Document:

suwn_ex10-24.htm

     

    
      

      

    

    Exhibit 10.24

      CONSULTING
AND MANAGEMENT AGREEMENT

       

      This
Consulting and Management Agreement (“Agreement”) is made as of this 29th day of
April, 2009 by and between Sunwin International Neutraceuticals, Inc., a Nevada
corporation (“Client”), and China Direct Investments, Inc., a Florida
corporation (“Consultant”).  Client and Consultant may collectively be
referred to as the “Parties”.

       

      W
I T N E S S E T H:

       

      WHEREAS,
Client desires to engage the services of Consultant as its representative in the
United States and to provide Client with the services as more fully set forth in
this Agreement; and

       

      WHEREAS,
Consultant is desirous of performing such services on behalf of
Client.

       

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in
this Agreement, the parties hereto agree as follows:

       

      1.  Consulting
Services.  Upon the terms and subject to the conditions
contained in this Agreement, Consultant hereby agrees that it shall, during the
term of this Agreement, undertake the performance of the following services (the
“Services”):

       

      
        	
                a.  

              	
                Familiarize
      itself, to the extent appropriate and feasible, with the business,
      operations, properties, financial condition, management and prospects of
      Client;

              

      

       

      
        	
                b.  

              	
                Advise
      Client on matters relating to its
  capitalization;

              

      

       

      
        	
                c.  

              	
                Evaluate
      alternative financing structures and arrangements and potential sources of
      investment capital;

              

      

       

      
        	
                d.  

              	
                Assist
      Client in evaluating and make recommendations concerning the relationships
      among Client's various lines of business and potential areas for business
      growth;

              

      

       

      
        	
                e.  

              	
                Assist
      with translation of documents
(Chinese/English);

              

      

       

      
        	
                f.  

              	
                Manage
      and enter into contracts for professional resources on behalf of and as
      required by Client in its U.S. operations and regulatory compliance (i.e.
      legal, accounting, auditing, transfer agent, public relations services and
      such other services mutually agreed on by the
  Parties);

              

      

       

      
        	
                g.  

              	
                Manage
      investor road shows/investment
conferences;

              

      

       

      
        	
                h.  

              	
                Coordinate
      the preparation and filing of all required public disclosures as required
      by the Securities and Exchange Commission and such other governmental and
      regulatory agencies in the United States and in each state where Client
      maintains an office or is required to comply with state laws in the United
      States;

              

      

       

      
        
           

        

        
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                i.  

              	
                Provide
      assistance in financial management and the implementation of internal
      controls;

              

      

       

      
        	
                j.  

              	
                Maintain
      Client’s U.S. representative offices;
and

              

      

       

      
        	
                k.  

              	
                Provide
      such other services upon which the Parties may mutually
    agree.

              

      

       

      2. Term. The Agreement
shall be for a term of twelve (12) months from May 1, 2009 to April 30, 2010.
This Agreement may be extended for an additional twelve (12) months by Client
upon the mutual agreement of both Client and the Consultant and the payment of
additional compensation to be agreed on by the Parties.

       

      3. Consulting Fees and
Expenses. Client shall pay Consultant for providing the Services the
following compensation and reimbursement of expenses (the “Consulting Fees and
Expenses”):

       

      
        	
                a.  

              	
                Stocks. Client
      shall issue Consultant a total of 1,300,000 shares of Client’s Common
      Stock, $0.001 par value (the “Shares”) which shall be earned and issued
      within 30 days upon the signature of this
  agreement.

              

      

       

      
        	
                b.  

              	
                Cash. Client
      shall compensate Consultant a total of $150,000 payable in full amount
      within 45 days upon the signature of this
  agreement.

              

      

       

      
        	
                c.  

              	
                Expenses.  All
      costs and expenses necessary for the legal, accounting, transfer agent,
      public relations services and other professional services necessary in the
      operation of Client’s business in the U.S., travel and living expenses,
      copying and shipping expenses and other costs and expenses incurred in
      connection with any transactions contemplated by this Agreement (the
      “Expenses”).  The Expenses shall be paid or incurred by
      Consultant.

