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Non-Employee Director Compensation
Adopted December 2013, Effective as of January 1, 2014

Annual compensation for non-employee directors is as follows: Chairman of the
Board, $250,000 (cash payment, $102,575); Chaiman of the Audit Committee,
$180,000 (cash payment, $66,950) and all other non-employee directors, $75,000
(cash payment, $24,750).  The number of shares subject to the non-employee
director option is calculated using the Black-Sholes option pricing model (with
a maximum of 60,000 shares).

1.  
Options are granted to non-employee directors serving on January 1st and vest in
equal installments on the first day of January, April, July and October each
year. The cash portion of annual compensation is paid in equal quantity
installments on the first day of January, April, July and October each year.

2.  
Equity compensation of a non-employee director starting his service at the
beginning of a quarter (other than January 1st) will be prorated for the number
of days remaining in the year.  The director will be granted an option that
vests in equal installments on the first day of April, July and/or October, as
appropriate for the balance of the year beginning on the day of grant.  Cash and
equity compensation for a new director elected at the Company’s annual meeting
will commence the ensuing quarter (July 1st).

3.  
Quarterly cash compensation of a new non-employee director starting service
during a quarter will be prorated for the number of days remaining in the
quarter he starts; equity compensation will be prorated for the number of days
remaining in the year. The director will be granted an option that vests on the
day of grant with respect to the number of shares equal to the daily prorated
amount of shares multiplied by the number of days remaining in the quarter he
starts, with the remainder of the shares vesting in equal installments for the
balance of the year on the first day of April, July and/or October, as
appropriate. For example, if a new director starts his service March 1st,
assuming a 5,000 share option annual equity compensation, the new director would
receive an option for 4,192 shares,1 with 4252 shares being fully vested and the
balance of 3,767 shares vesting in installments of 1,255 shares on the first day
of April, July and October.

4.  
Any non-vested portion of a non-employee director option will automatically be
cancelled if a director’s service terminates during the year.

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1 5,000 shares/365 = 13.6986/day x 306 days = 4,192 shares (rounded to the
nearest whole share).
 
2 5,000 shares/365 = 13.6986/day x 31 days = 425 shares (rounded to the nearest
whole share).

 
 

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