forth in Section 3.1 of the Guaranty Agreement hereof shall be true and correct in all material
respects, and a duly Responsible Officer of Guarantor shall have so certified to Buyer in writing in substantially the form of Exhibit F hereto; 
  
 (i) Each representation and warranty of Servicer set forth in Section 5.12 shall be true and correct in all material respects, and a duly Responsible
Officer of Servicer shall have so certified to Buyer in writing in substantially the form of Exhibit G hereto; 
  

 -20- 

 (j) Buyer shall have received the Loan Schedule relating to the Loans purchased on the applicable
Incremental Purchase Date required by this Agreement; 
  
 (k)
Buyer shall have received personal credit reports relating to each Obligor for each Loan purchased on the applicable Incremental Purchase Date; 
  
 (l) With respect to any Loan other than an Expansion Loan, Buyer shall have received on such Incremental Purchase Date from Seller financial and other
documentation (including, if permitted by the Buyer, projections) supporting the Seller’s calculation of Cash Flow Ratio and Collateral Coverage Ratio; 
  
 (m) With respect to any Expansion Loan, Buyer shall have received on such Incremental Purchase Date projections, in form and substance reasonably
satisfactory to Buyer, prepared by the Seller (together with such back up and other work product as the Buyer may reasonably request) demonstrating that, on the Expansion Loan Repurchase Date, the Cash Flow Ratio for the related Obligor will be at
least 1.1:1, the Collateral Coverage Ratio for such Expansion Loan will be at least 1:1 and the related Obligor will have a positive net worth (with respect to each Expansion Loan, the “Expansion Loan Projections”); and 
  
 (n) No “Event of Default” under (and as defined in) the Credit
Agreement shall have occurred and be continuing. 
  
 SECTION 3.04
Additional Delivery Requirements for Effectiveness Date. The obligation of the Buyer to perform any of its obligations under this Agreement shall be subject to the satisfaction of each of the following delivery requirements on or before the
Effectiveness Date (or on or before the other date specified below) to the reasonable satisfaction of Buyer: 
  
 (a) Buyer shall have received the following agreements, each duly executed by the parties (other than Buyer) thereto: 
  
 (i) this Agreement and the Guaranty Agreement; and

  
 (ii) such other agreements and instruments as
the Buyer shall reasonably require; 
  
 (b) The Buyer shall have
received a Uniform Commercial Code financing statement on Form UCC-l naming Buyer as “Secured Party” and Seller as “Debtor” covering the Loans (including the Amended and Restated Loans) sold and to be sold hereunder, related
Notes, related Collateral, the Related Documents and the proceeds thereof, in form and content sufficient for filing in the State of California; 
  
 (c) Buyer shall have received an opinion of counsel for GCC dated such date and in a form reasonably acceptable to Buyer, including an opinion to the
effect that this Agreement and the Guaranty Agreement are the legal, valid and binding obligations of GCC, enforceable against GCC under the laws of the State of California (provided that such opinion need not express an opinion as to the
characterization of the transactions contemplated hereby); 
  

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 (d) Buyer shall have received in form and substance reasonably satisfactory to it a certified copy of a
resolution adopted by the Board of Directors of GCC, authorizing the execution, delivery and performance of this Agreement and the Guaranty Agreement and the endorsement and sale of the Notes hereunder, together with evidence of the authority and
specimen signatures of the persons who have signed this Agreement and the Guaranty Agreement and endorsed the Notes on behalf of GCC and such other evidence of corporate authority as Buyer may reasonably require; 
  
 (e) Buyer shall have received an officer’s certificate from GCC in a
form reasonably acceptable to Buyer; 
  
 (f) Buyer shall have
received certified copies of request for information or copies (Form UCC-11 or such other UCC form as required by applicable law) (or a similar search report certified by parties acceptable to the Buyer) dated a date reasonably near the date hereof
listing all effective financing statements which name GCC (under its present name or any previous or “doing business” name) as transferor or debtor and which are filed in California and in any other jurisdiction as reasonably requested by
Buyer, together with copies of such financing statements; 
  
 (g)
Buyer shall have received evidence of the establishment of the Servicing Account and the creation of a first priority perfected security interest therein in favor of Buyer; 
  
 (h) Buyer shall have received a duly certified copy of the executed Operating Agreement (which shall require Unified to
maintain a $15,000,000 minimum tangible net worth of GCC) and the Investment Agreement; 
  
 (i) Buyer shall have received a signed and undated transfer letter relating to the Servicing Account, directing the bank which holds the Servicing Account to transfer all rights in such Account to the Buyer upon
receipt of notice of the occurrence of a Servicer Default (the “Transfer Letter”); and 
  
 (j) Seller shall have satisfied the conditions set forth in Sections 3.03(a) through (f) and (j). 
  
 [End of Article III] 
  

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 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 4.01 Seller’s Corporate Representations and Warranties. Seller represents and warrants to Buyer as of the Effectiveness Date, as of
each Incremental Purchase Date and as of the date of execution of this Agreement as follows: 
  
 (a) Seller is a corporation duly incorporated, validly existing and in good standing under the laws of the State of California, is doing business only under the name “Grocers Capital Company”, and is
qualified to do business in each other jurisdiction where the conduct of its business or the ownership of its properties requires such qualification, and has full corporate power, authority and legal right to carry on its business as presently
conducted, to own and operate its properties and assets, to execute, deliver and perform this Agreement and to sell the Loans and related Property. 
  
 (b) The execution, delivery and performance by the Seller of this Agreement and any assignment, any endorsement of the Notes and the sale of any Loans,
related Notes and Related Documents and the security interest in the related Collateral hereunder have been duly authorized by all necessary corporate action of Seller, do not require any shareholder approval or the approval or consent of any
trustee or the holders of any Debt of Seller, except such as have been obtained (certified copies thereof having been delivered to Buyer), do not contravene any law, regulation, rule or order binding on it or its Articles of Incorporation or Bylaws
and do not contravene the provisions of or constitute a default under any indenture, mortgage, contract or other agreement or instrument to which Seller is a party or by which Seller or any of the Loans, related Notes or Related Documents may be
bound or affected. 
  
 (c) No Government Approval or filing or
registration with any Governmental Authority is required for the making and performance by Seller of this Agreement or any assignment or the endorsement of the Notes or in connection with the sale of the Loans and related Property contemplated
hereby, except such as have been heretofore obtained and are in full force and effect (certified copies thereof having been delivered to Buyer). 
  
 (d) This Agreement has been duly executed and delivered by Seller and constitutes, and any assignment and any endorsement of a Note when duly executed and
delivered will constitute, the legal, valid and binding obligation of the Seller enforceable against Seller in accordance with its terms, except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether considered in a proceeding or action in equity or at law). 
  
 (e) There are no actions, proceedings, investigations, or claims against or affecting Seller now pending before any court,
arbitrator or other Governmental Authority (nor to the knowledge of Seller has any thereof been threatened nor does any basis exist therefor) which if determined adversely to the Seller would be likely to have a material adverse effect on the
financial condition or operations of Seller or on Seller’s ability to perform its obligations under this Agreement. 
  

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 (f) The consolidated balance sheet of each of Unified and its Subsidiaries and of the Seller and its
Subsidiaries at December 31, 2003, and the related statements of income and retained earnings of each of Unified and its Subsidiaries and of Seller and its Subsidiaries for their respective fiscal periods then ended, copies of which have been
furnished to Buyer, fairly present the financial condition of each of Unified and its Subsidiaries and of Seller and its Subsidiaries as at such date and the results of operations of each of Unified and its Subsidiaries and of Seller and its
Subsidiaries for their respective fiscal periods then ended, all in accordance with GAAP consistently applied (except for the absence of footnote disclosures). Since that date, there has been no material adverse change in the financial condition or
operations of either of Unified or its Subsidiaries or of Seller or any of its Subsidiaries. 
  
 (g) Seller has good and marketable title to each of the properties and assets reflected in its balance sheet referred to in Section 4.01(f) except such as have been since sold or otherwise disposed of in the ordinary
course of business. 
  
 (h) Neither Seller nor any of its
Subsidiaries is in material breach of or default under any agreement or agreements to which it is a party or which are binding on it or any of its assets and which provide for the payment of monies, the delivery of goods or the provision of services
in amounts or with values in the aggregate in excess of $500,000. 
  
 (i) Seller and each other member of its Controlled Group has fulfilled its obligations under the minimum funding standards of and is in compliance in all material respects with ERISA and the Code to the extent applicable to it and has not
incurred any liability to the PBGC or a Plan under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. Neither the Seller nor any other member of its Controlled Group has any contingent liabilities with
respect to any post retirement benefits under a Welfare Plan, other than liability for continuation coverage described in Article 6 of Title I of ERISA, which may reasonably be expected to have a material adverse effect. 
  
 (j) Uniform Commercial Code financing statements have been duly filed in all
places where filing is necessary and all other or additional acts have been taken as are necessary to perfect the Buyer’s interests arising hereunder and under the assignments in and to the Loans and related Property and the lien created hereby
constitutes a valid and perfected lien of first priority in and to all of the Loans and related Property (other than in Collateral which is not Primary Collateral or is not governed by the Uniform Commercial Code, in which case the Buyer has only
such interest as the Seller had and disclosed to the Buyer on the applicable Incremental Purchase Date and other than Seller’s security interest in Cooperative Assets) and is enforceable against all third parties (other than third parties whose
interests in Collateral which is not Primary Collateral are prior to Seller’s interests therein on the applicable Incremental Purchase Date) in all jurisdictions as security for all obligations of the Seller to the Buyer under this Agreement.

  

 -24- 

 (k) Seller’s chief executive offices and the offices where such Seller keeps records concerning the
Loans and related Property are located at 5200 Sheila Street, Commerce, California 90040 or such other location to which such offices are moved pursuant to Section 6.01(m) hereof. 
  
 (l) This Agreement, the financial statements referred to in Section 4.01(f) and all other instruments, documents,
certificates and statements furnished to the Buyer by the Seller, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements contained herein or therein not
misleading. 
  
 (m) The Operating Agreement and the Investment
Agreement are in full force and effect. 
  
 (n) No “Event of
Default” under (and as defined in) the Credit Agreement shall have occurred and be continuing. 
  
 SECTION 4.02 Seller’s Incremental Purchase Date Representations and Warranties with respect to Loans. Seller represents and warrants to Buyer
as of each Incremental Purchase Date with respect to Loans transferred and sold on such Incremental Purchase Date as follows: 
  
 (a) The information with respect to each Loan set forth in the applicable Loan Schedule, together with any documentation supporting such information, is
true and correct in all material respects; 
  
 (b) With respect to
each Loan, there exists only one original Note. Such original Note and all of the other original or certified documentation set forth in Sections 2.02 and 3.03 (including the Loan Files and all material documents related thereto) have been, or shall
have been on the applicable Incremental Purchase Date, delivered to the Buyer; 
  
 (c) Each Loan was originated in the United States and Scheduled Payments on such Loan are payable in U.S. Dollars by an Obligor domiciled in the United States; 
  
 (d) Each Note has a Loan Interest Rate that is (i) a variable rate based on
the Prime Rate adjusted at least annually after a change in the Prime Rate, with a minimum Loan Interest Rate equal to the Prime Rate minus 100 basis points or (ii) a fixed rate that, as of the date on which such Loan was originated, was not less
than the Prime Rate minus 100 basis points. 
  
 (e) Immediately
prior to and as of each sale, transfer and assignment to the Buyer herein contemplated, the Seller held good and indefeasible title to, and was the sole owner of, each Loan conveyed by Seller, subject to no liens, charges, mortgages, encumbrances or
rights of others or other liens (including any lien released simultaneously with such transfer and assignment, in favor of the Agent) of any kind whatsoever and immediately upon the transfer and assignment herein contemplated, the Buyer will hold
good and indefeasible title, to, and be the sole owner of, each Loan subject to no liens, charges, mortgages, encumbrances or rights of others of any kind whatsoever; 
  

 -25- 

 (f) No Loan is delinquent (after giving effect to any applicable grace period) in payment, and no Loan
shall have been delinquent during the six-month period immediately preceding such Incremental Purchase Date (after giving effect to any applicable grace period) for a period in excess of 45 days or shall have ever demonstrated a pattern of repeated
delinquencies; 
  
 (g) There is no other default, breach,
violation or event of acceleration existing under the Loan, related Note or Related Document and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or
event of acceleration, and the Seller has not waived any such default, breach, violation or event of acceleration that would otherwise exist; 
  
 (h) No Loan is subordinate by its terms to any Debt of the related Obligor; and no Loan is subordinate to any Debt of the related Obligor except as to
such Debt that is secured by collateral with a value equal to or greater than the amount of such Debt, which collateral is entirely separate and distinct from the Collateral securing such Loan; and each Loan is not subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury, nor will the operation of any of the terms of the related Note, Related Document or any related Collateral, or the exercise of any right thereunder, render either the
related Note, Related Document or any related Collateral unenforceable in whole or in part, or subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no such right of rescission, set-off,
counterclaim or defense has been asserted with respect thereto; 
  
 (i) Each Loan (other than an Expansion Loan) at the time it was made and as of the applicable Incremental Purchase Date complied in all material respects with the Seller’s Credit and Collection Policy, and each Loan complied in all
material respects with applicable state and federal laws and regulations, including, without limitation, usury, equal credit opportunity, disclosure and recording laws; 
  
 (j) The Obligor with respect to each Loan (i) is not an Affiliate of the Seller, (ii) is a Unified Patron in good standing,
(iii) to the best of Seller’s knowledge, shall have provided to Seller complete and accurate information, including a personal credit report, relating to Obligor’s financial condition, and (iv) shall have suffered no material adverse
changes in its financial condition or otherwise since the date the Loan was originated; 
  
 (k) Each Loan had an original term to maturity of no greater than seven (7) years; 
  
 (l) The Note related to each Loan provides that the principal be amortized no less frequently than quarterly over the term of such Note with an
amortization period of no greater than 10 years; provided, however, notwithstanding the foregoing, the Note related to each Loan may require the payment of interest only for a period of up to 12 months from the date of origination of
the related Loan, and may provide for a balloon payment of up to three years of principal on the maturity date of the related Loan; 
  

 -26- 

 (m) Each Loan, related Note, related Collateral and Related Documents pursuant to which Collateral is
pledged to Seller is the legal, valid and binding obligation of the Obligor thereof and is enforceable in accordance with its terms, except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether considered in a proceeding or action in equity or at law), and all parties to each Loan had full legal capacity to execute all
Related Documents and convey the property therein purported to be conveyed; 
  
 (n) The terms of the Loan, related Note and each Related Document pursuant to which Collateral was pledged have not been impaired, altered or modified, except by written instrument which has been recorded, if
necessary, to protect the interest of the Buyer and which has been delivered to the Buyer; 
  
 (o) The proceeds of each Loan were fully disbursed before the applicable Incremental Purchase Date, and there is no obligation on the part of the Seller to make future advances thereunder. Any and all requirements as
to disbursements of any escrow funds therefor have been complied with. All costs, fees and expenses incurred in making or closing or recording the Loans were paid; 
  
 (p) The Obligor with respect to each Loan (other than an Expansion Loan) has provided information to Seller (which has been
delivered to Buyer on or before such Incremental Purchase Date) evidencing that such Obligor has a positive net worth or, in the case of an Expansion Loan, the Seller has prepared and delivered to the Buyer the related Expansion Loan Projections
evidencing that the Obligor with respect to such Expansion Loan will have a positive net worth on the related Expansion Loan Repurchase Date. To the best of Seller’s knowledge, each Obligor is not the subject of any bankruptcy proceeding, and
has no present intention to seek relief under the federal bankruptcy laws; 
  
 (q) The Obligor and/or the Loan Guarantor with respect to each Loan and related Property is personally liable for the payment and performance of its obligations under such Loan, and such personal liability has been
either (i) in the case of an Obligor or Loan Guarantor who is a married individual, acknowledged or guaranteed by the spouse of such Obligor or Loan Guarantor or (ii) in the case of a corporate Obligor or Loan Guarantor, approved by a majority of
the stockholders of such corporate Obligor or Loan Guarantor. Pursuant to the terms of each Loan, each of the Obligor and the Loan Guarantor thereunder is absolutely required to make all payments and perform all obligations due pursuant to such Loan
without abatement, deferment or defense of any kind or for any reason (except as the same may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application relating to or affecting creditors rights and by
general principles of equity); 
  
 (r) The Collateral covered by
or securing the obligations under each Loan is insured by an insurance company rated at least “B-” by Best & Co. against loss by fire and such other hazards as are customary for personal property of the same or similar type, such
insurance being in an amount not less than the Principal Balance of such Loan as of the applicable Incremental Purchase Date subject to customary deductibles and the Seller and/or the Buyer is designated as loss payee under such policies;

  

 -27- 

 (s) Each Loan requires each of the Obligor and Loan Guarantor thereunder at its own costs and expense to
maintain the Collateral pledged to secure the related Loan in good repair, condition and working order, and to the knowledge of the Seller, each Obligor and Loan Guarantor under a Loan is currently in compliance with this requirement; 
  
 (t) Each Loan (other than an Expansion Loan) has a Collateral Coverage Ratio
of at least 1:1 and the related Obligor has a Cash Flow Ratio of at least 1.1:1 or, in the case of an Expansion Loan, the related Expansion Loan Projections evidence that such Expansion Loan will have a Collateral Coverage Ratio of at least 1:1 on
the Expansion Loan Repurchase Date and the related Obligor will have a Cash Flow Ratio of at least 1.1:1 on the Expansion Loan Repurchase Date; 
  
 (u) All Collateral securing any Loan is located in the United States. Collateral shall be valued in accordance with the provisions set forth in the
definition of “Collateral Coverage Ratio”; 
  
 (v)
Seller has, or on the applicable Incremental Purchase Date will have, (i) a first priority perfected security interest in each item of Primary Collateral, free from any lien, security interest, encumbrance or other right, title or interest of any
Person, and (ii) a perfected security interest in each other item of Collateral, subject to the prior liens, security interests and encumbrances existing on, and identified to and approved by the Buyer on the applicable Incremental Purchase Date.
Seller shall, on the applicable Incremental Purchase Date, transfer its security interest in the Primary Collateral and such other Collateral as is governed by the Uniform Commercial Code or as is required by Buyer, subject however to the rights of
the holder of title in and to such Collateral and of the Obligors in such Collateral pledged under the Related Documents (and, in the case of Collateral which is not Primary Collateral, holders of prior liens), and Seller, as agent for the Buyer,
shall defend the Buyer’s security interest in and to Collateral against all claims and demands of all Persons at any time claiming the same or any interest therein adverse to that of the Obligors or the Buyer (except to the extent such
Person’s claims and demands arise out of security interests permitted herein); 
  
 (w) The Notes and Related Documents delivered to Buyer on the applicable Incremental Purchase Date are true, correct, and complete original counterparts of all instruments and documents evidencing or in any way
relating to the Loan and related indebtedness referred to therein; except as approved by the Buyer, such Notes and Related Documents are in substantially the form of the documents attached hereto as Exhibit C; except as included with the instruments
and documents so delivered, such Notes and such Related Documents have not been amended; and each such Note and Related Document to which Obligor or Loan Guarantor is a party bears the original signature of such Obligor and Loan Guarantor;

  
 (x) Uniform Commercial Code financing statements have been
duly filed in all places where filing is necessary, and all other or additional acts have been taken as are 
  

 -28- 

 necessary to perfect Seller’s security interests arising pursuant to the Related Documents in the Primary Collateral
and such other Collateral as is governed by the Uniform Commercial Code; 
  
 (y) Seller has heretofore caused all copies of the Loans, related Notes and Related Documents in its possession to be separately identified and distinguished from Seller’s other loans, and on the applicable
Incremental Purchase Date, the Seller will cause each copy of each Note, related Collateral and Related Document in its possession to be identified with an appropriate legend clearly disclosing the fact that such Loan, the related Notes, Related
Documents and the Seller’s security interest in the related Collateral have been sold and assigned to the Buyer and the Buyer is the owner thereof, and any original copies of any Note, related Collateral or Related Document coming into the
possession of the Seller will be delivered to the Buyer; 
  
 (z)
(i) The Obligor shall not have been delinquent on its payment obligation on an open account (after giving effect to any applicable grace period) for a period in excess of 45 days, and (ii) neither the Obligor nor any member of its Obligor Group
shall have defaulted on any recourse obligation to Seller, any Subsidiary of Seller or Unified; 
  
 (aa) With respect to each Loan, either (i) the related Obligor has owned grocery stores which have operated as such for at least 1 year or (ii) the
grocery store to which such Loan relates has operated as such for at least 1 year; 
  
 (bb) The proceeds of the Loan are not being used to satisfy the related Obligor’s personal needs and the purpose for which the Loan was made was to finance or refinance capital or leasehold improvements,
equipment, inventory and other term working capital, and acquisitions, expansions or renovations for a new or existing store, including the cost of land, construction and real estate; 
  
 (cc) With respect to each Loan which is secured by a mortgage on the lease of the related grocery store, such lease (with
any options) must be at least coterminous with such Loan; 
  
 (dd)
Either (i) the Obligor and Loan Guarantor have, under the terms of each Loan, consented to a sale and assignment of the Loan, the related Note and Related Documents and the sale or grant of a security interest in and to the Loan and the Collateral
relating thereto, including any subsequent resale and reassignment, or (ii) none of the Loan, the related Note or any Related Documents requires the consent, approval or notice to the Obligor or Loan Guarantor with respect to the assignment and
transfer by Seller of Seller’s right, title and interest in and to the Loan, the related Note, any Related Document and Collateral; 
  
 (ee) With respect to an Expansion Loan, the Expansion Loan Projections for such Expansion Loan delivered pursuant to Section 3.03(m) have been prepared by
Seller on a basis consistent with the preparation of its historical financial statements (except as described in such projections) and are based on good faith estimates and assumptions of management of Seller, and Seller has no reason to believe
that such estimates and assumptions are not reasonable; and 
  

 -29- 

 (ff) Seller has used its best efforts to obtain, with respect to each Loan secured by Collateral that
includes inventory or equipment located at a store location leased or subleased by the Obligor, a collateral assignment of the lease or sublease with all necessary consents of lessors or sublessors, as applicable. 
  
 SECTION 4.03 Buyer’s Representations and Warranties. Buyer
represents and warrants to Seller as follows: 
  
 (a) Buyer is a
financial institution duly organized, validly existing and in good standing under the laws of the United States of America, and has full corporate power, authority and legal right to execute, deliver and perform this Agreement and to purchase the
Loans and related Property; 
  
 (b) Execution, delivery and
performance by Buyer of this Agreement and the purchase of the Loans and related Property hereunder have been duly authorized by all necessary corporate action of Buyer, do not require any shareholder approval or the approval or consent of any
trustee or the holders of any Debt of Buyer, do not contravene the Bank Act or any other law, regulation, rule or order binding on it or its Charter or Bylaws and do not contravene the provisions of or constitute a default under any indenture,
mortgage, contract or other agreement or instrument to which Buyer is a party or by which Buyer or any of its properties may be bound or affected; 
  
 (c) No Government Approval or filing or registration with any Governmental Authority is required for the making and performance by Buyer of this Agreement
or in connection with any of the transactions contemplated hereby; and 
  
 (d) This Agreement has been duly executed and delivered by Buyer and constitutes the legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms. 
  
 SECTION 4.04 Repurchase Upon Breach of Certain Representations and
Warranties. (a) The applicable representations and warranties and agreements of the Seller set forth in Sections 4.01 and 4.02 (as excepted from with respect to any Non-Conforming Loan as set forth in Section 2.01) with respect to the Seller and
each Loan and related Property shall continue so long as such Loan remains outstanding. Upon discovery by Seller, Servicer or Buyer that any of such representations or warranties was incorrect as of the time made, the party making such discovery
shall give prompt notice to the other parties. In the event any defect, misrepresentation or omission materially and adversely affects the interest of the Buyer, the Seller shall eliminate or cure the circumstance or condition causing the defect
within 30 days of the discovery thereof (except with respect to breaches of any of the representations or warranties in Sections 4.02(a), (b), (c), (1), (n), (s), (u), (v), (w) and (x), as to which the cure period shall be 10 days, and with respect
to breaches of any representations or warranties in Sections 4.02(e) and (v) with respect to the Amended and Restated Loans, as to which there shall be no cure period). 
  

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 (b) The Seller shall repurchase an affected Loan or group of Loans and the related Property if the Seller
cannot or does not effect a cure of any defect, misrepresentation or omission in any representation or warranty in Sections 4.01 and 4.02 within the time period specified therefor in Section 4.04(a). 
  
 (c) Any such repurchase of a Loan and the related Property by Seller pursuant
to Section 4.04(b) shall be accomplished in the manner set forth in Section 2.02(d) and at a price equal to the Repurchase Amount. 
  
 SECTION 4.05 Survival of Representations. Each of the representations and warranties of GCC, in whatever capacity made or given, made or given in
or under this Agreement shall survive the execution and delivery hereof and of the document, instrument or agreement executed and/or delivered hereunder in which so made or given. 
  
 [End of Article IV] 
  

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 ARTICLE V 
  
 SERVICING AND COLLECTION 
  
 Subject to the provisions of Section 8.03, at all times prior to the later of (a) the Termination Date or (b) the date on which all obligations of the
Seller under this Agreement have been performed in full, the following terms and provisions of this Article V shall apply. 
  
 SECTION 5.01 Servicing; Delegation of Authority to Buyer and Servicer. (a) The Buyer appoints the Servicer to act as the Buyer’s exclusive
agent for performing all of the servicing and administrative functions with respect to the Loans, the related Notes, the Related Documents and the related Collateral not specifically reserved to the Buyer pursuant to subsection (b) of this Section
5.01. The Servicer hereby accepts such appointment and agrees to perform such Loan servicing and administrative duties as are specifically enumerated herein as well as those not reserved to the Buyer pursuant to subsection (b). 
  
 (b) The Buyer reserves the right to perform, and the Servicer shall have no
obligation to perform, the following servicing and administrative functions with respect to the Loans and this Agreement: (i) determining the amount to be claimed on the Guaranty from time to time and the Guaranty Amount from time to time; and (ii)
calculating monthly, in connection with each Payment Date, the Applicable Rate. 
  
 (c) The Servicer shall use the same diligence and practices in servicing the Loans, the related Collateral and the Related Documents as it uses in servicing and collecting indebtedness evidenced by notes and related
documents held for its own account and, in any event, shall endeavor to collect or cause to be collected from each Obligor the amounts as and when due and owing under such Obligor’s Note and Related Documents. In performing its duties
hereunder, and subject to the specific limitations set forth herein, Servicer shall act in accordance with its Credit and Collection Policy and shall take such actions with respect to the Loans, Notes and Related Documents as, in its reasonable
business judgment, it may deem advisable to maintain or enhance receipt of timely Collections thereunder. Promptly upon the request of Servicer, Buyer agrees to execute and deliver such documents and take such further acts (at Servicer’s
expense) as Servicer may reasonably request to confirm and evidence the agency granted to Servicer pursuant to this Section 5.01. 
  
 (d) Promptly after the execution and delivery of this Agreement, the Servicer shall deliver to the Buyer a list certified by its secretary or one of its
assistant secretaries of the Servicing Officers and employees of the Servicer involved in or responsible for, the administration and servicing of the Loans, which list shall from time to time be updated by the Servicer and which may be relied upon
until so updated; provided that if the Servicer has previously provided such a list to the Buyer and such list does not require updating, the Servicer shall confirm the accuracy of the previously-delivered list. 
  
 SECTION 5.02 Maintenance of System; Collection and Maintenance of
Information. (a) Servicer shall arrange and maintain with respect to the Loans, related Notes and Related Documents, data processing, accounting and related services adequate for the effective and timely performance of its servicing obligations
hereunder in accordance with good business practices and in compliance with all applicable federal, state and local laws and regulations. 
  

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 (b) Servicer shall collect the following information with respect to each Obligor Group obligated on one
or more Loans which, either individually or in the aggregate, have a Principal Balance greater than: 
  
 (i) $250,000, within 120 days of the end of each fiscal year of such Obligor Group, the Obligor Financial Statements, together with, upon the Buyer’s
request therefor, a certificate of an authorized officer of such Obligor Group, to the effect that the accompanying financial statements are true and correct in all material respects; 
  
 (ii) $500,000 but less than $1,000,000, in addition to the annual financial statements set forth in clause (i) above, within
50 days of the end of the second fiscal quarter of such Obligor Group, interim Obligor Financial Statements for such Obligor Group’s first and second fiscal quarters, together with, upon the Buyer’s request therefor, a certificate of an
authorized officer of such Obligor Group, to the effect that the accompanying interim financial statements are true and correct in all material respects; and 
  
 (iii) $1,000,000, in addition to the annual financial statements set forth in clause (i) above, within 50 days of the end of each fiscal quarter of such
Obligor Group, interim Obligor Financial Statements, together with, upon the Buyer’s request therefor, a certificate of an authorized officer of such Obligor Group, to the effect that the accompanying interim financial statements are true and
correct in all material respects. 
  
 In addition, Servicer shall collect evidence
of adequate insurance with respect to the Collateral securing the Loans. Servicer shall maintain the foregoing information and shall make the same available to the Buyer or its nominees or agents upon reasonable request. 
  
 SECTION 5.03 Maintenance of Lien Priority. So long as Servicer is
required to act as Buyer’s exclusive agent for performing certain servicing obligations with respect to the Loans, Servicer agrees to take all actions, including lien searches and continuation statement filings, necessary or desirable to ensure
that the liens arising pursuant to the Related Documents and securing repayment of any Obligor’s indebtedness evidenced by a related Note will be maintained as continuously perfected first priority (except in the case of Collateral which is not
Primary Collateral, in which event the Servicer shall take all actions to maintain the priority sold and assigned hereunder) security interests (except as otherwise approved by Buyer) in all applicable jurisdictions. 
  
 SECTION 5.04 Obligor Inquiries; Credit and Collection Policies. (a)
Servicer agrees to accept primary responsibility for telephonic and face-to-face communications with Obligors concerning the Loans, related Notes and related Collateral. In the event Obligor inquiries require consideration by the Buyer, the Servicer
agrees to coordinate with the Buyer and the Obligors so as to provide prompt and appropriate responses to Obligors’ inquiries or concerns. 
  
 (b) Servicer agrees to follow, maintain and apply the credit, extension and collection policies identified in the Credit and Collection Policy in all
material respects unless 
  

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 any order of any court, arbitrator or other Governmental Authority or any determination of or change in any applicable
federal, state or local law or regulation should require otherwise or unless Buyer shall otherwise consent in writing, which consent will not be unreasonably withheld. Notwithstanding any other provision herein to the contrary, Servicer is not
authorized to and agrees that it shall not, without the Buyer’s prior written consent (which consent shall not be unreasonably withheld), (i) amend, extend, release, modify, or waive the terms or conditions of any Loan, related Note or of any
Related Document; (ii) release any Collateral pledged in support of any Obligor’s obligations under a Note or Related Document (other than Cooperative Assets); or (iii) grant or permit to be granted any rebate, refund, credit or other
adjustment in respect of an Obligor’s obligation under any Note or any Related Document. 
  
 SECTION 5.05 Obligor Defaults. Servicer agrees to promptly give any notice to an Obligor required to commence the running of any applicable cure period following a default in the performance by Obligor of its
obligations under the Loan, the related Note and Related Documents. If an Obligor Default shall occur and be continuing or if a Loan shall otherwise become a Defaulted Loan, Servicer shall promptly undertake the collection of such Obligor’s
indebtedness in accordance with the Credit and Collection Policy and shall develop, if necessary, after consultation with the Buyer, a strategy for liquidating the Collateral with respect to such Loan; provided, however, that the
Servicer may modify the terms of a Defaulted Loan with the prior written consent of the Buyer, which consent shall not be unreasonably withheld. Servicer shall commence liquidation of the Collateral pledged to secure such Obligor’s obligations
under its Defaulted Loan within 90 days after the occurrence of such Obligor’s default or upon a Loan becoming a Defaulted Loan, unless (a) Servicer, with the consent of Buyer, has determined to modify the terms of a Defaulted Loan or (b) Buyer
directs the Servicer to do otherwise or (c) Servicer receives notice from the Seller of its repurchase of such Loan pursuant to Section 7.01 of this Agreement. Buyer shall promptly notify Servicer of any payment default by an Obligor under a Note of
which it obtains knowledge and Servicer shall promptly notify Buyer, Seller and Guarantor of the occurrence of any payment or other Obligor Default or of a Loan becoming a Defaulted Loan. In its efforts to collect the indebtedness evidenced by any
Note, Servicer shall in all events proceed in good faith and in a commercially reasonable manner, and, when seeking to realize on Collateral pledged by any Obligor, shall proceed in such a fashion as to preserve to Buyer its rights to seek
collection of a deficiency against such Obligor if the sale of the Collateral is insufficient to pay such Obligor’s obligations in full, unless (i) Buyer has consented to proceeding in a manner that does not result in preserving the right to
collect a deficiency or (ii) such right is of minor practical value. 
  
 Notwithstanding any other provision in this Agreement to the contrary, Buyer shall have the right, at its sole discretion, to assume the servicing obligations of the Servicer hereunder in connection with the liquidation of a Defaulted Loan
and related Property and Servicer shall cooperate with Buyer in effecting such transfer of obligations and liquidation of Collateral. If Buyer assumes the servicing obligations with respect to the liquidation of a Defaulted Loan, Buyer shall proceed
as a prudent and experienced servicer would under the circumstances and shall be entitled to reimbursement for its reasonable fees and expenses in performing such obligations in accordance with Section 5.08 hereof, and Servicer shall have no further
responsibilities hereunder with respect to the servicing of such Loan. 
  

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 SECTION 5.06 Servicer Reports; Annual Audit. (a) On the second Business Day preceding each Payment
Date, Servicer shall deliver to Buyer a Monthly Report relating to the Loans and the preceding Due Period. The Servicer shall include in the Monthly Report (i) a statement as to any event occurring during the preceding Due Period of which Servicer
has actual knowledge which materially impairs or might reasonably be expected to materially impair any Obligor’s ability to repay the Debt relating to any Loan and evidenced by a Note or to perform its obligations under any Related Document or
which has or might reasonably be expected to substantially reduce the value of the Collateral or to impair the Buyer’s lien thereon. Together with the Monthly Report delivered in each of April, July, October and January, each Servicer shall
deliver to Buyer a certification to the effect that a review of the activities of such Servicer during the immediately preceding calendar quarter and of its performance under this Agreement during such period has been made under the supervision of
the officers executing such certificate with a view to determining whether during such period the Servicer had performed and observed all of its obligations under this Agreement, and either (A) stating that based on such review no Servicer Default
under this Agreement has occurred, or (B) if a Servicer Default has occurred, specifying such Servicer Default and the nature and status thereof. In addition to the foregoing, from time to time upon request of Buyer, the Servicer will deliver to
Buyer such other statements, lists, reports and other information as the Buyer may reasonably request, and, to the extent any such information must be obtained by Servicer from a third party, as the Servicer may reasonably be expected to obtain.

  
 (b) The Servicer shall promptly notify the Buyer if any of the
following events occurs: (i) a Defaulted Loan becomes or is deemed to be a Liquidated Loan and the amount of Liquidation Loss thereon, (ii) the Seller fails to pay any Repurchase Amount when due, or (iii) the Guarantor fails to pay on the Guaranty
when due. 
  
 (c) Buyer shall have the right during
Servicer’s regular business hours and upon reasonable prior notice to Servicer to conduct an audit (not more frequently than once in any twelve-month period unless a Servicer Default then exists) of the Loans, Related Documents and all other
documents and files relating thereto. Servicer agrees to reimburse Buyer for the cost of such audit up to $5,000 per audit plus all reasonable out-of-pocket expenses actually incurred by or on behalf of Buyer in connection with each such audit.

  
 SECTION 5.07 Loan and Other Payments. (a) Unless
otherwise notified by Buyer, Servicer shall receive directly all payments with respect to the Loans, and such payments, which shall be held by Servicer, as agent for the Buyer, shall include: 
  
 (i) all Scheduled Payments and Payaheads received from the
Obligors; 
  
 (ii) all Principal Prepayments;

  
 (iii) all Insurance Proceeds and all
Liquidation Proceeds; and 
  

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 (iv) all payments made by the Seller or the Servicer under this Agreement or the
Guarantor under the Guaranty Agreement to be paid to Servicer, including Guaranty Payments and Repurchase Amounts. 
  
 (b) The Servicer shall establish and maintain an account in a bank acceptable to the Buyer for the purpose of holding all payments received with respect
to the Loans and of remitting the amounts described in Section 5.08 (the “Servicing Account”). The Servicing Account shall be maintained in the name of GCC, as Servicer, for the benefit of the Buyer and shall be subject to a first priority
perfected security interest in favor of Buyer. Monies received with respect to the Loans shall be deposited into the Servicing Account on a daily basis within 24 hours of receipt thereof. The parties hereby acknowledge that the Servicer shall have
no obligation to restrict amounts on deposit therein to amounts constituting Property, but may deposit amounts and proceeds in respect of loans and other property not constituting Loans; provided, however, that such right of the
Servicer shall be subject to the continued existence and maintenance of a first priority perfected security interest of Buyer in and to such Servicing Account. If (i) Buyer at any time ceases to have a first priority perfected security interest in
and to the Servicing Account, or (ii) upon the occurrence of a Servicer Default, the Buyer may deliver notice to the Servicer to establish a Separate Account as the Servicing Account, and upon receipt of such notice the Servicer shall establish such
a Separate Account, for the purpose of holding all payments, as described in Section 5.07(a) or otherwise received in respect of the Loans and related Property, segregated and separate from all of the Servicer’s other accounts and other funds
(such account, a “Separate Account”). The Servicer may also, at any time, establish a Separate Account to serve as the Servicing Account. If the Servicing Account is a Separate Account, in the event there shall have been deposited in the
Servicing Account any amount not required to be deposited therein and so identified to the Buyer, including (i) any payments received from any source other than payments made in respect of the Loans, the related Notes, Related Documents and related
Collateral, (ii) payments with respect to the Loans, related Notes, Related Documents and related Collateral due before the applicable Incremental Purchase Date, and (iii) payments received in respect of the Loans following the repurchase thereof by
Seller pursuant to this Agreement, such amounts shall be withdrawn from the Servicing Account and paid to the Seller. Monies in the Servicing Account may be invested in any combination of investment-grade securities, money market funds, bank
deposits and certificates of deposits, in each case that are scheduled to mature no later than the Business Day on which such amounts are required to be paid to Buyer, and any net income from such investments may be retained by the Servicer as an
additional servicing fee. 
  
 (c) [Intentionally Omitted.]

  
 (d) Upon the occurrence of a Servicer Default, Buyer may
forward the Transfer Letter to the bank holding the Servicing Account and obtain control of the Servicing Account. The Buyer, upon obtaining control of the Servicing Account, may, in its sole discretion, either (i) maintain the Servicing Account, or
(ii) if such Servicing Account is not a Separate Account, establish a Separate Account and transfer all amounts in the Servicing Account received with respect, or otherwise related to, the Loans and related Property. Notwithstanding any action it
takes under this Section 5.07(d), the Buyer shall have no liability to any Person, including, without limitation, GCC (in any capacity), entitled to or 
  

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 having any ownership or security interest in or to the Servicing Account or any amounts or funds on deposit therein, and
the Buyer shall have no responsibility with respect to such other amounts and funds in the Servicing Account except, after its distribution on each Payment Date of the amounts as set forth in Section 5.08, to remit to GCC any amounts or funds then
on deposit in such account that GCC can identify (to the Buyer’s sole satisfaction) as not constituting payments in respect of Loans or any Property, and not otherwise constituting Property, or proceeds of Loans or Collateral. The Servicer
shall cooperate fully with the Buyer in respect of its control of the Servicing Account, and in respect of its establishment and control of a Separate Account as the Servicing Account. 
  
 SECTION 5.08 Computation and Payment of Periodic Payments, Servicing Fees and Guaranty Fees; Servicer’s
Expenses. 
  
 (a) On each Determination Date and with respect
to the related Payment Date, Servicer shall determine (i) the Periodic Payment (including the Monthly Interest Amount) to be paid to Buyer, (ii) the Servicing Fee to be paid to Servicer, and (iii) the Guaranty Fee to be paid to Guarantor, and shall
notify the Servicer in writing of such amounts. Buyer shall have the right at any time to object to or question the Periodic Payment, the Servicing Fee and the Guaranty Fee as determined by Servicer. Servicer agrees to cooperate fully with Buyer to
resolve promptly any such objection or question and, if any such resolution involves the payment of additional amounts to Buyer, to pay promptly such amounts. 
  

(b) No later than 12:00 noon, Washington, D.C. time on each Payment Date, the Servicer shall remit to the Buyer the Periodic Payment by payment in
immediately available funds to PNC BANK, in Philadelphia, Pennsylvania, ABA# 031000053, Account Number 8501299449, Account Name: NCB Mortgage Corp. Clearing, Ref: GCC Loan Purchase Program. 
  
 (c) Unless and until a Servicer Default or Guarantor Default shall have
occurred, on each Payment Date, the Servicer shall also remit as directed by Buyer pursuant to (a) above, (i) to Servicer the Servicing Fee and (ii) to Guarantor, the Guaranty Fee. The monthly “Servicing Fee” shall be an amount equal to
the sum of, for each Loan, the product of (i) 0.50%, times (ii) the outstanding Principal Balance of such Loan as of the first day of the related Due Period (or, in the case of a Loan purchased during such Due Period, as of the Incremental Purchase
Date of such Loan), times (iii) a fraction, the denominator of which is 360 and the numerator of which is the actual number of days in the related Due Period (the “Servicing Fee”). The Guaranty and Servicing Fees shall be calculated in a
manner consistent with the interest accrual method applicable to each individual Loan. Notwithstanding the foregoing, upon the occurrence of a Servicer Default, Servicer shall no longer be entitled to the Servicing Fee and upon the occurrence of a
Guarantor Default, the Guarantor shall no longer be entitled to the Guaranty Fee, and in each such event, Buyer shall be entitled to retain the Servicing Fee or Guaranty Fee, as the case may be. 
  
 (d) Servicer shall determine the Periodic Payment for each Payment Date using
the following methodology. 
  

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 (1) As used herein and in the Guaranty Agreement, “Periodic Payment” means for
any Payment Date the sum of, for each Loan, (a) the principal portion (including any balloon payment) of the Scheduled Payment actually received during the related Due Period; (b) any Principal Prepayment, Payahead, and the principal portion of
Insurance Proceeds and Net Liquidation Proceeds, to the extent any of the foregoing are actually received during the related Due Period; (c) the principal portion of any Guaranty Payment or Repurchase Proceeds with respect to the related Due Period
and (d) the Monthly Interest Amount for the related Interest Accrual Period. 
  
 (2) As used herein and in the Guaranty Agreement, “Monthly Interest Amount” on any Payment Date shall mean an amount equal to the sum of, for each Loan, the product of (i) the outstanding Principal Balance
of such Loan as of the first day of the related Due Period (or, in the case of a Loan purchased during such Due Period, as of the Incremental Purchase Date of such Loan), times (ii) the Applicable Rate times (iii) a fraction, the denominator of
which is 360, and the numerator of which is the actual number of days in the related Interest Accrual Period. 
  