              

      

       

      4.
Information.  In connection with Consultant providing Services
hereunder, Client will cooperate with Consultant and furnish Consultant upon
request with all information regarding the business, operations, properties,
financial condition, management and prospects of Client (all such information so
furnished being the “Information”) which Consultant deems appropriate and will
provide Consultant with access to Client's officers, directors, employees,
independent accountants and legal counsel.  Client represents and
warrants to Consultant that all Information made available to Consultant in
connection with the performance of the Services under this Agreement will be
complete and correct in all material respects and will not contain any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein not misleading in light of the circumstances
under which such statements are or will be made.  Client further
represents and warrants that any projections and other forward-looking
information provided by it to Consultant will have been prepared in good faith
and will be based upon assumptions which, in light of the circumstances under
which they are made, are reasonable.  Client recognizes and confirms
that Consultant:  (i) will use and rely primarily on the Information
and on information available from generally recognized public sources in
performing the services contemplated by this Agreement without having
independently verified the same; and (ii) does not assume responsibility for the
accuracy or completeness of the Information and any reports or other filings
made by Client with the U.S. Securities and Exchange Commission.

       

      
        
           

        

        
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      5.  Warranties.  Consultant
warrants that the Services to be provided under this Agreement shall be
performed by qualified personnel in a professional manner employing reasonable
commercial efforts.  This warranty shall be valid for a period of
thirty (30) days from the performance of the Services.  Except as
specifically provided in this Section 4, Consultant disclaims any and all other
warranties with respect to the services provided hereunder, including without
limitation any implied warranty of merchantability or fitness for a particular
purpose. Consultant does not warrant the results of any services. In addition,
Client acknowledges and agrees that Consultant is not engaged in the practice of
law or the provision of legal services, and that Client alone is completely and
independently responsible for compliance with all state, federal and
international laws applicable to Client and the operation of its
business.  Consultant’s entire liability to Client (or any other
person or entity) for any loss or damages resulting from any breach of this
Agreement, claims, demands or actions arising out of or relating to the
Services, whether in contract, tort (including negligence) or otherwise, shall
not exceed the sum of $5,000.  In no event will Consultant or its
affiliates be liable for any damages caused by the Client's action or inaction,
or for any indirect, incidental, consequential, special, punitive or exemplary
damages or lost profits, including, but not limited to, damages for loss of
business profits, business interruption, loss of business information, data,
goodwill or other pecuniary loss arising from Consultant’s failure to provide
the Services even if Consultant has been advised of the possibility of such
damages.

       

      6. Indemnification.  Client
agrees to indemnify and hold the Consultant and its subsidiaries and their
respective officers, directors, employees and agents and (collectively, the
“Consultant Indemnitees”) harmless from all Consultant Indemnified
Liabilities.  For this purpose, “Consultant Indemnified Liabilities”
shall mean all suits, proceedings, claims, expenses, losses, costs, liabilities,
judgments, deficiencies, assessments, actions, investigations, penalties, fines,
settlements, interest and damages (including reasonable attorneys’ fees and
expenses), whether suit is instituted or not and, if instituted, whether at any
trial or appellate level, and whether raised by the parties hereto or a third
party, incurred or suffered by the Consultant Indemnitees or any of them arising
from, in connection with or as a result of Consultant’s performance or
non-performance of the Services set forth in this Agreement and a breach of any
of Client’s representations under this Agreement.

       

      7. Termination.
Consultant may terminate this Agreement at any time by providing Client 30 days
prior written notice, it being understood by the Parties that at the time of
such termination, all amounts due hereunder up to the date of termination shall
be paid in full by Client to Consultant.  Client may terminate this
Agreement only for Consultant’s breach of a material term or condition of this
Agreement if Consultant does not cure the breach within thirty (30) days after
receiving written notice from Client describing the material
breach.  In no event shall the Party exercising its right under this
Section 7 be precluded by the exercise of such termination right from pursuing,
subject to the terms of this Agreement and applicable law, any cause of action
or other claim it may then or at any time thereafter have against the other
Party in respect of any breach or default by the other Party hereunder. From and
after termination of this Agreement, the Parties shall continue to be bound by
such provisions of this Agreement as by their nature survive such events,
including, without limitation, Sections 4, 6 and 12.

       

      
        
           

        

        
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      8. Assignment and
Subcontractors. This Agreement shall be assignable by Consultant. Client
acknowledges that from time to time, Consultant may enlist a subcontractor to
perform some of the Services provided to Client. In the event services to be
performed as outlined in this Agreement are subcontracted to a third party, the
third party shall accept responsibility for the performance of such activities.
Consultant will cease to bear any responsibility related to the performance of
subcontracted services; however the Consultant will act as liaison between the
subcontractor and Client, to monitor the performance of services to be provided
by any third party.

