Document:

Exhibit 10.2

                          EXECUTIVE SEVERANCE AGREEMENT

                  AGREEMENT made as of the 1st day of July, 2000, between HEXCEL
CORPORATION,  a Delaware corporation with offices at Stamford,  Connecticut (the
"Company"), and Robert F. Matthews (the "Executive").

                  WHEREAS, the Company is engaged in the business of developing,
manufacturing and marketing carbon fibers, fabrics,  high-performance  composite
materials and parts therefrom for the commercial  aerospace,  space and defense,
recreation and industrial markets throughout the world, and hereafter may engage
in other areas of business (collectively, the "Business");

                  WHEREAS,  the Executive will acquire  considerable  and unique
knowledge  of  substantial  value  to  the  Company  relating  to  the  conduct,
management and operation of the Business;

                  WHEREAS,  the Company is willing to provide the Executive with
certain  benefits in the event of the termination of the Executive's  employment
with the Company,  including in the event of a Change in Control (as hereinafter
defined); and

                  WHEREAS,  the Executive,  in  consideration  of receiving such
benefits  from the  Company,  is willing  to afford  certain  protection  to the
Company  in regard  to the  confidentiality  of its  information,  ownership  of
inventions and competitive activities.

                  NOW,  THEREFORE,  in  consideration of the mutual covenants of
the Executive and the Company and of the Executive's  continued  employment with
the Company, the parties agree as follows:

1. POSITION AND DUTIES.  The Executive  shall initially serve as Vice President,
Human Resources of the Company and shall have such duties,  responsibilities and
authority as are assigned to him by the Board of Directors,  the Chief Executive
Officer or the President of the Company in connection  with such  position.  The
Executive  shall  devote  substantially  all his working time and efforts to the
business and affairs of the Company.

2. PLACE OF PERFORMANCE.  In connection with the Executive's  employment by the
Company, the Executive shall be based at the offices of the Company in Stamford,
Connecticut,  except for  required  travel on the  Company's business.

3. TERMINATION. The Executive's employment hereunder may be terminated under the
following circumstances:

(a) DEATH. The Executive's employment hereunder shall automatically terminate
upon his death.

(b) DISABILITY.  The Company may terminate the Executive's  employment hereunder
due  to the  Executive's  inability  to  perform  the  customary  duties  of his
employment by reason of any medical or  psychological  illness or condition that
is  expected to be  permanent  or of  indefinite  duration,  excluding  any such
illness or  condition  that  results  from  intentional  self-inflicted  injury,
alcoholism or drug abuse.

(c) CAUSE.  The Company may terminate the  Executive's  employment hereunder for
Cause.  The following shall constitute Cause:

(i) the willful and continued failure by the Executive to substantially  perform
his duties with the  Company  (other than any such  failure  resulting  from the
Executive's incapability due to physical or mental illness or any such actual or
anticipated  failure  after  the  issuance  of a Notice  of  Termination  by the
Executive for Good Reason) after demand for substantial performance is delivered
by the  Company  that  specifically  identifies  the manner in which the Company
believes the Executive has not substantially performed his duties; or

(ii) the willful  engaging by the Executive in misconduct  that is  demonstrably
and materially injurious to the Company,  monetarily or otherwise including, but
not limited to,  conduct that  violates the covenant not to compete in Section 6
hereof.  No act, or failure to act, on the Executive's  part shall be considered
"willful"  unless  done,  or  omitted  to be done,  by him not in good faith and
without  reasonable  belief that his action or omission was in the best interest
of the Company. Notwithstanding the foregoing, the Executive shall not be deemed
to have been  terminated for Cause without (i) reasonable  notice from the Board
to the  Executive  setting  forth the reasons  for the  Company's  intention  to
terminate for Cause, (ii) delivery to the Executive of a resolution duly adopted
by the  affirmative  vote of  two-thirds  or more of the  Board  then in  office
(excluding  the  Executive  if he is then a member of the Board) at a meeting of
the Board  called  and held for such  purpose,  finding  that in the good  faith
opinion of the Board,  the Executive was guilty of the conduct  herein set forth
and specifying the particulars  thereof in detail,  (iii) an opportunity for the
Executive,  together  with his counsel,  to be heard before the Board,  and (iv)
delivery to the Executive of a Notice of Termination  from the Board  specifying
the particulars thereof in detail.

(d)      GOOD REASON.  The Executive may terminate his employment  hereunder for
Good Reason.  The following  shall constitute Good Reason:

(i) A  diminution  in the  Executive's  position,  duties,  responsibilities  or
authority  (except during periods when the Executive is unable to perform all or
substantially  all of his  duties or  responsibilities  on  account  of  illness
(either physical or mental) or other incapacity);

(ii)   A reduction in the  Executive's annual rate of base salary as in effect
on the date hereof or as the same may be increased from time to time;

(iii)  Failure by the  Company to continue  in effect any  compensation  plan in
which the  Executive  participates  which is material to the  Executive's  total
compensation, unless an equitable arrangement (embodied in an ongoing substitute
plan) has been made with  respect  to such plan,  or  failure by the  Company to
continue the Executive's participation therein (or in such substitute plan) on a
basis not materially less favorable to the Executive;

(iv) Failure by the Company to continue to provide the  Executive  with benefits
substantially  similar  to  those  enjoyed  by the  Executive  under  any of the
Company's pension,  savings,  life insurance,  medical,  health and accident, or
disability  plans  in  which  the  Executive  was   participating   (except  for
across-the-board  changes  similarly  affecting  all  senior  executives  of the
Company and all senior  executives of any Person in control of the Company),  or
failure by the Company to continue to provide the  Executive  with the number of
paid  vacation  days per year equal to the greater of (i) 20 and (ii) the number
to which the  Executive is entitled in accordance  with the  Company's  vacation
policy;

(v)  Failure to provide facilities  or services which  are suitable to the
Executive's position;

(vi) Failure of any successor (whether direct or indirect,  by purchase of stock
or assets,  merger,  consolidation  or  otherwise)  to the Company to assume the
Company's  obligations  hereunder or failure by the Company to remain  liable to
the Executive hereunder after such assumption;

(vii) Any termination by the Company of the Executive's  employment which is not
effected  pursuant to a Notice of Termination  satisfying the  requirements of a
Notice of Termination contained in this Agreement;

(viii) The  relocation  of the  Executive's  principal  place of employment to a
location  more than fifty (50) miles  from the  Executive's  principal  place of
employment as identified in Section 2 hereof; or

(ix)  Failure  to  pay  the   Executive  any  portion  of  current  or  deferred
compensation within seven (7) days of the date such compensation is due.

The Executive's  continued employment shall not constitute consent to, or waiver
of rights with respect to, any circumstance  constituting Good Reason hereunder;
provided,  however, that the Executive shall be deemed to have waived his rights
pursuant to  circumstances  constituting  Good Reason  hereunder if he shall not
have  provided  the  Company a Notice of  Termination  within  ninety  (90) days
following his knowledge of the  occurrence of  circumstances  constituting  Good
Reason.

(e) OTHER THAN  DEATH,  DISABILITY,  CAUSE OR GOOD  REASON.  (i) The Company may
terminate the Executive's employment, other than as provided in Sections (3)(a),
(b) or (c) hereof,  upon written  notice to the Executive and (ii) the Executive
may terminate his employment with the Company, other than as provided in Section
3(d) hereof, upon written notice to the Company.

(f)  NOTICE OF  TERMINATION;  DATE OF  TERMINATION.  Any  termin-ation  of the
Executive's  employment  by the Company or by the Executive  (other than a
termination  pursuant to Section 3(a) hereof) shall be  communicated by written
Notice of Termination to the other party hereto in accordance  with  Section 10.
For purposes of this Agreement,

     i) "Notice of  Termination"  shall mean a notice  which shall  indicate the
specific termination provision in this Agreement relied upon and shall set forth
in reasonable detail the facts and circumstances  claimed to provide a basis for
termination of the Executive's employment under the provision so indicated, and

     (ii) "Date of Termination" shall mean (A) if the Executive's  employment is
terminated  pursuant  to  Section  3(a),  the  date  of  his  death,  (B) if the
Executive's employment is terminated pursuant to Section 3(b), thirty days after
Notice of  Termination  is given  (provided  that the  Executive  shall not have
returned substantially to full-time performance of the Executive's duties during
such  thirty  day  period),  (C) if the  Executive's  employment  is  terminated
pursuant to  Sections  3(c),  (d) or (e),  the date  specified  in the Notice of
Termination (provided that such date shall not be more than thirty days from the
date Notice of Termination is given and, in the case of a termination for Cause,
shall  not be less than  fifteen  days from the date  Notice of  Termination  is
given),  or (D) if the Executive  terminates his employment and fails to provide
written notice to the Company of such termination, the date of such termination.

