Document:

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                                                                   EXHIBIT 10.34

                       FIRST INDUSTRIAL REALTY TRUST, INC.

                            2001 STOCK INCENTIVE PLAN

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                                                 TABLE OF CONTENTS
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SECTION 1.           General Purpose of the Plan; Definitions.....................................................1
SECTION 2.           Administration of Plan; Committee Authority to Select Participants and
                     Determine Awards.............................................................................2
SECTION 3.           Shares Issuable under the Plan; Mergers; Substitution........................................4
SECTION 4.           Eligibility..................................................................................4
SECTION 5.           Stock Options................................................................................5
SECTION 6.           Restricted Stock Awards......................................................................8
SECTION 7.           Performance Share Awards.....................................................................9
SECTION 8.           Stock Appreciation Rights....................................................................9
SECTION 9.           Dividend Equivalents........................................................................10
SECTION 10.          Performance Awards..........................................................................10
SECTION 11.          Tax Withholding.............................................................................11
SECTION 12.          Transfer, Leave of Absence, Etc.............................................................12
SECTION 13.          Amendments and Termination..................................................................12
SECTION 14.          Status of Plan..............................................................................12
SECTION 15.          Change of Control Provisions................................................................12
SECTION 16.          General Provisions..........................................................................14
SECTION 17.          Effective Date of Plan......................................................................14
SECTION 18.          Governing Law...............................................................................15

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                       FIRST INDUSTRIAL REALTY TRUST, INC.
                            2001 STOCK INCENTIVE PLAN

SECTION 1. General Purpose of the Plan; Definitions.

         The name of the plan is the First Industrial Realty Trust, Inc. 2001
Stock Incentive Plan (the "Plan"). The purpose of the Plan is to encourage and
enable the officers, employees and Directors of First Industrial Realty Trust,
Inc. (the "Company") and its Affiliates upon whose judgment, initiative and
efforts the Company largely depends for the successful conduct of its business
to acquire a proprietary interest in the Company. It is anticipated that
providing such persons with a direct stake in the Company's welfare will assure
a closer identification of their interests with those of the Company, thereby
stimulating their efforts on the Company's behalf and strengthening their desire
to remain with the Company.

         The following terms shall be defined as set forth below:

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

         "Affiliate" means any entity other than the Company and its
Subsidiaries that is designated by the Board or the Committee as a participating
employer under the Plan, provided that the Company directly or indirectly owns
at least 20% of the combined voting power of all classes of stock of such entity
or at least 20% of the ownership interests in such entity.

         "Award" or "Awards", except where referring to a particular category of
grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights, Restricted Stock Awards, Performance Share
Awards and Dividend Equivalents.

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

         "Cause" means the participant's dismissal as a result of (i) any
material breach by the participant of any agreement to which the participant and
the Company or an Affiliate are parties, (ii) any act (other than retirement) or
omission to act by the participant, including without limitation, the commission
of any crime (other than ordinary traffic violations), which may have a material
and adverse effect on the business of the Company or any Affiliate or on the
participant's ability to perform services for the Company or any Affiliate, or
(iii) any material misconduct or neglect of duties by the participant in
connection with the business or affairs of the Company or any Affiliate.

         "Change of Control" is defined in Section 15.

         "Code" means the Internal Revenue Code of 1986, as amended, and any
successor Code, and related rules, regulations and interpretations.

         "Committee" means any Committee of the Board referred to in Section 2.

         "Director" means a member of the Board.

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         "Disability" means disability as set forth in Section 22(e)(3) of the
Code.

          "Dividend Equivalent" means a right, granted under Section 9, to
receive cash, Stock, or other property equal in value to dividends paid with
respect to a specified number of shares of Stock or the excess of dividends paid
over a specified rate of return. Dividend Equivalents may be awarded on a
free-standing basis or in connection with another Award, and may be paid
currently or on a deferred basis.

         "Effective Date" means the date on which the Plan is approved by the
stockholders of the Company as set forth in Section 17.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and the related rules, regulations and interpretations.

         "Fair Market Value" on any given date means the last reported sale
price at which Stock is traded on such date or, if no Stock is traded on such
date, the most recent date on which Stock was traded, as reflected on the New
York Stock Exchange or, if applicable, any other national stock exchange which
is the principal trading market for the Stock.

         "Incentive Stock Option" means any Stock Option designated and
qualified as an "incentive stock option" as defined in Section 422 of the Code.

         "Non-Qualified Stock Option" means any Stock Option that is not an
Incentive Stock Option.

         "Option" or "Stock Option" means any option to purchase shares of Stock
granted pursuant to Section 5.

         "Parent" means a "parent corporation" as defined in Section 424(e) of
the Code.

         "Performance Share Award" means Awards granted pursuant to Section 7.

         "Restricted Stock Award" means Awards granted pursuant to Section 6.

