Kodak 2004 Annual Report Download - page 172

Exhibits
63
E A S T M A N฀ K OD A K ฀ C O M PA N Y
ARTICLE฀10฀—฀Restricted฀Stock฀Awards
10.1฀฀Grants฀฀Awards฀under฀this฀Article฀10฀may฀be฀granted฀to฀Participants,฀either฀alone฀or฀in฀addition฀to฀other฀Awards฀granted฀under฀the฀Plan฀as฀
Restricted฀Stock฀Awards฀or฀Restricted฀Stock฀Unit฀Awards.฀Awards฀may฀be฀granted฀in฀the฀form฀of:฀i)฀freestanding฀grants฀that฀vest฀based฀on฀the฀passage฀of฀
time,฀or฀ii)฀grants฀in฀payment฀of฀earned฀Performance฀Awards฀or฀other฀incentive฀compensation฀under฀another฀plan฀maintained฀by฀the฀Company.฀฀
10.2฀฀Award฀Restrictions฀฀Restricted฀Stock฀Awards฀or฀Restricted฀Stock฀Unit฀Awards฀shall฀be฀subject฀to฀such฀terms,฀conditions,฀restrictions฀and/or฀
limitations,฀if฀any,฀as฀the฀Committee฀deems฀appropriate฀including,฀but฀not฀by฀way฀of฀limitation,฀restrictions฀on฀transferability฀and฀continued฀employment;฀
provided,฀however,฀they฀are฀not฀inconsistent฀with฀the฀Plan.฀The฀Committee฀may฀modify฀or฀accelerate฀the฀delivery฀of฀a฀Restricted฀Stock฀Award฀or฀Restricted฀
Stock฀Unit฀Award฀under฀such฀circumstances฀as฀it฀deems฀would฀be฀in฀the฀best฀interest฀of฀the฀Company.
10.3฀฀Vesting฀Period฀for฀Awards฀to฀Employees฀฀Except฀as฀provided฀in฀Section฀12.2฀or฀Article฀15,฀the฀period฀to฀achieve฀full฀vesting฀for฀
Restricted฀Stock฀Awards฀and฀Restricted฀Stock฀Unit฀Awards฀granted฀to฀Employees฀in฀the฀form฀of฀freestanding฀grants฀shall฀not฀be฀shorter฀than฀three฀years.฀
Vesting฀under฀the฀Plan฀can฀be฀on฀a฀pro฀rata฀or฀graded฀basis฀over฀the฀period฀or฀cliff฀at฀the฀end฀of฀the฀period;฀provided,฀however,฀that฀grants฀made฀to฀new฀
hires฀to฀replace฀forfeited฀awards฀from฀a฀prior฀employer฀and฀grants฀in฀payment฀of฀earned฀Performance฀Awards฀(or฀other฀incentive฀compensation)฀are฀not฀
subject฀to฀the฀minimum฀vesting฀period.
10.4฀฀Evidence฀of฀Award฀฀Any฀Restricted฀Stock฀Award฀or฀Restricted฀Stock฀Unit฀Award฀granted฀under฀the฀Plan฀may฀be฀evidenced฀in฀such฀manner฀
as฀the฀Committee฀deems฀appropriate,฀including,฀without฀limitation,฀book-entry฀registration฀or฀issuance฀of฀a฀stock฀certificate฀or฀certificates.
ARTICLE฀11฀—฀Other฀Stock-Based฀Awards
11.1฀฀Grants฀฀Awards฀under฀this฀Article฀11฀may฀be฀granted฀to฀Participants,฀either฀alone฀or฀in฀addition฀to฀the฀Awards฀granted฀under฀the฀Plan,฀in฀the฀
form฀of฀Other฀Stock-Based฀Awards.฀Awards฀may฀be฀granted฀either฀as฀freestanding฀grants฀or฀payments฀of฀earned฀Performance฀Awards฀or฀other฀incentive฀
compensation฀under฀another฀plan฀maintained฀by฀the฀Company.
11.2฀฀Conditions฀and฀Terms฀of฀Other฀Stock-Based฀Grants฀฀The฀Committee฀may฀by฀way฀of฀the฀Award฀Notice฀or฀otherwise,฀determine฀
such฀other฀terms,฀conditions,฀restrictions฀and/or฀limitations,฀if฀any,฀of฀any฀Other฀Stock-Based฀Award,฀provided฀that฀they฀are฀not฀inconsistent฀with฀the฀Plan.฀
Other฀Stock-Based฀Awards฀in฀the฀form฀of฀deferred฀stock฀units฀shall฀not฀be฀subject฀to฀a฀minimum฀vesting฀period.
