Kodak 2004 Annual Report Download - page 174

Exhibits
65
E A S T M A N฀ K OD A K ฀ C O M PA N Y
15.4฀฀Deferred฀Awards฀฀Upon฀a฀Change฀in฀Control,฀all฀Awards฀deferred฀by฀a฀Participant฀under฀Article฀14฀hereof,฀but฀for฀which฀he฀or฀she฀has฀not฀
received฀payment฀as฀of฀such฀date,฀shall฀be฀paid฀in฀a฀single฀lump-sum฀cash฀payment฀as฀soon฀as฀practicable,฀but฀in฀no฀event฀later฀than฀ninety฀(90)฀days฀
after฀the฀Change฀in฀Control.฀For฀purposes฀of฀making฀such฀payment,฀the฀value฀of฀all฀Awards฀that฀are฀equity-based฀shall฀be฀determined฀by฀the฀Change฀in฀
Control฀Price.
15.5฀฀Miscellaneous฀฀Upon฀a฀Change฀in฀Control,฀the฀provisions฀of฀Sections฀12.2,฀12.3,฀12.4฀and฀16.3฀hereof฀shall฀become฀null฀and฀void฀and฀of฀no฀
further฀force฀and฀effect฀and฀no฀action,฀including,฀but฀not฀by฀way฀of฀limitation,฀the฀amendment,฀suspension฀or฀termination฀of฀the฀Plan,฀shall฀be฀taken฀which฀
would฀affect฀the฀rights฀of฀any฀Participant฀or฀the฀operation฀of฀the฀Plan฀with฀respect฀to฀any฀Award฀to฀which฀the฀Participant฀may฀have฀become฀entitled฀hereun-
der฀on฀or฀prior฀to฀the฀date฀of฀such฀action฀or฀as฀a฀result฀of฀such฀Change฀in฀Control.
15.6฀฀Continuation฀of฀Awards฀฀Unless฀otherwise฀determined฀by฀the฀Committee,฀upon฀a฀Change฀in฀Control฀pursuant฀to฀which฀the฀Surviving฀Com-
pany฀or฀Parent฀Company,฀as฀applicable,฀assumes฀(or฀substitutes)฀all฀outstanding฀Awards฀(other฀than฀Performance฀Awards)฀pursuant฀to฀the฀terms฀hereof,฀
then฀the฀provisions฀of฀Sections฀15.1฀through฀15.3฀shall฀not฀apply฀to฀any฀Award.฀The฀Committee฀shall฀determine฀in฀its฀sole฀discretion฀whether฀an฀Award฀shall฀
be฀considered฀“assumed”฀or฀“substituted.”฀Without฀limiting฀the฀foregoing,฀for฀the฀purposes฀of฀this฀Article,฀a฀Stock฀Option฀or฀SAR฀shall฀be฀considered฀“as-
sumed”฀or฀“substituted”฀if฀in฀the฀reasonable฀determination฀of฀the฀Committee,฀i)฀the฀aggregate฀intrinsic฀value฀(the฀difference฀between฀the฀then฀Fair฀Market฀
Value฀and฀the฀exercise฀price฀per฀share฀of฀Common฀Stock฀multiplied฀by฀the฀number฀of฀shares฀of฀Common฀Stock฀subject฀to฀such฀award)฀of฀the฀assumed฀(or฀
substituted)฀Award฀immediately฀after฀the฀Change฀in฀Control฀is฀substantially฀the฀same฀as฀the฀aggregate฀intrinsic฀value฀of฀such฀Award฀immediately฀before฀
such฀transaction;฀ii)฀the฀ratio฀of฀the฀exercise฀price฀per฀assumed฀(or฀substituted)฀Award฀to฀the฀fair฀market฀value฀per฀share฀of฀successor฀corporation฀stock฀
immediately฀after฀the฀Change฀in฀Control฀is฀substantially฀the฀same฀as฀such฀ratio฀for฀such฀Award฀immediately฀before฀such฀transaction;฀iii)฀the฀Award฀is฀exer-
cisable฀for฀the฀consideration฀approved฀by฀the฀Committee฀(including฀shares฀of฀stock,฀other฀securities฀or฀property฀or฀a฀combination฀of฀cash,฀stock,฀securities฀
and฀other฀property);฀and฀iv)฀the฀other฀terms฀and฀conditions฀of฀the฀Stock฀Options฀or฀SARs฀remain฀substantially฀the฀same.฀For฀the฀purposes฀of฀this฀Article,฀
Restricted฀Stock฀Awards฀and฀Restricted฀Stock฀Unit฀Awards฀shall฀be฀considered฀an฀assumed฀(or฀substituted)฀Award฀if฀in฀the฀reasonable฀determination฀of฀the฀
Committee,฀the฀value฀and฀terms฀and฀conditions฀of฀the฀assumed฀(or฀substituted)฀Award฀immediately฀after฀the฀Change฀in฀Control฀are฀substantially฀the฀same฀
as฀the฀value฀and฀terms฀and฀conditions฀of฀such฀Award฀immediately฀before฀such฀transaction.
