Exhibit 10.27a
Hot Topic Inc., Director Compensation 2006
On March 17, 2006, our Board of Directors, following approval of our Compensation Committee, established the following 2006 director compensation:
Cash Compensation:
| MEETINGS |
NO. OF (FY 2005) |
PER MTG. FEE (FY 2006) |
||||
| Board |
4 | |||||
| Chair |
$ | 7,000 | ||||
| Member |
$ | 5,000 | ||||
| Audit Committee |
6 | |||||
| Chair |
$ | 2,500 | (+$10,000/Qtr.) | |||
| Member |
$ | 1,500 | ||||
| Governance & Nominating Committee |
4 | |||||
| Chair |
$ | 2,500 | ||||
| Member |
$ | 1,000 | ||||
| Compensation Committee |
3 | |||||
| Chair |
$ | 2,500 | ||||
| Member |
$ | 1,000 | ||||
Other Compensation:
Automatic Options:
| New Director Grant (0 in FY 2005): |
10,000 options | |
| Continuing Director Grant (5 in FY 2005): |
2,500 options | |
| Continuing Chair Grant (1 in FY 2005): |
3,750 options |
Discretionary Options:
Continuing Director Grant (5 in FY 2005): The number of shares which will, including the automatic grant, provide a $60,000 aggregate grant, using the Black Scholes model.
Continuing Chair Grant (1 in FY 2005): The number of shares which will, including the automatic grant, provide an $80,000 aggregate grant, using the Black Scholes model.
Stock Bonus Award:
Director Award (5 in FY 2005): The number of shares equal to $25,000 divided by the share price determined as of the date of grant.
Chair Award (1 in FY 2005): The number of shares equal to $30,000 divided by the share price determined as of the date of grant.