Exhibit 10.32

 

Non-Employee Director Compensation Summary

 

CollaGenex Pharmaceuticals, Inc.’s (the “Company’s”) non-employee directors
currently consist of: (i) Peter R. Barnett, D.M.D.; (ii) Robert C. Black; (iii)
James E. Daverman; (iv) Robert J. Easton; (v) Brian M. Gallagher, Ph.D.; (vi) W.
James O’Shea; (vii) Robert A. Beardsley; and (viii) George M. Lasezkay,
Pharm.D., J.D.

 

In 2005, non-employee directors of the Company received an annual retainer,
which was paid quarterly.  In addition to this retainer, non-employee directors
were entitled to receive a fee for each regularly scheduled board meeting
attended in person, an annual fee for each committee on which the non-employee
director serves and a fee for each committee the non-employee director chairs. 
The table below sets forth the annual retainer, per board meeting fees, annual
committee meeting fees and fees per committee chaired paid to our non-employee
directors in 2005:

 

 

 

2005 Annual
Retainer(1)

 

Fee Per Board
Meeting
Attended

 

Annual Fee Per
Committee
Served

 

Annual Fee Per
Committee
Chaired

 

Peter Barnett

 

$

15,000

 

$

2,000

 

$

3,000

 

$

10,000

 

Robert Black

 

$

15,000

 

$

2,000

 

$

3,000

 

$

5,000

 

James Daverman

 

$

22,500

 

$

3,000

 

$

3,000

 

—

 

Robert Easton

 

$

15,000

 

$

2,000

 

$

3,000

 

—

 

Brian Gallagher

 

$

15,000

 

$

2,000

 

—

 

—

 

James O’Shea

 

$

15,000

 

$

2,000

 

—

 

$

5,000

 

Robert A. Beardsley

 

$

15,000

 

$

2,000

 

$

3,000

 

—

 

George M. Lasezkay(2)

 

$

4,981

(3)

$

2,000

 

$

3,000

 

—

 

 

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(1)                      In addition, the Company provided reimbursement to
directors for reasonable and necessary expenses incurred in connection with
attendance at meetings of the Board of Directors and other Company business.

 

(2)                      Mr. Lasezkay was appointed to the Company’s Board of
Directors on September 22, 2005.

 

(3)                      Represents the pro-rata portion of a $15,000 annual
retainer commencing on September 22, 2005.

 

On May 25, 2005, the Company granted to each non-employee director, options to
purchase 12,000 shares of common stock, with the exception of Mr. Daverman, the
Chairman of the Board, who received options to purchase 18,000 shares of common
stock, each at an exercise price per share of $4.58.  Such options vest in four
equal annual installments commencing one year after the date of grant.  Upon his
appointment to the Board in September 2005, Mr. Lasezkay was granted options to
purchase 25,000 shares of common stock at an exercise price

 

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per share of $9.78.  Such options vest in five equal annual installments
commencing one year after the date of grant.

 

In 2006, the non-employee directors of the Company will receive an annual
retainer.  In addition to this retainer, non-employee directors will receive a
fee for each regularly scheduled board meeting attended in person, an annual fee
for each committee on which the non-employee director serves and a fee for each
committee the non-employee director chairs.  The table below sets forth the
annual retainer, per board meeting fees, annual committee meeting fees and fees
per committee chaired which will be paid to our non-employee directors in 2006:

 

 

 

2006 Annual
Retainer(1)

 

Fee Per Board
Meeting
Attended

 

Annual Fee Per
Committee
Served

 

Annual Fee Per
Committee
Chaired

 

Peter Barnett

 

$

15,000

 

$

2,000

 

$

3,000

 

$

10,000

 

Robert Black

 

$

15,000

 

$

2,000

 

$

3,000

 

$

5,000

 

James Daverman

 

$

22,500

 

$

3,000

 

$

3,000

 

—

 

Robert Easton

 

$

15,000

 

$

2,000

 

$

3,000

 

—

 

Brian Gallagher

 

$

15,000

 

$

2,000

 

—

 

—

 

James O’Shea

 

$

15,000

 

$

2,000

 

—

 

$

5,000

 

Robert A. Beardsley

 

$

15,000

 

$

2,000

 

$

3,000

 

—

 

George M. Lasezkay

 

$

15,000

 

$

2,000

 

$

3,000

 

—

 

 

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(1)                      In addition, the Company provided reimbursement to
directors for reasonable and necessary expenses incurred in connection with
attendance at meetings of the Board of Directors and other Company business.

 

Upon re-election at the Company’s annual meetings of stockholders, each
non-employee director shall automatically be granted an option to purchase
12,000 shares of the Company’s common stock, with the exception of Mr. Daverman
who shall be granted an option to purchase 18,000 shares of the Company’s Common
Stock, at an exercise price per share equal to the then current fair market
value per share.  All such options shall become exercisable in four equal annual
installments commencing one year after the date of grant, provided that the
optionee then remains a director.

 

Each new non-employee director is automatically granted an option to purchase
25,000 shares of common stock, at an exercise price per share equal to the then
current fair market value per share.  All such options shall become exercisable
in five equal annual installments commencing one year after the date of grant,
provided that the optionee then remains a director.  The right to exercise
annual installments of options under the Plan will be reduced proportionately
based on the optionee’s actual attendance at meetings of the Board of Directors
if the optionee fails to attend at least 75% of the meetings of the Board of
Directors held in any calendar year.

 

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