Kodak 2007 Annual Report Download - page 188

65
Supplemental Individual Retirement Arrangements
Antonio M. Perez
Mr. Perez is eligible for a supplemental unfunded retirement benefit under the terms of his March 3, 2003 and February 27, 2007 letter
agreements. Under these agreements, because Mr. Perez has been employed for three years, he will be treated as if eligible for the
traditional defined benefit component of KRIP. For this purpose, he will be considered to have completed eight years of service with the
Company and attained age 65. If, instead, Mr. Perez actually remains employed until age 65, he will be considered to have completed 25
years of service with the Company. Mr. Perez’s supplemental retirement benefit will be offset by his cash balance benefit under KRIP,
KERIP and KURIP, and any Company matching contributions contributed to his account under SIP. Mr. Perez’s February 27, 2007 letter
agreement also provided that if Mr. Perez had been terminated before June 1, 2007, he would have received his supplemental retirement
benefit in a monthly annuity, with payments beginning the first month following the six-month anniversary of Mr. Perez’s termination and
continuing until the end of 2007, with the remainder paid in a lump sum on or after January 1, 2008. However, if Mr. Perez is terminated
after January 1, 2008, he will receive his supplemental retirement benefit in a lump sum following the six-month anniversary of his
termination.
Frank S. Sklarsky
In addition to the benefit Mr. Sklarsky may be eligible for under the cash balance component, he is covered under a supplemental
unfunded retirement benefit under the terms of his letter agreements dated September 19, 2006 and September 26, 2006. Under these
agreements, the Company established a phantom cash balance account on behalf of Mr. Sklarsky. The Company agreed to credit the
account by $100,000 each year for up to five years, beginning October 30, 2007. Any amounts credited to this account will earn interest at
the same interest rate that amounts accrue interest under the cash balance benefit. In order to receive any of the amounts credited to this
account, Mr. Sklarsky must remain continuously employed for at least five years unless the Company terminates his employment for a
reason other than cause. Upon termination of employment, any vested amount will be payable in a lump sum within four weeks after the
six-month waiting period required for compliance under Section 409A of the Code.
Philip J. Faraci
Mr. Faraci is eligible for a supplemental unfunded retirement benefit under the terms of his November 3, 2004 letter agreement. Under this
agreement, he is eligible to receive an extra 1.5 years of credited service for each year he is employed, up to a maximum of 20 years of
enhanced credited service. If Mr. Faraci remains employed for five years, he will be treated as if eligible for the traditional defined benefit
component of KRIP, and will be considered to have completed 12.5 years of service with the Company. If, instead, he remains employed
for 12 years, he will be considered to have completed 30 years of service with the Company. Mr. Faraci’s supplemental retirement benefit
will be offset by his cash balance benefit under KRIP, KERIP and KURIP, any Company matching contributions contributed to his account
under SIP and any retirement benefits provided to him pursuant to the retirement plan of any former employer.
Mr. Faraci’s letter agreement was amended by a letter agreement dated February 28, 2007 to provide for lump-sum payment of his
supplemental retirement benefits. The terms of the February 28, 2007 agreement provide that if Mr. Faraci had been terminated before
June 1, 2007, he would have received his supplemental retirement benefit in a monthly annuity, with payments beginning the first month
following the six-month anniversary of Mr. Faraci’s termination and continuing until the end of 2007, with the remainder paid in a lump sum
on or after January 1, 2008. However, if Mr. Faraci is terminated after January 1, 2008, he will receive his supplemental retirement benefit
in a lump sum following the six-month anniversary of his termination.
James T. Langley
In addition to the benefit Mr. Langley may be eligible for under the cash balance component, he is also eligible for a supplemental
unfunded retirement benefit under the terms of his August 12, 2003 offer letter. Under this agreement, the Company established a
phantom cash balance account on behalf of Mr. Langley. For each full year of service he remains employed (up to a maximum of six
years), the Company will credit the account with $100,000. The maximum the Company is obligated to credit to the account is $600,000.
Any amounts credited to the account earn interest at the same rate that amounts accrue interest under the cash balance component. In
order to receive any of the amounts credited to this account, Mr. Langley must remain continuously employed for at least three years
unless his employment terminates for certain specified reasons.
Mr. Langley’s letter agreement was amended by a letter agreement dated February 28, 2007 to provide for a lump-sum payment of his
supplemental retirement benefits. Under the leaving benefits approved by the Compensation Committee for Mr. Langley on September 21,
2007, Mr. Langley will receive service credit for the period beginning August 18, 2007 and ending on the date of his departure and,
therefore, will receive a pro-rated portion of the $100,000 that would be credited to him if he remained employed through August 18, 2008.