 SECTION 5.09 Applicable Rate. As used in this Agreement and in the Guaranty Agreement, the “Applicable Rate” for each Loan shall be
determined as follows. For each Interest Accrual Period, the Applicable Rate for each Loan shall mean an interest rate per annum equal to the sum of (a) the Margin and (b) LIBOR in effect on the applicable LIBOR Determination Date. The Applicable
Rate for each Loan shall be established as of each LIBOR Determination Date and shall be applicable for each of the Interest Accrual Periods within the next succeeding LIBOR Period without regard to changes thereafter occurring during such LIBOR
Period in the principal amounts outstanding under the Notes, in the Principal Balance of Loans purchased, or in LIBOR. 
  
 SECTION 5.10 Concerning Insurance on Collateral. 
  
 (a) The Servicer shall cause to be maintained, with respect to the Collateral, one or more insurance policies (which may be, collectively, the individual
policies of insurance required to be maintained by each Obligor, together with one or more blanket fire and extended coverage insurance policies covering the Collateral and other equipment of the Servicer similar to the Collateral) which provide at
least the same coverage as a fire and extended coverage insurance policy and naming the Seller or the Buyer or assigns as the loss payee. The Servicer shall take whatever actions are necessary to cause each insurer to recognize the Buyer or such
other Person to whom an interest in the Loans has been sold or assigned as assignee under the related insurance policy. Each such insurance policy shall be maintained in an amount which is at least equal to the lesser of (i) the Principal Balance as
of the applicable Incremental Purchase Date of the related Loan and (ii) the maximum insurable value, subject, in either case, to customary deductions. If amounts are received by the Servicer under any such insurance policies with respect to the
Collateral, the Servicer shall promptly deposit such amounts into the Servicing Account. 
  
 (b) If an insurer under an insurance policy shall deny coverage (in any such case prior to termination of such policy as a result of the payment by such insurer of an aggregate amount equal to its maximum liability
under such insurance policy), or shall refuse 
  

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 to honor a claim under any such insurance policy with respect to the Collateral on a Loan which becomes a Defaulted Loan
for reasons relating to such claim, and, if adjudicated, if such denial or refusal is determined by a court of competent jurisdiction to have resulted from the Servicer’s failure to comply with the requirements of such insurance policy, then
the amount of any resulting unpaid claim shall be deemed to be collected as a recovery on the Loan with respect to which such denial or refusal arose, on or before the last day of the Due Period during which such denial or refusal occurs, and
Servicer shall be obligated to deposit such “deemed Collection” into the Servicing Account. 
  
 (c) On the Incremental Purchase Date with respect to each Loan, the insurance policies with respect to the Collateral for such Loan are required to be
provided by insurance companies rated at least “B-” by Best & Co. If (i) the Buyer or the Servicer shall determine that an insurer’s rating has dropped below “B-” or that the financial condition of any insurer might
jeopardize recoveries under such an insurance policy or (ii) any such insurance policy is cancelled or terminated for any reason other than the exhaustion of total coverage issued by an insurance company with the requisite rating and financial
soundness, then, in each such case, the Servicer shall use its best efforts to obtain from another insurer a replacement policy for each such insurance policy, which replacement policy shall be issued by an insurance company with the requisite
rating and financial soundness and shall be substantially similar to the insurance policy being replaced with coverage equal to the then existing coverage of such insurance policy. 
  
 (d) The Servicer shall promptly notify the Buyer of the occurrence of any event described in subsection 5.10(b) or (c).

  
 (e) In the Monthly Report, Servicer shall certify that except
as to Loans identified therein (together with a status report on effort to obtain insurance thereon), the Collateral related to each Loan is covered under an insurance policy or policies satisfying the requirements set forth in subsection 5.10(a).

  
 SECTION 5.11 Access to Certain Documentation and Certain
Information Regarding the Loans. The Servicer will provide to the Buyer and its nominees and agents access to the documentation in its possession regarding the Loans, such access being afforded without charge but only during normal business
hours at the offices of the Servicer or its designee or agent, as designated by the Servicer. 
  
 SECTION 5.12 Servicer Representations and Warranties. The Servicer hereby represents and warrants, and agrees as of the date of execution of this Agreement as follows: 
  
 (a) The Servicer is duly organized and is validly existing and in good
standing as a California corporation, with corporate power and authority to own its properties and to transact the business in which it is now engaged, and the Servicer is duly qualified to do business and is in good standing in each State of the
United States where the nature of its business requires it to be so qualified. 
  

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 (b) The execution, delivery and performance of the Servicer’s obligations under this Agreement, and
the consummation of the transactions herein contemplated will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance
upon any of the property or assets of the Servicer or any of its Subsidiaries in contravention of, any indenture, mortgage, deed of trust, loan agreement or other agreement (other than this Agreement) or instrument to which it or any of its
Subsidiaries is a party or by which it or any of its Subsidiaries is bound or to which any of its property or assets is subject, nor will such action result in any violation of the provisions of its Articles of Incorporation or By-Laws or any
statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over it or any of its properties; and no consent, approval, authorization, order, registration or qualification of or with any court or any such
regulatory authority or other governmental agency or body is required for the consummation of the other transactions contemplated by this Agreement. 
  
 (c) This Agreement has been duly authorized, executed and delivered by the Servicer and this Agreement is the valid and legally binding obligation of the
Servicer, enforceable against the Servicer in accordance with its terms, subject as to enforcement to bankruptcy, insolvency, reorganization and other similar laws of general applicability relating to or affecting creditors’ rights and to
general principles of equity. 
  
 (d) No Servicer Default under
Section 8.01, and no event that with notice or lapse of time or both would become a Servicer Default under this Agreement has occurred and is continuing. 
  
 SECTION 5.13 Servicer’s Resignation. (a) The Servicer may resign from the duties and obligations hereby imposed with the consent of the Buyer;
provided, that if the then-existing Servicing Account is not a Separate Account, the Servicer shall establish a Separate Account as the Servicing Account and transfer all amounts constituting Property to such Separate Account from the
then-existing Servicing Account. 
  
 (b) The Servicer may not
assign this Agreement or any of its rights, powers, duties or obligations hereunder, provided that the Servicer may, subject to the proviso in Section 5.13(a), assign this Agreement in connection with a consolidation, merger, conveyance, transfer or
lease made in compliance with Section 6.01(i). 
  
 (c) Except as
provided in Sections 5.13(a), 8.01 and 10.02, the duties and obligations of the Servicer under this Agreement shall continue until the Termination Date, and shall survive the exercise of any right or remedy under this Agreement by the Seller or
Buyer, and notwithstanding the provisions of Sections 5.13(a), 8.01 and 10.02, prior to the Termination Date, the Servicer shall continue to serve as Servicer hereunder until the Buyer accepts the duties of Servicer or a Successor Servicer shall be
appointed and assume the duties of Servicer hereunder. 
  
 [End of
Article V] 
  

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 ARTICLE VI 
  
 SELLER’S AND SERVICER’S COVENANTS 
  
 SECTION 6.01 Covenants. At all times prior to the later of (i) the Termination Date or (ii) the date on which all obligations of the Seller under
this Agreement and of the Guarantor under the Guaranty Agreement have been performed in full, each of Seller and Servicer agrees to do all of the following unless the Buyer shall otherwise consent in writing: 
  
 (a) Preservation of Corporate Existence, Etc. To preserve and
maintain its corporate existence (whether in the form of a cooperative or otherwise), rights, and privileges in the jurisdiction of its incorporation and will qualify and remain qualified as a foreign corporation in each jurisdiction where such
qualification is necessary or advisable in view of the business and operations of Seller or Servicer, as the case may be, or the ownership of its properties. 
  
 (b) Compliance with Laws. To comply in all material respects with all laws, regulations, rules and orders of Governmental Authorities applicable to
Seller or Servicer, as the case may be, or to its operations or property, except any thereof whose validity is being contested in good faith by appropriate proceedings upon stay of execution of the enforcement thereof. 
  
 (c) Other Obligations. To pay and discharge before the same shall
become delinquent (after giving effect to all applicable grace periods) all Debt, taxes and other obligations which, if unpaid, might become by law a lien upon the assets of Seller or Servicer, as the case may be, except any thereof whose validity
or amount is being contested in good faith by the Seller or Servicer, as the case may be, in appropriate proceedings, and except other Debt, taxes and other obligations which, in the aggregate do not exceed $500,000; provided, however,
the covenant included in this Section 6.01(c) shall not extend to any obligation of Seller or Servicer, as the case may be, identified in Sections 6.01(k) or 9.01(f). 
  
 (d) Visitation; Records; Files. At any reasonable time and from time to time, to permit Buyer and its agents to (i)
examine and make copies of Seller’s or Servicer’s records, as the case may be, and books of accounts relating to the Loans, the related Notes and Related Documents, (ii) visit the properties of the Seller or Servicer, as the case may be,
and (iii) discuss the affairs, finances and accounts of the Seller or Servicer, as the case may be, as they relate to the transactions contemplated by this Agreement with any of its officers. The Seller or Servicer will keep adequate records and
books of accounts in which complete entries will be made, in accordance with GAAP, reflecting all financial transactions of the Seller or Servicer, as the case may be, as they relate to the transactions contemplated by this Agreement. Without
limiting the foregoing, the Seller and Servicer shall establish and maintain manual or computer records reflecting all receipts or disbursements made or received in respect of the Loans or the related Notes which records will be maintained separate
from Seller’s or Servicer’s records, as the case may be, relating to loans or the related notes which are not Loans. All Loan Files maintained by the Seller or Servicer will be clearly marked to indicate that such Loans have been sold to
Buyer. 
  

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 (e) Financial Information. To deliver to Buyer (i) as soon as available and in any event within
120 days of the end of the fiscal year of GCC, a consolidated balance sheet of GCC and its Subsidiaries as of the end of such fiscal year, and the related consolidated statements of income, shareholders’ equity and cash flows of GCC and its
Subsidiaries for such fiscal year, prepared in accordance with GAAP consistently applied, all in reasonable detail and setting forth in comparative form the figures for the previous fiscal year, and accompanied by a report thereon of independent
certified public accountants of recognized national standing acceptable to Buyer, which report shall be unqualified as to scope of audit or the status of GCC and its Subsidiaries as a going concern, and shall state that such consolidated financial
statements present fairly the financial condition of GCC as at the dates indicated and the results of operations and changes in cash flows for the periods then ended in conformity with GAAP applied on a basis consistent with the previous years
(except as otherwise stated therein) together with a certificate of such independent public accountants stating that (1) their audit examination of GCC and its Subsidiaries has included a review of the terms of this Agreement as they relate to
accounting matters; (2) in the course of such audit examination, which audit was conducted by such accountants in accordance with generally accepted auditing standards, such accountants have obtained no knowledge that any Default has occurred and is
continuing, or, if such Default has occurred and is continuing, indicating the nature thereof; provided that such accountants shall not be liable by reason of any failure to obtain knowledge of any Default that would not be disclosed in the
course of their audit examination; (ii) within 120 days after the end of Unified’s fiscal year, the Annual Report on Form 10-K for such year filed by Unified and the Annual Shareholders Report for Unified; (iii) within 120 days after the end of
GCC’s fiscal year, a certificate signed by the chief financial officer of GCC, stating that as of the close of such fiscal year, no Termination Event or Servicer Default has occurred and is continuing; (iv) as soon as available and in any event
within 45 days after the end of each quarter, a consolidated balance sheet of GCC and its Subsidiaries as of the end of such quarter, and the related consolidated and consolidating statement of income of GCC and its Subsidiaries for such quarter and
the portion of the fiscal year through such quarter, prepared in accordance with GAAP consistently applied, all in reasonable detail and setting forth in comparative form (A) the figures for the corresponding period in the preceding fiscal year and
(B) the projected figures for the corresponding period contained in the forecast for the current fiscal year delivered to Buyer hereunder, together with a certificate of the chief financial officer of GCC stating that such financial statements
fairly present the financial position of GCC and its Subsidiaries as at such date and the results of operations of GCC and its Subsidiaries for the period ended on such date, and have been prepared in accordance with GAAP (except for the absence of
footnote disclosure) consistently applied, subject to changes for normal, year-end adjustments; (v) within 65 days after the end of Unified’s fiscal quarter, the Quarterly Report on Form 10-Q for such quarter filed by Unified; (vi) within 60
days after the end of each fiscal quarter of GCC, a certificate signed by GCC’s chief financial officer, to the effect that as of the end of such fiscal quarter, GCC, as Seller and Servicer hereunder and as Guarantor under the Guaranty
Agreement, has remained in compliance with its obligations hereunder and under the Guaranty Agreement; (vii) prompt notice of any material borrowings or material adverse changes in GCC’s financial condition; and (viii) such other statements,
reports and other information as Buyer may reasonably request concerning the financial condition and the servicing and collection operations of GCC. 
  

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 (f) Notification. (1) Promptly after learning thereof, to notify Buyer of (i) the details of any
action, proceeding, investigation or claim against or affecting the Seller or Servicer, as the case may be, instituted before any court, arbitrator or Governmental Authority or, to the Seller’s or Servicer’s knowledge, as the case may be,
threatened to be instituted, which, after taking into account the likelihood of success, might reasonably result in a judgment or order against the Seller or Servicer, as the case may be (in excess of insurance coverage and when combined with all
other pending or threatened claims), of more than $750,000; (ii) (A) the occurrence of any reportable event (as defined in ERISA) with respect to a Plan, other than events for which the PBGC has waived the notice requirements in its regulations, (B)
receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor, (C) its intention to terminate or withdraw from any Plan, and (D) the occurrence of any event with respect to any Plan which
would result in the incurrence by the Seller or any member of its Controlled Group of any material liability, fine or penalty, or any material increase in the contingent liability of the Seller or any member of its Controlled Group with respect to
any post retirement Welfare Plan benefit; (iii) any representation or warranty set forth in Section 4.01 or 4.02 (with respect to Seller and Loans) and Section 5.12 (with respect to Servicer) which proves to have been incorrect in any material
respect when made; (iv) Seller’s or Servicer’s material breach of its obligations under this Agreement; (v) any Obligor Default; (vi) any Loan that has become a Defaulted Loan; (vii) any circumstance or event of which Seller or Servicer
has actual knowledge which materially impairs or might reasonably be expected to impair an Obligor’s ability to repay or perform its obligations under, the related Loan (including, without limitation, (A) Obligor’s ceasing to be a Unified
Patron in good standing, becoming 30 days or more past due on its open account with Unified, or being required to pay cash on delivery for negative credit reasons or (B) default by Obligor or any Affiliate on a “recourse” obligation to
GCC); (viii) the occurrence of any Servicer Default or Termination Event or other event which, with notice or lapse of time or both, would constitute a Servicer Default or Termination Event; and (ix) the occurrence of any circumstance or event which
leads such Seller or Servicer to believe that an Expansion Loan (or the related Obligor) is not likely to meet the Expansion Loan Projections and, in any event, the occurrence from time to time of such Seller’s obligation to repurchase any
Expansion Loan pursuant to Section 7.03. 
  
 (2) Credit
Agreement Information. To the extent not otherwise required to be delivered hereunder, at the same time as delivered (or given) under the Credit Agreement, to deliver to Buyer copies of all written material, notices, certificates and other
information and data delivered (or given) under Section 8.5 of the Credit Agreement including, without limitation, all financial statements, certifications, compliance certificates, borrowing base certificates, reports and filings made with the
Securities and Exchange Commission or other Governmental Authorities, projections, management letters, and certificates delivered pursuant thereto. 
  
 (g) Additional Payments; Additional Acts. From time to time, to (i) pay or reimburse the Buyer on request for all taxes imposed on this Agreement
or the sale of any Loans hereunder (other than taxes based on Buyer’s net income, items of tax preference, or gross receipts); and (ii) obtain and promptly furnish to Buyer evidence of all such Government Approvals as may be required to enable
the Seller or Servicer, as the case may be, to comply with its obligations under this Agreement. 
  

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 (h) Liens. Not to create, assume or suffer to exist any lien, security interest or other
encumbrance except (A) liens on the Seller’s or Servicer’s properties, as the case may be, securing mortgage indebtedness relating to such properties, and any extensions, refinancing or renewals thereof in an amount not exceeding the
amount of such indebtedness prior to such extension, refinancing or renewal; (B) capital lease obligations; (C) liens to secure indebtedness for the deferred price of property acquired after the date hereof, but only if such liens are limited to
such property and its proceeds; (D) liens imposed by law (such as mechanic’s liens) incurred in good faith in the ordinary course of business which are not delinquent or which remain payable without penalty or the validity or amount of which
are being contested in good faith by appropriate proceeding upon stay of execution of the enforcement thereof; (E) deposits or pledges under workmen’s compensation, unemployment insurance, social security or similar laws or made to secure the
performance of bids, tenders, contracts (except for the repayment of borrowed money) or leases, or to secure statutory obligations or surety or appeal bonds or to secure indemnity, performance or other similar bonds given in the ordinary course of
business; (F) liens arising under the Portfolio Credit Facility; or (G) liens that are otherwise permitted under this Agreement. 
  
 (i) Liquidation, Merger, Sale of Assets, Etc. To not liquidate, dissolve or enter into any merger, consolidation, joint venture, partnership or
other combination nor sell, lease, dispose of such portion of its business or assets as constitutes a substantial portion thereof (excepting (i) sales of goods in the ordinary course of business, (ii) sales of assets made with notice to and the
consent of the Buyer (provided, that the Buyer’s consent shall not be required if such sale does not result in GCC’s Tangible Net Worth (as defined in the Operating Agreement) becoming less than $15,000,000 and (iii) sales of the
Loans to the Buyer or any Third Party Buyer (as such term is defined in the Portfolio Credit Facility), or their assignees or successors in interest; provided, however, so long as no Servicer Default or Termination Event or event which
with the passage of time or the giving of notice or both would constitute a Servicer Default or Termination Event shall have occurred and be continuing or will occur as a result of such merger or consolidation, Seller or Servicer, as the case may
be, may merge or consolidate with any Person or sell all or substantially all of its business or assets to any other Person so long as (A) (1) the Seller or Servicer, as the case may be, shall be the surviving or continuing corporation or (2), if
the Seller or Servicer, as the case may be, shall not be the surviving or continuing corporation or shall sell all or substantially all of its assets to a Person such surviving, continuing or purchasing Person shall be incorporated under the laws of
the United States or any jurisdiction thereof, shall assume in writing all obligations of the Seller or Servicer, as the case may be, under this Agreement, shall be eligible to borrow from NCB pursuant to the provisions of the Bank Act and shall
have a Consolidated Tangible Net Worth not less than the Seller or Servicer, as the case may be, prior to the merger or consolidation, and (B) at the time of such consolidation, merger or sale and after giving effect thereto no Servicer Default or
Termination Event shall have occurred and be continuing. 
  
 (j)
Transactions with Affiliates. To not directly or indirectly enter into or permit to exist any transaction (including, without limitation, the purchase, sale, lease or exchange of any property) with any of Seller’s or Servicer’s
Affiliates, as the case may be, on terms that are less favorable to Seller or Servicer, as the case may be, than those which might be obtained at the time from Persons who are not Affiliates, provided, however, that nothing in this
subsection shall prohibit the Operating Agreement or any loans made by Seller or Servicer to wholly owned, direct or indirect, subsidiaries of Unified in the ordinary course of its business. 
  

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 (k) ERISA Compliance. To cause each member of the Controlled Group to promptly pay and discharge
all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed may reasonably be expected to result in the imposition of a Lien against any of its Property. 
  
 (l) No Name Change, Etc. To not change its name, identity or corporate
structure in any manner which could make any financing or continuation statement filed hereunder seriously misleading within the meaning of Section 9-506 of any applicable enactment of the Uniform Commercial Code without giving Buyer at last 60 days
prior written notice thereof and unless prior thereto it shall have caused such financing statement or continuation statement to be amended or a new financing statement to be filed such that such financing statement or continuation statement would
not be seriously misleading. 
  
 (m) Relocation of Offices.
To give Buyer at least 60 days prior written notice of any relocation of its chief executive offices or the offices where records concerning the Loans and related Property are kept. 
  
 (n) Limitation on Transfers, Etc. To not transfer or attempt to transfer in any manner whatsoever to any Person other
than the Buyer pursuant to the terms of this Agreement, and, except in favor of the Buyer hereunder, to not create, cause to be created or permit any lien, pledge, charge, security interest, ownership interest, participation interest or any other
interest of any nature whatever in respect of the Loans and related Property, except to the extent permitted in this Agreement. 
  
 (o) No Changes. To make no change in the Credit and Collection Policy, which change would impair the collectibility of any material amount of the
Loans, and to make no material change in the Credit and Collection Policy or in its current payment terms with respect to Loans without prior written consent of the Buyer (which consent shall not be unreasonably withheld). 
  
 (p) Security Interest. To defend Buyer’s security interest in and
to the Collateral related to any Loan against all claims and demands of all Persons at any time claiming the same or any interest therein (i) adverse to that of Obligors or Buyer or (ii) prior to that of Buyer, except, in each case, to the extent
such Person’s claims and demands arise out of security interests in the Collateral permitted under this Agreement. Seller and Servicer further agree to take all actions to transfer to Buyer, at Buyer’s request, a security interest in all
or any specified portion of that Collateral securing any Loan which was not transferred to Buyer on the applicable Incremental Purchase Date (transferring to the Buyer the same interest as the Seller had and disclosed to the Buyer on the applicable
Incremental Purchase Date) and to provide evidence reasonably satisfactory to Buyer that all actions as are necessary or appropriate to perfect Buyer’s security interest in such Collateral have been taken. 
  

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 (q) Bank Act Eligibility. To use its best efforts to remain “eligible” to borrow from
NCB pursuant to the provisions of the Bank Act. 
  
 (r)
Operating and Investment Agreements. To use its best efforts to maintain the Operating Agreement and the Investment Agreement in full force and effect. 
  

(s) Concentration Limit. To not permit the aggregate Principal Balance of all Loans to an Obligor Group to exceed $4,000,000 at any time, unless
Seller discloses such excess in writing to Buyer at or prior to the time any such Loan is purchased by Buyer, provided, that nothing herein shall obligate Buyer to purchase any such Loan. 
  
 [End of Article VI] 
  

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 ARTICLE VII 
  
 SELLER OBLIGATIONS AND REPURCHASE OPTIONS 
  
 SECTION 7.01 Repurchase of Loans. In addition to the repurchase rights and obligations contained in Sections 2.02(d), 4.04(b), 7.02, 7.03, 7.04 and
9.02 of this Agreement, Buyer has the option to cause Seller to repurchase any Loan sold by Seller to Buyer if (i) the payments with respect to such Loan are past due at least 90 days, or (ii) an Obligor Default has occurred with respect to such
Loan and has at the time of Buyer’s exercise of such right been continuing for at least 60 days, or (iii) such Loan is a Restructured Loan that results in or with respect to which there are Modification Losses. Such Loan shall be repurchased by
Seller from Buyer by the last day of the Due Period during which Seller receives notice of Buyer’s election to cause the Loan to be repurchased. Any repurchase pursuant to this Section 7.01 shall be accomplished on the same terms as set forth
in the third and fourth sentences of Section 2.02(d) and at the Repurchase Amount. 
  
 SECTION 7.02 Minimal Balances. On any Payment Date, Seller may elect to repurchase all of the Loans then owned by the Buyer for an amount equal to the aggregate Principal Balance of the Loans, if as of such
Payment Date the aggregate Principal Balance of all such Loans is less than 10% of the aggregate total of all of the Principal Balances of each of the Loans, as calculated, in each case, on the Effectiveness Date or on the Incremental Purchase Date
applicable to such Loan, as the case may be. If Seller elects to repurchase all of the Loans pursuant to this Section 7.02, Seller shall provide Buyer and Servicer with 30 days prior written notice. The Repurchase Amount shall be paid by Seller to
Servicer in immediately available funds prior to 12:00 noon, Washington, D.C. time, on the designated Payment Date. Immediately upon the payment of the required Repurchase Amount, (i) all right, title and interest in the Loans being repurchased
shall pass to Seller and such Loans shall cease to be “Loans” for all purposes of this Agreement, and (ii) Buyer shall release or cause to be released to the Seller the related Loan Files and shall execute and deliver or cause to be
executed and delivered such instruments of transfer or assignment of such Loans and the security interests in the related Property as Seller shall reasonably request. Any resale of a Loan and related Property pursuant to the terms of this Section
7.02 shall constitute the simultaneous resale by Buyer and repurchase by Seller of all Loans and related Property. Any resale of a Loan and related Property pursuant to this Section 7.02 shall be without recourse or warranty of any kind except that
Buyer shall be deemed to have warranted that such Loans and related Property are free and clear of all liens or claims resulting from or arising out of its acts or omissions (other than acts of Buyer resulting from Seller’s or Servicer’s
failure to perform as required by this Agreement) or claims of Buyer’ s creditors. 
  
 SECTION 7.03 Repurchase of Expansion Loans. In addition to the repurchase rights and obligations contained in Sections 2.02(d), 4.04(b), 7.01, 7.02, 7.04 and 9.02 of this Agreement, Buyer has the option to
cause the Seller to repurchase any Expansion Loan sold by Seller to Buyer if, on the Expansion Loan Repurchase Date for such Expansion Loan (i) the Cash Flow Ratio for the related Obligor is less than 1.1:1, (ii) the Collateral Coverage Ratio for
such Expansion Loan is less than 1:1 or (iii) the related Obligor does not have a positive net worth. Such Expansion Loan shall be repurchased by the Seller from Buyer by the last day of the Due Period in which Seller receives notice of Buyer’s
election to 
  

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 cause the Loan to be repurchased. Any repurchase pursuant to this Section 7.03 shall be accomplished on the same terms as
set forth in the third and fourth sentences of Section 2.02(d) and at the Repurchase Amount therefor. 
  
 SECTION 7.04 Repurchase of Loans on the Seventh Anniversary of the Commitment Termination Date. In addition to the repurchase rights and
obligations contained in Sections 2.02(d), 4.04(b), 7.01, 7.02, 7.03 and 9.02, Buyer has the option to cause Seller to repurchase each Loan sold by Seller to Buyer if such Loan has not been paid in full by the seventh anniversary of the Commitment
Termination Date (or, if earlier, the seventh anniversary of the date on which the parties hereto agree to terminate this Agreement, provided that at such time of termination no Termination Event (or circumstance or event which with notice and/or
the passage of time would become a Termination Event) has then occurred). Any repurchase pursuant to this Section 7.04 shall be accomplished on the same terms as set forth in the third and fourth sentences of Section 2.02(d) and at the aggregate
Repurchase Amount for such Loans. 
  
 [End of Article VII]

  

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 ARTICLE VIII 
  
 SERVICER DEFAULT 
  
 SECTION 8.01 Servicer Defaults. Any of the following acts or occurrences shall constitute “Servicer Defaults” under this Agreement.

  
 (a) Payment Default. Any failure by the Servicer to
make any required payment, transfer, withdrawal or deposit or to give instructions or notice to the Buyer or by Seller to make any required payment, transfer, withdrawal or deposit on or before the date occurring three (3) Business Days after the
date such payment, transfer, deposit or withdrawal or such notice or instruction is required to be made or given, as the case may be, under the terms of this Agreement; 
  
 (b) Performance Default. Failure on the part of the Servicer or Seller to observe or perform in any material respect
any of the other covenants or agreements, including the providing of accurate and timely reports as required in Article V hereof and elsewhere in this Agreement and the establishment of a Separate Account when required by the terms hereof, to be
performed under this Agreement which failure continues unremedied for a period of 30 days after the date on which written notice of such failure requiring the same to be remedied shall have been given to the Servicer by the Buyer; 
  
 (c) Involuntary Bankruptcy, Etc. The entry of a decree or order for
(A) relief by a court having jurisdiction in respect of the Servicer or any of its Subsidiaries in an involuntary case under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy,
insolvency or similar law, (B) the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Servicer or any of its Subsidiaries or of any substantial part of the
property of the Servicer or any of its Subsidiaries, or (C) the winding up or liquidation of the affairs of the Servicer or any of its Subsidiaries, and the continuance of any such decree or order is unstayed and in effect for a period of 60
consecutive days; 
  
 (d) Voluntary Bankruptcy, Etc. The
commencement by the Servicer or any of its Subsidiaries of a voluntary case under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy, insolvency or similar law, or the consent by
the Servicer or any of its Subsidiaries, as the case may be, to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Servicer or any of its Subsidiaries or of
any substantial part of the property of the Servicer or any of its Subsidiaries or the making by the Servicer or any of its Subsidiaries of an assignment for the benefit of creditors or the failure by the Servicer or any of its Subsidiaries, as the
case may be, generally to pay its debts as such debts become due or the taking of corporate action by the Servicer or any of its Subsidiaries, as the case may be, in furtherance of any of the foregoing; or 
  
 (e) Insolvency, Etc. Servicer or any of its Subsidiaries shall (i)
make a general assignment for the benefit of its creditors, (ii) consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, or custodian of all or a substantial part 
  

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 of the property of Servicer or any of its Subsidiaries, (iii) admit its insolvency or inability to pay its debts
generally as they become due, (iv) fail generally to pay its debts as they become due, or (v) take any action (or suffer any action to be taken by its directors or shareholders) towards the dissolution or liquidation of Servicer or any of its
Subsidiaries. 
  
 In the event of any such Servicer Default, so long as the
Servicer Default shall not have been remedied, the Buyer may, by notice given to the Servicer, terminate all of the rights and powers of the Servicer under this Agreement, including without limitation all rights of the Servicer to receive the
Servicing Fee. In addition, upon the occurrence of a Servicer Default specified in (c), (d) or (e) of this Section 8.01, subject to the provisions of Section 10.13, this Agreement shall automatically and immediately terminate. Upon the giving of
such notice, all rights and powers of the Servicer under this Agreement shall vest in the Buyer, and the Buyer is hereby authorized and empowered to execute and deliver on behalf of the Servicer, as attorney-in-fact or otherwise, all documents and
other instruments (including any notices to Obligors deemed necessary or advisable by the Buyer), and to do or accomplish all other acts or things necessary or appropriate to effect such vesting, and the Servicer agrees to cooperate with the Buyer
in effecting the termination of the Servicer’s rights and responsibilities hereunder and shall promptly provide to the successor servicer appointed under Section 8.02 (the “Successor Servicer”) all documents and records (electronic
and otherwise) reasonably requested to enable it to assume the servicing functions hereunder. 
  
 SECTION 8.02 Buyer to Act; Appointment of Successor. 
  
 (a) From and after the time the Servicer receives a notice of termination pursuant to Section 8.01 or in the event of a resignation of the Servicer pursuant to Section 5.13, the Buyer shall be the successor in all
respects to the Servicer in its capacity as Servicer under this Agreement and the transactions set forth or provided for herein and shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Servicer by the
terms and provisions hereof, provided, however, that notwithstanding the foregoing the Buyer shall have no obligation whatsoever in respect of any liability incurred by the Servicer at or prior to the time of receipt by the Servicer of
said notice. As compensation therefor the Buyer shall be entitled to receive any and all funds, including the Servicing Fee, which the Servicer would have been entitled to receive if the Servicer had continued to act hereunder. However, if the Buyer
is unable or unwilling to act as successor to the Servicer hereunder, the Buyer may appoint any Person with a net worth of at least $10,000,000 and whose regular business includes the servicing of loans similar to the Loans as Successor Servicer. In
connection with such appointment and assumption, the Buyer may make such arrangements for the compensation of such Successor Servicer from payments on the Loans and related Property as the Buyer and such Successor Servicer shall agree;
provided, that no such compensation shall be in excess of that permitted the Servicer hereunder or such amount as is commercially reasonable at the time in question. The Buyer and such Successor Servicer shall take such action, consistent
with this Agreement, as shall be necessary to effectuate any such succession. 
  
 (b) Either the Buyer, as successor to the Servicer in its capacity as Servicer hereunder, or any Successor Servicer may establish a Separate Account to serve as the Servicing Account, and neither the Buyer nor any
such Successor Servicer shall have any 
  

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 liability to any Person other than the Buyer with respect to any ownership or security interest in or to any amounts or
funds on deposit in such successor Servicing Account which is not a Separate Account that are not and are not deemed to be Property or payments received or amount otherwise held in respect of a Loan or any Property. 
  
 SECTION 8.03 Effects of Servicing Transfer. 
  
 (a) Upon any termination of the rights and powers of the Servicer pursuant
to either Section 5.13 or Section 8.01 and the Buyer’s succeeding to the rights and obligations of the Servicer hereunder, the Buyer may unilaterally terminate this Agreement. 
  
 (b) Upon any termination of the rights and powers of the Servicer pursuant to either Section 5.13 or Section 8.01 and the
vesting in either the Buyer or a Successor Servicer of the rights and obligations of the Servicer as described in Section 8.01 and 8.02, the Servicer shall have no additional obligations or liabilities for acts or omissions of the Successor Servicer
or otherwise relating to its performance of its obligations under this Agreement after the date of such termination. 
  
 (c) Upon the occurrence and continuation of a Servicer Default, the Servicer shall remit any unearned portion of the Servicing Fee to the Buyer. Further,
upon the occurrence and continuation of any Servicer Default (other than a Servicer Default under Section 8.01(b)) or Guarantor Default, the Servicer shall remit any unearned portion of the Guaranty Fee to the Buyer. 
  
 [End of Article VIII] 
  

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 ARTICLE IX 
  
 TERMINATION EVENTS 
  
 SECTION 9.01 Termination Events. The occurrence of any of the following events shall constitute a “Termination Event” hereunder.

  
 (a) Breach of Covenant. Seller shall fail to perform or
observe any covenant, obligation or term of Articles VI or X or of Section 2.02(d) or 4.04 of this Agreement and, except in the case of a breach of Section 6.01(c) or of Section 6.01(f)(iii), (iv) or (v), such failure shall remain unremedied for 30
days after written notice thereof shall have been given to Seller by the Buyer; or 
  
 (b) Guarantor Defaults. A Guarantor Default shall have occurred and be continuing; or 
  
 (c) Involuntary Bankruptcy, Etc. The entry of a decree or order for (i) relief by a court having jurisdiction in respect of the Seller, Unified or
any Subsidiary thereof in an involuntary case under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy, insolvency or similar law, (ii) the appointment a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Seller, Unified or any Subsidiary thereof or of substantial part of the property of the Seller, Unified or any Subsidiary thereof, or (iii) the winding up or liquidation of
the affairs of the Seller, Unified or any Subsidiary thereof, and the continuance of any such decree or order remains unstayed and in effect for a period of 60 consecutive days; or 
  
 (d) Voluntary Bankruptcy, Etc. The commencement by the Seller, Unified or any Subsidiary thereof of a voluntary case
under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy, insolvency or similar law, or the consent by the Seller, Unified or any Subsidiary thereof, as the case may be, to the
appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Seller, Unified or any Subsidiary thereof or of any substantial part of the property of the Seller, Unified or
any Subsidiary thereof or the making by the Seller, Unified or any Subsidiary thereof of an assignment for the benefit of creditors or the failure by the Seller, Unified or any Subsidiary thereof, as the case may be, generally to pay its debts as
such debts become due or the taking of corporate action by the Seller, Unified or any Subsidiary thereof, as the case may be, in furtherance of any of the foregoing; or 
  
 (e) Insolvency, Etc. Seller, Unified or any Subsidiary thereof shall (i) make a general assignment for the benefit of
its creditors or (ii) consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, or custodian of all or a substantial part of the property of Seller, Unified or any Subsidiary thereof, or (iii) admit its
insolvency or inability to pay its debts generally as they become due, or (iv) fail generally to pay its debts as they become due, or (v) take any action (or suffer any action to be taken by its directors or shareholders) towards the dissolution or
liquidation of Seller, Unified or any Subsidiary thereof; or 
  

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 (f) ERISA. Seller, or any member of its Controlled Group, shall fail to pay when due an amount or
amounts aggregating in excess of $5,000,000 which it shall have become liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice of intent to terminate a Plan or Plans having aggregate Unfunded Vested Liabilities in excess of
$5,000,000 (collectively, a “Material Plan”) shall be filed under Title IV of ERISA by the Seller or any other member of its Controlled Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to administer any Material Plan or a proceeding shall be instituted by a fiduciary of any Material Plan against the Seller or any member of its Controlled Group,
to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed within 30 days thereafter; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material
Plan must be terminated. 
  
 (g) Servicer Default. A
Servicer Default shall have occurred and be continuing and Buyer, in its sole discretion, shall deem it to be a Termination Event. 
  
 (h) Breach of Representation or Warranty. Buyer shall have knowledge of any representation or warranty (including any Existing Loan Representation)
which shall have been incorrect when made and shall not have been cured as provided in Section 4.04(a) and Buyer shall determine, in its sole discretion, that its interests hereunder cannot be protected by requiring the Seller, pursuant to Section
4.04(b), to repurchase the Loan or Loans as to which such breach exists. 
  
 (i) Operating and Investment Agreement. The Operating Agreement or the Investment Agreement shall cease to be in full force and effect. 
  
 (j) Bank Act Eligibility. Seller ceases to be an “eligible borrower” pursuant to the provisions of the Bank
Act. 
  
 SECTION 9.02 Consequences of Termination Event.
Upon the occurrence of any Termination Event specified in (c), (d), or (e) of Section 9.01 or a Termination Event arising out of GCC’s insolvency or involvement in a voluntary or involuntary bankruptcy proceeding, subject to the provisions of
Section 10.13, this Agreement shall automatically and immediately terminate. If any Termination Event shall occur and be continuing, then in any such case and at any time thereafter so long as any such Termination Event shall be continuing, the
Buyer may, at its option, immediately terminate the Buyer’s commitment to make any Incremental Purchases hereunder. Thereafter, and before exercising any other remedies provided herein or by applicable law, Buyer may, at its option, require
Seller to, and Seller shall, repurchase all Loans and related Property for the Repurchase Amount within 10 Business Days after receipt of notice from the Buyer of its election to cause such repurchase of all Loans. In addition, Buyer may pursue all
other rights and remedies available herein and by applicable law including, without limitation, its rights to pursue collection from the Seller in an amount equal to the Repurchase Amount. 
  
 SECTION 9.03 Remedies of a Secured Party. Following the occurrence of
a Termination Event, and in addition to its rights under Section 9.02, the Buyer shall have all 
  

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 remedies provided by law and without limiting the generality of the foregoing shall have the following remedies: (a) the
remedies of a secured party under the Uniform Commercial Code; (b) the right to make notification and pursue collection or, at Buyer’s option, to sell or cause Servicer, as agent for the Buyer, to sell all or any part of the Loans and related
Property; (c) the right to exercise all of owner’s or secured party’s rights under the Loans and related Property; and (d) to the extent that notice shall be required by law to be given, Seller agrees that a period of 20 days from the time
the notice is sent shall be a reasonable period of notification of a sale or other disposition of the Loans and related Property. 
  
 [End of Article IX] 
  

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 ARTICLE X 
  
 MISCELLANEOUS 
  
 SECTION 10.01 Further Assurances. Each party hereto agrees to execute and deliver to the other party and to perform all such other acts as the
other party may reasonably request to carry out the transactions contemplated by this Agreement. Without limiting the foregoing, Buyer agrees to endorse without recourse the Note related to any Loan being resold to Seller pursuant to Articles II,
IV, VII or IX, and to execute assignments and related Uniform Commercial Code financing statements to evidence the assignment of the Related Documents to Seller. 
  
 SECTION 10.02 Indemnities. (a) Seller and Servicer will defend and hereby indemnify Buyer and its successors,
assigns, servants and agents (hereinafter “Indemnitees”) against and agree to protect, save and keep harmless and make whole each thereof, from any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs
(including any net increase in the tax liability of an Indemnitee resulting from its receipt of indemnity payments made under this Section 10.02), expenses and disbursements, including reasonable attorneys’ fees, of whatsoever kind and nature
imposed on, incurred by or asserted against any Indemnitee in any way relating to or arising out of (i) any breach or alleged breach of any covenant, agreement or other obligation by the Seller or Servicer under this Agreement or the Guarantor under
the Guaranty Agreement, (ii) any representation or warranty made by the Seller or Servicer under this Agreement or the Guarantor under the Guaranty Agreement which was untrue or alleged by a Person other than Buyer to be untrue when made or
delivered, (iii) any environmental claim or liability relating to any real property securing any Loans, or (iv) Buyer’s control of the Servicing Account or establishment of a Separate Account or transfer of any amount to a Separate Account;
provided that no Indemnitee shall be entitled to indemnification for any claim or liability arising as a result of such Indemnitee’s gross negligence or willful misfeasance in acting or failing to act under this Agreement. Any indemnity
payments required under this Section 10.02 shall be paid within 30 days following notice thereof from the Indemnitee to Seller or Servicer, as the case may be (which notice shall describe in reasonable detail the matter with respect to which
indemnification is required and shall set forth the computation used in determining the amount of the indemnity payment). All of the rights and privileges of each Indemnitee under this Section 10.02, and the rights, privileges and obligations of
Seller and Servicer hereunder, shall survive the expiration or other termination of this Agreement. 
  
 (a) The foregoing indemnities with regard to any particular Indemnitee shall not extend to any liability, obligation, loss, damage, penalty, claim, suit,
expense or disbursement that results from the willful misconduct or gross negligence of such Indemnitee. 
  
 SECTION 10.03 No Waiver: Remedies Cumulative. No failure by the Seller, Servicer or Buyer to exercise, and no delay in exercising, any right, power
or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or remedy under this Agreement preclude any other or further exercise thereof or the exercise of any other right, power,
or remedy. The rights and remedies provided herein are cumulative and not exclusive of any right or remedy provided by law. 
  

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 SECTION 10.04 Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California. 
  
 SECTION 10.05 Consent
to Jurisdiction; Waiver of Immunities. The Buyer, Servicer and Seller hereby irrevocably submit to the jurisdiction of any state or federal court sitting in the District of Columbia or the State of California in any action or proceeding brought
to enforce or otherwise arising out of or relating to this Agreement and irrevocably waive to the fullest extent permitted by law any objection which they may now or hereafter have to the laying of venue in any such action or proceeding in such
forum, and hereby further irrevocably waive any claim that any such forum is an inconvenient forum. The parties agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on
the judgment or in any other manner provided by law. 
  
 SECTION
10.06 Notices. All notices and other communications provided for in this Agreement shall be in writing or (unless otherwise specified) by telex, telegram, cable or facsimile and shall be sent for next Business Day delivery to each party at
the address set forth under its name on the signature page hereof, or at such other address as shall be designated by such party in a written notice to each other party. Except as otherwise specified, all such notices and communications if duly
given or made shall be effective upon receipt. 
  
 SECTION 10.07
Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective Successors and assigns. Notwithstanding the foregoing, neither the Seller nor the Servicer may assign or otherwise transfer all or
any part of its rights or obligations hereunder without the prior written consent of the Buyer, and any such assignment or transfer purported to be made without such consent shall be ineffective. Buyer may at any time sell, assign or transfer the
Loans and related Property or participations therein without the consent of the Seller, the Servicer or the Guarantor. 
  
