Document:

Amended and Restated Managing Broker Dealer Agreement

		

			 

		

		
			MINISTRY PARTNERS INVESTMENT COMPANY, LLC 
		

		
			  
		

		
			MANAGING BROKER AGREEMENT 
		

		
			   
		

		
			   
		

		
			____________________, 2018 
		

		
			   
		

		
			   
		

		
			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 $90,000,000 of its Class 1A 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 December 8, 2017, 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 __________, 2018 and is effective 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, 2020, 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: 
		

		
			 
		

		

		

		 

		

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			(a)Sales Commission.  When a Class 1A 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 Class 1A 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 Class 1A 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 Class 1A Note, payable at the closing of such purchase. No processing fee will be paid on additional investments made on a Variable Series Class 1A 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 $5,737,496. 
		

		
			  
		

		
			Commissions and/or Account Servicing Fees of $4,950,000 (as provided in (a) above) pursuant to Rule (b)(4)(C)(ii)(a); 
		

		
			Non-transaction based compensation of $299,799 allocated to FINRA members pursuant to Rules (b)(4)(C)(ii)(c) and (b)(4)(D); 
		

		
			Dual-employee non-transaction-based compensation of $478,697 allocated to dual employees pursuant to Rule (b)(4)(C)(i); 
		

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

		

		

		 

		

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		For an estimated maximum total of $5,737,496 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; 
		

		
			   
		

		

		

		 

		

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		(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: 
		

		
			   
		

		

		

		 

		

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		(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 
		

		 

		

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		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 
		

		 

		

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		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; 
		

		
			   
		

		
			(f)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; 
		

		
			   
		

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

		
			   
		

		
			(h)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 
		

		 

		

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		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 
		

		 

		

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		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 
		

		 

		

			10

		

		

			 

		

 

		

			 

		

		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: 
		

		
			  
		

		

		

		 

		

			11

		

		

			 

		

 

		

			 

		

		
		

		 

		

			12

		

		

			 

		

 

		

			 

		

		
		

			
					
						 

					
					
						 

				
	
					
						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 
		

		 

		

			13

		

		

			 

		

 

		

			 

		

		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] 
		

		

		

		 

		

			14

		

		

			 

		

 

		

			 

		

		
		

		
			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:

					
					
						 

				

		
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			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			15

		

		

			 

		

 

		

			 

		

		EXHIBIT A
		

		
			﻿
		

		
			COMPENSATION STRUCTURE
		

		
			﻿
		

		
			﻿
		

		
			Selling Commissions, Account Servicing Fees
		

		
			﻿
		

		
			Commencing on the date of the Prospectus, a 1% sales commission will be paid to MP Securities on the sale of a Class 1A Note.  MP Securities will receive an Account Servicing Fee equal to 1% of the principal balance of the Class 1A 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 Class 1A 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 Class 1A 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 Class 1A Notes prior to the effective date and including any Account Servicing Fees paid on the outstanding balance of a Class 1A Note after the date of this Prospectus shall not exceed 5.5% of the principal balance of a Class 1A Note purchased, determined on a monthly basis, during the term of such Class 1A Note.
		

		
			﻿
		

		
			Payments of the Account Servicing Fee assessed on the principal balance of the Class 1A 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.
		

		
			﻿
		

		
			Managing Broker Processing Fee
		

		
			﻿
		

		
			The Company will also pay a .50% processing fee on the purchase of a Class 1A Note commencing with the effective date of the Prospectus.  The processing fee is assessed on the initial purchase of the Note.  No processing fee will be assessed on any withdrawals or requests for liquidation of a Class 1A Note.  In the event an investor increases the amount invested in a Variable Series Note, no additional processing fee will be paid to MP Securities.
		

		
			﻿
		

		
			Processing Fee
		

		
			﻿
		

		
			For each sale of a Class 1A Note, the Company will pay a 0.50% processing fee on the purchase of a Class 1A 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. 
		

		
			﻿
		

		
			 
		

		

		

		 

		

			A-1

		

		

			 

		

 

		

			 

		

		EXHIBIT B
		

		
			﻿
		

		
			SALES PROCEDURES FOR THE CLASS 1A NOTES OFFERING
		

		
			﻿
		

		
			The Company, the Managing Broker (“MB”) agrees that the following sales procedures will be followed in connection with the purchase of a Class 1A 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 Class 1A 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 Class 1A 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.

				

		
			 
		

		
			  
		

		
			﻿
		

		 

		

			B-1

		

		

			 

		

 

		

			 

		

			
					
						﻿

					
					
						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] 
		

		
			﻿
		

		
			 
		

		

		

		 

		

			B-2

		

		

			 

		

 

		

			 

		

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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.

