Document:

Loan and Security Agreement

 EXHIBIT 10.31 
 Loan and Security Agreement 
  
  
 This Loan and Security Agreement (the
“Agreement”) dated as of October 31, 2005, is between Rosedale Leasing LLC (“Lender) and Asset Liquidation Group, Inc. and Public Liquidation Systems, Inc. d/b/a Nationwide Auction Systems
(“Borrower”). 
 ARTICLE 1. DEFINITIONS 
 In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated for the purposes of this Agreement: 
 “Advance” means a loan advance made to Borrower or on Borrower’s behalf under the credit facilities provided in this Agreement.

 “Advance Date” means, with respect to any Advance for any Vehicle, the date the Operating Line Advance was made by Lender
to finance such Vehicle. 
 “Availability Period” means the period from the date of this Agreement to, but not including, the
earlier of (a) the Expiration Date or (b) the date on which Lender’s obligation to make Advances hereunder is terminated pursuant to the terms of this Agreement. 
 “Business Day” means a day, other than a Saturday or a Sunday, on which Lender is open for commercial business. 
 “Expiration Date” means November 1, 2006, or such earlier date as may be applicable due to acceleration of Obligations in accordance
with the terms of this Agreement. 
 “Guarantor” means each Person who at any time executes a Guaranty for the benefit of
Lender including, without limitation, Entrade, Inc. 
 “Guaranty” means each guaranty of the Obligations which is executed by
any Person. 
 “Loan Documents” means this Agreement, the Security Documents, the Guaranties, and any and all other
agreements, notes, guaranties, security agreements, pledge agreements, mortgages, deeds of trust, assignments, subordination agreements and all other documents previously, concurrently or hereafter executed or delivered by any Person to or in favor
of Lender evidencing, guarantying, securing or otherwise related to any of the Obligations or the Collateral. 
 “Loan Party”
means Borrower, each Guarantor, any Person granting collateral security for any or all of Obligations, and any other Person executing any Loan Document. 
 “New Vehicle” means a Vehicle that has never been owned except by a manufacturer, distributor or dealer; has never been registered; has not been driven more than 500 total miles; and is of the current
or immediately preceding model year. 
 “Obligations” means all Advances and all of Borrower’s debts (except for
consumer credit if Borrower is a natural person), liabilities, obligations, covenants, warranties, and duties to Lender and/or to any affiliate of Lender (including without limitation, any credit debt, but specifically excluding any type of consumer
debt), whether now or hereafter existing or incurred, whether liquidated or unliquidated, whether absolute or contingent, whether arising out of the Loan documents or otherwise, and all other debts and obligations due Lender under any lease,
agricultural, real estate or other financing transaction and regardless of whether such financing is related in time or type to the financing provided at the time of this Agreement, and regardless of whether such obligations arise out of existing or
future credit granted by Lender to Borrower, to Borrower and others, to others guaranteed, endorsed or otherwise secured by Borrower or any property of Borrower or to any debtor-in-possession or other successor-in-interest of Borrower, and including
principal, interest, fees, expenses and charges relating to any of the foregoing. 
 “PaymentCommitment” means a commitment
entered into between Lender and a manufacturer or: distributor, providing for payment of funds directly by Lender to such manufacturer or distributor in payment for Borrower’s purchase of New vehicles, from such manufacturer or distributor.

 “Person” means any natural person, corporation, limited liability company, partnership, joint venture, firm, association,
trust, unincorporated organization, government or governmental agency or political subdivision or any other entity, whether acting in an individual, fiduciary or other capacity. 
  

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 “Prime Rate” means the per annum interest rate announced from time to time as the
“prime rate” or “base rate” by the Wall Street Journal or the equivalent label if the terminology may be changed or discontinued 
 “Related Principal Portion” means, with respect to each Vehicle, the principal amount of the Operating Line Advance made under this Agreement to finance that Vehicle. 
 “Security Documents” means such security agreements, financing statements, pledge agreements, assignments, mortgages, deeds of trust and
other documents and instruments which are given to Lender by Borrower or any other Person to grant, preserve, protect and/or perfect Lender’s security interests in any and all property (real or personal) granted to Lender as collateral security
for any or all of the Obligations. 
 “Seller Agreement” means any agreement between Borrower and a manufacturer, distributor
or other seller of Vehicles (including without limitation franchise agreements, distribution agreements and the like). 
 “Title
Documents” means all manufacturers’ certificates or origin, manufacturers’ statements of origin, certificates of title, certificates of ownership and any other documents evidencing ownership of a Vehicle or the transfer of
ownership of a Vehicle from a manufacturer or another dealer to Borrower, and all warehouse receipts, bills of lading and other negotiable documents of title. 
 “Used Vehicle” means a Vehicle, other than a New Vehicle, that is of the current or one of the immediately preceding 12 model years. 
 “Vehicle” means an automobile or truck with a gross vehicle weight of no more than 10,000 pounds, which satisfies the follower
requirements: 
  

	 	(a)	The vehicle is owned by Borrower, subject to a first priority perfected security interest in favor of Lender, and free of any title defects, liens, security interests, leases,
bailments, consignments or other interests of any Person other than Lender, except as agreed by Lender in writing. 

  

	 	(b)	Unless the vehicle is in transit from the seller, it is permanently located at locations which Borrower has disclosed to Lender and which are acceptable to Lender. If the vehicle is
in transit from a seller, then upon receipt by Borrower it will be permanently located at one of such locations. 

  

	 	(c)	The vehicle is held for sale or lease in the ordinary course of Borrower’s business. 

  

	 	(d)	The vehicle is undamaged and of good and merchantable quality. 

  

	 	(e)	The vehicle is otherwise acceptable to Lender. 

 ARTICLE
2. CREDIT FACILITIES 
 2A. Operating Line of Credit 
 2A.1 Commitment. 
 (a) Maximum Amount. During the Availability Period and subject to the terms
and conditions of this Agreement, Lender will make loans to Borrower from time to time on a revolving credit basis (each, an “Operating Line Advance”), provided that the aggregate principal amount of outstanding Operating Line
Advances shall at no time exceed the lesser of: (i) $2,000,000 (the “Commitment”) or (ii) the Borrowing Base at such time. 
 (b) Borrowing Base. As used herein, “Borrowing Base” means, as of any date of determination, an amount equal to (i)100% of the Book Value of Borrower’s inventory of New Vehicles and Used Vehicles at such time,
minus (ii) the then outstanding principal balance of any indebtedness (other than Advances under this Agreement) which is secured by the New Vehicles and Used Vehicles. For purposes of this Agreement, Book Value means the lesser of (a) the
book value as reported on Borrower’s balance sheet in a manner consistent with Borrower’s current accounting practices for such New Vehicles and Used Vehicles and (b) the average Kelly Blue Book value, or similar industry standard
valuation source (including auction valuations), within the previous 45 days for such New Vehicles and Used Vehicles. The following categories are ineligible for inclusion and calculation in the Borrowing Base: 
  

	 	(i)	New Vehicles and Used Vehicles held in inventory on the Borrower’s balance sheet for more than 75 days; and 

  

	 	(ii)	No more than 15% of the Operating Line Advance is permitted to be used for New and Used Vehicles that have a Book Value greater than $50,000; and 

  

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	 	(iii)	New Vehicles and Used Vehicles that were originally manufactured on a limited production basis or that is not longer manufactured for sale in the United States, except with respect
to any vehicles manufactured by Daewoo. 

 2A.2 Purpose of Operating Line Advances. Borrower shall use the proceeds of Operating
Line Advances for its short term working capital needs and to finance New Vehicles and Used Vehicles. 
 2A.3 Interest Rate and Payment
Schedule. Borrower shall pay interest on the outstanding principal balance of each Operating Line Advance at the rates and according to the schedule set forth below; provided, however, in no event will the interest rate hereunder exceed that
permitted by applicable law. If any interest or other charge is finally determined by a court of competent jurisdiction to exceed the maximum amount permitted by law, the interest or charge shall be reduced to the maximum permitted by law, and
Lender may credit any excess amount previously collected against the balance due or refund the amount to Borrower. 
 (a) Interest
Rate. Unless the Default Rate is applicable, interest on Operating Line Advances shall accrue at an annual rate equal to the following Prime Rate tier: 
  

	 	(i)	Prime Rate + 3.50% for Operating Line Advances secured by Vehicles held in inventory on the Borrower’s balance sheet for not more than 30 days; and 

  

	 	(ii)	Prime Rate + 5.00% for Operating Line Advances secured by Vehicles held in inventory on the Borrower’s balance sheet for more than 30 days, but less than 75 days.

 (b) Interest Payment Schedule. Interest payments shall be made
monthly in an amount equal to all interest accrued during the prior calendar month. Such interest payments shall be made on the 10th day of each
month commencing the month immediately following the month this Agreement is executed and continuing thereafter. All accrued interest outstanding on the Expiration Date is due and payable in full on the Expiration Date. 
 (c) Interest Computation. Interest will be computed for the actual number of days principal is unpaid, using a daily factor obtained by dividing
the stated interest rate by 360. 
 2A.4 Principal Payments. The entire outstanding principal balance of the Operating Line Advances shall be
due and payable in full on the Expiration Date (or such earlier date as may be required in accordance with the provisions of this Agreement). In addition to any other principal payments required under this Agreement or any promissory note, Borrower
will repay Operating Line Advances as follows: 
 (a) Sale of Vehicles. Borrower shall pay to Lender the entire Related Principal
Portion for each financed Vehicle by the earlier of (A) 3 Business Days following Borrower’s receipt of proceeds from the sale of such Vehicle, or (B) 15 calendar days following the date of sale of such Vehicle. 
 (b) Unsold Vehicles. Borrower shall pay to Lender a monthly curtailment fee equal to $55.00 for any Vehicle not previously sold 30 days following
the Advance Date for such Vehicle; provided that the maximum monthly aggregate curtailment fee for all Vehicles under this Agreement shall not exceed $7,000.00. 
 (c) Deemed Sales. If a Deemed Sale of a Vehicle occurs, Borrower shall pay to Lender the Related Principal Portion for such Vehicles no later than 3 Business Days following the date of the Deemed Sale. A
“Deemed Sale” means any of the following: 
  

	 	(i)	Borrower disposes of a Vehicle by trade with another company or other disposition, other than a sale in the ordinary course of Borrower’s business, regardless of whether any
payment is due to be made by or to Borrower in respect of such trade or other disposition. 

  

	 	(ii)	The Vehicle ceases to meet the criteria contained in the definition of Vehicle in this Agreement. 

  

	 	(iii)	A Vehicle ceases to meet the criteria contained in the applicable definition for such type of Vehicle in this Agreement. 

  

	 	(iv)	Lender determines that the fair market value of a Vehicle has significantly declined, regardless of the reason. 

 2B. Default Interest; Fees and Charges 
 2B1.
Default Interest. Upon the occurrence of any default or at any time during the continuation thereof, Lender may, at its option and subject to applicable law, increase any and all interest rates applicable hereunder to an annual rate equal
to 2% plus the interest 

  

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rate otherwise payable hereunder (the “Default Rate”). Notwithstanding the foregoing and subject to applicable law, upon the occurrence of a
default by Borrower or any Guarantor involving bankruptcy, insolvency, receivership proceedings or an assignment for the benefit of creditors, the interest rates applicable hereunder shall automatically increase to the applicable Default Rate.

 2B.2 Fees and Charges. 
 (a) Late
Payment Fee. Subject to applicable law, if any payment is not made on or before its due date, Lender may Collect a delinquency charge of 5% of the amount that is due and unpaid. Collection of the late payment fee shall not be deemed to be a
waiver of Lender’s right to declare a default hereunder. 
 (b) Unused Facility Fee. The Borrower shall pay to Lender a monthly
fee on the average monthly unused Commitment amount equal to 0.25% of such unused Commitment, payable monthly in arrears. 
 (c)
Commitment Fee. The Borrower shall pay to Lender a Commitment fee of $25,000 as a condition of closing this Agreement. 
 ARTICLE 3.
ADDITIONAL PROVISIONS REGARDING ADVANCES 
 3.1 Requests for Advances. Lender’s obligation to make any Advance is subject to all of
the terms and conditions of this Agreement including, without limitation, the following; 
 (a) Advances Requested By Borrower.
Borrower may request an Advance in writing or by telephone promptly confirmed in writing for deposit into Borrower’s deposit account(s) with Lender. Requests for Advances to be deposited or forwarded elsewhere shall be in writing in such
form and containing such information as Lender may require from time to time. Borrower has the responsibility for ensuring that representatives of Borrower contacting Lender to request Advances or submitting written requests for Advances are
authorized. Lender shall be entitled to act on the instructions of anyone identifying himself or herself as authorized to request Advances and Borrower shall be bound thereby in the same manner as if the person were actually so authorized. Lender is
authorized to credit any of Borrower’s accounts with Lender (or any account Borrower designates in writing) for Advances made to Borrower. Borrower’s failure to confirm any telephonic request or otherwise comply with the provisions of this
Section 3.11 shall not in any manner affect the obligation of Borrow to repay such Advance in accordance with the terms of this Agreement. Borrower agrees not to hold Lender liable for any errors or misunderstanding in complying with any
written or oral directions for Advances; and Borrower agrees to indemnify and hold the Lender harmless from any and all claims, damages, liabilities, losses, costs and expenses (including attorneys’ fees) which may arise or be created by the
acceptance of instructions (telephonic or otherwise) for making Advances by wire transfer or otherwise, or for application of payments. 
 (b) Advances Pursuant to Payment Commitment. Lender is authorized to make payment on Borrower’s behalf directly to manufacturers or distributors of Vehicles, in accordance with the terms and conditions of the applicable Payment
Commitment. Each payment by Lender pursuant to a Payment Commitment shall constitute an Operating Line Advance hereunder in the amount of such payment. Lender, in its sole discretion, may revise, terminate or suspend a Payment Commitment at any
time, whether or not a default has occurred, by giving written notice to the applicable manufacturer or distributor. Borrower shall be and remain liable to Lender for all payments made to a manufacturer or distributor pursuant to a Payment
Commitment. Lender does not assume any responsibility for (and Borrower’s obligation to repay any Advance hereunder will not be affected or impaired in any way by) the correctness, validity, genuineness or sufficiency of any request for payment
by a manufacturer or distributor under a Payment Commitment, any documents pertaining thereto or the existence, character, quantity, quality, condition, weight, value or delivery of any Vehicles purchased with the proceeds of any Advance. In this
regard, Lender may conclusively presume and rely upon the validity and the appropriateness of any payment request by a manufacturer or distributor under a Payment Commitment and any and all documents or information related thereto. 
 3.2 Advances in Excess of Limitations. Lender shall have no obligation whatsoever, and Lender has no present intention, to make any Advance after the
Expiration Date or which would cause the principal amount outstanding under this Agreement to exceed any of the limitations stated in this Agreement. Notwithstanding the foregoing, Lender may from time to time, in its sole and absolute discretion,
agree to honor a Payment Commitment or make an Advance after the Expiration Date or which would cause the principal amount of Advances outstanding under this Agreement to exceed any of the limitations stated in this Agreement. Borrower is and shall
be and remain unconditionally liable to Lender for, and Borrower promises to pay to the order of Lender, the amount of all Advances hereunder, including without limitation Advances in excess of any of such limitations and Advances made after the
Expiration Date. Immediately upon Lender’s demand, Borrower shall pay to Lender the amount of (a) any Advances in excess of any limitation contained in this Agreement, and (b) any Advances made after the Expiration Date, together with
interest on the principal amount of such Advances, for so long as such Advances are outstanding, at the interest rate from time to time in effect for such Advances. 
 3.3 Record of Advances. All Advances and payments hereunder shall be recorded on Lender’s books, which shall be rebuttable presumptive evidence of the amount of such Advances outstanding at any time
hereunder. Lender will account monthly as to all Advances and payments hereunder and each, monthly accounting will be fully binding on Borrower unless, within 15 calendar days 

  

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following Borrower’s receipt thereof, Borrower provides Lender with a verifiable listing of exceptions. Notwithstanding any term or condition of this
Agreement to the contrary, the failure of Lender to record the date and amount of any Advance shall not limit or otherwise affect the obligation of Borrower to repay any such Advance. Lender, in its sole and absolute discretion, may require
Borrower, and Borrower agrees upon any such requirement, to execute and deliver to Lender one or more promissory notes to evidence the Advances. Whether or not any promissory notes are so required or executed or delivered, borrower promises to pay
the Advances, all interest thereon, and all other Obligations under this Agreement pursuant to the terms hereof. 
 ARTICLE 4. SECURITY
INTEREST; COLLATERAL 
 4.1 Grant of Security Interest. To secure the payment and performance of all Obligations, Borrower hereby grants a
security interest in and collaterally assigns the Collateral (defined below) to Lender. The intent of the parties hereto is that the Collateral secures all Obligations whether or not such Obligations exist under this Agreement or any of the other
Loan Documents and while such Obligations are due under any Loan Document, whether or not all amounts outstanding under this Agreement have been paid in full. Borrower hereby authorizes Lender to execute and file such financing statements as deemed
by Lender to be necessary and, if any Collateral is subject to any statute which requires or permits security interests to be indicated on a certificate of title, Borrower will assure that the security interest is properly indicated on all such
certificates of title and Borrower will deliver to Lender all title documents that you receive for any of the Collateral (defined below). 
 4.2
Collateral. “Collateral” means all of the following property of Borrower, whether now owned or existing or hereafter acquired and wherever located: all inventory (including, without limitation, all Vehicles, automobiles, trucks and
other motor vehicles of whatever make, model and description, trade ins, repossessions and inventory held for display or demonstration purposes); accounts; instruments; documents; chattel paper; general intangibles; deposit accounts; contract rights
and other right to payment; leases, rebates, credits, factory holdbacks, incentive payments and other payments from any manufacturer, factory or distributor. In addition, “Collateral” includes all the following, whether now owned or
hereafter acquired, whether now existing or hereafter arising and wherever located: all attachments, accessions, accessories, tools, parts, supplies, increases, and additions to and all replacements of and substitutions for any property described in
the Collateral section; all products and produce of any of the property described in this Collateral section; all proceeds (including insurance proceeds) of any of the property described in this Collateral section; and all records and data relating
to any of the property described in this Collateral section, whether in the form of a writing, photograph, microfilm, microfiche or electronic media, together with Borrower’s right, title and interest in and to all computer software required to
utilize, create, maintain, and process any such records of data on electronic medial. Terms not otherwise defined in the Collateral section shall have the meanings attributed to such terms in the Uniform Commercial code, as adopted in the state
whose law governs this Agreement and as amended from time to time. 
 4.3 Compensating Balance Account. The Borrower shall establish and maintain a
Compensating Balance Account with a financial institution acceptable to the Lender in the name of the Lender which maintains funding equal to 10% of the outstanding Operating Line Advances. Earnings generated by the Borrower will be retained for the
use of the Borrower to support ongoing business activities and shall not be distributed, except to the extent required to make tax payments and/or related tax distributions. 
 4.4 Additional Collateral. Upon the request of Lender, at any time after the Expiration Date or, if earlier, the date on which the availability of Advances is terminated, Borrower shall deliver to Lender funds
in an amount equal to the amount which Lender estimates it may be required to pay to manufacturers and distributors pursuant to Payment Commitments which may be presented on or after such date. Such funds shall be held in a non-interest bearing
deposit account as additional Collateral for the indebtedness of Borrower to Lender. Borrower hereby grants to Lender a security interest in such funds and such account to secure all Obligations. Upon termination of all commitments and obligations
of Lender under this Agreement, the other Loan Documents and all Payment Commitments, and payment in full of all Obligations, Lender shall return to Borrower any remaining funds held by Lender in such account. 
 ARTICLE 5. CONDITIONS 
 5.1 Initial Conditions.
Lender shall have no obligation to make the initial Advance until each of the following conditions (each an “Initial Condition”) has been satisfied: 
 (a) Receipt by Lender of: 
 (i) Executed originals of this Agreement, the Security Documents, a Guaranty from
each Guarantor and any other Loan Document required by Lender, all in form and content satisfactory to Lender. 
 (ii) All required Landlord
Consents, evidence of insurance, and if required by Lender, copies of all leases covering any real property leased by Borrower as lessee. 
  

