DEQ Reduces Board of Directors Cost and Issues Stock Options at $1.10
July 15 2008 - 5:16PM
Marketwired
LEVIS, QUEBEC ("DEQ" or the "Company"), a leading provider of
table game bonusing, jackpot and loyalty solutions, announces today
it has dramatically reduced the cost of its board of directors and
has issued stock options at $1.10 to certain directors and
management staff.
DEQ's Board of Directors has reduced the annual approximate
fixed monetary cost for the board from $120,000 to $20,000 for an
annual cost savings of $100,000. As well, DEQ has issued stock
options to the three new directors as per the new compensation plan
described below.
The Company issued a total of 75,000 stock options in accordance
with the stock option plan of the Corporation to the three new
directors elected at the annual shareholders' meeting on May 28th
2008 to align them with the new compensation plan. Each of the
three (3) new board members (Mike Telesmanic, Alexandre Lattes and
Herve Eschasseriau) has been granted 25,000 stock options each.
Each option will confer to its holder the right to subscribe one
(1) common share of DEQ Systems Corp. at an exercise price of one
dollar ten cents ($1.10) per share. Stock options are fully vested
as of the date of grant. The remaining two independent directors
were not issued additional stock options as they received the
monetary compensation in 2008 as per the 2008 director compensation
plan.
As well, the Board of Directors has put in place a compensation
package for employees and has issued a total of 925,000 stock
options in accordance with the stock option plan of the
Corporation. The stock options were granted to the following
members of management team. Earle G. Hall, President and CEO was
issued 300,000 stock options, Francois Proulx, CFO and COO was
issued 150,000 stock options, Genevieve Cossette, Chief Legal
Officer was issued 145,000 stock options, Paul Omohundro,
Vice-President, Sales was issued 50,000 stock options and David
Jacques, Chief Technology Officer was issued 25,000 options and
other employees were granted a total of 255,000 stock options. Each
option will confer to its holder the right to subscribe one (1)
common share of DEQ Systems Corp. at an exercise price of one
dollar ten cents ($1.10) per share. Employee stock options are
vested at 20% per year for 5 years.
"The management team has done an incredible job to migrate the
business model to an accretive patent royalty structure built upon
a stable cost base", stated Mike Telesmanic, DEQ's Chairman of the
Board. "The Board of Directors is proud of management's continued
efforts to control cost while continually increasing recurring
revenues. Therefore, we have decided to align our own cost in the
same manner as management has done by reducing our fixed cost and
to increase the number of stock options so that any significant
compensation earned by a director will be from the added value
created."
"This unprecedented decision by the Board of Directors is very
motivating for the management team" stated Earle G. Hall, President
and CEO of DEQ. "Our Board has seen our efforts and results in 2008
and our quest to create value for our shareholders. Their decision
to migrate to value added compensation is a clear sign of their
desire to create value. Our decision to issue stock options at
$1.10 in the current market conditions is a sign as well our belief
in our business plan and the value we continue to create."
DEQ's Board of Directors monetary cost in 2007 was $118,500 for
5 independent directors and $48,250 in director's consulting fees.
Herve Eschasseriau, Governance Committee Chair led a proposition to
reduce these costs dramatically. All remaining directors from
before the Annual General Assembly received the amounts as per the
2008 column. All new directors including the Chairman of the Board
have received compensation as per the 2009 column and all ongoing
recurring costs such as board meetings or committee meetings pay
all directors as per the 2009 column. These changes are effective
as of May 28th, 2008. The projected 2009 monetary cost for the
Board of Directors is approximately $20,000 which will incur an
approximate annual savings of $100,000 for the company.
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Director Category Position 2008 Plan 2009 Plan
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Independent Director
Chairman - Annual Fee $20,000 $2,000
Director - Annual Fee $10,000 $1,000
Committee President
- Annual Fee $1,500 $1,000
Board meeting fee per
member per board $1,000 $100
Board committee meeting
fee per member $1,000 $100
Board member consulting
fee per day $1,000 $500
Stock options per
member per year 75,000 100,000
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Non Independent
Director
Stock options per
member per year 75,000 100,000
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ABOUT DEQ
Founded in 1998, DEQ Systems Corp. (TSX VENTURE: DEQ) is a
leader in the table game bonusing technology field. DEQ's patents,
products and features include side bet bonusing games with
progressive and random jackpot prizes, slot machine style mystery
bonusing, multiple credit and denomination betting flexibility,
dealer hand betting, electronic credit bank, electronic rake,
baccarat hand tracking, multimedia animation and sound effects. DEQ
has an extensive patent portfolio that is recognized in more than
50 countries such as the USA, Macau, Australia and Canada. DEQ's
bonusing solutions and products are present in more than 200
casinos in over 30 countries. For further information, please visit
www.deq.com
Forward-looking statements contained in this Press Release
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance and achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by the said
forward-looking statements. DEQ Systems Corp. has been selected in
the TSX Venture 50 in 2008. "2008 Venture 50" is a trademark of TSX
inc. and is used under license.
TSX Venture does not accept any responsibility regarding the
accuracy of the information contained in this press release.
Contacts: DEQ Systems Corp. Earle G. Hall President & CEO
418-839-3012 earle.hall@deq.com DEQ Systems Corp. Francois Proulx
Chief Financial Officer 418-839-3012 francois.proulx@deq.com