Document:

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                                                                   EXHIBIT 10.02

                            EASTMAN CHEMICAL COMPANY

                            EASTMAN PERFORMANCE PLAN
                (AMENDED AND RESTATED EFFECTIVE FEBRUARY 1, 2001)
                           (AMENDED FEBRUARY 5, 2003)

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                            EASTMAN PERFORMANCE PLAN

                                Table of Contents

<TABLE>

<S>               <C>                                                                                          <C>
Article 1         Introduction...............................................................................

Article 2         Definitions................................................................................

Article 3         Eligibility................................................................................

Article 4         Determination of Plan Payout...............................................................

Article 5         Mechanism of Plan Payout...................................................................

Article 6         Claim Against Performance Payment..........................................................

Article 7         Inability to Locate Payee..................................................................

Article 8         Plan Document Controls.....................................................................

Article 9         Right to Amend or Terminate................................................................

Article 10        No Employment Rights.......................................................................

Article 11        Conclusiveness of Records..................................................................

Article 12        Administration, Actions by the Company.....................................................

Appendix A...................................................................................................

Appendix B...................................................................................................
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ARTICLE 1. INTRODUCTION.

The Eastman Performance Plan, as set forth in this document, has been approved
by the Board of Directors of Eastman Chemical Company (the "Company") as a
variable compensation program which provides eligible employees with tangible
recognition for their contributions to the success of the Company.

The Company's Board of Directors is responsible for approving the declaration of
Plan Payouts under this Plan each year, except for Plan payouts to executive
officers of the Company, which shall be approved by the Compensation Committee.
No declaration of Plan Payout by the Board or the Compensation Committee for any
given year shall commit the Board or the Compensation Committee to any given
level of Plan Payout in future years.

ARTICLE 2. DEFINITIONS.

2.00     AFFILIATED COMPANY. See Section 2.28A.

2.01     BOARD. The Board of Directors of the Company.

2.02     RESERVED.

2.03     CAPITAL. Capital shall designate the funds invested in the Company
through either debt or equity, including funds loaned to the Company from
financial institutions or through the issuance of bonds, debentures or other
private debt instruments, plus the shareholders' cumulative investment in the
Company through the ownership of all outstanding shares of all classes of stock.

2.04     CODE. The Internal Revenue Code of 1986, as amended.

2.05     COLLEGE COOPERATIVE STUDENT. College Cooperative Student shall refer to
an employee who is a college student pursuing studies of interest to the Company
and who generally works a full-time schedule on an alternate work/school block
basis.

2.06     COMPANY. Eastman Chemical Company or its corporate successors.
Notwithstanding the foregoing, whenever reference is made in this Plan to "the
Company" in the context of financial performance, e.g., "the Company's capital
debt", the "Company" shall mean Eastman Chemical Company and all of its
affiliates that are included on its consolidated financial statements.

2.07     RESERVED.

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2.08     COMPENSATION COMMITTEE. The Compensation and Management Development
Committee of the Board, or such other committee designated by the Board,
authorized to administer the Plan as provided herein.

2.09     COST OF CAPITAL. The Cost of Capital reflects the cost of debt and the
cost of equity, expressed as a percentage reflecting the percentage of interest
charged on debt and the percentage of expected return on equity.

2.10     RESERVED.

2.11     EARNINGS FROM CONTINUING OPERATIONS. Earnings from Continuing
Operations shall be defined as the total sales of the Company minus the costs of
all operations of any nature used to produce such sales, including taxes, plus
after-tax interest associated with the Company's capital debt.

2.12     RESERVED.

2.13     EASTMAN INVESTMENT AND EMPLOYEE STOCK OWNERSHIP PLAN OR EIP/ESOP. The
Eastman Investment and Employee Stock Ownership Plan, a qualified savings and
employee stock ownership plan under Sections 401(a), 401(k), and 4975 of the
Code, including any amendments which may from time to time be adopted thereto.

2.14     RESERVED.

2.15     ELIGIBLE EMPLOYEE. Eligible Employees shall be all those individuals
who meet the eligibility criteria set forth under Article 3; provided however,
that nonresident aliens working outside of the United States shall not be
defined as Eligible Employees for the purposes of this Plan.

2.16     RESERVED.

2.17     LIMITED SERVICE EMPLOYEE. Limited Service Employee shall refer to any
individual hired by the Company for the specific purpose of meeting needs of
Nine Hundred (900) hours or less in any consecutive twelve (12) month period and
who is designated as a Limited Service Employee when hired.

2.18     PARTICIPATING AFFILIATES. Participating Affiliates shall signify all
those Subsidiaries or Affiliated Companies which from time to time accept the
provisions of the Plan as applying to the employees of such Subsidiary or
Affiliated Company.

2.19     PARTICIPATING EARNINGS. Participating Earnings for a given Performance
Year shall be an Eligible Employee's Participating Earnings set forth in
Appendix A for such Performance Year.

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2.20     PAYOUT BASIS. The Payout Basis shall signify the applicable percentage
set forth in accordance with the Payout Table contained in Section 4.04.

2.20A    PAYOUT TABLE. The Payout Table shall be that Table set forth under
Section 4.04 providing for the correlation between the Performance Indicator and
the Payout Basis.

2.21     PERFORMANCE INDICATOR. The Performance Indicator shall mean the Return
on Capital minus the Cost of Capital. Such calculation shall be expressed as a
percentage, which shall be calculated to the third place after the decimal point
(i.e., xx.xxx%), and then rounded to the second place after the decimal point
(i.e., xx.xx%).

2.22     PERFORMANCE YEAR. The Performance Year shall be the calendar year,
running from January 1 through December 31, with respect to which the financial
performance of the Company shall be determined.

2.23     PLAN.  The Eastman Performance Plan.

2.24     PLAN PAYOUT. The Plan Payout shall consist of those monies to which the
Eligible Employee shall be entitled in accordance with the provisions of this
Plan.

2.25     REGULAR FULL-TIME EMPLOYEE. Regular Full-Time Employee shall refer to
those individuals who are defined as such on the payrolls of the Company or a
Participating Affiliate and who work a regular schedule of:

         (a)      40 or more hours per week (or shorter time periods where
         required by law, by Company needs, or by the employee's health); or

         (b)      Alternative work schedules such as alternating 36 and 48-hour
         workweeks comprised of 12-hour days.

2.26     REGULAR PART-TIME EMPLOYEE. Regular Part-Time Employee shall refer to
those individuals who are defined as such on the payroll of the Company or a
Participating Affiliate, who work a regular schedule of less than 40 hours per
week, and who are not defined as Regular Full-Time Employees under Section 2.25.

2.27     RETURN ON CAPITAL. The Return on Capital shall mean the return produced
by funds invested in the Company and shall be determined as Earnings from
Continuing Operations, as defined in Section 2.11, divided by the Average
Capital Employed. Average Capital Employed shall be derived by adding the
Company's capital debt plus equity at the close of the last day of the year
preceding the Performance Year, to the Company's capital debt plus equity at the
close of the last day of the present Performance Year, with the resulting sum
being divided by two. Capital debt is defined as the sum of Borrowing by the
Company Due Within One Year and Long-Term Borrowing, as designated on the
Company's balance sheet. The resulting ratio shall be multiplied by One Hundred
(100) in order to convert such

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to a percentage. Such percentage shall be calculated to the third place after
the decimal point (i.e., xx.xxx%), and then rounded to the second place after
the decimal point (i.e., xx.xx%).

2.28     SPECIAL PROGRAM EMPLOYEE. Special Program Employee shall refer to a
high school study-work student, a drafting trainee employed to work one quarter
or semester, a clerical assistant trainee hired to work for one quarter or
semester, a summer technical employee, a visiting scientist, or a normal
temporary employee hired for a limited period.

2.28A    SUBSIDIARY OR AFFILIATED COMPANY. Subsidiary or Affiliated Company
shall mean (i) any business organization which is required to be affiliated with
Eastman Chemical Company under Code Sections 414(a) or (b); and (ii) any joint
venture or other business organization in which Eastman Chemical Company or an
entity described in clause (i) has a direct or indirect stock ownership or
capital and profits interest of at least 20%. Not every Subsidiary or Affiliated
Company is a Participating Affiliate under this Plan. Regardless of Subsidiary
or Affiliated status, the Eastman Performance Plan shall not apply or be
extended to employees who are under a collective bargaining agreement (unless
the express terms of such agreement so require). In addition, the Eastman
Performance Plan shall not apply or be extended to any subsidiary, division, or
plant site specified in Exhibit B to this Plan, entitled "Excluded
Participants."

2.29     TERMINATION ALLOWANCE PLAN OR TAP. Termination Allowance Plan or TAP
shall mean the Termination Allowance Plan adopted by the Company effective
January 1, 1994, and as amended thereafter from time to time.

ARTICLE 3. ELIGIBILITY.

