Document:

ex10-11.htm

    Exhibit
10.11

    EXECUTION
VERSION

     

    RESERVE
ACCOUNT CONTROL AGREEMENT

     

    This
Reserve Account Control Agreement (this “Account Control
Agreement”) is made as of October [  ], 2007 between Ministry
Partners Funding, LLC, a Delaware limited liability company (the “Borrower”),  BMO
Capital Markets Corp., in its capacity as Agent (the “Agent”), and U.S.
Bank National Association, in its capacity as Account Bank (“Account Bank”) and as
securities intermediary (the “Securities
Intermediary”), pursuant to the Loan, Security and Servicing Agreement of
even date herewith (as amended, restated, supplemented or otherwise modified
from time to time, the “Loan Agreement”),
among the Borrower, Fairway Finance Company, LLC, as Lender, Evangelical
Christian Credit Union, as servicer, Agent, Account Bank and Lyon Financial
Services, Inc. (d/b/a U.S. Bank Portfolio Services).  Capitalized
terms used and not otherwise defined herein shall have the meanings ascribed to
them in the Loan Agreement.

     

    WHEREAS, pursuant to the Loan
Agreement, it is required that there be established and maintained a Reserve
Account, into which funds are to be transmitted in accordance with the Loan
Agreement;

    

    WHEREAS,
the Reserve Account may be referred to herein as an “Account”;

     

    WHEREAS,
the Agent and the Borrower have requested that the Account Bank establish the
Account to be maintained with the Account Bank, under the sole dominion and
control of the Agent, for the benefit of the Secured Parties;

     

    WHEREAS,
the Borrower has granted a security interest in the Account, all securities
entitlements with respect to the Account, and all assets held in the Account to
the Agent, for the benefit of the Secured Parties, pursuant to the Loan
Agreement; and

     

    WHEREAS,
the parties hereto desire that such security interest shall be a perfected
security interest as provided for herein.

     

    NOW,
THEREFORE, in consideration of the premises set forth herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    1.           Account:

     

    (a)           Control.  Each
party hereto agrees that (i) the Account constitutes a “securities account”
within the meaning of Article 8 of the Uniform Commercial Code in effect in the
State of New York (the “UCC”), and (ii) all
property now or hereafter held, credited or carried by, in or to the credit of
the Account shall be treated as “financial assets” within the meaning of Section
8-102(a)(9) of the UCC.  The parties hereto agree that (1) this
Agreement is an "authenticated" record and that the arrangements established
under this Agreement constitute "control" of the Account, (2) the Borrower shall
not have any right to make withdrawals from, or give disbursement directions
with respect to the Account without the consent of the Agent; provided, however, that prior
to an Event of Default, the Borrower may direct the Account Bank to invest funds
in the Account in Permitted Investments; and (3) other than as expressly set
forth in the immediately preceding subparagraph (2), the Account Bank and
Securities Intermediary will comply solely with instructions originated by the
Agent directing disposition of funds and investments
in the Account and, to the extent that the Account constitutes a “securities
account” (as such term is defined in Section 8-501 of the UCC), with
“entitlement orders” (as such term is defined in Section 8-102 of the UCC)
originated by the Agent with respect to the Account, including any amounts or
financial assets deposited in or credited to the Account, all without further
consent of the Borrower.  In no event prior to receipt of the Notice
of Termination (as hereinafter defined) shall the Borrower have the right to
close the Account.  The Securities Intermediary represents that it has
not allowed, and hereby agrees that it will not allow, any person other than the
Agent, to have control of the Account and further represents that it has not
entered into, and hereby agrees that it will not enter into, any control
agreement or any other agreement relating to the Account with any other third
party other than the Loan Agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (b)           Credit to
Account.  All financial assets credited to the Account shall be
registered in the name of the Securities Intermediary or endorsed to the
Securities Intermediary or in blank, and in no event will any financial asset
credited to the Account be registered in the name of the Borrower, payable to
the order of the Borrower or specially endorsed to the Borrower except to the
extent such financial assets have been specially endorsed to the Securities
Intermediary or in blank.

     

    (c)           Notice of Registration or
Endorsement.  The Securities Intermediary agrees that it shall
promptly notify the Agent and the Borrower in writing after becoming aware
(using reasonable care) that any financial asset pledged to the Account is
registered or endorsed in contravention of Section 1(b); provided, however,
that the Securities Intermediary shall have no liability hereunder for the
failure to deliver such notice except to the extent such failure results from
its gross negligence or willful misconduct.

     

    (d)           Acknowledgement of Security
Interest.  The Securities Intermediary hereby acknowledges the
security interest in the Account, all investment property (as defined in Section
9-102(a)(49) of the UCC) and other financial assets from time to time credited
to the Account and all Proceeds (as defined in the UCC) of such assets
including, without limitation, all interest, dividends, stock dividends, stock
splits and other money or property of any kind distributed in respect of such
assets.

     

    2.           Representations, Warranties
and Covenants of the Borrower:  The Borrower represents and
warrants on its own behalf only that (a) it has rights in the Account and all
property now or hereafter held, credited or carried by, in or to the credit of
the Account;  (b) its interest in the Account is free of all adverse
claims, liens, security interests and restrictions on transfer or pledge except
as created by this Account Control Agreement or the Loan Agreement; (c) this
Account Control Agreement constitutes the legal, valid and binding agreement of
the Borrower, enforceable against the Borrower in accordance with its terms; (d)
the security interests in the Account and the security entitlements with respect
to the Account granted in favor of the Agent are perfected security interests;
(e) the Borrower’s exact legal name and sole jurisdiction of organization are as
set forth in the first paragraph of this Account Control Agreement; and (f) the
Reserve Account (Acct. No. 117837001) has been established in accordance with
the Loan Agreement.  The Borrower covenants, until the performance or
payment in full of its secured obligations, that (y) it will not create in favor
of any person other than the Agent an adverse claim, lien or security interest
in the Account or the security entitlements and financial assets credited
thereto and (z) it shall from time to time take such additional steps as the
Agent may reasonably request for the perfection and priority of the security
interests in the Account and all security entitlements with respect to the
Account to be maintained.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.           Certain Matters Regarding
the Securities Intermediary:

