Document:

ex10-9.htm

    

     

    Exhibit 10.9

     

    

     

    DYNEX
CAPITAL, INC.

     

    PERFORMANCE
BONUS PROGRAM

     

    

     

    Thomas
Akin, Chief Executive Officer, Byron Boston, Chief Investment Officer, and
Stephen Benedetti, Chief Financial Officer and Chief Operating Officer,
(collectively, the “Participants”) will be eligible for an annual performance
bonus (the “Performance Bonus”) consisting of three components as
follows:

     

     

    
      	
               
      

            	
              1.

            	
              25%
      of the Performance Bonus will be based on the annual return on adjusted
      equity of the Company (the “ROAE
Component”);

            

    

     

    
      	
               
      

            	
              2.

            	
              25%
      of the Performance Bonus will be based on the achievement of qualitative
      objectives for the calendar year as determined by the Compensation
      Committee of the Board of Directors (the “Qualitative Component”);
      and

            

    

     

    
      	
               
      

            	
              3.

            	
              50%
      of the Performance Bonus will be based on capital raising activities of
      the Company for the calendar year as determined by the Compensation
      Committee (the “Capital Raise
Component”).

            

    

     

    

     

    The
maximum Performance Bonus that may be paid to a Participant for any calendar
year is 200% of the Participant’s actual base salary paid for the calendar year;
provided, however, that if a Participant elects to receive payment of all or a
portion of the Performance Bonus in common stock of the Company (“Common
Stock”), the portion of the Performance Bonus paid in Common Stock will be
increased by 5% (without taking into account taxes or any other
deductions).  Management, at its option, may also elect to compensate
certain other members of senior management of the Company in accordance with the
terms of this Performance Bonus Program.  The Performance Bonus will
be calculated on a calendar year basis; provided, however, that for any calendar
year where the Payment Date (as defined below) will be December 31 of such year,
any reference herein to “calendar year” with respect to the calculation of any
“Rate” addressed below for the three components of the Performance Bonus shall
mean the period from January 1 to December 1 of such year.

     

    

     

    Determination of the Performance Bonus

     

    The
amount of the Performance Bonus earned for a particular calendar year will be
determined individually for each Participant and, subject to the increase of up
to 5% to the extent the Participant elects to receive payment of the Performance
Bonus in Common Stock, will be equal to the product of 200% of the Participant’s
actual base salary paid for the relevant calendar year times the sum of (x) the
product of 25% times the ROAE Reference Rate as calculated below, (y) the
product of 25% times the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Qualitative
Reference Rate as calculated below, and (z) the product of 50% times the Capital
Raise Reference Rate as calculated below.

     

    

     

    Determination
of the ROAE Reference Rate

     

    The ROAE
Reference Rate for a particular calendar year will be determined based on the
Company’s Return on Average Equity (“ROAE”) for the calendar
year.  ROAE will be determined as the Company’s net income for the
calendar year, determined in accordance with generally accepted accounting
principles, adjusted for non-recurring and/or unusual items as determined by the
Compensation Committee in its sole discretion, and further adjusted by
increasing net income by the Company’s Performance Bonus Program expense for the
calendar year, divided by average common shareholder equity excluding unrealized
gains and losses and as adjusted for any common equity capital that is raised
until such time the capital is deployed.

     

     

    The ROAE Reference Rate will then be
determined according to the table below:

     

    
      	 
      	 
      	 
      	
              Reference
      Rate

            	 
      
	
              ROAE
      less than 6%

            	 
      	 
      	
              0%

            	 
      
	
              ROAE
      6% or greater and less than 8%

            	 
      	 
      	
              25%

            	 
      
	
              ROAE
      8% or greater and less than 10%

            	 
      	 
      	
              50%

            	 
      
	
              ROAE
      10% or greater and less than 12%

            	 
      	 
      	
              75%

            	 
      
	
              ROAE
      12% or greater

            	 
      	 
      	
              100%

            	 
      

    

    

     

    Determination
of the Qualitative Reference Rate

     

    The
Compensation Committee will establish qualitative objectives (the “Qualitative
Objectives”) for a particular calendar year within the first ninety (90) days of
such year; provided, however, that the Qualitative Objectives for calendar year
2010 will be established by the Compensation Committee prior to August 15,
2010.  The Qualitative Objectives will include achievement of certain
qualitative corporate goals during the year as well as individual
goals.