 SECTION 10.08 Capital Markets Funding. Seller and Servicer hereby agree to cooperate with Buyer in making such reasonable modifications to this
Agreement and the Related Documents, in executing such other documents and certificates, in causing to be prepared and delivered such opinions, certificates, financial reports and letters, and in taking such other actions, including permitting the
Rating Agencies, credit enhancers and institutional investors to review records and other information relating to the Loans and to visit, on reasonable notice, the premises of the Seller and the Servicer, as are reasonably necessary to achieve
capital markets funding of the Loans and the related Property or to improve the execution of such funding; provided, however, that (a) any expenses of Seller in connection with such modifications shall be reimbursed promptly by the
Buyer to the Seller following request therefor, (b) no such modification shall be materially adverse to the interests of Seller and (c) no such modification shall require any change in the accounting treatment of the transaction contemplated by this
Agreement under GAAP. In addition, Seller and Servicer agree to use their best efforts to cause Obligors to agree to and execute any changes to the Related Documents. 
  
 SECTION 10.09 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall as to such jurisdiction be ineffective to 
  

 -56- 

 the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the
validity or enforceability of such provision in any other jurisdiction. To the extent permitted by applicable law, the parties waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect. 
  
 SECTION 10.10 Attorney’s Fees. In the event it is necessary for
any party hereto or its Successors or assigns to institute suit in connection with this Agreement or the breach thereof, the prevailing party in such suit shall be entitled to reimbursement for its reasonable costs, expenses and attorney’s fees
incurred including fees incurred on any appeal. 
  
 SECTION 10.11
Setoff. In addition to any rights now or hereafter granted under applicable law, upon the occurrence of any Termination Event or Servicer Default, Buyer is hereby authorized by Seller and Servicer at any time, without notice to Seller or
Servicer, to set off and to appropriate and to apply to the amounts then owed by Seller or Servicer hereunder, or by Guarantor under the Guaranty Agreement, as the case may be, to Buyer, any and all deposits held by Buyer for the account of Seller
or Servicer (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts) and any other indebtedness at any time owing by Buyer to Seller or
Servicer. 
  
 SECTION 10.12 Limitation on Third Party
Beneficiaries. No provision, warranty, representation, or agreement herein, whether express or implied, is intended to or shall be construed as conferring upon any Person not a party hereto (including, without limitation, any Obligor) any rights
or remedies whatsoever. 
  
 SECTION 10.13 Term of
Agreement. This Agreement shall terminate upon the earlier to occur of (i) the reduction of the aggregate Principal Balance of the Loans (including Liquidated Loans as to which there remain unpaid Liquidation Losses) to zero, provided
such reduction occurs on or after the Commitment Termination Date, and (ii) the date on which this Agreement is automatically terminated following the occurrence of any of the Termination Events specified in Section 9.02; provided,
however, that (a) the rights accrued to the Buyer prior to such termination, (b) the obligations of the Guarantor under the Guaranty Agreement, and (c) the indemnification provisions set forth in Section 10.02, shall be continuing and shall
survive the termination of this Agreement. 
  
 SECTION 10.14
Entire Agreement; Amendment. This Agreement comprises the entire agreement of the parties and may not be amended or modified except by written agreement of the parties hereto. No provision of this Agreement may be waived except in writing and
then only in the specific instance and for the specific purpose for which given. 
  
 SECTION 10.15 Headings. The headings of the various provisions of this Agreement are for convenience of reference only, do not constitute a part hereof, and shall not affect the meaning or construction of any
provision hereof. 
  
 SECTION 10.16 Counterparts. This
Agreement may be executed in any number of identical counterparts, any set of which signed by all parties hereto shall be deemed to constitute a complete, executed original for all purposes. 
  

 -57- 

 [End of Article X] 
  

 -58- 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amended and Restated Loan Purchase and
Servicing Agreement to be executed by their respective officers or agents thereunto duly authorized as of the date first above written. 
  

					
	 	 	 GROCERS CAPITAL COMPANY,

	 	 	 as Seller and Servicer

			
	 	 	 By:
	 	 /s/    CAROLYN FOX

	 	 	 	 	 Its: Carolyn Fox, President

		
	 	 	 Notice Address:

		
	 	 	 5200 Sheila Street

	 	 	 Commerce, California 90040

		
	 	 	 NATIONAL CONSUMER COOPERATIVE BANK,

	 	 	 as Buyer

			
	 	 	 By:
	 	 /s/    ROMIE BASRA

	 	 	 	 	 Its: Romie Basra, Vice President

		
	 	 	 Notice Address:

		
	 	 	 1725 Eye Street, N.W.

	 	 	 Suite 600

	 	 	 Washington, D.C. 20006

  

			
	 ACKNOWLEDGEMENTS:

	
	 GROCERS CAPITAL COMPANY,
 as Guarantor

		
	 By:
	 	 /s/    CAROLYN FOX

	 	 	Its: Carolyn Fox, President

  
 Signature Page:

 Second Amended and Restated 
 Loan
Purchase and Servicing 
 Agreement 

 EXHIBIT A 
  

GROCERS CAPITAL COMPANY 
  
 MEMBER FINANCING POLICIES AND PROCEDURES 
  
 Approximately 35 years ago, the Unified Western Grocers (“UWG”) Board of Directors voted to begin offering financing services to members as a way to support
wholesale and retail expansion and maintain competitiveness. In 1975, Grocers Capital Company (“GCC”) was incorporated as a wholly-owned finance subsidiary to make loans to the members. The objective of GCC financing has been to support
member growth with competitive financing through prudent lending that provides a satisfactory return to GCC and the shareholders of Unified. These credit and collection policies govern the underwriting and servicing of loans by GCC. 
  
 Effective shortly after the CGC / UG merger, all member financing requests began being
processed through GCC. Requests previously reviewed by United Resources are now consolidated with GCC. The following is a description of that process, starting with the types of financing that are currently available. 
  
 1. Mission Statement 
  
 The mission statement of GCC is as follows: 
  
 “To provide financial services in partnership with progressive retailers
which support the 
 managed growth of the retailers and Unified and its subsidiaries” 
  
 2. Guiding Principles 
  
 GCC Management is guided by the following principles: 
  

	 	•	GCC’s primary goal is to serve the capital needs of UWG Members while maintaining a satisfactory return on assets and portfolio credit quality. 

  

	 	•	The importance of the financing request to achieving UWG’s long-term goals, the ability of the borrower to repay the debt (historical cash flow), the quality of the
borrower’s balance sheet, and the collateral value of the assets pledged, in that order, are the most important factors in a credit decision. 

  

	 	•	Wherever possible, GCC seeks to reduce credit risk by obtaining additional support through guarantees, real estate, deposits, and other assets. 

  

			
	 	 	1

 3. Scope of Credit Services 
  
 a. Desirable Credit 
  
 (All of the following require collateral, personal guaranty, and supply agreement) 
  
 Inventory Term loans - usually used for existing inventory purchased in conjunction with a new store. Also available for initial
inventory required to support a new store grand opening or remodel expansion. Monthly repayment up to 5 years. 
  
 Equipment loans – for grocery equipment associated with purchase or remodel of existing store. Monthly repayment up to 7 years. 
  
 “Buy / Sell” loans - for the purchase of existing grocery store. Many times used in conjunction with Inventory Term loan.
Monthly repayment up to 7 years. 
  
 Deposit Fund loans - 100% of initial
UWG deposit for new members. Weekly repayment over 5 years. 
  
 NOTE: This is the only loan not requiring specific collateral 
  
 Loan Guarantee - Member financing request that is determined would be best provided by a 3rd party
financing source. GCC guarantee percentage varies with member credit strength as evaluated by 3rd party lender.

  
 Equity Investment - On occasion, GCC may make an equity investment in a
Member. 
  
 b. Undesirable Credit 
  
 The following types of credit facilities are considered undesirable and have been identified
as situations with greater than normal risk. When these circumstances are present, the credit request would normally be declined. Exceptions may be approved if, in the judgement of GCC Management, the risks can be controlled. 
  

	 	•	Loans to a business where the loans cannot be repaid within the specified term except by borrowing elsewhere or by liquidating assets. 

  

	 	•	Venture capital loans to a start-up business where the borrowers lack experience in the retail grocery business and the equity participation of the borrowers is limited. These loans
may be considered if the borrowers have other sources of repayment acceptable to GCC which are pledged in support of the loans. 

  

	 	•	Loans to parties whose integrity or honesty is questionable. 

  

	 	•	Real estate loans, either construction or takeout. 

  

			
	 	 	2

	 	•	Credit facilities to holding companies that do not have operating assets. 

  

	 	•	Loans with balloon payments of greater than 40% of the original principal balance and / or amortizations of greater than 10 years. 

  

	 	•	Credit facilities with maturities beyond seven years. 

  

	 	•	Credit extensions to pay delinquent interest. 

  

	 	•	Loans to company owners with the purpose being the buyout of other owners. 

  

	 	•	Working capital loans with the purpose of curing a cash flow deficit. 

  
 3. Eligibility 
  
 GCC may provide financing to any UWG Member Patron, Affiliate, or Customer. Subsidiaries, affiliates, and principals of the above are also eligible provided that GCC Management judges that the financing is warranted.
GCC may request documentation including articles of incorporation, financial statements or tax returns to support the eligibility of any prospective borrower. 
  

4. Single Borrower Concentration Limits 
  
 GCC’s single borrower limit (including loans, guarantees, and investments) is 35% of total Shareholder’s Equity as recorded on GCC’s financial statements.

  
 GCC’s concentration limit is set at 25% of total Finance Receivables as
recorded on GCC’s financial statements. 
  
 Any proposed loans that will
cause the borrower to exceed the single borrower or concentration limits should include specific approval of that exception. 
  
 5. Credit Approval Authority Levels (based on a member’s cumulative loan balance): 
  
 $0 TO $50,000 
  
 ANY GCC OFFICER 
  
 $50,001 TO $100,000: 
  
 ANY TWO GCC
OFFICERS 
  
 $100,001 TO $3,000,000:  
  
 LOAN COMMITTEE-APPROVAL REQUIRES MAJORITY VOTE 
  

			
	 	 	3

 OVER $3,000,000 
  

	REVIEW	AND RECOMMENDATION FROM LOAN COMMITTEE 

	REVIEW	AND RECOMMENDATION FROM UNIFIED FINANCE COMMITTEE 

	REVIEW	AND APPROVAL FROM BOARD OF DIRECTORS OF UNIFIED 

  
 ANY BOARD MEMBER REQUEST/ALL EQUITY INVESTMENTS 
  

	REVIEW	AND RECOMMENDATION FROM LOAN COMMITTEE 

	REVIEW	AND RECOMMENDATION FROM UNIFIED FINANCE COMMITTEE 

	REVIEW	AND APPROVAL FROM BOARD OF DIRECTORS OF UNIFIED 

  
 NOTE: Director requests require approval of UNIFIED Board Credit Committee 
  

SEE ATTACHED PROCEDURES TO FOLLOW AFTER LOAN COMMITTEE DECISION. 
  
 6. Modifications to Loan Terms 
  
 Regardless of which lending authority has approved a credit extension, GCC Management may make modifications as to amount of credit, rate, and terms as follows:

  

	 	•	Amount of Credit – Up to 10% increase in the approved amount 

  

	 	•	Interest Rate – Up to 1% of the approved rate 

  

	 	•	Terms – GCC Management may adjust the terms (collateral, covenants, guarantors, etc.) as long as in its best judgement, the changes do not materially affect the intent of the
lending authority which approved the credit extension. Changes other than the amount and rate noted above should be documented in written form (NOTE TO FILE) and placed in the loan file. Any significant release of collateral must be approved by the
Loan Committee or Board of Directors, as per the required credit approval authority criteria. 

  
 7. Credit and Security Standards 
  
 The guiding principles of GCC’s Credit and Collection Policy will be followed when underwriting and originating any credit extension. Cash flow and the certainty of future cash flows will be regarded as the primary source of repayment
for all credit extensions. 
  
 Secondary sources of repayment will be obtained
whenever possible through collateral, guarantees and other forms of support to the primary source of repayment. GCC will comply with all laws and regulations pertaining to credit and lending practices. 
  

			
	 	 	4

 a. Loan Purpose 
  
 GCC Management will review the credit request to ensure that the request meets the needs of the borrower. The use of the proceeds and the sources of repayment should be
clearly identified. 
  
 b. Underwriting Criteria 
  
 GCC will underwrite all eligible borrowers, subject only to funds availability and approval
of credit. The underwriting will include (i) a score using the GCC Loan Matrix scoring system, and (ii) a detailed credit analysis performed by GCC Management, including a Credit Worksheet that incorporates financial and ratio analysis on the
borrower. 
  
 It is important to note that every effort is made to keep this
information confidential between the Loan Committee, Management and the Member. 
  

	 	•	Loan Matrix. The Loan Matrix is an objective scoring system that assigns point values to a borrower based on actual performance in 11 different measurement categories. Based on the
total score, a rating of Excellent, Very Good, Good, Fair, and Poor is assigned to the borrower. Those borrowers with a Poor rating may only be underwritten if, in the opinion of management, there are sufficient reasons to overcome the rating
assigned. Borrowers with ratings of Fair, Good, Very Good, and Excellent may be underwritten, based upon credit approval by the appropriate lending authority. 

  

	 	•	Credit Analysis. A written credit analysis is normally prepared for exposures over $100,000.00. The written analysis discusses the background, amount, purpose, and collateral for
the financing. Included in the analysis will be a financial comparison that provides ratios and other relevant financial information. 

  
 The Loan Committee analysis of the request includes (in order of importance): 
  

	 	•	Ability to repay debts - financial statement strength 

  

	 	•	Operational experience 

  

	 	•	Site location(s) 

  

	 	•	Unified payment record 

  

	 	•	Collateral value 

  

	 	•	Minimum guidelines to sell loan to NCB after funding 

  

	 	•	Unified wholesale volume 

  
 NOTE: See attached procedures regarding loan process after approval by Loan Committee. 
  

			
	 	 	5

 c. Collateral 
  
 Collateral should always be looked at as a secondary source of repayment. GCC will not normally enter into any loan arrangement where liquidation of the collateral is the
main source of repayment. The value of the collateral should always be identified in the credit underwriting process. Subsequent to credit approval, the value of the collateral should be supported by appraisals, lien searches and other methods of
documentation of value. 
  
 d. Real Estate Appraisals 
  
 Appraisals should be obtained whenever real property is taken as primary collateral. The
only exceptions should be in cases where it is determined by GCC Management that the cost of the appraisal versus the potential equity is not justified or where there is reasonable certainty of the property value (recent purchase, comparable sales
data, etc.). The method of appraisal is to be determined by management, based on the exposure and importance of collateral support. In general, a “drive by” appraisal prepared by an appraisal company acceptable to management is all that
will be required. 
  
 e. Title Policies 
  
 Title insurance policies with GCC as beneficiary should be obtained whenever real property
is taken as primary collateral. An abbreviated title policy is acceptable in most cases, though management may require a full title. If, in management’s view, acceptable information is available that supports the title claim of the borrower,
the title policy requirement may be waived. 
  
 f. UCC-1 Lien Searches

  
 UCC-1 lien searches should be conducted on borrowers where store
equipment or other business assets are offered as collateral and the loan amount exceeds $100,000.00. Management may waive a search in situations where existing filings on the same borrower are present or when there is sufficient experience with the
borrower in management’s opinion to make a search unnecessary. 
  
 g. Real
Estate Site Surveys 
  
 Real estate site surveys performed by a company
acceptable to GCC should be obtained whenever financing is to be used for a new or a closed store location. The survey should indicate sales volumes that can be expected from the location so that projections of future cash flows can be determined.
If historical sales information or other data acceptable to management can be obtained to support the probable sales volume, then the requirement may be waived. 
  

h. Credit Reports 
  
 TRW and Dun & Bradstreet credit reports should be pulled on all borrowers where the total exposure will exceed $100,000.00. The only exception to this would be in cases where GCC has sufficient other credit
information available on the borrower or guarantor to make the report unnecessary. 
  

			
	 	 	6

 8. Interest Rates and Fees 
  
 Interest rates and fees charged by GCC will be set in a manner consistent with its guiding principles, and take into account
prevailing interest rates, management policies, administrative expenses and relative risk. Interest should be paid no less frequently than once a quarter, unless approved by the Loan Committee. 
  
 a. Interest Rates 
  

	 	•	Floating rates. Based on Prime Rate, plus a margin. The Prime Rate used is selected by GCC Management and may be changed from time to time. Adjustment will usually occur on a
calendar quarter basis, although other methods may be used when such a change is desirable. 

  

	 	•	Fixed rates. Based on a specific spread above a base rate acceptable to management, may be offered from time to time as market conditions dictate. 

  
 b. Fees 
  
 Non-refundable commitment fees are due upon acceptance of a commitment. Commitment and other fees generally cover the costs of funding,
underwriting and yield enhancement. Other fees may be charged to cover out of pocket costs such as legal expenses, so long as this is disclosed to the borrower in advance. Late payment fees are not currently assessed by GCC, however, these may be
charged where such fees have been incorporated into the loan documentation. 
  
 9. Loan Loss Reserve Process 
  
 a. Evaluation

  
 The company regularly evaluates the collectibility of its outstanding
loans. The weekly requirement to pay Unified allows for continuous monitoring of member payments and this information is used in determining loan quality. On a quarterly basis a thorough evaluation of identified loans is performed. 
  
 b. Loan loss reserves 
  
 As a normal course of business, the Company requires collateral on its loans. In circumstances where a loan becomes delinquent and the
Company has insufficient collateral for full recovery of the outstanding balance, a specific loan loss reserve is established. The Company also maintains a general loan loss reserve based on historical experience for expected loan losses.

  

			
	 	 	7

 c. Charge-offs 
  
 Whenever it is reasonably determined by management that the probability of collection of any part of a loan is not likely, a full or partial charge-off against the loan
loss reserve shall be made in order to assure that the value of GCC’s assets are accurately stated. A charge-off does not imply a lessening of efforts to collect the loan in full. All charge-offs must be approved by a GCC officer and such
approval should be documented in the file. Chargeoffs of $100,000 or less require signature of one GCC officer. Chargeoffs over $100,000 require signature of two GCC officers. 
  
 10. Loan Portfolio Maintenance 
  
 Under its current policies, GCC only makes specific credit extensions for a fixed period of time; there are no revolving credit arrangements. Therefore, the type of
information required to maintain is different from institutions whose exposure varies over time and who may make several advances over a commitment period. Management will review loans to ensure that required financial information is on file and
that documentation required to monitor insurance and collateral preservation is in order. 
  
 a. Financial Information 
  
 GCC will
collect the following financial information with respect to each borrower on one or more loans which, either individually or in the aggregate, have a principal balance greater than: 
  

	 	•	$250,000 – annual financial statements within 120 days of each fiscal year of such borrower 

  

	 	•	$500,000 but less than $1,000,000 – in addition to annual statements, semi-annual financial statements within 50 days of the end of the second fiscal quarter of such borrower

  

	 	•	$1,000,000 – in addition to audited annual financial statements, quarterly financial statements within 50 days of the end of each fiscal quarter. 

  
 b. Loan covenant compliance 
  
 Loans that require compliance with specific financial ratios will be monitored on an ongoing
basis. A list of such loans will be maintained with comments as to the status of each loan’s compliance. GCC Management may choose to remove or add loans for financial compliance based on changes in exposure or in the borrower’s financial
condition. 
  

			
	 	 	8

 c. Supply Agreement Compliance 
  
 Loans that include a supply agreement with Unified Western Grocers will be monitored on an ongoing basis to determine whether agreed-upon
purchase levels are being met. A list of such loans, indicating compliance, will also be maintained. 
  
 d. Insurance 
  
 All loans secured by
store equipment and fixtures require that the borrower maintain insurance in an equal to GCC’s loan balance and that GCC be named as an additional loss payee on the policy. GCC will maintain a list of these loans and copies of current
endorsements in order to document compliance with those conditions. 
  
 e.
Collateral Filings and Appraisals 
  
 Loans that have UCC-1 filings to
provide notice of GCC’s security interest in specific assets of the borrower will be monitored on an ongoing basis. UCC-1 filings will be renewed for any loans greater than five years in term. Appraisals on real property or other collateral may
be ordered at any time if GCC Management feels it is appropriate based on changes in exposure, market conditions, or the financial condition of the borrower. 
  
 -END- 
  

			
	 	 	9

 Exhibit B 
  

																					
	 Grocers Capital Company C8
	  	LIBOR	  	______	  	 
	 Remittance
	  	BPS	  	______	  	 
	 For the month of ________________________
	  	TOTAL/
ROUNDED	  	______	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	DAYS/
MTH	  	30	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	DAYS/yr	  	360	  	 
											
	 Loan
Number

	  	Tax I.D.
Number

	  	Customer Name

	  	Beginning
Balance

	  	Ending Balance

	  	Principal
Billed/Received

	  	Interest

	  	Amount
Remitted

	  	LIBOR
RATE+BPS

	  	Cmnts

	  	 

 EXHIBIT C 
  

[Form of Security Agreement Note] 
  
 GROCERS CAPITAL COMPANY 
  
 NOTE: COMBINED PRINCIPAL AND INTEREST IN INSTALLMENTS 
 VARIABLE INTEREST RATE 
 (CORPORATION) 
  

			
	 LOAN NUMBER
                        
	 	Date:                         

  
 Commerce, California

  
 For value received,
                     (“Borrower”) promises to pay in lawful money of the United States of America, to the order of the GROCERS
CAPITAL COMPANY (“GCC”) at its office located at 5200 Sheila Street, Commerce, California 90040, the principal sum of:
                                        
with interest thereon from                 , 20          (the “Interest Commencement Date”), at the rate
of          percentage point(s) over the prime rate charged by the Union Bank of California (the “Prime Rate”) on the unpaid balance of said principal sum until all principal and interest is
paid in full. The Prime Rate is, as of the date of execution of this note,              percent per annum and the initial interest rate under this note is
             percent per annum, subject to modification as herein defined. 
  
 The interest rate shall be adjusted on the 25th day of the third month of the calendar quarter following the Interest Commencement Date and each three (3)
months thereafter (each an “Adjustment Date”) according to the Prime Rate announced on the Adjustment Date, and each interest rate adjustment shall be effective on the date of the first installment due after the Adjustment Date.

  
 Borrower shall pay said principal sum and interest in
         installments of:
                                        
beginning on the 30th day following the Interest Commencement Date until the entire balance of principal and interest has been paid. 
  
 If, however, a change in interest rate becomes effective, GCC may increase or decrease the monthly installment payable hereunder, so as to maintain
amortization at the rate provided hereinabove. It is agreed that each installment, when paid, shall be credited first on interest then due and the remainder on principal, and interest shall thereupon cease upon the principal so credited. 

 
 If default be made in the payment when due of any part or installment of
principal or interest under this note, then: 
  
 (a) the interest rate shall adjust to 3.5 percentage points over the Prime Rate in effect at the time of such default, and 
  
 (b) the whole sum of principal then unpaid, together with accrued interest thereon, shall become immediately due and payable at the option
of the holder of this note, without notice. 
  

 -1- 

 In the event of commencement of suit or any other action to enforce payment of this note, Borrower agrees
to pay all attorney’s fees and cost incurred by GCC. 
  
 A
Security Agreement dated                         , 20        , between
Borrower and GCC secures the indebtedness of this note. The maturity of this note may be accelerated as provided in the Security Agreement and
                                 (Describe other security agreement). 

 
 A loan origination fee of
                     is charged in connection with the loan of funds evidenced by this note, and such fee is immediately payable in addition
to the principal and interest payable as set forth above. 
  
 IN
WITNESS WHEREOF, Borrower has caused this note to be executed by its officers thereonto duly authorized by a resolution of its Board of Directors duly adopted by said Board at a meeting thereof duly called, noticed, and held. 
  

			
	 “Borrower”
  

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 Mailing Address:

	
	 Store Address:

  

 -2- 

 GROCERS CAPITAL COMPANY 
  
 SECURITY AGREEMENT 
  
 THIS SECURITY AGREEMENT (this “Security Agreement”) is entered into
            , 20     , by and between: GROCERS CAPITAL COMPANY (“Secured Party”), whose mailing address is 5200 Sheila Street, Commerce, CA 90040
and                      (“Debtor”), whose mailing address is
                     (the “Mailing Address”). The address of the store being financed is:
                             (the “Store Address”). 
  
 1. Grant of Security Interest. Debtor grants to Secured Party a
security interest in the property described in Paragraph 2 (collectively, the “Collateral”) to secure prompt payment and full performance of this Security Agreement and the obligations described in Paragraph 3 (collectively, the
“Obligations”). 
  
 2. Collateral. The collateral
is all Debtor’s Class A and Class B shares of UNIFIED WESTERN GROCERS, INC. (“Unified”), all Debtor’s deposits with Unified and all Debtor’s accrued patronage or dairy dividends with Unified, and
                    , together with all rights, remedies, powers and/or privileges of Debtor with respect to any of the foregoing, including
the right to make claims thereunder or with respect thereto, and any and all proceeds and products of any of the foregoing. 
  
 The Collateral and all records concerning the Collateral shall be kept at the Mailing Address and/or Store Address as noted above. 
  
 No real property secures the Obligation(s) except:
            . 
  
 3. Obligations. This Security Agreement secures, and the Collateral is collateral security for, the prompt payment or performance in full, when due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including the payment of amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code (11 U.S.C. 362(a)) of: 
  
 3.1 All debts, obligations and liabilities of every nature and kind
whatsoever, of Debtor now or hereafter existing, created, or arising out of, or in connection with, any and all loans, advances, extensions of credit and/or other financial accommodations extended by Secured Party to Debtor and all extensions,
amendments, and renewals thereof, including, but not limited to, that certain             , and any and all attorneys’ fees and court costs incurred by Secured Party in enforcing this
Security Agreement or collecting payment under it; and 
  
 3.2 The
Promissory Note dated                     , 20    , executed by
             in favor of GCC, in the original principal amount of $            . 
  

 -1- 

 4. Representations and Warranties. Debtor represents and warrants and shall be deemed to represent
and warrant on the date of each loan or advance secured hereby, that: 
  
 4.1 Debtor is the sole owner of the Collateral, and has marketable title thereto, free of all liens, security interests, encumbrances and adverse claims; 
  
 4.2 If Debtor is not a natural person, Debtor represents that it is duly organized, validly existing and in good standing
under the laws of its jurisdiction of formation, and is authorized to do business and is in good standing everywhere its activities make such qualification necessary, has the authority and licenses to own and operate its properties and carry on its
business, and to enter into the transactions contemplated by this Security Agreement. If Debtor is a corporation, Debtor warrants that during the term of this Security Agreement there will not be a substantial change in its ownership or control and
that Debtor will not, without consent of Secured Party, pay any dividends on any of its shares or purchase or retire any of its shares, or alter its capital structure; 
  
 4.3 All financial, profit and loss, ownership and other statements given to Secured Party are accurate; 
  
 4.4 Debtor will not, in the operation of its business, incur any debt, or act
as guarantor for any debt of others, or lend money without written approval of Secured Party; 
  
 4.5 At Secured Party’s request, Debtor will cause existing indebtedness of Debtor to be subordinated to the Obligations; and 
  
 4.6 Debtor is a member in good standing of Unified Grocers of California and its subsidiaries. 
  
 5. Covenants of Debtor. Until the Obligations are paid in full, Debtor
agrees to: 
  
 5.1 Maintain in good condition, preserve and
protect the Collateral; 
  
 5.2 Keep the Collateral free of any
liens, encumbrances, security interests, levies, assessments charges, and damages, and not lose, sell or dispose of or transfer or part with possession of any assets of its business, including the Collateral, or any right or interest therein, except
inventory of Debtor sold in the ordinary course of Debtor’s business; 
  
 5.3 Insure the Collateral with Secured Party named as loss payee, in all respects to the satisfaction of Secured Party. Debtor hereby assigns the policies to Secured Party and agrees to deliver them to Secured Party
on request. Secured Party may (i) make any claim under the policies whether or not it is named as a loss payee on the policies, (ii) collect and receive payment of and endorse any instrument in payment of loss or premium return or other refund, and
(iii) apply such amounts received, at Secured Party’s discretion, to replacement of the Collateral or payment of the Obligations; 
  
 5.4 Notify Secured Party at least thirty (30) days prior to any change in Debtor’s name or addresses; 
  

 -2- 

 5.5 Keep separate and complete records of the Collateral and provide Secured Party with access to the
Collateral, the records therefor and all of Debtor’s financial records including monthly, quarterly or annual financial statements and federal tax returns, and with such other information as Secured Party may reasonably request; 
  
 5.6 Procure, execute and deliver, at Secured Party’s request, any
writings and take any action deemed appropriate by Secured Party to effectuate the intent of this Security Agreement and to perfect, maintain or protect Secured Party’s interest in the Collateral and its priority; 
  
 5.7 Upon demand of Secured Party, provide additional security for the
Obligations or reduce the Obligations, in each case to the satisfaction of Secured Party if in Secured Party’s good faith judgment the Collateral has decreased in value; and 
  
 5.8 Maintain membership in good standing with Unified and to purchase from Unified such goods and services as normally
offered by Unified in the course of its business with Debtor in an amount equal to the percentage of purchases from Unified to total purchases from all sources of supply as of the date of this Security Agreement. 
  
 6. Authorized Action by Secured Party. Debtor hereby irrevocably
appoints Secured Party as its attorney-in-fact (but Secured Party shall not be obligated to and shall not incur any liability to Debtor or any third party for failure so to do) to exercise all rights and powers as Debtor might exercise with respect
to the Collateral. Debtor agrees to pay Secured Party on demand any costs and expenses, including attorneys’ fees, it incurs while acting as Debtor’s attorney-in-fact and such costs and expenses are included in the Obligations secured
hereby. 
  
 6.1 Secured Party shall not be required to make any
presentment, demand or protest, or give any notice and need not take any action to preserve any rights against any party or any other person in connection with the Obligations or with respect to the Collateral whether or not Secured Party has
possession of the Collateral. 
  
 6.2 Secured Party may exercise
its rights of setoff with respect to the Obligations in the same manner as if the Obligations were unsecured. 
  
 7. Default and Remedies. 
  
 7.1 Defaults. The occurrence of any of the following events or conditions shall, at the option of Secured Party and without notice to or demand on
Debtor, constitute a default hereunder (each, a “Default”): 
  
 7.1.1 Failure to pay any of the Obligations as and when due (whether upon demand, acceleration or otherwise); 
  
 7.1.2 Any default, breach, violation or non-performance by Debtor of any covenant or warranty in the Supply Agreement between Debtor and Unified occurs;

  

 -3- 

 7.1.3 Any breach, violation or non-performance by Debtor of any covenant or warranty hereunder, under
any other agreement with Secured Party or on the part of any other obligor or guarantor of the Obligations under any agreement in respect to the Obligations occurs; 
  
 7.1.4 Any representation or statement made or furnished to Secured Party on behalf of Debtor proves to have been false in
any material respect when made or furnished; or 
  
 7.1.5 The
death, dissolution, termination of existence, insolvency, suspension or failure of business of Debtor, or the appointment of a receiver, committee of creditors or liquidating agent for Debtor or any other obligor or guarantor of the Obligations, or
for all or any part of the property of Debtor, or the assignment for the benefit of creditors, or the commencement of any proceedings under any bankruptcy or insolvency laws, by or against Debtor or any guarantor of or surety for Debtor. 

 
 7.2 Remedies. Upon the occurrence of any Default, Secured Party
may, at its option, without notice or demand declare all Obligations immediately due and payable, and shall have all rights and remedies of a secured party under Chapter 6 of Division 9 of the California Commercial Code (the “Commercial
Code”) and other applicable law, as well as the following rights and remedies, all of which may be exercised with or without notice at Secured Party’s option: 
  
 7.2.1 To enter any premises where any Collateral may be located and to take possession of and remove the Collateral;

  
 7.2.2 To notify obligors on the Collateral that the same has
been assigned to Secured Party and that payments thereon are to be made to Secured Party; 
  
 7.2.3 To take or bring in Secured Party’s name or in the name of Debtor, all steps, actions, suits or proceedings deemed by Secured Party necessary or desirable to effect collection of or to realize upon the
Collateral; 
  
 7.2.4 To settle, compromise or release, on terms
acceptable to Secured Party any amounts owing on the Collateral, to extend time of payment, make allowances and adjustments and to issue credits in the name of Secured Party or Debtor; 
  
 7.2.5 To sell, lease, or otherwise dispose of all or any part of the Collateral at public or private sale, upon such terms
(including credit) and with such warranties or representations as Secured Party deems appropriate; 
  
 7.2.6 To enter upon and take possession of Debtor’s premises and all Collateral therein located and to operate the business therein operated by
Debtor, and use and dispose of any and all of the Collateral in the operation of such business, until such time as the Collateral is sold or Secured Party determines to retain the Collateral in satisfaction of the Obligations, in which case Secured
Party and Debtor’s rights will be determined by Commercial Code Section 9620 or other applicable law; 
  

 -4- 

 7.2.7 To remove from any premises where they may be located, any and all documents, instruments, files
and records relating to the Collateral; and 
  
 7.2.8 To receive,
open and dispose of all mail addressed to Debtor and notify postal authorities to change the address for delivery to such address as Secured Party may designate. 
  
 7.3 The proceeds resulting from the collection, liquidation, sale, lease or other disposition of the Collateral shall be
applied first to the expenses (including attorneys’ fees) of retaking, holding, sale, liquidation, or collection of the Collateral, and then to the satisfaction of all Obligations, application to any particular Obligation or to principal or
interest to be in Secured Party’s sole discretion. Debtor shall pay to Secured Party on demand any deficiency which may remain after such sale, disposition, collection or liquidation of Collateral. Secured Party is entitled to any surplus, to
the fullest extent possible under the law, which may remain after any sale, disposition, collection or liquidation of Collateral. 
  
 8. Severability. If any provision of this Security Agreement shall be unenforceable, this Security Agreement shall be construed as if the
unenforceable provision had never been contained herein. 
  
 9.
Cumulative Rights. The rights and remedies of Secured Party under this Security Agreement shall be in addition to those provided under any statute or rule of law or other agreement, and may be exercised in any order or at the same time.

  
 10. Waiver. Any forbearance or failure or delay by
Secured Party in exercising any right or remedy shall not preclude the further exercise thereof, and no right or remedy of Secured Party may be waived except expressly in writing. Debtor waives any right to require Secured Party to proceed against
any person or to exhaust any Collateral or to pursue any remedy prior to pursuing Debtor in respect of the Obligations. 
  
 11. Binding Upon Successors. This Security Agreement is binding on and inures to the benefit of the successors and assigns, representatives,
executors, administrators and heirs of the parties hereto. 
  
 12.
References. The singular includes the plural. The term Debtor refers to each of the undersigned debtors and the Collateral and the Obligations include the separate and joint Collateral and Obligations of each of the undersigned. All
obligations and agreements hereunder shall be joint and several. 
  
 13. Choice of Law. This Security Agreement shall be construed in accordance with and governed by the laws of the State of California, and, where applicable and except as otherwise defined herein, terms used herein shall have the
meanings given them in the California Commercial Code. Debtor irrevocably submits to jurisdiction and venue in the County of Los Angeles, State of California in whatever court Secured Party shall choose in connection with any legal action or
proceeding arising out of or relating to this Security Agreement. Debtor waives all objections to personal or in rem jurisdiction or to venue. 
  

 -5- 

 14. Attorneys Fees. In any action or legal proceeding involving this Security Agreement, the
prevailing party shall be entitled to its attorneys’ fees and costs. 
  
 15. Notice. Any written notice, consent or other communication provided for in this Security Agreement shall be personally delivered or sent by U.S. mail, with postage prepaid, to the party to be notified, to
the mailing addresses specified in the introductory paragraph hereof. Such addresses may be changed by written notice given as provided herein. 
  
 16. Retention of Documents. Secured Party may destroy or otherwise dispose of any documents, schedules, invoices or other agreements or papers
received by Secured Party pursuant hereto six months after receipt. 
  
 17. Expenses. Upon request by Secured Party, Debtor will reimburse Secured Party for all Secured Party’s expenses arising out of the transactions contemplated hereby, including appraisals, accounting fees, searches, title
policies, recording and filing fees and attorneys’ fees. 
  
 18. Indemnification. Debtor agrees to pay, and on demand to indemnify and hold harmless, Secured Party, from and against any and all claims, including claims based upon strict liability in tort, damages, losses, liabilities, demands,
suits, judgments, causes of action and all legal proceedings, civil and criminal, penalties, fines and other sanctions, and any costs and expenses incurred in connection therewith, including attorneys’ fees, which may result from, relate to or
arise out of this Security Agreement or any Collateral, including the condition, ownership, manufacture, purchase, delivery, acceptance or rejection, lease, use, possession, disposition or operation of any item of Collateral, but not including any
claims arising out of the gross negligence or willful misconduct of Secured Party or its agents and servants. 
  
 19. The following additional covenants are part of this Security Agreement:
                                . 
  

 -6- 

 20. Entire Agreement. This Security Agreement contains the entire security agreement between
Secured Party and Debtor with respect to the Collateral. 
  

			
	 “Debtor”

	
	  

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

		
	 Dated:
	 	  

	
	 “Secured Party”

	
	 GROCERS CAPITAL COMPANY

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

		
	 Dated:
	 	  

  

 -7- 

 [Form of Deposit Fund Note] 
  
 GROCERS CAPITAL COMPANY 
  
 NOTE: COMBINED PRINCIPAL AND INTEREST IN INSTALLMENTS 
 VARIABLE INTEREST RATE 
  

			
	 LOAN NUMBER
                    
	 	DATE                 

  
 Commerce, California

  
 For value received,
                             (“Borrower”) promises to pay in lawful money of the United
States of America, to the order of GROCERS CAPITAL COMPANY (“GCC”) at its office located at 5200 Sheila Street, Commerce, California 90040, the principal sum of:
                     with interest thereon from
                    , 20         (the “Interest Commencement Date”), at the rate of
                     percentage point(s) over the prime rate charged by the Union Bank of California (the “Prime Rate”) on the
unpaid balance of said principal sum until all principal and interest is paid in full. The Prime Rate is, as of the date of execution of this note,      percent per annum and the initial interest rate under this note is
     percent per annum, subject to modification as herein defined. 
  
 The interest rate shall be adjusted on the 25th day of the third month of the calendar quarter following the Interest Commencement Date and each three (3) months thereafter (each an “Adjustment Date”)
according to the Prime Rate announced on the Adjustment Date, and each interest rate adjustment shall be effective on the date of the first installment due after the Adjustment Date. 
  
 Borrower shall pay said principal sum and interest in
             installments of:                      beginning on the 1st day
of the week following the Interest Commencement Date until the entire balance of principal and interest has been paid. 
  
 If, however, a change in interest rate becomes effective, GCC may increase or decrease the weekly installment payable hereunder, so as to maintain
amortization at the rate provided hereinabove. It is agreed that each installment, when paid, shall be credited first on interest then due and the remainder on principal, and interest shall thereupon cease upon the principal so credited. 

 
 If default be made in the payment when due of any part or installment of
principal or interest under this note, then: 
  
 (a) the interest rate shall adjust to 3.5 percentage points over the Prime Rate in effect at the time of such default, and 
  
 (b) the whole sum of principal then unpaid, together with accrued interest thereon, shall become immediately due and payable at the option
of the holder of this note, without notice. 
  

 -1- 

 In the event of commencement of suit or any other action to enforce payment of this note, Borrower agrees
to pay all attorney’s fees and cost incurred by GCC. 
  
 A
Deposit Fund Loan Agreement dated                     , 20            ,
between Borrower and GCC secures the indebtedness of this note. The maturity of this note may be accelerated as provided in the Deposit Fund Loan Agreement and
                     (Describe other security agreement). 
  
 A loan origination fee of              is charged in
connection with the loan of funds evidenced by this note, and such fee is immediately payable in addition to the principal and interest payable as set forth above. 
  
 IN WITNESS WHEREOF, Borrower has caused this note to be executed by its officers thereonto duly authorized by a resolution
of its Board of Directors duly adopted by said Board at a meeting thereof duly called, noticed, and held. 
  

			
	 “Borrower”

	
	  

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 Mailing Address:

  

 -2- 

 GROCERS CAPITAL COMPANY 
 LOAN AGREEMENT 
 (Deposit Finance Program) 
  
 Loan No.
                     
  
 This Loan Agreement (“Agreement”) is entered into as of
                , 20    , between GROCERS CAPITAL COMPANY (“GCC”) and
                                 , (“Borrower”) who agree as
follows: 
  
 1. Loan. On and subject to the provisions
of this Agreement, GCC agrees to lend to Borrower the principal sum of
                                       
                             . This loan shall be evidenced by a promissory note in
the form attached hereto as Exhibit 1 (“Promissory Note”). The loan described in this paragraph is hereafter called the “Loan”. 
  
 2. Use of Proceeds. The proceeds of the Loan shall be used by Borrower exclusively for the purpose of funding Borrower’s Required Deposit with
Unified Western Grocers, Inc. (“Unified”). As used herein, the term “Required Deposit” means the amount of cash deposit which Borrower is required to maintain with Unified as a condition of membership in Unified (as such deposit
may be adjusted from time to time by Unified) and without taking into account any credit against such cash deposit to which Borrower may be entitled by reason of the ownership of Class B shares of Unified. 
  
 3. Disbursement of Loan Proceeds. Upon execution of this Agreement,
the Promissory Note and any other instruments and agreements required of Borrower by GCC in connection with this Agreement, the proceeds of the Loan shall be disbursed by GCC to Unified for credit to the Required Deposit of Borrower, and Borrower
hereby authorizes and instructs GCC to so disburse the proceeds of the Loan. 
  
 4. Loan Payment. The principal of the Loan shall bear interest as provided in the Promissory Note, and principal and interest shall be payable and prepayable by Borrower as provided in the Promissory Note and
as provided in this Agreement. The Loan shall be subject to mandatory prepayment as follows: 
  
 (a) On the date of any issuance of Class B Shares of Unified to Borrower, principal of the Loan shall be prepaid (together with accrued interest thereon to the date of such prepayment) in an amount equal to the lesser
of (i) the book value of such Class B Shares as of the fiscal year of Unified last ended prior to their issuance and (ii) the unpaid principal balance of the Loan as of said date. Such prepayment shall be due without notice or demand to Borrower of
any kind. Such prepayment, at the option of GCC, may be accomplished by the transfer to GCC from Borrower’s cash deposit account with Unified (including Borrower’s Required Deposit ) of an amount equal to the amount of such prepayment, and
Borrower hereby irrevocably authorizes GCC and Unified to make such transfer. 
  
 (b) If at any time, the unpaid principal balance of the Loan shall be more than the amount of Borrower’s Required Deposit, at the option of GCC and upon demand by GCC, principal of the Loan shall be prepaid
(together with accrued interest thereon to the date of such prepayment) in such amount as GCC shall require, provided that GCC may not require that the amount of such prepayment be greater than the difference between the unpaid principal balance of
the Loan and the amount of the Borrower’s Required Deposit. 
  
 (c) In the event that Borrower ceases for any reason to be a member-patron of Unified, the entire principal balance of the Loan shall be prepaid (together with accrued interest thereon to the date of such prepayment) without notice or
demand to Borrower of any kind. 
  