         "Stock" means the Common Stock, $.01 par value per share, of the
Company, subject to adjustment pursuant to Section 3.

         "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations, beginning with the Company if each of the
corporations (other than the last corporation in the unbroken chain) owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in the chain.

SECTION 2. Administration of Plan; Committee Authority to Select Participants
           and Determine Awards.

         (a) Committee. The Plan shall be administered by a committee of not
less than two Directors, as appointed by the Board from time to time (the
"Committee"). Unless otherwise

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determined by the Board, each member of the Committee shall qualify as a
"non-employee director" under Rule 16b-3 issued pursuant to the Act and an
"outside director" under Section 162(m) of the Code.

         (b) Powers of Committee. The Committee shall have the power and
authority to grant Awards consistent with the terms of the Plan, including the
power and authority:

                  (i) to select the officers, employees and Directors of the
         Company and Affiliates to whom Awards may from time to time be granted;

                  (ii) to determine the time or times of grant, and the extent,
         if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock
         Appreciation Rights, Restricted Stock, Performance Shares and Dividend
         Equivalents, or any combination of the foregoing, granted to any
         officer, employee or Director;

                  (iii) to determine the number of shares to be covered by any
         Award granted to an officer, employee or Director;

                  (iv) to determine the terms and conditions, including
         restrictions, not inconsistent with the terms of the Plan, of any Award
         granted to an officer, employee or Director, which terms and conditions
         may differ among individual Awards and participants, and to approve the
         form of written instruments evidencing the Awards;

                  (v) to accelerate the exercisability or vesting of all or any
         portion of any Award granted to a participant;

                  (vi) subject to the provisions of Section 5(ii), to extend the
         period in which Stock Options granted may be exercised;

                  (vii) to determine whether, to what extent and under what
         circumstances Stock and other amounts payable with respect to an Award
         granted to a participant shall be deferred either automatically or at
         the election of the participant and whether and to what extent the
         Company shall pay or credit amounts equal to interest (at rates
         determined by the Committee) or dividends or deemed dividends on such
         deferrals; and

                  (viii) to adopt, alter and repeal such rules, guidelines and
         practices for administration of the Plan and for its own acts and
         proceedings as it shall deem advisable; to interpret the terms and
         provisions of the Plan and any Award (including related written
         instruments) granted to a participant; and to decide all disputes
         arising in connection with and make all determinations it deems
         advisable for the administration of the Plan.

         All decisions and interpretations of the Committee shall be binding on
all persons, including the Company and Plan participants.

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SECTION 3. Shares Issuable under the Plan; Mergers; Substitution.

         (a) Shares Issuable. The maximum number of shares of Stock reserved and
available for issuance under the Plan shall be 2,300,000. For purposes of this
limitation, the shares of Stock underlying any Awards which are forfeited,
canceled, reacquired by the Company, satisfied without the issuance of Stock or
otherwise terminated (other than by exercise) shall be added back to the shares
of Stock available for issuance under the Plan. Shares issued under the Plan may
be authorized but unissued shares or shares reacquired by the Company. Subject
to adjustment as provided in Section 3(b) below, (i) with respect to Stock
Appreciation Rights, Performance Share Awards and Restricted Stock Awards, the
maximum number of shares of Stock, in the aggregate, subject to such awards
granted under the Plan shall be 345,000 shares, (ii) the maximum number of
shares of Stock with respect to which Stock Options and Stock Appreciation
Rights may be granted during a calendar year to any participant under the Plan
shall be 500,000 shares and (iii) with respect to Performance Share Awards and
Restricted Stock Awards, the maximum number of shares of Stock subject to such
awards granted during a calendar year to any Participant under the Plan shall be
100,000 shares.

         (b) Stock Dividends, Mergers, etc. In the event of any
recapitalization, reclassification, split-up or consolidation of shares of
Stock, separation (including a spin-off), dividend on shares of Stock payable in
capital stock, or other similar change in capitalization of the Company or a
merger or consolidation of the Company or sale by the Company of all or a
portion of its assets or other similar event, the Committee shall make such
appropriate adjustments in the exercise prices of Awards, including Awards then
outstanding, in the number and kind of securities, cash or other property which
may be issued pursuant to Awards under the Plan, including Awards then
outstanding, and in the number of shares of Stock with respect to which Awards
may be granted (in the aggregate and to individual participants) as the
Committee deems equitable with a view toward maintaining the proportionate
interest of the participant and preserving the value of the Awards.

         (c) Substitute Awards. The Committee may grant Awards under the Plan in
substitution for stock and stock based awards held by employees of another
corporation who concurrently become employees of the Company or an Affiliate as
the result of a merger or consolidation of the employing corporation with the
Company or an Affiliate or the acquisition by the Company or an Affiliate of
property or stock of the employing corporation. The Committee may direct that
the substitute awards be granted on such terms and conditions as the Committee
considers appropriate in the circumstances.

