Document:

Exhibit 10.2

 Exhibit 10.2 
  
 JER INVESTORS TRUST INC. 
  
 NONQUALIFIED STOCK OPTION AND 
 INCENTIVE AWARD PLAN 
  
 Adopted on May 27, 2004

  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	PAGE

	 SECTION 1
	  	PURPOSE OF PLAN; DEFINITIONS	  	1
	 	  	 1.1    Purpose
	  	1
	 	  	 1.2    Definitions
	  	1
			
	 SECTION 2
	  	ADMINISTRATION	  	5
	 	  	 2.1    Administration
	  	5
	 	  	 2.2    Duties and Powers of the Committee
	  	6
	 	  	 2.3    Majority Rule
	  	6
	 	  	 2.4    Compensation; Professional Assistance; Good Faith Actions
	  	6
			
	 SECTION 3
	  	STOCK SUBJECT TO PLAN	  	7
	 	  	 3.1    Number and Source of Shares
	  	7
	 	  	 3.2    Unrealized Awards
	  	7
	 	  	 3.3    Adjustment of Awards
	  	8
			
	 SECTION 4
	  	ELIGIBILITY	  	8
			
	 SECTION 5
	  	AWARDS	  	9
	 	  	 5.1    Stock Options
	  	9
	 	  	 5.2    Stock Appreciation Rights
	  	10
	 	  	 5.3    Restricted Stock
	  	10
	 	  	 5.4    Performance Awards
	  	11
	 	  	 5.5    Manager Awards
	  	11
	 	  	 5.6    Automatic Non-Officer Director Awards
	  	12
	 	  	 5.7    Other Awards
	  	13
			
	 SECTION 6
	  	AWARD AGREEMENTS	  	13
	 	  	 6.1    Terms of Award Agreements
	  	13
	 	  	 6.2    Replacement, Substitution, and Reloading
	  	15
	 	  	 6.3    Surrender of Options
	  	15
			
	 SECTION 7
	  	LOANS	  	15
			
	 SECTION 8
	  	AMENDMENT AND TERMINATION	  	16

  

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	 SECTION 9
	  	UNFUNDED STATUS OF PLAN	  	17
			
	 SECTION 10
	  	GENERAL PROVISIONS	  	17
	 	  	 10.1  Securities Laws Compliance
	  	17
	 	  	 10.2   Certificate Legends
	  	17
	 	  	 10.3   Transfer Restrictions
	  	18
	 	  	 10.4   Company Actions; No Right to Employment
	  	18
	 	  	 10.5   Payment of Taxes
	  	18
	 	  	 10.6   Voting Rights
	  	18
	 	  	 10.7   Information Rights
	  	18
			
	 SECTION 11
	  	EFFECTIVE DATE OF PLAN	  	19
			
	 SECTION 12
	  	TERM OF PLAN	  	19

  

 ii 

  
 JER INVESTORS TRUST INC.

 NONQUALIFIED STOCK OPTION AND INCENTIVE AWARD PLAN 
  
 SECTION 1 
  
 PURPOSE OF PLAN; DEFINITIONS 
  
 1.1 Purpose. The purpose of the Plan is (a) to reinforce the long-term commitment to the Company’s success of those Non-Officer Directors,
officers, directors, employees, advisors, consultants, and other personnel who are or will be responsible for such success; to facilitate the ownership of the Company’s stock by such Persons, thereby reinforcing the identity of their interests
with those of the Company’s stockholders; to assist the Company in attracting and retaining individuals with experience and ability, (b) to compensate the Manager for its successful efforts in raising capital for the Company and to provide
performance-based compensation in order to provide incentive to the Manager to enhance the value of the Company’s Stock and (c) to benefit the Company’s stockholders by encouraging high levels of performance by Persons whose performance is
a key element in achieving the Company’s continued success. 
  
 1.2 Definitions. For purposes of the Plan, the following terms shall be defined as set forth below: 
  
 (a) “Affiliate” means (i) any Person directly or indirectly controlling, controlled by or in common control with such
other Person, (ii) any officer or general partner of such other Person and (iii) any legal entity for which such Person acts as an executive officer or general partner. 
  
 (b) “Award” or “Awards” means an award described in Section 5 hereof.

  
 (c) “Award Agreement” means
an agreement described in Section 6 hereof entered into between the Company and a Participant, setting forth the terms, conditions and any limitations applicable to the Award granted to the Participant. 
  
 (d) “Beneficial Owner” shall have the
meaning set forth in Rule 13d-3 under the Exchange Act. 
  

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 (e) “Board” means the Board of Directors of the Company. 
  
 (f) “California Securities Law” means the
California Corporate Securities Law of 1968. 
  
 (g) “Change in Control” of the Company shall be deemed to have occurred if an event set forth in any one of the following paragraphs (i)-(iii) shall have occurred unless prior to the occurrence of such event, the Board
determines that such event shall not constitute a Change in Control: 
  

	 	(i)	any Person, other than Joseph E. Robert, Jr. (or his estate, heirs, testamentary trusts, executor, administrator, committee or other personal representative) or any Affiliate of the
Company or J.E. Robert Company, Inc.) is or becomes Beneficial Owner, directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the then outstanding securities of the Company,
excluding (A) any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (x) of paragraph (ii) below, and (B) any Person who becomes such a Beneficial Owner through the issuance of such securities with
respect to purchases made directly from the Company; or 

  

	 	(ii)	 the stockholders of the Company approve a merger or consolidation of the Company with any other corporation or the issuance of voting securities of the Company in
connection with a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company) pursuant to applicable stock exchange requirements, other than (x) a merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) fifty percent (50%) or
more of the 

  

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combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or
consolidation, or (y) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing
thirty percent (30%) or more of the combined voting power of the then outstanding securities of the Company; or 

  

	 	(iii)	the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or
substantially all of the assets of the Company. 

  
 (h) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. 
  
 (i) “Commission” means Securities and Exchange Commission. 
  
 (j) “Committee” means any committee the
Board may appoint to administer the Plan. To the extent necessary and desirable, the Committee shall be composed entirely of individuals who meet the qualifications referred to in Section 162(m) of the Code and Rule 16b-3 under the Exchange Act. If
at any time or to any extent the Board shall not administer the Plan, then the functions of the Board specified in the Plan shall be exercised by the Committee. 
  
 (k) “Company” means JER Investors Trust Inc., a Maryland corporation. 
  
 (l) “Effective Date” means the date
provided pursuant to Section 11 hereof. 
  
 (m)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  

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 (n) “Fair Market Value” means, as of any given date, (i) the closing
price of a share of the Company’s Stock on the principal exchange on which shares of the Company’s Stock are then trading, if any, on the trading day previous to such date, or, if stock was not traded on the trading day previous to such
date, then on the next preceding trading day during which a sale occurred; or (ii) if such Stock is not traded on an exchange but is quoted on NASDAQ or a successor quotation system, (x) the last sales price (if the Stock is then listed as a
National Market Issue under the NASDAQ National Market System) or (y) the mean between the closing representative bid and asked prices (in all other cases) for the Stock on the trading day previous to such date as reported by NASDAQ or such
successor quotation system; or (iii) if such Stock is not publicly traded on an exchange and not quoted on NASDAQ or a successor quotation system, the mean between the closing bid and asked prices for the Stock, on the day previous to such date, as
determined in good faith by the Committee; or (D) if the Stock is not publicly traded, the fair market value established by the Committee using any reasonable method and acting in good faith. 
  
