Cardholder Agreement

NOTICE TO THE CUSTOMER: (1) Please read this application before signing. (2) You are entitled to a completely filled in copy of this Agreement. Keep this Agreement to protect your legal rights. (3) Any person signing this application represents that it is a valid business entity, a legal person, and above the age of 18. Customer has duly authorized the execution of this application and has acknowledged the fee schedule and associated documentation involved.

PLEASE NOTE that this information is provided for general information purposes only and is not specific to you. See your Credit Line Agreement and Security Agreement, including the Pricing Schedule thereto, that is provided for your Credit account for more detailed information. The information included below is accurate as of {CURRENT_DATE}

PRICING SCHEDULE
Interest Rates and Interest Charges
Annual Percentage Rate (APR) for Purchases	5.24% - 26.24% APR varies based on market movements and fluctuations in the Prime Rate.
APR for Balance Transfers	Not Applicable.
APR for Cash Advances	29.99%
Penalty APR and When it Applies	29.99%
How to Avoid Paying Interest on Purchases.	Your due date is at least 25 days after the close of each billing period (at least 23 days for billing periods that begin in February). We will not charge you any interest on purchases. You will not pay interest on purchases, however you may still incur a late fee if you fail to pay the minimum balance on time.
Minimum APR Interest Charge	1.00%
For Credit Card Tips from the Federal Reserve Board	To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard
Fees, Charges and Surcharges
Annual Fee	$59 - $595 The annual fee will be assessed before you begin using your card and will reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of $500, your initial available credit will be $441 - $205.
Late Payment Fee	$29.00
Returned Payment	$49.00
Application Fee	$0 You will not be charged an application fee
Monthly Account Servicing Charge	$0 You will not be charged a monthly fee
Utilization Surcharge	1.00% - 2.00% Only pay for what you use! A Utilization Surcharge is an affordable way to pay smaller percentages based on how much of your credit balance you utilize. (Example: if you use $1,000 in credit, you only pay the above percentage on that $1,000 + your minimum amount owed.)
Payment Processing and Convenience Fee Standard Processing Expedited Processing	$0.00 $9.99

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)." See your account agreement for more details.

CREDIT LINE AGREEMENT AND SECURITY AGREEMENT:

For additional information about the costs and terms of your Karat Wealth Builder Credit Card Account ("Account"), see your Credit Line Agreement and Security Agreement. The Credit Line Agreement and Security Agreement and your Account will be governed by California and applicable federal law, but we will rely on the provisions of California law with respect to the fees and charges (other than interest) that apply to your Account, as authorized by California Statutes Section 1747-1748.95. The Credit Line Agreement and Security Agreement permits us to change the terms of your Account, including the rates, fees and other credit terms, subject to us providing advance notice to you if required by law.

APPLICATION INFORMATION:

Federal law requires that we obtain certain information about you such as your date of birth and street address in order to verify your identity. You authorize us to receive and exchange information about you, including from your employer, your bank, credit bureaus and others for purposes of verifying your identity and the information on this application and determining your eligibility for credit, renewal of credit, and future extensions of credit. By providing your phone numbers, you agree that Evolve Bank & Trust, Karat, and they’re its affiliates and agents, may call you at these numbers. If this is a cell phone number you agree that we may contact you using an automatic dialer, including pre-recorded messages and/or text messages, even if your cell phone provider may charge you for calls according to your current plan. Upon your request, we will inform you of the name and address of each consumer reporting agency from which we obtained a consumer report relating to you. Offer only available to U.S. residents 18 and older. Every applicant, regardless of marital status, can apply for a separate account. THIS OFFER SUPERSEDES ALL PRIOR OFFERS. Terms of this offer, including fees and calculations of variable rates, are accurate as of 8/26/2021, and may change after that date. To find out what may have changed after that date, write to us at Evolve Bank & Trust c/o Karat, 517 N Mountain Ave, Upland, CA 91786 or contact us at https://Karat.com/contact. Please allow 30 days for us to process your application.

STATE DISCLOSURES:

(1) MARRIED WISCONSIN RESIDENTS: You agree that no provision of any marital property agreement, unilateral statement under the Wisconsin Marital Property Law or court decree will adversely affect our interests unless, prior to the time credit is granted, we are given a copy of the agreement, statement, or decree or we have actual knowledge of the adverse provision. (2) CALIFORNIA RESIDENTS: An applicant, if married, may apply for a separate account. Applicants: (1) may, after credit approval, use the credit card account up to its credit limit; (2) may be liable for amounts extended under the plan to any joint applicant. As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.

(3) OHIO RESIDENTS: The Ohio laws against discrimination require that all creditors make credit equally available to all credit worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers

compliance with this law.