SECTION 4. Eligibility.

         Participants in the Plan will be Directors and such full or part-time
officers and other employees of the Company and its Affiliates who are
responsible for or contribute to the management, growth or profitability of the
Company and its Affiliates and who are selected from time to time by the
Committee, in its sole discretion. Notwithstanding any provision of this Plan to
the contrary, an Award may be granted to a person, in connection with his or her
hiring as an employee, prior to the date the employee first performed services
for the Company or an Affiliate, provided that any such Award shall not become
exercisable or vested prior to the date the employee first performs such
services as an employee.

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SECTION 5. Stock Options.

         Any Stock Option granted under the Plan shall be in such form as the
Committee may from time to time approve.

         Stock Options granted under the Plan may be either Incentive Stock
Options or Non-Qualified Stock Options. To the extent that any option does not
qualify as an Incentive Stock Option, it shall constitute a Non-Qualified Stock
Option. No Incentive Stock Option may be granted under the Plan after the tenth
anniversary of the Effective Date. Incentive Stock Options may only be granted
to employees of the Company, a Parent of the Company or a Subsidiary.

         The Committee in its discretion may grant Stock Options to Directors or
to employees of the Company or any Affiliate. Stock Options granted to Directors
and employees pursuant to this Section 5 shall be subject to the following terms
and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable:

                  (i) Exercise Price. The per share exercise price of a Stock
         Option granted pursuant to this Section 5 shall be determined by the
         Committee at the time of grant. The per share exercise price of an
         Incentive Stock Option shall not be less than 100% of Fair Market Value
         on the date of grant. If an employee owns or is deemed to own (by
         reason of the attribution rules applicable under Section 424(d) of the
         Code) more than 10% of the combined voting power of all classes of
         stock of the Company or any Subsidiary or Parent corporation and an
         Incentive Stock Option is granted to such employee, the option price
         shall be not less than 110% of Fair Market Value on the grant date.

                  (ii) Option Term. The term of each Stock Option shall be fixed
         by the Committee, but no Incentive Stock Option shall be exercisable
         more than ten years after the date the option is granted. If an
         employee owns or is deemed to own (by reason of the attribution rules
         of Section 424(d) of the Code) more than 10% of the combined voting
         power of all classes of stock of the Company or any Subsidiary or
         Parent corporation and an Incentive Stock Option is granted to such
         employee, the term of such option shall be no more than five years from
         the date of grant.

                  (iii) Exercisability; Rights of a Shareholder. Stock Options
         shall become exercisable at such time or times, whether or not in
         installments, as shall be determined by the Committee at or after the
         grant date. The Committee may at any time accelerate the exercisability
         of all or any portion of any Stock Option. An optionee shall have the
         rights of a shareholder only as to shares acquired upon the exercise of
         a Stock Option and not as to unexercised Stock Options.

                  (iv) Method of Exercise. Stock Options may be exercised in
         whole or in part, by giving written notice of exercise to the Company,
         specifying the number of shares to be purchased. Payment of the
         purchase price may be made by one or more of the following methods:

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                           (A) In cash, by certified or bank check or other
                  instrument acceptable to the Committee or by wire transfer to
                  an account designated by the Company;

                           (B) In the form of shares of Stock that are not then
                  subject to restrictions under any Company plan, if permitted
                  by the Committee in its discretion. Such surrendered shares
                  shall be valued at Fair Market Value on the exercise date; or

                           (C) By the optionee delivering to the Company a
                  properly executed exercise notice together with irrevocable
                  instructions to a broker to promptly deliver to the Company
                  cash or a check payable and acceptable to the Company to pay
                  the purchase price; provided that in the event the optionee
                  chooses to pay the purchase price as so provided, the optionee
                  and the broker shall comply with such procedures and enter
                  into such agreements of indemnity and other agreements as the
                  Committee shall prescribe as a condition of such payment
                  procedure. Payment instruments will be received subject to
                  collection.

                  The delivery of certificates representing shares of Stock to
         be purchased pursuant to the exercise of the Stock Option will be
         contingent upon receipt from the Optionee (or a purchaser acting in his
         stead in accordance with the provisions of the Stock Option) by the
         Company of the full purchase price for such shares and the fulfillment
         of any other requirements contained in the Stock Option or applicable
         provisions of laws.