 (o) “Manager” means JER Commercial Debt
Advisors LLC, a Delaware limited liability company, any of its affiliates that it may designate to receive an Award or its successor under that certain Management Agreement, dated as of June 4, 2004, by and among the Company and JER Commercial Debt
Advisors, LLC, as amended from time to time. 
  
 (p) “Manager Awards” means the Awards granted to the Manager as described in Section 5.5 hereof. 
  
 (q) “Non-Officer Director” means a director of the Company who is not an officer or employee of the Company. 

 
 (r) “Non-Officer Director Restricted Stock
Award” shall have the meaning set forth in Section 5.6 hereof. 
  
 (s) “144A Offering” means the offering, dated June 4, 2004, pursuant to Rule 144A of the Securities Act of 10,000,000 shares of Stock. 
  
 (t) “Participant” means any Non-Officer Director, the Manager, any employee of the Manager
who is performing services for the Company and any director, officer, employee, consultant or advisor to the Company or to any parent, affiliate or subsidiary of the Company, or any other Person selected by the Committee, pursuant to the
Committee’s authority in Section 2 hereof, to receive Awards. 
  

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 (u) “Person” means an individual, and, only to the extent allowed under
Rule 701 of the Securities Act, a corporation, limited liability company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind. 
  
 (v) “Plan” means this JER Investors Trust Nonqualified Stock Option and Incentive Award
Plan. 
  
 (w) “Restricted Stock”
means Stock as described in Section 5.3 hereof. 
  
 (x) “Securities Act” means the Securities Act of 1933, as amended. 
  
 (y) “Stock” means the common stock, par value $0.01 per share, of the Company. 
  
 (z) “Stock Appreciation Right” shall have
the meaning set forth in Section 5.2 hereof. 
  
 (aa) “Stock Option” means any option to purchase shares of Stock granted pursuant to the Plan. The Stock Options granted hereunder are not intended to qualify as “incentive stock options” within the meaning of
Section 422 of the Code. 
  
 (bb) “10%
Stockholder” means an owner of Stock (as determined under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of all classes of Stock of the Company or its parent of subsidiaries. 
  
 SECTION 2 
  
 ADMINISTRATION 
  
 2.1 Administration. The Plan shall be administered in accordance with the requirements of Section 162(m) of the Code (but only to the extent
necessary and desirable to maintain qualification of awards under the Plan under Section 162(m) of the Code) and, to the extent applicable, Rule 16b-3 under the Exchange Act, by the Board or, at the Board’s sole discretion, by the Committee,
which shall be appointed by the Board, and which shall serve at the pleasure of the Board. 
  

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 2.2 Duties and Powers of the Committee. The Committee shall have the power and authority to grant
Awards to Participants pursuant to the terms of the Plan, and, in its discretion, to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable; to interpret the terms
and provisions of the Plan and any Award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan. 
  

In particular, the Committee shall have the authority to determine, in a manner consistent with the terms of the Plan: 
  
 (a) in addition to the Manager and the Non-Officer
Directors, those officers, employees, directors, managers, consultants or advisors, if any, who shall be Participants; 
  
 (b) subject to Section 3 hereof, the number of shares of Stock to be covered by and the vesting schedule of each Stock Option granted
hereunder; 
  
 (c) the terms and conditions of
any Award granted hereunder, including the waiver or modification of any such terms or conditions, consistent with the provisions of the Plan (including, but not limited to, Section 8 hereof); and 
  
 (d) the terms and conditions which shall govern all the
Award Agreements, including the waiver or modification of any such terms or conditions. 
  
 2.3 Majority Rule. The Committee shall act by a majority of its members in attendance at a meeting at which a quorum is present or by a memorandum or other written instrument signed by all members of the
Committee. 
  
 2.4 Compensation; Professional Assistance; Good
Faith Actions. Members of the Committee may receive such compensation for their services as members as may be determined by the Board. All expenses and liabilities that members of the Committee or Board may incur in connection with the
administration of this Plan shall be borne by the Company. The Committee may, with the approval of the Board, employ attorneys, consultants, accountants, appraisers, brokers or other persons. The Committee, the Board, the Company and any officers
and directors of 

  

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the Company shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and
determinations made by the Committee or Board in good faith shall be final and binding upon all Participants, the Company and all other interested persons. No member of the Committee or Board shall be personally liable for any action, determination
or interpretation made in good faith with respect to this Plan or any Award, and all members of the Committee and Board shall be fully protected and indemnified to the fullest extent permitted by law, by the Company, in respect of any such action,
determination or interpretation. 
  
 SECTION 3 

 
 STOCK SUBJECT TO PLAN 
  
 3.1 Number and Source of Shares. Unless the Plan is subsequently
amended, the maximum number of shares of Stock reserved and available for issuance at any time under the Plan may not exceed 10% of shares of Stock outstanding at the closing of the 144A Offering on a fully diluted basis, which shares outstanding
shall include the shares of Stock pursuant to the exercise by the initial purchasers in the 144A Offering of their option to purchase additional shares to cover additional allotments, if any. A maximum of 300,000 shares of Stock may be issued
pursuant to Awards granted under the Plan at the closing of the 144A Offering, and a maximum of 200,000 additional shares of Restricted Stock may be granted thereafter during the term of the Plan, subject to adjustment if the initial purchasers
exercise their option to purchase additional shares to cover additional allotments, if any. The aggregate number of shares of Stock as to which Awards may be granted to any Participant during any calendar year may not, subject to adjustment as
provided in this Section 3, exceed 50% of the shares of Stock reserved for the purposes of the Plan. The Stock which may be issued pursuant to an Award under the Plan may be treasury Stock, authorized but unissued Stock, or Stock acquired,
subsequently or in anticipation of the transaction, in the open market to satisfy the requirements of the Plan. Awards may consist of any combination of such Stock, or, at the election of the Company, cash. If any shares of Stock subject to an Award
are forfeited, cancelled, exchanged or surrendered or if an Award otherwise terminates or expires with or without a distribution of shares to the Participant, the shares of Stock with respect to such Award shall, to the extent of any such
forfeiture, cancellation, exchange, surrender, termination or expiration, count against the maximum number of shares for which Awards may be granted to the Participant under the preceding sentence. 
  
 3.2 Unrealized Awards. Subject to the limitations set forth in the
last sentence of Section 3.1 hereof, if any shares of Stock subject to an Award are 

  

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forfeited, cancelled, exchanged or surrendered or if an Award otherwise terminates or expires with or without a distribution of shares to the Participant,
the shares of Stock with respect to such Award shall, to the extent of any such forfeiture, cancellation, exchange, surrender, termination or expiration, again be available for grants under the Plan. 
  
