Document:

ck0001690012-ex103_495.htm

EXHIBIT 10.3

 

INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

INDEPENDENT DIRECTORS COMPENSATION PLAN

ARTICLE 1

PURPOSE

 

1.1.  PURPOSE.  The purpose of this Plan is to attract, retain and compensate highly-qualified individuals who are not employees of the Company or any of its subsidiaries or affiliates (the “Independent Directors”) for service as members of its Board by providing them with competitive compensation.  The Company intends that the Plan will benefit the Company and its stockholders by attracting and retaining highly-qualified Independent Directors. 

 

1.2.  ELIGIBILITY.  Independent Directors who are Eligible Participants, as defined below, shall automatically be participants in the Plan.

 

ARTICLE 2

DEFINITIONS

 

2.1.  DEFINITIONS.  Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Restricted Share Plan.  Unless the context clearly indicates otherwise, the following terms shall have the following meanings:

 

	
 
	
(a)
	
“Annual Retainer” means the annual retainer (excluding Meeting Fees) payable by the Company to an Independent Director pursuant to Section 5.1 hereof and Section 6.3 of the Restricted Share Plan for service as a director of the Company (i.e., excluding any Supplemental Annual Retainer), as such amount may be changed from time to time.

 

	
 
	
(b)
	
“Eligible Participant” means any person who is an Independent Director on the Plan Effective Date or becomes an Independent Director while this Plan is in effect; except that during any period a director is prohibited from participating in the Plan by his or her employer or otherwise waives participation in the Plan, such director shall not be an Eligible Participant.

 

	
 
	
(c)
	
“Meeting Fees” means fees for attending a meeting of the Board or one of its committees as set forth in Section 5.3 hereof.

 

	
 
	
(d)
	
“Plan” means this InPoint Commercial Real Estate Income, Inc. Independent Directors Compensation Plan, as amended from time to time.

 

	
 
	
(e)
	
“Plan Effective Date” of the Plan has the meaning set forth in Section 8.3 of the Plan.

 

	
 
	
(f)
	
“Plan Year(s)” means the approximate twelve-month period beginning with the annual stockholders meeting and ending at the next annual stockholders meeting; provided that the first Plan Year shall begin on the Plan Effective Date and extend until the first annual stockholders meeting.

 

	
 
	
(g)
	
“Restricted Share Plan” means the Independent Director Restricted Share Plan of InPoint Commercial Real Estate Income, Inc., or any subsequent equity compensation plan approved by the Board and designated as the Restricted Share Plan for purposes of this Plan.

 

	
 
	
(h)
	
“Supplemental Annual Retainer” means the annual retainer (excluding Meeting Fees) payable by the Company to an Independent Director pursuant to Section 5.2 hereof for service as the chair of the Audit Committee of the Board, as such amount may be changed from time to time.

 

 

 

ARTICLE 3

ADMINISTRATION

 

3.1.  ADMINISTRATION.  The Plan shall be administered by the Board.  Subject to the provisions of the Plan, the Board shall be authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan.  The Board’s interpretation of the Plan, and all actions taken and determinations made by the Board pursuant to the powers vested in it hereunder, shall be conclusive and binding upon all parties concerned, including the Company, its stockholders and persons granted awards under the Plan.  The Board may appoint a plan administrator to carry out the ministerial functions of the Plan, but the administrator shall have no other authority or powers of the Board.

 

3.2.  RELIANCE.  In administering the Plan, the Board may rely upon any information furnished by the Company, its public accountants and other experts.  No individual will have personal liability by reason of anything done or omitted to be done by the Company or the Board in connection with the Plan.  This limitation of liability shall not be exclusive of any other limitation of liability to which any such person may be entitled under the Company’s Charter or otherwise.

