AMO has a severance pay policy that applies to all US based employees. If Ms. Rady was
involuntarily terminated on 12/31/2006, she would have been eligible for eight months of severance equal to $210,000 based on her seniority, were it not for her employment agreement.
Represents the in-the-money value of stock options accelerated by virtue of a change in
control and the market value of restricted stock vested by virtue of a change in control, assuming an acquisition deal price of $35.20. Options held in a trust are assumed to be attributable to the executive. All option and restricted stock holders
would be entitled to vesting on the same terms, except that the employment agreement allows the executive the full term to exercise stock options, whereas other option holders generally have 90 days after termination of employment to exercise their
Represents AMOs expense in providing benefits.
Absent the employment agreement, the amount payable under standard AMO plans would be $351,750.
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