Chemtura CORP
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>v105676_ex10-2.htm
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>Performance
        Award for the 2008 - 2010 Performance Period</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to its authority under the 2006 Chemtura Corporation Long-Term Incentive
        Plan
        (the &#8220;2006 LTIP&#8221;), and consistent with the purpose of the 2006 LTIP as stated
        therein, the Committee hereby establishes the Performance Award for the
        2008-2010 Performance Period (the &#8220;Performance Period&#8221;). Unless otherwise
        defined herein, all capitalized terms shall have the meaning given to such
        terms
        in or pursuant to the 2006 LTIP.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Performance Award will be based on accomplishment against goal for 2008,
        2009,
        and 2010 cumulative consolidated </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Earnings
        Before Interest Taxes, Depreciation and Amortization of Chemtura Corporation
        (&#8220;EBITDA&#8221;). </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        purposes of this Performance Period, EBITDA is the sum of operating income
        and
        depreciation &amp; amortization less other income/expense reported in the
        Company&#8217;s published financial statements adjusted for certain &#8220;Non-GAAP&#8221;
factors. These factors include but are not limited to charges associated
        with:
        facility closures severance and related costs; the cost of settlements and
        legal
        fees and expenses associated with historical anti-trust matters; merger
        integration costs; accelerated recognition of asset retirement obligations;
        costs associated with change in useful life of assets; gain / (loss) on any
        sale
        of businesses, joint ventures or equity interests, costs associated with
        the
        acquisition of a business; losses on early extinguishment of debt; and tax
        adjustments on any of the foregoing. Such charges will be net of any related
        gains or improvements during the Performance Period. The Company will provide
        to
        the OCG an annual update of the cumulative EBITDA adjusted to reflect the
        &#8220;shares vesting&#8221; due to sale of businesses during the Performance Period. Any
        adjustments for &#8220;non-GAAP&#8221; factors will be reviewed with the OGC Committee.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Performance
        Award Participants will be recommended to the Committee by the CEO. Target
        levels will be assigned to each Participant in the form of performance based
        restricted stock. No shares will vest until the conclusion of the 2008-2010
        LTIP
        on December 31, 2010, subject to the terms of the 2006 LTIP and will not
        be
        distributed prior to February 1, 2011.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Performance
        Awards will be paid out in shares of Chemtura restricted stock that will
        unrestrict according to the terms indicated on Attachment 1. Shares that
        unrestrict will earn dividends for the Performance Period. Restrictions on
        Performance Award shares will lapse upon completion of the Performance Period,
        based on results that are final and confirmed by the CFO, CEO and Chief Function
        and Services Officer and certified by the OCG Committee. In the event of
        a
        change-in-control during the Performance Period, 100% of the shares would
        vest,
        except that if the OCG Committee determines that a higher percentage is likely
        to have been earned due to actual performance, the Committee may instead
        award a
        higher number of shares. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Committee may at any time prior to payout of any Performance Award reduce
        the
        amount of the Performance Award to offset the effect or impact of extraordinary
        and/or nonrecurring events during the Performance Period, as determined by
        the
        Committee in its sole discretion.</font></div>
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