Zhone Technologies Non-Employee Director Compensation Summary

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Summary

This document outlines the compensation for non-employee directors of Zhone Technologies. Directors receive an annual retainer of $10,000, which can be taken in cash or company stock. Audit Committee Chairs receive an additional $4,000 per year, while other committee members receive $2,000. Each non-employee director is also granted options to purchase 30,000 shares of company stock, vesting over four years. The Audit Committee Chair is provided with limited office space valued at $2,880 annually. These terms define the main compensation and benefits for non-employee board members.

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EX-10.1 2 dex101.htm NON-EMPLOYEE DIRECTOR COMPENSATION SUMMARY Non-Employee Director Compensation Summary

Exhibit 10.1

 

Non-Employee Director Compensation Summary

 

Annual Retainer

    $ 10,000 1

Committee Meeting Fees

         

Audit Committee Chair 2

    $ 4,000  

Committee Members (other than the Audit Committee Chair)

    $ 2,000  

Annual Option Grant

      30,000 shares 3
1 Each non-employee director may elect to receive the annual retainer in the form of cash or Zhone common stock having a value equal to the annual retainer (based on the closing price of Zhone common stock on the Nasdaq National Market on date that the annual retainer is payable).
2 In order to facilitate the role of Robert Dahl as Chair of the Audit Committee and to provide Zhone with greater access to the Chair, from time to time, Zhone provides Mr. Dahl with access to 240 square feet of excess office space that would otherwise be unused. Zhone has determined the current fair market rental value of this excess office space to be approximately $2,880 per year. Mr. Dahl owns and maintains separate phone, fax, server and computer systems, and Mr. Dahl retains his own secretarial services.
3 The option grant to each non-employee director will have an exercise price equal to the closing price of Zhone common stock on the Nasdaq National Market on the date of grant, and the shares subject to the option will vest in 48 equal monthly installments over the course of four years.