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Exhibit 10.5

 

AMERICAN TECHNOLOGY CORPORATION

 

SUMMARY SHEET

OF

DIRECTOR AND EXECUTIVE OFFICER COMPENSATION

 

Compensation of Directors

 

We currently have no standard arrangements pursuant to which our directors are compensated for services provided as a director or committee member, other than in the form of reimbursement of expenses of attending directors’ or committee meetings. Our directors have received in the past, and may receive in the future, stock option grants. During fiscal 2005, the Compensation Committee will be reevaluating our director compensation program. 

 

Compensation of Executive Officers

 

The executive officers of the Company serve at the discretion of the Board of Directors. From time to time, the Compensation Committee of the Board of Directors reviews and determines the salaries that are paid to the Company's executive officers. The following table sets forth the annual salary rates for the Company’s current executive officers as of March 22, 2005:

 

	
  Elwood G. Norris, Chairman

  	
  $200,000

  
	
  Kalani Jones, President and   Chief Operating Officer

  	
  $220,000

  
	
  Carl Gruenler, Vice President of Government and   Force Protection Systems Group

  	
  $185,000

  
	
  Michael A. Russell, Chief   Financial Officer and Secretary

  	
  $185,000

  

 

Employment Arrangements with Current Executive Officers

 

The following discussion summarizes the employment arrangements between us and our current executive officers as of March 22, 2005:

 

Mr. Elwood G. Norris - Effective September 1, 1997, we entered into a three year employment contract with Mr. Norris, for his services as Chief Technology Officer. The three-year term expired on August 31, 2000, but the agreement remains in effect until one party gives thirty days advance notice of termination to the other. Mr. Norris now serves as Chairman under the term of this agreement. The agreement, as amended by the Compensation Committee, provides for a base salary of $16,667 per month. The agreement provides that Mr. Norris will participate in bonus, benefit and other incentives at the discretion of the Board of Directors. Mr. Norris has agreed not to disclose trade secrets and has agreed to assign certain inventions to us during employment. We are also obligated to pay Mr. Norris certain royalties.  See "Certain Relationships and Related Transactions" in our Form 10-K/A filed March 18, 2005.

 

Mr. Kalani Jones 
- We entered into a letter agreement dated as of August 28, 2003, as amended on
October 20, 2003, under which Mr. Jones was employed as our Senior Vice
President of Operations. Mr. Jones has since been promoted to President and
Chief Operating Officer. The letter agreement provides for an annual base salary
of $140,000, and an annual performance bonus of up to 30% of base salary to be
determined by the Compensation Committee and the Board of Directors. Mr. Jones'
base salary was $200,000 per year at September 30, 2004.

 

-1-

On January 27, 2005, our Compensation Committee increased Mr. Jones’ current annual base salary to $220,000.  For fiscal 2005, the Compensation Committee determined that Mr. Jones' bonus should be based upon a target bonus of 50% of base salary given his increased responsibilities as President and Chief Operating Officer. We expect future bonus determinations for Mr. Jones to be made based upon a target bonus of 50% of base salary. Mr. Jones' employment is terminable at-will by us or by Mr. Jones for any reason, with or without notice.

 

Mr. Carl Gruenler - We entered into a letter agreement with Mr. Gruenler, which was amended on July 30, 2003, under which Mr. Gruenler was employed as our Vice President of Military Operations. Mr. Gruenler is currently our Vice President of Government and Force Protection Systems Group. The letter agreement provides for an annual base salary of $110,000, and an annual performance bonus of up to 10% of base salary to be determined by the Compensation Committee and the Board of Directors. Mr. Gruenler’s current annual base salary is $185,000, and he is now compensated through the broad-based commission arrangement described below in lieu of an annual performance bonus.  Mr. Gruenler's employment is terminable at-will by us or by Mr. Gruenler for any reason, with or without notice.

  

Mr. Michael Russell - We entered into a letter agreement dated June 15, 2004, under which Mr. Russell was employed as our Chief Financial Officer. The letter agreement provides for an annual base salary of $185,000, and an annual performance bonus of up to 25% of base salary to be determined by the Compensation Committee and the Board of Directors. Mr. Russell's employment is terminable at-will by us or by Mr. Russell for any reason, with or without notice.

 

Mr. Bruce Gray - We entered into a letter agreement dated March 15, 2005, under which Mr. Gray was employed as our Vice President of the Business Group. The letter agreement provides for an annual base salary of $200,000, and an annual sales bonus of up to $100,000 based on attaining quarterly and annual goals to be established. Mr. Gray's employment is terminable at-will by us or by Mr. Gray for any reason, with or without notice.