     

    (a)           Representations, Warranties
and Covenants.  The Securities Intermediary represents,
warrants and covenants that the Account constitutes and will continue to
constitute a “securities account” and the Securities Intermediary confirms and
agrees that (i) the Account has been established and is maintained with the
Securities Intermediary on its books and records and is maintained and will
continue to be maintained as a segregated account, (ii) the Securities
Intermediary is a “securities intermediary” within the meaning of Section
8-102(a)(14) of the UCC, (iii) the Account is an account to which financial
assets, as defined in Section 8-102(a)(9) of the UCC, are or may be credited,
(iv) the Agent is the entitlement holder of the Account, (v) all property
delivered to the Securities Intermediary for deposit into the Account will be
promptly credited to the Account, (vi) each item of property (whether cash or
any security, instrument, obligation, share, participation, interest or other
property whatsoever) at any time in the Account shall be treated as a financial
asset as defined in Section 8-102(a)(9) of the UCC, (vii) the Securities
Intermediary shall not change the name or the account number of the Account
without the prior written consent of the Agent and (viii) this Account Control
Agreement is the valid and legally binding obligation of the Securities
Intermediary, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium, rearrangement, liquidation, conservatorship,
fraudulent conveyance, and general principles of equity.

     

    (b)           Competing
Claims.  In the event that the Securities Intermediary has or
subsequently obtains by agreement, operation of law or otherwise a security
interest in the Account or any security entitlement in respect of financial
assets carried therein, the Securities Intermediary hereby agrees that such
security interest shall be subordinate to the security interests of Agent under
this Account Control Agreement, and agrees that the financial assets standing to
the credit of the Account will not be subject to deduction, set-off, banker’s
lien or any other right in favor of any Person other than the Agent (except for
the face amount of any checks which have been credited to the Account but are
subsequently returned unpaid because of uncollected or insufficient funds);
provided, however, that the
Securities Intermediary may set off all amounts due to it in respect of its
reasonable customary fees and expenses for the routine maintenance and operation
of the Account.

     

    (c)           Standard of
Care.  The Securities Intermediary shall have no
responsibilities, obligations or other duties other than those expressly set
forth in this Account Control Agreement and no implied duties, responsibilities
or obligations shall be read into this Account Control Agreement against the
Securities Intermediary.  As between the Securities Intermediary and
the Agent, notwithstanding any provision contained herein or in any other
document or instrument to the contrary, the Securities Intermediary shall not be
liable for any action taken or omitted to be taken at the instruction of the
Agent, or any action taken or omitted to be taken under or in connection with
this Account Control Agreement, except for the Securities Intermediary’s own
gross negligence or willful misconduct.

     

    (d)           Costs;
Indemnity.  All reasonable expenses incurred by the Securities
Intermediary in connection with this Account Control Agreement shall be paid by
the Borrower.  The Borrower agrees to indemnify and hold the
Securities Intermediary harmless against any losses, liabilities and damages
incurred by the Securities Intermediary as a consequence of any action taken or
omitted to be taken by it in the performance of its obligations hereunder, with
the exception of any losses, liabilities and damages arising from any breach by
the Securities Intermediary of the standard of care set forth in paragraph (c)
above.  Any amounts payable by the Borrower hereunder shall be
limited to funds available to pay such amounts pursuant to Section 1.4 of the
Loan Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (e)           Books, Records and
Accounts.  The Securities Intermediary shall, promptly upon the
reasonable request of the Agent, make available to the Agent copies of its
books, records and accounts to the extent relating to the Account, shall permit
the officers and employees of the Securities Intermediary to discuss the
foregoing with the Agent during normal business hours upon reasonable notice,
and shall provide the Agent with all account statements and other reports as to
the Account which are customary for accounts of this type or which are provided
to the Borrower.

     

    (f)           Reliance Upon Written
Documents.  The Securities Intermediary shall be protected in
acting or refraining from acting upon any written notice, certificate,
instruction, request or other paper or document, as to the due execution thereof
and the validity and effectiveness of the provisions thereof and as to the truth
of any information therein contained, which the Securities Intermediary in good
faith believes to be genuine.

     

    (g)           Advice From
Counsel.  The Securities Intermediary may consult with and
obtain advice from counsel of its own choice in the event of any dispute or
question as to the construction of any provision hereof or otherwise in
connection with its duties hereunder, and any action taken or omitted by the
Securities Intermediary in reasonable reliance upon such advice shall be full
justification and protection to it.  The Securities Intermediary shall
not be liable for any error of judgment or for any act done or step taken or
omitted except in the case of its negligence, willful misconduct or bad
faith.

     

    (h)           Other
Transactions.  The Securities Intermediary may engage or be
interested in any financial or other transactions with any party hereto and may
act on, or as depositary, trustee or agent for, any committee or body of holders
of obligations of such Persons as freely as if it were not the Securities
Intermediary hereunder.

     

    (i)           Action Without
Indemnity.  The Securities Intermediary shall not be obligated
to take any action which in its reasonable judgment would cause it to incur any
expense or liability not otherwise contemplated hereunder unless it has been
furnished with an indemnity with respect thereto which is reasonably
satisfactory to the Securities Intermediary.

     

    4.           Termination.  This
Agreement shall remain in effect until receipt by the Securities Intermediary of
written notice from the Agent in substantially the form of Exhibit A hereto (a
“Notice of
Termination”).  The rights and powers granted to the Agent in
this Agreement are powers coupled with an interest and will not be affected by
the insolvency or bankruptcy of the Borrower nor by the lapse of
time.  The termination of this Agreement shall not terminate the
Account or alter the obligations of the Securities Intermediary to the Borrower
pursuant to any other agreement with respect to the Account.

     

    5.           Conflict With Other
Agreements.  In the event of any conflict between this Account
Control Agreement (or any portion thereof) and any other agreement now existing
or hereafter entered into, the terms of this Account Control Agreement shall
prevail.

     

    6.         
Notices. 
Any notice given pursuant to this Account Control Agreement shall be given as
set forth in the Loan Agreement.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    7.           Governing
Law:  THIS ACCOUNT CONTROL AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF NEW YORK.  Each of the
parties hereto acknowledge and agree that this Account Control Agreement governs
the Account and that for purposes of the UCC, the State of New York is the
“securities intermediary’s jurisdiction” (within the meaning of Section 8-110(b)
and (e)) with respect to the Account.

