Fargo Electronics, Inc. 2006 Non-Employee Director Compensation Summary
Fargo Electronics, Inc. established a compensation plan for its non-employee directors effective January 1, 2006. The plan outlines annual cash retainers and additional fees for serving as lead director, committee chairs, and committee members. Non-employee directors will also receive a grant of 2,100 shares of restricted stock, which will vest in equal parts over three years. All cash payments are made quarterly. This summary sets the terms for director compensation and stock awards for the 2006 fiscal year.
Exhibit 10.3
Fargo Electronics, Inc.
2006 Non-Employee Director Compensation Summary
The Board of Directors of Fargo Electronics, Inc. approved the following fee schedule to be effective January 1, 2006 for non-employee directors:
| Annual Retainer |
| $ | 20,000 |
|
| Lead Director |
| $ | 8,000 |
|
| Audit Committee chair |
| $ | 7,000 |
|
| Audit Committee members |
| $ | 3,000 |
|
| Other Committee chairs |
| $ | 3,000 |
|
| Other Committee members |
| $ | 2,000 |
|
The Board also approved a grant of 2,100 shares of restricted stock to each non-employee director on the date of Fargo’s 2006 annual meeting. These shares will vest ratably on a cumulative basis on the first three anniversaries of the grant date.
All cash compensation will be paid quarterly.
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