					
					
						 

					
					
						 California

					
					
						 

					
					
						$90,000,000

					
					
						 

					
					
						N/A

				
	
					
						2.

					
					
						 

					
					
						 Colorado

					
					
						 

					
					
						$90,000,000

					
					
						 

					
					
						N/A

				
	
					
						3.

					
					
						 

					
					
						 Florida

					
					
						 

					
					
						$90,000,000

					
					
						 

					
					
						N/A

				
	
					
						4.

					
					
						 

					
					
						 Georgia

					
					
						 

					
					
						$90,000,000

					
					
						 

					
					
						N/A

				
	
					
						5.

					
					
						 

					
					
						 Idaho

					
					
						 

					
					
						$90,000,000

					
					
						 

					
					
						N/A

				
	
					
						6.

					
					
						 

					
					
						 Illinois

					
					
						 

					
					
						$1,000,000

					
					
						 

					
					
						N/A

				
	
					
						7.

					
					
						 

					
					
						 Indiana

					
					
						 

					
					
						$1,000,000

					
					
						 

					
					
						N/A

				
	
					
						8.

					
					
						 

					
					
						 Michigan

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						9.

					
					
						 

					
					
						 Minnesota

					
					
						 

					
					
						$90,000,000

					
					
						 

					
					
						N/A

				
	
					
						10.

					
					
						 

					
					
						Nevada

					
					
						 

					
					
						$350,000

					
					
						 

					
					
						N/A

				
	
					
						11.

					
					
						 

					
					
						Ohio

					
					
						 

					
					
						$10,000,000

					
					
						 

					
					
						N/A

				
	
					
						12.

					
					
						 

					
					
						Oregon

					
					
						 

					
					
						$90,000,000

					
					
						 

					
					
						N/A

				
	
					
						13.

					
					
						 

					
					
						Pennsylvania

					
					
						 

					
					
						$9,999,999

					
					
						 

					
					
						N/A

				
	
					
						14.

					
					
						 

					
					
						Rhode Island

					
					
						 

					
					
						$1,000,000

					
					
						 

					
					
						N/A

				
	
					
						15.

					
					
						 

					
					
						South Carolina

					
					
						 

					
					
						$5,000,000

					
					
						 

					
					
						N/A

				
	
					
						16.

					
					
						 

					
					
						Tennessee

					
					
						 

					
					
						$1,000,000

					
					
						 

					
					
						N/A

				
	
					
						17.

					
					
						 

					
					
						West Virginia

					
					
						 

					
					
						$1,000,000

					
					
						 

					
					
						N/A

				
	
					
						18.

					
					
						 

					
					
						Wisconsin

					
					
						 

					
					
						$90,000,000

					
					
						 

					
					
						N/A

				

		
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			I-1Administrative Services Agreement

		

			 

		

		
			ADMINISTRATIVE SERVICES AGREEMENT
		

		
			﻿
		

		
			THIS AGREEMENT is made this 30th day of January, 2018 by and between Ministry Partners Investment Company, LLC, (“MPIC”) and Ministry Partners Securities, LLC, (“MP Securities”). For purposes of this Agreement, MPIC and MP Securities shall hereinafter and collectively be referred to as the “Parties”.
		

		
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			Recitals
		

		
			﻿
		

			
	
			
				 A.
			MP Securities was formed and organized as a Delaware limited liability company on April 26, 2010 for the purpose of  launching a de novo broker dealer firm that will be registered as a broker dealer with the U.S. Securities and Exchange Commission (“SEC”) and seek membership with the Financial Institutions Regulatory Authority (“FINRA”).

		
			﻿
		

			
	
			
				 B.
			MP Securities has requested that MPIC provide certain administrative services upon such terms and conditions as provided for in this Agreement and required by SEC Rules 15c3-1, 17a-3, 17a-4 and 17a-5.

		
			﻿
		

			
	
			
				 C.
			On July 11, 2003, the SEC Division of Market Regulation (“DMR”) issued a letter (the “Letter”) concerning the application of the SEC’s financial responsibility and record keeping rules under SEC rules 15c3-1, 17a-3, 17a-4 and 17a-5 (collectively, the “Financial Responsibility Rules”) regarding expense sharing arrangements between broker dealers and third parties, including parent and affiliate companies.  The Letter addresses situations in which another party has agreed to pay expenses related to the business of the broker dealer.  The Letter’s requirements became effective when issued and the National Association of Securities Dealers (“NASD”) further addressed these issues in Notice to Members 03-63, dated October, 2003.  The purpose of this Agreement is to clarify and document the Parties’ expense sharing arrangement consistent with those requirements as set forth in the Letter and the NASD Notice to Members.

