Document:

<PAGE>

                              FIRST AMENDMENT OF
                 FMC CORPORATION EMPLOYEES' RETIREMENT PROGRAM
                PART II UNION HOURLY EMPLOYEES' RETIREMENT PLAN
                -----------------------------------------------
              (As Amended and Restated Effective January 1, 1999)

     WHEREAS, FMC Corporation (the "Company") maintains the FMC Corporation
Employees' Retirement Program Part II Union Hourly Employees' Retirement Plan
(the "Plan"); and

     WHEREAS, amendment of the Plan is now considered desirable;

     NOW, THEREFORE, by virtue and in exercise of the powers reserved to the
Company under Section 11.1 Plan Amendment or Termination of the Plan, and
pursuant to authority delegated to the undersigned officer of the Company by
resolution of its Board of Directors, the Plan is hereby amended for
clarification purposes, effective January 1, 1999, in the following respects:

     1.   Subsection (iv) of Section 3.4.2 Suspension of Benefits After Normal
Retirement Date is hereby amended by deleting the language "(such reduction will
occur only if such benefits are not repaid in full to the Trust within 2 years
after his date of reemployment.)"

     2.   Section 4.1  Termination of Service is hereby amended by adding the
following sentence to the end thereof:

          "The Committee or its delegatee may, in its discretion, fully vest a
          Participant in the Participant's accrued benefit in the event the
          Participant's employment with the Company is affected by a transaction
          undertaken by the Company."

     3.   Supplement 3 PACKAGING MACHINERY DIVISION, GREEN BAY, WISCONSIN is
hereby amended by adding the following Section to the end thereof:

<PAGE>

          "3-9  Participants who were Salaried Employees
                ----------------------------------------

          Participants who prior to the Freeze Date became salaried employees
          and as a result became covered under the FMC Corporation Salaried
          Employees' Retirement Plan ("Salaried Plan"), or its predecessor plan,
          were given certain distribution rights as described in Section 6.2.5
          of the Salaried Plan that applied to benefits payable under the Plan
          and the Salaried Plan."

     IN WITNESS WHEREOF, the Company has caused this amendment to be executed by
a duly authorized representative this 9th day of November, 1999.

                                    FMC CORPORATION

                                    By: /s/ J. Paul McGrath
                                         ---------------------------------
                                    Member, Employee Welfare Benefits Plan
                                    Committee<PAGE>

                                FMC Corporation
                            Savings and Investment
                                     Plan

                               Winston & Strawn
                                    Chicago
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                   PAGE
<S>                                                <C>
TABLE OF CONTENTS................................     i

ARTICLE I........................................     1
Definitions......................................     1
 Account.........................................     1
 Account Balance.................................     1
 Administrator...................................     1
 Affiliate.......................................     1
 After-Tax Contribution..........................     2
 After-Tax Contribution Account..................     2
 After-Tax Contribution Election.................     2
 Annuity Contract................................     2
 Annuity Starting Date...........................     2
 Basic Contributions.............................     2
 Beneficiary.....................................     2
 Board...........................................     2
 Break in Service................................     2
 Code............................................     2
 Committee.......................................     2
 Company.........................................     3
 Company Contributions...........................     3
 Company Contribution Account....................     3
 Compensation....................................     3
 Contingent Account..............................     4
 Direct Rollover.................................     4
 Disability......................................     4
 Distributee.....................................     4
 Effective Date..................................     4
 Eligible Employee...............................     4
 Eligible Retirement Plan........................     5
 Eligible Rollover Distribution..................     5
 Employee........................................     5
 Employment Commencement Date....................     6
 ERISA...........................................     6
 Forfeiture......................................     6
 Funding Agent...................................     6
 Harsco Stock Account............................     6
 Highly Compensated Employee.....................     6
 Hour of Service.................................     7
 Investment Fund.................................     7
</TABLE>

                                      -i-
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<TABLE>
<S>                                                                          <C>
 Leased Employee............................................................   7
 Nonhighly Compensated Employee.............................................   7
 Participant................................................................   7
 Participating Employer.....................................................   7
 Period of Separation.......................................................   7
 Plan.......................................................................   8
 Plan Year..................................................................   8
 Pre-Tax Contribution.......................................................   8
 Pre-Tax Contribution Account...............................................   8
 Pre-Tax Contribution Election..............................................   8
 Required Beginning Date....................................................   8
 Rollover Contribution......................................................   8
 Rollover Contribution Account..............................................   8
 Stock......................................................................   8
 Stock Fund.................................................................   8
 Supplemental Contributions.................................................   9
 Surviving Spouse...........................................................   9
 Trust......................................................................   9
 Trust Fund.................................................................   9
 Trustee....................................................................   9
 Valuation Date.............................................................   9
 Year of Service............................................................   9

ARTICLE  II.................................................................  10
Participation...............................................................  10
 2.1 Admission as A Participant.............................................  10
 2.2 Provision of Information...............................................  10
 2.3 Termination of Participation...........................................  11
 2.4 Special Rules Relating to Veterans' Reemployment Rights................  11

ARTICLE III.................................................................  13
Contributions and Account Allocations.......................................  13
 3.1 Pre-Tax Contributions..................................................  13
 3.2 After-Tax Contributions................................................  13
 3.3 Rules Applicable to Both Pre-Tax and After-Tax Contributions...........  13
 3.4 Company Contributions..................................................  14
 3.5 Rollover Contributions.................................................  15
 3.6 Establishment of Accounts..............................................  15
 3.7 Limitation on Annual Additions to Accounts.............................  15
 3.8 Reduction of Annual Additions..........................................  16
 3.9 Combined Plan Fraction.................................................  16
</TABLE>

                                     -ii-
<PAGE>

<TABLE>
<CAPTION>
<S>        <C>                                                                           <C>
 3.10      Limitations on Pre-Tax Contributions, After-Tax Contributions and
           Company Contributions - Definitions..........................................  16
 3.11      Maximum Amount of Pre-Tax Contributions......................................  19
 3.12      Correction of Excess Pre-Tax Contributions...................................  19
 3.13      Actual Deferral Percentage Test..............................................  20
 3.14      Actual Contribution Percentage Test..........................................  21
 3.15      Multiple Use of Alternative Limitation.......................................  23

ARTICLE IV..............................................................................  24
Vesting.................................................................................  24
 4.1       Vesting in After-Tax, Pre-Tax and Rollover Contributions Accounts............  24
 4.2       Vesting in Company Contribution and Contingent Accounts......................  24
 4.3       Forfeitures..................................................................  25
 4.4       Special Vesting Rules for Participants Transferred to Snap-On Incorporated...  25
 4.5       Special Vesting Rules for Participants Transferred to Great Lakes Chemical...  26
 4.6       Special Vesting Rules for Participants Transferred to Cambrex................  27

ARTICLE V...............................................................................  28
Timing of Distributions to Participants.................................................  28
 5.1       Separation from Service......................................................  28
 5.2       Start of Benefit Payments....................................................  28
 5.3       Additional Distribution Events...............................................  29
 5.4       Transfers from the Plan for Changes in a Participant's Employment Status.....  30

ARTICLE VI..............................................................................  31
Forms of Benefit, In-Service Withdrawals and Loans......................................  31
 6.1       Cashout of Small Amounts.....................................................  31
 6.2       Medium of Distribution.......................................................  31
 6.3       Forms of Benefit.............................................................  31
 6.4       Change in Form, Timing or Medium of Benefit Payment..........................  32
 6.5       Direct Rollover of Eligible Rollover Distributions...........................  32
 6.6       In-service and Hardship Withdrawals..........................................  32
 6.7       Loans........................................................................  35

ARTICLE VII.............................................................................  38
Death Benefits..........................................................................  38
 7.1       Payment of Account Balance...................................................  38
 7.2       Failure to Name a Beneficiary................................................  38
 7.3       Waiver of Spousal Beneficiary Rights.........................................  38
</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                        <C>
ARTICLE VIII...............................................................................40
Special Forms of Benefit and Special Death Benefit Provisions Applicable to
Certain Transferred Participants...........................................................40
        8.1 Applicability..................................................................40
        8.2 Forms of Benefit for Certain Transferred Participants..........................40
        8.3 Change in Form, Timing or Medium of Benefit Payment for Certain
            Transferred Participants.......................................................42
        8.4 Waiver of Normal Form of Benefit for Certain Transferred Participants..........42
        8.5 Payment of Account Balances of Certain Transferred Participants Who
            Die Before Payment Begins......................................................43
        8.6 Failure to Name a Beneficiary for Certain Transferred Participants.............44
        8.7 Waiver of Preretirement Survivor Annuity for Certain Transferred Participants..45

ARTICLE IX.................................................................................47
Fiduciaries................................................................................47
        9.1 Named Fiduciaries..............................................................47
        9.2 Employment of Advisers.........................................................47
        9.3 Multiple Fiduciary Capacities..................................................47
        9.4 Payment of Expenses............................................................47
        9.5 Indemnification................................................................48

ARTICLE X..................................................................................49
Plan Administration........................................................................49
       10.1 Powers, Duties and Responsibilities of the Administrator and the Committee...  49
       10.2 Investment Powers, Duties and Responsibilities of the Administrator
            and the Committee..............................................................49
       10.3 Investment of Accounts.........................................................50
       10.4 Valuation of Accounts..........................................................50
       10.5 The Insurance Company..........................................................51
       10.6 Compensation...................................................................51
       10.7 Delegation of Responsibility...................................................51
       10.8 Committee Members..............................................................51

ARTICLE XI.................................................................................53
Appointment of Trustee.....................................................................53

ARTICLE XII................................................................................54
Plan Amendment or Termination..............................................................54
       12.1 Plan Amendment or Termination..................................................54
       12.2 Limitations on Plan Amendment..................................................54
       12.3 Right to Terminate Plan or Discontinue Contributions...........................54
       12.4 Bankruptcy.....................................................................54
</TABLE>

                                     -iv-
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                   <C>
ARTICLE XIII..................................................................55
Miscellaneous Provisions......................................................55
  13.1  Subsequent Changes....................................................55
  13.2  Merger or Transfer of Assets..........................................55
  13.3  Benefits Not Assignable...............................................55
  13.4  Exclusive Benefit of Participants.....................................56
  13.5  Benefits Payable to Minors, Incompetents and Others...................56
  13.6  Plan Not A Contract of Employment.....................................57
  13.7  Source of Benefits....................................................57
  13.8  Proof of Age and Marriage.............................................57
  13.9  Controlling Law.......................................................57
  13.10 Income Tax Withholding................................................57
  13.11 Claims Procedure......................................................57
  13.12 Participation in the Plan by An Affiliate.............................59
  13.13 Action by Participating Employers.....................................59
  13.14 Dividends.............................................................59

ARTICLE XIV...................................................................60
Top Heavy Provisions..........................................................60
  14.1  Top Heavy Definitions.................................................60
  14.2  Determination of Top Heavy Status.....................................63
  14.3  Minimum Allocation for Top Heavy Plan.................................63
  14.4  Adjustment of Combined Plan Fraction..................................64

APPENDIX A....................................................................66
Bargaining Units Covered......................................................66
</TABLE>

                                      -v-
<PAGE>

                                   BACKGROUND
                                   ----------

          The Employees' Thrift and Stock Purchase Plan was established by the
Company effective April 1, 1961, as the FMC Employees' 1960 Thrift and Stock
Purchase Plan. The Plan was subsequently amended from time to time. The Plan was
last amended and restated effective April 1, 1991. This document is an amendment
and restatement of the Plan effective, except as and to the extent otherwise
provided in this document, as of January 1, 1999, and changes the name of the
Plan to the FMC Corporation Savings and Investment Plan effective January 1,
2000.

          The Company or its delegate may amend the Plan to meet applicable
rules and regulations of the Internal Revenue Service and the United States
Department of Labor, or for other reasons the Company or its delegate deems
necessary or desirable.

          The Plan is intended to be qualified under Code Section 401(a), and
its associated trust is intended to be tax exempt under Code Section 501(a). The
Plan is intended also to meet the requirements of ERISA, and will be
interpreted, wherever possible, to comply with the terms of the Code and ERISA.
<PAGE>

                                   ARTICLE I

                                  Definitions
                                  -----------

          For purposes of this Plan and any amendments to it, the following
terms have the meanings ascribed to them below.

          Account means the Pre-Tax Contribution Account, After-Tax Contribution
Account, Company Contribution Account, Contingent Account, Employee Contribution
Account and Rollover Contribution Account, if any, established on behalf of a
Participant.

          Account Balance means the value of the Account maintained on behalf of
a Participant, determined as of any Valuation Date.

          Administrator means the Company. The Plan is administered by the
Company through the Committee. The Administrator and the Committee have the
responsibilities specified in Article X.

          Affiliate  means any corporation, partnership, or other entity that
          ---------
is:

          (a)  a member of a controlled group of corporations of which the
               Company is a member (as described in Code Section 414(b));

          (b)  a member of any trade or business under common control with the
               Company (as described in Code Section 414(c));

          (c)  a member of an affiliated service group that includes the Company
               (as described in Code Section 414(m));

          (d)  an entity required to be aggregated with the Company pursuant to
               regulations promulgated under Code Section 414(o); or

          (e)  a leasing organization that provides Leased Employees to the
               Company or an Affiliate (as determined under paragraphs (a)
               through (d) above), unless: (i) the Leased Employees make up no
               more than 20% of the nonhighly compensated workforce of the
               Company and Affiliates (as determined under paragraphs (a)
               through (d) above); and (ii) the Leased Employees are covered by
               a plan described in Code Section 414(n)(5).

"Leasing organization" has the meaning ascribed to it in the definition of
"Leased Employee" below.

For purposes of Section 3.7, the 80% thresholds of Code Sections 414(b) and (c)
are deemed to be "more than 50%," rather than "at least 80%."

                                      -1-
<PAGE>

     After-Tax Contribution means the amount a Participant contributes in
accordance with Section 3.2. A Participant's After-Tax Contribution may be made
up of Basic Contributions, Supplemental Contributions or both.

     After-Tax Contribution Account means the Account established for a
Participant pursuant to Section 3.6.2.

     After-Tax Contribution Election means a Participant's election to make
After-Tax Contributions in accordance with Section 3.3.1.

     Annuity Contract means an individual or group annuity contract issued by an
insurance company and providing periodic benefits, whether fixed, variable or
both, to a Participant or Beneficiary. An Annuity Contract must provide that a
Participant or Beneficiary cannot transfer, sell, assign, discount, or pledge
(as collateral for a loan or for any other purpose) all or any part of the
contract benefits or value to any person other than the issuer. The terms of an
Annuity Contract must comply with the requirements of this Plan.

     Annuity Starting Date means the first day of the first period for which an
amount is paid in an annuity or other form of benefit. In the case of a lump sum
distribution, the Annuity Starting Date is the date payment is actually made.

     Basic Contributions means a Participant's Pre-Tax Contributions and After-
Tax Contributions not in excess of five percent of his or her annualized
Compensation.

     Beneficiary means any person designated or deemed designated by a
Participant to receive any payment of Plan benefits due after the Participant's
death. A married Participant may name a primary Beneficiary other than his or
her Surviving Spouse only if the Surviving Spouse consents to the election in
the time frame and manner required by Section 7.3.

     Board means the board of directors of the Company.

     Break in Service means a Period of Separation that lasts for at least 12
consecutive months.

     Code means the Internal Revenue Code of 1986, as amended from time to time.
Reference to a specific provision of the Code includes that provision, any
successor to it and any valid regulation promulgated under the provision or
successor provision.

     Committee means the FMC Corporation Employee Welfare Benefits Plan
Committee as described in Section 10.8, its authorized delegatee and any
successor to the FMC Corporation Employee Welfare Benefits Plan Committee.

                                      -2-
<PAGE>

     Company means FMC Corporation and any successor to it.

     Company Contributions means the contributions made by the Employer under
Section 3.4 after March 31, 1982, other than contributions elected by
Participants.

     Company Contribution Account means an account maintained as to each
Participant, to which the Participant's share of Company Contributions made for
periods after March 31, 1982 and all earnings and losses attributable to it, are
allocated.

     Compensation means the total compensation paid by the Company or a
Participating Employer to an Employee for each Plan Year that is currently
includible in gross income for federal income tax purposes:

     (a)  including: overtime, administrative and discretionary bonuses
          (including completion bonuses, gainsharing bonuses and performance
          related bonuses); sales incentive bonuses; field premiums; back pay
          and sick pay; plus the Employee's Pre-Tax Contributions and amounts
          contributed to a plan described in Code Section 125 or 132; and the
          9/12 of the incentive compensation (including management incentive
          bonuses paid in both cash and restricted stock and local incentive
          bonuses) paid during the Plan Year for services rendered in the
          preceding Plan Year, and the 3/12 of the incentive compensation (of
          the same types) paid during the preceding Plan Year for services
          rendered in the Plan Year preceding the preceding Plan Year (unless,
          for periods beginning on or after February 1, 2000, the Participant
          elects all such incentive compensation paid for prior Plan Years to be
          included in Compensation for the prior Plan Years, or unless the
          Participant elects that no such incentive compensation will be
          included in his or her Compensation);

     (b)  but excluding: hiring bonuses; referral bonuses; stay bonuses;
          retention bonuses; awards (including safety awards, "Gutbuster" awards
          and other similar awards); amounts received as deferred compensation;
          disability payments from insurance or the Long-Term Disability Plan
          for Employees of FMC Corporation; workers' compensation benefits;
          state disability benefits; flexible credits (i.e., wellness awards and
          payments for opting out of benefit coverage); expatriate premiums;
          grievance or settlement pay; pay in lieu of notice; severance pay;
          accrued (but not earned) vacation; other special payments such as
          reimbursements, relocation or moving expense allowances; stock options
          or other stock-based compensation (except as provided above);
          effective January 1, 2000, any gross-up paid by a Participating
          Employer on any amount paid that is Compensation (as defined herein);
          other distributions that receive special tax benefits; any amounts
          paid by a Participating Employer to cover an Employee's FICA tax
          obligation as to amounts deferred or accrued under

                                      -3-
<PAGE>

          any nonqualified retirement plan of a Participating Employer; and any
          gross-up paid by a Participating Employer on any amount paid that is
          not Compensation (as defined herein).

