Document:

EXHIBIT 4.3

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                              The BASF Corporation
                         Employee Stock Purchase Program

I.       PURPOSE OF THE PROGRAM AND ADMINISTRATION OF THE PROGRAM

         The purpose of the BASF Corporation Employee Stock Purchase Program
(the "Plan") is to encourage employee equity participation in the future
performance of BASF Aktiengesellschaft ("BASF AG"). The Plan will provide
eligible employees with an opportunity to (1) elect payroll deductions in order
to invest a portion of their earnings in a Stock Purchase Fund and (2) receive
additional units of participation in the form of Discount Share and Bonus Share
contributions from the Company, which vest over specified time periods while the
participants retain their initial investments in the Stock Purchase Fund.

         The Company shall administer the Plan and may delegate to any
management committee, employee, director or agent its responsibility to perform
any act hereunder, including without limitation those matters involving the
exercise of discretion, provided that such delegation shall be subject to
revocation at any time at its discretion. The Company shall have full authority
to determine all questions arising in connection with the Plan, including
interpreting its provisions and construing all of its terms; may adopt
procedural rules, and may employ and rely on such legal counsel, such actuaries,
such accountants and such agents as it may deem advisable to assist in the
administration of the Plan. All of its rules, interpretations and decisions
shall be applied in a uniform manner to all Participants similarly situated and
decisions of the Company shall be final, conclusive and binding on all persons.

II. DEFINITIONS

                  Words and phrases as used herein have the following meaning
unless a different meaning is plainly required by the context:

Affiliate means the Company and any corporation which is a member of a
controlled group of corporations (as defined in Section 414(b) of the Code)
which includes the Company; any trade or business (whether or not incorporated)
which is under common control (as defined in Section 414(c) of the Code) with
the Company; any organization (whether or not incorporated) which is a
Participant of an affiliated service group (as defined in Section 414(m) of the
Code) which includes the Company; and any other entity required to be aggregated
with the Company pursuant to regulations under Section 414(o) of the Code.
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BASF Share Equivalent means an amount equal to the current market value one BASF
AG American Depositary Share.
Beneficiary means any person designated by a Participant, pursuant to Article
III hereof, to receive such benefits as may become payable hereunder after the
death of such Participant.
Board of Directors means the Board of Directors of the Company.
Code means the U.S. Internal Revenue Code of 1986, as amended.
Compensation means base pay as recorded in the payroll records or, as the case
may be, salary administration prior to any salary reduction elections under this
Plan or any other plan meeting the requirements of Code Sections 125 and 401(k).
For purposes of this Plan base pay shall be deemed to include regular pay,
holiday pay, vacation pay paid as part of a regularly scheduled vacation period,
jury duty, funeral and military leave pay, personal holiday, and sick pay, but
does not include overtime pay, bonuses, incentive pay, sales bonus, awards,
moving expense reimbursement, payment from any company sponsored long term
incentive program, benefit credits for any company sponsored health plan,
payments or bonuses made to attract new employees, retention or retention-type
payments, plant shut-down premiums, or any other special compensation similar to
those listed. Accrued and unused vacation pay paid as a result of a severance
from service shall not be considered eligible compensation under the Plan.
Company means BASF Corporation, a Delaware corporation, or any successor
thereto. The Company is the sponsor and administrator of the Plan (unless
delegated by the Company) as it relates to the employees of each Employer.
Custodial Account means an account established pursuant to the Custodial
Agreement to hold the assets of the Stock Purchase Fund.
Custodial Agreement means the agreement entered into between the Company and the
Custodian referred to in Article V hereof.
Custodian means such individual, individuals or financial institution, or a
combination of them as shall be designated in the Custodial Agreement to hold
assets of the Stock Purchase Fund of the Plan for the purpose of providing
benefits under the Plan, and shall include any successor Custodian to the
Custodian initially designated thereunder.
Delegate means an individual who has been transferred to the service of an
Employer with an employment contract with an affiliated transferor company and
who remains so classified under the personnel policies of the Employer and the
transferor company.
Disability or Disabled means a Participant's qualification for long-term
disability benefits under a plan or plans sponsored by the Company or one of its
Affiliates.
Effective Date means July 1, 2000.
Employee means any employee of an Employer (other than a Delegate) whose
position is rated under 1000 Hay points and who is not covered by a collective
bargaining agreement entered into by the Employer, unless such agreement, by
specific reference to the Plan, provides for coverage under the Plan, and any
similarly classified employee of such other groups as are authorized to
participate by the Company and for whom the Employer is obligated to withhold
FICA and/or
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Federal withholding taxes. Notwithstanding the foregoing, part-time
or full-time interns, co-op students, leased and other contract workers or
workers who are characterized by the Company as independent contractors are not
covered by and shall not be eligible to participate in the Plan. Further, no
such individual shall be covered by, or eligible to participate in the Plan even
if such individual has been or, in the future may be determined to be a common
law employee of the Company.
Employer means, collectively or individually as the context may indicate, the
Company and any other corporation which (a) is an Affiliate of the Company, and
(b) the Company shall have authorized to adopt the Plan and (c) by action of
such other's corporation's board of directors shall adopt the Plan and become
signatory to the Custodial Agreement, or any successor to one or more of such
entities.
Participant means any employee who becomes a Participant as provided in Article
III hereof.
Plan means the BASF Corporation Employee Stock Purchase Program, and the
attached Addendum, as contained herein or as duly amended from time to time.
Plan Year means the twelve (12) month period beginning on each January 1 and
ending on each December 31.
Retirement means a Participant's severance from service after the date such
Participant qualifies, or would qualify, for retirement or early retirement
under terms of the BASF Corporation Salaried Employees' Pension Plan.
Severance from Service Date means the date on which an Employee quits, retires,
is discharged, becomes disabled or dies.
Spouse means the person to whom a Participant is legally married.
Stock Purchase Fund means the fund established for the investment of assets held
in the Custodial Account, pursuant to Article V.
Valuation Date means each business day. The Stock Purchase Fund shall be valued
at fair market value at the close of business on each business day. The Company
may from time to time value the Custodial Account as of any other date as it
deems desirable.

III. ELIGIBILITY AND PARTICIPATION

Eligibility. An Employee shall be eligible to participate in the Plan on his
date of hire by an Employer.
Participation.
Participation in the Plan is voluntary. A Participant enrolls in the Plan by
authorizing the Company to (1) deduct a percentage of his or her after-tax pay
as a Stock Purchase Plan Contribution and (2) transfer such amount to the Stock
Purchase Fund. By authorizing payroll deductions for Stock Purchase Program
contributions, Participants also authorize the Custodian to hold and invest
contributions and other additions to their individual accounts, in accordance
with the Custodial Agreement for the Stock Purchase Fund.
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An eligible Employee shall commence Plan participation as of the first pay cycle
following completion of the enrollment process established by the Company, or as
soon thereafter as is administratively practicable. The Company may permit
enrollment through the completion and filing of forms provided for this purpose
and/or through electronic or computer means, or as otherwise determined by the
Company in its sole discretion. In the event an Employee does not elect to
participate when initially eligible he may elect to participate on any
subsequent date, if he is then eligible, by completing the enrollment process
established by the Company.

Once a Participant, an Employee shall remain a Participant until his severance
from service Date. In the event an Employee ceases to be a Participant due to
his termination of employment or is a former eligible Employee and is later
reemployed as an Employee, he shall be eligible to participate immediately on
the date he is rehired; provided, however, that such reemployment shall not
result in the restoration of any amounts attributable to Company Discount Share
Contributions or Company Bonus Share Contributions that may have been forfeited
as a result of the Participant's prior severance from service.

For purposes of the Plan, employment with any participating Employer shall be
deemed employment with any other participating Employer. The transfer of an
employee from one participating Employer to another or to an Affiliate shall not
constitute severance from service. A Participant who transfers to an Affiliate
that is not an Employer shall continue to be considered a Participant but shall
no longer be eligible to make contributions pursuant to Article IV.

Beneficiary Designation. Upon commencing participation, each Participant shall
designate a Beneficiary on forms furnished by the Company. Such Participant may
then from time to time change his designated Beneficiary by written notice to
the Company and, upon such change, the rights of all previously designated
Beneficiaries to receive any benefits under this Plan shall cease. If, at the
date of death of the Participant, no duly designated Beneficiary exists, or if
the Beneficiary designated shall have died prior to the death of the
Participant, or if the Participant has revoked a prior designation by a writing
filed with the Company without having filed a new designation, then any death
benefits which would have been payable to the Beneficiary shall be payable to
the Participant's Spouse, if any, at the date of the Participant's death; if no
such Spouse is living, to the Participant's children, equally; or if none
survive, then to the Participant's estate.

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IV.  PARTICIPANT STOCK PURCHASE CONTRIBUTIONS

Stock Purchase Contributions. Each eligible Employee may become a Participant by
electing to contribute to the Stock Purchase Fund 1%, 2%, 3%, 4%, or 5% of his
eligible Compensation. The aggregate of such contributions made by each
Participant during each calendar month or year shall be such Participant's
"Stock Purchase Contributions" for such calendar month or year.

A Participant may, on an appropriate form approved by the Company or through
other procedures established by the Company, change such Participant's Stock
Purchase Contribution percentage to any percentage prescribed in this Article
IV.

A Participant may elect, on an appropriate form approved by the Company or
through other procedures established by the Company, to cease future Stock
Purchase Contributions to the Plan. In the event any such Participant desires
thereafter to again make Stock Purchase Contributions, he shall be allowed to do
so as of the first pay received in any subsequent pay period following the
filing of a timely and proper application on a form approved by, or in
accordance with procedures established by, the Company.

Manner of Election. All elections to start, modify or suspend a Contribution
pursuant to this Article IV must be submitted in a timely manner and in
accordance with the procedures established by the Company, with such election
being implemented as soon as administratively practicable following its receipt.

V. BASF STOCK PURCHASE FUND

Assets of the Plan attributable to Participant Stock Purchase Contributions (the
"Stock Purchase Fund") shall be held by one or more corporate custodians
pursuant to the terms of an agreement between the Company and such corporate
custodian. Employees who authorize payroll deductions for participation in the
Plan will be deemed to have subscribed to the Custodial Agreement and to have
authorized the Custodian to hold and invest their contributions and other
additions to their accounts in accordance with the Plan and the Custodial
Agreement. No person shall have any right to or interest in the Stock Purchase
Fund except as provided in the Plan and Custodial Agreement. Participant Stock
Purchase Contributions shall be paid by the Company to the Custodian at regular
intervals and credited to Participants' individual accounts in accordance with
the certification of the Company, or its delegate, as to the names of the
contributing Participants and the amounts contributed by each Participant.

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The Stock Purchase Fund, together with the earnings thereon, shall be invested
(without distinction between principal and income) in sponsored American
Depositary Shares of BASF AG (hereinafter referred to as "BASF American
Depositary Receipts" or "BASF ADRs"). The Custodian shall regularly purchase
BASF ADRs from time to time in the open market in accordance with a
non-discretionary purchasing program. Cash balances (including any interim
investment thereof) shall not be maintained in the Stock Purchase Fund except to
the extent that such balances are in anticipation of cash distributions or are
maintained in order not to disrupt the nondiscretionary purchasing program of
the Custodian required by the Plan.

A separate recordkeeping account shall be maintained for each Participant, to
which there shall be credited such Participant's Stock Purchase Contributions;
vested Company Discount Share Contributions and vested Bonus Share Contributions
as determined in accordance with the Addendum to the Plan, and the share of each
Participant in the Stock Purchase Fund (the "Stock Purchase Fund Account"). As
of each Valuation Date, the Custodian shall revalue the Fund (exclusive of
contributions to be made as of such Valuation Date) at then current market
values and shall certify the value thereof to the Company. As of each Valuation
Date, the Company, or its delegate, shall adjust each Stock Purchase Fund
Account for activity in the period elapsed since the last preceding Valuation
Date by adding together all income received and accrued, realized and unrealized
profits, and deducting therefrom all taxes, charges or expenses and any realized
or unrealized losses which may have been sustained. The Company, or its delegate
or delegates, as the case may be, shall apportion the Fund as revalued as of
each Valuation Date among the Participants in proportion to their respective
interests in the Fund immediately preceding such Valuation Date. As soon as
practicable after the close of each Plan Year, or at such more frequent
intervals as may be determined by the Company, there shall be sent to each
Participant a written statement of the amount to the credit of his Accounts as
of the last Valuation Date in such period.

VI.  WITHDRAWALS AND DISTRIBUTIONS FROM STOCK PURCHASE FUND ACCOUNTS

Vesting in Stock Purchase Fund Accounts. A Participant shall be fully vested at
all times in the amount to the credit of such Participant's Stock Purchase Fund
Account.

Withdrawals and Distributions From Stock Purchase Fund Accounts. Subject to the
terms and conditions set forth below, a Participant, Beneficiary or the
designated payee with respect to a deceased Participant, may at any time
withdraw all or a part of the amount to the credit of such Participant's Stock
Purchase Fund Account by

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completing the withdrawal process established for this
purpose by the Company; provided, however, that any scheduled future credits of
Bonus Shares or Discount Shares with respect to Stock Purchase contributions
that have been withdrawn by, or distributed to, a Participant shall be forfeited
as provided under the Addendum to the Plan.

