Document:

Exhibit

Exhibit 4.3

CIM INCOME NAV, INC.
FORM OF SECOND AMENDED AND RESTATED MULTIPLE CLASS PLAN
Effective as of February [   ], 2020
		
	I.
	Introduction

As required by Section 5.2.5 of CIM Income NAV, Inc.’s (the “Corporation”) Second Articles of Amendment and Restatement, as amended (“Charter”), and effective as of the date set forth above, the Corporation’s board of directors (the “Board”) adopted this Amended and Restated Multiple Class Plan (the “Plan”) to establish certain features of the Class D Shares, the Class T Shares, the Class S Shares and the Class I Shares.  Each capitalized term in this Plan not otherwise defined herein has the same meaning as that set forth in the Charter.
In addition to the terms of the Class D Shares, the Class T Shares, the Class S Shares and the Class I Shares described in the Charter, each class of Common Shares shall have the features described below.
		
	II.
	Multiple Class Structure

		
	A.
	Commissions and Fees Payable to the Dealer Manager and Financial Intermediaries

		
	1.
	Upfront Selling Commissions.  

		
	a.
	Each Class T Share issued in an Offering may be subject to a Selling Commission of up to 3.0% of the transaction price of each Class T Share sold in the primary offering.  

		
	b.
	Each Class S Share issued in an Offering may be subject to a Selling Commission of up to 3.5% of the transaction price of each Class S Share sold in the primary offering.

		
	c.
	Stockholders will not pay a Selling Commission on Class D Shares, Class T Shares, Class S Shares or Class I Shares when purchasing shares of any such class pursuant to the Corporation’s distribution reinvestment plan.

		
	d.
	No Class D Share or Class I Share sold in an Offering shall be subject to a Selling Commission.

		
	2.
	Upfront Dealer Manager Fees.  With respect to each Class T Share, CCO Capital, LLC (the “Dealer Manager”) may be entitled to an upfront fee (as described in the Corporation’s Prospectus, the “Dealer Manager Fee”) of 0.5% of the transaction price per Class T Share.  The sum of the Selling Commission and the Dealer Manager Fee with respect to the Class T Shares will not exceed 3.5% of the transaction price. No Class D Share, Class S Share or Class I Share sold in an Offering shall be subject to a Dealer Manager Fee. Stockholders will not pay a Dealer Manager Fee with respect to the Class D Shares, Class T Shares, Class S Shares or Class I Shares when purchasing shares of any such class pursuant to the Corporation’s distribution reinvestment plan. 

		
	3.
	Annual Stockholder Servicing Fees.  

		
	a.
	With respect to the Class D Shares, the Dealer Manager may be entitled to a stockholder servicing fee (as described in the Corporation’s Prospectus, the “Stockholder Servicing Fee”) equal to 0.25% per annum of the aggregate Net Asset Value per Class D Share.

		
	b.
	With respect to the Class T Shares, the Dealer Manager may be entitled to a Stockholder Servicing Fee equal to 0.85% per annum of the aggregate NAV of the Corporation’s outstanding Class T Shares, consisting of an advisor Stockholder Servicing Fee of 0.65% per annum, and a Stockholder Servicing Fee of 0.20% per annum, of the aggregate Net Asset Value per Class T Share.

		
	c.
	With respect to the Class S Shares, the Dealer Manager may be entitled to a Stockholder Servicing Fee equal to 0.85% per annum of the aggregate Net Asset Value per Class S Share.

		
	d.
	No Class I Share sold in an Offering shall be subject to a Stockholder Servicing Fee. 

