Exhibit
10.1


SCHEDULE


LSI Non-Employee Director Compensation


I.                                         Annual Cash Compensation


Annual cash retainers (to be
paid in quarterly installments), plus out-of-pocket expenses as outlined in the
table below.  The initial payment of this
cash compensation shall be made upon the first meeting of the Board of
Directors held after completion of the proposed initial public offering of the
Corporation.  In addition, each year,
directors may elect to receive all of their annual cash payments in the form of
stock option grants. To make such election, directors shall deliver an
irrevocable, written notice thereof to the Corporation’s Secretary between
September 1st and
September 30th of the
fiscal year immediately prior to the year for which the director wishes to make
the election. The grant date shall be the first day of the fiscal year for
which the election is made. These stock options will have a one year vesting
period, such that 100% of the options will vest on the one year anniversary of
the grant date.  The exercise price shall
be, in accordance with the terms of the Corporation’s 2006 Long Term Omnibus
Incentive Plan, the closing price of the Corporation’s common stock on the
first day of the fiscal year for which the election is made (or if the Nasdaq
National Market is closed for trading on such day, then the closing price on
the next day on which the Nasdaq National Market is open for trading). The
determination of the number of stock options each director is entitled to
receive shall be made as of the first day of the fiscal year for which the
director wishes to make the election. 
The Corporation shall use the valuation method described below in
Section II, Annual Equity Compensation, under the heading, “Black-Scholes
Option Valuation,” to determine the number of options directors would be
entitled to receive in lieu of their respective cash payments. Such valuation
method shall be used solely for the purpose of determining the number of
options each director shall be entitled to receive.


 


	
   

  	
   

  	
  Cash Amount

  	
   

  
	
  Annual
  Retainer

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Annual
  Audit Committee Chairman

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  Annual
  Compensation Committee Chairman

  	
   

  	
  $

  	
  5,000

  	
   

  
	
  Annual Nominating/Governance
  Committee Chairman

  	
   

  	
  $

  	
  5,000

  	
   

  



 









 



SCHEDULE 1 (cont.)


II.                                     Annual Equity Compensation


Annual equity compensation
valued at approximately $34,000 per annum as determined in accordance with
Black Scholes standard valuation of option grants (see table below for an
example of a valuation calculation). 
These options will have a ten year exercise period and shall vest
corresponding to the period of service.


Black-Scholes Option
Valuation


	
  Black-Scholes
  Option Valuation

  	
   

  	
   

  	
   

  
	
  Market Price

  	
   

  	
  $

  	
  12.8900

  	
   

  
	
  Exercise Price

  	
   

  	
  $

  	
  12.8900

  	
   

  
	
  Annual
  Volatility

  	
   

  	
  41.1000

  	
  %(a)

  
	
  Risk-Free Rate

  	
   

  	
  4.6600

  	
  %

  
	
  Dividend

  	
   

  	
  0.0000

  	
  %

  
	
  Expected Life
  (years)

  	
   

  	
  2.0000

  	
  (b)

  
	
  Black-Scholes

  	
   

  	
  $

  	
  3.4249

  	
   

  
	
  Number of
  Options

  	
   

  	
  20,000

  	
   

  
	
  Total Value

  	
   

  	
  $

  	
  68,498

  	
   

  
	
  Amortization
  Period (Yrs)

  	
   

  	
  2

  	
   

  
	
  Value Per Year

  	
   

  	
  34,249

  	
   

  



Notes:






(a)             Source:
Bloomberg


(b)            Expected
timeframe under which options will be exercised.


(c)             Assumes
expected life of two years.




	
  d1

  	
   

  	
  0.450967

  
	
  d2

  	
   

  	
  (0.130275)

  
	
  N(d1)

  	
   

  	
  0.673993

  
	
  N(d2)

  	
   

  	
  0.448175

  
	
  Formulas

  	
   

  	
   

  
	
  d1

  	
   

  	
  =(LOG(B2/B3)+((B5-B6)+(B4*B4)/2)*B7)/(B4*SQRT(B7))

  
	
  d2

  	
   

  	
  +D3-B4*SQRT(B7)

  
	
  N(d1)

  	
   

  	
  =NORMDIST(D3,0,1,1)

  
	
  N(d2)

  	
   

  	
  =NORMDIST(D4,0,1,1)

  
	
  BSValue

  	
   

  	
  =B2*EXP(-B6*B7)*D5-B3*EXP(-B5*B7)*D6