			
	
			
				 D.
			MPIC has requested that MP Securities accept responsibility for undertaking certain administrative and ministerial duties related to handling the conduct of its investor note program and the parties hereto wish to memorialize the terms of this arrangement.

		
			﻿
		

		
			NOW THEREFORE, in consideration of the mutual covenants, terms, and conditions and other good and valuable consideration set forth below, the Parties agree as follows:
		

		
			﻿
		

			
	
			
				 1.
			Term of Agreement.  Unless sooner terminated as provided in Section 13 below, the term of this Agreement shall commence effective as of January __, 2018 and shall continue for successive one-year periods unless sooner terminated by mutual agreement.  This Agreement shall be automatically renewed for one-year periods unless either party provides written notice to the other party at least three months prior to the end of the term or the termination date of any renewal term thereafter.

		
			﻿
		

			
	
			
				 2.
			Responsibilities of MPIC.  MPIC will provide administrative services as listed on the attached Exhibit “A”, as may be supplemented from time to time by MPIC or at the request of MP Securities.  If additions or deletions are made to Exhibit “A” during the term of this Agreement, or during any subsequent renewal term, MP Securities and MPIC shall memorialize such changes on an amended Exhibit “A”, and both Parties shall forthwith sign and date such 
		

		 

		

			1

		

 

		

			 

		

			revised Exhibit “A” and then attach it to this Agreement. Subject to the terms and conditions of this Agreement, MPIC reserves the right to adjust the amounts on Exhibit “A” with respect to such additions and deletions during the term hereof.  

		
			﻿
		

			
	
			
				 3.
			Payroll and Personnel Services.  MPIC will assist MP Securities in handling its payroll reporting, processing and handling of employment related matters through its arrangement with Administaff Services, LP (“Administaff”).  All MP Securities employees will be treated as leased employees pursuant to MPIC’s Agreement with Administaff.  MP Securities will provide all training, employment and administrative manuals for its employees and will handle all employment related issues for the broker dealer firm.

		
			﻿
		

			
	
			
				 4.
			Leased Offices.  MPIC agrees to provide 495 square feet of office and meeting room space to MP Securities at its corporate offices in Brea, California, as more particularly described in Exhibit A hereto. 

		
			﻿
		

			
	
			
				 5.
			MP Securities Obligations.  MP Securities shall pay MPIC for such services in the manner described in Section 6 below and in such amounts as described on the attached Exhibit “A”.  Notwithstanding anything in this Agreement to the contrary, MP Securities shall be responsible for and record on its books and records the following expenses:

		
			﻿
		

			
	
			
				 a.
			

			
	
			
			FINRA registration, assessment and member fees;

		
			﻿
		

			
	
			
				 b.
			

			
	
			
			filing and reporting fees for the registered principals and registered representatives of the broker dealer firm;

		
			﻿
		

			
	
			
				 c.
			

			
	
			
			audit, legal and compliance fees incurred for professional services;

		
			﻿
		

			
	
			
				 d.
			

			
	
			
			fidelity bond and insurance premiums for the broker dealer firm;

		
			﻿
		

			
	
			
				 e.
			

			
	
			
			business licenses and taxes;

		
			﻿
		

			
	
			
				 f.
			

			
	
			
			internet service, information technology services, maintenance and communications equipment;

		
			﻿
		

			
	
			
				 g.
			

			
	
			
			utilities for its office;

		
			﻿
		

			
	
			
				 h.
			

			
	
			
			salaries, wages and employment costs for its support staff;

		
			﻿
		

			
	
			
				 i.
			

			
	
			
			securities commissions paid to its registered representatives and principals; and

		
			﻿
		

			
	
			
				 j.
			

			
	
			
			any costs, judgments, payments for claims or arbitration awards rendered against the broker dealer firm.

		
			﻿
		

		
			MPIC has further agreed to pay for certain management and overhead expenses related to the operation of MP Securities under reasonable allocation procedures applied consistently and will not seek or request reimbursement from MP Securities for such expenses.  For purposes of this 
		

		 

		

			2

		

 

		

			 

		

		Agreement, the allocation of such expenses is more particularly described in Exhibit “A” hereto, as supplemented from time to time.
		

		
			﻿
		

		
			﻿
		

			
	
			
				 6.
			Payment for Services.    

		
			﻿
		

			
	
			
				 a.
			

