Kodak 2002 Annual Report Download - page 103

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Proxy Statement
98
OPTION/SAR GRANTS IN LAST FISCAL YEAR
Individual Grants
Number of Percentage
Securities of Total
Underlying Options/SARs
Options/ Granted to Exercise or Grant Date
SARs Employees Base Price Expiration Present
Name Granted in Fiscal Year Per Share Date Value(c)
D. A. Carp 175,000(a) .00868 $36.66 11/21/12 $1,438,500
R. H. Brust 42,000(a) .00208 36.66 11/21/12 345,240
M. M. Coyne 36,000(a) .00179 36.66 11/21/12 295,920
M. P. Morley 35,000(a) .00174 36.66 11/21/12 287,700
D. P. Palumbo 36,400(a) .00181 36.66 11/21/12 299,208
133,043(b) .00660 31.30 5/18/07-11/15/11 796,928
(a) These options were granted in November 2002 under the management stock option program. Termination of employment, for other
than death or a permitted reason, prior to the first anniversary of the grant date results in forfeiture of the options. Thereafter,
termination of employment prior to vesting results in forfeiture of the options unless the termination is due to retirement, death,
disability or an approved reason. Vesting accelerates upon death. One third of the options vest on each of the first three
anniversaries of the date of grant.
(b) These options were granted to D. P. Palumbo on August 26, 2002, under the Stock Option Exchange Program; they expire
on the following dates: 733 on May 18, 2007; 2,500 on February 11, 2008; 69 on March 12, 2008; 4,700 on April 1, 2008;
390 on March 11, 2009; 8,251 on March 31, 2009; 13,333 on February 29, 2010; 66,667 on October 1, 2010, and 36,400 on
November 15, 2011.
(c) The present value of these options was determined using the Black-Scholes model of option valuation in a manner consistent with
the requirements of Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation.” For the
options granted in November 2002 under the management stock option program, the following weighted-average assumptions were
used: risk-free interest rate – 3.8%, expected option life – 7 years, expected volatility – 34%, and expected dividend yield –
5.76%. For the options granted under the Stock Option Exchange Program, the following weighted-average assumptions were used:
risk-free interest rate – 2.9%, expected option life – 4 years, expected volatility – 37%, and expected dividend yield – 5.76%.
AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL YEAR AND
FISCAL YEAR-END OPTION/SAR VALUES
Number of
Securities Underlying Value of Unexercised
Unexercised Options/SARs In-the-Money Options/
Number of at Fiscal Year-End SARs at Fiscal Year-End*Value
Shares Acquired Value
Name on Exercise Realized Exercisable Unexercisable Exercisable Unexercisable
D. A. Carp 7,638 $15,757 891,086 528,590 $477,023 $954,046
R. H. Brust 0 0 184,622 163,378 148,831 298,109
M. M. Coyne 2,630 6,188 231,473 161,389 181,269 362,538
M. P. Morley 0 0 259,671 95,696 80,140 160,520
D. P. Palumbo 0 0 70,977 98,466 265,454 232,127
*Based on the closing price on the New York Stock Exchange – Composite Transactions of the Company’s common stock on
December 31, 2002, of $35.04 per share.