                  (v) Non-transferability of Options. No Incentive Stock Option
         shall be transferable by the optionee otherwise than by will or by the
         laws of descent and distribution, and all Incentive Stock Options shall
         be exercisable, during the optionee's lifetime, only by the optionee.
         Non-Qualified Stock Options granted under this Plan may be assigned or
         otherwise transferred by the participant only in the following
         circumstances: (i) by will or the laws of descent and distribution;
         (ii) by the participant to members of his or her "immediate family," to
         a trust established for the exclusive benefit of solely one or more
         members of the participant's "immediate family" and/or the participant,
         or to a partnership, limited liability company or corporation pursuant
         to which the only partners, members or shareholders, as the case may
         be, are one or more members of the participant's "immediate family"
         and/or the participant; or (iii) pursuant to a certified domestic
         relations order. Any Non-Qualified Stock Option held by a transferee
         will continue to be subject to the same terms and conditions that were
         applicable to the Option immediately prior to the transfer, except that
         the Option will be transferable by the transferee only by will or the
         laws of descent and distribution. For purposes hereof, "immediate
         family" means the participant's children, stepchildren, grandchildren,
         parents, stepparents, grandparents, spouse, siblings (including half
         brothers and sisters), in-laws, and relationships arising because of
         legal adoption.

                  (vi) Termination by Death. If any optionee's service with the
         Company and its Affiliates terminates by reason of death, the Stock
         Option may thereafter be exercised, to the extent exercisable at the
         date of death, by the legal representative or legatee of the optionee,
         for a period of six months (or such longer period as the Committee
         shall specify

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         at any time) from the date of death, or until the expiration of the
         stated term of the Option, if earlier.

                  (vii)     Termination by Reason of Disability.

                           (A) Any Stock Option held by an optionee whose
                  service with the Company and its Affiliates has terminated by
                  reason of Disability may thereafter be exercised, to the
                  extent it was exercisable at the time of such termination, for
                  a period of twelve months (or such longer period as the
                  Committee shall specify at any time) from the date of such
                  termination of service, or until the expiration of the stated
                  term of the Option, if earlier.

                           (B) The Committee shall have sole authority and
                  discretion to determine whether a participant's service has
                  been terminated by reason of Disability.

                           (C) Except as otherwise provided by the Committee at
                  the time of grant or otherwise, the death of an optionee
                  during a period provided in this Section 5(vii) for the
                  exercise of a Non-Qualified Stock Option, shall extend such
                  period for six months from the date of death, subject to
                  termination on the expiration of the stated term of the
                  Option, if earlier.

                  (viii) Termination for Cause. If any optionee's service with
         the Company and its Affiliates has been terminated for Cause, any Stock
         Option held by such optionee shall immediately terminate and be of no
         further force and effect; provided, however, that the Committee may, in
         its sole discretion, provide that such Stock Option can be exercised
         for a period of up to 30 days from the date of termination of service
         or until the expiration of the stated term of the Option, if earlier.

                  (ix) Other Termination. Unless otherwise determined by the
         Committee, if an optionee's service with the Company and its Affiliates
         terminates for any reason other than death, Disability, or for Cause,
         any Stock Option held by such optionee may thereafter be exercised, to
         the extent it was exercisable on the date of termination of service,
         for three months (or such longer period as the Committee shall specify
         at any time) from the date of termination of service or until the
         expiration of the stated term of the Option, if earlier.

                  (x) Annual Limit on Incentive Stock Options. To the extent
         required for "incentive stock option" treatment under Section 422 of
         the Code, the aggregate Fair Market Value (determined as of the time of
         grant) of the Stock with respect to which Incentive Stock Options
         granted under this Plan and any other plan of the Company or its
         Subsidiaries become exercisable for the first time by an optionee
         during any calendar year shall not exceed $100,000.

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                  (xi) Form of Settlement. Shares of Stock issued upon exercise
         of a Stock Option shall be free of all restrictions under the Plan,
         except as otherwise provided in this Plan.

SECTION 6. Restricted Stock Awards.

         (a) Nature of Restricted Stock Award. The Committee may grant
Restricted Stock Awards to Directors and employees of the Company or any
Affiliate. A Restricted Stock Award is an Award entitling the recipient to
acquire, at no cost or for a purchase price determined by the Committee, shares
of stock subject to such restrictions and conditions as the Committee may
determine at the time of grant ("Restricted Stock"). Conditions may be based on
continuing service and/or achievement of pre-established performance goals and
objectives. In addition, a Restricted Stock Award may be granted to a Director
or employee by the Committee in lieu of any compensation due to such Director or
employee.

         (b) Acceptance of Award. A participant who is granted a Restricted
Stock Award shall have no rights with respect to such Award unless the
participant shall have accepted the Award within 60 days (or such shorter date
as the Committee may specify) following the award date by making payment to the
Company, if required, by certified or bank check or other instrument or form of
payment acceptable to the Committee in an amount equal to the specified purchase
price, if any, of the shares covered by the Award and by executing and
delivering to the Company a written instrument that sets forth the terms and
conditions of the Restricted Stock in such form as the Committee shall
determine.

         (c) Rights as a Shareholder. Upon complying with Section 6(b) above, a
participant shall have all the rights of a shareholder with respect to the
Restricted Stock including voting and dividend rights, subject to
transferability restrictions and Company repurchase or forfeiture rights
described in this Section 6 and subject to such other conditions contained in
the written instrument evidencing the Restricted Stock Award. Unless the
Committee shall otherwise determine, certificates evidencing shares of
Restricted Stock shall remain in the possession of the Company until such shares
are vested as provided in Section 6(e) below.

