Kodak 2004 Annual Report Download - page 170
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E A S T M A N K OD A K C O M PA N Y
retainedbytheCompanyinpaymentorsatisfactionofthepurchasepriceortaxwithholdingobligationofanAward,iii)sharesissuedinconnectionwith
reinvestmentofdividendsordividendequivalents,iv)sharesthathavebeendelivered(eitheractuallyorconstructivelybyattestation)totheCompanyin
paymentorsatisfactionofthepurchasepriceortaxwithholdingobligationofanAward,v)sharesreacquiredbytheCompanyontheopenmarketusing
OptionProceeds;provided,however,thattheaggregatenumberofsharesthatmaybeaddedbacktotheaggregatelimitshallnotbegreaterthanthe
amountofsuchOptionProceedsdividedbytheFairMarketValueonthedateofexerciseoftheStockOptiongivingrisetosuchOptionProceeds,andvi)
sharessubjecttoAwardsthatotherwisedonotresultintheissuanceofsharesinconnectionwithpaymentorsettlementofanAward.Inaddition,the
aggregatenumberofsharesavailableforgrantunderthisPlanshallnotbereducedbysharesgrantedasSubstituteAwards.
6.2AdjustmenttoSharesIfthereisanychangeinthenumberofoutstandingsharesofCommonStockthroughthedeclarationofstock
dividends,stocksplitsorthelike,thenumberofsharesavailableforAwards,thesharessubjecttoanyAwardandtheoptionpricesorexercisepricesof
Awardsshallbeautomaticallyadjusted.IfthereisanychangeinthenumberofoutstandingsharesofCommonStockthroughanychangeinthecapital
accountofKodak,orthroughamerger,consolidation,separation(includingaspin-offorotherdistributionofstockorproperty),reorganization(whether
ornotsuchreorganizationcomeswithinthemeaningofsuchterminSection368(a)oftheCode)orpartialorcompleteliquidation,theCommitteeshall
makeappropriateadjustmentsinthemaximumnumberofsharesofCommonStockwhichmaybegrantedunderthePlanandanyadjustmentsand/or
modificationstooutstandingAwardsasit,initssolediscretion,deemsappropriate.IntheeventofanyotherchangeinthecapitalstructureorintheCom-
monStockofKodak,theCommitteeshallalsobeauthorizedtomakesuchappropriateadjustmentsinthemaximumnumberofsharesofCommonStock
availableforgrantunderthePlanandanyadjustmentsand/ormodificationstooutstandingAwardsasit,initssolediscretion,deemsappropriate.The
maximumnumberofsharesavailableforgrantunderthePlanshallbeautomaticallyadjustedtotheextentnecessarytoreflectanydividendequivalents
paidintheformofCommonStock.
ARTICLE7—PerformanceAwards
7.1InGeneralAwardsmaybegrantedtoParticipantsintheformofPerformanceAwardsunderthePlan.
7.2PerformanceCriteriaThePerformanceCriteriatobemeasuredduringanyPerformanceCycleselectedbytheCommitteemaybeona
corporate-widebasisbasedonaggregateCompanyperformanceorperformanceattheSubsidiaryorbusinessunitlevel.Theperformancegoalsunderthe
PerformanceCriteriamaybemeasuredagainstabsolutetargetsorrelativetotheperformanceofoneormorecomparablecompaniesoranindexcovering
multiplecompanies.
7.3DiscretionofCommitteewithRespecttoPerformanceAwardsWithregardtoaparticularPerformanceCycle,theCom-
mitteeshallhavefulldiscretiontoselectthelengthofsuchPerformanceCycle,thetype(s)ofPerformanceAwardstobeissued,thePerformanceCriteria
thatwillbeusedtoestablishthePerformanceFormula,thekind(s)and/orlevel(s)ofthegoalsunderthePerformanceFormula,whetherthePerformance
CriteriashallapplytotheCompany,Kodak,aSubsidiaryoranyoneormoresubunitsoftheforegoingandthePerformanceFormula.
7.4PaymentofPerformanceAwardsa)ConditiontoReceiptofPerformanceAward.UnlessotherwiseprovidedintherelevantAward
Noticeoradministrativeguide,aParticipantmustbeemployedbytheCompanyonthelastdayofaPerformanceCycletobeeligibleforaPerformance
AwardforsuchPerformanceCycle.
b)Limitation.UnlessotherwisedeterminedbytheCommittee,aParticipantshallbeeligibletoreceiveaPerformanceAwardforaPerformanceCycle
onlytotheextentthatachievementofthegoalsunderthePerformanceFormulaforsuchperiodismeasuredandasaresult,allorsomeportionofsuch
Participant’sPerformanceAwardhasbeenearnedforthePerformanceCycle.
c)TimingofAwardPayments.TheAwardsgrantedforaPerformanceCycleshallbepaidtoParticipantsassoonasadministrativelypossiblefollowing
determinationofachievementofthegoalsunderthePerformanceFormulaandsatisfactionofanyapplicablevestingperiodsorothertermsandconditions.
7.5MaximumAwardPayableThemaximumPerformanceAwardpayabletoanyoneParticipantunderthePlanforaPerformanceCycleisfive
hundredthousand(500,000)sharesofCommonStock.IntheeventthatthePerformanceAwardisdenominatedincashratherthansharesofCommon
Stock,themaximumindividualcashawardpaidinrespectofanyPerformanceCycleshallbefivemilliondollars($5,000,000).
ARTICLE8—StockOptions
8.1InGeneralAwardsmaybegrantedintheformofStockOptions.TheseStockOptionsmaybeIncentiveStockOptionsornon-qualifiedstock
options(i.e.,StockOptionswhicharenotIncentiveStockOptions)(“Non-QualifiedStockOptions”),oracombinationofboth.
8.2TermsandConditionsofStockOptionsa)InGeneral.AStockOptionshallbeexercisableinaccordancewithsuchtermsand
conditionsandatsuchtimesandduringsuchperiodsasmaybedeterminedbytheCommitteeinitssolediscretionandassetforthinanindividualAward
Notice;provided,however,noStockOptionshallbeexercisableaftertheexpirationofsevenyearsfromtheEffectiveDateoftheStockOption.Theprice
atwhichCommonStockmaybepurchaseduponexerciseofaStockOptionshallbenotlessthan100%oftheFairMarketValueoftheCommonStock
ontheEffectiveDateoftheStockOption’sgrantexceptforgrantsofSubstituteAwards.Moreover,allStockOptionsshallhaveavestingschedulenotless
thanoneyearfromthedateofgrant,exceptundercertaincircumstancescontemplatedbySection12.2orArticle15.