		
	4.
	Fee Limit.  The Dealer Manager will not be entitled to any additional Stockholder Servicing Fees with respect to any Class D Shares, Class T Shares and Class S Shares held in a stockholder’s account at the end of the month in which the Dealer Manager, in conjunction with the transfer agent, determines that total Selling Commissions, Dealer Manager Fees, and Stockholder Servicing Fees paid with respect to such Common Shares would exceed, 

in the aggregate, 8.75% (or, in the case of Shares sold through certain participating broker-dealers, a lower limit as set forth in any applicable agreement between the Dealer Manager and a participating broker-dealer) of the gross proceeds from the sale of such shares (including the gross proceeds of any shares issued under the Company’s distribution reinvestment plan with respect thereto).
		
	5.
	Fees Prior to Reclassification.  For sales of the Corporation’s Class W shares, Class A shares and Class I shares prior to the reclassification of such shares on November 27, 2018, for which the Corporation previously agreed to pay the Dealer Manager (i) an ongoing dealer manager fee equal to 0.55% per annum of the aggregate NAV of the outstanding Class W shares, (ii) an ongoing dealer manager fee equal to 0.55% per annum of the aggregate NAV of outstanding Class A shares and a distribution fee equal to 0.50% per annum of the aggregate NAV of the outstanding Class A shares and (iii) an ongoing dealer manager fee equal to 0.25% per annum of the aggregate NAV of the outstanding Class I shares, pursuant to the Second Amended and Restated Dealer Manager Agreement dated as of February 10, 2017 (the “Prior Agreement”), the Corporation and the Dealer Manager agree that the stockholder servicing fees payable to the Dealer Manager with respect to the Shares under the Fourth Amended and Restated Dealer Manager Agreement dated as of the date hereof shall fully satisfy the Corporation’s obligations with respect to the payment of ongoing fees to the Dealer Manager under the Prior Agreement. For the avoidance of doubt, if such stockholder servicing fees do not cover the full amount of the Company’s obligations with respect to the payment of ongoing fees to the Dealer Manager under the Prior Agreement, then the Dealer Manager will not be entitled to any additional compensation in respect of any such fees payable to the Dealer Manager under the Prior Agreement.

		
	B.
	Expense Allocation

		
	1.
	General.  Subject to Part II.B.2. hereof, the officers of the Corporation, or a person duly appointed by the officers of the Corporation, will track all expenses of the Corporation and allocate expenses to a specific class of Common Shares if (i) an expense is actually incurred in a different amount by such class of Common Shares or (ii) such class of Common Shares receives services of a different kind or to a different degree than the other classes of Common Shares (the expenses described in clauses (i) and (ii) shall hereinafter be referred to as “Class Specific Expenses”).  For example, certain organizational and offering expense reimbursements that are Class Specific Expenses will be allocated to the class of Common Shares that incurred such expense.  Such expenses include, but are not limited to, costs to print and mail a prospectus regarding a class of Common Shares, legal costs to authorize a class of Common Shares and legal costs to register a class of Common Shares.  Class Specific Expenses may also include fees and expenses for services for a class of Common Shares such as account setup, maintenance and recordkeeping.  All other expenses that are not Class Specific Expenses will be allocated to each class of Common Shares as described below; provided, however, that no expense not expressly provided for herein shall be treated as a Class Specific Expense if the officers of the Corporation, or a person duly appointed by the officers of the Corporation, determines after consultation with the Corporation’s tax advisors that such treatment as a Class Specific Expense could jeopardize the Corporation’s ability to qualify as a REIT.  In no event shall Class Specific Expenses include expenses described in Part II.B.2. hereof.

		
	2.
	Non-Class Specific Expenses.

		
	a.
	Non-Class Specific organization and offering expense reimbursements.  Organizational and offering expense reimbursements that are not Class Specific Expenses will be allocated to each class of Common Shares on a pro rata basis based on the net asset value attributable to each class of Common Shares.  Such expenses include, but are not limited to, costs to advertise an Offering, costs to print and mail marketing materials, and costs to sponsor broker-dealer educational seminars.

		
	b.
	Advisory fee.  The amount of advisory fee accrued daily, and payable monthly in arrears, to each class of Common Shares will be determined by applying the advisory fee rate to the Net Asset Value of each class of Common Shares.

