Document:

Exhibit 10.6 to IntriCon Corporation Form 10-K for fiscal year ended December 31, 2009

Exhibit
10.6

Summary
Sheet for Director Fees

In December
2009, the Compensation Committee determined that the fees payable to directors
in 2010 would remain the same as those paid in 2009. Accordingly, for 2010:

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 the chairman
 of the Board will receive an annual retainer of $49,000, the chairman of the
 Audit Committee will receive an annual retainer of $34,000 and each
 non-employee member of the Board, other than the chairman of the Board and
 the chairman of the Audit Committee, will receive an annual retainer of
 $24,000, in each case payable in quarterly installments.

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 each
 non-employee member of the Board will received $1,000 for each Board meeting
 attended in person and $500 for each telephonic meeting of the Board
 attended, and $1,000 for each committee meeting attended in person and $500
 for each telephonic meeting of the committee attended of which such
 non-employee member of the Board is a member; however, no fee will be payable
 for telephonic board and committee meetings that last less than 30 minutes.

 

Effective
April 1, 2009, the non-employee directors elected to temporarily reduce their
quarterly retainer installments and meeting fees by 20% at the same time that
the Company effected a reduction in the salaries of officers and employees in
an effort to reduce costs during the economic slowdown. The amounts set forth
in the preceding paragraph do not reflect the temporary 20% reduction. There
has been no defined timeline for restoring the employee salaries or director
quarterly retainer installments and meeting fees. 

Directors are
eligible to receive awards pursuant to the 2006 Equity Incentive Plan. Options
are automatically granted to each person who is re-elected or continues as a
non-employee director at the annual meeting of shareholders of the Company as
follows: the Chairman is granted options to purchase 12,000 shares of common
stock and the other non-employee directors each are granted options to purchase
10,000 shares of common stock. The exercise price will be equal to the closing
price of the common stock of the Company on the date of the annual meeting. The
options will vest in three equal, annual installments beginning one year after
the date of grant, except that they will become immediately exercisable upon a
“change in control” as defined in the 2006 Equity Incentive Plan or upon the
death or disability of the recipient, and will expire ten years after the date
of grant, unless terminated earlier by the terms of the option. 

Directors are
also eligible to participate in the Non-Employee Directors Stock Fee Election
Program (the “Program”) under the Company’s 2006 Equity Incentive Plan. The
Program gives each non-employee director the right under the Incentive Plan to
elect to have some or all of his quarterly director fees paid in shares of the
Company’s common stock rather than cash. The minimum amount that can be the
subject of such election by a director is 25% of his quarterly director fees.
The shares to be issued will be valued based on the last reported sale price of
the common stock as reported on The Nasdaq Global Market on the first business
day of each calendar quarter when quarterly director fees are paid. The number
of shares that will be issued for any such quarterly director fees with respect
to which an election is in effect will be equal to the amount of the election
divided by the applicable last sale price. No fractional shares will be issued
and a director will receive cash in lieu of any fractional shares. That portion
of the quarterly director fees for which no election is in effect will continue
to be paid in cash. The shares so purchased will be deemed fully vested as of
the quarterly payment date. 

Under the
Non-Employee Director and Executive Officer Stock Purchase Program, directors
may purchase common stock directly from the Company at the last reported sale
price on the date that the election to purchase is made. 

78Exhibit 10.7 to IntriCon Corporation Form 10-K for fiscal year ended December 31, 2009

Exhibit
10.7

Summary
Sheet for Executive Officer Compensation

Base Salary

Effective
April 1, 2009, in an effort to reduce costs during the economic slowdown, the
Company effected reductions in the salaries of officers and employees. Mr.
Gorder’s salary was reduced by 20%, the salaries of each of our other executive
officers were reduced by 15% and the salaries of our employees were reduced by
5-10%. There has been no defined timeline for restoring the employee salaries
or directors quarterly retainer installments and meeting fees.

In December
2009 and February 2010, the Compensation Committee considered the base salaries
of the executive officers for 2010. The Compensation Committee increased the
base salary of Mr. Gruenhagen to $150,000, retroactive to January 1, 2009, but
subject to the 15% salary reduction for executive officers. The Compensation
Committee determined that due to the economic climate, the base salaries of the
other executive officers would not be increased. In February 2010, the
Compensation Committee made determinations with respect to the bonuses and
stock options to be awarded to the executive officers for services in 2009 as
follows: 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
 2010 Annual 
Base
 Salary

 	
  

 	
 2009
 Annual

 Bonus

 	
  

 	
 Stock
 Options

 Awarded

 	
  

 
	
 Mark S.
 Gorder,

 President and Chief Executive Officer

 	
  

 	
 $

 	
 350,000

 	
  

 	
 $

 	
 —

 	
  

 	
  

 	
 15,000

 	
  

 
	
 Scott
 Longval,

 Chief Financial Officer and Treasurer

 	
  

 	
 $

 	
 165,000

 	
  

 	
 $

 	
 —

 	
  

 	
  

 	
 10,000

 	
  

 
	
 Steven M.
 Binnix,

 Vice President and General Manager of RTIE

 	
  

 	
 $

 	
 175,000

 	
  

 	
 $

 	
 —

 	
  

 	
  

 	
 —

 	
  

 
	
 Christopher
 D. Conger, 

 Vice President, Research and Development

 	
  

 	
 $

 	
 185,000

 	
  

 	
 $

 	
 —

 	
  

 	
  

 	
 10,000

 	
  

 
	
 Michael P.
 Geraci,

 Vice President, Sales and Marketing

 	
  

 	
 $

 	
 200,000

 	
  

 	
 $

 	
 —

 	
  

 	
  

 	
 10,000

 	
  

 
	
 Dennis L.
 Gonsior,

 Vice President, Global Operations

 	
  

 	
 $

 	
 185,000

 	
  

 	
 $

 	
 —

 	
  

 	
  

 	
 10,000

 	
  

 
	
 Greg
 Gruenhagen

 Vice President of Corporate Quality

 	
  

 	
 $

 	
 150,000

 	
  

 	
 $

 	
 —

 	
  

 	
  

 	
 10,000

 	
  

 

*Amounts shown
do not reflect temporary salary reductions of 20% for Mr. Gorder and 15% for
all other executive officers.

