Summary of Non-Employee Director Compensation for Factory Card & Party Outlet Corp.
Factory Card & Party Outlet Corp. provides non-employee directors with an annual fee of $27,500, plus additional fees for attending meetings and for serving as chairpersons of certain committees or as Chairman of the Board. Directors are also reimbursed for reasonable travel and related expenses. Non-employee directors participate in the company's stock option plan, receiving annual grants of stock options that vest over three years. The Chairman of the Board receives additional stock options under the same terms.
EXHIBIT 10.21
Summary of Non-Employee Director Compensation
The following is a summary of the compensation provided by Factory Card & Party Outlet Corp. to non-employee directors for service as a director:
Director Fees
Non-employee directors receive $27,500 per year for serving as a director, $1,000 for attending a regular or special board meeting or committee meeting ($500 if attended by telephone), plus reimbursement of all reasonable travel and out-of-pocket expenses associated with attending such meeting. The Chairman of the Compensation Committee receives an additional annual fee of $7,000, and the Chairman of the Audit Committee receives an additional annual fee of $5,000. The Chairman of the Board receives an additional annual fee of $32,500.
Non-employee directors participate in one equity compensation plan of the Company, the 2002 Non-Employee Directors Stock Option Plan. The Board has a policy for the annual grant of non-qualified stock options to purchase 5,000 shares of the Company’s Common Stock to continuing non-employee directors. All options granted to such directors will have an exercise price equal to 100% of the fair market value on the date of grant and will vest over a three-year period from the grant date.
Additionally, the Board has a policy that the Non-Executive Chairman of the Board will receive at the same time additional non-qualified stock options in the amount of 5,000 shares, which options will have the same exercise price and will also vest over a three-year period from the grant date.