		
	c.
	Performance fee.  The Advisor will be entitled to a performance fee calculated on the basis of the total return to Stockholders of each class of Common Shares, payable annually in arrears, such that for any year in which the total return on the Stockholders’ capital, which will be calculated separately for each class of Common Shares, exceeds 5.00% per annum, the Advisor will be entitled to 12.50% of the amount by which such total return exceeds any un-recouped total return in previous years, and as more fully described in the Second Amended and Restated Advisory Agreement dated November 27, 2018 by and among the Corporation, CIM Income NAV Operating Partnership, LP and the Advisor. The amount of the performance fee allocated to a 

class of Common Shares will be the amount of the performance fee calculated for such class of Common Shares described in the previous sentence.
		
	d.
	Acquisition and operating expense reimbursements.  All acquisition and operating expense reimbursements, or other fees and expenses related to the management of the Corporation’s assets, will be allocated to each class of Common Shares on a pro rata basis based on the Net Asset Value attributable to each class of Common Shares. 

		
	3.
	Other expenses.  The Corporation may incur other expenses (the “Other Expenses”) not specifically addressed herein.  In such cases, the officers of the Corporation, or a person duly appointed by the officers of the Corporation, will allocate Other Expenses to a specific class of Common Shares if such expenses are Class Specific Expenses.  Class Specific Expenses will not include advisory or custodial fees or other fees and expenses related to the management of the Corporation’s assets.  Other Expenses that are not Class Specific Expenses will be allocated to each class of Common Shares on a pro rata basis based on the Net Asset Value attributable to each class of Common Shares.

		
	4.
	Timing of Allocation.  Expenses shall be allocated to each class of Common Shares at the same time as all other classes of Common Shares.

III.Amendments
The Plan may not be materially amended unless approved by a majority of the entire Board, including a majority of the Independent Directors.sbph-ex45_479.htm

Exhibit 4.5

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF 

THE SECURITIES EXCHANGE ACT OF 1934

 

As of February 14, 2020, Spring Bank Pharmaceuticals, Inc. (“Spring Bank,” “we,” “us” or the “Company”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”):  Common Stock, $0.001 par value per share (“Common Stock”) . The Company’s securities registered under Section 12(b) of the Exchange Act are listed on The Nasdaq Capital Market.

 

DESCRIPTION OF COMMON STOCK

 

We are authorized to issue 200,000,000 shares of common stock, par value $0.0001 per share. 

 

The following summary of certain provisions of our common stock does not purport to be complete. You should refer to our restated certificate of incorporation and our restated bylaws, which are included as exhibits 3.1 and 3.2, respectively, to our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (this “Form 10-K”). The summary below is also qualified by provisions of applicable law.

General

The holders of common stock are entitled to one vote per share on all matters submitted to a vote of our stockholders and do not have cumulative voting rights. An election of directors by our stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to vote on the election. Other matters shall be decided by the affirmative vote of our stockholders having a majority in voting power of the votes cast by the stockholders present or represented and voting on such matter, except as otherwise disclosed below.

Our bylaws provide that the holders of a majority of the outstanding shares of our common stock, if present in person or by proxy, represent a quorum for the transaction of business at stockholders meetings, except where a separate vote by a class of capital stock is required, the holders of a majority in voting power of such class, if present by remote communication or by proxy, represent a quorum for such matter. Subject to preferences that may be applicable to any preferred stock outstanding at the time, the holders of outstanding shares of common stock are entitled to receive ratably any dividends declared by our board of directors. In the event of our liquidation, dissolution or winding up, holders of our common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preference of any then-outstanding shares of preferred stock. Holders of our common stock do not have preemptive or conversion rights, or other subscription rights. There are no redemption provisions applicable to the common stock.

Stock Exchange Listing

Our common stock is listed for quotation on The NASDAQ Capital Market under the symbol “SBPH.”