 3.3 Adjustment of Awards. Upon the occurrence of any event which
affects the shares of Stock in such a way that an adjustment of outstanding Awards is appropriate in order to prevent the dilution or enlargement of rights under the Awards (including, without limitation, any extraordinary dividend or other
distribution (whether in cash or in kind), recapitalization, stock split, reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar corporate transaction or event), the Committee
shall make appropriate equitable adjustments, which may include, without limitation, adjustments to any or all of the number and kind of shares of Stock (or other securities) which may thereafter be issued in connection with such outstanding Awards
and adjustments to any exercise price specified in the outstanding Awards and shall also make appropriate equitable adjustments to the number and kind of shares of Stock (or other securities) authorized by or to be granted under the Plan. Such other
substitutions or adjustments shall be made respecting Awards hereunder as may be determined by the Committee, in its sole discretion. In connection with any event described in this paragraph, the Committee may provide, in its discretion, for the
cancellation of any outstanding Award and payment in cash or other property in exchange therefor, equal to the difference, if any, between the Fair Market Value of the Stock or other property subject to the Award, and the exercise price, if any.

  
 SECTION 4 
  
 ELIGIBILITY 
  
 The Manager, each employee of the Manager who is performing services for the
Company and each Non-Officer Director, officer, director, employee, consultant or advisor of the Company or any parent, affiliate or subsidiary of the Company shall be eligible for Awards under the Plan. Additional Participants under the Plan may be
selected from time to time by the Committee, in its sole discretion, and the Committee shall determine, in its sole discretion, the number of shares covered by each Award. 
  

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 SECTION 5 

 
 AWARDS 
  
 Awards may include, but are not limited to, those described in this Section 5. The Committee may grant Awards singly or in
combination with other Awards, as the Committee may in its sole discretion determine. Subject to the other provisions of this Plan, Awards may also be granted in combination or in replacement of, or as alternatives to, grants or rights under this
Plan and any other employee (or director) benefit or compensation plan of the Company. 
  
 5.1 Stock Options. A Stock Option is a right to purchase a specified number of shares of Stock, at a specified price during such specified time as the Committee shall determine. 
  
 (a) A Stock Option may be exercised, in whole or in part, by
giving written notice of exercise to the Company, specifying the number of shares of Stock to be purchased; provided that, to the extent required by Section 25102(o) of the California Securities Law, a Stock Option shall become
exercisable at a rate of not less than 20% per year over five years from the date of grant; provided, however, that subsequent to the grant of any Stock Option, the Committee may, at any time before complete termination of such Stock Option,
accelerate, in its discretion, the time or times at which such Stock Option may be exercised in whole or in part (without reducing the term of such Stock Option). 
  
 (b) The Committee shall determine, in its sole discretion, the exercise price of each Stock Option, which
price may be less than the Fair Market Value of the share of Stock subject to such Stock Option on the date of grant. Notwithstanding the foregoing, to the extent that the grant of such Stock Option is intended to comply with Section 25102(o) of the
California Securities Law, the exercise price of such Stock Option shall not be less than 85% of the Fair Market Value of the share of Stock subject to such Stock Option on the date of grant and, if the optionee is a 10% Stockholder, such exercise
price shall be no less than 110% of the Fair Market Value of the share of Stock subject to such Stock Option on the date of grant. 
  
 (c) The exercise price of a Stock Option may be paid in cash or its equivalent, by certified or bank check, by delivery of a promissory
note or other instrument acceptable to the Committee, as determined by the Committee. As determined by the Committee, in its sole discretion, payment in whole or in part may also be made (i) by means of any cashless exercise procedure approved by
the Committee, or (ii) in the form of unrestricted Stock already owned by the Participant 

  

 9 

 
which, (x) in the case of unrestricted Stock acquired upon exercise of an option, have been owned by the Participant for more than six months on the date of
surrender, and (y) has a Fair Market Value on the date of surrender equal to the aggregate option price of the Stock as to which such Stock Option shall be exercised. No fractional shares of Stock will be issued or accepted. 
  
 (d) Unless the Committee determines otherwise, all Stock
Options granted pursuant to this Plan shall become immediately and fully vested and exercisable upon a Change in Control. 
  
 5.2 Stock Appreciation Rights. A Stock Appreciation Right is a right to receive, upon surrender of the right, an amount payable in cash or shares
of Stock or a combination of the foregoing under such terms and conditions as the Committee shall determine. The amount payable in cash or shares of Stock with respect to each right shall be equal in value to a percentage (up to and including 100%)
of the amount by which the Fair Market Value per share of Stock on the exercise date exceeds the Fair Market Value per share of Stock on the date of grant of the Stock Appreciation Right. The applicable percentage shall be established by the
Committee. The Award Agreement may state whether the purchase amount payable is to be paid wholly in cash, wholly in shares of Stock or in any combination of the foregoing; if the Award Agreement does not so state the manner of payment, the
Committee shall determine such manner of payment at the time of payment. The amount payable in shares of Stock, if any, is determined with reference to the Fair Market Value per share of Stock on the date of exercise. 
  
 5.3 Restricted Stock. Restricted Stock is Stock that is issued to a
Participant and is subject to such terms, conditions and restrictions as the Committee deems appropriate, which may include, but are not limited to, restrictions upon the sale, assignment, transfer or other disposition of the Restricted Stock and
the requirement of forfeiture of the Restricted Stock upon termination of employment or service under certain specified conditions. The Committee may provide for the lapse of any such term or condition or waive any term or condition based on such
factors or criteria as the Committee may determine. Subject to the restrictions stated in this Section 5.3 and in the applicable Award Agreement, the Participant shall have, with respect to Awards of Restricted Stock, all of the rights of a
stockholder of the Company, including the right to vote the Restricted Stock and the right to receive any cash or stock dividends on such Stock. The Company may require that the stock certificates evidencing Restricted Stock granted hereunder be
held in the custody of the Company until the restrictions thereon shall have lapsed, and that, as a condition of any award of Restricted Stock, the Participant shall have delivered a stock power, 

  

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endorsed in blank, relating to the Stock covered by such award. Unless the Committee determines otherwise, upon a Change in Control, all Restricted Stock
awards granted pursuant to this Plan shall, immediately as of the date of the Change in Control, no longer be subject to a risk of forfeiture or have transfer restrictions. 
  
 5.4 Performance Awards. Performance Awards may be granted under this Plan from time to time based on such terms and
conditions as the Committee deems appropriate provided that such Awards shall not be inconsistent with the terms and purposes of this Plan. Performance Awards are Awards which are contingent upon the performance of all or a portion of the Company
and/or its subsidiaries and/or which are contingent upon the individual performance of a Participant. Performance Awards may be in the form of performance units, performance shares and such other forms of Performance Awards as the Committee shall
determine. The Committee shall determine the performance measurements and criteria for such Performance Awards. The Company may require that the stock certificates evidencing Performance Awards granted hereunder be held in the custody of the Company
until the restrictions thereon shall have lapsed, and that, as a condition of any award of Performance Awards, the Participant shall have delivered a stock power, endorsed in blank, relating to the Stock covered by such award. 
  
 5.5 Manager Awards. 
  
 (a) Grant of Compensatory Stock Award. As
consideration for the Manager’s role in raising capital for the Company, the Manager may be granted, upon the closing of the 144A Offering, an award of shares of Stock, the number of which the Committee may determine in its discretion, but not
to exceed 300,000 shares, subject to adjustment if the initial purchasers exercise their option to purchase additional shares to cover additional allotments, if any. 
  
