Kodak 2004 Annual Report Download - page 120
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Proposals
11
E A S T M A N K OD A K C O M PA N Y
TypesofAwards
ThePlanauthorizesthegrantof:
•performanceawards(awardsearnedbyreferencetoperformancecriteriachosenbytheCommittee);
•non-qualifiedandincentivestockoptions;
•SARs;
•restrictedstockawardsandrestrictedstockunitawards(stockawards,earnedperformanceawardsorotherincentivecompensationunder
anotherplanmaintainedbytheCompany);and
•otherstock-basedawards(stock-basedawardsgrantedeitherasfreestandinggrants,paymentsofearnedperformanceawardsorotherincentive
compensationunderanotherplanmaintainedbytheCompany).
TerminationandAmendmentofPlan
TheCommitteemayterminateoramendthePlanatanytimeforanyreasonornoreason.Withoutshareholderapproval,however,theCommitteemaynot
adoptanyamendmentthatwouldrequirethevoteofshareholdersoftheCompanyundertheNYSE’sapprovalrulesoranyamendmentaffecting“covered
employees”thatrequiresthevoteoftheCompany’sshareholdersunderSection162(m)oftheInternalRevenueCode.TheCompany’sChiefExecutive
Officer(CEO)anditsfourmosthighlycompensatedexecutiveofficersare“coveredemployees.”
AvailableShares
TheaggregatenumberofsharesavailableunderthePlanwillbe11,000,000sharesoftheCompany’scommonstock,plusanysharessubjecttoawards
underthe1990OmnibusLong-TermCompensationPlan,the1995OmnibusLong-TermCompensationPlanandthe2000OmnibusPlan,thatareoutstand-
ingandbecomeavailableunderthetermsofthePlan.ThesharereserveunderthePlanisincreasedby:sharesthatareforfeitedpursuanttoawardsmade
underpriorplans;sharesretainedforpaymentoftaxwithholding;sharesissuedinconnectionwithreinvestmentofdividendsanddividendequivalents;
sharesdeliveredforpaymentorsatisfactionoftaxwithholding;sharesreacquiredontheopenmarketusingoptionexercisepricecashproceeds;and
awardsthatotherwisedonotresultintheissuanceofshares.TheaggregatenumberofshareswillnotbereducedbysharesgrantedbytheCompanyin
assumptionof,orexchangefor,awardsgrantedbyanothercompanyasaresultofamergerorconsolidation.ThenumberofsharesunderthePlanmaybe
adjustedforchangesintheCompany’scapitalstructure,suchasastocksplitormerger.
AwardLimits
Themaximumcompensationgrantedasperformanceawardstoanyoneparticipantforanyperformancecycleis500,000sharesofcommonstockor
$5,000,000iftheawardispaidincash.
Themaximumnumberofsharesforwhichstockoptionsmaybegrantedtoanyoneparticipantduringany36-monthperiodis2,000,000sharesofcom-
monstock.
ThemaximumnumberofsharesforwhichSARsmaybegrantedtoanyoneparticipantduringany36-monthperiodis2,000,000sharesofcommonstock.
GrantstoNon-U.S.Employees
TofacilitatethegrantingofawardstoparticipantswhoareemployedoutsideoftheUnitedStates,thePlanauthorizestheCommitteetomodifyandamend
thetermsandconditionsofanawardtoaccommodatedifferencesinlocallaw,policyorcustom.
PerformanceAwards
TheCommitteemaygrantawardsintheformofperformanceawardstoparticipantswhohavebeenemployedbytheCompanyonthelastdayofa
performancecycleunlessotherwiseprovidedintherelevantawardnoticeoradministrativeguide.Performanceawardsarepaidtoparticipantswhohave
achievedthegoalsundertheperformanceformulaasappliedagainsttheperformancecriteriasetbytheCommitteeforaperformancecycle.Theperfor-
manceformulawillestablishwhatpercentageoftheparticipant’stargetawardhasbeenearned.
TheCommitteewillselect:1)thelengthoftheperformancecycle;2)thetypesofperformanceawardstobeissued;3)theperformancecriteriathatwill
beusedtoestablishtheperformanceformula,whichmaybeonacorporate-widebasisbasedonaggregateCompanyperformanceorperformanceatthe
subsidiaryorbusinessunitorbusinesssegmentlevel;and4)howtoapplytheperformanceformula.
Performanceawardsgrantedto“coveredemployees”willcomplywithSection162(m)oftheInternalRevenueCode.
StockOptions
TheCommitteemaygrantawardsintheformofstockoptionstopurchasesharesoftheCompany’scommonstock.Foreachstockoptiongrant,theCom-
mitteewilldeterminethenumberofsharessubjecttotheoptionandthemannerandtimeoftheoption’sexercise,providedthatnostockoptionwillbe
exercisableaftersevenyearsfromthedateofitsgrant.Theminimumvestingscheduleforastockoptionisoneyearunlesstheparticipant’semployment
isterminatedundercertaincircumstancesorifthereisaChangeinControloftheCompany.Theexercisepriceofastockoptionmaynotbelessthan
100%ofthefairmarketvalueoftheCompany’scommonstockonthedatethestockoptionisgranted.Uponexercise,aparticipantmaypaytheexercise