AMERICAN CHURCH MORTGAGE COMPANY
EXHIBIT 10.1
SUPPLEMENT AND AMENDMENT TO
ADVISORY AGREEMENT
SUPPLEMENT AND AMENDMENT TO ADVISORY AGREEMENT
THIS AGREEMENT to amend ("Amendment") made as of this 2nd day of July, 1997, by
and between AMERICAN CHURCH MORTGAGE COMPANY, a Minnesota corporation ("ACMC")
and CHURCH LOAN ADVISORS, INC., a Minnesota corporation ("Church").
WITNESSETH:
WHEREAS, ACMC and Church entered into an Advisory Agreement dated
September 30, 1994, whereby Church agreed to provide advisory services to ACMC
in regard its management, administration and operation of ACMC;
WHEREAS, ACMC and Church amended the Advisory Agreement on or about May
19, 1995 (as amended the "Agreement"); and
WHEREAS, ACMC and Church desire to amend that certain Agreement to
provide that the Agreement may not be subject to a termination fee upon
termination of said Agreement effective January 11, 2000.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants and conditions contained herein, it is hereby agreed that the
Agreement be, and it hereby is, supplemented and amended as follows:
1. Section 7.3 of the Agreement shall be amended as follows:
"7.3 Termination Fee. In the event that this Advisory Agreement is terminated by
the Company, either through non-renewal or other means, the Company immediately
shall pay the Advisor, in addition to all other compensation due hereunder, a
termination fee equal to two percent (2 %) of the value of the Average Invested
Assets of the Company as of the date of termination; provide however that such
fee shall not exceed an amount equal to 15 % of the balance of assets remaining
presuming payment to the Company's Shareholders, in the aggregate, of an amount
equal to 100% of the original issue price of the Company's Shares, plus an
amount equal to 6% of the original issue price of the Company's Shares per annum
cumulative. For purposes of the termination fee, the original issue price of the
Company's Shares may be reduced by prior cash distributions. Nothing herein
shall prevent the Advisor from withdrawing its initial investment from the
Company upon termination. Effective January 11, 2000, no termination fee shall
be due under this Advisory Agreement. "
2. Except as hereinabove supplemented and amended, all of the terms,
covenants and conditions of the Agreement are hereby ratified and confirmed.
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first written above.
AMERICAN CHURCH MORTGAGE
COMPANY
By: /s/ Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx
Its: Vice President & Secretary
CHURCH LOAN ADVISORS, INC.
By: /s/ Xxxxxx X. Xxxxx
Xxxxxx X. Xxxxx
Its: President
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