Exhibit 99.6
ATTACHMENT A
2006 Sybase Performance Based Restricted Stock – Performance Metrics
| | | | | | | | | | | | | | | | |
Component | | Growth | | | Weight | | | Threshold | | | Ceiling | |
Three Year Compounded Annual Growth Rate in Revenue | | | 8.0 | % | | | 60 | % | | | 50 | % | | | 125 | % |
| | | | | | | | | | | | | | | | |
Three Year Average Return on Invested Capital | | | 13.3 | % | | | 20 | % | | | 75 | % | | | 125 | % |
| | | | | | | | | | | | | | | | |
Three Year Compounded Annual Growth Rate in Cash Flow from Operations | | | 10 | % | | | 20 | % | | | 50 | % | | | 125 | % |
Note: Payment is linear
ATTACHMENT B
You have been granted a Stock Appreciation Right (“SAR”) this year. A SAR provides the same economic benefit as a stock option. Additionally, the tax treatment is the same for the SAR and the option.
The essential value of a stock option is the potential appreciation in the value of the underlying stock above the option’s exercise price. This value can also be captured in a SAR, which entitles the holder the right to receive the difference between the exercise price of the SAR and the fair market value of a share of Sybase stock on the date the SAR is exercised.
For example, assume an employee holds a SAR for 1,000 shares with an exercise price of $20. If the SAR is exercised when the fair market value of Sybase stock is $25, the employee receives $5,000 of stock. Accordingly, the employee would receive 200 shares of Sybase stock ($5,000 divided by $25). This is the same number of shares an employee would receive by performing a cashless exercise of a comparable stock option.
The following chart compares the impact of a SAR compared to a stock option exercised (i) with cash or (ii) through a cashless exercise.
| | | | | | |
| | Cashless Exercise | | SAR Exercise | | Exercise with Cash |
|
Shares granted by Sybase | | 1,000 | | 200 | | 1,000 |
Shares sold to cover exercise price | | 800 | | None | | None |
Shares sold to cover withholding (assume 36% rate) | | 72 | | 72 | | None |
Cash paid by employee to exercise | | None | | None | | $20,000 |
Cash paid by employee to cover withholding | | None | | None | | $1,800 |
Net shares received | | 128 | | 128 | | 1,000 |
Economic benefit to employee | | $3,200 (128 * $25) | | $3,200 (128 * $25) | | $3,200 ($25,000 - $21,800) |
Your SAR will vest 1/8 of the total grant after six months from the beginning vest date and monthly thereafter. The SAR will be settled in shares of Sybase stock.