 5. Representations and
Warranties. Borrower represents and warrants that: 
  
 (a)
The execution, delivery and performance of this Agreement, the Promissory Note and any other instruments and agreements required of Borrower by GCC in connection with this Agreement are within Borrower’s power and have been duly and validly
authorized; and their execution and delivery by Borrower will cause the same to be the legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms, and the execution, delivery and
performance of the same are not in conflict with any law or the terms of any charter, bylaw or other document, instrument agreement or understanding whatsoever to which Borrower is a party or to which Borrower or its properties are bound or
affected. 
  

 -1- 

 (b) No event has occurred and is continuing or would result from the making of the Loan which constitutes
an Event of Default as defined in Paragraph 7, or which, with the lapse of time or the giving of notice or both, would become an Event of Default. 
  
 (c) All financial statements, information and other data furnished by or on behalf of Borrower to GCC are complete and correct, and have been prepared in
accordance with generally accepted accounting principles and practices consistently applied, and accurately and fairly represent the financial condition and result of operations of Borrower’s business as of the date of such statements,
information and data. Since the date of such statements, information and data, there has been no material adverse change in the financial condition or operations of Borrower’s business. Borrower has no contingent obligations, liabilities for
taxes, or other obligations or liabilities which are material, except as disclosed in such statements, information and data. 
  
 6. Covenants of Borrower. So long as any portion of the Loan shall remain unpaid, and until full and final payment of the Loan has been made,
Borrower covenants and agrees that: 
  
 (a) The representations
and warranties of Borrower contained herein shall continue to remain true and accurate. 
  
 (b) Borrower will repay principal of and interest on the Loan according to the terms of the Promissory Note and this Agreement. 
  

(c) Borrower will promptly give written notice to GCC of (i) any Event of Default as set forth in Paragraph 7 or any event which, with the lapse of
time or the giving of notice or both, would become an Event of Default and (ii) any matter or event that has resulted or might result in a material adverse change in the condition or operations of Borrower’s business. 
  
 (d) Borrower will deliver to GCC, in form and detail satisfactory to GCC,
such financial statements and information regarding Borrower or its business as GCC may from time to time request. 
  
 (e) Borrower will conduct its business in an orderly, efficient and customary manner, keep all its properties insured and in good working order and
condition, and from time to time make all needed repairs to, and all renewals and replacements of, its properties so that the efficiency and utility of those properties shall be fully maintained and preserved. 
  
 (f) Borrower will maintain adequate books, accounts, and records in
connection with the operation of its business and will prepare all financial statements, information and data required under this Agreement in accordance with generally accepted accounting principles and practices consistently applied; and Borrower
will permit employees or agents of GCC at any time to inspect Borrower’s business and properties, and to examine or audit Borrower’s books, accounts and records and make copies and memoranda of them. 
  
 (g) Without the prior written consent of GCC, Borrower will not liquidate or
dissolve, or enter into any consolidation, merger, joint venture, syndicate, or other combination, or sell, lease or dispose of its business or assets as a whole or in such part as in the opinion of GCC, constitutes a substantial portion of its
business or assets. 
  
 7. Events of Default. Regardless of
the terms of the Promissory Note, the occurrence of any of the events set out below (Events of Default) shall terminate any obligation on the part of GCC to make or continue the Loan and, at the option of GCC, shall make all interest and principal
remaining on the Loan immediately due and payable, without notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices of demands of any kind (except as may be expressly required by law):

  
 (a) Borrower shall fail to pay when due any installment of
interest or principal in accordance with the terms of this Agreement and the Promissory Note. 
  

 -2- 

 (b) Any representation or warranty in this Agreement or in any agreement or instrument executed or
delivered by Borrower in connection with this Agreement shall prove to have been false or misleading in any material respect when made. 
  
 (c) Borrower shall admit in writing its inability to pay its debts generally as they come due or shall become insolvent as that term is defined in the
Federal Bankruptcy Code; or, Borrower shall file any petition or action for relief under any bankruptcy, arrangement, reorganization, insolvency or moratorium law, or any other law or laws for the relief of or relating to debtors, or shall, with
respect to any involuntary petition or action for relief under such law or laws, consent or fail to timely object to the relief requested in such petition or action; or, an involuntary petition shall be filed under any bankruptcy or insolvency laws
against Borrower, or a receiver, trustee, custodian, or similar officer of the court shall be appointed to take possession of all or any substantial part of Borrower’s properties. 
  
 (d) Any default shall occur under any other agreement pertaining to the borrowing of money or the advance of credit under
which agreement Borrower is or may be primarily, secondarily or contingently liable, if that default gives the holder of the obligation the right to accelerate the indebtedness. 
  
 (e) Borrower shall breach or default in the performance of any term, condition, provision, representation or warranty in
this Agreement or the Promissory Note not otherwise specifically referred to in this Paragraph 7. 
  
 8. Miscellaneous Provisions. 
  
 (a) Any notice or communication which either party is required or desires to give under this Agreement shall be given by personally delivering the same or
by mailing the same by first class mail, with postage prepaid, addressed to the party at such party’s address as set forth beneath such party’s signature at the end of this Agreement. If either party desires to change its address for
purposes of such notices or communications, such party shall give notice of the change in the foregoing manner. Any such notice or communication given personally shall be deemed effectively given upon delivery, and any notice or communication given
by first class mail shall be deemed effectively given after the expiration of three (3) days from the date of deposit in the United States mail. 
  
 (b) This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and
assigns; provided, however, that Borrower shall not assign this Agreement or the Promissory Note nor any of the rights, duties or obligations of Borrower under this Agreement or the Promissory Note without the prior written consent of GCC.

  
 (c) The rights, powers and remedies given to GCC hereunder,
under the Promissory Note or at law or in equity or otherwise shall be cumulative and not alternative. Any forbearance or failure or delay by GCC in exercising any such right, power or remedy shall not be deemed to be a waiver of such right, power
or remedy, and any single or partial exercise of any such right, power or remedy shall not preclude any other or further exercise thereof; and every such right, power and remedy of GCC shall continue in full force and effect until such right, power
or remedy is specifically waived by an instrument in writing executed by GCC. 
  
 (d) This Agreement together with the Promissory Note and any other written agreements or instruments required of Borrower by GCC in connection with this Agreement, constitute the entire agreement between the parties
and supersede all prior or contemporaneous negotiations and agreements between the parties. If any provision of this Agreement or the Promissory Note shall be invalid or unenforceable, such invalidity or unenforceability shall not impair the
validity or enforceability of any other provision. 
  
 (e) If
there is more than one Borrower under this Agreement, their obligations shall be joint and several. Any married woman who signs this Agreement or the Promissory Note expressly agrees that recourse may be had against her separate property for all of
the obligations of Borrower to GCC. 
  
 (f) This Agreement and the
Promissory Note and the terms hereof and thereof shall be governed and construed in accordance with the laws of the State of California, including without limitation, the statutes of limitations of the State of California. 
  
 (g) In the event any action or proceeding is brought by GCC for the purpose
of enforcing any provision of this Agreement, GCC shall be entitled to recover from Borrower its costs and reasonable attorneys’ fees. 
  

 -3- 

 (h) The various headings of this Agreement are for convenience of reference only, and such headings shall
not be deemed to be a part of this Agreement nor to affect the meaning or interpretation of this Agreement, nor shall be considered in construing this Agreement. 
  
 9. Other Provisions. 
  
 (a) Mandatory Prepayment. Excess cash in Borrower’s required Deposit Fund/account with Unified, due to the issuance of class B shares to Borrower or
recalculation of Borrower’s cash Deposit Fund requirement, shall be assigned to Lender to reduce outstanding principal. In the event purchases of merchandise as required by the Supply Agreement are not made, Borrower shall, within 30 days after
written notice from Lender, repay all outstanding principal under the Promissory Note and this Agreement together with all accrued interest to the payment date. 
  

WHEREFORE, the parties, by their duly authorized officers, agents or principals, have executed this Agreement as of the day and year first above
written. 
  

							
	GROCERS CAPITAL COMPANY	 	

	 	 	(PRINTED NAME OF BORROWER)
				
	By:	 	  

	 	By:	 	  

	 	 	[Title]	 	 	 	 
		
	Address:	 	HQ Address:
		
	 5200 Sheila Street
 Commerce, CA
90040
	 	 

  

 -4- 

 EXHIBIT D 
  

Second Amended and Restated Loan Purchase and Servicing Agreement 
  
 Form of Purchase Notice 
 For Incremental Purchase 
  
 [Letterhead of Grocers
Capital Company] 
  

					
	 A.
	  	Proposed Incremental Purchase Date:                     	  	 
			
	 B.
	  	Aggregate Principal Balance of Loans requested to be Purchased (as of Incremental Purchase Date)	  	$                    
			
	 C.
	  	Total Purchase Price	  	$                    
			
	 D.
	  	Remaining Maximum Purchase Amount (excluding the requested Incremental Purchase)	  	$                    
			
	 E.
	  	The undersigned hereby certifies that:	  	 
			
	 	  	 1.      The information relating to the Loans requested to be purchased included on the Loan Schedule
attached hereto is true and correct.
	  	 
			
	 	  	 2.      The above information is true and correct pursuant to the terms of the Second Amended and Restated
Loan Purchase and Servicing Agreement dated as of June 9, 2004 (the “Agreement”), between Grocers Capital Company, as Seller and Servicer (“GCC”), and National Consumer Cooperative Bank, as Buyer
(“NCB”).
	  	 
			
	 	  	 3.      The representations and warranties of GCC in Sections 4.01 and 5.12 of the Agreement and in Section
3.1 of the Second Amended and Restated Guaranty Agreement dated as of June 9, 2004, between GCC and NCB, are true and correct on the date hereof.
	  	 
			
	 	  	 4.      On the applicable Incremental Purchase Date, GCC shall certify as to the truth and correctness of the
representations and warranties contained in Section 4.02 of the Agreement with respect to the Loans sold and assigned on such Incremental Purchase Date.
	  	 

  
 Capitalized terms used
herein and not otherwise defined shall have the meanings specified in the Agreement. 
  

 -1- 

			
	 Grocers Capital Company

		
	 By:
	 	  

	 	 	 Authorized Officer

  
 Date of Notice:
                     
  

 -2- 

 EXHIBIT E 
  

Second Amended and Restated Loan Purchase and Servicing Agreement 
  
 FORM OF OFFICER’S CERTIFICATE 
 OF SELLER 
 FOR EACH INCREMENTAL PURCHASE DATE 
  
 [Letterhead of Grocers Capital Company] 
  
 I,             , the undersigned
             of Grocers Capital Company (“GCC”), a California corporation, do HEREBY CERTIFY as of
             (the “Incremental Purchase Date”), to National Consumer Cooperative Bank (the “Buyer”), in connection with the sale and transfer of Loans pursuant to
that certain Second Amended and Restated Loan Purchase and Servicing Agreement dated as of June 9, 2004 (the “Agreement”), by and between GCC, as Seller and Servicer, and the Buyer, and the Second Amended and Restated Guaranty Agreement
dated as of June 9, 2004 (the “Guaranty Agreement”), by and between the Guarantor and the Buyer, as follows: 
  
 1.             , is the duly elected and qualified
             of GCC and the signature below is his/her genuine signature: 
  

			
	         [name]        
	 	        [specimen signature]        

  
 2. All of the terms,
covenants, agreements and conditions of the Agreement to be complied with and performed by GCC on or before the Incremental Purchase Date have been complied with and performed. 
  
 3. The representations and warranties of GCC contained in Sections 4.01 and 4.02 of the Agreement are true and correct as if
made on the date hereof. 
  
 4. GCC has not filed or consented to
the filing of any UCC-l Financing Statement relating to the Loans sold pursuant to the Agreement and, to the best of GCC’s knowledge, no such Financing Statements have been filed other than Financing Statements naming National Consumer
Cooperative Bank as “secured party.” 
 5. Neither a Termination Event nor an event which, with the giving of notice or the passage of time or both,
would constitute a Termination Event has occurred and is continuing on the date hereof. 
  
 Capitalized terms used herein and not otherwise defined shall have the meanings specified in the Agreement. 
  

 -1- 

 Certified this              day of
                        ,             . 
  

			
	 GROCERS CAPITAL COMPANY

		
	 By:
	 	  

  

 -2- 

 EXHIBIT F 
  

Second Amended and Restated Loan Purchase and Servicing Agreement 
  
 FORM OF OFFICER’S CERTIFICATE 
 OF GUARANTOR FOR EACH 
 INCREMENTAL PURCHASE DATE 
  
 [Letterhead of Grocers Capital Company] 
  
 I,
            , the undersigned              of Grocers Capital Company (“GCC”), a California corporation,
do HEREBY CERTIFY as of              (the “Incremental Purchase Date”), to National Consumer Cooperative Bank (the “Buyer”), in connection with the sale and
transfer of Loans pursuant to that certain Second Amended and Restated Loan Purchase and Servicing Agreement dated as of June 9, 2004 (the “Agreement”), by and between GCC, as Seller and Servicer, and the Buyer, and the Second Amended and
Restated Guaranty Agreement dated as of June 9, 2004 (the “Guaranty Agreement”), by and between the Guarantor and the Buyer, as follows: 
  
 1.             , is the duly elected and qualified
             of the Guarantor and the signature below is his/her genuine signature: 
  

			
	         [name]        

	 	         [specimen
signature]        

  
 2. All of the terms,
covenants, agreements and conditions of the Agreement to be complied with and performed by the Guarantor on or before the Incremental Purchase Date have been completed and performed. 
  
 3. The representations and warranties of the Guarantor contained in Section 3.1 of the Guaranty Agreement are true and
correct as if made on the date hereof. 
  
 4. Neither a Guarantor
Default nor an event which, with the giving of notice or the passage of time or both, would constitute a Guarantor Default has occurred and is continuing on the date hereof. 
  
 5. The Guaranty Amount on the Incremental Purchase Date (following the sale and purchase of Loans on such date) is
$             
  
 Capitalized terms used herein and not otherwise defined shall have the meanings specified in the Agreement. 
  
 CERTIFIED THIS      DAY OF
                    ,             . 
  

			
	 GROCERS CAPITAL COMPANY

		
	By:	 	  

  

 -1- 

 EXHIBIT G 
  

Second Amended and Restated Loan Purchase and Servicing Agreement 
  
 FORM OF OFFICER’S CERTIFICATE 
 OF SERVICER FOR EACH 
 INCREMENTAL PURCHASE DATE 
  
 [Letterhead of Grocers Capital Company] 
  
 I,             , the undersigned
             of Grocers Capital Company (the “Servicer” or “GCC”), a California corporation, do HEREBY CERTIFY as of
             (the “Incremental Purchase Date”), to National Consumer Cooperative Bank (the “Buyer”), in connection with the sale, transfer and servicing of Loans
pursuant to that certain Second Amended and Restated Loan Purchase and Servicing Agreement dated as of June 9, 2004 (the “Agreement”), by and between GCC, as Seller and Servicer, and the Buyer, as follows: 
  
 1.
             is the duly elected and qualified              of the Servicer and the signature below is his/her
genuine signature: 
  

			
	 [name]

	 	 [specimen signature]

  
 2. All of the terms,
covenants, agreements and conditions of the Agreement to be complied with and performed by the Servicer on or before the Incremental Purchase Date have been completed and performed. 
  
 3. The representations and warranties of the Servicer contained in Section 5.12 of the Agreement are true and correct as if
made on the date hereof. 
  
 4. Neither a Servicer Default nor an
event which, with the giving of notice or the passage of time or both, would constitute a Servicer Default has occurred and is continuing on the date hereof. 
  
 Capitalized terms used herein and not otherwise defined shall have the meanings specified in the Agreement. 
  
 CERTIFIED THIS      day of
                    ,             . 
  

			
	 GROCERS CAPITAL COMPANY

		
	 By:
	 	  

  

 -1-Amended and Restated Credit Agreement

 EXHIBIT 10.68 

 GROCERS CAPITAL COMPANY 
  
 $10,000,000 
  
 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
  
 Dated as of June 9, 2004 
  
 NATIONAL CONSUMER COOPERATIVE BANK 
  
 Agent 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I DEFINITIONS
	  	1
	 1.1
	  	Certain Defined Terms	  	1
	 1.2
	  	Accounting Terms; GAAP Changes	  	14
	 1.3
	  	Interpretation	  	14
	ARTICLE II THE LOANS	  	15
	 2.1
	  	The Loans	  	15
	 2.2
	  	Borrowing Procedure	  	16
	 2.3
	  	Conversion or Continuation Requirements	  	16
	 2.4
	  	Eurodollar Costs.	  	17
	 2.5
	  	Illegality; Impossibility	  	18
	 2.6
	  	Inability to Determine Eurodollar Rate.	  	18
	 2.7
	  	Lending Offices	  	18
	 2.8
	  	Notes; Recordkeeping; Statements of Obligations	  	19
	 2.9
	  	Loans by Lenders	  	19
	 2.10
	  	Pro Rata Treatment	  	20
	 2.11
	  	Payments; Application	  	20
	 2.12
	  	Non-Receipt of Funds	  	20
	 2.13
	  	Termination of the Commitments; Repayment of the Loans	  	21
	 2.14
	  	Voluntary Commitment Reductions	  	21
	 ARTICLE III INTEREST, PAYMENTS, FEES AND TAXES
	  	21
	 3.1
	  	Interest	  	21
	 3.2
	  	Interest Payment Dates	  	21
	 3.3
	  	Fees	  	22
	 3.4
	  	Computation of Interest and Fees	  	22
	 3.5
	  	Highest Lawful Rate	  	22
	 3.6
	  	Increased Risk-Based Capital Cost	  	23
	 3.7
	  	Taxes	  	23
	 ARTICLE IV CONDITIONS PRECEDENT
	  	24
	 4.1
	  	Conditions Precedent to the Initial Loans and Maintenance of Amended and Restated Credit Agreement Loans	  	24
	 4.2
	  	Conditions Precedent to All Loans.	  	26
	 ARTICLE V REPRESENTATIONS AND WARRANTIES
	  	27
	 5.1
	  	Representations and Warranties	  	27
	ARTICLE VI COVENANTS	  	31
	 6.1
	  	Reporting Covenants	  	31
	 6.2
	  	Financial Covenants.	  	34
	 6.3
	  	Additional Affirmative Covenants.	  	34
	 6.4
	  	Negative Covenants	  	37
	 ARTICLE VII EVENTS OF DEFAULT
	  	41
	 7.1
	  	Events of Default	  	41
	 7.2
	  	Effect of Event of Default	  	43
	 ARTICLE VIII AGENT AND LENDER
	  	44
	 8.1
	  	Appointment and Powers of Agent	  	44
	 8.2
	  	Agent’s Reliance	  	44
	 8.3
	  	Defaults	  	45
	 8.4
	  	Rights as a Lender, Rights under NCB Loan Purchase Agreement	  	45
	 8.5
	  	Indemnification	  	45

  

 -i- 

					
	 8.6
	  	Non-Reliance by Lenders	  	46
	 8.7
	  	Failure to Act	  	46
	 8.8
	  	Excess Payments	  	46
	 8.9
	  	Sharing of Setoffs	  	47
	 8.10
	  	Characterization Of Action	  	47
	 8.11
	  	Resignation by or Removal of Agent	  	47
	 8.12
	  	No Obligation of Borrower.	  	48
	ARTICLE IX LENDERS’ REPRESENTATIONS	  	48
	 9.1
	  	Investment Representation	  	48
	ARTICLE X EXPENSES AND INDEMNITEES	  	48
	 10.1
	  	Expenses	  	48
	 10.2
	  	Indemnity	  	48
	ARTICLE XI MISCELLANEOUS	  	49
	 11.1
	  	Destruction of Borrower’s Documents	  	49
	 11.2
	  	Amendments, etc.	  	49
	 11.3
	  	Notices	  	50
	 11.4
	  	No Waiver; Cumulative Remedies	  	51
	 11.5
	  	Right of Set-Off	  	51
	 11.6
	  	Survival	  	51
	 11.7
	  	Benefits of Agreement	  	51
	 11.8
	  	Assignments and Participations	  	52
	 11.9
	  	GOVERNING LAW	  	53
	 11.10
	  	CONSENT TO VENUE	  	53
	 11.11
	  	WAIVER OF JURY TRIAL	  	53
	 11.12
	  	Demand, Protest, Notice	  	54
	 11.13
	  	Confidential Relationships	  	54
	 11.14
	  	Limitation on Liability	  	54
	 11.15
	  	Entire Agreement	  	54
	 11.16
	  	Interpretation	  	54
	 11.17
	  	Confidentiality	  	54
	 11.18
	  	Severability	  	55
	 11.19
	  	Counterparts	  	55

  

 -ii- 

 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
  
 THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Agreement”), dated as of June 9, 2004, is made among GROCERS CAPITAL COMPANY, a California corporation (“Borrower”), the financial institutions listed on the signature pages of this Agreement under the heading
“Lenders” (each a “Lender” and, collectively, the “Lenders”), and NATIONAL CONSUMER COOPERATIVE BANK, dba National Cooperative Bank, a federally chartered banking corporation with principal offices located in
Washington, D.C. (“NCB”), as agent for the Lenders (NCB in such capacity and any successor in such capacity is referred to herein as “Agent”). 
  
 RECITALS 
  
 WHEREAS, Borrower and NCB, as agent, entered into an Amended and Restated Credit Agreement dated as of December 7, 2001 (as amended to the date hereof,
the “Amended and Restated Credit Agreement”); 
  
 WHEREAS, Borrower and the other parties to the Amended and Restated Credit Agreement desire to amend and restate the Amended and Restated Credit Agreement as set forth in this Agreement; and 
  
 WHEREAS, the Loans outstanding under the Amended and Restated Credit
Agreement (each an “Amended and Restated Credit Agreement Loan” and, collectively, the “Amended and Restated Credit Agreement Loans”) shall remain outstanding as Loans under, and subject to the terms of, this Agreement.

  
 NOW, THEREFORE, for full and fair consideration, the parties
hereto agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1 Certain Defined Terms 
  
 As used in this Agreement, the following terms shall have the following meanings: 
  
 “Additional Loan/Lease Receivables” means Deposit Fund Loans, Affiliate Loans, Program Leases, subordinated
Indebtedness up to a maximum aggregate amount of $2,000,000, and, if designated as Additional Loan/Lease Receivables pursuant to Section 6.4(l), New Lease/Loan Products. 
  
 “Affiliate” means any Person which, directly or indirectly, controls, is controlled by or is under common
control with another Person. For purposes of the foregoing, “control,” “controlled by” and “under common control with” with respect to any Person shall mean the possession, directly or indirectly, of the power (i) to
vote more than 10% of the securities having ordinary voting power of the election of directors of such Person, or (ii) to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities
or by contract or otherwise. The mere fact that a representative of a Unified Patron serves and acts as a director of Unified or Borrower shall not cause such Unified Patron to be an Affiliate of Unified or Borrower. 
  

 -1- 

 “Affiliate Loans” means loans made by Borrower to wholly-owned, direct or indirect,
subsidiaries of Unified. 
  
 “Agent” has the
meaning set forth in the introduction to this Agreement. 
  
 “Agent’s Account” means the account of Agent maintained at PNC Bank, Philadelphia, Pennsylvania, ABA Number: 031000053, Account Number: 8501299449, Account Name: NCB Clearing Account, Reference: GCC Credit Agreement or
such other account at such bank as the Agent from time to time shall designate in a written notice to Borrower and the Lenders. 
  
 “Agent’s Expenses” means and includes, without duplication, all actual out-of-pocket: (a) costs or expenses (including, without
limitation, taxes and insurance premiums), presently existing or arising hereafter, required to be paid by Borrower under this Agreement, the Security Agreement or under any of the Notes which are paid or advanced by Agent or any Lender; (b) filing,
recording, publication and search fees incurred or paid by Agent or any Lender in connection with Agent’s and such Lender’s transactions with Borrower in connection herewith; (c) all fees, costs and expenses incurred or paid by Agent in
connection with any audit during the existence of an Event of Default, and up to $5,000 fees plus all out-of-pocket costs and expenses incurred or paid by Agent in connection with not more than one (1) audit for each fiscal year which is conducted
absent an Event of Default; (d) costs and expenses (including reasonable attorneys’ fees) incurred by Agent or any Lender in collecting the Collateral (with or without suit), or in gaining possession, of, maintaining, handling, preserving,
storing, shipping, selling, preparing for sale or advertising to sell the Collateral, whether or not a sale is consummated; (e) costs and expenses incurred by Agent or any Lender in defending this Agreement, the Notes, the Security Agreement and all
other agreements, instruments, and documents contemplated hereby and thereby, or any portion hereof or thereof, whether or not suit is brought; (f) the cost of delivering the Notes to any Lender pursuant to the provisions of this Agreement; and (g)
the reasonable costs and expenses (including reasonable attorneys’ fees and expenses, including allocated fees and expenses of in-house counsel or local counsel of Agent) incurred by Agent or any Lender in connection with any bankruptcy or
other insolvency proceeding, reorganization, workout, composition, or other creditor arrangement of Borrower, or of any of Borrower’s Subsidiaries, provided, however, that each Lender (other than Agent) agrees to instruct its
counsel to take reasonable steps to avoid duplication of effort with counsel to Agent. 
  
 “Alternative Use Receivables” means any Receivable from a Unified Patron other than (a) an Additional Loan/Lease Receivable, (b) a Finance Receivable or (c) any Receivable from an Expansion Loan.

  
 “Amended and Restated Credit Agreement” has
the meaning set forth in the first WHEREAS clause of this Agreement. 
  
 “Amended and Restated Credit Agreement Loans” has the meaning set forth in the third WHEREAS clause of this Agreement. 
  
 “Authorized Officer” means any individual authorized by Borrower to act on Borrower’s behalf in connection with the Loan Documents
as specified in a certificate delivered pursuant to Section 4.1(e)(ii), or in the latest such certificate delivered by Borrower to Agent to reflect any change in the authorization of any such individual. 
  
 “Bank” means Union Bank of California, N.A. 
  
 “Bankruptcy Code” means the Bankruptcy Reform Act of 1978.

  

 -2- 

 “Base LIBOR” means, for any Interest Period, the rate for deposits in U.S. Dollars with
maturities comparable to the length of such Interest Period which appears on the screen designated as page “LIBOR” on the appropriate display on the Bloomberg Financial Markets System (or such other screen as may replace the same on such
service) at 11:00 A.M. (London Time), 2 Eurodollar Business Days prior to the commencement of such Interest Period. If Base LIBOR does not appear as contemplated in the preceding sentence, then Base LIBOR for such Interest Period will be the same as
Base LIBOR in effect during the immediately preceding Interest Period for the applicable Eurodollar Rate Loan. 
  
 “Borrower” has the meaning set forth in the introduction to this Agreement. 
  
 “Borrower’s Account” means the account of Borrower maintained at Bank’s branch located at 445
South Figueroa Street, Los Angeles, California 90071, bearing the number 0700479994, or such other account as Borrower from time to time shall designate in a written notice to Agent for the deposit of funds borrowed under this Agreement. 

 
 “Borrowing” means a borrowing consisting of simultaneous
Loans made at any one time to Borrower from Lenders pursuant to Article II. 
  
 “Borrowing Base” means at any time the sum of (i) 75% of Eligible Collateral consisting of Finance Receivables, plus (ii) 50% of Eligible Collateral consisting of Additional Loan/Lease Receivables,
plus (iii) a percentage (determined by Agent in its sole discretion with respect to each such Receivable) of Eligible Collateral consisting of Alternative Use Receivables, but only if, with respect to any such Alternative Use Receivable, Agent has
given its prior written approval (in Agent’s sole discretion) to the inclusion of such Alternative Use Receivable in the Borrowing Base, plus (iv) 75% of Eligible Collateral consisting of Expansion Loans, provided that no Expansion Loan
shall under any circumstances remain in the Borrowing Base for more than twelve months. 
  
 “Borrowing Base Certificate” means a certificate of the chief financial officer or treasurer of Borrower, in substantially the form of Exhibit 1.1 B-1, with such changes thereto as Agent or any
Lender may from time to time reasonably request. 
  
 “Business Day” means a day (i) other than Saturday or Sunday, and (ii) on which commercial banks are open for business in Washington, D.C., and Los Angeles, California. 
  
 “Capital Debt” means, as of any date of determination, any
and all Indebtedness of Borrower due more than one year from the date of determination which is (i) owed to any Affiliate of Borrower, and (ii) by its terms expressly subordinated to all Senior Debt and to any Subordinated Debt of Borrower on terms
no less favorable to the holders of such Senior Debt and Subordinated Debt than those set forth in the Investment Agreement. 
  
 “Capital Lease” means, for any Person, any lease of property (whether real, personal or mixed) which, in accordance with GAAP, would, at
the time a determination is made, be required to be recorded as a capital lease in respect of which such Person is liable as lessee. 
  
 “Closing Date” means the date when all of the conditions set forth in Section 4.1 have been satisfied. 
  
 “Code” means the Internal Revenue Code of 1986, as amended,
and any successor statute thereto. 
  

 -3- 

 “Collateral” means the property described in the Collateral Documents, and all other
property now existing or hereafter acquired which may at any time be or become subject to a Lien in favor of Agent or Lenders pursuant to the Collateral Documents or otherwise, securing the payment and performance of Obligations; but in no event
shall “Collateral” include Released Collateral. 
  
 “Collateral Documents” means the Security Agreement, any other agreement pursuant to which Borrower or any other Person provides a Lien on its assets in favor of Lenders or Agent for the benefit of Lenders and all financing
statements, fixture filings, patent, trademark and copyright filings, assignments, acknowledgments and other filings, documents and agreements made or delivered pursuant thereto. 
  
 “Collateral Procedures” means any procedures and documentation specified in Section 3(b) of the Security
Agreement for perfection of the first priority Lien of Agent (on behalf of Lenders) on the Collateral. 
  
 “Commitment” means, when used with reference to any Lender at the time any determination thereof is to be made, the amount set forth
opposite the name of such Lender on the signature pages of this Agreement, as such amount may be reduced from time to time pursuant to Section 2.14, or, where the context so requires, the obligation of such Lender to make Loans up to such amount, as
such amount may be reduced from time to time pursuant to Section 2.14, on the terms and conditions set forth in this Agreement. 
  
 “Commitment Termination Date” means June 9, 2007. 
  
 “Compliance Certificate” means a certificate of the chief financial officer of Borrower, in substantially
the form of Exhibit 1.1 C-1, with such changes thereto as Agent or any Lender may from time to time reasonably request. 
  
 “Consolidated” means, when used in connection with any financial statement or financial term, that the statement or term has been
prepared or determined on a consolidated basis in accordance with GAAP for Unified and its Subsidiaries, or for Borrower and its Subsidiaries, as the case may be. 
  
 “Consolidated Adjusted Tangible Net Worth” means, as of any date of determination, Consolidated Total
Assets plus the book value of NCB Stock plus Capital Debt minus Consolidated Total Liabilities; provided, however, that there shall be excluded from Consolidated Total Assets the following: (i) all assets which would be classified as
intangible assets in accordance with GAAP, including goodwill, organizational expense, research and development expense, patent applications, patents, trademarks, trade names, brands, copyrights, trade secrets, customer lists, licenses, franchises
and covenants not to compete; (ii) all unamortized debt discount and expense; (iii) all treasury stock; (iv) all receivables from and other obligations of directors (other than in their capacities as Unified Patrons), employees or officers of
Borrower; and (v) the excess, if any, of (A) the aggregate balance of Receivables that are more than 90 days past due, over (B) reserves for loan losses. 
  
 “Consolidated EBIT” means, for any period, Consolidated net income, plus Consolidated Interest Expense, plus income tax
expense of Borrower and its Subsidiaries on a Consolidated basis, as determined in accordance with GAAP; provided, however, that for purposes of determining Consolidated EBIT there shall be excluded from Consolidated net income any
notes or other payment in kind received by Borrower in payment of any obligations owing to it. 
  

 -4- 

 “Consolidated Interest Expense” means, for any period, interest expense (including that
attributable to Capital Leases) of Borrower and its Subsidiaries on a Consolidated basis, as determined in accordance with GAAP. 
  
 “Consolidated Tangible Net Worth” means, as of any date of determination, Consolidated Total Assets minus Consolidated Total Liabilities;
provided, however, that there shall be excluded from Consolidated Total Assets the following: (i) all assets which would be classified as intangible assets in accordance with GAAP, including goodwill, organizational expense, research
and development expense, patent applications, patents, trademarks, trade names, brands, copyrights, trade secrets, customer lists, licenses, franchises and covenants not to compete; (ii) all unamortized debt discount and expense; (iii) all treasury
stock; and (iv) all receivables from and other obligations of directors (other than in their capacities as Unified Patrons), employees or officers of Borrower or Unified. 
  
 “Consolidated Total Assets” means, as of any date of determination, the total assets of Borrower and its
Subsidiaries on a Consolidated basis, as determined in accordance with GAAP. 
  
 “Consolidated Total Liabilities” means, as of any date of determination, the total liabilities of Borrower and its Subsidiaries on a Consolidated basis, as determined in accordance with GAAP.

  
 “Controlled Group” means all members of a
controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower, are treated as a single employer under Section 414 of the Code. 
  
 “Default” means an Event of Default or an event or condition
which with notice or lapse of time or both would constitute an Event of Default. 
  
 “Deposit Fund Loans” means “Deposit Fund Loans” made to Unified Patrons by Borrower in accordance with the GCC Loan Guidelines. 
  
 “Dollars” and “$” each means lawful money of the United States. 
  
 “Eligible Collateral” means at any time the aggregate amount
of Receivables arising in the ordinary course of Borrower’s business, excluding the following: 
  
 (i) Receivables for which Borrower’s right to receive payment has not been fully earned by performance or is contingent upon the fulfillment of any
condition whatsoever or which otherwise do not arise from a bona fide completed transaction with Borrower; 
  
 (ii) Receivables which have been disputed, or against which there have been asserted any defenses, offsets, claims, counterclaims, or other defenses of
any nature, whether well-founded or otherwise, or which are otherwise conditional; 
  
 (iii) Receivables that do not comply with all applicable legal requirements, including all laws, rules, regulations and orders of any Governmental Authority; 
  
 (iv) Receivables which are not owned by Borrower free and clear of all Liens
and rights of others (other than the Liens in favor of Agent on behalf of Lenders and other than other Permitted Liens); 
  

 -5- 

 (v) Receivables in which Agent on behalf of Lenders shall not have a valid and perfected first-priority
Lien; 
  
 (vi) Receivables owing by any officer, director (other
than in his or her capacity as a Unified Patron), employee, agent, partner, Subsidiary or Affiliate of Borrower (other than Affiliate Loans); 
  
 (vii) Receivables owing by the United States or any department, agency or instrumentality thereof or by a State or any department, agency,
instrumentality or political subdivision thereof; 
  
 (viii)
Receivables denominated in a currency other than Dollars or owing by any non-resident of the United States; 
  
 (ix) Receivables not complying with the GCC Loan Guidelines and other documentation, credit and collection policies and practices of Borrower as in
effect from time to time; 
  
 (x) Receivables owing by any
Receivable Debtor who, as of the end of the previous collection period, has failed to make full payment within 90 days from the due date on the Receivables or any portion thereof owing to Borrower by such Receivable Debtor, except that if a good
faith dispute exists as to any such unpaid Receivables of a Receivable Debtor, only such unpaid Receivables shall be excluded; 
  
 (xi) Receivables owing by any Receivable Debtor who is the subject of a case or proceeding described in Section 7.l(e) or who takes any other action
described in Section 7.1(e); 
  
 (xii) Receivables which are
subordinated to the prior payment of any other obligations of the Receivable Debtor obligated in respect of such Receivable; 
  
 (xiii) Receivables with respect to which the terms or conditions prohibit or restrict assignment or collection rights or which require the consent of the
Receivable Debtor, and such consent has not been obtained; and 
  
 (xiv) Receivables with respect to which Agent, in its reasonable discretion, deems the creditworthiness or financial condition of the Receivable Debtor to be unsatisfactory or the prospect of payment or performance to be impaired, and other
Receivables which, in Agent’s reasonable discretion, are otherwise ineligible; provided that, with respect to Alternative Use Receivables, the Agent may (in its sole discretion) waive any or all of preceding clauses (iv), (v), (vi),
(vii), (ix) and/or (xii). 
  
 “Environmental
Laws” means all federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative orders, directives, requests, licenses, authorizations and permits of, and agreements
with, any Governmental Authorities, in each case relating to or imposing liability or standards of conduct concerning environmental protection matters, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the
Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation and Recovery Act, the Toxic Substances Control Act, the Emergency Planning and Community Right-to-Know Act, the
California Hazardous Waste Control Law, the California Solid Waste Management, Resource Recovery and Recycling Act, the California Water Code and the California Health and Safety Code. 
  

 -6- 

 “Equipment Loans” means “Equipment Loans” made to Unified Patrons by Borrower
in accordance with the GCC Loan Guidelines or acquired by Borrower from URI or Unified on or before the date of this Agreement. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, including (unless the context otherwise
requires) any rules or regulations promulgated thereunder. 
  
 “Eurodollar Business Day” means any Business Day on which major commercial banks are open for international business (including dealings in Dollar deposits) in Los Angeles, California, Washington, D.C., and London, England.

  
 “Eurodollar Rate” means the rate per annum
(rounded upwards if necessary to the nearest whole 1/100 of 1%), determined as the quotient of: (i) Base LIBOR; divided by (ii) the number equal to 100% minus the LIBOR Reserve Percentage. The Eurodollar Rate shall be adjusted
automatically on the effective date of any change in the LIBOR Reserve Percentage, such adjustment to affect any Eurodollar Loans outstanding on such effective date to the extent such change is applied retroactively to eurocurrency funding of a
member bank in the Federal Reserve System. Each determination of a Eurodollar Rate by Agent, including, but not limited to, any determination as to the applicability or allocability of reserves to eurocurrency liabilities or as to the amount of such
reserves, shall be conclusive and final in the absence of manifest error. 
  
 “Eurodollar Rate Loan” means any Loan bearing interest by reference to the Eurodollar Rate pursuant to a designation by Borrower under Sections 2.2 or 2.3. 
  
 “Event of Default” has the meaning set forth in Section 7.1.

  
 “Expansion Loan” has the meaning set forth in
the NCB Loan Purchase Agreement. 
  
 “Federal Funds
Rate” means, for any day, the rate per annum (rounded upward, if necessary, to the nearest 1/100 of 1%), as determined by Agent, equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for any day of determination (or if such day of determination is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Agent from three Federal funds brokers of recognized standing selected by Agent. 
  
 “Finance Receivables” means Store Development Loans,
Equipment Loans, Inventory Loans, and, if designated as Finance Receivables pursuant to Section 6.4(l), New Lease/Loan Products. 
  
 “GAAP” means generally accepted accounting principles in the U.S. as in effect from time to time. 
  
 “GCC Loan Guidelines” means the written guidelines of
Borrower for provision of financing to qualified Unified Patrons and the documentation thereof as in effect from time to time and furnished to Agent and Lenders in accordance herewith, described on Exhibit 1.1 G-1. 
  
 “Governmental Authority” means any federal, state, local or
other governmental department, commission, board, bureau, agency, central bank, court, tribunal or other instrumentality or authority, domestic or foreign, exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government. 
  

 -7- 

 “Guaranty” means that certain Second Amended and Restated Guaranty Agreement, dated as
of the date hereof, executed by Borrower in favor of NCB 
  
 “Guaranty Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend, letter of credit or other obligation (the
“primary obligations”) of another Person (the “primary obligor”), including any obligation of that Person (i) to purchase, repurchase or otherwise acquire such primary obligations or any property constituting direct or indirect
security therefor, or (ii) to advance or provide funds (A) for the payment or discharge of any such primary obligation, or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency or
any balance sheet item, level of income or financial condition of the primary obligor, or (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary
obligor to make payment of such primary obligation, or (iv) otherwise to assure or hold harmless the holder of any such primary obligation against loss in respect thereof. 
  
 “Hazardous Substances” means any toxic or hazardous substances, materials or wastes, contaminants or
pollutants, including asbestos, PCBs, petroleum products and byproducts, substances defined or listed as “hazardous substances,” “hazardous materials” or “toxic substances” (or similarly identified), regulated under or
forming the basis for liability under any applicable Environmental Law. 
  
 “Incremental Purchase” has the meaning set forth in the NCB Loan Purchase Agreement and also includes similar purchases under any Third Party Loan Purchase Agreement. 
  
 “Indebtedness” means, for any Person: (i) all indebtedness
or other obligations of such Person for borrowed money or for the deferred purchase price of property or services; (ii) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in
connection with the acquisition of property, assets or businesses; (iii) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property); (iv) all obligations under Capital Leases; (v) all reimbursement or other obligations of such Person under or in
respect of letters of credit, bankers acceptances, interest rate swaps, caps, floors and collars, currency swaps, or other similar financial products; (vi) all Guaranty Obligations of such Persons; and (vii) all indebtedness of another Person
secured by any Lien upon or in property owned by the Person for whom Indebtedness is being determined, whether or not such Person has assumed or become liable for the payment of such indebtedness of such other Person. 
  
 “Interest Period” means, with respect to each Eurodollar
Rate Loan, the period commencing on the date of such Eurodollar Rate Loan and ending one (1) or three (3) months thereafter, as Borrower may elect pursuant to the applicable Notice of Borrowing or Notice of Conversion or Continuation;
provided, however, that: 
  
 (i) any Interest
Period which would otherwise end on a day which is not a Eurodollar Business Day shall be extended to the next succeeding Eurodollar Business Day unless such Eurodollar Business Day falls in another calendar month in which case such Interest Period
shall end on the next preceding Eurodollar Business Day; 
  

 -8- 

 (ii) any Interest Period which begins on the last Eurodollar Business Day of the calendar month (or on a
day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Eurodollar Business Day of the calendar month in which it would have ended if there were a numerically
corresponding day in such calendar month; and 
  
 (iii) no
Interest Period may extend beyond the Commitment Termination Date. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, including (unless the context otherwise requires) any rules or regulations promulgated thereunder. 
  
 “Inventory Loans” means “Inventory Loans” and
secured “Inventory Deferred Loans” made to Unified Patrons by Borrower in accordance with the GCC Loan Guidelines or acquired by Borrower from URI or Unified on or before the date of this Agreement. 
  
 “Investment Agreement” means that certain Third Amended and
Restated Investment Agreement, dated as of October 2, 2000, between Borrower and Unified, as may be from time to time amended, supplemented or restated. 
  
 “IRS” means the Internal Revenue Service, or any successor thereto. 
  
 “Lender” and “Lenders” each has the meaning set forth in the introduction of this
Agreement. 
  
 “Lending Office” has the meaning
set forth in Section 2.7. 
  