 (b) Other Awards. The Committee may, from time to time, grant Awards to the Manager as the Committee
deems advisable in order to provide additional incentive to the Manager. 
  
 (c) Change in Control Provisions. Unless the Committee determines otherwise, all Awards granted to the Manager pursuant to this Plan shall become immediately and fully exercisable upon a Change in Control.

  

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 5.6 Automatic Non-Officer Director Awards. 
  
 (a) Non-Officer Director Restricted Stock Awards.
Subject to Section 5.6(b) hereof, each Non-Officer Director shall be granted 2,000 shares of Restricted Stock upon the later to occur of (i) the closing of the 144A Offering, or (ii) the date of the first Board meeting attended by such Non-Officer
Director. In addition, subject to Section 5.6(b) hereof, on the first business day after the first annual stockholders’ meeting of the Company in 2005, and on the first business day after each such annual meeting of the Company thereafter
during the term of the Plan, each Person who is a Non-Officer Director at the time of such meeting shall automatically be granted 2,000 shares of Restricted Stock (each initial restricted stock award and annual restricted stock award, a
“Non-Officer Director Restricted Stock Award”). A Non-Officer Director shall not transfer or otherwise dispose of his Non-Officer Director Restricted Stock Award prior to the lapsing of restrictions and unless he is a member of the Board
as of such date of lapse. One-half of the shares subject to each Non-Officer Director Restricted Stock Award shall not be subject to a risk of forfeiture on the date of grant, and the other one-half of the shares shall be subject to a risk of
forfeiture for one year from the date of grant. In addition, the Non-Officer Director shall not be able to sell, assign, transfer, pledge, hypothecate or otherwise dispose of any of the shares subject to each Non-Officer Director Restricted
Stock Award for one year from the date of grant. 
  
 (b) Stock Availability. In the event that the number of shares of Stock available for grant under the Plan is not sufficient to accommodate the awards of Non-Officer Director Restricted Stock, then the remaining shares of Stock
available for such automatic awards shall be granted to each Non-Officer Director, who is to receive such an award, on a pro-rata basis. No further grants shall be made until such time, if any, as additional shares of Stock become available for
grant under the Plan through action of the Board or the stockholders of the Company to increase the number of shares of Stock that may be issued under the Plan or through cancellation or expiration of Awards previously granted hereunder. 

 
 (c) Award Agreements. Each recipient of a
Non-Officer Director Restricted Stock Award shall enter into an Award Agreement with the Company, which agreement shall set forth, among other things, the number of shares subject to, and the transfer restrictions of, each Non-Officer Director
Restricted Stock Award, which provisions shall not be inconsistent with the terms of this Section 5.6 and Section 6.1 hereof. The Award Agreement with respect to such Non-Officer Director Restricted Stock Award shall also set forth such other terms
and conditions with respect to the award as the Committee may determine. 
  

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 5.7 Other Awards. The Committee may from time to time grant other Stock-based and non-Stock-based
Awards under the Plan, including without limitation those Awards pursuant to which shares of Stock are or may in the future be acquired, Awards denominated in shares of Stock, securities convertible into shares of Stock, phantom securities, dividend
equivalents, any other equity-based incentive award and cash. The Committee shall determine the terms and conditions of such other Stock, Stock-based and non-Stock-based Awards provided that such Awards shall not be inconsistent with the terms and
purposes of this Plan. 
  
 SECTION 6 
  
 AWARD AGREEMENTS 
  
 Each Award under this Plan shall be evidenced by an Award Agreement setting
forth the number of shares of Stock or other securities, and such other terms and conditions applicable to the Award (and not inconsistent with this Plan) as are determined by the Committee. 
  
 6.1 Terms of Award Agreements. Award Agreements shall include the
following terms: 
  
 (a) Term. The term of
each Award (as determined by the Committee); provided that, no Award shall be exercisable more than ten years after the date such Award is granted; 
  
 (b) Exercise Price. The exercise price per share of Stock purchasable under an Award (as determined
by the Committee in its sole discretion at the time of grant); provided that, the exercise price shall not be less than the par value of the shares of Stock; provided, further, that Awards intended to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the Code, shall not be less than 100% of the Fair Market Value of the share of Stock on such date; provided, further, with respect to grants of Stock
Options that are intended to comply with Section 25102(o) of the California Securities Law, the exercise price of such Stock Option shall not be less than 85% of the Fair Market Value of the share of Stock subject to such Stock Option on the date of
grant and, if the optionee is a 10% Stockholder, such exercise price shall be no less than 110% of the Fair Market Value of the share of Stock subject to such Stock Option on the date of grant; provided, further, with respect to
Awards, other than Stock Options, intended to comply with Section 25102(o) of the California Securities Law, the exercise price per share of Stock under an Award shall not be less than 85% of the Fair Market Value of 

  

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the share of Stock on the date of grant or on the date of exercise, or, if the Participant is a 10% Stockholder, such purchase price shall be no less than
100% of the Fair Market Value of the shares of Stock on the date of grant or on the date of exercise. 
  
 (c) Exercisability. Provisions regarding the exercisability of Awards (which shall be exercisable at such time or times and subject
to such terms and conditions as shall be determined by the Committee at or after grant); 
  
 (d) Method of Exercise. Provisions describing the method of exercising Awards; 
  
 (e) Termination of Employment or Service. Provisions
describing the treatment of an Award in the event of the retirement, disability, death or other termination of a Participant’s employment or service with the Company, including but not limited to, terms relating to the vesting, time for
exercise, forfeiture and cancellation of an Award in such circumstances; 
  
 (f) Rights as Stockholder. A provision that a Participant shall have no rights as a stockholder with respect to any securities covered by an Award until the date the Participant becomes the holder of record.
Except as provided in Sections 3.3 and 5.3 hereof, no adjustment shall be made for dividends or other rights, unless the Award Agreement specifically requires such adjustment, in which case, grants of dividend equivalents or similar rights shall not
be considered to be a grant of any other stockholder right; 
  
 (g) Nontransferability. A provision that, except under the laws of descent and distribution, as permitted by Rule 701 of the Securities Act, if applicable, or as permitted by the Administrator in its sole
discretion, the Participant shall not be permitted to sell, transfer, pledge or assign any Award, and all Awards shall be exercisable, during the Participant’s lifetime, only by the Participant; provided, however, that the
Participant shall be permitted to transfer one or more Stock Options to a trust controlled by the Participant during the Participant’s lifetime for estate planning purposes; and 
  
 (h) Other Terms. Such other terms as are necessary and appropriate to effectuate an Award to the
Participant, including but not limited to, (1) vesting provisions, (2) deferral elections, (3) any requirements for continued employment or service with the Company, (4) any other restrictions or conditions (including performance requirements) on
the Award and the method by which restrictions or conditions lapse, (5) effect on the Award of a Change in Control, (6) 

  

 14 

 
the right of the Company and such other persons as the Committee shall designate (“Designees”) to repurchase from a Participant, and such
Participant’s permitted transferees, all shares of Stock issued or issuable to such Participant in connection with an Award in the event of such Participant’s termination of employment or service, (7) rights of first refusal granted to the
Company and Designees, if any, (8) holdback and other registration right restrictions in the event of a public registration of any equity securities of the Company and (9) any other terms and conditions which the Committee shall deem necessary and
desirable. 
  
