Document:

UNOCAL EMPLOYMENT AGREEMENT

         This employment agreement (the "Agreement") is made effective as of May
30,  2000  by and  between  Unocal  Corporation,  a  Delaware  corporation  (the
"Company") and Terry G. Dallas, Chief Financial Officer ("Employee").

         In  consideration  of the  mutual  promises  and  agreements  set forth
herein, the Company and Employee agree as follows:

1.   Term.
     ----

     1.1 The term of this  Agreement (the "Term") shall commence on May 30, 2000
and shall be for three years,  subject to earlier termination in accordance with
the provisions of Section 4  hereinbelow.  If the Agreement has not been subject
to early termination in accordance with the provisions of Section 4 hereinbelow,
beginning  on  May  30,2000  and  on  each  day   thereafter,   the  Term  shall
automatically  be extended  for an  additional  day unless the Company  notifies
Employee  in  writing  that it  does  not  wish  to  further  extend  the  Term.
Notwithstanding  the  foregoing,  this  Agreement  shall end  automatically  and
without  additional  notice  on the  date of the  Company's  Annual  Meeting  of
Shareholders  that  next  follows  the  date of  Employee's  sixty-fifth  (65th)
birthday.

2.   Position and Title.
     ------------------

     2.1 The  Company on behalf of itself and its  affiliates  and  subsidiaries
hereby employs Employee as Chief Financial Officer,  and Employee hereby accepts
such employment.

     2.2 Employee shall devote  substantially  all of his efforts on a full time
basis to the  business  and  affairs of the  Company and shall not engage in any
business  or perform  any  services in any  capacity  whatsoever  adverse to the
interests of the Company.

     2.3 Employee shall at all times faithfully,  industriously, and to the best
of his  ability,  experience,  and  talents,  perform  all of the  duties of his
position.

3.   Compensation.
     ------------

     3.1 As of the date of this  Agreement,  Employee's  annual  base  salary is
$380,000.  Employee's base salary and performance shall be reviewed periodically
at intervals approved by the Management  Development and Compensation  Committee
of the Board of Directors of the Company (the "Committee"),  and Employee's base
salary  may be  increased  from  time to  time  based  on  merit  or such  other
consideration as the Committee may deem appropriate.

     3.2 During the Term,  Employee  shall  participate  in all of the Company's
incentive  plans,  benefit  plans and  perquisites,  and in any new or successor
incentive plans,  benefit plans and perquisites,  that are generally provided to
executives of the Company with a level of
<PAGE>
                                      -2-

responsibility  and stature  comparable to Employee.  Performance  goals,  award
opportunity,  benefit levels, and administrative guidelines for such plans shall
be subject to review and approval by the Committee.

4.   Termination of Employment.
     -------------------------

     4.1 During the Term, the Company may terminate Employee's employment herein
at any time for Cause or as a result of a  material  breach by  Employee  of his
obligations  under this Agreement,  provided however that, except in the case of
conviction of a felony,  the Company  shall provide  Employee with not less than
sixty (60) days prior written notice describing the behavior or conduct which is
alleged by the Company to constitute  Cause, and Employee shall be provided with
reasonable  opportunity  to correct such  behavior or conduct  within the notice
period. For purposes of this Agreement,  Cause shall be defined as any or all of
the following:

     (1)  Conduct or action by Employee  which,  in the opinion of a majority of
          the Board of Directors, is materially harmful to the Company;

     (2)  Willful failure by Employee to follow an order of the Board, except in
          such case where the  Employee  believes  in good faith that  following
          such order would be  materially  detrimental  to the  interests of the
          Company;

     (3)  Employee's conviction of a felony.

     4.2 In the event that  Employee's  employment  is terminated by the Company
for any reason other than those set forth in Paragraph 4.1 hereinabove,  or, (a)
Employee's  annual base salary is reduced  below the amount  stated in Paragraph
3.1 hereinabove  (unless such reduction is part of an across the board reduction
affecting  all Company  executives  with a comparable  level of  responsibility,
title or stature),  or (b) Employee is removed from or denied  participation  in
incentive plans, benefit plans, or perquisites generally provided by the Company
to other executives with a comparable level of responsibility, title or stature,
or (c) Employee's  target  incentive  opportunity,  benefits or perquisites  are
reduced  relative to other executives with comparable  responsibility,  title or
stature, or (d) Employee is assigned duties or obligations inconsistent with his
position with the Company or (e) There is a significant change in the nature and
scope of Employee's  authority or his overall  working  environment,  such event
shall be considered a Termination Without Cause.

