Consistent with industry standards, Ross & Co. charges one-third (33 1/3%) of the first year's total cash compensation required to attract a successful candidate, including the first year's base salary and any sign-on or performance-based incentive/bonus (at target level) negotiated as part of the compensation package for an individual engaged through our assistance. This fee structure also applies to any executive who may be engaged through our assistance in another role beyond the primary, targeted assignment being conducted.

To cover our time as a search progresses, we structure interim retainer payments based on the position's estimated compensation. The retainer amount is determined by using a conservative estimate of the projected total compensation of the successful candidate and the corresponding one-third fee. These retainer payments are normally billed in three equal installments, with the first retainer payable upon approval of the terms, and the second and third retainers billed at the 30-day and 60-day points in the conduct of the search. These interim fee payments are, of course, fully applicable against the total fee due when the successful candidate is engaged.

In the event that a candidate introduced by Ross & Company is hired by our client as a consultant rather than as a full-time employee, a different fee schedule applies. In this instance, Ross & Company charges the lesser of the following:

(1) 50% of the total consultant fees paid to an executive during his first year of employment; or

(2) if the duration of the consulting engagement becomes extended, one-third (33 1/3%) of the total consulting fees paid to the executive during the first twelve months of his association with our client. Our standard fee for the introduction and recruitment of outside Directors to a client organization is $75,000.