3.01     BASIC ELIGIBILITY

All Regular Full-Time Employees and Regular Part-Time Employees of Eastman
Chemical Company and any other Participating Affiliates as may from time to time
participate under this Plan, are eligible to receive a Plan Payout as described
herein if they:

         (a)      Meet all of the following requirements;

                  (i)      Are employed by Eastman Chemical Company or one of
                  the Participating Affiliates on the last scheduled workday for
                  such employee during the Performance Year; and

                  (ii)     Receive Participating Earnings with respect to the
                  Performance Year; and

                  (iii)    Are living at 11:59 p.m. on the last scheduled
                  workday for such Employee during the Performance Year (e.g.,
                  if an Employee regularly works a Monday to Friday shift, his
                  last scheduled workday for the 1996 Performance Year would be
                  Tuesday, December 31, 1996);

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                  or

         (b)      Meet the requirements of Section 3.02.

         (c)      Are not on Company Final Warning as of December 31 of
         the Performance Year.

3.02     SPECIAL ELIGIBILITY

Regular Full-Time Employees and Regular Part-Time Employees who are not actively
employed with the Company or a Participating Affiliate as of December 31 of the
Performance Year are eligible to participate under the provisions of this Plan
provided that they meet one of the following criteria:

         (a)      Such employee has retired in accordance with the Eastman
         Retirement Assistance Plan on or after February 1 of the Performance
         Year; or

         (b)      Such employee has exhausted Short-Term Disability benefits
         during the Performance Year and:

                  (i)      Is approved for benefits under the Eastman Long-Term
         Disability Plan; or

                  (ii)     Is not approved for benefits under the Eastman
         Long-Term Disability Plan and is terminated by the Company due to lack
         of prescribed work; or

         (c)      Such employee's employment with the Company was terminated
         during the Performance Year and as a result of such termination the
         employee becomes entitled to a Termination Allowance Benefit under the
         Company's Termination Allowance Plan; or

         (d)      All of the following conditions are met: (i) an employee's
         employment with the Company is terminated during the Performance Year
         under a layoff as defined in Section 4.01 of TAP, a special separation
         as defined in Section 4.02 of TAP, or a divestiture as defined in
         Section 4.03 of TAP; (ii) such employee does not become entitled to a
         Termination Allowance Benefit under TAP; and (iii) management of the
         Company nevertheless resolves in writing that such employee shall be
         entitled to participate in the Performance Plan for such Performance
         Year upon meeting such conditions as management shall determine in its
         sole discretion. For this purpose, "management of the Company" shall
         mean any of the following: the Board of Directors of the Company, a
         committee of the Board; a committee of the Company responsible for
         benefits plans oversight; or an officer of the Company; or

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         (e)      Such employee is (i) paid on a United States-based salary
         structure, and (ii) is temporarily employed with a non-participating
         affiliate of the Company and serving outside the borders of the United
         States at the direction or request of the Company or any Participating
         Affiliate; or

         (f)      Such employee's employment with the Company was terminated
         during the Performance Year in order to accompany or follow their
         Eastman employee spouse who is transferred to a company unit or
         subsidiary or affiliated company in a different geographic area which
         is not a Participating Affiliate.

3.03     TRANSFER INTO PLAN

Employees who transfer to the Company during the course of any Performance Year
from a subsidiary or affiliated company which is not a Participating Affiliate
in the Plan will be eligible for the Plan Payout payable for the Performance
Year if they satisfy the eligibility requirements of Section 3.01 or 3.02 above.
Earnings and allowances received from such subsidiary or affiliated company are
not included in Participating Earnings.

3.04     TRANSFER FROM PLAN

Employees who are transferred during any Performance Year from the Company to
employment with a subsidiary or affiliated company which is not a Participating
Affiliate will qualify for the Plan Payout payable for that Performance Year,
provided that they are employed full-time or part time by the Subsidiary or
Affiliated Company on the last scheduled workday for such employee during the
Performance Year or meet the requirements of clause (a), (b), or (c) of the
immediately following paragraph. However, earnings and allowances received from
such subsidiary or affiliated company are not included in Participating
Earnings.

If such a transferred regular full time or regular part time employee terminates
employment with the Subsidiary or Affiliated Company prior to the last scheduled
workday of the Performance Year for such employee, then such employee shall
nevertheless be eligible to participate under this Plan if the employee meets
one of the following criteria:

         (a)      Such employee has retired in accordance with the defined
         benefit retirement plan for the Subsidiary or Affiliated Company

         (b)      Such employee was terminated during the Performance Year and
         as a result of such termination, the employee becomes eligible for a
         benefit from such Subsidiary or Affiliated Company which in the
         judgment of the Compensation Committee or its delegate is comparable to
         the benefits under the Company's Termination Allowance Plan.

         (c)      Such employee has exhausted Short-Term Disability benefits
         during the Performance Year; and is approved for benefits under the
         Subsidiary's or Affiliated Company's Long-Term Disability Plan; or is
         not approved for benefits under the Subsidiary or Affiliated Company's
         Long-Term Disability Plan and is terminated due to lack of prescribed
         work.

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3.05  Exclusions

Limited Service Employees, Special Program Employees, College Cooperative
Employees, and all other employees of the Company and Participating Affiliates
not defined as Regular Full-Time Employees or Regular Part-Time Employees are
not eligible to receive a Plan Payout as authorized herein unless reclassified
before December 31 of the Performance Year into a class of employees eligible to
receive a Plan Payout in accordance with Sections 3.01 and 3.02. For such
reclassified employees, except those employees who were classified as Limited
Service Employees prior to such reclassification, earnings before
reclassification are included in Participating Earnings.

The Eastman Performance Plan shall not apply or be extended to employees who are
under a collective bargaining agreement (unless the express terms of such
agreement so require). In addition, the Eastman Performance Plan shall not apply
or be extended to any subsidiary, division, or plant site specified in Exhibit B
to the Plan, entitled "Excluded Participants."

3.06     PARTICIPATION OF RECENTLY HIRED EMPLOYEES

Notwithstanding any language to the contrary contained herein, for the
Performance Year in which an Eligible Employee is first hired by the Company or
by a Participating Affiliate, the Eligible Employee shall not receive a Plan
Payout. For the first full Performance Year after the Eligible Employee's date
of hire, the Eligible Employee shall receive a full (100%) Plan Payout as
calculated under Section 4.06(a). Such allocation made shall be paid entirely in
cash pursuant to the provisions of Section 5.01.

3.07     TERMINATION OF EMPLOYMENT SUBSEQUENT TO PERFORMANCE YEAR

Any Eligible Employee who has met the requirements for participation contained
in this Article 3 for the Performance Year and with whom the employment
relationship with the Company or any Participating Affiliate is subsequently
terminated for any reason prior to the distribution of the Plan Payout for that
Performance Year shall be entitled to the Plan Payout for that Performance Year.
Payment of such Plan Payout shall be made in accordance with the provisions set
forth under Section 5.01.

3.08     ELIGIBILITY IN CASE OF DEATH

Notwithstanding any language contained herein, if an employee dies before
qualifying for the Plan Payout for the Performance Year, the Company may, in its
sole discretion, elect to pay all, part, or none of the Plan Payout to the
estate of the employee or to a designated beneficiary thereof. However, if an
Eligible Employee dies after qualifying for but before receiving a given Plan
Payout, such Plan Payout will be paid to the decedent's estate as a legal right.

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ARTICLE 4. DETERMINATION OF PLAN PAYOUT.

4.01     IN GENERAL

The Plan Payout, if any, is intended to reflect the financial performance of the
Company over the course of the Performance Year. Financial performance shall be
measured in terms of the Performance Indicator. Such Plan Payout, if any, shall
be calculated as determined under Section 4.06. The resulting Plan Payout for
each Eligible Employee shall be distributed pursuant to the provisions of
Article 5 below.

4.02     DETERMINATION OF PERFORMANCE INDICATOR

Before or as soon as practicable after the first day of a Performance Year, the
Compensation Committee shall establish in writing for that Performance Year, the
Performance Indicator (including the Cost of Capital for the Performance Year),
the Payout Basis, the General Payout Table, and the formula or method for
calculating the Plan Payout payable to each Eligible Employee if certain levels
of the Performance Indicator are attained.

The Performance Indicator for any Performance Year shall be the Return on
Capital (as defined in Section 2.27) minus the Cost of Capital (as defined in
Section 2.09), expressed as a percentage, which shall be calculated to the third
place after the decimal point (i.e., xx.xxx%), and then rounded to the second
place after the decimal point (i.e., xx.xx%). Except as otherwise provided in
the next sentence, measurement of the Company's performance against the
performance goals established by the Committee shall be objectively determinable
and, to the extent they are expressed in standard accounting terms, shall be
determined according to generally accepted accounting principles as in existence
on the date on which the performance goals are established and without regard to
any changes in such principles after such date. In determining whether the
performance goals established by the Committee have been met, the Committee may
in its discretion adjust the financial results for a Performance Year to exclude
the effect of unusual charges or income items or other events (including,
without limitation, acquisitions or divestitures), which are distortive of
financial results for the Performance Year.

4.03     DETERMINATION OF PAYOUT BASIS

The Payout Basis, expressed as a percentage as follows, shall be determined
according to the Payout Table shown in Section 4.04. If the Return on Capital
minus Cost of Capital is not an even percentage, then the exact Payout Basis
shall be calculated by straight line interpolation, and shall be calculated to
the third place after the decimal point (i.e., xx.xxx%), and then rounded to the
second place after the decimal point (i.e., xx.xx%).