ARTICLE฀12฀—฀Payment฀of฀Awards
12.1฀฀In฀General฀฀Absent฀a฀Plan฀provision฀to฀the฀contrary,฀payment฀of฀Awards฀may,฀at฀the฀discretion฀of฀the฀Committee,฀be฀made฀in฀cash฀(or฀equiva-
lents),฀Common฀Stock฀or฀a฀combination฀of฀cash฀and฀Common฀Stock.฀In฀addition,฀payment฀of฀Awards฀may฀include฀such฀terms,฀conditions,฀restrictions฀
and/or฀limitations,฀if฀any,฀as฀the฀Committee฀deems฀appropriate,฀including,฀in฀the฀case฀of฀Awards฀paid฀in฀the฀form฀of฀Common฀Stock,฀restrictions฀on฀transfer฀
and฀forfeiture฀provisions;฀provided,฀however,฀such฀terms,฀conditions,฀restrictions฀and/or฀limitations฀are฀not฀inconsistent฀with฀the฀Plan.฀Further,฀payment฀of฀
Awards฀may฀be฀made฀in฀the฀form฀of฀a฀lump฀sum฀or฀installments,฀as฀determined฀by฀the฀Committee.฀฀
12.2฀฀Termination฀of฀Employment฀฀The฀Committee฀shall฀determine฀the฀treatment฀of฀a฀Participant’s฀Award฀under฀the฀Plan฀in฀the฀event฀of฀the฀
Participant’s฀termination฀of฀employment,฀either฀in฀an฀individual฀Award฀Notice฀or฀at฀the฀time฀of฀termination.
12.3฀฀Inimical฀Conduct฀฀If฀a฀Participant฀performs฀any฀act฀or฀engages฀in฀any฀activity฀which฀the฀CEO,฀in฀the฀case฀of฀an฀Employee฀or฀former฀Employee,฀
or฀the฀Committee,฀in฀the฀case฀of฀the฀CEO,฀a฀Director,฀or฀a฀former฀Director,฀determines฀is฀inimical฀to฀the฀best฀interests฀of฀the฀Company,฀the฀Participant฀shall,฀
effective฀as฀of฀the฀date฀the฀Participant฀engages฀in฀such฀conduct,฀forfeit฀all฀unexercised,฀unearned฀and/or฀unpaid฀Awards,฀including,฀but฀not฀by฀way฀of฀
limitation,฀Awards฀earned฀but฀not฀yet฀paid,฀all฀unpaid฀dividends฀and฀dividend฀equivalents฀and฀all฀interest,฀if฀any,฀accrued฀on฀the฀foregoing.
12.4฀฀Breach฀of฀Employee’s฀Agreement฀฀a)฀In฀General.฀A฀Participant฀who฀engages฀in฀conduct฀described฀in฀Section฀12.4(c)฀below฀shall฀im-
mediately:฀1)฀forfeit,฀effective฀as฀of฀the฀date฀the฀Participant฀engages฀in฀such฀conduct,฀all฀unexercised,฀unearned฀and/or฀unpaid฀Awards,฀including,฀but฀not฀
by฀way฀of฀limitation,฀Awards฀earned฀but฀not฀yet฀paid,฀all฀unpaid฀dividends฀and฀dividend฀equivalents฀and฀all฀interest,฀if฀any,฀accrued฀on฀the฀foregoing,฀and฀2)฀
pay฀to฀the฀Company฀the฀amount฀of฀any฀gain฀realized฀or฀payment฀received฀as฀a฀result฀of฀any฀Stock฀Option฀or฀SAR฀exercised฀by฀the฀Participant฀under฀the฀Plan฀
within฀the฀two-year฀period฀immediately฀preceding฀the฀date฀the฀Participant฀engages฀in฀such฀conduct.
b)฀Set-Off.฀By฀accepting฀an฀Award฀under฀this฀Plan,฀a฀Participant฀consents฀to฀a฀deduction฀from฀any฀amounts฀the฀Company฀owes฀the฀Participant฀from฀time฀
to฀time฀(including,฀but฀not฀limited฀to,฀amounts฀owed฀to฀the฀Participant฀as฀wages฀or฀other฀compensation,฀fringe฀benefits฀or฀vacation฀pay),฀to฀the฀extent฀of฀
the฀amounts฀the฀Participant฀owes฀the฀Company฀under฀Section฀12.4(a).฀Whether฀or฀not฀the฀Company฀elects฀to฀make฀any฀set-off฀in฀whole฀or฀in฀part,฀if฀the฀
Company฀does฀not฀recover฀by฀means฀of฀set-off฀the฀full฀amount฀the฀Participant฀owes฀the฀Company,฀the฀Participant฀shall฀immediately฀pay฀the฀unpaid฀balance฀
to฀the฀Company.
c)฀Conduct.฀The฀following฀conduct฀shall฀result฀in฀the฀consequences฀described฀in฀Section฀12.4(a):
฀ i)฀Kodak.฀In฀the฀case฀of฀a฀Participant฀who฀has฀signed฀a฀Kodak฀company฀employee’s฀agreement฀that฀has฀restrictive฀covenants฀similar฀to฀those฀in฀Section฀฀
฀ (iii)฀below฀(an฀“Eastman฀Kodak฀Company฀Employee’s฀Agreement”),฀the฀Participant’s฀breach฀of฀the฀Eastman฀Kodak฀Company฀Employee’s฀Agreement.