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                                                                   EXHIBIT 10.02

                           FIRST AMENDED AND RESTATED
                            EASTMAN CHEMICAL COMPANY
                             1999 DIRECTOR LONG-TERM
                                COMPENSATION PLAN

1.       PURPOSE

The purpose of the Plan is to provide motivation to non-employee members of the
Board of Directors of the Company to put forth maximum efforts toward the
continued growth, profitability, and success of the Company and its Subsidiaries
by providing incentives to such Directors through the ownership and performance
of Common Stock of the Company. Toward this objective, this Plan provides for
regular, automatic grants of stock options and restricted stock and one-time,
automatic awards of restricted stock on the terms and subject to the conditions
set forth in the Plan. This Plan was originally adopted by the shareowners at
the May 6, 1999 Annual Meeting and amended by the Committee on Directors at its
March 1, 2001 meeting.

2.       DEFINITIONS

2.1      "Award" means a stock option grant or restricted stock award under the
         Plan to a Participant pursuant to the terms, conditions, restrictions
         and/or limitations established herein.

2.2      "Board" means the Board of Directors of the Company.

2.3      "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 December 31, 1998, 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, or any employee
         benefit plan(s) sponsored by the Company or any Subsidiary, 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 in 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, 1999 (the
         "Incumbent Board") have ceased for any reason to constitute at least a
         majority thereof, provided that: any person becoming a director
         subsequent to January 1, 1999 whose election, or nomination for
         election by the Company's shareowners, 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 shareowners 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

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         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
         shareowners 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. Notwithstanding the
         occurrence of any of the foregoing, the 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: (i) it is
         made by the 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 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; and (ii) it would not, in the opinion of the Company's
         accountants, preclude the use of "pooling of interest" accounting
         treatment for a Change in Control transaction that would otherwise
         qualify for such accounting treatment and which is contingent upon
         qualifying for such accounting treatment.

2.4      "Change In Control Price" means the highest closing price (or, if the
         shares are not traded on an exchange, the highest last sale price or
         closing "asked" price) per share paid for the purchase of Common Stock
         in a national securities market during the ninety (90) day period
         ending on the date the Change In Control occurs.

2.5      "Code" means the Internal Revenue Code of 1986, as amended from time to
         time.

2.6      "Committee" means the Committee on Directors of the Board or such other
         committee, designated by the Board, authorized to administer the Plan
         under Section 3 hereof. The Committee shall consist of not less than
         two members, each of whom is intended to be a "non-employee director"
         as such term is defined in Rule 16b-3 under the Exchange Act or any
         successor rule.

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

2.8      "Company" means Eastman Chemical Company.

2.9      "Exchange Act" means the Securities and Exchange Act of 1934, as
         amended.

2.10     "Fair 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 shares were traded on such day, on the next
         preceding day on which shares were traded; provided, however, that if
         at any relevant time the shares of Common Stock are not traded on the
         New York Stock Exchange, the "Fair 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 Automatic Quotation System (NASDAQ)
         or other national quotation service.

2.11     "Participant" means any Director of the Company who is not an employee
         of the Company or a Subsidiary or a former Director, to the extent
         provided in Section 6(f).

2.12     "Plan" means the Eastman Chemical Company 1999 Director Long-Term
         Compensation Plan.

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2.13     "Subsidiary" means a corporation or other business entity in which the
         Company directly or indirectly has an ownership interest of 80 percent
         or more.

3.       ADMINISTRATION

The Plan shall be administered by the Committee. The Committee shall have the
authority to: (a) interpret the Plan; (b) establish such rules and regulations
as it deems necessary for the proper operation and administration of the Plan;
and (c) take any and all other action it deems necessary or advisable for the
proper operation or administration of the Plan. Notwithstanding the foregoing,
the Committee shall have no authority to vary the Directors who are Participants
under the Plan or the form, type, timing, terms, conditions, restrictions, or
limitations of, or other aspects of, Awards. All determinations of the Committee
shall be made by a majority of its members, and its determinations shall be
final, binding and conclusive. The Committee, in its discretion, may delegate
its authority and duties under the Plan to the Chief Executive Officer and/or to
other senior officers of the Company under such conditions and/or limitations as
the Committee may establish.

