Kodak 2004 Annual Report Download - page 154

Compensation
45
E A S T M A N฀ K OD A K ฀ C O M PA N Y
The฀following฀table฀shows฀the฀years฀of฀service฀credited฀as฀of฀December฀31,฀2004฀to฀Mr.฀Carp.฀This฀table฀also฀shows฀the฀amount฀of฀Mr.฀Carp’s฀APC฀at฀the฀
end฀of฀2004.฀Messrs.฀Perez,฀Brust,฀Langley฀and฀Masson,฀who฀participated฀in฀the฀cash฀balance฀feature฀in฀2004,฀are฀not฀listed.
Retirement฀Plan฀Table
฀ Name฀ ฀Years฀of฀Service฀ Average฀Participating฀Compensation
฀ D.฀A.฀Carp฀ 34฀ $฀2,648,244฀
Cash฀Balance฀Feature
Under฀the฀cash฀balance฀feature฀of฀the฀Company’s฀pension฀plan,฀the฀Company฀establishes฀an฀account฀for฀each฀participating฀employee.฀Every฀month฀the฀em-
ployee฀works,฀the฀Company฀credits฀the฀employee’s฀account฀with฀an฀amount฀equal฀to฀4%฀of฀the฀employee’s฀monthly฀pay.฀In฀addition,฀the฀ongoing฀balance฀
of฀the฀employee’s฀account฀earns฀interest฀at฀the฀30-year฀Treasury฀bond฀rate.฀To฀the฀extent฀federal฀laws฀place฀limitations฀on฀the฀amount฀of฀pay฀that฀may฀
be฀taken฀into฀account฀under฀the฀plan,฀4%฀of฀the฀excess฀pay฀is฀credited฀to฀an฀account฀established฀for฀the฀employee฀in฀an฀unfunded฀supplementary฀plan.฀
If฀a฀participating฀employee฀leaves฀the฀Company฀and฀is฀vested฀(five฀or฀more฀years฀of฀service),฀the฀employee’s฀account฀balance฀will฀be฀distributed฀to฀the฀
employee฀in฀the฀form฀of฀a฀lump฀sum฀or฀monthly฀annuity.฀Participating฀employees฀whose฀account฀balance฀exceeds฀$5,000฀also฀have฀the฀choice฀of฀leaving฀
their฀account฀balances฀in฀the฀plan฀to฀continue฀to฀earn฀interest.
Supplemental฀Retirement฀Arrangements
Robert฀H.฀Brust
In฀addition฀to฀the฀benefits฀described฀above,฀Mr.฀Brust฀is฀covered฀under฀a฀supplemental฀unfunded฀pension฀arrangement฀established฀under฀his฀amended฀offer฀
letter.฀This฀arrangement฀provides฀Mr.฀Brust฀a฀single฀life฀annuity฀of฀$12,500฀per฀month฀upon฀his฀retirement฀if฀he฀remains฀employed฀with฀the฀Company฀for฀at฀
least฀five฀years.฀If฀Mr.฀Brust฀remains฀employed฀until฀January฀3,฀2006,฀he฀will,฀in฀lieu฀of฀receiving฀the฀$12,500฀per฀month฀annuity,฀be฀treated฀as฀if฀he฀is฀eli-
gible฀for฀the฀non-cash฀balance฀portion฀of฀the฀Company’s฀pension฀plan.฀For฀this฀purpose,฀Mr.฀Brust฀will฀be฀credited฀with฀14฀years฀of฀extra฀service฀in฀addition฀
to฀his฀actual฀service.฀If฀Mr.฀Brust฀remains฀employed฀until฀January฀3,฀2007,฀he฀will฀be฀credited฀with฀18฀years฀of฀extra฀service฀in฀addition฀to฀his฀actual฀service฀
for฀purposes฀of฀the฀non-cash฀balance฀portion฀of฀the฀plan.฀In฀any฀case,฀Mr.฀Brust’s฀supplemental฀benefit฀will฀be฀offset฀by฀his฀cash฀balance฀benefit.
Antonio฀M.฀Perez฀
Mr.฀Perez฀is฀eligible฀for฀a฀supplemental฀unfunded฀pension฀benefit฀under฀the฀terms฀of฀his฀March฀3,฀2003฀offer฀letter.฀Under฀this฀arrangement,฀if฀Mr.฀Perez฀
remains฀employed฀for฀three฀years,฀he฀will฀be฀treated฀as฀if฀eligible฀for฀the฀non-cash฀balance฀portion฀of฀the฀Company’s฀pension฀plan.฀For฀this฀purpose,฀he฀will฀
be฀considered฀to฀have฀completed฀eight฀years฀of฀service฀with฀the฀Company฀and฀attained฀age฀65.฀If,฀instead,฀Mr.฀Perez฀remains฀employed฀for฀nine฀years,฀he฀
will฀be฀considered฀to฀have฀completed฀25฀years฀of฀service฀with฀the฀Company.฀Mr.฀Perez’s฀supplemental฀pension฀benefit฀will฀be฀offset฀by฀his฀cash฀balance฀
benefit.฀
James฀T.฀Langley
In฀addition฀to฀the฀benefit฀Mr.฀Langley฀may฀be฀eligible฀for฀under฀the฀cash฀balance฀feature,฀he฀is฀also฀eligible฀for฀a฀supplemental฀unfunded฀retirement฀benefit฀
under฀the฀terms฀of฀his฀August฀12,฀2003฀offer฀letter.฀Under฀this฀arrangement,฀the฀Company฀established฀a฀phantom฀cash฀balance฀account฀on฀behalf฀of฀
Mr.฀Langley.฀For฀each฀full฀year฀of฀service฀he฀remains฀employed฀(up฀to฀a฀maximum฀of฀six฀years),฀the฀Company฀will฀credit฀the฀account฀with฀$100,000.฀The฀
maximum฀the฀Company฀is฀obligated฀to฀credit฀to฀the฀account฀is฀$600,000.฀Any฀amounts฀credited฀to฀the฀account฀earn฀interest฀at฀the฀same฀rate฀that฀amounts฀
accrue฀interest฀under฀the฀cash฀balance฀feature.฀In฀order฀to฀receive฀any฀of฀the฀amounts฀credited฀to฀this฀account,฀Mr.฀Langley฀must฀remain฀continuously฀
employed฀for฀at฀least฀three฀years฀unless฀his฀employment฀terminates฀for฀certain฀specified฀reasons.