			
	
			
			Services Rendered.  During the term of this Agreement, MP Securities agrees to deliver payment for such services or authorize the release of such funds to pay for services rendered by MPIC under this Agreement within ten (10) days of the invoice date. MPIC reserves the right to terminate this Agreement at any time if full payment is not made when due.  Should MP Securities require additional administrative services from MPIC that are not included in this Agreement, the fee for any such additional services shall be negotiated and paid separately.

		
			﻿
		

			
	
			
				 b.
			

			
	
			
			Fee Adjustment.  The fees for services provided by MPIC are subject to adjustment by MPIC based upon changes in local, state, and federal laws, changes in insurance requirements or costs, or changes in costs incurred by MPIC in providing such services under this Agreement.  MPIC agrees to provide MP Securities with at least a thirty (30) day advance notice of a fee adjustment.  Within thirty (30) days of the effectiveness of a fee increase, MP Securities shall be entitled to terminate this Agreement upon written notice to MPIC, such termination to be effective thirty (30) days from the date of such termination notice.

		
			﻿
		

			
	
			
				 c.
			

			
	
			
			Investor Relations Related Duties.  MP Securities has agreed to provide ministerial, compliance, marketing, operational and investor relations related services regarding MPIC’s investor note program, as more particularly described in Exhibit “A” hereto, and administer MPIC’s transition to a flat fee compensation model for the MPIC investor note program.  In exchange for providing those services, MPIC will compensate MP Securities with a fixed fee not to exceed $250,000 for the year ended December 31, 2018.  MP Securities will be responsible for all out of pocket expenses incurred for travel, marketing and information materials and related expenses incurred when conducting MPIC’s ministerial, compliance and administrative duties for MPIC’s investor note program.  MPIC will make payment to MP Securities for the investor notes administrative fee in quarterly payments within ten (10) days after each quarterly period ending March 31, June 30, September 30 and December 31 during the term of the Agreement.  MP Securities and MPIC reserve the right to adjust the investor note administrative fee at any time upon thirty (30) days written notice ; provided, however, that the fee does not exceed the sum of $250,000 during the term of the Agreement. 

		
			﻿
		

			
	
			
				 d.
			

			
	
			
			Change in Scope of Services.  If during the term of this Agreement, MP Securities’ need for administrative services hereunder is increased or reduced by a significant change in the scope of MP Securities’ business or operations, as a result of dispositions or otherwise, MP Securities may request, and MPIC 
		

		 

		

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			may provide, an appropriate change in the level of services provided hereunder and such parties shall in good faith redetermine the fee payable for such services for the remainder of the term of this Agreement on the basis of the change in level of such administrative services.

		
			﻿
		

			
	
			
				 7.
			Other Expenses.  From time to time, MPIC may incur other expenses on behalf of MP Securities, such as telephone costs, filing fees or other administrative costs.  MPIC shall itemize its costs incurred on MP Securities’ behalf and submit reasonable documentation for any expenditures made.  Purchases and expenditures incurred by MPIC on behalf of MP Securities shall be billed to MP Securities at MPIC’s cost with no markup.  MP Securities shall reimburse MPIC in the manner described in Section 6 above.  

		
			﻿
		

			
	
			
				 8.
			Intercompany Transactions.  If requested by MP Securities’ Chief Financial Officer or President, MPIC may advance from time to time cash to MP Securities or make payments to third parties on behalf of MP Securities.  MP Securities shall have discretionary authority and control over all intercompany advances made by MPIC on its behalf.  Within fifteen (15) days following the end of each calendar month, MPIC shall provide MP Securities with a list of all intercompany advances made on MP Securities’ behalf.  Unless otherwise objected to within ten (10) days after receipt of such report, the list of intercompany advances shall become final.  MP Securities agrees to reimburse MPIC for such intercompany advances on a monthly basis.  MPIC shall maintain separate and accurate records of all intercompany advances made on behalf of MP Securities and all amounts paid by MPIC with respect thereto.  Such records shall be made available to MP Securities, FINRA, the SEC or any state regulatory authority for any lawful purpose.  Such records shall be the joint property of MPIC and MP Securities and shall be maintained in accordance with applicable SEC, FINRA and state regulatory standards for a broker dealer firm.

		
			﻿
		

			
	
			
				 9.
			Oversight of Services.  Any services provided by MPIC or its vendors, contractors or other third parties on behalf of MP Securities pursuant to this Agreement shall at all times be subject to the supervision and authority of MP Securities, which shall retain discretion and authority to direct and control any aspect of MPIC’s provision of, or arrangement for such services.  MP Securities shall implement a system for continuous monitoring and oversight to ensure that MPIC’s provision of services pursuant to this Agreement complies with applicable law, the provisions of U.S. law that apply to broker dealer firms registered under Section 15 of the Securities Exchange Act of 1934 (the “Exchange Act”) and regulations imposed on the entity as a member of FINRA.  Notwithstanding anything in this Agreement to the contrary, all activities, selling efforts and underwriting services which are required to be performed by a firm registered under Section 15 of the Exchange Act shall be performed by MP Securities under the provisions of this Agreement.