       

      9.  Modifications.  This
Agreement can only be modified by a written agreement duly signed by persons
authorized to sign agreements on behalf of Client and Consultant, and variance
from or addition to the terms and conditions of this Agreement or other written
notification will be of no effect.  The failure of any Party to
enforce any right it is granted herein, or to require the performance by the
other Party hereto of any provision of this Agreement, or the waiver by any
Party of any breach of this Agreement, shall not prevent a subsequent exercise
or enforcement of such provisions or be deemed a waiver of any subsequent breach
of this Agreement.

       

      10.  Entire
Understanding.  This Agreement represents the entire
understanding and agreement between the Parties with respect to the subject
matter hereof, and merges all prior discussions between them and supersedes and
replaces any and every other agreement or understanding which may have existed
between the Parties to the extent that any such agreement or understanding
relates to providing services to Client. To the extent, if any, that the terms
and conditions of Client’s orders or other correspondence are inconsistent with
this Agreement, this Agreement shall control.

       

      11.  Force
Majeure.  No delay, failure or default in performance of any
obligation by either Party, excepting all obligations to make payments
hereunder, shall constitute a breach of this Agreement to the extent caused by,
in whole or in part, the other Party (and within the other party’s reasonable
control) or an act of God, war, civil disturbance, terrorist act, court order,
labor dispute, or other cause beyond its reasonable control, and such
nonperformance will not be a default under this Agreement.

       

      12.  Laws, Severability, Venue,
Waivers.  The validity of this Agreement and the rights,
obligations and relations of the Parties hereunder shall be construed and
determined under and in accordance with the laws of the State of Florida,
without regard to conflicts of law principles thereunder provided, however, that
if any provision of this Agreement is determined by a court of competent
jurisdiction to be in violation of any applicable law or otherwise invalid or
unenforceable, such provision shall to such extent as it shall be determined to
be illegal, invalid or unenforceable under such law be deemed null and void, but
this Agreement shall otherwise remain in full force.  Suit to enforce
any provision of this Agreement, or any right, remedy or other matter arising
therefrom, will be brought exclusively in the state or federal courts located in
Broward County, Florida.  Client agrees and consents to venue in
Broward County, Florida and to the in personam jurisdiction of these courts and
hereby irrevocably waives any right to a trial by jury.

       

      
        
           

        

        
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      13.  Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed, shall constitute an original copy hereof, but all of which together
shall consider but one and the same document.

       

      14.  Other Activities.
Nothing contained herein shall prevent Consultant from acquiring or
participating in a transaction of any kind with any other entity proposed by
Consultant to be acquired by Client. Such transaction may be acquired at a price
and upon terms and conditions more or less favorable than those offered to
Client.

       

      15.  Disclaimer.
Consultant acknowledges that it has and will during the term of this Agreement,
rely upon information provided by Client in connection with the performance of
the Services and in accepting the Client’s securities as full or partial payment
of the Consulting Fees under this Agreement.

       

      16.  Notices. All notices
to be given hereunder shall be in writing, with fax notices being an acceptable
substitute for mail and/or and delivery to:

       

      
        	
                Consultant:

              	
                Client:

                 

              
	
                China
      Direct Investments, Inc.

                431
      Fairway Drive, Suite 200

                Deerfield
      Beach, Florida 33441

                Fax:
      (954) 363-7320

                Attn.
      General Counsel

                 

              	
                Sunwin
      International Neutraceuticals, Inc.

                6
      Shengwang Avenue, Qufu,

                Shandong,
      China 273100

                Fax:
      86-537-4915991

                Attn.
      Dongdong Lin

              

      

      

      17.  Controlling Language,
Currency.  This Agreement is in the English language only,
which language shall be controlling in all respects. Translation, if any, of
this Agreement into any foreign language shall not be of any force or effect in
the interpretation of this Agreement or in the determination of the intent of
the Parties. All calculations and determinations of dates and time periods under
this Agreement shall be by reference to the date and local time in Deerfield
Beach, Florida, at which any relevant event occurs and not the date and local
time at the actual place in the world at which the relevant event in fact
occurs. All fees and other monetary amounts referenced in or payable under this
Agreement shall be in U.S. Dollars. Each Party undertakes to obtain from its
respective government whatever authorization, approvals, licenses or permits are
required in order for it to perform all its obligations under this Agreement in
accordance with its terms.

       

      IN
WITNESS WHEREOF, the parties have executed this Agreement on the date first
above written.

      

      
        
          
            
              	Client:	 	 	 Consultant	 
	Sunwin
      International Neutraceuticals, Inc.	 	 	 China
      Direct Investments, Inc.	 
	 	 	 	 	 
