Kodak 2004 Annual Report Download - page 185

Exhibits
76
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
way฀of฀continued฀service฀with฀the฀Company);฀except฀that฀compensation฀received฀by฀an฀immediate฀family฀member฀of฀the฀director฀for฀services฀as฀an฀
non-executive฀employee฀of฀the฀Company฀need฀not฀be฀considered฀in฀determining฀independence฀under฀this฀test;฀or
฀ •฀฀the฀director฀was฀affiliated฀with฀or฀employed฀by,฀or฀an฀immediate฀family฀member฀of฀the฀director฀was฀affiliated฀with฀or฀employed฀in฀a฀professional฀
capacity฀by,฀a฀present฀or฀former฀internal฀or฀external฀auditor฀of฀the฀Company;฀or
฀฀ •฀฀the฀director,฀or฀an฀immediate฀family฀member฀of฀the฀director,฀was฀employed฀as฀an฀executive฀officer฀of฀another฀company฀where฀any฀of฀the฀Company’s฀
present฀executives฀serve฀on฀that฀company’s฀compensation฀committee;฀or
฀฀ •฀฀the฀director฀was฀employed฀by฀another฀company฀(other฀than฀a฀charitable฀organization),฀or฀an฀immediate฀family฀member฀of฀the฀director฀was฀employed฀
as฀an฀executive฀officer฀of฀such฀company,฀that฀makes฀payments฀to,฀or฀receives฀payments฀from,฀the฀Company฀for฀property฀or฀services฀in฀an฀amount฀
which,฀in฀any฀single฀fiscal฀year,฀exceeds฀the฀greater฀of:฀a)฀$1฀million฀or฀b)฀2%฀of฀such฀other฀company’s฀consolidated฀gross฀revenues;฀provided,฀how-
ever,฀that฀in฀applying฀this฀test,฀both฀the฀payments฀and฀the฀consolidated฀gross฀revenues฀to฀be฀measured฀will฀be฀those฀reported฀in฀the฀last฀completed฀
fiscal฀year;฀and฀provided,฀further,฀that฀this฀test฀applies฀solely฀to฀the฀financial฀relationship฀between฀the฀Company฀and฀the฀director’s฀(or฀immediate฀
family฀member’s)฀current฀employer—the฀former฀employment฀of฀the฀director฀or฀immediate฀family฀member฀need฀not฀be฀considered.
฀2)฀ The฀following฀relationships฀will฀not฀be฀considered฀to฀be฀material฀relationships฀that฀would฀impair฀a฀director’s฀independence:
฀ •฀฀Commercial฀Relationship:฀if฀a฀director฀of฀the฀Company฀is฀an฀executive฀officer฀or฀an฀employee,฀or฀whose฀immediate฀family฀member฀is฀an฀executive฀
officer฀of฀another฀company฀that฀makes฀payments฀to,฀or฀receives฀payments฀from,฀the฀Company฀for฀property฀or฀services฀in฀an฀amount฀which,฀in฀any฀
single฀fiscal฀year,฀does฀not฀exceed฀the฀greater฀of฀a)฀$1,000,000฀or฀b)฀2%฀of฀such฀other฀company’s฀consolidated฀gross฀revenues;
฀฀ •฀฀Indebtedness฀Relationship:฀if฀a฀director฀of฀the฀Company฀is฀an฀executive฀officer฀of฀another฀company฀which฀is฀indebted฀to฀the฀Company,฀or฀to฀
which฀the฀Company฀is฀indebted,฀and฀the฀total฀amount฀of฀either฀company’s฀indebtedness฀is฀less฀than฀2%฀of฀the฀consolidated฀assets฀of฀the฀company฀
wherein฀the฀director฀serves฀as฀an฀executive฀officer;
฀฀ •฀฀Equity฀Relationship:฀if฀the฀director฀is฀an฀executive฀officer฀of฀another฀company฀in฀which฀the฀Company฀owns฀a฀common฀stock฀interest,฀and฀the฀
amount฀of฀the฀common฀stock฀interest฀is฀less฀than฀5%฀of฀the฀total฀shareholders’฀equity฀of฀the฀company฀where฀the฀director฀serves฀as฀an฀executive฀
officer;฀or
฀฀ •฀฀Charitable฀Relationship:฀if฀a฀director฀of฀the฀Company,฀or฀the฀spouse฀of฀a฀director฀of฀the฀Company,฀serves฀as฀a฀director,฀officer฀or฀trustee฀of฀a฀
charitable฀organization,฀and฀the฀Company’s฀contributions฀to฀the฀organization฀in฀any฀single฀fiscal฀year฀are฀less฀than฀the฀greater฀of:฀a)฀$1,000,000฀or฀
b)฀2%฀of฀that฀organization’s฀gross฀revenues.