     4.3 In the event of Employee's Termination Without Cause at any time during
the Term of this Agreement, then:

     (1)  The Company  shall pay  Employee a lump-sum  severance  amount  within
          thirty (30) days  following  Termination  Without Cause equal to three
          (3) times  the sum of (a) the  higher of the  Employee's  annual  base
          salary at the time of  Termination  Without  Cause or the annual  base
          salary stated in Paragraph 3.1 hereinabove,  and (b) the annual target
          Bonus  applicable to Employee as of
<PAGE>
                                      -3-

          the  beginning of the calendar year in which such Termination Without
          Cause occurs,  reduced  by the amount of any  Unocal  Employee
          Redeployment Program  and/or  Unocal  Termination  Allowance  benefits
          payable  to Employee.

     (2)  The Company  shall  provide for Employee to receive  medical,  dental,
          life, and disability  insurance coverage for three (3) years following
          Termination  Without  Cause  at  levels  and a net  cost  to  Employee
          comparable  to  that  provided  to  Employee   immediately   prior  to
          Employee's  Termination  Without  Cause.  In  lieu  of  the  foregoing
          continued  benefits,  the Company in its sole  discretion may elect to
          pay  the  Employee  the  sum of  $25,000  (twenty-five  thousand  U.S.
          Dollars).

     (3)  The Company shall pay Employee an additional lump-sum severance amount
          within thirty (30) days following Employee's Termination Without Cause
          equal to three (3) times the base salary used to  determine  the lump-
          sum severance benefit in paragraph 4.3(1)  hereinabove,  multiplied by
          6% (.06).

     4.4 In the event that  during the Term of this  Agreement  Employee  should
voluntarily  resign  from the  Company,  should  terminate  employment  with the
Company due to death,  permanent disability or incapacitation,  or is terminated
by the Company for Cause or for a material breach by Employee of his obligations
under  this  Agreement,  then  Employee  shall  not  be  entitled  to any of the
termination benefits provided for in Paragraph 4.3 hereinabove,  and the Term of
the Agreement shall immediately end.

     4.5 Employee  shall not be obligated to seek other  employment  or take any
other action by way of mitigation of the amounts  payable to Employee  under any
provisions of this Agreement.

5.   Change of Control.
     -----------------

     5.1 In the event of a Change of Control of the  Company at any time  during
the Term of this Agreement, then:

     (1)  In the event of Employee's  Termination  Without Cause within a period
          of twenty-four  (24) months following the date of a Change of Control,
          Employee shall be entitled to the  termination  benefits  described in
          Paragraph 4.3 hereinabove; provided that the lump-sum severance amount
          paid to Employee  under this  Paragraph  5.1(1),  which is  calculated
          based  on  Paragraphs  4.3(1)  and  4.3(3)  hereinabove,  shall be (a)
          reduced to equal the present  value,  determined  in  accordance  with
          Section  280G(d)(4) of the Internal  Revenue Code (the "IRC"),  of the
          lump-sum  severance  amount  which would  otherwise  be payable  under
          Paragraphs 4.3(1) and 4.3(3),  and (b) reduced to offset  compensation
          and other  earned  income by  Employee in the manner  provided  for in
          Paragraphs 5.1(2) and 5.1(3) below.
<PAGE>
                                      -4-

     (2)  The lump-sum  severance  amounts payable to Employee under  Paragraphs
          4.3(1) and 4.3(3)  shall be reduced by one hundred  percent  (100%) of
          any  compensation  and other  earned  income  (within  the  meaning of
          Section  911(d)(2)(A)  of the IRC)  which is  earned by  Employee  for
          services rendered to persons or entities other than the Company or its
          affiliates  during the three years  immediately  following  Employee's
          Termination Without Cause.

     (3)  Not less frequently than annually  beginning on the first  anniversary
          following Employee's Termination Without Cause, Employee shall account
          to the  Company  with  respect to all  compensation  and other  earned
          income  earned by Employee  which is required  hereunder  to be offset
          against the lump-sum  severance  amount  received by Employee from the
          Company under Paragraphs  5.1(1) and 5.1(2). If the Company has paid a
          lump-sum severance amount in excess of the amount to which Employee is
          entitled  (after  giving  effect to the offsets  provided  for above),
          Employee  shall  reimburse  the Company for such excess  within thirty
          (30)  days of the  determination  of  such  excess.  The  requirements
          imposed under this Paragraph  5.1(3) shall terminate  thirty (30) days
          immediately following the third anniversary of Employee's  Termination
          Without Cause.

