Document:

ALPHARMA

ALPHARMA

Leadership in Specialty Pharmaceutical Products

 

February 10, 2003

Mr. Michael J. Valentino

3 Reservoir Ridge

Morristown, NJ  07960

Dear Mr. Valentino:

In connection with the termination of your employment, which became effective on January 31, 2003, and in consideration for execution of the attached Agreement and Release, Alpharma Inc. (the "Company") hereby agrees with you as follows:

(1)     The termination of your employment with the Company, which became effective on January 31, 2003, was a termination without Cause (as that term is defined in the Employment Agreement) for all purposes of the Employment Agreement dated October 21, 2002 (the "Employment Agreement") between the Company and you.

(2)     Payments to you will be made as follows:

(a)     Payable 7 days after your execution of the Agreement and Release referred to above:
(i)     $600,000, representing two times your target bonus of 60% of your annual salary;

(ii)     $100,000, representing your bonus award for the 2002 performance year;

(iii)     200,000, representing the supplemental retirement benefit contemplated in paragraph 3 of the Employment Agreement;

(iv)     $9,615, representing vacation pay computed on a pro-rata basis for the period of your employment; 

(v)     $10,000, representing non-accountable expenses to be incurred by you in transitioning to new employment; and

(vi)     Reimbursement for miscellaneous unpaid business expenses incurred by you with respect to which you have submitted appropriate expense reimbursement requests and supporting documentation, minus $500, representing the value of your personal digital assistant and cellular telephone which you are may retain.  You will be responsible for cellular telephone services for all periods subsequent to January 31, 2003.  In addition, you shall be entitled to reimbursement for all other reasonable unpaid business expenses incurred by you prior to the date of your termination, provided that you submit appropriate evidence of such expenses to the Company within 60 days of the date of this letter. 

The above monies, shall be reduced by any governmental withholding amounts required by law.

(b)    Payable over time as follows, and beginning 7 days after your execution of the attached Agreement and Release:

(i)     24 months of base salary continuation at the annual rate of $500,000, paid according to the Company's bi-weekly pay periods, reduced by any governmental withholding amounts required by law; and

(ii)     24 months of executive allowance continuation, paid according to the Company's bi-weekly pay periods at the rate of $1,500 per pay period, reduced by any governmental withholding amounts required by law and reduced by any insurance related amounts which you are responsible for paying (referred to in paragraph 3 below).

All payments contemplated by this paragraph 2 shall be made by wire transfer to the following account, unless and until you provide the Company with different wire transfer instructions:

	
Institution:
	
First Union National Bank of New Jersey

	
Acct. Name:
	
Michael J. Valentino and Karen Valentino

	
Acct. #:
	
1010017170527

	
Routing #:
	
021200025

(3)     In addition to the payments described above, you shall be entitled to 24 months of continued participation in the Company's healthcare plans at normal employee rates (to be paid by you) and coverage under the Company's Basic Life Insurance and Accidental Death and Dismemberment Plans to the same extent as in effect immediately prior to the date of your termination.  At the end of the 24 month period you shall be entitled to continued health benefits as provided by the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA").

(4)     The Company is unaware of any other benefits, rights or entitlement that you could be entitled to under Section 6(e) and 6(i) of the Employment Agreement dated October 21, 2002.

(5)     Since your stock options have not vested, and will not vest within 30 days after the date of your employment termination, all options are immediately forfeited.

(6)     The Company agrees, upon the expiration of the 7-day revocation period set forth in the attached Agreement and Release, and after receipt of the necessary tax identification number, to pay the amount of $20,000 to the Law Offices of Joseph E. Bachelder in satisfaction of all legal fees and other expenses of such firm in connection with the negotiation of your separation from the Company and the preparation of this Agreement.  This payment shall be made by wire transfer to the following account:

 

	
Institution:
	
Citibank, N.A.

	
Acct. Name:
	
Bachelder Law Firm

	
Acct. #:
	
95438901

	
Routing #:
	
021000089

* * * * *

If you agree with the foregoing, please execute the enclosed copy of this letter in the space provided for that purpose and return the executed copy to the Company whereupon this letter will constitute a binding agreement between us.

	 	
Very truly yours,

	 	
ALPHARMA INC.