 6.2 Replacement, Substitution, and
Reloading. Award Agreements may also include provisions permitting the replacement or substitution of outstanding Awards or securities held by the Participant in order to exercise or realize rights under other Awards, or in exchange for the
grant of new Awards under similar or different terms, and for the grant of reload Stock Options upon exercise of outstanding Stock Options. 
  
 6.3 Surrender of Options. The Committee may require the voluntary surrender of all or a portion of any Stock Option or other Award granted under
the Plan as a condition precedent to a grant of a new Stock Option or Award. Subject to the provisions of the Plan, such new Stock Option or Award shall be exercisable at the price, during such period and on such other terms and conditions as are
specified by the Committee at the time the new Stock Option or Award is granted; provided that, should the Committee so require, the number of shares subject to such new Stock Option or Award shall not be greater than the number of
shares subject to the surrendered Stock Option or Award. 
  
 SECTION 7 
  
 LOANS 
  
 The Company or any parent or subsidiary of the Company may make loans
available to Stock Option holders in connection with the exercise of outstanding Stock Options granted under the Plan, as the Committee, in its discretion, may determine. Such loans shall (i) be evidenced by promissory notes entered into by the
Stock Option holders in favor of the Company or any parent or subsidiary of the Company, (ii) be subject to the terms and conditions set forth in this Section 7 and such other terms and conditions, not inconsistent with the Plan, as the Committee
shall determine, (iii) bear interest, if any, at such rate as the Committee shall determine, and (iv) be subject to Board approval (or to approval by the Committee to the extent the Board may delegate such authority). In no event may the principal

  

 15 

 
amount of any such loan exceed the sum of (x) the exercise price less the par value of the shares of Stock covered by the Stock Option, or portion thereof,
exercised by the holder, and (y) any federal, state, and local income tax attributable to such exercise. The initial term of the loan, the schedule of payments of principal and interest under the loan, the extent to which the loan is to be with or
without recourse against the holder with respect to principal or interest and the conditions upon which the loan will become payable in the event of the holder’s termination of employment shall be determined by the Committee. Unless the
Committee determines otherwise, when a loan is made, shares of Stock having a Fair Market Value at least equal to the principal amount of the loan shall be pledged by the holder to the Company as security for payment of the unpaid balance of the
loan, and such pledge shall be evidenced by a pledge agreement, the terms of which shall be determined by the Committee, in its discretion; provided that, each loan shall comply with all applicable laws, regulations and rules of the
Board of Governors of the Federal Reserve System and of the U.S. Securities and Exchange Commission and any other governmental agency having jurisdiction. 
  
 SECTION 8 
  
 AMENDMENT AND TERMINATION 
  
 The Board may at any time and from time-to-time alter, amend, suspend or terminate the Plan in whole or in part; provided that, no amendment that requires stockholder approval in order for the Plan to
comply with a rule or regulation deemed applicable by the Committee shall be effective unless the same shall be approved by the requisite vote of the stockholders of the Company entitled to vote thereon. Notwithstanding the foregoing, no amendment
shall affect adversely any of the rights of any Participant, without such Participant’s consent, under any Award or Loan theretofore granted under the Plan. 
  

 16 

  
 SECTION 9 

 
 UNFUNDED STATUS OF PLAN 
  
 The Plan is intended to constitute an “unfunded” plan for incentive
compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company. 
  
 SECTION 10 
  
 GENERAL PROVISIONS 
  
 10.1 Securities Laws Compliance. Shares of Stock shall not be issued
pursuant to the exercise of any Award granted hereunder unless the exercise of such Award and the issuance and delivery of such shares of Stock pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the
Securities Act, the Exchange Act and the requirements of any stock exchange upon which the Stock may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. The Plan is a compensatory
benefit plan within the meaning of Rule 701 under the Securities Act. The issuance of shares of Stock underlying Awards to natural Persons in accordance with the Plan is intended to qualify for the exemption from registration under the Securities
Act provided by Rule 701. Nothing contained herein shall be construed to prohibit the Company from relying on any other exemption from registration to which it may be entitled under the Securities Act in connection with the issuance of shares of
Stock underlying Awards in accordance with the Plan. To the extent that California Securities Law applies to any Award made under the Plan, the Plan is intended to also comply with Section 25102(o) or other exemption under the California Securities
Law. 
  
 10.2 Certificate Legends. The Committee may
require each person purchasing shares pursuant to a Stock Option to represent to and agree with the Company in writing that such person is acquiring the shares of Stock subject thereto without a view to distribution thereof. The certificates for
such Stock may include any legend which the Committee deems appropriate to reflect any restrictions on transfer. 
  

 17 

 10.3 Transfer Restrictions. All certificates for shares of Stock delivered under the Plan shall be
subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Commission, any stock exchange upon which the Stock is then listed, and any applicable
federal or state securities law, and the Committee may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. 
  
 10.4 Company Actions; No Right to Employment. Nothing contained in the Plan shall prevent the Board from adopting
other or additional compensation arrangements, subject to stockholder approval if such approval is necessary and desirable; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan shall
not confer upon any employee, consultant or advisor of the Company any right to continued employment or service with the Company, as the case may be, nor shall it interfere in any way with the right of the Company to terminate the employment or
service of any of its employees, consultants or advisors at any time. 
  
 10.5 Payment of Taxes. Each Participant shall, no later than the date as of which the value of an Award first becomes includible in the gross income of the Participant for federal income tax purposes, pay to the Company, or make
arrangements satisfactory to the Committee regarding payment of, any federal, state, or local taxes of any kind required by law to be withheld with respect to the Award. The obligations of the Company under the Plan shall be conditional on the
making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. 
  
 10.6 Voting Rights. Each To the extent required by the Section
25102(o) of the California Securities Law, shares of Stock and similar equity securities of the Company shall carry equal voting rights on all matters where such vote is permitted by applicable law in accordance with Section 260.140.1 of Title 10 of
the California Code of Regulations. 
  
 10.7 Information
Rights. To the extent required by Section 25102(o) of the California Securities Law, Participants shall be provided with financial information of the Company at least annually in accordance with Section 260.140.46 of Title 10 of the California
Code of Regulations. 
  

 18 

  
 SECTION 11 

 
 EFFECTIVE DATE OF PLAN 
  
 The Board adopted the Plan on May 27, 2004, and the stockholders of the
Company approved the Plan on May 27, 2004. The Plan became effective on May 27, 2004 (the “Effective Date”). 
  
 SECTION 12 
  
 TERM OF PLAN 
  
 No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the Effective Date, but Awards theretofore granted may extend beyond that date. 
  

 19Exhibit 10.3

  
 Exhibit 10.3

  
 JER INVESTORS TRUST INC. 
  
 JER Investors Trust Inc. Nonqualified Stock Option and Incentive Award Plan

  
 Restricted Stock Agreement (FORM)1 
  
 This RESTRICTED STOCK AGREEMENT (this “Agreement”), dated as of the      day of
                    , 2004 (the “Date of Grant”), is entered into by and between JER Investors Trust Inc., a Maryland corporation
(the “Company”), and [                    ] (the “Grantee” and, together with the Company, the “Parties”).

