Exhibit 10.3

 

Bob Haas Terms

 

This document summarizes the basic terms of Mr. Haas’ role as Chairman of the
Board based on an expected retirement date of August 1, 2005. The terms included
in this document will be presented to LS&CO.’s Board of Directors for approval
in July, 2005.

 

Compensation:

 

Component

--------------------------------------------------------------------------------

 

Amount

--------------------------------------------------------------------------------

Chairman of the Board

Annual Retainer Fee

  $250,000 (annualized gross; prorated in 2005 based on Mr. Haas’ retirement
date)

2005 Senior Executive

Long-Term Incentive

Plan (SELTIP) – [One-Time Transition from Active Employee to Retiree Status]

 

Revised 2005 Grant Target Value*: $100,000

 

 

 

*Revised 2005 target SELTIP grant was established based on a pro-ration of the
following: 1/6th of Mr. Haas’ current 2005 grant with a target value of $62,500
and 5/6th of the 2005 grant provided to LS&Co’s. Board members with a target
value of $37,500. Ongoing participation in the Company’s long-term incentives
will be based on the grant guidelines for members of LS&Co.’s Board of
Directors.

 

Other:

 

•   The Company will continue to provide Mr. Haas with an office at its
headquarters, office equipment, subscriptions, technical and administrative
support consistent with current arrangements.

 

•   Mr. Haas will also be eligible to participate in the following compensation
and benefits programs:

 

  •   The Company’s compensation and benefits plan provided to members of the
Board of Directors, including meeting fees, D&O insurance and travel insurance.

 

  •   The standard retiree benefits plan that applies to LS&Co.’s senior
executives based on Mr. Haas’ years of service and compensation.

 

  •   Continued participation in the Company’s executive perquisite program that
includes a company paid automobile (including maintenance), transportation to
and from Company meetings and events, and club memberships.

 

  •   The Company will continue to reimburse all travel and entertainment
expenses incurred by Mr. Haas that are related to fulfilling his duties as
Chairman of the Board.

 

1