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 (iii) All organizational documents, resolutions, authorizations and information Lender requests relating
to the authority for and validity of this Agreement and the other Loan Documents, the due organization, valid existence, qualification to do business and good standing of the Loan Parties, and any other related matters. 
 (iv) Such additional documents and information (including, if required by Lender, attorney opinion letters) as Lender reasonably required, each in form
and content satisfactory to Lender, and evidence that each Loan Party has satisfied such additional requirements, as Lender reasonably requires. 
 (v) All fees and expenses required to have been paid prior to the initial Advance hereunder. 
 (b) Lender has a valid and perfected
first priority security interest in the Collateral, subject only to Permitted Liens (defined below) and has received satisfactory evidence of perfection and the priority of its security interest, including without limitation such Uniform Commercial
Code and other searches, signed termination statements and other filings as it deems appropriate. 
 (c) Lender has conducted such audits of
the Collateral as it requires, the results of which are satisfactory to Lender. 
 (d) Lender has received copies of any Seller Agreements
which it has requested and has received such evidence as it requires that all Seller Agreements which are necessary for the conduct of Borrower’s business, are in full force and effect. 
 (e) Each Loan Party has satisfied any other requirements reasonably required by Lender. 
 5.2 Conditions to each Advance. Lender’s agreement to make any Advance (including the initial Advance) is subject to satisfaction of the follower conditions on the date such Advance is to be made.

 (a) All initial Conditions have been satisfied. 
 (b) No default has occurred or will exist under this Agreement or any other Loan Document after the making of the Advance. 
 (c) The representations and warranties in this Agreement are true and correct as of such date. 
 (d) Receipt
by Lender of such documents and information as Lender requires. 
 ARTICLE 6. WARRANTIES AND COVENANTS 
 In addition to all other warranties and covenants of Borrower under the other Loan Documents, all of which are expressly incorporated herein as part of this Agreement;
and while any part of any credit granted to Borrower is available or any Obligations are unpaid or outstanding, Borrower continuously warrants and agrees as set forth below. Each request by Borrower for an Advance shall be its representation and
warranty that (a) such Advance may be made without exceeding any applicable maximum amount permitted by this Agreement, (b) no default has occurred or will exist under this Agreement or any other Loan Document after the making of such
Advance, and (c) all representations and warranties set forth in the Agreement and all other Loan Documents are true, accurate and complete as of, and are deemed made as of, the date of such request. 
 6.1 Accuracy of Information. All information, certificates or statements given to Lender pursuant to this Agreement and the other Loan Documents will be true and
complete when given. 
 6.2 Organization; Authority; Validity of Obligations; Litigation. If Borrower is not an individual, Borrower is duly
organized, validly existing, duly qualified and in good standing under the laws of its state of organization and in each jurisdiction where qualification is required, and has all requisite power and authority, corporate or otherwise, and possesses
all licenses necessary, to conduct its business and own its properties. The execution, delivery and performance of this Agreement and the other Loan Documents (i) are within Borrower’s power; (ii) have been duly authorized by all
appropriate entity action; (iii) do not require the approval of any governmental agency, other entity or Person; and (iv) will not violate any law, agreement or restriction by which Borrower or its property is bound. This Agreement and the
other Loan Documents to which Borrower is a party are the legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their terms. There is no litigation or administrative proceeding threatened or pending
against Borrower in accordance with their terms. There is no litigation or administrative proceeding threatened or pending against Borrower which would, if adversely determined, have a material adverse effect on Borrower’s financial condition
or its property. 
 6.3 Existence; Business Activities; Assets. Borrower will (i) preserve its organizational existence, rights and franchises;
(ii) not make any material change in the nature or manner of its business activities; (iii) not liquidate, dissolve, merge or consolidate with or into another entity or change its form of organization or change to or from any form of
limited liability entity, and (iv) not sell, lease, transfer or otherwise dispose of all or substantially all of its assets or acquire all or substantially all of the assets or the business of any Person. 
  

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 6.4 Use of Proceeds; Margin Stock Speculation. Advances by Lender will be used exclusively by Borrower for
the purposes set forth in this Agreement. Borrower will not use any of the loan proceeds to purchase or carry “margin” stock (as defined in Regulation U of the board of Governors of the Federal Reserve System). No part of any of the
proceeds will be used for speculative investment purposes, including, without limitation, speculating or hedging in the commodities and/or futures market. 
 6.5 Environmental Matters. Except as disclosed in a written scheduled attached to this Agreement (if no schedule is attached, there are no exceptions), Borrower is not aware of any, and Borrower will not permit to exist any,
uncorrected violations by Borrower of any federal, state or local laws (including statutes, regulations, ordinances or other governmental restrictions and requirements) relating to the discharge of air pollutants, water pollutants or process waste
water or otherwise relating to the environment or Hazardous Substances as hereinafter defined, whether such laws currently exist or are enacted in the future (collectively “Environmental Laws”). The term Hazardous
Substances” means any hazardous or toxic wastes, chemicals or other substances, the generation, possession or existence of which is prohibited or governed by any Environmental Laws. Borrower is not subject to any judgment, decree, order or
citation, or a party to (or threatened with) any litigation or administrative proceeding, which asserts that Borrower (i) has violated any Environmental Laws; (ii) is required to clean up, remove or take remedial or other action with
respect to any Hazardous Substances (collectively “Remedial Action”); or (iii) is required to pay all or a portion of the cost of any Remedial Action, as a potentially responsible party. There are not now, nor to
Borrower’s knowledge after reasonable investigation have there ever been, any Hazardous Substances (or tanks or other facilities for the storage of Hazardous Substances) stored, deposited, recycled or disposed of on, under or at any real estate
owned or occupied by Borrower during the periods that Borrower owned or occupied such real estate, which if present on the real estate or in soils or ground water, could require Remedial Action. To Borrower’s knowledge, there are no proposed or
pending changes in Environmental Laws which would adversely affect Borrower or its business, and there are no condition existing currently or likely to exist while the Loan Documents are in effect which would subject Borrower to Remedial Action or
other liability. Borrower currently complies with and will continue to timely comply with all applicable Environmental Laws; and will provide Lender, immediately upon receipt, copies of any correspondence, notice, complaint, order or other document
from any source asserting or alleging any circumstance or condition which requires or may require a financial contribution by Borrower or Remedial Action or other response by or on the part of Borrower under Environmental Laws or which seeks damages
or civil, criminal or punitive penalties from Borrower for an alleged violation of Environmental Laws. 
 6.6 Compliance with laws. Borrower has
complied and will continue to comply with all laws applicable to its business and its properties, and has all permits, licenses and approvals required by such laws, copies of which have been provided to Lender. 
 6.7 Restriction on Indebtedness. Borrower will not create, incur, assume or have outstanding any indebtedness for borrowed money (including capitalized leases)
except Permitted Indebtedness. “Permitted Indebtedness” means (i) any indebtedness owing to Lender, and (ii) any other indebtedness outstanding on the date hereof that is disclosed to Lender in writing, and
(iii) short term trade obligations incurred in the ordinary course of business, and (iv) additional unsecured indebtedness in the individual principal amount not to exceed $50,000 at any time outstanding, and (v) additional purchase
money indebtedness incurred to acquire equipment in the individual principal amount not to exceed $300,000 at any time outstanding, provided that such indebtedness is secured only by the equipment acquired and such equipment secured only the
obligation to pay the purchase price and (iv) any senior secured loan facility which does not require a security interest in the Collateral. Any more restrictive provisions regarding restrictions on indebtedness contained in any other senior
secured loan facility, whether currently existing or hereinafter created, will be incorporated by reference herein. 
 6.8 Restriction on Contingent
Liabilities. Borrower will not guarantee or become a surety or otherwise contingently liable for any obligations of others, except pursuant to warranty and service agreements, the deposit and collection of checks and similar matters in the
ordinary course of business. 
 6.9 Insurance. Borrower will maintain insurance to such extent, covering such risks and with such insurers as is
satisfactory to Lender, including insurance for fire and other risks insured against by extended coverage, public liability insurance and workers’ compensation insurance; and will designate Lender as loss payee with a “Lenders Loss
Payable” endorsement on any casualty policies and take such other action as Lender may reasonably request to ensure that Lender will receive (subject to no other interests) the insurance proceeds on Lender’s Collateral. Borrower hereby
assigns all insurance proceeds to and irrevocably directs, while any Obligations remain unpaid, any insurer to pay to Lender the proceeds of all such insurance and any premium refund; and authorizes Lender to endorse Borrower’s name to effect
the same, to make, adjust or settle, in Borrower’s name, any claim on any insurance policy relating to the Collateral; and, at the option of Lender, to apply such proceeds and refunds to the Obligations or to restoration of the Collateral,
returning any excess to Borrower. 
 6.10 Taxes and Other Liabilities. Borrower will file all tax returns and reports required of it. Borrower
will pay and discharge all of its taxes, assessments and other liabilities, except when the payment thereof is being contested in good faith by appropriate procedures which will avoid foreclosure of liens securing such items, and with adequate
reserves provided therefor. 
 6.11 Financial Statements and Reporting. The financial statements and other information previously provided to
Lender or provided to Lender in the future are or will be complete and accurate and, except as otherwise provided herein, prepared in accordance with general accepted accounting principles. There has been no material adverse change in
Borrower’s financial condition since such information was provided to Lender. Borrower will (i) maintain accounting records in accordance with generally 

  

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recognized and accepted principles of accounting consistently applied throughout the accounting period involved (ii) provide Lender with such
information concerning the business affairs and financial condition of any Loan Party (including, without limitation, insurance coverage and agreements with manufacturers, distributors or other sellers of Vehicles) as Lender may reasonably request
and (iii) upon request and with such frequency as Lender may require, provide Lender with a report containing a listing of all Vehicles by serial number, the number of days it has remained unsold and its Advance Date. In addition, Borrower
shall deliver to Lender each of the following: 
  

	 	(a)	Within 45 calendar days after the end of each calendar quarter, or other applicable period, copies of the Borrower’s financial statements, including balance sheet and related
statements of income, cash flows and retained earnings. 

  

	 	(b)	Within 180 calendar days after the end of each fiscal year of Borrower, Borrower’s audited balance sheet and related statements of income, cash flows and retained earnings as
of the end of and for such fiscal year, in each case prepared by a certified public accountant acceptable to Lender; and a copy of such accountant’s management letter, if any. No financial statement shall include a disclaimer or qualified
opinion or other adverse accountants’ report, except such as Lender in its sole discretion may determine to be immaterial. 

 6.12
Inspection of Properties, Collateral and Records. Fiscal Year. Borrower will permit representatives of Lender to visit and inspect any of the properties of Borrower, audit and inspect any of the Collateral and examine any of the books and
records of Borrower (and make copies at Borrower’s expense) wherever located, including, but not limited to, all manufacturers’ statements of origin, titles, demonstrator agreements, factory invoices, Borrower purchase orders, buy-back
agreements and other agreements with manufacturers, distributors or other sellers of Vehicles and all other instruments, documents and records at any reasonable time and as often as Lender may reasonably desire; and Borrower shall assist Lender in
so doing. Borrower will not change its fiscal year. 
 6.13 Financial Covenants. Borrower will comply with such financial covenants as contained in
any other senior secured loan facility maintained by the Company, such covenants are incorporated herein by reference. 
 6.14 GAAP. Except as
otherwise provided in this Agreement or any other Loan Document, all accounting terms used in this Agreement or any other Loan document shall be construed and all accounting and financial information or computations shall be prepared or computed, in
accordance with generally accepted accounting principles consistently applied. 
 6.15 Expenses and Attorneys’ Fees. Borrower will reimburse
Lender and any Participant (defined below) for all attorneys’ fees of in-house and outside counsel and all other costs, fees and out-of-pocket disbursements incurred by Lender or any Participant in connection with the preparation, execution,
delivery, administration, defense and enforcement of this Agreement or any of the other Loan Documents, including fees and costs related to any waivers or amendments with respect thereto (examples of costs and fees include but are not limited to
fees and costs for; filing, perfecting or confirming the priority of Lender’s lien, title searches or insurance, appraisals, environmental audits, and other reviews related to Borrower, any collateral securing the Obligations, or the loans
evidenced by the Loan Documents, if requested by Lender). Borrower will also reimburse Lender and any Participant for all costs of collecting, preserving and/or liquidating any collateral securing the Obligations and all costs of litigation or
arbitration commenced to enforce or construe any term of any Loan Document, before and after judgment, in any arbitration, trial, appellate proceeding, proceeding under any bankruptcy code or receivership, which costs shall include, without
limitation, attorneys’ fees of in-house and outside counsel. Borrower specifically agrees to pay all out-of-pocket and allocated costs incurred by Lender for Collateral audits (i) to the extent reimbursement thereof is required by Lender;
and (ii) to the extent such audits are conducted after the occurrence of a default. 
 6.16 Other Agreements. Borrower is not in breach of or in
default under any agreement to which it is a party or which is binding on it or any of its assets, which such breach or default would have a material adverse effect on its, financial condition or operations. 
 6.17 Agreements with Sellers. Borrower is and will continue to be in full compliance with all agreements between Borrower and any manufacturer or distributor of
Vehicles and all such agreements are in full force and effect. Borrower will comply with any and all applicable repurchase agreements and will take all actions requested by Lender with respect to any such repurchase agreement. 
 6.18 Management. Borrower will maintain executive and management personnel with qualifications and experience at least comparable to current executive and
management personnel. 
 6.19 Notification. Borrower will promptly notify Lender if writing of: 
  

	 	(a)	The occurrence of any default hereunder or under any other Loan Document, and if such default is then continuing, a certificate of Borrower’s chief financial officer or other
authorized officer setting forth the details thereof and the action which it is taking or proposes to take with respect thereto. 

  

	 	(b)	Any claim, lien, lawsuit, administrative proceeding or judgment involving $250,000 or more individually or in the aggregate, that is threatened, instituted or completed against any
Loan Party. 

  

 8 

	 	(c)	Any material change in the relationship between Borrower and any Vehicle manufacturer or distributor including, without limitation, the loss or cancellation, or threatened loss or
cancellation, of a franchise. 

  

	 	(d)	Any material adverse change in the financial condition of any Loan Party. 

  

	 	(e)	Any material change in the condition or location of any collateral securing the Obligations. 

 6.20 Loans and Investments. Borrower shall not make or contract to make any loan, advance or extension of credit to any Person, or acquire any capital stock, assets, obligations, or other securities of,
make any capital contributions to, or otherwise invest in or acquire any interest in any Person, or participate as a partner or joint venture with any other Person except as it relates to actions required between affiliated subsidiaries,
locations or franchisees. 
 6.21 Borrower’s Name, Location; Notice of Location Changes. Borrower’s name and organizational structure
have remained the same during the past five years. Borrower will continue to use only the name set forth on the first page of this Agreement unless borrower gives Lender prior written notice of any changes. Furthermore, Borrower shall not do
business under another name nor use any trade name without giving ten calendar days’ prior written notice to Lender. If Borrower is a registered organization, Borrower will not change its registration to another state without prior written
notice to Lender. Borrower’s address appearing on the signature page hereto is Borrower’s chief executive office (or primary residence if Borrower is a sole proprietor). Borrower will not change its chief executive office (or primary
residence if Borrower is a sole proprietor) without prior written notice to Lender. At Lender’s request, Borrower will provide Lender with evidence that no change in its name, location, jurisdiction of organization or organizational structure
has occurred. 
 6.22 Location of Vehicles. Borrower shall keep all Vehicles only at Borrower’s regular business locations as approved from time
to time by Lender. 
 6.23 Status of Collateral. All Collateral is genuine and validly existing. Except for items of insignificant value or as
otherwise reflected in writing by Borrower to Lender under a borrowing base or otherwise, (i) Collateral constituting inventory, equipment and fixtures is in good condition, not obsolete and is either currently saleable or usable; and
(ii) Collateral constituting accounts, contract rights, notes, chattel paper and other third-party obligations to pay is fully enforceable in accordance with its terms and not subject to return, dispute, setoff, credit allowance or adjustment,
except for discounts for prompt payment. Unless Borrower provides Lender with written notice to the contrary, Borrower has no notice or knowledge of anything that would impair the ability of any third-party obligor to pay any debt to Borrower when
due. 
 6.24 Ownership; Maintenance of Collateral; Restrictions on Liens and Dispositions. Borrower is the sole owner of the Collateral free of
all liens, claims, other encumbrances and security interests except Permitted Liens (defined below). Borrower shall: (i) maintain the Collateral in good condition and repair (reasonable wear and tear excepted), and not permit its value to be
impaired; (ii) not permit waste, removal or loss of identity of the Collateral; (iii) keep the Collateral free from all liens, executions, attachments, claims, encumbrances and security interests (other than Lender’s paramount
security interest and Permitted Liens); (iv) defend the Collateral against all claims and legal proceedings by Persons other than Lender; (v) pay and discharge when due all taxes, levies and other charges or fees upon the Collateral except
for payment of taxes contested by Borrower in good faith by appropriate proceedings so long as no levy or lien has been imposed upon the Collateral; (vi) not lease, sell or transfer the Collateral to any party nor move it to any new location
outside of the ordinary course of business; (vii) not permit the Collateral, without the consent of Lender, to become a fixture or an accession to other goods; (viii) not permit the Collateral to be used in violation of any applicable law,
regulation or policy of insurance; and, (ix) as to the Collateral consisting of instruments and chattel paper, preserve Lender’s rights in it against all other parties. Notwithstanding the above. Borrower may sell, lease or transfer
inventory in the ordinary course of its business provided that no sale, lease or transfer shall include any transfer or sale in satisfaction (partial or complete) of a debt owed by Borrower; title will not pass to buyer until Borrower physically
delivers the goods to buyer or Borrower ships the good F.O.B. to buyer’s destination; and sales and/or leases to Borrower’s affiliates shall be for fair market value, cash on delivery, with the proceeds remitted to Lender. The following
constitute the only “Permitted Liens”: (A) the lien of taxes and assessments which are either not delinquent or which are being contested in good faith with adequate reserve provided; (6) easements, restrictions and
minor title irregularities which do not, as a practical matter, have an adverse effect upon the ownership and use of the affected property, (C) liens in favor of Lender; (D) liens existing on the date of this Agreement and disclosed to
Lender by Borrower in writing or listed on Uniform Commercial Code lien search dated November 7, 2005, except those liens listed on Schedule 1; and (E) purchase money security interests on equipment which secure Permitted
Indebtedness, provided that such security interests cover only the property acquired and secure only the obligation to pay the purchase price of such property and any items referenced in Section 6.7. 
 6.25 Maintenance of Security Interest; Purchase Money Security Interests. Borrower shall take any action requested by Lender to preserve the Collateral, to
establish the value of the Collateral, and to establish the priority of, to perfect, to continue the perfection of or to enforce Lender’s interest in the Collateral and Lender’s rights under this Agreement; and shall pay all costs and
expenses thereof. Borrow shall also cooperate with Lender on obtaining control (for purposes of perfection under the Uniform Commercial Code) of Collateral consisting of deposit accounts, letter of credit rights, electronic chattel paper and any
other collateral where Lender may obtain perfection through control. Borrow and Lender intend to maintain the full effect of any purchase money security interest granted in favor of Lender notwithstanding the fact that the Collateral so purchased is
also pledged as security for other Obligations under the Loan Documents. 
  