     

    8.           Miscellaneous:  This
Account Control Agreement shall be effective as of the date first written above
and shall be binding upon and inure to the benefit of the respective successors
and assigns of the parties hereto; provided that none of the Borrower or the
Securities Intermediary may assign or transfer any of its rights or obligations
hereunder without the prior written consent of the Agent.  Neither
this Account Control Agreement nor any provisions hereof may be changed,
amended, modified, terminated or waived orally, but only by an instrument in
writing signed by the parties hereto.  Any provisions of this Account
Control Agreement which may prove unenforceable under any law or regulation
shall not affect the validity of any other provision hereof.  This
Account Control Agreement may be executed in one or more counterparts, all of
which shall constitute one and the same agreement.

     

    [Remainder
of Page Intentionally Blank]

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, each of the undersigned has caused this Account Control
Agreement to be duly executed and delivered by its officer thereunto duly
authorized as of the date first above written.

     

    
      	
              MINISTRY
      PARTNERS FUNDING, LLC

            
	 
      
	 
      
	
              By:

            	 
      
	 
      	
              Name:

            
	 
      	
              Title:

            

    

    

     

    
      	
              BMO
      CAPITAL MARKETS CORP.

            
	 
      
	 
      
	
              By:

            	 
      
	 
      	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      

    

    

    

    
      	
              U.S.
      BANK NATIONAL ASSOCIATION, as Account Bank and Securities
      Intermediary

            
	 
      
	 
      
	
              By:

            	 
      
	 
      	
              Name:

            
	 
      	
              Title:

            

    

    

     

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      	 
      

    

    EXHIBIT
A

    

    NOTICE OF
TERMINATION

    

    U.S. Bank
National Association,

    as
Securities Intermediary

    1 Federal
Street, 3rd
Floor

    Boston,
MA 02110

    Attention:
Client Manager - Ministry Partners

    

    
      	
              Re:

            	
              Reserve
      Account Control Agreement dated as of October [  ], 2007 (the
      “Agreement”) by
      and among Ministry Partners Funding, LLC, a Delaware limited liability
      company (the “Borrower”),  BMO
      Capital Markets Corp., in its capacity as agent, and U.S. Bank National
      Association, in its capacity as Account Bank and as Securities
      Intermediary.

            

    

    

    Ladies
and Gentlemen:

    

    This
constitutes a Notice of Termination as referred to in Section 4 of the
Agreement.

    

    You are
hereby notified that the Agreement is terminated with respect to the undersigned
and you have no further obligations to the undersigned
thereunder.  Notwithstanding any previous instructions to you, you are
hereby instructed to accept all future directions with respect to the Account
and their contents from the Borrower.  This notice terminates any
obligations you may have to the undersigned with respect to the Account and
their contents; however nothing contained in this notice shall alter any
obligations which you may otherwise owe to the Borrower pursuant to any other
agreement.

    

    You are
instructed to deliver a copy of this notice by facsimile transmission to the
Borrower and the other parties to the Agreement.

    

    
      	 
      	
              BMO
      CAPITAL MARKETS CORP., AS AGENT

            
	 
      	 
      
	 
      	
              By:____________________________

            
	 
      	
              Name:

            
	 
      	
              Title:

            

    

    

    

    

    
      
        
        

      

      
        7ex10-13.htm

    Exhibit
10.13

    

    

    EMPLOYEE
LEASE AND PROFESSIONAL SERVICES AGREEMENT

    

    THIS AGREEMENT is made this first day
of January, 2007 ("Effective
Date") by and between Ministry Partners Investment Corporation, a
California corporation, ("MPIC") and Evangelical
Christian Credit Union, a state-chartered credit union, (“ECCU”) with reference to the
following:

    

    Recitals

    

    A.           MPIC
was organized as a credit union service organization (CUSO) and provides
liquidity financing and mortgage origination financing solutions to credit
unions, through the sale of securities and debt instruments to both individuals
and institutional investors in an effort to provide mortgage loans to the
Evangelical Christian community for the acquisition and improvement of
properties and facilities of churches, Christian schools and educational
institutions, ministries and church-related organizations.

     

    B.           MPIC
has agreed to lease certain professional employer services from ECCU and has
requested that ECCU provide risk management, human resource services, payroll
and employee tax compliance services and certain administrative services to
MPIC.  MPIC will retain responsibility for managing and operating its
mortgage financing, business operations and CUSO services.

     

    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 14
below, the term of this Agreement shall commence upon the Effective Date and
shall end on December 31, 2007.  The Agreement may be extended
for an additional one year term upon the mutual written agreement of the parties
hereto and may be annually renewed thereafter provided that the parties enter
into a written agreement to extend the Agreement.

     

    2.           Leased
Employees.  ECCU shall provide leased employees to MPIC as
listed on the attached Exhibit A (which Exhibit may be modified from time to
time by mutual agreement of the parties hereto) and such other staff (all
collectively referred to as “Assigned Employees” herein) as
may be mutually agreed to by ECCU and MPIC.  As a result of the
relationship formed by this Agreement, MPIC and ECCU will both be employers, and
will share employer duties and responsibilities as co-employers of the Assigned
Employees as set forth in this Agreement.  The term “Assigned Employees” refers to
those individuals whom are listed in Exhibit A hereto, are added to the payroll
of ECCU and, in fact, are paid through ECCU by mutual agreement of the parties
hereto and assigned to MPIC in accordance with the terms of this
Agreement.

     

    All Assigned Employees shall perform
services on a full-time basis, and the services to be performed shall include,
but not be limited to, that which is listed on Exhibit A.  While ECCU will retain the
Assigned Employees on its payroll and benefit plans, the Assigned Employees
shall be under the exclusive control and supervision of MPIC and its Board of
Directors, which shall have the ability to terminate any Assigned Employee at
any time with or without cause, with respect to MPIC,
in which case
the Assigned Employee shall cease to be assigned by ECCU to MPIC; provided, however
that Assigned Employees shall be
subject to the policies and procedures of ECCU unless MPIC shall have adopted a
separate policy or procedure in lieu of the ECCU policy which such policies and
procedures are subject to ECCU’s approval.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    3.           Responsibilities
of ECCU.

