Pursuant to Mr. Pressler's employment agreement dated September 25, 2002, which was disclosed at the time of his hire, Mr. Pressler is eligible for severance benefits subject to certain conditions as described in more detail in his agreement:
• Salary of up to $1.5 million per annum payable over a 24-month period, subject to cessation or reduction if he accepts other employment or compensation • Future bonuses he would have otherwise received during the 24-month period, up to an aggregate $1.5 million, if company financial performance targets are met and subject to elimination or reduction if he accepts other employment or compensation; he will not receive a bonus for fiscal 2006 • Stock option acceleration with approximately $9.5 million of in-the-money value, assuming a company stock price of $20 per share
In total and subject to reduction if Mr. Pressler accepts other employment or compensation during the 24-month period, he is eligible for up to approximately $14 million associated with his severance with the company, assuming a company stock price of $20 per share. He is also eligible to receive nominal health benefits.
The company will release 2006 fourth quarter and full-year earnings on March 1, 2007 and continues to expect 2006 earnings per share of $0.83-$0.87 per share, 2006 full-year operating margins of about 7 percent and free cash flow to be about $650 million for the full year.
marketing@alchempro.com
