Document:

Exhibit

DESCRIPTION OF CAPITAL STOCK

             The following statements contain, in summary form, certain information relating to the capital stock of the Company.  They do not purport to be complete, and are qualified in their entirety by reference to the provisions of the Company's Second Restatement of the Restated and Amended Articles of Incorporation, as amended (the "Restated Articles") incorporated herein by this reference. 

             The authorized capital stock of the Company consists of 120,000,000 shares of Common Stock, no par value (the “Common Stock”), and 1,000,000 shares of Preferred Stock, no par value (the "Preferred Stock") of which 250,000 shares have been designated as Series A Serial Preferred Stock.  No shares of Preferred Stock have been issued.  The Company’s Restated Articles do not authorize any other classes of capital stock.

The Common Stock is the only class of capital stock of the Company registered under the Securities Exchange Act of 1934 as amended and it is registered under Section 12(b) thereof.   

COMMON STOCK

            All issued and outstanding shares of Common Stock are duly authorized, validly issued, fully paid, and non-assessable.  Holders of Common Stock have one vote for each share held and are not entitled to cumulate their votes for the election of directors.  Until January 1, 2019, under the Iowa Business Corporation Act, the Board was required to be classified.  However, starting with the company’s 2019 annual shareholders’ meeting, Iowa Code section 490.806B mandates that the board begin a phased declassification over a three-year period.  In particular, Iowa Code section 490.806B requires that the staggered terms of the “Class I”, “Class II” and “Class III” directors elected or appointed prior to January 1, 2019 cease at the expiration of their then current terms, and that the terms of directors elected or appointed after January 1, 2019 expire at the next annual shareholders’ meeting following their election or appointment.

Common Stock is not subject to redemption by its terms although Common Stock may be repurchased by the Company at its discretion.  The holders of shares of Common Stock do not have preemptive rights.  Holders of shares of Common Stock are entitled to share ratably in the assets of the Company legally available for distribution to holders of Common Stock in the event of liquidation, dissolution, or winding up of the Company.  The holders of Common Stock are entitled to dividends when, as and if declared by the Board of Directors of the Company.

PREFERRED STOCK

             The Board of Directors is empowered by the Restated Articles to issue, from time to time, one or more series of authorized Preferred Stock without shareholder approval. The authorized but unissued shares of Preferred Stock may be issued in series having such designations, preferences or rights, and having the qualifications, limitations or restrictions thereon, as may be fixed and determined by resolution of the Company's Board of Directors. Therefore, shares of 

series of Preferred Stock could have rights that would cause such shares to be superior to the Common Stock with respect to such matters as voting, dividends and liquidation.

As noted above, the Restated Articles authorize a series of Preferred Stock designated Series A Serial Preferred Stock comprised of 250,000 shares.  The Board created the Series A Serial Preferred Stock in April 2010 in connection with the Shareholder Rights Plan (the “Rights Plan”) that it adopted at the same time.  The Series A Serial Preferred Stock was created having the specific designations, preferences and rights and having the specific qualifications, limitations and restrictions necessary to implement the Rights Plan.  The Shareholder Rights Plan expired in April 2011 without any shares of Series A Preferred Stock having been issued.  The 250,000 Series A Serial Preferred Stock remains authorized under the Restated Articles. Since the Rights Plan is expired, the Board does not anticipate issuing the Series A Serial Preferred Stock for which it was created.    

REGISTRAR AND TRANSFER AGENT

Computershare Trust Company, N.A. 250 Royall Street Canton, MA 02021 is the Registrar and Transfer Agent for the Common Stock of the Company.

CERTAIN PROVISIONS OF THE IOWA CODE, OUR ARTICLES OF INCORPORATION AND BYLAWS

Certain provisions of the Iowa Business Corporations Act (the “Act”), our Restated Articles and the Fourth Amended and Restated By-Laws (the “Bylaws”) summarized in the following paragraphs may have an anti-takeover effect. This summary is qualified in its entirety by reference to the Restated Articles, and the Bylaws incorporated herein by this reference.   

Our Bylaws vest the power to call special meetings of stockholders in our board chair, by resolution approved by a majority of the entire board, or by the secretary of the Company following receipt of one or more written demands to call a special meeting of the shareholders from shareholders holding of record shares representing not less than 50% of the voting power of the outstanding shares of the Company.  Shareholders are permitted under our Bylaws to act by written consent in lieu of a meeting.

To be properly brought before an annual meeting of stockholders, any shareholder proposal or nomination for the board of directors must be delivered to our secretary by the close of business not more than 120 and not less than 90 days prior to the date on which we first mailed our proxy materials for the prior year’s annual meeting; provided that in the event that the date of the annual meeting is advanced by more than 30 days or delayed by more than 60 days from the anniversary of the previous year’s meeting, written notice must be provided not less than 90 days nor more than 120 days prior to the date of the annual meeting or, if the first public announcement of the date of such advanced or delayed annual meeting is less than 100 days prior to the date of such annual meeting, the 10th day following the day on which public announcement of the date of the annual meeting is first made.

Our Bylaws contain “proxy access” provisions, which permit an eligible shareholder or a group of up to 20 eligible shareholders owning 3% or more of the Company’s outstanding shares of Common Stock continuously for at least three years to nominate and include in the Company’s annual meeting proxy materials, for any annual meeting of shareholders at which directors are to be elected, director nominees constituting up to the greater of (i) 20% of the total number of directors of the Company, or (ii) two individuals; provided that the nominating shareholder(s) and nominee(s) satisfy the requirements described in the Bylaws.