15.7฀฀Termination฀of฀Employment฀Following฀a฀Change฀in฀Control฀฀a)฀Eligibility.฀Notwithstanding฀any฀provision฀contained฀in฀the฀
Plan,฀including,฀but฀not฀limited฀to,฀Sections฀4.4฀and฀12.2,฀the฀provisions฀of฀this฀Section฀15.7฀shall฀control฀over฀any฀contrary฀provision.฀All฀Participants฀shall฀
be฀eligible฀for฀the฀treatment฀afforded฀by฀this฀Section฀15.7฀if฀their฀employment฀by฀the฀Company฀terminates฀within฀two฀years฀following฀a฀Change฀in฀Control,฀
unless฀the฀termination฀is฀due฀to฀i)฀death;฀ii)฀Disability;฀iii)฀one฀of฀the฀following฀reasons:฀A)฀the฀willful฀and฀continued฀failure฀by฀the฀Participant฀to฀substantially฀
perform฀his฀or฀her฀duties฀with฀his฀or฀her฀employer฀after฀a฀written฀warning฀identifying฀the฀lack฀of฀substantial฀performance฀is฀delivered฀to฀the฀Participant฀by฀
his฀or฀her฀employer฀to฀specifically฀identify฀the฀manner฀in฀which฀the฀employer฀believes฀that฀Participant฀has฀not฀substantially฀performed฀his฀or฀her฀duties,฀or฀
B)฀the฀willful฀engaging฀by฀the฀Participant฀in฀illegal฀conduct฀which฀is฀materially฀and฀demonstrably฀injurious฀to฀Kodak฀or฀a฀Subsidiary;฀iv)฀resignation฀other฀
than฀A)฀a฀resignation฀from฀a฀declined฀reassignment฀to฀a฀job฀that฀is฀not฀reasonably฀equivalent฀in฀responsibility฀or฀compensation฀(as฀would฀be฀determined฀
under฀Kodak’s฀Termination฀Allowance฀Plan)฀or฀that฀is฀not฀in฀the฀same฀geographic฀area฀(as฀would฀be฀determined฀under฀Kodak’s฀Termination฀Allowance฀
Plan),฀or฀B)฀a฀resignation฀within฀30฀days฀following฀a฀reduction฀in฀base฀pay;฀or฀v)฀Retirement.฀
b)฀If฀a฀Participant฀is฀eligible฀for฀treatment฀under฀this฀Article฀15.7,฀i)฀all฀of฀the฀terms,฀conditions,฀restrictions฀and฀limitations฀in฀effect฀on฀any฀of฀his฀or฀her฀
unexercised,฀unearned,฀unpaid฀and/or฀deferred฀Awards฀shall฀immediately฀lapse฀as฀of฀the฀date฀of฀his฀or฀her฀termination฀of฀employment;฀ii)฀no฀other฀terms,฀
conditions,฀restrictions฀and/or฀limitations฀shall฀be฀imposed฀upon฀any฀of฀his฀or฀her฀Awards฀on฀or฀after฀such฀date,฀and฀in฀no฀event฀shall฀any฀of฀his฀or฀her฀
Awards฀be฀forfeited฀on฀or฀after฀such฀date;฀and฀iii)฀except฀in฀those฀instances฀where฀a฀prorated฀Award฀is฀required฀to฀be฀paid฀under฀this฀Article฀15,฀all฀of฀his฀or฀
her฀unexercised,฀unvested,฀unearned฀and/or฀unpaid฀Awards฀shall฀automatically฀become฀one฀hundred฀percent฀(100%)฀vested฀immediately฀upon฀his฀or฀her฀
termination฀of฀employment.
c)฀If฀a฀Participant฀is฀eligible฀for฀treatment฀under฀this฀Section฀15.7,฀all฀of฀his฀or฀her฀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.
15.8฀฀Legal฀Fees฀฀Kodak฀shall฀pay฀all฀reasonable฀legal฀fees฀and฀related฀expenses฀incurred฀by฀a฀Participant฀in฀seeking฀to฀obtain฀or฀enforce฀any฀pay-
ment,฀benefit฀or฀right฀he฀or฀she฀reasonably฀may฀be฀entitled฀to฀under฀the฀Plan฀in฀connection฀with฀a฀Change฀in฀Control;฀provided,฀however,฀the฀Participant฀
shall฀be฀required฀to฀repay฀any฀such฀amounts฀to฀Kodak฀to฀the฀extent฀a฀court฀of฀competent฀jurisdiction฀issues฀a฀final฀and฀non-appealable฀order฀setting฀forth฀
the฀determination฀that฀the฀position฀taken฀by฀the฀Participant฀was฀frivolous฀or฀advanced฀in฀bad฀faith.
ARTICLE฀16฀—฀Miscellaneous
16.1฀฀Nonassignability฀฀a)฀In฀General.฀Except฀as฀otherwise฀determined฀by฀the฀Committee฀or฀as฀otherwise฀provided฀in฀Subsection฀(b)฀below,฀no฀
Awards฀or฀any฀other฀payment฀under฀the฀Plan฀shall฀be฀subject฀to฀any฀manner฀to฀alienation,฀anticipation,฀sale,฀transfer฀(except฀by฀will,฀the฀laws฀of฀descent฀
and฀distribution,฀or฀domestic฀relations฀order),฀assignment,฀pledge฀or฀encumbrance,฀nor฀shall฀any฀Award฀be฀payable฀to฀or฀exercisable฀by฀anyone฀other฀than฀
the฀Participant฀to฀whom฀it฀was฀granted.