Document:

Exhibit 10.34 Loan Agmt

		
			LOAN AND SECURITY AGREEMENT
		

		
			THIS LOAN AND SECURITY AGREEMENT entered into effective as of this day, September 30,  2020 by and between KCT CREDIT UNION,  an Illinois state chartered credit union, located at 111 S Hawthorne Street, Elgin, Illinois (hereinafter sometimes referred to as “Credit Union”) and MINISTRY PARTNERS INVESTMENT COMPANY, LLC, a California limited liability company, located at 915 West Imperial Highway, Suite 120, Brea, CA 92821 (hereinafter referred to as “Borrower”).
		

		
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			Background Information
		

		
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			Borrower is engaged in the business of originating, investing in and/or acquiring commercial church loans secured by a first lien on commercial real property and desires to borrow money from Credit Union under a line of credit facility to assist in providing a short-term demand financing arrangement (“Line of Credit”).  Credit Union will be granted a first lien security interest in (i) each such Commercial/Church Loan ( as hereinafter defined) that will serve as Collateral for the Line of Credit; (ii) the proceeds from the sale of such Commercial/Church Loans unless Borrower substitutes a qualifying Commercial/ Church Loan as Collateral; and (iii) other collateral (collectively, “Collateral”) to secure such Line of Credit and the Credit Union is willing to provide financing to assist in funding the origination and/or acquisition of such Commercial/Church Loans. Borrower hereby acknowledges that the Line of Credit will not be used for operating capital but will be used solely to acquire, pledge and serve as an asset backed credit facility that will support Borrower’s loan funding activities. 
		

		
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			NOW THEREFORE, the parties hereto, intending to be legally bound, agree as follows:
		

		
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			Operative Provisions
		

		
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				 1.
			Definitions.

		
			“Advance” shall mean any provision of money or credit to or for the benefit of Borrower pursuant to this Agreement.
		

		
			 
		

		
			“Advance Date” shall mean the date the Credit Union credits for the benefit of Borrower the Loan Account funds or advances funds to enable Borrower to fund the origination of, or acquisition of a Commercial/Church Loan that will be held as Collateral for the Line of Credit pursuant to the instructions of an authorized executive officer of Borrower carried out in accordance with the Credit Union’s funding procedures.  
		

		
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			“Advance Request” shall mean that document to be executed by Borrower and which shall serve as a cash advance request hereunder by Borrower, in the form of Exhibit A attached hereto, which may be changed from time to time at the sole discretion of the Credit Union.
		

		
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			“Affiliate” means, with respect to a specified Person, another Person that directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the Person specified.
		

		
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			“Appraisal” means an appraisal that satisfies the requirements of an appraisal set forth in the Underwriting Guidelines, including a commercial evaluation report or desk top evaluation when warranted under Borrower’s credit loan policies then in effect and is otherwise in form and substance satisfactory to Credit Union. 
		

		
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			“Base Rate” shall mean the Credit Union’s base commercial rate of interest which is established from time to time by the Credit Union, each change in the Base Rate to become effective, without notice to the Borrower, on the effective date of each change in the Base Rate.
		

		
			 
		

		
			“Borrowing Base” means an amount equal to up to 120.00% of the outstanding principal balance of Borrower’s Collateral Notes in which Borrower owns a participation interest and which would otherwise be Eligible Notes, in each case pledged to Credit Union as Collateral from and after the Effective Date, as determined from time to time.
		

		
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			“Business Day” shall mean 8:00 am until 6:00 pm, Central Time, any Monday through Friday during which the Credit Union is open for the transaction of business in Elgin, Illinois. All payments made to the Line of Credit received after 6:00 pm shall be deemed to have been received the following Business Day.
		

		
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			“Call Date” has the meaning stated in Section 2(b).
		

		
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			“Cash Flow Available for Debt Service” means, with respect to the maker of any Collateral Note for the prior twelve (12) month period most recently ending, such maker’s annual Net Income (or change in net assets) plus interest expense related to the Collateral Loan (if taken out of such maker’s financial statement) plus depreciation (if taken out of such maker’s financial statement) plus amortization (if taken out of such maker’s financial statement), plus principal payments relating to the Collateral Loan, plus interest and principal on Debt of a Collateral Obligor if such Debt has a superior lien position to that of Borrower with respect to any collateral securing such Collateral Loans, for the prior twelve (12) month period most recently ending, provided, that, principal and interest must be derived from financial statement footnotes for any maker that has more than one Collateral Loan outstanding.
		

		
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			“Code” means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of Illinois; provided, that to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different articles or divisions of the Code, the definition of such term contained in Article 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Credit Union’s lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of Illinois, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.
		

		
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			“Collateral” means:
		

		
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				 (a)
			All Collateral Notes and other Collateral Loan Documents relating to such Collateral Notes pledged to Credit Union from time to time;

			
	
			
				 (b)
			All cash paid or consideration received by Borrower from all Purchase Commitments held by, or subsequently obtained by, Borrower;

			
	
			
				 (c)
			All payment intangibles, payment rights, general intangibles and all other rights relating to or arising under the Collateral Loan Documents pledged to Credit Union from time to time; 

			
	
			
				 (d)
			All property of Borrower, now owned or hereafter acquired, upon which Credit Union’s lien is purported to be created by the Collateral Loan Documents; and

			
	
			
				 (e)
			All books, records, and data containing any information, pertaining directly or indirectly to the Collateral and any right of Borrower to retrieve data and other information pertaining directly or indirectly to the Collateral from third parties.

		
			The term “Collateral,” as used herein, shall also include (a) any other property or assets, real or personal, tangible or intangible, now existing or hereafter acquired, of Borrower that may at any time be or become subject to a security interest or lien in favor of Credit Union as security for the Indebtedness, and (b) all supporting obligations (including, but not limited to, all Mortgages, liens, security interests and guaranties relating to or arising under or in connection with the Collateral Notes), products and proceeds of the foregoing (including without limitation, insurance payable by reason of loss or damage to the foregoing property) and any property, securities, guaranties or monies of Borrower which may at any time come into the possession of Credit Union pursuant to such Collateral Loan Documents.
		

		
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			“Collateral Loan” means (a) a loan made by Borrower evidenced by a Collateral Note; (b) all rights, including all rights of repayment, under the Collateral Loan Documents and all other agreements, documents and instruments arising from such loan or relating thereto; and (c) all proceeds arising from such loan or relating thereto (including, but not limited to any collateral acquired by Borrower in the exercise of its rights under the Collateral Loan Documents).
		

		
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			“Collateral Loan Documents” means the Collateral Notes, the Mortgages, and all other agreements (including, without limitation, all security agreements, pledges or other agreements evidencing any lien or encumbrance securing a Collateral Note), guaranties, instruments and documents evidencing, securing, governing, guaranteeing, pertaining or relating to a Collateral Note.
		

		
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			“Collateral Note” means the promissory notes or other similar rights to payment executed by a Collateral Obligor and pledged by Borrower (whether as the lead lender or a participant) to Credit Union as Collateral, which are described in Exhibit B attached hereto (as the same may be amended from time to time).
		

		
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			“Collateral Obligor” means any Person who guaranteed or is otherwise obligated to pay or perform all or any portion of the indebtedness evidenced by a Collateral Note whether as a maker, co-signer or in any other capacity.
		

		
			 
		

		
			“Commercial/Church Loan” shall mean or refer to the deed of trust, Mortgage or other instrument granting to the Borrower, or the holder of such deed of trust, a priority first security lien upon the property therein described.
		

		
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			“Committed Line” shall be  Seven Million and No Dollars ($7,000,000) and shall mean that portion of the Maximum Line of Credit which the Credit Union agrees to provide assuming all conditions precedent to each Advance request have been met by the Borrower.
		

		
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			“Constituent Documents” means the organizational and governance documents and agreements of a Person.
		

		
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			“Credit Facility” has the meaning stated in Section 2 (a).
		

		
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			“Credit Union” shall mean KCT Credit Union, Elgin, Illinois.
		

		
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			“Debt” means as to any Person at any time (without duplication) all items of indebtedness, obligation or liability of a Person, whether mature or unmatured, liquidated or unliquidated, direct or indirect, absolute or contingent, joint or several, that should be classified as liabilities in accordance with GAAP.
		

		
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			“Debt Service” means a sum equal to (a) the payments of principal and interest on a Collateral Note for the prior twelve (12) month period most recently ending, and (b) the payments of principal and interest on Debt of a Collateral Obligor for the prior twelve (12) month period most recently ending, if such Debt has a superior lien position to that of Borrower with respect to any collateral securing a Collateral Loan. 
		

		
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			“Debt Service Coverage Ratio” shall mean, in respect of a Person and for any period of determination, the ratio, computed on a rolling prior twelve (12) month basis, of (a) Cash Flow Available for Debt Service to (b) Debt Service.
		

		
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			“Default” means any Event of Default or event which with notice and/or the passage of time would be an Event of Default.
		

		
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			“Effective Date” means the date the Loan and Security Agreement is entered into.
		

		
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			“Eligible Notes” means those Collateral Notes which comply with all of the following:
		

			
	
			
				 (a)
			Credit Union has a perfected first priority security interest in any such Collateral Note and in the other Collateral Loan Documents relating thereto and in any collateral or support obligations relating thereto.

			
	
			
				 (b)
			The Collateral Note complies with all applicable laws, rules, and regulations governing the Loan Documents.

			
	
			
				 (c)
			The Collateral Note is enforceable in accordance with its terms against the maker and the performance of any obligations thereunder has been completed by Borrower.

			
	
			
				 (d)
			Borrower has good and indefeasible title to such Collateral Note and the other Collateral Loan Documents, or portion thereof, and such Collateral Loan Documents are not subject to any lien except liens in favor of Credit Union.  To the extent Borrower has sold participation interests in such Collateral Note and other Collateral Loan Documents, only the percentage interest of the Collateral Note not sold by Borrower shall be considered an Eligible Note.

			
	
			
				 (e)
			The indebtedness evidenced by such Collateral Note is not subject to any setoff, counterclaim, defense, dispute, recoupment, or adjustment.

			
	
			
				 (f)
			(A) The maker of such Collateral Note is not insolvent or the subject of any bankruptcy or insolvency proceeding and has not made an assignment for the benefit of creditors, suspended normal business operations, dissolved, liquidated, terminated its existence, ceased to pay its debts as they become due, or suffered a receiver or trustee to be appointed for any of its assets or affairs, or (B) the Collateral Note is not “uncollectable” (a Collateral Note is “uncollectable” if it is the subject of any foreclosure order entered into by a court or carried out by law in a non-judicial proceeding, charged off by Borrower, or if the maker of the Collateral Note ceases to be a legal entity under applicable law).

			
	
			
				 (g)
			The Collateral Note is not owed by an affiliate, employee, officer, director or equity holder of Borrower.

			
	
			
				 (h)
			The Collateral Note complies with the covenants in this Agreement applicable thereto.

			
	
			
				 (i)
			With respect to Eligible Notes pledged as substitute Collateral under Section 5(b), each substitute Collateral Note:

			
	
			
				 (i)
			was originated or purchased by Borrower in the ordinary course of its business and in accordance with its Church and Ministry Loan Policy and is serviced by Borrower or a servicer in accordance with its credit and collection policy;

			
	
			
				 (ii)
			creates a valid, subsisting, and enforceable first priority security interest in Borrower’s favor in the property covered by the Mortgage and contains customary and enforceable provisions adequate for the realization against the collateral of the benefits of the security;

			
	
			
				 (iii)
			arises under a duly authorized, delivered and validly existing and enforceable Collateral Note and is secured by a Mortgage;

			
	
			
				 (iv)
			is a loan to an evangelical church or other religious organization that has been in operation for at least three (3) years, and is not an Affiliate of Borrower;

			
	
			
				 (v)
			at the time the loan was made or acquired, has a loan-to-value ratio which does not exceed 75.00% based upon the most recent Appraisal that was performed within twelve (12) months of the loan origination or acquisition date, or, if such loan is pledged more than two (2) years after the loan was originated or acquired, satisfies such loan-to-value ratio  pursuant to a commercial evaluation report or desk top appraisal made available to Borrower;

			
	
			
				 (vi)
			at the time it is pledged, has a Debt Service Coverage Ratio of 1.20 to 1.00 based on the Collateral Obligor’s current financial statements;

			
	
			
				 (vii)
			has an original amortization period of three hundred (300) months or less;

			
	
			
				 (viii)
			requires interest to be payable no less frequently than monthly on a current basis;

			
	
			
				 (ix)
			is a fully drawn, permanent whole debt obligation with no obligation for future advances and is not a construction loan;

			
	
			
				 (x)
			is fully assignable without any requirement to obtain the consent of, or give notice to, any person;

			
	
			
				 (xi)
			is not delinquent;

			
	
			
				 (xii)
			is an “instrument” or “tangible chattel paper” within the meaning of Section 9.102 of the Code;

			
	
			
				 (xiii)
			is insured by a title insurance policy in the minimum amount equal to the original principal balance of such Collateral Note; 

			
	
			
				 (xiv)
			is secured by mortgaged property which is insured by an insurance policy covering standard fire and traditional perils and provides for standard coverage against loss or damage;

			
	
			
				 (xv)
			if a participated Collateral Loan, (a) is subject to a participation agreement or loan documents which Borrower or the lead lender acts as administrative and collateral trustee or the lead trustee and (b) Borrower or the lead lender controls the enforcement and foreclosure of the Collateral Loan; and

			
	
			
				 (xvi)
			has not been previously pledged as collateral to another lender by Borrower; provided, however, if such loan has been pledged and released from any obligation to such lender, it may be used as a Collateral Loan under this Line of Credit.

		
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			“Event of Default” has the meaning stated in Section 12.
		

		
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			“Facility Note” means, collectively, any promissory note evidencing all or part of the Indebtedness from time to time (as any such note may be amended, modified or restated from time to time), a copy of which is attached hereto as Exhibit C.
		

		
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			“GAAP” means generally accepted accounting principles, applied on a consistent basis, as set forth in Opinions of the Accounting Principles Board of the American Institute of Certified Public Accountants and/or in statements of the Financial Accounting Standards Board and/or their respective successors and which are applicable in the circumstances as of the date in question.  Accounting principles are applied on a “consistent basis” when the accounting principles applied in a current period are comparable in all material respects to those accounting principles applied in a preceding period.
		

		
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			“Indebtedness” means (a) all indebtedness, obligations and liabilities of Borrower to Credit Union of any kind or character, now existing or hereafter arising, under the Facility Note, this Agreement, the other Loan Documents, (b) all accrued but unpaid interest on any of the indebtedness described in (a) above, (c) all obligations of Borrower to Credit Union under the Loan Documents, (d) all costs and expenses incurred by Credit Union in connection with the collection and administration of all or any part of the indebtedness and obligations described in (a), (b) and (c) above or the protection or preservation of, or realization upon, the collateral securing all or any part of such indebtedness and obligations, including without limitation all reasonable attorneys’ fees and (e) all renewals, extensions, modifications and rearrangements of the indebtedness and obligations described in (a), (b), (c) and (d) above.
		

		
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			“Line of Credit” or “Loan” shall mean the credit facility governed hereby.
		

		
			 
		

		
			“Liquidity” shall mean the sum of all Borrower assets owned and held in cash or accounts which can be converted to cash within thirty (30) days, including but not limited to checking accounts, money market or savings, certificates of deposit, and marketable securities held in assets which can be converted to cash within thirty (30) days. 
		

		
			 
		

		
			“Loan Account” shall mean that account established by the Credit Union pursuant to Section 2.e. hereof.
		

		
			 
		

		
			 “Loan Documents” means this Agreement, the Facility Note, and the other agreements, instruments and documents evidencing, securing, governing, guaranteeing or pertaining to the Loan, but excluding the Collateral Loan Documents.
		

		
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			“Material Adverse Effect” means a material adverse effect on (a) the business, assets, property, operations, condition or prospects of Borrower, (b) the ability of Borrower to pay or perform the Indebtedness, (c) any of the rights of or benefits available to Credit Union under the Loan Documents or (d) the validity or enforceability of the Loan Documents.
		

		
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			“Maturity Date” has the meaning stated in Section 2(k)
		

		
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			“Maximum Line of Credit” shall be Seven Million and No Dollars ($7,000,000) and shall consist of the Committed Line; provided, however, that such limit complies with Credit Union’s applicable requirements under state law and its business lending policy then in effect.
		

