Document:

Form of Long-Term Restricted Stock Award Agreement

 Exhibit 10.1 
 COLUMBIA BANKING SYSTEM, INC. 
 LONG-TERM RESTRICTED
STOCK AGREEMENT 
 THIS LONG-TERM RESTRICTED STOCK AGREEMENT (“Agreement”) is entered into by and between
Columbia Banking System, Inc. (“Bank”) and «Name» «Last_Name» (“Grantee”). 
  

	1.	Basis Terms of Award 

  

			
	Number of Shares of Restricted Stock Subject to the Award:	  	«Number_of_Shares»
		
	Fair Market Value on Date of Award of Shares of Restricted Stock	  	$«FMV_on_Date_of_Award».00
		
	Amount Required to be Paid for Shares of Restricted Stock:	  	$0.00
		
	Date of Award:	  	«Date_of_Award»

  

	2.	Bank hereby awards to Grantee the number of shares of Restricted Stock described above (“Award”). 

  

	3.	The Award is made under the Amended and Restated Stock Option and Equity Compensation plan of Columbia Banking System, Inc. (the “Plan”), a copy of which has
been provided to Grantee. The terms and conditions of the Plan are hereby incorporated into this Agreement by this reference. In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the
former shall govern. Capitalized terms used in this Agreement that are not defined herein shall have the meaning given to such terms in the Plan. 

  

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	4.	Vesting Schedule 

 Except as
otherwise provided in the Plan, shares of Restricted Stock subject to this Award shall be forfeited to Bank for no consideration immediately after Grantee fails to maintain Continuous Status as an Employee, to the extent such shares are not then
Vested in accordance with the following vesting scheduled: 
  

			
	 If Grantee maintains Continuous Status as
an
 Employee on the following anniversary date
 after the Date of Award
	 	 Then the following percent of the number of

shares of Restricted Stock subject to the
 Award shall Vest *

	1st Anniversary	 	0%
	2nd Anniversary	 	20%
	3 rd Anniversary	 	Additional 30% for a total of 50%
	4th Anniversary	 	50% for a total of 100%

  

	*	Rounded up in each case to the nearest whole number. But in no event shall Grantee have the right to acquire hereunder, over the entire vesting period, more than the
total number of shares of Restricted Stock subject to the Award, as described in paragraph 1. 

  

	5.	Grantee shall have all of the rights of a shareholder with respect to shares of Restricted Stock subject to this Award. 

  

	6.	Shares of Restricted Stock subject to this Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner, other than by will or by
the laws of descent or distribution, prior to the time such shares Vest. In addition, the Shares of Restricted Stock subject to this Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner, at any time
earlier than permitted under the following schedule (except as necessary to reflect a merger or acquisition of the Bank): 

  

	 	(a)	25% of the Shares on or after such time as the Bank has repaid at least 25% of the aggregate investment in the Bank by the U.S. Treasury under its Capital Purchase
Program (the “Treasury Investment”). 

  

	 	(b)	An additional 25% of the Shares (for an aggregate total of 50% of the Shares) on or after such time as the Bank has repaid at least 50% of the Treasury Investment.

  

	 	(c)	An additional 25% of the Shares (for an aggregate total of 75% of the Shares) on or after such time as the Bank has repaid at least 75% of the Treasury Investment.

  

	 	(d)	The remainder of the Shares on or after such time as the Bank has repaid 100% of the Treasury Investment. 

 Notwithstanding the foregoing, in the case of Shares of Restricted Stock subject to this Award for which the Grantee does not make an
election under Section 83(b) of the Code in accordance with Section 9(b), at any time beginning with the date upon which the Shares Vest and ending on December 31 of the calendar year including that date, a portion of the Shares may
be transferred as may reasonably be required to pay the federal, state, local, or foreign taxes that are anticipated to apply to the income recognized due to the vesting, and any Shares transferred for this purpose shall not count toward the
percentages in the schedule above. 
  

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	7.	Shares of Restricted Stock subject to this Award shall not be issued, unless the issuance and delivery of such shares shall comply with all relevant provisions of law,
including, without limitation, all securities laws, rules and regulations, and the requirements of any stock exchange upon which the Restricted Stock may then be listed. Issuance of shares of Restricted Stock is further subject to the approval of
counsel for Bank with respect to such compliance. 

  

	8.	Bank, in its sole discretion, may take any actions reasonably believed by it to be required to comply with any local, state, or federal tax laws relating to the
reporting or withholding of taxes attributable to the issuance of Restricted Stock subject to this Award, including, but not limited to, (i) withholding, or causing to be withheld, from any form of compensation or other amount due
Grantee any amount required to be withheld under applicable tax laws, or (ii) requiring Grantee to make arrangements satisfactory to Bank (including, without limitation, paying amounts) to satisfy any tax obligations, as a condition to
recognizing any rights of Grantee under the Award. 

  

	9.	Grantee acknowledges that he understands the following: 

  

	 	a.	Under Section 83(a) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), the excess of the fair market value on the date of Vesting of the
shares of Restricted Stock over the fair market value on the Date of Award of such shares will be taxed at the time of Vesting as ordinary income and subject to payroll and withholding taxes and to tax reporting, as applicable.

  

	 	b.	Grantee may elect under Section 83(b) of the Code to be taxed at ordinary income rates based on the fair market value of the shares of Restricted Stock at the time
such shares are awarded, rather than at the time and as the shares of Restricted Stock Vest. Such election (an “83(b) Election”) must be filed with the Internal Revenue Service within thirty (30) days from the Date of Award. Grantee
(a) will not be entitled to a deduction for any ordinary income previously recognized as a result of the 83(b) Election if shares of Restricted Stock are subsequently forfeited to the Company, and (b) the 83(b) Election may
cause Grantee to recognize more compensation income than he would have otherwise recognized if the value of the shares of Restricted Stock subsequently declines. The form for making an 83(b) Election is attached hereto as Exhibit A. FAILURE TO FILE
SUCH AN ELECTION WITHIN THE REQUIRED THIRTY (30) DAY PERIOD AND AS OTHERWISE DESCRIBED IN THE FORM MAY RESULT IN THE RECOGNITION OF ORDINARY INCOME BY GRANTEE AS SHARES OF RESTRICTED STOCK VEST. 