Notwithstanding anything herein to the contrary, no amounts paid to a
Participant more than 30 days after his or her termination of employment with
the Company or a Participating Employer will be considered Compensation.

     The annual amount of Compensation taken into account for a Participant must
not exceed $160,000 (as adjusted by Internal Revenue Service for cost-of-living
increases in accordance with Code Section 401(a)(17)(B)). Compensation taken
into account for the 9-month Plan Year from April 1, 1997 through December 31,
1997 was limited to $120,000 for any Participant. Effective April 1, 1997, the
Compensation limit will be applied to each Participant without taking into
account the Compensation of any of his or her family members.

     A Participant's Compensation will be conclusively determined according to
the Company's records.

     Contingent Account means an account maintained as to each Participant, to
which the Participant's share of Company Contributions made for periods before
April 1, 1982, and all earnings and losses attributable to it, are allocated.

     Direct Rollover means a payment by the Plan to the Eligible Retirement Plan
specified by a Distributee.

     Disability means a medically determinable physical or mental impairment
that makes the Participant unable to engage in any substantial gainful activity,
can be expected to result in death or be of long and indefinite duration, or has
lasted or can be expected to last for a continuous period of at least 12 months.
A Participant will be considered to have a Disability at any time only if he or
she is then eligible to receive Social Security disability benefits.

     Distributee means an Employee or former Employee. In addition, the
Employee's or former Employee's Surviving Spouse and the Employee's or former
Employee's spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined under Code Section 414(p), are Distributees
as to their Plan interests.

     Effective Date means January 1, 1999.

     Eligible Employee means an Employee of a Participating Employer, other
than:

     (a)  a Leased Employee;

                                      -4-
<PAGE>

     (b)  a member of a bargaining unit covered by a collective bargaining
          agreement that does not specifically provide for participation in the
          Plan by members of the bargaining unit, or that is not listed in
          Appendix A;

     (c)  an Employee who is a nonresident alien of the United States; or

     (d)  an individual working for a Participating Employer under a contract
          that designates him or her as an independent contractor.

     An employee who works for a non-U.S. Affiliate, and who would be an
Eligible Employee if the non-U.S. Affiliate were a Participating Employer, will
be an Eligible Employee during the period in which the employee has U.S. taxable
income, and the Company will be deemed to be the Employee's employer for Plan
purposes.

     An individual's status as an Eligible Employee or not will be conclusively
determined by the Administrator, subject to the claims review procedure
described in Section 13.11.

     The bargaining units whose members are covered by the Plan, and the
effective dates of that coverage, are listed in Appendix A.

     Eligible Retirement Plan means an individual retirement account described
in Code Section 408(a), an individual retirement annuity described in Code
Section 408(b), an annuity plan described in Code Section 403(a), or a plan
described in Code Section 401(a) that accepts the Distributee's Eligible
Rollover Distribution. In the case of an Eligible Rollover Distribution paid to
a Surviving Spouse, an Eligible Retirement Plan is either an individual
retirement account or individual retirement annuity, and does not include an
annuity plan or a Code Section 401(a) plan.

     Eligible Rollover Distribution means any distribution of all or any portion
of the balance to the credit of the Distributee, other than (a) a distribution
that is one of a series of substantially equal periodic payments made (no less
frequently than annually) for the life (or life expectancy) of the Distributee
and the Distributee's Beneficiary, or for a specified period of ten years or
more; (b) the portion of a distribution that is required to be made under Code
Section 401(a)(9); (c) the portion of a distribution that is not includible in
gross income (determined without regard to the exclusion for net unrealized
appreciation for employer securities); or (iv) effective January 1, 1999, a
"hardship distribution" within the meaning of Code Section 402(c)(4).

     Employee means (a) a common law employee of the Company or an Affiliate who
is paid as an employee from the payroll of the Company or an Affiliate and
treated as an employee, or (b) a Leased Employee.

                                      -5-
<PAGE>

     Employment Commencement Date means the date on which the Employee first
performs an Hour of Service.

     ERISA means the Employee Retirement Income Security Act of 1974, as amended
from time to time. Reference to a specific provision of ERISA includes the
provision, any successor provision and any valid regulation promulgated under
the provision or successor provision.

     Forfeiture means the portion (if any) of a Participant's Company
Contribution Account that is forfeited under Section 4.3.

     Funding Agent means any legal reserve life insurance company or Trustee
selected by the Administrator or the Committee to receive Plan contributions and
pay Plan benefits.

     Harsco Stock Account means an account maintained as to each eligible
Participant to hold Harsco stock and all earnings and losses attributable
thereto; effective October 6, 1997 no further investments in this account were
permitted.

     Highly Compensated Employee means, effective April 1, 1997, an Employee
who:

     (a)  at any time during the Plan Year or the preceding Plan Year owns (or
          is considered under Code Section 318 to own) more than five percent of
          the Company or an Affiliate; or

     (b)  had more than $80,000, as adjusted, in Compensation from the Company
          and the Affiliates during the preceding Plan Year.

A former Employee of the Company or an Affiliate is a Highly Compensated
Employee for a given Plan Year if he or she separated from service (or was
deemed to have separated) before the Plan Year, performs no service for a
Participating Employer during the Plan Year, and was a Highly Compensated
Employee for the Plan Year during which he or she separated from service (or was
deemed to have separated) or for any Plan Year ending on or after his or her
55th birthday.

     The Secretary of the Treasury or its delegate will adjust the $80,000 limit
from time to time, to reflect increases in the cost of living. Employees who are
nonresident aliens and receive no earned income (within the meaning of Code
Section 911(d)(2)) from the Company and its Affiliates that constitutes income
from sources within the United States (within the meaning of Code Section
861(a)(3)) are not treated as Employees for purposes of this definition.

     In determining who was a Highly Compensated Employee for the short Plan
Year from April 1, 1997 through December 31, 1997, the Plan Year Compensation
limit was adjusted

                                      -6-
<PAGE>

to $60,000. In determining who was a Highly Compensated Employee for the 1998
Plan Year, the "preceding Plan Year" was deemed to be the 1997 calendar year.

          Hour of Service  means each hour for which an Employee is directly or
indirectly paid or entitled to payment by the Company or an Affiliate for the
performance of duties.

          Investment Fund means an investment fund, if any, established or
selected by the Administrator pursuant to Section 10.3.

          Leased Employee means, effective January 1, 1997, an individual who
performs services for the Company or an Affiliate on a substantially full-time
basis, for a period of at least one year, under the primary direction or control
of the Company or Affiliate, and under an agreement between the Company or
Affiliate and a leasing organization. The leasing organization can be a third
party or the Leased Employee himself or herself.

          Nonhighly Compensated Employee  means an Employee who is not a Highly
  Compensated Employee.

          Participant means an Eligible Employee who has begun but not ended his
or her participation in the Plan pursuant to the provisions of Article II.

          Participating Employer means the Company and each other Affiliate that
adopts the Plan with the consent of the Board, as provided in Section 13.12.

          Period of Separation means a continuous period of time when the
Employee is not employed by the Company or an Affiliate. A Period of Separation
begins on the date an Employee retires, dies, separates from service due to
Disability, quits or is discharged, or, if earlier, on the 12-month anniversary
of the date the Employee was otherwise first absent from service.
Notwithstanding the foregoing, a Period of Separation does not begin if the
Employee is:

          (a)  on a leave of absence authorized by the Company or an Affiliate
               in accordance with standard personnel policies applied in a
               nondiscriminatory manner to all similarly situated Employees, and
               returns to active employment with the Company or Affiliates as
               soon as the leave expires;

          (b)  on a military leave while the Employee's reemployment rights are
               protected by law, and returns to active employment with the
               Company or Affiliate within 90 days after his or her discharge or
               release (or such longer period as may be prescribed by law); or

          (c)  on a layoff, and returns to work with the Company or an Affiliate
               within the period of time and in the manner necessary to maintain
               seniority

                                      -7-
<PAGE>

               according to the rules of the Company or Affiliate in effect at
               the time of the return.

          Plan means, effective January 1, 2000, the FMC Corporation Savings and
Investment Plan. For periods beginning before January 1, 2000, the Plan was
known as the FMC Employees' Thrift and Stock Purchase Plan. The Plan is a single
employer plan.

          Plan Year means the 12-month period beginning on each January 1 and
ending on the next December 31. For periods beginning before January 1, 1998,
Plan Year meant each 12-month period beginning on April 1 and ending on the next
March 31. The period from April 1, 1997 through December 31, 1997 was a short
Plan Year.

          Pre-Tax Contribution means the amount that otherwise would have been
paid as Compensation that is, before taxes, converted to a Participating
Employer contribution in accordance with Section 3.1. A Participant's Pre-Tax
Contribution may be made up of Basic Contributions, Supplemental Contributions,
or both.

          Pre-Tax Contribution Account means the Account established for a
Participant pursuant to Section 3.6.1.

          Pre-Tax Contribution Election means the Participant's election to make
Pre-Tax Contributions in accordance with Section 3.3.1.

          Required Beginning Date is defined in Section 5.2.3.

          Rollover Contribution means an amount received from a deferred
compensation plan that is qualified under Code Section 401 or 403(a), and which
is rolled over to the Plan pursuant to Code Section 402(c). A Rollover
Contribution can be either a Direct Rollover or an amount distributed to a
Participant and then rolled over. In addition, if an Employee had deposited an
Eligible Rollover Distribution into an individual retirement account as defined
in Code Section 408, he or she may transfer the amount of the distribution plus
earnings from the individual retirement account to the Plan, if the rollover
amount is deposited with the Trustee within 60 days after receipt from the
individual retirement account, and the rollover meets the other requirements of
Code Section 408(d)(3)(A)(ii).

          Rollover Contribution Account means the Account established for a
Participant pursuant to Section 3.6.3.

          Stock  means the common stock of the Company.

          Stock Fund means an Investment Fund established and maintained by the
Trustee as part of the Trust Fund to invest in Stock. All Plan contributions
placed in or directed to the Stock Fund and all dividends, other earnings and
appreciation on those contributions must

                                      -8-
<PAGE>

be invested only in Stock, except as and to the extent it is deemed necessary or
advisable to maintain cash and cash equivalents to meet the Stock Fund's
liquidity needs.

          Supplemental Contributions means a Participant's Pre-Tax Contributions
and After-Tax Contributions in excess of five percent of his or her annualized
Compensation.

          Surviving Spouse means the person legally married to a Participant on
the date of his or her death or on his or her Annuity Starting Date, whichever
is earlier.

          Trust means the trust established under the Plan, to which Plan
contributions are made and in which Plan assets are held.

          Trust Fund means the assets of the Trust held by or in the name of the
Trustee.

          Trustee means the institution appointed as Trustee pursuant to Article
XI of the Plan, and any successor Trustee.

          Valuation Date  means each business day of the Plan Year.  For periods
beginning before July 7, 1997, the Valuation Date was the last business day of
each calendar month.

          Year of Service means the total number of calendar months during which
the Employee is employed by the Company or an Affiliate, divided by 12,
including any Period of Separation that does not constitute a Break in Service.
A partial month of employment counts as a whole month. An Employee's Years of
Service do not include any Breaks in Service.

                                      -9-

<PAGE>

                                  ARTICLE  II

                                 Participation
                                 -------------

2.1  Admission as A Participant
     --------------------------

          2.1.1  An Employee becomes a Participant as of the date he or she
satisfies all of the following requirements:

          (a)  the Employee is an Eligible Employee;

          (b)  the Employee either (i) is a permanent, full-time Employee, (ii)
               is a permanent, part-time employee eligible for benefits, or
               (iii) has completed at least 1,000 Hours of Service in a 12-month
               period beginning on his or her Employment Commencement Date or an
               anniversary of his or her Employment Commencement Date;

          (c)  the Employee has filed with the Administrator a form on which he
               or she makes a Pre-Tax Contribution Election or After-Tax
               Contribution Election; and

          (d)  the Employee's election has become effective according to uniform
               and nondiscriminatory rules established by the Administrator.

In place of the form, the Administrator may substitute a telephonic or
electronic means of enrollment.

          2.1.2  A Participant or Eligible Employee who is rehired as an
Eligible Employee after a Period of Separation becomes an active Participant by
filing with the Administrator a form on which he or she makes his or her Pre-Tax
Contribution Election or After-Tax Contribution Election.  When the form becomes
effective, the Participant or Eligible Employee will again become an active
Participant.  In place of the form, the Administrator may substitute a
telephonic or electronic means of reenrollment.

2.2  Provision of Information
     ------------------------

          Each Participant must execute the forms or follow the telephonic or
electronic procedures required by the Administrator and make available to the
Administrator any information it reasonably requests.  As a condition of
participating in the Plan, an Employee agrees, on his or her own behalf and on
behalf of all persons who may have or claim any right by reason of the
Employee's participation in the Plan, to be bound by all provisions of the Plan
and by any agreement entered into pursuant to it.

                                     -10-

<PAGE>

2.3  Termination of Participation
     ----------------------------

          A Participant ceases to be a Participant when he or she dies or, if
earlier, when his or her entire Account Balance has been paid to him or her.

2.4  Special Rules Relating to Veterans' Reemployment Rights
     -------------------------------------------------------

          Effective December 12, 1994, the following special provisions will
apply to an Eligible Employee or Participant who is reemployed in accordance
with the reemployment provisions of the Uniformed Services Employment and
Reemployment Rights Act ("USERRA") following a period of qualifying military
service (as determined under USERRA).

          2.4.1  Each period of qualifying military service served by an
Eligible Employee or Participant will, upon his or her reemployment as an
Eligible Employee, be deemed to constitute service with the Participating
Employer for all Plan purposes.

          2.4.2  The Participant will be permitted to make up Pre-Tax and/or
After-Tax Contributions missed during the period of qualifying military service,
so long as he or she does so during the period of time beginning on the date of
the Participant's reemployment with the Participating Employer following his or
her period of qualifying military service and extending over the lesser of (a)
three times the length of the Participant's period of qualifying military
service, and (b) five years.

          2.4.3  The Participating Employer will not credit earnings to a
Participant's Account with respect to any Pre-Tax or After-Tax Contribution
before the contribution is actually made.

          2.4.4  A reemployed Participant will be entitled to accrued benefits
attributable to Pre-Tax or After-Tax Contributions only if they are actually
made.

          2.4.5  For all Plan purposes, including the Participating Employer's
liability for making contributions on behalf of a reemployed Participant as
described above, the Participant will be treated as having received Compensation
from the Participating Employer based on the rate of Compensation the
Participant would have received during the period of qualifying military
service, or if that rate is not reasonably certain, on the basis of the
Participant's average rate of Compensation during the 12-month period
immediately preceding the period of qualifying military service.

          2.4.6  If a Participant makes a Pre-Tax or After-Tax Contribution in
accordance with the foregoing provisions of this Section 2.4:

          (a)  those contributions will not be subject to any otherwise
               applicable limitation under Code Section 402(g), 404(a) or 415,
               and will not be taken into account in applying those limitations
               to other contributions under the Plan or any other plan, for the
               year in which the contributions are made;

                                     -11-

<PAGE>

               the contributions will be subject to the above-referenced
               limitations only for the year to which the contributions relate
               and only in accordance with regulations prescribed by the
               Internal Revenue Service; and

          (b)  the Plan will not be treated as failing to meet the requirements
               of Code Section 401(a)(4), 401(a)(26), 401(k)(3), 410(b) or 416
               by reason of the contributions.

                                     -12-
<PAGE>

                                  ARTICLE III

                     Contributions and Account Allocations
                     -------------------------------------

3.1  Pre-Tax Contributions
     ---------------------

          The Company will transmit to the Funding Agent the Pre-Tax
Contributions for the Participants. To determine the amount it must transmit for
each Participant, the Company will multiply the percentage elected by the
Participant in his or her Pre-Tax Contribution Election by the Participant's
Compensation.

3.2  After-Tax Contributions
     -----------------------

          The Company will transmit to the Funding Agent the After-Tax
Contributions for the Participants. To determine the amount it must transmit for
each Participant, the Company will multiply the percentage elected by the
Participant in his or her After-Tax Contribution Election by the Participant's
Compensation.

3.3  Rules Applicable to Both Pre-Tax and After-Tax Contributions
     ------------------------------------------------------------

          3.3.1  In making his or her Pre-Tax Contribution Election and After-
Tax Contribution Election, a Participant must choose to defer or contribute
between 2% and 20% (15% before October 1, 1999) of his or her Compensation, in
1% increments. For periods beginning on or after October 1, 1999, the
Participant's Pre-Tax Contribution Election and After-Tax Contribution Election
cannot together total more than 20% of his or her Compensation. For periods
beginning before October 1, 1999, the Participant's Pre-Tax Contribution
Election and After-Tax Contribution Election cannot together total more than 15%
of his or her Compensation. The Administrator may reduce the amount of any Pre-
Tax Contribution Election, or make such other modifications it deems necessary,
so that the Plan complies with the provisions of Code Section 401(k). Pre-Tax
and After-Tax Contributions will be made on a payroll deduction basis and in
accordance with uniform and nondiscriminatory rules and procedures established
by the Administrator. A Participant's Salary Deferral Election will apply only
to Compensation paid to the Participant while he or she is an Eligible Employee.

          3.3.2  A Participant may change his or her Pre-Tax or After-Tax
Contribution Election percentage or discontinue making Pre-Tax Contributions or
After-Tax Contributions, as frequently as permitted by the Administrator, by
completing the form or following any other election change procedure prescribed
by the Administrator.  An election change will become effective according to the
uniform and nondiscriminatory rules established by the Administrator.

          3.3.3  Pre-Tax and After-Tax Contributions will be delivered to the
Funding Agent as of the earliest date they are known and can reasonably be
segregated from the general assets of the Participating Employer. In no event
will that date be later than the 15th business day of the month following the
month they would have been paid to the Participant if he or she had not chosen
to defer their payment or contribute them to the Plan.