4.       SHARES AVAILABLE

The maximum number of shares of Common Stock that shall be available for grant
of Awards under the Plan during its term shall not exceed 60,000. Such amount
shall be subject to adjustment as provided in Section 11. Any shares of Common
Stock related to Awards that terminate by expiration, forfeiture, cancellation
or otherwise without the issuance or vesting of such shares shall be available
again for grant under the Plan. Further, any shares of Common Stock that are
used by a Participant for the full or partial payment to the Company of the
purchase price of Common Stock upon exercise of a stock option, or for
withholding taxes due as a result of such exercise or as a result of the vesting
of restricted stock, shall again be available for Awards under the Plan. The
shares of Common Stock available for issuance under the Plan may be authorized
and unissued shares or treasury shares.

5.       EFFECTIVE DATE; TERM

The Plan shall become effective as of the date upon which it is approved by the
shareowners of the Company. No Awards shall be exercisable or vest before the
Plan shall have become effective. No Awards (other than subsequent options
granted pursuant to Section 6(f)) may be made pursuant to the Plan after the
later of May 1, 2004 or the date of the Annual Meeting of Shareowners of the
Company for the year 2004.

6.       ANNUAL OPTION GRANTS

         (a)      GRANT OF OPTIONS. Immediately following each annual election
         of directors at an annual meeting of shareowners of the Company, each
         Participant shall be granted, effective as of the date of such Annual
         Meeting, an option to purchase 2,000 shares of Common Stock. The
         foregoing number of shares shall be adjusted in accordance with the
         principles of Section 11 in the event of the occurrence of an event
         described therein.

         (b)      EXERCISE PRICE. The exercise price of an option granted
         pursuant to this Section 6 shall equal the Fair Market Value of the
         Common Stock on the date the option is granted.

         (c)      MEDIUM AND TIME OF PAYMENT. The exercise price shall be
         payable in full upon the exercise of the option in cash, by check, or
         in shares of Common Stock held by the Participant for at least six
         months. Such shares shall be valued at their Fair Market Value as of
         the date of exercise.

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         (d)      EXERCISE. Each option granted under this Section 6 shall
         become exercisable as to one-half of the shares on the first
         anniversary of the date of grant and with respect to the remaining
         shares subject to such option on the second anniversary of the date of
         grant.

         (e)      TERM. Options granted under this Section 6 shall have a term
         of ten (10) years.

         (f)      SUBSEQUENT OPTION. The option granted pursuant to Section 6(a)
         shall provide that, upon exercise of such option by the surrender of
         previously owned shares of Common Stock during such time as the
         Participant is a member of the Board or during the first 60 days
         following termination of the Participant's tenure on the Board, the
         Participant shall be granted a new option to acquire a number of shares
         of Common Stock equal to the number of shares surrendered in such
         exercise, having a term equal to the remaining term of the initial
         option, and having an exercise price equal to the Fair Market Value of
         the Common Stock at the time of exercise of the initial option. In
         other respects, such new option shall have the same terms and
         conditions as the initially granted option; provided, however, that (i)
         such new option shall not provide for the issuance of another option
         upon exercise of such new option with previously owned shares of Common
         Stock and, (ii) the new option shall become exercisable on the earlier
         of six months from the date of grant or such time as the Participant is
         no longer a member of the Board.

         (g)      STOCK OPTION AWARD NOTICE. Each option granted under this Plan
         shall be evidenced by a Stock Option Award Notice, substantially in the
         - form attached hereto as Exhibit A.

7.       ONE-TIME RESTRICTED STOCK AWARDS

         (a)      GRANT OF AWARD. Subject to the restrictions provided below,
         each Participant whose initial term of service on the Board begins on
         or after January 1, 1999 shall be granted an Award of shares of Common
         Stock having an aggregate Fair Market Value equal to $10,000, such
         grant to be effective as of the first day of such Participant's initial
         term of service on the Board of Directors, or, if later, the effective
         date of the Plan. The foregoing number of shares shall be adjusted in
         accordance with the principles of Section 11 in the event of an
         occurrence of an event described therein.

         (b)      AWARD RESTRICTIONS. Common Stock awarded under Section 7(a)
         may not be transferred or sold by the Participant and is subject to
         forfeiture until vested in accordance with the following two sentences.
         A restricted stock Award under Section 7(a) will vest and all
         restrictions with respect thereto will lapse only upon the earliest to
         occur of: (i) three (3) years from the date of such Award, but only if
         the Participant is still a director of the Company immediately prior to
         the election of directors at the annual meeting of shareowners at the
         end of such three-year period, or (ii) the date that his or her tenure
         as director of the Company terminates by reason of death, disability,
         or resignation effective at an annual meeting of shareowners because he
         or she is no longer qualified to serve as a director under Section 3.1
         of the Bylaws of the Company, or (iii) the date that his or her tenure
         as director of the Company terminates by reason of his or her failure
         to be reelected as a director in an election in which he or she
         consented to be named as a director nominee. If at the end of the
         three-year period referred to in (i) above none of the three
         alternative events in the immediately preceding sentence has occurred,
         then the Participant's stock Award under Section 7(a) shall be canceled
         and forfeited.

