On March 29, 2019, Heritage Global Inc. (the “ Company ”) entered into the Change in Terms Agreement and the First Amendment to Business Loan Agreement (collectively, the “ Amendments ”), which amend the Company’s secured promissory note and business loan agreement, respectively, with First Choice Bank (the “ Credit Facility ”). The Amendments, among other things, (i) increase the principal amount of the revolving line of credit to $3.0 million , (ii) extend the maturity date of the Credit Facility to April 5, 2020, and (iii) raise the floor interest rate under the Credit Facility from 5.25% to 5.50%. Pursuant to the Amendments, t he Company will pay interest on the Credit Facility in regular monthly payments beginning on May 5, 2019, rather than on November 5, 2018.

The Amendments retain certain customary financial covenants and negative covenants that, among other things, include restrictions on the Company’s ability to create, incur or assume indebtedness for borrowed money, including capital leases or to sell, transfer, mortgage, assign, pledge, lease, grant a security interest in, or encumber any of the Company’s assets. Pursuant to the Amendments, the Company has also covenanted to reflect positive net income of no less than $250,000 on a quarterly basis, with the adding back of all non-cash expenses and the deducting of all non-cash income.

This summary is qualified in its entirety by reference to the full text of the Amendments, which are attached hereto as Exhibit 10.1 and 10.2, and incorporated by reference herein.