Stratus Director Compensation

Exhibit 10.20

 

Each non-employee director receives $1,000 for attendance at each board committee meeting and $500 for participation in each board committee meeting by telephone conference as well as an annual fee consisting of (a) $12,500 for serving on the board, (b) $1,000 for serving on each committee, (c) $4,000 for serving as chairman of the audit committee, and (d) $2,000 for serving as chairman of any other committee. Each director receives a fee of $1,000 for attendance at each board meeting and $500 for participation in each board meeting by telephone conference and is also reimbursed for reasonable out-of-pocket expenses incurred in attending each board and committee meeting.

The company provides equity compensation to the non-employee directors through the 1996 Stock Option Plan for Non-Employee Directors, which was approved by our stockholders. Pursuant to the plan, on September 1^st of each year, each non-employee director receives a grant of options to acquire 2,500 shares of our common stock. The options are granted at fair market value on the grant date, vest ratably over the first four anniversaries of the grant date and expire on the tenth anniversary of the grant date.