Exhibit 10.77
SUMMARY OF COMPENSATORY ARRANGEMENTS
WITH DIRECTORS AND NAMED EXECUTIVE OFFICERS
Director Compensation . Each director who is not an employee or officer of the Company will receive the
following compensation for his services as director in 2007:
Mr. Hardman, who is the Technical Advisor to the board of directors, is also a consultant to the Company. In
this capacity, he receives $57,000 per year and is granted an additional 22,200 shares of restricted common stock
as a consequence of his appointment to that position.
Mr. Turner received an initial one-time sign-on restricted stock grant of 10,000 shares under our current long-
term incentive plan.
Named Executive Officer Compensation . The Company’s executive compensation program has several
elements, all determined by individual and Company performance.
Base Salary Compensation
Base salaries for the Chief Executive Officer and the other named executive officers in 2007 have been
established by reviewing a number of factors, including responsibilities, experience, demonstrated
performance, potential for future contributions, and the level of salaries associated with similar positions at
businesses that compete with the Company and other competitive factors. Base salary levels for named
executive officers in 2007 have been determined as follows:
Other Compensation
In addition to his base salary, each of the named executive officers is eligible to participate in the following:
• annual base compensation of $20,000;
• $1,500 per regularly-scheduled board meeting attended;
• $5,000 per year for service ($15,000 per year commencing June 2007) as the Audit Committee chairman;
• $5,000 per year for service as the Compensation Committee chairman;
• $20,000 per year for service as the Lead Director;
• an annual grant of 4,800 shares of restricted common stock (9,600 for the Lead Director);
• reimbursement of reasonable out-of-pocket expenses incurred in