Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (“Agreement”), dated January 5, 2021 is made and entered into by and between HERITAGE INSURANCE
HOLDINGS, INC., Delaware corporation, and all of its affiliate and subsidiary companies (collectively, the “Company”), and Ernie Garateix (the “Executive”). 

RECITALS 
  

	1.	 The Company is a publicly-traded company engaged in the insurance and financial services industry and has over
$1 billion of annual gross written premium in 16 states. 

  

	2.	 The Executive is currently the Chief Operating Officer and has been employed by the Company since the
Company’s inception pursuant to that certain Employment Agreement dated as of November 4, 2015 between the Company and Executive (the “Prior Employment Agreement”) which the Company and Executive agree is hereby terminated.

  

	3.	 Given the Executive’s unique experience and qualifications, the Company’s Board of Directors has
appointed Executive as the Company’s Chief Executive Officer effective November 30, 2020. 

  

	4.	 The Company and Executive desire to enter into this Agreement which sets forth the terms and conditions under
which Executive shall serve as the Company’s Chief Executive Officer. 

 AGREEMENT 

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the parties hereby agree as follows: 

Section I. Term 
 1. Term of
Employment. The Company and Executive agree that the Prior Employment Agreement is terminated as of November 30, 2020 (the “Effective Date”). The term of the Executive’s employment as Chief Executive Officer hereunder shall
commence on the Effective Date and shall continue until December 31, 2023 (the “Initial Employment Term”), at which point this Agreement will automatically renew for successive twelve-month periods, unless terminated as hereinafter
set forth, or as mutually agreed to by the parties (each a “Successive Employment Term” and together with the Initial Employment Term, the “Employment Term”). 

2. Duties of Executive. The Executive shall serve as Chief Executive Officer and shall perform the duties of an executive commensurate with such
position, shall diligently perform all services as may be reasonably designated by the Board of Directors of the Company (the “Board”) and shall exercise such power and authority as is necessary and customary to the performance of such
duties and services. The Executive shall devote his services on a full-time basis to the business and affairs of the Company. 

  
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 Section II. Compensation and Benefits 

1. Base Salary. During the Employment Term, the Executive shall receive a base salary at the annual rate of one million dollars ($1,000,000). The base
salary shall be payable in substantially equal installments consistent with the Company’s normal payroll schedule, subject to applicable withholding and other taxes. 

2. Annual Cash Incentive. Beginning with calendar year 2021, and continuing throughout the Employment Term, Executive’s annual cash incentive
target is set at $1.0 million, with the ultimate potential cash incentive earned ranging from a threshold of $0.5 million to a maximum of $1.5 million, with pro rata amounts earned between threshold and maximum. Achievement of the
annual cash incentive will be based on the performance criteria included in Heritage’s executive incentive compensation program, attached as Schedule A. 

3. Annual Time-Based Restricted Stock. Executive will be issued $500,000 of time-based restricted stock on January 4th, 2021, which will vest in three equal annual installments, beginning with December 31, 2021. In all future calendar years during the Employment Term, Mr. Garateix will be eligible to
receive $500,000 of time-based restricted stock annually, which will similarly vest in three equal annual installments, beginning with December 31st of the grant year. The time-based
restricted stock grants shall be subject to the terms and conditions of an award agreement between the Company and Executive which award agreement shall be subject to the terms and conditions of The Heritage Insurance Holdings, Inc. Omnibus
Incentive Plan or any other equity incentive plan approved and adopted by the Board. 
 4. Annual Performance Based Restricted Stock. Beginning with
calendar year 2021, and continuing throughout the Employment Term, Executive’s annual performance equity grant target is set at $500,000, with the ultimate potential performance equity earned ranging from a threshold of $250,000 to a maximum of
$1.0 million. Pro rata amounts can be earned between threshold and maximum with performance measured over three consecutive calendar years, beginning with the grant year. Performance equity will be granted annually and will vest based on
criteria and vesting requirements included in the Company’s executive incentive compensation program, attached as Schedule A. The performance based equity grants shall be subject to the terms and conditions of an award agreement between the
Company and Executive which award agreement shall be subject to the terms and conditions of The Heritage Insurance Holdings, Inc. Omnibus Incentive Plan or any other equity incentive plan approved and adopted by the Board 

5. Insurance. During the Employment Term, the Company shall obtain comprehensive major medical, hospitalization and disability insurance coverage,
either group or individual, for the Executive and his dependents, and may obtain or may continue in force life (“key man”) insurance on the Executive for the benefit of the Company/Executive (collectively, the “Policies”), which
Policies the Company shall keep in effect at its sole expense throughout the Employment Term. The Policies to be provided by the Company shall be on terms as determined by the Board. Within 30 days following any termination of this Agreement, at the
Executive’s option, the Company shall assign to the Executive all insurance policies on the life of the Executive then owned by the Company in consideration of the payment by the Executive of the premiums accruing after the date of such
termination. 

  
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 6. Disability. During the Employment Term, the Company shall maintain long-term disability insurance
coverage on Executive in an amount equal to sixty percent (60%) of Executive’s base salary during the Employment Term of this Agreement. In the case of a disability of Executive, all benefits provided for under the above-described coverage
shall be paid directly to Executive. Executive represents and warrants that, to the best of his knowledge, he has no disability which would impair his ability to perform the duties called for under this Agreement. If Executive shall become unable to
perform its duties as provided for herein by reason of illness or injury for a consecutive period of ninety (90) days, then the Company may, within thirty (30) days, suspend the officership of the Executive. In the event of such
suspension, Executive shall remain an employee of the Company and receive the compensation and the fringe benefits as set forth in Section 2 through December 31st of the current year (the “Suspension Period”). Executive’s
employment with the Company shall terminate at the end of the Suspension Period if the Executive has not returned by the end of the Suspension Period to the full-time performance of his duties hereunder. 

7. Working Facilities. During the Employment Term, the Company shall furnish the Executive with an office, and such other facilities and services
suitable to his position and adequate for the performance of his duties hereunder. 
 8. Vacation. Executive shall receive up to thirty paid vacation
days every calendar year. Any portion of the unused annual vacation days shall be accrued and will accumulate and may be used by the Executive at any time during his employment. If Executive has not used all of his accrued and accumulated vacation
time at the termination of his employment, the Company shall pay any unused vacation to Executive in a lump sum within ninety (90) days following his termination of employment. 

Section III. Termination. 
 1.
Termination for Cause. Notwithstanding anything contained in this Agreement to the contrary, this Agreement may be terminated by the Company for Cause. As used in this Agreement “Cause” shall only mean (i) any action or
omission of the Executive which constitutes a breach of this Agreement, (ii) fraud, breach of fiduciary duty, gross negligence, embezzlement or misappropriation as against the Company, (iii) conviction of a felony; material violation of
Company policies which causes material reputational or financial harm to the Company. Upon any determination by the Company’s Board that Cause exists under clause (i) of the preceding sentence, the Company shall cause a special meeting of
the Board to be called and held at a time mutually convenient to the Board and Executive. Executive shall have the right to appear before such special meeting of the Board to refute any determination of Cause specified in such notice, and any
termination of Executive’s employment by reason of such Cause determination shall not be effective until Executive is afforded such opportunity to appear. Any termination shall be made in writing to Executive, which notice shall set forth in
detail all acts or omissions upon which the Company is relying for such termination. Upon any termination for cause, the Company shall have no obligation to pay the Executive any compensation or benefits under this Agreement. 

  
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 2. Severance. If Executive is terminated without Cause or voluntarily terminates his employment for
Good Reason, the Executive shall be entitled to a lump-sum cash severance payment equivalent to two times his annual base salary in effect immediately preceding termination, but not less than
$2.0 million, to be paid within ninety (90) days of his termination and upon receipt of any Company required release to comply with Code Section 409A. In addition, the Executive will be entitled to receive a prorated annual cash
incentive for the year of termination, subject to satisfying performance criteria, payable consistent with the Company’s normal annual cash incentive schedule included in the Company’s executive incentive compensation program, attached as
Schedule A. All previously granted and unvested time-based and performance-based stock compensation will immediately vest. As used in this Agreement, “Good Reason” shall mean, without the Executive’s consent (i) reduction in
Executive’s base salary, (ii) reduction in Executive’s cash bonus opportunity, (iii) reduction in Executive’s stock compensation opportunity, (iv) reduction in title, duties or responsibilities, (v) any requirement
that the Executive report to anyone other than the Board, (vi) meaningful, involuntary relocation of Executive’s principal place of business, or (vii) a material breach of this Agreement by the Company. 

