ADT 2007 Annual Report Download - page 56

Summary of Tyco Equity Conversion Methodology for Continuing Employees
Post-Separation Continuing Corporate Post-Separation Continuing Employees in
Type of Equity Award Employees Non-Corporate Roles
Stock Options granted prior For every one Tyco pre- For every one Tyco pre-Separation
to September 29, 2006 Separation option, optionholders option, optionholders received
received: approximately 0.63 new Tyco
options.
• Approximately 0.25 new Tyco Exercise prices were increased by a
options; factor of approximately 1.59 to
maintain the intrinsic value of the
• Approximately 0.25 Covidien pre-Separation options. The
options; and original vesting schedules did not
change.
• Approximately 0.25 Tyco
Electronics options.
Exercise prices were adjusted to
maintain the aggregate intrinsic
value (meaning the spread
between the market value of the
Tyco shares and the option
exercise price) of the pre-
Separation options. The original
vesting schedules for the Tyco
options did not change.
Stock Options granted after For every one Tyco pre- Same treatment as for continuing
September 29, 2006 Separation option, optionholders corporate employees of Tyco.
received approximately 0.63 new
Tyco options. Exercise prices were
increased by a factor of
approximately 1.59 to maintain
the intrinsic value of the pre-
Separation options. The original
vesting schedules did not change.
Restricted Stock and RSUs Converted into the same type of Same treatment as for continuing
granted prior to awards in post-Separation Tyco, corporate employees of Tyco.
September 29, 2006 Covidien and Tyco Electronics.
For every one restricted share or
RSU, award holders received:
• 0.25 shares or units in Tyco;
• 0.25 shares or units in
Covidien; and
• 0.25 shares or units in Tyco
Electronics.
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