		
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			“Minimum Collateralization Ratio” means as of any Reporting Date, the percentage obtained by dividing the outstanding principal balance of Borrower’s Eligible Notes pledged to Credit Union as Collateral by the outstanding principal amount of the Indebtedness as of the date determined.
		

		
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			“Maximum Rate” has the meaning ascribed to it in Section 2(i).
		

		
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			“Mortgage” means a mortgage or deed of trust executed in connection with a Collateral Note evidencing an encumbrance on real property.
		

		
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			“Net Income” means for any period, a Person’s before-tax net income for such period, as determined in accordance with GAAP; provided that, if such Person’s net income includes real property lease payments, such payments shall only be included in net income if a written lease agreement under which such leases payments arise has been executed; provided further that, if the tenant under the lease is an Affiliate of such Person, such payments shall only be included in such Person’s net income if such Person supplies written evidence of the prior twelve (12) months’ payment history under the lease agreement.
		

		
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			“Overadvance” has the meaning stated in Section 2(a).
		

		
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			“Permitted Encumbrances” means the following encumbrances: (a) liens for taxes, assessments or governmental charges or levies not yet due and payable or liens for taxes, assessments or governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves have been established in accordance with GAAP; (b) liens created by or pursuant to the Loan Documents; (c) prior liens in existence on the Effective Date which are reasonably substantiated by Borrower; (d) liens arising from judgments, decrees, awards or attachments in circumstances not constituting an Event of Default; (e) liens securing the OSK VII, LLC credit facility; and (f) interests in Collateral Loans which have been sold under participation agreements.
		

		
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			“Person” means any individual, corporation, limited liability company, business trust, association, company, partnership, joint venture, governmental authority, or other entity, and shall include such Person’s heirs, administrators, personal representatives, executors, successors and assigns.
		

		
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			“Purchase Commitment” means a written commitment, subscription for or purchase agreement issued in favor of Borrower by an investor or group of investors pursuant to which that investor or group of investors commits to purchase an interest in a Collateral Loan.
		

		
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			“Prime Rate” shall mean the charged offered rate for a one month term as published in the Wall Street Journal, each change in Prime Rate to become effective, without notice to the Borrower, on the date of publication of each such change.
		

		
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			“Reporting Date” means the date specified in a statement of value of Collateral delivered under Section 10(e).
		

		
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			“Required MCR” has the meaning stated in Section 2(c).
		

		
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			“Tangible Net Worth” shall mean total assets minus total liabilities less the sum of: goodwill, organization costs, receivables due from parties related to this credit, and other assets as specified by Credit Union as unacceptable, plus payables due to parties related to this credit, all measured in accordance with GAAP.
		

		
			 
		

		
			“Termination Date” shall mean the first to occur of (i) the maturity date stated in the Facility Note, or (ii) the occurrence of an Event of Default.
		

		
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			“Underwriting Guidelines” means the credit approval guidelines used by Borrower in the origination of Collateral Notes, a copy of which is attached to this Agreement as Exhibit D.
		

		
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			“Warehouse Line” has the meaning ascribed to it in Section 2(i).
		

		
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				 2.
			Credit Facility.

			
	
			
				 a)
			Credit Facility.  Subject to the terms and conditions set forth in this Agreement and the other Loan Documents, Credit Union hereby agrees to make the Loan (the “Credit Facility”) to Borrower in an amount equal to the lesser of (i) the Borrowing Base, or (ii) Seven Million and No Dollars ($7,000,000), commencing on the Effective Date.  If at any time the sum of the aggregate principal amount of the Loan outstanding hereunder exceeds the Borrowing Base, such amounts shall be deemed an “Overadvance.”  Borrower shall repay the amount of such Overadvance plus all accrued and unpaid interest thereon upon in accordance with Section 2(b) of this Agreement.  Notwithstanding anything contained herein to the contrary, an Overadvance shall be considered part of the Loan and shall bear interest at the interest rates set forth in the Note and be secured by this Agreement.

			
	
			
				 b)
			Overadvance.  If at the close of business on any Business Day an Overadvance shall have occurred and be continuing, then prior to the close of business on the fifth (5th) Business Day after the occurrence of such event (such date, being a “Call Date”), Borrower shall prepay a portion of the Loan in an amount equal to the Overadvance, provided, however, no such payment shall be required if prior to the close of business on the Call Date, Borrower assigns to Credit Union pursuant to this Agreement a replacement Eligible Note (or Eligible Notes) that is (are) in an amount sufficient to cause Borrower to be in compliance with the Borrowing Base.

			
	
			
				 c)
			Minimum Collateralization.  Borrower shall maintain at all times a Minimum Collateralization Ratio of at least 120.00% (the “Required MCR”).  If at any time Credit Union determines that Borrower has failed to maintain the Required MCR, Borrower shall prepay a portion of the Loan (prior to the close of business on the fifth (5th) Business Day after notice to Borrower following such determination) in an amount sufficient to be in compliance with the Required MCR, provided, however, no such payment shall be required if Borrower assigns to Credit Union pursuant to this Agreement a replacement Eligible Note (or Eligible Notes) that is (are) in an amount sufficient to cause Borrower to be in compliance with the Required MCR.

			
	
			
				 d)
			Maximum Line.  The sum of all outstanding advances under this Agreement shall not exceed the Maximum Line of Credit. Credit Union and Borrower agree that Seven Million and No Dollars ($7,000,000) of the Maximum Line of Credit shall be offered by the Credit Union in the form of a Committed Line. Borrower is aware that Advances made under the Line of Credit must be aggregated with other loans to Borrower and Affiliates of Borrower for purposes of calculating Credit Union’s legal lending limit. Borrower represents and warrants, to the best of its knowledge, that Borrower does not exceed Credit Union’s loan to one borrower limits.

			
	
			
				 e)
			Loan Account. Borrower shall execute a Facility Note in the amount of the maximum Line of Credit and Credit Union shall maintain a Loan Account for the Borrower which shall be debited to the extent of any loans to or Advances for the account of Borrower made by Credit Union pursuant to this Agreement. Borrower’s Loan Account shall be credited with the proceeds received in good funds by Credit Union from a Purchase Commitment, and with such other funds actually received by Credit Union to reduce Borrower’s indebtedness under the Line of Credit. Credit Union shall render to Borrower a monthly statement of Borrower’s Loan Account established pursuant to this Agreement showing all debits and credits thereto, which statement of account shall be considered correct and binding upon Borrower unless Borrower furnishes to Credit Union, within seven (7) days from receipt of such statement, written notice of any exceptions thereto, each of which exception shall be specified in such notice. It is the intention of the parties that Borrower’s indebtedness under this Agreement shall be evidenced by this Agreement and the Facility Note.

			
	
			
				 f)
			Funding of Line. Credit Union will provide a Credit Facility clearing account upon which Borrower will draw funds either by check or by wire/electronic transfer in an amount equal to the Advance made on an Advance Date pursuant to Credit Union’s funding procedures as they may be amended from time to time by Credit Union in its sole discretion. The Credit Union’s obligation to fund Advances under the Line of Credit is subject to satisfaction of the following conditions precedent:

			
	
			
				 (1)
			The Committed Line portion of the Borrower’s Maximum Line of Credit shall not be exceeded;

			
	
			
				 (2)
			 There shall exist no condition or event constituting an Event of Default as defined in Section 12 hereof or under the Facility Note;

			
	
			
				 (3)
			The warranties included in Section 7 hereof shall be true and correct as though made at such time of presentment and Borrower shall have performed, or caused to have been performed, all of its covenants under this Agreement through such time;

			
	
			
				 (4)
			Borrower shall have furnished the following documents to Credit Union with respect to each Advance:

			
	
			
				 (a)
			A copy of the Advance Request, completed in all material respects and

			
	
			
				 (b)
			Such other documentation as to any Eligible Note or Commercial/Church Loan held as Collateral under the Credit Facility as the Credit Union may reasonably request.

			
	
			
				 (c)
			A current form of Exhibit B, as amended, confirming the Collateral pledged under this Agreement. 

		
			All documentation shall be satisfactory in form and substance to Credit Union. All such documentation requiring the signature of the Borrower shall have been signed by a duly authorized officer of Borrower, and Credit Union shall be and it is hereby so authorized, to rely upon any signature on any such document as having been authorized.
		

		
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			Notwithstanding the occurrence of Termination Date, the Credit Union, at its sole and absolute discretion, may thereafter permit the Borrower to draw funds hereunder in accordance with the terms, conditions and provisions hereof. Any draws permitted by Credit Union after the Termination Date shall not constitute an extension, renewal or modification of the Line of Credit or the Termination Date, the waiver by Credit Union of any Event of Default, or otherwise obligate the Credit Union to permit subsequent draws hereunder.
		

		
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				 g)
			Additional Documentation.  Borrower covenants that it will promptly obtain and deliver, or cause to be obtained and delivered any additional loan or other documentation reasonably requested by Credit Union which is customary for lenders in the commercial church and ministry loan business in order to make each Collateral Note and Commercial/Church Loan marketable. Upon demand by the Credit Union, the Borrower shall deliver to the Credit Union any and all collateral pertaining to each Eligible Note and Commercial/Church Loan.

			
	
			
				 h)
			Repayment of Line of Credit.  The entire principal amount of each individual Advance under the Line of Credit, and all fees and interest accrued thereon, shall be payable, on the earlier of:

			
	
			
				 (1)
			One hundred and twenty (120) days from the Advance Date for each draw under the Credit Facility; 

			
	
			
				 (2)
			The earliest date on which a Collateral Loan becomes past due for  sixty (60) days or more; provided, however, that Borrower may  cure such deficiency by delivering a substitute Eligible Note and Commercial/ Church Loan as Collateral for the benefit of Credit Union within ten ( 10) days after receiving written notice of such deficiency; 

			
	
			
				 (3)
			The date the Borrower assigns, sells, transfers, conveys, or commences foreclosure upon an Eligible Note or Commercial/Church Loan held as Collateral for the Credit Facility , or

			
	
			
				 (4)
			Termination of this Agreement.

			
	
			
				 i)
			Interest on Line of Credit.  Borrower agrees to pay interest from the Advance Date until the repayment of such Advance in accordance with Section 2.h., above. The disbursed and unpaid principal balances of the Indebtedness secured hereby shall bear interest prior to repayment at a variable rate per annum (“Warehouse Rate”) which shall, from day to day, be equal to the lesser of (a) the maximum effective variable contract rate of interest (“Maximum Rate”) which Credit Union may from time to time lawfully charge, or (b) a rate equal to Prime + .50%. It is agreed that interest on the Facility Note shall be calculated on the basis of a 365 (366 in leap year) day year unless calculation on that basis would result in Credit Union receiving interest at a rate in excess of the maximum rate of interest which Credit Union is permitted by law to contract for and charge, in which case such Indebtedness shall bear interest at such maximum rate. The Indebtedness shall also bear interest after maturity (whether by demand, acceleration or otherwise) at the maximum rate of interest which Credit Union is permitted by law to contract for and charge thereon.

			
	
			
				 j)
			Notice and Manner of Requesting Advances.   All Advances shall be funded through a Credit Facility clearing account upon which Borrower will draw funds either by check or by wireless/electronic advance in an amount equal to the Advance Amount, to be funded in accordance with the Credit Union’s then current funding procedures, which procedures may change from time to time in its sole discretion.  Borrower shall submit a copy of the Advance Request via written notice (U.S. Mail, fax transmission, or email and which is effective upon receipt), completed in all material respects and such other documentation as to an Eligible Note and Collateral to secure such advance as Credit Union may reasonably request.  Credit Union shall fund the advance available to Borrower by crediting the Credit Facility Loan Account held at Credit Union within a reasonable time after Borrower requests such Advance.  Borrower shall be deemed to have received the proceeds of the Advance when the Borrower’s Credit Facility Loan Account is funded by Credit Union and shall be liable pursuant to the terms of this Agreement for repayment of any Advances upon funding.

			
	
			
				 k)
			Termination of Line of Credit.  This Agreement shall be effective as of September 30, 2020 and shall terminate on September 30, 2021 and no advances of any type will be permitted after this expiration date unless the facility is renewed.  The Line of Credit shall renew automatically for a one year term unless Credit Union or Borrower furnishes written notice at least thirty (30) days prior to the Termination Date that it does not intend to renew the Agreement.  

			
	
			
				 l)
			Credit Facility Fee.   Borrower agrees that a Line of Credit facility fee equal to 0.25% of the annual Maximum Line of Credit shall be charged by Credit Union and paid by Borrower on an annual basis for providing this credit facility.  The commitment fee shall be paid annually within thirty (30) days of the Effective Date of this Agreement and any renewals thereof.

			
	
			
				 3.
			Credit Union’s Security Interest and Lien

			
	
			
				 a)
			Grant of Security Interests. Borrower hereby pledges, assigns, conveys, transfers and grants to Credit Union a security interest in and to the following, and to the extent the documents, instruments or other items evidencing and representing the following have not been delivered to Borrower, Borrower hereby covenants and agrees to deliver such documents, instruments or other items (the “Collateral”) to Credit Union:

			
	
			
				 (1)
			The Collateral Note for or with respect to each eligible Commercial/Church Loan funded in whole or in part with an Advance under this Line of Credit or delivered as Collateral for the Credit Facility, and all of the indebtedness evidenced by such Collateral Notes.

			
	
			
				 (2)
			All of its right, title and interest in and to the other instruments securing the payment of the indebtedness evidenced by the Collateral Notes including, but not limited to, all escrows, prepaid special assessment payments included thereunder and all servicing rights and proceeds from the sale of servicing rights, (and Borrower hereby subrogates the Credit Union to its position as lien holder to ensure that Credit Union may, at its election, exercise, if necessary, in Borrower’s name, all of the rights of the beneficiary of said Collateral Note  and other similar security instruments).

			
	
			
				 (3)
			All proceeds from the sale or transfer of each Eligible Note.  

			
	
			
				 (4)
			All deposits, monies or consideration received by or on behalf of Borrower with respect to each Eligible Note funded, in whole or in part with an Advance under this Line of Credit or delivered as Collateral for the Credit Facility, including, but not limited to, escrows for insurance, taxes and interest and payments made under the Eligible Note by the mortgagor. 

			
	
			
				 (5)
			All proceeds of any hazard insurance which may arise from damage to or destruction of any Collateral directly or indirectly securing Borrower’s Indebtedness which may arise under this Agreement. 

			
	
			
				 (6)
			Borrower’s right, title and interest in and to any private commercial insurance policy in effect with respect to such Eligible Note and Commercial/Church Loans made available to a Collateral Obligor including proceeds received thereof. 

			
	
			
				 (7)
			Borrower’s right, title and interest in and to any hazard insurance, liability insurance and title insurance pertaining to the real properties securing the Eligible Notes and proceeds thereof. 

			
	
			
				 (8)
			All appraisals, surveys, insurance certificates, and other loan documents pertaining to the Eligible Notes and Commercial/Church Loans delivered to the Credit Union. 

			
	
			
				 (9)
			All general intangibles pertaining to the Eligible Notes and Commercial/Church Loans delivered to the Credit Union. 

			
	
			
				 (10)
			All of the Borrower’s ledger and account cards, computer tapes, disks and printouts, and books and records of Borrower; and any and all other properties and assets of Borrower of whatever nature, tangible or intangible, wherever located and whether now or hereafter existing relating to the Eligible Notes and Commercial/Church Loans delivered to the Credit Union as Collateral.

			
	
			
				 b)
			Collateral Assignments. Notwithstanding the security interest granted by Borrower to Credit Union in the Collateral, Borrower understands and agrees that should Credit Union request, it shall deliver a separate Collateral Assignment of Note, Deed of Trust and Security Agreement with respect to each Eligible Note and Collateral Loan to be funded, in whole or in part with an Advance or Advances hereunder or held as Collateral for the Credit Facility. Notwithstanding the fact that separate instruments will be used, the security interests granted herein shall be in addition to the security interests granted in each such document, and not in substitution or cancellation thereof, so that Credit Union’s security interest in the Collateral shall be construed and expanded to the fullest extent possible.