     5.2 For the purpose of this Agreement, a "Change of Control" shall mean:

     (a) The acquisition by any individual,  entity or group (within the meaning
of Section  13(d)(3) or  14(d)(2) of the  Securities  Exchange  Act of 1934,  as
amended (the "Exchange  Act")(a  "Person") of beneficial  ownership  (within the
meaning  of Rule 13d-3  promulgated  under the  Exchange  Act) of 20% or more of
either  (i) the then  outstanding  shares of common  stock of the  Company  (the
"Outstanding  Company  Common  Stock") or (ii) the combined  voting power of the
then outstanding  voting securities of the Company entitled to vote generally in
the  election  of  directors  (the  "outstanding  Company  Voting  Securities");
provided,  however,  that for purposes of this  subsection  (a),  the  following
acquisitions  shall not  constitute  a Change of  Control:  (i) any  acquisition
directly  from the  Company,  (ii) any  acquisition  by the  Company,  (iii) any
acquisition  by an  employee  benefit  plan  (or  related  trust)  sponsored  or
maintained by the Company or any  corporation  controlled by the Company or (iv)
any acquisition by any corporation pursuant to a transaction which complies with
clauses (i), (ii) and (iii) of subsection (c) of this Section 5.2; or

     (b)  Individuals  who,  as of the date  hereof,  constitute  the Board (the
"Incumbent Board") cease for any reason to constitute at least a majority of the
Board; provided,  however, that any individual becoming a director subsequent to
the date hereof whose  election,  or  nomination  for election by the  Company's
shareholders,  was  approved by a vote of at least a majority  of the  directors
then  comprising  the  Incumbent  Board  shall  be  considered  as  though  such
individual  were a  member  of the  Incumbent  Board,  but  excluding,  for this
purpose,  any such  individual  whose  initial  assumption of office occurs as a
result of an actual or threatened  election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or
<PAGE>
                                      -5-

     (c)  Consummation of a  reorganization,  merger or consolidation or sale or
other  disposition of all or  substantially  all of the assets of the Company or
the acquisition of assets of another corporation (a "Business Combination"),  in
each case, unless, following such Business Combination, (i) all or substantially
all  of  the   individuals   and  entities  who  were  the  beneficial   owners,
respectively,  of the Outstanding  Company Common Stock and Outstanding  Company
Voting Securities  immediately prior to such Business  Combination  beneficially
own,  directly  or  indirectly,  more  than  50%  of,  respectively,   the  then
outstanding  shares of common  stock and the  combined  voting power of the then
outstanding  voting  securities  entitled to vote  generally  in the election of
directors,  as the case may be, of the corporation  resulting from such Business
Combination (including,  without limitation,  a corporation which as a result of
such transaction  owns the Company or all or substantially  all of the Company's
assets either directly or through one or more subsidiaries) in substantially the
same  proportions  as  their  ownership,  immediately  prior  to  such  Business
Combination  of the  Outstanding  Company Common Stock and  Outstanding  Company
Voting Securities, as the case may be, (ii) no Person (excluding any corporation
resulting  from such  Business  Combination  or any  employee  benefit  plan (or
related trust) of the Company or such  corporation  resulting from such Business
Combination)  beneficially  owns,  directly  or  indirectly,  20%  or  more  of,
respectively,  the then  outstanding  shares of common stock of the  corporation
resulting  from such Business  Combination  or the combined  voting power of the
then outstanding voting securities of such corporation except to the extent that
such ownership  existed prior to the Business  Combination  and (iii) at least a
majority of the members of the board of directors of the  corporation  resulting
from such Business  Combination  were members of the Incumbent Board at the time
of the  execution  of the  initial  agreement,  or of the  action of the  Board,
providing for such Business Combination; or

     (d) Approval by the  shareholders of the Company of a complete  liquidation
or dissolution of the Company.

     5.3 Certain Additional Payments by the Company may be due as follows:

     (a) Anything in this Agreement to the contrary  notwithstanding  and except
as set forth  below,  in the event it shall be  determined  that any  payment or
distribution  by the  Company  or its  affiliates  to or for the  benefit of the
Employee  (whether paid or payable or distributed or  distributable  pursuant to
the terms of this  Agreement or otherwise but  determined  without regard to any
additional  payments  required  under this Section 5.3), (a "Payment")  would be
subject to the excise tax imposed by Section 4999 of the Code or any interest or
penalties  are  incurred by the  Employee  with respect to such excise tax (such
excise tax,  together  with any such  interest and  penalties,  are  hereinafter
collectively  referred  to as the  "Excise  Tax"),  then the  Employee  shall be
entitled to receive an  additional  payment (a "Gross-Up  Payment") in an amount
such that after payment by the Employee of all taxes  (including any interest or
penalties imposed with respect to such taxes),  including,  without  limitation,
any income taxes (and any interest and penalties  imposed with respect  thereto)
and Excise Tax imposed upon the Gross-Up Payment, the Employee retains an amount
of the  Gross-Up  Payment  equal to the Excise Tax  imposed  upon the  Payments.
Notwithstanding  the  foregoing  provisions  of this Section 5.3, if it shall be
determined  that the  Employee is entitled to a Gross-Up  Payment,  but that the
<PAGE>
                                      -6-

