In connection with the departure of Stephen L. Waechter, the Company's former Chief Financial Officer and Treasurer, the Company and Mr. Waechter entered into a separation and severance agreement on January 23, 2007. The agreement provides for severance payments equal to 12 months of base salary ($312,720 in the aggregate), to be paid in a lump sum on July 9, 2007; provides for incentive compensation payable in cash in the amount of $316,800 in lieu of all other incentive compensation, to be paid by February 28, 2007; provides for the Company to pay the cash value of residual unused vacation, plus amounts of previously deferred bonus (with interest) that Mr. Waechter had directed toward the purchase of restricted stock units under the Company's Management Stock Purchase Plan; and provides for the Company to contribute $14,200 to the Company's Executive Retirement Plan for Mr. Waechter's benefit. Mr. Waechter is also entitled for 60 days after January 9, 2007 to exercise such vested stock options as he held as of that date.