Kodak 2001 Annual Report Download - page 103

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TRANSACTIONS WITH MANAGEMENT
Under Mr. Brust’s offer letter, the Company loaned Mr. Brust, Chief Financial Officer and Executive Vice
President, the sum of $3,000,000 at an annual interest rate of 6.21%, the applicable federal rate for mid-term
loans, compounded annually, in effect for January 2000. The unsecured loan is evidenced by a promissory note
dated January 6, 2000. Under Mr. Brust’s amended offer letter, a portion of the principal and all of the accrued
interest on the loan is to be forgiven on each of the first seven anniversaries of the loan. Mr. Brust is not
entitled to forgiveness on any anniversary date if he voluntarily terminates his employment or is terminated for
cause on or before the anniversary date. The balance due under the loan on December 31, 2001, was
$2,400,000.
In March 2001, the Company loaned Mr. Carp, Chairman, President and Chief Executive Officer, $1,000,000
for the purchase of a home. The loan is unsecured and bears interest at 5.07% per year, the applicable federal
rate for mid-term loans, compounded annually, in effect for March 2001. The entire amount of the loan and all
accrued interest is due upon the earlier of March 1, 2006, or the date of Mr. Carp’s termination of employment
from the Company. The loan is evidenced by a promissory note dated March 2, 2001. The balance due under
the loan on December 31, 2001, was $1,042,227.
In August 1999, the Company loaned Mr. Gustin, Chief Marketing Officer and Senior Vice President,
$170,000 for the purchase of a home. The loan was unsecured and bore interest at 5.96% per year, the
applicable federal rate for mid-term loans, compounded annually, in effect for August 1999. Under the original
terms of the loan, the entire amount of the loan and all accrued interest was due upon the earlier of August 10,
2000, or the date of Mr. Gustin’s termination of employment. The loan was subsequently modified twice. The
balance due under the loan on December 31, 2001, was $195,325. Mr. Gustin has repaid the loan in full.
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