                                     -13-
<PAGE>

          3.3.4  Notwithstanding any other provision of the Plan, the amount
contributed by the Participating Employers as Pre-Tax Contributions and by
Participants as After-Tax Contributions must not exceed, in the aggregate, 15%
of the total Compensation for the Plan Year for those Participants employed by
the Participating Employers eligible for an allocation for that Plan Year. In
addition, the amount contributed by the Participating Employers to this Plan or
any other qualified plan maintained by the Participating Employers pursuant to a
Participant's Pre-Tax Contribution Election must not exceed the Code Section
402(g) limit applicable for that calendar year.

3.4  Company Contributions
     ---------------------

          3.4.1  For each contribution period, as defined in Section 3.4.2, the
Company will make a Company Contribution equal to:

          (a)  the applicable percentage of all Basic Contributions made for
               that contribution period and initially invested in the Stock
               Fund; plus

          (b)  the applicable percentage of all Basic Contributions made for
               that contribution period and initially invested in any Investment
               Funds other than the Stock Fund; less

          (c)  any Forfeitures credited against the Company Contribution for
               that contribution period.

No Company Contribution will be made with respect to Supplemental Contributions.

  The applicable percentage for a Plan Year will be determined by the Company
before the start of the Plan Year. It is currently anticipated that the
applicable percentage will be different for Basic Contributions initially
invested in the Stock Fund than for Basic Contributions initially invested in
other Investment Funds. The Company will communicate the applicable percentages
for each Plan Year as soon as possible after they are determined.

          3.4.2  The Company Contribution for each contribution period will be
paid to the Funding Agent as soon as practicable. The Company Contribution will
be allocated to each Participant who made Basic Contributions during that
contribution period, by multiplying the Participant's own Basic Contributions
for the contribution period by the applicable percentages determined for the
Participant, as described above. All Company Contributions will be invested in
the Stock Fund. For periods beginning on or after July 7, 1997, each calendar
week will be a contribution period. For periods beginning before July 7, 1997,
each calendar month was a contribution period. Subject to the special provisions
of Section 3.13 through 3.15, all Company Contributions for a Plan Year will be
allocated to Participants' Company Contribution Accounts no later than the due
date (including all extensions) of the Company's federal tax return for the
fiscal year of the Company ending with or within the Plan Year.

                                     -14-
<PAGE>

3.5  Rollover Contributions
     ----------------------

          Effective January 1, 1986, with the approval of the Administrator, a
Participant or Eligible Employee may make a Rollover Contribution to the Plan. A
Participant's Rollover Contribution will be allocated to his or her Rollover
Contribution Account no later than the first day of the month following the
month in which the contribution is made. A Rollover Contribution must be made in
cash. If an Employee makes a contribution that was intended to be a Rollover
Contribution and the Funding Agent later discovers it was not a Rollover
Contribution, the Funding Agent will distribute the balance of the Participant's
Rollover Contribution Account to him or her as soon as practicable.

3.6  Establishment of Accounts
     -------------------------

          3.6.1  Each Participant to whom Pre-Tax Contributions are allocated
will have a Pre-Tax Contribution Account. The Pre-Tax Contribution Account will
be credited with the Pre-Tax Contributions allocable to the Participant and the
income on those contributions, and will be debited with expenses, losses,
withdrawals and distributions chargeable to those contributions.

          3.6.2  Each Participant who makes After-Tax Contributions will have an
After-Tax Contribution Account. The After-Tax Contribution Account will be
credited with the After-Tax Contributions the Participant makes and the income
on those contributions, and will be debited with expenses, losses, withdrawals
and distributions chargeable to those contributions.

          3.6.3  Each Participant who makes a Rollover Contribution to the Plan
pursuant to Section 3.5 will have a Rollover Contribution Account. The Rollover
Contribution Account will be credited with all Rollover Contributions made by
the Participant and the income on those contributions, and will be debited with
expenses, losses, withdrawals and distributions chargeable to those
contributions.

3.7  Limitation on Annual Additions to Accounts
     ------------------------------------------

          Notwithstanding any provision of the Plan to the contrary, the total
annual additions allocated for any Plan Year to the Account of a Participant and
to his or her accounts under any other defined contribution plan maintained by
the Company or an Affiliate must not exceed $30,000 or 25% of the Participant's
Compensation. For purposes of this Section 3.7, "annual additions" include all
Pre-Tax Contributions, After-Tax Contributions, Company Contributions and
Forfeitures allocated to the Participant's Accounts for the Plan Year, except
for Excess Pre-Tax Contributions (as described in Section 3.10.5) distributed to
the Participant by April 15 following the year for which they were contributed
to the Plan. "Annual additions" also include any employer and employee
contributions and forfeitures allocated for the Plan Year under other defined
contribution plans of the Company and the Affiliates. For Plan Years beginning
before January 1, 1998, for purposes of this Section 3.7, a Participant's
Compensation was adjusted by subtracting from it any Pre-Tax Contributions made
for the Participant for the Plan Year, any Code Section 401(k) contributions
made for the Participant to another plan for the

                                      15
<PAGE>

Plan Year, and any contributions made on the Participant's behalf under a Code
Section 125 cafeteria plan. For the Short Plan Year running from April 1, 1997
through December 31, 1997, the $30,000 limit of this Section 3.7 was adjusted to
$22,500.

3.8  Reduction of Annual Additions
     -----------------------------

          If the annual additions allocated to a Participant's Accounts for the
Plan Year exceed the limitation described in Section 3.7, annual additions, with
their earnings, will be returned to the Participant in the minimum amount
necessary to meet the limitation on annual additions. Supplemental Contributions
(both After-Tax Contributions and Pre-Tax Contributions, in that order) will be
returned first, and if there are not enough to satisfy the limitation on annual
additions, Basic Contributions (both After-Tax Contributions and Pre-Tax
Contributions, in that order) will be returned. If, after all of the
Participant's Supplemental and Basic Contributions have been returned, the
annual additions allocated to the Participant's Account for the Plan Year still
exceed the limitation described in Section 3.7, the excess amounts attributable
to Company Contributions will be held in a suspense account containing the
excess amounts attributable to Company Contributions for all Participants, and
will be used to reduce the Company Contributions for the following Plan Year
(and later Plan Years, if necessary), before any Company Contributions that
would be annual additions for the next Plan Year (or later Plan Years, if
necessary) are made to the Plan.

3.9  Combined Plan Fraction
     ----------------------

          For Plan Years beginning before January 1, 2000, if a Participant was
(or had been) a participant in any defined benefit plan (whether or not
terminated) maintained by the Company or an Affiliate, the sum of the
Participant's defined benefit plan fraction and defined contribution plan
fraction could not exceed 1. If the sum exceeded 1, the Participant's defined
contribution plan fraction was reduced until the sum equaled 1. The defined
benefit plan fraction and defined contribution plan fraction were defined in
Code Section 415(e).

3.10  Limitations on Pre-Tax Contributions, After-Tax Contributions and Company
      -------------------------------------------------------------------------
Contributions - Definitions
---------------------------

          For purposes of Sections 3.10 through 3.15, the terms defined below
have the meanings ascribed to them in this Section 3.10.

          3.10.1  Actual Contribution Percentage means the sum of the After-Tax
Contributions and Company Contributions allocated to the Eligible Participant
for the Plan Year, plus any of the Eligible Participant's Pre-Tax Contributions
treated as Company Contributions for the Plan Year, divided by the Eligible
Participant's Plan Year Compensation, and stated as a percentage. All after-tax
employee contributions and employer matching contributions made on behalf of a
Highly Compensated Employee under all plans of the Company and its Affiliates
will be aggregated to determine the Highly Compensated Employee's Actual
Contribution Percentage. A Company Contribution that is treated as a Pre-Tax
Contribution under Section

                                     -16-
<PAGE>

3.13.7 is subject to Section 3.13 and is not taken into account in calculating
an Eligible Participant's Actual Contribution Percentage. A Company Contribution
that is forfeited to correct Excess Aggregate Contributions, or because the
contribution to which it relates is treated as an Excess Contribution, Excess
Pre-Tax Contribution or Excess Aggregate Contribution is not taken into account
in calculating the Eligible Participant's Actual Contribution Percentage. The
Actual Contribution Percentage of an Eligible Participant who does not make a
Pre-Tax Contribution Election or an After-Tax Contribution Election is 0.0%.
Effective April 1, 1997, the Actual Contribution Percentage of an Eligible
Participant will be determined without taking into account any amounts allocated
to the accounts of his or her family members.

          3.10.2  Actual Deferral Percentage means the amount of Pre-Tax
Contributions allocated to the Eligible Participant for the Plan Year, divided
by his or her Plan Year Compensation, stated as a percentage.  In calculating
the Actual Deferral Percentage, Pre-Tax Contributions include Excess Pre-Tax
Contributions for Highly Compensated Employees (whether they were made under
plans of unrelated employers or plans of the same or related employers) but do
not include Excess Pre-Tax Contributions for Nonhighly Compensated Employees.
The Actual Deferral Percentage of an Eligible Participant who does not make a
Pre-Tax Contribution Election is 0.0%. Effective April 1, 1997, the Actual
Deferral Percentage of an Eligible Participant will be determined without taking
into account any amounts allocated to the accounts of his or her family members.

          3.10.3  Aggregate Limit means the greater of:

          (a)  the sum of:

               (i)  1.25 times the Average Actual Deferral Percentage or the
                    Average Actual Contribution Percentage of the group,
                    whichever is larger; and

               (ii) two percentage points plus the Average Actual Deferral
                    Percentage or the Average Actual Contribution Percentage of
                    the group, whichever is less, but in no event more than
                    twice the lesser of the group's Average Actual Deferral
                    Percentage and its Average Actual Contribution Percentage;
                    and

          (b)  the sum of:

                    (i)  1.25 times the Average Actual Deferral Percentage or
                         the Average Actual Contribution Percentage of the
                         group, whichever is less; and

                    (ii) two percentage points plus the Average Actual Deferral
                         Percentage or the Average Actual Contribution
                         Percentage of the group, whichever is larger, but in no
                         event more than twice the larger of the group's Average
                         Actual Deferral

                                     -17-

<PAGE>

                         Percentage and its Average Actual Contribution
                         Percentage.

For purposes of this Section 3.10.3, the "group" is the group of Eligible
Participants who are Nonhighly Compensated Employees for the preceding Plan
Year.

          3.10.4  Average Actual Contribution Percentage means the average of
the Actual Contribution Percentages of the Eligible Participants in a group.

          3.10.5  Average Actual Deferral Percentage means the average of the
Actual Deferral Percentages of the Eligible Participants in a group.

          3.10.6  Eligible Participant means any Employee who is eligible to
make a Pre-Tax Contribution Election or an After-Tax Contribution Election any
time during the Plan Year.

          3.10.7  Excess Aggregate Contributions means, for any Plan Year, the
excess of the Company and After-Tax Contributions (and any Pre-Tax Contributions
or pre-tax salary deferrals under other plans taken into account in determining
the Actual Contribution Percentages) actually made on behalf of Highly
Compensated Employees for the Plan Year, over the maximum amount of Company and
After-Tax Contributions permitted under Section 3.14 for the Plan Year.
Effective April 1, 1997, the amount of the Excess Aggregate Contribution for any
given Eligible Participant is determined by making bookkeeping reductions (as
opposed to actual reductions) in contributions.  The reductions will be made by
reducing the Company and After-Tax contributions for the Highly Compensated
Employee with the highest combined dollar amount of Company and After-Tax
Contributions by the lesser of: (a) the amount necessary for the dollar amount
of that Highly Compensated Employee's combined Company and After-Tax
Contributions to equal the combined dollar amount of the Company and After-Tax
Contributions of the Highly Compensated Employee with the next highest combined
dollar amount of Company and After-Tax Contributions; and (b) the amount
necessary for the Plan to satisfy the Actual Contribution Percentage Test.  The
Administrator will repeat this bookkeeping procedure until the Plan satisfies
the Actual Contribution Percentage Test of Section 3.14.  For each Highly
Compensated Employee's reductions, the Administrator will begin by making
reductions in his or her Company Contributions, and will reduce the Highly
Compensated Employee's After-Tax Contributions only if his or her Company
contributions for the Plan Year have been reduced to zero and it is still
necessary to reduce his or her Plan Year contributions.  The amount of any
Highly Compensated Employee's Excess Aggregate Contributions is calculated after
determining the Excess Contribution to be recharacterized as After-Tax
Contributions for the Plan Year.

          3.10.8  Excess Contributions means for any Plan Year, the excess of
the Pre-Tax Contributions (and any Company contributions taken into account in
determining the Actual Deferral Percentages) that are made on behalf of Highly
Compensated Employees for the Plan Year, over the maximum amount of Pre-Tax
Contributions permitted under Section 3.13 for the Plan Year.  Effective April
1, 1997, the amount of the Excess Contribution for any given Eligible

                                     -18-

<PAGE>

Participant is determined by making bookkeeping reductions (as opposed to actual
reductions) in contributions.  The reduction will be made by reducing the Pre-
Tax Contributions for the Highly Compensated Employee with the highest dollar
amount of Pre-Tax Contributions by the lesser of:  (a) the amount necessary for
the dollar amount of that Highly Compensated Employee's Pre-Tax Contributions to
equal the dollar amount of the Pre-Tax Contributions for the Highly Compensated
Employee with the next highest dollar amount of Pre-Tax Contributions, and (b)
the amount necessary for the Plan to satisfy the Actual Deferral Percentage
Test.  The Administrator will repeat this bookkeeping procedure until the Plan
satisfies the Actual Deferral Percentage Test set forth in Section 3.13.

          3.10.9  Excess Pre-Tax Contribution means the amount of Pre-Tax
Contributions for a calendar year that are includible in a Participant's gross
income under section 402(g) of the Code because the Participant's elective
deferrals exceed the dollar limitation under section 402(g) of the Code as
determined under Sections 3.11 and 3.12.

3.11  Maximum Amount of Pre-Tax Contributions
      ---------------------------------------

          The total amount of Pre-Tax Contributions, 401(k) contributions under
another qualified plan, and deferrals under a Code Section 403(b) annuity, a
simplified employee pension and/or a simple retirement account allocated to a
Participant in any calendar year cannot exceed the dollar limitation in effect
under Code Section 402(g) for that year.

3.12  Correction of Excess Pre-Tax Contributions
      ------------------------------------------

          3.12.1  Excess Pre-Tax Contributions, as adjusted per Section 3.12.2,
will be distributed to each Participant on whose behalf they were made no later
than the first April 15 following the close of the taxable year of the
Participant for which they were allocated.  In no event may the amount
distributed under this Section 3.12 exceed the Participant's total Pre-Tax
Contributions (as adjusted under Section 3.12.2 for income and losses allocable
to them) for the taxable year for which he or she had Excess Pre-Tax
Contributions.

          3.12.2  The Excess Pre-Tax Contributions to be distributed to a
Participant will be adjusted for income or losses through the close of the Plan
Year for which they were made.  Income and losses allocable to a Participant's
Excess Pre-Tax Contributions will be determined in a nondiscriminatory manner
(within the meaning of Code Section 401(a)(4)) consistent with the valuation of
Participant Accounts under Section 10.4.

          3.12.3  If a Participant has Excess Pre-Tax Contributions, but only
when taking into account his or her pre-tax contributions under another plan, in
order to receive a distribution of Excess Pre-Tax Contributions, he or she must
make a written claim to the Administrator no later than the March 15 following
the taxable year of the Participant for which the contributions were made.  The
claim must specify the amount of the Participant's Excess Pre-Tax Contributions
for the preceding taxable year and be accompanied by the Participant's written
statement that if those amounts are not distributed, the Participant's Pre-Tax
Contributions, when

                                     -19-

<PAGE>

added to amounts deferred under other plans or arrangements described in Code
Sections 401(k), 402(h)(1)(B) (a simplified employee pension), 403(b) (an
annuity plan) or 408(p)(2)(A)(i) (a simple retirement plan) will exceed the
limit imposed on the Participant by Code Section 402(g) for the year in which
the deferral occurred.

          3.12.4  Excess Pre-Tax Contributions distributed prior to the first
April 15 following the close of the Participant's taxable year will not be
treated as Annual Additions under Section 3.7 for the preceding Limitation Year.

          3.12.5  Any Pre-Tax Contributions that are properly distributed under
Section 3.8 as excess Annual Additions are disregarded in determining if there
are any Excess Pre-Tax Contributions.

3.13  Actual Deferral Percentage Test
      -------------------------------

          3.13.1  The Average Actual Deferral Percentage for Eligible
Participants who are Highly Compensated Employees for the Plan Year may not
exceed the greater of:

          (a)  the Average Actual Deferral Percentage for Eligible Participants
               who are Nonhighly Compensated Employees for the Plan Year
               multiplied by 1.25; and

          (b)  the lesser of:

               (i)  the Average Actual Deferral Percentage for Eligible
                    Participants who are Nonhighly Compensated Employees for the
                    Plan Year multiplied by two and

               (ii) the Average Actual Deferral Percentage for Eligible
                    Participants who are Nonhighly Compensated Employees for the
                    Plan Year plus two percentage points.

          3.13.2  The provisions of Code Section 401(k)(3) are incorporated by
reference.

          3.13.3  If this Plan satisfies the requirements of Code Sections
401(a)(4), 401(k), and 410(b) only if aggregated with one or more other plans,
or if one or more other plans satisfy the requirements of those Code sections
only if aggregated with this Plan, then this Section 3.13 is applied by
determining the Actual Deferral Percentages of Eligible Participants as if all
the plans were a single plan.

          3.13.4  The Administrator also may treat one or more plans as a single
plan with the Plan whether or not the aggregated plans must be aggregated to
satisfy Code Sections 401(a)(4) and 410(b).  However, those plans must then be
treated as one plan under Code Sections 401(a)(4), 401(k), and 410(b).  Plans
may be aggregated under this Section 3.13.4 only if they have the same plan
year.

                                     -20-

<PAGE>

          3.13.5  Pre-Tax Contributions may be considered made for a Plan Year
if made no later than the end of the 12-month period beginning on the day after
the close of the Plan Year.