  

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	 	c.	The foregoing is only a summary of the federal income tax laws that apply to the shares of Restricted Stock and does not purport to be complete. GRANTEE IS DIRECTED TO
SEEK INDEPENDENT ADVICE REGARDING THE APPLICABLE PROVISIONS OF THE CODE, THE INCOME TAX LAWS OF ANY MUNICIPALITY, STATE OR FOREIGN COUNTRY IN WHICH HE MAY RESIDE, AND THE TAX CONSEQUENCES OF YOUR DEATH. 

  

	10.	Grantee agrees to deliver a Stock Power and Assignment Separate from Certificate in the form attached as Exhibit B (with the transferee, certificate number, date and
number of shares left blank), executed by Grantee and his spouse, if any, along with any certificate(s) evidencing shares of Restricted Stock issued to him, to the Secretary of the Company or its designee (“Escrow Holder”). GRANTEE HEREBY
APPOINTS THE ESCROW HOLDER TO HOLD SUCH STOCK POWER AND ANY SUCH CERTIFICATE(S) IN ESCROW AND TO TAKE ALL SUCH ACTIONS, AND TO EFFECTUATE ALL SUCH TRANSFERS AND/OR RELEASES OF SUCH SHARES, AS ARE REQUIRED TO EFFECTUATE THE TERMS OF THIS AWARD. The
foregoing appointment is a power coupled with an interest and may not be revoked by Grantee. Grantee and the Company agree that any Escrow Holder will not be liable to any party to any person for any actions or omissions, unless Escrow Holder is
grossly negligent relative thereto. Escrow Holder may rely on any letter, notice or other document executed by any signature purported to be genuine and may rely on advice of counsel and obey any order of any court with respect to the transactions
by this Agreement. Shares of Restricted Stock subject to this Award shall be released to Grantee from escrow as they Vest. 

  

	11.	Grantee agrees that shares of Restricted Stock subject to this Award may be forfeited as described herein and that the 

 certificate(s) representing such shares may bear a legend in substantially the following form: 
 “The securities represented by this certificate are subject to certain transfer and forfeiture restrictions and may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner. A copy of the agreement and plan may be obtained at the principal office of the issuer. Such transfer and forfeiture restrictions are binding on transferees of these
shares.” 
  

	12.	Miscellaneous. 

  

	 	a.	Each party agrees to cooperate fully with the other party and to execute such further instruments, documents and agreements, and to give such further written
assurances, as may be reasonably requested by the other party to better evidence and reflect the transactions described herein and contemplated hereby, and to carry into effect the intents and purposes of this Agreement. 

  

	 	b.	All pronouns shall be deemed to include the masculine, feminine, neuter, singular or plural forms thereof, as the context may require. All references to
“paragraph” shall be deemed to refer to paragraphs of this Agreement, unless otherwise specifically stated. 

  

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	 	c.	 All notices and other writings of any kind that a party to this Agreement may or is required to give hereunder to any other party hereto shall be in
writing and may be delivered by personal service or overnight courier, facsimile, or registered or certified mail, return receipt requested, deposited in the United States mail with postage thereon fully prepaid, addressed (i) if to Bank, to
its home office, marked to the attention of the corporate secretary of Bank; or (ii) if to Grantee, to his address set forth on the signature page hereof. Any notice or other writings so delivered shall be deemed given (i) if by mail, on
the second (2nd) business day after mailing, and
(ii) if by other means, on the date of actual receipt by the party to whom it is addressed. Any party hereto may from time to time by notice in writing served upon the other as provided herein, designate a different mailing address or a
different person to which such notices or demands are thereafter to be addressed or delivered. 

  

	 	d.	Attorneys’ Fees. In any action at law or in equity to enforce any of the provisions or rights under this Agreement, the unsuccessful party to such
litigation, as determined by the court in a final judgment or decree, shall pay the successful party all costs, expenses and reasonable attorneys’ fees incurred by the successful party (including, without limitation, costs, expenses and fees on
any appeal). 

  

	 	e.	Waiver. No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or
be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement. 

  

	 	f.	Choice of Law. It is the intention of the parties that the internal laws of the State of Washington (irrespective of any choice of law principles) shall govern
the validity of this Agreement, the construction of its terms and the interpretation of the rights and duties of the parties. 

  

	 	g.	Successors in Interest. This Agreement and all of its terms, conditions and covenants are intended to be fully effective and binding, to the extent permitted by
law, on the heirs, executors, administrators, successors and permitted assigns of the parties hereto. 

 IN
WITNESS WHEREOF, the parties have executed this Agreement on the day and year first indicated above. 
  

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	BANK	 	 COLUMBIA BANKING SYSTEM, INC.,
 a Washington corporation

			
		 	By	 	  

		 	Print name:	 	Melanie J. Dressel
		 	Title:	 	President & CEO
			
	GRANTEE	 	Name:	 	«Name» «Last_Name»
		 	Address:	 	«Address_1»
		 		 	«CitySt_Zip»
			
		 	By:	 	  

		 	Social Security No. «Social_Security_»

 ACKNOWLEDGEMENT 
 GRANTEE HEREBY ACKNOWLEDGES THAT HE HAS RECEIVED A COPY OF THE PLAN. 
  

	
	  

	Print Name: «Name» «Last_Name»

  

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 CONSENT OF SPOUSE AND CERTIFICATION OF MARITAL STATUS 
 CONSENT OF SPOUSE 
 This Consent of Spouse relates to an award by Columbia Banking System, Inc. of shares of Restricted Stock to «Name» «Last_Name» under the Amended and Restated Stock Option and Equity Compensation Plan of Columbia
Banking System, Inc. and a related Restricted Stock Agreement. The foregoing plan and agreement are sometimes referred to herein as the “Documents.” By his/her signature below, the undersigned acknowledges that he/she: 
  

	 	1	is the spouse of the grantee of such shares; 

  

	 	2.	has read the Documents and is familiar with the terms and conditions of the same; and 

  

	 	3.	agrees to be bound by all the terms and conditions of the Documents. 

 Dated:                      
  

			
	  

		
	Print Spouse Name:	 	  

 CERTIFICATION OF MARITAL STATUS 
 I hereby certify that I am not married. 
  