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4.04     PAYOUT TABLE

               RETURN ON CAPITAL
            MINUS COST OF CAPITAL                              PAYOUT BASIS*
                (PERCENTAGE)                                       CASH %
                ------------                                       ------
                 10 or More                                          25
                     9                                               22
                     8                                               19
                     7                                               17
                     6                                               15
                     5                                               13
                     4                                               11
                     3                                               9.5
                     2                                                8
                     1                                               6.5
                     0                                                5
                     -1                                               4
                     -2                                               3
                     -3                                               2
                     -4                                               1
                    <-5                                               0
                    -

* Actual Payout percentages may vary based on pay at risk as determined
under Section 4.06.

4.05     RESERVED

4.06     CALCULATION OF INDIVIDUAL PLAN PAYOUT

Calculations of the individual Plan Payout shall be done as follows:

The Plan Payout for each Eligible Employee shall be calculated by multiplying
the Participating Earnings of the Eligible Employee for the Performance Year by
a fraction, the numerator of which is the Payout Basis derived from the Payout
Table contained in Section 4.04 and the denominator of which is One (1) minus
that percentage of the Eligible Employee's pay at risk as of the Performance
Year as defined under the regular employment practices of the Company. Such
fraction shall be calculated to the third place after the decimal point (i.e.,
xx.xxx%), and then rounded to the second place after the decimal point (i.e.,
xx.xx%). Thus, the calculation shall be expressed as follows:

         Plan Payout (Total)  = Participating Earnings x Payout Basis
                                                         -------------
                                                         1  -  % of Pay at Risk

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4.07     ESTIMATED PLAN PAYOUT

The Vice President and Chief Financial Officer, or his delegate shall, on or
about the close of each quarter of the Company's fiscal year, estimate the
annual Payout Basis for the Plan based upon financial performance for the
Performance Year to date. The estimates thus generated shall subsequently be
communicated to Eligible Employees in such a manner as determined by the
Company.

4.08     FINAL DETERMINATIONS BY BOARD AND BY COMPENSATION COMMITTEE

As soon as practicable following the availability of performance results for the
completed Performance Year, the Committee shall determine the Company's
performance in relation to the Performance Indicator for that period and certify
in writing the Company's performance. Such certification shall include
confirmation of the Return on Capital (determined as described in Section 2.27),
and final approval and declaration of the Plan Payout to executive officers.

Notwithstanding any language contained herein, final approval for any Plan
Payout to Eligible Employees other than executive officers determined in
conjunction with this Article 4 must be given by the Board of Directors of the
Company. No declaration of Plan Payout by the Board or the Compensation
Committee for any given year shall commit the Board or the Compensation
Committee to any given level of Plan Payout in future years.

4.09     SHAREOWNER APPROVAL

No Plan Payout payable in cash shall be paid under the Plan to any "Covered
Employee" (within the meaning of Section 162(m) of the Code) for any Performance
Year after 1996 and through and including 1999, unless and until the material
terms (within the meaning of Section 162(m) of the Code) of the Plan, including
the performance goals on which the Plan Payout would be based, are disclosed to
the Company's shareowners and are approved by the shareowners by a majority of
the votes cast.

ARTICLE 5. MECHANISM OF PLAN PAYOUT.

5.01     PLAN PAYOUT

Approved Plan Payouts for any Performance Year shall be made in the subsequent
Performance Year and shall, at the discretion of the Company, be paid out in
March of the subsequent Performance Year in cash by check or into an account
designated by the Eligible Employee and held with a commercial bank. The Plan
Payout shall reflect any deductions made by the Company for purposes of Federal
or other taxation or pursuant to request for deferral of benefits made by the
Eligible Employee under the provisions of Article 5.02.

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5.02     EASTMAN INVESTMENT AND EMPLOYEE STOCK OWNERSHIP PLAN AND EASTMAN
EXECUTIVE DEFERRED COMPENSATION PLAN PARTICIPATION

Eligible Employees who are also eligible to participate in the Eastman
Investment and Employee Stock Ownership Plan may elect to defer the Plan Payout
for a given Performance Year into the Eastman Investment and Employee Stock
Ownership Plan, to the extent provided under such Plan. Eligible Employees who
are also eligible to participate in the Eastman Executive Deferred Compensation
Plan may elect to defer the Plan Payout for a given Performance Year into the
Eastman Executive Deferred Compensation Plan, to the extent provided under such
Plan. Any funds deferred pursuant to the provisions of this Section 5.02 shall
become subject to the rules and regulations of the EIP/ESOP or the Executive
Deferred Compensation Plan, and shall reflect any deductions made for purposes
of payment of social security taxes due under the Code.

5.03     RESERVED

5.04     DEFERRAL OF AWARD

Notwithstanding anything in this Article 5 to the contrary, if the Compensation
Committee determines that the current payment of any award under this Article 5
could result in the Eligible Employee's receiving compensation in excess of the
maximum amount deductible by the Company for Federal income tax purposes, then
such Committee in its sole discretion may determine that such award shall not be
paid currently, and instead shall be transferred to the Employee's account under
the Eastman Executive Deferred Compensation Plan (and thereafter shall be
subject to the provisions of the Executive Deferred Compensation Plan).

ARTICLE 6.          CLAIM AGAINST PERFORMANCE PAYMENT.

The payment of any Plan Payout which may be subject in whole or in part to
execution, lien, assignment, or other claim, notice of which is received by the
Company on or before the Plan Payout payment date, may be delayed for an
appropriate time in order to facilitate proper handling of the claim and in
order to make any necessary adjustments.

ARTICLE 7.        INABILITY TO LOCATE PAYEE.

If the Company is unable to make payment hereunder to any Eligible Employee to
whom a Plan Payout is due because the Company is unable to ascertain the
whereabouts of such Eligible Employee after reasonable efforts have been made,
such payment otherwise due shall be forfeited one (1) year after the date the
Plan Payout was to be made.

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ARTICLE 8.          PLAN DOCUMENT CONTROLS.

In the event of a conflict between this Plan document and any other information
or enrollment materials provided to the Eligible Employees (whether written or
oral), the provisions of this document shall control.

ARTICLE 9. RIGHT TO AMEND OR TERMINATE.

Although the Company intends to continue the Plan indefinitely, the Plan may be
terminated, suspended or modified, in whole or in part, at any time for any
reason by action of the Compensation Committee.

ARTICLE 10. NO EMPLOYMENT RIGHTS.

Nothing contained in this Plan shall give any Eligible Employee the right to be
retained in the employment of the Company or affect the right of the Company to
dismiss any employee. The adoption and maintenance of this Plan shall not
constitute a contract between the Company and the Eligible Employee for
consideration for, or inducement or condition of, the employment of the Eligible
Employee.

ARTICLE 11. CONCLUSIVENESS OF RECORDS.

The records of the Company with respect to financial data, Participating
Earnings, and all other relevant matters shall be conclusive for purposes of the
administration of the Plan described in this document.

ARTICLE 12. ADMINISTRATION; ACTIONS BY THE COMPANY.

 The Committee shall have full power and authority to administer and interpret
the provisions of the Plan and to adopt such rules, regulations, agreements,
guidelines, and instruments for the administration of the Plan and for conduct
of its business as the Committee deems appropriate or advisable. The Committee
sets and interprets policy, establishes annual performance goals, evaluates
Company performance against the goals, and confirms and certifies the extent to
which Company performance goals were satisfied under the Plan.

The Committee shall have full power to delegate to any officer or employee of
the Company the authority to administer and interpret the procedural aspects of
the Plan, subject to the Plan's terms, including adopting and enforcing rules to
decide procedural and administrative issues.

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                                   APPENDIX A.

                  PARTICIPATING AND NON-PARTICIPATING EARNINGS

PARTICIPATING EARNINGS

Pay  for all time worked including:
         Wages and salaries
         Pay for clothes change
         Pay for time spent attending meetings
         Paid lunch periods
         Pay for time in Eastman Medical Department (scheduled hours only)
         Pay for work on community campaigns and special community projects (at
         company request)
Pay when serving as pallbearer (at company request)
Overtime pay
Shift premiums
Shift supplements
Compensating time off
Holiday pay, premiums, and allowances (including payment for holiday during a
full week of absence)
Vacation pay (including payment in lieu of vacation and
excluding purchased vacation cashout)
Pay for travel status
Lack of work allowance
Time spent by Apprentices in supervised tests or labs
Medical pay allowance (as recommended and arranged by the Eastman Medical
Department)
Jury duty
Call-in allowance
On-call allowance
Adjustment for amount of time spent on Final Warning (for 2000 Performance Year
only)1

Note 1:  For the 2000 Performance Year only, Participating Earnings does not
         include pay during the period of time while a Employee is on Final
         Warning Status, as determined under the Company's regular employment
         practices. This adjustment is made by taking an Employee's
         Participating Earnings for the 2000 Performance Year, and excluding a
         pro rata portion based on the amount of time that the Employee was on
         Final Warning Status during such year.

