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                                                                    Exhibit 10-B

                       HERCULES DEFERRED COMPENSATION PLAN

GENERAL OVERVIEW

      The Plan provides eligible employees with the opportunity to defer the
receipt of a portion of compensation to (1) a date or dates beginning after the
employee's retirement or (2) such other designated dates as provided hereunder.
Amounts deferred will be credited each quarter with interest based on the Morgan
Guaranty Trust Company prime rate. The total amount deferred, including interest
credits, will be paid in accordance with the terms of settlement options elected
by the employee.

ELIGIBILITY

      Eligibility to participate in this Plan shall normally be limited to those
executives who receive awards under the Hercules Long-Term Incentive
Compensation Plan, during the calendar year prior to the deferral period.
However, others may become eligible upon the approval of the Chief Executive
Officer.

COMPENSATION

      For purposes of the Plan, compensation means base monthly salary and bonus
payouts, if any, applicable to awards made pursuant to the Management Incentive
Compensation Plan (MICP).

DEFERRAL ELECTIONS

      Prior to December 15 of each year, eligible employees shall elect, on a
form provided by the Company, the percentage of their compensation for the
ensuing year that is to be deferred. The form shall provide for separate
deferral percentage elections for base monthly salary and the "Target" portion
payout applicable to future awards under the Management Incentive Compensation
Plan (MICP), if any. The annual election to defer the MICP payout up to Target
shall be irrevocable. The annual election to defer a portion of base monthly
salary shall also be irrevocable; however, eligible employees may once during
each calendar year elect to change such deferral percentage. The election to
change the deferral percentage shall be prospective, in writing, and must be
received by the Company prior to the beginning of the month for which such
change is to take effect.

      Deferral percentages cannot be less than 5% or more than 60% of base
monthly salary but may be up to 100% (in 5% increments) of the Target portion of
the MICP payout, if any.

Deferred Compensation Plan           - 1 -                         December 1995

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DEFERRED ACCOUNTS AND INTEREST CREDITS

      The Company shall establish and maintain a deferral account in the name of
each participant. Every account shall be credited monthly with the base monthly
salary deferred and/or, at the time an MICP award becomes payable, with the
amount of MICP payout deferred. Participant accounts shall be credited quarterly
with interest based on the Morgan Guaranty Trust Company prime rate of interest.

NON-QUALIFIED SAVINGS PLAN ACCOUNT

      To the extent participation in the Hercules Deferred Compensation Plan
reduces the amount which an eligible participant may contribute to the Hercules
Incorporated Savings and Investment Plan, a Non-Qualified Savings Plan account
shall be established and maintained within this Plan. This account will consist
of the following:

      1.    The Company matching contribution applicable to the amount of the
            reduction in the employee's contribution to the Hercules
            Incorporated Savings and Investment Plan with respect to the
            deferral election.

      2.    Participants in the Hercules Savings and Investment Plan who reach
            the before-tax savings limit imposed by the 1986 Tax Reform Act may
            elect a special salary deferral up to 6% of benefit base which
            becomes effective when the limit is reached in the Hercules Savings
            and Investment Plan. If so elected, the amount of employee
            contributions up to 6% of the employee's benefit base and applicable
            Company matching contribution of 50% thereon which would have been
            contributed had no limitations been imposed by the 1986 Tax Reform
            Act.

      3.    The applicable Company matching contribution referenced in 1 and 2
            above shall be credited to the participant's account at the end of
            each calendar year.

      4.    Once credited to a participant's account, employee and Company
            matching contributions shall be credited quarterly with interest
            based on the Morgan Guaranty prime rate of interest.

Deferred Compensation Plan           - 2 -                         December 1995

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EXCHANGE ELECTION

      Subject to the approval of the Company, and based upon the period of
election stated under "Deferral Elections", a participant may elect to have his
or her account balance exchanged for Restricted Stock under the applicable
"Exchange Awards" provisions of the Hercules Incorporated Long-Term Incentive
Compensation Plan.

      Subject to the approval of the Company, and based upon the period of
election stated under "Deferral Elections", a participant in "Non-Qualified
Savings Plan Account" may elect to exchange all or part of his or her account
balance for Restricted Stock under the applicable "Exchange Awards" provisions
of the Hercules Incorporated Long-Term Incentive Compensation Plan.