			
	  

		
	Print Name:	 	  

  

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 EXHIBIT A 
 ELECTION UNDER SECTION 83(b) 
 OF THE INTERNAL REVENUE CODE OF 1986 
 The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in
taxpayer’s gross income for the current taxable year the amount of any compensation taxable to taxpayer in connection with taxpayer’s receipt of the property described below: 
 1. The name, address, taxpayer identification number and taxable year of the undersigned are as follows: 
 NAME OF TAXPAYER: «Name» «Last_Name» 
 NAME OF SPOUSE:
                                         
                                         
                                         
                                         
     
 ADDRESS:
                                         
                                         
                                         
                                         
                     
 SOCIAL SECURITY NO. OF TAXPAYER: «Social_Security_» 
 SOCIAL SECURITY NO. OF SPOUSE:
                                         
                                         
                                         
               
 2. The property with respect to which
the election is made is described as follows: «Number_of_Shares» shares of the common stock of Columbia Banking System, Inc., a Washington corporation (the “Company”). 
 3. The date on which the property was transferred is: «Date_of_Award» 
 4. The property is subject to the following restrictions: 
 The property will be forfeited to the Company taxpayer’s services with the Company are terminated. The foregoing restrictions lapse in a series of installments over a 4-year period ending on
February 25, 2013. 
 5. The aggregate fair market value at the time of transfer of such property (determined without
regard to any restriction other than a restriction that by its terms will never lapse) is: $«FMV_on_Date_of_Award».00 
 6. The amount (if any) paid for such property is: $0.00             
 The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s receipt of the above-described property. The undersigned
is the person performing the services in connection with the transfer of said property. 
  

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 The undersigned understands that the foregoing election may not be revoked except with
the consent of the Commissioner of Internal Revenue. 
 Dated:
                     
  

							
	Taxpayer	  		  	  

		  		  	Print Name: «Name» «Last_Name»
			
	Spouse	  		  	  

		  		  	Print Name:	  	  

 IF YOU DECIDE TO MAKE AN 83(b) ELECTION, YOU MUST FILE THIS FORM WITHIN THIRTY (30) DAYS OF
THE DATE OF AWARD AND AS OTHERWISE DESCRIBED BELOW. 
 DISTRIBUTION OF COPIES 
 1. The original is to be filed with the Internal Revenue Service Center where the taxpayer’s income tax return will be filed. Filing
must be made by no later than thirty (30) days after the date the property was transferred. 
 2. Attach one copy to
the taxpayer’s income tax return for the taxable year in which the property was transferred. 
 3. Provide a copy to
the Company. 
  

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 EXHIBIT B 
 STOCK POWER AND ASSIGNMENT 
 SEPARATE FROM CERTIFICATE 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto Columbia Banking System, Inc., «Number_of_Shares»
shares of the common stock of Columbia Banking System, Inc., a Washington corporation, standing in the undersigned’s name on the books of said corporation represented by Certificate(s) No.
                     delivered herewith, and does hereby irrevocably constitute the Secretary of said corporation as attorney-in-fact, with
full power of substitution, to transfer said stock on the books of said corporation. 
 Dated:
                     
  

							
	Taxpayer	  		  	  

		  		  	Print Name: «Name» «Last_Name»
			
	Spouse	  		  	  

		  		  	Print Name:	  	  

 Please see paragraph 10 of the Restricted Stock Grant Agreement for information on completing this
form. 
  

 1Credit Agreement

 Exhibit 10.1 
 CREDIT AGREEMENT 
 This Credit Agreement
(“Agreement”) dated as of December 22, 2009, is between BANK OF AMERICA, N.A., a national banking association (the “Bank”), and NAUTILUS, INC., a Washington corporation (the “Borrower”). 
 1. THE LETTER OF CREDIT FACILITY 
 1.1. Letters of Credit. 
 (a) At the request of the Borrower, between the date of this Agreement
and December 31, 2010 (the “Expiration Date”), the Bank will issue standby letters of credit with a maximum maturity not to extend more than 365 days beyond the Expiration Date. The standby letters of credit may include a provision
providing that the maturity date will be automatically extended each year for an additional year unless the Bank gives written notice to the contrary. 
 (b) The following letters of credit are outstanding from the Bank for the account of the Borrower: 
  

				
	 Letter of Credit Number
	  	Amount
(as of
12/16/09)
		
	 3091005
	  	$	200,000.00
		
	 3098014
	  	 	CHF 130,000.00
		
	 3069877
	  	$	519,522.51
		
	 3069876
	  	$	1,700,000.00
		
	 3098150
	  	$	1,500,000.00
		
	 3097427
	  	 	EUR 250,000.00

 As of the date of this Agreement, these letters of credit shall be deemed to be
outstanding under this Agreement, and shall be subject to all the terms and conditions stated in this Agreement. 
 1.2.
Amount. The amount of the letters of credit outstanding at any one time (including the drawn and unreimbursed amounts of the letters of credit), hereafter referred to as the “Letter of Credit Exposure,” may not exceed $6,000,000.
This Letter of Credit Facility is subject to a collateral margin provision as follows: The Borrower must maintain cash collateral pursuant to Article 3 below equal to at least 105% of the sum of Letter of Credit Exposure plus the Ancillary Credit
Exposure, as defined below. If the cash collateral is at any time less than 105% of the Letter of Credit Exposure plus the Ancillary Credit Exposure, the Borrower promptly upon demand by the Bank must deposit into the collateral account described in
Article 3 below additional cash to at least meet the 105% requirement, and failure to do so shall be an event of default under this Agreement. Further, if issuing a new letter of credit will cause the cash collateral to be less than 105% of the sum
of Letter of Credit Exposure plus the Ancillary Credit Exposure, the Bank may refuse to issue such letter of credit unless the Borrower deposits additional cash in the amount required to cause the cash collateral to at least meet the 105%
requirement (after giving effect to such new letter of credit) prior to the date such letter of credit is to be issued. “Ancillary Credit Exposure” means the purchase card credit limit of $125,000, plus automated clearing house exposure of
$150,000. 
 1.3. Other Terms. The Borrower agrees: 
 (a) If there is a default continuing under this Agreement, upon the Bank’s request therefor, to immediately prepay and
make the Bank whole for any outstanding letters of credit,