 9 

 6.26 Collateral Records, Reports and Statements. Borrower shall keep accurate and complete records
respecting the Collateral in such form as Lender may approve. At such times as Lender may require, Borrower shall furnish to Lender any records and information Lender might require, including, without limitation, a statement certified by Borrower
and in such form and containing such information as may be prescribed by Lender showing the current status and value of the Collateral. 
 6.27
Chattel Paper; Instruments. Chattel paper and instruments (including, without limitation, all drafts, notes, acceptances, and other writings evidencing a right to the payment of money) shall be on forms satisfactory to Lender. Upon
request of Lender, Borrower shall promptly deliver all original chattel paper and instruments to Lender or alternatively, at Lender’s option, shall promptly add a legend to all chattel paper and all instruments indicating that such items have
been “assigned to U.S. Lender National Association”. 
 6.28 Title documents. Lender may at any time, whether or not default has
occurred, require Borrower to deliver all Title Documents to Lender. Until such time, all original Title Documents shall be maintained by Borrower in a manner acceptable to Lender. All Title Documents shall be available for inspection by Lender at
any reasonable time. If required by Lender, Lender’s security interest shall be noted on all certificates of title. Notwithstanding the foregoing, (a) Lender’s security interest shall be noted on the Title Document covering any
Vehicle, if such notation is required to perfect a security interest in such Vehicle, and (b) all warehouse receipts, bills of lading and other negotiable documents of title shall be delivered to Lender. 
 6.29 Landlord Consents. If required by Lender, Borrower shall obtain and deliver to Lender an agreement, release and consent to the security interest of Lender in
the Collateral, in form and substance acceptable to Lender (each a “landlord Consent”) from each owner or landlord of any real property leased by Borrower as lessee. 
 ARTICLE 7. RIGHTS AND DUTIES OF BANK 
 7.1 Authority to Perform for Borrower.
Borrower presently appoints any officer of Lender as Borrower’s attorney-in-fact (coupled with an interest and irrevocable while any Obligations remain unpaid) to do any of the following upon default by Borrower hereunder (notwithstanding any
notice requirements or grace/cure periods under this or other agreements between Borrower and Lender): (i) to file, endorse or place the name of Borrower on any invoice or document of title relating to accounts, drafts against customers, notes,
acceptances, assignments of government contracts, instruments, financing statements, checks, drafts, money orders, insurance claims or payments or other documents evidencing payment or a security interest relating to the Collateral; (ii) to
receive, open and dispose of all mail addressed to Borrower and to notify the post office authorities to change the address for delivery of mail addressed to Borrower to an address designated by Lender; (iii) to do all such other acts and
things necessary to carry out Borrower’s duties under this Agreement and the other Loan Documents; and (iv) to perfect, protect and/or realize upon Lender’s interest in the Collateral. If the Collateral includes funds or property in
depository accounts, Borrower authorizes each of its depository institutions to remit to Lender, without liability to Borrower, all of Borrower’s funds on deposit with such institution upon written direction by Lender after default by Borrower
hereunder. All acts by Lender are hereby ratified and approved, and Lender shall not be liable for any acts of commission or omission, or for any errors of judgment or mistakes of fact or law. 
 7.2 Verification and Notification: Lender’s Rights. Lender may verify Collateral in any manner, and Borrower shall assist Lender in so doing. Upon the
occurrence of a default hereunder, Lender may at any time and Borrower shall, upon request of Lender, notify the account debtors to make payment directly to Lender; and Lender may enforce collection of, sell, settle, compromise, extend or renew the
indebtedness of such account debtors; all without notice to or the consent of Borrower. Until account debtors are so notified, Borrower, as agent of Lender, shall make collections on the Collateral. Lender may at any time notify any bailee
possessing Collateral to turn over the Collateral to Lender. 
 7.3 Collateral Preservation. Lender shall use reasonable care in the custody
and preservation of any Collateral in its physical possession but in determining such standard of reasonable care Borrower expressly acknowledges that Lender has no duty to: (i) insure the Collateral against hazards; (ii) ensure that the
Collateral will not cause damage to property to injury to third parties; (iii) protect it from seizure, theft or conversion by third parties’ claims or acts of God; (iv) give to Borrower any notices received by Lender regarding the
Collateral; (v) perfect or continue perfection of any security interest in favor of Borrower; (vi) perform any services, complete any work-in-process or take any other action in connection with the management or maintenance of the
Collateral or preserve the value of any Collateral; (vii) sue or otherwise effect collection upon any accounts even if Lender shall have made a demand for payment upon individual account debtors; or (viii) preserve any rights against any
prior party to any chattel paper or instrument of which Lender has possession or control. Notwithstanding any failure by Lender to use reasonable care in preserving the Collateral, Borrower agrees that Lender shall not be liable for consequential or
special damages arising therefrom. 
 7.4 Credit Balances; Setoff. As additional security for the payment of the Obligations, Borrower hereby
grants to Lender a security interest in, a lien on and an express contractual right to set off against all depository account balances, cash and any other property of Borrower now or hereafter in the possession of Lender and the right to refuse to
allow withdrawals from any account (collectively “Setoff”). Lender may at any time upon the occurrence of a default hereunder (notwithstanding any notice requirements or grace/cure periods under this or other agreements between Borrower
and Lender) Setoff against the Obligations whether or not the Obligations (including future installments) are then due or have been accelerated, all without any advance or contemporaneous notice or demand of any kind to Borrower, such notice and
demand being expressly waived. 
  

 10 

 7.5 Expenditures by Lender. If Borrower fails to discharge or pay when due any amounts Borrower is required
to pay or discharge under this Agreement or if Borrower fails to obtain and maintain any required insurance, Lender may (but shall not be obligated to) discharge or pay all taxes, liens, security interests, encumbrances and other claims at any tine
levied or placed on the Collateral and pay all costs for insuring, maintaining and preserving the Collateral. Any insurance obtained by Lender may, at Lender’s option, be “single interest insurance” covering only Lender’s
interest in the Collateral. All such expenditures incurred or paid by Lender will become a part of the Obligations and will be payable on demand, together with interest at the highest rate applicable to the Obligations from the date incurred or paid
by Lender to the date of repayment by Borrower. Any action by Lender hereunder shall not be construed as curing any default so as to bar Lender from any remedy that it would otherwise have. 
 ARTICLE 8. DEFAULTS 
  

	8.1	Defaults. Notwithstanding any cure periods described below, Borrower will immediately notify Lender in writing when Borrower obtains knowledge of the occurrence of any
default specified below. Regardless of whether Borrower has given the required notice, the occurrence of one or more of the following will constitute a default: 

  

	 	(a)	Nonpayment. Borrower shall fail to pay (i) any interest of any fees, charges, cost or expenses under the Loan Documents by 5 calendar days after the same becomes due or
(ii) any outstanding principal amount under this Agreement or any of the Loan Documents when due. 

  

	 	(b)	Nonperformance. Borrower or any Guarantor or other Loan Party shall fail to perform or observe any agreement, term, provision, condition, or covenant (other than a default
otherwise specifically described in this Section 8.1) required to be performed or observed by Borrower, any Guarantor or other Loan Part hereunder or under any other Loan Document or other agreement with or in favor of Lender.

  

	 	(c)	Misrepresentation. Any financial information, statement, certificate, representation or warranty given to Lender by Borrower, any Guarantor or other Loan Party (or any of
their representatives) in connection with entering into this Agreement or any other Loan Document and/or any borrowing hereunder or thereunder, or required to be furnished under the terms hereof or thereof, shall prove untrue or misleading in any
material respect (as determined by Lender in the exercise of its judgment) as of the time when given. 

  

	 	(d)	Default on Other Obligations. Borrower or any Guarantor shall be in default under the terms of any loan agreement, promissory note, lease, conditional sale contract or other
agreement, document or instrument evidencing, governing or securing any indebtedness owing by Borrower or any Guarantor to Lender or any affiliate of Lender or U.S. Bancorp, or any indebtedness in excess of $250,000 owing by Borrower or any
Guarantor to any third party, and the period of grace, if any, to cure said default shall have passed. 

  

	 	(e)	Judgment. Any judgment shall be obtained against Borrower or any Guarantor which, together with all other outstanding unsatisfied judgments against Borrower or such
Guarantor, shall exceed the sum of $250,000 (in excess of insurance coverage) and shall remain unvacated, unbonded or unstayed for a period of 30 calendar days following the date of entry thereof. 

  

	 	(f)	Inability to Perform; Bankruptcy/Insolvency. (i) Borrower or any Guarantor shall die or cease to exist or (ii) any Guarantor shall attempt to revoke or repudiate
any Guaranty; or (iii) any Guaranty or other Loan Document ceases to be or is asserted not to be in full force and effect, or becomes or is asserted to be unenforceable; or (iv) any bankruptcy, insolvency or receivership proceedings, or an
assignment for the benefit of creditors, shall be commenced under any federal or state law by or against Borrower or any Guarantor or any other Loan Party; or (v) Borrower or any Guarantor shall become the subject of any out-of-court settlement
with its creditors; or (vi) Borrower or any Guarantor is unable or admits in writing its inability to pay its debts as they mature. 

  

	 	(g)	Adverse Change; Insecurity. (i) There is a material adverse change in the business, properties, financial condition or affairs of Borrower or any Guarantor, or in any
collateral securing the Obligations; or (ii) Lender in good faith deems itself insecure. 

  

	 	(h)	Default under Seller Agreements. Any Loan party fails to pay, perform or comply with any term, condition or obligation in any agreement with any manufacturer, distributor or
other seller of Vehicles, or any such agreement or any repurchase agreement ceases to be, or is asserted by any Person not to be, in full force and effect. 

  

 11 

	 	(i)	Change in Ownership. There is any change in ownership of 49% or more of the capital stock, partnership interests, membership interests or other ownership interests of any
Loan Party in one or more transactions, except, with respect to Borrower, for transfers between Borrower’s current owners. 

  

	8.2	Termination of Loans; Additional Lender Rights. Upon the occurrence of any of the events identified in Section 8.1, Lender may at any time (notwithstanding any notice
requirements or grace/cure periods under this or other agreements between Borrower and Lender) (i) immediately terminate its obligation, if any, to make additional loans to Borrower; (ii) Setoff, and/or (iii) take such other steps to
protect or preserve Lender’s interest in any collateral securing the Obligations, including without limitation, notifying account debtors to make payments directly to Lender, advancing funds to protect any collateral securing the Obligations
and insuring collateral securing the Obligations at Borrower’s expense; all without demand or notice of any kind, all of which are hereby waived. 

  

	8.3	Acceleration of Obligations. Upon the occurrence of any of the events identified in Section 8.1 (other then Section 8.1(f)), and the passage of any applicable cure
periods, Lender may at any time thereafter, by written notice Borrower, declare the unpaid principal balance of any Obligations, together with the interest accrued thereon and other amounts accrued hereunder and under the other Loan Documents, to be
immediately due and payable; and the unpaid balance will thereupon be due and payable, all without presentation, demand, protest or further notice of any kind, all of which are hereby waived. Upon the occurrence of any event under
Section 8.1(f), the unpaid principal balance of any Obligations, together with all interest accrued thereon and other amounts accrued hereunder and under the other Loan Documents, will thereupon be immediately due and payable, all without
presentation, demand, protest or notice of any kind, all of which are hereby waived, and notwithstanding anything to the contrary contained herein or in any of the other Loan documents. Nothing contained in this Article will limit Lender’s
to Setoff as provided in this Agreement or any set off rights otherwise available to Lender in law or by agreement. 

  

	8.4	Additional Remedies. In addition to the remedies for default set forth above or in the other Loan Documents, Lender shall have all other rights and remedies for default
provided by the Uniform commercial Code, as well as any other applicable law, INCLUDING, WITHOUT LIMITATION, THE RIGHT TO REPOSSESS, RENDER UNUSABLE AND/OR DISPOSE OF THE COLLATERAL WITHOUT JUDICIAL PROCESS. The rights and remedies specified herein
are cumulative and are not exclusive of any rights or remedies which Lender would otherwise have. With respect to such rights and remedies: 

  

	 	(a)	Assembling Collateral; Storage; Us of Borrower’s Name/Other Property. Lender may require Borrower to assemble the Collateral and to make it available to Lender at any
convenient place designated by Lender. Borrower recognizes that Lender will not have an adequate remedy in law if this obligation is breached and, accordingly, Borrower’s obligation to assemble the Collateral shall be specifically enforceable.
Lender shall have the right to take immediate possession of any Collateral and Borrower irrevocably authorizes Lender to enter any of the premises wherever Collateral shall be located and to store, repair, maintain, assemble, manufacture, advertise
and sell, lease or dispose of (by public sale or otherwise) the same on said premises until sold, all without charge or rent to Lender. Lender is hereby granted an irrevocable license to use, without charge, Borrower’s equipment, inventory,
labels, patents, copyrights, franchises, names, trade secrets, trade names, trademarks and advertising matter and any property of a similar nature; and Borrower’s rights under all licenses and franchise agreements shall inure to Lender’s
benefit. Further, Borrower releases Lender from Obtaining a Bond or surety with respect to any repossession and/or disposition of the Collateral. 

  

	 	(b)	Notice of Disposition. Written notice, when required by law, sent to any address of Borrower in this Agreement, at least 10 calendar days (counting the day of sending) before
the date of a proposed disposition of the Collateral is reasonable notice. Notification to account debtors by Lender shall not be deemed a disposition of the Collateral. 

  

	 	(c)	Possession of Collateral/Commercial Reasonableness. Lender shall not, at any time, be obligated either to take or retain possession or control of the Collateral. With respect
to Collateral in the possession or control of Lender, Borrower and Lender agree that as a standard for determining commercial reasonableness, Lender need not liquidate, collect, sell or otherwise dispose of any of the Collateral if Lender believes,
in good faith, that disposition of the Collateral would not be commercially reasonable, would subject Lender to third-party claims or liability, that other potential purchasers could be attracted or that a better price could be obtained if Lender
held the Collateral for up to one year; and Lender shall not then be deemed to have retained the Collateral in satisfaction of the Obligations. Lender may sell Collateral without giving any warranties and may specifically disclaim any warranties of
title or the like. Furthermore, Lender may sell the Collateral on credit (and reduce the Obligations only when payment is received from the buyer), at wholesale and/or with or without an agent or broker; and Lender need not complete, process or
repair the Collateral Prior to disposition. 

  

	8.5	Other remedies. Nothing herein is intended to restrict Lender’s rights under any of the Loan Documents or at law, and Lender may exercise all such rights and remedies as
and when they are available. 

  

 12 

 ARTICLE 9. DEFINITIONS 
  

	9.1	Delay; Waiver; Cumulative Remedies. No delay on the part of Lender in exercising any right, power or privilege hereunder or under any of the other loan Documents and no
course of dealing between Borrower and Lender will operate as a waiver of such right, power or privilege, nor will any single or partial exercise of any right, power or privilege preclude other or further exercise thereof or the exercise of any
other right, power or privilege. Lender may waive any default without waiving any other subsequent or prior default. No waiver of any default (whether or not Lender knows or should have known of such default) shall be deemed to have occurred unless
bank has expressly agreed in writing specifying such waiver. No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement shall in any event be effective unless the same shall be in writing and signed and
delivered by Lender. Any waiver of any provision of this Agreement, and any consent to any departure by Borrower from the terms of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for
which given. No notice to or demand on Borrower not required hereunder shall in any event entitle Borrower to any other or further notice or demand in similar or other circumstances or constitute a waiver of the right of Lender to any other or
further action in any circumstances without notice or demand. The rights or remedies which Lender would have at law or in equity or otherwise by agreement. 

  

	9.2	Relationship to Other Documents. The warranties, covenants and other obligations of Borrower (and the rights and remedies of Lender) that are outlined in this Agreement and
the other Loan Documents are intended to supplement each other. In the event of any inconsistencies in any of the terms in the Loan Documents, all terms will be cumulative so as to give Lender the most favorable rights set forth in the conflicting
documents, except that if there is a direct conflict between any preprinted terms and specifically negotiated terms (whether included in an addendum or otherwise), the specifically negotiated terms will control. 

