Kodak 2004 Annual Report Download - page 189

Exhibits
80
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
I.฀STATEMENT฀OF฀PRINCIPLES
The฀Audit฀Committee฀is฀responsible฀for฀the฀appointment,฀compensation฀and฀oversight฀of฀the฀work฀of฀the฀independent฀auditor.฀As฀part฀of฀this฀responsibility,฀
the฀Audit฀Committee฀is฀required฀to฀pre-approve฀the฀audit฀and฀non-audit฀services฀performed฀by฀the฀independent฀auditor฀in฀order฀to฀assure฀that฀they฀do฀not฀
impair฀the฀auditor’s฀independence฀from฀the฀Company.฀Accordingly,฀the฀Audit฀Committee฀has฀adopted฀this฀Pre-Approval฀Policy฀which฀sets฀forth฀the฀proce-
dures฀and฀the฀conditions฀pursuant฀to฀which฀services฀proposed฀to฀be฀performed฀by฀the฀independent฀auditor฀may฀be฀pre-approved.฀
This฀Pre-Approval฀Policy฀establishes฀two฀different฀approaches฀to฀pre-approving฀services:฀proposed฀services฀either฀may฀be฀pre-approved฀without฀specific฀
consideration฀by฀the฀Audit฀Committee฀(“general฀pre-approval”)฀or฀require฀the฀specific฀pre-approval฀of฀the฀Audit฀Committee฀(“specific฀pre-approval”).฀The฀
Audit฀Committee฀believes฀that฀the฀combination฀of฀these฀two฀approaches฀in฀this฀policy฀will฀result฀in฀an฀effective฀and฀efficient฀procedure฀to฀pre-approve฀
services฀performed฀by฀the฀independent฀auditor.฀As฀set฀forth฀in฀this฀policy,฀unless฀a฀type฀of฀service฀has฀received฀general฀pre-approval,฀it฀will฀require฀specific฀
pre-approval฀by฀the฀Audit฀Committee.฀Any฀proposed฀services฀exceeding฀pre-approved฀budgeted฀amounts฀will฀also฀require฀specific฀pre-approval฀by฀the฀
Audit฀Committee.฀For฀both฀types฀of฀pre-approval,฀the฀Audit฀Committee฀shall฀consider฀whether฀such฀services฀are฀consistent฀with฀the฀SEC’s฀rules฀on฀auditor฀
independence.฀The฀Audit฀Committee฀shall฀determine฀whether฀the฀audit฀firm฀is฀best฀positioned฀to฀provide฀the฀most฀effective฀and฀efficient฀service.
The฀non-audit฀services฀that฀have฀the฀general฀pre-approval฀of฀the฀Audit฀Committee฀will฀be฀reviewed฀on฀an฀annual฀basis฀unless฀the฀Audit฀Committee฀consid-
ers฀a฀different฀period฀and฀states฀otherwise.฀The฀Audit฀Committee฀shall฀annually฀review฀and฀pre-approve฀the฀audit,฀audit-related฀and฀tax฀services฀that฀
can฀be฀provided฀by฀the฀independent฀auditor฀without฀obtaining฀specific฀pre-approval฀from฀the฀Audit฀Committee.฀The฀Audit฀Committee฀will฀revise฀the฀list฀of฀
general฀pre-approved฀services฀from฀time฀to฀time,฀based฀upon฀subsequent฀determinations.฀The฀Audit฀Committee฀does฀not฀delegate฀its฀responsibilities฀to฀
pre-approve฀services฀performed฀by฀the฀independent฀auditor฀to฀management฀or฀to฀others.฀
The฀independent฀auditor฀has฀reviewed฀this฀policy฀and฀believes฀that฀implementation฀of฀the฀policy฀will฀not฀adversely฀affect฀the฀auditor’s฀independence.฀
II.฀AUDIT฀SERVICES
The฀Audit฀Committee฀shall฀approve฀the฀annual฀audit฀services฀engagement฀terms฀and฀fees฀no฀later฀than฀its฀review฀of฀the฀independent฀auditor’s฀audit฀plan.฀฀
Audit฀services฀may฀include฀the฀annual฀financial฀statement฀audit฀(including฀required฀quarterly฀reviews),฀subsidiary฀audits฀and฀other฀procedures฀required฀to฀
be฀performed฀by฀the฀independent฀auditor฀to฀be฀able฀to฀form฀an฀opinion฀on฀the฀Company’s฀consolidated฀financial฀statements.฀These฀other฀procedures฀in-
