Kodak 2002 Annual Report Download - page 110

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Proxy Statement
105
The following table shows the years of service credited as of December 31, 2002, to each of the named executive officers. This table
also shows the amount of each named executive officer’s APC at the end of 2002. Mr. Brust and Mr. Palumbo, who participated in the
cash balance feature in 2002, are not listed.
Retirement Plan
Name Years of Service Average Participating Compensation
D. A. Carp 32 $1,711,871
M. M. Coyne 20(a) 916,032
M. P. Morley 38(b) 647,702
(a) If Mr. Coyne remains employed until February 7, 2004, he will be credited with eight extra years of service for purposes of
calculating his retirement benefit.
(b) Under Mr. Morley’s retention agreement, if he elects upon his retirement to take a lump sum distribution of his retirement benefit,
the amount of his benefit will be calculated using a discount rate no less favorable than the discount rate used under the
Company’s pension plan to calculate the retirement benefits of participants who retired effective January 1, 2003.
Cash Balance Feature
Under the cash balance feature of the Company’s pension plan, the Company establishes an account for each participating employee.
Every month the employee works, the Company credits the employee’s account with an amount equal to four percent of the employee’s
monthly pay. In addition, the ongoing balance of the employee’s account earns interest at the 30-year Treasury bond rate. To the extent
federal laws place limitations on the amount of pay that may be taken into account under the plan, four percent of the excess pay is
credited to an account established for the employee in an unfunded supplementary plan. If a participating employee leaves the
Company and is vested (five or more years of service), the employee’s account balance will be distributed to the employee in the form
of a lump sum or monthly annuity. Participating employees whose account balance exceeds $5,000, also have the choice of leaving
their account balances in the plan to continue to earn interest.
In addition to the benefits described above, Mr. Brust is covered under a special supplemental pension arrangement established under
his amended offer letter. This arrangement provides Mr. Brust a single life annuity of $12,500 per month upon his retirement if he
remains employed with the Company for at least five years. If Mr. Brust remains employed until January 3, 2007, he will, in lieu of
receiving the $12,500 per month annuity, be treated as if eligible for the non-cash balance portion of the plan. For this purpose, Mr.
Brust will be credited with 18 years of extra service in addition to his actual service. In either case, Mr. Brust’s supplemental benefit
will be offset by his cash balance benefit.