 “LIBOR Reserve
Percentage” means, for any Interest Period of any Eurodollar Rate Loan, the daily average of the stated maximum rate (rounded upward to the nearest 1/100 of 1%), as determined by Agent in accordance with its usual procedures (which
determination shall be conclusive in the absence of manifest error), at which reserves are required to be maintained during such Interest Period (including supplemental, marginal, and emergency reserves) under Regulation D by Agent or Majority
Lenders against “eurocurrency liabilities” (as such term is defined in Regulation D), but without benefit or credit of proration, exemptions, or offsets that might otherwise be available to Agent or any Lender from time to time under
Regulation D. Without limiting the generality of the foregoing, “LIBOR Reserve Percentage” shall include any other reserves required by law to be maintained by Agent or Majority Lenders against (i) any category of liabilities that includes
deposits by reference to which the Eurodollar Rate for a Eurodollar Rate Loan is being determined and (ii) any category of extension of credit or other assets that includes Eurodollar Rate Loans. 
  
 “Lien” means any mortgage, deed of trust, pledge, security
interest, assignment, deposit arrangement, charge or encumbrance, lien (statutory or other), or other preferential arrangement (including any conditional sale or other title retention agreement, any financing lease having substantially the same
economic effect as any of the foregoing or any agreement to give any security interest). 
  
 “Loan” has the meaning set forth in Section 2.1(a). 
  
 “Loan Documents” means this Agreement, the Notes, the Collateral Documents and all other certificates, documents, agreements and
instruments delivered to Agent and Lenders under or in connection with this Agreement. 
  

 -9- 

 “Loan Purchase Agreements” means the NCB Loan Purchase Agreement and any Third Party
Loan Purchase Agreement. 
  
 “Majority Lenders”
means at any time Lenders holding at least 51% of the then aggregate unpaid principal amount of the Loans, or, if no such principal amount is then outstanding, Lenders having at least 51% of the aggregate Commitments at such time. 
  
 “Material Adverse Effect” means any event, matter, condition
or circumstance which (i) has or would reasonably be expected to have a material adverse effect on the business, properties, results of operations or condition (financial or otherwise) of Borrower or any of its Subsidiaries, or Unified and its
Subsidiaries taken as a whole; (ii) would materially impair the ability of Borrower or any other Person to perform or observe its obligations under or in respect of the Loan Documents; or (iii) affects the legality, validity or enforceability of any
of the Loan Documents or the perfection or priority of any Lien granted to Lenders or Agent for the benefit of Lenders under any of the Collateral Documents. 
  
 “NCB” means National Consumer Cooperative Bank, dba National Cooperative Bank, a federally chartered banking corporation with principal
offices located in Washington, D.C. 
  
 “NCB Loan Purchase
Agreement” means that certain Second Amended and Restated Loan Purchase and Servicing Agreement, dated as of the date hereof, between Borrower, as seller and servicer, and NCB, as buyer, as amended or restated from time to time. 

 
 “NCB Stock” shall have the meaning given to such term in
Section 6.3(k). 
  
 “New Lease/Loan Products”
means new lease and loan products entered into or made to Unified Patrons under new lease or loan programs in accordance with the GCC Loan Guidelines. 
  
 “Note” means a promissory note of Borrower payable to the order of a Lender with respect to such Lender’s Commitment, in
substantially the form of Exhibit 1.1 N-1. 
  
 “Notice of Borrowing” means an irrevocable notice from Borrower to Agent of Borrower’s intention to borrow, substantially in the form of Exhibit 1.1 N-2. 
  
 “Notice of Conversion or Continuation” means a written
notice given pursuant to the terms of Section 2.3, substantially in the form of Exhibit 1.1 N-3. 
  
 “Obligations” means the indebtedness, liabilities and other obligations of Borrower to Agent or any Lender under or in connection with
this Agreement, the Notes or any other Loan Documents, including all Loans, all interest accrued thereon, all fees due under this Agreement and all other amounts payable by Borrower to Agent or any Lender thereunder or in connection therewith,
whether now or hereafter existing or arising, and whether due or to become due, absolute or contingent, liquidated or unliquidated, determined or undetermined. 
  

“Operating Agreement” means that certain Third Amended and Restated Operating Agreement dated as of October 2, 2000, between Borrower
and Unified, as may be from time to time amended, supplemented or restated. 
  
 “Operating Lease” means, for any Person, any lease of any property of any kind by that Person as lessee which is not a Capital Lease. 
  

 10 

 “PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto.

  
 “Permitted Investments” means any of the
following investments denominated and payable in Dollars, maturing within one year from the date of acquisition, selected by Borrower: (i) marketable direct obligations issued or unconditionally guaranteed by the United States government or issued
by any agency thereof and backed by the full faith and credit of the United States; (ii) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof and,
at the time of acquisition, having the highest credit rating obtainable from either Standard & Poor’s Ratings Services, a division of the McGraw Hill Companies, Inc. (“S&P”), or Moody’s Investors Service, Inc.
(“Moody’s”); (iii) commercial paper or corporate promissory notes bearing at the time of acquisition the highest credit rating either of S&P or Moody’s issued by United States, Australian, Canadian, European or Japanese bank
holding companies or industrial or financial companies; (iv) certificates of deposit issued by and bankers acceptances of and interest bearing deposits with any Lender, or with any United States, Australian, Canadian, European or Japanese commercial
banks having combined capital and surplus of at least $1,000,000,000 or the equivalent and which has (or the parent of which has) long-term debt term securities bearing a credit rating from S&P of “AA” or better or from Moody’s of
“Aa2 “ or better; and (v) money market funds organized under the laws of the United States or any state thereof that invest predominantly in any of the foregoing investments permitted under clauses (i), (ii), (iii) and (iv). 
  
 “Permitted Liens” means: 
  
 (i) Liens in favor of Lenders or Agent for the benefit of Lenders to secure
the Obligations; 
  
 (ii) the existing Liens listed in
Schedule 1.1 P-1 or incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by such existing Liens, provided that any extension, renewal or replacement Lien shall be limited to the property
encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced does not increase; 
  
 (iii) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate
proceedings and which are adequately reserved for in accordance with GAAP; 
  
 (iv) Liens of materialmen, mechanics, warehousemen, carriers or employees or other like Liens arising in the ordinary course of business and securing obligations either not delinquent or being contested in good faith
by appropriate proceedings and which are adequately reserved for in accordance with GAAP and which do not in the aggregate materially impair the use or value of the property subject thereto or risk the loss or forfeiture of title thereto;

  
 (v) Liens consisting of deposits or pledges to secure the
payment of worker’s compensation, unemployment insurance or other social security benefits or obligations, or to secure the performance of bids, trade contracts, leases, public or statutory obligations, surety or appeal bonds or other
obligations of a like nature incurred in the ordinary course of business (other than for Indebtedness or any Liens arising under ERISA); 
  
 (vi) easements, rights of way, servitudes or zoning or building restrictions and other minor encumbrances on real property and irregularities in the
title to such property which do not in the aggregate materially impair the use or value of such property or risk the loss or forfeiture of title thereto; 
  

 -11- 

 (vii) statutory landlord’s Liens under leases to which Borrower or any of its Subsidiaries is a
party; 
  
 (viii) any judgment, attachment or similar Lien,
unless the judgment it secures is not fully covered by insurance and has not been discharged or execution thereof effectively stayed pending appeal within 20 days of the entry thereof, or shall not have been discharged within 20 days of the
expiration of any such stay; 
  
 (ix) Liens in favor of NCB on
the NCB Stock; and 
  
 (x) Liens granted under the Loan Purchase
Agreements, so long as such Liens attach only to the Released Collateral or to any Separate Account or Servicing Account (each as defined in the NCB Loan Purchase Agreement). 
  
 “Person” means an individual, corporation, partnership, joint venture, trust, unincorporated organization
or any other entity of whatever nature or any Governmental Authority. 
  
 “Plan” means any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code that either (a) is maintained by a member of the Controlled Group for
employees of a member of the Controlled Group or (b) is maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which a member of the Controlled Group is then
making or accruing an obligation to make contributions or has within the preceding 5 plan years made contributions. 
  
 “Premises” means any and all real property, including all buildings and improvements now or hereafter located thereon and all
appurtenances thereto, now or hereafter owned, leased, occupied or used by Borrower or any of its Subsidiaries. 
  
 “Prime Rate” means the higher of: (i) the Federal Funds Rate plus 0.25%; and (ii) the variable rate of interest, per annum, most recently
announced by Agent at its principal office in Washington, D.C., as its “prime rate,” with the understanding that the Agent’s “prime rate” is one of its base rates and serves as a basis upon which effective rates of interest
are calculated for loans making reference thereto and may not be the lowest of the Agent’s base rates. 
  
 “Prime Rate Loan” means any Loan bearing interest by reference to the Prime Rate pursuant to the designation by Borrower under Sections
2.2 or 2.3. 
  
 “Program Leases” means leases
entered into by Borrower with Unified Patrons under Borrower’s “Lease Financing Program” in accordance with the GCC Loan Guidelines. 
  
 “Purchase Notice” has the meaning set forth in the Security Agreement. 
  
 “Receivable Debtor” means any Person obligated on a Receivable. 
  
 “Receivables” means all present and future rights, interests
and claims of Borrower under and in respect of Finance Receivables, Additional Loan/Lease Receivables, Expansion Loans and Alternative Use Receivables, including all rights of Borrower to receive moneys due or to become due with respect thereto,
other than such rights, interest and claims in any Released Collateral or proceeds thereof. 
  

 -12- 

 “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve
System. 
  
 “Release” has the meaning set forth
in the Security Agreement. 
  
 “Released
Collateral” means (i) such of the Finance Receivables, Additional Loan/Lease Receivables, Alternative Use Receivables, Expansion Loans and any related assets of Borrower constituting Property (as defined in the NCB Loan Purchase Agreement
or as similarly defined in any Third Party Loan Purchase Agreement, as applicable), for which Borrower has duly executed and delivered to Agent a Purchase Notice, and Agent has duly executed and delivered a Release pursuant to Section 3(d)(ii) of
the Security Agreement, (ii) each of the “Amended and Restated Loans” and related “Property” sold to NCB prior to the “Effectiveness Date” (as each such term is defined in the NCB Loan Purchase Agreement). 

 
 “Security Agreement” means that certain Second Amended
and Restated Security Agreement between Borrower and Agent, of even date herewith, securing the Obligations, and any amendments, supplements or restatements thereto or thereof. 
  
 “Senior Debt” means the obligations and any and all other Indebtedness (if any) of the types referred to in
clauses (i), (ii) and (iv) of the definition of Indebtedness in this Section 1.1 other than Capital Debt and Subordinated Debt. 
  
 “Solvent” means, with respect to any Person on the date any determination thereof is to be made, that on such date: (a) the present fair
valuation of the property and assets of such Person is greater than such Person’s probable liability in respect of existing Indebtedness; (b) such Person does not intend to, and does not believe that it will, incur Indebtedness beyond such
Person’s ability to pay as such Indebtedness matures; and (c) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, which would leave such Person with property and assets remaining
which would constitute unreasonably small capital after giving effect to the nature of the particular business or transaction. For purposes of this definition (i) the “fair valuation” of any property or assets means the amount realizable
within a reasonable time, either through collection or sale of such property or assets at their regular market value, which is the amount obtainable by a capable and diligent Person from an interested buyer willing to purchase such property or
assets within a reasonable time under ordinary circumstances; and (ii) the term “Indebtedness” includes any payment obligation, whether or not reduced to judgment, equitable or legal, matured or unmatured, liquidated or unliquidated,
disputed or undisputed, secured or unsecured, absolute, fixed or contingent. 
  
 “Store Development Loans” means “Store Development Loans” (also referred to as “Buy/Sell Loans”) made to Unified Patrons by Borrower in accordance with the GCC Loan Guidelines or
acquired by Borrower from URI or Unified on or before the date of this Agreement. 
  
 “Subordinated Debt” means any Indebtedness of Borrower due more than one year from the date of determination which is (A) owed to any Person other than an Affiliate of Borrower, and (B) by its terms
expressly subordinated to the Senior Debt on terms satisfactory to the Majority Lenders. 
  
 “Subsidiary” means, with respect to any Person, any corporation, association, partnership, joint venture or other business entity of which more than 50% of the voting stock or other equity interest is
owned directly or indirectly by any Person or one or more of the other Subsidiaries of such Person or a combination thereof. 
  

 -13- 

 “Taxes” has the meaning set forth in Section 3.7(a). 
  
 “Buyer” means the buyer under any Third Party Loan Purchase
Agreement. 
  
 “Third Party Loan Purchase
Agreement” means any agreement, other than this Agreement, between a third party, as buyer, and Borrower, as seller and servicer, providing for the acquisition of Receivables in an aggregate amount not to exceed $20,000,000. 
  
 “UCC” means the Uniform Commercial Code of the jurisdiction
the law of which governs the Loan Document in which such term is used or the attachment, perfection or priority of the Lien on any Collateral. 
  
 “Unified” means Unified Western Grocers, Inc., a California corporation. 
  
 “Unified Loan Agreement” means the Credit Agreement, dated as of December 5, 2003, by and among Unified,
the lenders named therein and Harris Trust and Savings Bank, as Administrative Agent, as the same may be amended, supplemented or replaced from time to time. 
  
 “Unified Patron” means a member-patron or associate patron of Unified. 
  
 “United States” and “U.S.” each means the United States of America. 
  
 “URI” means United Resources, Inc., an Oregon corporation.

  
 “Welfare Plan” means a “welfare
plan” as defined in Section 3(1) of ERISA. 
  
 1.2
Accounting Terms; GAAP Changes 
  
 (a) Accounting
Terms. Unless otherwise defined or the context otherwise requires, all accounting terms used herein shall be construed in accordance with GAAP, and, except where otherwise specified, all financial data required to be delivered hereunder shall be
prepared in accordance with GAAP. 
  
 (b) GAAP Changes. If
any changes in GAAP from those used in the preparation of the financial statements referred to in Section 6.1(a) (“GAAP Changes”) hereafter occasioned by the promulgation of rules, regulations, pronouncements and opinions by or required by
the Financial Accounting Standards Board of the American Institute of Certified Public Accountants (or successors thereto or agencies with similar functions) result in a change in the method of calculation of any of the financial covenants,
standards or other terms or conditions found in this Agreement, the parties hereto agree to enter into negotiations to amend such provisions so as to reflect equitably such GAAP Changes with the desired result that the criteria for evaluating the
financial condition and performance of Borrower and its Subsidiaries shall be the same after such GAAP Changes as if such GAAP Changes had not been made. 
  
 1.3 Interpretation 
  
 In this Agreement and the other Loan Documents, except to the extent the context otherwise requires: 
  
 (i) Any reference to an Article, a Section, a Schedule or an Exhibit is a
reference to an article or Section of the particular agreement in which the reference appears, or a schedule or an exhibit to the particular agreement in which the reference appears, respectively, and to a subsection or a clause is, unless otherwise
stated, a reference to a subsection or a clause of the Section or subsection in which the reference appears. 
  

 -14- 

 (ii) The words “hereof,” “herein,” “hereto,” “hereunder” and the
like mean and refer to this Agreement or any other Loan Document as a whole and not merely to the specific Article, Section, subsection, paragraph or clause in which the respective word appears. 
  
 (iii) The meaning of defined terms shall be equally applicable to both the
singular and plural forms of the terms defined. 
  
 (iv) The
words “including,” “includes” and “include” shall be deemed to be followed by the words “without limitation.” 
  
 (v) References to agreements and other contractual instruments shall be deemed to include all subsequent amendments and other modifications thereto, but
only to the extent such amendments and other modifications are not prohibited by the terms of the Loan Documents. 
  
 (vi) References to statutes or regulations are to be construed as including all statutory and regulatory provisions consolidating, amending or replacing
the statute or regulation referred to. 
  
 (vii) Any table of
contents, captions and headings are for convenience of reference only and shall not affect the construction of this Agreement or any other Loan Document. 
  
 ARTICLE II 
 THE LOANS 

 
 2.1 The Loans 
  
 (a) Borrowing Availability. Each Lender severally agrees, on the
terms and conditions hereinafter set forth, to make revolving loans (each a “Loan” and, collectively, the “Loans”) to Borrower from time to time from the Closing Date up to but not including the Commitment Termination Date, in an
aggregate principal amount up to but not exceeding at any time such Lender’s Commitment; provided, however, that immediately after giving effect to such Loans the aggregate principal amount of Loans then outstanding shall not
exceed the Borrowing Base. Within the foregoing limits, during such period Borrower may borrow, repay the Loans in whole or in part, and reborrow, all in accordance with the terms and conditions hereof. Without limiting the generality of the
foregoing, for all purposes hereof, “Loan” shall include each Amended and Restated Credit Agreement Loan and “Loans” shall include all Amended and Restated Credit Agreement Loans. The Amended and Restated Credit Agreement Loans
consisting of Prime Rate Loans (if any) shall no longer be characterized as Amended and Restated Credit Agreement Loans on and after the Closing Date. The Amended and Restated Credit Agreement Loans consisting of Eurodollar Rate Loans (if any)
shall, upon the expiration of the Interest Period applicable thereto on the Closing Date, no longer be characterized as Amended and Restated Credit Agreement Loans. 
  
 (b) Payment of Overadvance. All Loans shall be added to and be deemed part of the Obligations when made or extended.
If, at any time and for any reason, the aggregate amount of the Loans exceeds the percentages or limitations set forth in Section 2.l(a), Borrower shall immediately pay to Agent, on behalf of Lenders, in immediately available Dollars, the amount of
such excess. 
  

 -15- 

 2.2 Borrowing Procedure 
  
 (a) Date of Borrowing. Each Borrowing of a Prime Rate Loan shall be made on a Business Day and each Borrowing of a
Eurodollar Rate Loan shall be made on a Eurodollar Business Day. 
  
 (b) Notice of Borrowing. Each Borrowing shall be made upon written notice by way of a Notice of Borrowing, given by telex, telecopy, mail, or personal service, delivered to Agent at Agent’s office located at 1725 Eye Street NW,
Suite 600, Washington, D.C. 20006, setting forth the amount of the requested Loan in accordance with Section 2.1(a), the date on which the requested Loan is to be made, whether the Borrowing is of a Prime Rate Loan or a Eurodollar Rate Loan, and, in
the latter case, the requested Interest Period. If for a Prime Rate Loan, Agent shall be given notice no later than 2:00 p.m., Washington, D.C. time, on the day on which such Prime Rate Loan is to be made, and, if for a Eurodollar Rate Loan, Agent
shall be given notice at least 3 Eurodollar Business Days prior to the day on which such Eurodollar Rate Loan is to be made, and such notice shall state the amount thereof (subject to the provisions of this Article II). 
  
 2.3 Conversion or Continuation Requirements 
  
 (a) Option to Convert or Continue. Borrower shall have the option to:
(i) convert, at any time, all or any part of the outstanding Loans equal to One Million Dollars ($1,000,000), and integral multiples of $100,000 in excess of such amount, from a Prime Rate Loan to a Eurodollar Rate Loan and vice-versa; or (ii) upon
the expiration of any Interest Period applicable to a Eurodollar Rate Loan, to continue all or any portion of the Eurodollar Rate Loan as a Eurodollar Rate Loan, with the succeeding Interest Period(s) of such continued Eurodollar Rate Loan
commencing on the expiration date of the Interest Period previously applicable thereto; provided, however, that a Eurodollar Rate Loan may only be converted into a Prime Rate Loan or continued as a Eurodollar Rate Loan on the
expiration date of the Interest Period applicable thereto; provided further, however, that no outstanding Loan may be continued as, or be converted into, a Eurodollar Rate Loan in the event that, on the earlier of the date of
the delivery of the Notice of Conversion or Continuation or the telephonic notice in respect thereof, any Default has occurred and is continuing; provided further, however, that if Borrower fails to deliver the appropriate
Notice of Conversion or Continuation or the telephonic notice in respect thereof, pursuant to the required notice period, before the expiration of the Interest Period of a Eurodollar Rate Loan, such Eurodollar Rate Loan shall automatically be
converted to a Prime Rate Loan. 
  
 (b) Notice of Conversion or
Continuation. Borrower shall deliver a Notice of Conversion or Continuation, given by telex, telecopy, mail, or personal service, delivered to Agent at 1725 Eye Street NW, Suite 600, Washington, D.C. 20006, no later than 2:00 p.m., Washington,
D.C. time, on the proposed conversion date (in the case of a conversion to a Prime Rate Loan), and at least 3 Eurodollar Business Days in advance of the proposed conversion or continuation date (in the case of a conversion to, or a continuation of,
a Eurodollar Rate Loan). If such Notice of Conversion or Continuation is received by Agent not later than 2:00 p.m., Washington, D.C. time, on a Eurodollar Business Day such day shall be treated as the first Eurodollar Business Day of the required
notice period. In any other event, such notice will be treated as having been received at the opening of business of the next Eurodollar Business Day. A Notice of Conversion or Continuation shall specify: (1) the proposed conversion or continuation
date (which shall be a Business Day or a Eurodollar Business Day, as applicable); (2) the amount of the Loan to be converted or continued; (3) the nature of the proposed conversion or continuation; and (4) in the case of a conversion to, or
continuation of, a Eurodollar Rate Loan, the requested Interest Period. 
  

 -16- 

 (c) [Intentionally Omitted] 
  
 (d) Irrevocable Notice. Any Notice of Continuation or Conversion (or telephonic notice in respect thereof) shall be
irrevocable and Borrower shall be bound to convert or continue in accordance therewith. 
  
 (e) Notice to Lenders. Upon receipt of a Notice of Continuation or Conversion (or telephonic notice in respect thereof), the Agent shall promptly notify each Lender of the contents thereof. 
  
 (f) Amended and Restated Credit Agreement Loans. (i) That portion, if
any, of the Amended and Restated Credit Agreement Loans consisting of Prime Rate Loans (as defined in the Amended and Restated Credit Agreement) shall, on the Closing Date, be maintained hereunder as Prime Rate Loans. Thereafter, the Borrower may,
subject to the terms and conditions of this Agreement, maintain such Loans as Prime Rate Loans or convert all or a portion of such Loans to Eurodollar Rate Loans. (ii) That portion, if any, of the Amended and Restated Credit Agreement Loans
consisting of Eurodollar Rate Loans shall, on and after the Closing Date, be maintained hereunder as Eurodollar Rate Loans until the expiration of the Interest Period(s) applicable thereto. Thereafter, the Borrower may, subject to the terms and
conditions of this Agreement, continue such Loans as Eurodollar Rate Loans or convert such Loans to Prime Rate Loans. 
  
 2.4 Eurodollar Costs. 
  
 (a) Borrower shall reimburse Agent or Lenders for any increase in their costs (which shall include, but not be limited to, taxes, other than taxes imposed
on the overall net income of Agent or Lenders, fees or charges), or any loss or expense (including, without limitation, any loss or expense incurred by reason of the liquidation or re-employment of deposits or other funds acquired by Agent or
Lenders to fund or maintain outstanding the principal amount of the Loans) incurred by them directly or indirectly resulting from the making of any Eurodollar Rate Loan due to: (i) the modification, adoption, new application or enactment of any law,
regulation or treaty or the interpretation thereof by any governmental or other authority (whether or not having the force of law); (ii) compliance by Agent or Lenders with any request or directive (whether or not having the force of law) of any
monetary or fiscal agency or authority; (iii) violations by Borrower of the terms of this Agreement; or (iv) any prepayment of a Eurodollar Rate Loan at any time prior to the end of the applicable Interest Period. 
  
 (b) The amount of such costs, losses, or expenses shall be determined solely
by Agent or any Lender asserting such claim for reimbursement based upon the assumption that Agent or any such Lender funded 100% of each Eurodollar Rate Loan in the Eurodollar market. In attributing Agent’s or any such Lender’s general
costs relating to its eurocurrency operations to any transaction under this Agreement, or averaging any costs over a period of time, Agent or such Lender may use any reasonable attribution or averaging methods which it deems appropriate and
practical. Agent or such Lender shall notify Borrower of the amount due Agent or such Lender pursuant to this Section 2.4 in respect of any Eurodollar Rate Loan as soon as practicable but in any event within 45 days after the last day of the
Interest Period of such Loan and Borrower shall pay to Agent or such Lender the amount due within 15 days of its receipt of such notice. A certificate as to the amounts payable pursuant to the foregoing sentence, together with whatever detail is
reasonably available to Agent or such Lender, shall be submitted by Agent or such Lender to Borrower. Such determination shall, if 
  

 -17- 

 not objected to within 10 days, be conclusive and binding upon Borrower in the absence of manifest error. If Agent or any
Lender claim increased costs, losses or expenses pursuant to this Section 2.4, then Agent or such Lender, if requested by Borrower, will use reasonable efforts to take such steps, that Borrower reasonably requests, including designating different
lending offices, as would eliminate or reduce the amount of such increased costs, losses or expenses, so long as taking such steps would not, in the judgment of Agent or such Lender, otherwise be disadvantageous to Agent or such Lender. Any recovery
by Agent or any Lender or their Lending Offices of amounts previously borne by Borrower pursuant to this Section 2.4 shall be promptly remitted, without interest (unless the affected Lender received interest on such recovered amounts), to Borrower
by Agent or any such Lender. 
  
 2.5 Illegality;
Impossibility 
  
 In the event that any change in
circumstances or any law, regulation, treaty or directive, or any change therein or in the interpretation or application thereof, shall at any time in the reasonable opinion of Agent or Majority Lenders make it unlawful or impractical for Agent or
Majority Lenders to fund or maintain a Eurodollar Rate Loan in the Eurodollar market or to continue such funding or maintaining, or to determine or charge interest rates based upon any appropriate Eurodollar Rate, Agent shall give notice of such
circumstances to Borrower and (i) in the case of any Eurodollar Rate Loan which is outstanding, Borrower shall, if requested by Agent, prepay such Eurodollar Rate Loan on or before the date specified in such request, together with interest accrued
thereon and any amounts due pursuant to Section 2.4, and concurrently with any such prepayment, Lenders shall make a Prime Rate Loan to Borrower in a principal amount equal to the principal amount of the Eurodollar Rate Loan so prepaid, and (ii)
Lenders shall not be obligated to make any further Eurodollar Rate Loans to Borrower until Agent or Majority Lenders shall determine that it would no longer be unlawful or impractical to do so. If Agent or Majority Lenders shall give any notice
pursuant to this Section 2.5, then Agent or Majority Lenders, if requested by Borrower, will use reasonable efforts to take such steps, that Borrower reasonably requests, including designating different Lending Offices, as would avoid the illegality
or impracticality which is the subject of such notice, so long as taking such steps would not, in the judgment of Agent or Majority Lenders, otherwise be disadvantageous to Agent or such Lenders. 
  
 2.6 Inability to Determine Eurodollar Rate. 
  
 Notwithstanding anything herein to the contrary, if Agent reasonably
determines (which determination shall be conclusive) that (a) Agent is unable to determine the Eurodollar Rate with respect to any Notice of Borrowing or Notice of Conversion or Continuation selecting the Eurodollar Rate because quotations of
interest rates for the relevant deposits are not being provided in the relevant amounts or for the relative maturities or (b) the Eurodollar Rate will not adequately reflect the cost to Majority Lenders of making or funding Eurodollar Rate Loans,
then (i) the right of Borrower to select the Eurodollar Rate shall be suspended until Agent notifies Borrower that the circumstances causing such suspension no longer exist, and (ii) Borrower shall repay in full the then outstanding principal
balance of all Eurodollar Rate Loans, together with interest accrued thereon, on the last day of the Interest Period applicable to each such Eurodollar Rate Loan. 
  
 2.7 Lending Offices 
  

The Loans made by each Lender may be made from and maintained at such offices (each a “Lending Office”) of such Lender or its Affiliates as
such Lender may from time to time designate (whether or not such office or Affiliate is specified on the signature pages hereof). A Lender shall not elect a Lending Office that, at the time of making such election, increases the amounts which would
have been payable by Borrower to such Lender under this Agreement in the absence of such 
  

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 election. With respect to Eurodollar Rate Loans made from and maintained at any Lender’s foreign offices or
Affiliates, the obligation of Borrower to repay such Eurodollar Rate Loans shall nevertheless be to such Lender and shall, for all purposes of this Agreement (including for purposes of the definition of the term “Majority Lenders”) be
deemed made or maintained by it, for the account of any such office or Affiliate. 
  
 2.8 Notes; Recordkeeping; Statements of Obligations 
  
 (a) Notes. As additional evidence of the Indebtedness of Borrower to each Lender resulting from the Loans made by such Lender, Borrower shall
execute and deliver for the account of each Lender, a Note, dated the Closing Date, setting forth such Lender’s Commitment as the maximum principal amount thereof. 
  
 (b) Recordkeeping. Each Lender shall record in its internal records the date and amount of each Loan made, each
conversion to a different interest rate, each relevant Interest Period, the amount of principal and interest due and payable from time to time hereunder, each payment thereof and the resulting unpaid principal balance of such Loan. Any such
recordation shall be rebuttable presumptive evidence of the accuracy of the information so recorded. Any failure so to record or any error in doing so shall not, however, limit or otherwise affect the obligations of Borrower hereunder and under any
Note to pay the principal of and interest on the Loans. 
  
 (c)
Monthly Statements. Agent shall render monthly statements of the Obligations, including statements of all principal, interest, and Agent’s Expenses owing, and such statements shall be presumed to be correct and accurate and constitute an
account stated between Borrower and Agent unless, within 30 days after receipt thereof by Borrower, Borrower shall deliver to Agent, in accordance with Section 11.3, written objection thereof specifying the error or errors, if any, contained in any
such statement. 
  
 2.9 Loans by Lenders 

 
 (a) Pro Rata Loans by Lenders. Agent shall promptly notify each
Lender of that Lender’s pro rata portion of a Borrowing requested pursuant to Section 2.2. Not later than 2:00 p.m., Washington, D.C. time, on the date specified by Agent, which shall be at least weekly, each Lender, subject to the terms and
conditions hereof, shall make its pro rata portion (as advised by Agent) of the Borrowing available, in immediately available Dollars, to Agent at Agent’s office located at 1725 Eye Street NW, Suite 600, Washington, D.C. 20006, together with
interest thereon accrued from the date of such Borrowing to the date on which Lender initiates payment to Agent at the Prime Rate. 
  
 (b) Lender’s Failure to Fund. Each Lender’s obligation to make any Loan pursuant hereto is several, and not joint or joint and several,
and is not conditioned upon the performance by each, any, or all of the other Lenders of their obligations to make Loans. The failure by any Lender to perform its obligation to make Loans will not affect or increase any other Lender’s share of
the Commitment. Agent shall notify Lenders of the failure by any Lender to perform its obligation to make a Loan required to be made by it hereunder and any Lender (other than a Lender that has failed to perform its obligation to make its Loan) may,
if it desires, assume, in such proportion as Agent may determine, the obligation to make Loans of the nonperforming Lender or Lenders, but no Lender shall be obligated to do so. 
  

 -19- 

 2.10 Pro Rata Treatment 
  
 Except as otherwise provided in this Agreement, each Borrowing hereunder, each payment (including each prepayment) by
Borrower on account of the principal of and interest on the Loans and on account of any upfront fee or commitment fee, and each conversion or continuation of Loans, shall be made ratably in accordance with the Commitments. 
  
 2.11 Payments; Application 
  
 (a) Payments by Borrower. Borrower shall make each payment hereunder
or under the Notes by making, or causing to be made, the amount thereof available to Agent, for the account of each Lender, in immediately available Dollars, by deposit to Agent’s Account (or at such other location as Agent may designate, in
writing, from time to time), not later than 2:00 p.m., Washington, D.C. time, on the date when due. 
  
 (b) Payments from Account Debtors. Unless and until Agent gives Borrower other written instructions, Borrower shall instruct all Receivable Debtors
and other account debtors of Borrower to remit all payments as contemplated under the Operating Agreement. Upon the occurrence of an Event of Default, Agent may instruct Receivable Debtors and other account debtors, in each case with respect to
Receivables generated by Borrower, to remit all payments to post office boxes which have been established as lock boxes by Agent and Borrower, and, in such event, all checks and other payments received by Agent shall be applied by Agent, in
accordance with the provisions of Section 2.11(c), in reduction of the Obligations. The receipt of any check or other payment by Agent shall not be considered a payment on account until such check or other payment is honored when presented for
payment by Agent and has been paid to Agent. 
  
 (c)
Application of Payments. In the event of receipt of direct collections by Agent, all checks and other instruments received by Agent in payment of or on account of the Obligations constitute only conditional payment until such items are
actually paid to Agent. Agent will credit Borrower with any such payments made by check or other instruments on the same day that such items are credited to Agent by their depositary bank. All such payments shall be deemed made to each Lender and
shall constitute satisfaction of Borrower’s obligations to each Lender with respect to the Loans so repaid on the same day that such items are credited to Agent by their depositary bank in compliance with the terms of this Section 2.11(c).
Borrower waives the right to direct the application of, any and all payments at any time or times hereafter received by Agent on account of the Obligations and Borrower agrees that Agent shall have the continuing exclusive right to apply and reapply
such payments in any manner as Agent may deem advisable, notwithstanding any entry by Agent upon its books. 
  
 (d) Payments to Lenders. Agent will promptly distribute to each Lender its ratable share of each payment received by Agent for the account of
Lenders. 
  
 2.12 Non-Receipt of Funds 

 
 Unless Agent shall have received notice from Borrower prior to the date
on which any payment is due to any Lender hereunder that Borrower shall not make such payment in full, Agent may assume that Borrower has made such payment in full to Agent on such date and Agent may, in reliance upon such assumption, cause to be
distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent Borrower shall not have so made such payment in full to Agent, each Lender shall repay to Agent forthwith on demand such amount
distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to Agent, at the Federal Funds Rate. 
  

 -20- 

 2.13 Termination of the Commitments; Repayment of the Loans 
  
 The Commitments shall terminate on the Commitment Termination Date. Borrower
shall repay to Lenders in full on the Commitment Termination Date the aggregate principal amount of the Loans outstanding on such date plus all accrued but unpaid interest thereon. 
  
 2.14 Voluntary Commitment Reductions 
  
 Prior to the Commitment Termination Date, Borrower shall have the right, at any time and from time to time, subject to
Section 2.4, to voluntarily reduce permanently the unfunded and unused portion of the Commitments. Borrower shall give Agent not less than 10 Business Days’ prior written notice designating the date (which shall be a Business Day) of such
reduction and the amount of such reduction. Such reduction shall be effective on the date specified in Borrower’s notice given in compliance herewith. Any reduction shall be in a minimum amount of $5,000,000 and, thereafter, in any integral
multiple of $1,000,000, divided among the Lenders on a pro-rata basis. 
  
 ARTICLE III 
 INTEREST, PAYMENTS, FEES AND TAXES 
  
 3.1 Interest 
  
 (a) Rates. Borrower shall pay interest on the unpaid principal amount of each Loan at the following rates: 
  
 (i) in respect of each Prime Rate Loan, at a per annum rate equal at all
times to the Prime Rate; and 
  
 (ii) in respect of each
Eurodollar Rate Loan, at a per annum rate equal at all times during each Interest Period for such Eurodollar Rate Loan to the Eurodollar Rate for such Interest Period plus 2.25%. 
  
 Unless otherwise requested by Borrower, all Loans shall bear interest at the rate specified in Section 3.1(a)(i). 
  
 (b) Overdue Payment Rate. In the event that any amount of principal of
or interest on any Loan, or any other amount payable hereunder or under the Notes, is not paid in full when due (whether at stated maturity, by acceleration or otherwise), Borrower agrees to pay interest on such unpaid principal, interest or other
amount, from the date such amount becomes due until the date such amount is paid in full, payable on demand, at a per annum rate equal at all times to 2% in excess of the rates otherwise applicable thereto. 
  
 3.2 Interest Payment Dates 
  
 Except as otherwise provided in Section 3.1(b), and, unless sooner
accelerated pursuant to Section 7.2, interest on the Loans shall be payable in arrears on the following dates: 
  
 (a) Prime Rate Loans. Interest on each Prime Rate Loan (including any Amended and Restated Credit Agreement Loans consisting of Prime Rate Loans
(as defined in the 
  

 -21- 

 Amended and Restated Credit Agreement)) shall be payable (i) monthly on the first Business Day of each month commencing
on July 1, 2004 (ii) on the date of any prepayment or conversion of any such Prime Rate Loan, and (iii) on the Commitment Termination Date; 
  
 (b) Eurodollar Rate Loans. Interest on each Eurodollar Rate Loan (including any Amended and Restated Credit Agreement Loans consisting of
Eurodollar Rate Loans) shall be payable (i) on the last day of each Interest Period for such Eurodollar Rate Loan, and (ii) on the Commitment Termination Date; provided that if any prepayment, conversion or continuation is effected other than on the
last day of such Interest Period, accrued interest on such Eurodollar Rate Loan shall be due on such prepayment, conversion or continuation date as to the principal amount of such Eurodollar Rate Loan prepaid, converted or continued. 
  
 (c) Holidays. Any payment (other than in respect of a Eurodollar Rate
Loan) which would otherwise become due on a day other than a Business Day, shall instead become due on the next succeeding Business Day and such extension shall be reflected in the computation of any payments hereunder on such adjusted date.

  
 3.3 Fees 
  
 (a) Unused Line Fee. Borrower agrees to pay to Agent for the account
of each Lender an unused line fee on the average daily unused portion of such Lender’s Commitment as in effect from time to time from the Closing Date until the Commitment Termination Date at the rate of 0.125% per annum, payable (i) quarterly
in arrears on the first Business Day of each April, July, October and January, commencing on the first such date after the Closing Date, and (ii) on the Commitment Termination Date. 
  
 (b) Agent’s Fee. Borrower agrees to pay to Agent an annual fee in the amount of $25,000, payable (i) in arrears,
in quarterly installments of $6,250 each on the first Business Day of each of April, July, October and January, commencing on the first such date after the Closing Date and (ii) on the Commitment Termination Date, at which time a final installment
of $6,250 shall be due and payable. 
  
 (c) Audit Expenses.
Borrower agrees to pay to Agent and Lenders, upon demand therefor, all out of pocket audit expenses actually incurred by Agent and/or Lenders in connection with each audit conducted pursuant to Section 6.3(e), regardless of frequency of such audits.

  
 3.4 Computation of Interest and Fees 

 
 All computations of interest and unused line fees for any period shall be
calculated on the basis of a year of 360 days for the actual days elapsed in such period. Interest shall accrue from the first day of the making of a Loan to the date of repayment of such Loan in accordance with the provisions of this Agreement;
provided, however, that if a Loan is repaid on the same day on which it is made, then one day’s interest shall be paid on that Loan. Any and all interest not paid when due shall thereafter be deemed to be a Prime Rate Loan made
under Section 2.1 and shall bear interest thereafter as provided for in Section 3.1(a)(i) to the greatest extent permitted by law. 
  
 3.5 Highest Lawful Rate 
  
 Anything herein to the contrary notwithstanding, if during any period for which interest is computed hereunder, the applicable interest rate, together
with all fees, charges and other payments which are treated as interest under applicable law, as provided for herein or in any other 
  

 -22- 

 Loan Document, would exceed the maximum rate of interest which may be charged, contracted for, reserved, received or
collected by any Lender in connection with this Agreement under applicable law (the “Maximum Rate”), Borrower shall not be obligated to pay, and such Lender shall not be entitled to charge, collect, receive, reserve or take, interest in
excess of the Maximum Rate, and during any such period the interest payable hereunder shall be limited to the Maximum Rate. 
  
 3.6 Increased Risk-Based Capital Cost 
  
 If the amount of capital required or expected to be maintained by any Lender or any Person directly or indirectly owning or controlling such Lender (each
a “Control Person”), shall be affected by: 
  
 (i) the
introduction or phasing in of any law, rule or regulation after the date hereof, 
  
 (ii) any change after the date hereof in the interpretation of any existing law, rule or regulation by any central bank or United States or foreign governmental authority charged with the administration thereof, or

  
 (iii) compliance by such Lender or such Control Person with
any directive, guideline or request from any central bank or United States or foreign governmental authority (whether or not having the force of law) promulgated or made after the date hereof, and such Lender shall have reasonably determined that
such introduction, phasing in, change or compliance shall have had or will thereafter have the effect of reducing (x) the rate of return on such Lender’s or such Control Person’s capital, or (y) the asset value to such Lender or such
Control Person of the Loans made or maintained by such Lender, in either case to a level below that which such Lender or such Control Person could have achieved or would thereafter be able to achieve but for such introduction, phasing in, change or
compliance (after taking into account such Lender’s or such Control Person’s policies regarding capital), in either case by an amount which such Lender in its reasonable judgment deems material, then, promptly upon demand by such Lender
given concurrently to Agent and Borrower, Borrower shall pay to such Lender or such Control Person such additional amount or amounts as shall be sufficient to compensate such Lender or such Control Person, as the case may be, for such reduction.
Each Lender shall use its commercial best efforts to notify Agent and Borrower within 45 days of such Lender obtaining notice that amounts will be due under this Section 3.6; provided, however, any failure by any Lender to so notify
Agent or Borrower, shall not limit or otherwise affect the obligations of Borrower hereunder to pay such amounts. 
  
 3.7 Taxes 
  
 (a) No Reduction of Payments. Borrower shall pay all amounts of principal, interest, fees and other amounts due hereunder free and clear of, and
without reduction for or on account of, any present and future taxes, levies, imposts, duties, fees, assessments, charges, deductions or withholdings and all liabilities with respect thereto excluding in the case of each Lender and Agent, income and
franchise taxes imposed on it by the jurisdiction under the laws of which such Lender or Agent is organized or in which its principal executive offices may be located or any political subdivision or taxing authority thereof or therein, and by the
jurisdiction of such Lender’s Lending Office and any political subdivision or taxing authority thereof or therein (all such nonexcluded taxes, levies, imposts, duties, fees, assessments, charges, deductions, withholdings and liabilities being
hereinafter referred to as “Taxes”). If any Taxes shall be required by law to be deducted or withheld from any payment, Borrower shall increase the amount paid so that the respective Lender receives, or Agent receives, when due (and is
entitled to retain), after deduction or withholding for or on account of such Taxes (including deductions or withholdings applicable to additional sums payable under this Section 3.7), the full amount of the payment provided for in this Agreement.

  

 -23- 

 (b) Deduction or Withholding; Tax Receipts. If Borrower makes any payment hereunder in respect of
which it is required by law to make any deduction or withholding, it shall pay the full amount to be deducted or withheld to the relevant taxation or other authority within the time allowed for such payment under applicable law and promptly
thereafter shall furnish to Agent (for itself or for redelivery to the Lender to or for the account of which such payment was made) an original or certified copy of a receipt evidencing payment thereof, together with such other information and
documents as Agent or any Lender (through Agent) may reasonably request. 
  
 (c) Indemnity. If any Lender or Agent is required by law to make any payment on account of Taxes, or any liability in respect of any Tax is imposed, levied or assessed against any Lender or Agent, Borrower
shall indemnify Agent and Lenders for and against such payment or liability, together with any incremental taxes, interest or penalties, and all costs and expenses, payable or incurred in connection therewith, including Taxes imposed on amounts
payable under this Section 3.7, whether or not such payment or liability was correctly or legally asserted. A certificate of Agent or any Lender as to the amount of any such payment shall, in the absence of manifest error, be conclusive and binding
for all purposes. 
  
