Common use of Loan Purpose and Other Standards Clause in Contracts

Loan Purpose and Other Standards. (a) No End Loan will be made in order to place under the protection of the approved SSBCI- MLGP prior debt that is not covered under the approved SSBCI-MLGP and that is or was owed by the Borrower to the Lender or to an affiliate of the Lender; (b) Each End Loan shall be a new extension of credit to the Borrower by the Lender: i) and, if such End Loan is to refinance the Borrower’s existing loan, line of credit, extension of credit, or other debt originally made by an unaffiliated lender, the proceeds of the End Loan shall not be used to finance an extraordinary dividend or other distribution, or ii) if any End Loan is a refinancing of a loan previously made to the Borrower by the Lender or an affiliate of the Lender: (1) the amount of such End Loan is at least 150 percent of the outstanding amount of the matured loan. A matured loan or line of credit only includes such that have matured according to their terms and does not include a loan or line of credit that has been accelerated to maturity; and (2) such End Loan shall be based on a new underwriting of the small business’s ability to repay the Loan and a new approval by the Lender; and (3) the prior loan has been paid as agreed and the Borrower was not in default of any financial covenants under the prior loan for at least the previous 36 months (or since origination, if shorter); and (4) the proceeds of the End Loan shall not be used to finance an extraordinary dividend or other distribution. (c) Each End Loan shall not exceed the principal amount of $20 million; (d) The interest rate for each End Loan may not exceed the National Credit Union Administration’s (NCUA) interest rate ceiling for loans made by federal credit unions as described in 12 U.S.C. § 1757(5)(A)(vi)(I) and set by the NCUA board (See for reference, the National Credit Union Administration, Letter to Federal Credit Unions, “Permissible Loan Interest Rate Ceiling Extended,” August 2021. (e) The End Loan Documents may not include any of the following provisions: (1) confessions of judgment; (2) prepayment or “double-dipping” fees (“double dipping” occurs when a lender issues new credit to refinance prior credit without forgiving a portion of the fee already paid and results in the Borrower paying a fee on top of a fee); or (3) upfront fees or charges paid by the small business, excluding fees to the state program, that exceed 3 percent for loans greater than $25,000 or $750 for loans equal to or less than $25,000. (f) The End Loan Documents must include disclosure by the Lender of all key terms in an easy-to-understand manner. In addition to all other applicable federal and state securities and lending disclosure laws, rules and regulations which continue to apply and are not superseded by the following, such Lender disclosures should include, for example, the End Loan amount; payment obligation and schedule; any terms giving the Lender control over the Borrower’s cash balances, cash flows or ownership; any conversion rights and future rights to purchase equity; and any fees or extra costs; and

Loan Purpose and Other Standards. (a) No End Loan will be made in order to place under the protection of the approved SSBCI- MLGP prior debt that is not covered under the approved SSBCI-MLGP and that is or was owed by the Borrower to the Lender or to an affiliate of the Lender; (b) Each End Loan shall be a new extension of credit to the Borrower by the Lender: i) and, if such End Loan is to refinance the Borrower’s existing loan, line of credit, extension of credit, or other debt originally made by an unaffiliated lender, : (1) the End Loan is at least 150 percent of the previous outstanding refinanced balance; and (2) the End Loan results in a 30 percent reduction in the fee-adjusted APR contracted for the term of the End Loan; and (3) the proceeds of the End Loan shall not be used to finance an extraordinary dividend or other distribution, or ii) if any End Loan is a refinancing of a loan previously made to the Borrower by the Lender or an affiliate of the Lender: (1) the amount of such End Loan is at least 150 percent of the outstanding amount of the matured loan. A matured loan or line of credit only includes such that have matured according to their terms and does not include a loan or line of credit that has been accelerated to maturity; and (2) such End Loan shall be based on a new underwriting of the small business’s ability to repay the Loan and a new approval by the Lender; and (3) the prior loan has been paid as agreed and the Borrower was not in default of any financial covenants under the prior loan for at least the previous 36 months (or since origination, if shorter); and (4) the proceeds of the End Loan shall not be used to finance an extraordinary dividend or other