4. COMPENSATION UPON DEATH, DISABILITY OR TERMINATION.

(a) If the Executive's  employment is terminated by his death, the Company shall
pay the Executive's legal  representative (i) at the time such payments are due,
the Executive's  full base salary through the Date of Termination at the rate in
effect at the Date of Termination and all other unpaid amounts, if any, to which
the  Executive  is  entitled  as  of  the  Date  of  Termination  including  any
reimbursable business expenses and amounts earned under any compensation plan or
program  (including  the Bonus Plan) and (ii) within ten days following the date
of the  Executive's  death,  a lump sum payment in an amount equal to the sum of
(A) the  Executive's  annual base salary in effect as of the Date of Termination
and (B) the  Executive's  Average Annual Bonus (the term "Average  Annual Bonus"
shall mean the average of the last three  annual  bonus  amounts  awarded to the
Executive under the Company's  Management  Incentive  Compensation  Plan, or any
successor,  alternate  or  supplemental  plan  (the  "Bonus  Plan")  or,  if the
Executive  has not  participated  in the Bonus Plan for three  completed  annual
award periods,  the average of the annual bonus amounts  awarded,  provided that
any award made in respect of an annual award period in which the  Executive  did
not participate  for the full period (the "Pro-Rata  Award") shall be annualized
for purposes of computing the Average Bonus Amount by  multiplying  the Pro-Rata
Award by a fraction,  of which the numerator is 365 and the  denominator  is the
number of days during  which the  Executive  participated  in such annual  award
period).

(b) During any period that the Executive  fails to perform his duties  hereunder
as a result of incapacity due to physical or mental illness the Executive  shall
continue  to  receive  his full base  salary at the rate then in effect for such
period (offset by any payments to the Executive  received pursuant to disability
benefit  plans  maintained  by the Company)  until his  employment is terminated
pursuant to Section 3(b) hereof; and within ten days following such termination,
the Company shall pay the Executive (i) all unpaid amounts, if any, to which the
Executive is entitled as of the Date of Termination  including any  reimbursable
business  expenses  and amounts  earned under any  compensation  plan or program
(including the Bonus Plan) and (ii) a lump sum payment in an amount equal to the
sum of (A) the  Executive's  annual  base  salary  in  effect  as of the Date of
Termination and (B) the Executive's Average Annual Bonus.

(c) If the  Executive's  employment is terminated by the Company for Cause or by
the  Executive  for other than Good Reason,  the Company  shall at the time such
payments  are due pay the  Executive  his full base  salary  through the Date of
Termination at the rate in effect at the time Notice of Termination is given and
all other unpaid  amounts,  if any, to which the Executive is entitled as of the
Date of Termination  including any  reimbursable  business  expenses and amounts
earned under any  compensation  plan or program  (including the Bonus Plan), and
the Company  shall,  thereafter,  have no further  obligations  to the Executive
under this Agreement.

(d) If (1) the Company shall terminate the Executive's employment other than for
Disability  and other than for Cause or (2) the  Executive  shall  terminate his
employment for Good Reason, then

(i) the Company  shall pay the  Executive  on the Date of  Termination,  by wire
transfer to the bank account  designated by the Executive,  the Executive's full
base salary  through the Date of  Termination  at the rate in effect at the time
Notice of Termination is given  (disregarding any reduction in salary rate which
would  constitute a Good Reason) and all other unpaid amounts,  if any, to which
the  Executive  is  entitled  as  of  the  Date  of  Termination  including  any
reimbursable business expenses and amounts earned under any compensation plan or
program (including the Bonus Plan);

(ii) in  lieu of any  further  salary  payments  to the  Executive  for  periods
subsequent to the Date of Termination, the Company shall pay to the Executive on
the Date of Termination,  by wire transfer to the bank account designated by the
Executive,  an amount equal to the product of (A) the sum of (1) the Executive's
annual  base  salary in effect at the time the  Notice of  Termination  is given
(disregarding any reduction in salary rate which would constitute a Good Reason)
and (2) the  Executive's  Average  Annual  Bonus,  and (B) (x) if the  Executive
terminates his employment or the Company terminates the Executive's  employment,
in either case within two years after the occurrence of a Change in Control, the
number two or (y) in any other case, the number one; and

(iii) the Company shall continue the participation of the Executive for a period
of one year (except,  if the Executive  terminates his employment or the Company
terminates the Executive's employment, in either case within two years after the
occurrence  of a Change in  Control,  such period  shall be two  years),  in all
medical,  health,  life and other employee "welfare" plans and programs in which
the  Executive  participated  immediately  prior  to the  Date  of  Termination,
provided that the  Executive's  continued  participation  is possible  under the
general terms and  provisions of such plans and programs.  In the event that the
Executive's  participation  in any such plan or program is barred,  the  Company
shall by other means  provide the Executive  with  benefits  equivalent to those
which the  Executive  would  otherwise  have been entitled to receive under such
plans and programs from which his continued participation is barred.

(e) If the Company shall  terminate the  Executive's  employment  other than for
Cause, or the Executive  shall terminate his employment for Good Reason,  during
the period of a  Potential  Change in Control or at the request of a person who,
directly or indirectly,  takes any action designed to cause a Change in Control,
then the Company shall make payments and provide benefits to the Executive under
this Agreement as though a Change in Control had occurred  immediately  prior to
such termination.  A "Potential Change in Control" shall exist during the period
commencing  at the time the Company  enters into any  agreement  or  arrangement
which,  if  consummated,  would  result in a Change in Control and ending at the
time such agreement or arrangement  either (i) results in a Change in Control or
(ii) terminates, expires or otherwise becomes of no further force or effect.

(f) For  purposes  of this Agreement, a "Change in Control" shall mean the first
to occur of the following events:

(1) (i) Any person (as defined in Section 3(a)(9) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), as modified and used in Sections 13(d)
and 14(d) of the Exchange Act, but excluding Ciba for so long as Ciba is subject
to the  restrictions  imposed by the  Governance  Agreement)  (a "Person") is or
becomes the Beneficial Owner (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of 20% or more of either (A) the then outstanding Common Stock
of the Company (the "Outstanding Common Stock") or (B) the combined voting power
of the then outstanding securities entitled to vote generally in the election of
directors of the Company (the "Total Voting  Power");  excluding,  however,  the
following:  (x) any  acquisition  by the Company or any of its affiliates or (y)
any  acquisition by any employee  benefit plan (or related  trust)  sponsored or
maintained by the Company or any of its  affiliates  and (ii) Ciba  Beneficially
Owns, in the aggregate,  a lesser percentage of the Total Voting Power than such
Person Beneficially Owns;

(2) A change in the composition of the Board such that the  individuals  who, as
of the effective date of this Agreement,  constitute the Board (such individuals
shall be  hereinafter  referred to as the "Incumbent  Directors")  cease for any
reason to constitute at least a majority of the Board;  provided,  however,  for
purposes  of this  definition,  that  any  individual  who  becomes  a  director
subsequent to such effective date, whose election, or nomination for election by
the  Company's  stockholders,  was made or approved  pursuant to the  Governance
Agreement  or by a vote of at least a majority of the  Incumbent  Directors  (or
directors  whose election or nomination for election was previously so approved)
shall be considered a member of the Incumbent  Board;  but,  provided,  further,
that any such individual  whose initial  assumption of office occurs as a result
of either an actual or  threatened  election  contest (as such terms are used in
Rule 14a-11 of  Regulation  14A  promulgated  under the  Exchange  Act) or other
actual or  threatened  solicitation  of proxies or consents by or on behalf of a
person or legal entity other than the Board shall not be so  considered a member
of the Incumbent Board;