         (c)      RIGHTS AS SHAREOWNERS. During the period in which any shares
         of Common Stock are subject to the restrictions on transfer imposed
         under Section 7(b), the Participant shall have all of the rights of a
         shareowner with respect to such shares, including, without limitation,
         the right to vote such shares and to receive dividends.

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         (d)      RESTRICTED STOCK AWARD NOTICE; EVIDENCE OF AWARD. Each stock
         Award granted under this Plan shall be evidenced by a Restricted Stock
         Award Notice, substantially in the form attached hereto as Exhibit B.
         In addition, the restricted shares under any such Award may be
         evidenced in such manner as the Committee deems appropriate, including,
         without limitation, book-entry registration or issuance of a stock
         certificate or certificates.

8.       ANNUAL RESTRICTED STOCK AWARDS

         (a)      GRANT OF AWARD. Subject to the restrictions provided below,
         immediately after each annual election of directors at an annual
         meeting of shareowners of the Company, each Participant shall be
         granted, effective as of the date of the annual meeting, an Award of
         shares of Common Stock having an aggregate Fair Market Value equal to
         $5,000. The foregoing number of shares shall be adjusted in accordance
         with the principles of Section 11 in the event of an occurrence of an
         event described therein.

         (b)      AWARD RESTRICTIONS Common Stock awarded under Section 8(a) may
         not be transferred or sold by the Participant and is subject to
         forfeiture until vested in accordance with the following two sentences.
         A restricted stock Award under Section 8(a) will vest and all
         restrictions with respect thereto will lapse only upon the earliest to
         occur of: (i) three (3) years from the date of such Award, but only if
         the Participant is still a director of the Company immediately prior to
         the election of directors at the annual meeting of shareowners at the
         end of such three-year period, or (ii) the date that his or her tenure
         as director of the Company terminates by reason of death, disability,
         or resignation effective at an annual meeting of shareowners because he
         or she is no longer qualified to serve as a director under Section 3.1
         of the Bylaws of the Company, or (iii) the date that his or her tenure
         as a director of the Company terminates by reason of completion of his
         or her then-current term in office and failure to be nominated for or
         reelected to another term. If at the end of the three-year period
         referred to in (i) above none of the three alternative events in the
         immediately preceding sentence has occurred, then the Participant's
         stock Award under Section 8(a) shall be canceled and forfeited.

         (c)      RIGHTS AS SHAREOWNERS. During the period in which any shares
         of Common Stock are subject to the restrictions on transfer imposed
         under Section 8(b), the Participant shall have all the rights of a
         shareowner with respect to such shares, including, without limitation,
         the right to vote such shares and to receive dividends.

         (d)      RESTRICTED STOCK AWARD NOTICE; EVIDENCE OF AWARD. Each stock
         Award granted under this Plan shall be evidenced by a Restricted Stock
         Award Notice, substantially in the form attached hereto as Exhibit B.
         In addition, the restricted shares under any such Award may be
         evidenced in such manner as the Committee deems appropriate, including,
         without limitation, book-entry registration or issuance of a stock
         certificate or certificates.

9.       TERMINATION OF TENURE

If a Participant's tenure on the Board terminates for a reason other than death,
disability, or completion of such Participant's current term in office, all
unexercised, unearned, unvested and/or unpaid Awards, including without
limitation, Awards earned but not yet paid shall be canceled or forfeited;
provided, however, that any vested stock Award under Section 7 or 8 shall not be
canceled or forfeited. The Committee shall have the authority to promulgate
rules and regulations to administer the foregoing.

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10.       NONASSIGNABILITY

No Awards or any other payment under the Plan shall be subject in any manner to
alienation, anticipation, sale, transfer (except by will or the laws of descent
and distribution), assignment, pledge, or encumbrance, nor during the lifetime
of the Participant shall any Award be payable to or exercisable by anyone other
than the Participant to whom it was granted, other than in the case of a
permanent disability involving a mental incapacity (in which case such Award
would be payable to or exercisable by the disabled Participant's legal
representative).

