Document:

EX-10.5 INDEPENDENT DIRECTORS COMPENSATION PLAN

EXHIBIT 10.5

 

STEADFAST SECURE INCOME REIT, INC.

INDEPENDENT DIRECTORS COMPENSATION PLAN

 

 

 

STEADFAST SECURE INCOME REIT, INC.

INDEPENDENT DIRECTORS COMPENSATION PLAN

ARTICLE 1

PURPOSE

     1.1. PURPOSE. The purpose of the Plan is to attract, retain and compensate
highly-qualified individuals who are not employees of Steadfast Secure Income REIT, Inc. or any of
its subsidiaries or affiliates for service as members of the Board by providing them with
competitive compensation and an ownership interest in the Stock of the Company. The Company
intends that the Plan will benefit the Company and its stockholders by allowing Independent
Directors to have a personal financial stake in the Company through an ownership interest in the
Stock and will closely associate the interests of Independent Directors with that of the Company’s
stockholders.

     1.2. ELIGIBILITY. Independent Directors of the Company 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 Incentive Plan. Unless the context clearly indicates
otherwise, the following terms shall have the following meanings:

     “Base Annual Retainer” means the annual retainer (excluding Meeting Fees and expenses) payable
by the Company to an Independent Director pursuant to Section 5.1 hereof 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.

     “Effective Date” of the Plan has the meaning set forth in Section 9.4 of the Plan.

     “Eligible Participant” means any person who is an Independent Director on the 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.

     “Incentive Plan” means the Steadfast Secure Income REIT, Inc. 2009 Incentive Plan, or any
subsequent equity compensation plan approved by the Board and designated as the Incentive Plan for
purposes of this Plan.

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

     “Plan” means this Steadfast Secure Income REIT, Inc. Independent Directors Compensation Plan,
as amended from time to time.

     “Plan Year(s)” means the approximate twelve-month periods between annual meetings of the
stockholders of the Company, which, for purposes of the Plan, are the periods for which annual
retainers are earned.

     “Supplemental Annual Retainer” means the annual retainer (excluding Meeting Fees and

- 1 -

 

expenses) payable by the Company to an Independent Director pursuant to Section 5.2 hereof for
service as the chairperson 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 certificate of
incorporation or otherwise.

ARTICLE 4

SHARES

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

ARTICLE 5

RETAINERS, MEETING FEES AND EXPENSES

     5.1. BASE ANNUAL RETAINER. Each Eligible Participant shall be paid a Base Annual
Retainer for service as a director during each Plan Year, payable in such form as shall be elected
by the Eligible Participant in accordance with Section 6.1. The amount of the Base Annual Retainer
shall be established from time to time by the Board. Until changed by the Board, the Base Annual
Retainer for a full Plan Year shall be $65,000. The Base Annual Retainer shall be payable in
approximately equal quarterly installments in advance, beginning on the date of the annual
stockholders meeting. A pro rata Base Annual Retainer will be paid to any person who becomes an
Eligible Participant on a date other than the beginning of a Plan Year, based on the number of full
months he or she serves as an Independent Director during the Plan Year. Payment of such prorated
Base Annual Retainer shall begin on the date that the person first becomes an Eligible Participant,
and shall resume on a quarterly basis thereafter. In no event

- 2 -

 

shall any installment of the Base Annual Retainer be paid later than March 15 of the year following
the year to which such installment relates.

     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 in such form as shall be elected by such chairperson
in accordance with Section 6.1 and payable at the same times as installments of the Base 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 $10,000. 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 March 15 following the end of the given quarter.

     5.3. MEETING FEES. Each Independent Director shall be paid Meeting Fees for attending
meetings of the Board or its committees, payable in such form as shall be elected by the Eligible
Participant in accordance with Section 6.2. 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 $3,000 and the Meeting Fee for attending a meeting of a
committee of the Board in person shall be $2,000. Until changed by the Board, the Meeting Fee for
participation in a telephonic meeting of the Board or a committee of the Board, provided that
minutes are kept at such telephonic meeting, shall be $1,000. If an Independent Director attends a
Board meeting and a committee meeting on a single day, he or she shall only receive a Meeting Fee
for the Board meeting attended. Meeting Fees shall be payable on the date of the applicable
meeting to which they relate.