 

ARTICLE 4

SHARES

 

4.1.  SOURCE OF SHARES FOR THE PLAN.  The shares of Equity Stock that may be issued pursuant to the Plan shall be issued under the Restricted Share Plan, subject to all of the terms and conditions of the Restricted Share Plan.  The terms contained in the Restricted Share Plan are incorporated into and made a part of this Plan with respect to shares of Equity Stock, Restricted Class P Shares and any other equity granted pursuant hereto and any such grant shall be governed by and construed in accordance with the Restricted Share Plan.  In the event of any actual or alleged conflict between the provisions of the Restricted Share Plan and the provisions of this Plan, the provisions of the Restricted Share Plan shall be controlling and determinative.  This Plan does not constitute a separate source of shares for the grant of Restricted Class P Shares or shares of Equity Stock described herein.

 

ARTICLE 5

RETAINERS, MEETING FEES AND EXPENSES

 

5.1.  ANNUAL RETAINER.  Each Eligible Participant shall be paid an Annual Retainer for service as a director during each Plan Year.  The amount of the Annual Retainer shall be established from time to time by the Board.  Until changed by the Board, the Annual Retainer for a full Plan Year shall be $20,000.  The Annual Retainer shall be payable as provided in Section 6.3 of the Restricted Share Plan, and as described in Section 6.3 the Restricted Share Plan, each Eligible Participant may elect to receive his or her Annual Retainer exclusively in cash, exclusively in Independent Director Shares, or any portion in cash and Independent Director Shares, or on such other terms and conditions as may be authorized by the Company and permitted, without penalty, under Code 409A. 

 

5.2.  AUDIT COMMITTEE CHAIRPERSON SUPPLEMENTAL ANNUAL RETAINER.  The chairperson of the Audit Committee of the Board shall be paid a Supplemental Annual Retainer for his or her service as such chairperson during a Plan Year, payable at the same times as installments of the Annual Retainer are paid.  The amount of the Supplemental Annual Retainer for the chairperson of the Audit Committee shall be established from time to time by the Board.  Until changed by the Board, the Supplemental Annual Retainer for a full Plan Year for the chairperson of the Audit Committee shall be $5,000, which shall be payable as described in Section 6.3 of the Restricted Share Plan.  A pro rata Supplemental Annual Retainer will be paid to any Eligible Participant who becomes the chairperson of the Audit Committee of the Board on a date other than the beginning of a Plan Year, based on the number of full months he or she serves as a chairperson of the Audit Committee of the Board during the Plan Year.  Payment of such prorated Supplemental Annual Retainer shall begin on the date that the person first becomes chairperson of the Audit Committee, and shall resume on a quarterly basis thereafter.  In no event shall any installment of the Supplemental Annual Retainer be paid later than December 1 following the year to which such installment relates.

 

2

 

5.3.MEETING FEES.  Each Independent Director shall be paid Meeting Fees for attending meetings of the Board or its committees. The amount of the Meeting Fees shall be established from time to time by the Board.  Until changed by the Board, the Meeting Fee for attending a meeting of the Board in person shall be $1,000 and the Meeting Fee for attending a meeting of a committee of the Board in person as a committee member shall be $500.  Until changed by the Board, the Meeting Fee for participation in a telephonic meeting of the Board, provided that minutes are kept at such telephonic meeting, shall be $500 and the Meeting Fee for participation in a telephonic meeting of a committee of the Board as a committee member shall be $350.  Meeting Fees shall be payable by the end of the quarter during which the applicable meeting occurred.

 

5.4.  TRAVEL EXPENSE REIMBURSEMENT.  All Eligible Participants shall be reimbursed for reasonable travel expenses in connection with attendance at meetings of the Board and its committees, or other Company functions at which the Chief Executive Officer or Chair of the Board requests the Independent Director to participate.  Notwithstanding the foregoing, the Company’s reimbursement obligations pursuant to this Section 5.4 shall be limited to expenses incurred during such director’s service as an Independent Director.  Such payments will be made by the end of the quarter of delivery of the Independent Director’s written requests for payment, accompanied by such evidence of expenses incurred as the Company may reasonably require, but in no event later than the last day of the Independent Director’s tax year following the tax year in which the expense was incurred.  The amount reimbursable in any one tax year shall not affect the amount reimbursable in any other tax year.  Independent Directors’ right to reimbursement pursuant to this Section 5.4 shall not be subject to liquidation or exchange for another benefit.