11.      ADJUSTMENT OF SHARES AVAILABLE

If there is a change in the number of outstanding shares of Common Stock through
the declaration of stock dividends or stock splits, the number of shares
available for Awards, the shares subject to any Award and the option prices or
exercise prices of Awards shall be automatically adjusted. If there is a change
in the number of outstanding shares of Common Stock or any change in the
outstanding stock of the Company (or any successor to the Company), or any other
transaction described in Section 424(a) of the Code, the Committee shall make
appropriate adjustments in the number and kind of shares of stock that may be
issued under the Plan and any adjustments and/or modifications to outstanding
Awards as it deems appropriate. In the event of any other change in the capital
structure or in the Common Stock of the Company, the Committee shall also be
authorized to make such appropriate adjustments in the shares of stock available
for issuance under the Plan and any adjustments and/or modifications to
outstanding Awards as it deems appropriate.

12.       WITHHOLDING TAXES

The Company shall have the power and the right to deduct or withhold, or require
a Participant to remit to the Company, an amount sufficient to satisfy Federal,
state, and local taxes (including the Participant's FICA obligation) required by
law to be withheld with respect to any taxable event arising as a result of this
Plan. With respect to withholding required upon any taxable event hereunder, the
Company may elect in its discretion, and Participants may elect, to satisfy the
withholding requirement, in whole or in part, by withholding or having the
Company withhold shares of Common Stock having a Fair Market Value on the date
the tax is to be determined equal to the minimum statutory total tax which could
be imposed on the transaction. All elections by Participants shall be
irrevocable, made in writing, and signed by the Participant.

13.      CONFIDENTIALITY

A Participant will not, without the written consent of the Company, either
during his or her term in office or thereafter, disclose to anyone or make use
of any confidential information which he or she has acquired during his or her
term in office relating to any of the business of the Company, except as such
disclosure or use may be required in connection with his or her position as a
director of the Company. A Participant shall forfeit all rights under this Plan
to any unexercised, unpaid, or unvested Awards if the Participant has violated
the agreement set forth in this Section 13.

14.      REGULATORY APPROVALS AND LISTINGS

Notwithstanding anything contained in the Plan to the contrary, the Company
shall have no obligation to issue or deliver certificates of Common Stock
evidencing stock Awards or any other Award resulting in the payment of Common
Stock prior to (a) the obtaining of any approval from any governmental agency
which the Company shall, in its sole discretion, determine to be necessary or
advisable, (b) the admission of such shares to listing on

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the stock exchange on which the Common Stock may be listed, and (c) the
completion of any registration or other qualification of said shares under any
state or Federal law or ruling of any governmental body which the Company shall,
in its sole discretion, determine to be necessary or advisable.

15.      NO RIGHT TO CONTINUED POSITION ON BOARD

Participation in the Plan shall not give any Participant any right to remain on
the Board.

16.      AMENDMENT

The Board or the Committee may, at any time and from time to time, suspend,
amend, modify, or terminate the Plan without shareowner approval; provided,
however, that the Board or Committee may condition any amendment or modification
on the approval of shareowners of the Company if such approval is necessary or
deemed advisable with respect to tax, securities, or other applicable laws,
policies, or regulations.

17.      GOVERNING LAW

The Plan shall be governed by and construed in accordance with the laws of the
State of Delaware, except as superseded by applicable Federal law.

18.      CHANGE IN CONTROL

         (a)      BACKGROUND. Upon a Change In Control: (i) the terms of this
         Section 18 shall immediately become operative, without further action
         or consent by any person or entity; (ii) all conditions, restrictions,
         and limitations in effect on any unexercised, unearned, unpaid,
         unvested, and/or deferred Award, or any other outstanding Award, shall
         immediately lapse as of the date of such event; (iii) no other terms,
         conditions, restrictions and/or limitations shall be imposed upon any
         Awards on or after such date, and in no circumstance shall an Award be
         forfeited on or after such date; and (iv) all unexercised, unvested,
         unearned, and/or unpaid Awards or any other outstanding Awards shall
         automatically become one hundred percent (100%) vested immediately.

         (b)      VALUATION AND PAYMENT OF AWARDS. Upon a Change In Control, all
         outstanding stock options and stock Awards shall be valued and paid in
         cash as soon as practicable but in no event later than 90 days after
         the Change In Control on the basis of the Change In Control Price;
         provided, however, that this Section 18(b) shall not apply if, in the
         opinion of the Company's accountants, its effect would be to preclude
         the use of "pooling of interest" accounting treatment for a Change In
         Control transaction that would otherwise qualify for such accounting
         treatment and which is contingent upon qualifying for such accounting
         treatment.

