Kodak 2004 Annual Report Download - page 175

Exhibits
66
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
b)฀Non-Qualified฀Stock฀Options.฀The฀Committee฀shall฀have฀the฀discretionary฀authority฀to฀grant฀Awards฀of฀Non-Qualified฀Stock฀Options฀or฀amend฀
outstanding฀Awards฀of฀Non-Qualified฀Stock฀Options฀to฀provide฀that฀they฀be฀transferable,฀subject฀to฀such฀terms฀and฀conditions฀as฀the฀Committee฀shall฀
establish.฀In฀addition฀to฀any฀such฀terms฀and฀conditions,฀the฀following฀terms฀and฀conditions฀shall฀apply฀to฀all฀transfers฀of฀Non-Qualified฀Stock฀Options:
฀ ฀i)฀Permissible฀Transferors.฀The฀only฀Participants฀permitted฀to฀transfer฀their฀Non-Qualified฀Stock฀Options฀are฀those฀Participants฀who฀are,฀on฀the฀date฀of฀
the฀transfer฀of฀their฀Non-Qualified฀Stock฀Option,฀either฀in฀wage฀grade฀56฀or฀above,฀or฀the฀equivalent฀thereof,฀a฀corporate฀officer฀of฀Kodak฀or฀a฀Director.
฀ ฀ii)฀Permissible฀Transferees.฀Transfers฀shall฀only฀be฀permitted฀to:฀i)฀the฀Participant’s฀“Immediate฀Family฀Members,”฀as฀that฀term฀is฀defined฀in฀Subsec-
tion฀(b)(ix)฀below;฀ii)฀a฀trust฀or฀trusts฀for฀the฀exclusive฀benefit฀of฀such฀Immediate฀Family฀Members;฀or฀iii)฀a฀family฀partnership฀or฀family฀limited฀partner-
ship฀in฀which฀each฀partner฀is,฀at฀the฀time฀of฀transfer฀and฀all฀times฀subsequent฀thereto,฀either฀an฀Immediate฀Family฀Member฀or฀a฀trust฀for฀the฀exclusive฀
benefit฀of฀one฀or฀more฀Immediate฀Family฀Members.
฀ ฀iii)฀No฀Consideration.฀All฀transfers฀shall฀be฀made฀for฀no฀consideration.
฀ ฀iv)฀Subsequent฀Transfers.฀Once฀a฀Participant฀transfers฀a฀Non-Qualified฀Stock฀Option,฀any฀subsequent฀transfer฀of฀such฀transferred฀option฀shall,฀not-
withstanding฀Section฀16.1(b)(i)฀to฀the฀contrary,฀be฀permitted฀provided,฀however,฀such฀subsequent฀transfer฀complies฀with฀all฀of฀the฀terms฀and฀conditions฀
of฀this฀Section฀16.1(b),฀with฀the฀exception฀of฀Section฀16.1(b)(i).
฀ ฀v)฀Transfer฀Agent.฀In฀order฀for฀a฀transfer฀to฀be฀effective,฀the฀Committee’s฀designated฀transfer฀agent฀must฀be฀used฀to฀effectuate฀the฀transfer.฀The฀costs฀
of฀such฀transfer฀agent฀shall฀be฀borne฀solely฀by฀the฀transferor.
฀ ฀vi)฀Withholding.฀In฀order฀for฀a฀transfer฀to฀be฀effective,฀a฀Participant฀must฀agree฀in฀writing฀prior฀to฀the฀transfer฀on฀a฀form฀provided฀by฀Kodak฀to฀pay฀any฀
and฀all฀payroll฀and฀withholding฀taxes฀due฀upon฀exercise฀of฀the฀transferred฀option.฀In฀addition,฀prior฀to฀the฀exercise฀of฀a฀transferred฀option฀by฀a฀trans-
feree,฀arrangements฀must฀be฀made฀by฀the฀Participant฀with฀Kodak฀for฀the฀payment฀of฀all฀payroll฀and฀withholding฀taxes.
฀ ฀vii)฀Terms฀and฀Conditions฀of฀Transferred฀Option.฀Upon฀transfer,฀a฀Non-Qualified฀Stock฀Option฀continues฀to฀be฀governed฀by฀and฀subject฀to฀the฀terms฀
and฀conditions฀of฀the฀Plan฀and฀the฀Stock฀Option’s฀applicable฀administrative฀guide฀and฀Award฀Notice.฀A฀transferee฀of฀a฀Non-Qualified฀Stock฀Option฀is฀
entitled฀to฀the฀same฀rights฀as฀the฀Participant฀to฀whom฀such฀Non-Qualified฀Stock฀Options฀were฀awarded,฀as฀if฀no฀transfer฀had฀taken฀place.฀Accordingly,฀
the฀rights฀of฀the฀transferee฀are฀subject฀to฀the฀terms฀and฀conditions฀of฀the฀original฀grant฀to฀the฀Participant,฀including฀provisions฀relating฀to฀expiration฀date,฀
exercisability,฀option฀price฀and฀forfeiture.