As noted above, the classified board is being phased out under “Common Stock”.

We are subject to Iowa Code section 490.1110 (“Section 490.1110”). In general, Section 490.1110 prohibits a publicly held Iowa corporation from engaging in various “business combination” transactions with any interested shareholder for a period of three years following the date of the transactions in which the person became an interested shareholder, unless: (i) the transaction is approved by the board of directors prior to the date the shareholder became and interested shareholder; (ii) upon consummation of the transaction which resulted in the shareholder becoming an interested shareholder, the interested shareholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced; or (iii) on or subsequent to such date the business combination is approved by the board of directors and authorized at an annual or special meeting of shareholders by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested shareholder.Exhibit 10.1

FOURTH AMENDMENT TO

PURCHASE AND SALE AGREEMENT

 

This Fourth Amendment to
Purchase and Sale Agreement (“Fourth Amendment”) is made and entered into as of June 25, 2019, by and between IRESI
MONTGOMERY MITYLENE, L.L.C., a Delaware limited liability company (“Seller”), and B & M DEVELOPMENT COMPANY,
L.L.C., an Alabama limited liability company (“Buyer”).

 

RECITALS

 

A.               
Seller and Buyer are parties to that certain Purchase and Sale Agreement bearing an Effective Date of December 21,
2018, and reinstated and amended by that certain Reinstatement of and First Amendment to Purchase and Sale Agreement, bearing an
effective date of January 23, 2019, that certain Second Amendment to Purchase and Sale Agreement, bearing an effective date of
February 19, 2019 and that certain Third Amendment to Purchase and Sale Agreement, bearing an effective date of June 7, 2019 (collectively
the “Agreement”), for the purchase and sale of certain Property, as particularly defined in the Agreement. Capitalized
terms not otherwise defined herein shall have the same meaning ascribed to such terms in the Agreement.

 

B.                
Seller and Buyer desire to modify the terms of the Agreement pursuant to the terms and conditions set forth in this Fourth
Amendment.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the foregoing Recitals and for other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound, Seller and Buyer agree as follows:

 

1.                 
The Recitals set forth above are true and correct and are adopted and incorporated herein by reference as if more fully
set forth at length.

 

2.                 
Within three (3) business days of the date hereof, Buyer shall deposit Three Hundred Fifty Thousand and 00/100 Dollars ($350,000.00)
with Escrow Agent. Of that sum, Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) shall be added to the Earnest Money
such that the Earnest Money shall equal Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000.00). Upon receipt of such deposit
the Escrow Agent shall pay to Seller One Hundred Thousand and 00/100 Dollars ($100,000.00) as consideration for extension of the
Closing Date (“Closing Extension Fee”). The Closing Extension Fee shall not be refundable to Buyer. The Earnest Money
shall be non-refundable to Buyer except as otherwise set forth in the Agreement.

 

    1 

     

    

 

3.                 
The Loan Assumption Approval Date as set forth in Section 5.3.c. is hereby extended to August 13, 2019. In the event that
Buyer does not receive the Loan Assumption Approval by August 13, 2019 either party shall be entitled to terminate this Agreement.
Upon such termination, Seller shall receive the Earnest Money and Buyer shall not be entitled to any expense reimbursement. The
Loan Assumption Approval Date shall not be further extended.

 

4.                 
The Closing Date as set forth in Section 5.1 shall be August 20, 2019. Buyer shall use best efforts to close as soon as
possible after the Loan Assumption Approval. The Closing Date shall not be further extended.

 

5.                 
Except as set forth herein, the Agreement shall remain in full force and effect and unmodified, and the Agreement, as amended
hereby, is hereby ratified, confirmed and approved in all respects. In the event of a conflict between the terms and conditions
of the Agreement and this Fourth Amendment, the terms and conditions of this Fourth Amendment shall prevail.

 

6.                 
To facilitate execution, this Fourth Amendment may be executed in as many counterparts as may be required. It shall not
be necessary that the signatures on behalf of all parties appear on each counterpart hereof. A counterpart sent by electronic mail
(including a PDF by e-mail) or facsimile shall constitute the same as delivery of the original of such executed counterpart. Any
signature page of a counterpart may be detached from any counterpart and attached to any other counterpart.

 

[Remainder of Page Intentionally Left Blank]

    2 

     

    

IN WITNESS WHEREOF, Seller
and Buyer have executed this Fourth Amendment as of the date first written above.

 

	 	
        SELLER:

         

        IRESI MONTGOMERY MITYLENE, L.L.C.,

        a Delaware limited liability company

	 	 	 
	 	By:	
        Inland Residential Operating Partnership, L.P.,

        a Delaware limited partnership, its sole member

	 	 	 
	 	By:	
        Inland Residential Properties Trust, Inc.,

        a Maryland corporation, its general partner

	 	 	 
	 	By:	/s/ Catherine L. Lynch
	 	Name:	Catherine L. Lynch
	 	Its:	CFO
	 	 	 
	 	BUYER:

         

        B & M DEVELOPMENT COMPANY, L.L.C.,

        an Alabama limited liability company

	 	 	 
	 	By:	/s/ John D. Blanchard
	 	Name:	John D. Blanchard
	 	Its:	Manager

 

 

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]