 
which prepayment may be made by permitting the Bank to debit the cash collateral account referred to in Article 3. 
 (b) The issuance of any letter of credit and any amendment to a letter of credit is subject to laws, regulations or orders
governing the Bank must be in form and content reasonably satisfactory to the Bank and in favor of a beneficiary reasonably acceptable to the Bank. 
 (c) To sign the Bank’s form Application and Agreement for Standby Letter of Credit. 
 (d) To pay any issuance and/or other fees that the Bank notifies the Borrower will be charged for issuing and processing letters of credit for the Borrower. 
 (e) To pay the Bank a non-refundable fee equal to 2.00% per annum of the outstanding undrawn amount of each standby
letter of credit, payable quarterly in arrears, calculated on the basis of the face amount outstanding on the day the fee is calculated. 
 2. FEES AND EXPENSES 
 2.1. Waiver Fee. If the Bank, at its discretion, agrees to waive or amend any
terms of this Agreement, the Borrower will, at the Bank’s option, pay the Bank a fee for each waiver or amendment in an amount advised by the Bank at the time the Borrower requests the waiver or amendment. Nothing in this paragraph shall imply
that the Bank is obligated to agree to any waiver or amendment requested by the Borrower. The Bank may impose additional requirements as a condition to any waiver or amendment. 
 2.2. Expenses. The Borrower agrees to immediately repay the Bank for reasonable out-of-pocket expenses that include, but are not
limited to, filing, recording and search fees, and documentation fees. 
 2.3. Reimbursement Costs. The Borrower agrees
to reimburse the Bank for any expenses it incurs in the preparation of this Agreement and any agreement or instrument required by this Agreement. Expenses include, but are not limited to, reasonable out-of-pocket attorneys’ fees. 
 3. COLLATERAL 
 The Borrower’s
obligations to the Bank under this Agreement will be secured by one or more Bank of America deposit accounts (together, the “Cash Collateral Account”) in an aggregate amount not less than 105% of the sum of the Letter of Credit Exposure
plus the Ancillary Credit Exposure. The collateral is further defined in a security agreement executed by the Borrower. In addition, all personal property collateral securing this Agreement shall also secure all other present and future obligations
of the Borrower to the Bank, including but not limited to all obligations of the Borrower to the Bank of every kind, whether direct or contingent, and whether arising out of loans, deposit services, treasury management services, credit card
services, derivative transactions, and all other services and products provided to the Borrower by the Bank or its affiliates, and all fees, costs, expenses, and indemnifications due to the Bank. All personal property collateral securing any other
present or future obligations of the Borrower to the Bank shall also secure this Agreement. 
 4. DISBURSEMENTS, PAYMENTS AND COSTS

 4.1. Telephone and Telefax Authorization. 
 (a) The Bank may honor telephone or telefax requests for the issuance of letters of 
 credit given, or purported to be given, by any one of the Authorized Individuals. 
 (b) The Borrower will indemnify and hold the Bank harmless from all liability, loss, and costs in connection with any act
resulting from telephone or telefax instructions the Bank reasonably believes are made by any Authorized Individual. This paragraph will survive this Agreement’s termination, and will benefit the Bank and its officers, employees, and agents.

  

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 4.2. Banking Days. Unless otherwise provided in this Agreement, a banking day is a
day other than a Saturday, Sunday or other day on which commercial banks are authorized to close, or are in fact closed, in the state where the Bank’s lending office is located. All payments and disbursements that would be due on a day that is
not a banking day will be due on the next banking day. All payments received on a day that is not a banking day will be applied to the Letter of Credit Facility on the next banking day. 
 4.3. Interest Calculation. Except as otherwise stated in this Agreement, all interest and fees, if any, will be computed on the basis
of a 365-day year and the actual number of days elapsed. Installments of principal that are not paid when due under this Agreement shall continue to bear interest until paid. 
 4.4. Default Rate. Upon the occurrence of any default under this Agreement, all amounts outstanding under this Agreement, including
any interest, fees, or costs that are not paid when due, will at the option of the Bank bear interest at a variable rate equal to the Prime Rate plus 2.0 percentage points per annum. This may result in compounding of interest. This will not
constitute a waiver of any default. “Prime Rate” means the rate of interest publicly announced from time to time by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the Bank’s costs and
desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans. The Bank may price loans to its customers at, above, or below the Prime Rate. Any change in the Prime Rate shall take effect at
the opening of business on the day specified in the public announcement of a change in the Bank’s Prime Rate. 
 5. CONDITIONS

 The Bank must receive the following items, in form and content reasonably acceptable to the Bank, or waive receipt thereof, before it is
required to extend any credit to the Borrower under this Agreement: 
 5.1. Conditions to First Extension of Credit.
Before the first extension of credit: 
 (a) Authorizations. Evidence that the execution, delivery and
performance by the Borrower of this Agreement and any instrument or agreement required under this Agreement have been duly authorized. 
 (b) Governing Documents. If required by the Bank, a copy of the Borrower’s organizational documents. 
 (c) Security Agreement. Signed security agreement covering the collateral that the Bank requires. 
 (d) Perfection and Evidence of Priority. Evidence that the security interests and liens in favor of the Bank in the
Cash Collateral Account are valid, enforceable (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by equitable
principles relating to enforceability), and prior to all others’ rights and interests. 
 (e) Payment of
Fees. Payment of all accrued and unpaid invoiced expenses incurred by the Bank as required by Section 2.2 or 2.3. 
 5.2. Conditions to Subsequent Advances. Before each subsequent extension of credit: 
 (a) Representations and Warranties. The representations and warranties made by the Borrower in this Agreement and any other loan documents and in any certificate, document, or financial statement furnished at any time shall
continue to be true and correct in all material respects, except to the extent that such representations and warranties expressly relate to an earlier date. 
 (b) No Material Adverse Change. Subsequent to the date of the Borrower’s most recent annual financial statements
delivered to the Bank, the Borrower has not incurred any liabilities or obligations, direct or contingent that are prohibited by this Agreement, and there has not been any material adverse change in the financial condition of the Borrower.

