Exhibit 10.6
TERM SHEET FOR ARTHUR GALLAGHER
Position | General Counsel and Secretary |
Term | Four Years, beginning on March 24, 2003 |
Duties | Shall report to the Chief Executive Officer and have duties reasonably assigned by Chief Executive Officer |
Base Salary | $160,000 for the first year and $175,000 for each year thereafter |
Bonus | Target Bonus of 30% of Base Salary, with Targets determined by the Compensation Committee and consistent with the Targets established for other executives of the Company |
Incentive Comp. | 10,000 options granted upon execution of agreement and 10,000 additional options granted on each of 1/1/2004 and 1/1/2005. Option shall vest after one year |
8,000 shares of restricted stock issued upon execution of agreement, which shares shall vest 2,000 a year on January 1 of each year. | |
Signing Bonus | $15,000 upon execution of agreement |
Benefits | Entitled to participate in benefit plans established from time to time (health, medical, 401(k), etc.) |
Reimbursed for cost of COBRA coverage until eligible to participate in medical plan, in the approximate amount of $400 per month | |
Vacation | 3 weeks |
Termination and Severance | Cause - No severance. Base Salary through termination date Without Cause/Following Change of Control - Base Salary and bonus through date of termination,plus one year’s Base Salary and bonus as severance and options and restricted stock vest |
Death and Disability - Base Salary and bonus through date of termination and options and restricted stock vest |