(3) The  effective  date of a  reorganization,  merger or  consolidation  by the
Company,  or the approval by the  stockholders of the Company of a sale or other
disposition of all or substantially all of the assets of the Company ("Corporate
Transaction");  excluding, however, such a Corporate Transaction (1) pursuant to
which all or  substantially  all of the  individuals  and  entities  who are the
beneficial  owners,  respectively,  of the  Outstanding  Common  Stock and Total
Voting Power immediately  prior to such Corporate  Transaction will beneficially
own,  directly or indirectly,  more than 50%,  respectively,  of the outstanding
common stock and the combined  voting power of the then  outstanding  securities
entitled to vote generally in the election of directors of the company resulting
from such Corporate Transaction  (including,  without limitation,  a corporation
which as a result of such  transaction  owns the Company or all or substantially
all of the Company's assets either directly or through one or more subsidiaries)
in substantially  the same proportions as their ownership,  immediately prior to
such Corporate  Transaction,  of the  Outstanding  Common Stock and Total Voting
Power,  as the case may be, or (2) after  which no  Person  beneficially  owns a
greater  percentage  of  the  combined  voting  power  of the  then  outstanding
securities  entitled to vote  generally  in the  election of  directors  of such
corporation than does Ciba;

(4) Ciba shall become the Beneficial  Owner of more than 57.5% of the Total
Voting Power; or

(5)  The  approval  by  the  stockholders  of  the  Company  of a  complete
liquidation or dissolution of the Company.

     For  purposes of this  Section  4(f),  (x) the term "Ciba"  shall mean Ciba
Specialty  Chemicals  Holding  Inc.,  a  Swiss  corporation,  together  with  it
affiliates holding Company voting securities  pursuant to Section 4.01(b) of the
Governance Agreement, (y) the term "Governance Agreement" shall have the meaning
given in that certain Strategic Alliance Agreement among the Company, Ciba-Geigy
Limited and Ciba Geigy Corporation,  dated as of September 29, 1995, as amended,
and any of their respective permitted successors or assigns thereunder,  and (z)
the consolidation  between Ciba and Clariant shall be deemed not to be a "Change
in Control."

(g)  Notwithstanding  any other provisions of this Agreement,  in the event that
any payment,  benefit,  property or right received or to be received by the
Executive in connection with a Change in Control or the Executive's  termination
of  employment  (whether  pursuant to the terms of this  Agreement  or any other
plan, arrangement or agreement with the Company, any Person whose actions result
in a Change in Control or any Person affiliated with the Company or such Person)
(all such payments,  benefits,  properties and rights being hereinafter referred
to as the "Total  Payments") would be subject (in whole or part) to the tax (the
"Excise Tax")  imposed by Section 4999 of the Internal  Revenue Code of 1986, as
amended, or any successor provision (the "Code"), then the payments and benefits
provided under Section 4(d) or 4(e) hereof ("Severance Payments") which are cash
shall first be reduced,  and the noncash Severance  Payments shall thereafter be
reduced,  to the extent  necessary  so that no portion of the Total  Payments is
subject  to the  Excise  Tax,  but  only  if (A) the net  amount  of such  Total
Payments, as so reduced (and after subtracting the net amount of federal,  state
and local income taxes on such reduced Total  Payments) is greater than or equal
to (B) the net amount of such Total  Payments  without such reduction (but after
subtracting  the net amount of  federal,  state and local  income  taxes on such
Total  Payments  and the  amount of Excise Tax to which the  Executive  would be
subject in respect of such unreduced Total Payments);  provided,  however,  that
the  Executive  may elect (by  waiving the  receipt or  enjoyment  of all or any
portion of the noncash  Severance  Payments at such time and in such manner that
the  Severance  Payments so waived shall not  constitute a "payment"  within the
meaning of section 280G(b) of the Code) to have the noncash  Severance  Payments
reduced (or eliminated)  prior to any reduction of the cash Severance  Payments.
For purposes of  determining  whether and the extent to which the Total Payments
will be subject to the  Excise  Tax (i) no  portion  of the Total  Payments  the
receipt or enjoyment of which the  Executive  shall have waived at such time and
in such manner as not to  constitute  a "payment"  within the meaning of section
280G(b) of the Code shall be taken  into  account,  (ii) no portion of the Total
Payments  shall be taken  into  account  which,  in the  written  opinion of tax
counsel ("Tax Counsel")  reasonably  acceptable to the Executive and selected by
the accounting firm (the "Auditor") which was,  immediately  prior to the Change
in Control, the Company's  independent auditor, does not constitute a "parachute
payment"  within the meaning of section  280G(b)(2)  of the Code  (including  by
reason of section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax,
no portion of such Total  Payments  shall be taken into  account  which,  in the
written opinion of Tax Counsel, constitutes reasonable compensation for services
actually rendered,  within the meaning of section  280G(b)(4)(B) of the Code, in
excess of the Base Amount allocable to such reasonable  compensation,  and (iii)
the value of any noncash benefit or any deferred  payment or benefit included in
the Total  Payments  shall be determined  by the Auditor in accordance  with the
principles of sections 280G(d)(3) and (4) of the Code. At the time that payments
are made under this  Agreement,  the Company shall provide the Executive  with a
written  statement  setting  forth  the  manner  in  which  such  payments  were
calculated and the basis for such calculations  including,  without  limitation,
any  opinions or other advice the Company has  received  from Tax  Counsel,  the
Auditor or other advisors or consultants  (and all such opinions or advice shall
be in writing, shall be attached to the statement and shall expressly state that
the  Executive  may rely  thereon).  If the  Executive  objects to the Company's
calculations,  the  Company  shall  pay to the  Executive  such  portion  of the
Severance Payments (up to 100% thereof) as the Executive determines is necessary
to result in the proper  application of the first sentence of this Section 4(g).
The Executive and the Company shall each reasonably  cooperate with the other in
connection  with any  administrative  or  judicial  proceedings  concerning  the
existence  or amount of  liability  for  Excise  Tax with  respect  to the Total
Payments.

5. NO MITIGATION.  The Executive shall not be required to mitigate the amount of
any payment  provided  for in this  Agreement  by seeking  other  employment  or
otherwise,  nor shall the amount of any payment or benefit  provided for in this
Agreement be reduced by any  compensation  earned by the Executive as the result
of employment by another employer, by retirement benefits, by offset against any
amount claimed to be owed by the Executive to the Company, or otherwise.

6.  COVENANT  NOT TO  COMPETE.  The  Executive  acknowledges  that,  as a senior
management  employee,  the Executive will be involved,  on a high level,  in the
development,  implementation  and  management of the Company's  global  business
plans,   including  those  which  involve  the  Company's  finances,   research,
marketing,  planning,  operations,  and acquisition strategies. By virtue of the
Executive's  position and knowledge of the Company,  the Executive  acknowledges
that  his  employment  by a  competitor  of the  Company  represents  a  serious
competitive  danger  to the  Company,  and  that  the  use  of  the  Executive's
experience and knowledge about the Company's business, strategies and plans by a
competitor can and would  constitute a valuable  competitive  advantage over the
Company. In view of the foregoing,  and in consideration of the payments made to
the Executive under this Agreement,  the Executive covenants and agrees that, if
the  Executive's  employment  is  terminated  and the Company has  fulfilled its
obligations  under this  Agreement,  for a period of two years after the Date of
Termination  the  Executive  will  not  engage,  in any  capacity,  directly  or
indirectly,  including but not limited as employee, agent, consultant,  manager,
executive,  owner or stockholder (except as a passive investor holding less than
a 5% equity  interest  in any  enterprise)  in any  business  entity  engaged in
competition  with  the  Business  conducted  by  the  Company  on  the  Date  of
Termination anywhere in the world; provided,  that the Executive may be employed
by  a  competitor  of  the  Company  so  long  as  the  Executive's  duties  and
responsibilities do not relate directly or indirectly to the business segment of
the new employer which is actually or potentially competitive with the Business.

