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EXHIBIT 10.05
SEVERANCE AGREEMENT
Xxxxxxx Chemical Company, its successors and assigns, ("Xxxxxxx"), and Xxxxxxx
Xxxxxxxxxx ("Employee"), in exchange of their mutual promises and other
acknowledged consideration, agree as follows:
1. That Eastman will pay to Employee a Severance Payment ("Severance") of
approximately seven hundred and fifty thousand dollars ($750,000.00).
This Severance shall replace any other severance payment that Employee
would otherwise be entitled to receive. Such amount shall be paid to
Employee on or about January 1, 2002.
2. That on July 2, 2001 Eastman will xxxxx to Employee a non-qualified
stock option to purchase, on terms and conditions established by the
Company, fifty thousand shares of Eastman common stock at the closing
price on date of issue.
3. That any existing options held by Employee will vest according to the
schedules applicable under existing option grants.
4. That Eastman agrees to place Employee's residence located at 0000
Xxxxxxxxx Xxxx, Xxxxxxxxx, Xxxxxxxxx in Xxxxxxx'x Home Purchase
Program.
5. That Employee shall be entitled to receive all bonus payments,
incentive pay plans, pensions and benefits that he would ordinarily be
entitled to receive under plans or practice existing at the time of his
January 1, 2002 retirement.
6. That all terms and conditions of Employee Agreements previously
executed by Employee, including but not limited to those sections
relating to noncompetition, shall remain in effect. In addition,
Employee promises that he will not solicit business related to or
otherwise in competition with Eastman products or services from Eastman
customers for a period of two (2) years.
7. That this Severance Agreement is the complete and sole understanding of
the parties as to this Agreement. There are no other understanding or
agreements, either written or oral, that shall have any effect.
8. The parties acknowledge that Employee's entitlement to any benefit or
payment specified in this Severance Agreement is expressly contingent
on Employee rendering satisfactory performance through December 31,
2001, as determined by Eastman in good faith.
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Xxxxxxx Xxxxxxxxxx
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Xxxxxxx Chemical Company
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