Kodak 2004 Annual Report Download - page 171

Exhibits
62
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
(b)฀Other฀than฀pursuant฀to฀Section฀6.2฀or฀as฀a฀result฀of฀a฀grant฀of฀a฀Substitute฀Award,฀the฀Committee฀shall฀not฀be฀permitted฀to฀i)฀lower฀the฀option฀price฀per฀
share฀of฀a฀Stock฀Option฀after฀it฀is฀granted,฀ii)฀cancel฀a฀Stock฀Option฀when฀the฀option฀price฀per฀share฀exceeds฀the฀Fair฀Market฀Value฀of฀the฀underlying฀shares฀
in฀exchange฀for฀another฀Award฀or฀iii)฀take฀any฀other฀action฀with฀respect฀to฀a฀Stock฀Option฀that฀may฀be฀treated฀as฀a฀repricing฀under฀the฀rules฀and฀regulations฀
of฀the฀New฀York฀Stock฀Exchange,฀without฀shareholder฀approval.
8.3฀฀Restrictions฀Relating฀to฀Incentive฀Stock฀Options฀฀Stock฀Options฀issued฀in฀the฀form฀of฀Incentive฀Stock฀Options฀shall,฀in฀addition฀to฀
being฀subject฀to฀the฀terms฀and฀conditions฀of฀Section฀8.2,฀comply฀with฀Section฀422฀of฀the฀Code.฀Accordingly,฀the฀aggregate฀Fair฀Market฀Value฀(determined฀
at฀the฀time฀the฀Incentive฀Stock฀Option฀was฀granted)฀of฀the฀Common฀Stock฀with฀respect฀to฀which฀Incentive฀Stock฀Options฀are฀exercisable฀for฀the฀first฀time฀
by฀a฀Participant฀during฀any฀calendar฀year฀(under฀this฀Plan฀or฀any฀other฀plan฀of฀the฀Company)฀shall฀not฀exceed฀one฀hundred฀thousand฀dollars฀($100,000)฀(or฀
such฀other฀limit฀as฀may฀be฀required฀by฀the฀Code).฀฀
8.4฀฀Additional฀Terms฀and฀Conditions฀฀The฀Committee฀may,฀by฀way฀of฀the฀Award฀Notice฀or฀otherwise,฀establish฀such฀other฀terms,฀conditions,฀
restrictions฀and/or฀limitations,฀if฀any,฀of฀any฀Stock฀Option฀Award,฀provided฀that฀they฀are฀not฀inconsistent฀with฀the฀Plan.
8.5฀฀Exercise฀฀Upon฀exercise,฀the฀option฀price฀of฀a฀Stock฀Option฀may,฀at฀the฀Committee’s฀discretion,฀be฀paid฀in฀cash฀(or฀equivalents),฀or฀by฀tendering,฀
by฀either฀actual฀delivery฀of฀shares฀or฀by฀attestation,฀shares฀of฀Common฀Stock,฀a฀combination฀of฀the฀foregoing฀or฀such฀other฀consideration฀as฀the฀Commit-
tee฀may฀deem฀appropriate.฀Any฀shares฀of฀Common฀Stock฀tendered฀by฀a฀Participant฀upon฀exercise฀of฀a฀Stock฀Option฀must,฀if฀acquired฀by฀the฀Participant฀
pursuant฀to฀a฀previous฀Stock฀Option฀exercise,฀be฀owned฀by฀the฀Participant฀for฀at฀least฀six฀months฀prior฀to฀the฀date฀of฀exercise฀of฀the฀Stock฀Option.฀The฀
Committee฀shall฀establish฀appropriate฀methods฀for฀accepting฀Common฀Stock,฀whether฀restricted฀or฀unrestricted,฀and฀may฀impose฀such฀conditions฀as฀it฀
deems฀appropriate฀on฀the฀use฀of฀such฀Common฀Stock฀to฀exercise฀a฀Stock฀Option.฀฀
8.6฀฀Maximum฀Award฀Payable฀฀Notwithstanding฀any฀provision฀contained฀in฀the฀Plan฀to฀the฀contrary,฀the฀maximum฀number฀of฀shares฀for฀which฀
Stock฀Options฀may฀be฀granted฀under฀the฀Plan฀to฀any฀one฀Participant฀in฀any฀thirty-six฀(36)฀month฀period฀is฀two฀million฀(2,000,000)฀shares฀of฀Common฀
Stock.฀฀
ARTICLE฀9฀—฀Stock฀Appreciation฀Rights
9.1฀฀In฀General฀฀Awards฀may฀be฀granted฀in฀the฀form฀of฀SARs.฀SARs฀entitle฀the฀Participant฀to฀receive฀a฀payment฀equal฀to฀the฀appreciation฀in฀a฀stated฀
number฀of฀shares฀of฀Common฀Stock฀from฀the฀exercise฀price฀to฀the฀Fair฀Market฀Value฀of฀the฀Common฀Stock฀on฀the฀date฀of฀exercise.฀An฀SAR฀may฀be฀granted฀
in฀tandem฀with฀all฀or฀a฀portion฀of฀a฀related฀Stock฀Option฀under฀the฀Plan฀(“Tandem฀SARs”),฀or฀may฀be฀granted฀separately฀(“Freestanding฀SARs”).฀A฀Tandem฀