		
			﻿
		

			
	
			
				 10.
			Control Retained by MP Securities.  During the term of this Agreement, MP Securities shall retain and exercise ultimate control over the assets and operations of its activities and operations as a broker dealer firm.  The Board of Managers of MP Securities shall be and shall remain ultimately responsible for the development of, approval and implementation of policies and procedures of the broker dealer firm.  MP Securities shall supervise all professional, underwriting, selling, marketing and operational activities of the broker dealer firm.  Unless otherwise authorized by the MPIC Board of Directors or its Operating Agreement, MP Securities shall limit its activities to those described in its Business Plan as submitted to FINRA as part of 
		

		 

		

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			its request to be granted membership as a registered broker dealer firm.   By entering into this Agreement, MP Securities has not delegated any powers, duties and responsibilities required to be performed under any statute, code, regulatory notice or authority promulgated, applied or required by any governmental authority, agency, regulatory institution or court of competent jurisdiction which governs the operations of the broker dealer firm.

		
			﻿
		

			
	
			
				 11.
			Confidentiality.  MPIC and MP Securities agree to maintain as strictly confidential all records and documents each may receive concerning the other’s business and affairs and the other’s customers and members (collectively “Confidential Information”) in strict confidence and shall not disclose the other’s Confidential Information to third parties except (a) as necessary in performing its duties hereunder, or (b) as required by law, court order or in response to an investigation or request of a regulatory body having jurisdiction over a party, or (c) with the advance consent of the party owning the Confidential Information.  Confidential Information shall include, but not be limited to, notebooks, books, memoranda, records, journals, lists, reports, files, correspondence, management information, reviews, analysis, research, business plans, budgets, profit and loss statements, whether in paper form, electronic form or copies thereof.  The obligations under this Section 11 shall not apply to information that (a) is in or enters the public domain without breach of this Agreement, or (b) a party receives from a third party without restriction on disclosure and without breach of a non-disclosure obligation, (c) which the party, not claiming prior ownership, develops independently and can prove same with written evidence, or (d) that is requested pursuant to a request issued by a court or governmental agency or regulatory authority or required to be disclosed under applicable law, provided that prior written notice of such obligation is provided to the other party and an opportunity to oppose such disclosure or obtain a protective order is furnished to the other party.  This Confidentiality provision shall survive termination of this Agreement.

		
			﻿
		

			
	
			
				 12.
			Relationship of Parties.  It is the Parties’ intent that MPIC shall act solely as an independent contractor.  Nothing in this Agreement shall be construed to create a partnership, joint venture, or principal agency relationship between MP Securities and MPIC.

		
			﻿
		

			
	
			
				 13.
			Termination.  In addition to termination in accordance with Section 1. above, this Agreement may be terminated as follows:

		
			﻿
		

			
	
			
				 a.
			

			
	
			
			By MPIC and MP Securities mutually agreeing to terminate this Agreement prior to expiration of the term.

		
			﻿
		

			
	
			
				 b.
			

			
	
			
			At the nondefaulting party’s option, upon the occurrence of a default, as defined in Section 14 below, by the nondefaulting party giving written notice to the defaulting party specifying such default.  Upon receipt of such notice, the defaulting party shall have thirty (30) days to cure or begin in good faith to cure the default and if the default is cured, or good faith efforts are begun to cure the default, then this Agreement shall continue as if no notice was sent; otherwise, the termination date shall be thirty (30) days from the date the defaulting party receives notice from the nondefaulting party of termination due to a default.

		
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			Except where termination is the result of a default by MP Securities, in which case MP Securities shall be liable for all amounts owing by it under this Agreement through the expiration 
		

		 

		

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		of the term, any amounts payable to MPIC hereunder shall be prorated through the termination date of this Agreement.
		

		
			﻿
		

			
	
			
				 14.
			

			
	
			
			Default.

		
			﻿
		

			
	
			
				 a.
			

			
	
			
			Termination by Either Party.  Subject to Section 13, either party may at any time immediately terminate this Agreement in the event of a material breach by the other party of the Agreement.  The term “material breach”, as used herein, includes, but is not limited to, the following: (1) failure to comply with any federal, state, or local law, (2) failure to comply fully with a directive or order from a governmental agency or regulatory authority, (3) breach of any material warranty or representation made herein, or (4) the failure to comply with the terms and obligations under this Agreement.