			
	
			
				 c)
			Collateral Documentation. Borrower covenants and agrees to deliver to Credit Union such assignments, pledges, deeds, financing statements, consents, bailments, and other instruments, documents and agreements as Credit Union or its counsel may deem necessary or appropriate to evidence, confirm, effect or perfect any security interest granted or required to be granted under this Agreement, the Facility Note, or any other instrument or agreement as may be acceptable to Credit Union. Borrower hereby irrevocably authorizes the Credit Union in its discretion: (i) to file without the signature of the Borrower any and all financing statements, modifications and continuations in respect to the Collateral and the transactions contemplated by this Agreement (ii) to sign any such statement, modification or continuation on behalf of the Borrower if the Credit Union deems such signature necessary or desirable under applicable law and (iii) to file a carbon, photographic or other reproduction of any financing statement or modification if the Credit Union deems such filing necessary or desirable under applicable law provided that so long as no Event of Default is then continuing, the Credit Union shall accord the Borrower an opportunity to review and sign any proposed financing statement or modification (but not continuation), with the Credit Union exercising its authority hereunder to sign on behalf of the Borrower if the Borrower has not signed within a reasonable period of time (not to exceed thirty (30) days) and provided further that the failure to send any such copy for review or signature shall not affect the validity or enforceability of any such signature and filing by the Credit Union. The Borrower shall promptly reimburse the Credit Union for all costs and expenses incurred in connection with the preparation and filing of any such document, including, but not limited to, stamp taxes, recording taxes, privilege taxes, and filing fees. The Credit Union shall send a copy of any such filing to the Borrower provided, however, that the failure to send that copy shall not affect the validity or enforceability of any such filing. The Credit Union shall not be liable for any mistake in or failure to file any financing statement, modification or continuation.

			
	
			
				 4.
			Note, Rate, Computation of Interest, and Prepayments.  The Credit Facility shall be evidenced by a Note duly executed by Borrower and payable to the order of Credit Union, in form and substance acceptable to Credit Union.  The principal of and interest on the Note shall be due and payable in accordance with the terms and conditions set forth in the Note and in this Agreement.  All payments made by Borrower under this Agreement and the other Loan Documents shall be made to Credit Union at Credit Union’s offices as set forth herein in dollars and immediately available funds, without setoff, deduction or counterclaim, and free and clear of all taxes, at the time and in the manner provided in the Note.  Borrower shall promptly, and in any event within ten (10) days of any such occurrence, prepay the Note as follows:

			
	
			
				 a)
			If Borrower receives proceeds from the sale of a Collateral Loan (under a Purchase Commitment or otherwise), Borrower shall prepay the Note in an amount sufficient to cause Borrower to comply with the Required MCR; and

			
	
			
				 b)
			If Borrower receives prepayment (in whole or in part) or payment in full of any Collateral Note (whether at maturity, by acceleration, from third party capital or otherwise), which causes a failure by Borrower to comply with the Required MCR, Borrower shall prepay the Note in an amount sufficient to cause Borrower to comply with the Required MCR; provided that, if Borrower exercises its right to substitute an Eligible Note as provided in Section 5(b), then no prepayment of the Note shall be required as a result of such prepayment.  

			
	
			
				 5.
			Collateral.

			
	
			
				 a)
			Borrower Remains Liable.  Notwithstanding anything to the contrary contained herein, (i) Borrower shall remain liable under the contracts and agreements included in the Collateral to the extent set forth therein to perform all of Credit Union’s respective duties and obligations thereunder to the same extent as if this Agreement had not been executed; (ii) the exercise by Credit Union of any of its rights hereunder shall not release Borrower from any of its duties or obligations under the contracts and agreements included in the Collateral and (iii) Credit Union shall not have any obligation or liability under any of the contracts and agreements included in the Collateral by reason of this Agreement, nor shall Credit Union be obligated to perform any of the obligations or duties of Borrower thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

			
	
			
				 b)
			Substitution of Collateral Notes.  If any Collateral Note is paid in full or is no longer an Eligible Note, Borrower may, at any time and from time to time, substitute one or more additional Eligible Notes in place of such Collateral Note, provided that the outstanding principal balance of such substitute Eligible Note is sufficient in amount to cause Borrower to comply with the Required MCR.  Borrower shall execute any and all documents deemed necessary or required by Credit Union to evidence the assignment of any substitute Collateral Note, together with all security therefore (including the other Collateral Loan Documents relating thereto), to Credit Union.

			
	
			
				 c)
			Additional Documents.  To secure full and complete payment and performance of the Indebtedness, Borrower shall execute and deliver or cause to be executed and delivered all of the Loan Documents reasonably required by Credit Union covering the Collateral.  Borrower shall execute and cause to be executed such further documents and instruments, as Credit Union, in its reasonable discretion, deems necessary or desirable to create, evidence, preserve and perfect its liens and security interests in the Collateral.  In the event any of the Loan Documents evidencing or securing the Indebtedness misrepresents or inaccurately reflects the correct terms and/or provisions of the Indebtedness, Borrower shall upon request by Credit Union and in order to correct such mistake, execute such new documents or initial corrected, original documents as Credit Union may deem reasonably necessary to remedy said errors or mistakes.  Borrower shall execute such other documents as Credit Union shall deem reasonably necessary to correct any defects or deficiencies in the Loan Documents.  Borrower’s failure to execute such documents as requested shall constitute an Event of Default under this Agreement.

			
	
			
				 d)
			Satisfaction of Indebtedness.  Until the Indebtedness has been indefeasibly paid and fully satisfied (other than contingent indemnification obligations to the extent no unsatisfied claim has been asserted) and the commitments of Credit Union under the Credit Facility have been terminated, Credit Union shall be entitled to retain the security interests in the Collateral granted under the Loan Documents and the ability to exercise all rights and remedies available to Credit Union under the Loan Documents and applicable laws.

			
	
			
				 e)
			Collection and Servicing Rights. So long as no Event of Default shall have occurred and be continuing, Borrower or Borrower’s designated servicing agent shall be entitled to service, and shall continue to service the Collateral Loans, and to receive and collect directly all sums payable to Borrower in respect of the Collateral. 

			
	
			
				 f)
			Release of Collateral.  If on any monthly  valuation date Borrower determines that the value of the Collateral Loans exceeds the amount necessary to maintain Required MCR of 120.00%,  Borrower may request and receive a release of Collateral Loans up to the dollar amount sufficient for Borrower to maintain compliance with such Minimum Collateralization Ratio.  So long as no Event of Default shall have occurred and be continuing, the release of Collateral Loans shall be subject to mutual agreement between Credit Union and Borrower on the specific Collateral Loans(s) to be released.  

			
	
			
				 6.
			Conditions Precedent.

			
	
			
				 a)
			Loan.  The obligation of Credit Union to make the Loan under the Credit Facility is subject to the condition precedent that Credit Union shall have received, or such condition shall be otherwise satisfied, as of the Effective Date, to Credit Union’s satisfaction:

			
	
			
				 (1)
			Closing Certificate.  A closing certificate of an officer of Borrower, which certifies: (1) the resolutions of Borrower authorizing the execution, delivery, and performance of the Loan Documents that Borrower is a party to; (2) certificates of the appropriate government officials and any governing body of Borrower, and (to the extent required by applicable law) any state any such Person is currently doing business as to the existence, qualification and good standing of Borrower, dated no more than ten (10) days prior to the Effective Date; (3) the true and correct Constituent Documents of Borrower; and (4) the names of the individuals or other Persons authorized to sign the Loan Documents that Borrower is a party to, together with specimen signatures of such Persons.

			
	
			
				 (2)
			Loan Documents.  The Loan Documents executed by Borrower.

			
	
			
				 (3)
			Lien Search.  The results of a Code or other lien search showing all financing statements and other documents or instruments on file against Borrower in such locations as Credit Union may reasonably request, dated no more than ten (10) days prior to the Effective Date.

			
	
			
				 (4)
			Financing Statements.  Code financing statements covering the Collateral shall have been filed with such filing offices as Credit Union may request.

			
	
			
				 (5)
			Collateral Notes.  Borrower shall cause to be delivered to Credit Union or its designated agent or set aside in a secure location designated by Credit Union  (who shall hold each Collateral Note for the benefit of Credit Union) (1) each Collateral Note, together with an allonge thereto payable to the order of Credit Union in form and content satisfactory to Credit Union,  and (2) an assignment in blank relating to each Mortgage and the other recorded Collateral Loan Documents, in form and content satisfactory to Credit Union.

			
	
			
				 (6)
			Other Matters.  Such other documents and agreements as may be required by Credit Union in its reasonable discretion, including, but not limited to, approval by the Credit Union’s Board of Directors of the Maximum Line of Credit. 

			
	
			
				 7.
			Representations and Warranties.  Borrower hereby represents and warrants to Credit Union as follows:

			
	
			
				 a)
			Existence.  Borrower (i) is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization; (ii) has all requisite power and authority to own its assets and carry on its business as now being or as proposed to be conducted; and (iii) is qualified to do business in all jurisdictions in which the nature of its business makes such qualification necessary and where failure to so qualify would have a Material Adverse Effect.  Borrower has the power and authority to execute, deliver, and perform its obligations under the Loan Documents to which it is or may become a party.

			
	
			
				 b)
			Binding Obligations.  The execution, delivery, and performance of the Loan Documents by Borrower have been duly authorized by all necessary action by Borrower, and constitute legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles.

			
	
			
				 c)
			Known Defaults. Borrower is not knowingly in default in the performance of any obligations to other financial institutions or to federal, state or municipal authorities.

			
	
			
				 d)
			No Consent.  The execution, delivery and performance of the Loan Documents, and the consummation of the transactions contemplated thereby, do not (i) conflict with, result in a violation of, or constitute a default under (1) any provision of the Constituent Documents (if any) or other instrument binding upon Borrower, (2)  or, to its knowledge, any law, governmental regulation, court decree or order applicable to Borrower, or (3) any contractual obligation, agreement, judgment, license, order or permit applicable to or binding upon Borrower, (ii) require the consent, approval or authorization of any third party, or (iii) result in or require the creation of any lien, charge or encumbrance upon any property or asset of Borrower except as may be expressly contemplated in the Loan Documents. 

			
	
			
				 e)
			Financial Condition.  Each financial statement of Borrower supplied to Credit Union truly discloses and fairly presents Borrower’s financial condition as of the date of each such statement.  There has been no material adverse change in such financial condition or results of operations of Borrower subsequent to the date of the most recent financial statement supplied to Credit Union.

			
	
			
				 f)
			Disclosure.    No statement, information, report, representation, or warranty made by Borrower in the Loan Documents or furnished to Credit Union in connection with the Loan Documents or any of the transactions contemplated hereby contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements herein or therein not misleading.  There is no fact known to Borrower which could reasonably be expected to have a Material Adverse Effect that has not been disclosed in writing to Credit Union.

			
	
			
				 g)
			Security Interest.  Borrower has and will have at all times full right, power and authority to grant a security interest in the Collateral to Credit Union in the manner provided herein, free and clear of any lien, security interest or other charge or encumbrance other than for the Permitted Encumbrances.

			
	
			
				 h)
			Location.  Borrower’s business office where the records concerning the Collateral are kept are at its address set forth on the signature page hereof.

			
	
			
				 i)
			Collateral Notes.

			
	
			
				 (1)
			Ownership; No Liens; Pledge to Credit Union.  (1) Borrower is the sole owner of each Collateral Loan, free and clear of all liens (except for Permitted Encumbrances), and is fully authorized with the consent of Credit Union to sell, transfer, pledge and/or grant a security interest in each and every Collateral Loan; (2) each Collateral Loan is a good and valid loan representing an undisputed bona fide indebtedness incurred or an amount indisputably owed by the Collateral Obligor therein named, for a fixed sum as set forth in the Collateral Loan Documents; (3) no Collateral Loan is subject to any defense, offset, counterclaim, discount or allowance, and, to its knowledge, each Collateral Loan will be collected when due; (4) none of the transactions underlying or giving rise to any Collateral Loan, to its knowledge, violate any applicable state or federal laws or regulations, and all documents relating thereto are legally sufficient under such laws or regulations and shall be legally enforceable in accordance with their terms; (5) all agreements, instruments and other documents relating to any Collateral Loan are true and correct and in all material respects what they purport to be; (6) all signatures and endorsements that appear on all material agreements, instruments and other documents relating to any Collateral Loan are genuine and all signatories and endorsers have full capacity to contract; (7) Borrower has maintained books and records pertaining to said Collateral Loan in such detail, form and scope as Credit Union shall reasonably require; and (8) Credit Union has a first perfected lien on the Collateral. 

			
	
			
				 (2)
			Compliance with Laws; Enforceability; Modification; Required Documents, Etc.  Each Collateral Loan and the Collateral Loan Documents related thereto (1) was made and has been serviced, to its knowledge, in compliance, in all respects, with all requirements of applicable laws, rules and regulations for such loans, (2) is genuine, valid, duly authorized, properly executed and enforceable in accordance with the terms set forth therein, without defense or offset, (3) complies with the terms of this Agreement, and (4) with respect to each Collateral Loan, has been fully advanced in the respective face amounts thereof.

			
	
			
				 (3)
			Underwriting.  Each Collateral Note was underwritten, to its knowledge, in accordance with underwriting guidelines that are not less stringent than the Underwriting Guidelines.

			
	
			
				 (4)
			Collection Practices.  The collection practices used with respect to each Collateral Note has been in all respects legal, proper, prudent and customary in the lending and servicing business with respect to loans similar to the loans evidenced by the Collateral Notes.

			
	
			
				 8.
			Covenants.  Until all Indebtedness of Borrower under the Loan Documents is indefeasibly paid or performed, and Credit Union has no further commitment (if any) to lend under the Credit Facility, Borrower agrees and covenants as follows:

			
	
			
				 a)
			Maintenance.  Borrower will do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges, agreements and franchises material to the conduct of its business.

			
	
			
				 b)
			Books and Records; Inspection Rights.  Borrower will keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities relating to the Collateral Notes.  Borrower will permit any representatives designated by Credit Union, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested. In addition, Borrower agrees to grant the Illinois Department of Financial and Professional Regulation with access to its books and records regarding the Collateral and Credit Facility pursuant to the provisions of Section 12 of the Illinois Credit Union Act. 

			
	
			
				 c)
			Compliance with Laws.  Borrower will comply with all laws, rules, regulations and orders of any governmental authority applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

			
	
			
				 d)
			Compliance with Agreements.  Borrower will comply, in all material respects with any existing credit loan facility and all other material agreements, contracts, and instruments binding on it or affecting its properties, assets or business.

			
	
			
				 e)
			Purchase Commitments.  Borrower shall promptly comply in all respects with the terms and conditions of all Purchase Commitments.

			
	
			
				 f)
			Notices of Material Events.  Borrower will furnish to Credit Union prompt written notice of the following:

			
	
			
				 (1)
			the occurrence of any Default;

			
	
			
				 (2)
			the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against Borrower that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; and

			
	
			
				 (3)
			any and all material adverse changes in Borrower’s financial condition and all claims made against Borrower that could materially affect the financial condition of Borrower.

		
			Each notice delivered under this Section shall be accompanied by a statement of an officer of Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
		

			
	
			
				 g)
			Ownership and Liens.  Borrower will maintain good and indefeasible title to the Collateral free and clear of all liens, security interests, encumbrances or adverse claims, except for Permitted Encumbrances.  Borrower will cause any financing statement or other security instrument with respect to the Collateral to be terminated, except for Permitted Encumbrances.  Borrower will defend at its expense Credit Union’s right, title and security interest in and to the Collateral against the claims of any third party.

			
	
			
				 h)
			Collateral Notes.  Borrower will take such action as may be reasonably requested by Credit Union in order to cause all Collateral Notes to be valid and enforceable and will cause all Collateral Notes to have only one original counterpart.  Upon written request, Borrower will deliver to Credit Union or its agent all Collateral Notes.  Borrower will not deliver possession of such Collateral to any other Person and upon written request from Credit Union, will mark each Collateral Notes with a legend indicating that such Collateral Note is subject to the security interest granted hereunder.  So long as Borrower complies with the Required MCR and is otherwise in compliance with the Agreement, Borrower may sell Collateral Notes in whole or in part, whether by participation or otherwise.

			
	
			
				 i)
			Fundamental Change.  Unless Borrower notifies Credit Union in advance, furnishes a reasonable business purpose for such change and obtains Credit Union’s consent (which shall not be unreasonably withheld, conditioned or delayed), Borrower will not (i) make any material change in the nature of its business as carried on as of the Effective Date, (ii) liquidate, merge or consolidate with or into any other Person, (iii) make a change in the jurisdiction in which it is organized, or (iv) permit any change in (1) the location of any Collateral, (2) the location of any records concerning any Collateral, or (3) the state of Borrower’s organization to another jurisdiction.