     5.4. TRAVEL EXPENSE REIMBURSEMENT. All Eligible Participants shall be reimbursed for
reasonable travel expenses (including spouse’s expenses to attend events to which spouses are
invited) 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 within 30 days after
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

ALTERNATIVE FORMS OF PAYMENT FOR BASE ANNUAL RETAINER,

SUPPLEMENTAL ANNUAL RETAINER AND MEETING FEES

     6.1. PAYMENT OF BASE ANNUAL RETAINER AND SUPPLEMENTAL ANNUAL RETAINER. At the election
of each Eligible Participant, the Base Annual Retainer or

- 3 -

 

the Supplemental Annual Retainer for a given Plan Year shall be either (i) payable in cash in
approximately equal quarterly installments in advance, beginning on the date of the annual
stockholders meeting, or (ii) subject to share availability under the Incentive Plan, payable by a
grant on the day an installment of the Base Annual Retainer or Supplemental Annual Retainer is
normally paid (the “Stock Grant Date”) of that number of shares of Stock determined by dividing the
Base Annual Retainer or Supplemental Annual Retainer installment otherwise payable by the Fair
Market Value per share of Stock on the Stock Grant Date (rounded up to the nearest whole share).
Any shares of Stock granted under the Plan as the Base Annual Retainer or Supplemental Annual
Retainer under clause (ii) above will be 100% vested and nonforfeitable as of the Stock Grant Date,
and the Eligible Participant receiving such shares of Stock (or his or her custodian, if any) will
have immediate rights of ownership in the shares of Stock, including the right to vote the shares
of Stock and the right to receive dividends or other distributions thereon.

     6.2. PAYMENT OF MEETING FEES. At the election of each Eligible Participant, the
Meeting Fees to be earned during a Plan Year by such Eligible Participant shall be either (i)
payable in cash at each meeting date or such other date(s) on which such fees are normally paid, or
(ii) subject to share availability under the Incentive Plan, payable by a grant on the day
following each meeting date (the “Meeting Fee Stock Grant Date”) of that number of shares of Stock
determined by dividing the Meeting Fees otherwise payable on the meeting date by the Fair Market
Value per share of Stock on the Meeting Fee Stock Grant Date (rounded up to the nearest whole
share). Any shares of Stock granted under the Plan as Meeting Fees under clause (ii) above will be
100% vested and nonforfeitable as of the Meeting Fee Stock Grant Date, and the Eligible Participant
receiving such shares of Stock (or his or her custodian, if any) will have immediate rights of
ownership in the shares of Stock, including the right to vote the shares of Stock and the right to
receive dividends or other distributions thereon.

     6.3. TIMING AND MANNER OF PAYMENT ELECTION. Each Eligible Participant shall elect the
form of payment desired for his or her Base Annual Retainer, Supplemental Annual Retainer (if
applicable) and Meeting Fees for a Plan Year by delivering a valid election form in such form as
the Board or the plan administrator shall prescribe (the “Election Form”) to the Board or the plan
administrator prior to the beginning of such Plan Year, which will be effective as of the first day
of the Plan Year beginning after the Board or the plan administrator receives the Eligible
Participant’s Election Form. The Election Form signed by the Eligible Participant prior to the
Plan Year will be irrevocable for the coming Plan Year. However, prior to the commencement of the
following Plan Year, an Eligible Participant may change his or her election for future Plan Years
by executing and delivering a new Election Form indicating different choices. If an Eligible
Participant fails to deliver a new Election Form prior to the commencement of the new Plan Year,
his or her Election Form in effect during the previous Plan Year shall continue in effect during
the new Plan Year. If no Election Form is filed or effective, or if there are insufficient shares
of Stock in the Incentive Plan, the Base Annual Retainer, Supplemental Annual Retainer (if
applicable) and Meeting Fees will be paid in cash.

ARTICLE 7

EQUITY COMPENSATION

     7.1. INITIAL RESTRICTED STOCK GRANT. Subject to share availability under the Incentive
Plan, each Independent Director shall receive on the first date he or she is initially elected or
appointed to the Board, 5,000 shares of Restricted Stock. Notwithstanding the foregoing, each
Independent Director elected or appointed to the Board prior to the adoption of the Plan and who
remains as an Independent Director as of the date the Plan is adopted shall receive the Restricted
Stock grant on such date the Plan is adopted. Such Restricted Stock shall

- 4 -

 

be subject to the terms and restrictions described below in this Article 7.

     7.2. SUBSEQUENT RESTRICTED STOCK GRANT. Subject to share availability under the
Incentive Plan, upon subsequent re-election of the Independent Director to the Board, such director
shall receive 2,500 shares of Restricted Stock.