distribution. (c) Each End Loan shall not exceed the principal amount of $20 million; (d) The interest rate for each End Loan may not exceed the National Credit Union Administration’s (NCUA) interest rate ceiling for loans made by federal credit unions as described in 12 U.S.C. § 1757(5)(A)(vi)(I) and set by the NCUA board (See for reference, the National Credit Union Administration, Letter to Federal Credit Unions, “Permissible Loan Interest Rate Ceiling Extended,” August 2021. (e) The End Loan Documents may not include any of the following provisions: (1) confessions of judgment; (2) prepayment or “double-dipping” fees (“double dipping” occurs when a lender issues new credit to refinance prior credit without forgiving a portion of the fee already paid and results in the Borrower paying a fee on top of a fee); or (3) upfront fees or charges paid by the small business, excluding fees to the state program, that exceed 3 2 percent for loans greater than $25,000 or $750 500 for loans equal to or less than under $25,000. (f) The End Loan Documents must include disclosure by the Lender of all key terms in an easy-to-understand manner. In addition to all other applicable federal and state securities and lending disclosure laws, rules and regulations which continue to apply and are not superseded by the following, such Lender disclosures should include, for example, the End Loan amount; payment obligation and schedule; any terms giving the Lender control over the Borrower’s cash balances, cash flows or ownership; any conversion rights and future rights to purchase equity; and any fees or extra costs; and

Loan Purpose and Other Standards. (a) No End The Loan will be has not been made in order to place under the protection of the approved SSBCI- MLGP MLPP prior debt that is not covered under the approved SSBCI-MLGP MLPP and that is or was owed by the Borrower to the Lender or to an affiliate of the Lender; (b) Each End The Loan shall be is a new extension of credit to the Borrower by the Lender: i) and, if such End the Loan is to refinance the Borrower’s existing loan, line of credit, extension of credit, or other debt originally made by an unaffiliated lender, : (1) the Loan is at least 150 percent of the previous outstanding refinanced balance; and (2) the Loan results in a 30 percent reduction in the fee-adjusted APR contracted for the term of the Loan; and (3) the proceeds of the End Loan shall are not be used to finance an extraordinary dividend or other distribution, or ii) if any End the Loan is a refinancing of a loan previously made to the Borrower by the Lender or an affiliate of the Lender: (1) the amount of such End the Loan is at least 150 percent of the outstanding amount of the matured loan. A matured loan or line of credit only includes such that have matured according to their terms and does not include a loan or line of credit that has been accelerated to maturity; and (2) such End the Loan shall be is based on a new underwriting of the small business’s ability to repay the Loan and a new approval by the Lender; and (3) the prior loan has been paid as agreed and the Borrower was not in default of any financial covenants under the prior loan for at least the previous 36 months (or since origination, if shorter); and (4) the proceeds of the End Loan shall are not be used to finance an extraordinary dividend or other distribution. (c) Each End The Loan shall does not exceed the principal amount of $20 million; (d) The interest rate for each End the Loan may not exceed the National Credit Union Administration’s (NCUA) interest rate ceiling for loans made by federal credit unions as described in 12 U.S.C. § 1757(5)(A)(vi)(I) and set by the NCUA board (See for reference, the National Credit Union Administration, Letter to Federal Credit Unions, “Permissible Loan Interest Rate Ceiling Extended,” August 2021. (e) The End Loan Documents may not include any of the following provisions: (1) confessions of judgment; (2) prepayment or “double-dipping” fees (“double dipping” occurs when a lender issues new credit to refinance prior credit without forgiving a portion of the fee already paid and results in the Borrower paying a fee on top of a fee); or (3) upfront fees or charges paid by the small business, excluding fees to the state program, that exceed 3 2 percent for loans greater than $25,000 or $750 500 for loans equal to or less than under $25,000. (f) The End Loan Documents must include disclosure by the Lender of all key terms in an easy-easy- to-understand manner. In addition to all other applicable federal and state securities and lending disclosure laws, rules and regulations which continue to apply and are not superseded by the following, such Lender disclosures should include, for example, the End Loan amount; payment obligation and schedule; any terms giving the Lender control over the Borrower’s cash