			
	
			
				 j)
			Transfer or Encumbrance.  Except as otherwise permitted by this Agreement, Borrower will not (i) sell, assign (by operation of law or otherwise), transfer, exchange, lease or otherwise dispose of any of the Collateral, (ii) grant a lien or security interest in or execute, file or record any financing statement or other security instrument with respect to the Collateral, or (iii) deliver actual or constructive possession of any of the Collateral or its property to any Person other than Credit Union,  Credit Union’s agent or, to the extent a third party is servicing such Collateral, such third party.

			
	
			
				 k)
			Impairment of Security Interest.  Borrower will not take any action that would in any manner impair the enforceability of Credit Union’s security interest in any Collateral.

			
	
			
				 l)
			Compromise of Collateral.  Borrower will not (or will not permit any Person to) adjust, settle, compromise, amend or modify any Collateral, except an adjustment, settlement, compromise, amendment or modification in good faith and in the ordinary course of business; provided, however, this exception shall terminate following written notice from Credit Union upon the occurrence and during the continuation of an Event of Default.  Borrower shall provide to Credit Union such information concerning (i) any adjustment, settlement, compromise, amendment or modification of any Collateral, and (ii) any claim asserted by any account debtor for credit, allowance, adjustment, dispute, setoff or counterclaim, as Credit Union may reasonably request from time to time.

			
	
			
				 m)
			Certain Agreements.  Borrower will not and will not permit any Person to agree to any material amendment or other material change to or material waiver of any of its rights under any Collateral Loan.

			
	
			
				 n)
			Limitations on Credit and Collection Policies.  Borrower will not permit and will not allow any Person to make any change in servicing standards applicable to a Collateral Loan, which change would, based upon the facts and circumstances in existence at such time, reasonably be expected to materially adversely affect the collectability, credit quality or characteristics of the Collateral Loans, taken as a whole, the ability of Borrower to exercise any of its rights and remedies under any Collateral Loan Document, or the ability of Credit Union to exercise any of its rights and remedies hereunder or under any other Loan Document.

			
	
			
				 o)
			Collateral Loan Financial Statements.  Each Collateral Loan extended by Borrower after the Effective Date, and each renewal or extension of a Collateral Loan by Borrower after the Effective Date, shall require the maker of the related Collateral Note to deliver to Borrower, within one hundred and fifty (150) days after the end of each fiscal year of such maker, a financial statement to include a balance sheet and income statement of such maker, as of the end of such fiscal year.

			
	
			
				 p)
			Renewal and Extension of Collateral Loans.  Borrower shall not renew or extend a Collateral Loan unless (i) Borrower has obtained and delivered to Credit Union a recent Appraisal of the real property securing such Collateral Loan which complies with Borrower’s credit policies and procedures, which may be waived with Credit Union’s consent, (ii) such Collateral Loan will continue to amortize over the same number of months as stated in the Collateral Note prior to the renewal and extension thereof, (iii) each Collateral Obligor of such Collateral Loan that is not a natural person is in good standing under the laws of its jurisdiction of organization, (iv) Borrower shall thereafter service such Collateral Loan, and (v) if the maker of such Collateral Loan has a negative annual Net Income or a Debt Service Coverage Ratio of less than 1.00 to 1.00, in either case based on the collateral report compiled from the most recent current financial statement of such maker, such maker is thereafter required to provide to Borrower, within forty-five (45) days after the end of each calendar quarter, financial statements to include a balance sheet and income statement of such maker, as of the end of such calendar quarter all in form and in reasonable detail satisfactory to Borrower and duly certified (subject to year‐end review adjustments) by an appropriate officer of such maker as being true and correct in all material aspects to the best of such officer’s knowledge (subject to year-end adjustments).

			
	
			
				 q)
			Payment of Amounts Due. Borrower will pay the fees, interest and principal on Advances and the debit balance, if any, of Borrower’s Loan Account and Facility  Note executed pursuant hereto in accordance with the terms hereof and thereof, and will observe, perform and comply with every covenant, term and condition herein and therein expressed or implied on the part of Borrower to be observed, performed or complied with. 

			
	
			
				 r)
			Accounts and Reports. Borrower will maintain a standard system of accounting in accordance with generally accepted accounting principles and practices and will furnish to Credit Union any financial reports or other information requested as normally prepared by the Borrower. At reasonable times Credit Union may inspect and copy Borrower’s books and records. 

			
	
			
				 s)
			Adverse Changes. Borrower will promptly notify Credit Union of any material adverse change in its financial condition, of the occurrence of an Event of Default hereunder, or of the filing of any suit or proceeding in which an adverse decision could have a material adverse effect upon it or its business.

			
	
			
				 t)
			Use of Proceeds. Borrower will not request an Advance under the Line of Credit or otherwise use or attempt to use the proceeds of any such Advance other than to fund the origination or acquisition of an Eligible Note, Commercial/Church Loan for which Borrower requests funding under the Line of Credit or for the purpose of pledging the Advance with an Eligible Note and Commercial/ Church Loan under the Credit Facility.  

			
	
			
				 u)
			Net Worth, Liquidity, and Debt-to-Equity.

			
	
			
				 (1)
			Borrower’s Tangible Net Worth will at all times remain above $7,000,000.00. 

			
	
			
				 (2)
			Borrower’s Net Worth shall at all times meet or exceed five percent (5%) of Borrower’s total liabilities. 

			
	
			
				 (3)
			Borrower’s Liquidity shall at all times meet or exceed 110% of the outstanding amount due on the .Facility Note as of the end of each calendar month.  In the event Borrower fails to meet the liquidity covenant as of the end of any calendar month, Borrower agrees to take commercially reasonable actions to cure such deficiency within thirty (30) days of the end of such reporting date.  For the avoidance of doubt, Borrower may satisfy such deficiency by pledging Collateral in an amount equal to two hundred percent (200%) of such deficiency.  

			
	
			
				 9.
			Borrower’s Covenants with Respect to Collateral Loans. Borrower covenants with respect to each Eligible Note and Commercial/Church Loan to be funded hereunder or to be held as Collateral for the Credit Facility that each such Collateral Loan will meet satisfy the following conditions:

			
	
			
				 a)
			Title Insurance. Such Eligible Note and Commercial/Church Loan will have received a title insurance policy in favor of the Borrower or title opinion required by federal and state laws.

			
	
			
				 b)
			Validity and Enforceability. To the best of Borrower’s knowledge, each deed of trust, Mortgage, Collateral Note, promissory note or bond, and similar instrument included in each Eligible Note and Commercial/Church Loan shall have been executed by a person legally competent to execute such papers and shall be a legally valid and enforceable obligation of said person. In addition each Eligible Note, promissory note or similar instrument will be a negotiable instrument under the laws of the state having jurisdiction over such note and the negotiability thereof, and the endorsement of such note or instrument by Borrower, whether such endorsement appears on the body of the note or is accomplished by use of an allonge, is an effective endorsement of the note which does not and will not adversely affect the negotiability of such note or instrument. 

			
	
			
				 c)
			Maintain Security Interest of Credit Union. Borrower will furnish to Credit Union such documents as Credit Union may at any time deem necessary or desirable to perfect and maintain in perfected status Credit Union’s security interest in the Collateral hereunder, to enable Credit Union to enforce any Eligible Note and Collateral Loan or to enable Credit Union to make direct sales and transmittals of Eligible Notes and Collateral Loans to potential investors, and have the proceeds of such sales remitted directly to Credit Union.

			
	
			
				 d)
			Cooperate with Credit Union. Borrower will cooperate at all times through its officers, agents, employees and directors with all officers, agents, employees, attorneys, audit representatives, and accountants of the Credit Union with respect to this Agreement and all actions contemplated or permitted hereunder.

			
	
			
				 10.
			Reporting Requirements.  Until all Indebtedness of Borrower under the Loan Documents is indefeasibly paid and satisfied, and Credit Union has no further commitment to lend under the Credit Facility, Borrower agrees and covenants that it will furnish or cause to be furnished the following:

			
	
			
				 a)
			Interim Financial Statements.  As soon as available, and in any event within thirty (30) days after the end of each calendar month, financial statements to include a balance sheet, income statement and cash flow statement of Borrower, as of the end of such calendar month all in form and in reasonable detail satisfactory to Credit Union and duly certified (subject to year‐end review adjustments) by an appropriate officer of Borrower (i) as being true and correct in all material aspects to the best of such officer’s knowledge (subject to year-end adjustments), and (ii) as having been prepared in accordance with GAAP.  Borrower further agrees to make available to a copy of Borrower’s quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission, if requested.  Borrower may satisfy this delivery requirement by furnishing notification that its quarterly reports have been electronically filed on the EDGAR System of the U.S. Securities and Exchange Commission.

			
	
			
				 b)
			Annual Financial Statements and Tax Returns.  As soon as available and in any event (i) within one hundred twenty (120) days after the end of each fiscal year, a financial statement to include a balance sheet, income statement and cash flow statement of Borrower, as of the end of such fiscal year, audited by independent certified public accountants which are registered with the Public Company Accounting Oversight Board (PCAOB),  and (ii) within one hundred twenty (120) days after the end of each fiscal year, notice that its Annual Report on Form 10-K has been filed electronically on the EDGAR System of the U.S. Securities and Exchange Commission. If requested by Credit Union, Borrower further agrees to deliver a copy of its most recent tax return filed with the Internal Revenue Service within thirty (30) days after such request is made.

			
	
			
				 c)
			Management Letters.  Promptly upon receipt thereof Borrower shall furnish to Credit Union a copy of any management letter or written report submitted to Borrower by independent certified public accountants with respect to the business, condition (financial or otherwise), operations, prospects, or properties of Borrower.  

			
	
			
				 d)
			Notice of Default and Events of Default.  As soon as possible and in any event within five (5) Business Days after the occurrence of each Event of Default, a written notice setting forth the details of such Event of Default and the action which is proposed to be taken by Borrower with respect thereto.

			
	
			
				 e)
			Borrowing Base; Reports on Collateral and Covenants.  As soon as available and in any event within twenty (20) days after the end of each calendar month or more often as may be required by Credit Union, (i) a Borrowing Base report, (ii) a servicing report relating to the Collateral Loans in form and content satisfactory to Credit Union in its reasonable discretion,  and (iii) in connection with the collateral Borrowing Base report delivered to Credit Union for the month following the month in which Borrower receives the current financial statements, copies of such current financial statements and an analysis of each Collateral Obligor’s compliance with the financial covenants under the Collateral Loan Documents. Borrower further agrees to deliver a certificate of valuation of the Collateral and confirmation that it has complied with the financial covenants set forth in Section 8(u) certified by an authorized officer of Borrower within twenty (20) days after the end of each calendar month. 

			
	
			
				 f)
			General Information.  Borrower shall promptly deliver such other information concerning Borrower or the Collateral Loans as Credit Union may request.

			
	
			
				 11.
			Rights of Credit Union.  Credit Union shall have the rights contained in this Section at all times that this Agreement is effective.

			
	
			
				 a)
			Financing Statements.  Borrower hereby authorizes Credit Union to file one or more financing or continuation statements, and amendments thereto, relating to the Collateral.

			
	
			
				 b)
			Power of Attorney.  Borrower hereby irrevocably appoints Credit Union as Borrower’s attorney-in-fact, such power of attorney being coupled with an interest, with full authority in the place and stead of Borrower and in the name of Borrower or otherwise, from time to time following the occurrence and during the continuation of an Event of Default in Credit Union’s reasonable discretion, to take any action and to execute any instrument which Credit Union may deem necessary or appropriate to accomplish the purposes of this Agreement.

			
	
			
				 c)
			Performance by Credit Union.  If Borrower fails to perform any agreement or obligation provided for in any Loan Document (unless waived by Credit Union) within ten (10) days after Credit Union furnishes notice to Borrower of its obligations under a Loan Document, Credit Union may itself perform, or cause performance of, such agreement or obligation, and the expenses of Credit Union incurred in connection therewith shall be a part of the Indebtedness, secured by the Collateral and payable by Borrower on demand.

			
	
			
				 d)
			Borrower’s Receipt of Proceeds.  Upon the occurrence and during the continuation of an Event of Default, all amounts and proceeds (including instruments and writings) received by Borrower in respect of the Collateral shall be received in trust for the benefit of Credit Union hereunder and, upon the written request of Credit Union, shall be segregated from other property of Borrower and shall be forthwith delivered to Credit Union in the same form as so received (with any necessary endorsement) and applied to the Indebtedness in accordance with the Loan Documents.

			
	
			
				 e)
			Notification of Collateral Obligors.  Credit Union may at its reasonable discretion from time to time during the continuation of an Event of Default notify any or all Collateral Obligors under any Collateral Note to make payment of all amounts due or to become due to Borrower thereunder directly to Credit Union.

			
	
			
				 f)
			Collection of Collateral Loans; Management of Collateral.  Nothing herein contained shall be construed to constitute Credit Union as agent of Borrower for any purpose whatsoever, and Credit Union shall not be responsible or liable for any shortage, discrepancy, damage, loss or destruction of any part of the Collateral wherever the same may be located and regardless of the cause thereof (other than from acts of omission or commission constituting gross negligence or willful misconduct as determined by a final judgment of a court of competent jurisdiction).  Credit Union shall not, under any circumstance or in any event whatsoever, have any liability for any error or omission or delay of any kind occurring in the settlement, collection or payment of any of the Collateral Loans or any instrument received in payment thereof or for any damage resulting therefrom (other than acts of omission or commission constituting gross negligence or willful misconduct as determined by a final judgment of a court of competent jurisdiction).  Credit Union, by anything herein or in any assignment or otherwise, does not assume any of the obligations under any contract or agreement assigned to Credit Union and shall not be responsible in any way for the performance by Borrower of any of the terms and conditions thereof.

			
	
			
				 12.
			Events of Default.  Each of the following shall constitute an “Event of Default” under this Agreement:

			
	
			
				 a)
			Payment Default.  The failure, refusal or neglect of Borrower to pay when due any part of the principal of, or interest on the Indebtedness owing to Credit Union by Borrower or any other indebtedness or obligations due and owing from Borrower to Credit Union under the Loan Documents from time to time and such failure, refusal or neglect shall continue without being cured for a period of ten (10) days from the date such payment is due.

			
	
			
				 b)
			Performance or Warranty Default.  Except as otherwise provided in this Section 12, the failure of Borrower to timely and properly observe, keep or perform any covenant, agreement, warranty or condition required herein or in any of the other Loan Documents or any other agreement with Credit Union which is not cured within ten (10) Business Days following written notice from Credit Union to Borrower; provided, that (i) if such default cannot be cured within ten (10) Business Days, (ii) Borrower has, within such period, taken such actions as deemed reasonably necessary and appropriate by Credit Union to cure such default, and (iii) Borrower shall continue to diligently pursue such actions, such cure period shall be extended for a period of thirty (30) days.

			
	
			
				 c)
			Representations.  Any representation contained herein or in any of the other Loan Documents made by Borrower is false, misleading or erroneous in any material respect when made or when deemed to have been made.

			
	
			
				 d)
			Default under other Debt.  The occurrence of any event which permits the acceleration of the maturity of any Debt for borrowed money in an aggregate principal amount in excess of One Million Five Hundred Thousand And No/100 Dollars ($1,500,000.00) owing by Borrower to any third party under any agreement or understanding.

			
	
			
				 e)
			Insolvency.  If Borrower (i) becomes insolvent, or makes a transfer in fraud of creditors, or makes an assignment for the benefit of creditors, or admits in writing its inability to pay its debts as they become due; (ii) generally is not paying its debts as such debts become due; or (iii) has a liquidator, receiver, trustee or custodian appointed for, or take possession of, all or substantially all of its assets.

			
	
			
				 f)
			Failure to Comply.  The failure of Borrower to comply with the requirements of Section 2(b).

			
	
			
				 g)
			Judgment.  The entry of any judgment against Borrower or the issuance or entry of any attachments or other liens against any of the property of Borrower for an amount in excess of One Million Five Hundred Thousand And No/100 Dollars ($1,500,000.00) (individually or in the aggregate) if uninsured, undischarged, unbonded or undismissed on the date on which such judgment could be executed upon.

			
	
			
				 h)
			Action Against Collateral.  The Collateral or any portion thereof is taken on execution or other process of law in any action.

			
	
			
				 i)
			Action of Lien Holder.  The holder of any lien or security interest on the Collateral (without hereby implying the consent of Credit Union to the existence or creation of any such lien or security interest on the Collateral), declares a default thereunder or institutes foreclosure or other proceedings for the enforcement of its remedies thereunder.