 

Executive officers in charge of revenue producing business segments also participate in a broad-based commission arrangement. Under our existing commission arrangement, commissions are awarded for each of our business segments based on achievement of operating plan revenue within the segment, with commissions increasing in percentage if operating plan is exceeded. Executive officers in charge of each business unit recommend an allocation of such commissions amongst sales personnel and themselves, which recommendation is reviewed and approved by the Chairman and the President. All commissions payable to executive officers are then reviewed and approved by the Compensation Committee.

 

-2-Exhibit 4.1

 

[GRAPHIC]

 

	
   

  	
   

  	
  INCORPORATED UNDER THE LAWS

  OF THE STATE OF DELAWARE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NUMBER

  	
   

  	
  SHARES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ACW

  	
   

  	
   

  	
   

  
	
   

  	
  COMMON
  STOCK

  	
  

  	
  COMMON
  STOCK

  	
   

  
	
  

  THIS CERTIFICATE IS TRANSFERABLE IN

  THE CITY OF NEW YORK, NY

  	
  SEE REVERSE FOR CERTAIN
  DEFINITIONS

  
	
   

  	
   

  	
   

  	
  CUSIP 004398 10 3

  	
   

  

 

THIS CERTIFIES THAT

 

 

 

is the owner of

 

FULLY-PAID
NON-ASSESSABLE SHARES OF THE COMMON STOCK, PAR VALUE $0.01 PER SHARE, OF

ACCURIDE
CORPORATION

transferable only on the books of the Corporation by the holder hereof
in person or by duly authorized attorney upon surrender of this certificate
properly endorsed. This certificate is not valid unless countersigned by the
Transfer Agent and registered by the Registrar.

WITNESS the facsimile seal of
the Corporation and the facsimile signatures of its duly authorized officers.

 

	
   

  	
   

  	
  Dated:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   /s/ Terrence J. Keating

  	
   

  	
   

  	
   

  
	
  President and Chief
  Executive Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  COUNTERSIGNED AND REGISTERED:

  
	
   

  	
  [SEAL]

  	
   

  	
  AMERICAN
  STOCK TRANSFER &

  TRUST COMPANY

  
	
   

  	
   

  	
   

  	
  TRANSFER AGENT

  
	
   

  	
   

  	
   

  	
  AND REGISTRAR

  
	
   

  	
   

  	
   

  	
  BY

  
	
  /s/ David K. Armstrong

  	
   

  	
   

  	
   

  
	
  Senior Vice
  President/General Counsel and Corporate Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  AUTHORIZED SIGNATURE

  
					

 

 

(C) JEFFRIES
BANKNOTE COMPANY

 

 

ACCURIDE
CORPORATION

 

THE CORPORATION WILL FURNISH
WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS, DESIGNATIONS,
PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF
EACH CLASS OF STOCK OR SERIES THEREOF OF THE CORPORATION AND THE
QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS.
SUCH REQUEST MAY BE MADE TO THE CORPORATION AT ITS PRINCIPAL PLACE OF BUSINESS
OR TO THE TRANSFER AGENT.

 

The following abbreviations,
when used in the inscription on the face of this certificate, shall be
construed as though they were written out in full according to applicable laws
or regulations:

 

 

	
   

  	
  TEN COM

  	
  —

  	
  as tenants in common

  	
   

  	
  UNIF GIFT MIN ACT —

  	
   

  	
  Custodian

  	
   

  
	
   

  	
  TEN ENT

  	
  —

  	
  as tenants by the entireties

  	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
  JT TEN

  	
  —

  	
  as joint tenants with right of

  	
   

  	
   

  	
  under Uniform Gifts to Minors

  
	
   

  	
   

  	
   

  	
  survivorship and not as tenants

  	
   

  	
   

  	
  Act

  	
   

  
	
   

  	
   

  	
   

  	
  in common

  	
   

  	
   

  	
   

  	
  (State)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  UNIF TRF MIN ACT —

  	
   

  	
  Custodian (until age

  	
   

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Cust)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  under Uniform Transfers

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Minor)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  to Minors Act

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (State)

  
														

 

Additional abbreviations may
also be used though not in the above list.

 

FOR VALUE RECEIVED, _____________________
hereby sell, assign and transfer unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF
ASSIGNEE

 

 

	
   

  
	
  (PLEASE PRINT OR TYPEWRITE
  NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
  Shares

  
	
  of the capital stock represented by the within Certificate, and do
  hereby irrevocably constitute and appoint

  
	
   

  
	
   

  	
  Attorney

  
	
  to transfer the said stock on the books of the within named
  Corporation with full power of substitution in the premises.

  
	
   

  
	
  Dated

  	
   

  	
   

  
	
   

  
	
   

  	
  X

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  X

  	
   

  	
   

  
	
   

  	
  NOTICE:

  	
   

  	
  THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME(S)
  AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT
  ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

  
	
   

  
	
  Signature(s) Guaranteed

  
	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
  THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR
  INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT
  UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),
  PURSUANT TO S.E.C. RULE 17Ad-15.

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