balances, cash flows or ownership; any conversion rights and future rights to purchase equity; and any fees or extra costs; and (g) The Loan shall not be used for the development of a stadium or arena for use by a professional sports team or development of a casino or property associated or affiliated with the operation of a casino as prohibited by the Act (see MCL 125.2088c(3)(a) and (b)), or to induce the Borrower, a qualified business, or small business to leave the State of Michigan, or to contribute to the violation of internationally recognized workers’ rights, of workers in a country other than the US, or to fund an entity incorporated in a tax haven country, as prohibited by the Act (see MCL 125.2088c(4)(c), (d), and (e)). (h) NTD: MUST USE EITHER OF THE BELOW The Lender shall at all times retain the percentage ownership of the Loan in the amount of no less that the greater of: (x) the Lender Share or (y) 50.1% of the total balance of the Loan. OR SUPORTED BY THE SSCBI-MLPP. To the extent the Borrower, is at the same time as closing the Loan, also closing another loan from an otherwise eligible third-party lender that is not supported by the MSF under the SSBCI-MLPP (“Non-Program Loan”), the Lender shall at all times retain the percentage ownership of the Loan in the amount of no less that the greater of: (x) the Lender Share or (y) 20% of the total balance of the Loan provided all the following is met: (a) The principal balance of the Loan is $500,000 or less, and such principal balance of the Loan amount is less than the principal balance of the Non- Program Loan; and (b) the Loan will reach maturity at or before the date of the maturity of the Non- Program Loan; and (c) the Non-Program Loan must close at the same time as the Loan.

Loan Purpose and Other Standards. (a) No End The Loan will be has not been made in order to place under the protection of the approved SSBCI- MLGP MLPP prior debt that is not covered under the approved SSBCI-MLGP MLPP and that is or was owed by the Borrower to the Lender or to an affiliate of the Lender; (b) Each End The Loan shall be is a new extension of credit to the Borrower by the Lender: i) and, if such End the Loan is to refinance the Borrower’s existing loan, line of credit, extension of credit, or other debt originally made by an unaffiliated lender, the proceeds of the End Loan shall are not be used to finance an extraordinary dividend or other distribution, or ii) if any End the Loan is a refinancing of a loan previously made to the Borrower by the Lender or an affiliate of the Lender: (1) the amount of such End the Loan is at least 150 percent of the outstanding amount of the matured loan. A matured loan or line of credit only includes such that have matured according to their terms and does not include a loan or line of credit that has been accelerated to maturity; and (2) such End the Loan shall be is based on a new underwriting of the small business’s ability to repay the Loan and a new approval by the Lender; and (3) the prior loan has been paid as agreed and the Borrower was not in default of any financial covenants under the prior loan for at least the previous 36 months (or since origination, if shorter); and (4) the proceeds of the End Loan shall are not be used to finance an extraordinary dividend or other distribution. (c) Each End The Loan shall does not exceed the principal amount of $20 million; (d) The interest rate for each End the Loan may not exceed the National Credit Union Administration’s (NCUA) interest rate ceiling for loans made by federal credit unions as described in 12 U.S.C. § 1757(5)(A)(vi)(I) and set by the NCUA board (See for reference, the National Credit Union Administration, Letter to Federal Credit Unions, “Permissible Loan Interest Rate Ceiling Extended,” August 2021. (e) The End Loan Documents may not include any of the following provisions: (1) confessions of judgment; (2) prepayment or “double-dipping” fees (“double dipping” occurs when a lender issues new credit to refinance prior credit without forgiving a portion of the fee already paid and results in the Borrower paying a fee on top of a fee); or (3) upfront fees or charges paid by the small business, excluding fees to the state program, that exceed 3 percent for loans greater than $25,000 or $750 for loans equal to or less than $25,000. (f) The End Loan Documents must include disclosure by the Lender of all key terms in an easy-easy- to-understand manner. In addition to all other applicable federal and state securities and lending disclosure laws, rules and regulations which continue to apply and are not superseded by the following, such Lender disclosures should include, for example, the End Loan amount; payment obligation and schedule; any terms giving the Lender control over the Borrower’s cash balances, cash flows or ownership; any conversion rights and future