I.        Nacchio’s Financial Gains Before His Resignation
          Gains From Qwest Stock Sales and other Special Deals
 
 
According to court records and SEC information, prior to his resignation, Joseph Nacchio as CEO and Chairman of Qwest received the following proceeds:
 
$ 213,477,043  proceeds from sale of Qwest stock
$     1,000,000  proceeds from alleged IPO spinning
$         550,648 proceeds from selling Tellium shares - special deal
$      1,082,648  proceeds from exercising Tellium special shares options
$      1,153,133 proceeds from selling Chromatis shares - special deal
$      1,386,719 proceeds from selling CoSine shares - special deal
 

 
 II.         Nacchio’s Financial Gains After
             His Resignation and Consulting Agreement
 

On June 17, 2002, Nacchio resigned as CEO and Chairman of Qwest.  Qwest agreed that there was no ‘cause’ for ending Nacchio’s employment and, therefore, he should receive, pursuant to his October 24, 2001, employment agreement with Qwest, and a special “Resignation and Consulting Agreement” dated June 16, 2002, the following payments:
 
$  10,500,000  immediate cash severance package
$    1,726,027  immediate cash accrued obligations payment
$    3,000,000  consulting payments ($125,000 per month for 2 years)
$       600,000  pay for professional advice/publicity ($200,000 per year for 3 years)
$        75,000  reimburse his legal fees to negotiate this contract
$  unknown  office and secretary support for 2 years
$  unknown  executive level retiree medical benefits for life
$  unknown  executive level telephone concession for 10 years
$  unknown  pay all legal fees and expenses to defend against all lawsuits
 
In addition, Qwest agreed to extend the expiration dates on 4.6 million stock options previously granted to Nacchio with a strike price of $5.50 per share and an expiration date of June 22, 2003, so that those options will now expire on June 22, 2007
.

 
Curtis
CurtisLKennedy@aol.com
303-770-0440

Attachment    (Qwest / Nacchio - Resignation & Consulting Agreement - 12 pages)


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