7.  ASSIGNMENT  OF  INVENTIONS.   The  Executive   agrees  that  all  processes,
technologies, designs and inventions, including new contributions, improvements,
ideas and discoveries,  whether  patentable or not (collectively  "Inventions"),
conceived,  developed,  invented or made by the  Executive  prior to the Date of
Termination shall belong to the Company,  provided that such Inventions grew out
of the  Executive's  work  with  the  Company  or any  of  its  subsidiaries  or
affiliates,   are  related  in  any  manner  to  the  business   (commercial  or
experimental)  of the Company or any of its  subsidiaries  or  affiliates or are
conceived  or  made on the  Company's  time  or  with  the use of the  Company's
facilities or materials.  At the request of the Company, the Executive shall (i)
promptly  disclose such  Inventions to the Company,  (ii) assign to the Company,
without additional compensation,  all patent and other rights to such Inventions
for the United States and foreign countries,  (iii) sign all papers necessary to
carry out the  foregoing,  and (iv) give  testimony or otherwise  take action in
support of the Executive's  status as the inventor of such  Inventions,  in each
case at the Company's expense.

8.   CONFIDENTIALITY.   In  addition  to  any  obligation  regarding Inventions,
the  Executive   acknowledges  that  the  trade  secrets  and confidential and
proprietary  information of the Company,  its subsidiaries and affiliates,
including without limitation:  (a) unpublished information concerning:

(i)      research activities and plans,
(ii)     marketing or sales plans,
(iii)    pricing or pricing strategies,
(iv)     operational techniques, and
(v)      strategic plans;

(b)  unpublished financial information, including information concerning
revenues, profits and profit margins;

(c)  internal confidential manuals; and

(d) any "material inside information" as such phrase is used for purposes of the
Securities Exchange Act of 1934, as amended;  all constitute  valuable,  special
and unique  information of the Company,  its  subsidiaries  and  affiliates.  In
recognition  of this fact,  the  Executive  agrees that the  Executive  will not
disclose  any such trade  secrets or  confidential  or  proprietary  information
(except (i) information  which becomes publicly  available  without violation of
this Agreement, (ii) information of which the Executive,  prior to disclosure by
the  Executive,  did not know and  should not have  known was  disclosed  to the
Executive by a third party in violation of any other person's confidentiality or
fiduciary  obligation,  (iii)  disclosure  required in connection with any legal
process (provided the Executive promptly gives the Company written notice of any
legal process seeking to compel such disclosure and reasonably cooperates in the
Company's  attempt to eliminate or limit the scope of such  disclosure) and (iv)
disclosure  while employed by the Company which the Executive  reasonably and in
good faith  believes to be in or not opposed to the interests of the Company) to
any person,  firm,  corporation,  association or other entity, for any reason or
purpose whatsoever, nor shall the Executive make use of any such information for
the benefit of any person, firm, corporation or other entity except on behalf of
the Company, its subsidiaries and affiliates.

9. BINDING AGREEMENT.  This Agreement and all rights of the Executive  hereunder
shall inure to the benefit of and be enforceable by the Executive's  personal or
legal   representatives,    executors,   administrators,    successors,   heirs,
distributees,  devisees  and  legatees.  If the  Executive  should die while any
amounts would still be payable to him hereunder if he had continued to live, all
such amounts, unless otherwise provided in this Agreement,  shall be paid to the
Executive's  devisee,  legatee,  or  other  designee  or,  if  there  be no such
designee, to the Executive's estate.

10. NOTICE.  Notices,  demands and all other communications provided for in this
Agreement  shall be in writing  and shall be deemed to have been duly given when
delivered,  if delivered  personally,  or mailed by United  States  certified or
registered mail, return receipt requested, postage prepaid, and when received if
delivered otherwise, addressed as follows:

                  If to the Executive:

                           Robert F. Matthews
                           14 Scattergood Circle
                           Trumbull,  CT  06611

                  If to the Company:

                           Hexcel Corporation
                           281 Tresser Blvd.
                           Stamford, CT  06901-3238

                           Attn:    General Counsel

or to such other address as any party may have furnished to the other in writing
in  accordance  herewith,  except  that  notices of change of  address  shall be
effective only upon receipt.

11. GENERAL PROVISIONS.  No provision of this Agreement may be modified,  waived
or  discharged  unless such  waiver,  modification  or discharge is agreed to in
writing signed by the Executive (or, if  applicable,  his legal  representative)
and the  Company.  No waiver by either party hereto at any time of any breach by
the other party hereto of, or  compliance  with,  any  condition or provision of
this  Agreement  to be performed by such other party shall be deemed a waiver of
similar or  dissimilar  provisions  or conditions at the same or at any prior or
subsequent time. No representations, oral or otherwise, express or implied, with
respect to the subject  matter  hereof have been made by either  party which are
not  set  forth  expressly  in this  Agreement.  The  validity,  interpretation,
construction  and performance of this Agreement shall be governed by the laws of
the State of Connecticut without regard to its conflicts of law principles.

12.  VALIDITY AND  ENFORCEABILITY.  The  invalidity or  unenforceability  of any
provision of this Agreement shall not affect the validity or  enforceability  of
any other  provision  of this  Agreement,  which shall  remain in full force and
effect.  It is the desire  and  intent of the  parties  that the  provisions  of
Sections 6, 7 and 8 hereof shall be enforceable to the fullest extent  permitted
by applicable  law or public policy.  If any such  provision or the  application
thereof to any person or circumstance  shall, to any extent,  be construed to be
invalid  or  unenforceable  in whole or in part,  then such  provision  shall be
construed in a manner so as to permit its  enforceability  to the fullest extent
permitted  by  applicable  law or  public  policy.  In any case,  the  remaining
provisions or the application  thereof to any person or circumstance  other than
those to which they have been held  invalid or  unenforceable,  shall  remain in
full force and effect.

13. COUNTERPARTS.  This Agreement may be executed in one or more  counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

14. ARBITRATION.  Any dispute or controversy arising under or in connection with
this Agreement shall be settled  exclusively by arbitration,  conducted before a
panel of three  arbitrators in the State of Connecticut,  in accordance with the
rules of the American  Arbitration  Association then in effect.  Judgment may be
entered on the arbitrator's  award in any court having  jurisdiction;  provided,
however,  that the  Company  shall be entitled  to seek a  restraining  order or
injunction in any court of competent jurisdiction to prevent any continuation of
any violation of the provisions of Sections 6, 7 or 8 hereof.

15. ENTIRE  AGREEMENT.  This Agreement is the entire agreement or  understanding
between the Company and the Executive regarding the subject matter hereof.

16. REMEDIES. The Executive agrees that in addition to any other remedy provided
at law or in equity or in this  Agreement,  the  Company  shall be entitled to a
temporary  restraining  order and both  preliminary  and  permanent  injunctions
restraining  Executive  from  violating  any  provision  of  Sections 6, 7 and 8
hereof. In the event the Company fails to make any payment to the Executive when
due,  the  Executive,  in addition to any other  remedy  available  at law or in
equity,  shall be entitled to interest on such unpaid amounts from the date such
payment was due to the date actual payment is received by the Executive,  at the
legal  rate  applicable  to  unpaid  judgments.  The  Company  shall  pay to the
Executive all legal,  audit,  and actuarial fees and expenses as a result of the
termination  of  employment,  including  all such fees and expenses  incurred in
contesting, arbitrating or disputing any action or failure to act by the Company
or in seeking to obtain or enforce any right under this  Agreement  or any other
plan, arrangement or agreement with the Company, provided that the Executive has
obtained a final  determination  supporting at least part of his claim and there
has been no determination that the balance of his claim was made in bad faith.

17.  CONSENT TO  JURISDICTION  AND FORUM.  The  Executive  hereby  expressly and
irrevocably agrees that any action, whether at law or in equity, permitted to be
brought  by the  Company  under  this  Agreement  may be brought in the State of
Connecticut or in any federal court therein.  The Executive  hereby  irrevocably
consents to personal jurisdiction in such court and to accept service of process
in accordance  with the provisions of the laws of the State of  Connecticut.  In
the event the Company  commences any such action in the State of  Connecticut or
in any Federal court therein,  the Company shall reimburse the Executive for the
reasonable  expenses  incurred by the Executive in his  appearance in such forum
which are in addition  to the  expenses  the  Executive  would have  incurred by
appearing in the forum of the Executive's  residence at that time, including but
not limited to additional legal fees.

                                            HEXCEL CORPORATION

                                            By: ________________________________
                                                  Name:
                                                  Title:

                                            EXECUTIVE

                                            ------------------------------------
                                            Robert F. Matthews
<PAGE>Exhibit 10.3

                          EXECUTIVE SEVERANCE AGREEMENT

                  AGREEMENT  made as of the 17th  day of  April,  2000,  between
HEXCEL CORPORATION, a Delaware corporation with offices at Stamford, Connecticut
(the "Company"), and Steven T. Warshaw (the "Executive").