  

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 (c) Compliance. No event of default or other event that, upon notice
or lapse of time or both would constitute an event of default under this Agreement, shall have occurred and be continuing, or shall exist after giving effect to the advance of credit to be made. 
 6. REPRESENTATIONS AND WARRANTIES 
 When the
Borrower signs this Agreement, the Borrower makes the following representations and warranties. Each request for issuance of a letter of credit constitutes a renewal of these representations and warranties as of the date of the request: 

6.1. Formation. The Borrower is duly formed and existing under the laws of the state where organized. 
 6.2. Authorization. This Agreement, and any instrument or agreement required hereunder, are within the Borrower’s powers, have
been duly authorized, and do not conflict with any of its organizational papers. 
 6.3. Enforceable Agreement. This
Agreement is a legal, valid and binding agreement of the Borrower, enforceable (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability) against the Borrower in accordance with its terms, and any instrument or agreement required hereunder, when executed and delivered, will be similarly legal, valid, binding and
enforceable (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to
enforceability). 
 6.4. Good Standing. In each state in which the Borrower does business, it is properly licensed, in
good standing, and, where required, in compliance with fictitious name statutes, except to the extent failure to maintain such licensing, good standing or compliance is not reasonably likely to result in a material adverse effect on the
Borrower’s financial condition. 
 6.5. No Conflicts. This Agreement does not conflict with any law, agreement, or
obligation by which the Borrower is bound, except to the extent any such conflict is not reasonably likely to result in a material adverse effect on the Borrower’s financial condition. 
 6.6. Financial Information. All financial and other information that has been or will be supplied to the Bank is sufficiently
complete to fairly present in all material respects the Borrower’s financial condition, including all material contingent liabilities. Since the date of the most recent financial statement provided to the Bank, there has been no material
adverse change in the business condition (financial or otherwise), operations, properties or prospects of the Borrower. 
 6.7.
Lawsuits. As of the date hereof, there is no lawsuit, tax claim or other dispute pending or threatened against the Borrower that, if lost, would materially impair the Borrower’s financial condition or ability to repay the Letter of
Credit Facility, except as have been disclosed in writing to the Bank. 
 6.8. Collateral. The Cash Collateral Account is
owned by the Borrower free of any title defects or any liens or interests of others, except those that have been approved by the Bank in writing. 
 6.9. Permits, Franchises. The Borrower possesses all permits, memberships, franchises, contracts and licenses required and all trademark rights, trade name rights, patent rights and fictitious name
rights necessary to enable it to conduct the business in which it is now engaged, except to the extent failure to possess all such permits is not reasonably likely to result in a material adverse effect. 
 6.10. Other Obligations. The Borrower is not in default on any obligation for borrowed money, any purchase money obligation or any
other material lease, commitment, contract, instrument or obligation, except as have been disclosed in writing to the Bank, except to the extent failure to possess all such permits is not reasonably likely to result in a material adverse effect.

 6.11. Tax Matters. As of the date hereof, the Borrower has no knowledge of any pending assessments or adjustments of
its income tax for any year and all material taxes due have been paid, except as have been disclosed in writing to the Bank. 
  

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 6.12. No Event of Default. There is no event that is, or with notice
or lapse of time or both would be, a default under this Agreement. 
 6.13. Insurance. The Borrower has
obtained, and maintained in effect, the insurance coverage required in Section 7.6 of this Agreement. 
 6.14. Employee Benefit Plan. The Borrower is in compliance in all material respects with the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the regulations and published
interpretations thereunder. The Borrower has not engaged in any acts or omissions that would make the Borrower materially liable to any Plan, to any of its participants, or to the Internal Revenue Service, under ERISA. Capitalized terms in this
paragraph shall have the meanings defined within ERISA. 
 6.15. UCC Information. The Borrower was
originally formed under the laws of the State of Washington, and remains a Washington corporation. The Borrower’s “organizational identification number” for purposes of the UCC is 601414569. The Borrower’s place of business (or,
if the Borrower has more than one place of business, its chief executive office) is located at the address listed under the Borrower’s signature on this Agreement. 
 7. COVENANTS 
 The Borrower agrees, until no letters of credit remain outstanding and all
Letter of Credit Exposure, Ancillary Credit Exposure and other amounts owing to the Bank have been repaid in full: 
 7.1.
Use of Proceeds. To use the letters of credit issued under the Letter of Credit Facility to support insurance needs, to support value-added tax obligations overseas, to support the Borrower’s shipping arrangement with United Parcel
Service, to support credit card processing liabilities, to support a risk sharing arrangement with its consumer finance provider, and for other business purposes. 
 7.2. Financial Information. To provide as soon as required to be filed, all 10Ks, 10Qs, 8Ks, annual reports, quarterly reports, and other filings or submittals made to shareholders or to the
Securities and Exchange Commission, and such additional information as requested by the Bank from time to time. Posting of such filings on the Securities and Exchange Commission website shall constitute delivery of such filings in compliance with
this Section 7.2. If at any time the Borrower is no longer a publicly held company, the Borrower shall provide to the Bank the following financial information and statements in form and content acceptable to the Bank, and such additional
information as requested by the Bank from time to time: 
 (a) Within 90 days of the fiscal year end, the annual
financial statements of the Borrower, certified and dated by an authorized financial officer. These financial statements must be audited (with an opinion satisfactory to the Bank) by a Certified Public Accountant reasonably acceptable to the Bank.
The statements shall be prepared on a consolidated basis. 
 (b) Within 45 days of the period’s end
(including the last period in each fiscal year), quarterly financial statements of the Borrower, certified and dated by an authorized financial officer. These financial statements may be company-prepared. The statements shall be prepared on a
consolidated basis. 
 7.3. Bank as Principal Depository. To maintain the Bank or one of its affiliates as its principal
depository bank, including for the maintenance of business, cash management, operating and administrative deposit accounts. 
 7.4. Negative Covenants. Not to, without the Bank’s written consent: 
 (a) Liquidate or
dissolve all or substantially all of the Borrower’s business. 
 (b) Voluntarily suspend its business.