clude฀information฀systems฀and฀procedural฀reviews฀and฀testing฀performed฀in฀order฀to฀understand฀and฀place฀reliance฀on฀the฀systems฀of฀internal฀control,฀and฀
consultations฀occurring฀during,฀and฀as฀a฀result฀of,฀the฀audit.฀Audit฀services฀also฀include฀the฀attestation฀engagement฀for฀the฀independent฀auditor’s฀report฀on฀
management’s฀report฀on฀internal฀control฀over฀financial฀reporting.฀The฀Audit฀Committee฀shall฀also฀approve,฀if฀necessary,฀any฀significant฀changes฀in฀terms,฀
conditions฀and฀fees฀resulting฀from฀changes฀in฀audit฀scope,฀company฀structure฀or฀other฀items.฀
In฀addition฀to฀the฀annual฀audit฀services฀engagement฀approved฀by฀the฀Audit฀Committee,฀the฀Audit฀Committee฀may฀grant฀general฀pre-approval฀to฀other฀audit฀
services,฀which฀are฀those฀services฀that฀only฀the฀independent฀auditor฀reasonably฀can฀provide.฀Other฀audit฀services฀may฀include฀statutory฀audits฀or฀financial฀
audits฀for฀subsidiaries฀or฀affiliates฀of฀the฀Company฀and฀services฀associated฀with฀SEC฀registration฀statements,฀periodic฀reports฀and฀other฀documents฀filed฀
with฀the฀SEC฀or฀other฀documents฀issued฀in฀connection฀with฀securities฀offerings.
III.฀AUDIT-RELATED฀SERVICES
Audit-related฀services฀are฀assurance฀and฀related฀services฀that฀traditionally฀are฀performed฀by฀the฀independent฀auditor.฀Because฀the฀Audit฀Committee฀
believes฀that฀the฀provision฀of฀audit-related฀services฀does฀not฀impair฀the฀independence฀of฀the฀auditor฀and฀is฀consistent฀with฀the฀SEC’s฀rules฀on฀auditor฀
independence,฀the฀Audit฀Committee฀may฀grant฀general฀pre-approval฀to฀audit-related฀services.฀Audit-related฀services฀include,฀among฀others,฀due฀diligence฀
services฀pertaining฀to฀potential฀business฀acquisitions/dispositions,฀accounting฀consultations฀for฀significant฀or฀unusual฀transactions฀not฀classified฀as฀“audit฀
services,”฀assistance฀with฀understanding฀and฀implementing฀new฀accounting฀and฀financial฀reporting฀guidance฀from฀rulemaking฀authorities,฀financial฀audits฀
of฀employee฀benefit฀plans,฀agreed-upon฀or฀expanded฀audit฀procedures฀performed฀at฀the฀request฀of฀management฀and฀assistance฀with฀internal฀control฀
reporting฀requirements.
IV.฀TAX฀SERVICES
The฀Audit฀Committee฀believes฀that฀the฀independent฀auditor฀can฀provide฀traditional฀tax฀services฀to฀the฀Company฀such฀as฀U.S.฀and฀international฀tax฀planning฀
and฀compliance.฀The฀Audit฀Committee฀will฀not฀pre-approve฀the฀retention฀of฀the฀independent฀auditor฀in฀connection฀with฀a฀transaction฀initially฀recommended฀
by฀the฀independent฀auditor,฀the฀purpose฀of฀which฀may฀be฀tax฀avoidance฀and฀the฀tax฀treatment฀of฀which฀may฀not฀be฀supported฀in฀the฀Internal฀Revenue฀Code฀
and฀related฀regulations.฀฀
V.฀OTHER฀PERMISSIBLE฀NON-AUDIT฀SERVICES
The฀Audit฀Committee฀may฀grant฀general฀pre-approval฀to฀those฀permissible฀non-audit฀services฀(other฀than฀tax฀services,฀which฀are฀addressed฀above)฀that฀it฀
believes฀are฀routine฀and฀recurring฀services,฀would฀not฀impair฀the฀independence฀of฀the฀auditor฀and฀are฀consistent฀with฀the฀SEC’s฀rules฀on฀auditor฀indepen-
dence.฀
nExhibit฀V—Audit฀and฀Non-Audit฀Services฀Pre-Approval฀Policy