		
			﻿
		

			
	
			
				 b.
			

			
	
			
			Termination by MP Securities.  This Agreement may be terminated at any time by MP Securities in the event of any federal, state, or local legislation, regulatory action, insurance carrier action, law enforcement, or judicial decision, which, in the sole discretion of MP Securities, adversely affects its interests under this Agreement.

		
			﻿
		

			
	
			
				 c.
			

			
	
			
			Termination for Non-Payment.  If MP Securities fails to pay any amount due under this Agreement in full when due, or fails to pay any other fees or amounts due hereunder in full, MPIC may terminate this Agreement by providing written notice pursuant to Section 13 above.

		
			﻿
		

			
	
			
				 d.
			

			
	
			
			Effect of Termination.  Termination of this Agreement shall not affect the continuation of any outstanding obligation or liability incurred by either party during the term of this Agreement, including payment to MPIC.

		
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				 15.
			Limited Liability and Indemnity.  With regard to the services to be performed by MPIC, neither MPIC nor its employees or agents shall be liable to MP Securities, or to anyone who may claim any right due to his/her relationship with MP Securities, for any acts or omissions in the performance of said services except when said acts or omissions are due to willful misconduct or gross negligence of MPIC or its employees or agents.  MP Securities shall indemnify, defend and hold MPIC, its employees and agents free and harmless from any obligations, costs, claims, judgments, attorneys’ fees and all other damages and expenses (but not lost profits, consequential damages, goodwill, business interruption, or loss of business) arising from (a) the services performed pursuant to this Agreement or in any way connected with said services performed by MP Securities, or (b) the actions of any vendor or contractor engaged by MP Securities under this Agreement, or (c) MP Securities’ breach of any provision of this Agreement, except when same results from willful misconduct of MPIC and MPIC is adjudged guilty of willful misconduct by a competent court or arbitrator having jurisdiction over the matter.  This limited liability and indemnity provision shall survive termination of this Agreement.

		
			﻿
		

			
	
			
				 16.
			Notices.  All notices and other communications hereunder shall be in writing.  Notices shall be deemed duly given, when delivered personally or five (5) days after being sent through the U.S. Postal Service, postage paid, first-class.  If sent through any reputable one-day, 
		

		 

		

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			two-day, or three-day courier, such as Federal Express or DHL, fees prepaid, delivery shall be at the time confirmed.  Notices shall be sent to the addresses of the Parties set forth next to their respective signatures hereto, or to such other addresses as may be specified from time to time by notice in writing to the other parties hereto.

		
			﻿
		

			
	
			
				 17.
			Further Assurances.  The Parties agree to execute and deliver such further documents and instruments and do such further acts and things as may reasonably be necessary to carry out the purposes and intent of this Agreement.

		
			﻿
		

			
	
			
				 18.
			Duties on Termination.  In the event of termination of this Agreement as provided herein, each party agrees to deliver promptly to the other party all notebooks, documents, memoranda, reports, files, correspondence and other property belonging to the other party relating to its business which are in the party’s possession or under its control.

		
			﻿
		

			
	
			
				 19.
			Intellectual Property.  Any and all inventions, discoveries, improvements, copyrightable works and creations (hereafter referred to as “Intellectual Property”) which MP Securities has previously, solely or jointly, conceived or made or may conceive or make during the period of this Agreement shall be the sole and exclusive property of MP Securities.  MP Securities shall have sole and exclusive responsibility for protecting its rights to such Intellectual Property and to all of its other assets, and MPIC shall have no responsibility with regard to same.

		
			﻿
		

			
	
			
				 20.
			Books and Records.  Each party hereto shall keep full and adequate books of account and records reflecting all transactions and matters covered by this Agreement, in accordance with its normal accounting practices and principles.  The books of account and all other records relating to or reflecting transactions or matters covered by this Agreement maintained by one party shall be made available to the other party and its accountants and other representatives at all reasonable times for inspection and copying, and each party shall cooperate fully with the other in explaining any calculations or charges under this Agreement.  In order to comply with SEC, FINRA and other regulatory rules, the Parties agree to keep and record the following:

		
			﻿
		

		
			a.All executed expense sharing agreements and amendments thereto, including required notifications to FINRA, and all related support documents provided by MPIC;
		

		
			﻿
		

		
			b.A separate schedule of expenses paid by MPIC that are not included in the financial reports filed by MP Securities with FINRA or SEC;
		