          3.13.6  The determination and treatment of the Pre-Tax Contributions
and Actual Deferral Percentage of any Participant must satisfy all requirements
prescribed by the Secretary of the Treasury, including, without limitation,
record retention requirements.

          3.13.7  The Administrator will limit the election and allocation of
Pre-Tax Contributions in order to avoid the creation of Excess Contributions.
If and to the extent necessary or desirable, the Administrator will
recharacterize Excess Contributions as After-Tax Contributions, or will
distribute Excess Contributions.  Recharacterized Excess Contributions will be
treated as required in Treasury Regulations Section 1.401(k)-1(f)(3).  The
Administrator will recharacterize Excess Contributions within two and one-half
months after the close of the Plan Year in which they arose.  A distribution of
Excess Contributions will normally be made within the same time frame.  At all
events, a corrective distribution of Excess Contributions must be made within 12
months after the end of the Plan Year in which they arose, and will include
income allocable the Excess Contributions for the Plan Year in which they arose.
The method used to determine the income allocable to Excess Contributions that
are distributed will not violate Code Section 401(a)(4), and will be applied
consistently for all Participants and all corrective distributions for any Plan
Year.  Any distribution to a Participant of less than the entire amount of his
or her Excess Contributions will be treated as a pro rata distribution of Excess
Contributions and income.  The Administrator may combine the correction methods
described in this Section 3.13.7.  The amount of Excess Contributions to be
recharacterized or distributed to a Participant under this Section 3.13.7 will
be reduced by any Excess Pre-Tax Contributions previously distributed to the
Participant for his or her taxable year ending with or within the Plan Year.
Similarly, the amount of Excess Pre-Tax Contributions to be distributed for a
Participant's taxable year will be reduced by the amount of any Excess
Contributions previously distributed or recharacterized as to that Participant
for the Plan Year beginning with or within the Participant's taxable year.

3.14  Actual Contribution Percentage Test
      -----------------------------------

          3.14.1  The Average Actual Contribution Percentage for Eligible
Participants who are Highly Compensated Employees for the Plan Year may not
exceed the greater of:

          (a)  the Average Actual Contribution Percentage for Eligible
               Participants who are Nonhighly Compensated Employees for the Plan
               Year multiplied by 1.25; and

          (b)  the lesser of:

               (i)  the Average Actual Contribution Percentage for Eligible
                    Participants who are Nonhighly Compensated Employees for the
                    Plan Year multiplied by two; and

                                     -21-

<PAGE>

               (ii) the Average Actual Contribution Percentage for Eligible
                    Participants who are Nonhighly Compensated Employees for the
                    Plan Year plus two percentage points.

          3.14.2  The provisions of Code Section 401(m)(2) are incorporated by
reference.

          3.14.3  If this Plan satisfies the requirements of Code Section
401(a)(4), 401(k) and 410(b) only if aggregated with one or more other plans, or
if one or more other plans satisfy the requirements of those Code sections only
if aggregated with this Plan, then this Section 3.14 is applied by determining
the Actual Contribution Percentage of Eligible Participants as if all the plans
were a single plan.

          3.14.4  The Administrator also may treat one or more plans as a single
plan with the Plan, whether or not the aggregated plans must be aggregated to
satisfy Code Sections 401(a)(4) and 410(b).  However, those plans must then be
treated as one plan under Code Sections 401(a)(4), 401(m) and 410(b).  Plans may
be aggregated under this Section 3.14.4 only if they have the same plan year.

          3.14.5  An After-Tax Contribution is considered made for a Plan Year
if it is deducted from the Participant's Compensation during the Plan Year and
transmitted to the Trustee within a reasonable period after that.  A Company
Contribution is considered made for a Plan Year if it is allocated to a
Participant's Account as of a date within the Plan Year, is actually paid to the
Trust no later than 12 months after the Plan Year, and is made on account of the
Participant's Basic Contributions for the Plan Year.  A Pre-Tax Contribution may
be considered made under this Section 3.14 for a Plan Year if it is
recharacterized for purposes of Section 3.13, and if it is includible in the
gross income of the Participant as of a date during that Plan Year.  A
recharacterized Pre-Tax Contribution is includible in a Participant's gross
income as of the date it would have been paid to the Participant, had the
Participant not elected to defer it into the Plan.

          3.14.6  The determination and treatment of After-Tax and Company
Contributions and the Actual Contribution Percentage of any Participant must
satisfy all requirements prescribed by the Secretary of Treasury, including,
without limitation, record retention requirements.

          3.14.7  The Administrator will limit the making of After-Tax
Contributions in order to avoid the creation of Excess Aggregate Contributions.
If and to the extent necessary or desirable, the Administrator will forfeit any
Excess Aggregate Contributions that were Company Contributions and that were not
vested, will distribute to the Participant who made them any Excess Aggregate
Contributions that were After-Tax Contributions, and will distribute to the
Participant to whom they were allocated any Excess Aggregate Contributions that
were Company Contributions and were vested.  A distribution of Excess Aggregate
Contribution will normally be made within two and one-half months after the
close of the Plan Year in which they arose.  At all events a corrective
distribution of Excess Aggregate Contributions must be made no later than 12
months after the close of the Plan Year in which they arose, and will include

                                     -22-

<PAGE>

income allocable to the Excess Aggregate Contributions for the Plan Year in
which they arose.  The method used to determine the income allocable to any
Excess Aggregate Contributions that are distributed will not violate Code
Section 401(a)(4), and will be applied consistently for all Participants and all
corrective distributions for any Plan Year.  Any distribution to a Participant
of less than the entire amount of his or her Excess Aggregate Contributions will
be treated as a pro rata distribution of Excess Aggregate Contributions and
income.  The Administrator may combine the correction methods described in this
Section 3.14.7.

     3.15  Multiple Use of Alternative Limitation
           --------------------------------------

          3.15.1  Multiple use of the alternative limitation occurs if all of
the following conditions are satisfied.

          (a)  The sum of the Average Actual Contribution Percentage for
               Eligible Participants who are Highly Compensated Employees and
               the Average Actual Deferral Percentage for Eligible Participants
               who are Highly Compensated Employees is greater than the
               Aggregate Limit for the preceding Plan Year.

          (b)  The Average Actual Deferral Percentage for Eligible Participants
               who are Highly Compensated Employees exceeds the amount described
               in Section 3.13.1(a).

          (c)  The Average Actual Contribution Percentage for Eligible
               Participants who are Highly Compensated Employees exceeds the
               amount descried in Section 3.14.1(a)

          3.15.2  The Average Actual Deferral and Contribution Percentages for
Eligible Participants who are Highly Compensated Employees will be determined
for purposes of this Section 3.15 after corrective measures have been taken
under Sections 3.13.7 and 3.14.7.

          3.15.3  The Administrator will limit the making of After-Tax
Contributions or, if that is not sufficient, the election and allocation of Pre-
Tax Contributions, in order to avoid multiple use of the alternative limitation.
If and to the extent necessary or desirable, the Administrator will eliminate
multiple use of the alternative limitation by reducing the Average Actual
Contribution Percentage of the Eligible Participants who are Highly Compensated
Employees in the manner described in Section 3.10.7 above.  The amount of the
required reduction will be Excess Aggregate Contributions, and will be forfeited
or distributed to Highly Compensated Employees as described in Section 3.14.7
above.

                                     -23-

<PAGE>

                                   ARTICLE IV

                                    Vesting
                                    -------

4.1  Vesting in After-Tax, Pre-Tax and Rollover Contributions Accounts
     -----------------------------------------------------------------

          A Participant is always 100% vested in the balance of his or her
After-Tax Contribution Account, Pre-Tax Contribution Account and Rollover
Contribution Account.

4.2  Vesting in Company Contribution and Contingent Accounts
     -------------------------------------------------------

          4.2.1  A Participant becomes vested in the balance of his or her
Company Contribution Account and Contingent Account according to the following
Schedule:

               Years of Service      Percent Vested
               ----------------      --------------

               Fewer than 2                 0%
               2 but fewer than 3          20%
               3 but fewer than 4          40%
               4 but fewer than 5          60%
               5 or more                  100%

          4.2.2  Notwithstanding the foregoing, a Participant will become 100%
vested in the balance of his or her Company Contribution Account and Contingent
Account if:

          (a)  he or she reaches age 55 while employed by the Company or one of
               its Affiliates;

          (b)  he or she separates from service due to Disability;

          (c)  he or she dies while employed by the Company or one of its
               Affiliates;

          (d)  he or she ceases to be an Employee because of the permanent
               shutdown of a single site of employment or of one or more
               facilities or operating unites within a single site of
               employment; or

          (e)  he or she is employed by the Company or one of its Affiliates
               involved in a transaction and the Committee, in its discretion,
               fully vests the Participant in connection with the transaction.

          4.2.3.  If a Participant is hired by the Company or one of its
Affiliates as a result of an acquisition, the Committee (or its delegatee) may,
in its discretion, give the Participant and all other Participants hired under
the same circumstances as a result of the same acquisition credit for service
with a prior employer for purposes of vesting.

                                     -24-

<PAGE>

          4.3  Forfeitures
               -----------

          4.3.1  A Participant forfeits the non-vested portion of his or her
Company Contribution and Contingent Accounts on the date a Period of Separation
begins.  The non-vested portion so forfeited is a "Forfeiture."  If the Period
of Separation is shorter than one year, the Forfeiture is restored, and the
Period of Separation counts towards the Participant's Year of Service.  If the
Period of Separation is longer than one year but shorter than five years, the
Forfeiture will be restored, and service before and after the Period of
Separation will count in determining the Participant's Year of Service for
purposes of Section 4.2.  If the Period of Separation is five years or longer,
the Forfeiture will not be restored.  If a Participant begins a Period of
Separation by way of a maternity or paternity leave, this Section 4.3.1 will be
read by substituting the number "six" for the number of "five" wherever the
latter number appears.  A "maternity or paternity leave" is an absence from work
because of the Participant's pregnancy, the birth of a child or placement of a
child for adoption with the Participant, or the need to care for the
Participant's child immediately following its birth to or placement with the
Participant.

          4.3.2  Amounts that become Forfeitures during a month will be used to
restore Forfeitures to rehired Participants as provided in Section 4.3.1.  Any
remaining Forfeitures during a month will be used to pay the administrative
expenses of the Plan in the following order:  Trustee's fees, communications to
Participants, nondiscrimination testing, qualified domestic relations order
administration, enrollment fees, required minimum distribution fees, auditors'
fees, consulting and legal fees and other similar administrative expenses.  Any
remaining Forfeitures during a month will be debited against the appropriate
Company Contribution and Contingent Accounts, and credited toward the Company's
obligation to make Company Contributions in succeeding months.  Any remaining
Forfeitures during a month will be used to pay fees associated with Participant
communications to Participants involved in an acquisition or divestiture and
Participant Account adjustments, as determined by the Committee or its
delegatee.  While awaiting allocation, Until such time as the Company applies
Forfeitures to the purposes described above, they will be invested in a default
fund selected by the Company.  For periods beginning before July 7, 1997, while
awaiting allocation as Company Contributions, Forfeitures were invested in the
Stock Fund.

4.4  Special Vesting Rules for Participants Transferred to Snap-On Incorporated
     --------------------------------------------------------------------------

          In 1996, the Company sold and assigned the assets and liabilities of
its Automotive Service Equipment Division to Snap-On Incorporated.  Effective as
of the Closing Date of that transaction (as defined in the asset purchase
agreement), each Participant who was transferred to Snap-On Incorporated as part
of the transaction and was a Transferred Employee, as defined in the asset
purchase agreement (a "Snap-On Transferred Employee"), was made fully vested in
his or her Plan Account.  Further, any Plan loan to a Snap-On Transferred
Employee that was outstanding as of the Closing Date remains outstanding,
notwithstanding the Snap-On Transferred Employee's termination of employment
with the Company and all Affiliates, as if the Transferred Employee were still
employed by the Company, until the earliest of:

                                     -25-

<PAGE>

          (a)  the date the Snap-On Transferred Employee fully repays the loan;

          (b)  the date the Snap-On Transferred Employee defaults on the loan;

          (c)  the date the Snap-On Transferred Employee fails to repay the loan
               in full after separating from service with Snap-On Incorporated
               and its affiliates under Code Sections 414(b), (c), (m) and (o)
               and being given the opportunity to repay the loan; and

          (d)  a date that is no later than 90 days after the date Snap-On
               Incorporated ceases to facilitate loan repayments for Snap-On
               Transferred Employees by payroll deduction.

4.5  Special Vesting Rules for Participants Transferred to Great Lakes Chemical
     --------------------------------------------------------------------------
          Pursuant to that certain U.S. Asset Purchase and Framework Agreement
(the "Agreement") dated May 4, 1999 by and between the Company and Great Lakes
Chemical Corporation ("Great Lakes"), the Company sold and assigned certain
assets and liabilities to Great Lakes.  As part of that transaction, certain
individuals were offered employment by Great Lakes and became Transferred
Employees, as defined in the Agreement.  Each such individual is a "Great Lakes
Transferred Employee" for purposes of this Section 4.5.  Effective immediately
before the Closing Date, as defined in the Agreement (the "Closing Date"), each
Participant who was a Great Lakes Transferred Employee was made fully vested in
all of his or her Account.  Moreover, any Plan loan that was outstanding on the
Closing Date to a Great Lakes Transferred Employee remains outstanding under
this Plan, notwithstanding the Great Lakes Transferred Employee's termination of
employment with the Company and all Affiliates, as if the Great Lakes
Transferred Employee were still employed by the Company, until the earliest of:

          (a)  the date the Great Lakes Transferred Employee fully repays the
               loan;

          (b)  the date the Great Lakes Transferred Employee defaults on the
               loan;

          (c)  the date the Great Lakes Transferred Employee fails to repay the
               loan in full after separating from service with Great Lakes and
               its affiliates under Code Sections 414(b), (c), (m) and (o) and
               being given the opportunity to repay the loan;

          (d)  the date that is no later than 90 days after the date Great Lakes
               ceases to facilitate loan repayments for Great Lakes Transferred
               Employees by payroll deduction; and

          (e)  the date the loan is transferred with the rest of the Great Lakes
               Transferred Employee's Accounts to a defined contribution plan of
               Great Lakes or a Great Lakes affiliate under Code Section 414(b),
               (c), (m) or (o).

                                     -26-

<PAGE>

4.6  Special Vesting Rules for Participants Transferred to Cambrex
     -------------------------------------------------------------

          Pursuant to that asset purchase agreement (the "Agreement") dated June
3, 1999 by and between the Company and Cambrex Corporation ("Cambrex"), the
Company sold and assigned certain assets and liabilities of its BioProducts
Division to Cambrex. As part of that transaction, certain individuals were
offered employment by Cambrex and became Transferred Employees, as defined in
the Agreement. Each such individual is a "Cambrex Transferred Employee" for
purposes of this Section 4.6. Effective immediately before the Closing Date, as
defined in the Agreement (the "Closing Date"), each Participant who was a
Cambrex Transferred Employee was made fully vested in all of his or her Account.
Moreover, any Plan loan that was outstanding on the Closing Date to a Cambrex
Transferred Employee remains outstanding under this Plan, notwithstanding the
Cambrex Transferred Employee's termination of employment with the Company and
all Affiliates, as if the Cambrex Transferred Employee were still employed by
the Company, until the earliest of:

          (a)  the date the Cambrex Transferred Employee fully repays the loan;

          (b)  the date the Cambrex Transferred Employee defaults on the loan;

          (c)  the date the Cambrex Transferred Employee fails to repay the loan
               in full after separating from service with Cambrex and its
               affiliates under Code Sections 414(b), (c), (m) and (o) and being
               given the opportunity to repay the loan;

          (d)  the date that is no later than 90 days after the date Cambrex
               ceases to facilitate loan repayments for Cambrex Transferred
               Employees by payroll deduction; and

          (e)  the date the loan is transferred with the rest of the Cambrex
               Transferred Employee's Accounts to a defined contribution plan of
               Cambrex or a Cambrex affiliate under Code Section 414(b), (c),
               (m) or (o).

                                     -27-
<PAGE>

                                   ARTICLE V

                    Timing of Distributions to Participants
                    ---------------------------------------

5.1  Separation from Service
     -----------------------

          Upon his or her separation from service with the Company and all
Affiliates for any reason, a Participant will be entitled to receive the vested
portion of his or her Account Balance, determined in accordance with the
provisions of Article IV and the valuation rules established for each Investment
Fund. The date as of which the Participant's Account Balance is determined will
be the Valuation Date preceding the date of distribution.

5.2  Start of Benefit Payments
     -------------------------

          5.2.1  Except as provided in Sections 5.2.2 and 5.2.3, unless a
Participant otherwise elects, payment of benefits will begin no later than the
60th day after the close of the Plan Year in which the latest of the following
events occurs:

          (a)  the Participant's 65th birthday;

          (b)  the 10th anniversary of the year in which the Participant
               commenced participation; and

          (c)  the Participant's separation from service.

If the amount of benefits payable to or in respect of a Participant cannot be
determined by the benefit commencement date described in the preceding sentence,
or if the Administrator cannot locate the Participant (or, if the Participant
has died, his or her Beneficiary) after making a reasonable effort to do so,
benefit payments will begin no later than 60 days after the amount of the
Participant's benefits can first be determined or the Participant (or his or her
Beneficiary) is located, in the amount necessary to bring the payments up to
date, as if they had begun on the benefit commencement date described in the
preceding sentence.

          5.2.2  The Participant's Account Balance will be distributed as soon
as practicable after the Participant elects a distribution following the
Participant's separation from service. Notwithstanding the foregoing, if (at the
time of his or her separation from service) the Participant's total Account
Balance exceeds $5,000 (or, for Plan Years beginning before 1998, $3,500) the
Participant may elect to defer distribution of his or her Account Balance until
a date no later than his or her Required Beginning Date, and the Participant's
Account Balance may be distributed before the Participant's Required Beginning
Date only if the notice and consent rules of this Section 5.2.2 are met. At
least 30, but no more than 90, days before the Annuity Starting Date, the
Administrator will furnish the Participant with a notice containing information
regarding his or her right to defer distribution of his or her Account Balance.
The Administrator will give the Participant an election period of at least 30
days to decide whether to take distribution. Notwithstanding the foregoing, the
election period may end immediately after the

                                     -28-
<PAGE>

Participant makes an affirmative election to take distribution of his or her
Account Balance. Notices and elections under this Section 5.2.2 may be made
electronically or telephonically.