	
                      By:
      /s/ Dongdong Lin

                    	 	 	
                      By:
      /s/ James Wang 

                    	 
	
                      Name:
      Dongdong Lin

                    	 	 	
                      Name:
      James Wang

                    	 
	
                      Title:
      CEO

                    	 	 	
                      Title:
      CEO

                    	 

            

          

        

       

      
        
           

        

        
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-exhibit106.htm

Exhibit (10.6)

Eastman Kodak Company

Administrative Guide for the 20__ Performance Cycle

of the Leadership Stock Program

under Article 7 (Performance Awards) of the

2005 Omnibus Long-Term Compensation Plan

 

ARTICLE 1.  INTRODUCTION

1.1           Background

Under Article 7 (Performance Awards) of the 2005 Omnibus Long-Term Compensation Plan (the “Plan”), the Executive Compensation and Development Committee of Kodak’s Board of Directors (the “Committee”) may, among other things, award the opportunity to earn shares of Common Stock to those Participants as the Committee
in its discretion may determine, subject to such terms, conditions and restrictions as it deems appropriate.

1.2           Purpose

This Administrative Guide governs the Committee’s grant of Awards under Article 7 of the Plan pursuant to a subprogram that is hereinafter referred to as the “Leadership Stock Program,” to be effective as of January 1, 20__, by which the Committee will award the opportunity to earn shares of Common Stock for the Cycle to
eligible Participants described in Article 3, with the objectives of improving the relationship between controllable performance and realized compensation and enhancing the focus on operating goals.  It is expected that improvement in these areas will have a corollary effect upon the price of the Common Stock.  Unless otherwise noted in this Administrative Guide or determined by the Committee, the terms of the Plan shall apply to Awards granted under this Leadership Stock Program.

In addition, this Administrative Guide is intended to establish those requirements necessary to ensure that the Cycle’s Awards will be treated as performance-based compensation for the purposes of Section 162(m) of the Code.  These requirements include establishment of the Cycle’s Performance Criteria, performance goals
under the Performance Criteria and Performance Formula.

 

1.3           Administration

The Leadership Stock Program shall be administered by the Committee.  The Committee is authorized to issue this Administrative Guide and to make changes in this Administrative Guide as it from time to time deems proper. The Committee is authorized to interpret and construe the Leadership Stock Program and this Administrative Guide,
to prescribe, amend, and rescind rules and regulations relating to each, and to make all other determinations necessary, appropriate or advisable for the administration of the Leadership Stock Program, including without limitation, whether or not to pay fractional shares, whether and how to round fractional shares, and any issues regarding valuation, withholding and international considerations.  If there are any inconsistencies between the terms of this Administrative Guide and the terms of the Plan,
the terms of the Plan will control.  Any determination by the Committee in carrying out, administering or construing the Leadership Stock Program will be final and binding for all purposes and upon all interested persons and their heirs, successors and personal representatives.  The Committee is authorized to suspend or terminate the Leadership Stock Program, at any time, for any reason, with or without prior notice.  Notwithstanding any provision herein to the contrary, the Company's
Chief Human Resources Officer is authorized to round fractional shares arising in any way under the Plan either up or down with respect to any or all Participants, for ease of administration or some other reasonable purpose.

  

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ARTICLE 2.  DEFINITIONS

Any defined term used in this Administrative Guide, other than those set forth in this Article 2 or defined within another Article of this Administrative Guide, will have the same meaning for purposes of this document as that ascribed to it under the terms of the Plan.

2.1           Approved Reason

“Approved Reason” means, with regard to all Participants other than a Participant who is subject to Section 16 of the Exchange Act or a Covered Employee, a reason for terminating employment which, in the opinion of the CEO, is in the best interests of the Company.  With regard to a Participant who is subject to Section
16 of the Exchange Act or is a Covered Employee, “Approved Reason” means a reason for terminating employment which, in the opinion of the Committee, is in the best interests of the Company.

2.2           Award Payment Date

“Award Payment Date” is the date payment of an Award in the form of shares of Common Stock is credited to the Participant’s account with Kodak’s transfer agent pursuant to Section 9.3, which shall be as soon as is administratively practicable after the Vesting Date, but in no event later than 90 days thereafter.

2.3           Cycle

“Cycle” or “Performance Cycle” means the ___-year period commencing on January 1, 20__ and ending December 31, 20__.

2.4           (Intentionally Omitted)

2.5           Joint Venture

“Joint Venture” means a corporation or other business entity in which the Company has an ownership interest of fifty percent (50%).