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NON-PARTICIPATING EARNINGS

Eastman Performance Plan payouts
Annual Performance Plan payouts
Omnibus Plan awards such as:
         Stock Option grants
         Restricted Stock grants
         Long-Term Performance Award Plan awards
Tuition refunds
Educational support payments
Termination allowance and special separation allowance
Moving expenses and allowances as the result of domestic relocation
Additions to allowances on prizes for tax purposes
Taxable awards and prizes such as:
         25-year service awards
         40-year service awards
         Safety awards
         Attendance awards
Allowances for excused absences due to:
         accident at work
         death of a relative
         emergency blood donation
         emergency relief activities
         organized color guard
         employee medical or dental appointment
         serving in public office
         personal absences
         temporary military duty
         time spent voting
         voluntary community services
         other allowances not specifically identified under Participating
         Earnings
Allowances for expatriates:
         cost-of-living allowance
         housing allowance
         tax makeup allowance
         travel allowance
         education allowance
Foreign service premium payments Payment in lieu of notice of termination
Short-Term Disability benefits
Taxable portion of insurance premium paid by company
Workers' Compensation payments and allowances:
         makeup payments
         statutory payments
         supplements

All other payments or allowances not specifically identified as Participating
Earnings

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                                   APPENDIX B.

                              EXCLUDED PARTICIPANTS

         1. All employees assigned to the plant site in South Holland, Illinois,
formerly known as Accurate Dispersions.

         Employees who transfer to the South Holland, Illinois site during the
Performance Year will be eligible to receive an Eastman Performance Plan payment
based on Participating Earnings they accumulated during the Performance Year,
prior to being assigned to the South Holland, Illinois site.

                                      153<PAGE>
                                                                   EXHIBIT 10.05

                              AMENDED AND RESTATED
                  EASTMAN EXECUTIVE DEFERRED COMPENSATION PLAN

                          (AS AMENDED FEBRUARY 6, 2003)

                            EASTMAN CHEMICAL COMPANY

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<PAGE>
                              AMENDED AND RESTATED
                  EASTMAN EXECUTIVE DEFERRED COMPENSATION PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section           Title                                                                                      Page
-------           -----                                                                                      ----
<S>               <C>                                                                                        <C>
Preamble.........................................................................................................

Section 1.        Definitions....................................................................................

Section 2.        Deferral of Compensation.......................................................................

Section 3.        Time of Election of Deferral...................................................................

Section 4.        Hypothetical Investments.......................................................................

Section 5.        Deferrals and Crediting Amounts to Accounts....................................................

Section 6.        Deferral Period................................................................................

Section 7.        Investment in the Stock Account and Transfers Between Accounts.................................

Section 8.        Payment of Deferred Compensation...............................................................

Section 9.        Payment of Deferred Compensation After Death...................................................

Section 10.       Acceleration of Payment for Hardship...........................................................
</TABLE>

                                      155

<PAGE>

<TABLE>
<CAPTION>
Section           Title                                                                                      Page
-------           -----                                                                                      ----
<S>               <C>                                                                                        <C>
Section 11.       Non-Competition and Non-Disclosure Provision...................................................

Section 12.       Participant's Rights Unsecured.................................................................

Section 13.       No Right to Continued Employment...............................................................

Section 14.       Statement of Account...........................................................................

Section 15.       Deductions.....................................................................................

Section 16.       Administration.................................................................................

Section 17.       Amendment......................................................................................

Section 18.       Governing Law..................................................................................

Section 19.       Change in Control..............................................................................

Section 20.       Compliance with SEC Regulations................................................................

Section 21.       Successors and Assigns.........................................................................
</TABLE>

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<PAGE>

                              AMENDED AND RESTATED
                  EASTMAN EXECUTIVE DEFERRED COMPENSATION PLAN

         PREAMBLE. The Amended and Restated Eastman Executive Deferred
Compensation Plan is an unfunded, nonqualified deferred compensation arrangement
for eligible employees of Eastman Chemical Company ("the Company") and certain
of its subsidiaries. Under the Plan, each Eligible Employee is annually given an
opportunity to defer payment of part of his or her cash compensation.

In addition, this document reflects the merger into this Plan of an unfunded,
non-qualified deferred compensation plan known as the Eastman ESOP Excess Plan
(the "ESOP Excess Plan"), which restores to eligible employees allocations that
cannot be made under the Eastman Employee Stock Ownership Plan because of the
limitations of Section 401(a)(17) of the Internal Revenue Code of 1986, as
amended. Such merger occurred as of October 1, 2001, and following such merger,
the amounts credited to the Participant's Account under the ESOP Excess Plan
shall be treated as a separate account (the ESOP Account) until January 1, 2003,
at which time such accounts shall be merged into the Participant's EDCP Account
hereunder. In addition, future ESOP allocations, if any, that would have been
made under the ESOP Excess Plan shall, after October 1, 2001, be made to the
Participant's EDCP Account under Section 2.2 of this Plan.

This Plan originally was adopted effective January 1, 1994, and is now amended
and restated effective as of August 1, 2002.

SECTION 1.  DEFINITIONS.

         SECTION  1.1. "Account" means the EDCP Account and the ESOP Account.
Each such Account is further sub-divided into an Interest Account and a Stock
Account. Effective as of January 1, 2003, each Participant's ESOP Account will
be merged into such Participant's EDCP Account.

         SECTION 1.2.  "Board" means the Board of Directors of the Company.

         SECTION 1.3.  "Change In Control" means a change in control of the
Company of a nature that would be required to be reported (assuming such event
has not been "previously reported") in response to Item 1 (a) of a Current
Report on Form 8-K, as in effect on August 1, 1993, pursuant to Section 13 or
15(d) of the Exchange Act; provided that, without limitation, a Change In
Control shall be deemed to have occurred at such time as (i) any "person" within
the meaning of Section 14(d) of the Exchange Act, other than the Company, a
subsidiary of the Company, or any employee benefit plan(s) sponsored by the
Company or any subsidiary of the Company, is or has become the "beneficial
owner," as defined in Rule 13d-3 under the Exchange Act, directly or indirectly,
of 25% or more of the combined voting power of the outstanding securities of the
Company ordinarily having the right to vote at the election of directors;
provided, however, that the following will not constitute a Change In Control:
any acquisition by any corporation if, immediately following such acquisition,
more than 75% of the outstanding securities of the acquiring corporation
ordinarily having the right to vote in the election of directors is beneficially
owned by all or substantially all of those persons who, immediately prior to
such acquisition, were the beneficial owners of the outstanding securities of
the Company ordinarily having the right to vote in the election of directors, or
(ii) individuals who constitute the Board on January 1, 1994 (the "Incumbent
Board") have ceased for any reason to constitute at least a majority thereof,

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<PAGE>
provided that: any person becoming a director subsequent to January 1, 1994
whose election, or nomination for election by the Company's stockholders, was
approved by a vote of at least three-quarters (3/4) of the directors comprising
the Incumbent Board (either by a specific vote or by approval of the proxy
statement of the Company in which such person is named as a nominee for
director without objection to such nomination) shall be, for purposes of the
Plan, considered as though such person were a member of the Incumbent Board,
(iii) upon approval by the Company's stockholders of a reorganization, merger
or consolidation, other than one with respect to which all or substantially all
of those persons who were the beneficial owners, immediately prior to such
reorganization, merger or consolidation, of outstanding securities of the
Company ordinarily having the right to vote in the election of directors own,
immediately after such transaction, more than 75% of the outstanding securities
of the resulting corporation ordinarily having the right to vote in the
election of directors; or (iv) upon approval by the Company's stockholders of a
complete liquidation and dissolution of the Company or the sale or other
disposition of all or substantially all of the assets of the Company other than
to a subsidiary of the Company. Notwithstanding the occurrence of any of the
foregoing, the Compensation Committee may determine, if it deems it to be in
the best interest of the Company, that an event or events otherwise
constituting a Change In Control shall not be so considered. Such determination
shall be effective only if it is made by the Compensation Committee prior to
the occurrence of an event that otherwise would be or probably will lead to a
Change In Control or after such event if made by the Compensation Committee a
majority of which is composed of directors who were members of the Board
immediately prior to the event that otherwise would be or probably will lead to
a Change In Control.

         SECTION 1.4.  "Common Stock" means the $.01 par value common stock of
the Company.

         SECTION 1.5.  "Company" means Eastman Chemical Company.

         Section 1.6.  "Compensation Committee" shall mean the Compensation and
Management Development Committee of the Board.

         SECTION 1.7.  "Deferrable Amount" means, for a given fiscal year of the
Company, an amount equal to the sum of the Eligible Employee's (i) annual base
cash compensation; (ii) annual cash payments under the Eastman Performance Plan,
the Company's Annual Performance Plan, the Company's Unit Performance Plan, the
Company's Management Carried Interest Plan, and any sales incentive plan of the
Company in which an Eligible Employee participates; (iii) stock and stock-based
awards under the Omnibus Plan which, under the terms of the Omnibus Plan and the
award, are payable in cash and required or allowed to be deferred into this
Plan; (iv) signing bonus and/or retention bonus, if any, received in connection
with his or her initial employment with the Company or the acquisition by the
Company of such person's previous employer; (v) to the extent approved in his or
its sole discretion by the Vice President, Human Resources, or by the
Compensation Committee with respect to an executive officer, any Severance Pay;
and (vi) cash awards under the Company's Employee/Team Recognition Program and
Chairman & CEO's Award Program. In each case, however, the Deferrable Amount
shall not include any amount that must be withheld from the Eligible Employee's
wages for income or employment tax purposes.