SAR฀may฀be฀granted฀either฀at฀the฀time฀of฀the฀grant฀of฀the฀related฀Stock฀Option฀or฀at฀any฀time฀thereafter฀during฀the฀term฀of฀the฀Stock฀Option.฀฀
9.2฀฀Terms฀and฀Conditions฀of฀SARs฀฀a)฀Tandem฀SARs.฀A฀Tandem฀SAR฀shall฀be฀exercisable฀to฀the฀extent,฀and฀only฀to฀the฀extent,฀that฀the฀
related฀Stock฀Option฀is฀exercisable,฀and฀the฀“exercise฀price”฀of฀such฀an฀SAR฀(the฀base฀from฀which฀the฀value฀of฀the฀SAR฀is฀measured฀at฀its฀exercise)฀shall฀
be฀the฀option฀price฀under฀the฀related฀Stock฀Option.฀If฀a฀Tandem฀SAR฀is฀added฀to฀an฀outstanding฀option,฀the฀exercise฀price฀shall฀be฀the฀same฀as฀the฀earlier฀
granted฀option฀which฀may฀be฀less฀than฀100%฀of฀the฀Fair฀Market฀Value฀on฀the฀date฀the฀SAR฀is฀granted.฀If฀a฀related฀Stock฀Option฀is฀exercised฀as฀to฀some฀
or฀all฀of฀the฀shares฀covered฀by฀the฀Award,฀the฀related฀Tandem฀SAR,฀if฀any,฀shall฀be฀cancelled฀automatically฀to฀the฀extent฀of฀the฀number฀of฀shares฀covered฀
by฀the฀Stock฀Option฀exercise.฀Upon฀exercise฀of฀a฀Tandem฀SAR฀as฀to฀some฀or฀all฀of฀the฀shares฀covered฀by฀the฀Award,฀the฀related฀Stock฀Option฀shall฀be฀
cancelled฀automatically฀to฀the฀extent฀of฀the฀number฀of฀shares฀covered฀by฀such฀exercise.฀Moreover,฀all฀Tandem฀SARs฀shall฀expire฀not฀later฀than฀the฀earlier฀of฀
1)฀seven฀years฀from฀the฀Effective฀Date฀of฀the฀SAR’s฀grant฀or฀2)฀the฀expiration฀of฀the฀related฀Stock฀Option.฀฀
b)฀Freestanding฀SARs.฀Freestanding฀SARs฀shall฀be฀exercisable฀in฀accordance฀with฀such฀terms฀and฀conditions฀and฀at฀such฀times฀and฀during฀such฀periods฀
as฀may฀be฀determined฀by฀the฀Committee.฀The฀exercise฀price฀of฀a฀Freestanding฀SAR฀shall฀be฀not฀less฀than฀100%฀of฀the฀Fair฀Market฀Value฀of฀the฀Common฀
Stock,฀as฀determined฀by฀the฀Committee,฀on฀the฀Effective฀Date฀of฀the฀Freestanding฀SAR’s฀grant.฀Moreover,฀all฀Freestanding฀SARs฀shall฀expire฀not฀later฀than฀
seven฀years฀from฀the฀Effective฀Date฀of฀the฀Freestanding฀SAR’s฀grant฀and฀generally฀have฀the฀same฀terms฀and฀conditions฀as฀Stock฀Options.฀
c)฀Other฀than฀pursuant฀to฀Section฀6.2฀or฀as฀a฀result฀of฀a฀grant฀of฀a฀Substitute฀Award,฀the฀Committee฀shall฀not฀be฀permitted฀to:฀i)฀lower฀the฀exercise฀price฀of฀
an฀SAR฀after฀it฀is฀granted,฀ii)฀cancel฀an฀SAR฀when฀the฀exercise฀price฀exceeds฀the฀Fair฀Market฀Value฀of฀the฀underlying฀shares฀of฀Common฀Stock฀in฀exchange฀
for฀another฀Award฀or฀iii)฀take฀any฀other฀action฀with฀respect฀to฀an฀SAR฀that฀may฀be฀treated฀as฀a฀repricing฀under฀the฀rules฀and฀regulations฀of฀the฀New฀York฀
Stock฀Exchange,฀in฀each฀case฀without฀shareholder฀approval.
9.3฀฀Intentionally฀omitted.
9.4฀฀Additional฀Terms฀and฀Conditions฀฀The฀Committee฀may,฀by฀way฀of฀the฀Award฀Notice฀or฀otherwise,฀determine฀such฀other฀terms,฀condi-
tions,฀restrictions฀and/or฀limitations,฀if฀any,฀of฀any฀SAR฀Award,฀provided฀that฀they฀are฀not฀inconsistent฀with฀the฀Plan.
9.5฀฀Maximum฀Award฀Payable฀฀Notwithstanding฀any฀provision฀contained฀in฀the฀Plan฀to฀the฀contrary,฀the฀maximum฀number฀of฀shares฀for฀which฀
SARs฀may฀be฀granted฀under฀the฀Plan฀to฀any฀one฀Participant฀for฀a฀thirty-six฀(36)฀month฀period฀is฀two฀million฀(2,000,000)฀shares฀of฀Common฀Stock.฀฀
9.6฀฀Payments฀of฀SARs฀฀In฀the฀event฀that฀the฀SAR฀is฀paid฀in฀cash,฀the฀corresponding฀cash฀(or฀equivalents)฀thereof฀shall฀be฀paid฀as฀of฀the฀date฀that฀
the฀SAR฀is฀exercised.฀฀