			
	
			
				 j)
			Material Adverse Effect.  Any event shall have occurred or is continuing which shall have had a Material Adverse Effect.

			
	
			
				 k)
			Loan Documents.  (i) The Loan Documents shall at any time after their execution and delivery and for any reason cease (1) to create a valid and perfected first priority security interest (subject to Permitted Encumbrances) in and to the Collateral; or (2) to be in full force and effect or shall be declared null and void, or (ii) the validity of enforceability the Loan Documents shall be contested by Borrower or any other Person party thereto or Borrower shall deny it has any further liability or obligation under the Loan Documents.

			
	
			
				 13.
			Credit Union’s Rights and Remedies Upon Default. Upon the occurrence of an Event of Default or upon default in any payment of principal or interest when due or at the time or on the terms provided in any instrument evidencing or related to the  Indebtedness of Borrower arising hereunder or in connection herewith, the Indebtedness arising hereunder shall, at the absolute option of Credit Union, become immediately due and payable, or upon the non-performance by Borrower or any secondarily liable party of any of the agreements or covenants contained herein or in any of the papers related to the Indebtedness arising hereunder or in connection herewith, the said Indebtedness shall at the absolute option of the Credit Union become immediately due and payable, and in any such event Credit Union shall have full power and authority at any time or times thereafter to exercise all or any one or more of the remedies and shall have all of the rights of a secured party under the Uniform Commercial Code of Illinois (Code), and is hereby authorized immediately to sell the whole or any part of the Collateral for the Indebtedness evidenced hereby and by the Facility Note, or any substitute therefore or additions thereto, at any brokers’ board or at public or private sale, at the sole option of Credit Union, without notice of the amounts due or claimed to be due, without demand for payment, without advertisement and without notice of sale, each and all of which is hereby expressly waived, except such notice as is required under said Code and to apply the net proceeds of such sale after deduction of all expenses for collection, sale or delivery, including, but not limited to, attorney’s fees and expenses, to the payment of the Indebtedness to Credit Union specifically secured hereby, returning the surplus, if any, to Borrower unless other disposition thereof is required by said Code. Upon any sale by virtue hereof, Credit Union may purchase, unless otherwise prohibited by said Code, the whole or any part of the aforesaid Collateral discharged from any statutory right of redemption, equity or redemption, exemption from execution, or similar rights all of which are hereby expressly waived and released. Any requirement of said Code for reasonable notice shall be met, if such notice is mailed, postage prepaid, to Borrower at the address of Borrower as shown on the records of Credit Union at least five (5) days prior to the time of the sale, disposition or other event or thing giving rise to the requirement of notice.

			
	
			
				 a)
			 Set-off. It is further agreed that any moneys or other property at any time in the possession of Credit Union belonging to Borrower and held for the benefit of a  Collateral Obligor, and any deposits, balance of sums at any time credited by or due from Credit Union to Borrower, may at all times, at the option of Credit Union, be held and treated as collateral security for the payment of liability of Borrower to Credit Union as provided hereunder and under the terms of the Facility Note, and Credit Union may, at its sole option and at any time or from time to time after default, set off the amount due or to become due hereon against any claim of Borrower against Credit Union. To effect these rights Borrower agrees, upon request by Credit Union, immediately to endorse, sign and execute all necessary instruments as Credit Union may request.

			
	
			
				 b)
			Exercise of Rights and Remedies. No delay or omission to exercise any right, remedy or power shall impair the right, remedy or power nor shall be construed to be a waiver of any Event of Default or an acquiescence therein. No waiver of any Event of Default shall extend to any subsequent Event of Default.    Nothing contained in this Agreement shall be construed to limit the events of default enumerated in any of the other Loan Documents and all such events of default shall be cumulative.

		
			﻿
		

			
	
			
				 14.
			Termination.  This Agreement shall terminate on the Termination Date, unless terminated earlier due to a breach by Borrower provided, however, the indebtedness arising under this Agreement shall mature as provided in Section 2(k). hereof. Termination of this Agreement shall not affect the rights, liabilities, and obligations of the parties with respect to Collateral Loans funded prior to or after termination, or with respect to any security therefore. At the termination, Borrower shall pay to Credit Union in full all obligations which may have arisen under this Agreement, specifically including the payment of the debit balance of the Loan Account and the Facility Note. The Agreement may also be terminated (i) within ninety (90) days of receipt of a letter delivered by the Illinois Department of Financial and Professional Regulation to Credit Union advising that it cease and desist from further operations cease on the grounds that the safety and soundness of the Credit Union is threatened;  or  (ii) immediately in the event that the parties hereto receive notice from the Department Secretary that Credit Union will suffer immediate, substantial and irreparable harm if it remains a party to this Agreement. 

			
	
			
				 15.
			Indemnity.    Borrower shall indemnify Credit Union and hold Credit Union harmless against each and every cost, loss, or expense, including court costs and attorney’s fees, arising from any failure of Borrower to comply with any governmental or regulatory requirements in connection with any Collateral Loan.

			
	
			
				 16.
			Miscellaneous.

			
	
			
				 a)
			Place of Payment of Obligations. All sums payable to Credit Union hereunder shall be paid in Elgin, Illinois, at Credit Union’s principal Credit Union office, the address of which is set forth above, or such other place as Credit Union may designate.

			
	
			
				 b)
			Notices. All notices, requests, consents and demands shall be in writing and shall be mailed by certified or registered mail, return receipt requested, postage prepaid, to the addresses of Borrower and Credit Union, respectively, at the addresses above set out.

			
	
			
				 c)
			Survival of Agreements. All covenants, agreements, representations and warranties made herein shall survive the termination of this Agreement with respect to all Collateral Loans made hereunder prior to such termination, until payment in full of Borrower’s obligations hereunder and under the Facility Note. All statements contained in any certificate or other instrument delivered by Borrower hereunder shall be deemed to constitute representations and warranties made by Borrower.

			
	
			
				 d)
			Parties in Interest. All covenants and agreements contained in this Agreement shall bind and inure to the benefit of the respective successors and assigns of the parties hereto.

			
	
			
				 e)
			Entire Agreement. This Agreement embodies the entire agreement and understanding between the parties and supersedes all prior agreements and understandings relating to the subject matter hereof.

			
	
			
				 f)
			Governing Law. This Agreement shall be deemed a contract made under the laws of Illinois, and shall be construed and enforced in accordance with and governed by the laws of the state of Illinois.

			
	
			
				 g)
			Counterparts. This Agreement may be executed simultaneously in several counterparts, all of which together shall constitute one and the same instrument.

			
	
			
				 h)
			Expenses of Enforcement. Borrower agrees to pay all reasonable attorneys’ fees, expenses and other costs and charges incurred in the execution of the transaction described herein, including, but not limited to, the documentation thereof, the collection of any indebtedness arising under this Agreement, the enforcement of the Credit Union’s rights hereunder, the protection and preservation of any Collateral securing any indebtedness hereunder, the perfection of  any security interest or lien contemplated hereby, and maintaining the perfective status of the same. Borrower’s Loan Account may be debited by the amount of such expenses the payment of which shall be secured in the same manner as loans made hereunder.

		
			﻿
		

		
			[Remainder of Page Intentionally Blank]
		

		

		

		 

 

		
		

		
			IN WITNESS WHEREOF, the parties, through their authorized officers have executed this Agreement effective as of the date set out above on this 30th day of September, 2020.
		

		
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						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						KCT CREDIT UNION, an Illinois state chartered credit union

					
					
						 

					
					
						MINISTRY PARTNERS INVESTMENT COMPANY, LLC, a California limited liability company

					
						 

					
						 

				
	
					
						By:

					
					
						/s/ Joseph Menolascino

					
					
						 

					
					
						By:

					
					
						/s/ Brian Barbre

				
	
					
						﻿

					
					
						Joseph Menolascino, its VP of Operations & Lending

					
					
						 

					
					
						 

					
					
						Brian Barbre, its Chief Financial Officer

				

		
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			﻿Exhibit 4.1

 

WARRANT AGREEMENT

 

Vy Global Growth

 

and

 

CONTINENTAL STOCK TRANSFER & TRUST
COMPANY

 

Dated October 1, 2020

 

THIS WARRANT AGREEMENT (this “Agreement”),
dated October 1, 2020, is by and between Vy Global Growth, a Cayman Islands exempted company (the “Company”),
and Continental Stock Transfer & Trust Company, a New York corporation, as warrant agent (in such capacity, the “Warrant
Agent”).

 

WHEREAS, it is proposed that the Company
enter into that certain Private Placement Warrant Purchase Agreement, with Vy Global Growth Management Co., a Cayman Islands limited
liability company (the “Sponsor”), pursuant to which the Sponsor will purchase an aggregate of 8,000,000
private placement warrants (or 9,000,000 private placement warrants if the Over-allotment Option (as defined below) is exercised
in full) (the “Private Placement Warrants”) bearing the legend set forth in Exhibit B hereto;

 

WHEREAS, the Company is engaged in an initial
public offering (the “Offering”) of units of the Company’s equity securities, each such unit comprised
of one Class A ordinary share of the Company, par value $0.0001 per share (“Ordinary Shares”), and
one-fifth of a redeemable Public Warrant (as defined below) (the “Units”) and, in connection therewith,
has determined to issue and deliver up to 11,500,000 redeemable warrants (including up to 1,500,000 redeemable warrants subject
to the Over-allotment Option) to public investors in the Offering (the “Public Warrants”);

 

WHEREAS, in order to finance the Company’s
transaction costs in connection with an intended initial merger, share exchange, asset acquisition, share purchase, reorganization
or similar business combination, involving the Company and one or more businesses (a “Business Combination”),
the Sponsor or an affiliate of the Sponsor or the Company’s officers and directors may, but are not obligated to, loan to
the Company funds as the Company may require, of which up to $1,500,000 of such loans may be convertible into up to an additional
1,000,000 warrants at a price of $1.50 per warrant (the “Working Capital Warrants,” and, together with
the Private Placement Warrants and the Public Warrants, the “Warrants”);

 

WHEREAS, each Warrant entitles the holder
thereof to purchase one Ordinary Share at a price of $11.50 per share, subject to adjustment as described herein. Only whole Warrants
are exercisable. A holder of Warrants will not be able to exercise any fraction of a Warrant;

 

WHEREAS, the Company has filed with the
Securities and Exchange Commission (the “Commission”) a registration statement on Form S-1, File
No. 333-248814, and a prospectus (the “Prospectus”), for the registration, under the Securities
Act of 1933, as amended (the “Securities Act”), of the Units, the Public Warrants and the Ordinary Shares
included in the Units;

 

WHEREAS, the Company desires the Warrant
Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration,
transfer, exchange, redemption and exercise of the Warrants;

 

    1

     

    

 

WHEREAS, the Company desires to provide
for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights,
limitation of rights, and immunities of the Company, the Warrant Agent and the holders of the Warrants; and

 

WHEREAS, all acts and things have been done
and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned by or on behalf
of the Warrant Agent (if a physical certificate is issued), as provided herein, the valid, binding and legal obligations of the
Company, and to authorize the execution and delivery of this Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements herein
contained, the parties hereto agree as follows:

 

1.            Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant
Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this
Agreement.

 

2.
             Warrants.

 

2.1.            Form of
Warrant. Each Warrant shall initially be issued in registered form only, and, if a physical certificate is issued, shall be
in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and shall be signed
by, or bear the facsimile signature of, the Chairman of the Board, President, Chief Executive Officer, Chief Financial Officer,
Secretary or other principal officer of the Company. In the event the person whose facsimile signature has been placed upon any
Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may
be issued with the same effect as if he or she had not ceased to be such at the date of issuance. All of the Public Warrants shall
initially be represented by one or more book-entry certificates (each, a “Book-Entry Warrant Certificate”).

 

2.2.            Effect
of Countersignature. If a physical certificate is issued, unless and until countersigned by the Warrant Agent pursuant to this
Agreement, a certificated Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.

 

2.3.            
Registration.

 

2.3.1.            Warrant
Register. The Warrant Agent shall maintain books (the “Warrant Register”), for the registration of
original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants in book-entry form,
the Warrant Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations and
otherwise in accordance with instructions delivered to the Warrant Agent by the Company. All of the Public Warrants shall initially
be represented by one or more Book-Entry Warrant Certificates deposited with The Depository Trust Company (the “Depositary”)
and registered in the name of Cede & Co., a nominee of the Depositary. Ownership of beneficial interests in the Public
Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained by (i) the Depositary
or its nominee for each Book-Entry Warrant Certificate, or (ii) institutions that have accounts with The Depository (such
institution, with respect to a Warrant in its account, a “Participant”).

 

If the Depositary subsequently ceases to
make its book-entry settlement system available for the Public Warrants, the Company may instruct the Warrant Agent regarding making
other arrangements for book-entry settlement. In the event that the Public Warrants are not eligible for, or it is no longer necessary
to have the Public Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the Depositary
to deliver to the Warrant Agent for cancellation each Book-Entry Warrant Certificate, and the Company shall instruct the Warrant
Agent to deliver to the Depositary definitive certificates in physical form evidencing such Warrants (“Definitive Warrant
Certificates”) which shall be in the form annexed hereto as Exhibit A.

 

    2

     

    

 

Physical certificates, if issued, shall
be signed by, or bear the facsimile signature of, the Chairman of the Board, Chief Executive Officer, Chief Financial Officer,
Chief Business Officer, Secretary or other principal officer of the Company. In the event the person whose facsimile signature
has been placed upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such
Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance.

 

2.3.2.            Registered
Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and
treat the person in whose name such Warrant is registered in the Warrant Register (the “Registered Holder”)
as the absolute owner of such Warrant and of each Warrant represented thereby, for the purpose of any exercise thereof, and for
all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

2.4.            Detachability
of Warrants. The Ordinary Shares and Public Warrants comprising the Units shall begin separate trading on the 52nd day following
the date of the Prospectus or, if such 52nd day is not on a day, other than a Saturday, Sunday or federal holiday, on which banks
in New York City are generally open for normal business (a “Business Day”), then on the immediately succeeding
Business Day following such date, or earlier (the “Detachment Date”) with the consent of Morgan Stanley &
Co. LLC and Deutsche Bank Securities Inc., but in no event shall the Ordinary Shares and the Public Warrants comprising the Units
be separately traded until (A) the Company has filed a Current Report on Form 8-K with the Commission containing an audited
balance sheet reflecting the receipt by the Company of the gross proceeds of the Offering, including the proceeds then received
by the Company from the exercise by the underwriters of their right to purchase additional Units in the Offering (the “Over-allotment
Option”), if the Over-allotment Option is exercised prior to the filing of the Current Report on Form 8-K, and
(B) the Company issues a press release and files with the Commission a Current Report on Form 8-K announcing when such
separate trading shall begin.

 

2.5.            Fractional
Warrants. The Company shall not issue fractional Warrants other than as part of the Units, each of which is comprised of one
Ordinary Share and one-fifth of one whole Public Warrant. If, upon the detachment of Public Warrants from the Units or otherwise,
a holder of Warrants would be entitled to receive a fractional Warrant, the Company shall round down to the nearest whole number
the number of Warrants to be issued to such holder.