(4) NEW YORK RESIDENTS: New York residents may contact the New York State Department of Financial Services by telephone or visit its website for free information on comparative credit card rates, fees and grace periods. NY State Dept of Financial Services: 1-800-342-3736 or visiting http:// www.dfs.ny.gov/consumers/banking_money

(5) NEW YORK AND VERMONT RESIDENTS: We may obtain your credit reports, for any legitimate purpose associated with the account or the application or request for an account, including but not

limited to reviewing, modifying, renewing and collecting on your account. On your request, you will be informed if such a report was ordered. If so, you will be given the name and address of the consumer reporting agency furnishing the report. If you are a Vermont resident, you consent to the obtaining of such reports by signing or otherwise submitting a credit application.

(6) DELAWARE AND OREGON RESIDENTS: Service charges not in excess of those permitted by law will be charged on the outstanding balances from month to month. You may pay more than the minimum payment due, up to your entire outstanding balance, at any time.

(7) UTAH RESIDENTS: As required by Utah law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.

ELIGIBILITY:

In order to be eligible for the Karat Wealth Builder Credit Card, you either previously must have had, or you currently have, a Merchant Account, Integrated Payables Account, OR Partial Security Deposit Account in good standing with Karat. You must operate a business in the US that has been operating for at least 6 months. You must be able to make electronic payments using either a U.S. bank account or debit card with an average monthly balance of at least $10,000, and you must have and maintain a credit rating of at least 650. You must be able to receive electronic statements through the website, https://Karat.io, or mobile app. You must be able to submit the card application through the website, https://Karat.io, or mobile app.

SECURED ACCOUNT; PROVISION OF SECURITY DEPOSIT:

The Account associated with the Karat Wealth Builder Credit Card is a Credit Card account. In consideration of the creation of the Account and the issuance of the card, you agree to provide a security deposit, in accordance with the terms of the Security Agreement, as set forth below.

APPLICATION AGREEMENT:

By signing and/or submitting this application for the Karat Wealth Builder Credit Card issued by Evolve Bank & Trust, you agree that:

1. All information provided in this application is true, correct, and complete and that you have the legal capacity to enter into this contract.

2. Evolve Bank & Trust is authorized to verify or check any of the information given and to obtain credit reports on you. You authorize Evolve Bank & Trust to obtain information from others to investigate your credit, employment and income history and state records including state employment security agency records and to report information regarding your Account to business credit agencies and/or consumer reporting agencies.

3. Your Karat Wealth Builder Credit Card will be secured by a Security Deposit Account, but may initially be secured by your future receivables (if you have a merchant account with Karat or Evolve Bank & Trust in good standing). You agree to be bound by the terms and conditions of the Security Agreement, as set forth below.

4. Evolve Bank & Trust will open the Security Deposit Account in your name. The Security Deposit Account does not earn interest. We may change these terms at any time by adding new terms or deleting or amending current terms. The amount deposited by you (subject to any minimum requirement) in the new Security Deposit Account will be used as collateral to secure the obligations to Evolve Bank & Trust that you incur from time to time in connection with your Account. If you currently have a Merchant Account, your Account will initially be secured by the Rolling Reserves that also secures your Merchant Account. Your Karat One

Credit Card Account and the security deposit is subject to the terms of the Credit Line Agreement and Security Agreement.

Security Agreement

This is the Security Agreement for your Account. The words "you," "your," and "yours," mean you and any other person(s) who will be contractually liable under the Credit Line Agreement and Security Agreement governing the Account. The words "our," "us," and "we," mean Karat. "Business days" are Monday through Friday, excluding Federal Reserve Bank holidays.

1. Security; Security Deposit Account

In consideration of and as a condition to our opening the Account for you and for other good and valuable consideration, you are providing or otherwise arranging for certain of your funds ("Funds") to serve as security for your Account. You authorize us to open a deposit account at Bank in your name and under our exclusive control (the "Security Deposit Account"), which will serve as security for your Account. You grant us a security interest in the Security Deposit Account, which will include any and all future additions to the Security Deposit Account. No portion of the Security Deposit Account may be used to secure other loans. The minimum amount required to be deposited in the Security Deposit

Account is the amount of your Account credit line, but will not be less than $1,250. You may make a transfer to the Security Deposit Account solely for purposes of funding your required security deposit. The Security Deposit Account will be solely owned by you. Funds in the Security Deposit Account at Bank are insured by the Federal Deposit Insurance Corporation ("FDIC") up to the maximum allowable limits. For more detailed information on FDIC coverage, contact the FDIC directly at 1-877-ASKFDIC (1-877-275-3342), (TDD: 1-800-925-4618) or visit www.fdic.gov.

