Kodak 2003 Annual Report Download - page 106

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Proxy Statement
106
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 72,000 (a) 4.82 $ 24.49 11/18/10 $ 637,200
A. M. Perez 51,500 (a) 3.45 24.49 11/18/10 455,775
500,000 (b) 33.45 30.96 04/01/13 3,190,000
R. H. Brust 14,400 (a) .96 24.49 11/18/10 127,440
M. P. Morley 14,400 (a) .96 24.49 11/18/10 127,440
W. C. Shih 16,750 (a) 1.12 24.49 11/18/10 148,238
(a) These options were granted in November 2003 under the officer 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 A. M. Perez as a signing bonus as required under his offer letter with the Company. The options vest in two (2) equal consecutive annu-
al installments of 250,000; the first vests on April 2, 2004 and the other on April 2, 2005. Termination of employment for other than death, permitted reason, without
cause or good 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 without cause or due to death, disability, approved reason or good reason.
(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 2003 under the officer stock option pro-
gram, the following weighted-average assumptions were used: risk-free interest rate – 3.75%; expected option life – 7 years; expected volatility – 35.33%; and
expected dividend yield – 1.77%. For the options granted to A. M. Perez as a hiring bonus, the following weighted-average assumptions were used: risk-free interest
rate – 3.48%; expected option life – 7 years; expected volatility – 35.27%; and expected dividend yield – 5.75%.