		
			﻿
		

		
			c.MPIC will provide MP Securities with all expense allocation methodologies used in allocation support staff salaries, misc. overhead, etc;
		

		
			﻿
		

		
			d.MPIC will provide MP Securities with a record of each expense paid by the MPIC on behalf of MP Securities;
		

		
			﻿
		

		
			e.MP Securities will invoice MPIC for all expense allocations under this agreement;
		

		
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		f.MP Securities will reduce its net capital and increase its aggregate indebtedness for any of its related expenses that MPIC has agreed to pay but remain unpaid by MPIC, unless otherwise permitted under the Rule; and
		

		
			﻿
		

		
			g.All receivables from MPIC will be treated as non allowable by MP Securities, until paid.
		

		
			﻿
		

		
			﻿
		

			
	
			
				 21.
			Compliance with SEC and FINRA Rules.  The Parties hereto acknowledge, agree and intend that this Agreement comply in all respects with the Letter, FINRA guidelines for broker dealer firms and the SEC Financial Reporting Rules.  To that end, MPIC covenants and agrees that:

		
			﻿
		

			
	
			
				 a.
			

			
	
			
			it will not seek reimbursement for expenses and payments it makes on behalf of MP Securities, unless otherwise billed and accounted for under the terms of this Agreement;

		
			﻿
		

			
	
			
				 b.
			

			
	
			
			it files periodic and annual reports with the SEC on Forms 10-Q, 10-K and 8-K pursuant to the Exchange Act and that MP Securities shall be entitled to rely on such filings in determining whether MPIC has adequate resources apart from MP Securities to undertake its responsibilities under this Agreement;

		
			﻿
		

			
	
			
				 c.
			

			
	
			
			on an annual basis, MP Securities shall be entitled to confirm that MPIC has adequate independent financial resources to the pay the costs it will incur pursuant to the terms of this Agreement; 

		
			﻿
		

			
	
			
				 d.
			

			
	
			
			it will provide access to its books and records to MP Securities, the SEC, FINRA and any other regulatory authorities for the purpose of ensuring compliance with the terms of this Agreement, the Letter, the SEC Financial Responsibility Rules and FINRA rules for broker dealer firms; and

		
			﻿
		

			
	
			
				 e.
			

			
	
			
			acknowledge that SEC rules require broker dealer firms to notify its designated examining authority (“DEA”) when it has entered into a written expense sharing agreement, provide a copy of such agreement to the DEA and notify the DEA if future amendments are made to the Agreement.

		
			﻿
		

			
	
			
				 22.
			Subcontracting.  The Parties expressly agree that their respective obligations under this Agreement may be subcontracted to third parties with appropriate expertise and experience to undertake the particular obligations to be subcontracted.  The Parties agree that performance of any obligation under this Agreement by a subcontractor, or any subcontractor of a subcontractor, shall be subject to all terms and conditions of this Agreement, including without limitation all legal and regulatory requirements, performance standards and reporting responsibilities.  The Parties agree to develop, implement, and conduct appropriate oversight procedures to monitor the performance by any subcontractor of any services under this Agreement.  The retention of a subcontractor does not relieve a party from any obligation under this Agreement.  Any party who retains a subcontractor for the performance of any duty under 
		

		 

		

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			this Agreement shall remain liable to the party to whom the duty is owed for any breach, failure of performance, or inadequate performance by the subcontractor retained.

		
			﻿
		

			
	
			
				 23.
			Entire Agreement of the Parties/Modifications.  This Agreement contains all of the covenants and agreements between the Parties with respect to the rendering of such services in any manner whatsoever.  Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement or which modifies or amends this Agreement will be effective unless it is in writing signed by the party to be charged.

		
			﻿
		

			
	
			
				 24.
			Waiver.  Any party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provisions or prevent that party thereafter from enforcing such provision or any other provision of this Agreement.

		
			﻿
		

			
	
			
				 25.
			Severable Provisions.  If any portion of this Agreement shall be held invalid or inoperative, then so far as reasonable and possible the remainder of this Agreement shall be considered valid and operative and effect shall be given to the intent manifested by the portion held invalid or inoperative.  The Parties authorize any modifications necessary to those provisions, or portions of provisions, held invalid or inoperative so that effect can be given to the Parties’ intent.

		
			﻿
		

			
	
			
				 26.
			Governing Law.  This Agreement shall, in all respects, be governed by and construed in accordance with the internal laws of the State of California without regard to the conflict of law principles thereof.

		
			﻿
		

			
	
			
				 27.
			Assignment.  This Agreement and the respective rights and obligations hereunder may not be assigned by either party hereto without the express written consent of the other party, expect for an assignment by MP Securities or MPIC to any successor to all or a substantial portion of the business of MP Securities or MPIC.  This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors, legal representatives and permitted assigns.