 

2.6.            Private
Placement Warrants and Working Capital Warrants. The Private Placement Warrants and the Working Capital Warrants shall be identical
to the Public Warrants, except that so long as they are held by the Sponsor or any of its Permitted Transferees (as defined below)
the Private Placement Warrants and the Working Capital Warrants: (i) may be exercised for cash or on a “cashless basis,”
pursuant to subsection 3.3.1(b) hereof, (ii) may not be transferred, assigned or sold until thirty (30) days after the
completion by the Company of an initial Business Combination, (iii) shall not be redeemable by the Company pursuant to Section 6.1
hereof and (iv) shall only be redeemable by the Company pursuant to Section 6.2; provided, however, that in the case
of (ii), the Private Placement Warrants and the Working Capital Warrants and any Ordinary Shares held by the Sponsor or any officers
or directors of the Company, or any Permitted Transferees, as applicable, issued upon exercise of the Private Placement Warrants
and the Working Capital Warrants may be transferred by the holders thereof:

 

    3

     

    

 

(a)            to
the Company’s officers or directors, any affiliates or family members of any of the Company’s officers or directors,
to the Sponsor, any members or partners of the Sponsor or their affiliates, any affiliates of the Sponsor, or any employees of
such affiliates;

 

(b)            in
the case of an individual, by gift to a member of one of the individual’s immediate family or to a trust, the beneficiary
of which is a member of the individual’s immediate family, an affiliate of such person or to a charitable organization;

 

(c)            in
the case of an individual, by virtue of laws of descent and distribution upon death of the individual;

 

(d)            in
the case of an individual, pursuant to a qualified domestic relations order;

 

(e)            by
private sales or transfers made in connection with the consummation of the Company’s Business Combination at prices no greater
than the price at which the Private Placement Warrants or Ordinary Shares, as applicable, were originally purchased;

 

(f)            by
virtue of the Sponsor’s organizational documents upon liquidation or dissolution of the Sponsor;

 

(g)            to
the Company for no value for cancellation in connection with the consummation of the Company’s initial Business Combination;

 

(h)            in
the event of the Company’s liquidation prior to the completion of its initial Business Combination; or

 

(i)            in
the event of the Company’s completion of a liquidation, merger, share exchange or other similar transaction which results
in all of the public shareholders having the right to exchange their Ordinary Shares for cash, securities or other property subsequent
to the completion of the Company’s initial Business Combination;

 

provided, however, that, in
the case of clauses (a) through (f), these permitted transferees (the “Permitted Transferees”) must
enter into a written agreement with the Company agreeing to be bound by the transfer restrictions in this Agreement and the other
restrictions contained in the letter agreement, dated as of the date hereof, by and among the Company, the Sponsor and the Company’s
officers and directors.

 

2.7            Working
Capital Warrants. Each of the Working Capital Warrants shall be identical to the Private Placement Warrants.

 

3.            
Terms and Exercise of Warrants.

 

3.1.            Warrant
Price. Each whole Warrant shall entitle the Registered Holder thereof, subject to the provisions of such Warrant and of this
Agreement, to purchase from the Company the number of Ordinary Shares stated therein, at the price of $11.50 per share, subject
to the adjustments provided in Section 4 hereof and in the last sentence of this Section 3.1. The term “Warrant
Price” as used in this Agreement shall mean the price per share (including in cash or by payment of Warrants pursuant
to a “cashless exercise,” to the extent permitted hereunder) described in the prior sentence at which Ordinary Shares
may be purchased at the time a Warrant is exercised. The Company in its sole discretion may lower the Warrant Price at any time
prior to the Expiration Date (as defined below) for a period of not less than fifteen (15) Business Days (unless otherwise required
by the Commission, any national securities exchange on which the Warrants are listed or applicable law); provided that the Company
shall provide at least five (5) days’ prior written notice of such reduction to Registered Holders of the Warrants;
and provided further, that any such reduction shall be identical among all of the Warrants.

 

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3.2.            Duration
of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”) (A) commencing
on the later of: (i) the date that is thirty (30) days after the first date on which the Company completes a Business Combination,
and (ii) the date that is twelve (12) months from the date of the closing of the Offering, and (B) terminating at the
earliest to occur of (x) 5:00 p.m., New York City time on the date that is five (5) years after the date on which the
Company completes its initial Business Combination, (y) the liquidation of the Company in accordance with the Company’s
amended and restated memorandum and articles of association, as amended from time to time, if the Company fails to complete a Business
Combination, and (z) other than with respect to the Private Placement Warrants and the Working Capital Warrants then held
by the Sponsor or its Permitted Transferees with respect to a redemption pursuant to Section 6.1 hereof or, if the Reference
Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof), Section 6.2 hereof,
5:00 p.m., New York City time on the Redemption Date (as defined below) as provided in Section 6.3 hereof (the “Expiration
Date”); provided, however, that the exercise of any Warrant shall be subject to the satisfaction of any applicable
conditions, as set forth in subsection 3.3.2 below, with respect to an effective registration statement or a valid exemption therefrom
being available. Except with respect to the right to receive the Redemption Price (as defined below) (other than with respect to
a Private Placement Warrant then held by the Sponsor or its Permitted Transferees in connection with a redemption pursuant to Section 6.1
hereof or, if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof),
Section 6.2 hereof) in the event of a redemption (as set forth in Section 6 hereof), each Warrant (other than a Private
Placement Warrant then held by the Sponsor or its Permitted Transferees in the event of a redemption pursuant to Section 6.1
hereof or, if the Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof),
Section 6.2 hereof) not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights
in respect thereof under this Agreement shall cease at 5:00 p.m. New York City time on the Expiration Date. The Company in
its sole discretion may extend the duration of the Warrants by delaying the Expiration Date; provided that the Company shall provide
at least twenty (20) days’ prior written notice of any such extension to Registered Holders of the Warrants and, provided
further that any such extension shall be identical in duration among all the Warrants.

 

3.3.            Exercise
of Warrants.

 

3.3.1.            Payment.
Subject to the provisions of the Warrant and this Agreement, a Warrant may be exercised by the Registered Holder thereof by delivering
to the Warrant Agent at its corporate trust department (i) the Definitive Warrant Certificate evidencing the Warrants to be
exercised, or, in the case of a Warrant represented by a book-entry, the Warrants to be exercised (the “Book-Entry
Warrants”) on the records of the Depositary to an account of the Warrant Agent at the Depositary designated for such
purposes in writing by the Warrant Agent to the Depositary from time to time, (ii) an election to purchase (“Election
to Purchase”) any Ordinary Shares pursuant to the exercise of a Warrant, properly completed and executed by the Registered
Holder on the reverse of the Definitive Warrant Certificate or, in the case of a Book-Entry Warrant, properly delivered by the
Participant in accordance with the Depositary’s procedures, and (iii) the payment in full of the Warrant Price for each
Ordinary Share as to which the Warrant is exercised and any and all applicable taxes due in connection with the exercise of the
Warrant, the exchange of the Warrant for the Ordinary Shares and the issuance of such Ordinary Shares, as follows:

 

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(a)            in
lawful money of the United States, in good certified check or good bank draft payable to the order of the Warrant Agent;

 

(b)            with
respect to any Private Placement Warrant or Working Capital Warrants, so long as such Private Placement Warrant or Working Capital
Warrants is held by the Sponsor or a Permitted Transferee, by surrendering the Warrants for that number of Ordinary Shares equal
to (i) if in connection with a redemption of Private Placement Warrants pursuant to Section 6.2 hereof, as provided in
Section 6.2 hereof with respect to a Make-Whole Exercise (as defined below) and (ii) in all other scenarios the quotient
obtained by dividing (x) the product of the number of Ordinary Shares underlying the Warrants, multiplied by the excess of
the “Sponsor Exercise Fair Market Value” (as defined in this subsection 3.3.1(b)) over the Warrant Price
by (y) the Sponsor Exercise Fair Market Value. Solely for purposes of this subsection 3.3.1(b), the “Sponsor Fair
Market Value” shall mean the average last reported sale price of the Ordinary Shares for the ten (10) trading
days ending on the third (3rd) trading day prior to the date on which notice of exercise of the Private Placement Warrant
or Working Capital Warrant is sent to the Warrant Agent;

 

(c)            as
provided in Section 6.2 hereof with respect to a Make-Whole Exercise; or

 

(d)            as
provided in Section 7.4 hereof.

 

3.3.2.            Issuance
of Ordinary Shares on Exercise. As soon as practicable after the exercise of any Warrant and the clearance of the funds in
payment of the Warrant Price (if payment is pursuant to subsection 3.3.1(a)), the Company shall issue to the Registered Holder
of such Warrant a book-entry position or certificate, as applicable, for the number of Ordinary Shares to which he, she or it is
entitled, registered in such name or names as may be directed by him, her or it on the register of members of the Company, and
if such Warrant shall not have been exercised in full, a new book-entry position or countersigned Warrant, as applicable, for the
number of shares as to which such Warrant shall not have been exercised. If fewer than all the Warrants evidenced by a Book-Entry
Warrant Certificate are exercised, a notation shall be made to the records maintained by the Depositary, its nominee for each Book-Entry
Warrant Certificate, or a Participant, as appropriate, evidencing the balance of the Warrants remaining after such exercise. Notwithstanding
the foregoing, the Company shall not be obligated to deliver any Ordinary Shares pursuant to the exercise of a Warrant and shall
have no obligation to settle such Warrant exercise unless a registration statement under the Securities Act with respect to the
Ordinary Shares underlying the Public Warrants is then effective and a prospectus relating thereto is current, subject to the Company’s
satisfying its obligations under Section 7.4 or a valid exemption from registration is available. No Warrant shall be exercisable
and the Company shall not be obligated to issue Ordinary Shares upon exercise of a Warrant unless the Ordinary Shares issuable
upon such Warrant exercise have been registered, qualified or deemed to be exempt from registration or qualification under the
securities laws of the state of residence of the Registered Holder of the Warrants. In no event will the Company be required to
net cash settle the Warrant exercise. The Company may require holders of Public Warrants to settle the Warrant on a “cashless
basis” pursuant to Section 7.4. If, by reason of any exercise of Warrants on a “cashless basis”, the holder
of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in an Ordinary Share, the
Company shall round down to the nearest whole number, the number of Ordinary Shares to be issued to such holder.

 

3.3.3.            Valid
Issuance. All Ordinary Shares issued upon the proper exercise of a Warrant in conformity with this Agreement shall be validly
issued, fully paid and nonassessable.

 

3.3.4.            Date
of Issuance. Each person in whose name any book-entry position or certificate, as applicable, for Ordinary Shares is issued
and who is registered in the register of members of the Company shall for all purposes be deemed to have become the holder of record
of such Ordinary Shares on the date on which the Warrant, or book-entry position representing such Warrant, was surrendered and
payment of the Warrant Price was made, irrespective of the date of delivery of such certificate in the case of a certificated Warrant,
except that, if the date of such surrender and payment is a date when the register of members of the Company or book-entry system
of the Warrant Agent are closed, such person shall be deemed to have become the holder of such shares at the close of business
on the next succeeding date on which the share transfer books or book-entry system are open.

 

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3.3.5.            Maximum
Percentage. A holder of a Warrant may notify the Company in writing in the event it elects to be subject to the provisions
contained in this subsection 3.3.5; however, no holder of a Warrant shall be subject to this subsection 3.3.5 unless he, she or
it makes such election. If the election is made by a holder, the Warrant Agent shall not effect the exercise of the holder’s
Warrant, and such holder shall not have the right to exercise such Warrant, to the extent that after giving effect to such exercise,
such person (together with such person’s affiliates), to the Warrant Agent’s actual knowledge, would beneficially own
in excess of 4.9% or 9.8% (as specified by the holder) (the “Maximum Percentage”) of the Ordinary Shares
outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Ordinary
Shares beneficially owned by such person and its affiliates shall include the number of Ordinary Shares issuable upon exercise
of the Warrant with respect to which the determination of such sentence is being made, but shall exclude Ordinary Shares that would
be issuable upon (x) exercise of the remaining, unexercised portion of the Warrant beneficially owned by such person and its
affiliates and (y) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company
beneficially owned by such person and its affiliates (including, without limitation, any convertible notes or convertible preferred
shares or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set
forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For purposes of the Warrant, in
determining the number of outstanding Ordinary Shares, the holder may rely on the number of outstanding Ordinary Shares as reflected
in (1) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report
on Form 8-K or other public filing with the Commission as the case may be, (2) a more recent public announcement by the
Company or (3) any other notice by the Company or Continental Stock Transfer & Trust Company, as transfer agent (in
such capacity, the “Transfer Agent”), setting forth the number of Ordinary Shares outstanding. For any
reason at any time, upon the written request of the holder of the Warrant, the Company shall, within two (2) Business Days,
confirm orally and in writing to such holder the number of Ordinary Shares then outstanding. In any case, the number of issued
and outstanding Ordinary Shares shall be determined after giving effect to the conversion or exercise of equity securities of the
Company by the holder and its affiliates since the date as of which such number of issued and outstanding Ordinary Shares was reported.
By written notice to the Company, the holder of a Warrant may from time to time increase or decrease the Maximum Percentage applicable
to such holder to any other percentage specified in such notice; provided, however, that any such increase shall not be effective
until the sixty-first (61st) day after such notice is delivered to the Company.

 

4.            
Adjustments.

 

4.1.            
Share Capitalizations.

 

4.1.1.            Sub-Divisions.
If after the date hereof, and subject to the provisions of Section 4.5 below, the number of issued and outstanding Ordinary
Shares is increased by a capitalization or share dividend of Ordinary Shares, or by a split-up of Ordinary Shares or other similar
event, then, on the effective date of such capitalization or share dividend, split-up or similar event, the number of Ordinary
Shares issuable on exercise of each Warrant shall be increased in proportion to such increase in the issued and outstanding Ordinary
Shares. A rights offering made to all or substantially all holders of Ordinary Shares entitling holders to purchase Ordinary Shares
at a price less than the “Historical Fair Market Value” (as defined below) shall be deemed a share dividend of a number
of Ordinary Shares equal to the product of (i) the number of Ordinary Shares actually sold in such rights offering (or issuable
under any other equity securities sold in such rights offering that are convertible into or exercisable for Ordinary Shares) multiplied
by (ii) one (1) minus the quotient of (x) the price per Ordinary Share paid in such rights offering divided by (y) the
Historical Fair Market Value. For purposes of this subsection 4.1.1, (i) if the rights offering is for securities convertible
into or exercisable for Ordinary Shares, in determining the price payable for Ordinary Shares, there shall be taken into account
any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) “Historical
Fair Market Value” means the volume weighted average price of the Ordinary Shares during the ten (10) trading
day period ending on the trading day prior to the first date on which the Ordinary Shares trade on the applicable exchange or in
the applicable market, regular way, without the right to receive such rights. No Ordinary Shares shall be issued at less than their
par value.

 

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4.1.2.            Extraordinary
Dividends. If the Company, at any time while the Warrants are outstanding and unexpired, pays to all or substantially all of
the holders of the Ordinary Shares a dividend or make a distribution in cash, securities or other assets on account of such Ordinary
Shares (or other shares into which the Warrants are convertible), other than (a) as described in subsection 4.1.1 above, (b) Ordinary
Cash Dividends (as defined below), (c) to satisfy the redemption rights of the holders of the Ordinary Shares in connection
with a proposed initial Business Combination, (d) to satisfy the redemption rights of the holders of the Ordinary Shares in
connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (i) to
modify the substance or timing of the Company’s obligation to provide holders of Ordinary Shares the right to have their
shares redeemed in connection with the Company’s initial Business Combination or to redeem 100% of the Company’s public
shares if it does not complete its initial Business Combination within the time period required by the Company’s Amended
and Restated Memorandum and Articles of Association, as amended from time to time, or (ii) with respect to any other provision
relating to the rights of holders of Ordinary Shares or (e) in connection with the redemption of public shares upon the failure
of the Company to complete its initial Business Combination and any subsequent distribution of its assets upon its liquidation
(any such non-excluded event being referred to herein as an “Extraordinary Dividend”), then the Warrant
Price shall be decreased, effective immediately after the effective date of such Extraordinary Dividend, by the amount of cash
and/or the fair market value (as determined by the Company’s board of directors (the “Board”) in
good faith) of any securities or other assets paid on each Ordinary Share in respect of such Extraordinary Dividend. For purposes
of this subsection 4.1.2, “Ordinary Cash Dividends” means any cash dividend or cash distribution which,
when combined on a per share basis with all other cash dividends and cash distributions paid on the Ordinary Shares during the
365-day period ending on the date of declaration of such dividend or distribution does not exceed $0.50 (as adjusted to appropriately
reflect any of the events referred to in other subsections of this Section 4 and excluding cash dividends or cash distributions
that resulted in an adjustment to the Warrant Price or to the number of Ordinary Shares issuable on exercise of each Warrant but
only with respect to the amount of aggregate cash dividends and cash distributions equal to or less than $0.50 per Share).

 

4.2.            Aggregation
of Shares. If after the date hereof, and subject to the provisions of Section 4.5 hereof, the number of issued and outstanding
Ordinary Shares is decreased by a consolidation, combination, reverse share split or reclassification of Ordinary Shares or other
similar event, then, on the effective date of such consolidation, combination, reverse share split, reclassification or similar
event, the number of Ordinary Shares issuable on exercise of each Warrant shall be decreased in proportion to such decrease in
issued and outstanding Ordinary Shares.

 

    8

     

    

 

4.3.            Adjustments
in Exercise Price.

 

4.3.1.            Whenever
the number of Ordinary Shares purchasable upon the exercise of the Warrants is adjusted, as provided in subsection 4.1.1 or Section 4.2
above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately prior to such adjustment
by a fraction (x) the numerator of which shall be the number of Ordinary Shares purchasable upon the exercise of the Warrants
immediately prior to such adjustment, and (y) the denominator of which shall be the number of Ordinary Shares so purchasable
immediately thereafter.