          5.2.3  Notwithstanding any other provision of this Plan, a Participant
must begin to receive his or her benefit no later than his or her Required
Beginning Date. The amount to be distributed each year will be the minimum
amount required to satisfy Code Section 401(a)(9) and the regulations
promulgated thereunder, determined with no recalculation of life expectancy. The
Required Beginning Date of a Participant who reaches age 70-1/2 on or after
January 1, 2000 is April 1 of the calendar year following the calendar year in
which the Participant reaches age 70-1/2 or, if later, retires. The Required
Beginning Date of a Participant who reaches age 70-1/2 before January 1, 2000 is
April 1 of the calendar year following the calendar year in which the
Participant reaches age 70-1/2. Notwithstanding any other provision of this
Section 5.2.3, if a Participant is a 5% owner (as defined in Section 416) for
the Plan Year ending in the calendar year in which he or she reaches age 70-1/2,
his or her Required Beginning Date is April 1 of the following calendar year,
and he or she cannot defer distribution until after he or she retires.

          5.2.4  Notwithstanding any other provision of this Plan, all Plan
distributions will comply with Code Section 401(a)(9), including Department of
Treasury Regulation Section 1.401(a)(9)-2. In addition, the benefit payments
distributed to any Participant will satisfy the incidental death benefit
provisions under Code Section 401(a)(9)(G) and the regulations promulgated under
it.

          5.2.5  If the Participant dies after beginning distribution of his or
her Account Balance, the remainder of the Account Balance will be payable in
accordance with Section 7.1. Notwithstanding the foregoing, the Participant's
Account Balance must continue to be distributed at least as rapidly as under the
method of distribution in effect before the Participant died.

          5.2.6  If the Participant dies before beginning distribution of his or
her Account Balance, the Participant's Account Balance will be distributed as
provided under Section 7.1, but distribution must be completed within five years
after the Participant dies. Notwithstanding the foregoing, the Participant's
Beneficiary may receive the Account Balance over his or her life or over a
period not extending beyond his or her life expectancy, so long as distribution
begins within one year after the participant dies, or, if the Beneficiary is the
Participant's Surviving Spouse, by the date the Participant would have reached
age 70-1/2. Furthermore, if the Participant's Surviving Spouse is the
Beneficiary and dies before distribution begins, the next Beneficiary to take
may receive benefits over his or her life or a period not exceeding his or her
life expectancy, so long as distribution begins by the date the Surviving Spouse
would have reached age 70-1/2.

5.3  Additional Distribution Events
     ------------------------------

          A Participant is eligible to receive a lump sum distribution of his or
her Account Balance under any of the sets of circumstances described below.

                                     -29-
<PAGE>

          (a)  The Plan is terminated and another defined contributions plan is
not established in its place. Neither an employee stock ownership plan (as
described in Code Section 4975(e) or 409) nor a simplified employee pension plan
(as defined in Code Section 408(k)) counts as another defined contribution plan
for this purpose.

          (b)  A Participating Employer that is a corporation disposes of
substantially all of the assets used in a trade or business to an unrelated
corporation, and the Participating Employer continues to maintain this Plan
after the disposition. In such a case, only Employees who continue employment
with the corporation acquiring the assets may receive a lump sum distribution.

          (c)  A Participating Employer that is a corporation disposes of its
interest in a subsidiary to an unrelated entity, and the Participating Employer
continues to maintain this Plan. In such a case, only Employees who continue
employment with the subsidiary may receive a lump sum distribution.

          For purposes of this Section 5.3, a lump sum distribution has the
meaning given by Code Section 402(d)(4), without regard to Subsections (i),
(ii), (iii) and (iv) of Subsections (A), (B), or (F) thereof.

5.4  Transfers from the Plan for Changes in a Participant's Employment Status
     ------------------------------------------------------------------------

          If, as a result of a change in employment status, a Participant ceases
to be a Participant in this Plan but becomes a participant in the FMC
Corporation Savings and Investment Plan for Bargaining Unit Employees pursuant
to the terms of that plan, his or her Account will be transferred to that plan
as soon as reasonably feasible after the date he or she becomes a participant in
that plan.

                                     -30-
<PAGE>

ARTICLE VI

              Forms of Benefit, In-Service Withdrawals and Loans
              --------------------------------------------------

6.1  Cashout of Small Amounts
     ------------------------

          Notwithstanding any other Plan provision, if a Participant's Account
Balance is not larger than $5,000 (or, for Plan Years beginning before 1998,
$3,500) the Account Balance will be paid in one lump sum as soon as practicable
after the Participant's separation from service, without his or her consent or
the consent of his or her spouse.

6.2  Medium of Distribution
     ----------------------

          A Participant's Account Balance will be distributed by check to the
Participant or Beneficiary entitled to it (or to his or her designated agent).
Alternatively, as to any amount invested in the Stock Fund at the time of
distribution, the Participant or, where applicable, his or her Beneficiary, may
request a certificate representing the whole shares of Stock held for him or
her, and a check representing any fractional share. The Administrator will
establish uniform and nondiscriminatory rules governing the timing, content and
manner of elections under this Section 6.2.

6.3  Forms of Benefit
     ----------------

          6.3.1  A Participant or Beneficiary may elect to have his or her
Account Balance distributed in any of the forms described below.

          (a)  Lump Sum:  This form of benefit pays the entire Account Balance
               in one payment.

          (b)  Installments for a Fixed Period:  The Participant or Beneficiary
               may elect to receive annual, quarterly or monthly installments
               over a fixed period of 20 years or less, or, for periods
               beginning before June 1, 1997, 10 years or less.

          (c)  Installments over Life Expectancy:  The Participant or
               Beneficiary may elect to receive annual, quarterly or monthly
               installments over his or her life expectancy or over the joint
               life expectancy of the Participant and his or her Beneficiary.

          6.3.2  If the Participant chooses to receive installments, the size of
each installment will be calculated by dividing the Account Balance determined
as of the date described in Section 5.1 by the total number of installments
remaining to be paid.

          6.3.3  The Administrator will establish uniform and nondiscriminatory
rules governing the timing, content and manner of elections under this Section
6.3.

                                     -31-
<PAGE>

          6.3.4  No installment election under this Plan will permit payments to
be made over a period longer than the Participant's life expectancy or the joint
life expectancy of the Participant and his or her Beneficiary.  A Participant
may not elect any stream of installments providing payments to a Beneficiary who
is other than his or her spouse, unless the amount distributed each year equals
or exceeds the quotient obtained by dividing the Participant's Account Balance
by the divisor determined under Department of Treasury Regulation Section
1.401(a)(9)-2.  Further, the amount of the periodic payment made to a
Beneficiary cannot under any circumstances be larger than the amount of the
periodic payment made to the Participant.

6.4  Change in Form, Timing or Medium of Benefit Payment

          Any former Employee who has chosen to defer payment of his or her
Account Balance may request a change in the form, timing or medium in which his
or her Account Balance will be paid, so long as the revised election conforms to
Section 6.3.  Once benefit payments have begun, no Participant may change the
form, timing or medium of payment of his or her Account Balance.

6.5  Direct Rollover of Eligible Rollover Distributions

          6.5.1  Notwithstanding any provision of the Plan, effective for
distributions on or after January 1, 1993, a Distributee may elect, at the time
and in the manner prescribed below, to have any portion of an Eligible Rollover
Distribution paid in a Direct Rollover to an Eligible Retirement Plan specified
by the Distributee.

          6.5.2  At least 30, but no more than 90, days before the Annuity
Starting Date, the Administrator will furnish the Participant with a notice
containing information regarding his or her right to take distribution directly
or to elect a Direct Rollover, and some of the federal tax consequences of the
alternative types of distribution.  The notice must meet the requirements of
Code Section 402(f).  The Administrator will give the Participant an election
period of at least 30 days to decide whether to elect a Direct Rollover.
Notwithstanding the foregoing, the election period may end immediately after the
Participant makes an affirmative election as to whether to receive the
distribution directly or in the form of a Direct Rollover, so long as the
Participant is properly informed of his or her right to a full 30-day election
period, and waives the remainder of the election period.

6.6  In-service and Hardship Withdrawals

          6.6.1  An active Participant who has reached age 59-1/2 may elect to
withdraw all or any part of his or her Account.  For periods beginning before
January 1, 2000, a Participant was permitted to make only one in-service
withdrawal during his or her lifetime.  The Administrator will establish uniform
and nondiscriminatory procedures for requesting, granting and processing in-
service withdrawals under this Section 6.6.1, which may include telephonic or
electronic procedures, as and to the extent permitted by applicable law or
regulation.

                                     -32-
<PAGE>

          6.6.2  An active Participant who has not reached age 59 1/2 may make a
withdrawal of the following portions of the Participant's Account Balance in the
order listed below:

          (a)  all or part of the After-Tax Contributions he or she made after
               March 31, 1986 and before January 1, 1987;

          (b)  all earnings or appreciation attributable to After-Tax
               Contributions he or she made after March 31, 1986 and before
               January 1, 1987;

          (c)  all or part of the After-Tax Contributions he or she made after
               December 31, 1986;

          (d)  all or part of his or her After-Tax Contributions made before
               April 1, 1982, or, if less, the amount in the Participant's
               After-Tax Contribution Account allocable to those contributions;

          (e)  any amount remaining in the Participant's After-Tax Contribution
               Account that is allocable to After-Tax Contributions made before
               April 1982;

          (f)  all the vested value of his or her Contingent Account;

          (g)  all earnings or appreciation attributable to the After-Tax
               Contributions he or she made after December 31, 1986;

          (h)  all of the current value of vested Company Contributions made as
               to After-Tax Contributions he or she made after December 31,
               1986.

For periods beginning on or after January 1, 2000, the above order should be
revised to move Subsection (f) after Subsection (g).  For periods beginning
before January 1, 2000, a Participant who made a withdrawal under Subsection
(d), (e), (f), (g) or (h) was suspended from making Pre-Tax Contributions from
the effective date of the withdrawal until the first day of the payroll period
coincident with or next following the first day of the seventh calendar month
after the withdrawal is effective.  The Administrator will establish uniform and
nondiscriminatory procedures for requesting, granting and processing in-service
withdrawals under this Section 6.6.2, which may include electronic or telephonic
procedures, as and to the extent permitted by applicable law or regulation.

          6.6.3  An active Participant may make a hardship withdrawal from his
or her Pre-Tax Contribution Account if he or she demonstrates to the
Administrator that the withdrawal is necessary to satisfy the Participant's
immediate and heavy financial need.  A hardship withdrawal cannot exceed the
total Pre-Tax Contributions made to the Plan on behalf of the Participant by the
date of the withdrawal, reduced by the amounts of any previous hardship or other
in-service withdrawals.  In addition, the minimum hardship withdrawal permitted
is $500,

                                     -33-
<PAGE>

or, if less, the total amount of Pre-Tax Contributions, made for the
Participant, minus any previous hardship or in-service withdrawals.

          (a)  A distribution is on account of an immediate and heavy financial
               need if it is for:

               (1)  medical expenses as described in Code Section 213(d)
                    incurred by the Participant, his spouse or dependents;

               (2)  costs directly related to the purchase of a principal
                    residence for the Participant (excluding mortgage payments);

               (3)  tuition payments, or related education expenses, for the
                    next 12 months of post-secondary education for the
                    Participant or the Participant's spouse or dependents;

               (4)  payments necessary to prevent the Participant's eviction
                    from his or her principal residence, or foreclosure on the
                    mortgage on the Participant's residence;

               (5)  expenses incurred for the funeral of a member of the
                    Participant's immediate family;

               (6)  legal expenses incurred by the Participant in obtaining a
                    divorce;

               (7)  expenses incurred by the Participant in remedying an
                    uninsured property loss;

               (8)  expenses incurred by the Participant in adopting or
                    attempting to adopt a child;

               (9)  emergency expenses of the Participant in personal
                    bankruptcy; or

               (10) other expenses deemed by the Administrator to constitute
                    hardships justifying a hardship withdrawal, and formally
                    adopted under rules of the Administrator as eligible for
                    hardship withdrawal.

          (b)  A withdrawal will be permitted only if the Participant certifies
               in writing to the Administrator that the "immediate and heavy
               financial need" cannot be met from other resources reasonably
               available to the Participant and the Participant further
               represents to the Administrator, in such manner and form as the
               Administrator may require, that the Participant's immediate and
               heavy financial need cannot be relieved:

                                     -34-
<PAGE>

               (1)  through reimbursement or compensation by insurance or
                    otherwise;

               (2)  by reasonable liquidation of the Participant's assets, to
                    the extent liquidation would not itself cause an immediate
                    and heavy financial need;

               (3)  by the Participant's ceasing to have Pre-Tax Contributions
                    made for him or her under the Plan; or

               (4)  by other distributions from plans maintained by a
                    Participating Employer or any other employer, or by
                    borrowing from commercial sources on reasonable commercial
                    terms.

               If the Participating Employer or the Administrator knows that the
               representation required by the preceding sentence would not be
               true, the hardship withdrawal request will not be granted.

          (c)  A hardship withdrawal under this Section 6.6.3 cannot exceed the
               amount required to relieve the financial need, including any
               amounts necessary to pay any federal, state, or local income
               taxes or penalties reasonably anticipated to result from the
               distribution.

          6.6.4  The Administrator will establish uniform and nondiscriminatory
procedures for requesting, granting and processing hardship withdrawals.

6.7  Loans

          6.7.1  An active Participant may submit an application to the
Administrator to borrow from his or her Account (on such uniform and
nondiscriminatory terms and conditions as the Administrator shall prescribe) an
amount, when added to the amount of any then outstanding loan, does not exceed
the lesser of:

          (a)  $50,000, reduced by the excess (if any) of the Participant's
               highest outstanding Plan loan balance during the one-year period
               ending on the day before the loan is made over the Participant's
               outstanding Plan loan balance on the day the loan is made; and

          (b)  50% of the Participant's Account as of the Valuation Date
               coincident with or immediately preceding the date the
               Administrator receives the application.

In calculating the Participant's loan limit, all loans from qualified plans of
the Company and all Affiliates will be aggregated.

                                     -35-
<PAGE>

          6.7.2  Each loan granted under the Plan will meet the following
requirements:

          (a)  it must be evidenced by a negotiable promissory note;

          (b)  the rate of interest payable on the unpaid balance of the loan
               will be reasonable;

          (c)  the amount of the loan must be at least $1,000;

          (d)  the loan, by its terms, must require repayment within five years;

          (e)  the loan will be secured by the Participant's interest in the
               Account Balance of his or her Account, but not to exceed 50% of
               such Account; and

          (f)  the loan must be repaid through payroll deduction, or, if the
               loan has been outstanding for at least three months, the
               Participant may make one payment by check or money order of the
               full amount of principal and interest then outstanding.

          6.7.3  If a Participant is granted a loan, a "Loan Account" will be
established for the Participant.  All Loan Accounts will be held by the Funding
Agent, as part of the Trust Fund.  The loan amount will be transferred from a
Participant's other Accounts according to uniform and nondiscriminatory ordering
rules adopted by the Administrator, and will be disbursed from the Loan Account.
The promissory note executed by the Participant will be deposited in his or her
Loan Account.

          6.7.4  Principal and interest payments of a loan will be credited
initially to the Loan Account of the Participant, and will be transferred as
soon as reasonably practicable thereafter to the other Accounts of the
Participant.  Any loss caused by nonpayment or other default on a loan
obligations will be borne solely by the Loan Account of the Participant.
Although a default will constitute a taxable event to the Participant,
necessitating certain reporting obligations on the Administrator's part,
notwithstanding any other provision of the Plan, the note evidencing a loan in
default will not be executed upon until the Participant experiences a
distributable event.  A Participant's loan repayments will, at his or her
request, be suspended during the time he or she is absent as a result of
qualifying military service (as determined under USERRA), as permitted under
Code Section 414(u)(4).

          6.7.5  A Participant may not have more than two loans outstanding at
any given time.  For periods beginning before January 1, 2000, a Participant
could not receive more than one Plan loan in any 12-month period, and could not
have more than two loans outstanding at any given time.

          6.7.6  Upon termination of employment, a Participant who has an
outstanding loan under the Plan must repay his or her loan in a lump sum or the
loan will be in default.

                                     -36-
<PAGE>

Notwithstanding the above, the Committee (or its delegatee) may, in its sole
discretion, allow terminated Participants to continue to repay loans under such
uniform and nondiscriminatory rules as the Committee (or its delegate)
determines, where the Participant has been terminated due to a transaction or a
permanent reduction in force.

          6.7.7  All fees and expenses incurred in connection with a loan
obligation of a Participant will be borne solely by the Participant's Account.

          6.7.8  The Administrator will establish uniform and nondiscriminatory
procedures for requesting, granting and processing Plan loans.

                                     -37-
<PAGE>

                                  ARTICLE VII

                                 Death Benefits
                                 --------------

7.1  Payment of Account Balance

          7.1.1  Subject to the provisions of Section 5.2, if a Participant dies
before payment of his or her Account Balance has begun, his or her Account
Balance will be paid to the Participant's Beneficiary in the form of benefit
chosen by the Beneficiary under Sections 6.2 and 6.3.  The Beneficiary of a
Participant who is married on the date of his or her death will be the
Participant's Surviving Spouse, unless the Participant has designated another
Beneficiary and the Surviving Spouse consented to the designation, both as
provided in Section 7.3.