                  WHEREAS, the Company is engaged in the business of developing,
manufacturing and marketing carbon fibers, fabrics,  high-performance  composite
materials and parts therefrom for the commercial  aerospace,  space and defense,
recreation and industrial markets throughout the world, and hereafter may engage
in other areas of business (collectively, the "Business");

                  WHEREAS,  the Executive will acquire  considerable  and unique
knowledge  of  substantial  value  to  the  Company  relating  to  the  conduct,
management and operation of the Business;

                  WHEREAS,  the Company is willing to provide the Executive with
certain  benefits in the event of the termination of the Executive's  employment
with the Company,  including in the event of a Change in Control (as hereinafter
defined); and

                  WHEREAS,  the Executive,  in  consideration  of receiving such
benefits  from the  Company,  is willing  to afford  certain  protection  to the
Company  in regard  to the  confidentiality  of its  information,  ownership  of
inventions and competitive activities.

                  NOW,  THEREFORE,  in  consideration of the mutual covenants of
the Executive and the Company and of the Executive's  continued  employment with
the Company, the parties agree as follows:

1. POSITION AND DUTIES.  The Executive shall initially serve as President of the
Hexcel-Schwebel  Global Business Unit of the Company and shall have such duties,
responsibilities and authority as are assigned to him by the Board of Directors,
the Chief  Executive  Officer or the President of the Company in connection with
such position. The Executive shall devote substantially all his working time and
efforts to the business and affairs of the Company.

2. PLACE OF  PERFORMANCE.  In connection with the  Executive's employment by the
Company, the Executive  shall be based at the  offices  of the  Company  in
Anderson/Greenville,  SC,  except for required travel on the Company's business.

3. TERMINATION.  The Executive's employment hereunder may be terminated  under
the following circumstances:

(a) DEATH. The Executive's employment hereunder shall automatically terminate
upon his death.

(b) DISABILITY.  The Company may terminate the Executive's  employment hereunder
due  to the  Executive's  inability  to  perform  the  customary  duties  of his
employment by reason of any medical or  psychological  illness or condition that
is  expected to be  permanent  or of  indefinite  duration,  excluding  any such
illness or  condition  that  results  from  intentional  self-inflicted  injury,
alcoholism or drug abuse.

(c) CAUSE.  The Company may  terminate  the  Executive's  employment  hereunder
for Cause.  The following shall constitute Cause:

(i) the willful and continued failure by the Executive to substantially  perform
his duties with the  Company  (other than any such  failure  resulting  from the
Executive's incapability due to physical or mental illness or any such actual or
anticipated  failure  after  the  issuance  of a Notice  of  Termination  by the
Executive for Good Reason) after demand for substantial performance is delivered
by the  Company  that  specifically  identifies  the manner in which the Company
believes the Executive has not substantially performed his duties; or

(ii) the willful  engaging by the Executive in misconduct  that is  demonstrably
and materially injurious to the Company,  monetarily or otherwise including, but
not limited to,  conduct that  violates the covenant not to compete in Section 6
hereof.  No act, or failure to act, on the Executive's  part shall be considered
"willful"  unless  done,  or  omitted  to be done,  by him not in good faith and
without  reasonable  belief that his action or omission was in the best interest
of the Company. Notwithstanding the foregoing, the Executive shall not be deemed
to have been  terminated for Cause without (i) reasonable  notice from the Board
to the  Executive  setting  forth the reasons  for the  Company's  intention  to
terminate for Cause, (ii) delivery to the Executive of a resolution duly adopted
by the  affirmative  vote of  two-thirds  or more of the  Board  then in  office
(excluding  the  Executive  if he is then a member of the Board) at a meeting of
the Board  called  and held for such  purpose,  finding  that in the good  faith
opinion of the Board,  the Executive was guilty of the conduct  herein set forth
and specifying the particulars  thereof in detail,  (iii) an opportunity for the
Executive,  together  with his counsel,  to be heard before the Board,  and (iv)
delivery to the Executive of a Notice of Termination  from the Board  specifying
the particulars thereof in detail.

(d) GOOD REASON.  The Executive may terminate his employment  hereunder for Good
Reason.  The following shall constitute Good Reason:

(i) A  diminution  in the  Executive's  position,  duties,  responsibilities  or
authority  (except during periods when the Executive is unable to perform all or
substantially  all of his  duties or  responsibilities  on  account  of  illness
(either physical or mental) or other incapacity);

(ii) A reduction  in the Executive's  annual rate of base salary as in effect on
the date hereof or as the same may be increased from time to time;

(iii)  Failure by the  Company to continue  in effect any  compensation  plan in
which the  Executive  participates  which is material to the  Executive's  total
compensation, unless an equitable arrangement (embodied in an ongoing substitute
plan) has been made with  respect  to such plan,  or  failure by the  Company to
continue the Executive's participation therein (or in such substitute plan) on a
basis not materially less favorable to the Executive;

(iv) Failure by the Company to continue to provide the  Executive  with benefits
substantially  similar  to  those  enjoyed  by the  Executive  under  any of the
Company's pension,  savings,  life insurance,  medical,  health and accident, or
disability  plans  in  which  the  Executive  was   participating   (except  for
across-the-board  changes  similarly  affecting  all  senior  executives  of the
Company and all senior  executives of any Person in control of the Company),  or
failure by the Company to continue to provide the  Executive  with the number of
paid  vacation  days per year equal to the greater of (i) 20 and (ii) the number
to which the  Executive is entitled in accordance  with the  Company's  vacation
policy;

(v) Failure  to provide facilities or services  which are suitable  to the
Executive's position;

(vi) Failure of any successor (whether direct or indirect,  by purchase of stock
or assets,  merger,  consolidation  or  otherwise)  to the Company to assume the
Company's  obligations  hereunder or failure by the Company to remain  liable to
the Executive hereunder after such assumption;

(vii) Any termination by the Company of the Executive's  employment which is not
effected  pursuant to a Notice of Termination  satisfying the  requirements of a
Notice of Termination contained in this Agreement;

(viii) The  relocation  of the  Executive's  principal  place of employment to a
location  more than fifty (50) miles  from the  Executive's  principal  place of
employment as identified in Section 2 hereof; or

(ix)  Failure  to  pay  the   Executive  any  portion  of  current  or  deferred
compensation within seven (7) days of the date such compensation is due.

The Executive's  continued employment shall not constitute consent to, or waiver
of rights with respect to, any circumstance  constituting Good Reason hereunder;
provided,  however, that the Executive shall be deemed to have waived his rights
pursuant to  circumstances  constituting  Good Reason  hereunder if he shall not
have  provided  the  Company a Notice of  Termination  within  ninety  (90) days
following his knowledge of the  occurrence of  circumstances  constituting  Good
Reason.

(e) OTHER THAN  DEATH,  DISABILITY,  CAUSE OR GOOD  REASON.  (i) The Company may
terminate the Executive's employment, other than as provided in Sections (3)(a),
(b) or (c) hereof,  upon written  notice to the Executive and (ii) the Executive
may terminate his employment with the Company, other than as provided in Section
3(d) hereof, upon written notice to the Company.

(f) NOTICE  OF  TERMINATION;   DATE  OF  TERMINATION.   Any  termination of  the
Executive's employment  by the Company or by the Executive  (other than a
termination  pursuant to Section 3(a) hereof) shall be communicated  by  written
Notice of Termination to the other  party  hereto in accordance with Section 10.
For purposes of this Agreement,

      (i) "Notice of  Termination"  shall mean a notice  which shall  indicate
the specific  termination  provision in this Agreement relied upon and shall set
forth in  reasonable  detail  the facts and  circumstances  claimed to provide a
basis for  termination  of the  Executive's  employment  under the  provision so
indicated, and

      (ii)   "Date  of   Termination"   shall  mean  (A)  if  the  Executive's
employment is terminated pursuant to Section 3(a), the date of his death, (B) if
the Executive's  employment is terminated  pursuant to Section 3(b), thirty days
after Notice of Termination is given (provided that the Executive shall not have
returned substantially to full-time performance of the Executive's duties during
such  thirty  day  period),  (C) if the  Executive's  employment  is  terminated
pursuant to  Sections  3(c),  (d) or (e),  the date  specified  in the Notice of
Termination (provided that such date shall not be more than thirty days from the
date Notice of Termination is given and, in the case of a termination for Cause,
shall  not be less than  fifteen  days from the date  Notice of  Termination  is
given),  or (D) if the Executive  terminates his employment and fails to provide
written notice to the Company of such termination, the date of such termination.