  

	9.3	Participations; Guarantors. Borrower agrees that Lender may, at its option, sell all or any interests in this Agreement and other Loan Documents to other Persons (each a
“Participant”), and in connection with such sales (and thereafter) disclose any information (financial or otherwise) Lender may have concerning Borrower to any such Participant or potential participant. Borrower also agrees that
from time to time, Lender may, in its discretion and without obligation to Borrower, any Guarantor, surety or other accommodation party or any other Loan party. This provision does not obligate Lender to supply any information or release Borrower
from the obligation to provide such information, and Borrower agrees to keep all Guarantors and other Loan Parties advised of its financial condition and other matters which may be relevant to such Guarantor’s or other Loan Party’s
obligations to Lender. 

  

	9.4	Successors. The rights, options, powers and remedies granted in this Agreement and the other Loan Documents will extend to Lender and to its successors and assigns,
will be binding upon Borrower and its successors and assigns and will be applicable hereto and to all renewals and/or extensions hereof. Borrower may not assign or transfer any of its rights or obligations under any Loan Documents without the prior
written consent of Lender. 

  

	9.5	Indemnification. Except for harm arising from Lender’s willful misconduct, Borrower hereby indemnifies and agrees to defend and hold Lender harmless from any and all
losses, costs, damages, claims and expenses of any kind suffered by or asserted against Lender relating to claims by third parties arising out of the financing provided under the Loan Documents or related to any collateral securing the Obligation
(including, without limitation, Borrower’s failure to perform its obligations relating to any environmental matters). This indemnification and hold harmless provision will survive the termination of the Loan Documents and the satisfaction of
the Obligations. 

  

	9.6	Notice of Claims Against Lender; Limitation of Certain Damages. In order to allow Lender to mitigate any damages to Borrower from Lender’s alleged breach of its duties
under the Loan Documents or any other duty, if any, to Borrower, Borrower agrees to give Lender written notice of any claim or defense it has against Lender, whether in tort or contract, relating to any action or inaction by Lender under the Loan
Documents, or the transaction related thereto, or of any defense to payment of the Obligations for any reason. Borrower agrees to provide such notice to Lender within 60 days after Borrower has knowledge of such action or inaction by Lender or
has knowledge of such defense to payment. The requirement of providing such notice to Lender represents Borrower’s agreed-to standard of performance. If Borrower does not timely deliver such notice to Lender, Borrower shall not assert
and shall be deemed to have waived any such claim or defense. Notwithstanding any claim that Borrower may have against Lender, Lender will not be liable to Borrower for consequential and/or special damages arising therefrom.

  

	9.7	Notice. Although any notice required to be given hereunder or under any of the other Loan Documents might be accomplished by other means, notice will always be deemed given
when hand-delivered, deposited in the United States Mail, with postage prepaid, sent by overnight delivery service, or sent by telex or facsimile, in each case to the address set forth below or as amended from time to time by written notice to the
other party or parties to this Agreement. 

  

	9.8	Order of payments; Application of Proceed. Payments due hereunder and under other Loan Documents will be made in lawful money of the United States, and Lender is
authorized to charge payments due under the Loan Documents against any account of Borrower. All payments may be applied by Lender to principal, interest and other amounts due under the Loan Documents in any order which Lender elects.

  

 13 

	9.9	Applicable law and Jurisdiction; Interpretation; Joint and Several Liability. This Agreement and all other Loan Documents will be governed by and interpreted in
accordance with the internal laws of the state of Minnesota, except to the extent superseded by federal law. Invalidity of any provisions of this Agreement will not affect any other provision. BORROWER HEREBY CONSENTS TO THE EXCLUSIVE
JURISDICTION OF ANY STATE OR FEDERAL COURT SITUATED IN THE COUNTY OR FEDERAL JURISDICTION OF BANK’S LOCAL OFFICE, AND WAIVES ANY RIGHT TO CLAIM THAT THE FORUM IS NOT CONVENIENT, WITH REGARD TO ANY ACTIONS, CLAIMSM DISPUTES OR PROCEEDINGS
RELATING TO THIS AGREEMENT, ANY PROMISSORY NOTE, THE COLLATERAL, ANY OTHER LOAN DOCUMENT, OR ANY TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT AND/OR INTERPRETATION OF ANY OF THE FOREGOING. Nothing herein will affect Lender’s rights to
serve process in any manner permitted by law, or limit Lender’s right to bring proceedings against Borrower in the competent courts of any other jurisdiction or jurisdictions. This Agreement, the other Loan Documents and any amendments hereto
(regardless of when executed) will be deemed effective and accepted only upon Lender’s receipt of the executed originals thereof. If there is more than one Borrower, the liability of Borrowers will be joint and several, and each reference to
“Borrower” will be deemed to refer to all Borrowers jointly and severally. 

  

	9.10	Waiver of Jury Trial. BORROWER AND BANK HEREBY JOINTLY AND SEVERALLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING RELATING TO ANY OF THE
LOAN DOCUMENTS, THE OBLIGATIONS THEREUNDER, ANDY COLLATERAL SECURING THE OBLIGATIONS, OR ANY TRANSACTION ARISING THEREFROM OR CONNECTED THERETO. BORROWER AND BANK EACH REPRESENTS TO THE OTHER THAT THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY
GIVEN. 

  

	9.11	Sharing of Information with Affiliates. Borrower hereby consents to the sharing of information concerning or provided by Borrower or its affiliates by and among
Lender, U.S. Bancorp, and their present and future affiliates, and their respective present and future officers, directors, employees, agents and advisors. 

  

	9.12	Additional Acts. Upon request by Lender, Borrower will, and will cause each other Loan party to, from time to time provide such information (including without
limitation copies of Seller Agreements and repurchase agreements), execute such documents and do such acts as my reasonably be required by Lender in connection with any indebtedness or obligations of any Loan Party to Lender.

  

	9.13	Documents Satisfactory to Lender. All information, documents and instruments required to be executed or delivered to Lender shall be in form and substance satisfactory
to Lender. 

  

	9.14	Attachments. All documents attached hereto, including any appendices, schedules, riders, and exhibits to this Agreement, are hereby expressly incorporated into this
Agreement by reference. 

  

	9.15	References. References to this Agreement, and Security Document or any other Loan document shall mean such Loan Document as amended, modified, supplemented or extended
from time to time, and any number of substitutions, renewals and replacements thereof or therefore. 

  

	9.16	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of said counterparts taken
together shall constitute one document. 

  

	9.17	Copies. Borrower hereby acknowledges the receipt of a copy of this Agreement and all other Loan Documents. This Agreement is a “transferable record” as
defined in applicable law relating to electronic transactions. Therefore, Lender may, on behalf of Borrower, create a microfilm or optical disk or other electronic image of this Agreement that is an authoritative copy as defined in such law. Lender
may store the authoritative copy of this Agreement in its electronic form and then destroy the paper original as part of Lender’s normal business practices. Lender, on its own behalf, may control and transfer such authoritative copy as
permitted by such law. 

  

	9.18	Integration. This Agreement supercedes and replaces any previous loan agreements or letters of understanding relating to the matters covered by this Agreement. This
Agreement and the promissory notes, if any, executed by Borrower in connection with this Agreement may renew promissory notes previously executed by Borrower but shall not be deemed to be in satisfaction of, or to constitute a novation of, such
previously executed promissory notes. Except as amended, renewed, or replaced in writing prior to or concurrently with this Agreement, all terms and conditions of any existing Loan Documents remain in full force and effect. 

 

 14 

	9.19	Entire Agreement; Modification. This agreement constitutes the entire understanding and agreement of the parties as to the matters set forth herein. No modification or
amendment to this Agreement shall be effective unless in writing signed by the party or parties sought to be charged or bound by such modification or amendment. 

 IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY
BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE SHALL ALSO BE EFFECTIVE WITH RESPECT TO ALL OTHER CREDIT AGREEMENTS NOW IN EFFECT BETWEEN YOU AND THIS BANK. A MODIFICATION OF ANY OTHER
CREDIT AGREEMENTS NOW IN EFFECT BETWEEN YOU AND THIS BANK, WHICH OCCURS AFTER RECEIPT BY YOU OF THIS NOTICE, MAY BE MADE ONLY BY ANOTHER WRITTEN INSTRUMENT ORAL OR IMPLIED MODIFICATIONS TO SUCH CREDIT AGREEMENTS ARE NOT ENFORCEABLE AND SHOULD NOT BE
RELIED UPON. 
  

 15 

									
	ASSET LIQUIDATION GROUP, INC.	 		 	ROSEDALE LEASING LLC
			
	 X

	 		 	 X

	By:	 	Corey P. Schlossmann	 		 	By:	 	Erik P. Dove
	Title:	 	CEO	 		 		 	Vice President

									
					
	Address:	 	13005 Temple Avenue	 		 	Address:	 	500 Ford Road
		 	City of Industry, CA 91746	 		 		 	Minneapolis, MN 55426
					
	Telecopier:	 	(626) 217-1210	 		 	Telecopier:	 	(952) 512-8942

									
				
	PUBLIC LIQUIDATION SYSTEMS, INC.	 		 		 	
				
	 X

	 		 		 	
	By:	 	Corey P. Schlossmann	 		 		 	
	Title:	 	CEO	 		 		 	

							
				
	Address:	 	13005 Temple Avenue	 		 	
		 	City of Industry, CA 91746	 		 	
				
	Telecopier:	 	(626) 217-1210	 		 	

  

 16Asset Purchase Agreement

 EXHIBIT 10.32 
 ASSET PURCHASE AGREEMENT 
 By and Between 
 COGENT FINANCIAL GROUP 
 a California
corporation, 
 as Seller, 
 And 
 COGENT ACQUISITION COMPANY, LLC 
 a Delaware limited liability company 
 as Buyer 
 Dated as of 
 March 14, 2007 

 ASSET PURCHASE AGREEMENT 
 ASSET PURCHASE AGREEMENT (this “Agreement”) dated as of March 14, 2007, by and between Cogent Acquisition Company, LLC, a Delaware limited
liability company, (“Buyer”), and Cogent Financial Group, a California corporation (“Seller”). 
 RECITALS: 
 A. Seller is engaged in activities of a consumer financial servicer and owns the residual interest in certain consumer obligations and certain other
assets relating to the servicing of such consumer obligations. 
 B. Substantially all assets of Seller, including the consumer obligations,
are encumbered by a first and senior security interest in favor of SageCrest, except with respect to certain accounts assigned to or encumbered by an interest in favor of Dubhe I, LLC, a Delaware limited liability company. The amount of the
indebtedness owed by Seller to SageCrest is not less than the Purchase Price (as provided herein). 
 C. Seller desires to transfer certain
of its assets to Buyer and Buyer desires to purchase certain of Seller’s assets for the consideration provided herein. 
 D. Seller is
not transferring and Buyer is not assuming any Liabilities (as defined herein) of Seller, except for the Assumed Liabilities. 
 NOW
THEREFORE, in consideration of the foregoing, of the mutual promises, covenants and conditions of the parties herein set forth, and for other good and valuable consideration, the receipt and adequacy of which the parties do hereby acknowledge,
the parties agree as follows: 
 SECTION 1. DEFINITIONS 
 As used herein, the following words and terms shall have the meanings ascribed to them below: 
 “Account Collateral” shall have the meaning ascribed to it in Section 2.l(e). 
 “Accounts”
shall have the meaning ascribed to it in Section 2.l(c). 
 “Assumed Employee Liabilities” shall have the meaning
ascribed to it in Section 2.2(a). 
 “Assumed Liabilities” means those Liabilities identified in Section 2.2.

 Buyer” shall mean Cogent Acquisition Company, a Delaware limited liability company. 
 “Buyer’s Affiliates” shall have the meaning ascribed to it in Section 10.2. 
 “Claim” shall have the meaning ascribed to it in Section 10.2. 
  

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 “Closing” shall have the meaning ascribed to it in Section 11.1. 
 “Closing Date” shall mean the date that the Closing occurs. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended, or any regulations thereunder. 
 “Confidential Information” shall mean and include, without limitation all information concerning a Person’s products, costs,
prices, sales marketing and distribution methods, properties and assets, liabilities, finances, employees, customer and vendor lists and related information, and all other information not previously disclosed to the public directly by the Person.
“Confidential Information” shall not include any Confidential Information to the extent that such Confidential Information: (i) is generally known to the public at the time of disclosure or becomes generally known through no wrongful
act on the part of the Person charged with preserving the confidentiality of such Confidential Information; (ii) was known by the Person charged with preserving the confidentiality of such Confidential Information prior to the disclosure to
such Person of the Confidential Information; (iii) becomes known to the Person charged with preserving the confidentiality of such Confidential Information through disclosure by sources, other than such Person or its affiliates or professional
advisers, having the legal right to disclose such Confidential Information; or (iv) is required to be disclosed by the Person charged with preserving the confidentiality of such Confidential Information to comply with applicable Law; provided,
that the such Person provides prior written notice of such disclosure to the Person to which such Confidential Information relates, and takes reasonable and lawful actions to avoid and/or minimize the extent of such disclosure. 
 “Dubhe” has the meaning ascribed in the recitals hereto. 
 “Dubhe Accounts” shall have the meaning ascribed to it in Section 3.l(b). 
 “Employee Plans/Agreements” shall have the meaning ascribed to it in Section 6.11. 
 “Financial
Statements” shall have the meaning ascribed to it in Section 6.5. 
 “GAAP” shall mean generally accepted
accounting principles consistently applied. 
 “Governmental Entity” shall mean any court, arbitration, department,
commission, legislature, board, bureau, agency, authority, instrumentality or other body, whether federal, state, municipal, foreign, quasi-governmental agency or self-regulatory authority. 
 “Indemnified Party” shall have the meaning ascribed to it in Section 10.4(a). 
 “Indemnifying Party” shall have the meaning ascribed to it in Section 10.4(a). 
 “Law” shall mean any law, statute, rule, regulation, ruling, decision, caselaw, ordinance, decree, order or any other official act of
any Governmental Entity. 
 “Liability” or “Liabilities” shall mean and include any direct or indirect
indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation or responsibility, fixed or unfixed, known or unknown, contingent, asserted or unasserted, liquidated or unliquidated, secured or unsecured, accrued or
not accrued. 
  

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 “Lien” shall mean any mortgage, lien, security interest, pledge, encumbrance, charge
whether statutory or otherwise. 
 “Litigation” shall have the meaning ascribed to it in Section 6.13. 
 “Material Adverse Effect” shall mean a material adverse effect (a) on the business, assets, condition (financial or otherwise), or
in the results of operations; (b) on the ability of a party to perform under this Agreement or any other agreement or document contemplated hereunder; or (c) upon the legality, validity, binding effect or enforceability against a party
hereto of this Agreement or any other agreement or document contemplated hereunder. Each determination of whether a Material Adverse Effect has occurred shall be made in good faith by the person or persons making such determination and shall take
into account all relevant facts and circumstances existing as of the date of determination. 
 “PAL” means Paramount
Alliance Limited, a California corporation. 
 “Person” shall mean any individual, corporation, partnership, joint venture,
association, joint stock company, limited liability company, trust, unincorporated organization or any government or agency or political subdivision thereof. 
 “Premises” shall mean those premises covered by the Premises Lease. 
 “Premises
Lease” shall have the meaning ascribed to such real property lease identified on Schedule 2.1(b) . 
 “Provider Assignment
Agreements” shall have the meaning ascribed to it in Section 2.l(f). 
 “Purchase Price” shall have the
meaning ascribed to it in Section 4.1. 
 “Purchase Price Accounts” shall mean those certain Accounts that are not in
default designated by Buyer and approved by Seller (which approval shall not be unreasonably withheld) for which the aggregate original purchase price paid to the assignors of such accounts is the sum of $390,000.00, identified on Schedule 6.9(j).

 “Purchased Assets” shall have the meaning ascribed to them in Section 2.1. 
 “Purchased Books and Records” shall have the meaning ascribed to them in Section 2.1(o). 
 “SageCrest” shall mean SageCrest II, LLC a Delaware limited liability company.  
 “SageCrest Entities” shall have the meaning ascribed to it in Section 11.2(f) .  
 “Schlegel” shall mean Theodore Schlegel, an individual. 
  

 3 

 “Securities Act” shall mean the Securities Act of 1933, as amended, and all rules and
regulations promulgated thereunder. 
 “Seller’s Affiliates” shall have the meaning ascribed to it in
Section 10.3.  
 “Seller Employees” shall have the meaning ascribed to it in Section 6.11(a) .  

 “Seller Contracts” shall have the meaning ascribed to it in Section 2.1(b). 
 “Knowledge” shall mean an individual shall be deemed to have knowledge of a particular fact or matter if: (a) the individual either
Schlegel, Alice Nothern, Doug Swets, or Justin Betance, or an employee who would be reasonably expected to report such Knowledge to an officer, director, or manager, and (b) either (i) that individual is actually aware of that fact or
matter, and (ii) a prudent business person could be expected to discover or otherwise become aware of that fact or matter in the course of exercising reasonable care in conducting its business or operating the assets of the business, or
conducting a reasonable investigation regarding the accuracy of any such fact or matter. 
 “Taxes” shall mean any federal,
state, local or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability,
real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.

 “$390,000 Investors” shall mean, collectively, those individuals or entities who are the beneficiaries of certain debt
instruments owed by Seller in an aggregate principal sum of approximately $390,000, identified on Schedule 6.9(j). 
 “Trade
Rights” shall mean and include: (A)(i) all trademark rights, business identifiers, trade dress, service marks, trade names, and brand names; (ii) all copyrights and all other rights associated therewith and the underlying works of
authorship; (iii) all contracts or agreements granting any right, title, license or privilege under the intellectual property rights of any third party; (iv) all know-how, discoveries, improvements, designs, trade secrets, employee
covenants and agreements respecting intellectual property and non-competition and all other types of intellectual property; and (v) all registrations of any of the foregoing, all applications therefor, all goodwill associated with any of the
foregoing, and all claims for infringement or breach thereof, and (B) all telephone numbers (business, cell, and facsimile), internet domain names and sites, and rights to mail or post office boxes or services. 
 “Transfer” shall mean any transfer, assignment, sale, hypothecation, pledge, gift or other disposition. 
 SECTION 2. ASSETS ACQUIRED; LIABILITIES ASSUMED 
 2.1 Assets Acquired. Seller agrees to sell, assign, grant, transfer, and deliver to Buyer (and to the extent PAL is required to act, shall cause PAL to sell, assign, grant, transfer and deliver to Buyer), and Buyer agrees to
purchase, acquire and accept from Seller, on the terms and conditions set forth in this Agreement, the following assets (“Purchased Assets”): 
 (a) All of Seller’s rights, title and interest in the equipment, furniture and fixtures owned, utilized or held for use by Seller listed on Schedule 2.l(a). 
  