3. Voluntary. Notwithstanding anything contained in this Agreement to the contrary, this Agreement may be terminated by the Executive for any reason by
giving no less than 90 days prior written notice. The Company shall not be responsible for any further compensation of any kind to the Executive beyond 90 days from the date the Executive provides notice of his intent to terminate his employment
unless the voluntary termination is with Good Reason, in which case the Severance clause of this Agreement will apply. 
 4. Change of Control. For
the purposes of this Agreement, (i) a “Change of Control” shall be deemed to have taken place if: (i) any person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended, becomes the owner or beneficial owner of Company securities, after the Effective Date, having greater than 50% of the combined voting power of the then outstanding shares of the Company that may be cast for the election of directors of the
Company (other than as a result of an issuance of securities initiated by the Company, or open market purchases approved by the Board, as long as the majority of the Board approving the purchases is the majority at the time the purchases are made),
or (ii) the persons who were directors of the Company before such transactions shall cease to constitute a majority of the Board, or any successor to the Company, as the direct or indirect result of or in connection with, any cash tender or
exchange offer, merger or other business combination, sale of assets or contested election, or any combination of the foregoing transactions and the (ii) the “Change of Control Date” shall be the date on which a Change of Control
occurs. 
 During the remaining Employment Term hereof after a Change of Control Date, the Company (or the acquiring or surviving entity, will continue to be
bound by this Agreement. Following a Change of Control, if the Executive is terminated without Cause or voluntarily terminates his employment for Good Reason, Section III(2) of this Agreement will apply, but the lump sum cash severance payment will
instead equal three times the Executive’s base salary in effect immediately preceding termination, reflecting a minimum payment of $2.0 million, to be paid within ninety (90) days following his termination. The Executive will be
entitled to receive a prorated annual cash incentive for the year of termination, subject to satisfying performance criteria, payable consistent with the Company’s normal annual cash incentive schedule included in the Company’s executive
incentive compensation program, attached as Schedule A. All previously granted and unvested time-based and performance-based stock compensation will immediately vest. 

  
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 Section IV. Restrictive Covenants 

1. Confidentiality/Non-Disclosure. “Confidential Information” shall mean any intellectual property,
information, or trade secrets (whether or not specifically labeled or identified as “confidential” or “private”), in any form or medium, that is disclosed to, or developed or learned by, the Executive, and that relates to the
business plan, underwriting, products, services, research, or development of or by the Company or its Subsidiaries, suppliers, distributors, customers, investors, partners, and/or other business associates, and that has not become publicly known.
Confidential Information includes, but is not limited to, the following: 
 a. Internal business information (including but not limited to
information relating to strategy, staffing, financial data, training, marketing, promotional and sales plans and practices, costs, bidding activities and strategies, rate and pricing structures, and accounting and business methods); 

b. Identities of, negotiations with, individual requirements of, specific contractual arrangements with, and information about, the
Company’s or its Subsidiaries’ suppliers, distributors, customers, investors, partners and/or other business associates, their contact information, and their confidential information; 

c. Compilations of data and analyses, underwriting process and parameters, material processes, technical data, specific program information,
trade or industrial practices, computer programs, formulae, systems, research, records, reports, manuals, documentation, customer and supplier lists, data and databases relating thereto, and technology and methodology regarding specific projects;
and 
 d. Intellectual Property not generally available to the public or published by the Company or its Subsidiaries. “Intellectual
Property,” or “IP,” shall mean (1) inventions or devices, whether patentable or not; (2) original works of authorship produced by or on behalf of the Company or its Subsidiaries; (3) trade secrets; (4) know-how; (5) customer lists and confidential information; and (6) any other intangible property protectable under federal, state or foreign law. Other examples of Intellectual Property include,
but are not limited to, patent applications, patents, copyrighted works, technical data, computer software, knowledge of suppliers or business partnerships, documentation, processes, and methods and results of research. 

2. Acknowledgements. 
 a. The Executive
acknowledges and agrees with the representations of the Company that Confidential Information and IP is proprietary and valuable to the Company, and that any disclosure or unauthorized use thereof may cause irreparable harm and loss to the Company.

  
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It is further acknowledged by the Executive that if the general public or competitors (now existing or to be created in the future) learn of these ongoing discussions and negotiations with
potential investors as a result of the Executive’s failure to comply hereunder, irreparable harm and substantial financial loss may occur to the Company’s, the Insurance Entity or other Subsidiary’s viability and future revenues. The
Executive acknowledges and agrees that the knowledge and experience the Executive shall acquire by virtue of employment by the Company during the Employment Term is of a special, unique and extraordinary character and hat such position allows the
Executive access to Confidential Information and Intellectual Property. 
 b. The Executive acknowledges and agrees that (a) the nature
and periods of restrictions imposed by the covenants contained in this Agreement are fair, reasonable and necessary to protect and preserve for the Company and its Subsidiaries their viability and future revenues; (b) the Company or its
Subsidiaries would sustain great and irreparable loss and damage if the Executive were to breach any of such covenants set forth herein; (c) the covenants herein set forth are made as an inducement to and have been relied upon by the Company in
entering into this Agreement. The Executive acknowledges and agrees this Agreement is binding on the Executive’s heirs, executors, successors, administrators, representatives and agents. 

c. The Executive agrees to receive and to treat Confidential Information and the 

knowledge of IP on a confidential and restricted basis and to undertake the following additional obligation with respect thereto: 

 

	 	i.	 To use the Confidential Information for the singular purpose of benefiting the Company and its Subsidiaries,
and specifically not use the Company’s and its Subsidiaries’ customer or prospective customer data to conduct marketing, or otherwise undertake personal contacts, to solicit, divert or appropriate customers or prospective customers of the
Company or its Subsidiaries, whether for the benefit of the Executive or any Person; 

  

	 	ii.	 Not to disclose Confidential Information, except to the extent the Executive is required to disclose or use
such Confidential Information in the performance of the Executive’s assigned duties for the Company or its Subsidiaries, to any Person without the prior express written consent of the Board; 

 

	 	iii.	 To tender all Confidential Information to the Company, and destroy any of the Executive’s additional notes
or records made from such Confidential Information, immediately upon request by the Company or upon termination of this Agreement 

  

	 	iv.	 To promptly disclose and assign any right, title and interest to the Company all IP authored, made,
conceived or actually reduced to practice, alone or jointly with others, (a) while performing duties for the Company or its Subsidiaries, or (b) during the Employment Term of this Agreement, or ( c) which results or is suggested by any
work done for or at the request of the Company or its Subsidiaries, or (d) which was aided by the use of trade secret information, whether or not during working hours and regardless of location; 

  
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	 	v.	 To use best efforts to safeguard the Confidential Information and protect it against disclosure, misuse,
espionage, loss, misappropriation and theft; 

  

	 	vi.	 Immediately notify the Board of any breach of this Agreement; and 

 

	 	vii.	 Assist the Company or its Subsidiaries, both during and after the termination of this Agreement, in obtaining
and enforcing any legal rights in IP of the Company or its Subsidiaries, or assigned or to be assigned by the Executive to the Company or its Subsidiaries. 

3. Non-Solicitation. For a period of one (1) year after Employee leaves the employment of Company, the
Employee covenants and agrees with the Company that the Employee will not, directly or indirectly, attempt to employ, divert away an employee, or enter into any contractual arrangement with any employee or former employee, of the Company or its
Subsidiaries, unless such employee or former employee has not been employed by the Company or its Subsidiaries for a period in excess of one (1) year. 

4. Non-Compete. For a period of one (1) year following the Executive’s last day of employment, the
Employee covenants and agrees with the Company that the Employee will not serve as an employee for any Business that writes the same insurance products in the states in which the Company or its Subsidiaries sell insurance products as of the date of
this Agreement. For purposes hereof, “Business” shall mean a homeowner insurance carrier deriving 90% or more of its prior year written premium from coastal homeowners policies. “Business” shall also mean any Florida domiciled
insurance carrier regardless of the percentage of prior year written premium from coastal homeowners policies. If Executive is involuntarily terminated for any reason, or voluntarily terminates his employment for Good Reason, the terms of this non-compete shall be unenforceable. 
 Section V. Taxes 

1. Generally. Anything in this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Executive or
the Executive’s estate or beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In lieu of withholding such
amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholding as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold
have been satisfied. 

  
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 2. Section 409A Compliance. It is the intention of both the Company and the
Executive that the benefits and rights to which the Executive could be entitled pursuant to this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended and the Treasury Regulations and other guidance promulgated or
issued thereunder (“Section 409A”), to the extent that the requirements of Section 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention. If the Executive
or the Company believes, at any time, that any such benefit or right that is subject to Section 409A does not so comply, he, she or it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such
benefits and rights such that they comply with Section 409A (with the most limited possible economic effect on the Executive and on the Company). If and to the extent required to comply with Section 409A, no payment or benefit required to
be paid under this Agreement on account of termination of the Executive’s employment shall be made unless and until the Executive incurs a “separation from service” within the meaning of Section 409A. Notwithstanding anything in
this Agreement to the contrary, to the extent necessary to comply with Section 409A of the Code, no transaction or series of transactions shall constitute a Change of Control unless such transaction or series of transactions is a permissible
payment event for purposes of Treasury Regulation Section 1.409A-3(a)(5) of the Code. If the Executive is a “specified employee” (as reasonably determined by the Company in accordance with
Section 409A), then no payment or benefit that is payable on account of the Executive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is six months after
the Executive’s “separation from service” (or, if earlier, the date of the Executive’s death) if and to the extent that such payment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation)
under Section 409A and such deferral is required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump sum at the end of such required
delay period in order to catch up to the original payment schedule.    For purposes of applying the provisions of Section 409A to this Agreement, each separately identified amount to which the Executive is entitled under
this Agreement shall be treated as a separate payment. In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments. Any
reimbursements by the Company to the Executive of any eligible expenses under this Agreement that are not excludable from the Executive’s income for Federal income tax purposes (the “Taxable Reimbursements”) shall be made by no later
than the last day of the taxable year of the Executive following the year in which the expense was incurred. The amount of any Taxable Reimbursements, and the value of any in-kind benefits to be provided to
the Executive, during any taxable year of the Executive shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Executive. The right to
Taxable Reimbursement, or in-kind benefits, shall not be subject to liquidation or exchange for another benefit. Notwithstanding anything to the contrary, the Company does not make any representation to the
Executive that the payments or benefits provided under this Agreement are exempt from, or satisfy, the requirements of Section 409A, and neither the Company nor any Related Entity shall have any liability or other obligation to indemnify or
hold harmless the Executive or any beneficiary of the Executive for any tax, additional tax, interest or penalties that the Executive or any beneficiary of the Executive may incur in the event that any provision of this Agreement or any other action
taken with respect thereto is deemed to violate any of the requirements of Section 409A. 