 

 

CERTAIN PROVISIONS OF DELAWARE LAW AND OF THE COMPANY’S CERTIFICATE OF INCORPORATION AND BYLAWS

Anti-Takeover Provisions

The provisions of Delaware law, our restated certificate of incorporation and our restated bylaws may have the effect of delaying, deferring or discouraging another person from acquiring control of our company.

Delaware Law

Section 203 of the Delaware General Corporation Law prevents some Delaware corporations from engaging, under some circumstances, in a business combination, which includes a merger or sale of at least 10% of the corporation’s assets with any interested stockholder, meaning a stockholder who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of the corporation’s outstanding voting stock, unless:

 

	
•
	
•
	
•
	
•the transaction is approved by the board of directors prior to the time that the interested stockholder became an interested stockholder;

 

	
•
	
•
	
•
	
•upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced; or

 

	
•
	
•
	
•
	
•at or subsequent to such time that the stockholder became an interested stockholder the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders by at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder.

If Section 203 applied to us, the restrictions could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, could discourage attempts to acquire us.

Restated Certificate of Incorporation and Restated Bylaw Provisions

Our restated certificate of incorporation and our restated bylaws include a number of provisions that may have the effect of deterring hostile takeovers or delaying or preventing changes in control of our management team, including the following:

 

	
•
	
•
	
•
	
•Board of Directors Vacancies. Our restated certificate of incorporation and restated bylaws authorize only our board of directors to fill vacant directorships. In addition, the number of directors constituting the full board of directors shall not be changed without the affirmative vote of the board of directors. These provisions hinder a stockholder from increasing the size of our board of directors and gaining control of our board of directors by filling the resulting vacancies with its own nominees.

 

	
•
	
•
	
•
	
•Classified Board. Our restated certificate of incorporation and proposed restated bylaws provide that our board of directors is classified into three classes of directors. The existence of a classified board could delay a successful tender offeror from obtaining majority control of our board of directors, and the prospect of that delay might deter a potential offeror. Pursuant to our restated certificate of incorporation, our directors may be removed by the stockholders only for cause by the affirmative vote of at least sixty-six and two thirds percent (66 2/3%) of the votes that all stockholders would be entitled to cast in an election of directors. In addition, stockholders will not be permitted to cumulate their votes for the election of directors.

 

	
•
	
•
	
•
	
•Stockholder Action; Special Meeting of Stockholders. Our restated certificate of incorporation provides that our stockholders may not take action by written consent, but may only take action at annual or special meetings of our stockholders. Our restated certificate of incorporation further provides that special meetings of our stockholders may be called only by a majority of our board of directors, the chairman of our board of directors and our chief executive officer, or upon the request of the holders of a majority of our issued and outstanding common stock.

 

	
•
	
•
	
•
	
•Advance Notice Requirements for Stockholder Proposals and Director Nominations. Our restated bylaws provide advance notice procedures for stockholders seeking to bring business before our annual meeting of stockholders, or to nominate candidates for election as directors at our annual meeting of stockholders. Our restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions may preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders.

 

 

	
•
	
•
	
•
	
•Issuance of Undesignated Preferred Stock. Under our restated certificate of incorporation, our board of directors has the authority, without further action by the stockholders, to issue up to 10,000,000 shares of undesignated preferred stock with rights and preferences, including voting 

rights, designated from time to time by the board of directors. The existence of authorized but unissued shares of preferred stock enables our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise.