 (d) Forms 1001 and 4224. Each Lender
that is incorporated under the laws of any jurisdiction outside the United States agrees to deliver to Agent and Borrower on or prior to the Closing Date, and in a timely fashion thereafter, Form 1001, Form 4224 or such other documents and forms of
the United States Internal Revenue Service, duly executed and completed by such Lender, as are required under United States law to establish such Lender’s status for United States withholding tax purposes. 
  
 (e) Mitigation. Each Lender agrees that as promptly as practicable
after it becomes aware of the occurrence of an event that would cause Borrower to make any payment in respect of Taxes to such Lender or a payment in indemnification with respect to any Taxes, and in any event if so requested by Borrower following
such occurrence, each Lender shall use reasonable efforts to make, fund or maintain its affected Loan (or relevant part thereof) through another Lending Office if as a result thereof the additional amounts so payable by Borrower would be avoided or
materially reduced and if, in the reasonable opinion of such Lender, the making, funding or maintaining of such Loan (or relevant part thereof) through such other Lending Office would not in any material respect be disadvantageous to such Lender or
contrary to such Lender’s normal banking practices. 
  
 ARTICLE IV 
 CONDITIONS PRECEDENT 
  
 4.1 Conditions Precedent to the Initial Loans and Maintenance of Amended and Restated Credit Agreement Loans

  
 The obligations hereunder of each Lender, including the
obligation to make its initial Loan(s) hereunder and to maintain any Amended and Restated Credit Agreement Loan hereunder, shall be subject to the satisfaction of each of the following conditions precedent on or before the Closing Date: 

 
 (a) Fees. Borrower shall have paid all fees then due in accordance
with Section 3.3. 
  

 -24- 

 (b) Loan Documents. Agent shall have received (i) this Agreement and the Notes, duly executed by
Borrower; and (ii) the Collateral Documents duly executed by each of the respective parties thereto. 
  
 (c) UCC Search. Agent shall have received the results, dated as of a recent date prior to the Closing Date, of searches conducted in the UCC filing
records in each of the governmental offices in each jurisdiction in which personal property and fixture Collateral is located, which shall have revealed no Liens with respect to any of the Collateral except Permitted Liens. 
  
 (d) Additional Closing Documents. Agent shall have received the
following, in form and substance satisfactory to it: 
  
 (i) a
certificate of the chief financial officer of Borrower, dated the Closing Date, certifying copies of the Investment Agreement (setting forth such terms and conditions as Agent shall require and otherwise in form and substance satisfactory to Agent
and its counsel), the Operating Agreement (setting forth such terms and conditions as Agent shall require and otherwise in form and substance satisfactory to Agent and its counsel), the GCC Loan Guidelines (including therein descriptions of Program
Leases) and all agreements and documents relating to outstanding Subordinated Debt and Capital Debt; 
  
 (ii) certificates of one or more nationally recognized insurance brokers or other insurance specialists acceptable to Agent, dated as of a recent date
prior to the Closing Date, evidencing that all insurance with respect to Borrower required under this Agreement and the Collateral Documents is in full force and effect, naming Agent as loss payee with respect to casualty coverages and as additional
insured with respect to all general liability coverages; 
  
 (iii) evidence that all (A) authorizations or approvals, and all material licenses, permits or authorizations, of any Governmental Authority and (B) approvals or consents of any other Person, required in connection with the execution,
delivery and performance of the Loan Documents or the operation and conduct of Borrower’s business and ownership of its properties shall have been obtained and shall be in full force and effect; 
  
 (iv) (in sufficient copies for Lenders) the unaudited Consolidated financial
statements of Borrower and its Subsidiaries as at December 31, 2003; 
  
 (v) a completed Borrowing Base Certificate as of April 30, 2004, together with the related collateral reports and information, also as of such date, specified in Section 6.1(a)(vii); 
  
 (vi) a certificate of the chief financial officer of Borrower, dated the
Closing Date, stating that (A) the representations and warranties contained in Article V and in the other Loan Documents are true and correct on and as of the date of such certificate as though made on and as of such date, (B) on and as of the
Closing Date, no Default shall have occurred and be continuing or shall result from the initial Borrowing or the maintenance of the Amended and Restated Credit Agreement Loans, (C) no Material Adverse Effect has occurred and is continuing and (D) no
“Event of Default” under (and as defined in) the Unified Loan Agreement shall have occurred and be continuing or shall result from the initial Borrowing or the maintenance of the Amended and Restated Credit Agreement Loans; 
  

 -25- 

 (vii) a certificate of the chief financial officer of Borrower, attesting that both before and after
giving effect to the transactions contemplated by this Agreement, Borrower is and will be Solvent; and 
  
 (viii) a certificate of the chief financial officer of Borrower, attesting that there is no pending or threatened litigation, proceeding, inquiry or
other action seeking an injunction, restraining order, damages or other relief of any kind or nature whatsoever, legal or equitable, with respect to the transactions contemplated by this Agreement, the Collateral Documents, or Borrower’s other
business activities. 
  
 (e) Corporate Documents. Agent
shall have received the following, in form and substance satisfactory to it: 
  
 (i) certified copies of the articles of incorporation of Borrower, together with certificates as to good standing and tax status, from the Secretary of State or other Governmental Authority, as applicable, of
Borrower’s state of incorporation and certificates from the Secretary of State or other Governmental Authority, as applicable, of each other state where Borrower is qualified to do business as a foreign corporation as to Borrower’s status
as a foreign corporation and tax status, each dated as of a recent date prior to the Closing Date; and 
  
 (ii) a certificate of the Secretary or Assistant Secretary of Borrower, dated the Closing Date, certifying (A) copies of the bylaws of Borrower and the
resolutions of the Board of Directors of Borrower authorizing the execution, delivery and performance of the Loan Documents and (B) the incumbency, authority and signatures of each Authorized Officer who will act as such in connection with the Loan
Documents. 
  
 (f) Legal Opinion. Agent shall have
received the opinion of Sheppard, Mullin, Richter & Hampton LLP, counsel to Borrower, dated the Closing Date, in substantially the form of the opinion rendered by such law firm in connection with the Amended and Restated Credit Agreement.

  
 (g) Due Diligence and Other Matters. Agent shall have
completed its due diligence investigation of Borrower, and shall be satisfied, in its sole discretion, with the results thereof, including an investigation confirming that there has not occurred a substantial impairment of the financial markets
generally. 
  
 4.2 Conditions Precedent to All
Loans. 
  
 The obligation of each Lender to make a Loan on
the occasion of each Borrowing, including the initial Loan, shall be subject to the satisfaction of each of the following conditions precedent: 
  
 (a) Notice. Borrower shall have given the Notice of Borrowing or telephonic notice thereof as provided in Section 2.2. 
  
 (b) Borrowing Base Certificate and Collateral Reports. Borrower shall
have delivered to Agent a completed Borrowing Base Certificate dated as of a date at least as recent as that required under Section 6.1(a)(vii), in form and substance satisfactory to Agent, together with the related collateral reports and
information required under Section 6.1(a)(vii), and the statements contained therein shall be true and correct on and as of the date thereof. The giving of any Notice of Borrowing and the acceptance by Borrower of the proceeds of a Borrowing shall
each be deemed a certification to Agent and Lenders that on and as of the date of such Borrowing such statements are true and correct as of the date of such Borrowing Base Certificate and that any changes in the information set forth therein have
been only in the ordinary course of business. 
  

 -26- 

 (c) Collateral. Agent shall have received, in form and substance satisfactory to it, evidence that
all filings, registrations and recordings have been made in the appropriate governmental offices, and all other action has been taken, which shall be necessary to create, in favor of Agent on behalf of Lenders, a perfected first priority Lien on the
Collateral, including the filing of completed UCC-1 financing statements in the appropriate governmental offices, any necessary deliveries of Collateral (including all Collateral consisting of instruments) to the extent and in the manner provided in
Section 3 of the Security Agreement, together with appropriate endorsements, and compliance with all other Collateral Procedures. 
  
 (d) Material Adverse Effect. On and as of the date of such Borrowing, there shall have occurred no Material Adverse Effect since the date of this
Agreement (in the case of the initial Borrowing) or the date of the most recent Borrowing (in the case of any subsequent Borrowing), as the case may be. 
  
 (e) Representations and Warranties, No Default. On the date of such Borrowing, both before and after giving effect thereto and to the application
of proceeds therefrom: (i) the representations and warranties contained in Article V and in the other Loan Documents shall be true and correct on and as of the date of such Borrowing as though made on and as of such date; and (ii) no Default shall
have occurred and be continuing or shall result from such Borrowing. For purposes of this Section 4.2(e) in respect of the representation and warranty contained in Section 5.1(q), clause (i) shall be deemed to refer to the last day of the most
recent fiscal quarter and fiscal year for which financial statements have then been delivered and shall not be deemed to refer to any other representations and clause (i) warranties which relate solely to a specific date provided that such other
representations and warranties shall be true and correct as of such date. The giving of any Notice of Borrowing and the acceptance by Borrower of the proceeds of each Borrowing following the Closing Date shall each be deemed a certification to Agent
and Lenders that on and as of the date of such Borrowing such statements are true. 
  
 (f) No Event of Default Under Unified Loan Agreement. No “Event of Default” under (and as defined in) the Unified Loan Agreement shall have occurred and be continuing. 
  
 (g) Additional Documents. Agent shall have received, in form and
substance satisfactory to it, such additional approvals, opinions, documents and other information as Agent or any Lender (through Agent) may reasonably request (including, without limitation, any of the foregoing as the same may relate to
Alternative Use Receivables or Expansion Loans). 
  
 ARTICLE V

 REPRESENTATIONS AND WARRANTIES 
  
 5.1 Representations and Warranties. Borrower represents and warrants to each Lender and Agent that: 
  
 (a) Organization and Powers. Each of Borrower and its Subsidiaries is
a corporation duly organized, validly existing and in good standing under the law of the jurisdiction of its incorporation, is qualified to do business and is in good standing in each jurisdiction in which the failure so to qualify or be in good
standing would have a Material Adverse Effect and has all requisite power and authority to own its assets and carry on its business and to execute, deliver and perform its obligations under the Loan Documents. 
  

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 (b) Authorization, No Conflict. The execution, delivery and performance by Borrower of the Loan
Documents have been duly authorized by all necessary corporate action of Borrower and do not and will not (i) contravene the terms of the certificate or articles, as the case may be, of incorporation and the bylaws of Borrower or result in a breach
of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease or instrument to which Borrower is a party or by which it or its properties may be bound or affected; (ii) violate any provision of any law,
rule, regulation, order, writ, judgment, injunction, decree or the like binding on or affecting Borrower; or (iii) except as contemplated by this Agreement, result in, or require, the creation or imposition of any Lien upon or with respect to any of
the properties of Borrower. 
  
 (c) Binding Obligation. The
Loan Documents to which Borrower is or will become a party constitute, or when delivered under this Agreement will constitute, legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms.

  
 (d) Consents. No authorization, consent, approval,
license, exemption of, or filing or registration with, any Governmental Authority, or approval or consent of any other Person, is required for the due execution, delivery or performance by Borrower of any of the Loan Documents, except for recordings
or filings in connection with the perfection of the Liens on the Collateral in favor of Agent on behalf of Lenders. 
  
 (e) No Defaults. Neither Borrower nor any of its Subsidiaries is in default under any material contract, lease, agreement, judgment, decree or
order to which it is a party or by which it or its properties may be bound, which default would have a Material Adverse Effect. 
  
 (f) Title to Properties, Liens. Borrower and its Subsidiaries have good and marketable title to their properties and assets, including all property
forming a part of the Collateral, and there is no Lien upon or with respect to any of such properties or assets, including any of the Collateral, except for Permitted Liens. 
  
 (g) Litigation. There are no actions, suits or proceedings pending or, to the best of Borrower’s knowledge,
threatened against or affecting Borrower or any of its Subsidiaries or the properties of Borrower or any of its Subsidiaries before any Governmental Authority or arbitrator which if determined adversely to Borrower or any such Subsidiary would have
a Material Adverse Effect. 
  
 (h) Compliance with
Environmental Laws. Each of Borrower and its Subsidiaries is in full compliance with all Environmental Laws, whether in connection with the ownership, use, maintenance or operation of its Premises or the conduct of any business thereon, or
otherwise. Neither Borrower, any of its Subsidiaries nor to the best of Borrower’s knowledge, after due and diligent inquiry and investigation, any previous owner, tenant, occupant, user or operator of the Premises, or any present tenant or
other present occupant, user or operator of the Premises, has used, generated, manufactured, installed, treated, released, stored or disposed of any Hazardous Substances on, under, or at the Premises, except in compliance with all applicable
Environmental Laws. After due and diligent inquiry and investigation, Borrower has determined that no Hazardous Substances have at any time been spilled, leaked, dumped, deposited, discharged, disposed of or released on, under, at or from the
Premises, nor have any of the Premises been used at any time by any Person as a landfill or waste disposal site. There are no actions, suits, claims, notices of violation, hearings, investigations or proceedings pending or, to the best of
Borrower’s knowledge, threatened against or affecting Borrower or any of its Subsidiaries or with respect to the ownership, use, maintenance and operation of the Premises, relating to Environmental Laws or Hazardous Substances. 
  

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 (i) Governmental Regulation. Neither Borrower nor any of its Subsidiaries is subject to regulation
under the Public Utility Holding Company Act of 1935, the Federal Power Act, the Investment Company Act of 1940, the Interstate Commerce Act, any state public utilities code or any other federal or state statute or regulation limiting its ability to
incur Indebtedness. 
  
 (j) ERISA. Borrower and each other
member of its Controlled Group has fulfilled its obligations under the minimum funding standards of and is in compliance in all material respects with ERISA and the Code to the extent applicable to it and has not incurred any liability to the PBGC
or a Plan under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. Neither the Borrower nor any other member of its Controlled Group has any contingent liabilities with respect to any post retirement
benefits under a Welfare Plan, other than liability for continuation coverage described in Article 6 of Title I of ERISA, which may reasonably be expected to have a Material Adverse Effect. 
  
 (k) Subsidiaries: Ownership 
  
 (i) The name, capital structure and ownership of each Subsidiary of
Borrower on the date of this Agreement is as set forth in Schedule 5.1(k). All of the outstanding capital stock of, or other interest in, each such Subsidiary has been validly issued, and is fully paid and nonassessable. Except as set forth
in such Schedule, on the date of this Agreement Borrower has no material equity interest in any Person. 
  
 (ii) Unified is directly the record and beneficial owner of 100% of the issued and outstanding shares of capital stock of Borrower. 
  
 (l) Receivables 
  
 (i) At the time of the creation of a Receivable constituting Eligible
Collateral, such Receivable will be a bona fide existing obligation in the ordinary and usual course of Borrower’s (or URI’s) business; to the best of Borrower’s knowledge at the time of the creation of a Receivable, such Receivable
will be owed without any defenses, disputes, offsets, or counterclaims, or any rights of cancellation; Borrower shall not have received notice of actual or imminent bankruptcy or insolvency of any Receivable Debtor at the time the Receivable due
from such Receivable Debtor is created; in accordance with prudent credit policies, to the best knowledge of Borrower at the time of the creation of any Receivable, the Receivable Debtor will be able to timely discharge all of its Indebtedness to
Borrower; and, in the event Borrower becomes aware or is notified that any of the warranties, representations or covenants contained in this Section 5.1(l) is no longer completely accurate or true, or becomes aware of any fact or event which would
adversely affect any or all of the Receivable Debtor’s ability to timely discharge any or all of its Indebtedness to Borrower, Borrower will immediately provide Agent with written notification of such change in circumstances and any and all
information Borrower has regarding same. 
  
 (ii) At the time
each Receivable constituting Eligible Collateral is created, all performance by Borrower (or URI) giving rise to such Receivable shall have been completed. Borrower shall deliver to Agent, all originals of all Store Development Loans, Equipment
Loans, Inventory Loans, Deposit Fund Loans, Affiliate Loans, Program Leases, New Lease/Loan Products, Alternative Use Receivables, and such other documentation as Agent may from time to time reasonably require. All copies of all such items, whether
retained by Borrower, the Receivable Debtor thereunder, or any other party, shall be conspicuously marked “Copy.” 
  

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 (iii) At the time each Receivable constituting Eligible Collateral is created, all such Receivables will
be due and payable on terms based upon Borrower’s historical ordinary course of business practices or upon terms more favorable to Borrower (or on such other terms approved in writing by Agent in advance of the creation of such Receivable and
which are expressly set forth on the face of all Finance Receivables, Additional Loan/Lease Receivables, Expansion Loans and Alternative Use Receivables, copies of which shall be held by Borrower as custodian for Agent). 
  
 (iv) Agent shall retain its security interest in all Receivables, eligible
and ineligible, until all Obligations have been fully repaid and the Commitments have been terminated. Borrower shall promptly notify Agent of all recoveries and, on request, promptly notify Agent of all disputes and claims. During the existence of
an Event of Default, no discount, credit or allowance shall be granted to any Receivable Debtor by Borrower without Agent’s consent. Agent may, during the existence of an Event of Default, settle or adjust disputes and claims directly with
Receivable Debtors for amounts and upon terms which Agent considers advisable, and in such cases Agent will credit Borrower’s account with only the net amounts received by Agent in payment of the Receivables, after deducting all Agent’s
Expenses in connection therewith. 
  
 (m) Margin
Regulations. Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying “margin stock” (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System of the United
States). No part of the proceeds of the Loans will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock. 
  
 (n) Taxes. Each of Borrower and its Subsidiaries has duly filed all tax and information returns required to be filed,
and has paid all taxes, fees, assessments and other governmental charges or levies that have become due and payable, except to the extent such taxes or other charges are being contested in good faith and are adequately reserved against in accordance
with GAAP. 
  
 (o) Patents and Other Rights. Each of
Borrower and its Subsidiaries possesses all permits, franchises, licenses, patents, trademarks, trade names, service marks, copyrights and all rights with respect thereto, free from burdensome restrictions, that are necessary for the ownership,
maintenance and operation of its business and neither Borrower nor any such Subsidiary is in violation of any rights of others with respect to the foregoing. 
  
 (p) Insurance. The properties of Borrower and its Subsidiaries are insured, with financially sound and reputable insurance companies, in such
amounts, with such deductibles and covering such risks as is customarily carried by companies engaged in similar businesses and owning similar properties in the localities where Borrower or such Subsidiary operates. 
  
 (q) Financial Statements. The audited Consolidated balance sheet of
Borrower and its Subsidiaries as at September 30, 2003, and the related Consolidated statements of income, shareholders’ equity and cash flows for the fiscal year then ended, and the unaudited Consolidated balance sheet of Borrower and its
Subsidiaries as at December 31, 2003, and the related Consolidated statement of income for the month then ended and the six month period then ended, are complete and correct and fairly represent the financial condition of Borrower and its
Subsidiaries as at such dates and the results of operations of Borrower and its Subsidiaries for the periods covered by such statements, in each case in accordance with GAAP consistently applied (subject to the absence of footnote disclosures and
normal fiscal year end adjustments in the case of the financial statements delivered as at December 31, 2003). Since December 31, 2003, there has been no Material Adverse Effect. 
  

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 (r) Liabilities. Neither Borrower nor any of its Subsidiaries has any material liabilities, fixed
or contingent, that are not reflected in the financial statements referred to in subsection (q), in the notes thereto or otherwise disclosed in writing to Lenders, other than liabilities arising in the ordinary course of business since December 31,
2003, the NCB Loan Purchase Agreement, any Third Party Loan Purchase Agreement, and the Guaranty. 
  
 (s) Labor Disputes, Etc. There are no strikes, lockouts or other labor disputes against Borrower or any of its Subsidiaries, or, to the best of
Borrower’s knowledge, threatened against or affecting Borrower or any of its Subsidiaries, which may have a Material Adverse Effect. 
  
 (t) Disclosure. None of the representations or warranties made by Borrower or any of its Subsidiaries in the Loan Documents as of the date of such
representations and warranties, and none of the statements contained in each exhibit or report furnished by or on behalf of Unified, Borrower or any of its Subsidiaries to Agent and Lenders in connection with the Loan Documents, contains any untrue
statement of a material fact or omits any material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances under which they are made, not misleading. 
  
 (u) Subordinated Debt, Other Agreements. Borrower is not in default
under or in breach of the terms of any Subordinated Debt or any other indentures or agreements to which it is a party. 
  
 (v) Material Adverse Effect. No other Material Adverse Effect has occurred and is continuing. 
  
 (w) Solvency. Borrower is and shall hereafter be at all times Solvent.

  
 ARTICLE VI 
 COVENANTS 
  
 6.1 Reporting Covenants 
  
 So long as any of the Obligations shall remain unpaid or any Lender shall have any Commitment, Borrower agrees that: 
  
 (a) Financial Statements and Other Reports. Borrower will furnish to
Agent in sufficient copies for distribution to Lenders: 
  
 (i)
as soon as available and in any event within 120 days after the end of each fiscal year of Borrower, a Consolidated balance sheet of Borrower and its Subsidiaries as of the end of such fiscal year, and the related Consolidated statements of income,
shareholders’ equity and cash flows of Borrower and its Subsidiaries for such fiscal year, prepared in accordance with GAAP consistently applied, all in reasonable detail and setting forth in comparative form the figures for the previous fiscal
year, and accompanied by a report thereon of independent certified public accountants of recognized national standing acceptable to Agent, which report shall be unqualified as to scope of audit or the status of Borrower and its Subsidiaries as a
going concern, and shall state that such consolidated financial statements present fairly the financial condition of Borrower as at the dates indicated and the results of operations and changes in cash flows for the periods then ended in 

 

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 conformity with GAAP applied on a basis consistent with the previous years (except as otherwise stated therein) together
with a certificate of such independent public accountants stating that (1) their audit examination of Borrower and its Subsidiaries has included a review of the terms of this Agreement as they relate to accounting matters; (2) in the course of such
audit examination, which audit was conducted by such accountants in accordance with generally accepted auditing standards, such accountants have obtained no knowledge that any Default has occurred and is continuing, or, if such Default has occurred
and is continuing, indicating the nature thereof; provided that such accountants shall not be liable by reason of any failure to obtain knowledge of any Default that would not be disclosed in the course of their audit examination; and (3)
based on their audit examination nothing has come to their attention which causes them to believe that the matters set forth in the Compliance Certificate delivered pursuant to clause (iv) for the applicable fiscal year with respect to compliance
with the provisions of Section 6.2 and subsections (a), (f), (g) and (h) of Section 6.4 are not stated in accordance with the terms of this Agreement; 
  
 (ii) as soon as available and in any event within 45 days after the end of each quarter, a Consolidated balance sheet of Borrower and its Subsidiaries as
of the end of such quarter, and the related Consolidated and consolidating statement of income of Borrower and its Subsidiaries for such quarter and the portion of the fiscal year through such quarter, prepared in accordance with GAAP consistently
applied, all in reasonable detail and setting forth in comparative form (A) the figures for the corresponding period in the preceding fiscal year and (B) the projected figures for the corresponding period contained in the forecast for the current
fiscal year delivered to Lenders hereunder, together with a certificate of the chief financial officer of Borrower stating that such financial statements fairly present the financial position of Borrower and its Subsidiaries as at such date and the
results of operations of Borrower and its Subsidiaries for the period ended on such date and have been prepared in accordance with GAAP (except for the absence of footnote disclosure) consistently applied, subject to changes for normal, year-end
adjustments; 
  
 (iii) concurrent with the financial statements
delivered pursuant to subsection (i) above, copies of the reports submitted to Borrower by its independent certified public accountants in connection with each annual audit examination of Borrower and its Subsidiaries made by such accountants,
including any “management letter” submitted by such accountants to Borrower in connection with their annual audit relating to the results of operations of Borrower and any variance from Borrower’s projections; 
  
 (iv) as soon as available and in any event within 45 days after the end of
each of the first three fiscal quarters of each fiscal year of Borrower and together with the annual financial statements required pursuant to clause (i), a Compliance Certificate as of the end of such fiscal quarter or fiscal year; 
  
 (v) as soon as available and in any event not more than 90 days after the
start of each fiscal year of Borrower and its Subsidiaries, a Consolidated financial forecast for Borrower and its Subsidiaries for the following fiscal year, including forecasted Consolidated balance sheets and statements of income and cash flows
of Borrower and its Subsidiaries, which forecast shall (A) state the assumptions used in the preparation thereof, (B) contain such other information as requested by any Lender and (C) be in form satisfactory to the Majority Lenders; 
  
 (vi) as soon as available, copies of all financial statements, reports and
other material delivered by Unified under Section 8.5 of the Unified Loan Agreement, together with all certificates accompanying or delivered in connection such financial statements, reports and other material; 
  

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 (vii) as soon as available and in any event not later than 15 Business Days after the end of each
calendar month (or more frequently if requested by the Majority Lenders), (A) a completed Borrowing Base Certificate, (B) a report with respect to the Receivables containing (1) detailed aging information, (2) summaries of the Receivables, including
a breakdown thereof by category, (3) descriptions of any amendments, modifications and waivers entered into with or otherwise granted to any Receivable Debtors, and (4) a listing of all charge-offs since the date of the last such report, and (C) the
“Watch Report” prepared by Borrower with respect to the Receivable Debtors, each as of the end of such month (or other reporting period so requested) and in form and substance satisfactory to Agent; 
  
 (viii) such reports and notices as are required by the Security Agreement;

  
 (ix) prompt written notice of any proposed changes in the GCC
Loan Guidelines and material changes to the other documentation, credit and collection policies and practices of Borrower, setting forth the details thereof; and 
  
 (x) promptly after the giving, sending or filing thereof, copies of all reports, if any, which Unified sends to the holders
of its capital stock or other securities and of all reports or filings, if any, by Unified, Borrower or any of their Subsidiaries with the Securities and Exchange Commission or any national securities exchange. 
  
 (b) Additional Information. Borrower will furnish to Agent:

  
 (i) concurrent with the financial statements delivered
pursuant to Sections 6.1(a)(i) and (ii), a certificate of the chief financial officer of Borrower certifying that as of the end of the fiscal year or quarter, as applicable, no Default has occurred and is continuing, or, if a Default has occurred
and is continuing, setting forth details of such Default and the action which Borrower proposes to take with respect thereto; 
  
 (ii) prompt written notice of (A) any proposed acquisition of stock, assets or property by Borrower that could reasonably be expected to result in
environmental liability under Environmental Laws, and (B)(1) any spillage, leakage, discharge, disposal, leaching, migration or release of any Hazardous Substances required to be reported to any Governmental Authority under applicable Environmental
Laws, and (2) all actions, suits, claims, notices of violation, hearings, investigations or proceedings pending, or to the best of Borrower’s knowledge, threatened against or affecting Borrower with respect to the ownership, use, maintenance
and operation of the Premises, relating to Environmental Laws or Hazardous Substances, in each case together with a statement of an Authorized Officer setting forth the details thereof and the action which Borrower proposes to take with respect
thereto; 
  
 (iii) prompt written notice of all actions, suits
and proceedings before any Governmental Authority or arbitrator pending, or to the best of Borrower’s knowledge, threatened against or affecting Borrower or any of its Subsidiaries which (A) if adversely determined would involve an aggregate
liability of $500,000 or more, or (B) otherwise may have a Material Adverse Effect; 
  
 (iv) prompt written notice of: (a) the occurrence of any reportable event (as defined in ERISA) with respect to a Plan, other than events for which the PBGC has waived the notice requirements in its regulations, (b)
receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor, (c) its intention to terminate or withdraw from any Plan, and (d) the occurrence of any event with respect to any Plan which
would result in the 
  

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 incurrence by the Borrower or any of member of its Controlled Group of any material liability, fine or penalty, or any
material increase in the contingent liability of the Borrower or any member of its Controlled Group with respect to any post retirement Welfare Plan benefit. 
  
 (v) [Intentionally Omitted] 
  
 (vi) [Intentionally Omitted] 
  
 (vii) the information regarding insurance maintained by Borrower as required under Section 6.3(c); 
  
 (viii) prompt written notice of any Event of Default or any other condition
or event which has resulted, or that could reasonably be expected to result, in a Material Adverse Effect; and 
  
 (ix) such other information respecting the operations, properties, business or condition (financial or otherwise) of Unified, Borrower or their
respective Subsidiaries (including with respect to the Collateral) as any Lender (through Agent) may from time to time reasonably request. 
  
 6.2 Financial Covenants. 
  
 So long as any of the Obligations shall remain unpaid or any Lender shall have any Commitment, Borrower agrees that: 
  
 (a) Debt Ratio. Borrower will maintain a ratio of its Indebtedness
(excluding any Capital Debt) to Consolidated Adjusted Tangible Net Worth as of the end of each of Borrower’s fiscal quarters of not more than 1.6 to 1.0. 
  

(b) Minimum Consolidated Tangible Net Worth. Borrower will maintain Consolidated Tangible Net Worth at all times of not less than $15,000,000.

  
 (c) Interest Coverage Ratio. Borrower will maintain a
ratio of Consolidated EBIT to Consolidated Interest Expense, for the period of four consecutive fiscal quarters of Borrower then ended (taken as one accounting period), of not less than 2.0 to 1.0, as determined as of the end of each of
Borrower’s fiscal quarters; provided, however, that such ratio shall be computed excluding gains, losses, interest and other expenses and taxes relating to Borrower’s interest in Sav Max Foods, Inc. 
  
 6.3 Additional Affirmative Covenants. 
  
 So long as any of the Obligations shall remain unpaid or any Lender shall
have any Commitment, Borrower agrees that: 
  
 (a)
Preservation of Existence, Etc. Borrower will, and will cause each of its Subsidiaries to, maintain and preserve its corporate existence, its rights to transact business and all other rights, franchises and privileges necessary or desirable
in the normal course of its business and operations and the ownership of its properties. 
  
 (b) Payment of Taxes, Etc. Borrower will, and will cause each of its Subsidiaries to, pay and discharge all taxes, fees, assessments and governmental charges or levies imposed upon it 
  

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 or upon its properties or assets prior to the date on which penalties attach thereto, and all lawful claims for labor,
materials and supplies which, if unpaid, might become a Lien upon any properties or assets of Borrower or any Subsidiary, except to the extent such taxes, fees, assessments or governmental charges or levies, or such claims, are being contested in
good faith by appropriate proceedings and are adequately reserved against in accordance with GAAP. 
  
 (c) Maintenance of Insurance. Borrower, at its expense, shall keep and maintain the Collateral insured against loss or damage by fire, theft,
explosion, sprinklers, and all other hazards and risks ordinarily insured against by other owners who use such properties in businesses for the full insurable replacement value thereof. Borrower shall also keep and maintain business interruption
insurance and public liability and property damage insurance relating to Borrower’s ownership and use of the Collateral and its other assets. All such policies of insurance shall be in such form, with such companies and in such amounts as may
be satisfactory to Agent. Borrower shall deliver to Agent certified copies of such policies of insurance and, upon Agent’s request, evidence of the payments of all premiums therefor. All such policies of insurance except those of public
liability and those relating to property damage caused by Borrower or Borrower’s agents and employees shall contain an endorsement in a form satisfactory to Agent showing Agent, on behalf of Lenders, as an additional insured thereunder, with a
waiver of warranties thereof, and all proceeds payable thereunder shall be payable to Agent, on behalf of Lenders, and, upon receipt by Agent, shall be applied on the account of the Obligations. To secure the payment of the Obligations, Borrower
grants Agent, on behalf of Lenders, a security interest in and to all such policies of insurance relating to the Collateral and the proceeds thereof, and Borrower shall direct all insurers under such policies of insurance relating to the Collateral
to pay all proceeds thereof directly to Agent, on behalf of Lenders. 
  
 Borrower hereby irrevocably appoints Agent, on behalf of Lenders (acting through any of Agent’s officers, employees or agents designated by Agent) to act during the existence of an Event of Default, as Borrower’s attorney in fact
for the purpose of making, settling, and adjusting claims under such policies of insurance relating to the Collateral, endorsing the name of Borrower on any check, draft, instrument or other item of payment for the proceeds of such policies of
insurance and for making all determinations and decisions with respect to such policies of insurance. Absent the existence of an Event of Default, Borrower shall have the right to make, settle and adjust any and all claims under such policies of
insurance; provided, however, that Borrower shall not legally conclude the settlement or adjustment of any claim in excess of $500,000 without first obtaining the written consent of Agent. Borrower will not cancel any of such policies
without Agent’s prior written consent. Each such insurer shall agree by endorsement upon the policy or policies of insurance issued by it to Borrower as required above, or by independent instruments furnished to Agent, that it will give Agent
at least 10 days’ written notice before any such policy or policies of insurance shall be altered or cancelled, and that no act or default of Borrower, or any other Person, shall affect the right of Agent to recover under such policy or
policies of insurance required above or to pay any premium in whole or in part relating thereto. If Borrower fails to obtain such policy or policies of insurance, Agent may, without waiving or releasing any Obligations or Default, but shall have no
obligation to do so, obtain and maintain such policies of insurance and pay such premiums and take any other action with respect to such policies which Agent deems advisable. All sums so disbursed by Agent, as well as reasonable attorneys’
fees, court costs, expenses, and other charges relating thereto, shall be a part of the Obligations and payable on demand. 
  
 (d) Keeping of Records and Books of Account. Borrower at all times hereafter shall maintain, and shall cause each of its Subsidiaries to maintain,
a standard and modern system of accounting in accordance with GAAP, consistently applied, with ledger and account cards or computer tapes and computer discs, computer printouts and computer records pertaining to the Collateral which contain
information as may from time to time be requested by Agent. Borrower shall not, and 
  

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 Borrower shall not permit any of its Subsidiaries to, modify or change its method of accounting or enter into, modify or
terminate any agreement presently existing, or at any time hereafter entered into with any third party accounting firm or service bureau for the preparation or storage of Borrower’s and its Subsidiaries’ accounting records without written
consent of Agent first obtained and without said accounting firm or service bureau agreeing to provide information regarding the Collateral and Borrower’s financial condition to Agent. 
  
 (e) Inspection Rights; Audits. Borrower will at any reasonable time
and from time to time (i) permit Agent and Lenders or any of their respective agents or representatives to visit and inspect any of the properties of Borrower and its Subsidiaries and to examine and make copies of and abstracts from the records and
books of account of Borrower and its Subsidiaries, and to discuss the business affairs, finances and accounts of Borrower and any such Subsidiary with any of the officers, employees or accountants of Borrower or such Subsidiary, and (ii) permit
Agent or any of its agents or representatives to conduct one (1) periodic audit of the Collateral each twelve month period, commencing on the Closing Date (or more during the continuance of an Event of Default), provided that communications
between Agent or its agents or representatives and any Receivable Debtor in connection with any such audit shall be subject to the prior consent of Borrower at all times other than during the existence of an Event of Default, which consent of
Borrower shall not be unreasonably withheld or delayed. 
  
 (f)
Compliance with Laws, Etc. Borrower will, and will cause each of its Subsidiaries to, comply in all material respects with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority (including all
Environmental Laws) and the terms of any indenture, contract or other instrument to which it may be a party or under which it or its properties may be bound. 
  
 (g) Maintenance of Properties, Etc. Borrower will, and will cause each of its Subsidiaries to, maintain and preserve all of its properties
necessary or useful in the proper conduct of its business in good working order and condition in accordance with the general practice of other corporations of similar character and size, ordinary wear and tear excepted. 
  
 (h) Licenses. Borrower will, and will cause each of its Subsidiaries
to, obtain and maintain all licenses, authorizations, consents, filings, exemptions, registrations and other governmental approvals necessary in connection with the execution, delivery and performance of the Loan Documents, the consummation of the
transactions therein contemplated or the operation and conduct of its business and ownership of its properties. 
  
 (i) Action Under Environmental Laws. Borrower will, and will cause each of its Subsidiaries to, upon becoming aware of the presence of any
Hazardous Substance or the existence of any environmental liability under applicable Environmental Laws with respect to the Premises, take all actions, at their cost and expense, as shall be necessary or advisable to investigate and clean up the
condition of the Premises, including all removal, containment and remedial actions, and restore the Premises to a condition in compliance with applicable Environmental Laws. 
  
 (j) Use of Proceeds. Borrower will use the proceeds of the Loans solely for the purpose of providing financing to (x)
Unified Patrons in accordance with the GCC Loan Guidelines (or, in the case of Loan proceeds which give rise to, or enable the Borrower to make or maintain, Alternative Use Receivables, as otherwise approved by the Agent) and (y) to Affiliates of
Borrower pursuant to Affiliate Loans. 
  

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 (k) NCB Stock. Borrower shall hold that number of shares of Class B capital stock of NCB
(“NCB Stock”), par value $100 per share, which is equal to 1.0% of the maximum amount of NCB’s Commitment, and Borrower shall promptly execute and deliver such additional documents or instruments as NCB shall deem necessary or
appropriate for NCB to obtain a perfected first priority Lien on such NCB Stock. 
  
 (l) Further Assurances and Additional Acts. Borrower will execute, acknowledge, deliver, file, notarize and register at its own expense all such further agreements, instruments, certificates, documents and
assurances and perform such acts as Agent or the Majority Lenders shall deem necessary or appropriate to effectuate the purposes of the Loan Documents, and promptly provide Agent with evidence of the foregoing satisfactory in form and substance to
Agent and the Majority Lenders, including, without limitation, any such agreements, instruments and documents that Agent shall deem necessary or desirable to reflect the release of any Collateral in connection with an Incremental Purchase.

  
 6.4 Negative Covenants 
  
 So long as any of the Obligations shall remain unpaid or any Lender shall
have any Commitment, Borrower agrees that: 
  
 (a)
Indebtedness. Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or otherwise become liable for or suffer to exist any Indebtedness, other than: 
  
 (i) Indebtedness of Borrower to Lenders hereunder; 
  
 (ii) accounts payable to trade creditors for goods and services and current
operating liabilities (not the result of the borrowing of money) incurred in the ordinary course of Borrower’s or such Subsidiary’s business in accordance with customary terms and paid within the specified time, unless contested in good
faith by appropriate proceedings and reserved for in accordance with GAAP; 
  
 (iii) Indebtedness consisting of guarantees resulting from endorsement of negotiable instruments for collection by Borrower or any of its Subsidiaries in the ordinary course of business; 
  
 (iv) existing Indebtedness of Borrower and its Subsidiaries set forth in
Schedule 6.4(a)(iv); 
  
 (v) Senior Debt and Subordinated
Debt of Borrower and its Subsidiaries in an aggregate principal amount not to exceed $30,000,000 at any time outstanding; 
  
 (vi) Indebtedness consisting of Capital Debt; 
  
 (vii) Indebtedness of Borrower and its Subsidiaries under Capital Leases in an aggregate principal amount not to exceed $1,000,000 at any time
outstanding; 
  
 (viii) Indebtedness of Borrower to any of its
wholly-owned Subsidiaries or of any of its wholly-owned Subsidiaries to another of its wholly-owned Subsidiaries; and 
  

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 (ix) Indebtedness of Borrower incurred pursuant to the Loan Purchase Agreements in a maximum principal
amount not to exceed $90,000,000 and Indebtedness of Borrower under the Guaranty. 
  
 (b) Liens. Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with respect to any of its properties or assets, whether now owned or
hereafter acquired, other than Permitted Liens. 
  
 (c) Change
in Nature of Business. Borrower will not, and will not permit any of its Subsidiaries to, engage in any material line of business substantially different from those lines of business carried on by it at the date hereof. 
  
 (d) Restrictions on Fundamental Changes. Borrower will not, and will
not permit any of its Subsidiaries to, (i) liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or (ii) merge with or consolidate into, or acquire all or substantially all of the assets of, any Person, or enter into any
partnership or joint venture with any Person, or sell, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets, except that (x) any of Borrower’s wholly-owned
Subsidiaries may merge with, consolidate into or transfer all or substantially all of its assets to another of Borrower’s wholly-owned Subsidiaries or to Borrower and (y) Borrower may merge with URI, provided that Borrower is the surviving
corporation in any such Merger. 
  
 (e) Sales and Leases of
Assets. Borrower will not, and will not permit any of its Subsidiaries to, sell, lease, transfer or otherwise dispose of, or part with control of (whether in one transaction or a series of transactions) any assets (including any shares of stock
in any Subsidiary or other Person), except (i) sales or other dispositions of assets in the ordinary course of business which have become worn out or obsolete or which are promptly being replaced; (ii) sales or other dispositions of assets by any of
its wholly-owned Subsidiaries to another of its wholly-owned Subsidiaries or to Borrower; (iii) the sale of any Receivables to Unified to facilitate the collection of such Receivables in accordance with the provisions of the Operating Agreement;
(iv) the sale or other disposition of Receivables or other lease or loan assets if (A) such sale or other disposition by Borrower is effected as part of and contemporaneously with the extension of credit by Borrower to the Receivables Debtor which
gives rise to the Receivable, loan or lease asset subject of the sale or disposition, and (B) payments by the Receivable Debtors thereon shall be made directly to the transferees of such assets and such transferees shall have all other loan
servicing obligations with respect to such assets; (v) the sale or other disposition effected by Borrower of assets acquired as an Investment permitted under Section 6.4(f)(iv) which sale or other disposition is effected in compliance with
obligations of Borrower incurred when such Investment was made; and (vi) the sale of the Released Collateral in accordance with the Loan Purchase Agreements. 
  
 (f) Loans and Investments. Borrower will not, and will not permit any of its Subsidiaries to, purchase or otherwise acquire the capital stock,
assets (constituting a business unit), obligations or other securities of or any interest in any Person, or otherwise extend any credit to or make any additional investments in any Person, other than in connection with: 
  
 (i) Receivables under the GCC Loan Guidelines in the ordinary course of
Borrower’s business, except as provided in clauses (iv) and (v); 
  
 (ii) Affiliate Loans; 
  
 (iii) Permitted Investments
and the NCB Stock, 
  

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 (iv) extensions of credit in the form of subordinated Indebtedness from, and equity investments in,
Unified Patrons, provided that, except for the investments and subordinated Indebtedness set forth on Schedule 6.4(f)(iv), no such extension of credit shall be made or investment consummated if, after and giving effect thereto, the aggregate
amount of such subordinated Indebtedness and equity investments shall exceed, at the time of the credit extension or investment, as the case may be, the amount set forth below under the heading “Maximum Amount” during a time that the
amount of Consolidated Adjusted Tangible Net Worth of Borrower shall be within the range set forth opposite such Maximum Amount: 
  

				
	 Consolidated Adjusted Tangible Net Worth

	  	Maximum Amount

	 Less than $15,000,000
	  	$	0
	 $15,000,000 to $19,999,999
	  	$	22,000,000
	 $20,000,000 to $22,499,999
	  	$	22,500,000
	 $22,500,000 to $24,999,999
	  	$	23,000,000
	 $25,000,000 and above
	  	$	23,500,000

  
 provided that nothing in this
clause (iv) shall require the liquidation or redemption of any such subordinated Indebtedness or equity investment that was permitted hereunder when made; provided, further, any increase in the book or fair market value of any such
equity investments in Unified Patrons shall be disregarded for purpose of the computation of Maximum Amount; provided further, for the purpose of calculating Consolidated Adjusted Tangible Net Worth for this Section 6.4(f)(iv), Capital
Debt shall not include that portion, if any, thereof that exceeds 50% of Consolidated Tangible Net Worth; or 
  
 (v) without duplication, Alternative Use Receivables and Expansion Loans. 
  