rights to purchase equity; and any fees or extra costs; and (g) The Loan shall not be used for the development of a stadium or arena for use by a professional sports team or development of a casino or property associated or affiliated with the operation of a casino as prohibited by the Act (see MCL 125.2088c(3)(a) and (b)), or to induce the Borrower, a qualified business, or small business to leave the State of Michigan, or to contribute to the violation of internationally recognized workers’ rights, of workers in a country other than the US, or to fund an entity incorporated in a tax haven country, as prohibited by the Act (see MCL 125.2088c(4)(c), (d), and (e)). (h) NTD: MUST USE EITHER OF THE BELOW The Lender shall at all times retain the percentage ownership of the Loan in the amount of no less that the greater of: (x) the Lender Share or (y) 50.1% of the total balance of the Loan. OR SUPORTED BY THE SSCBI-MLPP. To the extent the Borrower, is at the same time as closing the Loan, also closing another loan from an otherwise eligible third-party lender that is not supported by the MSF under the SSBCI-MLPP (“Non-Program Loan”), the Lender shall at all times retain the percentage ownership of the Loan in the amount of no less that the greater of: (x) the Lender Share or (y) 20% of the total balance of the Loan provided all the following is met: (a) The principal balance of the Loan is $500,000 or less, and such principal balance of the Loan amount is less than the principal balance of the Non- Program Loan; and (b) the Loan will reach maturity at or before the date of the maturity of the Non- Program Loan; and (c) the Non-Program Loan must close at the same time as the Loan.

Loan Purpose and Other Standards. (a) No End The Loan will be has not been made in order to place under the protection of the approved SSBCI- MLGP CAP prior debt that is not covered under the approved SSBCI-MLGP CAP and that is or was owed by the Borrower to the Lender or to an affiliate of the Lender; (b) Each End The Loan shall be a new extension of credit to the Borrower by the Lender: i) and, if such End Loan is to refinance the Borrower’s existing loan, line of credit, extension of credit, or other debt originally made by an unaffiliated lender, the proceeds of the End Loan shall not be used to finance an extraordinary dividend or other distribution, or ii) if any End Loan is a refinancing of a loan previously made to the Borrower by the Lender or an affiliate of the Lender: (1) the amount of such End Loan is at least 150 percent of the outstanding amount of the matured loan. A matured loan or line of credit only includes such that have matured according to their terms and does not include a loan or line of credit that has been accelerated to maturity; and (2) such End Loan shall be is based on a new underwriting of the small business’s ability to repay the Loan and a new approval by the Lender; and (3) the prior loan has been paid as agreed and the Borrower was not in default of any financial covenants under the prior loan for at least the previous 36 months (or since origination, if shorter); and (4) the proceeds of the End Loan shall not be used to finance an extraordinary dividend or other distribution. (c) Each End The Loan shall does not exceed the principal amount of $20 5 million; (d) The interest rate for each End the Loan may does not exceed the National Credit Union Administration’s (NCUA) interest rate ceiling for loans made by federal credit unions as described in 12 U.S.C. § 1757(5)(A)(vi)(I) and set by the NCUA board (See for reference, the National Credit Union Administration, Letter to Federal Credit Unions, “Permissible Loan Interest Rate Ceiling Extended,” August 2021.; (e) The End Loan Documents may documents do not include any of the following provisions: (1) confessions of judgment; (2) prepayment or “double-dipping” fees (“double dipping” occurs when a lender issues new credit to refinance prior credit without forgiving a portion of the fee already paid and results in the Borrower paying a fee on top of a fee); or (3) upfront fees or charges paid by the small business, excluding fees to the state program, that exceed 3 percent for loans greater than $25,000 or $750 for loans equal to or less than $25,000.; and (f) The End Loan Documents must documents include disclosure by the Lender of all key terms in an easy-to-to- understand manner. In addition to all other applicable federal and state securities and lending disclosure laws, rules and regulations which continue to apply and are not superseded by the following, such Lender disclosures should include, for example, the End Loan amount; payment obligation and schedule; any terms giving the Lender control over the Borrower’s cash balances, cash flows or ownership; any conversion rights and future rights to purchase equity; and any fees or extra costs; and.