         (d) Restrictions. Shares of Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as
specifically provided herein.

         (e) Vesting of Restricted Stock. The Committee at the time of grant
shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the
non-transferability of the Restricted Stock and the Company's right of
repurchase or forfeiture shall lapse. Subsequent to such date or dates and/or
the attainment of such pre-established performance goals, objectives and other
conditions, the shares on which all restrictions have lapsed shall no longer be
Restricted Stock and shall be deemed "vested."

         (f) Waiver, Deferral and Reinvestment of Dividends. The written
instrument evidencing the Restricted Stock Award may require or permit the
immediate payment, waiver, deferral or investment of dividends paid on the
Restricted Stock.

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SECTION 7. Performance Share Awards.

         (a) Nature of Performance Shares. A Performance Share Award is an award
entitling the recipient to acquire shares of Stock upon the attainment of
specified performance goals. The Committee may make Performance Share Awards
independent of or in connection with the granting of any other Award under the
Plan. Performance Share Awards may be granted under the Plan to Directors and
employees of the Company or any Affiliate, including those who qualify for
awards under other performance plans of the Company. The Committee in its sole
discretion shall determine whether and to whom Performance Share Awards shall be
made, the performance goals applicable under each such Award, the periods during
which performance is to be measured, and all other limitations and conditions
applicable to the awarded Performance Shares; provided, however, that the
Committee may rely on the performance goals and other standards applicable to
other performance based plans of the Company in setting the standards for
Performance Share Awards under the Plan.

         (b) Restrictions on Transfer. Performance Share Awards and all rights
with respect to such Awards may not be sold, assigned, transferred, pledged or
otherwise encumbered.

         (c) Rights as a Shareholder. A participant receiving a Performance
Share Award shall have the rights of a shareholder only as to shares actually
received by the participant under the Plan and not with respect to shares
subject to the Award but not actually received by the participant. A participant
shall be entitled to receive a stock certificate evidencing the acquisition of
shares of Stock under a Performance Share Award only upon satisfaction of all
conditions specified in the written instrument evidencing the Performance Share
Award (or in a performance plan adopted by the Committee).

         (d) Termination. Except as may otherwise be provided by the Committee
at any time prior to termination of service, a participant's rights in all
Performance Share Awards shall automatically terminate upon the participant's
termination of service with the Company and its Affiliates for any reason
(including, without limitation, death, Disability and for Cause).

         (e) Acceleration, Waiver, Etc. At any time prior to the participant's
termination of service with the Company and its Affiliates, the Committee may in
its sole discretion accelerate, waive or, subject to Section 13, amend any or
all of the goals, restrictions or conditions imposed under any Performance Share
Award; provided, however, that in no event shall any provision of the Plan be
construed as granting to the Committee any discretion to increase the amount of
compensation payable under any Performance Share Award intended to qualify as a
Performance Award under Section 10 below to the extent such an increase would
cause the amounts payable pursuant to the Performance Share Award to be
nondeductible in whole or in part pursuant to Section 162(m) of the Code and the
regulations thereunder, and the Committee shall have no such discretion
notwithstanding any provision of the Plan to the contrary.

SECTION 8. Stock Appreciation Rights.

         (a) Notice of Stock Appreciation Rights. A Stock Appreciation Right
("SAR") is a right entitling the participant to receive cash or Stock having a
fair market value equal to the appreciation in the Fair Market Value of a stated
number of shares from the date of grant, or in

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the case of rights granted in tandem with or by reference to an Option granted
prior to the grant of such rights, from the date of grant of the related Option
to the date of exercise. SARs may be granted to Directors and employees of the
Company or any Affiliate.

         (b) Terms of Awards. SARs may be granted in tandem with or with
reference to a related Option, in which event the participant may elect to
exercise either the Option or the SAR, but not both, as to the same share
subject to the Option and the SAR, or the SAR may be granted independently. In
the event of an Award with a related Option, the SAR shall be subject to the
terms and conditions of the related Option. In the event of an independent
Award, the SAR shall be subject to the terms and conditions determined by the
Committee.

         (c) Restrictions on Transfer. SARs shall not be transferred, assigned
or encumbered, except that SARs may be exercised by the executor, administrator
or personal representative of the deceased participant within six months of the
death of the participant (or such longer period as the Committee shall specify
at any time) and transferred pursuant to a certified domestic relations order.

         (d) Payment Upon Exercise. Upon exercise of an SAR, the participant
shall be paid the excess of the then Fair Market Value of the number of shares
to which the SAR relates over the Fair Market Value of such number of shares at
the date of grant of the SAR, or of the related Option, as the case may be. Such
excess shall be paid in cash or in Stock having a Fair Market Value equal to
such excess or in such combination thereof as the Committee shall determine.