4.  COMPENSATION UPON DEATH, DISABILITY OR TERMINATION.

(a) If the Executive's  employment is terminated by his death, the Company shall
pay the Executive's legal  representative (i) at the time such payments are due,
the Executive's  full base salary through the Date of Termination at the rate in
effect at the Date of Termination and all other unpaid amounts, if any, to which
the  Executive  is  entitled  as  of  the  Date  of  Termination  including  any
reimbursable business expenses and amounts earned under any compensation plan or
program  (including  the Bonus Plan) and (ii) within ten days following the date
of the  Executive's  death,  a lump sum payment in an amount equal to the sum of
(A) the  Executive's  annual base salary in effect as of the Date of Termination
and (B) the  Executive's  Average Annual Bonus (the term "Average  Annual Bonus"
shall mean the average of the last three  annual  bonus  amounts  awarded to the
Executive under the Company's  Management  Incentive  Compensation  Plan, or any
successor,  alternate  or  supplemental  plan  (the  "Bonus  Plan")  or,  if the
Executive  has not  participated  in the Bonus Plan for three  completed  annual
award periods,  the average of the annual bonus amounts  awarded,  provided that
any award made in respect of an annual award period in which the  Executive  did
not participate  for the full period (the "Pro-Rata  Award") shall be annualized
for purposes of computing the Average Bonus Amount by  multiplying  the Pro-Rata
Award by a fraction,  of which the numerator is 365 and the  denominator  is the
number of days during  which the  Executive  participated  in such annual  award
period).

(b) During any period that the Executive  fails to perform his duties  hereunder
as a result of incapacity due to physical or mental illness the Executive  shall
continue  to  receive  his full base  salary at the rate then in effect for such
period (offset by any payments to the Executive  received pursuant to disability
benefit  plans  maintained  by the Company)  until his  employment is terminated
pursuant to Section 3(b) hereof; and within ten days following such termination,
the Company shall pay the Executive (i) all unpaid amounts, if any, to which the
Executive is entitled as of the Date of Termination  including any  reimbursable
business  expenses  and amounts  earned under any  compensation  plan or program
(including the Bonus Plan) and (ii) a lump sum payment in an amount equal to the
sum of (A) the  Executive's  annual  base  salary  in  effect  as of the Date of
Termination and (B) the Executive's Average Annual Bonus.

(c) If the  Executive's  employment is terminated by the Company for Cause or by
the  Executive  for other than Good Reason,  the Company  shall at the time such
payments  are due pay the  Executive  his full base  salary  through the Date of
Termination at the rate in effect at the time Notice of Termination is given and
all other unpaid  amounts,  if any, to which the Executive is entitled as of the
Date of Termination  including any  reimbursable  business  expenses and amounts
earned under any  compensation  plan or program  (including the Bonus Plan), and
the Company  shall,  thereafter,  have no further  obligations  to the Executive
under this Agreement.

(d) If (1) the Company shall terminate the Executive's employment other than for
Disability  and other than for Cause or (2) the  Executive  shall  terminate his
employment for Good Reason, then

(i) the Company  shall pay the  Executive  on the Date of  Termination,  by wire
transfer to the bank account  designated by the Executive,  the Executive's full
base salary  through the Date of  Termination  at the rate in effect at the time
Notice of Termination is given  (disregarding any reduction in salary rate which
would  constitute a Good Reason) and all other unpaid amounts,  if any, to which
the  Executive  is  entitled  as  of  the  Date  of  Termination  including  any
reimbursable business expenses and amounts earned under any compensation plan or
program (including the Bonus Plan);

(ii) in  lieu of any  further  salary  payments  to the  Executive  for  periods
subsequent to the Date of Termination, the Company shall pay to the Executive on
the Date of Termination,  by wire transfer to the bank account designated by the
Executive,  an amount equal to the product of (A) the sum of (1) the Executive's
annual  base  salary in effect at the time the  Notice of  Termination  is given
(disregarding any reduction in salary rate which would constitute a Good Reason)
and (2) the  Executive's  Average  Annual  Bonus,  and (B) (x) if the  Executive
terminates his employment or the Company terminates the Executive's  employment,
in either case within two years after the occurrence of a Change in Control, the
number two or (y) in any other case, the number one; and

(iii) the Company shall continue the participation of the Executive for a period
of one year (except,  if the Executive  terminates his employment or the Company
terminates the Executive's employment, in either case within two years after the
occurrence  of a Change in  Control,  such period  shall be two  years),  in all
medical,  health,  life and other employee "welfare" plans and programs in which
the  Executive  participated  immediately  prior  to the  Date  of  Termination,
provided that the  Executive's  continued  participation  is possible  under the
general terms and  provisions of such plans and programs.  In the event that the
Executive's  participation  in any such plan or program is barred,  the  Company
shall by other means  provide the Executive  with  benefits  equivalent to those
which the  Executive  would  otherwise  have been entitled to receive under such
plans and programs from which his continued participation is barred.

(e) If the Company shall  terminate the  Executive's  employment  other than for
Cause, or the Executive  shall terminate his employment for Good Reason,  during
the period of a  Potential  Change in Control or at the request of a person who,
directly or indirectly,  takes any action designed to cause a Change in Control,
then the Company shall make payments and provide benefits to the Executive under
this Agreement as though a Change in Control had occurred  immediately  prior to
such termination.  A "Potential Change in Control" shall exist during the period
commencing  at the time the Company  enters into any  agreement  or  arrangement
which,  if  consummated,  would  result in a Change in Control and ending at the
time such agreement or arrangement  either (i) results in a Change in Control or
(ii) terminates, expires or otherwise becomes of no further force or effect.

(f) For purposes of this  Agreement,  a "Change in Control" shall mean the first
to occur of the following events:

(1) (i) Any person (as defined in Section 3(a)(9) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), as modified and used in Sections 13(d)
and 14(d) of the Exchange Act, but excluding Ciba for so long as Ciba is subject
to the  restrictions  imposed by the  Governance  Agreement)  (a "Person") is or
becomes the Beneficial Owner (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of 20% or more of either (A) the then outstanding Common Stock
of the Company (the "Outstanding Common Stock") or (B) the combined voting power
of the then outstanding securities entitled to vote generally in the election of
directors of the Company (the "Total Voting  Power");  excluding,  however,  the
following:  (x) any  acquisition  by the Company or any of its affiliates or (y)
any  acquisition by any employee  benefit plan (or related  trust)  sponsored or
maintained by the Company or any of its  affiliates  and (ii) Ciba  Beneficially
Owns, in the aggregate,  a lesser percentage of the Total Voting Power than such
Person Beneficially Owns;

(2) A change in the composition of the Board such that the  individuals  who, as
of the effective date of this Agreement,  constitute the Board (such individuals
shall be  hereinafter  referred to as the "Incumbent  Directors")  cease for any
reason to constitute at least a majority of the Board;  provided,  however,  for
purposes  of this  definition,  that  any  individual  who  becomes  a  director
subsequent to such effective date, whose election, or nomination for election by
the  Company's  stockholders,  was made or approved  pursuant to the  Governance
Agreement  or by a vote of at least a majority of the  Incumbent  Directors  (or
directors  whose election or nomination for election was previously so approved)
shall be considered a member of the Incumbent  Board;  but,  provided,  further,
that any such individual  whose initial  assumption of office occurs as a result
of either an actual or  threatened  election  contest (as such terms are used in
Rule 14a-11 of  Regulation  14A  promulgated  under the  Exchange  Act) or other
actual or  threatened  solicitation  of proxies or consents by or on behalf of a
person or legal entity other than the Board shall not be so  considered a member
of the Incumbent Board;

