2005 Executive Bonus Criteria and Stock Option Vesting Terms for Executive Officers
This document outlines the 2005 executive bonus criteria and stock option vesting terms for executive officers of the corporation. The Compensation Committee determines bonuses based on each officer's performance and the company's results, considering factors like earnings per share. It also details how stock options granted under the 1998 Stock Option and Incentive Compensation Plan vest over time, with specific schedules for named executive officers. The agreement sets out when and how executives can exercise their stock options, depending on their grant dates and individual terms.
EXHIBIT 10 (c) EXECUTIVE COMPENSATION
2005 Executive Bonus Criteria
The Board of Directors’ Compensation Committee bases its determination whether to pay a bonus and the amount of the bonus to the Corporation’s executive officers based upon the Committee’s evaluation of the performance of each officer and the Corporation’s results, using a variety of performance factors including earnings per share.
Stock Option Vesting
Stock options granted under the Corporation’s 1998 Stock Option and Incentive Compensation Plan are generally granted to executive officers on the terms and conditions set forth in the form of stock option agreement filed as an exhibit to the Corporation’s Annual Report on Form 10-K. In general, options for 20% of the total number of shares subject to the grant become exercisable on January 1 of each calendar year following the date of grant, until the options become 100% exercisable on January 1 of the fifth calendar year following the date of grant. Options granted to executive officers on different vesting terms are described in the following table.
| Executive Officer |
| Date of Grant |
| Vesting Terms |
|
|
|
|
|
|
| Anne Moran |
| 11/23/99 |
| 25% on 11/23 of each year beginning 11/23/01 |
|
|
|
|
|
|
| Gregory S. Schreacke |
| 1/21/04 |
| 100% exercisable on 1/21/09 |
|
|
|
|
|
|
| Charles Chaney |
| 12/21/04 |
| 100% exercisable on 1/1/06 |
|
|
|
|
|
|
| Gregory S. Schreacke |
| 12/21/04 |
| 20% per year, beginning 1/1/09 |