 (g) Capital Expenditures. Borrower will not, and will not permit any of its Subsidiaries to, make any expenditures
for fixed or capital assets, including obligations under Capital Leases, in excess of $250,000, on a Consolidated basis, in any fiscal year of Borrower. For purposes of the foregoing, the acquisition by Borrower, of (i) equipment for the purpose of
leasing such equipment to Unified Patrons in the ordinary course of business or (ii) assets upon foreclosure of a security interest securing a Receivable, or in settlement thereof, arising in the ordinary course of business shall not be deemed an
expenditure for fixed or capital assets. 
  
 (h) Operating
Leases. Borrower will not, and will not permit any of its Subsidiaries to, make any expenditures in respect of Operating Leases, except for: (i) Operating Leases between Borrower and any of its wholly-owned Subsidiaries or between any Subsidiary
and any of Borrower’s wholly-owned Subsidiaries; and (ii) Operating Leases which would not cause Borrower and its Subsidiaries, on a Consolidated basis, to make payments exceeding $500,000 in any fiscal year of Borrower. 
  
 (i) Sales and Leasebacks. Borrower will not, and will not permit any
of its Subsidiaries to, become liable, directly or indirectly, with respect to any lease, whether an Operating 
  

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 Lease or a Capital Lease, of any property (whether real, personal or mixed), whether now owned or hereafter acquired, (i)
which Borrower or such Subsidiary has sold or transferred or is to sell or transfer to any other Person or (ii) which Borrower or such Subsidiary intends to use for substantially the same purposes as any other property which has been or is to be
sold or transferred by Borrower or such Subsidiary to any other Person in connection with such lease. 
  
 (j) Distributions. Borrower will not (i) declare or pay any dividends in respect of Borrower’s capital stock, or purchase, redeem, retire or
otherwise acquire for value any of its capital stock now or hereafter outstanding, return any capital to its shareholders as such, or make any distribution of assets to its shareholders as such, or permit any of its Subsidiaries to purchase, redeem,
retire, or otherwise acquire for value any stock of Borrower, except that Borrower may declare and deliver dividends and distributions payable only in common stock of Borrower, or (ii) permit any Subsidiary of Borrower to grant or otherwise agree to
or suffer to exist any consensual restrictions on the ability of such Subsidiary to pay dividends and make other distributions to Borrower, or to pay any Indebtedness owed to Borrower or transfer properties and assets to Borrower. 
  
 (k) Amendments of Certain Documents. Borrower will not (i) agree to or
permit any amendment, modification or waiver of Section 8 of the Operating Agreement, or agree to or permit any amendment, modification or waiver of any other material provision of, or terminate, the Investment Agreement or the Operating Agreement;
or (ii) agree to or permit any amendment, modification or waiver of any provision of any agreement related to any Capital Debt or Subordinated Debt (including any amendment, modification or waiver pursuant to an exchange of other securities or
instruments for outstanding Capital Debt or Subordinated Debt) if the effect of such amendment, modification or waiver is to (A) increase the interest rate on such Capital Debt or Subordinated Debt or change (to earlier dates) the dates upon which
principal and interest are due thereon; (B) alter the redemption, prepayment or subordination provisions thereof; (C) alter the covenants and events of default in a manner which would make such provisions more onerous or restrictive to Borrower or
such Subsidiary; or (D) otherwise increase the obligations of Borrower in respect of such Subordinated Debt or Capital Debt or confer additional rights upon the holders thereof which individually or in the aggregate would be adverse to Borrower, its
Subsidiaries or Lenders. 
  
 (l) Amendments of GCC Loan
Guidelines. Borrower will not agree to or permit any amendment, modification or waiver of any provision of the GCC Loan Guidelines or other documentation, credit and collection policies and practices of Borrower that has the effect of
diminishing the credit quality standards or expanding the credit availability criteria set forth in the GCC Loan Guidelines, making such policies and practices less rigorous, adding New Lease/Loan Products, or that otherwise would have a Material
Adverse Effect without the prior written consent of Majority Lenders, which consent will not be unreasonably delayed or withheld and which consent shall include, with respect to New Lease/Loan Products, a designation as to whether each such New
Lease/Loan Product shall be considered a Finance Receivable, Additional Loan/Lease Receivable or an Expansion Loan. 
  
 (m) Transactions with Related Parties. Borrower will not, and will not permit any of its Subsidiaries to, enter into any transaction, including the
purchase, sale or exchange of property or the rendering of any services, with any Affiliate, any officer or director thereof or any Person which beneficially owns or holds 5.0% or more of the equity securities, or 5.0% or more of the equity
interest, thereof (a “Related Party”), or enter into, assume or suffer to exist, or permit any Subsidiary to enter into, assume or suffer to exist, any employment or consulting contract with any Related Party, except a transaction or
contract which is in the ordinary course of Borrower’s or such Subsidiary’s business and which is upon fair and reasonable terms not less favorable to Borrower or such Subsidiary than it would obtain in a comparable arm’s length
transaction with a Person not a Related 
  

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 Party; provided, however, that nothing in this subsection shall prohibit the Operating Agreement or any
Affiliate Loans made by Borrower in the ordinary course of its business (subject to the limitations thereon set forth in subsection (f)). 
  
 (n) Hazardous Substances. Borrower will not, and will not permit any of its Subsidiaries to, use, generate, manufacture, install, treat, release,
store or dispose of any Hazardous Substances, except in compliance with all applicable Environmental Laws. 
  
 (o) Subordinated Debt. Borrower will not, and will not permit any of its Subsidiaries to, prepay, purchase, acquire, redeem or retire any
Subordinated Debt. 
  
 (p) Purchases Under Loan Purchase
Agreements. Borrower will not make Incremental Purchases, or sell, transfer or otherwise dispose of any Collateral or rights or interests therein to NCB or any Third Party Buyer, as the case may be, in connection with any Incremental Purchase,
unless Borrower shall, contemporaneously with delivery under the applicable Loan Purchase Agreement to the buyer (under the applicable Loan Purchase Agreement) of proper written notice of a request to make an Incremental Purchase, deliver to Agent a
duly executed Purchase Notice and a completed, unsigned Release. 
  
 ARTICLE VII 
 EVENTS OF DEFAULT 
  
 7.1 Events of Default 
  
 Any of the following events which shall occur shall constitute an “Event of Default”: 
  
 (a) Payments. Borrower shall fail to pay when due any amount of
principal of, or interest on, any Loan or Note, or any fee or other amount payable hereunder or under any of the other Loan Documents, when due. 
  
 (b) Representations and Warranties. Any representation or warranty by Borrower under or in connection with this Agreement or the other Loan
Documents shall prove to have been incorrect in any material respect when made or deemed made. 
  
 (c) Failure by Borrower to Perform Certain Covenants. Borrower shall fail in any material respect to perform or observe any term, covenant or agreement contained in Section 6.2, subsections (a) or (j) of
Section 6.3 or Section 6.4. 
  
 (d) Failure by Borrower to
Perform Other Covenants. Borrower shall fail in any material respect to perform or observe any other term, covenant or agreement contained in this Agreement or any other Loan Document on its part to be performed or observed and any such failure
shall remain unremedied for a period of 20 days from the occurrence thereof (unless the Majority Lenders determine that such failure is not capable of remedy). 
  

(e) Bankruptcy. Borrower or any of its Subsidiaries, or Unified shall admit in writing its inability to, or shall fail generally or be generally
unable to, pay its debts (including its payrolls) as such debts become due, or shall make a general assignment for the benefit of creditors; or Borrower, Unified or any such Subsidiary of Borrower shall file a voluntary petition in bankruptcy or a
petition or answer seeking reorganization, to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy Code or under any other state or federal law relating to bankruptcy or reorganization granting relief to
debtors, whether now or hereafter in effect, or shall file an answer 
  

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 admitting the jurisdiction of the court and the material allegations of any involuntary petition filed against Borrower,
Unified or any such Subsidiary of Borrower pursuant to the Bankruptcy Code or any such other state or federal law; or Borrower, Unified or Subsidiary of Borrower shall be adjudicated a bankrupt, or shall make an assignment for the benefit of
creditors, or shall apply for or consent to the appointment of any custodian, receiver or trustee for all or any substantial part of Borrower’s, Unified’s or any such Subsidiary of Borrower’s property, or shall take any action to
authorize any of the actions set forth above in this subsection; or an involuntary petition seeking any of the relief specified in this subsection shall be filed against Borrower, Unified or any such Subsidiary of Borrower and shall not be dismissed
within 60 days; or any order for relief shall be entered against Borrower, Unified or any such Subsidiary of Borrower in any involuntary proceeding under the Bankruptcy Code or any such other state or federal law referred to in this subsection (e).

  
 (f) Default Under Other Indebtedness. (i) Borrower,
Unified or any Subsidiary of Borrower shall fail (A) to make any payment of any principal of, or interest or premium on, any Indebtedness (other than in respect of the Loans) in an aggregate principal amount outstanding of at least $250,000
($10,000,000 in the case of Unified) when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument
relating to such Indebtedness, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided, or (B) to perform or
observe any term, covenant or condition on its part to be performed or observed under any agreement or instrument relating to any such Indebtedness, when required to be performed or observed, and such failure shall continue after the applicable
grace period, if any, specified in such agreement or instrument, if the effect of such failure to perform or observe is to accelerate, or to permit the acceleration of, the maturity of such Indebtedness; or any such Indebtedness shall be declared to
be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; (ii) any “Event of Default” shall occur and be continuing under the Unified Loan Agreement; or
(iii) any “Termination Event” or event of default shall occur and be continuing under any Loan Purchase Agreement, the Guaranty or any other Guaranty Obligation related to any Loan Purchase Agreement. 
  
 (g) Judgments. (i) A final judgment or order for the payment of money
in excess of $750,000 which is not fully covered by insurance shall be rendered against Borrower or any of its Subsidiaries that remains unsatisfied for a period in excess of 30 consecutive days; or (ii) any non-monetary judgment or order shall be
rendered against Borrower or any of its Subsidiaries which has or would reasonably be expected to have a Material Adverse Effect; and in each case there shall be any period of 30 consecutive days during which a stay of enforcement of such judgment
or order, by reason of a pending appeal or otherwise, shall not be in effect. 
  
 (h) Material Adverse Effect. A Material Adverse Effect not otherwise expressly mentioned in this Section 7.1, shall have occurred which gives reasonable grounds to conclude, in the reasonable judgment of the
Majority Lenders, that Borrower may not, or will be unable to, perform or observe its obligations under the Loan Documents or Unified may not, or will be unable to, perform or observe in the normal course its obligations under the Operating
Agreement. 
  
 (i) Change in Ownership or Control. Unified
shall (A) cease to own and control, directly or indirectly, 100% of the issued and outstanding shares of capital stock of Borrower or (B) fail to possess, directly or indirectly, capital stock representing voting control of Borrower. 
  
 (j) Failure to Perform Under Operating Agreement; Invalidity of Operating
Agreement. Unified shall fail to perform or observe any term, covenant or agreement in Section 8 of 
  

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 the Operating Agreement, or shall fail in any material respect to perform or observe any other term, covenant or
agreement contained in the Operating Agreement on its part to be performed or observed and any such failure shall remain unremedied for a period of 20 days from the occurrence thereof (unless the Majority Lenders determine that such failure is not
capable of remedy); or the Operating Agreement shall for any reason be revoked or invalidated, or otherwise terminate or cease to be in full force and effect, or Unified or any other Person shall contest in any manner the validity or enforceability
thereof or deny that it has any further liability or obligation thereunder. 
  
 (k) Invalidity of Subordination Provisions. The Investment Agreement or any agreement or instrument governing any Subordinated Debt or Capital Debt shall for any reason be revoked or invalidated or otherwise
cease to be in full force and effect; or Unified or any other Person shall contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder, or the Indebtedness hereunder shall for any
reason be subordinated or shall not have the priority contemplated by this Agreement or the Investment Agreement. 
  
 (l) Invalidity of or Breach under Collateral Documents. Borrower or any other Person shall fail in any material respect to perform or observe any
term, covenant or agreement contained in the Collateral Documents on its part to be performed or observed and any such failure shall remain unremedied for a period of 20 days from the occurrence thereof (unless the Majority Lenders determine that
such failure is not capable of remedy); any of the Collateral Documents after delivery thereof shall for any reason be revoked or invalidated, or otherwise cease to be in full force and effect, or Borrower or any other Person shall contest in any
manner the validity or enforceability thereof, or Borrower or any other Person shall deny that it has any further liability or obligation thereunder; or any of the Collateral Documents for any reason, except to the extent permitted by the terms
thereof, shall cease to create a valid and perfected first priority Lien subject only to Permitted Liens in any of the Collateral purported to be covered thereby. 
  
 (m) Purchases under NCB Loan Purchase Agreement. Borrower shall sell, or shall accept any amount in respect of the
Purchase Price (as defined in the NCB Loan Purchase Agreement) for, any Property (as defined in the NCB Loan Purchase Agreement) without obtaining the execution of and delivery by Agent of a Release with respect to all Collateral constituting or
relating to such Property. 
  
 (n) Purchases under Third Party
Loan Purchase Agreement. Borrower shall sell, or shall accept any amount in respect of the purchase price for, any property under any Third Party Loan Purchase Agreement without obtaining the execution of and delivery by Agent of a Release with
respect to all Collateral constituting or relating to such property. 
  
 7.2 Effect of Event of Default 
  
 If any
Event of Default shall occur, Agent may, subject to Section 8.3, at its election, and without notice of election and without demand, on behalf of Lenders, do any one or more of the following all of which are authorized by Borrower: 
  
 (i) Declare the Obligations, whether evidenced by this Agreement, by the
Notes, or otherwise, immediately due and payable; 
  
 (ii) Cease
advancing money or extending credit to or for the benefit of Borrower under this Agreement and terminate the daily automatic funds transfers from Agent’s Account to Borrower’s Account; 
  

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 (iii) Terminate this Agreement and the Commitments as to any future liability or obligation of Agent and
Lenders, but without affecting Agent’s and Lenders’ rights and security interest in the Collateral and the Obligations; 
  
 (iv) Exercise any or all of Agent’s rights and remedies under the Collateral Documents; and 
  
 (v) Proceed to enforce all other rights and remedies available to Agent and
Lenders under applicable law. 
  
 ARTICLE VIII 

AGENT AND LENDER 
  
 8.1 Appointment and Powers of Agent 
  
 Each Lender hereby appoints and authorizes Agent to take such action as agent on its behalf and to exercise such powers and discretion under this
Agreement and the Collateral Documents as are delegated to Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. Without limiting the foregoing, each Lender hereby expressly authorizes Agent to
execute, deliver, and perform its obligations under this Agreement and each of the Collateral Documents to which Agent is a party, and to exercise all rights, powers, and remedies that Agent may have hereunder or thereunder. As to any matters not
expressly provided for by this Agreement or the Collateral Documents (including enforcement or collection of the Notes), Agent (which term as used in this sentence, in Section 8.2, in Section 8.5, and in the first sentence of Section 8.6 shall
include reference to its Affiliates and to its own and its Affiliates’ officers, directors, employees, and agents) shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the instructions of Majority Lenders, and such instructions shall be binding upon all Lenders and all holders of the Notes; provided, however, that Agent shall not
be required to take any action which exposes Agent to personal liability or which is contrary to this Agreement, the Collateral Documents, the Notes, or applicable law. Agent agrees to give to each Lender prompt notice of each notice given to it by
Borrower pursuant to the terms of this Agreement or the Collateral Documents. 
  
 8.2 Agent’s Reliance 
  
 Agent shall not be liable for any action taken or omitted to be taken by it under or in connection with this Agreement, the Notes, any Purchase Notice, any Release, or any Collateral Document or any other Loan
Document, except for its own gross negligence or willful misconduct. Without limiting the generality of the foregoing, Agent: (a) may treat the payee of any Note as the holder thereof until Agent receives and accepts an assignment and acceptance
entered into by the Lender which is the payee of such Note, as assignor, and an assignee as provided in Section 11.8; (b) may consult with legal counsel, independent public accountants, and other experts selected by them and shall not be liable for
any action taken or omitted to be taken in good faith by Agent in accordance with the advice of such counsel, accountants, or experts; (c) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any
statements, warranties, or representations made in or in connection with this Agreement, the Notes, or any Collateral Document or any other Loan Document ; (d) shall not have any duty to ascertain or to inquire as to the performance or observance of
any of the terms, covenants, or conditions of this Agreement, the Notes, or any of the Collateral Documents or any other Loan Documents on the part of any Person party hereto or thereto or to inspect any asset (including the books and records) of
Borrower or any of its Subsidiaries; (e) shall not be responsible to any Lender for the due execution, legality, validity, 
  

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 enforceability, genuineness, sufficiency, or value of this Agreement, the Notes, or any Collateral Document or any other
Loan Document, or any other instrument or document furnished pursuant hereto or thereto; (f) shall incur no liability under or in respect of this Agreement, the Notes, or any Collateral Document or any other Loan Document by acting upon any notice,
consent, certificate, or other instrument or writing (which may be by telegram, cable, telefacsimile, or telex) believed by them to be genuine and signed or sent by the proper Person or Persons; and (g) may execute and deliver, and shall incur no
liability under or in respect to this Agreement, the Notes, or any Collateral Document by executing and delivering, or executing or delivering any other document, instrument or agreement releasing any Collateral in connection with such execution and
delivery of, a Release in respect of any Purchase Notice received by it. 
  
 8.3 Defaults 
  
 Agent shall not be deemed to have knowledge of the occurrence of an Event of Default unless Agent has received notice from a Lender or Borrower specifying the occurrence of such Event of Default and stating that such notice is a
“Notice of Default.” In the event that Agent receives such a notice of the occurrence of an Event of Default, Agent shall give prompt notice thereof to Lenders. Agent shall (subject to Sections 8.1, 8.5, and 8.7) take such action with
respect to such Event of Default as shall be directed by Majority Lenders; provided, however, that, unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Event of Default as it shall in its sole and absolute discretion deem advisable in the best interest of Lenders. 
  
 8.4 Rights as a Lender, Rights under NCB Loan Purchase Agreement 
  
 With respect to its Commitment and the Loans made by it, NCB (and any successor acting as Agent), in its capacity as a
Lender hereunder, shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not an Agent, and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated,
include NCB (and any successor acting as Agent), in its individual capacity. NCB (and any successor acting as Agent), and its Affiliates may (without having to account therefor to any Lender) accept deposits from (to the extent permitted by law),
lend money to, act as trustee under indentures of, and generally engage in any kind of banking, trust, or other business with Borrower, or any of its Subsidiaries or Affiliates, as if it were not the Agent, and NCB and its Affiliates, may accept
fees and other consideration from Borrower, or any of its respective Subsidiaries or Affiliates, for services rendered in connection with this Agreement or otherwise without having to account for the same to any Lender. NCB shall have the right to
perform its obligations in its capacity as “Buyer” under the NCB Loan Purchase Agreement. 
  
 8.5 Indemnification 
  
 Each Lender hereby agrees to indemnify and hold Agent harmless (to the extent not reimbursed on demand by Borrower), ratably according to the respective
principal amount of the Notes then held by each of them (or, if no principal is outstanding under the Notes at that time, according to their respective Commitments) from and against any and all losses, liabilities (including liabilities for
penalties), actions, suits, judgments, demands, damages, costs, disbursements, or expenses (including attorneys’ fees and expenses) of any kind or nature whatsoever which are imposed on, incurred by, or asserted against Agent in any way
relating to or arising out of this Agreement, the Notes, or the Collateral Documents or any other Loan Documents, or as a result of any action taken or omitted to be taken by Agent; provided, however, that no Lender shall be liable for any
portion of any such losses, liabilities (including liabilities for penalties), actions, suits, judgments, demands, damages, costs, disbursements, or expenses resulting from the gross negligence or willful misconduct of Agent. 
  

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 Without limiting the generality of the foregoing, each Lender hereby agrees, in the ratio aforesaid, to reimburse Agent
promptly following demand for reimbursement of any out-of-pocket expenses (including attorneys’ fees and expenses) incurred by Agent in connection with the preparation, execution, delivery, administration, modification, amendment, or
enforcement (whether through negotiations, legal proceedings, or otherwise) of, or legal advice in respect of, Agent’s rights or responsibilities under this Agreement, the Notes, or the Collateral Documents, any Loan Document or any other
documents contemplated by this Agreement, to the extent that Agent is not reimbursed (or are not entitled to be reimbursed), on demand, for such amounts by Borrower. Each Lender’s obligations hereunder shall survive the termination of this
Agreement and the discharge of Borrower’s obligations hereunder. 
  
 8.6 Non-Reliance by Lenders 
  
 Each
Lender hereby acknowledges that it has, independently of and without reliance upon Agent or any other Lender, and based upon the financial statements referred to in Section 4.1(d) and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently of and without reliance upon Agent or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own independent credit decisions in taking or omitting to take action under or in connection with this Agreement. Agent shall not be required to keep informed as to the performance or
observance by Borrower or any other Person of this Agreement, the Notes, the Collateral Documents or any other Loan Document, or to inspect the assets or books and records of Borrower, any of its Subsidiaries or Affiliates, or any other Person.
Agent shall promptly furnish to Lenders, as and when received by Agent, copies of the financial statements and reports set forth in Section 6.1(a) and of any other notices, reports, and other documents as Lenders may reasonably request of Agent.
Except for notices, reports, and other documents and information expressly required to be furnished to Lenders by Agent hereunder, Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning
the affairs, financial condition, or business of Borrower or its subsidiaries or Affiliates which may come into the possession of Agent or any of its Affiliates. 
  
 8.7 Failure to Act 
  

Except for action expressly required of Agent hereunder, Agent shall in all cases be fully justified in failing or refusing to act hereunder unless it
shall be indemnified to its satisfaction by Lenders against any and all liability and expense which may be incurred by them by reason of taking or continuing to take any such action. 
  
 8.8 Excess Payments 
  

If any Lender or other holder of a Note shall obtain any payment or other recovery (whether voluntary, involuntary, by application of offset, setoff,
or otherwise) on account of principal of or interest on any Note in excess of its pro rata share of payments and other recoveries obtained by all Lenders or holders of Notes, such Lender or other holder shall purchase from the other Lenders or
holders such participations in the Notes held by them as shall be necessary to cause such purchasing Lender or holder to share the excess payment or other recovery ratably with each of the other Lenders or holders; provided, however,
that, if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing Lender or holder, the purchase shall be rescinded and the purchase price restored to such Lender or other holder to the extent of such
recovery, but without interest. 
  

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 8.9 Sharing of Setoffs 
  
 Each Lender severally agrees that if it, through the exercise of the right of setoff, banker’s lien, or counterclaim
against Borrower or otherwise, receives payment of the Obligations due it hereunder and under the Notes that is ratably more than any other Lender, through any means, then: (a) the Lender exercising the right of setoff, banker’s lien, or
counterclaim or otherwise receiving such payment shall purchase, and shall be deemed to have simultaneously purchased, from the other Lenders a participation in the Obligations held by the other Lenders and shall pay to the other Lenders a purchase
price in an amount so that the share of the Obligations held by each Lender after the exercise of the right of setoff, banker’s lien, or counterclaim or receipt of payment shall be in the same proportion that existed prior to the exercise of
the right of setoff, banker’s lien, or counterclaim or receipt of payment, and (b) such other adjustments and purchases of participations shall be made from time to time as shall be equitable to ensure that all Lenders share any payment
obtained in respect of the Obligations ratably in accordance with each Lender’s share of the Obligations immediately prior to, and without taking into account, the payment; provided, however, that, if all or any portion of a
disproportionate payment obtained as a result of the exercise of the right of setoff, banker’s lien, counterclaim or otherwise is thereafter recovered from the purchasing Lender by Borrower or any Person claiming through or succeeding to the
rights of Borrower, the purchase of a participation shall be rescinded and the purchase thereof shall be restored to the extent of the recovery, but without interest; provided, further, however, that the rights of NCB with
respect to the NCB Stock shall not be subject to the provisions of this Section 8.9. Each Lender that purchases a participation in the Obligations pursuant to this Section 8.9 shall from and after the purchase have the right to give all notices,
requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased. Borrower
expressly consents to the foregoing arrangements and agrees that any Lender holding a participation in an Obligation so purchased may exercise any and all rights of setoff, banker’s lien or counterclaim with respect to the participation as
fully as if the Lender were the original owner of the Obligation purchased; provided, however, that each Lender agrees that it shall not exercise any right of setoff, banker’s lien or counterclaim without first obtaining the consent of the
Majority Lenders. 
  
 8.10 Characterization Of
Action 
  
 Nothing contained in this Agreement, and no action
taken by any Lender or Agent pursuant hereto or in connection herewith or pursuant to or in connection with the Notes or the Collateral Documents shall be deemed to constitute Lenders, together or with or without Agent, a partnership, association,
joint venture, or other entity. 
  
 8.11 Resignation by
or Removal of Agent 
  
 Agent may resign at any time as an
Agent under this Agreement and the Collateral Documents and the other Loan Documents by giving written notice thereof to Lenders and Borrower and may be removed at any time with or without cause by Majority Lenders. Upon any such resignation or
removal, the Majority Lenders shall have the right to appoint a successor Agent. If no successor Agent shall have been so appointed by Majority Lenders and shall have accepted such appointment, within 30 calendar days after the retiring Agent’s
giving of notice of resignation or Majority Lenders’ removal of the retiring Agent, then the retiring Agent may, on behalf of Lenders, appoint a successor Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent,
such successor Agent shall thereupon succeed to and become vested with all of the obligations, rights, powers, privileges, and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under this
Agreement, and the Collateral Documents and 
  

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 the other Loan Documents. After any retiring Agent’s resignation or removal hereunder as Agent, the provisions of
this Article VIII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. 
  
 8.12 No Obligation of Borrower. 
  
 Borrower shall not have any obligations to Agent or any Lender under this Article VIII which governs solely the rights and obligations of Lenders and
Agent, inter se. 
  
 ARTICLE IX 
 LENDERS’ REPRESENTATIONS 
  
 9.1 Investment Representation 
  
 Each Lender hereby represents to Borrower and to each other Lender that it will make its Loans for its own account in the ordinary course of its
commercial lending business and not with a view to the public distribution or sale of any Note held by such Lender. 
  
 ARTICLE X 
 EXPENSES AND INDEMNITEES 
  
 10.1 Expenses 
  
 (a) Payment by Agent on Behalf of Borrower. If Borrower fails to pay
promptly when due to any other Person, expenses or monies which Borrower is required to pay by reason of any provision in this Agreement, Agent may, but shall not be required to, pay the same and charge Borrower’s account therefor as
Agent’s Expenses; provided, however, that Agent shall not pay the same to the extent and so long as: (a) the same are being diligently contested, in good faith and by appropriate proceedings, and in such a manner as not to cause
any Material Adverse Effect; and (b) Borrower shall have set aside on its books reserves (segregated to the extent required by GAAP) adequate with respect thereto. All such sums shall become additional Obligations owing to Lenders, shall bear
interest at the rate set forth in Section 3.1(a)(i), and shall be secured by the Collateral. Any payments made by Agent shall not constitute: (i) an agreement by Agent to make similar payments in the future, or (ii) a waiver by Agent of any Default.
Agent need not inquire as to, or contest the validity of, any such expense, tax, security interest, encumbrance, or lien and the receipt of any customary official notice for the payment thereof shall be conclusive evidence that the same was validly
due and owing. 
  
 (b) Agent’s Expenses Due on Demand.
Irrespective of whether the transactions contemplated hereby shall be consummated, Borrower hereby agrees to pay to Agent, on demand, all Agent’s Expenses, and Borrower hereby authorizes and approves all advances and payments by Agent for items
constituting Agent’s Expenses. 
  
 10.2
Indemnity 
  
 In addition to the payment of
Agent’s Expenses pursuant to Section 10.1 and irrespective of whether the transactions contemplated hereby shall be consummated, Borrower hereby agrees to indemnify, exonerate, pay, and hold harmless Agent, Lenders, and the holders of any of
the Notes, and the officers, directors, employees, and agents of Agent, Lenders, or such holders (collectively, the “Indemnitees” and individually, an “Indemnitee”) from and against any and all liabilities, obligations, losses,
damages, penalties, actions, causes of action, judgments, suits, claims, 
  

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 costs, expenses, of any kind or nature whatsoever, including the reasonable fees and expenses of counsel to Indemnitees
(including allocated fees and expenses of in-house counsel of Agent), in connection with any investigative, administrative, or judicial proceeding, irrespective of whether such Indemnitee shall be designated a party thereto, which may be imposed on,
incurred by, or asserted against such Indemnitee, in any manner relating to or arising out of this Agreement, any other Loan Document, any Loans hereunder, the use or intended use of the proceeds of the Loans, or the consummation of the transactions
contemplated by this Agreement or any other Loan Document (the “Indemnified Liabilities”); provided, however, that Borrower’s obligations to indemnify shall not extend to any losses, damages, liabilities, actions, or
claims against any Indemnitee arising as a result of the gross negligence or willful misconduct of such Indemnitee. Each Indemnitee shall promptly notify Borrower of each event of which it has knowledge which may give rise to a claim under the
indemnification provisions of this Section 10.2. If any investigative, judicial, or administrative proceeding arising from any of the foregoing is brought against any Indemnitee, Borrower, to the extent and in the manner directed by such Indemnitee
or upon Borrower’s election (by prior notice to the Indemnitee) to so do, will resist and defend such action, suit, or proceeding by counsel designated by Borrower (which counsel shall be reasonably satisfactory to such Indemnitee);
provided, however, that Borrower’s obligation to so resist or defend any such action, suit, or proceeding shall exist if and only if Borrower is directed to do so by the Indemnitee or if Borrower has given Indemnitee prior notice
of its election to assume such defense. Such Indemnitee will use its best efforts to cooperate in all respects in the defense of any such action, suit, or proceeding. To the extent that the undertaking to indemnify, exonerate, pay, and hold harmless
set forth in this Section 10.2 may be unenforceable because it is violative of any law or public policy as determined by a final judgment of a court of competent jurisdiction, Borrower shall make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. The obligations of Borrower under this Section 10.2 shall survive the termination of this Agreement and the discharge of Borrower’s other obligations
hereunder. 
  
 ARTICLE XI 
 MISCELLANEOUS 
  
 11.1 Destruction of Borrower’s Documents 
  
 Except for original instruments or chattel paper, any documents, schedules, invoices or other papers delivered to Agent may be destroyed by Agent 6 months
after they are delivered to or received by Agent, unless (i) within such six month period, Borrower requests, in writing, the return of said documents, schedules, invoices or other papers and makes arrangements, at Borrower’s expense, for their
return or (ii) such documents, schedules, invoices or other papers relate to any Released Collateral, in which case such documents, schedules, invoices or other papers may be destroyed at any time after 30 days following the execution by NCB of the
Release related to any such Released Collateral, unless Borrower requests, in writing, the return of said documents, schedules, invoices or other papers. 
  
 11.2 Amendments, etc. 
  
 (a) Amendments with Consent of Agent. Borrower and Agent may enter into one or more amendments to any Collateral Document or this Agreement without
the consent of any Lender for any of the following purposes: 
  
 (i) to cure any ambiguity, defect or inconsistency herein or in any Collateral Document or to make any change not inconsistent with the provisions hereof; 
  

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 (ii) to convey, transfer, assign, mortgage, or pledge any property to or with Agent, or to make any
other provisions with respect to matters or questions arising hereunder or under any Collateral Document, so long as such action shall not adversely affect the interests of Lenders; 
  
 (iii) to add to the covenants of Borrower hereunder for the benefit of Lenders; and 
  
 (iv) to add to the rights of Lenders. Any such amendment must be in writing
and signed by Agent to be effective and then such amendment shall be effective only in the specific instance and for the specific purpose for which given. Agent shall promptly deliver to each Lender a copy of any such amendment. 
  
 (b) Amendments with Consent of Lenders. Except as provided in
subsection (a) of this Section 11.2 and except as contemplated in the definition of “Eligible Collateral”, no amendment or waiver of any provision of this Agreement or any Loan Document, nor consent to any departure by Borrower therefrom,
shall in any event be effective unless the same shall be in writing and signed by the Majority Lenders and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver, or consent shall, unless in writing and signed by all Lenders, do any of the following: (i) increase the Commitments of Lenders or subject Lenders to any additional obligations, (ii) reduce the principal
of, or interest on, the Loans or any fees or other amounts payable hereunder, (iii) postpone any date fixed for any payment of principal of, or interest on, the Loans or any fees or other amounts payable hereunder, including, without limitation, to
extend the Commitment Termination Date, (iv) change the percentage, or the aggregate unpaid, principal amount of the Notes or Loans, or the number of Lenders, which shall be required for Lenders or any of them to take any action hereunder, (v)
release any Collateral, except to the extent expressly provided herein or in the Collateral Documents, or (vi) amend this Section 11.2; provided further, however, that no amendment, waiver, or consent shall, unless in writing and
signed by Agent in addition to the Lenders required above to take such action, affect the rights or duties of Agent under this Agreement or any other Loan Document. 
  
 11.3 Notices 
  
 Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement shall be in writing and either (a) personally
served or (b) sent by regular United States mail, first class postage prepaid, with a copy sent via facsimile or overnight courier; to Borrower or to Agent, as the case may be, at its address set forth below: 
  

			
	If to Borrower :	 	GROCERS CAPITAL COMPANY
	 	 	5200 Sheila Street
	 	 	Commerce, CA 90040
	 	 	Facsimile No.: (323) 262-1516
	 	 	Attn: Chief Financial Officer
		
	If to Agent:	 	NATIONAL COOPERATIVE BANK
	 	 	1725 Eye Street NW, Suite 600
	 	 	Washington, D.C. 20006
	 	 	Facsimile No.: (202) 336-7659
	 	 	Attn: Corporate Banking Division

  

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 The parties hereto may change the address at which they are to receive notices hereunder, by notice in
writing in the foregoing manner given to the other. All notices or demands sent in accordance with this Section 11.3 shall be deemed received on the earlier of the date of actual receipt or 5 days after the deposit thereof in the United States mail.

  
 11.4 No Waiver; Cumulative Remedies 

 
 No failure on the part of Agent or any Lender to exercise, and no delay
in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights and remedies under this Agreement and the other Loan Documents are cumulative and not exclusive of any rights, remedies, powers and privileges that may
otherwise be available to Agent or any Lender. 
  
 11.5
Right of Set-Off 
  
 Upon the occurrence and during
the continuance of any Event of Default, each Lender hereby is authorized at any time and from time to time, without notice to Borrower (any such notice being expressly waived by Borrower), subject to Section 8.9, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of Borrower against any and all of the obligations of Borrower now or
hereafter existing under this Agreement and the Note held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement or such Note and although such obligations may be unmatured. Each Lender agrees
promptly to notify Borrower (through Agent) after any such set-off and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender
under this Section 11.5 are in addition to other rights and remedies (including other rights of set-off) which such Lender may have. 
  
 11.6 Survival 
  
 All covenants, agreements, representations and warranties made in any Loan Document shall, except to the extent otherwise provided therein, survive the
execution and delivery of this Agreement, the making of the Loans and the execution and delivery of the Notes, and shall continue in full force and effect so long as any Lender has a Commitment, any Loans remain outstanding or any other Obligations
remain unpaid or any obligation to perform any other act hereunder or under any other Loan Document remains unsatisfied. Without limiting the generality of the foregoing, the obligations of Borrower under Sections 2.4, 2.5, 3.3, 3.6, 3.7, 10.1 and
10.2 and of Lenders under Sections 2.12 and 8.5, and all similar obligations under the other Loan Documents (including all obligations to pay costs and expenses and all indemnity obligations), shall survive the repayment of the Loans and the
termination of the Commitments. 
  
 11.7 Benefits of
Agreement 
  
 This Agreement and the other Loan Documents are
entered into for the sole protection and benefit of the parties hereto and their successors and assigns, and no other Person shall be a direct or indirect beneficiary of, or shall have any direct or indirect cause of action or claim in connection
with, this Agreement or any other Loan Document. 
  

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 11.8 Assignments and Participations 
  
 (a) Assignments. Any Lender may make one or more assignments of its
rights, interests and obligations in the Loans (together with a pro rata interest in its Commitment) to one or more assignees (the “Assignee”) with the prior written consent of Borrower (which consent will not be unreasonably withheld or
delayed); provided, however, that any Lender may, subject to the limitations contained herein below in this Section 11.8(a), assign to another Lender any portion of its Loans or Commitments without the prior written consent of Borrower
or Agent; provided further, however, that Borrower shall not be obligated to pay the costs and expenses of any assigning Lender or any Assignee in connection with any such assignment. Each such Assignee shall become a party to this
Agreement as a “Lender” upon: (i) the execution of an amendment to this Agreement or the execution of a supplemental assignment and acceptance agreement with the assigning Lender, the Assignee, Agent, and, in the event Borrower’s
prior written consent to such assignment is required, Borrower; (ii) the notification of Borrower and Agent by the assigning Lender of the identity of the Assignee and the amount of the Loans or Commitment assigned; and (iii) the payment to Agent,
for its own account, of a processing and recordation fee of $3,000; whereupon, from and after the effective date of such assignment as designated by Agent, the assigning Lender shall be released and discharged from, and such Assignee shall assume,
all rights, duties and obligations with respect to the interest so assigned. Any such assignment shall be made pro rata according to all of such Lender’s Loans and its Commitment. At such time, the Commitment amounts referenced herein shall be
modified to reflect the pro rata share of the Commitment of such new Lender and of the existing Lenders. In addition, Borrower will, in exchange for the assigning Lender’s existing Notes issue new Notes hereunder to such new Lender and to the
assigning Lender in conformity with the requirements of this Agreement in order to reflect their revised pro rata shares of the Commitment and, if applicable, Loans. The Notes received by Agent in exchange for such new Notes shall be cancelled and
returned to Borrower. Any partial assignment under this Agreement (other than to any Affiliate of the assigning Lender or to any other Lender) shall be in a minimum amount equal to $5,000,000. 
  
 (b) Participations. Any Lender may grant one or more participations in
its interests in the Loans or its Commitment; provided, however, that: (i) such Lender shall remain a “Lender” for all purposes under this Agreement and the participant shall not constitute a “Lender” under this Agreement;
(ii) any such grant of a participation will be made in compliance with all applicable state or federal laws, rules, and regulations; (iii) any such participation shall be made pro rata according to all of such Lender’s Loans or its Commitment;
and (iv) no Lender shall grant any participation under which the participant shall have rights to approve any amendment to or waiver of this Agreement, the Notes, or the Collateral Documents, except as to matters specifically relating to rates of
interest on the Obligations, the amount of such Lender’s Commitment, and extensions to the Commitment Termination Date. In the case of any participation, the participant shall not have any rights under this Agreement or any of the other
documents entered into in connection herewith (the participant’s rights against such Lender in respect of such participation to be those set forth in the participation or other agreement executed by such Lender and the participant relating
thereto) and all amounts payable to any Lender hereunder shall be determined as if such Lender had not sold such participation. In no event shall any participant grant a participation in its participation interest in the Loans or the Commitment in
which it is participating without the prior written consent of Agent. 
  
 (c) Affiliates. Notwithstanding anything to the contrary contained in clauses (a) and (b) of this Section 11.8, no Lender shall be restricted from making assignments or granting participations to any of its Affiliates. 
  
 (d) Inurement; No Assignment by Borrower. Subject to subsections (a),
(b), and (c) of this Section 11.8, this Agreement shall bind and inure to the benefit of the respective successors 
  

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 and assigns of Lenders. Borrower may not assign this Agreement or any rights hereunder without Lenders’ prior
written consent and any prohibited assignment shall be absolutely void. No consent to an assignment by Lenders shall release Borrower of its Obligations to Lenders. 
  
 11.9 GOVERNING LAW. EXCEPT AS SPECIFICALLY SET FORTH IN ANY COLLATERAL DOCUMENT (A) THIS AGREEMENT, THE
NOTES, AND THE COLLATERAL DOCUMENTS SHALL BE DEEMED TO HAVE BEEN MADE IN THE STATE OF CALIFORNIA; AND (B) THE VALIDITY OF THIS AGREEMENT, THE NOTES, AND THE COLLATERAL DOCUMENTS, AND THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND
THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
  
 11.10 CONSENT TO VENUE. THE PARTIES HERETO AGREE THAT ALL
ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT, THE NOTES, OR THE COLLATERAL DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA. EACH OF BORROWER,
LENDERS, AND AGENT HEREBY WAIVES ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 11.10 AND STIPULATES THAT THE STATE AND FEDERAL
COURTS LOCATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, SHALL HAVE JURISDICTION AND VENUE OVER IT FOR THE PURPOSE OF LITIGATING ANY SUCH DISPUTE, CONTROVERSY, OR PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE NOTES, OR THE
COLLATERAL DOCUMENTS. SERVICE OF PROCESS SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST EACH OF BORROWER, LENDERS, AND AGENT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ITS ADDRESS INDICATED IN SECTION 11.3.
EACH OF BORROWER, LENDERS, AND AGENT AGREES THAT ANY FINAL JUDGMENT RENDERED AGAINST IT IN ANY ACTION OR PROCEEDING SHALL BE CONCLUSIVE AS TO THE SUBJECT OF SUCH FINAL JUDGMENT AND MAY BE ENFORCED IN OTHER JURISDICTIONS IN ANY MANNER PROVIDED BY
LAW. 
  
 11.11 WAIVER OF JURY TRIAL. EACH OF
BORROWER, LENDERS, AND AGENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS AGREEMENT, THE NOTES, OR THE COLLATERAL DOCUMENTS, OR IN ANY WAY
CONNECTED WITH, OR RELATED TO, OR INCIDENTAL TO, THE DEALINGS OF THE PARTIES HERETO WITH RESPECT TO THIS AGREEMENT, THE NOTES, THE COLLATERAL DOCUMENTS, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND IRRESPECTIVE OF WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE. EACH OF BORROWER, LENDERS, AND AGENT HEREBY AGREES THAT ANY SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION, OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY
AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 11.11 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE OTHER PARTY OR PARTIES HERETO TO WAIVER OF ITS OR THEIR RIGHT TO TRIAL BY JURY. 
  

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 11.12 Demand, Protest, Notice 
  
 Borrower waives demand, protest, notice of protest, notice of default or
dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of any or all commercial paper, accounts, documents, instruments, chattel paper, and guarantees at any
time held by Agent or Lenders on which Borrower may in any way be liable. 
  
 11.13 Confidential Relationships 
  
 Borrower waives the right to assert a confidential relationship, if any, it may have with any accounting firm or service bureau in connection with any information requested by Agent or Lenders pursuant to or in
accordance with this Agreement, and agrees that Agent or Lenders may contact directly any such accounting firm or service bureau in order to obtain such information. 
  