Payments do not exceed 110% of the greatest  amount (the "Reduced  Amount") that
could be paid to the Employee  such that the receipt of Payments  would not give
rise to any Excise Tax,  then no Gross-Up  Payment shall be made to the Employee
and the Payments, in the aggregate, shall be reduced to the Reduced Amount.

     (b)  Subject  to the  provisions  of  Section  5.3(c),  all  determinations
required  to be made  under  this  Section  5.3,  including  whether  and when a
Gross-Up  Payment is required  and the amount of such  Gross-Up  Payment and the
assumptions to be utilized in arriving at such  determination,  shall be made by
Ernst  and  Young  or such  other  certified  public  accounting  firm as may be
designated by the Employee (the "Accounting  Firm") which shall provide detailed
supporting  calculations both to the Company and the Employee within 15 business
days of the receipt of notice from the  Employee  that there has been a Payment,
or such  earlier  time as is  requested  by the  Company.  In the event that the
Accounting Firm is serving as accountant or auditor for the  individual,  entity
or group  effecting the Change of Control,  the Employee  shall appoint  another
nationally  recognized  accounting  firm to  make  the  determinations  required
hereunder  (which  accounting  firm shall then be referred to as the  Accounting
Firm  hereunder).  All fees and expenses of the  Accounting  Firm shall be borne
solely by the Company.  Any Gross-Up  Payment,  as  determined  pursuant to this
Section 5.3,  shall be paid by the Company to the  Employee  within five days of
the receipt of the Accounting  Firm's  determination.  Any  determination by the
Accounting Firm shall be binding upon the Company and the Employee.  As a result
of the uncertainty in the application of Section 4999 of the Code at the time of
the initial determination by the Accounting Firm hereunder,  it is possible that
Gross-Up  Payments which will not have been made by the Company should have been
made  ("Underpayment"),  consistent  with the  calculations  required to be made
hereunder.  In the event that the  Company  exhausts  its  remedies  pursuant to
Section 5.3(c) and the Employee  thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall  determine the amount of the  Underpayment
that has  occurred  and any such  Underpayment  shall  be  promptly  paid by the
Company to or for the benefit of the Employee.

     (c) The  Employee  shall  notify the Company in writing of any claim by the
Internal  Revenue Service that, if successful,  would require the payment by the
Company of the Gross-Up  Payment.  Such  notification  shall be given as soon as
practicable  but no later than ten business  days after the Employee is informed
in  writing of such claim and shall  apprise  the  Company of the nature of such
claim and the date on which such claim is  requested  to be paid.  The  Employee
shall not pay such claim prior to the expiration of the 30-day period  following
the date on which it gives such notice to the Company  (or such  shorter  period
ending on the date that any payment of taxes with respect to such claim is due).
If the Company  notifies the Employee in writing prior to the expiration of such
period that it desires to contest such claim, the Employee shall:

     (i) give the Company any  information  reasonably  requested by the Company
relating to such claim,
<PAGE>
                                   -7-

     (ii) take such  action in  connection  with  contesting  such  claim as the
Company  shall  reasonably  request  in  writing  from time to time,  including,
without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by the Company,

     (iii)  cooperate  with the  Company in good faith in order  effectively  to
contest such claim, and

     (iv) permit the Company to participate in any proceedings  relating to such
claim; provided, however, that the Company shall bear and pay directly all costs
and  expenses   (including   additional  interest  and  penalties)  incurred  in
connection with such contest and shall indemnify and hold the Employee harmless,
on an after-tax basis, for any Excise Tax or income tax (including  interest and
penalties with respect thereto) imposed as a result of such  representation  and
payment of costs and expenses. Without limitation on the foregoing provisions of
this  Section  5.3(c),  the  Company  shall  control  all  proceedings  taken in
connection  with such contest  and, at its sole option,  may pursue or forgo any
and all administrative appeals,  proceedings,  hearings and conferences with the
taxing  authority in respect of such claim and may, at its sole  option,  either
direct the  Employee  to pay the tax claimed and sue for a refund or contest the
claim in any  permissible  manner,  and the Employee  agrees to  prosecute  such
contest to a determination  before any  administrative  tribunal,  in a court of
initial  jurisdiction and in one or more appellate  courts, as the Company shall
determine;  provided,  however,  that if the Company directs the Employee to pay
such claim and sue for a refund,  the Company  shall  advance the amount of such
payment to the Employee,  on an interest-free basis and shall indemnify and hold
the Employee harmless,  on an after-tax basis, from any Excise Tax or income tax
(including  interest or penalties with respect  thereto) imposed with respect to
the such  advance or with  respect to any imputed  income  with  respect to such
advance;  and further  provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the  Employee  with respect
to which such  contested  amount is claimed to be due is limited  solely to such
contested  amount.  Furthermore,  the Company's  control of the contest shall be
limited to issues  with  respect to which a  Gross-Up  Payment  would be payable
hereunder and the Employee  shall be entitled to settle or contest,  as the case
may be, any other  issue  raised by the  Internal  Revenue  Service or any other
taxing authority.