     

    
      	
               
      

            	
              a.

            	
              Payroll. Pursuant to Section 6
      of this Agreement, ECCU shall prepare and distribute payroll checks to
      Assigned Employees, make the appropriate payroll deductions, file the
      appropriate reports and make payments to proper government authorities for
      all applicable federal, state, and local payroll taxes, Social Security
      tax, and federal and state unemployment insurance taxes for the Assigned
      Employees.  ECCU shall maintain necessary records and comply
      with all reporting procedures and will be solely responsible for paying
      the salary, overtime, fees, bonuses, commissions, paid-time-off, and any
      other compensation of the Assigned Employees, paying and withholding all
      payroll taxes (federal and income tax, FICA, etc.), and making other
      withholdings in connection with the salaries and benefits of Assigned
      Employees, either voluntary or as required by law, and MPIC will have no
      obligations in this regard.

            

    

     

    
      	
               
      

            	
              b.

            	
              Workers’
      Compensation.

            

    

     

    
      	
               
      

            	
              1.

            	
              ECCU
      shall secure workers’ compensation coverage in such amounts as is required
      by applicable law for Assigned Employees.  This workers’
      compensation coverage shall remain in effect until this Agreement is
      terminated by either party.

            

    

     

    
      	
               
      

            	
              2.

            	
              ECCU
      retains the right to review workers’ compensation classification codes
      (“Class Codes”) as
      to all Assigned Employees, and ECCU shall have the right to re-classify
      Assigned Workers in its discretion to the appropriate Class Codes if
      necessary to comply with the guidelines set forth by the National Council
      on Compensation Insurance (NCCI) or applicable state regulatory agency,
      and MPIC agrees to pay all additional premiums and costs (prospective and
      retroactive) resulting from any such changes.  Assigned
      Employees shall perform job functions only in approved Class
      Codes.  MPIC understands and agrees that prior written approval
      must be obtained from ECCU and/or ECCU workers’ compensation carrier
      before MPIC may change an Assigned Employee’s Class Code, and Class Codes
      not used as of the effective date of this Agreement, or add a worksite
      location not covered by this
Agreement.

            

    

     

    
      	
               
      

            	
              3.

            	
              ECCU
      reserves a right of direction and control over management of safety, risk,
      and hazard control at the worksite or sites affecting any  Assigned
      Employees, including: the right to conduct safety inspections of MPIC
      premises; responsibility for the promulgation and administration of
      employment and safety policies; and responsibility for the management of
      workers' compensation claims, claims filings, and related procedures.
      However, MPIC acknowledges that ECCU is not liable or responsible for the
      maintenance of MPIC's premises or property, as well as any injuries or
      damages occurring as a result of the condition of MPIC's premises or
      property, and MPIC agrees to indemnify ECCU for any such injuries or
      damages.

            

    

    
      	
               
      

            	
            

    

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              c.

            	
              Employee
      Benefits.

            

    

     

    
      	
               
      

            	
              1.

            	
              ECCU
      Benefit Plans.  ECCU shall
      provide and/or administer the benefit programs (the “ECCU Plans”) which shall be
      the same ECCU Plans provided to the employees of ECCU as may be adopted
      from time to time by ECCU.  An Assigned Employee's available
      coverage and eligibility to participate in a given plan shall be governed
      by and subject to the terms and conditions of the ECCU Plans and the
      policies and procedures of ECCU. ECCU reserves
      the right to change, delete or substitute one or more benefit plans it
      provides, or to increase premium payments, as applicable, paid by Assigned
      Employees, in its sole discretion. With respect to ECCU Plans, ECCU shall
      provide advance notice of any changes or premium increases as required by
      law or ECCU’s policies.

            

    

     

    
      	
               
      

            	
              2.

            	
              MPIC
      Benefit Plans.  MPIC
      reserves the right to adopt one or more employee welfare plans, fringe
      benefit plans, pension plans, and reserves the right to adopt, modify or
      terminate any employee benefit programs or plans (the "MPIC Plans") it adopts,
      subject to ECCU’s approval of such MPIC Plans. MPIC agrees and
      acknowledges that ECCU is not adopting
      the MPIC Plans, nor is ECCU responsible for
      the administration of the MPIC Plans. MPIC further acknowledges and agrees
      that unless specifically stated herein, MPIC shall remain responsible for
      compliance with all federal and state laws, including, but not limited to,
      COBRA and HIPAA, regarding the MPIC Plans. MPIC agrees to indemnify
      unconditionally and hold ECCU harmless for any damages, cost, fines, and
      penalties incurred by ECCU relating in
      any way to the MPIC Plans or contributions made to such
    plans.

            

    

     

    
      	
               
      

            	
              3.

            	
              COBRA.  ECCU shall
      be responsible for COBRA administration for all eligible Assigned
      Employees enrolled in one of the ECCU Plans; however, MPIC agrees that it
      has the responsibility to notify ECCU timely (within two business days) of
      the occurrence of any Qualifying Event (as defined in section 4980 of the
      Internal Revenue Code) that could give rise to coverage under COBRA,
      including, but not limited to, termination of an Assigned Employee, or
      re-classification of an Assigned
      Employee to less than full-time status.  MPIC warrants that, at
      all times, the employees listed on Exhibit A were and remain eligible for
      COBRA coverage in accordance with federal law, and further warrants that
      none of the Assigned Employees were covered under a health plan offered or
      sponsored by any company or entity other than ECCU at the time that he/she
      first became eligible for COBRA
benefits.

            

    

    
      	
               
      

            	
               

            

    

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    4.           Human
Resources.

     

    
      	
               
      

            	
              a.