 

ARTICLE 6

AMENDMENT, MODIFICATION AND TERMINATION

 

6.1.  AMENDMENT, MODIFICATION AND TERMINATION.  The Board may, at any time and from time to time, amend, modify or terminate the Plan without stockholder approval; provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board, require stockholder approval under applicable laws, policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject to stockholder approval; and provided, further, that the Board may condition any other amendment or modification on the approval of stockholders of the Company for any reason.

 

ARTICLE 7

GENERAL PROVISIONS

 

7.1.  DURATION OF THE PLAN.  The Plan shall remain in effect until terminated by the Board.

 

7.2.  EXPENSES OF THE PLAN.  The expenses of administering the Plan shall be borne by the Company.

 

7.3.  PLAN EFFECTIVE DATE.  The Plan became effective on October 6, 2016 (the “Plan Effective Date”).  

 

*****

 

The foregoing is hereby acknowledged as being the InPoint Commercial Real Estate Income, Inc. Independent Directors Compensation Plan as adopted by the Board.

 

	
 
	
Inpoint commercial real estate income, inc.

	
 
	
 

	
 
	
 

	
 
	
By:
	
/s/ Mitchell A. Sabshon

	
 
	
 
	
Name:
	
Mitchell A Sabshon

	
 
	
 
	
Title:
	
CEO

 

3ck0001690012-ex105_496.htm

EXHIBIT 10.5

 

 

R E S T R I C T E D  S T O C K  A W A R D  A G R E E M E N T 

 

 

Non-transferable

 

GRANT TO

 

_____________________

(“Grantee”)

 

By InPoint Commercial Real Estate Income, Inc. (the “Company”) of

 

___________

 

shares of its Class P common stock, $0.001 par value (the “Shares”)

 

pursuant to and subject to the provisions of the InPoint Commercial Real Estate Income, Inc. Independent Directors Compensation Plan (the “Compensation Plan”), which is operated as a subplan of the Independent Director Restricted Share Plan of InPoint Commercial Real Estate Income, Inc. (the “Restricted Share Plan” and, together with the Compensation Plan, the “Plans”) and to the terms and conditions set forth on the following page (the “Terms and Conditions”).  By accepting the Shares, Grantee shall be deemed to have agreed to the Terms and Conditions set forth in this Restricted Stock Award Agreement (this “Award Agreement”) and the Plans.  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plans.

 

Unless vesting is accelerated as provided in Paragraph 2 of the Terms and Conditions or otherwise in the discretion of the Board, the Shares shall vest (become non-forfeitable) in three approximately equal annual installments beginning on the first anniversary of the Grant Date, provided that Grantee is providing services to the Company as a director on each such date. 

 

IN WITNESS WHEREOF, InPoint Commercial Real Estate Income, Inc., acting by and through its duly authorized officers, has caused this Award Agreement to be executed as of the Grant Date.

 

						
	
INPOINT COMMERCIAL REAL ESTATE INCOME, INC.
	
	
 
	
 
	
 
	
	
By:
	
 
	
 
	
	
Its:
	
 
	
Authorized Officer
	
	
 
	
 
	
 
	
	
 
	
 
	
 
	
	
Grant Date:
	
 
	
 

 

 

 

EXHIBIT 10.5

 

TERMS AND CONDITIONS

 

1.  Restrictions. The Shares are subject to each of the following restrictions. “Restricted Shares” mean those Shares that are subject to the restrictions imposed hereunder which restrictions have not then expired or terminated.  Restricted Shares may not be sold, transferred, exchanged, assigned, pledged, hypothecated or otherwise encumbered.  If Grantee’s service as a director of the Company terminates for any reason other than as described in Paragraph 2(b) below, then Grantee shall forfeit all of Grantee’s right, title and interest in and to the Restricted Shares as of the date of termination, and such Restricted Shares shall be reconveyed to the Company without further consideration or any act or action by the Grantee. The restrictions imposed under this Paragraph shall apply to all shares of the Equity Stock or other securities issued with respect to Restricted Shares hereunder in connection with any merger, reorganization, consolidation, recapitalization, stock dividend or other change in corporate structure affecting the Equity Stock.