A Participant, Beneficiary or the designated payee with respect to a deceased
Participant, may continue to maintain the Participant's Stock Purchase Plan
Account following severance from service; provided, however, that (in the case
of a severance from service for any reason other than Retirement, Disability or
death) any unvested amounts to the credit of the Participant's account under the
Stock Discount and Stock Bonus Addendum to the Plan as of the date of such
severance from service shall be forfeited as provided in the Addendum.

Payment of withdrawals shall be made in a lump sum as soon as reasonably
possible after the Company receives notice of such withdrawal. Amounts withdrawn
may not be repaid. The minimum withdrawal shall be $500, or if less, the entire
remaining balance in such Participant's Stock Purchase Fund Account.

Order of Withdrawals. Withdrawals from a Participant's Stock Purchase Fund
Account shall be made in the following order of priority:
     (a)    FIRST, from any amount in the account attributable to vested Company
            Bonus Share Contributions, and vested Company Discount Share
            Contributions, in order from the earliest to the latest,
     (b)    SECOND, from any amount in the account attributable to dividends
            credited with respect to Stock Purchase Contributions, in order of
            the calendar year in which such Stock Purchase Contributions were
            made, from the earliest to the latest,
     (c)    THIRD, from the Participant's Stock Purchase Contributions for any
            calendar year for which Discount Shares and Bonus Shares have
            already been vested and any market appreciation on such
            contributions, in order, from the earliest calendar year to the
            latest, and
     (d)    FINALLY, from the Participant's Stock Purchase Contributions for any
            calendar year for which Discount Shares and Bonus Shares have not
            already been vested and any market appreciation on such
            contributions, in order, from the latest calendar year to the
            earliest.

Application for Distributions. In order to receive a distribution under the
Plan, a Participant, his Beneficiary, next of kin, or estate must make
application therefor in accordance with procedures prescribed by the Company.
The Company may require that there be furnished to it in connection with such
application all information pertinent to any question of eligibility and the
amount of any distribution. The Company may permit applications for
distributions to be made through the completion and filing of forms provided for
this purpose and/or through

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electronic, telephonic or computer means, or as otherwise determined by the
Company in its sole discretion.

VII.   VOTING AND TENDERING OF BASF ADRs IN THE STOCK PURCHASE FUND.

Each Participant (or in the event of his death, his beneficiary or estate) shall
have the right to instruct the Custodian as to the manner in which to (1)
exercise voting rights at each annual and each special meeting of the
stockholders of BASF AG, and/or (2) respond to a tender or exchange offer, with
respect to BASF ADRs credited to such Participant's account under the Plan. The
Company shall utilize its best efforts to distribute on a timely basis or cause
to be distributed to each Participant (or beneficiary or estate) such
information as will be distributed to holders of BASF ADRs in connection with
any such meeting or tender or exchange offer, together with an appropriate form
for the Participant to indicate his instructions. Upon its receipt of such
instructions, the Custodian shall cause the voting or tender of such BASF ADRs
as and to the extent so instructed. It is the intent of this provision of the
Plan to treat all such Participants of the Plan (or their beneficiaries or their
estates) as if they held directly all BASF ADRs to the credit of their accounts
under the Plan so that if a Participant (or beneficiary or estate) does not
instruct the Custodian to vote, tender or exchange such BASF ADRs at a
stockholder meeting or pursuant to the terms of any tender or exchange offer,
the Custodian shall conclude that such Participant does not wish to have his
BASF ADRs voted, tendered or exchanged. The Custodian shall have no discretion
in such matter and shall take no action with respect to any such meeting, or
tender or exchange offer except to the extent it receives instructions from
Participants. The Custodian shall keep confidential all instructions it receives
pursuant to this Article VII.

VIII.    PLAN AMENDMENT OR SUSPENSION

The Plan may be amended or suspended in whole or in part, at any time and from
time to time by the Company; provided, however, that no such amendment or
suspension shall adversely affect in a material manner any right of any
Participant with respect to amounts credited to such Participant's accounts
prior to the effective date of such amendment or suspension.

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IX.      TERMINATION

The Plan may be terminated at any time by appropriate action of the Company.

XIV.     MISCELLANEOUS

         (a) Neither the Plan nor any action taken hereunder shall be construed
as changing the "at will" relationship existing between the Company and its
employees, nor as giving any employee or other person any right to continued
employment with the Company and the right to terminate the employment of any
Participant at any time and for any reason is specifically reserved to the
Company.

         (b) No Participant or any other person shall have any right or interest
with respect to the Stock Purchase Fund, until written evidence of such right or
interest shall have been delivered to the recipient and all the terms,
conditions and provisions of the Plan applicable to such recipient, and each
person claiming under or through such recipient, have been met.

         (c) The Custodian shall have the right to withhold federal, state,
local or foreign income or other taxes as required by law to be withheld with
respect to any payment made under the Stock Purchase Fund.

         (d) All proper expenses of administering the Stock Purchase Fund shall
be paid by the Stock Purchase Fund, unless paid for by the Company.

         (e) he validity, construction, interpretation, administration and
effect of the Plan, and of its rules and regulations, and rights relating to the
Plan, shall be governed by the substantive laws, but not the choice of law
rules, of the State of New Jersey.

         (f) The Plan is not subject to Section 401(a) of the Code and is not
intended to qualify under Section 423 of the Code.

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                BASF Corporation Employee Stock Purchase Program

                 COMPANY STOCK DISCOUNT AND STOCK BONUS ADDENDUM

Company Discount Share Contribution - On or before March 1 of each Plan Year,
the Company, in its sole discretion, shall establish, based on corporate
performance for the prior year, a Discount Factor (from a minimum of 0% to a
maximum of 15%), which will be used in determining the Company's Discount Share
Contribution with respect to all Participant Stock Purchase Contributions made
under the Plan beginning on March 1 of the Plan Year for which the Discount
Factor is being determined and continuing until the last day of February in the
following Plan Year. The Discount Factor applicable to Participant Stock
Purchase Contributions made during the period from the inception of the Plan to
February 28, 2001 shall be 9%.

Each Participant who elects to make Stock Purchase Contributions shall receive a
Company Discount Share Contribution in the amount of that percentage of the
Participant's Stock Purchase Contribution which is equal to the Discount Factor
divided by one (1) minus the Discount Factor, as illustrated in the following
table.

-------------------------------------------------------------------------------
                                     Company Discount Share Contribution
      Discount Factor       (As % of Participant's Stock Purchase Contributions)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
           15%                                    17.647%
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           14%                                    16.279%
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           13%                                    14.943%
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           12%                                    13.636%
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           11%                                    12.360%
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           10%                                    11.111%
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            9%                                    9.890%
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            8%                                    8.696%
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            7%                                    7.527%
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            6%                                    6.383%
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            5%                                    5.263%
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       Less than 5%                                 0%
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The Company shall maintain a bookkeeping account in the name of each Participant
who is entitled to a Company Discount Share Contribution (the "Discount Share
Account") which account shall separately record the total amounts of Discount
Share Contributions credited by the Company with respect to such Participant's
Stock Purchase Contributions for each calendar year. The amount to the credit of
a Participant's Discount Share Account will be increased or decreased as of each
Valuation Date by investment gains and losses equivalent to those which would
have been experienced had such amounts

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been invested in BASF ADRs under the Stock Purchase Fund. A Participant's
Discount Share Account shall be utilized solely as a device for the measurement
and determination of amounts to be paid to the Participant pursuant to this
Plan, and shall not constitute or be treated as a trust fund or custodial fund.
All credits to Discount Share Accounts shall be held in the general funds of the
Company.

Vesting of Company Discount Share Contributions - The Company Discount Share
Contributions credited with respect to the Stock Purchase Contributions made by
a Participant during each calendar year shall vest as of December 1 of the
second calendar year following the year in which such Stock Purchase
Contributions were made (the "Discount Share Vesting Date"); provided that the
Participant remains employed by the Company or one of its Affiliates as of such
date, and that the Participant has not previously withdrawn or received a
distribution of the Stock Purchase Contributions with respect to which such
Discount Shares were to credited. In the event that a portion of the Stock
Purchase Contributions made by a Participant during a calendar year have been
withdrawn under the Plan, the Participant shall vest in the Company's Discount
Share Contributions for that year on a pro-rata basis based on the portion of
his Stock Purchase Contributions which remain following any such withdrawal(s).
Company Discount Share Contributions credited with respect to any Stock Purchase
Contributions that are withdrawn or distributed prior to the Discount Share
Vesting Date shall be forfeited.

Immediately following each Discount Share Vesting Date, or the date of an
acceleration of vesting following severance from service as a result of the
Participant's Disability or death, the Company shall reduce the Participant's
Discount Share Account by the amount in such account attributable to any
Discount Share Contributions which have become vested as described above, and
transfer such amount to such Participant's Stock Purchase Fund Account as of the
next practicable Valuation Date.

Company Bonus Share Contributions - On or before March 1 of each Plan Year, the
Company, in its sole discretion, shall establish, based on corporate performance
for the prior year, a Bonus Share Factor (from 0 to 5), which shall determine
the number of Bonus Share Equivalents that may be credited under the Plan for
each ten (10) BASF Share Equivalents purchased with the Participant's Stock
Purchase Contributions for such year, and the amount of such Bonus Share
Equivalents shall be increased or decreased in proportion to the actual amount
of BASF Share Equivalents purchased with the Participant's Stock Purchase
Contributions for such year. The Bonus Factor applicable to Participant Stock
Purchase Contributions made during the period from the inception of the Plan to
December 31, 2000 shall be 3. Bonus Share Equivalents shall be utilized solely
as a device for the measurement and determination of amounts to be paid to the
Participant pursuant to this Plan, and shall not constitute or be treated as
credits under a trust fund or custodial fund. All credits for Bonus Share
Equivalents shall be held in the general funds of the Company.

Vesting of Company Bonus Share Contributions - As of December 1 of the second
(2nd), fifth (5th) and eighth (8th) year following each calendar year in which a
Participant

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has made Stock Purchase Contributions hereunder (the "Bonus Share
Vesting Dates"), the Company shall credit to such Participant one third (1/3) of
the total number of BASF Share Equivalents determined with respect to the
Participant's Stock Purchase Contributions for such year; provided that the
Participant remains employed by the Company or one of its Affiliates as of such
date, and that the Participant has retained the Stock Purchase Contributions
with respect to which such Bonus Shares are credited. In the event that a
portion of the Stock Purchase Contributions made by a Participant during a
calendar year have been withdrawn under the Plan, the Participant shall vest in
all subsequent Company Bonus Share Contributions for that year on a pro-rata
basis based on the portion of his Stock Purchase Contributions which remain
following any such withdrawal(s). Company Bonus Share Contributions with respect
to any Stock Purchase Contributions that are withdrawn or distributed prior to a
Bonus Share Vesting Date shall be forfeited.

The amount of any BASF Share Equivalents which become vested as described above,
or which are subject to accelerated vesting at a severance from service as the
result of the Participant's Disability or death, shall be credited by the
Company to such Participant's Stock Purchase Fund Account as of the next
practicable Valuation Date.

Severance from Service - In the event of a Participant's severance from service,
for any reason, other than the Participant's Retirement, Disability or death,
prior to the Vesting Date for any Company Discount Share Contributions and
Company Bonus Share Contributions credited hereunder, the amount in the
Participant's account attributable to such Company Discount Share Contributions
and Company Bonus Share Contribution shall thereupon be forfeited.

In the event of a Participant's severance from service as a result of
Retirement, the non-vested portion of any Company Discount Share Contributions
and Company Bonus Share Contributions credited to such Participant's account
shall remain in the Participant's account under this Addendum and shall continue
to vest, while the Participant maintains his Plan account in accordance with
Article VI of the Plan.

In the event of a Participant's severance from service as a result of the
Participant's death or Disability, the non-vested portion of any Company
Discount Share Contributions and Company Bonus Share Contributions credited to
such Participant's account shall thereupon become fully vested and the amount in
the Participant's account attributable to such Company Discount Share
Contributions and Company Bonus Share Contributions shall be credited to such
Participant's Stock Purchase Fund Account as of the next practicable Valuation
Date.

Miscellaneous - Benefit accruals under this Addendum to the Plan shall be
unfunded until such time that they vest as provided above and become
transferable to Participant Stock Purchase Accounts under the Plan, and any
benefit payments made by the Company to fund such transfers shall be paid from
the general assets of the Company. Nothing contained herein shall be construed
as providing for assets to be held in trust or escrow or

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                                       4

any other form of asset segregation for the Participant or for any other person
or persons to whom benefits are accrued pursuant to this Addendum, the
Participant's only interest hereunder is the right to acquire vested rights to
such accruals as set forth herein. To the extent the Participant or any other
person acquires a vested right to receive benefits under this Addendum, such
right shall be no greater than the right of any unsecured general creditor of
the Company.

Except as otherwise provided hereunder, a Participant's rights and interests
under this Addendum to the Plan may not be assigned or transferred, hypothecated
or encumbered in whole or in part either directly or indirectly by operation of
law or otherwise, including, but not limited to, execution, levy, garnishment,
attachment, pledge, bankruptcy or in any other manner, and any attempt to do so
shall be null and void; provided, however, that, subject to applicable law, any
amounts payable to any Participant hereunder are subject to reduction to satisfy
any liabilities owed to the Company by the Participant.