  
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 3. Notwithstanding any other provision of this Agreement or any other plan, arrangement or agreement to the
contrary, if any of the payments or benefits provided or to be provided by the Company Group to the Executive or for the Executive’s benefit pursuant to the terms of this Agreement or otherwise (“Covered Payments”) constitute
parachute payments (“Parachute Payments”) within the meaning of Section 280G of the Code and would, but for this Section be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or
any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then the Covered Payments shall be payable either (i) in full or (ii) reduced to the minimum
extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax, whichever of the foregoing (i) or (ii) results in the Executive’s receipt on an after-tax basis of the
greatest amount of benefits after taking into account the applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax). If a reduction in payments or benefits is necessary, reduction shall occur in
the following order: (i) cash payments; (ii) equity-based payments and acceleration; and (iii) other non-cash forms of benefits. Within any such category of payments and benefits (that is,
(i), (ii) or (iii)), a reduction shall occur first with respect to amounts that are not “deferred compensation” within the meaning of Section 409A of the Code and then with respect to amounts that are. To the extent any such
payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order. Any determination required hereunder, including whether any payments or benefits are Parachute Payments, shall be
made by the Company in its sole discretion. 
 Section VI. Miscellaneous 

1. Severability. In the event that the provisions of this Agreement should ever be deemed to exceed the time or geographic limitations permitted by
applicable law, then the provisions will be reformed to the maximum time or geographic limitations permitted by applicable law. Every provision of this Agreement is intended to be severable, and, if any term or provision is determined to be illegal,
invalid or unenforceable for any reason whatsoever, and cannot be reformed, such illegal, invalid or unenforceable provision shall be deemed severed here from and shall not affect the validity, legality or enforceability of the remainder of this
Agreement. 
 2. Books and Records. All books, records, accounts and similar repositories of Confidential Information of the Company and its
Subsidiaries, whether prepared by the Executive or otherwise coming into the Executive’s possession, shall be the exclusive property of the Company and shall be returned immediately to the Company and its Subsidiaries on termination of this
Agreement or on the Board’s request at any time. 
 3. Survival. The restrictions and obligations of this Section IV shall survive any
expiration, termination, or cancellation of either the Employment Term of this Agreement and shall continue to bind the Executive and the Executive’s respective heirs, executors, successors, administrators, representatives and agents. 

4. Consolidation, Merger or Sale of Assets. Nothing in this Agreement shall preclude the Company from consolidating or merging into or with or
transferring all or substantially all of its assets to, another corporation which assumes this Agreement, and all obligations of the Company hereunder, in writing. Upon such consolidation, merger, or transfer of assets and assumption, the term
“the Company” as used herein, shall mean such other corporation and this Agreement shall continue in full force and effect, subject to the provisions of Section III, Paragraph 4 hereof. 

  
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 5. Binding Effect. Except as herein otherwise provided, this Agreement shall inure to the benefit of
and shall be binding upon the parties hereto, their personal representatives, successors, heirs and assigns. The obligations of Company and the Subsidiaries to Executive are joint and several. All provisions of this Agreement are specifically
enforceable by the Subsidiaries in addition to Company. Each of the Subsidiaries shall be considered a third-party beneficiary under the provisions of this Agreement. 

6. Further Assurances. At any time, and from time to time, each party will take such action as may be reasonably requested by the other party to carry
out the intent and purposes of this Agreement. 
 7. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof. It supersedes all prior negotiations, letters and understandings relating to the subject matter hereof. 
 8.
Amendment. This Agreement may not be amended, supplemented or modified in whole or in part except by an instrument in writing signed by the party or parties against whom enforcement of any such amendment, supplement or modification is sought.

 9. Assignment. This Agreement may not be assigned by the Executive and may not be assigned by the Company except as described in above. 

10. Choice of Law. This Agreement will be interpreted, construed and enforced in accordance with the laws of the State of Delaware, without giving
effect to the application of the principles pertaining to conflicts of laws. 
 11. Effect of Waiver. The failure of any party at any time or times to
require performance of any provision of this Agreement will in no manner affect the right to enforce the same. The waiver by any party of any breach of any provision of this Agreement will not be construed to be a waiver by any such party of any
succeeding breach of that provision or a waiver by such party of any breach of any other provision. 
 12. Construction. The parties hereto and their
respective legal counsel participated in the preparation of this Agreement; therefore, this Agreement shall be construed neither against nor in favor of any of the parties hereto, but rather in accordance with the fair meaning thereof. 

13. Arbitration. The parties agree that all disputes related to this Agreement, other than disputes seeking equitable remedies, shall be submitted to
arbitration in Pinellas County, Florida pursuant to the rules of the American Arbitration Association. 
 14. Equitable Remedy. The parties hereto
acknowledge and agree that any party’s remedy at law for a breach or threatened breach of any of the provisions of this Agreement would be inadequate and such breach or threatened breach shall be per se deemed as causing irreparable harm to
such party. Therefore, in the event of such breach or threatened breach, the parties hereto 

  
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agree that, in addition to any available remedy at law, including but not limited to monetary damages, an aggrieved party, without posting any bond, shall be entitled to obtain, and the offending
party agrees to oppose the aggrieved party’s request for, equitable relief in the form of specific enforcement, temporary restraining order, temporary or permanent injunction, or any other equitable remedy that may then be available to the
aggrieved party. 
 15. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original. 

16. Notice. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered when sent by facsimile with receipt confirmed or
when deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested, or by overnight courier, addressed to the parties at the address first stated herein, or to such other address as either party hereto
shall from time to time designate. 
 Agreed to by: 

Heritage Insurance Holdings, Inc. 
  

			
	By:	 	 /s/ Richard Widdicombe

		 	Richard Widdicombe, Chairman
	
	Executive
		
		 	 /s/ Ernie Garateix

		 	Ernie Garateix

  
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 Schedule A 

ANNUAL INCENTIVE COMPENSATION PLAN 

Eligible executives can receive annual performance-based cash and equity incentives and annual time-based equity grants in accordance with
Heritage’s annual incentive compensation plan. Annual cash incentives are associated with Heritage’s short-term annual incentive plan, while annual time-based and performance-based equity grants are associated with Heritage’s
long-term annual incentive plan. 
 Payout amounts for annual cash and performance equity grants are based on target dollar amounts established in eligible
executives’ employment agreements. The dollar amount of time-based restricted stock grants that executives are eligible to receive annually are similarly outlined in executives’ employment agreements. 

 

													
	
Cash and performance stock bonus payouts

	 	  	Cash bonus 	 	Performance Stock
	 	  	Threshold	 	Target	 	Max	 	Threshold	 	Target	 	Max
		  	[  ]%	 	[  ]%	 	[  ]%	 	[  ]%	 	[  ]%	 	[  ]%

 Note: pro rata amounts are calculated between
threshold and target and target and max. 
 Annual short-term incentive plan: 

Heritage’s annual short-term incentive plan is performance-based and consists of annual cash incentives that are payable no later than March 5th of the immediately subsequent calendar year. Performance criteria are measured over a single calendar year. 
  

											
	Cash bonus criteria	 
	 Weighting
	  	 	  	Threshold	 	Target	 	Max	 
	[  ]%	  	Net operating ratio *	  	[  ]%	 	[  ]%	 	 	[  ]%	 
	[  ]%	  	Ex-FL organic GPW growth **	  	[  ]%	 	[  ]%	 	 	[  ]%	 
	[  ]%	  	Qualitative	  	Qualitative	 			

  

	*	 The numerator of the net operating ratio is calculated as the sum of net losses and loss adjustment expenses,
policy acquisition costs and general and administrative expenses, less net investment income and policy fee income, while the denominator represents net premiums earned. 

	**	 Organic gross premiums written (GPW) growth is calculated as year-over-year GPW growth excluding premiums
associated with acquisitions of whole entities for twelve months from the acquisition date. 

  
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 Annual long-term incentive plan: 

Heritage’s annual long-term incentive plan consists of two components: 
  

	 	•	 	 Annual grants of time-based restricted stock that vest in one-third
annual increments, beginning with December 31st of the grant year. 

