Summary of Employment Arrangement and Stock Option Grants for J. Paul McGrath
This agreement outlines the employment terms for J. Paul McGrath, Senior Vice President, General Counsel & Secretary of the company. It specifies that Mr. McGrath is to receive annual stock option grants, with adjustments made for reduced grants in 2003 and 2004. To compensate, he was awarded a special stock option grant of 28,000 shares in July 2004, exercisable after one year, and will receive a cash payment of about $290,000 upon retirement. The agreement also reflects adjustments due to a stock split approved by shareholders.
Exhibit 10.4
Summary of Employment Arrangement with J. Paul McGrath
J. Paul McGrath serves as Senior Vice President, General Counsel & Secretary of the company. Mr. McGrath’s employment agreement dated December 17, 1999 provides that he will receive annually a stock option grant covering at least 50,000 shares of the company’s common stock. Due to an adjustment in the company’s general option grant practice, Mr. McGrath received grants covering only 43,000 shares in February, 2003 and 36,000 shares in February, 2004. Effective May 27, 2004, shareholders approved a three-for-one-split of the company’s common stock and outstanding stock options were adjusted accordingly. On July 7, 2004, the company approved a special stock option grant to Mr. McGrath covering 28,000 shares, to make up for his reduced grants in 2003 and 2004. This grant becomes exercisable in its entirety on July 7, 2005 and has a term of eight years. In addition, Mr. McGrath will receive a cash payment of approximately $290,000 upon retirement, representing the difference in exercise price between the July 7, 2004 grant and the earlier grants.