		
			﻿
		

			
	
			
				 28.
			References.  All references made to this Agreement are intended and shall be deemed to mean this Agreement, inclusive of and together with all other agreements, documents, schedules and exhibits appended hereto, all of which are deemed hereby to be fully incorporated herein by reference.

		
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				 29.
			Attorneys’ Fees.  Should an action be commenced by either party to interpret or enforce the terms of this Agreement or to collect any amounts owning under this Agreement, the prevailing party in such action shall be entitled to receive its reasonable attorneys’ fees and costs, in addition to such other relief that may be granted.

		
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			IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth above.
		

		
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						“MP SECURITIES”

					
					
						“MPIC”

				
	
					
						Ministry Partners Securities, LLC

					
					
						Ministry Partners Investment Company, LLC

				
	
					
						915 West Imperial Highway, Suite 120

					
					
						915 West Imperial Highway, Suite 120

				
	
					
						Brea, California  92821

					
						 

					
						 

					
					
						Brea, California  92821

				
	
					
						By:_/s/ R. Michael Lee_________________

					
					
						By:_/s/Joseph W. Turner_______________

				
	
					
						Name: R. Michael Lee

					
					
						Name:  Joseph W. Turner

				
	
					
						Title:  Chairman of the Board of Managers

					
					
						Title:  President and CEO

				

		
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			EXHIBIT A
		

		
			Description of Services Provided
		

		
			﻿
		

			
					
						Item

					
					
						Fee or Pricing Arrangements

				

		
			﻿
		

			
					
						Accounting, Finance 

					
						 

			
				 ·
			

		Accounting and finance reporting
					
						 

			
				 ·
			

		MPIC shall provide access to its core system processing services provided by Fiserv, including the maintenance of accounting records, processing of accounts payable, production of periodic financial reports and coordination of audit and financial reporting systems, providing reports and returns for IRS purposes
					
						 

					
					
						 

					
						Allocation of Expenses are based on detailed billing provided by 3rd Parties when possible, otherwise as listed below 

				
	
					
						Computer and Data Management 

					
						 

			
				 ·
			

		MPIC will also make available to MP Securities its customer software support systems and software and network solutions provided by the following providers and allocated as follows:  
					
						 

			
				 o
			

		Prologue 

			
				 o
			

		ProNet 

			
				 o
			

		Other shared software programs
					
						 

			
				 ·
			

		MPIC also agrees to provide MP Securities with management and information systems, computer and office equipment use in maintaining administrative data for the conduct of MP Securities’ operations as a broker dealer firm
					
						 

					
						 

					
					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 15%

					
						 15%

					
						Based upon actual usage

					
						 

					
						Charges for services provided to MPS by any service provider will be allocated on cost of services provided

				
	
					
						Salaries and Employee Costs

					
						 

			
				 ·
			

		Salaries for management, support staff, including payroll taxes, health insurance and benefits including Worker’s Compensation.
					
					
						 

					
						Allocation based on actual expenses at the following %’s:

					
						 

					
						President/CEO            20%

					
						CFO/Finance               25%

					
						Sales Support MGR    80%

					
						Staff Acct/OPS           10%

				

		 

		

			11

		

 

		

			 

		

			
					
						Office Rent (Brea)

					
					
						10% (Based on actual space utilized)

					
						 

					
						 

					
						 

				
	
					
						Insurance

					
						 

			
				 ·
			

		Officers and directors liability insurance
					
						 

			
				 ·
			

		General liability
					
						 

			
				 ·
			

		Professional Liability
					
						 

					
						 

					
					
						 

					
						 

					
						Based on actual expenses

					
						 

				
	
					
						Travel Expenses

					
					
						Based on actual expenses

				
	
					
						Office Equipment

					
						 

			
				 ·
			

		Telephone, cell phones
					
						 

			
				 ·
			

		Laptop computers, smart phones and desktop computers
					
						 

					
						 

					
					
						 

					
						 

					
						Allocation based on actual expenses (Where applicable, allocated based on head count)

				
	
					
						MPS Investor Note Services

					
						 

			
				 ·
			

		Compliance Fees and services
					
						 

			
				 ·
			

		Administrative Services
					
						 

			
				 ·
			

		Marketing
					
						 

			
				 ·
			

		Investor Relations and Communications
					
					
						 

					
						 

					
						Maximum $250,000 fixed fee for 2018; subject to modification upon mutual agreement with 30 days notice

				

		
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			13

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