 11.14 Limitation on Liability 
  
 No claim shall be made by Borrower or its Affiliates against Agent, Lenders or any of their respective Affiliates,
directors, employees, attorneys or agents for any special, indirect, exemplary, consequential or punitive damages in respect of any breach or wrongful conduct (whether or not the claim therefor is based on contract, tort or duty imposed by law), in
connection with, arising out of or in any way related to the transactions contemplated by this Agreement or the other Loan Documents or any act or omission or event occurring in connection therewith; and Borrower hereby waives, releases and agrees
not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
  
 11.15 Entire Agreement 
  
 This Agreement and the other Loan Documents reflect the entire agreement among Borrower, Lenders and Agent with respect to the matters set forth herein
and therein and supersede any prior agreements, drafts, communications, commitments, discussions and understandings, oral or written, with respect thereto. 
  
 11.16 Interpretation 
  
 This Agreement and the other Loan Documents were drafted with the joint participation of the respective parties thereto and shall be construed neither
against nor in favor of any party, but rather in accordance with the fair meaning thereof. 
  
 11.17 Confidentiality 
  
 Each Lender and Agent shall hold all non-public information relating to Unified, Borrower and their respective Subsidiaries obtained by it under this Agreement in accordance with its customary procedures for handling confidential
information of this nature, except for: (i) disclosure to its counsel or to any agent or advisor acting on its behalf in connection with the negotiation, execution or performance of the Loan Documents; (ii) disclosure as reasonably required in
connection with a transfer to a prospective assignee or participant of all or part of its Loans or any participation therein, as provided in Section 11.8; (iii) disclosure as may be required or requested by Governmental 
  

 -54- 

 Authority or representative thereof or pursuant to legal process; and (iv) any other disclosure with the prior written
consent of Borrower or Unified, as the case may be. Prior to any disclosure by any Lender or Agent of such non-public information permitted under clause (iii) (other than in connection with an examination of the financial condition of such Lender,
Agent or any of their Affiliates by any Governmental Authority), such Lender or Agent shall, if permitted by applicable law or judicial order, notify Borrower of such pending disclosure. In no event shall any Lender or Agent be obligated or required
to return any materials furnished by Unified, Borrower or any of their Subsidiaries. Notwithstanding the foregoing, such obligation of confidentiality shall not apply if the information or substantially similar information (A) is rightfully received
by any Lender or Agent from a Person other than Unified, Borrower or any of their Affiliates without such Lender or Agent being under an obligation to such Person not to disclose such information, or (B) is or becomes part of the public domain.

  
 11.18 Severability 
  
 Whenever possible, each provision of this Agreement and the other Loan
Documents shall be interpreted in such manner as to be effective and valid under all applicable laws and regulations. If, however, any provision of this Agreement or any of the other Loan Documents shall be prohibited by or invalid under any such
law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid
only to the extent of such prohibition or invalidity without affecting the remaining provisions of this Agreement and the other Loan Documents, or the validity or effectiveness of such provision in any other jurisdiction. 
  
 11.19 Counterparts 
  
 This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. This Agreement shall become effective when it shall
have been executed by Borrower and Agent and when Agent shall have been notified by each Lender that such Lender has executed it. 
  
 [Remainder of Page Intentionally Left Blank; Signature Page Follows] 
  

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 IN WITNESS WHEREOF the parties hereto have duly executed this Agreement as of the date first above
written. 
  

					
	 	 	 Borrower

		
	 	 	 GROCERS CAPITAL COMPANY

			
	 	 	 By:
	 	 /s/    CAROLYN FOX

	 	 	 Title:
	 	 Carolyn Fox, President

			
	 	 	 Agent
	 	 
		
	 	 	 NATIONAL CONSUMER COOPERATIVE BANK

			
	 	 	 By:
	 	 /s/  ROMIE BASRA

	 	 	 Title:
	 	 Romie Basra, Vice President

		
	 Commitment            
	 	 Lenders

		
	 $10,000,000
	 	 NATIONAL CONSUMER COOPERATIVE BANK

			
	 	 	 By:
	 	 /s/    ROMIE BASRA

	 	 	 Title:
	 	 Romie Basra, Vice President

  
 Signature Page:

 Second Amended and Restated 
 Credit Agreement 

 EXHIBIT 1.1 B-1 
  
 FORM OF BORROWING BASE CERTIFICATE 
  

			
	 To:
	 	National Consumer Cooperative Bank, as Agent
	 	 	1725 Eye Street, NW, Suite 600
	 	 	Washington, D.C. 20006
	 	 	Attn: Loan Servicing

  
 Re:     Grocers Capital Company 
  
 Ladies and
Gentlemen: 
  
 This Borrowing Base Certificate is made and
delivered pursuant to the Second Amended and Restated Credit Agreement dated as of June 9, 2004 (as amended, modified, renewed or extended from time to time, the “Credit Agreement”) among Grocers Capital Company (“Borrower”),
certain financial institutions named therein as Lenders and National Consumer Cooperative Bank, dba National Cooperative Bank, as Agent, and reference is made thereto for full particulars of the matters described herein. All capitalized terms used
in this Borrowing Base Certificate and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement. 
  
 I am the Chief Financial Officer of Borrower and hereby certify that the information set forth on Schedule 1 hereto is true, accurate and complete as of
                ,             . 
  
 IN WITNESS WHEREOF, the undersigned officer in his capacity as such has signed this Borrowing Base Certificate this
                 day of                 ,
            . 
  

			
	 GROCERS CAPITAL COMPANY,

	 a California corporation

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	 Chief Financial Officer

  

 -1- 

 SCHEDULE 1 
 to the Borrowing Base Certificate 
  

			
	 Date of Calculation:
	 	_____, __        

  

									
	 A.
	  	Eligible Collateral	  	 
				
	 	  	1.	 	Aggregate amount of Receivables arising in the ordinary course of Borrower’s business	  	$_______________
				
	 	  	2.	 	Ineligible Receivables:	  	 
					
	 	  	 	 	(a)	 	Receivables for which Borrower’s right to receive payment has not been fully earned by performance or is contingent upon the fulfillment of any condition whatsoever or which otherwise do
not arise from bona fide completed transactions with Borrower	  	$_______________
					
	 	  	 	 	(b)	 	Receivables which have been disputed or against which there have been asserted any defenses, offsets, claims, counterclaims, or other defenses of any nature, whether well-founded or
otherwise, or which are otherwise conditional	  	$_______________
					
	 	  	 	 	(c)	 	Receivables that do not comply with all applicable legal requirements, including all laws, rules, regulations and orders of any Governmental Authority	  	$_______________
					
	 	  	 	 	(d)	 	Receivables which are not owned by Borrower free and clear of all Liens and rights of others (other than the Liens in favor of Agent on behalf of Lenders and other Permitted
Liens)	  	$_______________
					
	 	  	 	 	(e)	 	Receivables in which the Agent on behalf of Lenders shall not have a valid and perfected first-priority Lien	  	$_______________
					
	 	  	 	 	(f)	 	Receivables owing by any officer, director (but not in his or her capacity as a Unified Patron), employee, agent, partner, Subsidiary or Affiliate of Borrower (other than Affiliate
Loans)	  	$_______________

  

 -2- 

									
	 	  	 	 	 (g)
	 	Receivables owing by the United States or any department, agency or instrumentality thereof or by a State or any department, agency, instrumentality or political subdivision
thereof	  	$_______________
					
	 	  	 	 	 (h)
	 	Receivables denominated in currency other than Dollars or owing by any non-resident of the United States	  	$_______________
					
	 	  	 	 	 (i)
	 	Receivables not complying with the GCC Loan Guidelines and other documentation, credit and collection policies and practices of Borrower	  	$_______________
					
	 	  	 	 	 (j)
	 	Receivables owing by any Receivable Debtor who, as of the end of the previous collection period, has failed to make full payment within 90 days from the due date on the Receivables or any
portion thereof owing to Borrower by such Receivable Debtor or, as to any such Receivables of such a Receivable Debtor disputed in good faith, such unpaid Receivables	  	$_______________
					
	 	  	 	 	 (k)
	 	Receivables owing by any bankrupt or insolvent Receivable Debtors	  	$_______________
					
	 	  	 	 	 (l)
	 	Receivables which are subordinated to the prior payment of any other obligations of the Receivable Debtor obligated in respect of such Receivable	  	$_______________
					
	 	  	 	 	 (m)
	 	Receivables with respect to which the terms or conditions prohibit or restrict assignment or collection rights, or which require the consent of the Receivable Debtor that has not been
obtained	  	$_______________

  

 -3- 

										
	 	  	 	 	(n	)	 	Receivables with respect to which Agent, in its reasonable discretion, deems the creditworthiness or financial condition of the Receivable Debtor to be unsatisfactory or the prospect of
payment or performance to be impaired, and other Receivables which, in Agent’s reasonable discretion, are otherwise ineligible; provided that, with respect to Alternative Use Receivables, the Agent may (in its sole discretion) waive any
or all of preceding clauses (d), (e), (f), (g), (i) and/or (l)	  	$_______________
				
	 	  	 3.
	 	Total ineligible Receivables (sum of 2(a) through 2(n))	  	$_______________
				
	 	  	 4.
	 	Total Eligible Collateral (1 minus 3)	  	$_______________
				
	 	  	 5.
	 	Eligible Collateral consisting of Finance Receivables	  	$_______________
					
	 	  	 	 	(a	)	 	Eligible Store Development Loans	  	$_______________
					
	 	  	 	 	(b	)	 	Eligible Equipment Loans	  	$_______________
					
	 	  	 	 	(c	)	 	Eligible Inventory Loans	  	$_______________
					
	 	  	 	 	(d	)	 	Eligible New Lease/Loan Products (designated as Finance Receivables pursuant to Section 6.4(l) of the Credit Agreement)	  	$_______________
				
	 	  	 6.
	 	Total eligible Finance Receivables	  	$_______________
				
	 	  	 7.
	 	Total eligible Deposit Fund Loans	  	$_______________
				
	 	  	 8.
	 	Total eligible Affiliate Loans	  	$_______________
				
	 	  	 9.
	 	Total eligible Program Leases	  	$_______________
				
	 	  	 10.
	 	Total eligible subordinated Indebtedness (up to a maximum aggregate amount of $2,000,000)	  	 
				
	 	  	 11.
	 	Total eligible New Lease/Loan Products (designated as Additional Loan/Lease Receivables pursuant
to Section 6.4(l) of the Credit Agreement)	  	$_______________
				
	 	  	 12.
	 	Total eligible Alternative Use Receivables which Agent has approved for inclusion in the Borrowing
Base	  	$_______________

  

 -4- 

									
	 	  	13.	 	Total eligible Expansion Loans provided that no Expansion Loan shall under any circumstances
remain in the Borrowing Base for more than twelve months	  	$_______________
			
	 B.
	  	Borrowing Base and Availability	  	 
				
	 	  	1.	 	Determination of Borrowing Base	  	 
					
	 	  	 	 	(a)	 	75% of A.6	  	$_______________
					
	 	  	 	 	(b)	 	50% of A.7	  	$_______________
					
	 	  	 	 	(c)	 	50% of A.8	  	$_______________
					
	 	  	 	 	(d)	 	50% of A.9	  	$_______________
					
	 	  	 	 	(e)	 	50% of A.10	  	$_______________
					
	 	  	 	 	(f)	 	50% of A.11	  	$_______________
					
	 	  	 	 	(g)	 	Percentage of each Alternative Use Receivable determined by Agent in its sole discretion; schedule attached if any Alternative Use Receivables included in Borrowing Base; input aggregate
number for all Alternative Use Receivables from schedule	  	$_______________
					
	 	  	 	 	(h)	 	75% of A.13	  	$_______________
				
	 	  	2.	 	Borrowing Base (sum of B.1(a) through B.1(h))	  	$_______________
				
	 	  	3.	 	Outstanding aggregate principal amount of Loans	  	$_______________
				
	 	  	4.	 	Total Commitments	  	$_______________
				
	 	  	5.	 	Aggregate principal amount of Loans available for borrowing (lesser of B.2 minus B.3 or B.4 minus
B.3)	  	$_______________
				
	 	  	6.	 	Aggregate principal amount of Loans to be prepaid (if B.2 is less than B.3)	  	$_______________

  

 -5- 

 Exhibit 1.1 C-1 
  
 FORM OF COMPLIANCE CERTIFICATE 
  
 National Consumer Cooperative Bank 
 1725 Eye
Street, NW, Suite 600 
 Washington, D.C. 20006 
 Attn.: Loan
Servicing 
  
 Re: Grocers Capital Company 
  
 Ladies and Gentlemen: 
  
 This Compliance Certificate is made and delivered pursuant to the Second Amended and Restated Credit Agreement dated as of
June 9, 2004 (as amended, modified, renewed or extended from time to time, the “Credit Agreement”) among Grocers Capital Company (“Borrower”), certain financial institutions named therein as Lenders, and National Consumer
Cooperative Bank, dba National Cooperative Bank, as Agent, and reference is made thereto for full particulars of the matters described therein. All capitalized terms used in this Compliance Certificate and not otherwise defined herein shall have the
meanings assigned to them in the Credit Agreement. This Compliance Certificate relates to the accounting period ending             ,
        . 
  
 I am
the chief financial officer of Borrower and hereby certify that the information set forth on Schedule 1 hereto (and on any additional schedules hereto setting forth further supporting detail) is true, accurate and complete as of the end of such
accounting period. 
  
 I hereby further certify that (i) as of the
date hereof that no Default has occurred and is continuing and (ii) on and as of the date hereof, there has occurred no Material Adverse Effect since the date of the last financial statements delivered to Agent and Lenders pursuant to the Credit
Agreement, except in each case as may be set forth in a separate attachment hereto describing in detail the nature of each condition or event constituting an exception to the foregoing statements, the period during which it has existed and the
action which Borrower or Unified, as the case may be, is taking or proposes to take with respect to each such condition or event. 
  
 IN WITNESS WHEREOF, the undersigned officer in his capacity as such has signed this Compliance Certificate this
        day of             ,         . 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	Chief Financial Officer

  

 -1- 

 SCHEDULE 
 to the Compliance Certificate 
  
 Dated
                    ,             . 
  
 For the fiscal quarter ended
                    ,             . 
  

											
	 	  	 	  	 	  	 	  	Actual

	  	Required/Permitted

					
	 1.
	  	Section 6.2(a) – Debt Ratio	  	 	  	 	  	 
						
	 	  	(A)	  	Indebtedness calculation	  	 	  	 	  	 
						
	 	  	 	  	Indebtedness	  	$__________	  	 	  	 
	 	  	 	  	minus Capital Debt	  	$__________	  	 	  	 
					
	 	  	Net Consolidated Indebtedness	  	 	  	$__________	  	 
						
	 	  	(B)	  	Consolidated Adjusted Tangible Net Worth calculation	  	 	  	 	  	 
						
	 	  	 	  	Consolidated Total Assets	  	$__________	  	 	  	 
						
	 	  	 	  	plus the book value of NCB stock	  	$__________	  	 	  	 
						
	 	  	 	  	plus Capital Debt	  	$__________	  	 	  	 
						
	 	  	 	  	minus Consolidated Total Liabilities	  	$__________	  	 	  	 
						
	 	  	 	  	minus intangible assets and other excluded assets	  	$__________	  	 	  	 
						
	 	  	 	  	minus all unamortized debt discount and expense	  	$__________	  	 	  	 
						
	 	  	 	  	minus all treasury stock	  	$__________	  	 	  	 

  

 -2- 

											
	 	  	 	 	 	  	 	  	Actual

	  	Required/Permitted

						
	 	  	 	 	 minus all receivables from and other obligations of directors (other than in their capacities as Unified Patrons), employees or officers of
Borrower
	  	$__________	  	 	  	 
						
	 	  	 	 	 minus the excess, if any, of the aggregate balance of Receivables past due more than 90 days over reserves for loan losses
	  	$__________	  	 	  	 
						
	 	  	 	 	 Consolidated Adjusted Tangible Net Worth
	  	 	  	$__________	  	 
						
	 	  	 	 	 Ratio of (A) to (B)
	  	 	  	__________	  	Not more than 1.6 to 1.0
					
	 2.
	  	Section 6.2(b) – Minimum Consolidated Tangible Net Worth	  	 	  	 	  	 
					
	 	  	Consolidated Tangible Net Worth calculation	  	 	  	 	  	 
					
	 	  	Consolidated Total Assets	  	$__________	  	 	  	 
					
	 	  	minus Consolidated Total Liabilities	  	$__________	  	 	  	 
					
	 	  	minus intangible assets and other excluded assets	  	$__________	  	 	  	 
					
	 	  	minus all unamortized debt discount and expense	  	$__________	  	 	  	 
					
	 	  	minus all treasury stock	  	$__________	  	 	  	 

  

 -3- 

											
	 	  	 	  	 	 	 	 	Actual

	 	Required/Permitted

					
	 	  	minus all receivables from and other obligations of directors (other than in their capacities as Unified Patrons), employees or officers of Borrower or Unified	 	$__________	 	 	 	 
					
	 	  	Consolidated Tangible Net Worth	 	 	 	$__________	 	Not less than $15,000,000
				
	 3.
	  	Section 6.2(c) – Interest Coverage Ratio	 	 	 	 
						
	 	  	(A)	  	Consolidated EBIT calculation for four consecutive fiscal quarters of Borrower then ended	 	 	 	 	 	 
						
	 	  	 	  	Consolidated Net Income (excluding notes or other payments in kind received by Borrower in payment of any obligations to it)	 	$__________	 	 	 	 
						
	 	  	 	  	plus Consolidated Interest Expense	 	$__________	 	 	 	 
						
	 	  	 	  	plus income tax expense of Borrower and its Subsidiaries on a Consolidated basis	 	$__________	 	 	 	 
						
	 	  	 	  	Consolidated EBIT	 	 	 	$__________	 	 
						
	 	  	(B)	  	Consolidated Interest Expense	 	 	 	$__________	 	 
					
	 	  	Ratio of (A) to (B)1	 	 	 	__________	 	Not less than 2.0 to 1.0
					
	 4.
	  	Section 6.4(a) - Indebtedness	 	 	 	 	 	 
						
	 	  	6.4(a)(v)	  	 Senior Debt and
 Subordinated
 Debt Calculation
	 	 	 	 	 	 

	1	Ratio shall be computed excluding gains, losses, interest and other expenses and taxes relating to Borrower's interest in Sav Max Foods, Inc.

  

 -4- 

									
	 	 	 	 	 	  	Actual

	  	 Required/Permitted

	 	 	 Senior Debt of Borrower and its Subsidiaries
	  	$__________	  	 
				
	 	 	 Subordinated Debt of Borrower and its Subsidiaries
	  	$__________	  	 
				
	 	 	 Total Senior Debt and Subordinated Debt of Borrower and its Subsidiaries
	  	$__________	  	Not more than $30,000,000
					
	 	 	6.4(a)(vii)	 	Indebtedness of Borrower and its Subsidiaries under Capital Leases	  	$__________	  	Not more than $1,000,000
				
	 5.
	 	Section 6.4(f) - Loans and Investments	  	 	  	 
					
	 	 	 	 	 	  	 	  	 
					
	 	 	6.4(f)(iv)	 	Consolidated Adjusted Tangible Net Worth was calculated in (1) above	  	$__________	  	 
				
	 	 	 Subordinated Indebtedness of Unified Patrons
	  	$__________	  	 
				
	 	 	 Equity Investments in Unified Patrons
	  	$__________	  	 
				
	 	 	 Sum of above
	  	$__________	  	Not to exceed at the time of credit extension or investment the applicable “Maximum Amount” set forth in Section 6.4(f)(iv)

  

 -5- 

									
	 	 	 	 	 	  	Actual

	  	 Required/Permitted

	 6.
	 	Section 6.4(g) – Capital Expenditures	  	 	  	 
				
	 	 	 Capital Expenditures
	  	$__________	  	Not more than $250,000 in fiscal year
				
	7.	 	Section 6.4(h) - Operating Leases	  	 	  	 
				
	 	 	6.4(h) Operating Lease Payments	  	$__________	  	Not more than $500,000 in fiscal year

  

 -6- 

 EXHIBIT 1.1 G-1 
  
 GROCERS CAPITAL COMPANY 
  
 MEMBER FINANCING POLICIES AND PROCEDURES 
  
 Approximately 35 years ago, the Unified Western Grocers (“UWG”) Board of Directors voted to begin offering financing services to
members as a way to support wholesale and retail expansion and maintain competitiveness. In 1975, Grocers Capital Company (“GCC”) was incorporated as a wholly-owned finance subsidiary to make loans to the members. The objective of GCC
financing has been to support member growth with competitive financing through prudent lending that provides a satisfactory return to GCC and the shareholders of Unified. These credit and collection policies govern the underwriting and servicing of
loans by GCC. 
  
 Effective shortly after the CGC / UG merger, all member
financing requests began being processed through GCC. Requests previously reviewed by United Resources are now consolidated with GCC. The following is a description of that process, starting with the types of financing that are currently available.

  
 1. Mission Statement 
  
 The mission statement of GCC is as follows: 
  
 “To provide financial services in partnership with progressive
retailers which support the managed growth of the retailers and Unified and its subsidiaries” 
  
 2. Guiding Principles 
  
 GCC
Management is guided by the following principles: 
  

	 	•	GCC’s primary goal is to serve the capital needs of UWG Members while maintaining a satisfactory return on assets and portfolio credit quality. 

  

	 	•	The importance of the financing request to achieving UWG’s long-term goals, the ability of the borrower to repay the debt (historical cash flow), the quality of the
borrower’s balance sheet, and the collateral value of the assets pledged, in that order, are the most important factors in a credit decision. 

  

	 	•	Wherever possible, GCC seeks to reduce credit risk by obtaining additional support through guarantees, real estate, deposits, and other assets. 

  

			
	 	 	1

 3. Scope of Credit Services 
  
 a. Desirable Credit 
  
 (All of the following require collateral, personal guaranty, and supply agreement) 
  
 Inventory Term loans - usually used for existing inventory purchased in conjunction with a new store. Also available for initial
inventory required to support a new store grand opening or remodel expansion. Monthly repayment up to 5 years. 
  
 Equipment loans – for grocery equipment associated with purchase or remodel of existing store. Monthly repayment up to 7 years. 
  
 “Buy / Sell” loans - for the purchase of existing grocery store. Many times used in conjunction with Inventory Term loan.
Monthly repayment up to 7 years. 
  
 Deposit Fund loans - 100% of initial
UWG deposit for new members. Weekly repayment over 5 years. 
  
 NOTE: This is the only loan not requiring specific collateral 
  
 Loan Guarantee - Member financing request that is determined would be best provided by a 3rd party
financing source. GCC guarantee percentage varies with member credit strength as evaluated by 3rd party lender.

  
 Equity Investment - On occasion, GCC may make an equity investment in a
Member. 
  
 b. Undesirable Credit 
  
 The following types of credit facilities are considered undesirable and have been identified
as situations with greater than normal risk. When these circumstances are present, the credit request would normally be declined. Exceptions may be approved if, in the judgement of GCC Management, the risks can be controlled. 
  

	 	•	Loans to a business where the loans cannot be repaid within the specified term except by borrowing elsewhere or by liquidating assets. 

  

	 	•	Venture capital loans to a start-up business where the borrowers lack experience in the retail grocery business and the equity participation of the borrowers is limited. These loans
may be considered if the borrowers have other sources of repayment acceptable to GCC which are pledged in support of the loans. 

  

	 	•	Loans to parties whose integrity or honesty is questionable. 

  

	 	•	Real estate loans, either construction or takeout. 

  

			
	 	 	2

	 	•	Credit facilities to holding companies that do not have operating assets. 

  

	 	•	Loans with balloon payments of greater than 40% of the original principal balance and / or amortizations of greater than 10 years. 

  

	 	•	Credit facilities with maturities beyond seven years. 

  

	 	•	Credit extensions to pay delinquent interest. 

  

	 	•	Loans to company owners with the purpose being the buyout of other owners. 

  

	 	•	Working capital loans with the purpose of curing a cash flow deficit. 

  
 3. Eligibility 
  
 GCC may provide financing to any UWG Member Patron, Affiliate, or Customer. Subsidiaries, affiliates, and principals of the above are also eligible provided that GCC Management judges that the financing is warranted.
GCC may request documentation including articles of incorporation, financial statements or tax returns to support the eligibility of any prospective borrower. 
  

4. Single Borrower Concentration Limits 
  
 GCC’s single borrower limit (including loans, guarantees, and investments) is 35% of total Shareholder’s Equity as recorded on GCC’s financial statements.

  
 GCC’s concentration limit is set at 25% of total Finance Receivables as
recorded on GCC’s financial statements. 
  
 Any proposed loans that will
cause the borrower to exceed the single borrower or concentration limits should include specific approval of that exception. 
  
 5. Credit Approval Authority Levels (based on a member’s cumulative loan balance): 
  
 $0 TO $50,000 
  
 ANY GCC OFFICER 
  
 $50,001 TO $100,000: 
  
 ANY TWO GCC
OFFICERS 
  
 $100,001 TO $3,000,000: 
  
 LOAN COMMITTEE-APPROVAL REQUIRES MAJORITY VOTE 
  

			
	 	 	3

 OVER $3,000,000 
  

	REVIEW	AND RECOMMENDATION FROM LOAN COMMITTEE 

	REVIEW	AND RECOMMENDATION FROM UNIFIED FINANCE COMMITTEE 

	REVIEW	AND APPROVAL FROM BOARD OF DIRECTORS OF UNIFIED 

  

	ANY	BOARD MEMBER REQUEST/All EQUITY INVESTMENTS 

  

	REVIEW	AND RECOMMENDATION FROM LOAN COMMITTEE 

	REVIEW	AND RECOMMENDATION FROM UNIFIED FINANCE COMMITTEE 

	REVIEW	AND APPROVAL FROM BOARD OF DIRECTORS OF UNIFIED 

  
 NOTE: Director requests require approval of UNIFIED Board Credit Committee 
  

SEE ATTACHED PROCEDURES TO FOLLOW AFTER LOAN COMMITTEE DECISION. 
  
 6. Modifications to Loan Terms 
  
 Regardless of which lending authority has approved a credit extension, GCC Management may make modifications as to amount of credit, rate, and terms as follows:

  

	 	•	Amount of Credit – Up to 10% increase in the approved amount 

  

	 	•	Interest Rate – Up to 1% of the approved rate 

  

	 	•	Terms – GCC Management may adjust the terms (collateral, covenants, guarantors, etc.) as long as in its best judgement, the changes do not materially affect the intent of the
lending authority which approved the credit extension. Changes other than the amount and rate noted above should be documented in written form (NOTE TO FILE) and placed in the loan file. Any significant release of collateral must be approved by the
Loan Committee or Board of Directors, as per the required credit approval authority criteria. 

  
 7. Credit and Security Standards 
  
 The guiding principles of GCC’s Credit and Collection Policy will be followed when underwriting and originating any credit extension. Cash flow and the certainty of future cash flows will be regarded as the primary source of repayment
for all credit extensions. 
  
 Secondary sources of repayment will be obtained
whenever possible through collateral, guarantees and other forms of support to the primary source of repayment. GCC will comply with all laws and regulations pertaining to credit and lending practices. 
  

			
	 	 	4

 a. Loan Purpose 
  
 GCC Management will review the credit request to ensure that the request meets the needs of the borrower. The use of the proceeds and the sources of repayment should be
clearly identified. 
  
 b. Underwriting Criteria 
  
 GCC will underwrite all eligible borrowers, subject only to funds availability and approval
of credit. The underwriting will include (i) a score using the GCC Loan Matrix scoring system, and (ii) a detailed credit analysis performed by GCC Management, including a Credit Worksheet that incorporates financial and ratio analysis on the
borrower. 
  
 It is important to note that every effort is made to keep this
information confidential between the Loan Committee, Management and the Member. 
  

	 	•	Loan Matrix. The Loan Matrix is an objective scoring system that assigns point values to a borrower based on actual performance in 11 different measurement categories. Based on the
total score, a rating of Excellent, Very Good, Good, Fair, and Poor is assigned to the borrower. Those borrowers with a Poor rating may only be underwritten if, in the opinion of management, there are sufficient reasons to overcome the rating
assigned. Borrowers with ratings of Fair, Good, Very Good, and Excellent may be underwritten, based upon credit approval by the appropriate lending authority. 

  

	 	•	Credit Analysis. A written credit analysis is normally prepared for exposures over $100,000.00. The written analysis discusses the background, amount, purpose, and collateral for
the financing. Included in the analysis will be a financial comparison that provides ratios and other relevant financial information. 

  
 The Loan Committee analysis of the request includes (in order of importance): 
  

	 	•	Ability to repay debts - financial statement strength 

	 	•	Operational experience 

	 	•	Site location(s) 

	 	•	Unified payment record 

	 	•	Collateral value 

	 	•	Minimum guidelines to sell loan to NCB after funding 

	 	•	Unified wholesale volume 

  
 NOTE: See attached procedures regarding loan process after approval by Loan Committee. 
  

			
	 	 	5

 c. Collateral 
  
 Collateral should always be looked at as a secondary source of repayment. GCC will not normally enter into any loan arrangement where liquidation of the collateral is the
main source of repayment. The value of the collateral should always be identified in the credit underwriting process. Subsequent to credit approval, the value of the collateral should be supported by appraisals, lien searches and other methods of
documentation of value. 
  
 d. Real Estate Appraisals 
  
 Appraisals should be obtained whenever real property is taken as primary collateral. The
only exceptions should be in cases where it is determined by GCC Management that the cost of the appraisal versus the potential equity is not justified or where there is reasonable certainty of the property value (recent purchase, comparable sales
data, etc.). The method of appraisal is to be determined by management, based on the exposure and importance of collateral support. In general, a “drive by” appraisal prepared by an appraisal company acceptable to management is all that
will be required. 
  
 e. Title Policies 
  
 Title insurance policies with GCC as beneficiary should be obtained whenever real property
is taken as primary collateral. An abbreviated title policy is acceptable in most cases, though management may require a full title. If, in management’s view, acceptable information is available that supports the title claim of the borrower,
the title policy requirement may be waived. 
  
 f. UCC-1 Lien Searches

  
 UCC-1 lien searches should be conducted on borrowers where store
equipment or other business assets are offered as collateral and the loan amount exceeds $100,000.00. Management may waive a search in situations where existing filings on the same borrower are present or when there is sufficient experience with the
borrower in management’s opinion to make a search unnecessary. 
  
 g. Real
Estate Site Surveys 
  
 Real estate site surveys performed by a company
acceptable to GCC should be obtained whenever financing is to be used for a new or a closed store location. The survey should indicate sales volumes that can be expected from the location so that projections of future cash flows can be determined.
If historical sales information or other data acceptable to management can be obtained to support the probable sales volume, then the requirement may be waived. 
  

h. Credit Reports 
  
 TRW and Dun & Bradstreet credit reports should be pulled on all borrowers where the total exposure will exceed $100,000.00. The only exception to this would be in cases where GCC has sufficient other credit
information available on the borrower or guarantor to make the report unnecessary. 
  

			
	 	 	6

 8. Interest Rates and Fees 
  
 Interest rates and fees charged by GCC will be set in a manner consistent with its guiding principles, and take into account
prevailing interest rates, management policies, administrative expenses and relative risk. Interest should be paid no less frequently than once a quarter, unless approved by the Loan Committee. 
  
 a. Interest Rates 
  

	 	•	Floating rates. Based on Prime Rate, plus a margin. The Prime Rate used is selected by GCC Management and may be changed from time to time. Adjustment will usually occur on a
calendar quarter basis, although other methods may be used when such a change is desirable. 

  

	 	•	Fixed rates. Based on a specific spread above a base rate acceptable to management, may be offered from time to time as market conditions dictate. 

  

	b.	Fees 

  
 Non-refundable commitment fees are due upon acceptance of a commitment. Commitment and other fees generally cover the costs of funding, underwriting and yield enhancement. Other fees may be charged to cover out of
pocket costs such as legal expenses, so long as this is disclosed to the borrower in advance. Late payment fees are not currently assessed by GCC, however, these may be charged where such fees have been incorporated into the loan documentation.

  
 9. Loan Loss Reserve Process 
  
 a. Evaluation 
  
 The company regularly evaluates the collectibility of its outstanding loans. The weekly requirement to pay Unified allows for continuous
monitoring of member payments and this information is used in determining loan quality. On a quarterly basis a thorough evaluation of identified loans is performed. 
  
 b. Loan loss reserves 
  
 As a normal course of business, the Company requires collateral on its loans. In circumstances where a loan becomes delinquent and the Company has insufficient collateral
for full recovery of the outstanding balance, a specific loan loss reserve is established. The Company also maintains a general loan loss reserve based on historical experience for expected loan losses. 
  

			
	 	 	7

	c.	Charge-offs 

  
 Whenever it is reasonably determined by management that the probability of collection of any part of a loan is not likely, a full or partial charge-off against the loan loss reserve shall be made in order to assure
that the value of GCC’s assets are accurately stated. A charge-off does not imply a lessening of efforts to collect the loan in full. All charge-offs must be approved by a GCC officer and such approval should be documented in the file.
Chargeoffs of $100,000 or less require signature of one GCC officer. Chargeoffs over $100,000 require signature of two GCC officers. 
  
 10. Loan Portfolio Maintenance 
  
 Under its current policies, GCC only makes specific credit extensions for a fixed period of time; there are no revolving credit arrangements. Therefore, the type of
information required to maintain is different from institutions whose exposure varies over time and who may make several advances over a commitment period. Management will review loans to ensure that required financial information is on file and
that documentation required to monitor insurance and collateral preservation is in order. 
  
 a. Financial Information 
  
 GCC will
collect the following financial information with respect to each borrower on one or more loans which, either individually or in the aggregate, have a principal balance greater than: 
  

	 	•	$250,000 – annual financial statements within 120 days of each fiscal year of such borrower 

  

	 	•	$500,000 but less than $1,000,000 – in addition to annual statements, semi-annual financial statements within 50 days of the end of the second fiscal quarter of such borrower

  

	 	•	$1,000,000 – in addition to audited annual financial statements, quarterly financial statements within 50 days of the end of each fiscal quarter. 

  
 b. Loan covenant compliance 
  
 Loans that require compliance with specific financial ratios will be monitored on an ongoing
basis. A list of such loans will be maintained with comments as to the status of each loan’s compliance. GCC Management may choose to remove or add loans for financial compliance based on changes in exposure or in the borrower’s financial
condition. 
  

			
	 	 	8

 c. Supply Agreement Compliance 
  
 Loans that include a supply agreement with Unified Western Grocers will be monitored on an ongoing basis to determine whether agreed-upon
purchase levels are being met. A list of such loans, indicating compliance, will also be maintained. 
  
 d. Insurance 
  
 All loans secured by
store equipment and fixtures require that the borrower maintain insurance in an equal to GCC’s loan balance and that GCC be named as an additional loss payee on the policy. GCC will maintain a list of these loans and copies of current
endorsements in order to document compliance with those conditions. 
  
 e.
Collateral Filings and Appraisals 
  
 Loans that have UCC-1 filings to provide
notice of GCC’s security interest in specific assets of the borrower will be monitored on an ongoing basis. UCC-1 filings will be renewed for any loans greater than five years in term. Appraisals on real property or other collateral may be
ordered at any time if GCC Management feels it is appropriate based on changes in exposure, market conditions, or the financial condition of the borrower. 
  
 -END- 
  

			
	 	 	9

 EXHIBIT 1.1 N-1 
  
 [Form of Secured Promissory Note] 
  

SECURED PROMISSORY NOTE 
  

			
	$                    	  	Los Angeles, California
as of                      

  
 FOR VALUE RECEIVED,
GROCERS CAPITAL COMPANY, a California corporation (“Maker”), hereby promises to pay to the order of                     
(“Lender”), the principal sum of                      Dollars
($            ) or such lesser amount as shall equal the aggregate outstanding principal balance of the Loans severally made by Lender pursuant to the Credit Agreement (as defined
below), and to pay interest on said sum, or such lesser amount, at the rates and on the dates provided in the Credit Agreement. 
  
 Maker shall make all payments hereunder for the account of Lender as provided in Section 2.11 of the Credit Agreement. 
  
 Maker hereby authorizes Lender to record on the schedule(s) annexed to this
Note the date and amount of each Loan and of each payment of principal made by Maker and agrees that all such notations shall constitute prima facie evidence of the matters noted. 
  
 This Note is one of the Notes referred to in the Second Amended and Restated Credit Agreement, dated as of June 9, 2004,
among Maker, on the one hand, and Lender, the other financial institutions a party thereto (collectively, the “Lenders”), and NATIONAL CONSUMER COOPERATIVE BANK, dba National Cooperative Bank, a federally chartered banking
corporation, as Agent for the Lenders, on the other hand (as such Credit Agreement may be from time to time hereafter amended, restated or supplemented, the “Credit Agreement”). This Note is subject to the terms of the Credit Agreement and
Maker’s obligations under this Note are secured by the Collateral as provided in the Collateral Documents. Nothing herein shall be deemed to limit any of the terms or provisions of the Credit Agreement or the Collateral Documents, and all of
Lender’s rights and remedies hereunder and thereunder are cumulative. Capitalized terms used herein have the meanings assigned to those terms in the Credit Agreement, unless otherwise defined herein. 
  
 The transfer, sale or assignment of any rights under or interest in this Note
is subject to certain restrictions contained in the Credit Agreement, including Section 11.8 thereof. 
  
 No waiver or modification of any of the terms or provisions of this Note shall be valid or binding unless set forth in a writing in compliance with
Section 11.2 of the Credit Agreement, and then only to the extent specifically set forth. 
  

 -1- 

 Maker hereby waives notice of presentment, demand, protest or notice of any other kind. This Note shall
be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. 
  

			
	GROCERS CAPITAL COMPANY, a California corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 -2- 

 SCHEDULE TO SECURED PROMISSORY NOTE 
  

											
	 Date Made,
 Continued,
 Converted or
 Paid

	  	Type

	  	Amount of
Loan

	  	Amount of
Principal
Continued,
Converted or
Paid

	  	Unpaid
Principal
Balance of
Note

	  	Name of
Person Making
Notations

  

 -3- 

 EXHIBIT 1.1 N-2 
  
 NOTICE OF BORROWING 
  

			
	 To:
	 	 National Consumer Cooperative Bank, as Agent

	 	 	 1725 Eye Street, NW, Suite 600

	 	 	 Washington, D.C. 20006

	 	 	 Attn: Loan Servicing

  
 This Notice of
Borrowing is given pursuant to Section 2.2(b) of that certain Second Amended and Restated Credit Agreement, dated as of June 9, 2004 (the “Agreement”), among GROCERS CAPITAL COMPANY, a California corporation (“Borrower”), on the
one hand, and the financial institutions which are signatories thereto from time to time (“Lenders”), and NATIONAL CONSUMER COOPERATIVE BANK, dba National Cooperative Bank, a federally chartered banking corporation with principal offices
located in Washington, D.C., as agent for Lenders, on the other. All initially capitalized terms used but not defined in this Notice of Borrowing shall have the meanings assigned to such terms in the Agreement. 
  
 We hereby request a Borrowing as follows: 
  

			
	 $                
	  	 Prime Rate Loan

		
	 $                
	  	 Eurodollar Rate Loan with an Interest Period of [1 or 3] month(s) and expiring on
                    ,         

		
	 $                
	  	 Total

  
 It is requested that
the extension of credit requested hereby be made available on                 ,             .
The undersigned certifies that, as of the date of the requested Borrowing: 
  
 (a) the representations and warranties of Borrower contained in Article V of the Agreement are true and correct in all material respects on and as of such date, except to the extent such representations and warranties
expressly relate solely to an earlier date; 
  
 (b) no Material Adverse Effect has occurred since the date of the most recent Borrowing; 
  
 (c) no Default has occurred and is continuing under the Agreement or will result from the proposed Borrowing; 
  
 (d) no “Event of Default” under (and as defined
in) the Unified Loan Agreement has occurred and is continuing; and 
  

 -1- 

 (e) Borrower has satisfied all conditions under the Agreement to be performed or
satisfied by it on or before such date. 
  
  

					
	 Dated:
                        ,         
	 	 	 	 
	 	 	 GROCERS CAPITAL COMPANY,

	 	 	 a California corporation

			
	 	 	 By:
	 	  

			
	 	 	 Name:
	 	  

			
	 	 	 Title:
	 	  

  

 -2- 

 EXHIBIT 1.1 N-3 
  
 NOTICE OF CONVERSION OR CONTINUATION 
  

			
	To:	 	National Consumer Cooperative Bank, as Agent
	 	 	1725 Eye Street, NW, Suite 600
	 	 	Washington, D.C. 20006
	 	 	Attn: Loan Servicing

  
 This Notice of
Conversion or Continuation is given pursuant to Section 2.3(b) of that certain Second Amended and Restated Credit Agreement, dated as of June 9, 2004 (the “Agreement”), among GROCERS CAPITAL COMPANY, a California corporation
(“Borrower”), on the one hand, and the financial institutions which are signatories thereto (“Lenders”), and NATIONAL CONSUMER COOPERATIVE BANK, dba National Cooperative Bank, a federally chartered banking corporation with
principal offices located in Washington D.C., as agent for Lenders, on the other. All initially capitalized terms used but not defined in this Notice of Conversion or Continuation shall have the meanings assigned to such terms in the Agreement.

  
 We hereby request that you: 
  
 (a) Convert
$             in principal amount of the presently outstanding Loans (integral multiples of $100,000 with a minimum amount of $1,000,000 only) on
            ,             , from a Prime Rate Loan to a Eurodollar Rate Loan with an Interest Period of
             [1 or 3] month(s) and expiring on                     ,
            ; 
  
 (b) Convert $             in principal amount of the presently
outstanding Loans (integral multiples of $100,000 with a minimum amount of $1,000,000 only) on             ,
             from a Eurodollar Rate Loan with an Interest Period expiring on that day, to a Prime Rate Loan; 
  
 (c) Continue as a Eurodollar Rate Loan
$             in principal amount of that presently outstanding Eurodollar Rate Loan with an Interest Period expiring on
            ,             , commencing on such expiration day, with a new Interest Period of
             [1 or 3] month(s) and expiring on             ,
            ; 
  
 The undersigned certifies that, as of the date hereof, the representations and warranties contained in Article V of the Agreement and in the other Loan Documents are true and correct and no Default is continuing.

  
 Dated:                ,         
  

			
	GROCERS CAPITAL COMPANY,
	a California corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 -1- 

 SCHEDULE 1.1 P-1 
  
 PERMITTED LIENS 
  
 The security and other interests described in each of the following UCC Financing Statements filed against GCC with the California Secretary of State’s Office:

  
 NONE. 
  

 -1- 

 SCHEDULE 5.1(k) 
  
 SUBSIDIARIES 
  
 None. 
  

 -1- 

 SCHEDULE 6.4(a)(iv) 
  
 EXISTING INDEBTEDNESS 
  

Indebtedness pursuant to that certain Assignment and Assumption Agreement and General Release, dated as of December 7, 2001 among GCC, Unified, URI and NCB.

  

 -1- 

 SCHEDULE 6.4(f)(iv) 
  
 INVESTMENTS AND SUBORDINATED INDEBTEDNESS 
  

						
	Current Investments:	  	 	  	Amount

	 National Cooperative Bank
	  	 	  	$	2,833,000
			
	Subordinated Debt:	  	Loan Number

	  	Balance

	 Andronico’s Market, Inc.
	  	B0029003	  	$	500,000

  

 -1-

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