Compensation Arrangements with Non-Employee Directors Effective January 1, 2006
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Summary
This agreement outlines the compensation for non-employee directors of the Company, effective January 1, 2006. Non-employee directors receive an annual cash fee of $50,000 and $2,000 for each meeting attended. Additional annual fees are provided to the Lead Director ($30,000), the Chair of the audit committee ($12,000), and other committee chairs ($6,000). Directors also receive equity compensation, including 4,000 stock options and 1,500 shares of restricted common stock. The arrangement aims to incentivize performance and align directors' interests with shareholders.
EX-10.1 2 compplan10_1.htm EXHIBIT 10.1 COMPENSATION ARRANGEMENTS WITH NON-EMPLOYEE DIRECTORS Exhibit 10.1 Compensation Arrangements with non-employee directors
EXHIBIT 10.1
COMPENSATION ARRANGEMENTS WITH NON-EMPLOYEE DIRECTORS
Effective January 1, 2006, non-employee directors of the Company shall be paid cash compensation consisting of an annual fee of $50,000 and an attendance fee of $2,000 for each meeting attended. In addition, the Lead Director shall be paid an annual fee of $30,000, the Chair of the audit committee shall be paid an annual fee of $12,000, and other committee chairs shall be paid an annual fee of $6,000. The Executive Compensation Committee believes incentive or "at risk" compensation is a key ingredient in motivating executive performance to maximize stockholder value. In 2006, non-employee directors shall be paid equity compensation consisting of 4,000 options to purchase the Company’s common stock at the prevailing price on the date of the grant and 1,500 shares of restricted common stock.