         SECTION 1.8.  "Eligible Employee" means a U.S.-based employee of the
Company or any of its U.S. Subsidiaries who at any time (i) has a salary grade

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<PAGE>

classification of SG 49 or above; or (ii) is not covered under clause (i), but
who was an Eligible Employee under the Kodak Executive Deferred Compensation
Plan, as in effect on January 1, 1994. Any employee who becomes eligible to
participate in this Plan and in a future year does not qualify as an Eligible
Employee because of a change in position level shall nevertheless be eligible to
participate in such year.

         SECTION 1.9.  "Enrollment Period" means the period designated by the
Compensation Committee each year, provided however, that such period shall end
on or before the last business day before the last Sunday in December of each
year.

         SECTION 1.10.  "Exchange Act" means the Securities Exchange Act of
1934, as amended.

         SECTION 1.11.  "Initial Enrollment Period" means, for an Eligible
Employee who is newly employed by the Company, the period beginning prior to
such date of employment and ending 30 days after the date of employment. For a
person who becomes an employee of the Company or a U.S. Subsidiary through an
acquisition by the Company of such person's previous employer, "Initial
Enrollment Period" with respect to deferral of any signing bonus or retention
bonus payable to such person shall mean the period beginning prior to such date
of acquisition, and ending 30 days after such date of acquisition.

         SECTION 1.12.  "ESOP" means the Eastman Employee Stock Ownership
portion of the Eastman Investment and Employee Stock Ownership Plan, as the same
now exists or may be amended hereafter.

         SECTION 1.13.  "ESOP Contribution Date" means the date, if any, on
which the Trustee of the ESOP receives the Company's contributions to the ESOP
for a particular Plan Year.

         SECTION 1.14.  "ESOP Payout Percentage" means the percentage amount of
an Eligible Employee's "Compensation" (as defined in the ESOP) to which such
Eligible Employee is entitled as an allocation, whether such allocation is in
the form of cash, Common Stock, or a combination thereof, under the ESOP for a
particular Plan Year of the ESOP.

         SECTION 1.15.  "Excess Compensation, means the excess, if any, of (1)
an Employee's "Participating Earnings," as specified in the ESOP, over (2) the
applicable dollar amount under Section 401(a)(17) of the Internal Revenue Code
of 1986, as amended, which applies to the ESOP for a given plan year of the
ESOP.

         SECTION 1.16.  "Interest Account" means the account established by the
Company for each Participant for compensation deferred or ESOP amounts credited
pursuant to this Plan and which shall bear interest as described in Section 4.1
below. The maintenance of individual Interest Accounts is for bookkeeping
purposes only. Until January 1, 2003, each Participant may have an Interest
Account under both the EDCP Account and ESOP Account.

         SECTION 1.17.  "Interest Rate" means the monthly average of bank prime
lending rates to most favored customers as published in The Wall Street Journal,
such average to be determined as of the last day of each month.

         SECTION 1.18.  "Market Value" means the closing price of the shares of
Common Stock on the New York Stock Exchange on the day on which such value is to
be determined or, if no such shares were traded on such day, said closing price

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<PAGE>

on the next business day on which such shares are traded, provided, however,
that if at any relevant time the shares of Common Stock are not traded on the
New York Stock Exchange, then "Market Value" shall be determined by reference to
the closing price of the shares of Common Stock on another national securities
exchange, if applicable, or if the shares are not traded on an exchange but are
traded in the over-the-counter market, by reference to the last sale price or
the closing "asked" price of the shares in the over-the-counter market as
reported by the National Association of Securities Dealers Automated Quotation
System (NASDAQ) or other national quotation service.

         SECTION 1.19.  "Omnibus Plan" means the Eastman Chemical Company 1994
Omnibus Long-Term Compensation Plan or any successor plan to the Omnibus Plan
providing for awards of stock and stock-based compensation to Company employees.

         SECTION 1.20.  "Participant" means an Eligible Employee who (i) elects
for one or more years to defer compensation pursuant to this Plan; or (ii)
receives an ESOP allocation under Section 2.2 of this Plan.

         SECTION 1.21.  "Plan" means this Amended and Restated Eastman Executive
Deferred Compensation Plan.

         SECTION 1.22.  "Section 16 Insider" means a Participant who is, with
respect to the Company, subject to Section 16 of the Exchange Act.

         SECTION 1.23.  "Stock Account" means the account established by the
Company for each Participant, the performance of which shall be measured by
reference to the Market Value of Common Stock. The maintenance of individual
Stock Accounts is for bookkeeping purposes only. Until January 1, 2003, each
Participant may have a Stock Account under both the EDCP Account and ESOP
Account.

         SECTION 1.24.  "Severance Pay" means any severance or other
compensation owed or agreed to be paid in connection with an Eligible Employee's
termination of employment.

         SECTION 1.25.  "U.S. Subsidiaries" means the United States subsidiaries
of the Company listed on Schedule A.

         SECTION 1.26.  "Valuation Date" means each business day.

SECTION 2.  DEFERRAL OF COMPENSATION; ALLOCATIONS.

         SECTION 2.1.  An Eligible Employee may elect to defer receipt of all or
any portion of his or her Deferrable Amount to the Interest Account and/or Stock
Account within such person's EDCP Account. A Participant may make deferrals
under this Plan regardless of whether the Participant elects deferrals under the
Eastman Investment and Employee Stock Ownership Plan. If an Eligible Employee
terminates employment with the Company or any of its U.S. Subsidiaries, any
previous deferral election with respect to a payment or award under the Eastman
Performance Plan, the Company's Annual Performance Plan, the Company's Unit
Performance Plan, the Company's Management Carried Interest Plan, Omnibus Plan,
and any sales incentive plan of the Company in which an Eligible Employee
participates, shall remain in effect with respect to such items of compensation
payable after termination of employment.

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<PAGE>

         SECTION 2.2.  For any Plan Year in which an Eligible Employee has
Excess Compensation, then at such time, if any, as the Company makes a
contribution to the ESOP with respect to such Plan Year, the Company shall
credit to the Eligible Employee's Stock Account within his EDCP Account under
this Plan, an amount equal to the product of (1) the amount of such Eligible
Employee's Excess Compensation multiplied by (2) the ESOP Payout Percentage.

SECTION 3.  TIME OF ELECTION OF DEFERRAL. An Eligible Employee who wishes to
defer compensation must irrevocably elect to do so during the applicable
Enrollment Period. The Enrollment Period shall end prior to the first day of the
calendar year in which the applicable Deferrable Amount will first be paid,
earned, or awarded. Elections shall be made annually.

Notwithstanding the foregoing, (i) in the first year in which a person becomes
an Eligible Employee by reason of being employed by the Company, the eligible
Employee may elect to defer receipt of all or any portion of his or her
Deferrable Amount earned for services to be performed subsequent to such
election, provided that such election is made no later than the end of the
Initial Enrollment Period; (ii) in the first year in which a person becomes an
Eligible Employee through an acquisition by the Company of such person's
previous employer, the eligible Employee may elect to defer receipt of all or
any portion of his or her signing bonus and/or retention bonus, provided that
(x) the deferred amount represents compensation for services to be performed
subsequent to such election, and (y) such election is made no later than the end
of the Initial Enrollment Period; (iii) if and to the extent the Vice President,
Human Resources or the Compensation Committee approves the deferral of Severance
Pay pursuant to Section 1.7, such approval shall set forth the terms of the
deferral of such Severance Pay; (iv) the initial election for deferral of a cash
award under the Company's Employee/Team Recognition Program or the Chairman &
CEO's Award Program shall be made no later than August 31, 2002.

SECTION 4.  HYPOTHETICAL INVESTMENTS.

         SECTION 4. 1.  INTEREST ACCOUNTS. Amounts in a Participant's Interest
Accounts are hypothetically invested in an interest bearing account which bears
interest computed at the Interest Rate, compounded monthly.

         SECTION 4.2.  STOCK ACCOUNTS. Amounts in a Participant's Stock Accounts
are hypothetically invested in units of Common Stock. Amounts deferred into
Stock Accounts are recorded as units of Common Stock, and fractions thereof with
one unit equating to a single share of Common Stock. Thus, the value of one unit
shall be the Market Value of a single share of Common Stock. The use of units is
merely a bookkeeping convenience; the units are not actual shares of Common
Stock. The Company will not reserve or otherwise set aside any Common Stock for
or to any Stock Account.

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<PAGE>
SECTION 5.  DEFERRALS AND CREDITING AMOUNTS TO ACCOUNTS.

         SECTION 5.1.  Manner of Electing Deferral. An Eligible Employee may
elect to defer compensation by executing and returning to the Compensation
Committee a deferred compensation form provided by the Company. The form shall
indicate (i) the amount and sources of Deferrable Amount to be deferred; (ii)
whether deferral of annual base cash compensation is to be at the same rate
throughout the year, or at one rate for part of the year and at a second rate
for the remainder of the year; and (iii) the portion of the deferral to be
credited to the Participant's Interest Account and Stock Account respectively.
An election to defer compensation shall be irrevocable following the end of the
applicable Enrollment Period, but the portion of the deferral to be credited to
the Participant's Interest Account and Stock Account, respectively, may be
reallocated by the Participant in the manner specified by the Compensation
Committee or its authorized designee through and including the business day
immediately preceding the date on which the deferred amount is credited to the
Participant's Accounts pursuant to Section 5.2.