         (c)      MISCELLANEOUS. Upon a Change In Control, (i) the provisions of
         Section 9 shall become null and void and of no further force and
         effect; and (ii) no action, including, without limitation, the
         amendment, suspension, or termination of the Plan, shall be taken which
         would affect the rights of any Participant or the operation of the Plan
         with respect to any Award to which the Participant may have become
         entitled hereunder on or prior to the date of such action or as a
         result of such Change In Control.

         (d)      LEGAL FEES. The Company 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

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         required to repay any such amounts to the Company 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.

19.      NO RIGHT, TITLE, OR INTEREST IN COMPANY ASSETS

No Participant shall have any rights as a shareowner as a result of
participation in the Plan until the date of issuance of a stock certificate in
the Participant's name, or, in the case of restricted shares of Common Stock,
such rights are granted to the Participant under Section 7 or Section 8 hereof.
To the extent any person acquires a right to receive payments from the Company
under the Plan, such rights shall be no greater than the rights of an unsecured
creditor of the Company.

20.      SECURITIES LAWS

Transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent
any provision of the Plan or action by the Committee fails so to comply, it
shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee.

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                                                                   EXHIBIT 10.03

                          LONG-TERM PERFORMANCE SUBPLAN
                 OF THE 1997 OMNIBUS LONG-TERM COMPENSATION PLAN
                          2001-2003 PERFORMANCE PERIOD

                            EASTMAN CHEMICAL COMPANY
                            Effective January 1, 2001

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                          LONG-TERM PERFORMANCE SUBPLAN
                 OF THE 1997 OMNIBUS LONG-TERM COMPENSATION PLAN
                          2001-2003 PERFORMANCE PERIOD

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION            TITLE                                                PAGE
<S>                <C>                                                  <C>
Section 1.         Background

Section 2.         Definitions

Section 3.         Administration

Section 4.         Eligibility

Section 5.         Form of Awards

Section 6.         Size of Awards

Section 7.         Composition of Peer Group

Section 8.         Preconditions to Receipt of an Award

Section 9.         Manner and Timing of Award Payments

Section 10.        No Rights as Shareowner

Section 11.        Application of Plan

Section 12.        Amendments
</TABLE>

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                            EASTMAN CHEMICAL COMPANY
                          LONG-TERM PERFORMANCE SUBPLAN
                 OF THE 1997 OMNIBUS LONG-TERM COMPENSATION PLAN
                          2001-2003 PERFORMANCE PERIOD

SECTION 1. BACKGROUND. Under Section 11 of the Eastman Chemical Company 1997
Omnibus Long-Term Compensation Plan (the "Plan"), the "Committee" (as defined in
the Plan), may, among other things, award shares of the $.01 par value common
stock ("Common Stock") of Eastman Chemical Company (the "Company") to
"Employees" (as defined in the Plan), and such awards may take the form of
performance shares, which are contingent upon the attainment of certain
performance objectives during a specified period, and subject to such other
terms, conditions, and restrictions as the Committee deems appropriate. The
purpose of this Long-Term Performance Subplan (this "Subplan") is to set forth
the terms of the grant of performance shares for the 2001-2003 Performance
Period specified herein, effective as of January 1, 2001 (the "Effective Date").

SECTION 2. DEFINITIONS.

(a)      The following definitions shall apply to this Subplan:

         (i)      "Actual Grant Amount" means the number of shares of Common
                  Stock to which a participant is entitled under this Subplan,
                  calculated in accordance with Section 6 of this Subplan.

         (ii)     "Award Payment Date" means the date the shares of Common Stock
                  covered by an award under this Subplan are delivered to a
                  participant.

         (iii)    "Compared Group" means the Company and the companies in the
                  Peer Group.

         (iv)     "Maximum Deductible Amount" means the maximum amount
                  deductible by the Company under Section 162(a), taking into
                  consideration the limitations under Section 162(m), of the
                  Internal Revenue Code of 1986, as amended, or any similar or
                  successor provisions thereto.

         (v)      "Target Grant Amount" means, with respect to any eligible
                  Employee, the number of shares of Common Stock specified on
                  Exhibit A hereto for the Salary Grade applicable to such
                  Employee.

         (vi)     "Participation Date" means June 30, 2001.

         (vii)    "Peer Group" means the group of companies identified in
                  Exhibit B hereto, with any changes made by the Committee
                  pursuant to Section 7 of this Subplan.