2.6           Participant Account

“Participant Account” means the account established by the Company for each Participant who is granted an Award under the Leadership Stock Program to record and account for the grant of the Award and any dividend equivalents that are to be credited to the Account pursuant to Article 10, until such time as the balance in the Account
is paid, canceled, forfeited or terminated, as the case may be.

2.7           Performance Criteria

“Performance Criteria” means, with respect to the Leadership Stock Program, the criteria that will be used to establish the Performance Goal for the Performance Cycle, as described in Article 6.

2.8           Performance Cycle

“Performance Cycle” has the meaning specified in Section 2.3.

2.9           Performance Goals

“Performance Goals” means, with respect to the Performance Cycle of the Leadership Stock Program, the goals based upon the Performance Criteria and established by the Committee, as more particularly described in Article 6.

  

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2.10           Participant’s Individual Allocation

“Participant’s Individual Allocation” means, for the Performance Cycle of the Leadership Stock Program, the target allocation amount, expressed as a number of units of Common Stock, allocated to a Participant prior to the start of the Performance Cycle pursuant to Section 5.2.

2.11           Unit

“Unit” means a bookkeeping entry used by the Company to record and account for the amount of an Award granted to a Participant and any dividend equivalents that are to be credited to the Participant’s Account pursuant to Article 10, even though such Award and dividend equivalents have not yet been earned, until such time
as the balance in the Account is paid, canceled, forfeited, or terminated, as the case may be.  Units are expressed in terms of one Unit being the equivalent of one share of Common Stock.

2.12           Vesting Date

“Vesting Date” shall mean the date that is __ (__) year(s) following the end of the Performance Cycle.

 

ARTICLE 3.  PARTICIPATION

3.1           In General

The Participants who are eligible to participate in this Cycle of the Leadership Stock Program are those executives who, as of the first day of the Cycle, are either employed by Kodak globally in wage grades 48 and higher, or are senior-level executives employed by Kodak Subsidiaries.  The CEO will make recommendations for participation
for this Cycle of the Leadership Stock Program from among those eligible Participants. Participants for this Cycle of the Leadership Stock Program will be designated by the Committee from those recommended by the CEO.  A schedule of such Participants is maintained by Kodak’s Global Compensation Organization.

Subject to applicable local laws, regulations and processes, in order to be eligible for and to receive an Award, all eligible Participants must have signed an Executive Employee’s Agreement in a form acceptable to the Chief Human Resources Officer and Senior Vice President, Eastman Kodak Company.  Any participant who fails
to sign such an Executive Employee’s Agreement on or prior to the Certification will forfeit his or her Individual Allocation.

3.2           New Participants

No person may become eligible to participate in this Cycle of the Leadership Stock Program after the first day of the Cycle, whether as a result of a job change or otherwise.

3.3           Termination of Participation

A Participant’s participation in this Cycle of the Leadership Stock Program is subject to immediate termination upon the Participant’s termination of employment from the Company during the Performance Cycle.  In the case of the Participant’s termination of employment after the end of the Performance Cycle but prior
to the Vesting Date, the Participant will forfeit any and all rights to receive payment on account of an Award for the Cycle, except as specified in Section 8.2 (Death, Disability, Retirement or Termination for an Approved Reason), Section 8.3 (Divestiture to a Joint Venture) and Section 8.4 (Divestiture to an Unrelated Third Party).

ARTICLE 4.  FORM OF AWARDS

4.1           Form of Awards

Awards granted under the Leadership Stock Program provide Participants with the opportunity to earn shares of Common Stock, subject to the terms and conditions contained in this Administrative Guide and the Plan.  Each award granted under the Leadership Stock Program

  

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shall be expressed as a fixed number of Units that will be equivalent to an equal number of shares of Common Stock.  The fixed number of Units that are allocated to a Participant by the Committee prior to the start of the Performance Cycle is referred to herein and in the Plan as the Participant’s Individual Allocation.

4.2           Participant Account

The Company will establish a Participant Account for each Participant who is granted an Award.

4.3           Participant’s Account Unfunded

The maintenance of individual Participant Accounts is for bookkeeping purposes only; the Units recorded in the account are not actual shares of Common Stock.  The Company will not reserve or otherwise set aside any Common Stock for or to any Participant Account.  No Participant shall have the right to exercise any of the
rights or privileges of a shareholder with respect to the Units credited to his or her Participant Account.  As more specifically described in Article 10, until the Committee has certified the Award earned by a Participant pursuant to the procedure referred to in Article 7 of this Guide, no additional Units will be credited for dividends that may be paid on the Company’s Common Stock.