 

	
•
	
•
	
•
	
•Exclusive Forum. Our restated certificate of incorporation specifies that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for: (i) any derivative action or proceeding brought on behalf of the corporation; (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the corporation to the corporation or the corporation’s stockholders; (iii) any action asserting a claim arising pursuant to any provision of the DGCL; and (iv) any action asserting a claim governed by the internal affairs doctrine. This exclusive forum provision does not apply to suits brought to enforce a duty or liability created by the Exchange Act. It could apply, however, to a suit that falls within one or more of the categories set forth in the exclusive forum provision and that also asserts claims under the Securities Act of 1933, which we refer to as the Securities Act, inasmuch as Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. There is uncertainty as to whether a court would enforce this provision with respect to claims under the Securities Act, and our stockholders cannot waive our compliance with the federal securities laws and the rules and regulations thereunder.  We believe this provision benefits us by providing increased consistency in the application of Delaware law by chancellors particularly experienced in resolving corporate disputes, efficient administration of cases on a more expedited schedule relative to other forums and protection against the burdens of multi-forum litigation. However, the provision may have the effect of discouraging lawsuits against our directors and officers. The enforceability of similar choice of forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that, in connection with any applicable action brought against us, a court could find the choice of forum provisions contained in our restated certificate of incorporation to be inapplicable or unenforceable in such action.

Limitation of Liability and Indemnification

As permitted by Delaware law, we have adopted provisions in our certificate of incorporation that limit or eliminate the personal liability of our directors. Our restated certificate of incorporation limits the liability of directors to the maximum extent permitted by Delaware law. Delaware law provides that directors of a corporation will not be personally liable for monetary damages for breaches of their fiduciary duties as directors, except liability for:

 

	
•
	
•
	
•
	
•any breach of the director’s duty of loyalty to us or our stockholders;

 

	
•
	
•
	
•
	
•any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law;

 

	
•
	
•
	
•
	
•any unlawful payments related to dividends or unlawful stock repurchases, redemptions or other distributions; or

 

	
•
	
•
	
•
	
•any transaction from which the director derived an improper personal benefit.

These limitations do not apply to liabilities arising under federal securities laws and do not affect the availability of equitable remedies, including injunctive relief or rescission. If Delaware law is amended to authorize the further elimination or limiting of a director, then the liability of our directors will be eliminated or limited to the fullest extent permitted by Delaware law as so amended.

As permitted by Delaware law, our certificate of incorporation also provides that:

 

	
•
	
•
	
•
	
•we will indemnify our directors and officers to the fullest extent permitted by law;

 

	
•
	
•
	
•
	
•we may indemnify our other employees and other agents to the same extent that we indemnify our officers and directors, unless otherwise determined by our board of directors; and

 

	
•
	
•
	
•
	
•we will advance expenses to our directors and officers in connection with legal proceedings in connection with a legal proceeding to the fullest extent permitted by law.

The indemnification provisions contained in our certificate of incorporation are not exclusive. In addition, we have entered into indemnification agreements with each of our directors and executive officers. Each of these indemnification agreements provides, among other things, that we will indemnify such director or executive officer to the fullest extent permitted by law for claims arising in his or her capacity as a director or officer, as applicable, provided that he or she acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, our best interests and, with respect to any criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful. Each of these indemnification agreements provide that in the event that we do not assume the defense of a claim against a director or officer, as applicable, we will be required to advance his or her expenses in connection with his or her defense, provided that he or she undertakes to repay all amounts advanced if it is ultimately determined that he or she is not entitled to be indemnified by us.

We believe that these provisions and agreements are necessary to attract and retain qualified persons as directors and officers. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant to the foregoing provisions, we understand that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

In addition, we maintain standard policies of insurance under which coverage is provided to our directors and officers against losses arising from claims made by reason of breach of duty or other wrongful act, and to us with respect to payments which may be made by us to such directors and officers pursuant to the above indemnification provisions or otherwise as a matter of law.

The foregoing discussion of our restated certificate of incorporation, restated bylaws, indemnification agreements and Delaware law is not intended to be exhaustive and is qualified in its entirety by such restated certificate of incorporation, restated bylaws, indemnification agreements or law.  Copies of our restated certificate of incorporation, restated bylaws, and form of indemnification agreement are filed as Exhibits 3.1, 3.2 and 10.1, respectively, to this Form 10-K.  

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

96754707v.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00304-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00304-of-00352.parquet"}]]