SETTLEMENT OF DEFERRED ACCOUNTS AT TERMINATION

      When an eligible employee terminates employment with the company, other
than for retirement pursuant to Schedule B, Articles II, III and IV of The
Pension Plan of Hercules Incorporated or becoming eligible to receive benefits
under the Hercules Incorporated Long-Term Disability Plan, the amount of his or
her deferred account, including interest pro-rated to the date of termination,
shall become immediately payable.

      Those eligible employees retiring under Schedule B, Articles II, III and
IV of The Pension Plan of Hercules Incorporated may elect to have their deferred
accounts settled in one or any combination of the following options:

Option 1:         A percentage in 10% increments ranging from 10% to 100% of the
                  amount in the deferred account, including credited interest,
                  shall be paid as a lump sum on a date specified by the
                  participant between the effective date of the retirement and
                  ten (10) years from that date not to exceed the date the
                  participant reaches age 70-1/2. The percentage shall be
                  applied against the account balance on the effective date of
                  retirement.

Option 2:         A percentage of the amount in the deferred account
                  representing the balance left over from Option 1, if any,
                  including credited interest shall be paid in from one (1) to
                  ten (10) annual installments beginning on a date specified by
                  the participant between the effective date of the retirement
                  and ten (10) years from that date not to exceed the date the
                  participant reaches age 70-1/2. The percentage shall be
                  applied against the account balance on the effective date of
                  retirement. Calculation of the annual installment shall be as
                  follows: the first payment shall be the value of the account
                  on the first payout date divided by the number of installments
                  that the participant has chosen. Each succeeding payment shall
                  equal the account balance (including credited interest) on
                  each anniversary installment date divided by number of
                  payments remaining to be paid.

      The applicable option shall be elected, on a form provided by the Company,
at least

Deferred Compensation Plan           - 3 -                         December 1995

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60 days prior to the effective retirement date.

      Those participants who become eligible for benefits under the Hercules
Long-Term Disability Plan (LTD) may elect to defer settlement of their accounts
to the date their pension under the Hercules Pension Plan becomes effective, in
which case and at that time, the participant shall be eligible to elect either
the Options 1 and 2 above. If a participant who is eligible for benefits under
the Hercules Incorporated Long-Term Disability Plan ceases to be eligible for
LTD benefits prior to being eligible to retire under the Hercules Pension Plan,
Schedule B, Articles II, III and IV, such participant's account hereunder shall
become immediately payable.

      In the event of the death of any eligible employee prior to his or her
retirement date or specified payout date, the beneficiary or beneficiaries
designated on the deferral election form shall within 60 days from the date of
death receive the total amount of the deferred account including interest
pro-rated to the date of payment. However, the beneficiary or beneficiaries may,
prior to the 60th day following the date of death, by written election, select
one of the settlement options available to eligible employees retiring under
Schedule B, Articles II, III, and IV of The Pension Plan of Hercules
Incorporated.

      In the event of the death of an eligible employee subsequent to his or her
date of retirement, the designated beneficiary or beneficiaries shall replace
the eligible employee under the option selected by the eligible employee at the
date of retirement. The designated beneficiary or beneficiaries may, however,
within 60 days of the date of death of the eligible employee, elect to receive
an immediate lump-sum payment of the deferred account or, where installment
payments were in process, the commuted value of remaining payments.

OTHER TERMS AND CONDITIONS

      Participation in the Plan is strictly voluntary.

      Amounts deferred under this Plan do not qualify as earnings for purposes
of calculating benefits under The Pension Plan of Hercules Incorporated or the
Hercules Savings and Investment Plan. Pension benefits otherwise accrued under
the Hercules Incorporated Pension Restoration Plan applicable to amounts
deferred under this Plan shall be governed by the terms and conditions of the
Hercules Incorporated Pension Restoration Plan. Benefits foregone under the
Hercules Savings & Investment Plan due to participation hereunder shall be
restored as defined hereunder.

Deferred Compensation Plan           - 4 -                         December 1995

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      The Compensation Committee shall have the sole responsibility for
administering and interpreting the provisions of the Plan and shall also have
the authority to do those things necessary and possible to achieve the deferred
receipt of income intended for eligible employees under this Plan.

      All amounts paid under the Plan shall be made from the general assets of
the Company. Participants shall have no secured interest in any asset of the
Company, including, without limitations, investments of the Company, if any,
intended to retire its obligations under the Plan.

Deferred Compensation Plan           - 5 -                         December 1995<PAGE>
                                                                    EXHIBIT 10-C

                                  June 27, 2001

Mr. Fred G. Aanonsen
14 Meadow Ridge Lane
New Milford, CT  06776

Dear Fred:

      I am pleased to confirm the terms and conditions of your offer to join
Hercules Incorporated in the position of Vice President and Controller of
Hercules, effective July 2, 2001. This position will report to the Chief
Executive Officer.