  

	 	•	 	 Annual grants of performance-based restricted stock that vest following the conclusion of the three-year
performance period, but no later than March 5th of the calendar year immediately following the three-year performance period. The performance period is over three calendar years, beginning with
the year of grant. 

  

							
	 Performance stock criteria
	  	 	 	 	 	 
	 	  	Threshold	 	Target	 	Max
	 3-year adjusted book value per share growth
	  	[  ]%	 	[  ]%	 	[  ]%

Note: adjusted book value per share growth excludes cumulative dividends declared and 
accumulated other comprehensive income. 

  
 13Exhibit 10.36 Managing Broker Agmt

		
			MINISTRY PARTNERS INVESTMENT COMPANY, LLC 
		

		
			  
		

		
			MANAGING BROKER AGREEMENT 
		

		
			   
		

		
			   
		

		
			January _, 2021
		

		
			   
		

		
			   
		

		
			Ministry Partners Securities, LLC 
		

		
			915 W. Imperial Highway 
		

		
			Suite 120  
		

		
			Brea, California 92821  
		

		
			   
		

		
			Ladies and Gentlemen: 
		

		
			   
		

		
			Ministry Partners Investment Company, LLC, a California limited liability company (the “Company”), intends to, subject to the terms and conditions set forth in this agreement (the “Agreement”), issue and sell to the public $125,000,000 of its 2021 Class A Notes, in two series, consisting of a Fixed Series and Variable Series in several categories (the “Notes”) in an offering (the “Offering”) registered under the Securities Act of 1933, as amended (the “1933 Act”) and registered in selected states (the “Blue Sky States”).   
		

		
			On November 12, 2020, the Company filed with the U.S. Securities and Exchange Commission (the “Commission”), a Registration Statement, as subsequently amended, which registration was declared effective by the Commission on ____________ and  will be registered  as a registration by coordination basis  in those Blue Sky States listed on Schedule I attached hereto, which is hereby incorporated by reference.   
		

		
			   
		

		
			Under the terms of the Offering, the Company is offering the Notes for sale to the public on a best efforts basis through its wholly-owned subsidiary, Ministry Partners Securities, LLC, a Delaware limited liability company (“MP Securities”). MP Securities has been registered as a broker-dealer firm under the provisions of Section 15(b) of the Securities Exchange Act of 1934 (the “1934 Act”) and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”).  
		

		
			   
		

		
			Accordingly, the Company has named MP Securities as the managing broker (“MB”) in the Prospectus. MP Securities will also act as the selling agent for the Offering.  For purposes of this Agreement, the term “Registration Statement” means the registration statement filed by the Company with the Commission that describes the Offering of the Notes for sale to the public.  The term “Prospectus” means the basic prospectus included in the Registration Statement at the time the Registration Statement is declared effective by the Commission, together with any prospectus supplement of and Post-Effective Amendments thereto, each in the form furnished to the Commission pursuant to Rule 424 under the 1933 Act, by the Company for use in connection with the offering of the Notes. 
		

		
			   
		

		
			Subject to the terms and conditions set forth in this Agreement, the Company hereby confirms its engagement of MP Securities as MB pursuant to which MP Securities will render services to the Company as MB for the offering and sale of the Notes as provided in this Agreement.  MP Securities will act as the MB to sell the Notes on a best-efforts basis.  MP Securities hereby accepts its appointment upon terms and conditions set forth in this Agreement.  Nothing in this Agreement shall require MP Securities to purchase any of the Notes in the Offering. 
		

		
			   
		

		
			1.    Appointment of Managing Broker. The Company hereby appoints MP Securities to act as the MB of the Offering. MP Securities will also serve as the selling agent for the Company in the Offering.  
		

		
			   
		

		
			2.    The Offering.   
		

		
			   
		

			
	
			
				 (a)
			

			
	
			
			Terms of the Offering.   

		
			   
		

		
			(i)    Certain terms of the Offering are as follows: 
		

		
			   
		

		
			(1)    Qualification of the Trust Indenture with respect to the Notes under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), will be required in connection with the offer, issuance, sale, or delivery of the Notes; 
		

		
			   
		

		
			(2)    There are minimum investment requirements for Notes as offered by the Prospectus that must be satisfied before the Company may close the sale of a Note in the Offering; 
		

		
			   
		

		
			(3)    Investors may purchase Notes through a licensed participating broker-dealer; 
		

		
			   
		

		
			(4)    The Company may elect to hold more than one closing for the sale of Notes; 
		

		
			   
		

		
			(5)    The Offering will terminate at the earlier of (A) the sale of all of the Notes being offered in the Offering, or (B) December 31, 2023, the expiration date of the Offering; and 
		

		
			   
		

		
			(6)    The Company may, in its sole discretion, at any time, or from time to time, suspend the sale of one or more Categories or Category Series of a Note or Notes, or terminate the Offering. 
		

		
			   
		

		
			(ii)    The final terms of the Notes to be issued by the Company and of the Offering will be determined by the Company as set forth in a Registration Statement and Prospectus, which the Company will prepare for distribution to prospective purchasers of Notes in the Offering. 
		

		
			   
		

			
	
			
				 (b)
			

			
	
			
			Nature of Offering.  The Offering will be made by the MB on a “best efforts basis.” During the term of this Agreement, the MB shall use its reasonable best efforts to (i) identify potential investors, (ii) furnish such potential investors, on behalf of the Company, with copies of the Prospectus, and (iii) assist the Company with the sale of Notes at each closing. Notwithstanding any contrary provision of this Agreement, MP Securities will have no liability to the Company or any other person for its failure to identify one or more prospective investors in the Offering or the failure of the Company to sell any or all of the Notes being offered for sale in the Offering. 

		
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			3.    Managing Broker Compensation and Costs.  In consideration for the performance of the services hereunder, the Company hereby agrees to pay to MP Securities the fees as outlined below: 
		

		
			 
		

		

		

		 

 

		
		

			
	
			
				 (a)
			

			
	
			
			Sales Commission.  When a 2021 Class A Note is purchased under the Offering, a sales commission equal to 1.5% of the aggregate amount of a Note purchased will be paid to MP Securities.  The 1.5% sales commission will be assessed on any purchase of a 2021 Class A Note, including reinvestments made by investors that may have previously purchased a publicly offered debt security from the Company.

		
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				 (b)
			

			
	
			
			Account Servicing Fee.  As compensation for services to be rendered under this Agreement, MP Securities shall be entitled to receive from the Company an account servicing fee (“Account Servicing Fee”) specified in Exhibit A which is hereby incorporated by reference.    The Company may, in its sole discretion, change the Account Servicing Fee payable for the sale of any Note, Note Category or Note Category Series at anytime, or from time to time, so long as the total Account Servicing Fee payable on the Notes  (including the 1.5% Sales Commission paid on the purchase) does not exceed 5.5% after giving effect to any such change. The foregoing notwithstanding, however, no change of the Account Servicing Fee amount shall apply to a Note sale that occurs prior to the time Company gives notice of such change to MP Securities. 

		
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				 (c)
			

			
	
			
			Processing Fee.  For each sale of a 2021 Class A Note, whether made to a new investor or repeat investor whom has previously invested in a Company offered note, the Company will pay MP Securities a processing fee of .50% of the principal amount of a 2021 Class A Note, payable at the closing of such purchase. No processing fee will be paid on additional investments made on a Variable Series 2021 Class A Note. 

		
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				 (d)
			

			
	
			
			Due Diligence Fee.  The Company agrees to pay to MP Securities a non-accountable due diligence fee of $9,000.

		
			  
		

			
	
			
				 (e)
			

			
	
			
			Obligation to Pay.  The Company is not obligated to pay compensation to MP Securities  with respect to any sale of the Notes unless and until such time as a closing for that sale has occurred and the Company has received the proceeds from such sale. 

		
			  
		

			
	
			
				 (f)
			

			
	
			
			Costs.  It is acknowledged and agreed that the Company shall bear all costs and expenses incident to the issuance, offer, sale and delivery of the Notes.  These costs and expenses will include but are not limited to state “Blue Sky” fees, legal fees, printing costs, travel costs, mailing, couriers, personal background checks, and other expenses incidental to the advancement and completion of the Offering. 

		
			  
		

			
	
			
				 (g)
			

			
	
			
			Acknowledgment and Agreement Regarding Underwriting Compensation. The Company and MP Securities acknowledges and agrees that it will pay to MP Securities the following estimated maximum amounts which are deemed to be Underwriting Compensation under FINRA Rule 2310(b)(4)(C) and (D) which total $9,057,023. 

		
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			(i) Commissions and/or Account Servicing Fees of $6,875,000 (as provided in (a) above) pursuant to Rule (b)(4)(C)(ii)(a); 
		

		
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			(ii) Non-transaction based compensation of $439,367 allocated to FINRA members pursuant to Rules (b)(4)(C)(ii)(c) and (b)(4)(D); 
		

		
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			(iii) Dual-employee non-transaction-based compensation of $1,085,197 allocated to dual employees pursuant to Rule (b)(4)(C)(i); 
		

		
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			(iv) Investor note servicing fees of $648,459 allocated to the offering as non-transaction based compensation pursuant to Rule (b)(4)(C)(ii)(a);
		

		
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			(v) Due diligence fees of $9,000 (including those paid pursuant to (b) above) pursuant to Rule (b)(4)(C)(iii); 
		

		
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			(vi) For an estimated maximum total of $9,057,023 Underwriting Compensation under Rule 2310(b)(4)(C) and (D). 
		