SECTION 9. Dividend Equivalents.

         The Committee is authorized to grant Dividend Equivalents to Directors
and employees of the Company or any Affiliate. The Committee may provide, at the
date of grant or thereafter, that Dividend Equivalents shall be paid or
distributed when accrued or shall be deemed to have been reinvested in
additional Shares, or other investment vehicles as the Committee may specify,
provided that Dividend Equivalents (other than freestanding Dividend
Equivalents) shall be subject to all conditions and restrictions of the
underlying Awards to which they relate.

SECTION 10. Performance Awards.

         If the Committee determines that a Performance Share Award or a
Restricted Stock Award to be granted to a participant should qualify as
"performance-based compensation" for purposes of Section 162(m) of the Code, the
grant, vesting and/or settlement of such award shall be contingent upon
achievement of preestablished performance goals and other terms set forth in
this Section 10.

         (a) Performance Goals Generally. The performance goals for such awards
("Performance Awards") shall consist of one or more business criteria and a
targeted level or levels of performance with respect to each of such criteria,
as specified by the Committee consistent with this Section 10. Performance goals
shall be objective and shall otherwise meet the requirements of Section 162(m)
of the Code and regulations thereunder (including Regulation 1.162-27 and
successor regulations thereto). The Committee may determine that such
Performance Awards shall be granted, vested and/or settled upon achievement of
any one

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performance goal or that two or more of the performance goals must be achieved
as a condition to grant, vesting and/or settlement of such Performance Awards.
Performance goals may differ for Performance Awards granted to any one
participant or to different participants.

         (b) Business Criteria. One or more of the following business criteria
for the Company, on a consolidated basis, and/or for specified subsidiaries or
business units of the Company (except with respect to the total stockholder
return and earnings per share criteria), shall be used by the Committee in
establishing performance goals for such Performance Awards: (1) earnings,
including FFO; (2) revenues; (3) cash flow; (4) cash flow return on investment;
(5) return on assets; (6) return on investment; (7) return on capital; (8)
return on equity; (9) economic value added; (10) operating margin; (11) net
income; (12) pretax earnings; (13) pretax earnings before interest, depreciation
and amortization; (14) pretax operating earnings after interest expense and
before incentives, service fees, and extraordinary or special items; (15)
operating earnings; (16) total stockholder return; and (17) any of the above
goals as compared to the performance of a published or special index deemed
applicable by the Committee including, but not limited to, the Standard & Poor's
500 Stock Index.

         (c) Performance Period; Timing for Established Performance Goals.
Achievement of performance goals in respect of such Performance Awards shall be
measured over a performance period, as specified by the Committee. Performance
goals shall be established not later than 90 days after the beginning of any
performance period applicable to such Performance Awards, or at such other date
as may be required or permitted for "performance-based compensation" under
Section 162(m) of the Code.

         (d) Settlement of Performance Awards; Other Terms. Settlement of such
Performance Awards shall be in cash, Stock or other property, in the discretion
of the Committee. The Committee may, in its discretion, reduce the amount of a
settlement otherwise to be made in connection with such Performance Awards, but
may not exercise discretion to increase any such amount payable to a participant
in respect of a Performance Award subject to this Section 10. The Committee
shall specify the circumstances in which such Performance Awards shall be paid
or forfeited in the event of a termination of employment of the participant
prior to the end of a performance period or settlement of Performance Awards.

         (e) Written Determination. All determinations by the Committee as to
the establishment of performance goals or potential individual Performance
Awards and as to the achievement of performance goals relating to Performance
Awards under this Section 10 shall be made in writing in the case of any Award
intended to qualify under Section 162(m) of the Code.

SECTION 11. Tax Withholding.

         (a) Payment by Participant. Each participant shall, no later than the
date as of which the value of an Award or of any Stock or other amounts received
thereunder first becomes includible in the gross income of the participant for
Federal income tax purposes, pay to the Company, or make arrangements
satisfactory to the Committee regarding payment of, any Federal, state, or local
taxes of any kind required by law to be withheld with respect to such

                                       11
<PAGE>

income. The Company and its Affiliates shall, to the extent permitted by law,
have the right to deduct any such taxes from any payment of any kind otherwise
due to the participant.

         (b) Payment in Shares. A participant may elect, subject to such rules
and limitations as may be established by the Committee from time to time, to
have such tax withholding obligation satisfied, in whole or in part, by (i)
authorizing the Company to withhold from shares of Stock to be issued pursuant
to any Award a number of shares with an aggregate Fair Market Value (as of the
date the withholding is effected) that would satisfy the withholding amount due
(based on the minimum statutory rates), or (ii) transferring to the Company
shares of Stock owned by the participant with an aggregate Fair Market Value (as
of the date the withholding is effected) that would satisfy the withholding
amount due (based on the minimum statutory rates).