(3) The  effective  date of a  reorganization,  merger or  consolidation  by the
Company,  or the approval by the  stockholders of the Company of a sale or other
disposition of all or substantially all of the assets of the Company ("Corporate
Transaction");  excluding, however, such a Corporate Transaction (1) pursuant to
which all or  substantially  all of the  individuals  and  entities  who are the
beneficial  owners,  respectively,  of the  Outstanding  Common  Stock and Total
Voting Power immediately  prior to such Corporate  Transaction will beneficially
own,  directly or indirectly,  more than 50%,  respectively,  of the outstanding
common stock and the combined  voting power of the then  outstanding  securities
entitled to vote generally in the election of directors of the company resulting
from such Corporate Transaction  (including,  without limitation,  a corporation
which as a result of such  transaction  owns the Company or all or substantially
all of the Company's assets either directly or through one or more subsidiaries)
in substantially  the same proportions as their ownership,  immediately prior to
such Corporate  Transaction,  of the  Outstanding  Common Stock and Total Voting
Power,  as the case may be, or (2) after  which no  Person  beneficially  owns a
greater  percentage  of  the  combined  voting  power  of the  then  outstanding
securities  entitled to vote  generally  in the  election of  directors  of such
corporation than does Ciba;

(4)  Ciba shall become the Beneficial Owner of more than 57.5% of the Total
Voting Power; or

(5)  The approval by the  stockholders  of the Company of a complete liquidation
or dissolution of the Company.

    For  purposes of this  Section  4(f),  (x) the term  "Ciba"  shall mean Ciba
Specialty  Chemicals  Holding  Inc.,  a  Swiss  corporation,  together  with  it
affiliates holding Company voting securities  pursuant to Section 4.01(b) of the
Governance Agreement, (y) the term "Governance Agreement" shall have the meaning
given in that certain Strategic Alliance Agreement among the Company, Ciba-Geigy
Limited and Ciba Geigy Corporation,  dated as of September 29, 1995, as amended,
and any of their respective permitted successors or assigns thereunder,  and (z)
the consolidation  between Ciba and Clariant shall be deemed not to be a "Change
in Control."

    (g) Notwithstanding  any other  provisions of this  Agreement,  in the event
that any payment,  benefit,  property or right received or to be received by the
Executive in connection with a Change in Control or the Executive's  termination
of  employment  (whether  pursuant to the terms of this  Agreement  or any other
plan, arrangement or agreement with the Company, any Person whose actions result
in a Change in Control or any Person affiliated with the Company or such Person)
(all such payments,  benefits,  properties and rights being hereinafter referred
to as the "Total  Payments") would be subject (in whole or part) to the tax (the
"Excise Tax")  imposed by Section 4999 of the Internal  Revenue Code of 1986, as
amended, or any successor provision (the "Code"), then the payments and benefits
provided under Section 4(d) or 4(e) hereof ("Severance Payments") which are cash
shall first be reduced,  and the noncash Severance  Payments shall thereafter be
reduced,  to the extent  necessary  so that no portion of the Total  Payments is
subject  to the  Excise  Tax,  but  only  if (A) the net  amount  of such  Total
Payments, as so reduced (and after subtracting the net amount of federal,  state
and local income taxes on such reduced Total  Payments) is greater than or equal
to (B) the net amount of such Total  Payments  without such reduction (but after
subtracting  the net amount of  federal,  state and local  income  taxes on such
Total  Payments  and the  amount of Excise Tax to which the  Executive  would be
subject in respect of such unreduced Total Payments);  provided,  however,  that
the  Executive  may elect (by  waiving the  receipt or  enjoyment  of all or any
portion of the noncash  Severance  Payments at such time and in such manner that
the  Severance  Payments so waived shall not  constitute a "payment"  within the
meaning of section 280G(b) of the Code) to have the noncash  Severance  Payments
reduced (or eliminated)  prior to any reduction of the cash Severance  Payments.
For purposes of  determining  whether and the extent to which the Total Payments
will be subject to the  Excise  Tax (i) no  portion  of the Total  Payments  the
receipt or enjoyment of which the  Executive  shall have waived at such time and
in such manner as not to  constitute  a "payment"  within the meaning of section
280G(b) of the Code shall be taken  into  account,  (ii) no portion of the Total
Payments  shall be taken  into  account  which,  in the  written  opinion of tax
counsel ("Tax Counsel")  reasonably  acceptable to the Executive and selected by
the accounting firm (the "Auditor") which was,  immediately  prior to the Change
in Control, the Company's  independent auditor, does not constitute a "parachute
payment"  within the meaning of section  280G(b)(2)  of the Code  (including  by
reason of section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax,
no portion of such Total  Payments  shall be taken into  account  which,  in the
written opinion of Tax Counsel, constitutes reasonable compensation for services
actually rendered,  within the meaning of section  280G(b)(4)(B) of the Code, in
excess of the Base Amount allocable to such reasonable  compensation,  and (iii)
the value of any noncash benefit or any deferred  payment or benefit included in
the Total  Payments  shall be determined  by the Auditor in accordance  with the
principles of sections 280G(d)(3) and (4) of the Code. At the time that payments
are made under this  Agreement,  the Company shall provide the Executive  with a
written  statement  setting  forth  the  manner  in  which  such  payments  were
calculated and the basis for such calculations  including,  without  limitation,
any  opinions or other advice the Company has  received  from Tax  Counsel,  the
Auditor or other advisors or consultants  (and all such opinions or advice shall
be in writing, shall be attached to the statement and shall expressly state that
the  Executive  may rely  thereon).  If the  Executive  objects to the Company's
calculations,  the  Company  shall  pay to the  Executive  such  portion  of the
Severance Payments (up to 100% thereof) as the Executive determines is necessary
to result in the proper  application of the first sentence of this Section 4(g).
The Executive and the Company shall each reasonably  cooperate with the other in
connection  with any  administrative  or  judicial  proceedings  concerning  the
existence  or amount of  liability  for  Excise  Tax with  respect  to the Total
Payments.

5. NO MITIGATION.  The Executive shall not be required to mitigate the amount of
any payment  provided  for in this  Agreement  by seeking  other  employment  or
otherwise,  nor shall the amount of any payment or benefit  provided for in this
Agreement be reduced by any  compensation  earned by the Executive as the result
of employment by another employer, by retirement benefits, by offset against any
amount claimed to be owed by the Executive to the Company, or otherwise.

6.  COVENANT  NOT TO  COMPETE.  The  Executive  acknowledges  that,  as a senior
management  employee,  the Executive will be involved,  on a high level,  in the
development,  implementation  and  management of the Company's  global  business
plans,   including  those  which  involve  the  Company's  finances,   research,
marketing,  planning,  operations,  and acquisition strategies. By virtue of the
Executive's  position and knowledge of the Company,  the Executive  acknowledges
that  his  employment  by a  competitor  of the  Company  represents  a  serious
competitive  danger  to the  Company,  and  that  the  use  of  the  Executive's
experience and knowledge about the Company's business, strategies and plans by a
competitor can and would  constitute a valuable  competitive  advantage over the
Company. In view of the foregoing,  and in consideration of the payments made to
the Executive under this Agreement,  the Executive covenants and agrees that, if
the  Executive's  employment  is  terminated  and the Company has  fulfilled its
obligations  under this  Agreement,  for a period of two years after the Date of
Termination  the  Executive  will  not  engage,  in any  capacity,  directly  or
indirectly,  including but not limited as employee, agent, consultant,  manager,
executive,  owner or stockholder (except as a passive investor holding less than
a 5% equity  interest  in any  enterprise)  in any  business  entity  engaged in
competition  with  the  Business  conducted  by  the  Company  on  the  Date  of
Termination anywhere in the world; provided,  that the Executive may be employed
by  a  competitor  of  the  Company  so  long  as  the  Executive's  duties  and
responsibilities do not relate directly or indirectly to the business segment of
the new employer which is actually or potentially competitive with the Business.