 

4.3.2.            If
(x) the Company issues additional Ordinary Shares or equity-linked securities for capital raising purposes in connection with
the closing of the initial Business Combination at an issue price or effective issue price of less than $9.20 per Ordinary Share
(as adjusted to appropriately reflect any of the events referred to in other subsections of this Section 4) (with such issue
price or effective issue price to be determined in good faith by the Board and, in the case of any such issuance to the initial
shareholders (as defined in the Prospectus) or their affiliates, without taking into account any Class B Ordinary Shares (as
defined in the Prospectus) held by such initial shareholders or their affiliates, as applicable, prior to such issuance (the “Newly
Issued Price”)), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity
proceeds, and interest thereon, available for funding the initial Business Combination on the date of the consummation of the Company’s
initial business combination (net of redemptions), and (z) the volume weighted average trading price of the Ordinary Shares
during the 10 trading day period starting on the trading day prior to the day on which the Company consummates its initial Business
Combination (such price, the “Market Value”) is below $9.20 per share (as adjusted for share sub-divisions,
share capitalization, rights issuances, subdivisions, reorganizations, recapitalizations and the like), the Warrant Price shall
be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the last
sales price of Ordinary Shares that triggers the Company’s right to redeem the Warrants pursuant to Section 6.1 below
shall be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

 

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4.4.            Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the issued and outstanding
Ordinary Shares (other than a change under Section 4.1 or Section 4.2 hereof or that solely affects the par value of
such Ordinary Shares), or in the case of any merger or consolidation of the Company with or into another corporation (other than
a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or
reorganization of the issued and outstanding Ordinary Shares), or in the case of any sale or conveyance to another corporation
or entity of the assets or other property of the Company as an entirety or substantially as an entirety in connection with which
the Company is dissolved, the holders of the Warrants shall thereafter have the right to purchase and receive, upon the basis and
upon the terms and conditions specified in the Warrants and in lieu of the Ordinary Shares of the Company immediately theretofore
purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares or stock or other
securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon
a dissolution following any such sale or transfer, that the holder of the Warrants would have received if such holder had exercised
his, her or its Warrant(s) immediately prior to such event (the “Alternative Issuance”); provided,
however, that (i) if the holders of the Ordinary Shares were entitled to exercise a right of election as to the kind or amount
of securities, cash or other assets receivable upon such consolidation or merger, then the kind and amount of securities, cash
or other assets constituting the Alternative Issuance for which each Warrant shall become exercisable shall be deemed to be the
weighted average of the kind and amount received per share by the holders of the Ordinary Shares in such consolidation or merger
that affirmatively make such election, and (ii) if a tender, exchange or redemption offer shall have been made to and accepted
by the holders of the Ordinary Shares (other than a tender, exchange or redemption offer made by the Company in connection with
redemption rights held by shareholders of the Company as provided for in the Company’s amended and restated memorandum and
articles of association or as a result of the repurchase of Ordinary Shares by the Company if a proposed initial Business Combination
is presented to the shareholders of the Company for approval) under circumstances in which, upon completion of such tender or exchange
offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange
Act) of which such maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2
under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially
(within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the issued and outstanding Ordinary Shares, the
holder of a Warrant shall be entitled to receive as the Alternative Issuance, the highest amount of cash, securities or other property
to which such holder would actually have been entitled as a shareholder if such Warrant holder had exercised the Warrant prior
to the expiration of such tender or exchange offer, accepted such offer and all of the Ordinary Shares held by such holder had
been purchased pursuant to such tender or exchange offer, subject to adjustments (from and after the consummation of such tender
or exchange offer) as nearly equivalent as possible to the adjustments provided for in this Section 4; provided further that
if less than 70% of the consideration receivable by the holders of the Ordinary Shares in the applicable event is payable in the
form of shares in the successor entity that is listed for trading on a national securities exchange or is quoted in an established
over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the Registered Holder
properly exercises the Warrant within thirty (30) days following the public disclosure of the consummation of such applicable event
by the Company pursuant to a Current Report on Form 8-K filed with the Commission, the Warrant Price shall be reduced by an
amount (in dollars) equal to the difference of (i) the Warrant Price in effect prior to such reduction minus (ii) (A) the
Per Share Consideration (as defined below) (but in no event less than zero) minus (B) the Black-Scholes Warrant Value (as
defined below). The “Black-Scholes Warrant Value” means the value of a Warrant immediately prior to the
consummation of the applicable event based on the Black-Scholes Warrant Model for a Capped American Call on Bloomberg Financial
Markets (assuming zero dividends) (“Bloomberg”). For purposes of calculating such amount, (i) Section 6
of this Agreement shall be taken into account, (ii) the price of each Ordinary Share shall be the volume weighted average
price of the Ordinary Shares as reported during the ten (10) trading day period ending on the trading day prior to the effective
date of the applicable event, (iii) the assumed volatility shall be the 90 day volatility obtained from the HVT function on
Bloomberg determined as of the trading day immediately prior to the day of the announcement of the applicable event and (iv) the
assumed risk-free interest rate shall correspond to the U.S. Treasury rate for a period equal to the remaining term of the Warrant.
 “Per Share Consideration” means (i) if the consideration paid to holders of the Ordinary Shares
consists exclusively of cash, the amount of such cash per Ordinary Share, and (ii) in all other cases, the volume weighted
average price of the Ordinary Shares as reported during the ten (10) trading day period ending on the trading day prior to
the effective date of the applicable event. If any reclassification or reorganization also results in a change in Ordinary Shares
covered by subsection 4.1.1, then such adjustment shall be made pursuant to subsection 4.1.1 or Sections 4.2, 4.3 and this Section 4.4.
The provisions of this Section 4.4 shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations,
sales or other transfers. In no event shall the Warrant Price be reduced to less than the par value per share issuable upon exercise
of such Warrant.

 

4.5.            Notices
of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of a Warrant,
the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such
adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a Warrant,
setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence
of any event specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5, the Company shall give written notice of the occurrence of such event
to each holder of a Warrant, at the last address set forth for such holder in the Warrant Register, of the record date or the effective
date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.

 

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4.6.            No
Fractional Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company shall not issue fractional
shares upon the exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant
would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such
exercise, round down to the nearest whole number the number of Ordinary Shares to be issued to such holder.

 

4.7.            Form of
Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and Warrants issued
after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially issued
pursuant to this Agreement; provided, however, that the Company may at any time in its sole discretion make any change in the form
of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued
or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

 

4.8.            Other
Events. In case any event shall occur affecting the Company as to which none of the provisions of the preceding subsections
of this Section 4 are strictly applicable, but which would require an adjustment to the terms of the Warrants in order to
(i) avoid an adverse impact on the Warrants and (ii) effectuate the intent and purpose of this Section 4, then,
in each such case, the Company shall appoint a firm of independent public accountants, investment banking or other appraisal firm
of recognized national standing, which shall give its opinion as to whether or not any adjustment to the rights represented by
the Warrants is necessary to effectuate the intent and purpose of this Section 4 and, if they determine that an adjustment
is necessary, the terms of such adjustment. The Company shall adjust the terms of the Warrants in a manner that is consistent with
any adjustment recommended in such opinion.

 

4.9.            No
Adjustment. For the avoidance of doubt, no adjustment shall be made to the terms of the Warrants solely as a result of an adjustment
to the conversion ratio of the Company’s Class B Ordinary Shares (the “Class B Ordinary Shares”)
into Ordinary Shares or the conversion of Class B Ordinary Shares into Ordinary Shares, in each case, pursuant to the Company’s
Amended and Restated Memorandum and Articles of Association.

 

5.            

Transfer and Exchange of Warrants.

 

5.1.            Registration
of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant
Register, upon surrender of such Warrant for transfer, in the case of a certificated Warrant, properly endorsed with signatures
properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing
an equal aggregate number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. In the case
of certificated Warrants, the Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon
request.

 

5.2.            Procedure
for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for exchange or
transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Registered
Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however, that except as otherwise
provided herein or with respect to any Book-Entry Warrant Certificate or Definitive Warrant Certificate, each Book-Entry Warrant
Certificate and Definitive Warrant Certificate may be transferred only in whole and only to the Depositary, to another nominee
of the Depositary, to a successor depository, or to a nominee of a successor depository; provided further, however that in the
event that a Warrant surrendered for transfer bears a restrictive legend (as in the case of the Private Placement Warrants and
the Working Capital Warrants), the Warrant Agent shall not cancel such Warrant and issue new Warrants in exchange thereof until
the Warrant Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether
the new Warrants must also bear a restrictive legend.

 

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5.3.            Fractional
Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which shall result in
the issuance of a warrant certificate or book-entry position for a fraction of a warrant, except as part of the Units.

 

5.4.            Service
Charges. No service charge shall be made for any exchange or registration of transfer of Warrants.

 

5.5.            Warrant
Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the
terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company,
whenever required by the Warrant Agent, shall supply the Warrant Agent with Warrants duly executed on behalf of the Company for
such purpose.

 

5.6.            Transfer
of Warrants. Prior to the Detachment Date, the Public Warrants may be transferred or exchanged only together with the Unit
in which such Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange of such
Unit. Furthermore, each transfer of a Unit on the register relating to such Units shall operate also to transfer the Warrants included
in such Unit. Notwithstanding the foregoing, the provisions of this Section 5.6 shall have no effect on any transfer of Warrants
on and after the Detachment Date.

 

6.            

Redemption.

 

6.1.            Redemption
of Warrants for Cash. Subject to Section 6.5 hereof, not less than all of the outstanding Warrants may be redeemed, at
the option of the Company, at any time during the Exercise Period, at the office of the Warrant Agent, upon notice to the Registered
Holders of the Warrants, as described in Section 6.3 below, at a Redemption Price of $0.01 per Warrant, provided that (a) the
Reference Value equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof) and (b) there
is an effective registration statement covering the issuance of the Ordinary Shares issuable upon exercise of the Warrants, and
a current prospectus relating thereto, available throughout the 30-day Redemption Period (as defined in Section 6.3 below)
or the Company has elected to require the exercise of the Warrants on a “cashless basis” pursuant to subsection 3.3.1
and such cashless exercise is exempt from registration under the Securities Act.

 

6.2.            Redemption
of Warrants for Ordinary Shares. Subject to Section 6.5 hereof, not less than all of the outstanding Warrants may be redeemed,
at the option of the Company, commencing once they are first exercisable and prior to their expiration, at the office of the Warrant
Agent, upon notice to the Registered Holders of the Warrants, as described in Section 6.3 below, at a Redemption Price of
$0.10 per Warrant (the “Alternative Redemption Price”), provided that (i) the last reported sales
price of the Ordinary Shares equals or exceeds $10.00 per share (subject to adjustment in compliance with Section 4 hereof)
on the trading day before the Company sends the notice of redemption to the Warrant Agent, (ii) the Private Placement Warrants
and Working Capital Warrants are also concurrently called for redemption on the same terms as the outstanding Public Warrants (so
long as the Reference Value is less than $18.00 per share) and (iii) there is an effective registration statement covering
the issuance of the Ordinary Shares issuable upon exercise of the Warrants, and a current prospectus relating thereto, available
throughout the 30-day Redemption Period (as defined in Section 6.3 below). During the 30-day Redemption Period in connection
with a redemption pursuant to this Section 6.2, Registered Holders of the Warrants may elect to exercise their Warrants on
a “cashless basis” pursuant to subsection 3.3.1 and receive, in lieu of the Alternative Redemption Price, a number
of Ordinary Shares determined by reference to the table below, based on the Redemption Date (calculated for purposes of the table
as the period to expiration of the Warrants) and the “Redemption Fair Market Value” (as such term is defined in this
Section 6.2) (a “Make-Whole Exercise”). Solely for purposes of this Section 6.2, the “Redemption
Fair Market Value” shall mean the volume-weighted average price of the Ordinary Shares for the ten (10) trading
days immediately following the date on which notice of redemption pursuant to this Section 6.2 is sent to the Registered Holders.
The Company will provide notice to the Registered Holders of the Warrants no later than one business day after the 10-day trading
period described above ends.

 

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	Redemption Date 

(period to 

expiration of 	 	Fair Market Value of Class A Ordinary Shares	 
	warrants)	 	<$10.00	 	$11.00	 	$12.00	 	$13.00	 	$14.00	 	$15.00	 	$16.00	 	$17.00	 	≥ $18.00	 
	60 months	 	0.261	 	0.281	 	0.297	 	0.311	 	0.324	 	0.337	 	0.348	 	0.358	 	0.361	 
	57 months	 	0.257	 	0.277	 	0.294	 	0.310	 	0.324	 	0.337	 	0.348	 	0.358	 	0.361	 
	54 months	 	0.252	 	0.272	 	0.291	 	0.307	 	0.322	 	0.335	 	0.347	 	0.357	 	0.361	 
	51 months	 	0.246	 	0.268	 	0.287	 	0.304	 	0.320	 	0.333	 	0.346	 	0.357	 	0.361	 
	48 months	 	0.241	 	0.263	 	0.283	 	0.301	 	0.317	 	0.332	 	0.344	 	0.356	 	0.361	 
	45 months	 	0.235	 	0.258	 	0.279	 	0.298	 	0.315	 	0.330	 	0.343	 	0.356	 	0.361	 
	42 months	 	0.228	 	0.252	 	0.274	 	0.294	 	0.312	 	0.328	 	0.342	 	0.355	 	0.361	 
	39 months	 	0.221	 	0.246	 	0.269	 	0.290	 	0.309	 	0.325	 	0.340	 	0.354	 	0.361	 
	36 months	 	0.213	 	0.239	 	0.263	 	0.285	 	0.305	 	0.323	 	0.339	 	0.353	 	0.361	 
	33 months	 	0.205	 	0.232	 	0.257	 	0.280	 	0.301	 	0.320	 	0.337	 	0.352	 	0.361	 
	30 months	 	0.196	 	0.224	 	0.250	 	0.274	 	0.297	 	0.316	 	0.335	 	0.351	 	0.361	 
	27 months	 	0.185	 	0.214	 	0.242	 	0.268	 	0.291	 	0.313	 	0.332	 	0.350	 	0.361	 
	24 months	 	0.173	 	0.204	 	0.233	 	0.260	 	0.285	 	0.308	 	0.329	 	0.348	 	0.361	 
	21 months	 	0.161	 	0.193	 	0.223	 	0.252	 	0.279	 	0.304	 	0.326	 	0.347	 	0.361	 
	18 months	 	0.146	 	0.179	 	0.211	 	0.242	 	0.271	 	0.298	 	0.322	 	0.345	 	0.361	 
	15 months	 	0.130	 	0.164	 	0.197	 	0.230	 	0.262	 	0.291	 	0.317	 	0.342	 	0.361	 
	12 months	 	0.111	 	0.146	 	0.181	 	0.216	 	0.250	 	0.282	 	0.312	 	0.339	 	0.361	 
	9 months	 	0.090	 	0.125	 	0.162	 	0.199	 	0.237	 	0.272	 	0.305	 	0.336	 	0.361	 
	6 months	 	0.065	 	0.099	 	0.137	 	0.178	 	0.219	 	0.259	 	0.296	 	0.331	 	0.361	 
	3 months	 	0.034	 	0.065	 	0.104	 	0.150	 	0.197	 	0.243	 	0.286	 	0.326	 	0.361	 
	0 months	 	—	 	—	 	0.042	 	0.115	 	0.179	 	0.233	 	0.281	 	0.323	 	0.361	 

 

The exact Redemption Fair Market Value and
Redemption Date may not be set forth in the table above, in which case, if the Redemption Fair Market Value is between two values
in the table or the Redemption Date is between two redemption dates in the table, the number of Ordinary Shares to be issued for
each Warrant exercised in a Make-Whole Exercise shall be determined by a straight-line interpolation between the number of shares
set forth for the higher and lower Redemption Fair Market Values and the earlier and later redemption dates, as applicable, based
on a 365- or 366-day year, as applicable.