a. If you have a Merchant Account. If you currently have a Merchant Account (managed by Karat) with Evolve Bank & Trust or another bank then (1) you agree that the Rolling Reserves (“Reserves”) that has been established in connection with your Merchant Account constitutes Funds that serve as security for your Account; (2) you grant us a security interest in the Reserves; and (3) you agree that Evolve Bank & Trust has the sole and absolute right and authority to direct the disposition of the Funds held in the Reserves without your consent or agreement (subject to any prior lien of the bank holding the Reserves), and that you authorize and direct the financial institution with which you have established a Merchant Account to comply with such direction. Upon closure, default, or full repayment of your Merchant Account, you authorize and direct us to, on your behalf, cause the transfer from the Reserves to the Security Deposit Account, of an amount equal to your credit limit (at the time of the transfer) for your Account (or the full amount of the funds remaining from your Reserves, if less

than your credit limit) and you authorize and direct the financial institution holding the Reserves to comply with such direction. Once Funds have been transferred from the Reserves to your Security Deposit Account, those Funds will continue to serve as security for your Account. We may choose, in our discretion, not to perfect our security interest in a Reserves held at another bank.

b. If you do not have a Merchant Account. If you currently do not have a Merchant Account, then you agree to transfer Funds from another funding source owned by you (such as a deposit account or prepaid card) to the Security Deposit Account to serve as security for your Account. Your Account will not be opened until your Security Deposit Account has been funded.

2. Withdrawals

You will not be permitted to make withdrawals from the Security Deposit Account (See Section 9 below for terms and conditions regarding return of the Funds and closure of your Account.) We will have the right to withdraw your funds from the Security Deposit Account as permitted under Sections 8 and 9 below.

3. Additional Funds

Other than depositing Funds to secure your Account, you will not be permitted to make deposits to the Security Deposit Account.

4. Security Deposit Account Statements

You will get a monthly Security Deposit Account statement as part of your Account statement.

5. Electronic Fund Transfers to or from your Security Deposit Account

You may fund your Security Deposit Account with an electronic fund transfer ("Transfer"). If we do not complete a Transfer to your Security Deposit Account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, we will not be liable if circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken. In case of errors or questions about your funding Transfers call us at 1-888-656-3823or write us at Evolve Bank & Trust c/o Karat,517 N Mountain Ave, Upland CA 91786 as soon as you can, if you think your statement is wrong or if you need more information

about a funding Transfer listed on the statement. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. (1) Tell us your name and Account number. (2) Describe the error or the Transfer you are unsure about and explain as clearly as you can why you believe it is an error or why you need more information. (3) Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 Business Days. We will determine whether an error occurred within 10 Business Days after we hear from you and will correct any error promptly. If we need more time, however, we may

take up to 45 days to investigate your complaint or question. If we decide to do this, we will credit your Security Deposit Account within 10 Business Days for the amount you think is in error (if applicable), during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 Business Days, we may not credit your Security Deposit Account (if applicable). For errors involving a new Security Deposit Account, we may take up to 90 days to investigate your complaint or question. For a new Security Deposit Account, we may take up to 20 Business Days to credit your Security Deposit Account (if applicable) for the amount you think is in error. We will tell you the results within three Business Days after completing our investigation.

6. Pledge and Grant of Security Interest

You understand that granting us a security interest in the Security Deposit Account (or the Reserves, to the extent that funds in the Reserves constitute the Funds that serve as security for your Account) is a necessary condition for opening your Account. Your Account will not be opened until you have either provided us a security interest in the Reserves or funded the Security Deposit Account. As security for the prompt payment and performance of all your obligations to us arising pursuant to the Account ("Obligations"), you hereby grant a security interest to us in all of your right, title, and interest in the Security Deposit Account, the Reserves (if any), and any and all Funds, including all proceeds of and additions to the Security Deposit Account, the Reserves, and the Funds. We may increase or decrease your Account credit line and no such action shall change the fact that the Security Deposit Account, the Reserves (if any), and the Funds, are held by us as security for the Obligations. You represent that there are no current lawsuits or bankruptcy proceedings that might affect our interest in the Security Deposit

Account, the Reserves, or the Funds. You have not and will not attempt to transfer or offer any interest in the Security Deposit Account or the Funds to any person other than us. You and we acknowledge that subject to our possession of and security interest in the Security Deposit Account and the Funds, you retain beneficial ownership of the Security Deposit Account and the Funds held at the Bank for FDIC insurance purposes.

7. Interest on Funds

No interest will be paid on the Funds. If we do pay interest on Funds in the Security Deposit Account in the future, we will add it to the Security Deposit Account.