 4 

 (b) All of Seller’s rights, title and interest under certain leases and contracts (other than those
referred to in Section 2.l(c) below) listed on Schedule 2.l(b), but only to the extent that such contracts are assumable by Buyer pursuant to the terms of such contracts (the “Seller Contracts”). Buyer, at its sole discretion, shall
be permitted to exclude any contract or lease from Schedule 2.l(b) within 30 days after the Closing Date by providing Seller notice of such exclusion. Notwithstanding the foregoing, Buyer shall be responsible for those certain Seller Contracts as
specifically designated as mandatory Seller Contracts in Schedule 2.l(b). 
 (c) All of Seller’s rights, title and interest in the
consumer accounts listed on Schedule 2.l(c) (collectively with the Account Collateral, the “Accounts”). 
 (d) All of Seller’s
rights to service the Accounts. 
 (e) All of Seller’s and PAL’s rights, title and interest (a) to claims, causes of action,
judgments, liens, and similar rights relating to recovery of the Accounts, and (b) in assets that are the subject of such Accounts or that constitute security interests or other interests in assets that are collateral for such Accounts,
including without limitation all motor vehicles, original documentation relating to such rights and interests, including certificates of title, and all rights to recover upon or take any act with respect to such interests or assets, identified on
Schedule 2.l(e), other than those identified on Schedule 3.1 (collectively, the “Account Collateral. 
 (f) All of Seller’s and
PAL’s rights, title and interest in contracts and agreements with assignors of retail installment sale contracts and accounts providing for the assignment of such contracts and accounts, existing as of the Closing Date as identified on Schedule
2.l(f), other that those identified on Schedule 3.1 (“Provider Assignment Agreements”). 
 (g) All of Seller’s rights, title
and interest in leasehold improvements installed or purchased by Seller in or on the Premises. 
 (h) All of Seller’s rights, title and
interest in any Trade Rights identified in Schedule 6.12(a) and any and all derivations thereof, and all rights to use or allow others to use such name(s) and/or derivations, other than those certain Trade Rights identified on Schedule 6.12(b).

 (i) All of Seller’s rights, title and interest in computer source codes, programs and other software of Seller, including all machine
readable code, printed listings of code, documentation and related property and information of Seller related to servicing the Accounts. 
 (j) [Intentionally omitted.] 
  

 5 

 (k) All of Seller’s and PAL’S rights, title and interest in deposits, whether in the possession
of Seller, or PAL, or third parties, pursuant to any contract or agreement, including the deposit in connection with the Premises Lease, including without limitation such deposits identified on Schedule 2.l(k)(i), but excluding the deposits and
funds identified on Schedule 3.1. 
 (1) All of Seller’s rights, title and interest in those certain, lock box and cash management
accounts and agreements and related collection services and mail and post offices boxes, and other agreements with financial institutions, banks and service providers for the handling of funds, including without limitation such deposits accounts and
arrangements listed on Schedule 2.1(1). 
 (m) All of Seller’s rights, title and interest in notes receivable and any other obligation
in favor of Seller existing as of the Closing Date not otherwise excluded on Schedule 3.1(c) identified in Schedule 2.l(m), including without limitation that certain note payable in the principal amount of $338,170.78 by Douglas Garcia that is due
and payable to Seller. 
 (n) All of Seller’s rights, title and interest in cash and cash equivalents existing as of the Closing Date,
including without limitation all funds in the deposit accounts and cash management accounts identified in Schedule 2.1(1) as of the Closing Date, and all security deposits, all as identified on Schedule 2.1(n), excluding such cash and cash
equivalent identified on Schedule 3.1. 
 (o) Subject to Section 13, all of Seller’s books and records relating to the Accounts
and/or the servicing of the Accounts (the “Purchased Books and Records”). 
 2.2 Assumed Liabilities. Buyer shall assume and
be liable for only the following debts, contracts, agreements, commitments, obligations, and Liabilities of Seller (“Assumed Liabilities”): 
 (a) Accrued sick leave and vacation benefits of Seller’s employees as of the Closing Date and the severance pay owing to Douglas B. Swets as of the Closing Date but in each case only as specifically listed and in
such amounts as set forth on Schedule 2.2(a) (“Assumed Employee Liabilities”). 
 (b) All security deposits paid by Account debtors
in connection with the Accounts as identified on Schedule 2.2(b). 
 (c) Any sales or transfer Taxes attributable to or arising from the
transfer of the Purchased Assets by Seller to Buyer, and excluding without limitation income and franchise taxes of the Seller. 
 (d) The
payments in Schedule 2.2(d) for obligations of Seller through the Closing Date. 
 (e) Liabilities arising solely under a Purchased Asset,
but only to the extent such Liabilities accrue from and after the Closing Date and are otherwise expressly assumed hereunder. 
  

 6 

 (f) All of the Liabilities listed on Schedule 2.2(f). 
 SECTION 3. EXCLUDED ASSETS AND LIABILITIES 
 3.1
Excluded Assets. Excluded from this sale and purchase are any properties or assets that are not Purchased Assets including, but not limited to, (a) the items otherwise located in the Premises listed on the attached Schedule 3.l(a),
(b) any Account listed on Schedule 3.l(b), including without limitation the accounts or obligations that are subject to a senior interest in favor of Dubhe as identified on Schedule 3.l(b)(i) (the “Dubhe Accounts”); and (c) all
other items listed on Schedule 3.l(c). 
 3.2 Excluded Liabilities. Other than the Assumed Liabilities, Buyer shall not assume and
shall not be liable for, and Seller shall retain and remain solely liable for and obligated to discharge, all of the debts, contracts, agreements, commitments, obligations and any other Liability of Seller but only if and to the extent accruing
prior to the Closing Date, including, without limitation, the following: 
 (a) Any Liability for breaches by Seller of any contract or any
other instrument, contract or purchase order or any liability for payments or amounts due under any contract, agreement, lease, license, commitment or any other instrument, contract or purchase order; 
 (b) Any Liability or obligation for Taxes attributable to or imposed upon Seller for any period, or attributable to or imposed upon the Accounts;

 (c) Any Liability or obligation for or in respect of any loan, other indebtedness for money borrowed, or account payable of Seller;

 (d) Any Liability or obligation arising as a result of any legal or equitable action or judicial or administrative proceeding initiated at
any time, to the extent relating to any action or omission by or on behalf of Seller, including, without limitation, any Liability for violation of any consumer lending Law, violations of federal or state securities or other Laws; 
 (e) Any Liability or obligation arising out of any “employee benefit plan,” as such term is defined by the Employee Retirement Income Security
Act of 1974 (“ERISA”) or other employee benefit plans; 
 (f) Any Liability or obligation for making payments of any kind
(including as a result of the termination of employment by Seller of employees, or other claims arising out of the terms and conditions of employment with Seller, or for vacation or severance pay or otherwise) to employees of Seller or in respect of
payroll taxes for employees of Seller; 
 (g) Any Liability or obligation for making payments of any kind with respect to any Excluded Asset,
whether to customers, lenders, vendors, employees, borrowers or other third parties; 
 (h) Any Liability or obligation of Seller incurred in
connection with the making or performance of this Agreement and the transactions contemplated hereby; 
  

 7 

 (i) Any Liability or obligation for trade accounts or debts; 
 (j) Any Liability or obligation to Seller’s borrowers or accrued debtors under any Account or Excluded Asset; 
 (k) Any Liability or obligation under any Seller Contract that arises after the Closing that relates to a breach of such Seller Contract by Seller that
occurred prior to the Closing; 
 (1) Any Liability or obligation under any of the Employee Plans/Agreements of Seller; 
 (m) Any Liability or obligation arising out of or relating to any employee grievance; and 
 (n) Any Liability or obligation to indemnify, reimburse, or advance payments to any officer, director, employee or agent of Seller. 
 SECTION 4. PURCHASE PRICE - PAYMENT 
 4.1
Purchase Price. The purchase price (the “Purchase Price”) for the Purchased Assets shall be the sum of (a) $55,024,768.07 and, (b) the aggregate sum of the original provider paid amounts of the Purchase Price Accounts.

 4.2 Payment of Purchase Price. The Purchase Price set forth in Section 4.l(a) shall be paid by Buyer by delivery by Buyer to
SageCrest on behalf of Seller; and the Purchase Price set forth in Section 4.1(b) shall be paid by delivery of the Purchase Price Accounts to Seller for the sole benefit of the $390,000 Investors identified on Schedule 6.9(j) to satisfy and
retire any debt owed to the $390,000 Investors. 
 SECTION 5. NO SUCCESSOR AND FRAUDULENT TRANSFER 
 5.1 Seller acknowledges that (i) Seller has received adequate consideration for the Purchased Assets; (ii) Buyer will not have any
corporate management, officers or directors in common with Seller; and (iii) Seller is not receiving any equity in Buyer 
 5.2
Seller is not entering into this Agreement or any of the other agreements referenced in this Agreement with the intent to defraud, delay or hinder its creditors. 
 SECTION 6. REPRESENTATIONS AND WARRANTIES OF SELLER 
 Seller makes the following representations and
warranties to Buyer, each of which is true and correct on the date hereof, which shall remain true and correct to and including the Closing Date. 
 6.1 Corporate Existence. Except as identified in Schedule 6.1, Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of California. Seller has all requisite corporate power and
authority to own or lease, and to operate its assets, and to carry on its business as now being conducted to enter into this Agreement and the other documents and 

  

 8 

 
instruments to be executed and delivered by Seller pursuant hereto and to carry out the transactions contemplated hereby and thereby. Seller is duly licensed
or qualified to do business as a foreign corporation, and is in good standing, in each jurisdiction wherein the character of the properties owned or leased by it, or the nature of its business, makes such licensing or qualification necessary.

 6.2 Authorization. The execution, delivery, and performance of this Agreement have been duly authorized and approved by all
requisite corporate action on the part of Seller, and this Agreement constitutes a valid and binding agreement of Seller enforceable against Seller in accordance with its terms. 
 6.3 No Violation. Seller’s execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby
will not (i) violate Seller’s Articles of Incorporation or Bylaws; (ii) violate any Law applicable to Seller or its assets, nor, will it violate or conflict with, or constitute a default, or result in the creation of any Lien on any
of the Purchased Assets under any note, contract or other agreement or instrument to which Seller is a party or by which Seller or its assets are bound, the violation of which shall have a Material Adverse Effect, or (ii) (except for consents
to be acquired prior to the Closing), require any authorization, consent, approval, exemption or other action by or notice by or to any Government Entity or third party, the failure to obtain which shall have a Material Adverse Effect. 

6.4 Assigned Agreements. Seller has no knowledge of any facts that would establish that Seller Contracts (including all the agreements relating
to the Accounts and servicing of the Accounts) and Provider Assignment Agreements were not entered into in the ordinary course of Seller’s business and are not in full force and effect in accordance with their terms. Except as set forth in
Schedule 6.4, Seller is not in default of any Seller Contract or Provider Assignment Agreement. Except as set forth in Schedule 6.4, Seller has all requisite corporate power and authority to assign to Buyer the rights of Seller under the Accounts
and the service rights to the Accounts, Provider Assignment Agreements and subject to the terms of the Seller Contracts, all other Seller Contracts. 
 6.5 Financial Statements. Seller has delivered to Buyer true and complete copies of the financial statements of Seller consisting of (i) balance sheet of Seller as of December 31, 2006, and the
related statement of income and cash flow for the year then ended (including the notes contained therein or annexed thereto), a complete and accurate copy of which is attached as Schedule 6.5 (“Financial Statements”). The Financial
Statements (subject to normal year end adjustments and absence of footnotes) (including all notes and schedules contained therein or annexed thereto) are true, complete and accurate, have been prepared in accordance with GAAP, have been prepared in
accordance with the books and records of Seller, and Fairly present, in accordance with GAAP, the assets, liabilities and financial position, the results of operations and cash flows of Seller as of the dates and for the years and periods indicated.
The financial books and records are true and correct in all material respects. 
  

 9 

 6.6 Tax Matters 
 (a) Provisions For Taxes. Except as set forth in Schedule 6.6 (a), the provisions made for Taxes on the Financial Statements is sufficient for the payment of all Taxes, whether or not disputed at the date of
the Financial Statements. Since the date of the Financial Statements, Seller has not incurred any Taxes other than Taxes incurred in the ordinary course of business consistent in type and amount with past practices of Seller. 
 (b) Tax Returns Filed. Except as set forth for Schedule 6.6 (b), all Tax returns required to be filed by or on behalf of Seller have been timely
filed and when filed were true and correct in all material respects, and the Taxes shown as due thereon were paid or adequately accrued. Seller has duly withheld and paid all Taxes which it is required to withhold and pay relating to salaries and
other compensation heretofore paid to the employees of Seller. 
 (c) Tax Audits. Except as set forth for Schedule 6.6 (c), the
federal and state income tax returns of Seller have not been audited by the Internal Revenue Service or any state taxing authorities and Seller has not received from the Internal Revenue Service or from the tax authorities of any state, county,
local or other jurisdiction any notice of underpayment of taxes or other deficiency which has not been paid nor any objection to any return or report filed by Seller. There are outstanding no agreements or waiver extending the statutory period of
limitations applicable to any tax return or report. 
 (d) Other. Seller has not (i) applied for any tax ruling,
(ii) entered into a closing agreement with any taxing authority, (iii) filed an election under Section 338(g) or Section 338(h)(l0) of the Code (nor has a deemed election under Section 338(e) of the Code occurred), or
(iv) been a party to any tax allocation or tax sharing agreement. 
 6.7 Absence of Undisclosed Liabilities. Except as and to the
extent specifically disclosed in the Financial Statements or in Schedule 6.7, Seller does not have any Liabilities other than commercial liabilities and obligations incurred since the date of the Financial Statements in the ordinary course of
business and consistent with past practice and none of which has or will have a Material Adverse Effect. Except as and to the extent described in the Financial Statements, Seller, without any independent investigation, has no Knowledge of any basis
for the assertion against Seller of any Liability and there are, to Seller’s Knowledge, no circumstances, conditions, happenings, events or arrangements, contractual or otherwise, which may give rise to Liabilities, except commercial
liabilities and obligations incurred in the ordinary course of Seller’s business and consistent with past practice. 
 6.8 Compliance
With Laws and Permits. 
 (a) Compliance. Seller to its knowledge (including each and all of its operations, practices, properties
and assets) is in compliance with all applicable Laws, including, without limitation, those applicable to consumer lending transactions, discrimination in employment, occupational safety and health, trade practices, competition and pricing, zoning,
building and sanitation, employment, retirement and labor relations, and product advertising Laws, except where the failure to so comply will not have a Material Adverse Effect. Seller has not received notice of any violation or alleged violation
of, and to its knowledge is subject to no Liability for past or 

  

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continuing violation of, any Laws. To Seller’s knowledge, no event has occurred or circumstance exists that may constitute or result in a violation by
Seller of, or a failure on the part of Seller to comply with any Law, except where the failure to so comply will not have a Material Adverse Effect. All reports and returns required to be filed by Seller with any Government Entity have been filed,
and were accurate and complete when filed, except where the failure to so comply will not have a Material Adverse Effect. 
 (b) Licenses
and Permits. Seller has all licenses, permits, approvals, authorizations and consents of all Government Entities and all certification organizations required for the conduct of the business (as presently conducted) and operation of the Premises,
except where the failure to so obtain such licenses, permits, approvals, authorizations, and consents will not have a Material Adverse Effect. Seller (including its operations, properties and assets) is and has been in compliance with all such
permits and licenses, approvals, authorizations and consents. 
 6.9 Title; Accounts; Account Collateral; Other Assets. 
 (a) Marketable Title. Except as set forth on Schedule 6.9: (i) Seller has good and marketable title to all the Purchased Assets, free and
clear of all Liens; and (ii) subject to the terms of the Seller Contracts with respect to the Seller Contracts, (A) none of the Purchased Assets are subject to any restrictions with respect to the transferability thereof; (B) Seller
has complete and unrestricted power and right to sell, assign, convey and deliver the Purchased Assets to Buyer as contemplated hereby, and (C) at Closing, Buyer will receive good and marketable title to all the Purchased Assets, free and clear
of all Liens of any nature whatsoever except as set forth on Schedule 6.9(a). 
 (b) Accounts Generally. Seller has the complete and
unrestricted power and the unqualified right to sell, assign and deliver the servicing of the Accounts to Buyer. Upon consummation of the transactions contemplated by this Agreement, Buyer will acquire the right to service the Accounts free and
clear of any Liens and there exists no restriction to Seller on the use or transfer of the Accounts to Buyer. No Person other than Seller has any right or interest in the Accounts, including the right to grant interests in Accounts to third parties.
No restrictions will exist as of the Closing Date that would operate to restrict Buyer’s right to resell the servicing of the Accounts. 
 (c) Accounts. Schedule 2.l(c) identifies all accounts and other obligations that are subject to the senior interests of SageCrest, Schedule 3.l(b)(i) identifies all of the Dubhe Accounts, and Schedule 3.l(b) together with Schedules
2.l(c) and 3.l(b)(i) identify all of the accounts and other obligations owed to SageCrest, Cogent, Dubhe, or other parties serviced by Cogent as of the Closing Date, including the Accounts. 
 (d) Providers Agreements. Schedules 2.l(f) and 3.l(c) together identify all of the Provider Assignment Agreements between assignors of accounts
receivable and either Cogent or parties for whom Cogent is servicing accounts receivable. 
 (e) Security Deposits. Schedules 2.1(n)
and 3.l(c) together identify all of the security deposits and obligations owed or potentially owed by Cogent to third parties. 
  

