Exhibit 10.1
Compensatory Arrangements for Non-Employee Directors
In January 2008, the Board of Directors of MicroFinancial Incorporated (the “Company”) adopted the following annual compensation package for its non-employee directors:
• | an annual retainer of $20,000, to be paid at the director’s election either entirely in shares of stock or 40% in cash and 60% in shares of stock, in each case with full vesting upon the date of issuance; | ||
• | a cash fee of $1,250 for meetings, including committee meetings, not held by telephone and not held on the same day as a full Board meeting; | ||
• | committee meeting fees of $500 for telephonic meetings and meetings on the same day as Board meetings; | ||
• | a fee for the Chair of the Audit Committee of $10,000 per year, to be paid either entirely in shares of stock or 40% in cash and 60% in shares of stock, in each case with full vesting upon the date of issuance; | ||
• | a stock grant made annually to each non-employee director valued at $42,000 on the date of grant, with all shares of stock fully vested upon the date of issuance; and | ||
• | health insurance benefits for those non-employee directors who elect to participate, with the cost to be borne partially by the Company, consistent with its past practices. |
Committee chairs will decide at the time of any committee meeting whether the meeting is substantive enough to merit the committee fees described above.