     

    Prior to
the Payment Date, the Compensation Committee in its sole discretion will
evaluate the success of the Company and each Participant with respect to the
achievement of the Qualitative Objectives during the calendar
year.  In making such determination, the Compensation Committee will
consider management’s input regarding the extent to which Qualitative Objectives
were achieved.

     

    Each
Participant’s Qualitative Reference Rate for a particular calendar year will be
determined by the Compensation Committee based on its determination of the
success of the Company and the Participant relative to the Qualitative
Objectives and will be expressed as a percentage from 0%-100%.

     

     
 

     

    Determination
of the Capital Raise Reference Rate

     

    The
Compensation Committee acknowledges that the issuance of equity capital is an
important objective for the Company.  The Compensation Committee
desires to provide incentives to management to issue equity capital in a
beneficial manner to the

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Company
and its shareholders and has therefore established the Capital Raise Component
of the Performance Bonus Program.

     

    The
Capital Raise Component will be administered by the Compensation Committee in
its sole discretion.   The Compensation Committee will annually
review the capital raising activities of the Company for the calendar year and
will determine the success of such efforts relative to factors including, but
not limited to, the amount of capital raised, the use of capital raised, the mix
of common versus preferred capital, the issue price relative to book value and
market price at the time of issuance, and the cost of capital raising
activities.

     

    Prior to
the Payment Date, the Compensation Committee will evaluate the success of the
Company and each Participant’s efforts with respect to capital raising efforts
for the calendar year.  The Capital Raise Reference Rate will be
determined by the Compensation Committee in its sole discretion based on its
determination of the success of the Company and each Participant with respect to
capital raising efforts for the calendar year and will be expressed as a
percentage from 0%-100%.

     

    

     

    Payment
of the Performance Bonus

     

    Except
when the Compensation Committee determines to pay the Performance Bonus for a
particular calendar year on December 31 of such year, amounts due to the
Participants for the Performance Bonus for any calendar year will be paid
concurrently with the filing of the Company’s Annual Report on Form 10-K for
that year or March 15 of the calendar year following the performance period,
whichever is earlier (the “Payment Date”).  In no event will the
Payment Date be later than March 15 of the calendar year following the
performance period.

     

    Amounts
due to the Participants for the Performance Bonus for any calendar year will be
paid, at the election of the Participant, in cash, in Common Stock, or in a
combination of cash and Common Stock.  To the extent the Participant
chooses to receive payment of all or a portion of the Performance Bonus in
Common Stock, the amount paid in Common Stock will be increased by 5% (without
taking into account taxes or any other deductions).

     

    Any
Common Stock granted as payment of all or any portion of the Performance Bonus
due to a Participant will be granted under and pursuant to the terms of the
Company’s 2009 Stock and Incentive Plan (the “2009 Plan”).  Such
Common Stock will be determined using the Fair Market Value (as defined in the
2009 Plan) of the Common Stock on the Payment Date.

    

    

    

    Approved
by the Compensation Committee of the Board on August 5, 2010.

    Approved
by the Board of Directors on August 5, 2010.

    

     
 

    
      	 
      

    

    

    
      
         

      

      
        3ex10_59.htm

EXHIBIT 10.59

March 11, 2010

FIRST AMENDMENT TO PROMISSORY NOTE

This First Amendment to Promissory Note (this “Amendment”) is to be effective as of the close of business March 11, 2010, or as otherwise stated herein.

WHEREAS, the undersigned are parties to that certain Promissory Note (as the same may be hereafter renewed, amended, modified, or extended, the “Note”) dated as of March 12, 2009 in the original amount of $12,910,386.14, made by WEINGARTEN REALTY INVESTORS (“Weingarten”), a Texas real estate investment trust, and payable to the order of RELIANCE TRUST COMPANY, as Trustee of the Master Nonqualified Plan Trust (“Trust”) under the Weingarten Realty Investors Supplemental Executive Retirement Plan (“SERP”) and Weingarten Realty Investors Retirement Benefit Restoration Plan (“Reliance”); and

WHEREAS, the originally-scheduled maturity date of the Note is March 12, 2010; and

WHEREAS, the parties desire to extend the maturity date under the Note to a date one year from the date of its originally-scheduled maturity; and