7.2  Failure to Name a Beneficiary

          If a Participant fails to name a Beneficiary and dies before payment
of his or her Account Balance begins, or if no designated Beneficiary survives
the Participant, the Administrator will pay any amounts due after the
Participant's death to the Participant's surviving spouse or, if there is no
surviving spouse, to the Participant's surviving children, in equal shares.  If
the Participant leaves behind no surviving spouse or children, the Administrator
will pay any amounts then due to the Participant's estate.

7.3  Waiver of Spousal Beneficiary Rights

          7.3.1  A Participant may designate someone other than his or her
Surviving Spouse as his or her primary Beneficiary only if the designation or
election meets the requirements of this Section 7.3 outlined below.

          7.3.2  The Administrator will provide each Participant with a written
explanation of:

          (a)  the right of the Participant to name someone other than his or
               her Surviving Spouse as a Beneficiary;

          (b)  the right of the Participant's spouse to be named as the primary
               Beneficiary for all of the Participant's Account Balance and the
               effect of waiving that right; and

          (c)  the Participant's right to revoke a previous designation of
               someone other than the Surviving Spouse as a Beneficiary, and the
               effect of such a revocation.

          7.3.3  A designation of someone other than the Surviving Spouse as a
primary Beneficiary will be effective only if it is made in writing and
consented to by the Participant's spouse, with the spouse's consent witnessed by
a notary public or the Administrator,  Any

                                     -38-
<PAGE>

subsequent change of Beneficiary to an individual who is not the Participant's
Surviving Spouse must also be in writing and consented to by the Participant's
spouse, with the spouse's consent witnessed by a notary public or the
Administrator.  Spousal consent is not necessary if the Participant establishes
to the satisfaction of a Plan representative that the Participant does not have
a spouse, or that the Participant's spouse cannot be located.  Spousal consent
is also unnecessary if the Participant produces a court order to the effect that
the Participant is legally separated from his or her spouse or has been
abandoned by the spouse, within the meaning of the law of the Participant's
state of residence, unless a qualified domestic relations order requires
otherwise.  If the Participant's spouse is legally incompetent to give consent,
the spouse's legal guardian may give the spouse's consent, even if the legal
guardian is the Participant.  A spouse's consent will be valid only as to that
spouse, and an election deemed effective without the spouse's consent will be
valid only as to the spouse designated as to that election.  A Participant may
revoke a prior waiver of the 50% preretirement life annuity or a prior
designation of someone other than the Surviving Spouse as a primary Beneficiary
without the consent of his or her spouse, and may revoke such a waiver or
designation an unlimited number of times.

          7.3.4  A Participant's former spouse will be treated as the spouse or
Surviving Spouse only to the extent provided under a qualified domestic
relations order as described in Code Section 414(p).

                                     -39-
<PAGE>

                                  ARTICLE VIII

  Special Forms of Benefit and Special Death Benefit Provisions Applicable to
  ---------------------------------------------------------------------------
                        Certain Transferred Participants
                        --------------------------------

8.1   Applicability

          The provisions of this Article VIII apply, instead of Sections 6.3,
6.4, 7.1, 7.2 and 7.3, to the entire Account Balance of each Participant who
was:  (a) a participant in the FMC Corporation 401(k) Plan for Employees Covered
by a Collective Bargaining Agreement immediately before his or her collective
bargaining unit became covered under this Plan, and whose account balance in
that plan was transferred to this Plan; or (b) transferred to the Company as
part of its acquisition from Stein, Inc. or Frigoscandia Equipment Holding AB.
Sections 6.1, 6.2, 6.5, 6.6 and 6.7 continue to apply to the Account Balances of
Participants described in the preceding sentence, but this Article VIII does not
apply to any other Participant.

8.2   Forms of Benefit for Certain Transferred Participants

          8.2.1  The normal form of benefit for a Participant to whom this
Article VIII applies is the 50% Joint and Survivor-Ten Year Certain Annuity with
the Participant's spouse as the Beneficiary, if the Participant is married on
the Annuity Starting Date.  If the Participant is not married on the Annuity
Starting Date, the normal form of benefit is the Life and Ten Year Certain
Annuity.  If the Participant fails to make an election under Section 8.4, his or
her Account Balance will be paid in the normal form of benefit.  A Participant
covered by this Article VIII who is married on the Annuity Starting Date may
elect a benefit other than the normal form of benefit only if his or her spouse
consents to the election within the time frame and in the manner required by
Section 8.4.

          8.2.2  Subject to Sections 8.2.1 and 8.4, and except as otherwise
provided herein, a Participant covered by this Article VIII may elect to have
his or her benefit under this Plan paid in the form of a lump sum distribution
or a fixed dollar annuity purchased on his or her behalf.  A Plan annuity is a
fixed dollar annuity if it provides a stream of monthly payments that do not
vary in amount.

          8.2.3  If a Participant to whom this Article VIII applies elects to
have a fixed dollar annuity purchased on his or her behalf, he or she may select
any of forms of annuity described in this Section 8.2.3.

          (a)  Life and Ten Year Certain Annuity:  This form of annuity pays the
               Participant a fixed amount each month beginning with the month in
               which the Annuity Starting Date occurs and ending when the
               Participant dies.  If the Participant dies before 120 monthly
               payments have been made, payments will continue to the
               Participant's Beneficiary until 120 monthly payments have been
               made to the Participant and Beneficiary under the annuity.

                                     -40-
<PAGE>

          (b)  Joint and Survivor-Ten Year Certain Annuity: This form of annuity
               pays the Participant a fixed amount each month beginning with the
               month in which the Annuity Starting Date occurs and ending when
               the Participant dies.  If the Participant's Beneficiary survives
               the Participant, payments will continue to the Participant's
               primary Beneficiary until the Beneficiary dies. If the
               Participant and Beneficiary both die before 120 monthly payments
               have been made to the Participant and Beneficiary under the
               annuity, payments will continue to the Participant's contingent
               Beneficiary until 120 monthly payments in all have been made
               under the annuity.  The monthly payment payable to the primary or
               contingent Beneficiary before 120 payments have been made under
               the annuity equals the monthly payment made during the
               Participant's lifetime.  The monthly payment payable to the
               primary Beneficiary after 120 payments have been made under the
               annuity equals 100% or 50% of the monthly payment made during the
               Participant's lifetime, as specified in the Participant's
               election.  Both the primary and contingent Beneficiaries must be
               named at the time this annuity is elected.

          (c)  Period Certain Annuity:  This form of annuity pays the
               Participant a fixed amount each month beginning with the month in
               which the Annuity Starting Date occurs and ending when the
               specified number of monthly payments have been made to the
               Participant and, if he or she dies before receiving the specified
               number of payments, to the Participant's Beneficiary.  The
               Participant may specify 60, 120 or 180 monthly payments.  The
               Participant specifies the number of monthly payments and names
               his or her Beneficiary at the time he or she elects the annuity.

          (d)  Other:  This form of payment includes any other alternative form
               of distribution, including installment distributions, provided
               for by the Funding Agent.  Notwithstanding the foregoing, a
               Participant may not elect any form of distribution providing only
               for the payment of interest or income earned on his or her
               Accounts.

          8.2.4  An annuity under this Plan must provide that payments will be
made over a period no longer than the life of the Participant, the lives of the
Participant and his or her Beneficiary, the Participant's life expectancy or the
life expectancy of the Participant and his or her Beneficiary.  A Participant to
whom this Article VIII applies may not elect any form of annuity providing
monthly payments to a Beneficiary who is other than his or her spouse, unless
the amount distributed each year equals or exceeds the quotient obtained by
dividing the Participant's Account Balances by the divisor determined under
Department of Treasury Regulation Section 1.401(a)(9)-2.  Further, the amount of
the monthly payment made to a Beneficiary cannot under any circumstances be
larger than the amount of the monthly payment made to the Participant.

                                     -41-
<PAGE>

8.3  Change in Form, Timing or Medium of Benefit Payment for Certain Transferred
Participants

          Any former Employee who is a Participant to whom this Article VIII
applies and who has chosen to defer payment of his or her Account Balance may
request a change in the form, timing or medium in which his or her Account
Balances will be paid, so long as the revised election conforms to Sections 8.2
through 8.4.

8.4  Waiver of Normal Form of Benefit for Certain Transferred Participants

          8.4.1  The Account Balance of a Participant to whom this Article VIII
applies will be distributed in the normal form of benefit, regardless of what
form of benefit the Participant chooses, unless the Participant makes an
effective waiver under this Section 8.4 and, if the Participant is married on
the Annuity Starting Date, unless the Participant's spouse consents to the
Participant's choice of another form of benefit in the manner described in this
Section 8.4.  No sooner than 30, and no more than 90, days before the Annuity
Starting Date, the Administrator will provide the Participant with a written
explanation of:

          (a)  the terms and conditions of the normal form of benefit;

          (b)  the Participant's right to waive the normal form of benefit and
               the effect of waiving the normal form of benefit;

          (c)  the right of the Participant's spouse to consent or withhold his
               or her consent to the Participant's choice of another form of
               benefit; and

          (d)  the Participant's right to revoke a waiver of the normal form of
               benefit, and the effect of revoking the waiver.

A Participant may revoke his or waiver of the normal form of benefit at any time
before the payment begins, without his or her spouse's consent.  For purposes of
the previous sentence, if the Participant's Account Balance is to be paid in the
form of an annuity, payment will be deemed to begin when the annuity has been
purchased.

          8.4.2  A Participant's waiver of the normal form of benefit will be
effective only if:

          (a)  the Participant's spouse consents in writing to the waiver;

          (b)  the waiver includes an election of a form of benefit that cannot
               be changed without the spouse's consent, or the spouse's consent
               specifically permits the Participant to make other elections of
               forms of benefit;

          (c)  the spouse's consent acknowledges the effect of the waiver; and

                                     -42-
<PAGE>

          (d)  the spouse's consent is witnessed by a notary public or the
               Administrator.

Spousal consent to the Participant's waiver of the normal form of benefit is not
necessary if the Participant establishes to the satisfaction of a Plan
representative that the Participant does not have a spouse, or that the
Participant's spouse cannot be located.  Spousal consent is also unnecessary if
the Participant produces a court order to the effect that the Participant is
legally separated from his or her spouse or has been abandoned by the spouse,
within the meaning of the law of the Participant's state of residence, unless a
qualified domestic relations order requires otherwise.  If the Participant's
spouse is legally incompetent to give consent, the spouse's legal guardian may
give the spouse's consent, even if the legal guardian is the Participant.  A
spouse's consent will be valid only as to that spouse, and an election deemed
effective without the spouse's consent will be valid only as to the spouse
designated as to that election.

          8.4.3  Notwithstanding the foregoing, the first payment of the
Participant's Account Balance may be made as early as seven days after the
Participant makes an affirmative election to receive his or her Account Balance
in a particular form of payment, even if that means the Participant has fewer
than 30 days to decide on a form of payment, if the Annuity Starting Date is
after the date of the Participant's affirmative election and, if the Participant
is married on the Annuity Starting Date, the Participant's spouse consents to
the form of payment in the manner required by Section 8.4.2.

          8.4.4  If the Administrator believes that any spouse might, under the
law of any jurisdiction, have any interest in any benefit that might become
payable to a Participant, the Administrator may, as a condition precedent to the
Participant's making any distribution or withdrawal election, require a written
release or releases, or other documents that it believes are necessary,
desirable, or appropriate to prevent or avoid any conflict or multiplicity of
claims regarding payment of any Plan benefits.

8.5  Payment of Account Balances of Certain Transferred Participants Who Die
Before Payment Begins

          8.5.1  If a Participant to whom this Article VIII applies dies before
payment of his or her Account Balance has begun, his or her Account Balance will
be paid to the Participant's Beneficiary in one lump sum within 90 days after
the Administrator receives notice of the Participant's death.  The Beneficiary
of a Participant to whom this Article VIII applies, and who is married on the
date of his or her death, will be the Participant's Surviving Spouse, unless the
Participant has designated another Beneficiary and the Surviving Spouse
consented to the designation, both as provided in Section 8.7.

          8.5.2  If a Participant to whom this Article VIII applies dies before
payment of his or her Account Balance has begun, 50% of the Participant's
Account Balance will be paid to his or her Surviving Spouse in the form of a
life annuity, and the remainder will be paid to any Beneficiary chosen by the
Participant (including the Participant's Surviving Spouse).

                                     -43-
<PAGE>

          (a)  The Participant may choose a form of benefit other than the life
               annuity for the 50% of his or her Account Balance that will be
               paid to the Surviving Spouse, so long as the Participant's
               election meets the requirements of Section 8.7 and his or her
               Spouse consents in the time and manner required by Section 8.7.
               The Participant may also designate a Beneficiary other than his
               or her Surviving Spouse as the primary Beneficiary to receive
               some or all of his or her Account Balance, so long as the
               Surviving Spouse consents to the designation in the time and
               manner required by Section 8.7.

          (b)  Unless the Participant has chosen a form of benefit for his or
               her Beneficiary or Surviving Spouse, the Beneficiary or Surviving
               Spouse may choose to have any amounts payable to him or her paid
               in any of the forms of benefit described under Section 8.2 other
               than the Joint and Survivor-Ten Year Certain Annuity.  Payments
               to a Surviving Spouse must begin no later than the April 1
               following the year in which the Participant would have reached
               age 70-1/2, and payments to a Beneficiary who is not the
               Surviving Spouse must begin no later than one year after the
               Participant's death.  Amounts payable to a Beneficiary or
               Surviving Spouse must be made within five years after the
               Participant's death, or over a period not exceeding the life or
               life expectancy of the Surviving Spouse.  A Participant's
               Surviving Spouse who chooses to waive his or her right to receive
               50% of the Participant's Account Balances in the form of a life
               annuity must waive the right in the time and manner described in
               Section 8.7.

          (c)  Notwithstanding Subsection (b) above, if at the time the
               Participant dies his or her Account Balance does not exceed
               $5,000 (or, for Plan Years beginning before January 1, 1998,
               $3,500) the Account will be distributed in the form of a single
               sum payment.  In addition, if more than one Beneficiary is
               concurrently entitled to receive annuity payments, or if the
               monthly annuity payment to any Beneficiary would be less than $50
               (or another amount established from time to time by the
               Administrator), the Administrator may choose to pay the value of
               the annuity in a single sum, so long as the single sum would not
               exceed the dollar limit of the previous sentence.

8.6  Failure to Name a Beneficiary for Certain Transferred Participants

          If a Participant to whom this Article VIII applies fails to name a
Beneficiary and dies before payment of his or her Account Balance begins, or if
no designated Beneficiary survives the Participant, the Administrator will pay
any amounts due after the Participant's death to the Participant's Surviving
Spouse or, if there is no Surviving Spouse, to the Participant's

                                     -44-
<PAGE>

surviving children in equal shares.  If the Participant leaves behind no
Surviving Spouse or surviving children, the Administrator will pay any amounts
then due to the Participant's estate.

8.7  Waiver of Preretirement Survivor Annuity for Certain Transferred
Participants

          8.7.1  A Participant to whom this Article VIII applies may designate
someone other than his or her Surviving Spouse as a primary Beneficiary to
receive any portion of his or her Account Balance payable after his or her
death, or the Participant or his or her Surviving Spouse may choose a form of
benefit other than the life annuity for the 50% of the Account Balances that
will automatically be paid to the Surviving Spouse as a life annuity only if the
designation or election meets the requirements of this Section 8.7 outlined
below.

          8.7.2  The Administrator will provide each Participant with a written
explanation of:

          (a)  the 50% preretirement life annuity payable to the Participant's
               Surviving Spouse;

          (b)  the Participant's right to waive that annuity and the effect of
               such a waiver;

          (c)  the right of the Participant's spouse to the 50% preretirement
               life annuity and the effect of waiving that right; and

          (d)  the Participant's right to revoke a previous waiver and the
               effect of  such a revocation;

          (e)  the right of the Participant to name someone other than his or
               her Surviving Spouse as a Beneficiary;

          (f)  the right of the Participant's spouse to be named as the primary
               Beneficiary for all of the Participant's Account Balance and the
               effect of waiving that right; and

          (g)  the Participant's right to revoke a previous designation of
               someone other than the Surviving Spouse as a Beneficiary, and the
               effect of such a revocation.

The Administrator will provide the above explanation to the Participant during
the period that begins on the first day of the Plan Year  in which the
Participant reaches age 32 and ends on the last day of the Plan Year in which
the Participant reaches age 34.  If a Participant first becomes a Participant
after the start of that period, the Administrator will provide the explanation
no later than the end of the second Plan Year after the Participant first
becomes a Participant.

                                     -45-
<PAGE>

          8.7.3  A designation of someone other than the Surviving Spouse as a
primary Beneficiary, or the election of a form of benefit other than the 50%
preretirement life annuity will be effective only if it is made in writing and
consented to by the Participant's spouse, with the spouse's consent witnessed by
a notary public or the Administrator. Moreover, the election must be made during
the period that begins on the first day of the Plan Year in which the
Participant reaches age 35 (or, if earlier, the date the Participant separates
from service) and ends on the date of the Participant's death. Any subsequent
change of Beneficiary to an individual who is not the Participant's Surviving
Spouse must also be in writing and consented to by the Participant's spouse,
with the spouse's consent witnessed by a notary public or the Administrator.
Spousal consent is not necessary if the Participant establishes to the
satisfaction of a Plan representative that the Participant does not have a
spouse, or that the Participant's spouse cannot be located. Spousal consent is
also unnecessary if the Participant produces a court order to the effect that
the Participant is legally separated from his or her spouse or has been
abandoned by the spouse, within the meaning of the law of the Participant's
state of residence, unless a qualified domestic relations order requires
otherwise. If the Participant's spouse is legally incompetent to give consent,
the spouse's legal guardian may give the spouse's consent, even if the legal
guardian is the Participant. A spouse's consent will be valid only as to that
spouse, and an election deemed effective without the spouse's consent will be
valid only as to the spouse designated as to that election. A Participant may
revoke a prior waiver of the 50% preretirement life annuity or a prior
designation of someone other than the Surviving Spouse as a primary Beneficiary
without the consent of his or her spouse, and may revoke such a waiver or
designation an unlimited number of times.