ARTICLE 5.  AWARD ALLOCATION

5.1           Target Allocation Midpoint

The attached Exhibit “A” shows by wage grade the target dollar value and the number of Units that an eligible Participant could be allocated with respect to the Performance Cycle.  Exhibit “A” shows the midpoint of the
target dollar value and number of Units for wage grades 48-56.  Wage grades 57 and above have individualized targets.

5.2           Establishing the Participant’s Individual Allocation

No later than the cut-off date of the allocation period in 20__, each Participant’s unit management will review the Participant’s most recent relative leadership assessment and, based upon that assessment, recommend the percentage to be applied to the Target Allocation Midpoint applicable to that Participant to determine the fixed
number of Units that will be allocated to that Participant. The unit management’s recommendation will be made to the CEO.

Prior to the first day of the Cycle, the fixed number of Units that are allocated to a Participant will be approved by the CEO, except in the case of a Participant who is subject to Section 16 of the Exchange Act or a Covered Employee, in which case the fixed number of Units that are allocated to a Participant will be established by the Committee.  No
change will be made to the fixed number of Units allocated to a Participant as a result of a promotion or demotion that occurs after the Units are allocated, provided the Participant remains eligible as of the first day of the Cycle.  Participants who become newly eligible after the cut-off date of the allocation period in 20__ will be allocated a fixed number of Units that is equal to the Target Allocation Midpoint applicable to that Participant.

The fixed number of Units allocated to a Participant prior to the start of the Performance Cycle is referred to herein as the “Participant’s Individual Allocation.”

  

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ARTICLE 6.  ESTABLISING PERFORMANCE FACTORS

 

6.1           Performance Criteria

The Committee has selected ________________________________________

as the Performance Criteria for purposes of establishing the Performance Goal for the Performance Cycle.

6.2           Performance Goal

The Committee has established the target amounts of ____________ for the Performance Cycle that will serve as the “Performance Goal” for purposes of assessing the Company’s performance during the Performance Cycle.

The Committee has also established the minimum amounts of _______________________for the Performance Cycle (the “Minimum Performance Goal”) that will serve as the minimum actual amount for the Performance Cycle that will be necessary in order for any amount of an Award to be considered to have been earned by the Participants for
the Performance Cycle.

The Committee will cause the Performance Goals and the Minimum Performance Goals to be documented in an Exhibit “B” to this Administrative Guide.

6.3           Performance Formula

The “Performance Formula,” which will determine the amount of an Award that will be considered to have been earned by a Participant is as follows:

Award Earned = Participant’s Individual Allocation x Applicable Performance Percentage

The “Applicable Performance Percentage” will be determined from the performance matrix attached to this Administrative Guide as Exhibit “B”.  For purposes of the performance matrix, results between the amounts shown will be interpolated to derive an Applicable Performance Percentage.  The maximum
Applicable Performance Percentage is 200%.

 

ARTICLE 7.  DETERMINATION OF EARNED AWARDS

7.1           Certification

Following the completion of the Performance Cycle, the Committee shall meet to review and certify in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved.  If the Committee certifies that the Minimum Performance Goals have been achieved, it shall also calculate and certify in writing
the Applicable Performance Percentage.  By applying the Performance Formula, the Committee shall then determine and certify the actual amount of each Participant’s Award that has been earned for the Performance Cycle, keeping any fractional shares in the Participant’s Account.

7.2           Discretion

Notwithstanding any provision contained herein to the contrary, in determining the actual amount of an individual Award to be deemed earned for the Cycle, the Committee may, through the use of Positive or Negative Discretion, increase or reduce the amount of the Award that would otherwise be earned by application of the Performance Formula,
if, in its sole judgment, such increase or reduction is appropriate. Positive discretion will not apply to Named Executive Officers.

  

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ARTICLE 8.  PRECONDITIONS TO RECEIPT OF AN EARNED AWARD

8.1           Continuous Employment Until Payment

A Participant must remain continuously employed with the Company (in any wage grade) at all times from the first day of the Cycle through the Vesting Date in order to remain eligible for an Award.  If a Participant’s employment with the Company ceases during this period for any reason, the Participant will forfeit the entire
number of Units that have been allocated to him or her for the Cycle (including any Units that are earned but not vested) and any dividend equivalents that have been credited to the Account pursuant to Article 10 hereof.  The limited exceptions to the requirements of this Section 8.1 are specified in Sections 8.2, 8.3 and 8.4 below.

