Kodak 2004 Annual Report Download - page 173

Exhibits
64
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
฀ ฀ii)฀Subsidiary.฀In฀the฀case฀of฀a฀Participant฀who฀is฀employed฀by฀a฀Subsidiary฀and฀has฀signed฀a฀written฀agreement฀with฀the฀Subsidiary฀that฀contains฀
restrictive฀covenants฀similar฀to฀those฀in฀the฀Eastman฀Kodak฀Company฀Employee’s฀Agreement,฀the฀Participant’s฀breach฀of฀such฀written฀agreement.
฀ ฀iii)฀Other฀Participants.฀In฀the฀case฀of฀a฀Participant฀other฀than฀a฀Participant฀described฀in฀Subsection฀12(c)(i)฀or฀(ii)฀above,฀the฀Participant฀without฀the฀prior฀
written฀consent฀of฀Kodak,฀in฀the฀case฀of฀an฀Employee฀or฀former฀Employee,฀or฀the฀Committee,฀in฀the฀case฀of฀a฀Director฀or฀former฀Director:฀A)฀engages฀
directly฀or฀indirectly฀in฀any฀manner฀or฀capacity฀as฀principal,฀agent,฀partner,฀officer,฀director,฀stockholder,฀employee฀or฀otherwise,฀in฀any฀business฀or฀
activity฀competitive฀with฀the฀business฀conducted฀by฀Kodak฀or฀any฀Subsidiary;฀or฀B)฀at฀any฀time฀divulges฀to฀any฀person฀or฀any฀entity฀other฀than฀the฀
Company฀any฀trade฀secrets,฀methods,฀processes฀or฀the฀proprietary฀or฀confidential฀information฀of฀the฀Company.฀For฀purposes฀of฀this฀Section฀12.4(c)(iii),฀
a฀Participant฀shall฀not฀be฀deemed฀a฀stockholder฀if฀the฀Participant’s฀record฀and฀beneficial฀ownership฀amount฀to฀not฀more฀than฀1%฀of฀the฀outstanding฀
capital฀stock฀of฀any฀company฀subject฀to฀the฀periodic฀and฀other฀reporting฀requirements฀of฀the฀Exchange฀Act.
ARTICLE฀13฀—฀Dividend฀and฀Dividend฀Equivalent
The฀Committee฀may฀choose,฀at฀the฀time฀of฀the฀grant฀of฀an฀Award฀or฀any฀time฀thereafter฀up฀to฀the฀time฀of฀the฀Award’s฀payment,฀to฀include฀as฀part฀of฀such฀
Award฀an฀entitlement฀to฀receive฀cash฀dividends฀or฀dividend฀equivalents,฀subject฀to฀such฀terms,฀conditions,฀restrictions฀and/or฀limitations,฀if฀any,฀as฀the฀
Committee฀may฀establish.฀Dividends฀and฀dividend฀equivalents฀shall฀be฀paid฀in฀such฀form฀and฀manner฀(i.e.,฀lump฀sum฀or฀installments),฀and฀at฀such฀time(s)฀
as฀the฀Committee฀shall฀determine.฀All฀dividends฀or฀dividend฀equivalents,฀which฀are฀not฀paid฀currently,฀may,฀at฀the฀Committee’s฀discretion,฀accrue฀interest฀
or฀be฀reinvested฀into฀additional฀shares฀of฀Common฀Stock฀subject฀to฀the฀same฀vesting฀or฀performance฀conditions฀as฀the฀underlying฀Award.
ARTICLE฀14฀—฀Deferral฀of฀Awards
At฀the฀discretion฀of฀the฀Committee,฀payment฀of฀any฀Award,฀dividend฀or฀dividend฀equivalent,฀or฀any฀portion฀thereof,฀may฀be฀deferred฀by฀a฀Participant฀until฀
such฀time฀as฀the฀Committee฀may฀establish฀in฀accordance฀with฀the฀applicable฀federal฀income฀tax฀requirements.฀All฀such฀deferrals฀shall฀be฀accomplished฀
by฀the฀delivery฀of฀a฀written,฀irrevocable฀election฀by฀the฀Participant฀prior฀to฀the฀time฀established฀by฀the฀Committee฀for฀such฀purpose,฀on฀a฀form฀provided฀by฀
the฀Company.฀Further,฀all฀deferrals฀shall฀be฀made฀in฀accordance฀with฀administrative฀guidelines฀established฀by฀the฀Committee฀to฀ensure฀that฀such฀deferrals฀
comply฀with฀all฀applicable฀requirements฀of฀the฀Code.฀Deferred฀payments฀shall฀be฀paid฀in฀a฀lump฀sum฀or฀installments,฀as฀determined฀by฀the฀Committee.฀
Deferred฀Awards฀may฀also฀be฀credited฀with฀interest,฀at฀such฀rates฀to฀be฀determined฀by฀the฀Committee,฀and,฀with฀respect฀to฀those฀deferred฀Awards฀denomi-
nated฀in฀the฀form฀of฀Common฀Stock,฀with฀dividends฀or฀dividend฀equivalents.