         (viii)   "Performance Period" means January 1, 2001 through December
                  31, 2003.

         (ix)     "TSR" means total return to shareowners, as reflected by the
                  sum of (A) change in stock price (measured as the difference
                  between (I) the average of the closing prices of a company's
                  common stock on the New York Stock Exchange, or of the last
                  sale prices of such stock on the Nasdaq Stock Market, as
                  applicable, in the period beginning on the tenth trading day
                  preceding the beginning of the Performance Period and ending
                  on the tenth trading day of the Performance Period and (II)
                  the average of such closing or last sale prices for such stock
                  in the period beginning on the tenth trading

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                  day preceding the end of the Performance Period and ending on
                  the tenth trading day following the end of the Performance
                  Period) plus (B) dividends declared, assuming reinvestment of
                  dividends, and expressed as a percentage return on a
                  shareowners's hypothetical investment.

(b)      Any capitalized terms used but not otherwise defined in this Subplan
         shall have the respective meanings set forth in the Plan.

SECTION 3. ADMINISTRATION. This Subplan shall be administered by the Committee.
The Committee shall have authority to interpret this Subplan, to prescribe rules
and regulations relating to this Subplan, and to take any other actions it deems
necessary or advisable for the administration of this Subplan, and shall retain
all general authority granted to it under Section 3 of the Plan.

SECTION 4. ELIGIBILITY. The Employees who are eligible to participate in this
Subplan are those Employees who, as of the Effective Date, have been designated
as "officers" of the Company for purposes of Section 16 of the Exchange Act and
those Employees designated by the Company's Chief Executive Officer during 2001,
which shall generally include Employees who, as of the Effective Date or the
Participation Date, held positions with the Company considered by the Chief
Executive Officer to carry responsibilities and functions generally associated
with a vice-president-level position. Employees who are promoted during the
Performance Period to a position that would meet the above criteria, but who do
not hold such position as of the Participation Date, are not eligible to
participate in this Subplan; however, the ability of the Chief Executive Officer
under this Section 4 to designate eligible Employees at any time during 2001 is
intended to allow the participation of Employees who, as of the Participation
Date, held positions with the Company that may not have been considered to carry
responsibilities and functions generally associated with a vice-president-level
position but which positions are or were evaluated during 2001 and determined by
the Chief Executive Officer to carry such responsibilities and functions.

SECTION 5. FORM OF AWARDS. Subject to the terms and conditions of the Plan and
this Subplan, Awards under this Subplan shall be paid in the form of
unrestricted shares of Common Stock, except for conversions to cash and
deferrals under Section 9 of this Subplan, and except that if a participant is
entitled to any fraction of a share of Common Stock, as a result of Section 10
of this Subplan or otherwise, then in lieu of receiving such fraction of a
share, the participant shall be paid a cash amount representing the market
value, as determined by the Committee, of such fraction of a share at the time
of payment.

SECTION 6. SIZE OF AWARDS. Exhibit A hereto shows by Salary Grade the Target
Grant Amount. The Salary Grade to be used in calculating the size of any Award
to a participant under this Subplan shall be the higher of (a) the Salary Grade
applicable to the position held by the participant on the Participation Date
(or, in the case of participants whose employment is terminated prior to the
Participation Date, the Effective Date) and (b) the Salary Grade assigned to
such position during 2001 as a result of any reevaluation of the Salary Grade
appropriate for such position. The Actual Grant Amount shall be determined by
comparing the Company's TSR during the Performance Period to the TSRs of the
companies in the Peer Group during the Performance Period. Specifically, the
Company and each company in the Peer Group shall be ranked by TSR, in descending
order, with the company having the highest TSR during the Performance Period
being ranked number one. The Company's rank, by TSR, in relation to the Compared
Group, shall determine a multiplier to be applied to the Target Grant Amount.
Multipliers range from 2.0 (i.e. 200%), if the Company's TSR is ranked number
one, to 0.0 (with no shares of Common Stock being delivered to participants
under this Subplan), if the Company's rank is lower than company twelve in the
Compared Group. The payout table with multipliers for each TSR rank is shown in
Exhibit C. The Actual Grant Amount is determined by applying the multiplier
corresponding to the Company's TSR rank (Exhibit C) to the Target Grant Amount.
Notwithstanding the foregoing, if the Peer Group produces fewer than 15 distinct
TSRs (as a result of the removal of a company from the Peer Group without
substitution of a replacement company therefor, as described in Section 7 of
this Subplan), then the Committee shall, in its sole discretion, determine the
appropriate means of calculating the Actual Grant Amount.