         SECTION 5.2.  Crediting of Amounts to Accounts. Except as otherwise
provided in this Section with respect to Section 16 Insiders, amounts to be
deferred shall be credited to the Participant's Interest Account and/or Stock
Account, as applicable, within the EDCP Account as of the date such amounts are
otherwise payable. An ESOP allocation which is made pursuant to Section 2.2
shall be credited to the Participant's Stock Account within the EDCP Account as
of the date the Company makes the contribution to the ESOP which triggers the
ESOP allocation under this Plan. Notwithstanding the foregoing, for each Section
16 Insider, each and every Deferrable Amount, when initially credited to the
Participant's EDCP Account, shall be held in a Participant's Interest Account
until the next date that dividends are paid on Common Stock (see Section 7.6 of
the Plan), and on such date the Deferrable Amount that would have been initially
credited to the Participant's Stock Account but for this sentence shall be
transferred, together with allocable interest thereon, to the Participant's
Stock Account, provided that such transfer shall be subject to the restrictions
set forth in Section 7.2.

         SECTION 5.3.  Transfers of Obligations from other Deferred Compensation
Plans. The Compensation Committee hereby delegates to the Company's Vice
President, Human Resources, the authority to permit from time to time the
transfer to the EDCP Account under this Plan from other non-qualified deferred
compensation plans or arrangements maintained by the Company or its affiliates,
any amounts accrued to an Eligible Employee under such other plan or
arrangement. In each case, before permitting such transfer the Company's Vice
President, Human Resources shall determine that such transfer is in the best
interests of the Company, and shall further determine that such transfer to this
Plan is permitted under the terms of such other plan or arrangement.

SECTION 6.  DEFERRAL PERIOD. Subject to Sections 9, 10, and 19 hereof, the
amounts credited to a Participant's Accounts and earnings thereon will be
deferred until the Participant retires or otherwise terminates employment with
the Company or any of its U.S. Subsidiaries. Any such election shall be made
during the applicable Enrollment Period on the deferred compensation form
referenced in Section 5 above. The payment of a Participant's Account shall be
governed by Sections 8, 9, 10, and 19, as applicable.

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<PAGE>
Notwithstanding the foregoing, any fixed date election made by an Eligible
Employee under the Kodak Executive Deferred Compensation Plan shall remain in
force under this Plan, provided he or she continues as an employee of the
Company or any of its U.S. Subsidiaries during the period of deferral. Payment
of such amount pursuant to a deferral election made under such Kodak Plan shall
be made in cash in a single lump sum on the fifth business day in March in the
year following the termination of such deferral period, and the amount of the
lump sum due the Participant shall be valued as of the last Valuation Date in
February in the year following the termination of the deferral period. If such
Participant ceases to be an employee of the Company or any of its U.S.
Subsidiaries prior to the end of the fixed period, Section 8 shall govern the
payment of his or her Accounts.

SECTION 7.  INVESTMENT IN THE STOCK ACCOUNT AND TRANSFERS BETWEEN ACCOUNTS.

         SECTION 7.1.  Election Into the Stock Account. Amounts to be credited
to a Participant's Stock Account, whether by reason of a deferral election by
the Participant or an ESOP allocation by the Company, shall be credited, as of
the date described in Section 5.2, with that number of units of Common Stock,
and fractions thereof, obtained by dividing the dollar amount to be credited
into the respective Stock Account by the Market Value of the Common Stock as of
such date.

         SECTION 7.2.  Transfers Between Accounts. Except as otherwise provided
in this Section, a Participant may direct that all or any portion, designated as
a whole dollar amount, of the existing balance of his or her Interest or Stock
Account be transferred to the other Account, effective as of (i) the date such
election is made, if and only if such election is made prior to the close of
trading on the New York Stock Exchange on a day on which the Common Stock is
traded on the New York Stock Exchange, or (ii) if such election is made after
the close of trading on the New York Stock Exchange on a given day or at any
time on a day on which no sales of Common Stock are made on the New York Stock
Exchange, then on the next business day on which the Common Stock is traded on
the New York Stock Exchange (the date described in (i) or (ii), as applicable,
is referred to hereinafter as the election's "Effective Date").

Such election shall be made in the manner specified by the Committee or its
authorized designee; provided however, that a Section 16 Insider may only elect
to transfer between his or her Accounts if he or she has made no election within
the previous six months to effect an "opposite way" fund-switching (i.e.,
transfer out versus transfer in) transfer into or out of the Stock Account or
the Eastman Stock Funds of the Eastman Investment and Employee Stock Ownership
Plan, or any other "opposite way" intra-plan transfer or plan distribution
involving a Company equity securities fund which constitutes a "Discretionary
Transaction" as defined in Rule 16b-3 under the Exchange Act. A Participant's
election to transfer less than all of the funds in his or her Interest Accounts
to his or her Stock Accounts shall be applied pro rata to the Interest Account
in the Participant's EDCP Account and ESOP Account. The same procedure shall be
followed if the Participant elects to transfer less than all of the funds in his
or her Stock Accounts to his or her Interest Accounts.

In addition, and notwithstanding the foregoing, a Section 16 Insider's
Deferrable Amount that is initially allocated to his or her Interest Account as
provided in Section 5.2, shall be transferred, following such initial

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allocation, from the Participant's Interest Account to his or her Stock Account
in the manner provided in Section 5.2.

         SECTION 7.3.  TRANSFER INTO THE STOCK ACCOUNT. If a Participant elects
pursuant to Section 7.2 to transfer an amount from his or her Interest Accounts
to his or her Stock Accounts, then, effective as of the election's Effective
Date, his or her Stock Accounts shall be credited with that number of units of
Common Stock; and fractions thereof, obtained by dividing the dollar amount
elected to be transferred by the Market Value of the Common Stock on the
Valuation Date immediately preceding the election's Effective Date; and (ii) his
or her Interest Accounts shall be reduced by the amount elected to be
transferred.

         SECTION 7.4.  TRANSFER OUT OF THE STOCK ACCOUNT. If a Participant
elects pursuant to Section 7.2 to transfer an amount from his or her Stock
Accounts to his or her Interest Account, effective as of the election's
Effective Date; (i) his or her Interest Accounts shall be credited with a dollar
amount equal to the amount obtained by multiplying the number of units to be
transferred by the Market Value of the Common Stock on the Valuation Date
immediately preceding the election's Effective Date; and (ii) his or her Stock
Accounts shall be reduced by the number of units elected to be transferred.

         SECTION 7.5.  DIVIDEND EQUIVALENTS. Effective as of the payment date
for each cash dividend on the Common Stock, the Stock Accounts of each
Participant who had a balance in his or her Stock Accounts on the record date
for such dividend shall be credited with a number of units of Common Stock, and
fractions thereof, obtained by dividing (i) the aggregate dollar amount of such
cash dividend payable in respect of such Participant's Stock Accounts
(determined by multiplying the dollar value of the dividend paid upon a single
share of Common Stock by the number of units of Common Stock held in the
Participant's Stock Accounts on the record date for such dividend); by (ii) the
Market Value of the Common Stock on the Valuation Date immediately preceding the
payment date for such cash dividend.

         SECTION 7.6.  STOCK DIVIDENDS. Effective as of the payment date for
each stock dividend on the Common Stock, additional units of Common Stock shall
be credited to the Stock Accounts of each Participant who had a balance in his
or her Stock Accounts on the record date for such dividend. The number of units
that shall be credited to the Stock Account of such a Participant shall equal
the number of shares of Common Stock and fractions thereof, which the
Participant would have received as stock dividends had he or she been the owner
on the record date for such stock dividend of the number of shares of Common
Stock equal to the number of units credited to his or her Stock Accounts on such
record date.

         SECTION 7.7.  RECAPITALIZATION. If, as a result of a recapitalization
of the Company, the outstanding shares of Common Stock shall be changed into a
greater number or smaller number of shares, the number of units credited to a
Participant's Stock Accounts shall be appropriately adjusted on the same basis.

         SECTION 7.8.  DISTRIBUTIONS. Amounts in respect of units of Common
Stock may only be distributed out of the Stock Accounts by transfer to the
Interest Accounts (pursuant to Sections 7.2 and 7.4 or 7.10) or withdrawal from
the Stock Accounts (pursuant to Sections 8, 9, 10, or 19), and shall be
distributed in cash. The number of units to be distributed from a Participant's

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Stock Accounts shall be valued by multiplying the number of such units by the
Market Value of the Common Stock as of the Valuation Date immediately preceding
the date such distribution is to occur. Pending the complete distribution under
Section 8.2 or liquidation under Section 7.10 of the Stock Accounts of a
Participant who has terminated his or her employment with the Company or any of
its U.S. Subsidiaries, the Participant shall continue to be able to make
elections pursuant to Sections 7.2, 7.3, and 7.4 and his or her Stock Accounts
shall continue to be credited with additional units of Common Stock pursuant to
Sections 7.5, 7.6, and 7.7.

         SECTION 7.9.  RESPONSIBILITY FOR INVESTMENT CHOICES. Each Participant
is solely responsible for any decision to defer compensation into his or her
EDCP Stock Account, and to retain in his or her ESOP Stock Account any amounts
credited thereto, and to transfer amounts to and from his or her Stock Accounts.
Each Participant accepts all investment risks entailed by such decision,
including the risk of loss and a decrease in the value of the amounts he or she
elects to transfer into his or her Stock Accounts.