		
			   
		

		
			The Company and the MB hereby confirm that the Company has not paid, and will not pay, to the MB, and that the MB has not received, and will not receive from the Company or any of its other Affiliates, any non-cash consideration in connection with this Agreement or pursuant to any other agreement for financing, investment and/or advisory services within the 180-day period preceding the effective date of the Offering or within the 90-day period following such effective date. 
		

		
			   
		

		
			4. Representations and Warranties of the Company.  The Company represents and warrants to, and agrees with, MP Securities that: 
		

		
			   
		

			
	
			
				 (a)
			

			
	
			
			No Stop Order or Suspension.  The Registration Statement has become effective; no stop order suspending the effectiveness of the Registration Statement is in effect, and no proceedings for such purposes are pending before or, to the knowledge of the Company is threatened by the Commission, or any state regulatory authority which would prevent the use of the Registration Statement or Prospectus in connection with the Offering; 

		
			   
		

			
	
			
				 (b)
			

			
	
			
			Disclosures in Registration Statement. At the time of effectiveness of the Registration Statement (or at the effective time of any post-effective amendment to the Registration Statement) and at all times subsequent thereto up to a closing of the sale of a Note, the Registration Statement and the Prospectus contained or will contain all material statements that are required to be stated therein in accordance with the 1933 Act and the regulations promulgated thereunder (the “Regulations”), and did or will, in all material respects, conform to the requirements of the 1933 Act and the Regulations. On the last effective date and at the time of the Note sale, the Registration Statement will not, and on such closing date will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading; on the date of any filing pursuant to Rule 424(b) and on such closing date, the Prospectus (together with any supplement thereto) will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; 

		
			   
		

			
	
			
				 (c)
			

			
	
			
			Authority.  No authorization, approval, or permit of or from, or declaration or filing with, any governmental authority, any court or other tribunal, is required by the Company for the execution, delivery, or performance of this Agreement by the Company or the sale of the Notes in the Offering by the Company, except as required by FINRA or required under applicable state securities laws, which have been or will be made by the time required by such laws; 

		
			   
		

			
	
			
				 (d)
			

			
	
			
			No Material Loss.  The Company has not sustained any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or action, order or decree of any governmental entity; and, since the date as of which information is given in the Prospectus, there has not been any material change in the ownership or long-term debt of the Company or any material adverse change, or any development that may cause a prospective material adverse change, in or affecting the general affairs, management, financial position, business prospects or results of operations of the Company, otherwise than as set forth or contemplated in the Prospectus; 

		
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				 (e)
			

			
	
			
			Valid Existence.  The Company has been duly formed and is validly existing as a limited liability company in good standing under the laws of the State of California, with power and authority to own its properties and conduct its business as described in the Prospectus; 

		
			   
		

			
	
			
				 (f)
			

			
	
			
			Trust Indenture Binding. The Trust Indenture (assuming due execution and delivery thereof by the trustee) is and the Notes (when executed by the Company and authenticated in accordance with the Trust Indenture) will be, the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as limited by equitable principles, bankruptcy, reorganization or other similar laws relating to or affecting the enforcement of creditor’s rights generally; 

		
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				 (g)
			

			
	
			
			Notes will be Binding Obligations.  The Notes are validly authorized and, when issued and delivered in accordance with the Prospectus, will be validly issued, fully paid, and non-assessable and will not be issued in violation of any preemptive rights. The Notes and Trust Indenture conform in all material respects to the descriptions relating thereto contained in the Prospectus; 

		
			   
		

			
	
			
				 (h)
			

			
	
			
			No Prohibition.  No consent of any party to any contract, agreement, instrument, lease, license, or arrangement to which the Company is a party, or to which any of its properties or assets are subject, is required for the execution, delivery, or performance of this Agreement or the Trust Indenture.  The Company’s execution, delivery, or performance of this Agreement and the Trust Indenture and sale of the Notes in the Offering (i) will not violate, result in a breach of, or conflict with, or (with or without the giving of notice or the passage of time or both) entitle any party to terminate or call a default under, any agreement to which the Company is a party or to which the Company or any of its assets are subject; (ii) will not violate, result in a breach of, or conflict with any term of the certificate of formation or operating agreement; (iii) will not result in the creation or imposition of any lien, charge, or encumbrance upon any property or assets of the Company; and (iv) will not violate, result in a breach of, or conflict with any law, rule, regulation, order, judgment, or decree binding on the Company or any of its assets; 

		
			   
		

			
	
			
				 (i)
			

			
	
			
			No Litigation.  There is no litigation or governmental proceeding pending or, to the Company’s knowledge, threatened against, or involving the Company or any of its properties, except as may be set forth in the Prospectus; 

		
			   
		

			
	
			
				 (j)
			

			
	
			
			No Breach.  The Company is not in breach of, or in default under, any term or provision of any indenture, mortgage, deed of trust, lease, note, loan, or credit agreement, or any other agreement or instrument evidencing an obligation for borrowed money, or any other material agreement or instrument to which it is a party or by which it or any of its properties may be bound.  The Company is not in violation of any provision of its certificate of formation or operating agreement, any franchise, license, permit, judgment, decree, or order, or any statute, rule, or regulation, except for any violation which would not reasonably be expected to have a material adverse effect on the Company or any of its properties or assets; 

		
			   
		

			
	
			
				 (k)
			

			
	
			
			Adequacy of Records.  The Company makes and keeps books and records and maintains internal accounting controls that provide reasonable assurance that: (i) transactions are executed in accordance with management’s authorization, (ii) transactions are recorded as necessary to permit preparation of its financial statements and to maintain accountability for its assets, and (iii) access to its assets is permitted only in accordance with management’s authorization; and 

		
			   
		

			
	
			
				 (l)
			

			
	
			
			No Other Engagements.  Neither the Company nor any of its owners, managers, directors, officers, employees, representatives, or agents has engaged any placement agent, underwriter, broker, finder, or other similar person with respect to the Offering other than as described in the Registration Statement and Prospectus. 

		
			   
		

		
			5.    Covenants and Agreements of the Company.  The Company agrees with MP Securities: 
		

		
			   
		

			
	
			
				 (a)
			

			
	
			
			Copies of Prospectus.  To furnish MP Securities with copies of the Prospectus in such quantities as MP Securities may from time to time reasonably request, and, if any event shall have occurred as a result of which the Prospectus would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Prospectus is delivered, not misleading, or, if for any other reason it shall be necessary to amend or supplement the Prospectus, to notify MP Securities and upon MP Securities’ request to prepare and furnish without charge to MP Securities as many copies as MP Securities may from time to time reasonably request of an amended Prospectus or a supplement to the Prospectus which will correct such statement or omission or effect compliance; 

		
			   
		

			
	
			
				 (b)
			

			
	
			
			Copy of Amendments, Supplements.  To make no amendment or any supplement to the Prospectus unless MP Securities is given a copy of such proposed amendment or supplement; to advise MP Securities, promptly after it receives notice thereof, of the issuance by any state, federal or other regulatory authority of any stop order or of any order preventing or suspending the use of any Prospectus, of the suspension of the qualification of the Notes for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by any regulatory authority for the amending or supplementing of the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use of the Prospectus or suspending any such qualification, promptly to use its best efforts to obtain the withdrawal of such order; 

		
			   
		

			
	
			
				 (c)
			

			
	
			
			Use of Proceeds.  To use the net proceeds received by it from the sale of the Notes pursuant to this Agreement in the manner specified in the Prospectus under the caption “Use of Proceeds”; 

		
			   
		

			
	
			
				 (d)
			

			
	
			
			Disclosure of Material Change.  There has been no material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise, in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, except as set forth in the Prospectus; 

		
			   
		

			
	
			
				 (e)
			

			
	
			
			Disclosure of Regulatory and Legal Proceedings.  There are no legal or governmental proceedings pending or, to the knowledge of the Company, threatened to which the Company or any of its subsidiaries is a party or to which any of the properties of the Company or any of its subsidiaries is subject (i) other than proceedings accurately described in all material respects in the Prospectus and proceedings that would not have a material adverse effect on the Company and its subsidiaries, taken as a whole, or on the power or ability of the Company to perform its respective obligations under this Agreement, the Indenture, or the Notes or to consummate the transactions contemplated by the Prospectus or (ii) that are required to be described in the Registration Statement or the Prospectus and are not so described; and there are no statutes, regulations, contracts or other documents that are required to be described in the Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement that are not described or filed as required; 

		
			   
		

			
	
			
				 (f)
			

			
	
			
			The Investment Company Act of 1940.  The Company is not, and after giving effect to the offering and sale of the Notes and the application of the proceeds thereof as described in the Prospectus, the Company will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended; 

		
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				 (g)
			

			
	