The Company shall have the right to withhold federal, state, local or foreign
income or other taxes as required by law to be withheld with respect to the
vesting of accrued benefits and any payments or transfers for the benefit of
Participants that may be made under this Addendum to the Plan.EXHIBIT 4.4
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                                BASF CORPORATION

                              EMPLOYEE SAVINGS PLAN

                            Effective January 1, 1992

September 28, 1992

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BASF CORPORATION EMPLOYEE SAVINGS PLAN

TABLE OF CONTENTS

INTRODUCTION                                                                  i

ARTICLE I - DEFINITIONS
1.01          Accrued Benefit                                                 1
1.02          Actual Deferral Percentage                                      1
1.03          Affiliate                                                       2
1.04          After-Tax Contribution                                          2
1.05          Before-Tax Contribution                                         2
1.06          Beneficiary                                                     3
1.07          Board of Directors                                              3
1.08          Committee                                                       3
1.09          Compensation                                                    3
1.10          Contributions                                                   5
1.11          Contribution Percentage                                         6
1.12          Corporation                                                     6
1.13          Disability                                                      6
1.14          Early Retirement                                                6
1.15          Effective Date                                                  6
1.16          Elective Deferrals                                              7
1.17          Employee                                                        7
1.18          Employer                                                        8
1.19          Employer Matching Contribution Account                          8
1.20          Employer Matching Contributions                                 9
1.21          Excess Aggregate Contributions                                  9
1.22          Excess Contributions                                            9
1.23          Excess Deferrals                                               10
1.24          Employment Date                                                11
1.25          ERISA                                                          11
1.26          Family Member                                                  11
1.27          Fiduciary                                                      11
1.28          Forfeiture                                                     11
1.29          Former Participant                                             11
1.30          Hardship                                                       11
1.31          Highly Compensated Employee                                    12
1.32          Hour of Service                                                16
1.33          Individual Account                                             16

                                       ii

<PAGE>

1.34          Individual Retirement Account                                  16
1.35          Investment Fund                                                16
1.36          Investment Manager                                             16
1.37          IRC                                                            17
1.38          Limitation Year                                                17
1.39          Non-Participating Contributions                                17
1.40          Non-Participating Contribution Account                         17
1.41          Normal Retirement Age                                          17
1.42          Over-The-Road Driver                                           17
1.43          Participant                                                    17
1.44          Participant Loan Fund                                          18
1.45          Participating Contributions                                    18
1.46          Participating Contribution Account                             18
1.47          Period of Employment                                           18
1.48          Period of Severance                                            20
1.49          Plan                                                           20
1.50          Plan Year                                                      20
1.51          Predecessor Plan                                               20
1.52          Predecessor Plan Account                                       21
1.53          Qualified Nonelective Contributions                            21
1.54          Qualified Plan Rollover Contribution                           21
1.55          Reemployment Date                                              21
1.56          Rollover Account                                               21
1.57          Rollover Contribution                                          21
1.58          Severance from Service Date                                    21
1.59          Special Stock Fund                                             22
1.60          Spouse                                                         22
1.61          Trust                                                          22
1.62          Trust Agreement                                                22
1.63          Trustee                                                        22
1.64          Valuation Date                                                 23

ARTICLE II - ELIGIBILITY AND PARTICIPATION
2.01          Eligibility                                                    23
2.02          Participation                                                  24
2.03          Beneficiary Designation                                        25

ARTICLE III - CONTRIBUTIONS
3.01          Participating Contributions                                    26
3.02          Employer Matching Contributions                                27
3.03          Non-Participating Contributions                                28

                                       iii

<PAGE>

3.04          Maximum Deductible Contributions and                           29
              Statutory Limitation on Contributions
3.05          Election                                                       38
3.06          Predecessor Plan Accounts                                      38
3.07          Rollover Contributions                                         38

ARTICLE IV -  INVESTMENT OPTIONS AND FUNDS
4.01          Investment Options                                             40
4.02          Direction of Investments                                       41
4.03          Investment Fund Transfers                                      42

ARTICLE V -   ALLOCATION TO INDIVIDUAL ACCOUNTS
5.01          Individual Accounts                                            43
5.02          Allocation of Contributions                                    43
5.03          Allocation of Adjustment                                       44
5.04          Equitable Allocations                                          44
5.05          Maximum Additions                                              44

ARTICLE VI -  DISTRIBUTIONS AND VESTING
6.01          Vesting of Participant's Accounts                              46
6.02          Vesting of Employer Matching Account                           46
6.03          Retirement                                                     47
6.04          Disability                                                     47
6.05          Death Before Retirement or Termination                         48
                       of Employment
6.06          Severance from Service                                         48
6.07          Method of Payment                                              49
6.08          Benefits to Minors and Incompetents                            54
6.09          Payment of Benefits                                            55

ARTICLE VII - WITHDRAWALS
7.01          Withdrawals Generally                                          62
7.02          Order of Withdrawals                                           62
7.03          Withdrawal Because of Hardship                                 64
7.04          Projected Interest on Withdrawals                              65
7.05          IRC Section 72                                                 65
7.06          Qualified Domestic Relations Orders                            65

                                       iv

<PAGE>

ARTICLE VIII - FUNDING
8.01          Contributions                                                  66
8.02          Trustee                                                        67

ARTICLE IX -  FIDUCIARIES
9.01          General                                                        67
9.02          Corporation                                                    68
9.03          Trustee                                                        68
9.04          Committee                                                      68
9.05          Missing Persons                                                70
9.06          Indemnification of Fiduciaries                                 70

ARTICLE X -   AMENDMENT AND TERMINATION OF PLAN
10.01         Amendment of the Plan                                          71
10.02         Termination of the Plan                                        71
10.03         Allocation of Assets                                           72
10.04         Application of Assets                                          72
10.05         Merger, Consolidation and Transfers of                         73
              Assets or Liabilities

ARTICLE XI -  PROVISIONS RELATING TO EMPLOYERS INCLUDED IN PLAN
11.01         Method of Participation                                        74
11.02         Withdrawal                                                     74

ARTICLE XII - TOP HEAVY PROVISIONS
12.01         Definitions                                                    75
12.02         Top Heavy Plan                                                 78

ARTICLE XIII - MISCELLANEOUS
13.01         Governing Law                                                  80
13.02         Construction                                                   81
13.03         Administration Expenses                                        81
13.04         Participant's Rights; Acquittance                              81
13.05         Spendthrift Clause                                             81
13.06         Return of Contributions                                        82
13.07         Counterparts                                                   82

                                       v

<PAGE>

ARTICLE XIV - LOANS
14.01         Loans to Participants                                          82

ARTICLE XV - ADOPTION OF THE PLAN                                            86

ARTICLE XVI - SPECIAL PROVISIONS WITH RESPECT TO EMPLOYEES OF

DETROIT MILFORD AVENUE LABORATORY
16.01         Detroit Plan                                                   86

ARTICLE XVII - SPECIAL PROVISIONS WITH RESPECT TO EMPLOYEES OF

CERTAIN PREDECESSOR PLANS
17.01         BSM Plan                                                       88
17.02         Knoll Plan                                                     88
17.03         FDO Plan                                                       89
17.04         Polysar Plan                                                   90
17.05         Wintershall Plan                                               90
17.06         Information Systems Plan                                       91
17.07         Olin Plan                                                      92
17.08         Mobil Plan                                                     93

                                       vi

<PAGE>

INTRODUCTION

Effective January 1, 1992, BASF Corporation hereby amends and restates the BASF
Corporation Employee Savings Plan, effective January 1, 1987 (the "Plan"). The
provisions of certain sections of the Plan shall become effective as of the
dates specified in such sections.

The purpose of this Plan, which shall be qualified as a profit sharing plan
under applicable governmental rules, is to provide additional incentive and
retirement security for eligible employees of participating Employers.

It is intended that this Plan, together with the Trust Agreement, meet all the
requirements of the Employee Retirement Income Security Act of 1974 and the Plan
shall be interpreted to comply with the terms of the Act and all formal
regulations and rulings issued under such Act and amendments thereto. It is
further intended that the Plan shall be qualified under Sections 401(a), 401(k)
and 401(m) of the Internal Revenue Code, and that the trust established for the
Plan shall be a qualified trust and exempt from taxation under Section 501(a) of
such Code.

                                       i

<PAGE>

ARTICLE I

DEFINITIONS

As used herein, unless otherwise required by the context, the following words
and phrases shall have the meanings indicated:

1.01     Accrued Benefit, as used in regard to a Participant's or Former
         Participant's Individual Account or stipulated portion thereof, means,
         as of any date, the account balance as of the most recent Valuation
         Date plus Contributions made to the Trust since such Valuation Date on
         behalf of such Participant reduced by any withdrawals and
         distributions.

1.02     Actual Deferral Percentage, for a specified group of Employees for a
         Plan Year, shall mean the average of the ratios (calculated separately
         for each Employee in such group) of:

                  (i) the amount of Before-Tax Contributions actually paid over
         to the Trust on behalf of each such Employee for such Plan Year, to

                  (ii) the Employee's Compensation for such Plan Year. For these
         purposes, a Before-Tax Contribution shall be taken into account for a
         Plan Year only if it is allocated to the Employee under the Plan as of
         a date within that Plan Year and relates to compensation that either
         would have been received by the Employee in the Plan Year (but for the
         deferral election) or is attributable to services performed by the
         Employee in the Plan Year and would have been received by the Employee
         within 2-1/2 months after the close of the Plan Year (but for the
         deferral election). A Before-Tax Contribution is considered allocated
         as of a date within a Plan Year only if (i) the allocation is not
         contingent upon the Employee's participation in the Plan or performance
         of services on any date subsequent to that date and (ii) the Before-Tax
         Contribution is actually paid to the trust no later than the end of the
         12-month period immediately following the Plan Year to which the
         contribution relates.

         For purposes of computing an Employee's Actual Deferral Percentage for
         a Plan Year, Compensation shall be limited to only that Compensation
         received by the Employee while such Employee is eligible to participate
         in the Plan.

1.03     Affiliate means the Employer and any corporation which is a member of a
         controlled group of corporations (as defined in Section 414(b) of the
         Code) which includes the Employer; any trade or business (whether or
         not incorporated) which is under common control (as defined in Section
         414(c) of the Code) with the

                                       1

<PAGE>

         Employer; any organization (whether or not incorporated) which is a
         member of an affiliated service group (as defined in Section 414(m) of
         the Code) which includes the Employer; and any other entity required to
         be aggregated with the Employer pursuant to regulations under Section
         414(o) of the Code.

1.04     After-Tax Contributions means Contributions made to the Plan by a
         Participant in accordance with Section 3.01 or 3.03 of Article III
         which are not Before-Tax Contributions.

1.05     Before-Tax Contributions means Contributions made to the Plan by the
         Employer in accordance with Section 3.01 and 3.03 of Article III
         pursuant to a salary reduction election by the Participant. Such
         election shall provide that the Participant's Employer shall reduce the
         Participant's compensation during each pay period by a designated
         percentage of Compensation and contribute the amount so determined to
         the Plan on behalf of the Participant.

1.06     Beneficiary means any person designated by a Participant, pursuant to
         Section 2.03, to receive such benefits as may become payable hereunder
         after the death of such Participant.

1.07     Board of Directors means the Board of Directors of the Corporation.

1.08     Committee means the Pension and Benefits Committee of BASF Corporation
         as described in Section 9.04.

1.09     Compensation means (a) the base pay as recorded in the payroll records
         or, as the case may be, salary administration prior to any salary
         reduction elections under this Plan or any other plan meeting the
         requirements of IRC Sections 125 and 401(k), and shall include (b)
         straight-time pay for overtime work and commissions, but shall not
         include (c) awards; half-time premiums for overtime; bonuses and
         incentive pay; moving expense reimbursements; payments from any
         Corporation sponsored health plan; payments or bonuses made to attract
         new employees or similar payments; and, effective January 1, 1995,
         retention or retention type payments, plant shut-down premiums and
         similar payments made upon termination of employment. Notwithstanding
         the foregoing sentence, a bonus paid in 1987 to an Employee previously
         covered by the Badische Corporation Savings Plan and/or the Inmont
         Savings Plan attributable to services performed in 1986 shall be
         included in compensation. With respect to Over-The-Road Drivers,
         Compensation shall mean gross pay.