         SECTION 7.10.  NO REINVESTMENT IN STOCK ACCOUNTS AFTER TERMINATION OF
EMPLOYMENT. Once a Participant has terminated employment with the Company and
all of its U.S. Subsidiaries, a Participant may, until his Account is fully
distributed and pursuant to the rules of this Plan, elect to liquidate units of
the Stock Accounts and transfer such value to the Interest Accounts, but the
Participant may not transfer any funds from the Interest Accounts into the Stock
Accounts. For purposes of valuing the units of Common Stock subject to such a
transfer, the approach described in Section 7.8 shall be used.

SECTION 8.  PAYMENT OF DEFERRED COMPENSATION.

         SECTION 8.1.  BACKGROUND. No withdrawal may be made from a
Participant's Accounts except as provided in this Section 8 and Sections 9, 10,
and 19.

         SECTION 8.2.  MANNER OF PAYMENT. Payment of a Participant's Accounts
shall be made in a single lump sum or annual installments, as elected by the
Participant pursuant to this Section 8. The maximum number of annual
installments is ten. The minimum annual installment payment permitted from the
EDCP or ESOP Account, respectively, under such election (determined based on the
value of the Participant's Accounts as of the last Valuation Date of the
calendar year in which the Participant terminates employment, and disregarding
any earnings under this Plan after such date) shall be one thousand dollars
($1,000); this minimum shall be applied by dividing by $1,000 the value of the
Participant's respective Accounts (EDCP or ESOP) as of the last Valuation Date
of the calendar year in which the Participant terminates employment, and the
result, rounded down to the next largest whole number, shall be the maximum
number of annual installments permitted. All payments from the Plan shall be
made in cash.

         SECTION 8.3.  TIMING OF PAYMENTS. Payments shall be made by the fifth
business day in March and shall commence in any year elected by the Participant
pursuant to this Section 8, up through the tenth year following the year in
which the Participant retires, becomes disabled, or for any other reason, ceases
to be an employee of the Company or any of its U.S. Subsidiaries, but in no
event shall payment commence later than the year the Participant reaches age 71.

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         SECTION 8.4.  VALUATION. The amount of each payment shall be equal to
the value, as of the preceding Valuation Date, of the Participant's Accounts,
divided by the number of remaining to be paid. If payment of a Participant's
Accounts is to be paid in installments and the Participant has a balance in his
or her Stock Account at the time of the payment of an installment, the amount
that shall be distributed from his or her Stock Account shall be the amount
obtained by multiplying the total amount of the installment determined in
accordance with the immediately preceding sentence by the percentage obtained by
dividing the balance in the Stock Account as of the immediately preceding
Valuation Date by the total value of the Participant's Accounts as of such date.
Similarly, in such case, the amount that shall be distributed from the
Participant's Interest Account shall be the amount obtained by multiplying the
total amount of the installment determined in accordance with the first sentence
of this Section 8.4 by the percentage obtained by dividing the balance in the
Interest Account as of the immediately preceding Valuation Date by the total
value of the Participant's Accounts as of such date.

         SECTION 8.5.  PARTICIPANT PAYMENT ELECTIONS. Except as provided in
Section 8.6, an election by a Participant concerning the method of payment under
Section 8.2 or the commencement of payments under Section 8.3 must be made at
least one (1) year before the Participant's termination of employment, and must
be made on forms provided by the Company. If a Participant does not have a valid
election in force at the time of termination of employment, then (i) if the
value of his aggregate Accounts as of the last Valuation Date of the calendar
year in which he terminates employment is less than ten thousand dollars
($10,000), then his Accounts shall be paid in a single lump sum; (ii) if the
aggregate value of his Accounts as of the last Valuation Date of the calendar
year in which he terminates employment is ten thousand dollars ($10,000) or
more, then his Accounts shall be paid in ten (10) annual installments; and (iii)
regardless of whether payment is made in a single lump sum or installments,
payment shall commence by the fifth business day in March following the calendar
year in which the Participant terminates employment.

         SECTION 8.6.  SPECIAL PAYMENT ELECTION RULES.

         (a)      Notwithstanding Sections 8.2, 8.3, and 8.5, if a Participant
terminates employment less than one (1) year after the date he first becomes
eligible to participate in this Plan, then an election made by the Participant
under this Section 8 no later than thirty (30) days after the date he first
becomes eligible to participate in this Plan shall be valid.

         (b)      Notwithstanding Sections 8.2, 8.3, and 8.5, if a Participant
terminates employment under circumstances not contemplated at the time the
Participant filed with the Company his or her election under Section 8.5
(hereafter "Changed Circumstances"), then the Vice President, Human Resources,
with respect to Participants who are not executive officers of the Company, and
the Compensation Committee, with respect to Participants who are executive
officers of the Company, may allow such Participant to change his or her
election made under Section 8.5. The determination of whether or not to change
such election shall be made by the Vice President, Human Resources or the
Compensation Committee, as applicable, in his or its sole discretion, taking
into account such factors as deemed appropriate, and without regard to any prior
determinations made by such parties. Until announced otherwise by the Vice
President, Human Resources, "Changed Circumstances" shall mean (and shall only

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mean) a Company-initiated termination of employment.

         (c)      Notwithstanding Sections 8.2, 8.3, and 8.5, if and to the
extent the Vice President, Human Resources or the Compensation Committee
approves the deferral of Severance Pay pursuant to Section 1.7, such approval
shall set forth the terms of the payment of such Severance Pay under the Plan,
including the time of commencement of payment and the form of payment.

         (d)      Any new payment election made by a Participant on or after
October 1, 2001, shall, once effective, apply to both the Participant's EDCP
Account and ESOP Account. If a Participant makes no new payment election on or
after October 1, 2001, then (i) from October 1, 2001 through December 31, 2002,
the most recent payment election made by a Participant under the Eastman ESOP
Excess Plan shall continue to govern payment of the Participant's ESOP Account
under this Plan; and (ii) effective January 1, 2003, the ESOP Accounts shall be
merged into the EDCP Accounts, and any payment election made prior to that time
with respect to the ESOP Account shall be disregarded, other than for an ESOP
Account which is in pay status on January 1, 2003. Notwithstanding the
foregoing, a former Participant who terminated employment prior to October 1,
2001, may continue to make a separate payment election with respect to his ESOP
Account thereafter.

SECTION 9.  PAYMENT OF DEFERRED COMPENSATION AFTER DEATH. If a Participant dies
prior to complete payment of his or her Accounts, the balance of such Accounts,
valued as of the Valuation Date immediately preceding the date payment is made,
shall be paid in a single, lump sum Payment to: (i) the beneficiary or
contingent beneficiary designated by the Participant on forms supplied by the
Compensation Committee; or, in the absence of a valid designation of a
beneficiary or contingent beneficiary, (ii) the Participant's estate within 30
days after appointment of a legal representative of the deceased Participant.

Any new beneficiary election made by a Participant on or after October 1, 2001,
shall apply to both the Participant's EDCP Account and ESOP Account. If a
Participant makes no new beneficiary election on or after October 1, 2001, then
(i) from October 1, 2001 through December 31, 2002, the most recent beneficiary
election made by a Participant under the Eastman ESOP Excess Plan shall continue
to govern payment of the Participant's ESOP Account under this Plan; and (ii)
effective January 1, 2003, the ESOP Accounts shall be merged into the EDCP
Accounts, and any beneficiary election made prior to that time with respect to
the ESOP Account shall be disregarded, other than for an ESOP Account which is
in pay status on January 1, 2003. Notwithstanding the foregoing, a former
Participant who terminated employment prior to October 1, 2001, may continue to
make a separate beneficiary election with respect to his ESOP Account
thereafter.

SECTION 10.  ACCELERATION OF PAYMENT FOR HARDSHIP.

         SECTION 10.1.  HARDSHIP. Upon written approval from the Company's Vice
President, Human Resources, with respect to Participants other than executive
officers of the Company, and by the Compensation Committee, with respect to
Participants who are executive officers of the Company, and subject to the
restrictions in the next two sentences, a Participant, whether or not he or she
is still employed by the Company or any of its U.S. Subsidiaries, may be
permitted to receive all or part of his or her Accounts if the Company's Vice
President, Human Resources, or the Compensation Committee, as applicable,
determines that an emergency event beyond the Participant's control exists which
would cause such Participant severe financial hardship if the payment of his or
her Accounts were not approved. Any such distribution for hardship shall be

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limited to the amount needed to meet such emergency.

         SECTION 10.2.  OTHER PAYMENTS. Any participant in the Plan may at his
or her discretion withdraw at any time all or part of that person's Accounts
under the Plan; provided, if this option is exercised the individual will
forfeit to the Corporation 10% of his or her aggregate Accounts, and will not be
permitted to make deferrals to or receive ESOP allocations under this plan for a
period of 36 months from date any payment to a participant is made under this
section.