 

8.2           Death, Disability, Retirement, or Termination for an Approved Reason before the Vesting Date

Notwithstanding any provision contained in this Article 8 to the contrary, if after the end of the Performance Cycle but prior to the Vesting Date, a Participant’s employment with the Company ceases for an Approved Reason or as a result of his or her death, Disability or Retirement, and if such Participant had been employed with the
Company for the entire Performance Cycle, such Participant shall be entitled to receive an Award.

In the event a Participant’s employment with the Company ceases at any time during the Performance Cycle (whether for an Approved Reason or as a result of his or her death, Disability or Retirement), the Participant will no longer be eligible for an Award for such Cycle and, consequently, will forfeit any and all rights to receive an
Award for such Cycle.

8.3           Divestiture to a Kodak Joint Venture

Notwithstanding any provision contained in this Article 8 to the contrary, if after the end of the Performance Cycle but prior to the Vesting Date, a Participant’s employment with the Company ceases as a result of the Company’s sale or other disposition to a Joint Venture of the business unit in which the Participant was employed,
such Participant will be entitled to receive an Award, provided that (a) his or her employment with the Company ceases after the end of the Performance Cycle, and (b) such Participant is employed by either the Company or such Joint Venture at all times from the first day of the Cycle through the Vesting Date.

If either of the conditions (a) or (b) set forth in the prior paragraph are not met, a Participant whose employment with the Company ceases at any time prior to the Vesting Date as a result of the Company’s sale or other disposition to a Joint Venture of the business unit in which the Participant was employed, is no longer eligible for
an Award for such Cycle and, consequently, will forfeit any and all rights to receive an Award for such Cycle.

8.4           Divestiture to an Unrelated Third Party

Notwithstanding any provision contained in this Article 8 to the contrary, if after the end of the Performance Cycle but prior to the Vesting Date, a Participant’s employment with the Company ceases as a result of the Company’s sale or other disposition of the business unit in which the Participant was employed, to a corporation
or other business entity in which the Company has no ownership interest, such Participant will be entitled to receive an Award, provided that his or her employment with the Company ceases after the end of the Performance Cycle.

A Participant whose employment with the Company ceases at any time during the Performance Cycle as a result of the Company’s sale or other disposition of the business unit in which the Participant was employed, to a corporation or other business entity in which the Company has no ownership interest, is no longer eligible for an Award
for such Cycle and, consequently, will forfeit any and all rights to receive an Award for such Cycle.

  

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ARTICLE 9.  PAYMENT OF AWARDS

9.1           Timing of Award Payments

Awards that have been earned for this Cycle and any dividend equivalents that are credited to the Account pursuant to Article 10 shall be paid on the Award Payment Date by the procedure described in Section 9.3.  Participants cannot defer Awards.

9.2           Form of Payment of Awards

All awards for this Cycle including any dividend equivalents that are credited to the Account pursuant to Article 10 shall be paid in the form of shares of Common Stock in accordance with the procedure described in Section 9.3, subject to the terms, restrictions and conditions of the Plan and those set forth in this Administrative Guide.

In countries where issuance of shares is significantly onerous due to legal or regulatory requirements, the cash equivalent of the number of shares will be distributed.

9.3           Issuance of Shares of Common Stock

On the Award Payment Date, Kodak will subtract from a Participant's account the number of Units that are withheld for taxes under Section 11.6 below, and then, with respect to the remaining Units, promptly instruct its transfer agent to reflect, in an account of the Participant on the books of the transfer agent, the shares of Common Stock
that are to be delivered to the Participant.  Upon the Participant’s request, the transfer agent will deliver to the Participant a stock certificate for the remaining number of shares of Common Stock held in that account of the Participant.

9.4           Non-Assignable

No Awards or any other payment under the Leadership Stock Program shall be subject in any manner to alienation, sale, transfer (except by will of the laws of descent and distribution), assignment, pledge or encumbrance, nor shall any Award by payable to any one other than the Participant to whom it was granted.

ARTICLE 10.  DIVIDEND EQUIVALENTS

10.1           Dividend Equivalents

In the event of the payment of any cash dividend on the Common Stock or any stock dividend (as defined in Section 305 of the Code) on the Common Stock with a record date occurring during the period beginning on the date the Committee certifies the amount of the Award that has been earned by the Participants and ending on the Vesting Date,
a Participant’s Account shall be credited with additional Units.

The amount of such additional Units to be credited to each Participant who has earned an Award for this Cycle is as set forth in Section 10.2 and Section 10.3.  Any such additional Units will be credited as of the payment date for each such dividend.

