Kodak 2004 Annual Report Download - page 165
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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
nExhibitI—2005OmnibusLong-TermCompensationPlan
ARTICLE1—PurposeandTermofPlan
1.1PurposeThepurposeofthePlanistoprovidemotivationtoselectedEmployeesandDirectorstoputforthmaximumeffortstowardthecontinued
growth,profitabilityandsuccessoftheCompanybyprovidingequity-andcash-basedincentivestosuchEmployeesandDirectors.
1.2TermThePlanwillbecomeeffectiveonJanuary1,2005,subjecttoitsapprovalbyKodak’sshareholders,atthe2005AnnualMeetingofthe
shareholders,andunlesssoonerterminatedbytheBoardpursuanttoSection16.6,thePlanshallhaveatermof10years.Awardsmaynotbegranted
afterDecember31,2014;exceptthattheCommitteemaygrantAwardsafterthisdateinrecognitionofperformanceforPerformanceCyclescommencing
priortosuchdate.
ARTICLE2—Definitions
InanynecessaryconstructionofaprovisionofthisPlan,themasculinegendermayincludethefeminine,andthesingularmayincludetheplural,andvice
versa.
2.1Award“Award”meansgrantsofbothequity-andcash-basedawards,includingPerformanceAwards,StockOptions,SARs,RestrictedStock
Awards,RestrictedStockUnitAwards,OtherStock-BasedAwardsoranyformofawardestablishedbytheCommitteepursuanttoSubsection4.2(o),
whethersingly,incombinationorintandem,toaParticipantbytheCommitteepursuanttosuchterms,conditions,restrictionsand/orlimitations,ifany,as
theCommitteemayestablishbytheAwardNoticeorotherwise.
2.2AwardNotice“AwardNotice”meansthewrittendocumentestablishingtheterms,conditions,restrictionsand/orlimitationsofanAwardin
additiontothoseestablishedbythisPlanandbytheCommittee’sexerciseofitsadministrativepowers.TheCommitteeshallestablishtheformofthewrit-
tendocumentintheexerciseofitssoleandabsolutediscretion.TheCommitteemay,butneednot,requireaParticipanttosignacopyoftheAwardNotice
asapreconditiontoreceivinganAward.
2.3Board“Board”meanstheBoardofDirectorsofKodak.
2.4CEO“CEO”meanstheChiefExecutiveOfficerofKodak.
2.5ChangeinControl“ChangeinControl”meanstheoccurrenceofanyoneofthefollowingevents:
a)withinanytwenty-four(24)monthperiod,theIncumbentDirectorsshallceasetoconstituteatleastamajorityoftheBoardortheboardofdirectorsof
anysuccessortotheCompany;
b)anypersonisorbecomesa“beneficialowner”(asdefinedinRule13d-3undertheExchangeAct),directlyorindirectly,ofsecuritiesofKodakrepre-
senting25%ormoreofthecombinedvotingpowerofKodak’sthenoutstandingsecuritieseligibletovotefortheelectionoftheBoard(theKodakVoting
Securities);provided,however,thattheeventdescribedinthisparagraph(b)shallnotbedeemedtobeaChangeinControlbyvirtueofanyofthefollow-
ingacquisitions:1)byKodakoranySubsidiary;2)byanyemployeebenefitplan(orrelatedtrust)sponsoredormaintainedbyKodakoranySubsidiary;
3)byanyunderwritertemporarilyholdingsecuritiespursuanttoanofferingofsuchsecurities;4)pursuanttoaNon-QualifyingTransaction(asdefinedin
paragraph(c)below);or5)atransaction(otherthanonedescribedinparagraph(c)below)inwhichKodakVotingSecuritiesareacquiredfromKodak,ifa
majorityoftheIncumbentDirectorsapprovearesolutionprovidingexpresslythattheacquisitionpursuanttothisclause(5)doesnotconstituteaChangein
Controlunderthisparagraph(b);
c)theconsummationofamerger,consolidation,statutoryshareexchangeorsimilarformofcorporatetransactioninvolvingKodakoranyofitsSubsidiar-
iesthatrequirestheapprovalofKodak’sshareholders,whetherforsuchtransactionortheissuanceofsecuritiesinthetransaction(aReorganization),un-
lessimmediatelyfollowingsuchReorganization:1)morethan60%ofthetotalvotingpowerof(x)thecorporationresultingfromsuchReorganization(the
SurvivingCompany),or(y)ifapplicable,theultimateparentcorporationthatdirectlyorindirectlyhasbeneficialownershipof100%ofthevotingsecurities
eligibletoelectdirectorsoftheSurvivingCompany(theParentCompany),isrepresentedbyKodakVotingSecuritiesthatwereoutstandingimmediately
priortosuchReorganization(or,ifapplicable,isrepresentedbysharesintowhichsuchKodakVotingSecuritieswereconvertedpursuanttosuchReor-
ganization),andsuchvotingpoweramongtheholdersthereofisinsubstantiallythesameproportionasthevotingpowerofsuchKodakVotingSecurities
amongtheholdersthereofimmediatelypriortotheReorganization;2)noperson(otherthananyemployeebenefitplan(orrelatedtrust)sponsoredor
maintainedbytheSurvivingCompanyortheParentCompany),isorbecomesthebeneficialowner,directlyorindirectly,of25%ormoreofthetotalvoting
poweroftheoutstandingvotingsecuritieseligibletoelectdirectorsoftheParentCompany(or,ifthereisnoParentCompany,theSurvivingCompany);and
3)atleastamajorityofthemembersoftheBoardofdirectorsoftheParentCompany(or,ifthereisnoParentCompany,theSurvivingCompany)following
theconsummationoftheReorganizationwereIncumbentDirectorsatthetimeoftheBoard’sapprovaloftheexecutionoftheinitialagreementproviding
forsuchReorganization(anyReorganizationwhichsatisfiesallofthecriteriaspecifiedin(1),(2)and(3)aboveshallbedeemedtobeaNon-Qualifying
Transaction);
d)theshareholdersofKodakapproveaplanofcompleteliquidationordissolutionofKodak;or
e)theconsummationofasaleofallorsubstantiallyallofKodak’sassetstoanentitythatisnotanaffiliateofKodak.