Prepayment Incentive Program Parameters and Exclusions

1. The Balboa Prepayment Incentive does not apply to competitor payoffs and will not be honored for any customer who has defaulted on their payments to Balboa Capital. Funds used to pay Balboa Capital must come directly from the borrower’s own funds. No prepayment penalties are applied to your customer nor to you for using or taking advantage of the Balboa Prepayment Incentive. In the event that the Borrower elects to terminate the Business Loan Agreement at any time prior to remitting the Total Repayment Amount, Lender agrees to accept delivery of a reduced Repayment Amount as above. Lender will only accept delivery of a reduced Repayment Amount if; 1. The Borrower has not breached the Business Loan Agreement; and 2. Borrower delivers the Reduced Repayment Amount to Lender using Borrower’s funds. Borrower may not deliver the Reduced Payment Amount to Lender using funds from any Working Capital transactions, Merchant Cash Advance transactions, any Equipment Lease transactions, or any type of borrowing transactions. If the funds come from those aforementioned sources, Borrower must deliver the Total Repayment Amount as stated in the Business Loan Agreement. All other terms of the Business Loan Agreement remain unchanged.

2. Refer to your commission agreement for full details.