ARTHROCARE CORPORATION 2006 DIRECTOR COMPENSATION
Exhibit 10.55
ARTHROCARE CORPORATION
2006 DIRECTOR COMPENSATION
Effective 04/01/06
Cash Compensation and Fees
| Annual Retainer: Member of Board of Directors | $ | 15,000 | |
| Annual Retainer | |||
| Lead Director | $ | 30,000 | |
| Audit Chair | $ | 30,000 | |
| Compensation Chair | $ | 25,000 | |
| Nom/Governance Chair | $ | 20,000 | |
| Audit Committee Member | $ | 2,500 | |
| Board Meeting Fees | |||
| Board meetings in person | $ | 2,000 | |
| Board telephonic (< 2 hours) | $ | 500 | |
| Board telephonic (> 2 hours) | $ | 1,000 | |
Committee Meeting Fees*
| In conjunction with an in person board meeting | no fee | ||
| Telephonic** | $ | 500 per hour |
Stock Ownership and Equity Compensation
| 1. | Guideline: All Directors will be encouraged to own ArthroCare stock valued at five times the base annual cash retainer ($15,000 effective 4/1/06) within four years of their election to the board. |
| 2. | Initial Equity Grant: Upon election to the Board, a new director will receive 25,000 stock appreciation rights and $75,000 worth of restricted stock units, the exact number of which is determinable based on the closing price of the Company’s common stock on the date prior to grant. |
| 3. | Annual Equity Grant: Upon annual reelection to the Board, each director will receive 10,000 stock appreciation rights and 1,500 restricted stock units. |
* Committee Chair is responsible for annual committee meeting budget and advising CFO when meetings that warrant fees have been held.
** Telephonic meetings that are short (less than a half hour), should be added together with another similar length meeting to constitute one meeting of an hour in length. Meetings, such as Audit, which often run two hours or more, will be billed at $500 per hour, with only extra half hours accrued towards the next meeting.