WHEREAS, the parties have determined that the loan was funded from Trust assets attributable solely to the SERP and desire to clarify that payments made under the Note shall be credited to the portion of the Trust attributable to the SERP; and

WHEREAS, Sections 2(e) and 4(b) of the Trust provide that Weingarten may make payment of plan benefits directly to plan participants and may seek reimbursement from Trust assets if it does so; and

WHEREAS, Weingarten wishes to have the ability to direct that payment of SERP benefits made directly to a SERP participant by Weingarten out of its general assets will be credited as a payment under the Note and reduce the principal amount due under the Note, in the amount of the payment made, as of the date of any such payment, including any such payments made between March 12, 2009 and the date of this Amendment, and Reliance is willing to accept such directions from Weingarten as long as suitable proof of the payment is provided; and

WHEREAS, the parties desire to change the rate of interest applicable to amounts due under the Note; and

WHEREAS, the parties desire to amend the Note to reflect these changes;

NOW, THEREFORE, it is agreed:

 

 

  

1

  

 

	
1.

	
The first paragraph of the Note shall be revised to be and read as follows:

	
  

	
“FOR VALUE RECEIVED, WEINGARTEN REALTY INVESTORS, a real estate investment trust organized under the laws of the State of Texas and having its principal office and place of business in Houston, Texas (the "Maker") HEREBY PROMISES TO PAY to the order of RELIANCE TRUST COMPANY, Trustee of the TRUST UNDER THE WEINGARTEN REALTY INVESTORS DEFERRED COMPENSATION PLAN,  SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AND RETIREMENT BENEFIT RESTORATION PLAN (the "Holder"), the principal sum of TWELVE MILLION TWO HUNDRED TWENTY-NINE THOUSAND FIVE HUNDRED NINETY-TWO AND 35/100 DOLLARS ($12,229,592.35), together with all accrued but unpaid interest, bearing interest on the outstanding principal balance hereof at the rate of seven and five-tenths percent (7.5%) per annum and, effective March 12, 2010, four percent (4.0%) per annum, as set forth below.”

	
2.

	
The second paragraph of the Note shall be revised to be and read as follows:

	
  

	
“The entire unpaid balance of the Note, including accrued interest, shall be due and payable March 12, 2011.”

	
3.

	
The third sentence of the third paragraph of the Note shall be revised to be and read as follows:

	
  

	
“Any past due principal, and to the extent permitted by applicable law, interest, shall bear interest at the rate of four percent (4.0%) per annum and shall be payable on demand.”

	
4.

	
The fifth paragraph of the Note shall be revised to be and read as follows, effective March 12, 2009:

	
  

	
“This Note may be prepaid in whole or in part at any time without premium or penalty. Payments under the Note shall be credited to the portion of the Trust attributable to the SERP. Any payment of SERP benefits issued by Weingarten to a SERP plan participant directly out of Weingarten’s general assets shall be credited as a payment under the Note and shall reduce the principal amount due hereunder by the amount of such a payment, as of the date such a payment is made, provided that Weingarten shall file reasonable proof of such a payment with Reliance, which shall be filed as soon as administratively feasible after a payment is made and may consist of a cancelled check or electronic funds transfer confirmation and Weingarten’s representation of the date and amount of the payment.”

	
5.

	
As of close of business March 11, 2010, the outstanding principal balance due under this Note is $12,229,592.35 and the accrued but unpaid interest due under this Note is $960,025.51.

	
6.

	
In all other respects, the Note is hereby ratified and confirmed.

 

 

  

2

  

	
7.

	
This instrument may be executed by the parties individually or in combination, in one or more counterparts, each of which shall be an original and all of which shall together constitute one and the same instrument.

 

	 	RELIANCE TRUST COMPANY	 
	 	 	 	 
	
 

	
By:                

	/s/  Richard W. Love	 
	 	 Its (Title):	Senior Vice President	 
	 	 Date:	April 27, 2010	 
	 	 	 	 

 

 

	 	WEINGARTEN REALTY INVESTORS	 
	 	 	 	 
	
 

	
By:                

	/s/  Stephen C. Richter	 
	 	 Its (Title):	
Executive Vice-President and 

Chief Financial Officer

	 
	 	 Date:	March 11, 2010	 
	 	 	 	 

 

 

 

3

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