SECTION 12. Transfer, Leave of Absence, Etc.

         For purposes of the Plan, the following events shall not be deemed a
termination of service:

         (a) a transfer to the employment of the Company from an Affiliate or
from the Company to an Affiliate, or from one Affiliate to another; and

         (b) an approved leave of absence for military service or sickness,
or for any other purpose approved by the Company, if the employee's right to
re-employment is guaranteed either by a statute or by contract or under the
policy pursuant to which the leave of absence was granted or if the Committee
otherwise so provides in writing.

SECTION 13. Amendments and Termination.

         The Board may at any time amend or discontinue the Plan and the
Committee may at any time amend or cancel any outstanding Award, but no such
action shall adversely affect rights under any outstanding Award without the
holder's consent and, except as set forth in Section 3(b) above, no amendment to
any outstanding Award shall reduce the exercise price of the Award.

SECTION 14. Status of Plan.

         With respect to the portion of any Award which has not been exercised
and any payments in cash, Stock or other consideration not received by a
participant, a participant shall have no rights greater than those of a general
unsecured creditor of the Company unless the Committee shall otherwise expressly
determine in connection with any Award or Awards. In its sole discretion, the
Committee may authorize the creation of trusts or other arrangements to meet the
Company's obligations to deliver Stock or make payments with respect to Awards
hereunder, provided that the existence of such trusts or other arrangements is
consistent with the provision of the foregoing sentence.

SECTION 15. Change of Control Provisions.

         Upon the occurrence of a Change of Control as defined in this Section
15:

                                       12
<PAGE>

         (a) Each Stock Option and each Stock Appreciation Right shall
automatically become fully exercisable unless the Committee shall otherwise
expressly provide at the time of grant.

         (b) Restrictions and conditions on Awards of Restricted Stock,
Performance Shares and Dividend Equivalents shall automatically be deemed
waived, and the recipients of such Awards shall become entitled to receipt of
the maximum amount of Stock subject to such Awards unless the Committee shall
otherwise expressly provide at the time of grant.

         (c) Unless otherwise expressly provided at the time of grant,
participants who hold Options shall have the right, in lieu of exercising the
Option, to elect to surrender all or part of such Option to the Company and to
receive cash in an amount equal to the excess of (i) the higher of (x) the Fair
Market Value of a share of Stock on the date such right is exercised and (y) the
highest price paid for Stock or, in the case of securities convertible into
Stock or carrying a right to acquire Stock, the highest effective price (based
on the prices paid for such securities) at which such securities are convertible
into Stock or at which Stock may be acquired, by any person or group whose
acquisition of voting securities has resulted in a Change of Control of the
Company over (ii) the exercise price per share under the Option, multiplied by
the number of shares of Stock with respect to which such right is exercised.

         (d) "Change of Control" shall mean the occurrence of any one of the
following events:

                  (i) any "person", as such term is used in Sections 13(d) and
         14(d) of the Act (other than the Company, any of its Subsidiaries, any
         trustee, fiduciary or other person or entity holding securities under
         any employee benefit plan of the Company or any of its Subsidiaries),
         together with all "affiliates" and "associates" (as such terms are
         defined in Rule 12b-2 under the Act) of such person, shall become the
         "beneficial owner" (as such term is defined in Rule 13d-3 under the
         Act), directly or indirectly, of securities of the Company representing
         40% or more of either (A) the combined voting power of the Company's
         then outstanding securities having the right to vote in an election of
         the Company's Board of Directors ("Voting Securities") or (B) the then
         outstanding shares of Common Stock of the Company (in either such case
         other than as a result of acquisition of securities directly from the
         Company); or

                  (ii) persons who, as of the effective date of this Plan,
         constitute the Company's Board of Directors (the "Incumbent Directors")
         cease for any reason, including without limitation, as a result of a
         tender offer, proxy contest, merger or similar transaction, to
         constitute at least a majority of the Board, provided that any person
         becoming a director of the Company subsequent to the effective date of
         this Plan whose election or nomination for election was approved by a
         vote of at least a majority of the Incumbent Directors shall, for
         purposes of this Plan, be considered an Incumbent Director; or

                                       13
<PAGE>

                  (iii) the stockholders of the Company shall approve (A) any
         consolidation or merger of the Company or any Subsidiary where the
         stockholders of the Company, immediately prior to the consolidation or
         merger, would not, immediately after the consolidation or merger,
         beneficially own (as such term is defined in Rule 13d-3 under the Act),
         directly or indirectly, shares representing in the aggregate 50% or
         more of the voting stock of the corporation issuing cash or securities
         in the consolidation or merger (or of its ultimate parent corporation,
         if any), (B) any sale, lease, exchange or other transfer (in one
         transaction or a series of transactions contemplated or arranged by any
         party as a single plan) of all or substantially all of the assets of
         the Company or (C) any plan or proposal for the liquidation or
         dissolution of the Company.