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 (f) Account Collateral. Schedule 2.l(e) identifies all of the Account Collateral, including
without limitation all Account Collateral consisting of motor vehicles, existing as of the Closing Date, the location of all such Account Collateral, and the location and possessor of certificates of title relating to such Account Collateral, and to
the extent Account Collateral is indicated on Schedule 2.l(e) as repossessed and sold (or that Seller does not hold title), that Seller has actually received proceeds of such Account Collateral. 
 (g) Notes Receivables and Obligations. Schedule 2.1(m) and 3.1(b) identifies all of the notes receivable and other obligations owed to Seller as
of the Closing Date. 
 (h) No Representation Regarding Account Status. Seller does not make any representation with respect to the
current status of the Accounts as of the Closing Date. 
 (i) $390,000 Investors. Schedule 6.9(j) identifies all of the present
$390,000 Investors and all of the notes held by the $390,000 Investors. 
 6.10 Labor Matters. Seller has not experienced any labor
disputes, union organization attempts or any work stoppage due to labor disagreement in connection with its business. (a) Seller is in compliance with all applicable Laws respecting employment and employment practices, terms and conditions of
employment and wages and hours, except where the failure to so comply will not have a Material Adverse Effect, and is not engaged in any unfair labor practice; (b) there is, no unfair labor practice charge or complaint against Seller pending or
threatened; (c) there is no labor strike, dispute, request for representation, slowdown or stoppage actually pending or threatened against or affecting Seller; (d) no grievance which might have a Material Adverse Effect, nor any
arbitration proceeding arising out of or under collective bargaining agreements, is pending and no such basis for a claim therefor exists; and (e) there are not, administrative charges or court complaints against Seller concerning alleged
employment discrimination or other employment related matters pending or threatened before the U.S. Equal Employment Opportunity Commission or any Government Entity. 
 6.11 Employee Benefit Plans. 
 (a) Disclosure. The term “Employee Plans/Agreement”
means all pension, thrift, savings, profit sharing, retirement, incentive bonus or other bonus, medical, dental, life, accident insurance, benefit, employee welfare, disability, group insurance, stock purchase, stock option, stock appreciation,
stock bonus, executive or deferred compensation, hospitalization and other similar fringe or employee benefit plans, programs and arrangements, and any employment or consulting contracts, “golden parachutes,” collective bargaining
agreements, severance agreements or plans, vacation and sick leave plans, programs, arrangements and policies, including, without limitation, all “employee benefit plans” (as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”)), all employee manuals, and all written or binding oral statements of policies, for the benefit of, or relate to, any persons (“Seller Employees”) employed by Seller. No Employee
Plan/Agreement is a “multiemployer plan” (as defined in Section 4001 of ERISA), and Seller has never contributed nor been obligated to contribute to any such multiemployer plan. 
  

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 (b) Terminations, Proceedings, Penalties, etc. Seller has no Employee Plan/Agreement subject to
the provisions of Title IV of ERISA. 
 (c) Prohibited Transactions, etc. There have been no “prohibited transactions”
within the meaning of Section 406 or 407 of ERISA or Section 4975 of the Code for which a statutory or administrative exemption does not exist with respect to any Employee Plan/Agreement, and no event or omission has occurred in connection
with which Seller or any of its assets or any Employee Plan/Agreement, directly or indirectly, could be subject to any Liability under ERISA, the Code or any other Law applicable to any Employee Plan/Agreement, or under any agreement, instrument,
Law pursuant to which Seller is required to indemnify any person against liability incurred under any such Law or Order. 
 (d) Controlled
Group; Affiliated Service Group: Leased Employees. Seller is not and never has been a member of a controlled group of corporations as defined in Section 414(b) of the Code or in common control with any unincorporated trade or business as
determined under Section 414(c) of the Code. Seller is not and never has been a member of an “affiliated service group” within the meaning of Section 414(m) of the Code. There are not and never have been any leased employees
within the meaning of Section 414(n) of the Code who perform services for Seller, and no individuals are expected to become leased employees with the passage of time. 
 (e) Payments and Compliance. Except as set forth in Schedule 6.1l(e), with respect to each Employee Plan/Agreement, (i) all payments due from
Seller to date have been made and all amounts properly accrued to date as a Liability of Seller which have not been paid have been properly recorded on the books of Seller and are reflected in the Financial Statements; (ii) Seller has complied
with, and each such Employee Plan/Agreement conforms in form and operation to, all Laws, including but not limited to ERISA and the Code, in all respects and all reports and information relating to such Employee Plan/Agreement required to be filed
with any Governmental Entity have been timely filed,; (iii) all reports and information relating to each such Employee Plan/Agreement required to be disclosed or provided to participants or their beneficiaries have been timely disclosed or
provided; and (iv) there are no actions, suits or claims pending (other than routine claims for benefits) or threatened with respect to such Employee Plan/Agreement, except where the failure to comply with the foregoing will not have a Material
Adverse Effect. 
 (f) Post-Retirement Benefits. Except as set forth in Schedule 6.11(e), no Employee Plan/Agreement provides
benefits, including, without limitation, death or medical benefits (whether or not insured) with respect to current or former Seller Employees beyond their retirement or other termination of service other than (i) coverage mandated by
applicable law, (ii) death or retirement benefits under any Employee Plan/Agreement that is an employee pension benefit plan, (iii) deferred compensation benefits accrued as liabilities on the books of Seller (including the Financial
Statements), (iv) disability benefits under any Employee Plan/Agreement that is an employee welfare benefit plan and which have been fully provided for by insurance or otherwise or (v) benefits in the nature of severance pay. 

(g) No Triggering of Obligations. Except as provided for in Schedule 6.1l(g), the consummation of the transactions contemplated by this
Agreement will not (i) entitle any current or former employee of Seller to severance pay, or any other payment, 

  

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(ii) accelerate the time of payment or vesting, or increase the amount of compensation due to any such employee or former employee or (iii) result
in any prohibited transaction described in Section 406 of ERISA or Section 4975 of the Code for which an exemption is not available. 
 6.12 Trade Rights. Schedule 6.12(a) lists all Trade Rights in which Seller now has any interest, specifying whether such Trade Rights are owned, controlled, used or held (under license or otherwise) by Seller, and also indicating
which of such Trade Rights are registered. Seller has not registered or filed an application or taken any other act toward registration of a Trade Right, other than those Trade Rights specifically identified on Schedule 6.12(a) as registered. Except
as identified in Schedule 6.12(a), Seller has not granted any license or made any assignment of any Trade Right. Seller is not infringing and has not infringed any Trade Rights of another in the operation of the business of Seller, nor to
Seller’s Knowledge, is any other person infringing the Trade Rights of Seller. To Seller’s Knowledge, there is no Litigation pending or threatened to challenge Seller’s right, title and interest with respect to its continued use and
right to preclude others from using any Trade Rights of Seller. 
 6.13 Litigation. There is no claim, action, litigation, suit,
proceeding, arbitration, or governmental, administrative, regulatory or self-regulatory proceeding, investigation, or inquiry (“Litigation”) pending or to Knowledge of Seller threatened against Seller, its business or any of its assets.
Except as set forth in Section 6.13, to Seller’s Knowledge, no event has occurred or circumstance exists that is reasonably likely to give rise or serve as a basis for the commencement of any such litigation. There is no order, injunction,
judgment, decree, ruling or arbitration award of any Governmental Entity outstanding or to Seller’s Knowledge threatened to which Seller is subject. Except as set forth in Schedule 6.13, there are no unresolved debtor complaints or actions
related to any of the Accounts, nor are there any customer complaints or actions that are currently pending or threatened verify. 
 6.14
Solvency. Seller is not in liquidation, has no application or order made for its winding up or dissolution, no resolution passed or steps taken to pass a resolution for its winding up or dissolution, has not been appointed a receiver, receiver
and manager, administrator, liquidator, provisional liquidator, official manager or administrator to it or any of its assets. 
 6.15 No
Governmental Order. No Governmental Entity has issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement. 
 SECTION 7. REPRESENTATIONS OF BUYER 
 Buyer represents
and warrants to Seller as follows: 
 7.1 Corporate Existence. Buyer is a limited liability company duly organized and validly existing
under the Laws of the state of Delaware. Buyer has all requisite corporate power and authority to enter into this Agreement and the other documents and instruments to be executed and delivered by Buyer pursuant hereto and to carry out the
transactions contemplated hereby and thereby. 
  

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 7.2 Authorization. The execution, delivery, and performance of this Agreement have been duly
authorized and approved by all requisite corporate action. When duly executed and delivered by Buyer, this Agreement will constitute the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms.

 7.3 No Violation. Buyer’s execution, delivery and performance of this Agreement and the consummation of the transactions
contemplated hereby will not (i) violate Buyer’s Articles of Incorporation or Bylaws, or any Law, regulation or court order applicable to Buyer or its assets, nor will it violate or conflict with, or constitute a default under any note,
contract or other agreement or instrument to which Buyer is a party or by which Buyer or its assets are bound, or (ii) (except for consents to be acquired prior to Closing) to Buyer’s Knowledge, require any authorization, consent,
approval, exemption or other action by or notice to any Governmental Entity or third party. 
 7.4 Litigation. There is no Litigation
pending or to Knowledge of Buyer threatened against Buyer, its business or any of its assets. To Buyer’s Knowledge, no event has occurred or circumstance exists that is reasonably likely to give rise or serve as a basis for the commencement of
any such Litigation. There is no order, injunction, judgment, decree, ruling or arbitration award of any Governmental Entity outstanding or to Buyer’s Knowledge threatened to which Buyer is subject. 
 7.5 No Governmental Order. No Governmental Entity has issued an order, decree or ruling or taken any other action restraining, enjoining or
otherwise prohibiting the transactions contemplated by this Agreement. 
 SECTION 8. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER 
 The obligations of Buyer to consummate the transactions contemplated by this Agreement are subject to the fulfillment, before or at the Closing Date, of
each of the following conditions, any one or portion of which may be waived in writing by Buyer: 
 8.1 Representations, Warranties, and
Covenants of Seller. All representations and warranties made in this Agreement by Seller shall be true and correct as of the Closing Date as fully as though such representations and warranties had been made in all material respects (provided
that any representation or warranty qualified by material or Material Adverse Effect shall be true in all respects, provided together that the representation in Section 6.2 shall be true in all respects, on and as of the Closing Date, and, as
of the Closing Date, Seller shall not have violated and shall not have failed to perform any covenant or obligation in any material respect contained in this Agreement. 
 8.2 Consents and Regulatory Approvals. Seller will prior to Closing obtain all consents necessary for the consummation of the transactions contemplated hereby. Seller shall obtain prior to Closing all consents
and approvals necessary under any Law, including all Governmental Entity approvals, to consummate the transactions contemplated by this Agreement. 
  

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 8.3 No Suits or Actions. As of the Closing Date, no Litigation shall have been threatened or
instituted to restrain, enjoin, or otherwise prevent the consummation of this Agreement or the contemplated transactions. 
 8.4 Releases.
Seller shall procure a release of the Lien in favor of Sagecrest on the Purchased Assets. 
 SECTION 9. CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER

 The obligations of Seller to consummate the transactions contemplated by this Agreement are subject to the fulfillment, before or at
the Closing Date, of each the following conditions, any one or portion of which may be waived in writing by Seller. 
 9.1
Representations, Warranties and Covenants of Buyer. All representations and warranties made in this Agreement by Buyer shall be true and correct in all material respects (provided that any representation or warranty qualified by material or
Material Adverse Effect shall be true in all respects), as of the Closing Date as fully as though such representations and warranties had been made on and as of the Closing Date, and Buyer shall not have violated and shall not have failed to perform
any covenant or obligation in any material respect contained in this Agreement. 
 9.2 No Suits or Actions. As of the Closing Date, no
Litigation shall have been threatened or instituted to restrain, enjoin, or otherwise prevent the consummation of this Agreement or the contemplated transactions. 
 SECTION 10. SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND INDEMNIFICATION 
 10.1 Survival of Representations and
Warranties. All representations and warranties made in this Agreement, including but not limited to the representations and warranties set forth in Sections 6 and 7, shall survive the Closing of this Agreement for a period of 18 months.

 10.2 Indemnification by Seller. (a) In addition to any other rights or remedies that Buyer may have at law or equity, Seller shall
subject to Section 10.2 (c), defend, indemnify and hold harmless Buyer, and their directors, officers, employees and (“Buyer’s Affiliates”) and their respective successors and assigns, from and against any and all Claims asserted
against, resulting from, imposed upon, or incurred by Buyer, Buyer’s Affiliates, or the Purchased Assets pursuant to this Agreement, directly or indirectly, by reason of, arising out of or resulting from: 
 (i) the inaccuracy or breach of any representation or warranty of Seller contained in or made pursuant to this Agreement; 
 (ii) the breach of any covenant or obligation of Seller contained in this Agreement; 
  

 16 

 (iii) except for Assumed Liabilities, any claim of or against Buyer or Sagecrest, or the Purchased
Assets arising from the actions or omissions of Seller otherwise than in accordance with this Agreement, occurring prior to the Closing Date; 
 (b) As used in this Section 10, the term “Claim” shall include (i) all Liabilities; (ii) all losses, damages (including, without limitation, consequential and punitive damages), judgments, awards, penalties and
settlements; (iii) all demands, claims, suits, actions, causes of action, proceedings and assessments, whether or not ultimately determined to be valid; and (v) all costs and expenses (including, without limitation, interest (including
prejudgment interest in any litigated or arbitrated matter), court costs and fees and expenses of attorneys and expert witnesses) of investigating, defending or asserting any of the foregoing or of enforcing this Agreement; 
 (c) The indemnification by Seller as provided in this Section 10.2 shall be effective with only with respect to all Claims indemnified by Seller
which are in excess of the aggregate Claims that would be the subject of the indemnification by Seller under this Section 10.2 in the amount of $50,000, in which case all Claims will be subject to the indemnification. 
 10.3 Indemnification by Buyer. (a) In addition to any other rights or remedies that Seller may have at law or equity, Buyer shall subject to
Section 10.3 (b) defend, indemnify, and hold harmless Seller and its directors, officers, employees, shareholders and (“Seller’s Affiliates”), its successors and assigns from and against any and all Claims asserted against,
resulting from, imposed upon, or incurred by Seller or Seller Affiliates, directly or indirectly, by reason of, arising out of or resulting from: 
 (i) the inaccuracy or breach of any representation or warranty of Buyer contained in or made pursuant to this Agreement; and 
 (ii) the breach of any covenant or obligation of Buyer contained in this Agreement. 
 (b) the indemnification by Buyer as provided
in this Section 10.3 shall be effective with only with respect to all Claims indemnified by Buyer which are in excess of the aggregate Claims that would be the subject of the indemnification by Buyer under this Section 10.3 in the amount
in excess of $50,000, in which case all Claims will be subject to the indemnification. 
 10.4 Indemnification of Third-Party Claims.
The following provisions shall apply to any Claim subject to indemnification which is (i) a suit, action, arbitration, proceeding, or investigation filed or instituted by any third party, or (ii) any other form of proceeding
investigation, inquiry or assessment instituted by any Government Entity: 
 (a) Notice and Defense. The party or parties to be
indemnified (whether one or more, the “Indemnified Party”) will give the party from whom indemnification is sought (the “Indemnifying Party”) written notice of any such Claim. Failure to give such notice shall not affect the
Indemnifying Party’s duty or obligations under this Section 10, except to the extent the Indemnifying Party is prejudiced thereby. The Indemnifying Party will undertake the defense thereof by legal counsel chosen by the Indemnifying Party,
with the consent of the Indemnified Party which consent shall not be unreasonably withheld. Failure of the Indemnified Party to 

  

 17 

 
provide its consent or reasons to withhold consent as required in the preceding sentence within 10 calendar days after receipt of notice by the Indemnifying
Party of its choice of legal counsel shall be deemed as the consent of the Indemnified Party. The assumption of defense shall not constitute an admission by the Indemnifying Party of its indemnification obligation hereunder with respect to such
Claim, and its undertaking to pay directly all costs, expenses, damages, judgments, awards, penalties and assessments incurred in connection therewith. So long as the Indemnifying Party is defending any such Claim actively and in good faith, the
Indemnified Party shall not settle such Claim. The Indemnified Party shall make available to the Indemnifying Party or its representatives all records and other materials required by them and in the possession or under the control of the Indemnified
Party, for the use of the Indemnifying Party and its representatives in defending any such Claim, and shall in other respects give reasonable cooperation in such defense. 
 (b) Failure to Defend. If the Indemnifying Party, within a reasonable time after notice of any such Claim, fails to defend such Claim actively and in good faith, the Indemnified Party will (upon further notice)
have the right to undertake the defense, compromise or settlement of such Claim or consent to the entry of a judgment with respect to such Claim, on behalf of and for the account and risk of the Indemnifying Party, and the Indemnifying Party shall
thereafter have no right to challenge the Indemnified Party’s defense, compromise, settlement or consent to judgment. 
 (c)
Indemnified Party’s Rights. Anything in this Section 10 to the contrary notwithstanding, (i) if there is a reasonable probability that a Claim may materially and adversely affect the Indemnified Party other than as a result of
money damages or other money payments, the Indemnified Party shall have the right to defend, compromise or settle such Claim with the consent of the Indemnifying Party, which consent shall not be unreasonably withheld, and (ii) the Indemnifying
Party shall not, without the written consent of the Indemnified Party, settle or compromise any Claim or consent to the entry of any judgment which does not include as an unconditional term thereof the giving by the claimant or the plaintiff to the
Indemnified Party of a release from all Liability in respect of such Claim. 
 10.5 Payment. The Indemnifying Party shall promptly pay
the Indemnified Party any amount due under this Section 10. Upon judgment, determination, settlement or compromise of any third party Claim, the Indemnifying Party shall pay promptly on behalf of the Indemnified Party, and/or to the Indemnified
Party in reimbursement of any amount theretofore required to be paid by it, the amount so determined by judgment, determination, settlement or compromise and all other Claims of the Indemnified Party with respect thereto, unless in the case of a
judgment an appeal is made from the judgment. 
 SECTION 11. CLOSING 
 11.1 Time and Place. The Closing of the purchase and sale contemplated by this Agreement (the “Closing”) shall be at the offices of Buchalter Nemer located at 1000 Wilshire Boulevard, Suite 1500, Los
Angeles, California 90017 on March 14, 2007 at a time mutually acceptable to the parties. 
  