The exercise
price of the stock options is equal to $3.16 per share, the closing price of
the common stock of the Company on the date of the Compensation Committee
meeting. The options will vest and become exercisable (which may be in whole or
in part as determined by the Committee) on or after December 31, 2011 based on
the Company’s satisfaction of certain strategic objectives established by the
Committee, except that the options will become immediately exercisable upon a
“change in control” as defined in the 2006 Equity Incentive Plan or the death
or disability of the recipient, and will expire ten years after the date of
grant, unless terminated earlier by the terms of the option. The Committee has
the discretion to determine whether the strategic objectives have been
satisfied and to adjust the strategic objectives and vesting of the options as
circumstances warrant. 

2010 Incentive Plan 

In February
2010, the Compensation Committee adopted the 2010 Incentive Plan, which is not
set forth in a written agreement. Pursuant to the 2010 Incentive Plan, certain
executive officers of IntriCon are eligible to receive incentive compensation
based on (i) IntriCon achieving a designated level of adjusted income from
continuing operations for 2010, referred to as the “plan target” and (ii)
achievement of designated strategic objectives. A participant will receive
incentive compensation only if both the minimum plan target and some or all of
the strategic objectives are achieved. Based on IntriCon achieving from 80% to
150% of the plan target for 2010 and achieving all strategic objectives, Mr.
Gorder will be eligible to receive incentive compensation ranging from 25% to
75%, respectively, of his 2010 salary and each of the other executive officers
named below will be eligible to receive incentive compensation ranging from 20%
to 60%, respectively, of their 2010 salary. Between these points, the amount of
the incentive compensation available will increase or decrease proportionately
based upon IntriCon achieving more or less than the plan target; however, no
incentive compensation will be paid if IntriCon achieves less than 80% of the
plan target and the maximum incentive compensation payable is capped at
IntriCon achieving 150% of the plan target. The plan target is based on 2010
income from continuing operations, as adjusted to add back stock option expense
for 2010; provided, that the plan target will not be achieved unless all 2010
salary reductions to all employees have been paid or accrued (and therefore
reflected in 2010 income from continuing operations). Further, the plan target
must be achieved after accruing any incentive compensation payable under the
2010 Incentive Plan.

79

The following
table shows the potential amounts payable to the executive officers named below
under the 2010 Incentive Plan at different levels of the plan target, assuming,
in each case, that all of the strategic objectives are met:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Potential
 incentive compensation payable under 

 the 2010 Incentive Plan at the following levels of 

 Plan Target:

 	
  

 
	
  

 	
  

 	
 Minimum

 (80% of Plan

 Target)

 	
  

 	
 Target 

 (100% of Plan

 Target)

 	
  

 	
 Maximum

 (150% of Plan

 Target)

 	
  

 
	
 Name

 	
  

 	
 Potential
 Incentive Compensation

 	
  

 
	
 Mark S.
 Gorder

 	
  

 	
 $

 	
 87,500

 	
  

 	
 $

 	
 175,000

 	
  

 	
 $

 	
 262,500

 	
  

 
	
 Scott
 Longval

 	
  

 	
  

 	
 33,000

 	
  

 	
  

 	
 66,000

 	
  

 	
  

 	
 99,000

 	
  

 
	
 Christopher
 D. Conger

 	
  

 	
  

 	
 37,000

 	
  

 	
  

 	
 74,000

 	
  

 	
  

 	
 111,000

 	
  

 
	
 Michael P.
 Geraci

 	
  

 	
  

 	
 40,000

 	
  

 	
  

 	
 80,000

 	
  

 	
  

 	
 120,000

 	
  

 
	
 Dennis L.
 Gonsior

 	
  

 	
  

 	
 37,000

 	
  

 	
  

 	
 74,000

 	
  

 	
  

 	
 111,000

 	
  

 
	
 Greg
 Gruenhagen

 	
  

 	
  

 	
 30,000

 	
  

 	
  

 	
 60,000

 	
  

 	
  

 	
 90,000

 	
  

 

The Committee
has the discretion to determine whether (and at what level) the plan target and
strategic objectives have been satisfied and to adjust the plan target and
strategic objectives as circumstances warrant. The Committee also has the
authority to weight the importance of the strategic objectives and to determine
the amount of the awards if less than all of the strategic objectives are
achieved.

Plans and Other
Arrangements

The executive officers are also
eligible to participate in the Company’s broad-based benefit programs generally
available to its salaried employees, including health, disability and life
insurance programs, and qualified 401(k) plan. Under the Non-Employee Director
and Executive Officer Stock Purchase Program, executive officers may purchase
common stock directly from the Company at the last reported sale price on the
date that the election to purchase is made. 

80

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