 7.5. Notices to Bank. To promptly notify the Bank in writing of: 
 (a) Any lawsuit over $250,000 against the Borrower. 
  

 5 

 (b) Any substantial dispute between any governmental authority and the
Borrower. 
 (c) Any event of default under this Agreement, or any event that, with notice or lapse of time or
both, would constitute an event of default. 
 (d) Any material adverse change in the Borrower’s business
condition (financial or otherwise), operations, properties or prospects, or ability to repay the Letter of Credit Facility. 
 (e) Any change in the Borrower’s legal name, legal structure, state of registration, or chief executive office if the Borrower has more than one place of business. 
 7.6. Insurance. To maintain insurance that is usual for the Borrower’s business. 
 7.7. Compliance with Laws. To comply with the laws (including any fictitious or trade name statute), regulations, and orders of any
government body with authority over the Borrower’s business. 
 7.8. ERISA Plans. Promptly during each year, to pay
and cause any subsidiaries to pay contributions adequate to meet at least the minimum funding standards under ERISA with respect to each and every Plan; file each annual report required to be filed pursuant to ERISA in connection with each Plan for
each year; and notify the Bank within ten (10) days of the occurrence of any Reportable Event that might constitute grounds for termination of any capital Plan by the Pension Benefit Guaranty Corporation or for the appointment by the
appropriate United States District Court of a trustee to administer any Plan. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. Capitalized terms in this paragraph shall have the meanings
defined within ERISA. 
 7.9. Books and Records. To maintain adequate books and records. 
 7.10. Audits. To allow the Bank and its agents to inspect the Borrower’s properties and examine, audit, and make copies of books
and records at any reasonable time. If any of the Borrower’s properties, books or records are in the possession of a third party, the Borrower authorizes that third party to permit the Bank or its agents to have access to perform inspections or
audits and to respond to the Bank’s requests for information concerning such properties, books and records. 
 7.11.
Perfection of Liens. To help the Bank perfect and protect its security interest in the Cash Collateral Account, and reimburse it for related costs it incurs to protect its security interests. 
 7.12. Cooperation. To take any action reasonably requested by the Bank to carry out the intent of this Agreement. 
 8. DEFAULT AND REMEDIES 
 If any of the
following events of default occurs, the Bank may do one or more of the following: declare the Borrower in default, stop making any additional credit available to the Borrower, and require the Borrower to repay its entire debt immediately and without
prior notice. In addition, if any event of default occurs, the Bank shall have all rights, powers and remedies available under any instruments and agreements required by or executed in connection with this Agreement, as well as all rights and
remedies available at law or in equity. If an event of default occurs under Section 8.5, then the entire debt outstanding under this Agreement will automatically be due immediately. 
 8.1. Failure to Pay. The Borrower fails to make a payment under this Agreement when due and such failure continues unremedied for
five (5) business days. 
 8.2. Other Bank Agreements. The Borrower or any of the Borrower’s related entities
or affiliates fails to meet the conditions of, or fails to perform material any obligation under any other agreement the Borrower or any of the Borrower’s related entities or affiliates has with the Bank or any affiliate of the Bank.

 8.3. Cross-default. Any default occurs under any material agreement in connection with any credit the Borrower or any
of the Borrower’s related entities or affiliates has obtained from anyone else or that the Borrower or any of the Borrower’s related entities or affiliates has guaranteed. 
  

 6 

 8.4. False Information. The Borrower has given the Bank materially false or
misleading information or representations. 
 8.5. Bankruptcy. The Borrower files a bankruptcy petition, a bankruptcy
petition is filed against the Borrower, and the case of bankruptcy is filed against the Borrower and such case is not dismissed within sixty (60) days of the filing of such petition, or the Borrower makes a general assignment for the benefit of
creditors; provided that the Bank shall not be obligated to issue new letters of credit or extend or amend existing letters of credit until any such bankruptcy case is dismissed. 
 8.6. Receivers. A receiver or similar official is appointed for a substantial portion of the Borrower’s business, or the
business is terminated. 
 8.7. Lien Priority. The Bank fails to have an enforceable first lien on or security interest
in any property given as security for this Agreement. 
 8.8. Judgments. Any judgments or arbitration awards are entered
against the Borrower, or the Borrower enters into any settlement agreements with respect to any litigation or arbitration, in an aggregate amount of $250,000 or more in excess of any insurance coverage. 
 8.9. Material Adverse Change. A material adverse change occurs, or is reasonably likely to occur, in the Borrower’s business
condition (financial or otherwise), operations, properties or prospects, or ability to repay the Letter of Credit Facility. 
 8.10. Government Action. Any government authority takes action that the Bank believes materially adversely affects the Borrower’s financial condition or ability to repay the Letter of Credit Facility. 
 8.11. Default under Related Documents. Any default occurs under any guaranty, subordination agreement, security agreement, deed of
trust, mortgage, or other document required by or delivered in connection with this Agreement and such default is not timely cured pursuant to the terms of such document, or any such document is no longer in effect. 
 8.12. ERISA Plans. Any one or more of the following events occurs with respect to a Plan of the Borrower subject to Title IV of
ERISA, provided such event or events could reasonably be expected, in the judgment of the Bank, to subject the Borrower to any tax, penalty or liability (or any combination of the foregoing) that, in the aggregate, could have a material adverse
effect on the financial condition of the Borrower: 
 (a) A reportable event shall occur under
Section 4043(c) of ERISA with respect to a Plan. 
 (b) Any Plan termination (or commencement of proceedings
to terminate a Plan) or the full or partial withdrawal from a Plan by the Borrower or any ERISA Affiliate. 
 8.13. Other
Breach Under Agreement. The Borrower fails to meet the conditions of, or fails to perform any obligation under, any term of this Agreement not specifically referred to in this Article, and such failure continues unremedied for thirty
(30) days; provided that the Bank shall not be obligated to issue new letters of credit or extend or amend existing letters of credit until any such default is cured. 
 9. ENFORCING THIS AGREEMENT; MISCELLANEOUS 
 9.1. GAAP. Except as
otherwise stated in this Agreement, all financial information provided to the Bank and all financial covenants will be made under generally accepted accounting principles, consistently applied. 
 9.2. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Washington. To the extent that
the Bank has greater rights or remedies under federal law, whether as a national bank or otherwise, this paragraph shall not be deemed to deprive the Bank of such rights and remedies as may be available under federal law. The Borrower irrevocably
consents to the personal jurisdiction of the state and federal courts located in the State of Washington in any action brought under this Agreement or any related loan document, and any action based upon the transactions encompassed by this
Agreement, whether or not based in contract. Venue of any such action shall be

  

 7 

 
laid in King County, Washington, unless some other venue is required for the Bank to fully realize upon the assets of the Borrower, or any collateral or guaranties. 
 9.3. Successors and Assigns. This Agreement is binding on the Borrower’s and the Bank’s successors and assignees. The
Borrower agrees that it may not assign this Agreement without the Bank’s prior consent. The Bank may sell participations in or assign the Letter of Credit Facility, and may exchange information about the Borrower (including, without limitation,
any information regarding any hazardous substances) with actual or potential participants or assignees. If a participation is sold or the Letter of Credit Facility is assigned, the purchaser will have the right of set-off against the Borrower.