			
			Title to Property.  Except as described in the Prospectus, (i) the Company has good and marketable title to all real property and good and marketable title to all personal property it owns and all mortgage notes and debt securities it owns which are material to its business, taken as a whole.  In each case, the Company has ownership free and clear of all liens, encumbrances and defects except those which do not materially affect the value of such property and do not materially interfere with the use made, and proposed to be made, of such property by the Company; and (ii) any real property and buildings held under lease by the Company are held by it under valid, subsisting and enforceable leases with such exceptions as are not material to the Company and do not materially interfere with the use made and proposed to be made of such property and buildings by the Company; 

		
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				 (h)
			

			
	
			
			Regulatory Authorizations.  The Company possesses all certificates, authorizations and permits issued by the appropriate federal, state or other regulatory authorities necessary to conduct its business as presently conducted, except as described in the Prospectus or where the failure to possess such certificates, authorizations and permits would not, singly or in the aggregate, have a material adverse effect on the Company, taken as a whole; and no officer or representative of the Company has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a material adverse effect on the Company, taken as a whole, except as described in the Prospectus; 

		
			   
		

			
	
			
				 (i)
			

			
	
			
			Financial Statements.  The consolidated financial statements of the Company and the related notes thereto included in the Registration Statement and the Prospectus comply in all material respects with the applicable requirements of the 1933 Act and the related rules and regulations of the Commission; present fairly in all material respects the financial position of the Company and its consolidated subsidiaries as of the dates indicated and the results of operations and cash flows of the Company and its consolidated subsidiaries for the periods specified; and have been prepared in conformity with U.S. generally accepted accounting principles applied on a consistent basis throughout the periods covered thereby (except as noted therein); and 

		
			   
		

			
	
			
				 (j)
			

			
	
			
			Disclosure of Relationships.  No relationship, direct or indirect, exists between the Company or any of its owners, managers, directors, officers, employees, representatives, or agents that is required by the 1933 Act to be described in the Prospectus and that is not so described in the Prospectus. 

		
			   
		

		
			6.    Representations and Warranties of Managing Broker.  MP Securities represents and warrants to, and agrees with, the Company that: 
		

		
			   
		

			
	
			
				 (a)
			

			
	
			
			Valid Existence.  MP Securities is duly organized and in good standing in its jurisdiction of origin. MP Securities holds all governmental authorizations, approvals, and permits necessary to conduct its business and to perform its obligations under this Agreement; 

		
			   
		

			
	
			
				 (b)
			

			
	
			
			Authority.  MP Securities has the requisite power and authority to execute, deliver, and perform its obligations under this Agreement.  This Agreement has been duly authorized, executed, and delivered by MP Securities and is the legal, valid, and binding obligation of MP Securities and enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting creditors’ rights generally, and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); 

		
			 
		

			
	
			
				 (c)
			

			
	
			
			Registered Broker-Dealer.  MP Securities is a broker-dealer registered with the Securities and Exchange Commission under the 1934 Act , is a member in good standing of FINRA, and is registered and/or qualified to act in each jurisdiction in which it is required to be registered and/or qualified to conduct its business and to perform its obligations under this Agreement; 

		
			 
		

			
	
			
				 (d)
			

			
	
			
			Only Section 3 Provided Compensation.  MP Securities acknowledges and agrees that, except as otherwise provided in Section 3 above, it shall not be entitled to any fee, commission, or other compensation for any capital raised by the Company or any of its affiliates through the sale of Notes in the Offering; and 

		
			   
		

			
	
			
				 (e)
			

			
	
			
			Information Provided.  All information provided by or on behalf of MP Securities for inclusion in the Prospectus does not and shall not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 

		
			   
		

		
			7.    Covenants and Agreements of Managing Broker.  In connection with its appointment as MB for the Offering, MP Securities covenants and agrees to: 
		

		
			   
		

			
	
			
				 (a)
			

			
	
			
			Abide by this Agreement.  Honor and abide by the provisions contained in this Agreement; 

		
			   
		

			
	
			
				 (b)
			

			
	
			
			Assistance to Company.  Collaborate with the Company and assist the Company in carrying out the terms and conditions of the Offering;  

		
			   
		

			
	
			
				 (c)
			

			
	
			
			Best Efforts.  Exercise its best efforts to comply with the subscription procedures and plan of distribution set forth in the Prospectus; 

		
			   
		

			
	
			
				 (d)
			

			
	
			
			Periodic Review.  Periodically review executed subscription agreements entered into by the Company for the sale of Notes in connection with the Offering; 

		
			   
		

		
			(e)  Fidelity Bond.  Maintain a fidelity bond in the minimum amount of $120,000; 
		

		
			   
		

			
	
			
				 (e)
			

			
	
			
			Insurance.  Maintain general commercial liability insurance policy in an amount reasonably acceptable to it and the Company and continue to maintain such policy during the term of this Agreement; 

		
			   
		

			
	
			
				 (f)
			

			
	
			
			FINRA Filings.  Be primarily responsible for any necessary Rule 5110 FINRA filings regarding compensation arrangements of the MB by reason of the Offering; and 

		
			   
		

			
	
			
				 (g)
			

			
	
			
			Retain Copies of Purchase Documents.  Maintain copies of all the Purchase Applications, checks, sales confirmations, transaction blotter and records it receives from the Company or maintains as the selling agent, as may be required under applicable FINRA rules and regulations. 

		
			   
		

		
			8.    Sales Procedures.  The Company and MP Securities agree to cooperate with each other in carrying out the subscription procedures and selling procedures described in the “Plan of Distribution” section of the Prospectus and the summary attached hereto as Exhibit C.  
		

		
			   
		

		
			9.    Indemnification.   
		

		
			   
		

			
	
			
				 (a)
			

			
	
			
			Indemnification of Managing Broker.  

		
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			(i)    General. Subject to the conditions set forth below the Company agrees to indemnify and hold harmless the MB that participates in the offer and sale of the Notes and each of its respective directors, officers, partners and employees and each person, if any, who controls any such entity (“Controlling Person”) within the meaning of Section 15 of the 1933 Act or Section 20(a) of the 1934 Act, and its counsel, against any and all loss, liability, claim, damage and expense whatsoever (including but not limited to any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, whether arising out of any action between of the MB and the Company or between the MB and any third party or otherwise) to which they or any of them may become subject under the 1933 Act, the 1934 Act or any other foreign, federal, state or local statute, law, rule, regulation or ordinance or at common law or otherwise or under the laws, rules and regulation of foreign countries, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in (i) the Registration Statement, or the Prospectus (as from time to time each may be amended and supplemented); (ii) in any post-effective amendment or amendments or any new registration statement and prospectus relating to any of the Notes; or (iii) any application or other document or written communication (in this Section 9 collectively called “application”) executed by the Company or based upon written information furnished by the Company in any jurisdiction in order to qualify the Notes under the securities laws thereof or filed with the Commission, any foreign or state securities commission or agency; or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, unless such statement or omission was made in reliance upon and in conformity with written information furnished to the Company with respect to MB by or on behalf of such person expressly for use in the Registration Statement, the Prospectus or any amendment or supplement thereof, or in any application, as the case may be, which furnished written information, it is expressly agreed, consists solely of the information. The Company agrees promptly to notify MB of the commencement of any litigation or proceedings against the Company or any of its officers, directors or controlling persons in connection with the issue and sale of the Notes or in connection with the Registration Statement or the Prospectus. 
		

		
			   
		

		
			(ii)    Procedure. If any action is brought against MB in respect of which indemnity may be sought against the Company pursuant to Section 9(a)(i),  MB shall promptly notify the Company in writing of the institution of such action and the Company shall assume the defense of such action, including the employment and fees of counsel (subject to the reasonable approval of the MB) and payment of actual expenses.  MB or controlling person shall have the right to employ its or their own counsel in such case, but the fees and expenses of such counsel shall be at the expense of MB unless: (i) the employment of such counsel at the expense of the Company shall have been authorized in writing by the Company in connection with the defense of such action; (ii) the Company shall not have employed counsel to have charge of the defense of such action; or (iii) counsel to such indemnified party or parties shall have reasonably concluded that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events the reasonable fees and expenses firm of attorneys selected by MB shall be borne by the Company. Notwithstanding anything to the contrary contained herein, if MB shall assume the defense of such action as provided above, the Company shall have the right to approve the terms of any settlement of such action which approval shall not be unreasonably withheld. 
		

		
			   
		

			
	
			
				 (b)
			

			
	
			
			Indemnification of the Company.  MP Securities, agrees to indemnify and hold harmless the Company, its directors, officers, and employees and agents who control the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, and its counsel, against any and all loss, liability, claim, damage and expense described in the foregoing indemnity from the Company to MP Securities, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions made in the Registration Statement, the Prospectus or any amendment or supplement thereto, or in any application, in reliance upon, and in strict conformity with, written information furnished to the Company with respect to MP Securities by or on behalf of MP Securities expressly for use in such Registration Statement, the Prospectus or any amendment or supplement thereto or in any such application, which furnished written information. In case any action shall be brought against the Company or any other person so indemnified based on the Registration Statement, the Prospectus or any amendment or supplement thereto or any application, and in respect of which indemnity may be sought against MP Securities,  MP Securities shall have the rights and duties given to the Company, and the Company and each other person so indemnified shall have the rights and duties given to MP Securities by the provisions of Section 9(a)(ii).  

		
			   
		

			
	
			
				 (c)
			

			
	
			
			Contribution.  

