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Proposals
18
2 0 0 5 ฀ N O T I C E ฀ O F ฀ A N N U A L ฀ M E E T I N G ฀ A N D ฀ P R O X Y ฀ S T A T E M E N T
This฀proposal฀would฀also฀eliminate฀the฀penultimate฀paragraph฀of฀Section฀5,฀which฀requires฀the฀affirmative฀vote฀of฀the฀holders฀of฀not฀less฀than฀80%฀of฀the฀
Company’s฀voting฀stock฀to฀amend฀Section฀5.฀Since฀Section฀5฀addresses฀a฀number฀of฀issues฀relating฀to฀the฀Board,฀including฀the฀number฀of฀directors฀and฀the฀
procedure฀for฀filling฀Board฀vacancies,฀it฀is฀appropriate฀that฀this฀paragraph฀be฀deleted,฀such฀that฀future฀revisions฀to฀Section฀5฀will฀require฀the฀affirmative฀vote฀
of฀a฀majority฀of฀the฀votes฀cast,฀as฀required฀by฀Section฀9฀of฀the฀Restated฀Certificate฀of฀Incorporation฀and฀the฀default฀voting฀standard฀under฀the฀New฀Jersey฀
Business฀Corporation฀Act.
If฀this฀proposal฀is฀approved,฀the฀amendment฀to฀Section฀5฀of฀the฀Restated฀Certificate฀of฀Incorporation฀will฀become฀effective฀upon฀the฀filing฀of฀an฀appropriate฀
certificate฀of฀amendment฀with฀the฀New฀Jersey฀Division฀of฀Revenue.฀The฀Restated฀Certificate฀of฀Incorporation,฀as฀marked฀to฀reflect฀the฀proposed฀amend-
ments,฀is฀attached฀to฀this฀Proxy฀Statement฀as฀Exhibit฀III฀on฀page฀70.฀Our฀Board฀has฀already฀approved฀amendments฀to฀our฀by-laws฀that,฀upon฀approval฀of฀
this฀proposal,฀would฀make฀them฀consistent฀with฀the฀amendments฀to฀the฀Restated฀Certificate฀of฀Incorporation฀contained฀in฀Exhibit฀III.
Revising฀Section฀5฀of฀the฀Restated฀Certificate฀of฀Incorporation฀requires฀the฀affirmative฀vote฀of฀at฀least฀80%฀of฀the฀outstanding฀shares฀of฀the฀Company.฀฀
The฀Board฀of฀Directors฀recommends฀a฀vote฀FOR฀the฀approval฀of฀amendment฀to฀Section฀5฀of฀the฀Restated฀Certificate฀of฀Incorporation฀regarding฀
the฀election฀of฀directors.
ITEM฀6 — ฀Approval฀of฀Amendment฀to฀Section฀7฀of฀the฀Restated฀Certificate฀of฀Incorporation฀Regarding฀
Certain฀Dispositions฀of฀the฀Company
The฀Board฀of฀Directors฀has฀adopted฀and฀recommends฀for฀your฀approval฀a฀proposal฀to฀amend฀Section฀7฀of฀the฀Restated฀Certificate฀of฀Incorporation฀relating฀
to฀certain฀dispositions฀of฀the฀Company.
Section฀7฀of฀the฀Restated฀Certificate฀of฀Incorporation฀currently฀requires฀the฀affirmative฀vote฀of฀at฀least฀two-thirds฀of฀the฀outstanding฀shares฀of฀the฀Company฀
to฀approve฀sales฀of฀all฀of฀the฀assets฀of฀the฀Company.
