Common use of Board of Directors Compensation Clause in Contracts

Board of Directors Compensation. As full compensation for Consultant's serving as a member of the Board of Directors pursuant to Section 2.1 above, the Company shall: (a) Pay consultant annually either Ten Thousand Dollars ($10,000) in cash or options to purchase shares of Common Stock under the Company's 1989 Stock Plan having an aggregate exercise price of Twenty Thousand Dollars ($20,000) (see formula below), at the choice of the Consultant, payable in accordance with Schedule 1. If the Consultant chooses options to purchase shares of common stock, the number of shares that could be purchased would be determined by the following formula: Five Thousand Dollars ($5,000) (quarterly payment) divided by the Effective Common Stock Price. The option would be immediately exercisable in full at a "strike" price equal to the Effective Common Stock Price. The option would have a ten (10) year term. (b) Distinct and different from the options described in Section 4.1(a), Consultant shall be granted an option to purchase 25,000 shares of Procept Common Stock (the "Standard Option") at $5 per share (unless Repricing occurs). The Standard Option (25,000 shares) vests annually over a period of 4 years at the rate of 6,250 shares per year, starting from the date of this Agreement and would have a ten (10)