         Notwithstanding any other contrary provision of the Plan, Compensation
         taken into account under the Plan shall not exceed $150,000 ($200,000
         for Plan Years ending on or before January 1, 1994), adjusted for
         changes in the cost of living as provided in IRC Section 415(d), or
         such other amount as required by IRC

                                       2
<PAGE>

         Section 414, for the purpose of calculating a Participant's Accrued
         Benefit (including the right to any optional benefit provided under the
         Plan) for any Plan Year beginning after December 31, 1988. However, the
         Accrued Benefit determined in accordance with this provision shall not
         be less than the Accrued Benefit determined on January 1, 1989 without
         regard to this provision. Notwithstanding the preceding sentence, the
         Accrued Benefit of any Participant who is a Highly Compensated
         Employee, within the meaning of IRC Section 414(q), is reduced to the
         extent a benefit has accrued with respect to Compensation in excess of
         $200,000 during the 1989 Plan Year before the later of the adoption or
         effective date of this provision. Additionally, in the case of
         determining the Compensation of a five-percent (5%) owner or of a
         Highly Compensated Employee in the group consisting of the 10 Highly
         Compensated Employees paid the greatest compensation for the year, the
         family aggregation rules, as contained in 414(q) shall apply. If, as a
         result of the application of such rules the compensation limit is
         exceeded, then the compensation limit shall be prorated among the
         affected individuals in proportion to each such individual's
         compensation as determined prior to the application of the compensation
         limit. For purposes of Section 5.05, Compensation means the amount
         incredible in gross income for the taxable year which coincides with
         the Plan Year excluding (i) any salary reduction contributions under
         this Plan or any plan meeting the requirements of IRC Sections 125 or
         401(k), (ii) Employer contributions on behalf of an Employee to a
         simplified employee pension described in Code Section 408(k); (iii) any
         distribution from a plan of deferred compensation; (iv) amounts
         realized from the sale, exchange or other disposition of stock acquired
         under a qualified stock option; (v) amounts realized from the exercise
         of a non-qualified stock option, or when restricted stock (or property)
         held by the Employee either becomes freely transferable or is no longer
         subject to a substantial risk of forfeiture; and (vi) other amounts
         which receive special tax benefits, such as premiums for group term
         life insurance or contributions made by an Employer towards the
         purchase of an annuity contract described in IRC Section 403(b). For
         purposes of the Actual Deferral Percentage test described in Section
         3.04(C) and the Contribution Percentage Test described in Section
         3.04(g), Compensation means base pay as recorded in the payroll records
         or, as the case may be, salary administration prior to any salary
         reduction election under this Plan or any other plan meeting the
         requirements of IRC Sections 125 or 401(k), and shall include
         straight-time pay for overtime work, commissions, and bonuses.

1.10     Contributions means payments as provided herein by the Employer and/or
         the Participants to the Trustee for the purpose of providing the
         benefits under this Plan.

                                       3
<PAGE>

1.11     Contribution Percentage, for a specified group of Employees for a Plan
         Year, shall mean the average for the ratios (calculated separately for
         each Employee in such group) of:

                  (i) the sum of the Employer Matching Contributions and
         After-Tax Contributions paid under the Plan on behalf of each such
         Employee for such Plan Year, to

                  (ii) the Employee's Compensation for such Plan Year.
         For purposes of calculating an Employee's Contribution Percentage for a
         Plan Year, Compensation shall be limited to only that Compensation
         which was received by the Employee while such Employee was eligible to
         participate in the Plan.

1.12     Corporation means BASF Corporation, a Delaware corporation, or any
         successor thereto. The Corporation is the sponsor, the named Fiduciary
         and the administrator of the Plan (unless delegated by the Corporation)
         for purposes of ERISA as it relates to the employees of each Employer.

1.13     Disability or Disabled shall mean a Participant's qualification for
         long-term disability benefits under a plan(s) sponsored by the
         Corporation.

1.14     Early Retirement means termination of employment while eligible for an
         early retirement benefit under the Employer's pension plan covering the
         Participant.

1.15     Effective Date means January 1, 1992.

1.16     Elective Deferrals means any Employer contributions made to a qualified
         cash or deferred arrangement as described at IRC Section 401(k), at the
         election of the Participant, in lieu of cash compensation, and shall
         include contributions made pursuant to a salary reduction election
         described in Sections 3.01 and 3.03 of Article III of the Plan.

1.17     Employee means any employee not covered by a collective bargaining
         agreement entered into by the Employer, unless such agreement, by
         specific reference to the Plan, provides for coverage under the Plan,
         and any employee of such other groups as are authorized to participate
         by the Committee and for whom the Employer is obligated to withhold
         FICA and/or Federal withholding taxes. Notwithstanding the foregoing,
         part-time or full-time interns, contract workers or workers who are
         characterized by the Company as independent contractors are not covered
         by and shall not be eligible to participate in the Plan. No such
         individual shall be covered by, or eligible to participate in the Plan
         even if such individual has been or, in the future may be determined to
         be a common law employee of the Company. A Leased Employee shall mean
         any person

                                       4
<PAGE>

         (other than an employee of the recipient employer) who pursuant to an
         agreement between the recipient employer and any other person (the
         Leasing Organization), has performed services for the recipient
         employer (or for the recipient employer and related persons determined
         in accordance with Section 414(n) of the Code) on a substantially
         full-time basis for a period of at least one year and such services are
         of a type historically performed by employees in the business field of
         the recipient employer. Contributions or benefits provided a Leased
         Employee by the Leasing Organization which are attributable to services
         performed for the recipient employer shall be treated as provided by
         the recipient employer.

         Leased Employees shall not be treated as Employees unless the
         requirements of Section 414(n) require such Leased Employees to be
         included in the definition of Employee in order to meet the Plan
         qualification requirements in that IRC Section and then only if the
         coverage requirements of IRC Section 410(b) would otherwise not be met.
         If a Leased Employee should become an Employee eligible to participate
         in the Plan, such former Leased Employee shall be credited with his
         service as a Leased Employee for purposes of participation and vesting
         under the Plan.

1.18     Employer means, collectively or individually as the context may
         indicate, the Corporation and any other corporation which (a) is a
         member of the same controlled group of corporations as the Corporation
         (as determined pursuant to IRC Sections 414(b), (c), (m), and (o), (b)
         the Committee shall have authorized to adopt the Plan and (c) by action
         of such other's corporation's board of directors shall adopt the Plan
         and become signatory to the Trust Agreement, or any successor to one or
         more of such entities.

1.19     Employer Matching Contribution Account means the account to which
         amounts attributable to Employer Matching Contributions (including any
         additional Employer contribution, as described in Section 3.04(d)(ii),
         other than a contribution made by reason of a salary reduction election
         which may be made to the Plan) shall be credited.

1.20     Employer Matching Contributions means the Employer contribution as
         determined in accordance with Section 3.02.

1.21     Excess Aggregate Contributions means with respect to any Plan Year, the
         excess of: (i) the aggregate Contribution Percentage amounts taken into
         account in computing the numerator of the Contribution Percentage
         actually made on behalf of Highly Compensated Employees for such Plan
         Year, over (ii) the maximum Contribution Percentage amounts permitted
         by the actual Contribution Percentage (the "ACP") test of Section
         3.04(g) of the Plan, determined by reducing contributions made on
         behalf of Highly Compensated Employees in

                                       5
<PAGE>

         order of their Contribution Percentages beginning with the highest of
         such percentages in the manner set forth in Treasury Regulation Section
         1.401(m)-1(e)(2). This leveling method is accomplished by first
         reducing the Contribution Percentage of the Highly Compensated Employee
         with the highest Contribution Percentage to the extent necessary to
         satisfy the ACP test or cause such ratio to equal the Contribution
         Percentage of the Highly Compensated Employee with the next highest
         ratio and then repeating this process until the ACP test is satisfied.

1.22     Excess Contributions means, with respect to any Plan Year, the excess
         of: (i) Before-Tax Contributions (including any Qualified Nonelective
         Contributions and Employer Matching Contributions that are treated as
         Before-Tax Contributions for purposes of the Actual Deferral Percentage
         (the "ADP") test of Section 3.04(C) of the Plan) actually made on
         behalf of Highly Compensated Employees for such Plan Year, over (ii)
         the maximum amount of Before-Tax Contributions permitted by the ADP
         test, determined by reducing contributions made on behalf of Highly
         Compensated Employees in order of their actual deferral ratios
         beginning with the highest of such ratios in the manner set forth in
         Treasury Regulation Section 1.401(k)-1(f)(2). This leveling method is
         accomplished by first reducing the actual deferral ratio of the Highly
         Compensated Employee with the highest actual deferral ratio to the
         extent necessary to satisfy the ADP test or cause such ratio to equal
         the actual deferral ratio of the Highly Compensated Employee with the
         next highest ratio and then repeating this process until the ADP test
         is satisfied. The amount of Excess Contributions for a Highly
         Compensated Employee is then equal to the total of Elective and other
         Contributions taken into account for the ADP test minus the product of
         the Employee's reduced deferral ratio as determined above and the
         Employee's Compensation.

         In the case of a Highly Compensated Employee whose actual deferral
         ratio is determined under the family aggregation rules, the
         determination of the amount of Excess Contributions shall be made as
         follows: the actual deferral ratio shall be reduced in accordance with
         the leveling method set forth in Treasury Regulation Section 1.401(k) -
         1(f)(2) and the Excess Contributions will be allocated among the Family
         Members in proportion to the contributions of each Family member that
         have been combined.

1.23     Excess Deferral has the meaning defined in IRC Section 402(g)(2), but
         excluding amounts described in Section 1105(C)(5) of the Tax Reform Act
         of 1986.

1.24     Employment Date means the date an Employee first performs an Hour of
         Service for the Employer.

1.25     ERISA or Act means the Employee Retirement Income Security Act of 1974
         as amended from time to time.

                                       6
<PAGE>

1.26     Family Member means an individual described in IRC Section 414(q)(6).

1.27     Fiduciary means the Corporation, the Employer, the Trustee, the
         Committee, and any individual, corporation, firm or other entity which
         assumes, in accordance with Article IX, responsibilities of the
         Corporation, the Employer, the Trustee or the Committee respecting
         management of the Plan or the disposition of its assets.

1.28     Forfeiture has the meaning referred to in Section 6.06.

1.29     Former Participant means a Participant whose participation in the Plan
         has terminated but who has not received payment in full of the balance
         in his Individual Account to which he is entitled.

1.30     Hardship means an immediate and heavy financial need of the Participant
         where the Participant establishes, pursuant to Section 7.03, that the
         hardship withdrawal is for: (1) costs directly related to the purchase
         of a principal residence for the Participant (excluding mortgage
         payments); (2) payment of tuition and related educational fees for the
         next 12 months of post-secondary education for the Participant or the
         Participant's spouse, children or dependents (as defined in IRC Section
         152); (3) payments necessary to prevent the eviction of the Participant
         from his principal residence or foreclosure on the mortgage on that
         residence; (4) expenses for medical care described in IRC Section
         213(d) previously incurred by the Participant, the Participant's
         spouse, or any dependents of the Participant (as defined in IRC Section
         152) or necessary for those persons to obtain medical care described in
         IRC Section 213(d); or (5) any other hardship consistent with rules,
         regulations, or other guidelines issued by the IRS.

         Such Hardship is limited to the amount of actual financial need that is
         unavailable to the Participant from the Participant's other sources.
         The determination with respect to the Hardship shall be made by the
         Committee in accordance with Section 7.03, and such determination shall
         be made on a non-discriminatory basis, and applied uniformly to all
         Participants under similar circumstances.

1.31     Highly Compensated Employee means, generally, any eligible Employee
         who, with respect to an Employer, performs services during the
         determination year and is described in any one or more of the following
         groups applicable with respect to the look-back year calculation and/or
         determination year calculation for such determination year:

                  (i) any Employee who at any time during the determination year
         or the look-back year was a five-percent owner;

                  (ii) any Employee who during the look-back year received
         compensation in excess of $75,000 (or its indexed equivalent);

                                       7

<PAGE>

                  (iii) any Employee who during the look-back year both (a)
         received compensation in excess of $50,000 (or its indexed equivalent)
         and (b) was a member of the top-paid group (the top-paid 20% of the
         Employers in the controlled group of corporations on the basis of
         compensation for the Plan Year);

                  (iv) any Employee who during the look-back year both (a) was
         an officer within the controlled group of corporations and (b) received
         compensation in excess of $45,000 (or its indexed equivalent).
         An Employee who is not determined to be a Highly Compensated Employee
         under any of the above four categories must be considered a Highly
         Compensated Employee if, during the determination year, such Employee
         (i) is among the 100 top-paid employees of the controlled group of
         corporations and (ii) meets any one of the categories (ii), (iii), or
         (iv) above for the determination year.

         The dollar amounts set forth in paragraphs (ii), (iii) and (iv) shall
         be adjusted annually for increases in the cost of living in accordance
         with Section 415(d) of the Code effective as of January 1 of the
         calendar year such increase is promulgated and applicable to the Plan
         Year which begins with or within such calendar year.

         For purposes of paragraph (iv), no more than 50 employees (or if less,
         the greater of three employees or 10% of the employees) shall be
         treated as officers. If no officer of the employer is described in this
         paragraph, the highest paid officer of the employer shall be treated as
         highly compensated. A highly compensated employee shall also include a
         Highly Compensated Former Employee. A Highly Compensated Former
         Employee is any employee who separates from service (or was deemed to
         have separated) prior to the Determination Year, performs no service
         for the Employer during the Determination Year, and was a highly
         compensated employee for either the separation year or any
         Determination Year ending on or after the employee's 55th birthday.

         For purposes of these definitions, the following shall be applicable:

                  (i) Compensation shall mean compensation within the meaning of
         Section 415(C)(3) of the Code, including elective salary reduction
         contributions to a cafeteria plan described in Section 125 of the Code
         and a cash or deferred arrangement as described in Section 402(a)(8)
         and 402(h)(1)(B) of the Code.

                                       8
<PAGE>

                  (ii) The Determination Year is the applicable plan year for
         which a determination is being made and the Look-Back Year is the
         12-month period immediately preceding the Determination Year.

                  (iii) The determination of who is a highly compensated
         employee, including the determination of the number and identity of
         employees in the top-paid group, the top 100 employees and the number
         of employees treated as officers shall be governed by Section 414(q) of
         the Code and Treasury Regulation Section 1.414(q)-1T. For this purpose,
         all employers required to be aggregated with the Employer under
         Sections 414(b), (c), (m) or (o) will be treated as a single employer.