 

The share prices set forth in the column headings
of the table above shall be adjusted as of any date on which the number of shares issuable upon exercise of a Warrant is adjusted
pursuant to Section 4 hereof. The adjusted share prices in the column headings shall equal the share prices immediately prior
to such adjustment, multiplied by a fraction, the numerator of which is the number of shares deliverable upon exercise of a Warrant
immediately prior to such adjustment and the denominator of which is the number of shares deliverable upon exercise of a Warrant
as so adjusted. The number of shares in the table above shall be adjusted in the same manner and at the same time as the number
of shares issuable upon exercise of a Warrant. In no event shall the number of shares issued in connection with a Make-Whole Exercise
exceed 0.361 Ordinary Shares per Warrant (subject to adjustment).

 

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6.3.            Date
Fixed for, and Notice of, Redemption; Redemption Price; Reference Value. In the event that the Company elects to redeem the
Warrants pursuant to Sections 6.1 or 6.2, the Company shall fix a date for the redemption (the “Redemption Date”).
Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less than thirty (30) days prior
to the Redemption Date (the “30-day Redemption Period”) to the Registered Holders of the Warrants to
be redeemed at their last addresses as they shall appear on the registration books. Any notice mailed in the manner herein provided
shall be conclusively presumed to have been duly given whether or not the Registered Holder received such notice. As used in this
Agreement, (a) “Redemption Price” shall mean the price per Warrant at which any Warrants are redeemed
pursuant to Sections 6.1 or 6.2 and (b) “Reference Value” shall mean the last reported sales price
of the Ordinary Shares for any twenty (20) trading days within the thirty (30) trading-day period ending on the third trading day
prior to the date on which notice of the redemption is given.

 

6.4.            Exercise
After Notice of Redemption. The Warrants may be exercised, for cash (or on a “cashless basis” in accordance with
Section 6.2 of this Agreement) at any time after notice of redemption shall have been given by the Company pursuant to Section 6.3
hereof and prior to the Redemption Date. On and after the Redemption Date, the record holder of the Warrants shall have no further
rights except to receive, upon surrender of the Warrants, the applicable Redemption Price.

 

6.5.            Exclusion
of Private Placement Warrants and Working Capital Warrants. The Company agrees that the redemption rights provided in Section 6.1
hereof shall not apply to the Private Placement Warrants if at the time of the redemption such Private Placement Warrants continue
to be held by the Sponsor or its Permitted Transferees. However, once such Private Placement Warrants are transferred (other than
to Permitted Transferees in accordance with Section 2.6 hereof), the Company may redeem the Private Placement Warrants and
Working Capital Warrants pursuant to Section 6.1, provided that the criteria for redemption are met, including the opportunity
of the holder of such Private Placement Warrants and Working Capital Warrants to exercise the Private Placement Warrants or Working
Capital Warrants, as applicable, prior to redemption pursuant to Section 6.4 hereof. Private Placement Warrants that are transferred
to persons other than Permitted Transferees shall upon such transfer cease to be Private Placement Warrants or Working Capital
Warrants, as applicable, and shall become Public Warrants under this Agreement, including for purposes of Section 9.8 hereof.
The restrictions set forth under this Section 6.5 shall not apply to redemptions pursuant to Section 6.2 hereof.

 

7.           
Other Provisions Relating to Rights of Holders of Warrants.

 

7.1.            No
Rights as Shareholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a shareholder of the
Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights
to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders or the election of directors
of the Company or any other matter.

 

7.2.            Lost,
Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant
Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated
Warrant, include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen,
mutilated, or destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not
the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone.

 

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7.3.            Reservation
of Ordinary Shares. The Company shall at all times reserve and keep available a number of its authorized but unissued Ordinary
Shares that shall be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.

 

7.4.            Registration
of Ordinary Shares; Cashless Exercise at Company’s Option.

 

7.4.1.            Registration
of the Ordinary Shares. The Company agrees that as soon as practicable, but in no event later than twenty (20) Business Days
after the closing of its initial Business Combination, it shall use its commercially reasonable efforts to file with the Commission
a registration statement for the registration, under the Securities Act, of the Ordinary Shares issuable upon exercise of the Warrants.
The Company shall use its commercially reasonable efforts to cause the same to become effective within sixty (60) Business Days
following the closing of its initial Business Combination and to maintain the effectiveness of such registration statement, and
a current prospectus relating thereto, until the expiration or redemption of the Warrants in accordance with the provisions of
this Agreement. If any such registration statement has not been declared effective by the sixtieth (60th) Business Day
following the closing of the Business Combination, holders of the Warrants shall have the right, during the period beginning on
the sixty-first (61st) Business Day after the closing of the Business Combination and ending upon such registration
statement being declared effective by the Commission, and during any other period when the Company shall fail to have maintained
an effective registration statement covering the issuance of the Ordinary Shares issuable upon exercise of the Warrants, to exercise
such Warrants on a “cashless basis,” by exchanging the Warrants (in accordance with Section 3(a)(9) of the
Securities Act or another exemption) for that number of Ordinary Shares equal to the lesser of: (A) the quotient obtained
by dividing (x) the product of the number of Ordinary Shares underlying the Warrants, multiplied by the excess of the “Fair
Market Value” (as defined below) over the Warrant Price by (y) the Fair Market Value and (B) 0.361. Solely for
purposes of this subsection 7.4.1, “Fair Market Value” shall mean the average last reported sales price
of the Ordinary Shares for the ten (10) trading day period ending on the third trading day prior to the date that notice of
exercise is received by the Warrant Agent from the holder of such Warrants or its securities broker or intermediary. The date that
notice of “cashless exercise” is received by the Warrant Agent shall be conclusively determined by the Warrant Agent.
In connection with the “cashless exercise” of a Public Warrant, the Company shall, upon request, provide the Warrant
Agent with an opinion of counsel for the Company (which shall be an outside law firm with securities law experience) stating that
(i) the exercise of the Warrants on a “cashless basis” in accordance with this subsection 7.4.1 is not required
to be registered under the Securities Act and (ii) the Ordinary Shares issued upon such exercise shall be freely tradable
under United States federal securities laws by anyone who is not an affiliate (as such term is defined in Rule 144 under the
Securities Act) of the Company and, accordingly, shall not be required to bear a restrictive legend. Except as provided in subsection
7.4.2, for the avoidance of doubt, unless and until all of the Warrants have been exercised or have expired, the Company shall
continue to be obligated to comply with its registration obligations under the first three sentences of this subsection 7.4.1.

 

7.4.2.            Cashless
Exercise at Company’s Option. If the Ordinary Shares are at the time of any exercise of a Public Warrant not listed on
a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of
the Securities Act, the Company may, at its option, (i) require holders of Public Warrants who exercise Public Warrants to
exercise such Public Warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities
Act as described in subsection 7.4.1 and (ii) in the event the Company so elects, the Company shall (x) not be required
to file or maintain in effect a registration statement for the registration, under the Securities Act, of the Ordinary Shares issuable
upon exercise of the Warrants, notwithstanding anything in this Agreement to the contrary, and (y) use its best efforts to
register or qualify for sale the Ordinary Shares issuable upon exercise of the Public Warrant under applicable blue sky laws to
the extent an exemption is not available. Notwithstanding anything herein to the contrary, but without limiting the rights of the
Holder to receive Ordinary Shares issuable upon exercise of the Warrants on a “cashless exercise,” in the event there
is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the
Ordinary Shares issuable upon exercise of the Warrants to the Holder, under no circumstance will the Company be required to net
cash settle the Warrants.

 

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8.           

Concerning the Warrant Agent and Other Matters.

 

8.1.            Payment
of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon the Company or the
Warrant Agent in respect of the issuance or delivery of Ordinary Shares upon the exercise of the Warrants, but the Company shall
not be obligated to pay any transfer taxes in respect of the Warrants or such shares.

 

8.2.            Resignation,
Consolidation, or Merger of Warrant Agent.

 

8.2.1.            Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the
office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing
a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of
thirty (30) days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder
of a Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then the holder of any
Warrant may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant
Agent at the Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation
or other entity organized and existing under the laws of the State of New York, in good standing and having its principal office
in the United States of America, and authorized under such laws to exercise corporate trust powers and subject to supervision or
examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested with all the authority,
powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as
Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor
Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent
all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent
the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting
in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

 

8.2.2.            Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof
to the predecessor Warrant Agent and the Transfer Agent for the Ordinary Shares not later than the effective date of any such appointment.

 

8.2.3.            Merger
or Consolidation of Warrant Agent. Any entity into which the Warrant Agent may be merged or with which it may be consolidated
or any entity resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant
Agent under this Agreement without any further act.

 

8.3.            
Fees and Expenses of Warrant Agent.

 

8.3.1.            Remuneration.
The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder and shall,
pursuant to its obligations under this Agreement, reimburse the Warrant Agent upon demand for all expenditures that the Warrant
Agent may reasonably incur in the execution of its duties hereunder.

 

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8.3.2.            Further
Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged,
and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for
the carrying out or performing of the provisions of this Agreement.

 

8.4.            

Liability of Warrant Agent.

 

8.4.1.            Reliance
on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary
or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a statement signed by the Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Chief
Business Officer or Secretary and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action
taken or suffered in good faith by it pursuant to the provisions of this Agreement.

 

8.4.2.            Indemnity.
The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct, fraud or bad faith. The Company
agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, out-of-pocket
costs and reasonable outside counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement,
except as a result of the Warrant Agent’s gross negligence, willful misconduct, fraud or bad faith.

 

8.4.3.            Exclusions.
The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or
execution of any Warrant (except its countersignature thereof). The Warrant Agent shall not be responsible for any breach by the
Company of any covenant or condition contained in this Agreement or in any Warrant. The Warrant Agent shall not be responsible
to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner, method, or amount
of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment; nor shall it by any
act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Ordinary Shares to
be issued pursuant to this Agreement or any Warrant or as to whether any Ordinary Shares shall, when issued, be valid and fully
paid and nonassessable.

 

8.5.            Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the
terms and conditions herein set forth and among other things, shall account promptly to the Company with respect to Warrants exercised
and concurrently account for, and pay to the Company, all monies received by the Warrant Agent for the purchase of Ordinary Shares
through the exercise of the Warrants.

 

8.6.            Waiver.
The Warrant Agent has no right of set-off or any other right, title, interest or claim of any kind (“Claim”)
in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of
the date hereof, by and between the Company and Continental Stock Transfer & Trust Company as trustee thereunder) and
hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason
whatsoever. The Warrant Agent hereby waives any and all Claims against the Trust Account and any and all rights to seek access
to the Trust Account.

 

9.           
Miscellaneous Provisions.

 

9.1.            Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure
to the benefit of their respective successors and assigns.

 

    17

     

    

 

9.2.            Notices.
Any notice, statement or demand authorized by this Agreement to be given or made by the Warrant Agent or by the holder of any Warrant
to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail
or private courier service within five (5) days after deposit of such notice, postage prepaid, addressed (until another address
is filed in writing by the Company with the Warrant Agent), as follows:

 

Vy Global Growth

Floor 4, Willow House, Cricket
Square

Grand Cayman, KY1-9010

Cayman Islands

 

with a copy to:

 

Goodwin Procter LLP

601 Marshall Street

Redwood City, CA 94063

Attention: Dan Espinoza

 

Any notice, statement or demand authorized by this Agreement
to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given when
so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days
after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the
Company), as follows:

 

Continental Stock Transfer &

Trust Company One State Street,
30th Floor

New York, NY 10004

 

Attention: Compliance Department

 

9.3.            Applicable
Law and Exclusive Forum. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed
in all respects by the laws of the State of New York. Subject to applicable law, the Company hereby agrees that any action, proceeding
or claim against it arising out of, or otherwise based on this Agreement shall be brought and enforced in the courts of the State
of New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive forum for any such action, proceeding or claim. The Company hereby waives any objection to
such exclusive jurisdiction and that such courts represent an inconvenient forum. Notwithstanding the foregoing, the provisions
of this paragraph will not apply to suits brought to enforce any liability or duty created by the Exchange Act or any other claim
for which the federal district courts of the United States of America are the sole and exclusive forum.

 

Any person or entity purchasing or otherwise
acquiring any interest in the Warrants shall be deemed to have notice of and to have consented to the forum provisions in this
Section 9.3. If any action, the subject matter of which is within the scope the forum provisions above, is filed in a court
other than a court located within the State of New York or the United States District Court for the Southern District of New York
(a “foreign action”) in the name of any warrant holder, such warrant holder shall be deemed to have consented
to: (x) the personal jurisdiction of the state and federal courts located within the State of New York or the United States
District Court for the Southern District of New York in connection with any action brought in any such court to enforce the forum
provisions (an “enforcement action”), and (y) having service of process made upon such warrant holder
in any such enforcement action by service upon such warrant holder’s counsel in the foreign action as agent for such warrant
holder.

 

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9.4.            Persons
Having Rights under this Agreement. Nothing in this Agreement shall be construed to confer upon, or give to, any person, corporation
or other entity other than the parties hereto and the Registered Holders of the Warrants any right, remedy, or claim under or by
reason of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations,
promises, and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their
successors and assigns and of the Registered Holders of the Warrants.

 

9.5.            Examination
of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Warrant
Agent in the United States of America, for inspection by the Registered Holder of any Warrant. The Warrant Agent may require any
such holder to submit such holder’s Warrant for inspection by the Warrant Agent.

 

9.6.            Counterparts.
This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all
purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

9.7.            Effect
of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not affect the
interpretation thereof.

 

9.8.            Amendments.
This Agreement may be amended by the parties hereto without the consent of any Registered Holder for the purpose of (i) curing
any ambiguity or to correct any mistake, including to conform the provisions hereof to the description of the terms of the Warrants
and this Agreement set forth in the Prospectus, or defective provision contained herein, (ii) amending the definition of “Ordinary
Cash Dividend” as contemplated by and in accordance with the second sentence of subsection 4.1.2, (iii) adding or changing
any provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable
and that the parties deem shall not adversely affect the rights of the Registered Holders under this Agreement or (iv) providing
for the delivery of Alternative Issuance pursuant to Section 4.4. All other modifications or amendments, including any modification
or amendment to increase the Warrant Price or shorten the Exercise Period and any amendment to the terms of only the Private Placement
Warrants or Working Capital Warrants, shall require the vote or written consent of the Registered Holders of 50% of the then-outstanding
Public Warrants and, solely with respect to any amendment to the terms of the Private Placement Warrants or Working Capital Warrants
or any provision of this Agreement with respect to the Private Placement Warrants or Working Capital Warrants, 50% of the then-outstanding
Private Placement Warrants and Working Capital Warrants. Notwithstanding the foregoing, the Company may lower the Warrant Price
or extend the duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, without the consent of the Registered
Holders.

 

9.9.            Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect
the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

Exhibit A Form of Warrant Certificate

 

    19

     

    

 

Exhibit B Legend — Private Placement Warrants

 

[Signature page to follow]

 

    20

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed as of the date first above written.

 

	 	VY GLOBAL GROWTH
	 	 
	 	By:	     /s/ John Hering
	 	Name: John Hering
	 	Title: Chief Executive Officer
	 	 
	 	CONTINENTAL STOCK TRANSFER &
    TRUST COMPANY, as Warrant Agent
	 	 
	 	By: 	    /s/ Henry Farrell
	 	Name: Henry Farrell
	 	Title: Vice President

 

[Signature
to Warrant Agreement]

 

     

     

    

 

EXHIBIT A

 

Form of Warrant Certificate

 

     

     

    

 

EXHIBIT B

 

Legend

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED,
SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE
SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, SUBJECT TO ANY ADDITIONAL LIMITATIONS ON TRANSFER
DESCRIBED IN THE LETTER AGREEMENT BY AND AMONG VY GLOBAL GROWTH (THE “COMPANY”), VY GLOBAL GROWTH MANAGEMENT CO. AND
THE OTHER PARTIES THERETO, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED PRIOR TO THE DATE
THAT IS THIRTY (30) DAYS AFTER THE DATE UPON WHICH THE COMPANY COMPLETES ITS INITIAL BUSINESS COMBINATION (AS DEFINED IN THE RECITALS
OF THE WARRANT AGREEMENT REFERRED TO HEREIN) EXCEPT TO A PERMITTED TRANSFEREE (AS DEFINED IN SECTION 2 OF THE WARRANT AGREEMENT)
WHO AGREES IN WRITING WITH THE COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS.

 

SECURITIES EVIDENCED BY THIS CERTIFICATE
AND CLASS A ORDINARY SHARES OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES SHALL BE ENTITLED TO REGISTRATION RIGHTS
UNDER A REGISTRATION AND SHAREHOLDER RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY.

 

NO. [     ]
WARRANT

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