This excerpt taken from the LMT DEF 14A filed Mar 14, 2008.
Summary of the 2009 Equity Plan
The 2009 Equity Plan continues the equity component of our directors compensation program that has been in place since our stockholders approved the predecessor plan in 1999. The purpose of the 2009 Equity Plan is to align the economic interests of the directors with the interests of stockholders by including equity as a component of pay and to attract, motivate and retain experienced and knowledgeable directors. The Board has adopted the 2009 Equity Plan, subject to the approval by our stockholders.
If approved, compensation awarded under the 2009 Equity Plan will constitute approximately 50% of each eligible directors annual retainer, with the remaining portion payable in cash. The amount of the annual retainer and the designated percentage of the retainer that is subject to equity awards under the 2009 Equity Plan can be changed by the Board from time to time. If the 2009 Equity Plan is approved by stockholders, we will register under the Securities Act of 1933, as amended, 600,000 shares of our common stock for issuance pursuant to awards granted under the 2009 Equity Plan. As of December 31, 2007, 889,651 shares of our common stock remain authorized and available for issuance pursuant to grants under the existing Directors Equity Plan. From the time of adoption of the Directors Equity Plan through December 31, 2007, the Corporation has made or plans to make grants of stock options that account for approximately 110,349 of the 1,000,000 authorized shares originally reserved for the Directors Equity Plan. We have also granted approximately 104,778 units payable in stock or cash upon termination, as elected by the director. In January 2009, the directors received awards under the Directors Equity Plan with respect to another 7,472 stock options and 10,642 stock units. If the 2009 Equity Plan is approved, the only awards that will be made under the existing Directors Equity Plan between April 24, 2008 and December 31, 2008 will be to individuals who first become directors during that period. After December 31, 2008, no further grants will be made under the existing Directors Equity Plan and the shares available for grant under that plan will not be used for new grants. Instead, up to 600,000 shares will be available for grant under the 2009 Equity Plan.
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