                  (iv) The compensation and contributions under the Plan of a
         highly compensated employee who is a 5% owner or in the group
         consisting of the ten highly compensated employees paid the greatest
         compensation during any Determination Year or Look-Back Year shall be
         determined by aggregating such amounts with the compensation and
         contribution of each other employee who is the spouse, lineal ascendant
         or descendant or spouse of a lineal ascendant or descendant of such
         highly compensated employee.

                  (v) The Corporation may make the following elections as
         provided for in Code Section 414(q) and Treasury Regulation Section
         1.414(q)-1T:

               (A) the simplified method for determining highly compensated
               employees in accordance with Code Section 414(q)(12);

               (B) the special rule for determining Highly Compensated Former
               Employees who separated from service before January 1, 1987 in
               accordance with Treasury Regulation Section 1.414(q)-1T Q&A-4(d);

               (C) the calendar year election or the Look-Back Year election in
               accordance with Treasury Regulation Section 1.414(q)-1T
               Q&A-14(b);

               (D) the modification on a consistent and uniform basis of the
               permissible age and service exclusions in accordance with
               Treasury Regulation Section 1.414(q)-1T, Q&A-9(b)(2);

               (E) the inclusion of employees covered under a collective
               bargaining agreement in accordance with Treasury Regulation
               Section 1.414(q)-1T, Q&A-9(b)(2)(ii);

               (F) the inclusion of leased employees in determining the highly
               compensated group in accordance with Treasury Regulation Section
               1.414(q)-1T Q&A-7(b)(4); and

                                       9
<PAGE>

               (G) the transition rule in accordance with Treasury Regulation
               Section 1.414(q)-1T Q&A-15.

1.32     Hour of Service means the first hour for which an employee is paid for
         the performance of duties for the Employer.

1.33     Individual Account means the detailed record kept of the amounts
         credited or charged to each Participant in accordance with the terms
         hereof. Such Individual Account may consist of After-Tax or Before-Tax
         Accounts in a Participating Contribution Account, Non-Participating
         Contribution Account, an Employer Matching Contribution Account, a
         Rollover Account and a Predecessor Plan Account as required or
         determined by the Committee.

1.34     Individual Retirement Account has the meaning referred to in Section
         3.07(C).

1.35     Investment Fund means any fund selected by and approved by the
         Committee for the investment of assets held in the trust fund, pursuant
         to Article IV.

1.36     Investment Manager means a person or entity (as defined in section
         3(38) of ERISA) which has been appointed under the terms of the Trust
         Agreement and which has the power to manage, acquire, or dispose of
         Plan assets and which is either:

                  (a) an investment advisor registered under the Investment
         Advisors Act of 1940, as amended; or

                  (b) a bank as defined in the Investment Advisors Act of 1940,
         as amended; or

                  (c) an insurance company qualified to manage assets of
         retirement plans or perform similar functions under the laws of more
         than one state; and which acknowledges in writing that it is a
         Fiduciary with respect to the Plan.

1.37     IRC or Code means the Internal Revenue Code of 1986, as amended from
         time to time.

1.38     Limitation Year means the twelve (12) month period commencing January 1
         and ending December 31.

1.39     Non-Participating Contributions means Contributions made to the Plan
         pursuant to Section 3.03 of Article III. Contributions may be made (a)
         by the Participant as After-Tax Contributions or (b) through salary
         reduction elections hereinafter provided by the Employer on the
         Participant's behalf as Before-Tax contributions.

                                       10
<PAGE>

1.40     Non-Participating Contribution Account means that portion of a
         Participant's Individual Account attributable to Non-Participating
         Contributions. A Participant's Non-Participating Contribution Account
         shall be further divided into an After-Tax Account and a Before-Tax
         Account.

1.41     Normal Retirement Age means the date a Participant attains the age of
         sixty-five (65).

1.42     Over-The-Road-Driver means any employee who transports materials for
         the Corporation, whose Compensation is based on mileage, and who is
         paid on a weekly basis.

1.43     Participant means any employee who becomes a Participant as provided in
         Article II hereof.

1.44     Participant Loan Fund means an account invested in debt obligations
         evidencing loans to the Participant pursuant to Article XIV or pursuant
         to provisions relating to loans under any Predecessor Plan.

1.45     Participating Contributions means Contributions made to the Plan
         pursuant to Section 3.01. Participating Contributions may be made (a)
         by the Participant as After-Tax contributions or (b) through salary
         reduction elections hereinafter provided by the Employer on the
         Participant's behalf as Before-Tax Contributions.

1.46     Participating Contribution Account means that portion of a
         Participant's Individual Account attributable to Participating
         Contributions. A Participant's Participating Contribution Account shall
         be further divided into an After-Tax Account and a Before-Tax Account.

1.47     Period of Employment means the period which commences on an Employee's
         Employment Date or Reemployment Date and ends on a Severance from
         Service Date. All periods of service shall be aggregated. For purposes
         of determining participation in Article II and vesting in Article VI:

                  (a) periods of employment with an Affiliate which would have
         constituted a twelve-month Period of Employment had the Employee been
         employed by the Employer shall be included as if such periods had been
         performed for the Employer; and

                  (b) periods of employment with the Employer other than as an
         Employee which would have constituted a twelve-month Period of
         Employment had the Employee been employed as an Employee shall be
         included as if such periods had been performed as an Employee.

                                       11
<PAGE>

         With respect to a former Employee who is reemployed within twelve
         months of a Severance from Service Date, such former Employee's Period
         of Severance shall be credited towards his Period of Employment for
         purposes of participation and vesting under the Plan.

                  (c) Service Spanning Rules: If an Employee incurs a Period of
         Severance by reason of a quit, discharge, disability, or retirement and
         then performs an Hour of Service within 12 months of the Severance from
         Service Date, such Employee's Period of Severance and Periods of
         Employment prior to the Severance from Service Date shall be included
         in determining his Periods of Employment for purposes of participation
         and vesting under the Plan. Further, if an Employee incurs a Period of
         Severance by reason of a quit, discharge or retirement during an
         absence from service of 12 months or less for any reason other than a
         quit, discharge or retirement or death, and then performs an Hour of
         Service within 12 months of the date on which the Employee was first
         absent from service, such Period of Severance and Periods of Employment
         prior to the Severance from Service Date shall be included in
         determining the Employee's Periods of Employment for purposes of
         participation and vesting under the Plan. Notwithstanding anything
         herein to the contrary, a Period of Employment shall include periods of
         employment with an employer prior to the date such employer becomes
         related to the Company by purchase, acquisition, merger consolidation
         or otherwise, to the extent such service has been approved by
         resolution of the Committee.

         Notwithstanding anything herein to the contrary, a period of qualified
         military service as defined in IRC Section 414(u) shall be included in
         a Participant's Period of Employment under the Plan in accordance with
         the requirements of such Section 414(u).

1.48     Period of Severance means a period of time commencing on an Employee's
         Severance from Service Date and ending on his subsequent Reemployment
         Date. A one-year Period of Severance is a 12-consecutive month period,
         beginning on the Severance from Service Date and ending on the first
         anniversary of such Date, provided that the Employee does not perform
         an Hour of Service for the Employer during such 12-consecutive month
         period.

1.49     Plan means the BASF Corporation Employee Savings Plan as contained
         herein or as duly amended.

1.50     Plan Year means the twelve (12) month period beginning on each January
         1 and ending on each December 31.

                                       12
<PAGE>

1.51     Predecessor Plan means any plan:

                  a) in which a Participant participated before becoming a
         Participant of this Plan, and

                  (b) from which his accounts were transferred into the Trust,
         and

                  (c) which is designated by the Committee as a Predecessor
         Plan.

1.52     Predecessor Plan Account means the account to which amounts
         attributable to a Participant's account under a Predecessor Plan have
         been credited.

1.53     Qualified Nonelective Contributions has the meaning defined in IRC
         Section 401(m)(4)(c).

1.54     Qualified Plan Rollover Contribution has the meaning referred to in
         Section 3.07(b).

1.55     Reemployment Date means the date, following a Severance from Service
         Date, on which an Employee again performs an Hour of Service.

1.56     Rollover Account means an account used to receive transfers or
         rollovers in accordance with Section 3.07.

1.57     Rollover Contribution has the meaning referred to in Section 3.07.

1.58  Severance from Service Date means the earlier of the following dates:

                  (a) the date on which an Employee quits, retires, is
         discharged, becomes disabled or dies,

                  (b) the first anniversary date of the beginning of a period in
         which an employee remains absent from service (with or without pay)
         with the employer for any reason other than quit, retirement,
         discharge, disability or death. Such absence includes, by the way of
         example without limitation: vacation, holiday, sickness, leave of
         absence or layoff.

         To the extent not already credited, service shall be credited solely
         for purposes of determining whether a Severance from Service Date has
         occurred with respect to an Employee who is absent from work regardless
         of whether the Employee is paid for such absence but only through the
         second anniversary of the first date of such absence:

                  (a)  by reason of the pregnancy of the Employee,

                                       13
<PAGE>

                  (b)  by reason of the birth of a child of the Employee,

                  (c) by reason of the placement of a child with the Employee in
         connection with the adoption of such child by such Employee, or

                  (d) for purposes of caring for such child for a period
         beginning immediately following such birth or placement.

         Further, the Committee may request that the Employee furnish any
         information the Committee may require to establish that the absence is
         for the reasons hereinbefore provided and the number of days for which
         there was such an absence. In the event such information is not
         submitted in a timely manner, no service shall be credited pursuant to
         this paragraph.

1.59     Special Stock Fund means the account which holds certain assets from
         former qualified plans as described in Section 3.06.

1.60     Spouse means the person to whom the Participant is legally married.

1.61     Trust means the trust established pursuant to the Trust Agreement to
         hold the assets of the Plan.

1.62     Trust Agreement means the agreement entered into between the
         Corporation and the Trustee pursuant to Article VIII hereof.

1.63     Trustee means such individual, individuals or financial institution, or
         a combination of them as shall be designated in the Trust Agreement to
         hold in trust any assets of the Plan for the purpose of providing
         benefits under the Plan, and shall include any successor trustee to the
         trustee initially designated thereunder.

1.64     Valuation Date means each business day. The Trust shall be valued at
         fair market value at the close of business on each business day. The
         Committee may from time to time value the Trust as of any other date as
         it deems desirable.

                                       14
<PAGE>

ARTICLE II

ELIGIBILITY AND PARTICIPATION

2.01  Eligibility.

      A) Any Employee who was eligible to participate in the Plan or who was a
Participant of the Plan on December 31, 1991 shall continue to be eligible to
participate in the Plan or continue as a Participant in the Plan on January 1,
1992.

      B) Any other Employee shall be eligible to participate in the Plan upon
completion of a one-year Period of Employment and may enroll in the Plan as of
the first day of the month coincident with or next following satisfaction of
this requirement. An Employee shall be eligible to participate in the Plan on
the date he first performs an Hour of Service for his Employer.

      In determining the completion of a one-year Period of Employment for
eligibility to participate in the Plan, an Employee who completes the one-year
Period of Employment requirement on the first anniversary of his Employment Date
satisfies the minimum service requirement as of such date. In the case of an
Employee who fails to complete a one-year Period of Employment on the first
anniversary of his Employment Date, all Periods of Employment shall be
aggregated so that a one-year Period of Employment shall be completed as of the
date the Employee completes 12 months of service (30 days are deemed to be a
month in the aggregation of fractional months) or 365 days of service.

      2.02 Participation. Participation in the Plan is voluntary. In order to
become a Participant, an eligible Employee must complete an application form
provided by the Committee and make an investment selection on or before the
fifteenth (15th) day of the month preceding the month in which it is to be
effective. Each eligible Employee, in order to become a Participant, must have
Participating Contributions contributed on his behalf to the Plan in accordance
with Section 3.01 of Article III hereof. In the event an Employee does not
participate when initially eligible he may elect to participate effective the
first day of any subsequent month if he is then eligible by filing an
application on a timely basis.

      Once a Participant, an Employee shall remain a Participant until his
Severance from Service Date. In the event either an Employee ceases to be a
Participant due to his termination of employment or is a former eligible
Employee and is later reemployed as an Employee, he shall be eligible to
participate immediately on his Reemployment Date. The Employee may enroll in the
Plan as of the first day of the month coincident with or next following his
Reemployment Date and shall resume participation by filing an application for
reenrollment by the fifteenth day of the month of reemployment.

                                       15
<PAGE>

      A Participant who transfers to a noncovered status shall continue to be
considered a Participant but shall no longer be eligible to make contributions
pursuant to Article III. An eligible Employee shall commence Plan participation
as of the first pay cycle following completion of the enrollment process
established by the Committee, or as soon thereafter as is administratively
practicable. The Committee may permit enrollment through the completion and
filing of forms provided for this purpose and/or through electronic or computer
means, or as otherwise determined by the Committee in its sole discretion.