     7.3. TERMS AND CONDITIONS OF RESTRICTED STOCK. Shares of Restricted Stock shall be
evidenced by a written Award Certificate, and shall be subject to such restrictions and risk of
forfeiture as determined by the Board, and shall be granted under and pursuant to the terms of the
Incentive Plan. Unless and until provided otherwise by the Board, the Restricted Stock granted
pursuant to Section 7.1 and Section 7.2 herein shall vest and become non-forfeitable as to
one-fourth (1/4) of the shares on the Grant Date and as to one-fourth (1/4) of the shares on each
of the first three (3) anniversaries of the Grant Date; provided, however, that the shares of
Restricted Stock shall become fully vested on the earlier occurrence of (i) the termination of the
Independent Director’s service as a director of the Company due to his or her death or Disability,
or (ii) a Change in Control of the Company. If the Independent Director’s service as a director of
the Company terminates other than as described in clause (i) of the foregoing sentence, then the
Independent Director shall forfeit all of his or her right, title and interest in and to any
unvested shares of Restricted Stock as of the date of such termination from the Board and such
Restricted Stock shall be reconveyed to the Company without further consideration or any act or
action by the Independent Director.

ARTICLE 8

AMENDMENT, MODIFICATION AND TERMINATION

     8.1. 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 a securities exchange on which the Stock is listed or traded, 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 9

GENERAL PROVISIONS

     9.1. ADJUSTMENTS. The adjustment provisions of the Incentive Plan shall apply with
respect to Restricted Stock or other equity awards outstanding or to be granted pursuant to this
Plan.

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

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

     9.4.
EFFECTIVE DATE. The Plan was originally adopted by the Board on September 17, 2009, and became effective on that date (the “Effective Date”).

- 5 -

 

*****

     The foregoing is hereby acknowledged as being the Steadfast Secure Income REIT, Inc.
Independent Directors Compensation Plan as adopted by the Board.

	 	 	 	 	 	 	 
	 	 	STEADFAST SECURE INCOME REIT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Rodney F. Emery	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Rodney F. Emery
Chief Executive Officer	 	 

- 6 -exv10w1

Exhibit 10.1

Fiscal Year 2010 Disk Drive Components Division Management Bonus Plan

of Hutchinson Technology Incorporated

     We have a fiscal year 2010 management bonus plan that covers executive officers and certain
other management-level employees of our Disk Drive Components Division. The plan is designed to
create an incentive for management of our Disk Drive Components Division to achieve goals that our
board of directors believes align with the interests of our long-term shareholders. The plan design
includes an annual corporate financial goal as well as additional division strategic goals.
Individual bonus targets, expressed as a percentage of base salary, are approved for all executive
officers by our board of directors upon the recommendation of the board’s compensation committee.

     Fifty percent of the bonus target is dependent on our achievement of an annual corporate
financial goal, which is set giving consideration to both near- and long-term financial
performance. For fiscal year 2010, sixty percent of the corporate financial goal is based on our
earnings before taxes (“EBT”), and the remaining forty percent of the corporate financial goal is
based on our cash and liquid investments balance. The award amounts to be paid based on our EBT and
our cash and liquid investments balance are determined based on whether our actual EBT and our
actual cash and liquid investments balance for the fiscal year are above (subject to a ceiling,
above which no further amounts are awarded) or below (subject to a floor, below which no amounts
are awarded) the pre-established goal for our EBT and our cash and liquid investments balance.

     The remainder of the bonus target is dependent on achievement of certain division strategic
goals in the areas of market position, manufacturing proficiency, and long-term growth. As with the
corporate financial goal, the award amount to be paid based on these strategic goals is subject to
a ceiling (above which no further amounts are awarded) and a floor (below which no amounts are
awarded) in relation to achievement of certain pre-established thresholds. Fifty percent of the
annual cash incentive opportunity for executive officers who provide corporate support to both of
our business divisions is based on the achievement of division strategic goals, divided equally
between the strategic goals established by this plan and by our Fiscal Year 2010 BioMeasurement
Division Management Bonus Plan.

     The decision to pay bonuses is made annually by our board of directors upon the recommendation
of the compensation committee of our board. Bonuses are paid in cash in the first quarter of the
following fiscal year. The actual total bonus amount paid to any participant may not exceed 200% of
the participant’s bonus target, and the actual total bonus amounts paid to all participants under
this plan and under our Fiscal Year 2010 BioMeasurement Division Management Bonus Plan may not
exceed the sum of 50% of the portion of our actual EBT that is less than or equal to the pre-established
goal for our EBT and 25% of any portion of our actual EBT that exceeds that goal.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]