		
			   
		

		
			(i)    Contribution Rights. In order to provide for just and equitable contribution under the 1933 Act in any case in which (i) any person entitled to indemnification under this Section 9 makes claim for indemnification pursuant hereto but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 9 provides for indemnification in such case, or (ii) contribution under the 1933 Act, the 1934 Act or otherwise may be required on the part of any such person in circumstances for which indemnification is provided under this Section 9 but is unavailable, then, and in each such case, the Company and the MB shall contribute to the aggregate losses, liabilities, claims, damages and expenses of the nature contemplated by said indemnity agreement incurred by the Company and the MB, as incurred, in such proportions that MB is responsible for that portion represented by the percentage that the commissions set forth in the Prospectus bears to the offering price of the Notes appearing thereon and the Company is responsible for the balance; provided, that, no person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. Notwithstanding the provisions of this Section 9(c)(i),  MB shall not be required to contribute any amount in excess of the amount by which the total price at which the Notes sold by it and distributed to the public were offered to the public exceeds the amount of any damages that MB has otherwise been required to pay in respect of such losses, liabilities, claims, damages and expenses. For purposes of this Section 9, each director, officer and employee of MB or the Company, as applicable, and each person, if any, who controls MB or the Company, as applicable, within the meaning of Section 15 of the 1933 Act shall have the same rights to contribution as MB or the Company, as applicable. 
		

		
			   
		

		
			(ii)    Contribution Procedure. Within fifteen days after receipt by any party to this Agreement (or its representatives) of notice of the commencement of any action, suit or proceeding, such party will, if a claim for contribution in respect thereof is to be made against another party (“contributing party”), notify the contributing party of the commencement thereof, but the omission to so notify the contributing party will not relieve it from any liability which it may have to any other party other than for contribution hereunder. In case any such action, suit or proceeding is brought against any party, and such party notifies a contributing party or its representatives of the commencement thereof within the aforesaid fifteen days, the contributing party will be entitled to participate therein with the notifying party and any other contributing party similarly notified. Any such contributing party shall not be liable to any party seeking contribution on account of any settlement of any claim, action or proceeding effected by such party seeking contribution on account of any settlement of any claim, action or proceeding effected by such party seeking contribution without the written consent of such contributing party. The contribution provisions contained in this Section 9(c) are intended to supersede, to the extent permitted by law, any right to contribution under the 1933 Act, the 1934 Act or otherwise available. 
		

		
			﻿
		

		
			10. Termination.   
		

		
			   
		

			
	
			
				 (a)
			

			
	
			
			Termination Events.  This Agreement will terminate at the earlier of (i) the time that all of the Notes in the Offering have been sold, or (i) the time that this Agreement is terminated pursuant to Section 10(b) or 10(c) below. 

		
			﻿
		

			
	
			
				 (b)
			

			
	
			
			By MB.  MB may terminate this Agreement:

		
			﻿
		

		
			(i) At any time upon 90 days’ advance written notice to the Company in the event the Company fails to reasonably carry out its duties under this Agreement;
		

		
			﻿
		

		
			(ii) At any time upon written notice to the Company if: (i) a material disruption in the major securities markets occurs; (ii) an outbreak of major hostilities or other national or international calamity occurs; (iii) a banking moratorium is declared by a state or federal authority; (iv) a moratorium in foreign exchange trading by major international banks or persons is declared; (v) a material interruption in the mail service or other means of communication within the United States occurs; (vi) the Company sustains a material or substantial loss by fire, flood, accident hurricane, earthquake, theft, sabotage, or other calamity or malicious act, whether or not such loss is insured against, that, in the opinion of MP Securities, makes it inadvisable to proceed with the Offering; or (vii) a change occurs in the market for the Company’s securities or securities in general or in political, financial, or economic conditions that, in the opinion of MB, makes it inadvisable to proceed with the Offering.
		

		
			﻿
		

			
	
			
				 (c)
			

			
	
			
			By the Company.  The Company shall be entitled to terminate this Agreement upon sixty days’ prior notice in the event that MB (i) fails to reasonably carry out its duties under this Agreement; (ii) commits an act of negligence or intentional wrongdoing when undertaking its duties under this Agreement; or (iii) incurs a material adverse change in its business, operations or financial affairs, which in the opinion of the Company, may adversely affect the success of the Offering; provided, however, in each instance that the Company complies with the provisions of Section 3 of this Agreement. 

		
			  
		

		
			11.    Survival.  The respective indemnities, agreements, representations, warranties and other statements of the Company and MB, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of MB or the Company or any officer or director or controlling person of the Company. 
		

		
			  
		

		
			12.    Notices.  All notices, requests, demands and other communications which are required or permitted to be given under this Agreement shall be given in writing by personal delivery, prepaid nationally recognized overnight express courier service for next business day delivery, United States mail, postage prepaid, registered or certified mail, or facsimile with a hard copy sent within one (1) business day by any of the foregoing means, and addressed as follows: 
		

		
			  
		

		 

		

			2

		

 

		
		

			
					
						 

					
					
						 

				
	
					
						To the Company:

					
					
						Ministry Partners Investment Company, LLC

				
	
					
						 

					
					
						915 West Imperial Hwy, Suite 120

				
	
					
						 

					
					
						Brea, California 92821

				
	
					
						 

					
					
						Attention: Joseph W. Turner, Jr.

					
						President and CEO

				
	
					
						 

					
					
						Phone: 714-784-7133

				
	
					
						 

					
					
						Facsimile: 714-671-5767

				
	
					
						 

					
					
						 

				
	
					
						To the Managing Broker:

					
					
						Ministry Partners Securities, LLC

				
	
					
						 

					
					
						915 West Imperial Hwy, Suite 120

				
	
					
						 

					
					
						Brea, California 92821

				
	
					
						 

					
					
						Attention: R. Michael Lee, 

					
						Chairman of the Board of Managers

				
	
					
						 

					
					
						Phone: 714-784-7165

				
	
					
						 

					
					
						Facsimile: 714-671-5767

				

		
			  
		

		
			or to such other address or to the attention of such other person as shall be designated in writing by either party in a notice sent to the other in accordance with these notice provisions. Any notice, request, demand or other communication shall be deemed given at the time of personal delivery or, in the case of certified or registered mail, three (3) days after deposited in the custody of the United States Postal Service, or in the case of express courier service, as of the date of first attempted delivery at the address provided herein, or, in the case of a facsimile, upon delivery of same as confirmed by receipt showing a valid and successful transmission to the facsimile number shown herein. 
		

		
			﻿
		

		
			13.  Binding Effect.  This Agreement shall be binding upon, and inure solely to the benefit of, MP Securities, the Company and the respective managers, officers, and each person who controls the Company within the meaning of the 1933 Act, and their respective successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement. 
		

		
			   
		

		
			14.  Time is of the Essence.  Time shall be of the essence of this Agreement. 
		

		
			   
		

		
			15.    Entire Agreement.  This Agreement, and any other document referenced herein, constitute the entire understanding of the parties hereto with respect to the subject matter hereof, and no amendment, modification or alteration of the terms hereof shall be binding unless the same be in writing, dated subsequent to the date hereof and duly approved and executed by each of the parties hereto. 
		

		
			   
		

		
			16.    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California. 
		

		
			   
		

		
			17.    Headings. The Section headings herein are for the convenience of the parties only and shall not affect the construction or interpretation of this Agreement. 
		

		
			   
		

		
			18.    Amendments. No amendment or modification of this Agreement shall be effective or binding with respect to a party unless it is in writing and is signed by the party. 
		

		
			   
		

		
			19.    Waiver. The provisions of this Agreement may not be waived with respect to a party unless waived in writing by the party whom the condition is meant to benefit. 
		

		
			   
		

		
			20.    Further Acknowledgment by the Parties. Each of the parties hereto further acknowledges that the provisions of Section 9 hereof fairly allocate the risks in light of the ability of the parties to investigate the Company, its affairs and its business in order to assure that adequate disclosure has been made in the Registration Statement and the Prospectus (and any amendments and supplements to the foregoing), as contemplated by the 1933 Act and the 1934 Act. 
		

		
			   
		

		
			21.    Counterparts.  This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument. 
		

		
			   
		

		
			[SIGNATURE PAGE FOLLOWS] 
		

		

		

		 

		

			3

		

 

		
		

		
			If the foregoing is in accordance with your understanding, please sign and return to us two (2) counterparts hereof, and upon the acceptance hereof by MB, this letter and such acceptance hereof shall constitute a binding agreement between the MB and the Company. 
		