8. Application of Funds to the Account

If you are in default under the Credit Line Agreement or the Account is closed for any reason, you authorize us at any time(s) to withdraw all or any portion of the Funds from the Security Deposit Account or the Reserves and apply them to reduce your Obligations. Any such application of Funds will not constitute any part of the Minimum Payment Due under the Credit Line Agreement. You will continue to be responsible for making payments as required under the Credit Line Agreement and for repaying any outstanding Obligations. Our rights under this Security Agreement are in addition to any others we have under applicable law. We may make settlements or compromises on the Security Deposit Account, transfer the Security Deposit Account to our name, or exercise ownership rights on the Security Deposit Account. We are not required to notify you of any of the above.

9. Return of Funds

If we determine that you qualify for return of any Funds from the Security Deposit Account, we will return these Funds to you by a method we deem sufficient. If your Account is closed, we will return any excess Funds that remain in the Security Deposit Account after repayment of all Obligations. We generally return these excess Funds within ten days after the end of the second billing period following the time that Funds are initially applied to reduce your Obligations. If we mail a check to you, we will mail it to your mailing address on file with us for the Security Deposit Account. In the event of your death, we will not release Funds on deposit unless all Obligations have been repaid and all legal

documents we require are delivered to us.

10. Confidentiality

We will disclose information to third parties about your Security Deposit Account or any transfers you make: (a) where it is necessary for completing a transfer, or (b) in order to verify the existence and condition of your Security Deposit Account for a third party, or (c) in order to comply with government agency or court orders, or (d) if you give us your written permission, or (e) as permitted by the privacy notice we have provided to you.

11. Legal Proceedings

We may comply with any writ of attachment, adverse claim, garnishment, tax levy, restraining order, subpoena, warrant, or other legal proceeding involving your Security Deposit Account which we believe to be valid. If your Account, your Security Deposit Account, or your Funds become involved or are likely to become involved in a legal proceeding, you understand that the entire balance of your Funds in the Security Deposit Account may be restricted until the matter has been resolved. Such proceedings are subject to our security interest. We shall be entitled to rely upon the representations, warranties, and statements made in such legal proceedings. You agree to hold harmless and indemnify us for any losses, expenses and costs, including reasonable attorneys' fees, incurred by us as a result of complying with such legal proceedings. In addition to the events of default set forth in the Credit Line Agreement, you will be in default under the Credit Line Agreement if we are served or become involved with a legal proceeding regarding the Funds or Security Deposit Account.

12. Miscellaneous

This Security Agreement and our security interest and rights as pledge hereunder are governed by California law. We may, in our sole discretion, assign the Security Deposit Account and our rights and obligations under this Security Agreement. If we use an attorney to defend or enforce our rights under this Security Agreement or to perform any legal services in connection with this Security Agreement, we may charge you our legal costs as permitted by law. This Security Agreement is part of the Credit Line Agreement. The other terms of the Credit Line Agreement apply to this Security Agreement, and any disputes regarding the terms of this Security Agreement are subject to Arbitration as set forth in the Credit Line Agreement. The terms of this Security Agreement shall survive and continue to apply to the Security Deposit Account following closure of the Account or the Security Deposit Account and shall be binding on you even if you cancel your Account or do not accept the Credit Line Agreement as permitted in the Credit Line Agreement. If any part of the Security Agreement is invalid, the rest of the Security

Agreement will remain in effect.

13. Guaranty

In consideration for extending credit to the business entity in whose name this account is held, each person who signed the application for this account as a guarantor, jointly and severally if more than one, unconditionally guarantees to Karat and its successors and assigns the prompt payment when due of every payment under this Credit Line Agreement, as the same may be amended from time to time, and the payment on demand of the entire unpaid balance and all other obligations of the business entity or any other obligor hereunder (collectively, the "Obligors") if the Obligors default in the performance of such obligations in any manner, without first requiring holder to proceed against the Obligors or any Collateral. I/we warrant that the Credit Line Agreement is genuine, legally valid, and enforceable and waive notice of acceptance thereof and of defaults thereunder. I/we agree that Karat may, without affecting my/our liability, compromise, or release, by operation of law or otherwise, any rights against and grant extensions of time for payment to any Obligor. If I/we default on any obligation under this Guaranty and Karat refers the same to an attorney for collection, I/we shall also be liable for and shall pay Karat, if not prohibited by law, reasonable attorney’s fees.

This Guaranty shall be continuing and shall remain in full force and effect until the Credit Line Agreement is terminated and all obligations in connection therewith have been satisfied. This Guaranty shall not be amended or released except by the written agreement of Karat.