7.  ASSIGNMENT  OF  INVENTIONS.   The  Executive   agrees  that  all  processes,
technologies, designs and inventions, including new contributions, improvements,
ideas and discoveries,  whether  patentable or not (collectively  "Inventions"),
conceived,  developed,  invented or made by the  Executive  prior to the Date of
Termination shall belong to the Company,  provided that such Inventions grew out
of the  Executive's  work  with  the  Company  or any  of  its  subsidiaries  or
affiliates,   are  related  in  any  manner  to  the  business   (commercial  or
experimental)  of the Company or any of its  subsidiaries  or  affiliates or are
conceived  or  made on the  Company's  time  or  with  the use of the  Company's
facilities or materials.  At the request of the Company, the Executive shall (i)
promptly  disclose such  Inventions to the Company,  (ii) assign to the Company,
without additional compensation,  all patent and other rights to such Inventions
for the United States and foreign countries,  (iii) sign all papers necessary to
carry out the  foregoing,  and (iv) give  testimony or otherwise  take action in
support of the Executive's  status as the inventor of such  Inventions,  in each
case at the Company's expense.

8. CONFIDENTIALITY.   In  addition  to  any  obligation  regarding  Inventions,
the  Executive acknowledges  that the trade secrets and  confidential  and
proprietary  information of the Company, its subsidiaries and affiliates,
including without limitation:

(a)      unpublished information concerning:

(i)      research activities and plans,
(ii)     marketing or sales plans,
(iii)    pricing or pricing strategies,
(iv)     operational techniques, and
(v)      strategic plans;

(b)      unpublished financial information,  including information  concerning
revenues,  profits and profit margins;

(c)      internal confidential manuals; and

(d) any "material inside information" as such phrase is used for purposes of the
Securities Exchange Act of 1934, as amended;  all constitute  valuable,  special
and unique  information of the Company,  its  subsidiaries  and  affiliates.  In
recognition  of this fact,  the  Executive  agrees that the  Executive  will not
disclose  any such trade  secrets or  confidential  or  proprietary  information
(except (i) information  which becomes publicly  available  without violation of
this Agreement, (ii) information of which the Executive,  prior to disclosure by
the  Executive,  did not know and  should not have  known was  disclosed  to the
Executive by a third party in violation of any other person's confidentiality or
fiduciary  obligation,  (iii)  disclosure  required in connection with any legal
process (provided the Executive promptly gives the Company written notice of any
legal process seeking to compel such disclosure and reasonably cooperates in the
Company's  attempt to eliminate or limit the scope of such  disclosure) and (iv)
disclosure  while employed by the Company which the Executive  reasonably and in
good faith  believes to be in or not opposed to the interests of the Company) to
any person,  firm,  corporation,  association or other entity, for any reason or
purpose whatsoever, nor shall the Executive make use of any such information for
the benefit of any person, firm, corporation or other entity except on behalf of
the Company, its subsidiaries and affiliates.

9. BINDING AGREEMENT.  This Agreement and all rights of the Executive  hereunder
shall inure to the benefit of and be enforceable by the Executive's  personal or
legal   representatives,    executors,   administrators,    successors,   heirs,
distributees,  devisees  and  legatees.  If the  Executive  should die while any
amounts would still be payable to him hereunder if he had continued to live, all
such amounts, unless otherwise provided in this Agreement,  shall be paid to the
Executive's  devisee,  legatee,  or  other  designee  or,  if  there  be no such
designee, to the Executive's estate.

10. NOTICE.  Notices,  demands and all other communications provided for in this
Agreement  shall be in writing  and shall be deemed to have been duly given when
delivered,  if delivered  personally,  or mailed by United  States  certified or
registered mail, return receipt requested, postage prepaid, and when received if
delivered otherwise, addressed as follows:

                  If to the Executive:

                           Steven T. Warshaw
                           44 Settlers Trail
                           Stamford, CT 06903

                  If to the Company:

                           Hexcel Corporation
                           281 Tresser Blvd.
                           Stamford, CT  06901-3238

                           Attn:    General Counsel

or to such other address as any party may have furnished to the other in writing
in  accordance  herewith,  except  that  notices of change of  address  shall be
effective only upon receipt.

11. GENERAL PROVISIONS.  No provision of this Agreement may be modified,  waived
or  discharged  unless such  waiver,  modification  or discharge is agreed to in
writing signed by the Executive (or, if  applicable,  his legal  representative)
and the  Company.  No waiver by either party hereto at any time of any breach by
the other party hereto of, or  compliance  with,  any  condition or provision of
this  Agreement  to be performed by such other party shall be deemed a waiver of
similar or  dissimilar  provisions  or conditions at the same or at any prior or
subsequent time. No representations, oral or otherwise, express or implied, with
respect to the subject  matter  hereof have been made by either  party which are
not  set  forth  expressly  in this  Agreement.  The  validity,  interpretation,
construction  and performance of this Agreement shall be governed by the laws of
the State of Connecticut without regard to its conflicts of law principles.

12.  VALIDITY AND  ENFORCEABILITY.  The  invalidity or  unenforceability  of any
provision of this Agreement shall not affect the validity or  enforceability  of
any other  provision  of this  Agreement,  which shall  remain in full force and
effect.  It is the desire  and  intent of the  parties  that the  provisions  of
Sections 6, 7 and 8 hereof shall be enforceable to the fullest extent  permitted
by applicable  law or public policy.  If any such  provision or the  application
thereof to any person or circumstance  shall, to any extent,  be construed to be
invalid  or  unenforceable  in whole or in part,  then such  provision  shall be
construed in a manner so as to permit its  enforceability  to the fullest extent
permitted  by  applicable  law or  public  policy.  In any case,  the  remaining
provisions or the application  thereof to any person or circumstance  other than
those to which they have been held  invalid or  unenforceable,  shall  remain in
full force and effect.

13. COUNTERPARTS.  This  Agreement may be executed in one or more  counterparts,
each of which shall  be  deemed  to be an  original  but all of which  together
will  constitute  one and the same instrument.

14. ARBITRATION.  Any dispute or controversy arising under or in connection with
this Agreement shall be settled  exclusively by arbitration,  conducted before a
panel of three  arbitrators in the State of Connecticut,  in accordance with the
rules of the American  Arbitration  Association then in effect.  Judgment may be
entered on the arbitrator's  award in any court having  jurisdiction;  provided,
however,  that the  Company  shall be entitled  to seek a  restraining  order or
injunction in any court of competent jurisdiction to prevent any continuation of
any violation of the provisions of Sections 6, 7 or 8 hereof.

15. ENTIRE  AGREEMENT.  This Agreement is the entire agreement or  understanding
between the Company and the Executive regarding the subject matter hereof.

16. REMEDIES. The Executive agrees that in addition to any other remedy provided
at law or in equity or in this  Agreement,  the  Company  shall be entitled to a
temporary  restraining  order and both  preliminary  and  permanent  injunctions
restraining  Executive  from  violating  any  provision  of  Sections 6, 7 and 8
hereof. In the event the Company fails to make any payment to the Executive when
due,  the  Executive,  in addition to any other  remedy  available  at law or in
equity,  shall be entitled to interest on such unpaid amounts from the date such
payment was due to the date actual payment is received by the Executive,  at the
legal  rate  applicable  to  unpaid  judgments.  The  Company  shall  pay to the
Executive all legal,  audit,  and actuarial fees and expenses as a result of the
termination  of  employment,  including  all such fees and expenses  incurred in
contesting, arbitrating or disputing any action or failure to act by the Company
or in seeking to obtain or enforce any right under this  Agreement  or any other
plan, arrangement or agreement with the Company, provided that the Executive has
obtained a final  determination  supporting at least part of his claim and there
has been no determination that the balance of his claim was made in bad faith.

17.  CONSENT TO  JURISDICTION  AND FORUM.  The  Executive  hereby  expressly and
irrevocably agrees that any action, whether at law or in equity, permitted to be
brought  by the  Company  under  this  Agreement  may be brought in the State of
Connecticut or in any federal court therein.  The Executive  hereby  irrevocably
consents to personal jurisdiction in such court and to accept service of process
in accordance  with the provisions of the laws of the State of  Connecticut.  In
the event the Company  commences any such action in the State of  Connecticut or
in any Federal court therein,  the Company shall reimburse the Executive for the
reasonable  expenses  incurred by the Executive in his  appearance in such forum
which are in addition  to the  expenses  the  Executive  would have  incurred by
appearing in the forum of the Executive's  residence at that time, including but
not limited to additional legal fees.

                               HEXCEL CORPORATION

                                            By: ________________________________
                                            Name:

                                            Title:

                                            EXECUTIVE

                                            ------------------------------------
                                            Steven T. Warshaw
<PAGE>

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