฀ ฀viii)฀Notice฀to฀Transferees.฀Kodak฀shall฀be฀under฀no฀obligation฀to฀provide฀a฀transferee฀with฀any฀notice฀regarding฀the฀transferred฀options฀held฀by฀the฀
transferee฀upon฀forfeiture฀or฀any฀other฀circumstance.
฀ ฀ix)฀Immediate฀Family฀Member.฀For฀purposes฀of฀this฀Section฀16.1,฀the฀term฀“Immediate฀Family฀Member”฀shall฀mean฀the฀Participant฀and฀his฀or฀her฀
spouse,฀children฀or฀grandchildren,฀whether฀natural,฀step฀or฀adopted฀children฀or฀grandchildren.
16.2฀฀Withholding฀Taxes฀฀In฀connection฀with฀any฀payments฀to฀a฀Participant฀or฀other฀event฀under฀the฀Plan฀that฀gives฀rise฀to฀a฀federal,฀state,฀local฀
or฀other฀tax฀withholding฀obligation฀relating฀to฀the฀Plan฀(including,฀without฀limitation,฀FICA฀tax),฀the฀Company฀shall฀be฀entitled฀to฀deduct฀from฀any฀payment฀
under฀the฀Plan,฀regardless฀of฀the฀form฀of฀such฀payment,฀the฀amount฀of฀all฀applicable฀income฀and฀employment฀taxes฀required฀by฀law฀to฀be฀withheld฀(or฀
cause฀to฀be฀withheld)฀with฀respect฀to฀such฀payment฀or฀may฀require฀the฀Participant฀to฀pay฀to฀the฀Company฀such฀tax฀prior฀to฀and฀as฀a฀condition฀of฀the฀mak-
ing฀of฀such฀payment.฀In฀accordance฀with฀any฀applicable฀administrative฀guidelines฀it฀establishes,฀the฀Committee฀may฀allow฀a฀Participant฀to฀pay฀the฀amount฀
of฀taxes฀required฀to฀be฀withheld฀from฀an฀Award฀by฀withholding฀from฀any฀payment฀of฀Common฀Stock฀due฀as฀a฀result฀of฀such฀Award฀at฀minimum฀statutory฀
tax฀rates,฀or฀by฀permitting฀the฀Participant฀to฀tender฀(actually฀or฀through฀attestation)฀to฀the฀Company,฀shares฀of฀Common฀Stock฀having฀a฀Fair฀Market฀Value,฀
as฀determined฀by฀the฀Committee,฀equal฀to฀the฀amount฀of฀such฀required฀withholding฀taxes฀up฀to฀the฀maximum฀marginal฀tax฀rate.
16.3฀฀Amendments฀to฀Awards฀฀The฀Committee฀may฀at฀any฀time฀unilaterally฀amend฀any฀unexercised,฀unearned฀or฀unpaid฀Award,฀including,฀but฀
not฀by฀way฀of฀limitation,฀Awards฀earned฀but฀not฀yet฀paid,฀to฀the฀extent฀it฀deems฀appropriate;฀provided,฀however,฀that฀any฀such฀amendment฀which,฀in฀the฀
opinion฀of฀the฀Committee,฀materially฀impairs฀the฀rights฀or฀materially฀increases฀the฀obligation฀of฀a฀Participant฀under฀an฀outstanding฀Award฀shall฀be฀made฀
only฀with฀the฀consent฀of฀the฀Participant฀(or,฀upon฀the฀Participant’s฀death,฀the฀person฀having฀the฀right฀to฀exercise฀the฀Award),฀except฀that฀amendments฀
to฀implement฀administrative฀changes฀to฀the฀Plan฀that฀are฀deemed฀necessary฀or฀advisable฀by฀the฀Committee฀for฀compliance฀with฀laws฀shall฀not฀require฀
Participant฀consent.฀By฀means฀of฀illustration฀but฀not฀limitation,฀the฀Committee฀may฀restrict฀the฀method฀of฀exercise฀of฀an฀Award฀to฀avoid฀securities฀laws฀or฀
exchange฀control฀filings,฀laws฀or฀regulations.
16.4฀฀Regulatory฀Approvals฀and฀Listings฀฀Notwithstanding฀anything฀contained฀in฀this฀Plan฀to฀the฀contrary,฀the฀Company฀shall฀have฀no฀
obligation฀to฀issue฀or฀deliver฀certificates฀of฀Common฀Stock฀evidencing฀any฀Award฀resulting฀in฀the฀payment฀of฀Common฀Stock฀prior฀to:฀a)฀the฀obtaining฀of฀
any฀approval฀from฀any฀governmental฀agency฀which฀the฀Company฀shall,฀in฀its฀sole฀discretion,฀determine฀to฀be฀necessary฀or฀advisable;฀b)฀the฀admission฀of฀
such฀shares฀to฀listing฀on฀the฀stock฀exchange฀on฀which฀the฀Common฀Stock฀may฀be฀listed;฀and฀c)฀the฀completion฀of฀any฀registration฀or฀other฀qualification฀of฀
said฀shares฀under฀any฀state฀or฀federal฀law฀or฀ruling฀of฀any฀governmental฀body฀which฀the฀Company฀shall,฀in฀its฀sole฀discretion,฀determine฀to฀be฀necessary฀or฀
advisable.