      2.03 Beneficiary Designation. Upon commencing participation, each
Participant shall designate a Beneficiary on forms furnished by the Committee.
Such Participant may then from time to time change his designated Beneficiary by
written notice to the Committee and, upon such change, the rights of all
previously designated Beneficiaries to receive any benefits under this Plan
shall cease. It is specifically provided that the Spouse of the Participant
shall consent in writing to any Beneficiary designation other than the Spouse.
Such consent shall be witnessed by a notary public or a representative of the
Committee. The Committee may accept a Beneficiary designation without the
consent of the Spouse if there is no Spouse, the Spouse cannot be located, or in
such other circumstances as may be prescribed by regulations. Any Spousal
consent shall only be applicable to the Spouse granting such consent. If, at the
date of death of the Participant, no duly designated Beneficiary exists, or if
the Beneficiary designated shall have died prior to the death of the
Participant, or if the Participant has revoked a prior designation by a writing
filed with the Committee without having filed a new designation, then any death
benefits which would have been payable to the Beneficiary shall be payable to
the Participant's Spouse, if any, at the date of the Participant's death; if no
such Spouse is living, to the Participant's children, equally; or if none
survive, then to the Participant's estate.

ARTICLE III

CONTRIBUTIONS

      3.01 Participating Contributions. A Participant may elect to have
contributed to the Plan on his behalf up to 4% of his Compensation as his
Participating Contribution percentage. Such Contribution may be made as either
Before-Tax Contribution or an After-Tax Contribution or any combination thereof
in 1% increments (except to the extent of any limitation imposed by the Code).
However, in no event, may there be more than a total of 4% of Compensation
contributed as Participating Contributions.

      Participating Contribution elections shall be made on appropriate forms to
be provided by the Committee. Such forms shall authorize the Employer to deduct
from the Participant's pay thereafter payable to the Participant in the case of
a Participant's

                                       16
<PAGE>

After-Tax contributions or to reduce the Participant's pay in the case of a
Participant's Before-Tax Contributions an amount produced by multiplying the
Participating Contribution percentage elected by the Participant by his
Compensation. Deductions or reductions shall commence on the date the
contribution election shall become effective.

      Once contributed to the Plan, Participating Contributions shall be
credited to a Participant's Participating Contribution Account at the end of
each month and shall be further maintained in a Before-Tax Account or an
After-Tax Account. A Participant's designation of a Participating Contribution
percentage shall continue in effect until changed by the Participant, as
hereinafter provided unless changed by recharacterization.

      A Participant may, on an appropriate form provided by the Committee,
change his Participating Contribution percentage to any percentage prescribed in
this Section 3.01 to become effective pursuant to Section 3.05.

      A Participant may elect to cease future Participating Contributions to the
Plan. Such election shall become effective pursuant to Section 3.05 and shall
automatically be treated as an election to cease future Non-Participating
Contributions. In the event any such Participant desires thereafter to have
contributions made on his behalf, he shall be allowed to do so as of the first
pay received in any subsequent month by making a timely and proper application
on a form as provided by the Committee.

      The employer shall pay to the Trustee each Participant's Participating
Contributions within one (1) month following the month such Participating
Contribution was deducted or reduced from the Participant's Compensation but no
later than 30 days after the end of the Plan Year.

      3.02 Employer Matching Contributions. Concurrently with the Participant's
Participating Contributions, the Employer shall contribute to the Plan for the
account of each Participant an amount equal to each such Participant's
Participating Contributions made to the Plan. Employer Matching Contributions
with respect to a month shall be credited to each Participant's Employer
Matching Contribution account.

      3.03 Non-Participating Contributions. A Participant who has elected to
make Participating contributions of 4% of Compensation may elect to have
contributed to the Plan on his behalf an additional 1% to 10% of his
Compensation as his Non-Participating Contribution. Effective November 1, 1992,
a Participant may elect to have contributed to the Plan on his behalf an
additional 1% to 12% of his Compensation as his Non-Participating Contribution.
Non-Participating Contributions may be either Before-Tax Contributions or
After-Tax Contributions or any combination thereof in increments of 1%.

                                       17
<PAGE>

      Once contributed to the Plan, Non-Participating Contributions shall be
credited to a Participant's Non-Participating Contribution Account and shall
further be maintained as a Before-Tax Account or an After-Tax Accounts directed
by the Participant. Non-Participating Contributions, as provided in this Section
3.03, shall not be matched by Employer Matching Contributions.

      Any such Non-Participating Contributions, whether they be Before-Tax
Contributions or After-Tax Contributions, shall be made by payroll deduction or
reduction at the same time and in the same manner as Participating Contributions
as provided in Section 3.01.

      A Participant's designation of a Non-Participating Contribution percentage
shall continue in effect until changed by the Participant, as hereinafter
provided. A Participant may, on an appropriate form provided by the Committee,
change his Non-Participating Contribution percentage to any percentage
prescribed in this Section 3.03 to become effective pursuant to Section 3.05.
Such designation shall also allow a Participant to change the percentage
applicable to After-Tax Contributions, to be effective as of the aforementioned
date.

      A Participant may elect to cease future Non-Participating Contributions to
the Plan. Such election shall become effective pursuant to Section 3.05. In the
event any such Participant desires thereafter to have Non-Participating
Contributions made on his behalf, he shall be allowed to do so as of the first
of any subsequent month by making a timely and proper application on a form
provided by the Committee.

      The Employer shall pay to the Trustee each Participant's Non-Participating
Contributions within one (1) month following the month such Non-Participating
Contributions was deducted or reduced from the Participant's Compensation.

      3.04 Maximum Deductible Contributions and Statutory Limitation on
Contributions. In no event shall the Employer be obligated to make a
Contribution for a given Plan Year in excess of the maximum amount deductible
for the Employer under IRC Section 404(a)(3)(A), or any statute or rule of
similar import.

      Notwithstanding any other provision in the Plan relating to Elective
Deferrals, Employer Matching Contributions and/or employee contributions, the
following provisions shall control:

      (a) Effective for Plan Years beginning after December 31, 1987, the amount
of Elective Deferrals for a Participant under the Plan (and any other plan
maintained by the Employer or an Affiliate) for his taxable year shall not
exceed $7,000 (or such increased amount reflecting changes in the cost of living
in the manner described at Code Section 402(g)(5)). Any Excess Deferral may be
distributed to the Participant in accordance with the rules of subsection (b)
hereof.

                                       18
<PAGE>

      (b) To the extent the Participant has made Elective Deferrals to the Plan
in excess of the amount set forth is subsection (a), such Excess Deferrals may
be distributed to him no later than the 15th day of April following the end of
the taxable year during which such Elective Deferrals are made. The amount of
Excess Deferrals that may be distributed hereunder with respect to a Participant
for a taxable year shall be reduced by any Excess Contributions previously
distributed or recharacterized for the Plan Year beginning in such taxable year.

      If, for a taxable year, a Participant makes Elective Deferrals to this
Plan and to any other plan or arrangement, he may allocate the amount of any
Excess Deferrals for such taxable year among such plans. No later than the first
day of March following the close of the taxable year during which the Excess
Deferrals are made, the Participant shall notify the Committee in writing of the
amount of the Excess Deferrals allocated to this Plan. Such amount may then be
distributed (including income thereon) to the Participant no later than the
following April 15th.

      Income allocable to Excess Deferrals is equal to the allocable gain or
loss for the taxable year of the individual. Income on Excess Deferrals for the
taxable year of the individual shall be allocated by multiplying the income for
the taxable year allocable to Elective Deferrals by a fraction, the numerator of
which is the Excess Deferrals by the Employee for the taxable year and the
denominator of which is the sum of (i) the total account balance of the employee
attributable to Before-Tax Contributions as of the beginning of the taxable
year, plus (ii) the Employee's Before-Tax Contributions for the taxable year.

      (c) For each Plan Year beginning after December 31, 1986, the Actual
Deferral Percentage for the group of eligible Highly Compensated Employees shall
bear a relationship to the Actual Deferral Percentage for all other eligible
Employees that meets either of the following tests:

         (i) the Actual Deferral Percentage for the group of eligible Highly
         Compensated Employees is not more than the Actual Deferral Percentage
         of all other eligible Employees multiplied by 1.25; or

         (ii) the excess of Actual Deferral Percentage for the group of eligible
         Highly Compensated Employees over that of all other eligible Employees
         is not more than 2 percentage points, and the Actual Deferral
         Percentage for the group of eligible Highly Compensated Employees is
         not more than the Actual Deferral Percentage of all other eligible
         Employees multiplied by 2.

      (d) For purposes of computing the Actual Deferral Percentages in
subsection (c) hereof for such Plan Year, the Employer contributions on behalf
of any Participant shall include:

                                       19
<PAGE>

         (i) any Employer contributions made pursuant to the Participant's
         elections; and

         (ii) at the election of the Corporation, Employer Matching
         Contributions that meet the withdrawal and nonforfeitability
         restrictions of IRC Section 401(k)(2)(B) and (C) and/or Qualified
         Nonelective Contributions providing such Employer Matching
         Contributions and Qualified Nonelective Contributions satisfy the
         requirements of Code Section 401(a)(4). Such contributions made at the
         election of the Corporation shall be allocated in a uniform and
         non-discriminatory manner among persons similarly situated.

         (iii) for purposes of determining the Actual Deferral Percentage for
         any Highly Compensated Employee who is among the group of the 10 Highly
         Compensated Employees paid the greatest compensation during the year,
         such Actual Deferral Percentage shall be the greater of:

                  (a) the Actual Deferral Percentage determined by combining the
                  Elective Deferrals and compensation of the Highly Compensated
                  Employee and all other Family Members who are Highly
                  Compensated Employees without regard to the family attribution
                  rules, and

                  (b) the Actual Deferral Percentage determined by combining the
                  Elective Deferrals and Compensation of all eligible Family
                  Members.

      (e) For purposes of applying the provisions of subsection (C) hereof, the
Actual Deferral Percentage taken into account for any Highly Compensated
Employee who is a Participant in two or more cash or deferred arrangements of
the Employer shall be the sum of the Actual Deferral Percentages for such Highly
Compensated Employee under each of such arrangements.

      (f) Except to the extent provided under rules provided by the Secretary of
the Treasury, notwithstanding the distribution of any portion of an Excess
Deferral under subsection (a) or (b) hereof, such portion shall, for purposes of
applying subsections (c) through (f) hereof, be treated as an Employer
contribution.

      (g) for each Plan Year beginning after December 31, 1986, the Contribution
Percentage for the group of eligible Highly Compensated Employees shall bear a
relationship to the Contribution Percentage for all other eligible Employees
that meets either of the following tests:

         (i) the Contribution Percentage for the group of eligible Highly
         Compensated Employees is not more than the Contribution Percentage of
         all other eligible Employees multiplied by 1.25; or

         (ii) the excess of the Contribution Percentage for the group of
         eligible Highly Compensated Employees over that of all other eligible
         Employees is not more than 2 percentage points, and the Contribution
         Percentage for the group of eligible Highly Compensated Employees is
         not more than the Contribution Percentage of all other eligible
         Employees multiplied by 2.

      (h) (i) If two or more plans of the Employer to which Employer Matching
Contributions, Employee Contributions, or Elective Deferrals are made are
treated as one plan for purposes of IRC Section 410(b), such plans shall be
treated as one plan and (ii) if a Highly Compensated Employee participates in
two or more plans of the Employer to which such contributions are made, all such
contributions shall be aggregated.

                                       20
<PAGE>

      (i) any Employee who is eligible to make an Employee contribution (or, if
the Corporation takes elective contributions into account, elective
contributions) or to receive an Employer Matching Contribution shall be
considered an eligible Employee. In addition, if an Employee contribution is
required as a condition of participation in the Plan, any Employee who would be
a Participant in the Plan if such Employee made such a contribution shall be
treated as an eligible Employee on behalf of whom no Employer contributions are
made.

      (j) For purposes of computing the Contribution Percentages, the
Corporation may elect to take into account for any Plan Year Elective Deferrals
and/or Qualified Nonelective Contributions allocated to a Participant's account
under the Plan or any other plan it sponsors. Such contributions made at the
election of the Corporation shall be allocated in a uniform and
non-discriminatory manner among persons similarly situated.

      For purposes of determining the Contribution Percentage for any Highly
Compensated Employee who is among the 10 Highly Compensated Employees paid the
greatest compensation during the year, such Contribution Percentage shall be the
greater of:

             (a) the Contribution Percentage determined by combining After-tax
             contributions, Employer Matching Contributions and compensation of
             the Highly Compensated Employee and all other Family Members who
             are Highly Compensated Employees without regard to the family
             attribution rules, and

             (b) the Contribution Percentage determined by combining the
             After-tax contributions, Employer Matching Contributions and
             compensation of all eligible Family Members.

      (k)  Notwithstanding anything herein to the contrary, in satisfying the
Actual Deferral Percentage test set forth in Section 3.04(C) and the
Contributions Percentage test set forth in Section 3.04(g), multiple use of the
alternative rules set forth in Section 3.04(c)(ii) and 3.04(g)(ii) shall not be
permitted.

      Multiple use of the alternative rules occurs if the sum of the Actual
Deferral Percentage for the entire group of eligible Highly Compensated
Employees and the Contribution Percentages of the group of eligible Highly
Compensated Employees exceeds the "aggregate limit". The "aggregate limit" is
the greater of:

             (i)  the sum of--
                (a) 1.25 times the greater of (1) the Actual Deferral Percentage
                of the group of eligible non-Highly Compensated Employees, or
                (2) the Contribution Percentages of the group of eligible
                non-Highly Compensated Employees, and

                                       21
<PAGE>

                (b) Two percentage points plus the lesser of (1) or (2) above.
                In no event shall this amount exceed twice the lesser of (1)
                or (2) above; OR

             (ii) the sum of--
                (a)  1.25 times the lesser of (1) or (2) above, and
                (b) Two percentage points plus the greater of (1) or (2) above.
                In no event, however, may this amount exceed twice the greater
                of (1) or (2) above.