 9.4. Dispute Resolution Provision. This paragraph, including the subparagraphs below, is referred to as the
“Dispute Resolution Provision.” This Dispute Resolution Provision is a material inducement for the parties entering into this Agreement. 
 (a) This Dispute Resolution Provision concerns the resolution of any controversies or claims between the parties, whether arising in contract, tort or by statute, including but not limited to
controversies or claims that arise out of or relate to: (i) this Agreement (including any renewals, extensions or modifications); or (ii) any document related to this Agreement (collectively a “Claim”). For the purposes of this
Dispute Resolution Provision only, the term “parties” shall include any parent corporation, subsidiary or affiliate of the Bank involved in the servicing, management or administration of any obligation described or evidenced by this
Agreement. 
 (b) At the request of any party to this Agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the “Act”). The Act will apply even though this Agreement provides that it is governed by the law of a specified state. 
 (c) Arbitration proceedings will be determined in accordance with the Act, the then-current rules and procedures for the
arbitration of financial services disputes of the American Arbitration Association or any successor thereof (“AAA”), and the terms of this Dispute Resolution Provision. In the event of any inconsistency, the terms of this Dispute
Resolution Provision shall control. If AAA is unwilling or unable to (i) serve as the provider of arbitration or (ii) enforce any provision of this arbitration clause, the Bank may designate another arbitration organization with similar
procedures to serve as the provider of arbitration. 
 (d) The arbitration shall be administered by AAA and
conducted, unless otherwise required by law, in any U.S. state where real or tangible personal property collateral for this credit is located or if there is no such collateral, in the state specified in the governing law section of this Agreement.
All Claims shall be determined by one arbitrator; however, if Claims exceed Five Million Dollars ($5,000,000), upon the request of any party, the Claims shall be decided by three arbitrators. All arbitration hearings shall commence within ninety
(90) days of the demand for arbitration and close within ninety (90) days of commencement and the award of the arbitrator(s) shall be issued within thirty (30) days of the close of the hearing. However, the arbitrator(s), upon a
showing of good cause, may extend the commencement of the hearing for up to an additional sixty (60) days. The arbitrator(s) shall provide a concise written statement of reasons for the award. The arbitration award may be submitted to any court
having jurisdiction to be confirmed and have judgment entered and enforced. 
 (e) The arbitrator(s) will give
effect to statutes of limitation in determining any Claim and may dismiss the arbitration on the basis that the Claim is barred. For purposes of the application of any statutes of limitation, the service on AAA under applicable AAA rules of a notice
of Claim is the equivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision or whether a Claim is arbitrable shall be determined by the arbitrator(s), except as set forth at subparagraph (h) of this Dispute
Resolution Provision. The arbitrator(s) shall have the power to award legal fees pursuant to the terms of this Agreement. 
 (f) This paragraph does not limit the right of any party to: (i) exercise self-help remedies, such as but not limited to, setoff; (ii) initiate judicial or non-judicial foreclosure against any
real or personal property collateral; (iii) exercise any judicial or power of sale rights, or (iv) act

  

 8 

 
in a court of law to obtain an interim remedy, such as but not limited to, injunctive relief, writ of possession or appointment of a receiver, or additional or supplementary remedies. 

(g) The filing of a court action is not intended to constitute a waiver of the right of any party, including the suing
party, thereafter to require submittal of the Claim to arbitration. 
 (h) Any arbitration or trial by a judge of
any Claim will take place on an individual basis without resort to any form of class or representative action (the “Class Action Waiver”). Regardless of anything else in this Dispute Resolution Provision, the validity and effect of the
Class Action Waiver may be determined only by a court and not by an arbitrator. The parties to this Agreement acknowledge that the Class Action Waiver is material and essential to the arbitration of any disputes between the parties and is
nonseverable from the agreement to arbitrate Claims. If the Class Action Waiver is limited, voided or found unenforceable, then the parties’ agreement to arbitrate shall be null and void with respect to such proceeding, subject to the right to
appeal the limitation or invalidation of the Class Action Waiver. The Parties acknowledge and agree that under no circumstances will a class action be arbitrated.  
 (i) By agreeing to binding arbitration, the parties irrevocably and voluntarily waive any right they may have to a trial by
jury in respect of any Claim. Furthermore, without intending in any way to limit this Agreement to arbitrate, to the extent any Claim is not arbitrated, the parties irrevocably and voluntarily waive any right they may have to a trial by jury in
respect of such Claim. This waiver of jury trial shall remain in effect even if the Class Action Waiver is limited, voided or found unenforceable. WHETHER THE CLAIM IS DECIDED BY ARBITRATION OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND
UNDERSTAND THAT THE EFFECT OF THIS AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW. 
 9.5. Severability; Waivers. If any part of this Agreement is not enforceable, the rest of the Agreement may be enforced. The Bank retains all rights, even if it makes a loan after default. If the Bank waives a default, it may enforce
a later default. Any consent or waiver under this Agreement must be in writing. 
 9.6. Attorneys’ Fees. The
Borrower shall reimburse the Bank for any reasonable out-of-pocket costs and attorneys’ fees incurred by the Bank in connection with the enforcement or preservation of any rights or remedies under this Agreement and any other documents executed
in connection with this Agreement, and in connection with any amendment, waiver, “workout” or restructuring under this Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing party is entitled to recover
out-of-pocket costs and reasonable attorneys’ fees incurred in connection with the lawsuit or arbitration proceeding, as determined by the court or arbitrator. In the event that any case is commenced by or against the Borrower under the
Bankruptcy Code (Title 11, United States Code) or any similar or successor statute, the Bank is entitled to recover costs and reasonable attorneys’ fees incurred by the Bank related to the preservation, protection, or enforcement of any rights
of the Bank in such a case. As used in this paragraph, “attorneys’ fees” includes the allocated costs of the Bank’s in-house counsel. 
 9.7. Set-Off. 
 (a) In addition to any rights and remedies
of the Bank provided by law, upon the occurrence and during the continuance of any event of default under this Agreement, the Bank is authorized, at any time, to set off and apply any and all Deposits of the Borrower held by the Bank against any and
all Obligations owing to the Bank. The set-off may be made irrespective of whether or not the Bank shall have made demand under this Agreement or any guaranty, and although such Obligations may be contingent or unmatured or denominated in a currency
different from that of the applicable Deposits. 
 (b) The set-off may be made without prior notice to the
Borrower or any other party, any such notice being waived by the Borrower to the fullest extent permitted by law. The Bank agrees promptly to notify the Borrower after any such set-off and application; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and application. 
  