            	
              Assigned
      Employees.  MPIC expressly agrees and understands that no
      employee shall become employed by ECCU, covered by ECCU workers’
      compensation insurance or benefit plan, or issued a payroll check unless
      the individual has, prior to commencing work for ECCU, completed an ECCU
      employment application, W-4 withholding form, ECCU employee
      acknowledgement forms, and form I-9 (the “Employment Forms”), and
      complied with all other pre-employment policies and procedures as may be
      implemented by ECCU from time to time, in its sole discretion, all of
      which must be delivered to ECCU and meet ECCU’s satisfaction before the
      employee commences employment.  Any individual who fails to
      satisfactorily comply with ECCU’s practices including completing the
      employment forms shall not be an Assigned Employee under this
      Agreement.  MPIC agrees to select, screen and approve all
      Assigned Employees prior to ECCU providing standard employment forms and
      commencing the employment process.  Until all of the Employment
      Forms are completed fully and correctly, and delivered to ECCU and the
      employment process is completed to ECCU’s satisfaction, ECCU shall not be
      considered an employer of an Assigned Employee for any
      purpose.  MPIC further agrees that ECCU shall not be an employer
      of an Assigned Employee for any purpose, including wages, for any period
      of time that MPIC failed to pay in full all payroll and fees due under
      this Agreement.

            

    

     

    
      	
               
      

            	
              b.

            	
              Personnel
      Policies.  Assigned
      Employees shall be subject to the policies and procedures of ECCU as
      adopted by ECCU for its employees, except to the extent that ECCU and MPIC
      have agreed on different policies and procedures. As requested by MPIC,
      ECCU will reasonably work with MPIC to develop and maintain personnel
      policies and procedures applicable at MPIC's work site(s), including, but
      not limited to, an Employee Handbook; however, MPIC maintains
      a right to issue its own employment policies covering Assigned Employees,
      subject to ECCU’s approval. MPIC shall
      comply with all applicable local, state and federal laws, ordinances, and
      regulations with respect to its performance under this
      Agreement.

            

    

     

    
      	
               
      

            	
              c.

            	
              Employee
      Notification.  MPIC shall
      notify, in writing, all Assigned Employees of the inception and
      termination of this Agreement.  MPIC shall also immediately upon
      termination of this Agreement notify all employees of the termination of
      this Agreement and inform them that the Assigned
      Employees are (i) no longer employed by ECCU as a co-employer and are
      solely employed by MPIC, (ii) no longer covered by ECCU workers’
      compensation insurance policy, and if applicable, any ECCU health
      insurance policy and ECCU Plans.  MPIC acknowledges that ECCU is
      relying on MPIC to notify Assigned Employees as required herein
      immediately upon termination of this Service Agreement.  It is
      MPIC’s sole responsibility to secure workers’ compensation insurance after
      receiving notice of termination of this Agreement from ECCU and to assume
      and perform the duties ECCU has performed with respect to the Assigned
      Employees and MPIC shall indemnify, defend and hold harmless ECCU for its
      failure to do so as provided in Section
  16.

            

    

     

    
    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              d.

            	
              Duty
      to Inform.  MPIC shall
      immediately inform ECCU of all formal and informal complaints,
      allegations, or incidents of any Assigned Employee or supervisor
      misconduct or workplace safety violations, regardless of the source,
      including, but not limited to, allegations of sexual harassment,
      discrimination, OSHA violations, or threats of violence, regardless of the
      source.  MPIC shall provide complete and accurate disclosure of
      all circumstances surrounding such matters.  Failure to comply
      with the terms of this paragraph shall be a material breach of the
      Agreement.

            

    

     

    
      	
               
      

            	
              e.

            	
              Compliance
      with Laws.  Although
      ECCU has agreed to assist MPIC in complying with all applicable employment
      laws affecting MPIC’s business, and shall be available to provide human
      resource advice, MPIC is not relieved of any obligations imposed on
      employers under federal, state or local laws, and MPIC shall continue to
      be responsible for complying with all laws affecting the operation of its
      business, work place, and the Assigned Employees and MPIC shall indemnify,
      defend and hold harmless ECCU for its failure to do so as provided
      in  Section 16.

            

    

     

    5.           MPIC
Responsibilities.

     

    
      	
               
      

            	
              a.

            	
              Direction
      and Control.  MPIC shall
      retain sufficient direction and control over the workplace as is necessary
      to conduct MPIC’s business operations and without which MPIC would be
      unable to conduct its business, discharge any fiduciary or legal
      responsibility that it may have, or comply with any applicable licensing,
      regulatory, or statutory requirement.  Such authority reserved
      by MPIC shall include the right to accept or cancel the assignment of any
      Assigned Employee.  Additionally, MPIC shall have sole and
      exclusive control over the day-to-day job duties of all Assigned Employees
      and ECCU shall have no responsibilities with regard to the Assigned
      Employees’ performance of such day-to-day job
  duties.

            

    

     

    
      	
               
      

            	
              ECCU
      shall have no control over the Work Site at which or from which, Assigned
      Employees perform their services (the “Work
      Site”).  MPIC agrees that ECCU shall not be vicariously
      liable for the actions or inaction of
      any Assigned Employee.  Control over the Work Site is solely and
      exclusively assigned to MPIC.  MPIC expressly absolves ECCU of
      control over the day-to-day job duties of the Assigned Employees and over
      the Work Site.  ECCU does not assume any responsibility for and
      makes no assurances, warranties, or guarantees as to the ability or
      competence of any Assigned Employee.  Although MPIC may,
      pursuant to this Agreement, delegate to ECCU the task of performing or
      arranging for, background checks of Assigned Employees, MPIC is solely
      responsible for complying with all requirements for background checks of
      the Assigned Employees imposed by applicable
  law.

            

    

    
      	
               
      

            	
            

    

     

     

     

    
 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              MPIC
      shall make any and all strategic, operational, and all other business
      related decisions regarding MPIC’s business.  MPIC shall have
      sole and exclusive responsibility and liability for goods and services
      provided by MPIC, and for the errors and omissions of the Assigned
      Employees including, without limitation, the procurement of and payment
      for errors and omissions insurance, directors and officers liability
      coverage, general liability insurance, business auto liability insurance
      and all bond coverage in amounts agreed upon by MPIC and
      ECCU.  Such decisions and related outcomes shall exclusively be
      the responsibility of MPIC and ECCU shall bear no responsibility or
      liability for any actions or inaction by MPIC or by any Assigned
      Employee.