  
 RECITALS 
  
 A. The Company is granting to Grantee restricted shares of the Company’s
common stock, par value $0.01 per share (the “Common Stock”), under the Company’s Nonqualified Stock Option and Incentive Award Plan (the “Plan”) on the terms and conditions set forth herein. 
  
 Any capitalized terms not defined herein shall have their respective meanings
set forth in the Plan. 
  
 NOW, THEREFORE, the Parties hereto
agree as follows: 
  
 1. Grant of Restricted Stock and Escrow
of Restricted Stock. 
  
 (a) Grant of
Restricted Stock. Effective as of the Date of Grant, the Company hereby agrees to grant to the Grantee, subject to the terms hereof, [            ] shares of Common Stock (the
“Restricted Stock”). 
  
 (b) Escrow
of Restricted Stock. 
  
 (i) To insure the
availability for delivery of Grantee’s Restricted Stock in the event of termination of Grantee’s [employment with the Company or the Company’s affiliate] [service to the Company] prior to the expiration of the Restricted Period (as
defined in Section 2(b) below), Grantee hereby appoints the Secretary of the Company, or any other person designated by the Company as escrow agent, as its attorney-in-fact to, assign and transfer unto the Company such Restricted Stock, if any, upon
execution of this Agreement, deliver 

	1	This form is to be used for restricted stock grants to all grantees, other than for automatic restricted stock grants to non-officer/non-employee directors of the
Company. A separate restricted stock agreement has been prepared for such automatic grants. 

  

 1 

 and deposit with the Secretary of the Company, or such other person designated by the
Company, the share certificates representing the Restricted Stock, together with the stock assignment duly endorsed in blank, attached hereto as Exhibit A-1. The Restricted Stock and stock assignment shall be held by the Secretary in
escrow, pursuant to the Joint Escrow Instructions of the Company and Grantee attached as Exhibit A-2 hereto, until such time the Restricted Period has lapsed with respect to the Restricted Stock, or until such time as this Agreement no longer
is in effect. As a further condition to the Company’s obligations under this Agreement, the spouse of the Grantee, if any, shall execute and deliver to the Company the Consent of Spouse attached hereto as Exhibit A-3. Once the Restricted
Period has lapsed with respect to the Restricted Stock, the escrow agent shall promptly deliver to the Grantee the certificate or certificates representing such shares of Common Stock in the escrow agent’s possession belonging to the Grantee in
accordance with the terms of the Joint Escrow Instructions, and the escrow agent shall be discharged of all further obligations hereunder; provided, however, that the escrow agent shall nevertheless retain such certificate or certificates if so
required pursuant to other restrictions imposed pursuant to this Agreement. 
  
 (ii) The Company or its designee shall not be liable for any act it may do or omit to do with respect to holding the shares of Restricted Stock in escrow and while acting in good faith and in the exercise of its
judgment. 
  
 (iii) Any purported transfer or
sale of the shares of Common Stock shall be subject to restrictions on transfer imposed by any applicable state and federal securities laws. Any transferee shall hold such shares of Common Stock subject to all the provisions hereof and shall
acknowledge the same by signing a copy of this Agreement. 
  
 2.
Restrictions and Restricted Period. 
  
 (a) Restrictions. Shares of Restricted Stock granted hereunder may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of prior to the expiration of the transferability restriction period and shall be
subject to a risk of forfeiture until the lapse of the Restricted Period (as defined below). 
  
 (b) Restricted Period. [Describe period that the shares are subject to risk of forfeiture (or the vesting schedule). The foregoing
period shall be referred to as the “Restricted Period.”] Subject to Section 4 of this Agreement, the shares of Restricted Stock shall become fully and freely transferable (provided that, such transfer is otherwise in accordance with
federal and state securities laws) and non-forfeitable upon the expiration of the Restricted Period provided that Grantee is [employed by the Company or the Company’s affiliate][in a service relationship with the Company] on such date.
Notwithstanding anything to the contrary, the release of the shares of Restricted Stock hereunder shall be conditioned upon Grantee making adequate provision for federal, state or other tax withholding obligations, if any, 

  

 2 

 
which arise upon the release of the shares from the Restricted Period, whether by withholding, direct payment to the Company or otherwise. 
  
 (c) [Transferability restriction period. If
applicable, describe the period during which the shares are subject to restrictions on transferability.] 
  
 3. Rights of a Stockholder. From and after the Date of Grant and for so long as the Restricted Stock is held by or for the benefit of the Grantee,
the Grantee shall have all the rights of a stockholder of the Company with respect to the Restricted Stock, including, but not limited to, the right to receive dividends and the right to vote such shares. 
  
 4. Cessation of [Employment] [ Service Relationship]. If the
Grantee’s [employment with the Company or the Company’s affiliate] [service relationship with the Company] terminates for any reason prior to the expiration of the Restricted Period, then the Restricted Stock and any and all accrued but
unpaid dividends that are, at that time subject to restrictions set forth herein, shall be forfeited to the Company, and neither the Grantee nor any of his successors, heirs, assigns, or personal representatives shall thereafter have any further
rights or interests in such shares of Restricted Stock or certificates. 
  
 5. Certificates. Restricted Stock granted herein may be evidence in such manner as the Board shall determine. If certificates representing Restricted Stock are registered in the name of the Grantee, then the Company shall retain
physical possession of the certificate. 
  
 6. Legends. All
certificates representing any of the shares of Restricted Stock subject to the provisions of this Agreement shall have endorsed thereon the following legend: 
  

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND
THE HOLDER OF THE SHARES, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.” 
  
 7. Investment Representation. The Grantee hereby represents and warrants to the Company that the Grantee, by reason of the Grantee’s business
or financial experience (or the business or financial experience of the Grantee’s professional advisors who are unaffiliated with and who are not compensated by the Company or any affiliate or selling agent of the Company, directly or
indirectly), has the capacity to protect the Grantee’s own interests in connection with the transactions contemplated under this Agreement. 
  
 8. Dispute Resolution. The Parties agree to use their reasonable best efforts to resolve any dispute regarding this agreement through good faith

  

 3 

 
negotiations. A Party hereto must give written notice of the substance of any dispute regarding this Agreement to any other party to whom such dispute
pertains. Any such dispute that cannot be resolved within 30 calendar days of receipt of the required notice (or such other time period to which the Parties may agree) will be submitted to an arbitrator selected by mutual agreement of the Parties.
In the event that, within 50 days of the receipt of the required written notice, a single arbitrator has not been selected by mutual agreement of the Parties, a panel of three arbitrators will be selected. Each Party to the dispute will select one
arbitrator and the two selected arbitrators will select one additional arbitrator. Except as the Parties to the dispute may otherwise agree, such arbitration will be conducted in accordance with the then-existing rules for Commercial Arbitration of
the American Arbitration Association. The decision of the arbitrator or arbitrators, or of a majority thereof, as the case may be, shall be made in writing and will be final and binding upon the Parties hereto as to the questions submitted. The
Parties will abide by and comply with such decision, which may be entered as an enforceable judgment in a court of competent jurisdiction; provided, however, the arbitrator or arbitrators, as the case may be, shall not be empowered to award punitive
damages. Unless the decision of the arbitrator or arbitrators, as the case may be, provides for a different allocation of costs and expenses determined by the arbitrators to be equitable under the circumstances, the prevailing Party or Parties in
any arbitration under this agreement will be entitled to recover all reasonable fees (including, but not limited to, attorneys’ fees and expert witness fees) and expenses incurred. 
  