      (l)The Plan shall be treated as satisfying the requirements of subsections
(C) and (g) hereof for any Plan Year if, after the close of such Plan Year in
which Excess Contributions or Excess Aggregate Contributions arose and within 12
months after the close of the Plan Year, (i) the amount of the Excess
Contributions and Excess Aggregate Contributions for such Plan Year (and income
thereon, as determined below) is designated by the Employer as a distribution of
Excess Contributions or Excess Aggregate Contributions (and income thereon, as
determined below) and are distributed to the appropriate Highly Compensated
Employees; (ii) in the case of Excess Contributions, to the extent provided in
regulations issued by the Secretary of the Treasury, and Employee election to
treat such Excess Contribution as distributed to and recontributed by the
Employee to the Plan, or (iii) in the case of Excess Aggregate Contributions, to
the extent such contributions are forfeitable, are forfeited.

      The amount of Excess Contributions to be distributed or recharacterized
under this Section shall be reduced by Excess Deferrals previously distributed
for the taxable year ending in the same Plan Year.

      Failure to correct Excess Contributions within 12 months after the close
of the Plan Year for which they were made will cause the Plan to fail to satisfy
the requirements of IRC Section 401(k)(3) for the Plan Year for which the Excess
Contributions were made and for all subsequent years they remain in the Trust.
The Employer will be liable for a 10% excise tax on the amount of Excess
Contributions unless they are corrected within 2-1/2 months after the close of
the Plan Year for which they are made.

      Recharacterized Excess Contributions shall remain subject to the
nonforfeitability requirements and distribution limitations that apply to
Elective Deferrals.

      In the event of termination of the Plan during the Plan Year in which an
Excess Contribution or Excess Aggregate Contribution arose, the corrective
distribution shall be made as soon as administratively feasible after the date
of termination of the Plan, but in no event later than 12 months after the date
of termination. If the entire account balance of a Highly Compensated Employee
is distributed during the Plan Year in which an Excess Contribution or Excess
Aggregate Contribution arose, the distribution shall be deemed to have been a
corrective distribution of Excess Contributions or Excess Aggregate
Contributions (and income thereon) to the extent that a corrective distribution
would otherwise have been required.

                                       22
<PAGE>

      Income allocable to Excess Contributions is equal to the allocable gain or
loss for the Plan Year. Income on Excess Contributions for the Plan Year shall
be allocated by multiplying the income for the Plan Year allocable to Excess
Contributions by a fraction, the numerator of which is the Excess Contributions
for the Employee for the Plan Year and the denominator of which is equal to the
sum of (i)the total account balance of the employee attributable to Before-Tax
Contributions as of the beginning of the Plan Year, plus (ii) the Employee's
Before-Tax Contributions for the Plan Year.

      Income allocable to Excess Aggregate Contributions is equal to the
allocable gain or loss for the Plan Year. Income on Excess Aggregate
Contributions for the Plan Year shall be allocated by multiplying the income for
the Plan Year allocable to Employee After-tax Contributions, Employer Matching
Contributions and amounts treated as Employer Matching Contributions by a
fraction, the numerator of which is the Excess Aggregate Contributions for the
Employee for the Plan Year and the denominator of which is equal to the sum of
(i) the total account balance of the Employee attributable to Employee After-tax
Contributions and Employer Matching Contributions, and amounts treated as
Employer Matching Contributions as of the beginning of the Plan Year; plus (ii)
the Employee After-tax Contributions and Employer Matching Contributions, and
amounts treated as Employer Matching Contributions for the Plan Year.

      3.05 Election. All elections to start, modify or suspend a Contribution
pursuant to Article III must be submitted in a timely manner and in accordance
with the procedures established by the Committee, with such election being
implemented as soon as administratively practicable following its receipt.

      3.06 Predecessor Plan Accounts. Amounts transferred to the Plan on behalf
of a Participant from a Predecessor Plan shall be held in the Trust pursuant to
the terms of this Plan and allocated appropriately among the Participant's
Participating Contribution Account and Non-Participating Contribution Account
and the Before-Tax and After-Tax Accounts maintained thereunder, the
participant's Employer Matching Account and the Rollover Account. In the event
any Participant or group of Participants hold assets from a former qualified
plan in the form of stock of a previous employer, such assets shall be retained
in a Special Stock Fund until liquidated pursuant to Section 4.03. Any interest
received on the accounts such as dividends or interest payments shall be
invested according to the individual's most recent investment direction for Plan
Contributions.

      3.07 Rollover Contributions. An Employee (whether or not otherwise a
participant) may make a Rollover Contribution to the Plan at any time consisting
of either a "Qualified Plan Rollover Contribution" or an "Individual Retirement
Account". In no event shall a rollover contribution occur hereinunder if it
would adversely affect the tax-qualified status of the Plan under Section 401(a)
of the Code (or the qualified status of the Plan's cash or deferred arrangement
under Section 401(k) of the Code).

                                       23
<PAGE>

      (a) Any Rollover Contribution shall be held in a separate account, shall
be invested in accordance with the direction of the Participant pursuant to
Article IV, shall be distributed in the same manner and at the same time as
described in Article VI with respect to a distribution to such Employee of
benefits under the Plan.

      (b) "Qualified Plan Rollover Contributions" means the balance to the
credit of an Employee under a profit sharing, pension or stock bonus plan
meeting the requirements of IRC Section 401(a), the balance to the credit of an
Employee under a profit sharing, pension or stock bonus plan in connection with
the liquidation or sale of the subsidiary or other transfer within the meaning
of IRC Section 402(a)(6) for which the Employee works, paid to an Employee in
one or more distributions which constitute a "lump sum distribution" within the
meaning of IRC Section 402(e)(4)(A) (determined without reference to IRC Section
402(e)(4)(B) and (H)) or within one taxable year of the Employee on account of a
termination of the plan or, in the case of a profit-sharing plan or stock bonus
plan, a complete discontinuance of contributions under such plan. The Employee
may transfer any portion of the cash he receives in such distribution (or the
cash proceeds of the sale of other property received in such distributions) to
the trust under this Plan on or before the 60th day after the day on which he
received the property distributed. The maximum amount which may be transferred
shall not exceed the fair market value of all property received in the
distribution reduced by (a) the sum of (i) the amount of the Employee's own
contributions under such Plan and (ii) any other amounts considered as
contributed by him (determined by applying IRC Section 72(f) less (b) any
amounts previously distributed to him from such other plan and not includible in
his gross income. The amount so transferred must consist of cash distributed
from such other plan or any portion of the cash proceeds from the sale of
distributed property other than cash, to the extent permitted by IRC Section
402(a)(6)(D).

      (c) "Individual Retirement Account" means the entire amount received by an
Employee from an individual retirement account representing the entire amount in
the account (the "qualifying amount") if no part of the amount in the account is
attributable to any source other than a rollover contribution from (i) an
employee's trust described in IRC Section 401(a), which is exempt from tax under
IRC Section 501(a), or (ii) a qualified annuity plan meeting the requirement of
IRC Section 403(a) and, in the case of an individual retirement account, any
earnings on such sums. An Individual Retirement Account will be accepted only if
the entire qualifying amount was received by the Employee in cash and only such
cash amount is included in the Individual Retirement Account.

                                       24
<PAGE>

ARTICLE IV

INVESTMENT OPTIONS AND FUNDS

4.01     Investment Options. All Contributions credited to a Participant's
         account shall be invested in one or more Investment Funds. If
         investments are to be made to more than one Investment Fund,
         investments shall be made in increments of one percent (1%).

4.02     Direction of Investments. Each Participant shall have the right to
         direct that the entire amount of the Contributions being allocated to
         his Individual Account during a Plan Year be invested in one or more of
         the Investment Funds offered under the Plan. The Committee has the
         authority to designate the Investment Funds to be offered under the
         Plan and to make any changes to the Investment Funds from time to time
         as may be necessary in the interest of Participants.

      Investment Fund elections shall be made on forms provided by the
Committee, and each Participant shall be provided with a summary describing each
Investment Fund and an appropriate election form at the time he becomes a
Participant.

      All requests for changes in the allocation of Contributions shall be
addressed in writing to the Committee.

      Each Participant shall have the right to change his election concerning
the Investment Fund in which Contributions allocated to him are to be invested.
Any such change shall be applicable as soon as administratively practicable
after the Participant makes a revised investment election in accordance with
procedures established by the Committee for this purpose; provided, however,
that no more than one such revised election shall be effective on any given
Valuation Date. Any such revised election shall continue to apply until the
Participant makes another change of investment election. The Committee may
permit investment elections to be made through the completion and filing of
forms provided for this purpose and/or through electronic, telephonic or
computer means, or as otherwise determined by the Committee in its sole
discretion.

4.03     Investment Fund Transfers. Each participant shall have the right to
         change his investment option election concerning the Investment Fund or
         Funds in which his prior Contributions are invested (other than the
         Special Stock Funds) in accordance with Section 4.02. Any such change
         shall be applicable as soon as administratively practicable after the
         Participant makes a revised investment election in accordance with
         procedures established by the Committee for this purpose; provided,
         however, that no more than one such revised election shall continue to
         apply until the Participant makes another change of investment
         election.

                                       25
<PAGE>

      Notwithstanding the above, the Committee, in its sole discretion, may
determine the frequency of such changes and the extent to which any Investment
Fund transfer may occur with respect to the Special Stock Fund.

      Each such election shall be in increments of one percent (1%), or in such
other percentage as determined by the Committee from time to time.

      Effective for the period commencing on January 1, 1989 and ending on
November 30, 1990, any Participant who had an account in a Special Stock Fund
invested in either shares of United Technologies Corporation or shares of Dow
Chemical Company had the right by written request to the Committee to have made
a one-time election to have shares held in such Special Stock Fund liquidated
and the proceeds reinvested in any other Investment Fund of the Plan. Any such
election was applicable as of the last day of the calendar month in which the
election was received or earlier if determined to be administratively feasible
by the Committee.

      If as of November 30, 1990, a Participant continued to have shares held in
either Special Stock Fund, such shares shall be liquidated by the Committee at
the time and in the manner it determines in its discretion. The proceeds of such
sale or sales shall then be reinvested pursuant to such Participant's most
recently executed investment directions.

ARTICLE V

Allocations to Individual Accounts

      5.01 Individual Accounts. The Committee shall establish and maintain an
Individual Account in the name of each Participant to which the Committee shall
credit all amounts contributed by or on behalf of each such Participant pursuant
to Article III and shall credit or debit all amounts of income, gain, loss or
distributions pursuant Articles IV, VI and VII. A Participant's Participating
Contribution Account and Non-Participating Contribution Account shall be further
maintained as Before-Tax and/or After-Tax Accounts within each general account
and such sub-accounts as may be necessary.

      5.02 Allocation of Contributions. A Participant's Contributions shall be
allocated to his Participating After-Tax or Non-Participating After-Tax Account,
as applicable, and all Employer Matching Contributions made on his behalf shall
be allocated to his Employer Matching Account as of each Valuation Date.

      Allocations of Employer Matching Contributions and forfeitures, if
applicable, shall not be discontinued or decreased because of the Participant's
attainment of any age.

                                       26
<PAGE>

      5.03 Allocation of Adjustment. As of each Valuation Date, the Committee
shall adjust each Individual Account for the period elapsed since the last
preceding Valuation Date by adding together all income received and accrued,
realized and unrealized profits, and deducting therefrom all taxes, charges or
expenses and any realized or unrealized losses which may have been sustained.

      5.04 Equitable Allocations. The Committee shall establish accounting
procedures for the purpose of making the allocations,
valuations and adjustments to Participants' accounts provided for in this
Article V.

      5.05 Maximum Additions. Anything herein to the contrary notwithstanding,
the Plan shall be administered in a manner which will result in its complying
with the provisions of IRC Section 415.

      The limitation on aggregate benefits from a defined benefit plan and a
defined contribution plan which is contained in IRC Section 415, as amended
shall be complied with by a reduction (if necessary) in the Participant's
benefits under the defined benefit plan(s) (in accordance with the provisions of
the said plan(s)) before a reduction of any benefit in such defined contribution
plan.

      If a Participant's After-Tax Contributions under the Plan in any
Limitation Year would cause the annual additions on his behalf to exceed the
maximum permitted annual additions under IRC Section 415, the Committee shall
return such excess After-Tax Contributions to the Participant. For purposes of
this Section 5.05, a Participant's Non-Participating After-Tax Contributions
shall be returned to the Participant before a Participant's Participating
After-Tax Contributions are returned. If any Participant's Participating
After-Tax Contributions are returned to the Participant, corresponding Employer
Matching Contributions shall be reduced.