         Notwithstanding the foregoing, a "Change of Control" shall not be
deemed to have occurred for purposes of the foregoing clause (i) solely as the
result of an acquisition of securities by the Company which, by reducing the
number of shares of Common Stock or other Voting Securities outstanding,
increases (x) the proportionate number of shares of Common Stock beneficially
owned by any person to 40% or more of the shares of Common Stock then
outstanding or (y) the proportionate voting power represented by the Voting
Securities beneficially owned by any person to 40% or more of the combined
voting power of all then outstanding Voting Securities; provided, however, that
if any person referred to in clause (x) or (y) of this sentence shall thereafter
become the beneficial owner of any additional shares of Common Stock or other
Voting Securities (other than pursuant to a stock split, stock dividend, or
similar transaction), then a "Change of Control" shall be deemed to have
occurred for purposes of the foregoing clause (i).

SECTION 16. General Provisions.

         (a) No Distribution; Compliance with Legal Requirements. The Committee
may require each person acquiring shares pursuant to an Award to represent to
and agree with the Company in writing that such person is acquiring the shares
without a view to distribution thereof. No shares of Stock shall be issued
pursuant to an Award until all applicable securities laws and other legal and
stock exchange requirements have been satisfied. The Committee may require the
placing of such stop-orders and restrictive legends on certificates for Stock
and Awards as it deems appropriate.

         (b) Delivery of Stock Certificates. Delivery of stock certificates to
participants under this Plan shall be deemed effected for all purposes when the
Company or a stock transfer agent of the Company shall have delivered such
certificates in the United States mail, addressed to the participant, at the
participant's last known address on file with the Company.

         (c) Other Compensation Arrangements; No Employment Rights. Nothing
contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, including trusts, subject to stockholder approval if
such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases. The adoption of the Plan and
the grant of Awards do not confer upon any employee any right to continued
employment with the Company or any Subsidiary.

                                       14
<PAGE>

SECTION 17. Effective Date of Plan.

         The Plan shall become effective upon approval by the stockholders of
the Company.

SECTION 18. Governing Law.

         THIS PLAN SHALL BE GOVERNED BY NEW YORK LAW WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICT OF LAWS THEREOF, EXCEPT TO THE EXTENT SUCH LAW IS
PREEMPTED BY FEDERAL LAW.

                                       15<PAGE>

                                                                   EXHIBIT 10.06

                              AMENDED AND RESTATED
                  EASTMAN EXECUTIVE DEFERRED COMPENSATION PLAN

                            EASTMAN CHEMICAL COMPANY

                                       98
<PAGE>

                              AMENDED AND RESTATED
                  EASTMAN EXECUTIVE DEFERRED COMPENSATION PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section           Title                                                                         Page
-------           -----                                                                         ----
<S>               <C>                                                                           <C>
Preamble ........................................................................................100
Section 1.        Definitions....................................................................100
Section 2.        Deferral of Compensation.......................................................103
Section 3.        Time of Election of Deferral...................................................103
Section 4.        Hypothetical Investments.......................................................103
Section 5.        Deferrals and Crediting Amounts to Accounts....................................104
Section 6.        Deferral Period................................................................104
Section 7.        Investment in the Stock Account and Transfers Between Accounts.................104
Section 8.        Payment of Deferred Compensation...............................................106
Section 9.        Payment of Deferred Compensation After Death...................................107
Section 10.       Acceleration of Payment for Hardship...........................................107
Section 11.       Non-Competition and Non-Disclosure Provision...................................108
Section 12.       Participant's Rights Unsecured.................................................109
Section 13.       No Right to Continued Employment...............................................109
Section 14.       Statement of Account...........................................................109
Section 15.       Deductions.....................................................................109
Section 16.       Administration.................................................................109
Section 17.       Amendment......................................................................109
Section 18.       Governing Law..................................................................109
Section 19.       Change in Control..............................................................110
Section 20.       Compliance with SEC Regulations................................................110
Section 21.       Successors and Assigns.........................................................110
</TABLE>

                                       99
<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 October 1, 2001.

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,
         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

                                      100
<PAGE>

         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; and, (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. 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 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,

                                      101
<PAGE>
         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 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.

                                      102
<PAGE>

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

         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; and (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.

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.

                                      103
<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. 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.

         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.

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. 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

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<PAGE>

         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.

         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 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

                                      105
<PAGE>

         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.

         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

                                      106
<PAGE>

         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 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.

                                      107
<PAGE>

         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 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 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 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
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.

                                      108
<PAGE>

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 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.

                                      109
<PAGE>

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.

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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<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
         Name of Subsidiary                         Effective Date
         ------------------                         --------------
<S>                                                 <C>
         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
</TABLE>

                                      111

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