AWARD
NOTICE
NOTICE OF RESTRICTED STOCK
UNITS
AWARDED PURSUANT TO
THE
EASTMAN CHEMICAL
COMPANY
2007 OMNIBUS LONG-TERM
COMPENSATION PLAN
Recipient: James P.
Rogers
Number of Restricted Stock
Units: 50,000
Date of
Award: December 4, 2008
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Award of
Restricted Stock Unit . This Award Notice serves to notify
you that the Compensation and Management Development Committee (the
“Committee”) of the Board of Directors of Eastman
Chemical Company ("Company") has awarded to you, under the
Company’s 2007 Omnibus Long-Term Compensation Plan (the
"Plan"), the number of restricted stock units ("Restricted Stock
Units") set forth above, representing the right to receive the same
number of unrestricted shares of its $.01 par value Common Stock
("Common Stock"), subject to the terms of the Plan and
this Award Notice. The Plan is incorporated herein by
reference and made a part of this Award Notice. Terms not otherwise
defined herein have the respective meanings set forth in the
Plan.
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Lapse of
Restrictions and Vesting of Restricted Stock Units
.
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(a) Subject to
early vesting of 25,000 of the Restricted Stock Units as set forth
in Section 2(c) of this Award Notice, the performance
condition described in Section 2(b) of this Award Notice as to
25,000 of the Restricted Stock Units, and forfeiture of all of the
Restricted Stock Units prior to vesting as described in Sections 7
and 11 of this Award Notice, the Restricted Stock Units will vest
upon the earlier of (i) December 31, 2012 if and only if you are
still an employee of the Company or its Subsidiaries at that time;
or (ii) termination of your employment with the Company or its
Subsidiaries by reason of death or disability, with the number of
Restricted Stock Units set forth above prorated based on the number
of full calendar months in which you were employed during the
vesting period (the date described in clauses (i) or (ii) or in
Section 2(c), as applicable, is referred to herein as the "Vesting
Date").
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(b) The vesting
of 25,000 of the Restricted Stock Units shall also be conditioned
upon and subject to your satisfactory performance, as evaluated by
and determined in the sole discretion of the Committee, in the area
of management and leadership development, including the development
of internal candidates for senior leadership positions
.
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(c) In the discretion of the
Committee, the vesting of the 25,000 Restricted Stock Units not
subject to the performance condition of Section 2(b) of this Award
Notice may be prior to the date set forth in Section 2(a)(i) if and
only if you are still an employee of the Company or its
Subsidiaries at that time, but in no event before December 31,
2011.
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3.
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Issuance of
Shares Upon Vesting of Restricted Stock Units
. Subject to the other
terms of this Award Notice, the Company will either issue a
certificate or certificates for shares of Common Stock underlying
the vested Restricted Stock Units as promptly as practicable
following the Vesting Date or place the shares in your account
maintained by the Company's stock plan
administrator. The Company may withhold or require you
to remit a cash amount sufficient to satisfy all taxes required by
law to be withheld. Further, either the Company or you
may elect to satisfy the withholding requirement by having the
Company withhold shares of Common Stock having a Fair Market Value
on the date the tax is to be determined equal to the minimum
statutory total tax which could be imposed on the
transaction.
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Nontransferability of Restricted Stock Units;
Limitation on Issuance of Shares. The Restricted Stock Units may not,
except as otherwise provided in the Plan, be sold, assigned,
transferred, pledged, or encumbered in any way, whether by
operation of law or otherwise. After the Vesting Date,
certificates for the shares underlying the Restricted Stock Units
may be issued during your lifetime only to you, except in the case
of a permanent disability involving mental incapacity.
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5.
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Limitation
of Rights . Prior to issuance of shares to you
following the Vesting Date, you will have no voting or other rights
as a stockholder of the Company with respect to the Restricted
Stock Units or the underlying common shares. Neither the Plan nor
this Award or Award Notice gives you any right to remain employed
by the Company and its Subsidiaries.
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6.