            

    

    

    
      	
               
      

            	
              b.

            	
              Payroll.  At
      the end of each pay period, by the date specified by ECCU, MPIC shall
      obtain and provide to ECCU all records of actual time worked by each
      Assigned Employee.  By submitting such information to ECCU, MPIC
      warrants and agrees that the information is accurate and that such
      information, as well as the status of the Assigned Employees as either
      exempt or nonexempt, is in compliance with the requirements of the Fair
      Labor Standards Act, other laws administered by the U.S. Department of
      Labor’s Wage and Hour Division, and any applicable state
    law.

            

    

     

    
      	
               
      

            	
              MPIC
      shall provide to ECCU, if requested, in a timely manner certain
      information about its Assigned Employees as necessary for ECCU to perform
      the payroll and administrative services.  Information to be
      provided regarding Assigned Employees shall include (i) wage rates or
      salary information and all forms of compensation; (ii) employee benefit
      elections; (iii) life insurance elections; (iv) information related to
      before-and after-tax salary or wage reductions and deductions; (v)
      personal bank account information for the sole purpose of making direct
      deposits of compensation to the Assigned Employee’s account if so elected
      by the Assigned Employee; (vi) federal, state, and local income tax
      withholding and related information; (vii) paid-time-off information;
      (viii) social security numbers; (ix) employment service date information;
      (x) birth date information; (xi) employee contributions to ECCU sponsored
      retirement and benefit plans; and (xii) such other related information as
      ECCU may, from
      time to time, request in furtherance of performing its payroll and
      administrative services
responsibilities.

            

    

    
      	
               
      

            	
            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              Because
      ECCU does not have any responsibility or opportunity to manage and direct
      the day-to-day activities of the Assigned Employees, MPIC acknowledges
      that ECCU makes no assurances, representations, warranties, or guarantee
      as to the ability, competence or qualifications of any Assigned Employee
      and that ECCU shall have no liability for the actions of any Assigned
      Employees.  MPIC shall be solely responsible for incorrect,
      improper or fraudulent records of hours worked and for improper
      classification of Assigned Employees.  MPIC agrees that it is
      solely responsible for reporting compensation and associated taxes arising
      from any equity-based compensation plan adopted by MPIC, including, but
      not limited to stock bonus plans, stock options plans, and stock purchase
      plans.

            

    

    

    
      	
               
      

            	
              c.

            	
              No
      Other Compensation.  MPIC also
      represents and warrants that all wages (including bonuses) paid to any
      Assigned Employee are to be paid through ECCU and that any such Assigned
      Employees will receive no additional wages in any form from MPIC, or one
      of its affiliates or subsidiaries.  MPIC agrees that all
      Assigned Employees will be paid, in any form, from the assets of MPIC, or
      one of its affiliates or subsidiaries.  MPIC agrees that all
      Assigned Employees will be paid at least the minimum hourly wage or
      minimum salary, as applicable, required under federal and state
      law.

            

    

     

    
      	
               
      

            	
              MPIC  agrees
      it will be solely responsible for damages of any nature arising out of
      MPIC’s failure to report to ECCU the payment to an Assigned Employee of
      any remuneration for services rendered for MPIC.  In addition,
      ECCU shall not be considered to be an employer of any individual for whom
      required payroll information is not supplied during any payroll period
      (“Non-payroll
      Employee”).  MPIC assumes the sole and full
      responsibility for workers’ compensation claims, benefit claims (including
      but not limited to, health insurance claims and pension claims), tax
      obligations, employment discrimination claims, general liability claims,
      third-party claims, and any and all other obligations, damages, suits, or
      claims arising from or relating in any way to a Non-payroll Employee,
      whether paid in whole or in part by MPIC, as an employee, independent
      contractor, or in any other
capacity.

            

    

    

    6.           Payment
For Services.

     

    
      	
               
      

            	
              a.

            	
              Services
      Rendered.  During the
      term of this Agreement, MPIC agrees to take all actions necessary to
      authorize ECCU to draw checks, drafts or electronic funds transfer
      transactions upon a corporate checking account established by MPIC at a
      financial institution mutually agreeable to the parties
      to meet the payroll requirements for Assigned Employees and to pay the fee
      obligations ECCU incurs for services rendered by ECCU under this
      Agreement.  MPIC agrees to deliver payment for such services or
      authorize the release of such funds to pay for services rendered by ECCU
      under this Agreement within ten (10) days of invoice date.  Any
      unpaid balance will be subject to a periodic charge of one percent per
      calendar month until paid in full.  ECCU reserves the right to
      terminate this Agreement at any time if full payment is not made when
      due.  Should MPIC require additional administrative services
      from ECCU that are not included in this Agreement, the fee for any such
      additional services shall be negotiated and paid
      separately.

            

    

     

    
    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              b.

            	
              Fee
      Adjustment.  The fees
      for services provided by ECCU are subject to adjustment by ECCU based upon
      changes in local, state and federal employment law, changes in insurance
      requirements or costs, costs attributed to MPIC or to Assigned Employees
      assigned to MPIC, changes in MPIC’s payroll or changes in costs incurred
      by ECCU in providing such services under this Agreement.  Where
      possible, ECCU agrees to provide MPIC with at least a thirty (30) day
      advance written notice of a fee adjustment; provided, however, that (i)
      the fee adjustment shall take effect as of the effective date of any cost
      increase to ECCU and (ii) regardless of advance notice, MPIC agrees that
      it shall be liable for all fee increases pursuant to this Section 6(b).
      Within thirty (30) days of the effectiveness of a fee increase, MPIC shall
      be entitled to terminate this Agreement upon written notice to ECCU such
      termination to be effective thirty (30) days from the date of such
      termination notice.

            

    

     

    
      	
               
      

            	
              c.

            	
              Change
      in Scope of Services.  If during
      the term of this Agreement, MPIC’s need for administrative services
      hereunder is increased or reduced by a significant change in the scope of
      MPIC’s business or operations, as a result of dispositions or otherwise,
      MPIC may request, and ECCU 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
Services.  ECCU will also provide other
administrative and support services not provided by the Assigned
Employees
(“Other
Services”)
and as listed on the attached
Exhibit
A.  MPIC shall pay
ECCU for such services in the manner described in paragraph 6 above.