ARTICLE฀15฀—฀Change฀in฀Control
15.1฀฀Treatment฀of฀Non-Continued฀Awards฀฀Notwithstanding฀any฀provision฀contained฀in฀the฀Plan,฀including,฀but฀not฀limited฀to,฀Section฀4.4,฀
the฀provisions฀of฀this฀Article฀15฀shall฀control฀over฀any฀contrary฀provision.฀Except฀as฀otherwise฀set฀forth฀in฀Section฀15.6฀upon฀a฀Change฀in฀Control:฀i)฀the฀
terms฀of฀this฀Article฀15฀shall฀immediately฀become฀operative,฀without฀further฀action฀or฀consent฀by฀any฀person฀or฀entity฀unless฀otherwise฀expressly฀set฀forth฀
in฀an฀Award฀Notice;฀ii)฀all฀terms,฀conditions,฀restrictions฀and฀limitations฀in฀effect฀on฀any฀unexercised,฀unearned,฀unpaid฀and/or฀deferred฀Award฀in฀each฀
case,฀other฀than฀Performance฀Awards,฀or฀any฀other฀outstanding฀Award,฀shall฀immediately฀lapse฀as฀of฀the฀date฀of฀such฀event;฀iii)฀no฀other฀terms,฀conditions,฀
restrictions฀and/or฀limitations฀shall฀be฀imposed฀upon฀any฀Awards฀on฀or฀after฀such฀date,฀and฀in฀no฀circumstance฀shall฀an฀Award฀be฀forfeited฀on฀or฀after฀such฀
date;฀and฀iv)฀except฀in฀those฀instances฀where฀a฀prorated฀Award฀is฀required฀to฀be฀paid฀under฀this฀Article฀15,฀all฀unexercised,฀unvested,฀unearned฀and/or฀
unpaid฀Awards฀or฀any฀other฀outstanding฀Awards฀shall฀automatically฀become฀one฀hundred฀percent฀(100%)฀vested฀immediately.
15.2฀฀Dividends฀and฀Dividend฀Equivalents฀฀Except฀as฀otherwise฀set฀forth฀in฀Section฀15.6,฀upon฀a฀Change฀in฀Control,฀all฀unpaid฀dividends฀
and฀dividend฀equivalents฀and฀all฀interest฀accrued฀thereon,฀if฀any,฀shall฀be฀treated฀and฀paid฀under฀this฀Article฀15฀in฀the฀identical฀manner฀and฀time฀as฀the฀
Award฀under฀which฀such฀dividends฀or฀dividend฀equivalents฀have฀been฀credited.฀For฀example,฀if฀upon฀a฀Change฀in฀Control,฀an฀Award฀under฀this฀Article฀15฀
is฀to฀be฀paid฀in฀a฀prorated฀fashion,฀all฀unpaid฀dividends฀and฀dividend฀equivalents฀with฀respect฀to฀such฀Award฀shall฀be฀paid฀according฀to฀the฀same฀formula฀
used฀to฀determine฀the฀amount฀of฀such฀prorated฀Award.
15.3฀฀Valuation฀and฀Payment฀of฀Awards;฀Treatment฀of฀Performance฀Awards฀฀Except฀as฀otherwise฀set฀forth฀in฀Section฀15.6,฀
upon฀a฀Change฀in฀Control,฀any฀Participant,฀whether฀or฀not฀he฀or฀she฀is฀still฀employed฀by฀the฀Company,฀shall฀be฀paid,฀in฀a฀single฀lump-sum฀cash฀pay-
ment,฀as฀soon฀as฀practicable฀but฀in฀no฀event฀later฀than฀ninety฀(90)฀days฀after฀the฀Change฀in฀Control,฀in฀exchange฀for฀all฀of฀his฀or฀her฀Freestanding฀SARs,฀
Stock฀Options฀(including฀Incentive฀Stock฀Options),฀Other฀Stock-Based฀Awards,฀Restricted฀Stock฀Awards฀and฀Restricted฀Stock฀Unit฀Awards,฀and฀all฀other฀
outstanding฀Awards฀(including฀those฀granted฀by฀the฀Committee฀pursuant฀to฀its฀authority฀under฀Subsection฀4.2(o)฀hereof),฀other฀than฀Performance฀Awards,฀
a฀cash฀payment฀(or฀the฀delivery฀of฀shares฀of฀stock,฀other฀securities฀or฀a฀combination฀of฀cash,฀stock฀and฀securities฀equivalent฀to฀such฀cash฀payment)฀equal฀
to฀the฀difference,฀if฀any,฀between฀the฀Change฀in฀Control฀Price฀and฀the฀purchase฀price฀per฀share,฀if฀any,฀under฀the฀Award฀multiplied฀by฀the฀number฀of฀shares฀
of฀Common฀Stock฀subject฀to฀such฀Award;฀provided฀that฀if฀such฀product฀is฀zero฀or฀less,฀the฀Awards฀will฀be฀cancelled฀and฀terminated฀without฀payment฀there-
fore.฀For฀Performance฀Awards,฀regardless฀of฀Section฀15.6,฀A)฀if฀at฀the฀time฀of฀the฀Change฀in฀Control฀more฀than฀fifty฀percent฀(50%)฀of฀the฀applicable฀Perfor-
mance฀Cycle฀has฀elapsed,฀the฀Performance฀Award฀granted฀to฀the฀Participant฀shall฀vest฀and฀Awards฀shall฀be฀paid฀out฀in฀an฀amount฀equal฀to฀the฀greater฀of฀
i)฀the฀target฀performance฀set฀out฀in฀the฀Performance฀Formula฀or฀ii)฀actual฀performance฀to฀date,฀and฀B)฀if฀at฀the฀time฀of฀the฀Change฀in฀Control฀fifty฀percent฀
(50%)฀or฀less฀of฀the฀applicable฀Performance฀Cycle฀has฀elapsed,฀the฀Performance฀Award฀granted฀to฀the฀Participant฀shall฀vest฀and฀Awards฀shall฀be฀paid฀in฀an฀
amount฀equal฀to฀fifty฀percent฀(50%)฀of฀target฀performance฀set฀out฀in฀the฀Performance฀Formula฀without฀consideration฀of฀actual฀performance฀to฀date.