                                       64
<PAGE>   5

SECTION 7. COMPOSITION OF PEER GROUP. The members of the Peer Group identified
in Exhibit B hereto have been identified as companies currently relevant for
purposes of TSR comparisons under this Subplan. However, the Committee shall
have the authority, at any time and from time to time, to determine that any
member of the Peer Group is no longer appropriate for inclusion. Circumstances
that might require such a determination include, without limitation, the
following events: a company's common stock ceasing to be publicly traded on an
exchange or on the Nasdaq Stock Market; a company's being a party to a
significant merger, acquisition, or other reorganization; or a company's ceasing
to operate in the chemical industry. In any case where the Committee determines
that a particular company is no longer appropriate for inclusion in the Peer
Group, the Committee may designate a replacement company, which shall then be
substituted in the Peer Group for the former member. In any such case, the
Committee shall have authority to determine the appropriate method of
calculating the TSR of such former and/or replacement company or companies,
whether by complete substitution of the replacement company (and disregard of
the former company) over the entire Performance Period or by pro rata
calculations for each company or otherwise. Alternatively, in any case where the
Committee determines that a particular company is no longer appropriate for
inclusion in the Peer Group, the Committee may remove such company from the Peer
Group without substituting a replacement company therefor.

SECTION 8. PRECONDITIONS TO RECEIPT OF AN AWARD.

(a)      CONTINUOUS EMPLOYMENT. Except as specified in paragraph (b) below, to
         remain eligible for an Award under this Subplan, an eligible Employee
         must remain continuously employed with the Company or a Subsidiary at
         all times from the Participation Date (or the Effective Date) through
         the Award Payment Date.

(b)      DEATH, DISABILITY, RETIREMENT, OR TERMINATION FOR AN APPROVED REASON
         BEFORE THE AWARD PAYMENT DATE. If a participant's employment with the
         Company or a Subsidiary is terminated due to death, disability,
         retirement, or any approved reason prior to the Award Payment Date, the
         participant shall receive, subject to the terms and conditions of the
         Plan and this Subplan, an Award representing a prorated portion of the
         Actual Grant Amount to which such participant otherwise would be
         entitled, with the precise amount of such Award to be determined by
         multiplying the Actual Grant Amount by a fraction, the numerator of
         which is the number of full calendar months in the Performance Period
         from the Effective Date through and including the effective date of
         such termination, and the denominator of which is 36 (the total number
         of months in the Performance Period). If the effective date of a
         participant's termination of employment occurs on or after the last
         business day of a particular calendar month, then such month shall be
         considered a full calendar month and shall be counted in determining
         the numerator of the fraction described in the preceding sentence; if
         the effective date of such termination occurs prior to the last
         business day of a particular calendar month, then such month shall not
         be so counted.

SECTION 9. MANNER AND TIMING OF AWARD PAYMENTS.

(a)      TIMING OF AWARD PAYMENT. Except for deferrals under Sections 9(c) and
         9(d), if any Awards are payable under this Subplan, the payment of such
         Awards to eligible Employees shall be made as soon as is
         administratively practicable after the end of the Performance Period.

(b)      TAX WITHHOLDING. The company may withhold or require the grantee to
         remit a cash amount sufficient to satisfy federal, state, and local
         taxes (including the participant's FICA obligation) required by law to
         be withheld. Further, either the Company or the grantee may elect to
         satisfy the withholding requirement by having the Company withhold
         shares of common stock having a fair market value on the date the tax
         is to be determined equal to the minimum statutory total tax which
         could be imposed on the transaction.

                                       65
<PAGE>   6

(c)       DEFERRAL OF AWARD IN EXCESS OF THE MAXIMUM DEDUCTIBLE AMOUNT. If
          payment of the Award would, or could in the reasonable estimation of
          the Committee, result in the participant's receiving compensation in
          excess of the Maximum Deductible Amount in a given year, then such
          portion (or all, as applicable) of the Award as would, or could in the
          reasonable estimation of the Committee, cause such participant to
          receive compensation from the Company in excess of the Maximum
          Deductible Amount shall be converted into the right to receive a cash
          payment, which shall be deferred until after the participant retires
          or otherwise terminates employment with the Company and its
          Subsidiaries.