		
			  
		

		
			Very truly yours, 
		

		
			  
		

		
			
		

			
					
						 

					
					
						 

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

				
	
					
						By:

					
					
						 

				
	
					
						Name:

					
					
						 

				
	
					
						Title:

					
					
						 

				

		
			  
		

		
			  
		

		
			  
		

		
			  
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Accepted as of the date hereof: 
		

		
			  
		

		
			MANAGING BROKER-DEALER 
		

		
			﻿
		

			
					
						 MINISTRY PARTNERS SECURITIES, LLC,  a Delaware limited liability company

					
						 

				
	
					
						By:

					
					
						 

				
	
					
						Name:

					
					
						 

				
	
					
						Title:

					
					
						 

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		
			EXHIBIT A
		

		
			﻿
		

		
			COMPENSATION STRUCTURE
		

		
			﻿
		

		
			﻿
		

		
			Selling Commissions, Account Servicing Fees
		

		
			﻿
		

		
			Commencing on the date of the Prospectus, a 1.5% sales commission will be paid to MP Securities on the sale of a 2021 Class A Note.  MP Securities will receive an Account Servicing Fee equal to 1% of the principal balance of the 2021 Class A Note purchased, payable on a monthly basis sold under the Offering.  The Account Servicing Fee will be assessed commencing one year after the purchase of 2021 Class A Note and will terminate when the Note matures.    The Company reserves the right to reduce or waive the Account Servicing Fee at any time or from time to time without the consent of MP Securities.  Payment of the Account Servicing Fee is subject to maximum gross dealer concessions of 5.5% paid as commission or as an Account Servicing Fee on the sale of any 2021 Class A Note sold under this Prospectus.
		

		
			﻿
		

		
			As a result, the maximum sales compensation to be paid to MP Securities as sales commissions from the sale of 2021 Class A Notes prior to the effective date and including any Account Servicing Fees paid on the outstanding balance of a 2021 Class A Note after the date of this Prospectus shall not exceed 5.5% of the principal balance of a 2021 Class A Note purchased, determined on a monthly basis, during the term of such 2021 Class A Note.
		

		
			﻿
		

		
			Payments of the Account Servicing Fee assessed on the principal balance of the 2021 Class A Notes will be made on a monthly basis within thirty (30) days after the close of the preceding month.  MP Securities shall deliver a report to the Company which summarizes the principal balance held for each investor by category and type of Note purchased within thirty (30) days of the close of the preceding month.
		

		
			﻿
		

		
			Processing Fee
		

		
			﻿
		

		
			For each sale of a 2021 Class A Note, the Company will pay a 0.50% processing fee on the purchase of a 2021 Class A Note, payable at the closing of a purchase of a note. The processing fee will be assessed and paid to MP Securities based upon the principal amount of the note purchased. No processing fee will be paid when an investor in a Variable Series Note makes an additional investment to the principal amount of a Variable Series Note. 
		

		
			﻿
		

		
			 
		

		
			EXHIBIT B
		

		
			﻿
		

		
			SALES PROCEDURES FOR THE 2021 CLASS A NOTES OFFERING
		

		
			﻿
		

		
			The Company, the Managing Broker (“MB”) agrees that the following sales procedures will be followed in connection with the purchase of a 2021 Class A Note (“Note”) under the Offering: 
		

		
			  
		

			
					
						﻿

					
					
						1. 

					
					
						 

					
					
						The investor delivers a signed subscription agreement or purchase application, together with a check payable to Ministry Partners Investment Company, LLC.

				

		
			  
		

			
					
						﻿

					
					
						2. 

					
					
						 

					
					
						MB shall be responsible for undertaking its review of the purchase documentation and complying with applicable FINRA suitability and its compliance obligations.

				

		
			  
		

			
					
						﻿

					
					
						3. 

					
					
						 

					
					
						MB shall promptly forward the check and copy of the subscription agreements to the Company after it completes its review of the purchase documentation.

				

		
			  
		

			
					
						﻿

					
					
						4. 

					
					
						 

					
					
						Once the Company receives the funds and original purchase documentation, it will deposit the proceeds into its designated account (the “Notes Proceeds Account”) which will be set up as a separate account to hold and distribute funds from the Offering.

				

		
			  
		

			
					
						﻿

					
					
						5. 

					
					
						 

					
					
						MB shall deliver a confirmation of the purchase transaction to the investor.

				

		
			  
		

			
					
						﻿

					
					
						6. 

					
					
						 

					
					
						The Company will issue the original Note and forward to the investor, with a copy to the MB.

				

		
			  
		

			
					
						﻿

					
					
						7. 

					
					
						 

					
					
						MB shall retain books and records of all investor purchase documentation and related sales documentation for the Offering.

				

		
			  
		

			
					
						﻿

					
					
						8. 

					
					
						 

					
					
						MB will promptly furnish copies of all investor purchase documents, checks and blotter of investor purchases to the Company for the Offering.

				

		
			  
		

			
					
						﻿

					
					
						9. 

					
					
						 

					
					
						When ten (10) days after the close of the preceding month, MB shall deliver a report to the Company which summarizes the principal balance outstanding for each Fixed and Variable Series Note for each investor as of the close of the month.  The report furnished by MB shall include the Account Servicing Fees payable as of the close of the immediately preceding month, together with the calculation of the processing fee due on any sales transaction conducted during the immediately preceding month.  The report will also include the total amount of 2021 Class A Notes sold during the preceding month.

				

		
			  
		

			
					
						﻿

					
					
						10. 

					
					
						 

					
					
						When determining the Account Servicing Fees to be paid to MB, no Account Servicing Fee will be assessed on the outstanding principal balance of a 2021 Class A Note when the aggregate amount of compensation paid to MB, including sales commissions received from the purchase of any Note made under this Prospectus and Account Servicing Fee assessed on such Note after the date of this Prospectus, totals 5.5% of the principal balance of such Note.

				

		
			  
		

			
					
						﻿

					
					
						11. 

					
					
						 

					
					
						On a monthly basis or such date as may be mutually agreed upon by the Company and the MB, the Company will transmit payment of any sales commissions, processing fees  and Account Servicing Fees payable to the MB.

				

		
			 
		

		
			  
		

		
			﻿
		

			
					
						﻿

					
					
						12.  

					
					
						 

					
					
						On each closing date, the Company will transmit funds from the Notes Proceeds Account to the Company’s general operating account.

				

		
			  
		

			
					
						﻿

					
					
						13.  

					
					
						 

					
					
						The Company agrees to grant to the MB reasonable access, including online access to the Notes Proceeds Account and its investor portal relating to sales transactions relating to the Offering, once it becomes operational.

				

		
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			[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
		

		
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			﻿
		

		
			SCHEDULE I 
		

		
			  
		

		
			BLUE SKY STATES  
		

		
			  
		

			
					
						 

					
					
						 

					
					
						State

					
					
						 

					
					
						Offers and Sales 

					
						in State Pursuant to 

					
						Effective Blue Sky Registration

					
					
						 

					
					
						Offers and Sales 

					
						in State Pursuant to 

					
						Applicable Exemption

				
	
					
						1.

					
					
						 

					
					
						Arizona

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						2.

					
					
						 

					
					
						California

					
					
						 

					
					
						$125,000,000

					
					
						 

					
					
						N/A

				
	
					
						3.

					
					
						 

					
					
						Colorado

					
					
						 

					
					
						$25,000,000

					
					
						 

					
					
						N/A

				
	
					
						4.

					
					
						 

					
					
						Florida

					
					
						 

					
					
						$50,000,000

					
					
						 

					
					
						N/A

				
	
					
						5

					
					
						 

					
					
						Georgia

					
					
						 

					
					
						$25,000,000

					
					
						 

					
					
						N/A

				
	
					
						6.

					
					
						 

					
					
						Idaho

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						7.

					
					
						 

					
					
						Illinois

					
					
						 

					
					
						$10,000,000

					
					
						 

					
					
						N/A

				
	
					
						8.

					
					
						 

					
					
						Indiana

					
					
						 

					
					
						$1,000,000

					
					
						 

					
					
						N/A

				
	
					
						9.

					
					
						 

					
					
						Kansas

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						10.

					
					
						 

					
					
						Massachusetts

					
					
						 

					
					
						$125,000,000

					
					
						 

					
					
						N/A

				
	
					
						11.

					
					
						 

					
					
						Minnesota

					
					
						 

					
					
						$10,000,000

					
					
						 

					
					
						N/A

				
	
					
						12.

					
					
						 

					
					
						Missouri

					
					
						 

					
					
						$125,000,000

					
					
						 

					
					
						N/A

				
	
					
						13.

					
					
						 

					
					
						Nevada

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						14.

					
					
						 

					
					
						New York

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						15.

					
					
						 

					
					
						Ohio

					
					
						 

					
					
						$25,000,000

					
					
						 

					
					
						N/A

				
	
					
						16.

					
					
						 

					
					
						Oklahoma

					
					
						 

					
					
						$10,000,000

					
					
						 

					
					
						N/A

				
	
					
						17.

					
					
						 

					
					
						Oregon

					
					
						 

					
					
						$125,000,000

					
					
						 

					
					
						N/A

				
	
					
						18.

					
					
						 

					
					
						Pennsylvania

					
					
						 

					
					
						$9,999,999

					
					
						 

					
					
						N/A

				
	
					
						19.

					
					
						 

					
					
						Rhode Island

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						20

					
					
						 

					
					
						South Carolina

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						21.

					
					
						 

					
					
						Texas

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						22

					
					
						 

					
					
						Virginia

					
					
						 

					
					
						$125,000,000

					
					
						 

					
					
						N/A

				
	
					
						23.

					
					
						 

					
					
						Washington

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						24.

					
					
						 

					
					
						West Virginia

					
					
						 

					
					
						$125,000,000

					
					
						 

					
					
						N/A

				

		
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			B-4

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