Theaggregaterestrictedunitawards,deferredstockunitsandstockoptionsoutstandingforeachdirectorinthe tablesetforthaboveasofDecember31,2006isasfollows: NameAggregateRestrictedUnitsDeferredStockUnitsStockOptions AnneK.Bingaman................................——— DavidE.Fry....................................4,6452,0364,000 VincentJ.Intrieri.................................——— ConradL.Mallett,Jr..............................4,6452,8734,000 LarryW.McCurdy................................4,64514,42210,250 RoyE.Parrott...................................4,645—6,500 DavidP.Spalding.................................4,64510,56910,250 JamesA.Stern...................................4,64512,80110,250 HenryD.G.Wallace...............................4,659564— RichardF.Wallman...............................4,645—2,000 (3)Fortherestrictedunitandstockoptiongrants,thevalueshowniswhatisrecognized(forcurrentandprior grants)forfinancialstatementreportingpurposeswithrespecttotheCompany’s2006financialstatementsin accordancewithFAS123(R).ThegrantdatefairvalueoftheJanuary31,2006restrictedunitgranttothe directors(otherthantoMr.Intrieri)was$90,000.Mr.Intrieri,whobecameadirectoronNovember9,2006,did notreceiveagrantofrestrictedunitsin2006.Nostockoptionsweregrantedin2006.Thevaluereportedinthe tableforstockoptionsrepresentstheapplicableportionofthe2004optiongrantswhichwasexpensedin2006. TheamountforMs.Bingamanreflectsthereversalofthecompensationcostsofawardsthatwerepreviously expensedbytheCompanywhichsheforfeiteduponherresignation.SeeNote11oftheCompany’sfinancial statementsfor2006fortheassumptionsmadeindeterminingFAS123(R)values. SummaryofDirectorCompensation In2006,non-employeedirectorswerecompensatedpursuanttoourOutsideDirectorsCompensationPlan, whichprovidesforanannualretainerof$45,000foreachofournon-employeedirectorswithanadditionalretainer of$20,000fortheChairmanoftheAuditCommitteeandanadditional$10,000retainerforeachoftheChairmenof theCompensationCommitteeandtheNominatingandCorporateGovernanceCommitteeaswellasforour PresidingDirector.Inaddition,eachnon-employeedirectorreceivedafeeof$1,500foreachBoardandcommittee meetingattended.Thenon-employeedirectorannualretainerandmeetingfeeswerepaidquarterlypursuanttothe OutsideDirectorsCompensationPlan.Directorswerealsoreimbursedfortheirexpensesincurredinattending meetings. PursuanttotheOutsideDirectorsCompensationPlan,eachnon-employeedirectorreceivesannuallyonthe lastbusinessdayofeachJanuary,restrictedunitsrepresentingsharesofLearcommonstockhavingavalueof $90,000onthedateofthegrant.RestrictedunitgrantsweremadeonJanuary31,2006toallnon-employee directors,otherthantoMr.Intrieri,whowaselectedtotheBoardonNovember9,2006andreceivednorestricted unitsin2006.Therestrictedunitsgrantedtonon-employeedirectorsvestoverthethree-yearperiodfollowingthe grantdate,withone-thirdofeachrecipient’srestrictedunitsvestingoneachofthefirstthreeanniversariesofthe grantdate.Duringthevestingperiod,non-employeedirectorsreceivecreditsinadividendequivalentaccountequal toamountsthatwouldbepaidasdividendsonthesharesrepresentedbytherestrictedunits.Oncearestrictedunit vests,thenon-employeedirectorholdingsuchrestrictedunitwillbeentitledtoreceiveacashdistributionequalto thevalueofashareofLearCommonStockonthedateofvesting,plusanyamountinhisorherdividendequivalent account.Therestrictedunitsarealsoimmediatelyvesteduponadirector’sterminationofserviceduetodeath, “disability,”“retirement,”orupona“changeincontrol”ofLear(aseachsuchtermisdefinedintheOutside DirectorsCompensationPlan)priortoorconcurrentwiththedirector’sterminationofservice. 161
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