     

    8.           Office
Lease.  ECCU shall lease
office space to MPIC to be used for the conduct of its business as set forth in
Exhibit B.  In consideration thereof, MPIC shall reimburse ECCU for
the cost of occupying this space, including building and property maintenance,
building depreciation, utilities, property taxes, and building security by
paying a rate per square foot as set forth in Exhibit B.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    9.           Office
Equipment Lease.  ECCU shall lease
office equipment and furniture to MPIC to be used for the conduct of its
business pursuant to an Equipment Lease attached hereto as Exhibit
C.

     

    10.           Other
Expenses.  From time to
time, ECCU may incur other expenses on behalf of MPIC, such as telephone costs,
etc.  ECCU shall itemize its costs incurred on MPIC’s behalf and
submit reasonable documentation for expenditures.  Purchases and such
expenditures incurred by ECCU on behalf of MPIC shall be billed to MPIC at
ECCU’s cost with no markup.  MPIC shall reimburse ECCU in the manner
described in paragraph 6 above.  ECCU shall receive no rebates,
commissions, or credits for purchases, expenditures, or arrangements made with
an outside vendor for MPIC by ECCU and billed by the vendor directly to MPIC or
a party designated by MPIC without MPIC’s express acknowledgment and
consent.

     

    11.           MPIC
Retained Plans.  MPIC reserves the
right to adopt a qualified retirement plan, stock bonus, equity compensation
plan or stock option plan for the benefit of the Assigned
Employees.  All obligations and duties, fiduciary and otherwise,
relating to such MPIC plans shall be the sole responsibility of
MPIC.  MPIC has the exclusive right to grant equity compensation
awards to the Assigned Employees and shall have the right to hire, fire and
control the activities of the Assigned Employees.  In determining the
economic value of any such awards, bonuses or compensation benefits, MPIC shall
have the unrestricted right to make such awards and establish the salaries,
bonuses and compensation awards of the Assigned Employees provided that it
remits to ECCU the complete remuneration and compensation expense incurred for
such Assigned Employees on or before the due date for making payment for
services provided to MPIC under Section 6 of this Agreement.

     

    12.           
Confidentiality.
MPIC and ECCU 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 (i) as necessary in performing its duties hereunder, or
(ii) as required by law, court order or in response to an investigation or
request of a regulatory body having jurisdiction over a party, or (iii) 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
12 shall not apply to information that (i) is in or enters the public domain
without breach of this Agreement, (ii) a party receives from a third party
without restriction on disclosure and without breach of a non-disclosure
obligation; (iii) which the party, not claiming prior ownership, develops
independently and can prove same with written evidence. This Confidentiality
provision shall survive termination of this Agreement.

     

    13.           Relationship
of Parties.  It is the
parties’ intent that ECCU 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 ECCU and
MPIC.  Except when ECCU Board approval is required under this
Agreement and by law to approve certain transactions, MPIC will
determine the method, details and means of performing the services to be
provided by the Assigned Employees under this Agreement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

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

     

    
      	
               
      

            	
              a.

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

            

    

     

    

    
      	
               
      

            	
              b.

            	
              At
      the nondefaulting party's option, upon a default as defined in Section 15
      below by the nondefaulting party giving written notice to the defaulting
      party specifying the 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.

            

    

     

    Except where termination is the result
of a default by MPIC in which case MPIC shall be liable for all amounts owing by
it under this Agreement through the expiration of the term, any amounts payable
to ECCU hereunder shall be prorated through the termination date of this
Agreement.  Notwithstanding the foregoing, MPIC shall remain liable
for reimbursing ECCU for all compensation paid to the Assigned Employees as well
as any payment obligations that it has incurred under this
Agreement.

    

    15.           Default.

     

    
      	
               
      

            	
              a.

            	
              Termination
      by Either Party.  Subject to
      Section 14(b), 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 provide to ECCU sufficient payroll
      information or provide sufficient funds to cover payroll if ECCU requires
      such; (3) failure to comply fully with a directive or order from a
      governmental agency or insurance carrier; (4) breach of any material
      warranty or representation made herein; (5) failure to notify ECCU of a
      claim of sexual harassment, discrimination, or other improper conduct made
      by or relating to an Assigned Employee; or (6) the failure to comply with
      the terms and obligations under this
Agreement.

            

    

     

    
      	
               
      

            	
              b.

            	
              Termination
      by ECCU.  ECCU may
      also terminate this Agreement if, at any time, ECCU in
      its sole discretion determines that a material adverse change has occurred
      in the financial condition of MPIC, or that MPIC is unable to pay its
      debts as they become due in the ordinary course of business. This
      Agreement may also be terminated at any time by ECCU 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
      ECCU, adversely
      affects its interest under this Agreement. ECCU may also
      terminate this agreement if, in its discretion,
      the MPIC's workers compensation experience has become unacceptable, or if
      a provider of workers compensation insurance to ECCU decides
      to cancel or non-renew a policy of insurance issued to
      ECCU.

            

    

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      	
               
      

            	
              c.

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

            

    

     

    
      	
               
      

            	
              d.

            	
              Effect
      of Termination.
      Upon termination of this Agreement, for any reason, or should MPIC
      fail to timely pay ECCU for its services, all of the Assigned Employees
      shall be deemed to have been laid off by ECCU as of the effective date of
      the termination or upon MPIC’s failure to make a payment when due, as the
      case may be, and MPIC shall be the sole employer of the Assigned Employees
      and immediately assume any obligations which had been delegated by it to
      ECCU including, without limitation, all federal, state and local
      obligations of an employer to the employees which are not in conflict with
      state or federal law, and shall assume full responsibility for providing
      workers' compensation coverage and benefits as required by law. MPIC shall
      be solely responsible for reinstating any Assigned Employee to work who
      was out on FMLA or similar leave. ECCU shall immediately be released from
      such obligations as are permitted by law as of the effective date of
      termination or MPIC’s failure to make a payment when due. It is the intent
      of the parties that, where allowed by law, the parties hereto be placed in
      their respective positions immediately ,before
      their entry into this Agreement in the event of a termination or MPIC's
      failure to pay ECCU for services rendered under this Agreement. If for any
      reason (whether or not required by applicable law) ECCU makes any payment
      to any of the Assigned Employees after this Agreement has been terminated,
      ECCU shall be entitled to full reimbursement for such expenditures to the
      extent that it has not received payment from MPIC for such payments.
      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
  ECCU.

