PLC Systems Inc. Executive Officers Compensation Arrangements (2006)
PLC Systems Inc. has set the 2006 compensation terms for its executive officers, including base salaries, annual cash bonuses, and car allowances. Bonuses are based 25% on company financial performance and 75% on achieving specific program milestones, with target bonus percentages varying by executive. Some officers also receive annual car allowances, and all may be granted stock options under the company's 2005 Stock Incentive Plan. These arrangements were approved by the Compensation Committee and apply for the fiscal year ending December 31, 2006.
EXHIBIT 10.23
Compensatory Arrangements with Executive Officers
Base Salary
The current annual base salaries of each of the executive officers of PLC Systems Inc. (the “Company”) are as follows:
| Mark R. Tauscher, President, Chief Executive Officer and Director |
| $ | 286,841 |
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| James G. Thomasch, Senior Vice President of Finance and Administration, |
| $ | 180,081 |
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| Dr. Robert I. Rudko, Chief Scientist |
| $ | 198,275 |
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| Michael F. Adams, Vice President of New Ventures |
| $ | 169,744 |
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| Kenneth J. Luppi, Vice President of Operations |
| $ | 147,583 |
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Cash Bonus Compensation
On February 1, 2006, the Compensation Committee of the Board of Directors (the “Compensation Committee”) of the Company adopted bonus arrangements for its executive officers for 2006. Messrs. Tauscher, Thomasch, Adams, Luppi and Rudko will receive a bonus based 25% on the financial performance of the Company’s business and 75% on the attainment of defined program milestones during the fiscal year ending December 31, 2006. The target bonus payment for Mr. Tauscher is 50% of his base salary, for Mr. Thomasch 40% of his base salary, and for Messrs. Adams, Luppi and Rudko is 30% of each of their respective base salaries. The target bonus payments may be adjusted downwards if the financial performance of the Company’s business does not meet the targets or the Company does not attain the defined program milestones.
Other Compensation
Mr. Tauscher and Mr. Thomasch each currently receive an annual car allowance of $12,000. Mr. Adams, Mr. Luppi and Dr. Rudko each currently receive an annual car allowance of $6,000.
The Compensation Committee may also, from time to time, award each of the executive officers compensation in the form of stock options granted under the Company’s 2005 Stock Incentive Plan.