         SECTION 10.3.  ACCELERATED PAYMENT. If under Eastman Executive Deferred
Compensation Plan one-half or more of the Participants or one-fifth or more of
the Participants with one-half or more of the value of all benefits owed
exercise their option for immediate distribution in any consecutive six-month
period this will trigger immediate payment to all Participants of all benefits
owed under the terms of the plan, immediate payout under this section will not
involve reduction of the amounts paid to Participants as set forth in section
10.2. Any individual that has been penalized in this six-month period for
electing immediate withdrawal will be paid that penalty, and continuing
participation will be allowed, if payout to all Participants under this section
occurs.

         SECTION 10.4.  SECTION 16 INSIDERS. A Section 16 Insider may only
receive a withdrawal from his or her Stock Account pursuant to this Section 10
if he or she has made no election within the previous six months to effect a
fund-switching transfer into the Stock Account or the Eastman Stock Fund of the
Eastman Investment Plan or the Savings and Investment Plan Appendix, or any
other "opposite way" intra-plan transfer into a Company equity securities fund
which constitutes a "Discretionary Transaction" as defined in Rule 16b-3 under
the Exchange Act. If such a distribution occurs while the Participant is
employed by the Company or any of its U.S. Subsidiaries, any election to defer
compensation for the year in which the Participant receives a withdrawal shall
be ineffective as to compensation earned for the pay period following the pay
period during which the withdrawal is made and thereafter for the remainder of
such year and shall be ineffective as to any other compensation elected to be
deferred for such year.

         SECTION 10.5.  EDCP AND ESOP ELECTIONS. A Participant's election to
withdraw less than all of the funds in his or her Accounts under Sections 10.1
or 10.2 above shall be applied pro rata to all of the Participant's sub-accounts
under the Plan (i.e., to the two investment accounts under the EDCP Account, and
to the two investment accounts under the ESOP Account).

SECTION 11.  NON-COMPETITION AND NON-DISCLOSURE PROVISION. Participant will not,
without the written consent of the Company, either during his or her employment
by the Company or any of its U.S. Subsidiaries or thereafter, disclose to anyone
or make use of any confidential information which he or she has acquired during
his or her employment relating to any of the business of the Company or any of
its subsidiaries, except as such disclosure or use may be required in connection
with his or her work as an employee of the Company or any of its U.S.
Subsidiaries. During Participant's employment by the Company or any of its U.S.
Subsidiaries, and for a period of two years after the termination of such
employment, he or she will not, without the written consent of the Company,
either as principal, agent, consultant, employee or otherwise, engage in any
work or other activity in competition with the Company in the field or fields in

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which he or she has worked for the Company or any of its U.S. Subsidiaries. The
agreement in this Section 11 applies separately in the United States and in
other countries but only to the extent that its application shall be reasonably
necessary for the protection of the Company. If the Participant does not comply
with the terms of this Section 11, the Company's Vice President, Human
Resources, with respect to Participants other than executive officers of the
Company, or the Compensation Committee, with respect to executive officers of
the Company may, in his or its sole discretion, direct the Company to pay to the
Participant the balance credited to his or her Interest Accounts and/or Stock
Accounts.

SECTION 12.  PARTICIPANT'S RIGHTS UNSECURED. The benefits payable under this
Plan shall be paid by the Company each year out of its general assets. To the
extent a Participant acquires the right to receive a payment under this Plan,
such right shall be no greater than that of an unsecured general creditor of the
Company. No amount payable under this Plan may be assigned, transferred,
encumbered or subject to any legal process for the payment of any claim against
a Participant. No Participant shall have the right to exercise any of the rights
or privileges of a shareowner with respect to the units credited to his or her
Stock Accounts.

SECTION 13.  NO RIGHT TO CONTINUED EMPLOYMENT. Participation in the Plan shall
not give any employee any right to remain in the employ of the Company or any of
its U.S. Subsidiaries. The Company and each employer U S. Subsidiary reserve the
right to terminate any Participant at any time.

SECTION 14.  STATEMENT OF ACCOUNT. Statements will be sent no less frequently
than annually to each Participant or his or her estate showing the value of the
Participant's Accounts.

SECTION 15.  DEDUCTIONS. The Company will withhold to the extent required by law
an applicable income and other taxes from amounts deferred or paid under the
Plan.

SECTION 16.  ADMINISTRATION.

         SECTION 16.1.  RESPONSIBILITY. Except as expressly provided otherwise
herein, the Compensation Committee shall have total and exclusive responsibility
to control, operate, manage and administer the Plan in accordance with its
terms.

         SECTION 16.2.  AUTHORITY OF THE COMPENSATION COMMITTEE. The
Compensation Committee shall have all the authority that may be necessary or
helpful to enable it to discharge its responsibilities with respect to the Plan.
Without limiting the generality of the preceding sentence, the Compensation
Committee shall have the exclusive right to interpret the Plan, to determine
eligibility for participation in the Plan, to decide all questions concerning
eligibility for and the amount of benefits payable under the Plan, to construe
any ambiguous provision of the Plan, to correct any default, to supply any
omission, to reconcile any inconsistency, and to decide any and all questions
arising in the administration, interpretation, and application of the Plan.

         SECTION 16.3.  DISCRETIONARY AUTHORITY. The Compensation Committee
shall have full discretionary authority in all matters related to the discharge
of its responsibilities and the exercise of its authority under the Plan
including, without limitation, its construction of the terms of the Plan and its
determination of eligibility for participation and benefits under the Plan. It
is the intent that the decisions of the Compensation Committee and its

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action with respect to the Plan shall be final and binding upon all persons
having or claiming to have any right or interest in or under the Plan and that
no such decision or action shall be modified upon judicial review unless such
decision or action is proven to be arbitrary or capricious.

         SECTION 16.4.  AUTHORITY OF VICE PRESIDENT HUMAN RESOURCES. Where
expressly provided for under Sections 8, 10 and 11, the authority of the
Compensation Committee is delegated to the Company's Vice President, Human
Resources, and to that extent the provisions of Section 16.1 through 16.3 above
shall be deemed to apply to such Vice President.

         SECTION 16.5.  DELEGATION OF AUTHORITY. The Compensation Committee may
provide additional delegation of some or all of its authority under the Plan to
any person or persons provided that any such delegation be in writing.

SECTION 17. AMENDMENT. The Board may suspend or terminate the Plan at any time.
In addition, the Board may, from time to time, amend the Plan in any manner
without shareowner approval; provided however, that the Board may condition any
amendment on the approval of shareowners if such approval is necessary or
advisable with respect to tax, securities, or other applicable laws. However, no
amendment, modification, or termination shall, without the consent of a
Participant, adversely affect such Participant's accruals in his or her Accounts
as of the date of such amendment, modification, or termination.

SECTION 18.  GOVERNING LAW. The Plan shall be construed, governed and enforced
in accordance with the law of Tennessee, except as such laws are preempted by
applicable federal law.

SECTION 19.  CHANGE IN CONTROL.

         SECTION 19.1.  BACKGROUND. The terms of this Section 19 shall
immediately become operative, without further action or consent by any person or
entity, upon a Change in Control, and once operative shall supersede and control
over any other provisions of this Plan.

         SECTION 19.2.  AMENDMENT ON OR AFTER CHANGE IN CONTROL. On or after a
Change in Control, no action, including, but not by way of limitation, the
amendment, suspension or termination of the Plan, shall be taken which would
affect the rights of any Participant or the operation of this Plan with respect
to the balance in the Participant's Accounts without the written consent of the
Participant, or, if the Participant is deceased, the Participant's beneficiary
under this Plan (if any).

         SECTION 19.3.  ATTORNEY FEES. The Corporation shall pay all reasonable
legal fees and related expenses incurred by a participant in seeking to obtain
or enforce any payment, benefit or right such participant may be entitled to
under the plan after a Change in Control; provided, however, the participant
shall be required to repay any such amounts to the Corporation to the extent a
court of competent jurisdiction issues a final and non-appealable order setting
forth the determination that the position taken by the participant was frivolous
or advanced in bad faith.

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<PAGE>

SECTION 20.  COMPLIANCE WITH SEC REGULATIONS. It is the Company's intent that
the Plan comply in all respects with Rule 16b-3 of the Exchange Act, and any
regulations promulgated thereunder. If any provision of the Plan is found not to
be in compliance with such rule, the provision shall be deemed null and void.
All transactions under the plan, including, but not by way of limitation, a
Participant's election to defer compensation or transfer Account balances under
Section 7 and hardship withdrawals under Section 10, shall be executed in
accordance with the requirements of Section 16 of the Exchange Act, as amended
and any regulations promulgated thereunder. To the extent that any of the
provisions contained herein do not conform with Rule 16b-3 of the Exchange Act
or any amendments thereto or any successor regulation, then the Committee may
make such modifications so as to conform the Plan to the Rule's requirements.

SECTION 21.  SUCCESSORS AND ASSIGNS. This Plan shall be binding upon the
successors and assigns of the parties hereto.

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                                   SCHEDULE A

  Name of Subsidiary                            Effective Date
  ------------------                            --------------
  Holston Defense Corporation                 January 1, 1994

  McWhorter Technologies, Inc.                Effective as of the date of
                                              acquisition by the Company, with
                                              respect to signing and retention
                                              bonuses, and effective as of
                                              January 1, 2001, with respect to
                                              other deferrable amounts

  Eastman Chemical Resins, Inc.               July 1, 2001

                                      172

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