          8.7.4  A Participant's former spouse will be treated as the spouse or
Surviving Spouse only to the extent provided under a qualified domestic
relations order as described in Code Section 414(p).

                                     -46-
<PAGE>

                                  ARTICLE IX

                                  Fiduciaries
                                  -----------

9.1  Named Fiduciaries
     -----------------

          9.1.1  The Company is the Plan sponsor and a "named fiduciary," as
that term is defined in ERISA Section 402(a)(2), with respect to control over
and management of the Plan's assets only to the extent that it (a) appoints the
members of the Committee which administers the Plan at the Administrator's
direction; (b) delegates its authorities and duties as "plan administrator" (as
defined under ERISA) to the Committee; and (c) continually monitors the
performance of the Committee.

          9.1.2  The Company as Administrator, and the Committee, which
administers the Plan at the Administrator's direction, are "named Fiduciaries"
of the Plan, as that term is defined in ERISA Section 402(a)(2), with authority
to control and manage the operation and administration of the Plan. The
Administrator is also the "administrator" and "plan administrator" of the Plan,
as those terms are defined in ERISA Section 3(16)(A) and Code Section 414(g),
respectively.

          9.1.3  The Trustee is a "named fiduciary" of the Plan, as that term is
defined in ERISA Section 402(a)(2), with authority to manage and control all
Trust assets, except to the extent that authority is allocated under the Plan
and Trust to the Administrator or is delegated to an Investment Manager, an
insurance company, or the Plan Participants at the direction of the
Administrator or the Committee.

          9.1.3  The Company, Committee, Administrator and Trustee are the only
named fiduciaries of the Plan.

9.2  Employment of Advisers
     ----------------------

          A named fiduciary, and any fiduciary appointed by a named fiduciary,
may employ one or more persons to render advice regarding any of the named
fiduciary's or fiduciary's responsibilities under the Plan.

9.3  Multiple Fiduciary Capacities
     -----------------------------

          Any named fiduciary and any other fiduciary may serve in more than one
fiduciary capacity with respect to the Plan.

9.4  Payment of Expenses
     -------------------

          All Plan expenses, including expenses of the Administrator, the
Committee, the Trustee, any Investment Manager and any insurance company, will
be paid by the Trust Fund, unless a Participating Employer elects to pay some or
all of those expenses. All or a portion of

                                     -47-
<PAGE>

the recordkeeping costs or charges imposed or incurred (if any) in maintaining
the Plan will be charged on a per capita basis to the Account of each
Participant. In addition, all charges imposed or incurred (if any) for an
Investment Fund or a transfer between Investment Funds will be charged to the
Account of the Participant directing that investment. In addition, all charges
imposed or incurred for a Participant loan will be charged to the Account of the
Participant requesting the loan.

9.5  Indemnification
     ---------------

          To the extent not prohibited by state or federal law, each
Participating Employer agrees to, and will indemnify and save harmless the
Administrator, any past, present, additional or replacement member of the
Committee, and any other Employee, officer or director of that Participating
Employer, from all claims for liability, loss, damage (including payment of
expenses to defend against any such claim) fees, fines, taxes, interest,
penalties and expenses which result from any exercise or failure to exercise any
responsibilities with respect to the Plan, other than willful misconduct or
willful failure to act.

                                     -48-
<PAGE>

                                   ARTICLE X

                              Plan Administration
                              -------------------

10.1  Powers, Duties and Responsibilities of the Administrator and the Committee
      --------------------------------------------------------------------------

          10.1.1  The Administrator and the Committee have full discretion and
power to construe the Plan and to determine all questions of fact or
interpretation that may arise under it. An interpretation of the Plan or
determination of questions of fact regarding the Plan by the Administrator or
Committee will be conclusively binding on all persons interested in the Plan.

          10.1.2  The Administrator and the Committee have the power to
promulgate such rules and procedures, to maintain or cause to be maintained such
records and to issue such forms as they deem necessary or proper to administer
the Plan.

          10.1.3  Subject to the terms of the Plan, the Administrator and/or the
Committee will determine the time and manner in which all elections authorized
by the Plan must be made or revoked.

          10.1.4  The Administrator and the Committee have all the rights,
powers, duties and obligations granted or imposed upon them elsewhere in the
Plan.

          10.1.5  The Administrator and the Committee have the power to do all
other acts in the judgment of the Administrator or Committee necessary or
desirable for the proper and advantageous administration of the Plan.

          10.1.6  The Administrator and the Committee will exercise all of their
responsibilities in a uniform and nondiscriminatory manner.

10.2  Investment Powers, Duties and Responsibilities of the Administrator and
-----------------------------------------------------------------------------
      the Committee
      -------------

          10.2.1  The Administrator and the Committee have the power to make and
deal with any investment of the Trust in any manner it deems advisable and which
is consistent with the Plan. Notwithstanding the foregoing, the power to make
and deal with Trust investments does not extend to any assets subject to the
direction and control of Plan Participants as described in Section 10.3.2.

          10.2.2  The Administrator and/or the Committee will establish and
carry out a funding policy and method consistent with the objectives of the Plan
and the requirements of ERISA.

          10.2.3  The Administrator and the Committee have the power to direct
that assets of the Trust be held in a master trust consisting of assets of plans
maintained by a Participating Employer which are qualified under Code Section
401(a).

                                     -49-
<PAGE>

          10.2.4  The Administrator and the Committee have the power to select
Annuity Contracts.

10.3  Investment of Accounts
      ----------------------

          10.3.1  The Administrator or, as delegated by the Administrator, the
Committee, may establish such different Investment Funds as it from time to time
determines to be necessary or advisable for the investment of Participants'
Accounts, including Investment Funds pursuant to which Accounts can be invested
in "qualifying employer securities," as defined in Part 4 of Title I of ERISA.
Each Investment Fund will have the investment objective or objectives
established by the Administrator or Committee. Except to the extent investment
responsibility is expressly reserved in another person, the Administrator or the
Committee, in its sole discretion, will determine what percentage of the Plan
assets is to be invested in qualifying employer securities. The percentage
designated by the Administrator can exceed ten percent of the Plan's assets, up
to a maximum of all of the Plan's assets.

          10.3.2  Except as provided in Section 10.3.3, the Administrator or, as
delegated by the Administrator, the Committee, may in its sole discretion permit
Participants to determine the portion of their Accounts that will be invested in
each Investment Fund. The frequency with which a Participant may change his or
her investment election concerning future Pre-Tax Contributions or his or her
existing Account will be governed by uniform and nondiscriminatory rules
established by the Administrator or the Committee. To the extent permitted under
ERISA, effective June 1, 1997, the Plan is intended to comply with and be
governed by Section 404(c) of ERISA.

          10.3.3  Notwithstanding Section 10.3.2, Company Contributions must be
invested in the Stock Fund, and may not be invested in any other Investment
Fund. Also notwithstanding Section 10.3.2, a Participant may transfer amounts
out of the Stock Fund only if he or she is at least 55 years old, and no more
frequently than once per year. Effective October 1, 1999, a Participant may
transfer Basic Contributions out of the Stock Fund only if he or she is at least
50 years old, and no more frequently than once per year. Also effective October
1, 1999, a Participant may transfer Supplemental Contributions and Rollover
Contributions out of the Stock Fund as frequently as he or she may transfer
those contributions out of any other Investment Fund. Prior to June 1, 1997, a
Participant was not permitted to transfer amounts out of any Investment Funds
until the Participant reached age 55. Prior to June 1, 1993, Rollover
Contributions were required to be invested in the Fixed Income Fund.

10.4  Valuation of Accounts
      ---------------------

          A Participant's Accounts will be revalued at fair market value on each
Valuation Date. On each Valuation Date, the earnings and losses of the Trust
will be allocated to each Participant's Account in the ratio that his or her
total Account Balance bears to all Account Balances. Notwithstanding the
foregoing, if the Administrator or Committee establishes Investment Funds
pursuant to Section 10.3, the earnings and losses of the particular Investment

                                     -50-
<PAGE>

Funds will be allocated in the ratio that the portion of each Participant's
Account Balance invested in a particular Investment Fund bears to the total
amount invested in that fund. If and to the extent the rules of any Investment
Fund require a different method of valuation, those rules will be followed.

10.5  The Insurance Company
      ---------------------

          The Administrator or the Committee may appoint one or more insurance
companies as Funding Agents, and may purchase insurance contracts, Annuity
Contracts or policies from one or more insurance companies with Plan assets.
Neither the Administrator nor the Committee, nor any other Plan fiduciary will
be liable for any act or omission of an insurance company with respect to any
duties delegated to any insurance company.

10.6  Compensation
      ------------

          Each person providing services to the Plan will be paid such
reasonable compensation as is from time to time agreed upon between the Company
and that service provider, and will have his, her or its expenses reimbursed.
Notwithstanding the foregoing, no person who is an Employee will be paid any
compensation for his or her services to the Plan.

10.7  Delegation of Responsibility
      ----------------------------

          The Administrator and the Committee may designate by written
instrument one or more actuaries, accountants or consultants as fiduciaries to
carry out, where appropriate, their administrative responsibilities, including
their fiduciary duties. The Committee may from time to time allocate or delegate
to any subcommittee, member of the Committee and others, not necessarily
employees of the Company, any of its duties relative to compliance with ERISA,
administration of the Plan and other related matters, including those involving
the exercise of discretion. The Company's duties and responsibilities under the
Plan will be carried out by its directors, officers and employees, acting on
behalf of and in the name of the Company in their capacities as directors,
officers and employees, and not as individual fiduciaries. No director, officer
or employee of the Company will be a fiduciary with respect to the Plan unless
he or she is specifically so designated and expressly accepts such designation.

10.8  Committee Members
      -----------------

          The Committee will consist of at least three people, who need not be
directors, and will be appointed by the Chief Executive Officer of the Company.
Any Committee member may resign and the Chief Executive Officer may remove any
Committee member, with or without cause, at any time. A majority of the members
of the Committee will constitute a quorum for the transaction of business, and
the act of a majority of the Committee members at a meeting at which a quorum is
present will be an act of the Committee. The Committee can act by written
consent signed by all of its members. Any member of the Committee who is an
Employee cannot receive compensation for his or her services for the Committee.
No

                                     -51-
<PAGE>

Committee member will be entitled to act on or decide any matter relating solely
to his or her status as a Participant.

                                     -52-
<PAGE>

                                  ARTICLE XI

                            Appointment of Trustee
                            ----------------------

          The Committee or its authorized delegatee will appoint the Trustee and
either may remove it. The Trustee accepts its appointment by executing the trust
agreement. A Trustee will be subject to direction by the Committee or its
authorized delegatee or, to the extent specified by the Company, by an
Investment Manager or other Funding Agent, and will have the degree of
discretion to manage and control Plan assets specified in the trust agreement.
Neither the Administrator nor the Committee, nor any other Plan fiduciary will
be liable for any act or omission to act of a Trustee, as to duties delegated to
the Trustee. Any Trustee appointed under this Article XI will be an institution.

                                     -53-
<PAGE>

                                  ARTICLE XII

                         Plan Amendment or Termination
                         -----------------------------

12.1  Plan Amendment or Termination
      -----------------------------

          The Company may amend, modify or terminate this Plan at any time by
resolution of its Board or by resolution of or other action recorded in the
minutes of the Administrator or the Committee.  Execution and delivery by the
Chairman of the Board, the President, any Vice President of the Company or the
Committee of an amendment to the Plan is conclusive evidence of the amendment,
modification or termination.

12.2  Limitations on Plan Amendment
      -----------------------------

          No Plan amendment can:

          (a)  authorize any part of the Trust Fund to be used for, or diverted
               to, purposes other than the exclusive benefit of Participants or
               their Beneficiaries;

          (b)  decrease the accrued benefits of any Participant or his or her
               Beneficiary under the Plan; or

          (c)  except to the extent permitted by law, eliminate or reduce an
               early retirement benefit or retirement-type subsidy (as defined
               in Code Section 411) or an optional form of benefit with respect
               to service prior to the date the amendment is adopted or
               effective, whichever is later.

12.3  Right to Terminate Plan or Discontinue Contributions
      ----------------------------------------------------

          The Participating Employers intend and expect to continue this Plan in
effect and to make the contributions provided for in this Plan.  However, the
Company reserves the right to terminate the Plan at any time in the manner set
forth in Section 12.1.  In addition, each Participating Employer reserves the
right to completely discontinue contributions to the Plan for its Employees at
any time.  Upon termination of the Plan, each affected Participant's Account
Balance will be vested and nonforfeitable and the Trust will continue until the
Trust Fund has been distributed.

12.4  Bankruptcy
      ----------

          If the Company is ever judicially declared bankrupt or insolvent, and
no provisions to continue the Plan are made in the bankruptcy or insolvency
proceeding, the Plan will to the extent permissible under federal bankruptcy
law, be completely terminated.

                                     -54-
<PAGE>

                                  ARTICLE XIII

                            Miscellaneous Provisions
                            ------------------------

13.1  Subsequent Changes
      ------------------

          All benefits to which any Participant, Surviving Spouse or Beneficiary
may be entitled under this Plan will be determined under the Plan as in effect
when the Participant ceases to be an Eligible Employee, and will not be affected
by any subsequent change in the provisions of the Plan, unless either the
Participant again becomes an Eligible Employee or the subsequent change
expressly applies to the Participant.

13.2  Merger or Transfer of Assets
      ----------------------------

          13.2.1  Neither the merger or consolidation of a Participating
Employer with any other person, nor the transfer of the assets of a
Participating Employer to any other person, nor the merger of the Plan with any
other plan will constitute a termination of the Plan.

          13.2.2  The Plan may not merge or consolidate with, or transfer any
assets or liabilities to, any other plan, unless each Participant would (if the
Plan then terminated) receive a benefit immediately after the merger,
consolidation or transfer which is equal to or greater than the benefit he or
she would have been entitled to receive immediately before the merger,
consolidation or transfer (if the Plan had then terminated).

13.3  Benefits Not Assignable
      -----------------------

          13.3.1  A Participant's Account Balance may not be assigned or
alienated either voluntarily or involuntarily.

          13.3.2  Notwithstanding the foregoing, a Participant may pledge his or
her Pre-Tax Account as security for a loan under Section 6.7. In addition, the
Administrator or Committee will comply with the terms of any qualified domestic
relations order, as defined in Code Section 414(p). Notwithstanding any other
provision of the Plan, the Funding Agent has all powers that would otherwise be
assigned to the Administrator, regarding the interpretation of and compliance
with qualified domestic relations orders, including the power make and enforce
rules regarding segregations of or holds on a Participant's Account to comply
with a qualified domestic relations order, or when a domestic relations order is
reasonably expected, or is under examination of its status.

          13.3.3  In addition, effective August 5, 1997, the prohibition of
Section 13.3.1 will not apply to any offset of a Participant's Account Balance
against an amount the Participant is ordered or required to pay to the Plan
under a judgment, order, decree or settlement agreement that meets the
requirements of this Section 13.3.3. The requirement to pay must arise under a
judgment of conviction for a crime involving the Plan, under a civil judgment
(including a

                                     -55-
<PAGE>

consent order or decree) entered by a court in an action brought in connection
with a violation (or alleged violation) of part 4 of subtitle B of title I of
ERISA, or pursuant to a settlement agreement between the Secretary of Labor and
the Participant in connection with a violation (or alleged violation) of that
part 4. In addition, the judgment, order, decree or settlement agreement must
expressly provide for the offset of all or part of the amount that must be paid
to the Plan against the Participant's Account Balance.

13.4  Exclusive Benefit of Participants
      ---------------------------------

          Notwithstanding any other provision of the Plan, no part of the Trust
Fund must ever be used for, or diverted to, any purpose other than the exclusive
providing benefits to Participants and their Beneficiaries and defraying the
reasonable expenses of the Plan, except that, upon the direction of the
Administrator:

          (a)  any contribution made by a Participating Employer by a mistake of
               fact will be returned within one year after payment of the
               contribution;

          (b)  any contribution made by a Participating Employer that was
               conditioned upon its deductibility shall be returned to the
               extent disallowed as a deduction under Code Section 404 within
               one year after the deduction is disallowed; and

          (c)  any contribution that was initially conditioned on the Plan's
               satisfying the requirements of Code Section 401(a) will be
               returned to the Participating Employer who made it, if the Plan
               is initially determined not to satisfy the requirements of Code
               Section 401(a).

          Any amount a Participating Employer seeks to recover under paragraph
(a) or (b) will be reduced by the amount of any losses attributable to it, but
will not be increased by the amount of any earnings attributable to it.

13.5  Benefits Payable to Minors, Incompetents and Others
      ---------------------------------------------------

          If any benefit is payable to a minor, an incompetent, or a person
otherwise under a legal disability, or to a person the Administrator reasonably
believes to be physically or mentally incapable of handling and disposing of his
or her property, whether because of his or her advanced age, illness, or other
physical or mental impairment, the Administrator has the power to apply all or
any part of the benefit directly to the care, comfort, maintenance, support,
education, or use of the person, or to pay all or any part of the benefit to the
person's parent, guardian, committee, conservator, or other legal
representative, wherever appointed, to the individual with whom the person is
living or to any other individual or entity having the care and control of the
person.  The Plan, the Administrator and any other Plan fiduciary will have
fully discharged their responsibilities to the Participant, Surviving Spouse or
Beneficiary entitled to a payment by making payment under the preceding
sentence.

                                     -56-
<PAGE>

13.6  Plan Not A Contract of Employment
      ---------------------------------

          The Plan is not a contract of Employment, and the terms of Employment
of any Employee will not be affected in any way by the Plan or any related
instruments, except as specifically provided in the Plan or related instruments.

13.7  Source of Benefits
      ------------------

          Plan benefits will be paid or provided for solely from the Trust or
applicable insurance or Annuity Contracts, and the Participating Employers
assume no liability for Plan benefits.

13.8  Proof of Age and Marriage
      -------------------------

          Participants and Beneficiaries must furnish proof of age and marital
status satisfactory to the Administrator or Committee when and if the
Administrator or Committee reasonably requests it. The Administrator or
Committee may delay the payment of any benefits under the Plan until all
pertinent information regarding age and marital status has been presented to it,
and then, if appropriate, make payment retroactively.