10.2           Stock Dividends

The number of Units that shall be credited to the Account of such a Participant will equal the number of shares of Common Stock which the Participant would have received as stock dividends had the Participant been the owner on the record date for such stock dividend of the number of shares of the Common Stock equal to the number of Units credited
to the Participant’s Account on such record date.  To the extent the Participant would have also received cash, in lieu of fractional shares of Common Stock, had the Participant been the record owner of such shares, for such stock dividend, then his or her Account shall also be credited with that number of Units, or fractions thereof, equal to such cash amount divided by the Fair Market Value of the Common Stock on the payment date for such dividend.

  

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10.3           Cash Dividends

The number of Units that shall be credited to the Account of such a Participant shall be computed by multiplying the dollar value of the dividend paid upon a single share of Common Stock by the number of Units credited to the Participant’s Account on the record date for such dividend and dividing the product thereof by the Fair Market
Value of the Common Stock on the payment date for such dividend.

10.4           Reorganization

If the Company undergoes a reorganization (as defined in Section 368(a) of the Code) during the period beginning on the date the Committee certifies the amount of the Award that has been earned by the Participants and ending on the Vesting Date, the Committee may, in its sole and absolute discretion, take whatever action it deems necessary,
advisable or appropriate with respect to the Account of each Participant that has earned an Award in order to reflect such transaction, including, but not limited to, adjusting the number of Units credited to each such Participant's Account.

ARTICLE 11.  MISCELLANEOUS

11.1           Compliance with Laws

The obligations of the Company to issue Common Stock awarded pursuant hereto are subject to compliance with all applicable governmental laws, regulations, rules and administrative actions, including, but not limited to, the Securities Act of 1933, as amended, and the Exchange Act, and all rules promulgated thereunder.

11.2           Termination/Amendment

The Committee may amend, suspend or terminate the Leadership Stock Program in whole or in part at any time, for any reason, with or without prior notice.  In addition, the Committee, or any person to whom the Committee has delegated the requisite authority, may, at any time and from time to time, amend this Administrative Guide in
any manner.

11.3           Section 162(m) of the Code

If any provision of this Administrative Guide would cause the Awards granted to a Covered Person not to constitute “qualified performance-based compensation” under Section 162(m) of the Code, that provision, insofar as it pertains to the Covered Person, shall be severed from, and shall be deemed not to be a part of, this Administrative
Guide, but the other provisions hereof shall remain in full force and effect.  Further, if this Administrative Guide fails to contain any provision required under Section 162(m) in order to make the Awards granted hereunder to a Covered Employee be “qualified performance-based compensation,” then this Administrative Guide shall be deemed to incorporate such provision, effective as of the date of this Administrative Guide’s adoption by the Committee.

11.4           Participant’s Rights Unsecured

The amounts payable under this Administrative Guide shall be unfunded, and the right of any Participant or his or her estate to receive payment under this Administrative Guide shall be an unsecured claim against the general assets of the Company.  No Participant shall have the right to exercise any of the rights or privileges of
a shareholder with respect to the Units credited to his or her Participant Account.

11.5           No Guarantee of Tax Consequences

No person connected with the Leadership Stock Program or this Administrative Guide in any capacity, including, but not limited to, the Company and its directors, officers, agents and employees makes any representation, commitment, or guarantee that any tax treatment, including, but not limited to, federal, state and local income, estate and
gift tax treatment, will be applicable with respect to amounts paid to or for the benefit of a Participant or Beneficiary under the Leadership Stock Program, or that such tax treatment will apply to or be available to a Participant or Beneficiary on account of participation in the Leadership Stock Program.

  

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11.6           Tax Withholding

Kodak will pay the taxes required to be withheld with respect to an Award under the Leadership Stock Program by reducing a portion of the Units otherwise due the Participant as a result of an Award.  The portion of the Units withheld will equal in amount the taxes required to be withheld.  The Units which are so withheld
will be valued at the Fair Market Value of the Common Stock on the date of the payment of the Award.

11.7           Section 409A Compliance

The Awards described in this Administrative Guide are intended to comply with Section 409A of the Internal Revenue Code to the extent such arrangements are subject to that law, and this Administrative Guide shall be interpreted and administered consistent with such intention, and in accordance with Eastman Kodak Company’s Policy Regarding
Section 409A Compliance.   The Company may unilaterally amend this Administrative Guide for purposes of compliance if, in its sole discretion, Kodak determines that such amendment would not have a material adverse effect with respect to Participants’ rights under the Administrative Guide.

  

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