Exhibit 10.1


 


SUMMARY
OF OFFICER COMPENSATION ARRANGEMENTS


 


The following table sets
forth the revised salary and bonus arrangements of certain “named executive
officers,” as defined in Item 402 of Regulation S-K, of Digirad
Corporation (the “Company”) for
2005.  The named executive officers of the Company listed below are also
eligible to receive option grants under the Company’s 2004 Stock Incentive
Plan, at the discretion of, and on the terms approved by, the board of
directors.  The determination of who constitutes a named executive officer
is being made as of July 27, 2005 and may subsequently change, depending
on the amount of cash bonuses awarded by the board of directors to the Company’s
officers with respect to services performed during the fiscal year.


 


	
   

  	
   

  	
   

  	
   

  	
  2005 Compensation

  	
   

  
	
  Executive
  Officer

  	
   

  	
  Position

  	
   

  	
  Salary (1)

  	
   

  	
  Bonus

  	
   

  
	
  Gerhard
  F. Burbach (2)

  	
   

  	
  President and Chief
  Executive Officer

  	
   

  	
  $

  	
  325,000

  	
   

  	
   

  	
  (3)

  
	
  Vera
  P. Pardee

  	
   

  	
  Vice President, General
  Counsel and Secretary

  	
   

  	
  230,000

  	
   

  	
   

  	
  (4)

  
	
  Todd
  P. Clyde

  	
   

  	
  Chief Financial Officer

  	
   

  	
  225,000

  	
   

  	
   

  	
  (4)

  
	
  Peter
  M. Sullivan (5)

  	
   

  	
  Senior Vice President
  of Operations

  	
   

  	
  200,000

  	
   

  	
   

  	
  (3)

  
	
  David
  M. Sheehan (6)

  	
   

  	
  Former President and
  Former Chief Executive Officer

  	
   

  	
  300,000

  	
   

  	
   

  	
  (4)

  
	
  Herbert
  J. Bellucci (7)

  	
   

  	
  Former Senior Vice President
  of Operations

  	
   

  	
  188,000

  	
   

  	
   

  	
  (4)

  
									



 










(1)          All salaries effective
as of April 1, 2005, other than the salaries for (a) Mr. Burbach,
which is effective as of April 25, 2005 and (b) Mr. Sullivan,
which is effective as of April 28, 2005.


 


(2)          Mr. Burbach
commenced serving as the Company’s President and Chief Executive Officer as of April 21,
2005.  Mr. Burbach has served as a
member of the Company’s board of directors since October 2004.  Mr. Burbach will also be entitled to be
reimbursed for reasonable travel and living expenses and for reasonable
expenses incurred in connection with any relocation.


 


(3)          Each of Mr. Burbach
and Mr. Sullivan is eligible to receive an annual bonus at the discretion
of the Company’s board of directors based upon meeting certain financial and
other performance criteria to be established for each such person.


 


(4)          The aggregate bonus
amount payable to the Company’s executive officers eligible to receive such
bonuses (the “Aggregate Bonus Amount”) in 2005 is equal to (i) 1.667% of
each dollar of the Company’s revenue over $68.0 million plus (ii) 5% of
each dollar of the Company’s net income if total net income is above $1.0
million.  In the event, however, that certain minimum revenue and net
income thresholds are not met, no bonuses will be paid.  Each executive
officer eligible to receive bonuses will be entitled to receive that portion of
the Aggregate Bonus Amount which is equal to the quotient obtained by dividing (i) such
executive officer’s base salary by (ii) the sum of all base salaries for
the Company’s executive officers eligible to receive bonuses.  The bonus
amounts payable to each of the Company’s executive officers may be reduced in
the event that the individual goals for each such executive officer are not
achieved.  The bonus amounts will be accrued quarterly and paid following
the completion of the Company’s 2005 audit.


 


(5)          Mr. Sullivan
commenced serving as the Company’s Senior Vice President of Operations as of April 28,
2005.  Mr. Sullivan has provided
consulting services to the Company since January 2005.  Mr. Sullivan will also be entitled to be
reimbursed for reasonable travel and living expenses and for reasonable
expenses incurred in connection with any relocation.


 


(6)          Mr. Sheehan ceased
serving as the Company’s President and Chief Executive Officer as of April 21,
2005.


 


(7)          Mr. Bellucci ceased
serving as the Company’s Senior Vice President of Operations as of April 21,
2005.