     (d) If,  after the  receipt by the  Employee  of an amount  advanced by the
Company pursuant to Section 5.3(c), the Employee becomes entitled to receive any
refund with respect to such claim,  the Employee shall (subject to the Company's
employing with the  requirements  of Section 5.3 promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after
taxes  applicable  thereto).  If, after the receipt by the Employee of an amount
advanced by the Company pursuant to Section 5.3(c), a determination is made that
the Employee  shall not be entitled to any refund with respect to such claim and
the  Company  does not notify the  Employee  in writing of its intent to contest
such  denial  of  refund  prior  to  the   expiration  of  30  days  after  such
determination,  then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance  shall offset,  to the extent  thereof,
the amount of Gross-Up Payment required to be paid.
<PAGE>
                                       -8-

6.   Covenants.
     ----------

     6.1 Employee agrees that any and all confidential knowledge or information,
including but not limited to customer lists,  books,  records,  data,  formulae,
specifications,   inventions,   processes  and  methods,  and  developments  and
improvements,  which have been or may be  obtained or learned by Employee in the
course  of his  employment  with  the  Company,  will  be held  confidential  by
Employee, and that Employee shall not disclose the same to any person outside of
the  Company  either  during  his  employment  with the  Company  or  after  his
employment by the Company has terminated.

     6.2  Employee  agrees  that upon  termination  of his  employment  with the
Company he will  immediately  surrender  and turn over to the Company all books,
records,  forms,  specifications,  formulae,  data,  and all papers and writings
relating to the business of the Company and all other property  belonging to the
Company,  it being  understood and agreed that the same are the sole property of
the Company and that Employee shall not make or retain any copies thereof.

     6.3 Employee agrees that all inventions, developments or improvements which
he has made or may make, conceive,  invent, discover or otherwise acquire during
his  employment  with  the  Company  in the  scope  of his  responsibilities  or
otherwise shall become the sole property of the Company.

     6.4  Employee  agrees to provide a release of any  claims  with  respect to
termination  of his or her  employment  on such form as requested by the Company
upon payment of the sums provided in Section 4.3 above.

7.   Miscellaneous Provisions.
     -------------------------

     7.1 All terms and  conditions of this  Agreement are set forth herein,  and
there are no  warranties,  agreements  or  understandings,  express or  implied,
except those expressly set forth herein.

     7.2 Any  modification  to this Agreement shall be binding only if evidenced
in writing signed by all parties hereto.

     7.3 Any notice or other  communication  required or  permitted  to be given
hereunder shall be deemed properly given if personally delivered or deposited in
the United States mail,  registered or certified and postage prepaid,  addressed
to the Company at 2141 Rosecrans  Ave.,  Suite 4000, El Segundo,  CA (Attention:
General Counsel),  or to Employee at his or her most recent home address on file
with Company,  or at other such addresses as may from time to time be designated
in writing by the respective parties.

     7.4 The laws of the State of  California  shall govern the validity of this
Agreement,  the construction of its terms, and the  interpretation of the rights
and duties of the parties involved.
<PAGE>
                                      -9-

     7.5 In the event that any one or more of the  provisions  contained in this
Agreement shall for any reason be held to be invalid,  illegal or unenforceable,
the same  shall not  affect  any other  provision  of this  Agreement,  but this
Agreement  shall be  construed  as if such  invalid,  illegal  or  unenforceable
provisions had never been contained herein.

     7.6 This Agreement  shall be binding upon, and inure to the benefit of, the
successors  and assigns of the Company and the personal  representatives,  heirs
and legatees of Employee.

     7.7  "Bonus"  refers  to the  Unocal  Incentive  Compensation  Plan and any
replacement or successor plan thereof.