	 	 
	 	 
	 	 
	 	
By:  __/s/ George P. Rose

	 	
Name: George P. Rose

	 	
Title:  Executive Vice President Human Resources and Communications

	 	 

 

Agreed:

 

 

_/s/ Michael J. Valentino____

Michael J. ValentinoOctober 19, 2001

October 19, 2001

 

 

Carol Wrenn

92 Pill Hill Road

Bernardsville, NJ 07924

Dear Carol:

 

I am pleased to offer you the position of President, Animal Health Division for Alpharma. In this capacity you will be headquartered in Fort Lee, New Jersey and reporting to Ingrid Wiik, CEO of Alpharma.

I would like to confirm the following compensation and related fringe benefits as a beginning of what I am confident will be a fruitful relationship. As an employee of Alpharma you will:

	Receive an initial annual salary of $325,000. In accordance with our current practice, your base salary will be reviewed for possible adjustment at the end of each calendar year. Because of when you will be starting this year, your first performance review for possible salary adjustment will be in January, 2003.

	Receive a taxable auto allowance of $15,000 / year and be reimbursed for auto maintenance expenses of up to $2,000/year for vehicles up to five years old and up to $1,000/year for vehicles more than five years old. You will also be reimbursed for auto insurance (grossed-up), including a million-dollar umbrella policy.

	Be eligible to participate in the Company's Performance Incentive (Bonus) Plan beginning for the year 2002. Under the current plan, at the Vice President level, your bonus target is 50% of your annual base earnings. Any actual incentive payment is contingent upon both Company and your individual performance.

Be granted options to purchase 30,000 shares of Alpharma Inc. Class "A" stock effective on your first day of employment with Alpharma. In addition, you will be eligible to receive stock options under the normal terms of the Company's stock option plan (Currently options granted become exercisable at 25% of the total granted, one, two, three and four years from the date of grant. Option expires ten (10) years after grant). Historically, options have been granted in March /April of each year based on the Company's performance and individual performance.

	Be entitled to four (4) weeks vacation per year beginning in 2002. Under current Company policy, you will also be given 12 holidays each calendar year (six of which are designated as floating holidays). For the remainder of 2001 you will be entitled to one week of vacation.

Be entitled to receive an annual $ 3,000 allowance ( taxable ) for tax and/or financial planning and tax return preparation.

	Receive a sign-on bonus of $65,000, payable to you during the first pay period after your first day of employment or you can also choose to defer this until after January 1, 2002.

 

Additionally, you will be entitled to the Alpharma fringe benefit package, which currently includes the following:

	A Savings Plan to which the employee can save either on a pre and/or post tax basis and contribute up to 15% of base pay. The Company provides a service-weighted match on the first 6% of employee contributions. Based on length of service, the Company match begins at 40% and increases over time up to 100%. Enrollment is subject to plan provisions.

	A Stock Purchase Plan in which employees can elect to contribute up to four percent of salary for the purchase of Alpharma's stock, and the Company will match 50% of the employee's contribution. The Company's match is vested at the end of each quarter. Enrollment is subject to plan provisions.

	A Defined Benefit Pension Plan fully paid by the Company in which qualified employees vest 100% after 5 years' employment.

	A group health and medical plan for which the employee pays $11.54 for single coverage or $27.69 for family coverage, for each two-week period. The Company pays the remainder of the premium is paid by the Company. You become eligible for this coverage on your date of hire.

	Life insurance for three times your annual salary with the premium paid by the Company.

	A disability program that pays sixty percent of your base salary integrated with social security until age seventy. The Company pays the premium.

	A tuition assistance program which pays for job related studies provided the course is passed with a "C" or better.

Because of the important role you will have in the Company, if you resign for any reason, you will give 90 days notice. In the event that you are terminated without cause, you will continue to receive your base salary and will continue to participate in the Alpharma group health plan (i.e., medical, dental) paying the same premium as an employee for eighteen months. Finally, we are in the midst of developing a policy regarding change in control and when that policy is finalized the terms of that policy will be communicated to you. In the meantime, in the event of your termination or in the company's Chief Executive Officer within six (6) months after a change in control, your existing eighteen-month severance schedule would apply. The salary continuation payments and health benefit participation are subject to you signing the Company's standard release from liability.

I would appreciate your acknowledging this offer of employment and acceptance by signing this letter and return it to me at your convenience.

I look forward to working with you to create a great company.

 

Very truly yours,

/s/ George P. Rose

George P. Rose

Vice President Human Resources and Communications

 

 

Agreed and Accepted 

 

	
/s/ Carol Wrenn
	
10/22/01

	
Carol Wrenn
	
Date

 
3

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