Company: KODK
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000950170-25-040256
Chunk: 159

Company: EASTMAN KODAK CO
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1B
Chunk 159
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       On February 16, 2023, the Compensation, Nominating and Governance Committee of the Board of Directors approved extending the expiration dates for non-qualified stock options awarded between 2016 and 2020 to 21 currently active employees and directors. No other terms were modified. The contractual terms were extended from approximately seven years to approximately ten years. In November 2023 the extended expiration date of certain options was rescinded. The change in the terms of the awards was accounted for as a modification.  As a result of the modification, Kodak recognized $2 million of incremental compensation expense in the year-ended 2023, reflecting the incremental fair value of the 3.5 million awards that were modified over the fair value of the original awards immediately before the modification. The fair value of the awards was calculated using a binomial lattice-based valuation model. The key assumptions used in the fair value calculations were:  

109

        February 16, 2023

        Option Award

        Modifications

        Immediately Before
         
        Immediately After

        Range of fair values
         
        0.000 - 2.1414
         
        1.322 - 2.2424

        Range of risk-free interest rates
         
        3.82% - 4.99%
         
        3.82% - 4.99%

        Range of remaining contractual terms (in years)
         
        0.37 - 4.25
         
        3.37 - 7.25

        Range of weighted volatilities
         
        66.96% - 103.39%
         
        66.96% - 103.39%

        Expected dividend yield
         
        0.00%
         
        0.00%

        Early exercise model
         
        2.5
         
        2.5

        Number of times steps
         
        500
         
        500

 On February 26, 2021 James V. Continenza, Executive Chairman and Chief Executive Officer of Kodak, and the Company entered into an Executive Chairman and CEO Agreement, as amended on November 29, 2023 and November 30, 2022 (the “Employment Agreement”). The Employment Agreement is effective for a three-year period ending on February 26,