     7.8 Company  shall pay 90% (ninety  percent)  of  Employee's  out-of-pocket
litigation expenses,  including  reasonable  attorney's fees, in connection with
any judicial  proceeding to enforce this  Agreement or construe or determine the
validity of this  Agreement,  whether or not the Employee is  successful in such
proceeding.

     7.9 The term "Company" shall include with respect to employment  hereunder,
any  subsidiary  or affiliate of the Company as well as any  successor  employer
following a Change in Control.

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the
date first above written.

BY:      /s/FRANK C. HERRINGER
         ---------------------------
         Chairman of the Management Development and
         Compensation Committee of the Unocal
         Board of Directors

BY:      /s/TERRY G. DALLAS
         ---------------------------
         EMPLOYEEExhibit 10.1

                               HEXCEL CORPORATION
                      1998 BROAD BASED INCENTIVE STOCK PLAN
                           AS AMENDED FEBRUARY 3, 2000

I.     PURPOSE

       This is the Hexcel Corporation 1998 Broad Based Incentive Stock Plan (the
"Plan").  The Plan is intended to attract,  retain and provide  incentives  to a
broad base of  employees  and  consultants  of the  Corporation,  and to thereby
increase overall stockholders' value. Directors,  officers and affiliates of the
Corporation  are not eligible to  participate  in the Plan.  The Plan  generally
provides for the granting of stock, stock options,  stock  appreciation  rights,
restricted shares,  other stock-based awards or any combination of the foregoing
to the eligible participants.

II.    DEFINITIONS

       (a) "Award" includes,  without limitation,  stock options with or without
       stock appreciation  rights,  dividend  equivalent  rights,  stock awards,
       restricted  share awards,  or other awards that are valued in whole or in
       part by reference to, or are otherwise based on, the Common Stock ("other
       Common Stock-based Awards"), all on a stand-alone,  combination or tandem
       basis, as described in or granted under this Plan.

       (b) "Award  Agreement" means a written  agreement setting forth the terms
        and conditions of each Award made under this Plan.

       (c)    "Board" means the Board of Directors of the Corporation.

       (d) "Committee" means the Executive  Compensation  Committee of the Board
       or such other  committee of the Board as may be  designated  by the Board
       from time to time to administer this Plan.

       (e)  "Common Stock" means the $.01 par value common stock of the
        Corporation.

       (f)    "Corporation" means Hexcel Corporation, a Delaware corporation.

       (g)    "Employee" means an employee of the Corporation or a Subsidiary.

       (h) "Fair Market  Value" means the closing  price for the Common Stock as
       reported in publications of general  circulation  from the New York Stock
       Exchange  Consolidated  Transactions Tape on such date, or, if there were
       no sales on the valuation  date, on the next preceding date on which such
       closing price was  recorded;  provided,  however,  that the Committee may
       specify  some other  definition  of Fair Market  Value in good faith with
       respect to any particular Award.

       (i)    "Participant" means an Employee or consultant who has been granted
        an Award under the Plan.

       (j) "Subsidiary" means any corporation or other entity,  whether domestic
       or  foreign,  in  which  the  Corporation  has or  obtains,  directly  or
       indirectly,  a  proprietary  interest of more than 50% by reason of stock
       ownership or otherwise.

III.   ELIGIBILITY

       Any Employee or consultant of the  Corporation or Subsidiary  selected by
the  Committee  is  eligible  to  receive  an Award  pursuant  to the Plan,  but
Directors,  officers  or  affiliates  of the  Corporation  are not  eligible  to
participate in the Plan.

IV.    PLAN ADMINISTRATION

       (a)  Except as  otherwise  determined  by the  Board,  the Plan  shall be
       administered by the Committee.  The Board, or the Committee to the extent
       determined by the Board,  shall  periodically  make  determinations  with
       respect to the participation of eligible Employees and consultants in the
       Plan and,  except as  otherwise  required by law or this Plan,  the grant
       terms of Awards,  including  vesting  schedules,  price,  restriction  or
       option period,  dividend rights,  post-retirement and termination rights,
       payment  alternatives  such as cash,  stock,  contingent  awards or other
       means of payment  consistent  with the  purposes  of this Plan,  and such
       other  terms  and  conditions  as  the  Board  or  the  Committee   deems
       appropriate  which shall be contained in an Award  Agreement with respect
       to a Participant.