      Our offer includes the following components:

      1.    Annual Base Salary: $260,000 payable in 12 equal monthly
            installments. Pursuant to our salary administration policy, salary
            reviews are conducted each March 1st.

      2.    Annual Incentive Compensation: Your target annual incentive
            opportunity under the Hercules Management Incentive Compensation
            Plan (MICP) is for 2001, 60% of your base salary and will be
            prorated for the number of months from your start date to the end of
            the year. The maximum payout is 200% of the target and, of course,
            the minimum is zero. Any payouts above the target amount may be made
            in discounted restricted stock.

      3.    Long-Term Incentive: In this position, you are eligible to receive
            annual grants under the Hercules Long-Term Incentive Compensation
            Plan (LTICP). The value of the 2001 award is set at 80% of your base
            annual salary subject to a pro-rata adjustment for the partial year.
            Upon commencing employment, you will receive a stock options, the
            number of which will be based upon the fair market value as of that
            date and a Black Scholes Valuation methodology.

      4.    Benefits: Your service with Union Carbide will be recognized for
            purposes of eligibility to receive benefits and vesting. You will
            accrue benefits pursuant to the terms of the Pension Plan of
            Hercules Incorporated. Benefits will be funded to the extent legally
            possible under the qualified pension plan trust with the balance
            paid under the unfunded non-qualified pension restoration plan.

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Fred G. Aanonsen
June 27, 2001
Page 2

      5.    Special Pension Bridge: You will be eligible to receive an annual
            credit to the Deferred Compensation Plan equal to 10% of your gross
            annual Union Carbide pension. This credit will continue for the
            lesser of the term of employment or 5 years.

      6.    Deferred Compensation: Beginning calendar year 2002, you become
            eligible to participate in the Hercules Deferred Compensation Plan.
            This plan provides the option to defer before-tax salary and/or
            target MICP amounts. More information will be provided to you on
            this plan when you become eligible to participate.

      7.    Executive Stock Purchase Program: Beginning calendar year 2002, you
            will become eligible to participate in the Executive Stock Purchase
            Program. This program, under the LTICP, provides you with the option
            of converting salary, target MICP amounts, and Nonqualified Pension
            benefits into Hercules Restricted Stock at a 15% discount. The
            program also provides for the exchange of Nonqualified Savings Plan
            balances for restricted stock with no discount. More information
            will be provided to you on this program through the Corporate Human
            Resources Department.

      8.    Temporary Housing: You will be eligible for company paid housing for
            a period not to exceed one year from the date a lease is signed
            subject to a limit of $1700 per month.

      9.    Change in Control: You are eligible for a Change in Control
            Agreement which triggers upon a Change in Control at Hercules
            Incorporated. Upon a qualifying Change in Control, if within the
            three year period beginning the date a Change in Control occurs,
            there is a defined diminution of duty, compensation, or a required
            transfer, you will receive 3 years' salary and the greater of 3
            years target bonus or most recent bonus received. The Change in
            Control Agreement shall also provide that you will receive at least
            60% of the value of your 2001 Long-Term Incentive stock option grant
            if a change in control occurs within the first 12 months of
            employment where the Company Stock is purchased for cash or for no
            consideration and without being replaced by comparable new stock
            options.

      10.   Car Allowance: If required, we will provide a rental car for up to 3
            months.

      11.   Commuting Costs: To the extent a pool car is not available, we will
            reimburse weekly and holiday returns to your home limited to advance
            purchase coach air travel.
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Fred G. Aanonsen
June 27, 2001
Page 3

      This offer is contingent upon your passing our standard pre-placement
physical examination before your anticipated starting date. (Part of this
examination will be a test to detect the use of drugs or alcohol. If you are
currently using prescription drugs, please bring your prescription with you to
the physical.) Plus, we must verify employment eligibility under the Immigration
Reform and Control Act.

      Fred, we enthusiastically welcome you to the Hercules management team. I
look forward to working with you to make this a personally and professionally
rewarding opportunity.

      To indicate your review and acceptance with the above terms please sign a
copy of this letter and return it to me within three days.

                                                  Best regards,

                                                  Edward V. Carrington
                                                  Office of the Chairman
                                                  Corporate Resources Group

Accepted by:

-----------------------
Fred G. Aanonsen

Enclosure

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