Summary
IDEXX LABORATORIES INC. filed a Form 8-K on February 27, 2006, reporting on a meeting of its Board of Directors held on February 22, 2006. The primary purpose of this filing is to disclose amendments made to the Company's Director Deferred Compensation Plan and Executive Deferred Compensation Plan. These amendments were principally made to ensure compliance with Section 409A of the Internal Revenue Code and its related proposed regulations. The updated plans allow executive officers and certain management members to defer a portion of their annual cash bonuses, and directors to defer their annual cash retainers. These deferred amounts are converted into deferred stock units, with their value tied to the fluctuations in the price of IDEXX common stock. Upon distribution, participants receive shares of common stock equivalent to their accumulated deferred stock units. The filing includes the restated plans as exhibits.
Key Highlights
- 1IDEXX LABORATORIES, INC. amended its Director Deferred Compensation Plan and Executive Deferred Compensation Plan.
- 2The amendments were made to comply with Section 409A of the Internal Revenue Code and its proposed regulations.
- 3Executive officers and certain management can defer annual cash bonuses into deferred stock units.
- 4Directors can defer annual cash retainers into deferred stock units.
- 5The value of deferred stock units is directly linked to the price of IDEXX common stock.
- 6Participants receive shares of common stock equivalent to their deferred stock units upon distribution.
- 7The restated plans are effective as of January 1, 2005.