       (b) The  Committee  shall have  authority to  interpret  and construe the
       provisions of the Plan and any Award  Agreement  and make  determinations
       pursuant to any Plan  provision or Award  Agreement  which shall be final
       and binding on all persons.  No member of the  Committee  shall be liable
       for any action or determination made in good faith, and the members shall
       be entitled to  indemnification  and reimbursement in the manner provided
       in the Corporation's  Certificate of Incorporation,  as it may be amended
       from time to time. The Committee  shall have the authority at the time of
       the grant of any Award to provide for the  conditions  and  circumstances
       under which such Award shall be forfeited.  The Committee  shall have the
       authority  to  accelerate  the vesting of any Award and the time at which
       any Award becomes exercisable.  The Committee shall have the authority to
       cancel an Award (with the consent of the Participant  holding such Award)
       on such terms and conditions as the Committee shall determine.

V.     CAPITAL STOCK SUBJECT TO THE PROVISIONS OF THIS PLAN

       (a) The capital  stock  subject to the  provisions  of this Plan shall be
       shares of authorized but unissued Common Stock and shares of Common Stock
       held as treasury  stock.  Subject to adjustment  in  accordance  with the
       provisions  of Section X, and subject to Section V(c) below,  the maximum
       number of shares of Common  Stock that shall be  available  for grants of
       Awards under this Plan shall be 775,000.

       (b) The grant of a restricted  share Award shall be deemed to be equal to
       the maximum number of shares which may be issued under the Award.  Awards
       payable only in cash will not reduce the number of shares  available  for
       Awards granted under the Plan.

       (c) There shall be carried  forward and be available for Awards under the
       Plan, in addition to shares  available  for grant under  paragraph (a) of
       this Section V, all of the  following:  (i) shares  represented by Awards
       which are cancelled, forfeited, surrendered,  terminated, paid in cash or
       expire  unexercised;  and (ii) the excess amount of variable Awards which
       become fixed at less than their maximum limitations.

VI.    AWARDS UNDER THIS PLAN

       As the Board or Committee may  determine,  the following  types of Awards
and  other  Common  Stock-based  Awards  may be  granted  under  this  Plan on a
stand-alone, combination or tandem basis:

       (a) STOCK OPTION.  A right to buy a specified  number of shares of Common
        Stock at a fixed  exercise price during a specified time, all as the
        Committee may determine.

       (b) STOCK  OPTION IN LIEU OF  COMPENSATION  ELECTION.  A right given with
       respect to a year to a Participant to elect to exchange  compensation  or
       fees for stock options.

       (c) STOCK  APPRECIATION  RIGHT. A right which may or may not be contained
       in the grant of a stock option or  incentive  stock option to receive the
       excess of the Fair  Market  Value of a share of Common  Stock on the date
       the  option  is  surrendered  over  the  option  exercise  price or other
       specified amount contained in the Award Agreement.

       (d)  RESTRICTED SHARES.  A transfer of Common Stock to a Participant
        subject to forfeiture until such restrictions,  terms and conditions as
        the Committee may determine are fulfilled.

       (e)  DIVIDEND  OR  EQUIVALENT.  A right  to  receive  dividends  or their
       equivalent  in value in Common Stock,  cash or in a  combination  of both
       with respect to any new or previously existing Award.

       (f)  STOCK AWARD. An unrestricted transfer of ownership of Common Stock.

       (g) OTHER STOCK-BASED  AWARDS.  Other Common Stock-based Awards which are
       related to or serve a similar  function to those Awards set forth in this
       Section VI.

VII.   AWARD AGREEMENTS

       Each  Award  under  the Plan  shall be  evidenced  by an Award  Agreement
setting  forth the  terms  and  conditions  of the  Award  and  executed  by the
Corporation and Participant.

VIII.  OTHER TERMS AND CONDITIONS

       (a) ASSIGNABILITY. Unless provided to the contrary in any Award, no Award
       shall be  assignable  or  transferable  except  by  will,  by the laws of
       descent and  distribution  and during the lifetime of a Participant,  the
       Award shall be  exercisable  only by such  Participant.  No Award granted
       under the Plan shall be subject to execution, attachment or process.

       (b) TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP.  The Committee shall
       determine the  disposition of the grant of each Award in the event of the
       retirement,  disability,  death or other  termination of a  Participant's
       employment or other relationship with the Corporation or a Subsidiary.

       (c)  RIGHTS AS A  STOCKHOLDER.  A  Participant  shall have no rights as a
       stockholder with respect to shares covered by an Award until the date the
       Participant  is the  holder of  record.  No  adjustment  will be made for
       dividends  or other  rights  for which the  record  date is prior to such
       date.

       (d) NO OBLIGATION TO EXERCISE. The grant of an Award shall impose no
        obligation upon the Participant to exercise the Award.