 9. Market Stand-Off. In connection with any underwritten public offering by the Company of its equity securities
pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, for such period as the Company or its underwriters may request (such period not to exceed 180 days following the date of the applicable offering),
the Grantee shall not, directly or indirectly, sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise
dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any shares of Restricted Stock subject to this Agreement without the prior written consent of the Company or its underwriters. 
  
 10. Tax Consequences. Set forth below is a brief summary as of the
Date of Grant of certain United States federal tax consequences of the award of the Restricted Stock. THIS SUMMARY DOES NOT ADDRESS SPECIFIC STATE, LOCAL OR FOREIGN TAX CONSEQUENCES THAT MAY BE APPLICABLE TO GRANTEE. GRANTEE UNDERSTANDS THAT THIS
SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. 
  
 The Grantee shall recognize ordinary income at the time or times the restrictions lapse with respect to the shares of Restricted Stock that have been 

  

 4 

 
released from the Restricted Period in an amount equal to the the fair market value of such shares on each such date, and the Company shall be required to
collect all the applicable withholding taxes with respect to such income. The obligations of the Company under the Plan are conditioned on your making arrangements for the payment of any such taxes. 
  
 11. Section 83(b) Election. The Grantee hereby acknowledges that he
has been informed that, with respect to the grant of Restricted Stock, an election may be filed by the Grantee with the Internal Revenue Service, within 30 days of the Date of Grant, electing pursuant to Section 83(b) of the Internal Revenue Code of
1986, as amended (the “Code”), to be taxed currently on the fair market value of the Restricted Stock on the Date of Grant. 
  
 THE GRANTEE ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b) OF
THE CODE, EVEN IF THE GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO MAKE THIS FILING ON THE GRANTEE’S BEHALF. 
  
 BY SIGNING THIS AGREEMENT, THE GRANTEE REPRESENTS THAT HE HAS REVIEWED WITH HIS OWN TAX ADVISORS THE FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THAT HE IS RELYING SOLELY ON SUCH ADVISORS AND NOT ON ANY STATEMENTS OR REPRESENTATIONS OF THE COMPANY OR ANY OF ITS AGENTS. THE GRANTEE UNDERSTANDS AND AGREES THAT HE (AND NOT THE COMPANY) SHALL
BE RESPONSIBLE FOR ANY TAX LIABILITY THAT MAY ARISE AS A RESULT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 
  
 12. Termination of this Agreement. Upon termination of this Agreement, all rights of the Grantee hereunder shall cease. 
  
 13. Miscellaneous. 
  
 (a) Notices. All notices and other communications
under this Agreement shall be in writing and shall be given by facsimile or first class mail, certified or registered with return receipt requested, and shall be deemed to have been duly given three days after mailing or 24 hours after transmission
by facsimile to the respective Parties named below: 
  

			
	If to the Company, to:
		
	 	  	JER Investors Trust Inc.
	 	  	1650 Tysons Blvd., Suite 1600
	 	  	 McLean, VA 22102
 Attn: Board of
Directors
 Telephone:
 Facsimile:
                    ]

	  
	  
	  

  

 5 

			
	with a copy (which shall not constitute notice) to:
		
	 	  	 Skadden, Arps, Slate, Meagher & Flom LLP
 4 Times
Square
 New York, New York 10036-6522
 Attention: David J.
Goldschmidt, Esq.
 Telephone: (212) 735-3000
 Facsimile: (212)
735-2000

	 
	If to the Grantee:	  	 [name]
 [address]
 Telephone:
 Facsimile:

  
 Either party hereto
may change such party’s address for notices by notice duly given pursuant hereto. 
  
 (b) Failure to Enforce Not a Waiver. The failure of the Company or the Grantee to enforce at any time any provision of this
Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof. 
  
 (c) Governing Law. This Agreement shall be governed by and construed according to the laws of the State of Maryland without giving
effect to the choice of law principles thereof. 
  
 (d) Amendments. This Agreement may be amended or modified at any time by an instrument in writing signed by the Parties. 
  
 (e) [Agreement Not a Contract of Employment. Neither the grant of Restricted Stock, this Agreement nor any other action taken in
connection herewith shall constitute or be evidence of any agreement or understanding, express or implied, that the Grantee is an employee of the Company or any affiliate of the Company.]2 
  
 (f) Entire Agreement; Plan Controls. This Agreement and the Plan contain the entire understanding and agreement of the Parties
concerning the 

	2	Leave in only if the Grantee is an employee of the Company or an affiliate of the Company. 

  

 6 

 subject matter hereof, and supersede all earlier negotiations and understandings, written
or oral, between the Parties with respect thereto. This Agreement is made under and subject to the provisions of the Plan, and all of the provisions of the Plan are hereby incorporated by reference into this Agreement. In the event of any conflict
between the provisions of this Agreement and the provisions of the Plan, the provisions of the Plan shall govern. By signing this Agreement, the Grantee confirms that he has received a copy of the Plan and has had an opportunity to review the
contents thereof. 
  
 (g) Captions. The
captions and headings of the sections and subsections of this Agreement are included for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 (h) Counterparts. This Agreement may be executed in counterparts, each of which when signed by the
Company or the Grantee will be deemed an original and all of which together will be deemed the same agreement. 
  
 (i) Assignment. The Company may assign its rights and delegate its duties under this Agreement. If any such assignment or
delegation requires consent of any state securities authorities, the parties agree to cooperate in requesting such consent. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on
transfer herein set forth, be binding upon the Grantee, his heirs, executors, administrators, successors and assigns. 
  
 (j) Severability. This Agreement will be severable, and the invalidity or unenforceability of any term or provision hereof will not
affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any invalid or unenforceable term or provision, the Parties intend that there be added as a part of this Agreement a valid and
enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible. 
  

 7 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year first above written.

  

					
	JER INVESTORS TRUST INC.
		
	By	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 The undersigned hereby accepts and
agrees to all the terms and provisions of the foregoing Agreement. 
  

	
	
	  
	[name of Grantee]

  

					
		
	 	 	 
	 	 	 Number of Shares

		
	 	 	 
	 	 	 
	 	 	 Address

  

 8 

  
 EXHIBIT A-1 
  
 ASSIGNMENT SEPARATE FROM CERTIFICATE 
  
 FOR VALUE RECEIVED,
[                    ] (the “Grantee”) hereby assigns and transfers unto JER Investors Trust Inc., a Maryland corporation (the
“Company”), (                    ) shares of Company’s common stock, par value $0.01 per share (the “Common Stock”),
standing in [his][its] name on the books of said corporation represented by Certificate No.              herewith and does hereby irrevocably constitute and appoint
                                 to transfer the said stock on the books of the
within named corporation with full power of substitution in the premises. 
  