 9 

 (c) For the purposes of this paragraph, “Deposits” means any
deposits (general or special, time or demand, provisional or final, individual or joint) and any instruments owned by the Borrower that come into the possession or custody or under the control of the Bank. “Obligations” means all
obligations, now or hereafter existing, of the Borrower to the Bank under this Agreement and under any other agreement or instrument executed in connection with this Agreement, and the obligations to the Bank. 
 9.8. One Agreement. This Agreement and any related security or other agreements required by this Agreement, collectively: 

(a) represent the sum of the understandings and agreements between the Bank and the Borrower concerning the Letter of
Credit Facility; 
 (b) replace any prior oral or written agreements between the Bank and the Borrower
concerning the Letter of Credit Facility; and 
 (c) are intended by the Bank and the Borrower as the final,
complete and exclusive statement of the terms agreed to by them. 
 In the event of any conflict between this Agreement and any other agreements
required by this Agreement, this Agreement will prevail. Any reference in any related document to a “promissory note” or a “note” executed by the Borrower and dated as of the date of this Agreement shall be deemed to refer to
this Agreement, as now in effect or as hereafter amended, renewed, or restated. 
 9.9. WASHINGTON NOTICE. ORAL
AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, TO EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. 
 9.10. Indemnification. The Borrower will indemnify and hold the Bank harmless from any loss, liability, damages, judgments, and costs of any kind relating to or arising directly or indirectly out
of (a) this Agreement or any document required hereunder, (b) any credit extended or committed by the Bank to the Borrower hereunder, and (c) any litigation or proceeding related to or arising out of this Agreement, any such document,
or any such credit, except to the extent any such loss, liability, damage, judgment or cost is a result of bad faith, gross negligence, or willful misconduct of the Bank, its parent, any of its subsidiaries or any of their directors, officers,
employees, agents, successors, attorneys, or assigns. This indemnity includes but is not limited to attorneys’ fees (including the allocated cost of in-house counsel). This indemnity extends to the Bank, its parent, subsidiaries and all of
their directors, officers, employees, agents, successors, attorneys, and assigns. This indemnity will survive repayment of the Borrower’s obligations to the Bank. All sums due to the Bank hereunder shall be obligations of the Borrower, due and
payable immediately without demand. 
 9.11. Notices. Unless otherwise provided in this Agreement or in another agreement
between the Bank and the Borrower, all notices required under this Agreement shall be personally delivered or sent by first class mail, postage prepaid, or by overnight courier, to the addresses on the signature page of this Agreement, or sent by
facsimile to the fax numbers listed on the signature page, or to such other addresses as the Bank and the Borrower may specify from time to time in writing. Notices and other communications shall be effective (i) if mailed, upon the earlier of
receipt or five (5) days after deposit in the U.S. mail, first class, postage prepaid, (ii) if telecopied, when transmitted, or (iii) if hand-delivered, by courier or otherwise (including telegram, lettergram or mailgram), when
delivered. 
 9.12. Headings. Article and paragraph headings are for reference only and shall not affect the
interpretation or meaning of any provisions of this Agreement. 
 9.13. Borrower Information; Reporting to Credit
Bureaus. The Borrower authorizes the Bank at any time to verify or check any information given by the Borrower to the Bank, check the Borrower’s credit references and obtain credit reports. The Borrower agrees that the Bank shall have the
right at all times to disclose and report to credit reporting agencies and credit rating agencies such information pertaining to the Borrower and/or all guarantors as is consistent with the Bank’s policies and practices from time to time in
effect. 
  

 10 

 9.14. Termination of Agreement. All obligations of the Borrower under this Agreement
shall remain in full force and effect until (a) the Bank has no further obligation to issue letters of credit under the Letter of Credit Facility, (b) (i) no letters of credit issued by the Bank for the account of the Borrower remain
outstanding or (ii) each outstanding letter of credit issued by the Bank is backstopped by a letter of credit satisfactory to the Bank in its sole discretion and (c) all amounts payable to the Bank under this Agreement, including all
interest, fees and indemnifications, have been paid in full; at which time all obligations of both the Bank and the Borrower under this Agreement shall terminate, and all security interests held by the Bank shall be deemed released. 
 9.15. Counterparts. This Agreement may be executed in as many counterparts as necessary or convenient, and by the different parties
on separate counterparts each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same agreement. 
 This Agreement is executed as of the date stated at the top of the first page. 
  

									
	Bank:	 	 	 	 	 	Borrower:	 	 
			
	BANK OF AMERICA, N.A.	 		 	NAUTILUS, INC.
					
	By	 	/S/    MICHAEL
SNOOK        	 		 	By	 	/S/     KENNETH
FISH        
		 	Michael Snook, Senior Vice President	 		 		 	Kenneth Fish, Chief Financial Officer

  

					
	Address where notices to the Bank are to be sent:	  	Address where notices to the Borrower are to be sent:
		
	Oregon Commercial Banking	  	16400 SE Nautilus Drive
	121 SW Morrison St., Suite 1700	  	Vancouver, WA 98683
	Portland, OR 97204	  	Attention: Kenneth Fish
	Attention: Michael Snook	  	Telephone: (360) 859-5913
	Telephone: (503) 795-6426	  	Telefacsimile: (360) 859-5913
	Telefacsimile: (503) 795-6389	  		 	

 Federal law requires Bank of America, N.A. (the “Bank”) to provide the following
notice. The notice is not part of the foregoing agreement or instrument and may not be altered. Please read the notice carefully. 
 USA PATRIOT ACT NOTICE 
 Federal law requires all financial institutions to obtain, verify and record information that
identifies each person who opens an account or obtains a loan. The Bank will ask for the Borrower’s legal name, address, tax ID number or social security number and other identifying information. The Bank may also ask for additional information
or documentation or take other actions reasonably necessary to verify the identity of the Borrower, guarantors or other related persons. 
  

 11

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