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 11.2 Obligations of Seller at Closing. At the Closing and contemporaneously with the performance
by Buyer of its obligations described in Section 11.3, Seller shall deliver to Buyer the following: 
 (a) Bills of sale, assignments,
properly endorsed certificates of title, and other instruments of transfer, in form and substance reasonably satisfactory to counsel for Buyer, necessary to transfer and convey all of the Purchased Assets to Buyer. 
 (b) Possession of the Premises; 
 (c) All
books and records related to the Purchased Assets and Seller Contracts, including without limitation all documents and files relating to the Accounts; 
 (d) Evidence of the release of all Liens; 
 (e) Copies of all executed consents required by this Agreement;

 (f An indemnification agreement by Schlegel in favor of Buyer, SageCrest and certain affiliates and related entities of SageCrest as
designated by SageCrest (collectively, “SageCrest Entities”), in form and substance acceptable to SageCrest; 
 (g) A release by
Seller and Schlegel in favor of SageCrest Entities, in form and substance acceptable to SageCrest Entities; 
 (h) A release by Dubhe and
$390,000 Investors in favor of SageCrest Entities, in form and substance acceptable to SageCrest Entities; 
 (i) Certified resolutions of
the board of directors and Shareholders authorizing the performance by Seller of transactions contemplated herein; and 
 (j) Such other
certificates and documents as may be called for by the provisions of this Agreement or reasonably requested by Buyer and its legal counsel. 
 11.3 Obligations of Buyer at Closing. At the Closing and contemporaneously with the performance by Seller of its obligations described in Section 11.2, Buyer shall deliver to Seller the following: 
 (a) The Purchase Price Accounts; 
 (b)
Licenses to the Trade Rights set forth in that “Trade Right License Agreement;” 
 (c) Payment of the amounts set forth in Schedule
2.2(d); 
 (d) Termination of the guarantee of Schlegel; 
 (e) A release in favor of Seller and Schlegel by SageCrest and its Affiliates (as defined in that certain Mutual Release of even date herewith), in form and substance acceptable to Cogent and Schlegel, but excluding
any release with respect to gross negligence or willful misconduct by any Schlegel Party (as that term is defined in that certain Mutual General Relase of even date 

  

 19 

 
herewith), or fraud by Schlegel, or any obligation, representation, or warranty relating to or arising from this Agreement or the transactions and other
documents contemplated herein; 
 (f) Certified resolutions of Buyer authorizing the performance by Buyer of transactions contemplated
herein; and 
 (g) Such other certificates and documents as may be called for by the provisions of this Agreement. 
 SECTION 12. BOOKS AND RECORDS 
 Other than the
Purchased Books and Records, the Purchased Assets do not include the books of account and financial records of the business of Seller. Other than the Purchased Books and Records, possession and custody of books of account and financial records that
are currently in the physical custody and control of Seller shall remain with Seller. All books and records relating to Seller that either are currently in the control and custody shall be available to Buyer for inspection by Buyer and its
representatives, upon reasonable notice to Seller and at Buyer’s sole expense. With respect to the Purchased Books and Records, Buyer or its successors and assigns shall be entitled to retain physical custody, possession and control of the
Purchased Books and Records, and to the extent Buyer has possession and control of the Purchased Books and Records, the Purchased Books and Records shall be available for inspection by Seller and its representatives, upon reasonable notice to Buyer
at Seller’s sole expense, solely for the purpose of enabling, and for so long as is necessary to enable, Seller to comply with any reporting, tax or other requirements under applicable Law. 
 SECTION 13. TERMINATION OF AGREEMENT 
 13.1 Mutual
Consent. This Agreement may be terminated by mutual written consent of the parties to this Agreement. 
 13.2 Breach of
Representations and Warranties; Failure of Conditions. Buyer may elect by notice to Seller, and Seller may elect by notice to Buyer, to terminate this Agreement if: 
 (a) The terminating party shall have discovered a material error, misstatement, or omission in the representations and warranties made in this Agreement by the other party, which shall not have been cured by such
other party within five (5) days after written notice to such other party specifying in detail such asserted error, misstatement, or omission, or by the Closing Date, whichever first occurs. In the event an error is of such a nature that it is
impossible to remedy it within five (5) days after receipt of such notice, a party may not terminate this Agreement if the other party has taken all steps necessary to cure the error within five (5) days of receipt of notice, and the error
will be cured merely by the passage of time. 
 (b) All of the conditions precedent of the terminating party’s obligations under this
Agreement, have not occurred and have not been waived by the terminating party on or prior to the Closing Date. 
  

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 13.3 Closing Notwithstanding the Right to Terminate. The party with a right to terminate this
Agreement pursuant to Section 14.2 shall not be bound to exercise such right, and its failure to exercise such right shall not constitute a waiver of any other right it may have under this Agreement, including but not limited to remedies for
breach of a representation, warranty, or covenant. 
 SECTION 14. SPECIAL COVENANTS AND CONDITIONS 
 14.1 Confidentiality. The parties agree to observe the following covenants with respect to confidentiality: 
 (a) The parties agree that no disclosure of this Agreement or the terms and conditions hereof shall be made to any third party without the consent of
Buyer and Seller, as applicable, except; (i) to directors, officers, employees, agents, auditors or advisors of Buyer and Seller or their respective affiliates who are provided such information in connection with the consummation of the
transactions contemplated by this Agreement, and who have been informed, and have agreed to comply with, the disclosure restrictions contained herein; (ii) when required by Law or as may be required or appropriate in response to any summons or
subpoena or in connection with any litigation or administrative proceeding, Buyer or Seller, as the case may be; or (iii) to Account debtors to redirect payments and other matters relating to the Accounts to Buyer to the extent necessary.

 (b) Seller shall, and shall cause each of its directors and officers to, and shall use its best efforts to cause each of its employees and
affiliates to, hold in confidence, and not disclose (or permit or suffer its personnel to disclose) to any person outside its organization, any Confidential Information concerning (i) any Account debtor or Account, (ii) any other Purchase
Asset, or (iii) for a period extending for 2 years after the Closing, Buyer or any of its affiliates. Seller shall disclose such Confidential Information only to persons within its organization, in either case who have a need to know such
Confidential Information in connection with the consummation of the transactions contemplated by this Agreement; provided that Seller may disclose Confidential Information (y) when required by Law or as may be required or appropriate in
response to any summons or subpoena or in connection with any litigation or administrative proceeding; or (z) in connection with any claim involving the subject matter of this Agreement or any request for indemnification pursuant to this
Agreement. 
 14.2 Further Assurances. After the Closing Date, Buyer and Seller shall, and each shall cause their respective
affiliates to, assist and cooperate with the other, including making available to the other party, at reasonable times and upon reasonable advance notice, relevant records and appropriate personnel in connection with any investigation or the
preparation of or participation in a defense, negotiation or settlement relating to any pending, future or threatened claim, litigation or proceeding by a Governmental Entity involving the conduct or interest of such other party or its affiliates or
predecessors, including employee and tax matters. 
 14.3 Transition Services Agreement. Seller and Buyer shall enter into an
agreement that provides for the designation of certain responsibilities and handling of events with respect to the transactions contemplated under this Agreement. 
  

 21 

 14.4 Use of Name; License. Prior to Closing, Seller shall change its corporate name from
“Cogent Financial Group” to another name that would not be construed with any Trade Right. Except for the Trade Right retained by the Seller pursuant to this Agreement, Seller shall not be permitted to use any Trade Right, including trade
name without the express written consent of Buyer pursuant an agreement in form and substance acceptable to Buyer. 
 14.5 Relocation of
Seller. In the event Buyer obtains the rights to possession of the Premises, whether by assignment of the Premises Lease or sublease, or otherwise, Seller and Seller’s Affiliates shall be permitted to retain possession of that certain
portion of the Premises designated as Suite 740 for a period not to exceed 30 days from the Closing Date without charge. 
 14.6
Reimbursement of Relocation Expenses. Upon the Closing Date, Buyer shall deliver to Seller cash in the amount of $50,000 to reimburse Seller for costs and expenses relating to Seller’s relocation from the Premises. 
 14.7 License For Use of Software. Seller and Buyer shall enter into a license agreement pursuant to which Seller shall be granted by Buyer a
limited, non-exclusive right to use certain Purchased Assets consisting of software for the purpose of servicing accounts receivable. 
 SECTION 15.
EFFECTIVE DATE 
 15.1 Effective Date. Upon the Closing, the effective date of the transactions contemplated hereunder shall be
December 31, 2006. 
 SECTION 16. MISCELLANEOUS 
 16.1 Binding Effect. This Agreement shall be binding upon the parties and their heirs, personal representatives, successors, and assigns, and shall inure to their benefit. 
 16.2 Amendment. This Agreement may be amended only by a written instrument executed by the party against whom enforcement is sought. 

16.3 Notices. All notices or other communications required or permitted by this Agreement shall be in writing and shall be deemed given if
delivered personally to the party for whom such notice was intended, or by mail, postage pre-paid, certified or registered, return receipt requested, to the respective parties at the following addresses, or at such other address that a party shall
specify by notice given to the other parties in accordance with this section: 
  

			
	To Seller:	  	Coastal Financial Group
		  	 3900 Kilroy Airport Way, Suite 117
 Long Beach, CA
90806

		  	Attn: Theodore Schlegel

  

 22 

			
	with copy to:	  	Brian L. Davidoff, Esq.
		  	 Rutter Hobbs & Davidoff Incorporated
 1901
Avenue of the Stars
 Suite 1700
 Los Angeles, CA
90067

		
	To Buyer:	  	Cogent Acquisition Company, LLC
		  	 3 Pickwick Plaza
 Greenwich, CT 06830
 Attn: Nicholas Prouty

		
	with copy to:	  	 William S. Brody, Esq.
 Buchalter Nemer
 1000 Wilshire Blvd, Suite 1500
 Los Angeles, CA 90017

 16.4 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 16.5 Severability. If
any provision of this Agreement shall be invalid or unenforceable in any respect for any reason, the validity and enforceability of any such provision in any other respect and of the remaining provisions of this Agreement shall not be in any way
impaired. 
 16.6 No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer on any person,
other than the parties to this Agreement, any right or remedy of any nature whatsoever. 
 16.7 Nonwaiver. The waiver by any party of
a breach or violation of any provision of this Agreement shall not operate or be construed as a waiver of any other provision or any subsequent breach of the same provision. No waiver shall be binding unless executed in writing by the party making
the waiver. 
 16.8 Exhibits and Schedules. All exhibits and schedules attached hereto are, by this reference, incorporated herein and
made a part hereof as if set forth in their entirety. 
 16.9 All obligations on the part of the parties by the terms or context
hereof to be performed subsequent to Closing shall survive the Closing for the period set forth in Section 10.1. 
 16.10 Governing
Law. This Agreement shall be governed by and construed in accordance with the Laws of the state of California. 
 16.11 Entire
Agreement. This Agreement contains the entire understanding between the parties with respect to subject matter set forth herein and this Agreement supersedes all prior and contemporaneous negotiations and agreements. 
  

 23 

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

  

			
	BUYER:
	
	 COGENT ACQUISITION COMPANY, LLC,
 a Delaware
limited liability company

		
	By:	 	 

	
	SELLER:
	
	 COGENT FINANCIAL GROUP,
 a California
corporation

		
	By:	 	 

  

 S-1 
 Asset Purchase Agreement 

 SCHEDULE 2.1 (a)
 EQUIPMENT. FURNITURE AND FIXTURES 
 Furniture 
 Large brown credenza 
 2 wooden desks, brown,
1 with return 
 Glass coffee table 
 8 black desks 
 Computer table 
 3 black 2 drawer lateral files 
 3 leather chairs 
 1 black side table 
 1 safe 
 1 fireproof file cabinet 
 8 black desks 
 5 drawer lateral file, beige 
 2 self wooden
bookcase, brown 
 3 large 2 door metal cabinets 
 2 drawer lateral file, beige 
 Kitchen Equipment 
 Microwave oven 
 Toaster oven 
 Computers 
  

							
	 Computer Type
	 	 Service Tag
	 	 Monitor
	 	 Printer

	 Dell PowerEdge 400SC
	 	HQG8041	 	FP	 	HP 6110
	 Custom
	 	n/a	 	FP	 	
	 Dell Dimension 3000
	 	GZVHY61	 	FP	 	
	 Custom
	 	n/a	 	FP	 	
	 Custom
	 	n/a	 	FP	 	
	 Dell Dimension 3000
	 	GB3BL71	 	FP	 	
	 Dell Dimension 3000
	 	GN43T81	 	FP	 	Lexmark 7350
	 Dell Dimension 2400
	 	C3DQ641	 	FP	 	
	 Dell Dimension 3100
	 	74T9PB1	 	FP	 	
	 Dell Dimension 2400
	 	JCFX241	 	FP	 	
	 Dell Dimension 1100
	 	6VX8Q91	 	FP	 	
	 Custom
	 	n/a	 	FP	 	
	 Dell Dimension 3000
	 	CZBHY61	 	FP	 	Brother 3800

							
	 Computer Type
	 	 Service Tag
	 	 Monitor
	 	 Printer

	 Dell Dimension 1100
	 	4VX8Q91	 	FP	 	
	 Dell Dimension 2400
	 	F3DQ641	 	FP	 	
	 Dell Dimension 1100
	 	2WX8Q91	 	FP	 	
	 Dell Dimension 3000
	 	CH43T81	 	FP	 	
	 Dell Dimension 3000
	 	7SBTP81	 	CRT	 	
	 Dell Dimension 3000
	 	F68V571	 	CRT	 	
	 Dell Dimension 3000
	 	4SBTP81	 	CRT	 	
	 n/a
	 	n/a	 	n/a	 	Lexmark 7350
	 Dell Dimension 3100
	 	47ZMV81	 	FP	 	
	 Dell Dimension 3000
	 	JB3BL71	 	CRT	 	Brother 2820
	 Dell Dimension 2400
	 	7VZMJ41	 	CRT	 	
	 Dell Dimension 4600
	 	8CWQP41	 	FP	 	HP LJ 6P
	 Dell Dimension 3000
	 	FN43T81	 	FP	 	
	 Dell Dimension 2400
	 	J00TT51	 	FP	 	
	 Dell Dimension 1100
	 	8VX8Q91	 	FP	 	Brother 3800
	 Custom
	 	n/a	 	CRT	 	
	 Dell PowerEdge 400SC
	 	JQGB041	 	CRT	 	HP 6110
	 Dell Dimension 2400
	 	D32CD51	 	FP	 	Lexmark E232
	 Dell Dimension 4600
	 	CCWQP41	 	FP	 	
	 Dell Dimension 3000
	 	6SBTP81	 	FP	 	Ricoh AP400
	 Dell Dimension B110
	 	CLF4391	 	FP	 	
	 Dell Dimension B110
	 	8LF4391	 	FP	 	
	 Dell Dimension 2400
	 	JLLX051	 	FP	 	Ricoh AP400
	 Dell Dimension 2400
	 	17D5851	 	FP	 	
	 Dell Dimension 3000
	 	FZBHY61	 	CRT	 	
	 Custom
	 	n/a	 	FP	 	
	 Dell Dimension 3000
	 	B68V571	 	CRT	 	
	 Dell Dimension 2400
	 	3VZMJ41	 	FP	 	Brother 7220
	 Custom
	 	n/a	 	FP	 	
	 Dell Optiplex 170L
	 	HX63491	 	FP	 	
	 Dell Dimension 2400
	 	4R53F41	 	FP	 	
	 Dell Dimension 4700
	 	C87D561	 	FP	 	Lexmark C752
	 Dell Dimension 2400
	 	7R53F41	 	FP	 	
	 Dell Dimension 4700
	 	J72P771	 	FP	 	HP 6110
	 Dell Dimension 2400
	 	310TT51	 	FP	 	
	 Custom
	 	n/a	 	CRT	 	

							
	 Computer Type
	 	 Service Tag
	 	 Monitor
	 	 Printer

	 Custom
	 	n/a	 	FP	 	
	 Dell Dimension 1100
	 	9VX8Q91	 	FP	 	
	 Dell Dimension 2400
	 	G017351	 	FP	 	
	 Dell Optiplex 170L
	 	FX63491	 		 	
	 Dell Dimension 4700
	 	H72P771	 		 	

 Server Equipment 

			
		
	 Computer Type
	 	 Service Tag

	Dell Power Edge 2600	 	9YMYN31
	Dell Power Edge 1850	 	B5BDR91
	Dell Power Edge 850	 	848L591
	Dell Power Edge 850	 	F4TK591
	Dell Power Edge 750	 	75CDZ61
	Dell Power Edge 1750	 	CTFMF41
	4 Custom built servers	 	no serial number
	5 Lacie External HD’s	 	used for backup
	3 Western Digital External HD’s	 	used for backup
	Cisco Pix 515E Firewall	 	firewall
	6APC Back-ups xs 1500	 	UPS batteries
	3 Cisco Switches catalyst 2900	 	switches
	2 Dell Power Connect 2724/2324	 	switches
	Linksys Wireless G router	 	wireless networking

 Miscellaneous Computer Equipment 

			
		
	 Equipment Model
	 	 Type

	Hewlett Packard LJ 1320N	 	network labels printer
	Brother Fax 2820	 	fax
	Brother Fax 2820	 	fax
	Ricoh AP 610 N	 	network printer
	Brother 3240C	 	fax
	InFocus Model LP425Z	 	
	3dw94700241	 	projector
	Premier paper folding machine	 	
	66415	 	Paper Folder
	Sharp TV with VCR 521483	 	TV
	Ricoh 2045eSP	 	network printer
	Ricoh 2045eSP	 	network printer
	Ricoh 2018	 	network printer
	Software	 	
	 MC2000 proprietary software
	 	

 SCHEDULE 2.1(b) 
 SELLER CONTRACTS 
 AccounTemps General Conditions of Assignment 
 *AT&T Comprehensive Service Order No. 346974 
 *AT&T Pricing
Schedule – Business Network 
 *AT&T Pricing Schedule – Internet 
 *Avaya Lease Agreement-phone equipment 
 California DMV Commercial Vehicle Requester Services Agreement 
 *Cingular Cell Phone Agreement 
 CourtQuest, Inc. Application and Employment
Services Agreement 
 *Dell Financial Services Equipment Lease - Account No. 001-6340820-001 
 GeoTracer Agreement 
 Hartman Insurance Services Agreement 
 Nu Skin United States, Inc. Scanner Lease Agreement 
 Pacific Motor Sales -
Consignment Agreement 
 PAL Servicing Agreement 
 PAL Software
Lease 
 Paychex Payment Agreement 
 Paychex Retirement Services
Agreement 
 Paychex Master Custody Agreement 
 *PFSC Backup
Servicing Agreement 
 *Pitney Bowes Lease Agreement 
 *Pitney
Bowes Work Statement 
 *Premises Lease dated 8/16/04 as amended 
 *Swets Employment Agreement 
 *Verizon Cell Phone Agreement* 
 *Wells Fargo Credit Card Terminal Equipment Lease Agreement 
 *Wells Fargo OPS (On Line Processing Services) Agreement 
 *Provider Agreements per the attached Schedule 2.1 (f) Adobe pdf list 
 *700 Credit Services Agreement 
  

	*	Items marked are Mandatory Seller Contracts which Buyer shall assume whether or not such contracts are assignable by their terms. If Buyer cannot assume such Mandatory Seller
Contracts, Buyer shall nevertheless be responsible to indemnify Seller for obligations under such Mandatory Seller Contracts from and after the Closing Date 

 SCHEDULE 2.1(C) 
 ACCOUNTS 
 See attached electronic copy of Accounts through February 28, 2007 and updated through
March 12, 2007. 

 SCHEDULE 2.1(e) 
 VEHICLE COLLATERAL 
  

	(a)	See attachment of judgments, liens and other enforcement actions. 

  

	(b)	See attached electronic copy of motor vehicles liens. 