฀3)฀ ฀For฀relationships฀not฀covered฀by฀Section฀2฀above,฀or฀for฀relationships฀that฀are฀covered,฀but฀as฀to฀which฀the฀Board฀believes฀a฀director฀may฀nevertheless฀
be฀independent,฀the฀determination฀of฀whether฀the฀relationship฀is฀material฀or฀not,฀and฀therefore฀whether฀the฀director฀would฀be฀independent,฀will฀be฀
made฀by฀the฀directors฀who฀satisfy฀the฀independence฀guidelines฀set฀forth฀in฀Sections฀1฀and฀2฀above.฀The฀Company฀will฀explain฀in฀its฀Proxy฀Statement฀
any฀Board฀determination฀that฀a฀relationship฀was฀immaterial฀in฀the฀event฀that฀it฀did฀not฀meet฀the฀categorical฀standards฀of฀immateriality฀set฀forth฀in฀
Section฀2฀above.
4)฀ ฀For฀purposes฀of฀these฀standards,฀an฀“immediate฀family฀member”฀includes฀a฀person’s฀spouse,฀parents,฀children,฀siblings,฀mothers฀and฀fathers-in-law,฀
sons฀and฀daughters-in-law,฀brothers฀and฀sisters-in-law,฀and฀anyone฀(other฀than฀domestic฀employees)฀who฀shares฀such฀person’s฀home;฀except฀that฀
when฀applying฀the฀independence฀tests฀described฀above,฀the฀Company฀need฀not฀consider฀individuals฀who฀are฀no฀longer฀immediate฀family฀members฀as฀
a฀result฀of฀legal฀separation฀or฀divorce,฀or฀those฀who฀have฀died฀or฀have฀become฀incapacitated.
APPENDIX฀B:฀DIRECTOR฀SELECTION฀PROCESS
The฀entire฀Board฀of฀Directors฀is฀responsible฀for฀nominating฀members฀for฀election฀to฀the฀Board฀and฀for฀filling฀vacancies฀on฀the฀Board฀that฀may฀occur฀be-
tween฀annual฀meetings฀of฀the฀shareholders.฀The฀Corporate฀Responsibility฀and฀Governance฀Committee฀is฀responsible฀for฀identifying,฀screening฀and฀recom-
mending฀candidates฀to฀the฀Board฀for฀Board฀membership.฀The฀Chair฀of฀the฀Corporate฀Responsibility฀and฀Governance฀Committee฀will฀oversee฀this฀process.
The฀Corporate฀Responsibility฀and฀Governance฀Committee฀will฀generally฀use฀the฀following฀process฀when฀recruiting,฀evaluating฀and฀selecting฀director฀
candidates.฀The฀various฀steps฀outlined฀in฀the฀process฀may฀be฀performed฀simultaneously฀and฀in฀an฀order฀other฀than฀that฀presented฀below.฀Throughout฀the฀
process,฀the฀Committee฀will฀keep฀the฀full฀Board฀informed฀of฀its฀progress.
The฀Company฀is฀committed฀to฀maintaining฀its฀tradition฀of฀inclusion฀and฀diversity฀within฀the฀Board,฀and฀confirms฀that฀its฀policy฀of฀non-discrimination฀based฀
on฀sex,฀race,฀religion฀or฀national฀origin฀applies฀in฀the฀selection฀of฀Directors.
1)฀ ฀The฀Committee฀will฀assess฀the฀Board’s฀current฀and฀projected฀strengths฀and฀needs฀by,฀among฀other฀things,฀reviewing฀the฀Board’s฀current฀profile,฀its฀
Director฀Qualification฀Standards฀and฀the฀Company’s฀current฀and฀future฀needs.
2)฀ Using฀the฀results฀of฀this฀assessment,฀the฀Committee฀will฀prepare฀a฀target฀candidate฀profile.
3)฀ ฀The฀Committee฀will฀develop฀an฀initial฀list฀of฀director฀candidates฀by฀retaining฀a฀search฀firm,฀utilizing฀the฀personal฀network฀of฀the฀Board฀and฀senior฀
management฀of฀the฀Company,฀and฀considering฀any฀nominees฀previously฀recommended.
฀฀ ฀