Aeolus Pharmaceuticals, Inc. Outside Director Compensation Terms (2004)
Aeolus Pharmaceuticals, Inc. established a compensation program for its outside Board members, effective July 1, 2004. Each outside director receives $15,000 per year, paid quarterly, with additional $10,000 annual compensation for Audit Committee members, also paid quarterly. Compensation is prorated for partial service. Additionally, each outside director was granted a nonqualified stock option for 20,000 shares, vesting monthly over one year, with a 10-year exercise period. These terms were approved by the Compensation Committee and Board of Directors on September 22, 2004.
Exhibit 10.114
AEOLUS PHARMACEUTICALS, INC.
Terms of Outside Director Compensation
On September 22, 2004, the Compensation Committee and the Board of Directors approved the following compensation program for the outside members of the Board of Directors.
| • | Each outside Board member will receive annual cash compensation of $15,000, which will be paid in equal quarterly payments beginning July 1, 2004. Cash compensation for new and terminating Board members will be prorated for the period of time that they are a Board member during the respective quarter. |
| • | Audit Committee members will receive an additional $10,000 of annual cash compensation, which will be paid in equal quarterly payments beginning July 1, 2004. Cash compensation for new and terminating Audit Committee members will be prorated for the period of time that they are members of the Audit Committee during the respective quarter. |
| • | Each outside Board member was granted a nonqualified stock option for 20,000 shares on September 22, 2004. The option exercise price was equal to the closing price on the grant date. The options have 10-year terms and vest, as long as the Director remains on the Board, on a monthly basis over the 12-month period beginning July 19, 2004. Vested shares will be exercisable for 10 years from the grant date. |