       (e) PAYMENTS BY PARTICIPANTS. The Committee may determine that Awards for
       which a payment is due from a  Participant  may be  payable:  (i) in U.S.
       dollars by personal check, bank draft or money order payable to the order
       of the  Corporation,  by money transfers or direct account  debits;  (ii)
       through  the  delivery or deemed  delivery  based on  attestation  to the
       ownership of shares of Common Stock with a Fair Market Value equal to the
       total  payment due from the  Participant;  (iii)  pursuant to a "cashless
       exercise"   program  if  established  by  the  Corporation;   (iv)  by  a
       combination of the methods  described in (i) through (iii) above;  or (v)
       by such other methods as the Committee may deem appropriate.

       (f) WITHHOLDING.  Except as otherwise provided by the Committee,  (i) the
       deduction of withholding and any other taxes required by law will be made
       from all amounts  paid in cash and (ii) in the case of payments of Awards
       in shares of Common Stock,  the Participant  shall be required to pay the
       amount of any taxes  required  to be  withheld  prior to  receipt of such
       stock,  or  alternatively,  a number of shares the Fair  Market  Value of
       which equals the amount  required to be withheld may be deducted from the
       payment.

       (g) MAXIMUM AWARDS. The maximum number of shares of Common Stock that may
       be issued to any single  Participant  pursuant to options under this Plan
       is equal to the maximum number of shares provided for in paragraph (a) of
       Section V.

IX.    TERMINATION, MODIFICATION AND AMENDMENTS

       (a) The Committee may at any time terminate the Plan or from time to time
       make  such  modifications  or  amendments  of the  Plan  as it  may  deem
       advisable;  provided,  however,  that no  amendments  to the  Plan  which
       require  stockholder  approval under  applicable  law, rule or regulation
       shall become effective unless the same shall be approved by the requisite
       vote of the Corporation's stockholders.

       (b) No  termination,  modification or amendment of the Plan may adversely
       affect  the  rights  conferred  by an Award  without  the  consent of the
       recipient thereof.

X.     RECAPITALIZATION

       The aggregate  number of shares of Common Stock as to which Awards may be
granted  to  Participants,   the  number  of  shares  thereof  covered  by  each
outstanding Award, and the per share price thereof set forth in each outstanding
Award, shall all be proportionately adjusted for any increase or decrease in the
number  of issued  shares  of  Common  Stock  resulting  from a  subdivision  or
consolidation of shares or other capital  adjustment,  or the payment of a stock
dividend or other increase or decrease in such shares,  effected without receipt
of  consideration  by the  Corporation,  or other change in corporate or capital
structure; provided, however, that any fractional shares resulting from any such
adjustment  shall be  eliminated.  The  Committee  shall also make the foregoing
changes and any other  changes,  including  changes in the classes of securities
available,  to the extent it is deemed  necessary  or  desirable to preserve the
intended  benefits of the Plan for the Corporation  and the  Participants in the
event of any  other  reorganization,  recapitalization,  merger,  consolidation,
spin-off, extraordinary dividend or other distribution or similar transaction.

XI.    NO RIGHT TO EMPLOYMENT

       No person  shall have any claim or right to be granted an Award,  and the
grant of an Award shall not be construed as giving a Participant the right to be
retained in the employ of, or in the other relationship with, the Corporation or
a Subsidiary. Further, the Corporation and each Subsidiary expressly reserve the
right at any time to dismiss a Participant free from any liability, or any claim
under  the Plan,  except as  provided  herein or in any Award  Agreement  issued
hereunder or in any other  agreement  applicable  between a Participant  and the
Corporation or a subsidiary.

XII.   GOVERNING LAW

       To the extent that federal laws do not otherwise control,  the Plan shall
be  construed  in  accordance  with and  governed  by the  laws of the  State of
Delaware.

XIII.  SAVINGS CLAUSE

       This Plan is intended to comply in all aspects with  applicable  laws and
regulations.  In case any one or more of the  provisions  of this Plan  shall be
held invalid,  illegal or  unenforceable in any respect under applicable law and
regulation,   the  validity,   legality  and  enforceability  of  the  remaining
provisions shall not in any way be affected or impaired thereby and the invalid,
illegal or unenforceable  provision shall be deemed null and void;  however,  to
the extent permissible by law, any provision which could be deemed null and void
shall first be construed,  interpreted or revised  retroactively  to permit this
Plan to be construed in compliance  with all applicable laws so as to foster the
intent of this Plan.

XIV.   EFFECTIVE DATE AND TERM

       This 1998 Hexcel  Corporation Broad Based Incentive Stock Plan as adopted
on February 5, 1998 is hereby amended as of February 3, 2000.

       THE PLAN SHALL  TERMINATE ON FEBRUARY 4, 2008. NO AWARDS SHALL BE GRANTED
AFTER THE TERMINATION OF THE PLAN.
<PAGE>

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