Summary of Understanding Regarding Class 1 Unit Repurchases Among JCM Partners, JCM Properties, Barnabas Foundation, and Christian Reformed Home Missions
JCM Partners, LLC and its subsidiary, JCM Properties, LLC, have agreed with Barnabas Foundation and Christian Reformed Home Missions to repurchase their Class 1 Units at a fixed price of $1.56 per unit. The repurchases are targeted to occur in two stages: about half by December 31, 2004, and the remainder by March 31, 2005, with the possibility of earlier repurchase if capital is raised. Repurchases from both entities will occur in equal amounts, and priority will be given to repurchasing units from other members first. Each transaction will follow the company's standard documentation procedures.
Exhibit 10.9
Summary of Understanding with
Barnabas Foundation and
Christian Reformed Home Missions
Regarding Class 1 Unit Repurchases
Effective August 2004
The understanding among the management of JCM Partners, LLC (the Company) and JCM Properties, LLC (the Subsidiary) and Barnabas Foundation (Barnabas) and Christian Reformed Home Missions (CRHM) has the following terms:
1. | The purchase price for Barnabas and CRHMs Class 1 Units is fixed at $1.56 per Class 1 Unit (Barnabas and CRHM are referred to herein as the Entities); | |||
2. | The Company will use its commercially reasonable best efforts to cause the Subsidiary to purchase the Entities Class 1 Units no later than March 31, 2005, with approximately half of the Entities Class 1 Units to be purchased by December 31, 2004 (herein, the Targeted Repurchase Dates); | |||
3. | The Subsidiary will repurchase the Entities Class 1 Units earlier than the Targeted Repurchase Dates if the Company is successful in raising capital on terms acceptable to the Company, and management of the Company has determined that it is prudent to purchase the Entities Class 1 Units earlier than the Targeted Repurchase Dates; | |||
4. | Any purchases by the Subsidiary of the Entities Class 1 Units from either CRHM or Barnabas shall be made in tandem for each entity, e.g., 500,000 Units repurchased from Barnabas and 500,000 Units repurchased from CRHM; | |||
5. | The Subsidiary will give priority in using available funds to repurchases of Units of other members under the Companys repurchase program; and | |||
6. | Each purchase will be documented pursuant to the Companys customary forms used to process repurchases under the Companys repurchase guidelines. The first purchase is anticipated to be made in September 2004 in an amount yet to be determined. |