            

    

     

    
      	
               
      

            	
              e.

            	
              COBRA
      Coverage.  If
      ECCU group
      health insurance coverage has been accepted pursuant to this Agreement,
      upon termination of this Agreement, for any reason, MPIC shall assume from
      ECCU all
      responsibility and obligation for the continuation of coverage for any
      COBRA participants listed in Exhibit A, as well as for any Assigned
      Employees receiving COBRA benefits at the time of termination of the
      Agreement, and all Assigned Employees eligible for COBRA benefits at the
      time of termination of the Agreement, for the remainder of their COBRA
      eligibility period.

            

    

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
       
16.             Limited
Liability; Indemnity. With regard to the services
to be performed by ECCU, neither ECCU nor its employees or agents shall be
liable to MPIC, or to anyone who may claim any right due to his/her relationship
with MPIC, 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
ECCU or its employees or agents (but not Assigned Employees).  ECCU
agrees to indemnify, hold harmless and protect MPIC, its affiliated entities,
their respective officers, directors, managers and representatives from and
against any and all claims, demands, damages, costs, expenses, losses, claims,
demands, damages, costs, expenses, losses and liabilities (but not lost profits,
consequential damages, goodwill, business interruption or loss of business)
arising out of the grossly negligent or willful failure of any non-Assigned
Employees employed by ECCU to comply with applicable worker’s compensation,
withholding, payroll tax or ERISA laws, the failure of ECCU to comply with any
other administrative duty or responsibility assumed by ECCU in this Agreement,
or where any action is taken by MPIC in compliance with a written ECCU policy,
written procedure, or written direction which is illegal under applicable local,
state or federal law.

    

     

    MPIC shall indemnify, defend and hold
ECCU, 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 MPIC, the actions of any
Assigned Employees, vendor or contractor engaged by MPIC under this Agreement,
(b) MPIC’s failure to comply with all federal, state and local laws, regulations
and ordinances applicable to MPIC as an employer or MPIC’s business operations,
or (c) MPIC’s breach of any provision of this Agreement, except when same
results from willful misconduct of ECCU and ECCU (but not
Assigned  Employees) 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.

     

    17.           Notices.  All notices and
other communications hereunder shall be in writing.  Notices shall be
deemed duly given, when delivered personally, or at the time confirmed for
delivery if by telegram, telex, facsimile or telecopy transmission, or five (5)
days after being sent, through the U.S. Postal Service, postage paid,
first-class.  If sent through any reputable one-day, 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 or facsimile
numbers of the parties set forth
next to their respective signatures hereto, or to such other addresses or
numbers as may be specified from time to time by notice in writing to the other
parties hereto.

     

    18.           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.

     

    19.           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 or the Assigned Employees which are in the party’s possession or under
its control;  provided, however, that ECCU shall retain the originals
or copies of records as ECCU determines is necessary in good faith to comply
with legal requirements affecting employers.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    20.           Intellectual
Property.  Any and all inventions, discoveries, improvements,
copyrightable works and creations (hereafter referred to as “Intellectual Property”) which
MPIC has previously, solely or jointly, conceived or made or may conceive or
make during the period of this Agreement, whether or not accomplished through
the use of Assigned Employees, shall be the sole and exclusive property of
MPIC.  MPIC shall have sole and exclusive responsibility for
protecting its rights to such Intellectual Property and to all of its other
assets and ECCU shall have no responsibility with regard to same.

     

    21.           MPIC
Employment Contracts.  Any responsibility and/or liability with
regard to any employment contract between MPIC and any Assigned Employee shall
be the exclusive responsibility and/or liability of MPIC.  ECCU will
have no responsibility or liability in connection with or arising out of any
such employment contract except to prepare checks and to pay any such employee
party to such a contract in conformity with information provided by MPIC and at
the direction of MPIC.  With respect to any employment contract
between MPIC and any Assigned Employee, MPIC shall be acting solely on its own
volition, and shall be solely responsible for all aspects of any such contract,
including but not limited to its negotiation, compliance, implementation,
renewal, enforcement, and termination.

     

    22.           Electronic
Signature.  By executing this Agreement, MPIC agrees to comply
with, and agrees that ECCU and MPIC may transact business electronically
pursuant to, and is deemed to have opted in, to the “Electronic Signatures in
Global and National Commerce Act,”  P.L. 106-229, and any other
similar state or local statute that authorizes electronic signatures in
commerce.  MPIC agrees that ECCU may rely on electronic authorization
by MPIC or an Assigned Employee to make changes to employee or payroll records
or date relating to an Assigned Employee.  MPIC hereby releases ECCU
and waives any rights to bring an action or seek damages from ECCU based in
whole or in part on electronic instructions or authorizations by MPIC or an
Assigned Employee.  MPIC will indemnify ECCU unconditionally for any
and all damages, injury, costs, fines, fees, penalties, suits and actions
brought or assessed against ECCU relating in any way to ECCU reliance on
electronic authorizations or instructions by MPIC or an Assigned
Employee.

     

    23.           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.

     

    24.           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.

     

    
      
        
        

      

      
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    25.           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.

     

    26.           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.

     

    27.           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.

     

    28.           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, except for an
assignment by ECCU or MPIC to any successor to all or a substantial portion of
the business of ECCU 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.

     

    29.           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.

     

    30.           Attorneys'
Fees. Should an
action be commenced by either party to interpret or enforce the terms of this
Agreement or to collect any amounts owing 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.

    

    
      	
              "ECCU"

            	
              "MPIC"

            
	
              Evangelical
      Christian Credit Union

            	
              Ministry
      Partners Investment Corporation

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              By:___________________________

            	
              By:___________________________

            
	
                   Brian
      D. Scharkey

            	
                    Billy
      M. Dodson

            
	
                   Chief
      Financial Officer

            	
                    President

            

    

    

    

    
      
        
        

      

      
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