 SCHEDULE 2.1(f) 
 PROVIDER ASSIGNMENT AGREEMENTS 
 Attached in electronic format is a list of all providers
to Seller. However several of the providers have no written agreement with Seller and if they do have an agreement such an agreement cannot be located. The lack of such an agreement may effect the enforceability of an Account from such provider.

 SCHEDULE 2.1(g) 
 LEASEHOLD IMPROVEMENTS 
  

						
	8/19/2004	  	Ocean Beach Investors, L.P.	  	$	19,757.20
			
	11/16/2004	  	Boise Workspace	  	$	4,482.00
			
	1/1/2005	  	The Home Depot	  	$	697.39
			
	1/19/2005	  	Boise Workspace	  	$	810.57
			
	6/23/2005	  	Ocean Beach Investors, L.P.	  	$	14,391.54
			
	7/7/2005	  	Ocean Beach Investors, L.P.	  	$	16,678.98
			
	3/1/2006	  	Ocean Beach Investors, L.P.	  	$	1,417.00
		  		  	 	 
			
		  		  	$	58,234.68
		  		  	 	 

 Represents payments for the buildout of suite 770 and expansion space. 
  

	*	No assurance is given that the leasehold improvements or the lease for the business premises of Seller at 5150 East Pacific Coast Highway, Long Beach, California, 90804 can be
assigned. 

 SCHEDULE 2.1(k)(i) 
 SELLER DEPOSITS 
 Letter of credit for deposit for lease agreement for premises at 5150
East Pacific Coast Highway, Long Beach, California, 90804 in account no 3189499688 at Wells Fargo Bank. 

 SCHEDULE 2.1(l) 
 BANK ACCOUNTS 
  

					
	 Bank
	 	 Account Number
	 	 Description

	Wells Fargo	 	4121111595	 	Lockbox Account
	Wells Fargo	 	4121111603	 	Cash Holding Account
	Wells Fargo	 	4121131908	 	Disbursement account
	Wells Fargo	 	4121301956	 	Provider Payment Account
	Wells Fargo	 	7191319131	 	Remote Payments Accounts*
	Wells Fargo	 	4121131890	 	Old Deposit Account
	Wells Fargo	 	7868723888	 	PayPal Account*
	Wells Fargo	 	3189499688	 	Savings
	Bank of America	 	09759-43371	 	Remote Payments Accounts*
	Citibank	 	200917177	 	Cash account*
	Wells Fargo	 	4121169197	 	PAL account*

  

	*	The accounts are not being transferred to Buyer as part of the Agreement but are remaining with Seller. 

 SCHEDULE 2.1(m) 
 OBLIGATIONS RECEIVABLE TO SELLER 
  

				
	 Description
	  	Amount
	 Due from SageCrest, servicing fees
	  	$	875,603
		
	 Misc. Receivable, Redline Towing
	  	$	 64,000
		
		  	 	*
		
	 A/R Post Funding Charges
	  	$	248,812
		
		  	 	*
		
	 A/R Post Funding Servicing Fees
	  	$	676,438
		
	 Promissory Note, Douglas Garcia
	  	$	338,170.78
	 Employee Loan Agreements:
	  		
	 Abril
	  		
	 Bumbers
	  		
	 Cabral
	  		
	 Depugh
	  		
	 Duran, M.
	  		
	 Harrell
	  		
	 Lozano
	  		
	 Martinez
	  		
	 Monroy
	  		
	 Moreno
	  		
	 Duran, P.
	  		
	 Ponce
	  		
	 Rivas
	  		
	 Rodriguez
	  		
	 Ruelas
	  		
	 Shepard
	  		
	 Washington
	  		

  

	*	These amounts are showing on the Seller’s books and records but should have been written off after the Seller sued Southeast Emergency Physicians Association (“SEPA”)
and later entered into a settlement agreement with SEPA. These amounts are not collectible. 

 SCHEDULE 2.1(n) 
 EXCLUDED BANK ACCOUNTS AND FUNDS 
  

					
	 Bank
	 	 Account Number
	 	 Description

	Wells Fargo	 	1350966142	 	Investor Funds Account
	Wells Fargo	 	341-2767463	 	Old Investment Account
	Wells Fargo	 	7191319131	 	
	Citibank	 	200917177	 	To obtain Citibank letter of credit required
		 		 	under the office building lease
	Bank of America	 	0975943371	 	Cash account
	Wells Fargo	 	7868723888	 	PayPal Account
	Wells Fargo	 	3189499688	 	Savings
	Wells Fargo	 	4121169197	 	PAL account

 SCHEDULE 2.2(a) 
 ASSUMED EMPLOYEE LIABILITIES 
  

				
	 Description
	  	Amount
	 Vacation time accrued thru 3/13/07
	  	$	59,205.71
	 Estimated wages, 2/26/07 - 3/13/07
	  	$	81,413.18
	 February employee bonus & commission
	  	$	8,984.17
	 D. Swets contract buy out
	  	$	70,000.00
	 Employer payroll tax on all above items
	  	$	26,352.36
	 Employer match on 401k, above wages
	  	$	2,196.20
	 Plus the following benefits:
	  		
	 Medical lnsurance - Employer & Employee paid
	  		
	 Dental lnsurance - Employee Paid
	  		
	 STD/LTD - Employer Paid
	  		
	 Vision Plan - Employee paid
	  		
	 Life & ADD - Employer paid
	  		
	 Term Life lnsurance (voluntary plan)
	  		
	 401(k) Plan
	  		
	 Flexible Spending Account
	  		

 SCHEDULE 2.2(b) 
 DEPOSITS BY THIRD PARTIES 
 See information as part of Schedule 2.l(c) 
 See also attached summary. 

 SCHEDULE 2.2 (d) 
 ACCOUNTS PAYABLE 
  

			
	 Invoices in house, unpaid
	  	
		
	 A-1 Recovery
	  	125
		
	 Able Auto Adjustors
	  	10,277
		
	 Accountemps
	  	4,554
		
	 AFLAC
	  	676
		
	 Allen Matkins Leck Gamble
	  	2,293
		
	 Ampco System Parking
	  	100
		
	 AT&T
	  	117
		
	 Avaya Financial Services
	  	1,421
		
	 Buchalter, Nemer, Fields & Younger
	  	929
		
	 Cal Choice Benefits Administrator
	  	7,706
		
	 Cintas Document Management
	  	285
		
	 Curtis 1000
	  	828
		
	 Dell Financial Services
	  	275
		
	 Drivtrac
	  	518
		
	 E. Wireless Communications
	  	466
		
	 Ellen Stern
	  	2,732
		
	 Global Connect
	  	1,610
		
	 KC Office Services
	  	160
		
	 Michael P. Allen & Assoc
	  	7,035

			
	 National Creditors Connection
	  	230
		
	 Orange Commercial Credit
	  	825
		
	 PCS, Inc.
	  	1,270
		
	 Pitney Bowes Credit Corp
	  	12,682
		
	 Pitney Bowes, Inc.
	  	546
		
	 Portfolio Financial Servicing
	  	1,500
		
	 Ricoh Business Systems
	  	650
		
	 RPM Vehicle Remarketing
	  	4,970
		
	 Rutter, Hobbs, Davidoff Inc
	  	54,236
		
	 Schlegel Financial Consulting Fee
	  	7,865
		
	 Seaside Printing
	  	844
		
	 Simons Services & Recovery
	  	2,068
		
	 Skyline Exhibits Los Angeles
	  	927
		
	 Staples Business Advantage
	  	1,240
		
	 State Compensation Insurance Fund
	  	1,793
		
	 Stephen & Stein
	  	745
		
	 Sunset Detectives, Inc.
	  	800
		
	 Transunion
	  	50
		
	 Vea Recovery Services
	  	8,675
		
	 Verizon Wireless
	  	431
		
	 Worldwide Express
	  	699
		
	 Services thru 3/13/07, invoices not yet received
	  	
		
	 700 Credit
	  	10,163

			
	 Accurint
	  	3,185
		
	 Accountemps
	  	3,907
		
	 AFLAC
	  	676
		
	 AT & T- MDCD
	  	4,191
		
	 AT & T: 497
	  	4,518
		
	 AT & T Data
	  	600
		
	 Cingular Wireless
	  	498
		
	 Dell Financial Services
	  	275
		
	 DHL
	  	179
		
	 eFax Corporate
	  	610
		
	 E. Wireless Communications
	  	467
		
	 Experion
	  	75
		
	 Equifax
	  	50
		
	 RPM Vehicle Remarketing
	  	600
		
	 Staples
	  	600
		
	 Verizon California
	  	122
		
	 Verizon Wireless
	  	86
		
	 State Compensation Insurance Fund
	  	1,793
		
	 Jon Stein, CPA
	  	1,828
		
	 Worldwide Express
	  	365
		
	 Ienhance
	  	1,500
		
	 Misc post funding providers
	  	250
		
	 Citicard- 1198
	  	979
		
	 American Express 71009
	  	2,488

			
	 Paychex, payroll processing fee
	  	890
		
	 Other Misc. Accruals
	  	
		
	 Rodney Morris- settlement accepted
	  	20,000
		
	 Legal- Rodney Morris settlement
	  	5,000
		
	 Payable to Gulf Imaging & SEPA
	  	40,000
		
	 Payable to Boublik, interest paid semi-annually
	  	7,666
		
	 Samuel Tucker Settlement
	  	2,647
		
	 Rutter, Hobbs, Davidoff
 Estimated March invoice
	  	30,000
		
	 Scheinrock Advisory Group
	  	20,000

 SCHEDULE 2.2(f) 
 ASSUMED LIABILITIES 
  

	1.	All liabilities and obligations accruing after the Closing Date under those certain Seller Contracts designated as mandatory Seller Contracts on Schedule 2.1(b).

  

	2.	Any and all obligations to perform under the Accounts listed on Schedule 2.1(c) accruing after the Closing Date. 

  

	3.	Any and obligations to perform under the Provider Assignment Agreement listed on Schedule 2.1(f), other than those identified on Schedule 3.1, accruing after the Closing Date.

  

	4.	All Assumed Employee Liabilities listed on Schedule 2.2(a) and Section 2.2(a) of the Agreement. 

  

	5.	Any and all obligations to credit or reimburse for the deposits and other funds paid by account debtors listed on Schedule 2.2(b) and Section 2.2(b) of the Agreement.

  

	6.	All accounts payable listed on Schedule 2.2(d) and Section 2.2(d) of the Agreement. 

  

	7.	All triggered obligations listed on Schedule 6.11(g). 

 8. 
 SCHEDULE 3.1 
 EXCLUDED ASSETS 
 Schedule 3.1(a)
 Personal Property: 
 Ted Schlegel’s personal office furniture 
  

	 	•	 	 2 drawer lateral file 

  

	 	•	 	 Credenza 

  

	 	•	 	 Round desk 

  

	 	•	 	 5 arm chairs 

  

	 	•	 	 1 upholstered chair 

  

	 	•	 	 7 pieces of artwork 

  

	 	•	 	 3 drawer file 

  

	 	•	 	 Computer desk 

  

	 	•	 	 Side table 

  

	 	•	 	 2 larqe potted plants, 1 empty pot 

  

	 	•	 	 Table lamp 

  

	 	•	 	 Globe 

  

	 	•	 	 Leather desk set- 2 in/out trays, notepad holder, desk pad 

 3 lateral file cabinets 
 Computers & Equipment: 
  

	 	•	 	 Dell Dimension 3100 HBYMV81 with flat panel 

  

	 	•	 	 Dell Dimension E520 DJ5SCC1 (AMS Server) 

  

	 	•	 	 Dell Dimension 3000 1C3BL71 with flat panel 

  

	 	•	 	 Dell Dimension 2400 1X74Q71 with flat panel 

  

	 	•	 	 Dell Dimension 1100 7VX8Q91 with flat panel 

  

	 	•	 	 Dell Dimension B110 FLF4391 with flat panel 

  

	 	•	 	 Dell Dimension (Ted’s) with flat panel 

  

	 	•	 	 Vonage Phone Router 

  

	 	•	 	 Ricoh AP 610 N Network Printer 

  

	 	•	 	 Refrigerator - small 

 Insurance
policies: 
  

	 	•	 	 Commercial Liability 

  

	 	•	 	 D & O 

  

	 	•	 	 E & O 

  

	 	•	 	 Keyman 

 SCHEDULE 3.1(b)
 All accounts receivable assigned to Dubhe or being serviced by Seller for Dubhe- See attached electronic copy of such accounts 
 Purchase Price Accounts 
 All Accounts being collected by Paramount Alliance Limited for Southeast Physicians
Alliance Association and Gulf Imaging Associates, P.A. 
 SCHEDULE 3.1(c) 
 Trade Names: 
 The SurgiCredit name 
 PAL 
 Paramount Alliance 
 Edgewater Financial 
 Other Assets and Agreements: 

All assets owned by Edgewater Financial. 
 All assets owned by
PAL 
 Auto Master software 
 Garcia Promissory Note
in the amount of $1,588,983.17 
 All agreements between Seller and Paramount Alliance Limited 
 All agreements between Seller and Edgewater Financial Group 
 California Finance Lender & Broker License File
No. 603 6490* 
 City of Long Beach Business License* 
 Louisiana License NOT 11357-0 
 Sales tax refunds on any foreclosed vehicles that were financed by Dubhe 
 Excluded bank accounts identified in Schedule 2.1(n) 
 Hessman confidentiality
agreement 
 Any tax refund that may be payable to Seller 
 Historical records in storage on P2 of parking lot of the 5150 E. PCH All insurance policies and proceeds therefrom 

 The following telephone numbers: 
  

													
	 (562) 684-0714
	  	Efax	  		  		  		  		  	
	 (866) 270-4700
	  	PAL	  		  		  		  		  	
	 (562)592-0010
	  	Edgewater	  		  		  		  		  	
	 (562) 608-8406
	  	Edgewater	  		  		  		  		  	
	 (619) 405-6919
	  	Cell	  		  		  		  		  	
	 310-804-0613
	  	Cell	  		  		  		  		  	
	 310-804-0612
	  	Cell	  		  		  		  		  	
	 P.O.Box 90452
	  	PAL	  		  		  		  		  	

 SCHEDULE 6.1 
 QUALIFICATION 
 The Seller’s qualification in Texas has lapsed and is in the process of
being reinstated. 

 SCHEDULE 6.4 
 ASSIGNED AGREEMENTS 
 Pitney Bowes Lease Agreement 
 Due to issues concerning the performance of the equipment Seller stopped paying this lease beginning with the October 2006 payment. Negotiations were initiated to void
the agreement. Pitney Bowes has to date refused to come to the table and negotiate a buyout of the lease. $12,637.90 per the statement of account dated February 13, 2007 is the amount for the lease to be brought current. 
 Seller in unaware whether the Seller Contracts are assignable. Seller makes no representation or warranty that the Seller Contracts can be assigned to Buyer, with or
without the consent to the other party to such Seller Contract. 

 SCHEDULE 6.5 
 FINANCIAL STATEMENTS 
 See Balance Sheet, Income Statement and Statement of Cash Flows for the period ended
December 31, 2006 (the “Financial Statements) 

 SCHEDULE 6.6 
 Tax Matters 
 Schedule 6.6(a) 
 There is no provision on the Financial Statements or on prior years financial statements for payment of taxes. 
 Schedule 6.6(b) 
 Filing of Tax Returns 
 All tax returns required to be filed have been timely filed with the exception of the fye 12/31/05 return which was filed late. 
 All returns filed were true and correct in all material aspects and any taxes shown as due were paid. 
 All taxes relating to salaries have been
withheld and paid as required. 
 SCHEDULE 6.6(c) 
 TAX AUDITS 
 County of Los Angeles, Office of the Assessor Escape Assessment for 2005 & 2006 Total $1,951.64

 State of California Franchise Tax Board Audit of tax year 12/31/02 interest expense. Additional tax paid 11/21/06; Penalty and interest paid 1/30/07

 SCHEDULE 6.7 
 DISCLOSED LIABILITIES 
 Rodney Morris settlement payment plus attorneys fees-approx $25,000 
 Liability to Gulf Imaging- $40,000 
 Samuel Tucker small
claims judgment $2,600 

 SCHEDULE 6.9 
 MARKETABLE TITLE 
 As disclosed in Scheduled 2.1(f) several of the providers have no written agreement with
Seller and if they do have an agreement such an agreement cannot be located 
 Seller has received verbal threats of litigation as a result of the activities
of third party collector Vocational Recovery Solutions, LLC. 
 Seller in unaware whether the Seller Contracts are assignable. Seller makes no representation
or warranty that the Seller Contracts can be assigned to Buyer, with or without the consent to the other party to such Seller Contract. 

 SCHEDULE 6.9(J) 
 $390,000 INVESTORS 
  

				
	 Theodore F. Schlegel
	  	$	100,000
	 Michael Boublik
	  	$	100,000
	 Cimbolo Family Trust
	  	$	50,000
	 Justin Betance
	  	$	40,000
	 Keith Kretschmer
	  	$	100,000

 SCHEDULE 6.11(e) 
 EMPLOYEE PAYMENTS 
 See Schedule 6.11(g) 

 SCHEDULE 6.11(g) 
 TRIGGERED OBLIGATIONS 
  

				
	 Vacation time accrued thru 3/13/07
	  	$	59,205.71
		
	 Estimated wages, 2/26/07 - 3/13/07
	  	$	81,413.18
		
	 February employee bonus & commission
	  	$	8,984.17
		
	 D. Swets contract buy out
	  	$	70,000.00
		
	 Payroll tax on above
	  	$	26,352.36
		
	 Employer match on 401k, above wages
	  	$	2,196.20

 SCHEDULE 6.12 
 TRADE RIGHTS 
  

			
	 Trademarks & Names:
	  	
		
	Cogent Financial Group-	  	corporate name
	Medicredit-	  	trademark
	Medicredit.com	  	corporate name
	Denticredit	  	trademark
		
	AtNeed Credit	  	trademark
	MC 2000	  	
	PAL AGENCY*	  	fictitious business name
	Paramount Alliance, Ltd*.	  	Corporate name
	Edgewater Financial*	  	
	Surgicredit*	  	trademark

 Business Licenses: 
 California Finance Lender & Broker License File No. 603 6490* 
 City of Long Beach Business License* 
 California Department of Motor Vehicles Commercial Requester Account 
 Louisiana License NOT 11357-0* 
  

	*	These tradenames and other rights are not being assigned to Buyer but are being retained by Seller 

 SCHEDULE 6.13 
 LITIGATION 
 Seller has received verbal threats of litigation as a result of the activities of third party
collector Vocational Recovery Solutions, LLC. Seller can give no assurance that these borrower complaints are resolved or that they will not ultimately result in litigation.

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