(d)       ELECTION TO DEFER THE AWARD. Any participant in this Subplan may elect
          to defer the Award until after the participant retires or otherwise
          terminates employment with the Company and its Subsidiaries under the
          terms and subject to the conditions of the Eastman Executive Deferred
          Compensation Plan, as the same now exists or may be amended hereafter
          (the "EDCP"). If the participant chooses to defer the Award, the Award
          shall be converted into the right to receive a cash payment.

(e)       AWARD DEFERRAL TO THE EDCP. In the event that all or any portion of an
          Award is converted into a right to receive a cash payment pursuant to
          Sections 9(c) or 9(d), an amount representing the Fair Market Value,
          as of the date the Common Stock covered by the Award otherwise would
          be delivered to the participant, of the Actual Grant Amount (or the
          deferred portion thereof) will be credited to the Stock Account of the
          EDCP, and hypothetically invested in units of Common Stock.
          Thereafter, such amount shall be treated in the same manner as other
          investments in the EDCP and shall be subject to the terms and
          conditions thereof.

SECTION 10. NO RIGHTS AS SHAREOWNER. No certificates for shares of Common Stock
shall be issued under this Subplan nor shall any participant have any rights as
a shareowner as a result of participation in this Subplan, until the Actual
Grant Amount has been determined and such participant has otherwise become
entitled to an Award under the terms of the Plan and this Subplan. In
particular, no participant shall have any right to vote or to receive dividends
on any shares of Common Stock under this Subplan, until certificates for such
shares have been issued as described above; provided, however, that if payment
of all or any portion of an Award under this Subplan has been deferred pursuant
to Section 9 of this Subplan or otherwise, but such Award otherwise has become
payable hereunder, then during the period during which payment is deferred, the
deferred Award shall be credited with additional units of Common Stock, and (if
applicable) fractions thereof, based on any dividends declared on the Common
Stock, in accordance with the terms of the EDCP.

SECTION 11. APPLICATION OF PLAN. The provisions of the Plan shall apply to this
Subplan, except to the extent that any such provisions are inconsistent with
specific provisions of this Subplan. In particular, and without limitation,
Section 11 (relating to performance shares), Section 12 (relating to
qualification of Awards as "performance-based" under Code Section 162(m)),
Section 17 (relating to nonassignability), Section 18 (relating to adjustment of
shares available), Section 19 (relating to withholding taxes), Section 20
(relating to noncompetition and confidentiality), Section 21 (relating to
regulatory approvals and listings), Section 23 (relating to the governing law),
Section 24 (relating to changes in ownership), Section 25 (relating to changes
in control), Section 26 (relating to no rights, title, or interest in Company
assets), and Section 27 (relating to securities laws) shall apply to this
Subplan.

SECTION 12. AMENDMENTS. The Committee may, from time to time, amend this Subplan
in any manner.

                                       66
<PAGE>   7

                                    EXHIBIT A

                            EASTMAN CHEMICAL COMPANY
                    LONG-TERM PERFORMANCE SUBPLAN GRANT TABLE
                                 2001-2003 CYCLE

                               Original on File in
                             Management Compensation

                                       67

<PAGE>   8

                                    EXHIBIT B

                           COMPANIES IN THE PEER GROUP

Air Products and Chemicals, Inc.
Celanese A. G.
Crompton Corporation
Cytec Industries, Inc.
Dow Chemical Company/Union Carbide Corporation
E. I. du Pont de Nemours and Company
H. B. Fuller Company
PolyOne Corporation
Great Lakes Chemical Corporation
Imperial Chemical Industries PLC
Lyondell Petrochemical Company
Millennium Chemicals, Inc.
Rohm & Haas Company/Morton International
Solutia
Wellman, Inc.

                                       68

<PAGE>   9

                                    EXHIBIT C

                            EASTMAN CHEMICAL COMPANY
                          LONG-TERM PERFORMANCE SUBPLAN
                          2001-2003 PERFORMANCE PERIOD
                                  PAYOUT TABLE

<TABLE>
<CAPTION>
                   Eastman's TSR                  Payout Multiplier
                      Ranking                (Times Target Grant Amount)
                   -------------             ---------------------------
                   <S>                       <C>
                         1                              2.0 X
                         2                              1.9 X
                         3                              1.8 X
                         4                              1.7 X
                         5                              1.6 X
                         6                              1.4 X
                         7                              1.2 X
                         8                              1.0 X
                         9                              0.8 X
                        10                              0.6 X
                        11                              0.4 X
                        12                              0.2 X
                        13                              0.0 X
                        14                              0.0 X
                        15                              0.0 X
                        16                              0.0 X
</TABLE>

                                       69

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