 This Assignment Separate from Certificate may be used only in accordance with the Restricted Stock Agreement (the “Agreement”) of the Company and the undersigned dated
[                    ]. 
  

			
	Dated:                    ,     	  	Signature:                    

  
 INSTRUCTIONS: Please do not fill in
any blanks other than the signature line. The purpose of this Assignment Separate from Certificate is to return the shares to the Company in the event the Grantee forfeits any of such shares as set forth in the Agreement, without requiring
additional signatures on the part of the Grantee. This Assignment Separate from Certificate must be delivered to the Company with the above Certificate No.             . 

 

  
 EXHIBIT A-2

  
 JOINT ESCROW INSTRUCTIONS 
  
                     , 20     
  
 JER Investors Trust Inc. 
 1650 Tysons Blvd.,
Suite 1600 
 McLean, VA 22102 
  
 Attention: [Secretary] 
  
 Dear                     : 
  
 As Escrow Agent for both JER Investors Trust Inc., a Maryland corporation (the “Company”), and
[                    ] (“Grantee”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”), you
are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Restricted Stock Agreement between the Company and Grantee, dated
                    , 2004 (the “Agreement”), in accordance with the following instructions: 
  

	1.	If the Grantee’s [employment with the Company or the Company’s affiliate] [service relationship with the Company] terminates for any reason prior to the expiration of the
Restricted Period (as defined in the Agreement), the Company shall give to Grantee and to you a written notice specifying the number of shares of Common Stock (the “Shares”) that the Grantee shall forfeit pursuant to Section 4 of the
Agreement and the time for a closing hereunder at the principal office of the Company. Grantee and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of said
notice. 

  

	2.	At the closing, you are directed (a) to date the Assignment Separate From Certificate necessary for the transfer in question, (b) to fill in the number of Shares being transferred,
and (c) to deliver same, together with the certificate evidencing the Shares to be transferred, to the Company or its assignee. 

  

	3.	 Grantee hereby irrevocably authorizes the Company to deposit with you any certificates evidencing the Shares to be held by you hereunder and any additions and
substitutions to said Shares as set forth in the Agreement. Grantee does hereby irrevocably constitute and appoint you as Grantee’s attorney-in-fact and agent for the term of this escrow to execute with respect to such Shares all documents
necessary or appropriate to make such Shares negotiable and to complete any transaction herein contemplated, including, but not limited to, the filing with any applicable state blue sky authority of any required applications for consent to, or
notice of transfer of, the Shares. 

  

	 	 
Subject to the provisions of this Section 3, Grantee shall exercise all rights and privileges of a stockholder of the Company while the stock is being held
by you. 

  

	4.	Upon written request of the Grantee, but not more than once per calendar year, you will deliver to Grantee a certificate or certificates representing the aggregate number of Shares
that are not then subject to the Restricted Period. Within 120 days after Grantee’s termination of employment or service with the Company, you will deliver to Grantee, or Grantee’s representative, as the case may be, a certificate or
certificates representing the aggregate number of Shares held or issued pursuant to the Agreement and not subject to the Restricted Period. 

  

	5.	If at the time of termination of this escrow you should have in your possession any documents, securities, or other property belonging to Grantee, you shall deliver all of the same
to Grantee and shall be discharged of all further obligations hereunder. 

  

	6.	Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto. 

  

	7.	You shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any
instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for
Grantee while acting in good faith, and any act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of such good faith. 

  

	8.	You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, excepting only orders or process of
courts of law and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case you obey or comply with any such order, judgment or decree, you shall not be liable to any of the parties hereto or to any
other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

  

	9.	You shall not be liable in any respect on account of the identity, authorities or rights of the parties executing or delivering or purporting to execute or deliver the Agreement or
any documents or papers deposited or called for hereunder. 

  

 A-2 

	10.	You shall not be liable for the outlawing of any rights under the Statute of Limitations with respect to these Joint Escrow Instructions or any documents deposited with you.

  

	11.	You shall be entitled to employ such legal counsel and other experts as you may deem necessary and proper to advise you in connection with your obligations hereunder, may rely upon
the advice of such counsel, and may pay such counsel reasonable compensation therefor. 

  

	12.	Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an officer or agent of the Company or if you shall resign by written notice to each party.
In the event of any such termination, the Company shall appoint a successor Escrow Agent. 

  

	13.	If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join
in furnishing such instruments. 

  

	14.	It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the securities held by you hereunder, you are
authorized and directed to retain in your possession without liability to anyone all or any part of said securities until such disputes shall have been settled either by mutual written agreement of the parties concerned or by a final order decree or
judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to institute or defend any such proceedings. 

  

	15.	Notices. All notices and other communications under this Joint Escrow Instructions shall be in writing and shall be given by facsimile or first class mail, certified or
registered with return receipt requested, and shall be deemed to have been duly given three days after mailing or 24 hours after transmission by facsimile to the respective parties named below at the following addresses or at such other addresses as
a party may designate by ten day’s advance written notice to each of the other parties hereto: 

  

 A-3 

							
	If to the Company, to:
		
	 	 	 JER I nvestors Trust Inc.
 1650 Tysons
Blvd., Suite 1600
 McLean, VA 22102
 Attn: Board of
Directors
 Facsimile:
                                

	 	  	 	  	 
	with a copy (which shall not constitute notice) to:
		
	 	 	 Skadden, Arps, Slate, Meagher & Flom LLP
 4 Times Square
 New York, New York 10036-6522
 Attention: David J. Goldschmidt, Esq.
 Telephone: (212) 735-3000
 Facsimile: (212) 735-2000

	 	  	 	  	 
				
	If to the Grantee:	 	 	  	 	  	 
				
	 	 	 	  	 	  	 
				
	 	 	 	  	 	  	 

			
	 
	If to the Escrow Agent:
		
	 	  	 [Address]
 Attn: [Secretary]
 Facsimile:                     

  

	16.	By signing these Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Agreement.

  

	17.	This instrument shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. 

  

	18.	These Joint Escrow Instructions shall be governed by the internal substantive laws, but not the choice of law rules, of the State of Maryland. 

  

 A-4 

									
	 GRANTEE:
	 	 	 	 JER INVESTORS TRUST INC.

			
	 	 	 	 	 
	 Signature
	 	 	 	By	 	 
			
	 	 	 	 	 
	 Print Name
	 	 	 	 Title
	 	 
				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
	 Residence Address
	 	 	 	 	 	 
				
	 ESCROW AGENT
	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
	 Corporate Secretary
	 	 	 	 	 	 

  

 A-5 

  
 EXHIBIT A-3

  
 CONSENT OF SPOUSE 
  
 I,
                    , spouse of
[                    ], have read and hereby approve the Restricted Stock Agreement by and between
[                    ] and JER Investors Trust Inc. (the “Company”), dated
                     (the “Agreement”). In consideration of the granting of the right to my spouse to receive shares of Company
common stock, par value $0.01 per share (“Common Stock”), as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact with respect to the exercise of any rights under the Agreement and agree to be bound by the
provisions of the Agreement insofar as I may have any rights in said Agreement or any shares of Common Stock issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our
residence as of the date of the signing of the foregoing Agreement. 
  

			
	Dated:
                        ,    	  	Signature:                     

  

 A-6

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