13.9  Controlling Law
      ---------------

          The Plan is intended to qualify under Code Section 401(a) and to
comply with ERISA, and its terms will be interpreted accordingly. If any Plan
provision is subject to more than one construction, the ambiguity will be
resolved in favor of the interpretation or construction consistent with that
intent. Similarly, if there is a conflict between any Plan provisions, or
between any Plan provision and any Plan administrative form submitted to the
Administrator, the Plan provisions necessary to retain qualified status under
Code Section 401(a) will govern. Otherwise, to the extent not preempted by ERISA
or as expressly provided herein, the laws of the State of Illinois (other than
its conflict of laws provisions) will control the interpretation and performance
of the Plan.

13.10  Income Tax Withholding
       ----------------------

          The Administrator or Committee may direct that any amounts necessary
to comply with applicable employment tax law be withheld from any payment due
under this Plan.

13.11   Claims Procedure
        ----------------

          13.11.1  Any application for benefits under the Plan and all inquiries
concerning the Plan shall be submitted to the Company at such address as may be
announced to Participants from time to time. Applications for benefits shall be
in writing on the form prescribed by the Company and shall be signed by the
Participant or, in the case of a benefit payable after the death of the
Participant, by the Participant's Surviving Spouse or Beneficiary, as the case
may be.

                                     -57-
<PAGE>

          13.11.2  The Company shall give written notice of its decision on any
application to the applicant within 90 days. If special circumstances require a
longer period of time the Company shall so notify the applicant within 90 days,
and give written notice of its decision to the applicant within 180 days after
receiving the application. In the event any application for benefits is denied
in whole or in part, the Company shall notify the applicant in writing of the
right to a review of the denial. Such written notice shall set forth, in a
manner calculated to be understood by the applicant, specific reasons for the
denial, specific references to the Plan provisions on which the denial is based,
a description of any information or material necessary to perfect the
application, an explanation of why such material is necessary and an explanation
of the Plan's review procedure.

          13.11.3  The Company shall appoint a "Review Panel," which shall
consist of three or more individuals who may (but need not) be employees of the
Company. The Review Panel shall be the named fiduciary which has the authority
to act with respect to any appeal from a denial of benefits under the Plan.

          13.11.4  Any person (or his authorized representative) whose
application for benefits is denied in whole or in part may appeal the denial by
submitting to the Review Panel a request for a review of the application within
60 days after receiving written notice of the denial. The Company shall give the
applicant or such representative an opportunity to review, by written request,
pertinent materials (other than legally privileged documents) in preparing such
request for review. The request for review shall be in writing and addressed as
follows: "Review Panel of the Employee Welfare Benefits Plan Committee, 200 East
Randolph Drive, Chicago, Illinois 60601." The request for review shall set forth
all of the grounds on which it is based, all facts in support of the request and
any other matters which the applicant deems pertinent. The Review Panel may
require the applicant to submit such additional facts, documents or other
material as it may deem necessary or appropriate in making its review.

          13.11.5  The Review Panel shall act upon each request for review
within 60 days after receipt thereof. If special circumstances require a longer
period of time the Review Panel shall so notify the applicant within 60 days,
and give written notice of its decision to the applicant within 120 days after
receiving the request for review. The Review Panel shall give notice of its
decision to the Company and to the applicant in writing. In the event the Review
Panel confirms the denial of the application for benefits in whole or in part,
such notice shall set forth in a manner calculated to be understood by the
applicant, the specific reasons for such denial and specific references to the
Plan provisions on which the decision is based.

          13.11.6  The Review Panel shall establish such rules and procedures,
consistent with ERISA and the Plan, as it may deem necessary or appropriate in
carrying out its responsibilities under this Section 13.11.

          13.11.7  No legal or equitable action for benefits under the Plan
shall be brought unless and until the claimant (a) has submitted a written
application for benefits in accordance with Section 13.10.1, (b) has been
notified by the Company that the application is

                                     -58-
<PAGE>

denied, (c) has filed a written request for a review of the application in
accordance with Section 13.10.4 and (d) has been notified in writing that the
Review Panel has affirmed the denial of the application; provided that legal
action may be brought after the Review Panel has failed to take any action on
the claim within the time prescribed in Section 13.11.5. A claimant may not
bring an action for benefits in accordance with this Section 13.11.7 later than
90 days after the Review Panel denies the claimant's application for benefits.

13.12  Participation in the Plan by An Affiliate
       -----------------------------------------

          13.12.1  With the consent of the Board, any Affiliate, by appropriate
action of its board of directors, a general partner or the sole proprietor, as
the case may be, may adopt the Plan. Each Affiliate will determine the classes
of its Employees that will be Eligible Employees and the amount of its
contribution to the Plan on behalf of its Eligible Employees.

          13.12.2  With the consent of the Board, a Participating Employer, by
appropriate action, may terminate its participation in the Plan.

          13.12.3  With the consent of the Board, a Participating Employer, by
appropriate action, may withdraw from the Plan and the Trust. A Participating
Employer's withdrawal will be deemed to be an adoption by that Participating
Employer of a plan and trust identical to the Plan and the Trust, except that
all references to the Company will be deemed to refer to that Participating
Employer. At such time and in such manner as the Administrator directs, the
assets of the Trust allocable to Employees of the Participating Employer will be
transferred to the trust deemed adopted by the Participating Employer.

          13.12.4  A Participating Employer will have no power with respect to
the Plan except as specifically provided herein.

13.13  Action by Participating Employers
       ---------------------------------

          Any action required to be taken by the Company pursuant to any Plan
provisions will be evidenced in the manner set forth in Section 12.1. Any action
required to be taken by a Participating Employer will be evidenced by a
resolution of the Participating Employer's board of directors (or an authorized
committee of that board). Participating Employer action may also be evidenced by
a written instrument executed by any person or persons authorized to take the
action by the Participating Employer's board of directors, any authorized
committee of that board, or the stockholders. A copy of any written instrument
evidencing the action by the Company or Participating Employer must be delivered
to the secretary or assistant secretary of the Company or Participating
Employer.

13.14  Dividends
       ---------

          Any dividends credited to a group Annuity Contract between the
Participating Employer and the Funding Agent will be used to provide additional
benefits under the Plan.

                                     -59-
<PAGE>

                                  ARTICLE XIV

                              Top Heavy Provisions
                              --------------------

14.1  Top Heavy Definitions
      ---------------------

          For purposes of this Article XIV and any amendments to it, the terms
listed in this Section 14.1 have the meanings ascribed to them below.

          14.1.1  Aggregate Employer Contributions means the sum of all Company
Contributions and Forfeitures allocated under this Plan for a Participant, and
all employer contributions and forfeitures allocated for the Participant to all
Related Defined Contributions in the Aggregation group.

          14.1.2  Aggregation Group means the group of plans in a Mandatory
Aggregation Group, if any, that includes the Plan, unless including additional
Related Plans in the group would prevent the Plan for being a Top Heavy Plan, in
which case Aggregation Group means the group of plans in a Permissive
Aggregation Group, if any, that includes the Plan.

          14.1.3  Determination Date means, for a Plan Year, the last day of the
preceding Plan Year. If the Plan is part of an Aggregation Group, the
Determination Date for each other plan will be, for any Plan Year, the
Determination Date for that other plan that falls in the same calendar year as
the Determination Date for the Plan.

          14.1.4  Key Employee means an employee described in Code Section
416(i)(1) and the regulations promulgated thereunder. Generally, a Key Employee
is an Employee or former Employee who, at any time during the Plan Year
containing the Determination Date or any of the four preceding Plan Years, is:

          (a)  an officer of the Company or an Affiliate with annual
               Compensation greater than 50% of the amount in effect under Code
               Section 415(b)(1)(A);

          (b)  one of the ten Employees of the Company and all Affiliates owning
               (or considered to own within the meaning of Code Section 318) the
               largest interests in any of the Company and the Affiliates, but
               only if the Employee has annual Compensation greater than the
               limitation in effect under Code Section 415(c)(1)(A);

          (c)  a five percent owner of the Company or an Affiliate; or

          (d)  a one percent owner of the Company or an Affiliate with annual
               Compensation from the Company and all Affiliates of more than
               $150,000.

                                     -60-
<PAGE>

For purposes of determining who is a Key Employee, the Plan's definition of
Compensation will be applied by taking into account amounts paid by Affiliates
who are not Participating Employers, as well as amounts paid by Participating
Employers, and without applying the exclusions for amounts paid by a
Participating Employer to cover an Employee's nonqualified deferred compensation
FICA tax obligations and for gross-up payments on such FICA tax payments.

          14.1.5  Mandatory Aggregation Group means each plan (considering the
Plan and Related Plans) that, during the Plan Year that contains the
Determination Date or any of the four preceding Plan Years:

          (a)  had a participant who was a Key Employee; or

          (b)  was required to be considered with a plan in which a Key Employee
               participated in order to enable the plan in which the Key
               Employee participated to meet the requirements of Code Section
               401(a)(4) or 410(b).

          14.1.6  Non-key Employee means an Employee or former Employee who is
not a Key Employee.

          14.1.7  Permissive Aggregation Group means the group of plans
consisting of the plans in a Mandatory Aggregation Group with the Plan, plus any
other Related Plan or Plans that, when considered as a part of the Aggregation
Group, does not cause the Aggregation Group to fail to satisfy the requirements
of Code Section 401(a)(4) or 410(b).

          14.1.8  Present Value of Accrued Benefits means, for any Plan Year, an
amount equal to the sum of (a), (b) and (c) for each person who, in the Plan
Year containing the Determination Date, was a Key Employee or a Non-key
Employee.

          (a)  The value of a person's full Account Balance under the Plan, plus
               his or her total account balances under each Related Defined
               Contribution Plan in the Aggregation Group, determined as of the
               valuation date coincident with or immediately preceding the
               Determination Date, adjust for contributions due as of the
               Determination Date, as follows:

               (i)  in the case of a plan not subject to the minimum funding
                    requirements of Code Section 412, by including the amount of
                    any contributions actually made after the valuation but on
                    or before the Determination Date and, in the first plan year
                    of a plan, by including contributions made after the
                    Determination Date that are allocated as of a date in the
                    first plan year; and

               (ii) in the case of a plan that is subject to the minimum funding
                    requirements of Code Section 412, by including the amount of
                    any contributions that would be allocated as of a date no
                    later than the

                                     -61-
<PAGE>

                    Determination Date, plus adjustments to those amounts
                    required under applicable rulings, even though those amounts
                    are not yet required to be contributed or allocated (e.g.,
                    because they have been waived) and by including the amount
                    of any contributions actually made (or due to be made) after
                    the valuation date but before the expiration of the extended
                    payment period in Code Section 412(c)(10).

          (b)  The sum of the actuarial present value of a person's accrued
               benefits under each Related Defined Benefit Plan in the
               Aggregation Group, determined for any person who is employed by a
               Participating Employer on a Determination Date, expressed as a
               benefit commencing at normal retirement date (or, if later, the
               person's attained age). The present value of an accrued benefit
               under a Related Defined Benefit Plan is determined as of the most
               recent valuation date that is within the 12-month period ending
               on the Determination Date.

          (c)  The aggregate value of amounts distributed during the plan year
               that includes the Determination Date or any of the four preceding
               plan years, including amounts distributed under a terminated plan
               which, if it had not been terminated, would have been in the
               Aggregation Group.

          14.1.9  Related Plan means any other defined contribution plan (a
"Related Defined Contribution Plan") or defined benefit plan (a "Related Defined
Benefit Plan") (both as defined in Code Section 415(k), maintained by the
Company or an Affiliate.

          14.1.10  A Super Top Heavy Aggregation Group exists in any Plan Year
for which, as of the Determination Date, the sum of the Present Value of Accrued
Benefits for Key Employees under all plans in the Aggregation Group exceeds 90%
of the sum of the Present Value of Accrued Benefits for all employees under all
plans in the Aggregation Group. In determining the sum of the Present Value of
Accrued Benefits for all employees, the Present Value of Accrued Benefits for
any Non-key Employee who was a Key Employee for any Plan Year preceding the Plan
Year that contains the Determination Date will be excluded.

          14.1.11  Super Top Heavy Plan means the Plan when it is described in
the second sentence of Section 14.2.

          14.1.12  A Top Heavy Aggregation Group exists in any Plan Year for
which, as of the Determination Date, the sum of the Present Value of Accrued
Benefits for Key Employees under all plans in the Aggregation Group exceeds 60%
of the sum of the Present Value of Accrued Benefits for all employees under all
plans in the Aggregation Group. In determining the sum of the Present Value of
Accrued Benefits for all employees, the Present Value of Accrued Benefits for
any Non-key Employee who was a Key Employee for any Plan Year preceding the Plan
Year that contains the Determination Date will be excluded.

                                     -62-
<PAGE>

          14.1.13  Top Heavy Plan means the Plan when it is described in the
first sentence of Section 14.2.

14.2  Determination of Top Heavy Status
      ---------------------------------

          This Plan is a Top Heavy Plan in any Plan Year in which it is a member
of a Top Heavy Aggregation Group, including a Top Heavy Aggregation Group that
includes only the Plan. The Plan is a Super Top Heavy Plan in any Plan Year in
which it is a member of a Super Top Heavy Aggregation Group, including a Super
Top Heavy Aggregation Group that includes only the Plan.

14.3  Minimum Allocation for Top Heavy Plan
      -------------------------------------

          14.3.1  For any Plan Year that the Plan is a Top Heavy Plan, the sum
of the Company Contributions and Forfeitures allocated to the Accounts of each
Participant who is a Non-key Employee will be at least three percent of the
Participant's Compensation. However, if the sum of the Company contributions and
Forfeitures allocated to the Accounts of each Participant who is a Key Employee
for the Plan Year is less than three percent of his or her Compensation and this
Plan is not required to be included in an Aggregation Group to enable a defined
benefit plan to meet the requirements of Code Section 401(a)(4) or 410(b), the
sum of the Company Contributions and Forfeitures allocated to the Accounts of
each Participant who is a Non-key Employee for the Plan Year will be equal to
the largest percentage of Compensation allocated to the Accounts of any
Participant who is a Key Employee. Notwithstanding the foregoing, no minimum
allocation will be required for any Non-key Employee who participates in another
defined contribution plan subject to Code Section 412 and included with this
Plan in a Mandatory Aggregation Group.

          14.3.2  For any Plan Year when the Plan is a Top Heavy Plan but not a
Super Top Heavy Plan and a Key Employee is a participant in both this Plan and a
defined benefit plan included in a Mandatory Aggregation Group that is top
heavy, the extra minimum allocation will be provided only in this Plan, and by
substituting four percent for three percent, where the latter percentage appears
in Section 14.3.1.

          14.3.3  For any Plan Year that the Plan is a Top Heavy Plan, the
minimum allocations set forth in this Section 14.3 will be allocated to the
Accounts of all Non-key Employees who are Participants and who are employed by
the Company on the last day of the Plan Year, regardless of their service during
the Plan Year, and whether or not they have made contributions of their own to
the Plan.

          14.3.4  In lieu of the above, if a Non-key Employee participates in
this Plan and a Related Defined Benefit Plan included with this Plan in a
Mandatory Aggregation Group that is a Top Heavy Aggregation Group, a minimum
allocation of five percent of Compensation will be provided under this Plan.
However, for any Plan Year when the Plan is a Top Heavy Plan but not a Super Top
Heavy Plan and a Key Employee is a participant in both this Plan and a Related

                                     -63-
<PAGE>

Defined Benefit Plan included with this Plan in a Mandatory Aggregation Group,
seven and one-half percent will be substituted for five percent where the latter
percentage appears in this Section 14.3.4, and the extra minimum allocation will
be provided only in this Plan.

14.4  Adjustment of Combined Plan Fraction
      ------------------------------------

          For any Plan Year beginning before January 1, 2000 in which this Plan
was a Super Top Heavy Plan, the combined plan fraction of Section 3.9 was
determined by using the figure 1.00, rather than the figure 1.25 in the
denominator of each Participant's defined benefit plan fraction and defined
contribution plan fraction. Also in any such Plan Year, Code Section
415(e)(7)(B)(i) was applied by substituting the figure $41,500 for the figure
$51,875.

                                     -64-
<PAGE>

          To record the amendment and restatement of the Plan to read as set
forth herein, the Company has caused its authorized member of the Committee to
execute the same this ___ day of December, 1999, but to be effective as of
January 1, 1999, except as otherwise expressly provided herein.

                              FMC CORPORATION

                              By J. Paul McGrath
                                -------------------------------------
                                    Member, Employee Welfare Benefits
                                    Plan Committee

                                     -65-
<PAGE>

                                   APPENDIX A

                            Bargaining Units Covered
                            ------------------------

Until otherwise negotiated, the bargaining units whose members are covered by
the Plan, and the effective dates of their coverage, are listed below.

Name of Bargaining Unit                              Effective Date of Coverage
-----------------------                              --------------------------

Agricultural Machinery Division,
Hoopeston, Illinois, United Paperworkers
International Union, AFL-CIO, CLC,
Local 7985                                            January 1, 1997

Peroxygen Chemicals Division, Buffalo, New York,
International Chemical Workers Union, Local 706C      July 1, 1997

Phosphorus Chemicals Division, Pocatello, Idaho,
International Association of Machinists and
Aerospace Workers, AFL-CIO, Gate City
Mechanics, Local 1933                                 July 1, 1998

Kemmerer Coke Plant, Kemmerer, Wyoming,
District No. 22, United Mine Workers of America,
in behalf of Local Union No. 1316, UMWA               August 1, 1998

Agricultural Chemicals Division, Lawrence,
Kansas, International Chemical Workers
Union, Local 605                                      September 15, 1998

Phosphorus Chemicals Division, Carteret,
New Jersey, International Chemical Workers
Union, Local 144                                      October 15, 1998

Agricultural Chemicals Division, Middleport,
New York, International Association of Machinists,
Local 1180                                            January 1, 1999

                                     -66-

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