The฀proposed฀amendment฀is฀intended฀to฀clarify฀when฀a฀vote฀on฀a฀sale฀of฀the฀Company฀would฀be฀required฀by฀deferring฀to฀New฀Jersey฀corporate฀law,฀and฀to฀
reduce฀the฀shareholder฀vote฀required.฀The฀Restated฀Certificate฀of฀Incorporation฀requires฀shareholder฀approval฀for฀the฀“sale,฀assignment,฀transfer฀or฀other฀
disposition฀of฀all฀the฀rights,฀franchises฀and฀property฀of฀the฀Company฀as฀an฀entirety.”฀However,฀under฀New฀Jersey฀law,฀like฀the฀laws฀of฀many฀other฀states,฀
shareholder฀approval฀is฀required฀for฀certain฀mergers฀and฀consolidations,฀certain฀sales฀of฀all,฀or฀substantially฀all,฀the฀assets฀of฀a฀company,฀as฀well฀as฀certain฀
share฀exchanges.฀The฀purpose฀of฀the฀amendment฀is฀to฀require฀a฀shareholder฀vote฀only฀when฀New฀Jersey฀law฀requires฀a฀shareholder฀vote.฀The฀Company’s฀
stock฀exchange฀listing฀standards฀may฀require฀a฀shareholder฀vote฀in฀other฀circumstances.฀฀
Also฀under฀New฀Jersey฀law,฀if฀shareholder฀approval฀is฀required฀for฀a฀merger฀or฀consolidation,฀or฀a฀sale,฀exchange,฀lease฀or฀other฀disposition฀of฀all,฀or฀
substantially฀all,฀of฀the฀assets฀of฀a฀corporation,฀the฀transaction฀may฀be฀authorized฀by฀the฀affirmative฀vote฀of฀a฀majority฀of฀the฀votes฀cast฀by฀the฀holders฀en-
titled฀to฀vote.฀However,฀with฀respect฀to฀companies,฀like฀Kodak,฀which฀were฀incorporated฀prior฀to฀1969,฀the฀law฀preserves฀the฀pre-1969฀voting฀standard฀by฀
requiring฀the฀affirmative฀approval฀of฀two-thirds฀of฀the฀votes฀cast.฀A฀corporation฀has฀the฀right฀to฀adopt฀the฀majority฀vote฀standard฀by฀amending฀its฀certificate฀
of฀incorporation฀by฀a฀two-thirds฀vote.฀This฀amendment฀is฀intended฀to฀adopt฀the฀majority-of-the-votes-cast฀standard฀for฀mergers,฀consolidations,฀sales฀of฀
assets฀and฀share฀exchanges.฀
In฀keeping฀with฀our฀commitment฀to฀good฀corporate฀governance฀and฀to฀further฀enhance฀the฀Board’s฀accountability฀to฀shareholders,฀the฀Board฀has฀adopted฀
this฀amendment฀and฀recommends฀it฀for฀your฀approval.
If฀this฀proposal฀is฀approved,฀this฀amendment฀to฀the฀Restated฀Certificate฀of฀Incorporation฀will฀become฀effective฀upon฀the฀filing฀of฀an฀appropriate฀certificate฀
of฀amendment฀with฀the฀New฀Jersey฀Division฀of฀Revenue.฀The฀Restated฀Certificate฀of฀Incorporation,฀as฀marked฀to฀reflect฀the฀proposed฀amendment,฀is฀at-
tached฀to฀this฀Proxy฀Statement฀as฀Exhibit฀III฀on฀page฀70.
Approval฀of฀the฀amendment฀to฀Section฀7฀requires฀the฀affirmative฀vote฀of฀at฀least฀two-thirds฀of฀the฀outstanding฀shares฀of฀the฀Company.
The฀Board฀of฀Directors฀recommends฀a฀vote฀FOR฀the฀approval฀of฀amendment฀to฀Section฀7฀of฀the฀Restated฀Certificate฀of฀Incorporation฀regarding฀
certain฀dispositions฀of฀the฀Company.
ITEM฀7 — ฀Approval฀of฀Amendment฀to฀Section฀8฀of฀the฀Restated฀Certificate฀of฀Incorporation฀to฀Remove฀
the฀Provision฀Regarding฀Loans฀
The฀Board฀of฀Directors฀has฀adopted฀and฀now฀recommends฀for฀your฀approval฀a฀proposal฀to฀delete฀Section฀8฀of฀our฀Restated฀Certificate฀of฀Incorporation฀
regarding฀loans.
Under฀New฀Jersey฀law,฀corporations฀are฀permitted฀to฀make฀loans฀to฀employees,฀provided฀certain฀approval฀formalities฀are฀observed,฀even฀if฀the฀certificate฀
of฀incorporation฀in฀question฀is฀silent฀on฀the฀matter฀of฀loans.฀This,฀plus฀the฀fact฀that฀Section฀402฀of฀the฀Sarbanes-Oxley฀Act฀and฀Section฀13(k)฀of฀the฀Securi-