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Dividend
Equivalents . The Restricted Stock Units entitle
you to dividend equivalents equal to any cash dividends paid during
the period that the Restricted Stock Units are outstanding and
unvested with respect to a corresponding number of shares of Common
Stock underlying Restricted Stock Units which vest on the Vesting
Date. All such accrued dividend equivalents will become payable in
cash by the Company into your account maintained by the
Company’s stock plan administrator upon the Vesting Date of
the Restricted Stock Units. Until payment, the dividend
equivalents shall be subject to the same terms and conditions as
the Restricted Stock Units to which such dividend equivalents
relate and shall be forfeited and not paid in the event that such
Restricted Stock Units are not vested and are forfeited.
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7.
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Termination . Upon termination of your employment
with the Company or its Subsidiaries prior to the Vesting Date,
other than for one of the reasons described in Section 2(a)(ii) of
this Award Notice, all of the Restricted Stock Units will be
canceled and forfeited by you to the Company without the payment of
any consideration by the Company. In such event, neither
you nor any of your successors, heirs, assigns, or personal
representatives will thereafter have any further rights or interest
in such shares or otherwise in this Award.
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8.
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Change in
Ownership; Change in Control . Article 14 of the Plan contains
certain special provisions that will apply to this Award in the
event of a Change in Ownership or Change in Control.
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9.
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Adjustment
of Shares . If
the number of outstanding shares of Common Stock changes through
the declaration of stock dividends or stock splits prior to the
Vesting Date, the units of Common Stock subject to this Award
automatically will be adjusted, according to the provisions of
Article 15 of the Plan. In the event of any other change
in the capital structure or the Common Stock of the Company or
other corporate events or transactions involving the Company, the
Committee is authorized to make appropriate adjustments to this
Award.
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10.
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Restrictions
on Issuance of Shares . If at any time the Company
determines that listing, registration, or qualification of the
Restricted Stock Units or of the shares of Common Stock subject to
this Award upon any securities exchange or under any state or
federal law, or the approval of any governmental agency, is
necessary or advisable as a condition to the award or issuance of
certificate(s) for the shares of Common Stock subject to this
Award, such award or issuance may not be made in whole or in part
unless and until such listing, registration, qualification, or
approval shall have been effected or obtained free of any
conditions not acceptable to the Company.
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11.
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Noncompetition; Confidentiality
. You will not, without
the written consent of the Company, either during your employment
by the Company or thereafter, disclose to anyone or make use of any
confidential information which you have acquired during your
employment relating to any of the business of the Company, except
as such disclosure or use may be required in connection with your
work as an employee of the Company. During your
employment by the Company, and for a period of two years after the
termination of such employment, you will not, 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 you have worked for the Company. 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. You will forfeit all rights under this Award
Notice to or related to the Restricted Stock Units if, in the
determination of the Committee, you have violated any of the
provisions of this Section 11, and in that event any payment or
other action with respect to the Restricted Stock Units shall be
made or taken, if at all, in the sole discretion of the
Committee.
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12.
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Plan
Controls . In
the event of any actual or alleged conflict between the provisions
of the Plan and the provisions of this Award Notice, the provisions
of the Plan will be controlling and determinative.
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AWARD
NOTICE
NOTICE OF RESTRICTED STOCK
UNITS
AWARDED PURSUANT TO
THE
EASTMAN CHEMICAL
COMPANY
2007 OMNIBUS LONG-TERM
COMPENSATION PLAN
Recipient: Mark J.
Costa
Number of Restricted Stock
Units: 25,000
Date of
Award: December 4, 2008
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1.
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Award of
Restricted Stock Unit . This Award Notice serves to notify
you that the Compensation and Management Development Committee (the
“Committee”) of the Board of Directors of Eastman
Chemical Company ("Company") has awarded to you, under the
Company’s 2007 Omnibus Long-Term Compensation Plan (the
"Plan"), the number of restricted stock units ("Restricted Stock
Units") set forth above, representing the right to receive the same
number of unrestricted shares of its $.01 par value Common Stock
("Common Stock"), subject to the terms of the Plan and
this Award Notice. The Plan is incorporated herein by
reference and made a part of this Award Notice. Term
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