2.  Expiration and Termination of Restrictions.  The restrictions imposed under Paragraph 1 will expire on the earliest to occur of the following (the period prior to such expiration being referred to herein as the “Restricted Period”):

(a) as to the amounts and on the dates specified on the cover page hereof, provided Grantee is providing services as a director of  the Company on each such date; or

(b) as to all of the Restricted Shares, upon the termination of Grantee’s service as a director of the Company by reason of his or her death or disability; or 

(c) as to all of the Restricted Shares, upon the effective date of a Liquidity Event.

3.  Delivery of Shares. The Shares will be registered in the name of Grantee as of the Grant Date and may be held by the Company during the Restricted Period in certificated or uncertificated form. If a certificate for Restricted Shares is issued during the Restricted Period, such certificate shall be registered in the name of Grantee and shall bear a legend in substantially the following form (in addition to any legend required under applicable state securities laws): “This certificate and the shares of stock represented hereby are subject to the terms and conditions contained in a Restricted Stock Award Agreement between the registered owner and InPoint Commercial Real Estate Income, Inc.  Release from such terms and conditions shall be made only in accordance with the provisions of such Award Agreement, copies of which are on file in the offices of InPoint Commercial Real Estate Income, Inc.”  Stock certificates for the Shares, without the above legend, shall be delivered to Grantee or Grantee’s designee upon request of Grantee after the expiration of the Restricted Period, but delivery may be postponed for such period as may be required for the Company with reasonable diligence to comply, if deemed advisable by the Company, with registration requirements under the Securities Act of 1933, as amended, listing requirements of any national securities exchange, and requirements under any other law or regulation applicable to the issuance or transfer of the Shares.

4.  Voting and Dividend Rights. Grantee, as beneficial owner of the Shares, shall have full voting and dividend rights with respect to the Shares during and after the Restricted Period.  If Grantee forfeits any rights he may have under this Award Agreement, Grantee shall no longer have any rights as a stockholder with respect to the Restricted Shares or any interest therein 

and Grantee shall no longer be entitled to receive dividends on such stock. In the event that for any reason Grantee shall have received dividends upon such stock after such forfeiture, Grantee shall repay to the Company any amount equal to such dividends.

5.  No Right of Continued Service. Nothing in this Award Agreement shall interfere with or limit in any way the right of the Company to terminate Grantee’s service at any time, nor confer upon Grantee any right to continue in the service of the Company.

6.  Payment of Taxes. Upon issuance of the Shares hereunder, Grantee may make an election to be taxed upon such award under Section 83(b) of the Internal Revenue Code.  To effect such election, Grantee may file an appropriate election with the Internal Revenue Service within thirty (30) days after award of the Shares and otherwise in accordance with applicable Treasury regulations.  Grantee will, no later than the date as of which any amount related to the Shares first becomes includable in Grantee’s gross income for federal income tax purposes, pay to the Company, or make other arrangements satisfactory to the Board regarding payment of, any federal, state and local taxes required by law to be withheld with respect to such amount.  The obligations of the Company under this Award Agreement will be conditional on such payment or arrangements, and the Company will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to Grantee.

7.  Plans Control.  The terms contained in the Plans are incorporated into and made a part of this Award Agreement, and this Award Agreement shall be governed by and construed in accordance with the Plans. In the event of any actual or alleged conflict between the provisions of the Plans and the provisions of this Award Agreement, the provisions of the Plans shall be controlling and determinative.  In the event of any actual or alleged conflict between the provisions of the two Plans, the provisions of the Restricted Share Plan shall be controlling and determinative.

8.  Successors.  This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Award Agreement and the Plans.

9.  Severability.  If any one or more of the provisions contained in this Award Agreement is invalid, illegal or unenforceable, the other provisions of this Award Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.

10.  Notice.  Notices and communications hereunder must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid.  Notices to the Company must be addressed to InPoint Commercial Real Estate Income, Inc., 2901 Butterfield Rd., Oak Brook, IL  60523, Attn: Secretary, or any other address designated by the Company in a written notice to Grantee.  Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.

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