Rackable Systems, Inc. Outside Director Cash Compensation Arrangement

Contract Categories: Human Resources › Compensation Agreements
Summary

Rackable Systems, Inc. has established a cash compensation arrangement for its non-employee directors. Each non-employee director receives an annual cash payment, with additional compensation for serving as Chairperson of the Board or as Chairperson of key committees. Non-chair committee members also receive annual payments. All compensation is paid quarterly. The arrangement specifies increased compensation amounts for the year 2006.

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EX-10.37 9 dex1037.htm DIRECTOR CASH COMPENSATION ARRANGEMENT Director Cash Compensation Arrangement

Exhibit 10.37

 

RACKABLE SYSTEMS, INC.

 

OUTSIDE DIRECTOR CASH COMPENSATION ARRANGEMENT

 

FOR SERVICES AS A NON-EMPLOYEE DIRECTOR

 

Each non-employee director shall receive for his or her services as a Director of Rackable Investments, Inc., (the “Company”), annual cash compensation of $20,000 per year, payable quarterly. This amount will be increased to $35,000 for 2006.

 

The Chairperson of the Board of Directors of the Company shall receive for his or her services as the Chairperson of the Board of Directors, annual cash compensation of $10,000 per year, payable quarterly.

 

The Chairperson of the Audit Committee of the Board of Directors of the Company shall receive for his or her services as the Chairperson of the Audit Committee, annual cash compensation of $10,000 per year, payable quarterly.

 

The Chairperson of the Compensation Committee of the Board of Directors of the Company shall receive for his or her services as the Chairperson of the Compensation Committee, annual cash compensation of $5,000 per year, payable quarterly.

 

The Chairperson of the Nominating and Corporate Governance Committee of the Board of Directors of the Company shall receive for his or her services as the Chairperson of the Nominating and Corporate Governance Committee, annual cash compensation of $5,000 per year, payable quarterly.

 

Beginning in 2006, each non-chair committee member of the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee of the Board of Directors of the Company shall receive for his or her services as a non-chair committee member, annual cash compensation of $2,500 per year, payable quarterly.