      If as a result of the allocation of forfeitures, a reasonable error is
made in estimating a Participant's Compensation, or is made under other facts
and circumstances as the Committee shall reasonably determine, the annual
additions for a Participant shall exceed the limitations of IRC Section 415 for
a Limitation Year, the amount of such excess shall not be deemed annual
additions for such Limitation Year, shall be held unallocated in a suspense
account for such Participant and shall be used to reduce Employer contributions
for the next Limitation Year (and succeeding Limitation Years, if necessary) for
that Participant if such Participant remains an active Participant under the
Plan as of the end of the Limitation Year. If, however, such Participant is not
an active Participant under the Plan as of the end of the Limitation Year, then
such excess amounts shall be held unallocated in a suspense account for the
Limitation Year and allocated to the Individual Accounts of the remaining
Participants in the next succeeding Limitation Year, subject to the limitations
of IRC Section 415, to reduce any Employer contributions which would constitute
annual additions and which may be made to the Individual Accounts of
Participants for that Limitation Year. Any such suspense account

                                       27
<PAGE>

shall not be valued and no gains and losses of the Trust shall be allocated to
such suspense account. Notwithstanding anything contained herein or in the Trust
Agreement to the contrary, if the Plan is regarded as terminated, the amount
held in the suspense account shall be paid to the Employer that contributed such
amount.

      Notwithstanding anything contained herein or in the Trust Agreement to the
contrary, pursuant to Section 13.06, the Committee may take such actions as it
regards advisable, including deeming Employer contributions which would
otherwise be or have already been credited to a Participant's Individual Account
made under a mistake of fact and returnable to the Employer that made such
contributions, in order to fulfill the provisions of this Section 5.05.

ARTICLE VI

DISTRIBUTIONS AND VESTING

      6.01 Vesting of Participant's Accounts. A Participant shall be fully
vested at all times in his Participating Contribution Account, Non-Participating
Contribution Account, all Predecessor Plan Accounts and Rollover Accounts.

      6.02 Vesting of Employer Matching Account. (a) A Participant shall be
fully vested in his Employer Matching Contribution Account when he dies, incurs
a Disability, incurs an Early Retirement, attains his Normal Retirement Age or
upon an involuntary termination that is the result of an illness or the
elimination of his job title or any other involuntary termination, that deems an
affected Participant fully vested, other than terminations caused by a
Participant's failure to comply with employment rules or standards.

      (b) Except as provided in Section 6.02(a), a Participant who is employed
by an Employer on or after January 1, 1989 shall be vested in his Employer
Matching Contribution Account once he has completed a two-year Period of
Employment.

      (c)  In the event of amendment of the vesting schedule outlined in
subsection (b) above, for every Employee who is a Participant on the amendment
adoption date or the amendment effective date, whichever is later, the
nonforfeitable percentage (determined as of that date) of the Participant's
right to the Employer Matching Account may not be less than the Participant's
percentage determined under the Plan without regard to the amendment.

      6.03 Retirement. A Participant shall be deemed to have retired for
purposes of this Plan and IRC Section 72(t) if his Severance from Service Date
occurs after attainment of age 55. Upon the retirement of a Participant in
accordance with the provision of this Section 6.03, the Participant shall be
eligible to receive the vested

                                       28
<PAGE>

portion of his Individual Account determined as of the later of the Valuation
Date coincident with or immediately following his Severance from Service Date or
the date the Committee is notified of his retirement. Such distribution shall be
adjusted to reflect interest earned from the Valuation Date to the date of
distribution as per Section 7.04, except that no interest adjustment will be
made for any funds held in a Special Stock Fund in the Trust. The Committee
shall thereupon direct the Trustee to distribute to such Participant such amount
in accordance with Section 6.07 hereof.

      6.04 Disability. For purposes of this Plan, a Participant shall be deemed
Disabled as of the first day of the month coinciding with or next following a
determination by the Committee that such Participant is Disabled.

      Upon such determination in accordance with the provisions of this Section
6.04, the Participant shall be eligible to receive the value of his Individual
Account determined as of the Valuation Date next following the determination
that the Participant is Disabled. The Committee shall thereupon direct the
Trustee to distribute to such Participant such amount in accordance with Section
6.07 hereof.

      6.05 Death Before Retirement or Termination of Employment. Upon the death
of a Participant or Former Participant, the Beneficiary of such Participant or
such Former Participant shall receive in a lump sum the remaining value of the
Participant's (or Former Participant's) Individual Account determined as of the
Valuation Date immediately following the notification of his death to the
Committee.

      6.06 Severance from Service. Upon termination of employment for any reason
other than retirement, death or disability, a Participant shall be entitled to a
lump sum equal to the vested portion of his Individual Account determined as of
the Valuation Date immediately following the later of his termination of
employment or the date the Committee is notified of such termination of
employment.

      A Participant who terminates employment before he has completed a two-year
Period of Employment shall be deemed to have received an immediate cash-out of
his Individual Account.

      For purposes of this Section 6.06, employment with any participating
Employer shall be deemed employment with any other participating Employer. The
transfer of an employee from one participating Employer to another or to an
Affiliate shall not constitute Severance from Service and such Participant's
Individual Account shall be maintained until he is thereafter eligible for a
distribution in accordance with the terms of the Plan.

      The non-vested portion of the Participant's Individual Account shall be
held in his Individual Account until the later of the Valuation Date coincident
with or next following the Participant's termination of employment or the date
the Committee is notified of

                                       29
<PAGE>

such termination at which time it shall become a Forfeiture and shall be used to
reduce the Employer's subsequent Contributions.

      Any Participant who is reemployed shall have his Forfeiture automatically
reinstated. Amounts reinstated that were vested pursuant to Article VI and not
distributed shall be reallocated to the account from which they came and
invested pursuant to the investment options under Article IV pertaining to
future Contributions. Reinstatements shall be made by the Employer in cash in an
amount equal to the value of the amount forfeited at the time of Forfeiture and
shall be made first from Forfeitures pursuant to Section 6.06, then from
additional Employer contributions. Any reinstated amount shall be invested
pursuant to the investment option elected or in effect at the time of
reinstatement pursuant to Article IV.

      6.07 (a) Method of Payment. Any Participant entitled to a distribution
under Section 6.03, 6.04 or 6.06 in an amount of $5,000 or less shall receive an
immediate lump sum payment.

      Any Participant entitled to a distribution under Section 6.03 or 6.04
which exceeds $5,000 may elect to (1) receive an immediate lump sum payment as
described in subsection (c) below, (2) receive payments in installment form as
described in subsection (d) below, or (3) defer receipt of any benefits payable
hereunder until age 70 1/2. Effective June 1, 1992, a Participant may
subsequently revoke his original election to defer payment of benefits until age
70-1/2 and elect to receive the installment form. A second and final revocation
to receive a lump-sum payment may be elected at any time after such revocation.
If no election is received by the Committee within 60 days of the Participant's
Severance from Service Date under Section 6.03 or 6.04, the receipt of benefits
shall automatically be deferred until age 70 1/2.

      Any Participant entitled to a distribution under Section 6.06 which
exceeds $5,000 may elect to (1) receive an immediate lump sum payment as
described under subsection (c) below, or (2) irrevocably defer receipt of any
benefits payable hereunder until age 65. In accordance with an irrevocable
election to defer receipt of benefits, the benefits shall be paid in a lump sum
as of the December 31 Valuation Date of the calendar year in which such
Participant reaches age 65. If no election as to the method of payment is
received by the Committee within 60 days of the Participant's Severance from
Service Date under Section 6.06, the receipt of benefit shall be automatically
deferred until age 65.

      A Participant's Individual Account shall be revalued as of each Valuation
Date until the Valuation Date as of which any remaining balance is distributed.
All assets held on behalf of a Participant pursuant to this paragraph shall
continue to be invested pursuant to Article IV in accordance with rules
prescribed by the Committee.

      Any Participant entitled to a distribution under Section 6.03, 6.04 or
6.06 shall be

                                       30
<PAGE>

permitted to elect to take an Annual Distribution from his Individual Account.
Such Annual Distribution shall equal the amount designated by the Participant at
the time of his election, or the remaining balance in such Participant's
Individual Account, whichever is less. Annual Distributions shall be deducted
from the Participant's individual Account and shall be paid in accordance with
procedures established by the Committee as soon as practicable after that date.
Any such Annual Distribution election shall be made through the completion and
filing of forms provided for this purpose and/or through electronic, telephonic
or computer means, or as otherwise determined by the Committee in its sole
discretion. The minimum amount of any such Annual Distribution shall be $500, or
such other amount as may be established by resolution of the Committee from time
to time.

      (b)  Application for Benefits. In order to receive a benefit under the
Plan, a Participant, Former Participant, his Beneficiary, next of kin, or estate
must make written application therefor on a form or forms provided by the
Committee. The Committee may require that there be furnished to it in connection
with such application all information pertinent to any question of eligibility
and the amount of any benefit. The Committee may permit applications for
benefits to be made through the completion and filing of forms provided for this
purpose and/or through electronic, telephonic or computer means, or as otherwise
determined by the Committee in its sole discretion.

      (c)  Normal Form. In the absence of the election of an optional method of
payment denoted in Section 6.07(d), benefit payment shall be payable in cash, in
one lump sum. However, distributions from the Special Stock Funds shall be in
shares of stock in one lump distribution or in such other manner as approved by
the Committee.

      (d)(i) Installment Form. In lieu of receiving payment in accordance with
Section 6.07(c), a Participant who retires or becomes Disabled may immediately
elect that his benefit payments be made, in approximately equal installments
from the Trust, over a period of 12 to 180 months subject to the limitation in
Section 6.09. The election must be made within 60 days of retirement or becoming
Disabled and installments will begin as of that Valuation Date. Effective June
1, 1992, this original election may subsequently be revoked to defer further
receipt of benefits until age 70-1/2 or to receive an immediate lump sum
payment. A second and final revocation to receive a lump-sum payment may be
elected at any time after such revocation.

      In the event any optional form of payment denoted in Section 6.07(d) is
elected, the Participant's account from which such installments are to be paid
shall be invested pursuant to any investment option as described in Article IV
as elected by the Participant, Former Participant or Beneficiary to be
applicable to such account and the Individual Account shall be invested
accordingly.

      (ii) Annuity Form. A Participant who was a former participant in a
Predecessor Plan which provided an optional annuity form of payment and who
retires or becomes

                                       31
<PAGE>

disabled may elect that his benefit payments be made in the form of a single
life annuity, or if he is married, in the form of a "qualified joint and
survivor annuity" but only to the extent of the balance of this Predecessor Plan
accounts as of the day preceding the date such balance is transferred to this
Plan. If such a Participant elects to receive his Predecessor Plan amounts in
the form of an annuity, the Committee shall direct the Trustee to purchase an
annuity. If an annuity is to be purchased and the Participant is married as of
the date on which distribution is to be made, the Committee shall direct the
Trustee to purchase an annuity which shall be in the form of a "qualified joint
and survivor annuity" as defined in IRC Sections 401(a)(11) and 417 pursuant to
which such Participant will receive monthly payments for life commencing on the
first day of the month following his retirement date or the date his is
determined to be Disabled with the provision that after his death, 50% of the
amount of his monthly payments will continue during the life of and be paid to
his spouse, if such spouse shall survive him.

      A purchase of a "qualified joint and survivor annuity" shall not be made
with respect to a Participant who has rejected the "qualified joint and survivor
annuity" during the election period commencing 90 calendar days prior to the
date the Participant first qualifies for a benefit. Such rejection of the
"qualified joint and survivor annuity" shall be in writing and the Corporation
must receive notice of the rejection on or before the Participant's retirement
date. The written notice shall not become effective unless the Participant's
spouse consents to such rejection and acknowledges the effect of such waiver in
writing witnessed by a notary public. In the event that the consent of the
Participant's spouse cannot be obtained because there is no spouse, or the
Participant's spouse cannot be located, and this is established to the
Committee, then such election to reject the "qualified joint and survivor"
annuity shall become effective.

      The Corporation will, within 30 days following receipt of the
Participant's request for information concerning the "qualified joint and
survivor annuity" prior to commencement of the election period, provide the
Participant with a written explanation of the Participant's benefit including
the term, condition and effect of the election on the amount of the
Participant's benefit. Such written explanation shall contain the terms and
conditions of the "qualified joint and survivor annuity," the Participant's
right to make, and the effect of, an election to waive this "qualified joint and
survivor annuity," the rights of the Participant's spouse and the right to make,
and the effect of, a revocation of an election. Benefit payments may be delayed
until the expiration of the 90-day period following the furnishing of the
written explanation. The election is revocable during the election period, but
cannot be revoked once the benefit commences.

      If a distribution is to be made by reason of the death of such a married
Participant after he has elected to receive an annuity form of payment and prior
to the purchase of the "qualified joint and survivor annuity," the Committee
shall direct the Trustee to purchase with his Predecessor Plan amounts an
annuity for the life of the Participant's surviving spouse unless the spouse
elects otherwise.

                                       32
<PAGE>

      6.08  Benefits to Minors and Incompetents. In case any person entitled to
receive payment under the Plan shall be a minor, the Committee in its discretion
may dispose of such amount in any one or more of the following ways:

             (i)  by payment thereof to either parent of such minor or to any
             adult person with whom such minor may at the time be living or to
             any person who shall be legally qualified and shall be acting as
             guardian of the person or the property of such minor; provided only
             that the parent or adult person to whom any amount shall be paid
             shall have advised the Committee in writing that he will hold or
             use such amount for the benefit of such minor;

             (ii)  by payment thereof directly to such minor;

             (iii)  by application thereof for benefit of such minor.

      In the event that it shall be found that a person entitled to receive
payment under the Plan is physically or mentally incapable of personally
receiving and giving a valid receipt for any payment due (unless prior claim
therefor shall have been made by a duly qualified committee or other legal
representative), such payment shall be made to an individual selected by the
Committee.

      6.09 Payment of Benefits. In the event that there shall be a portion of a
Participant's Individual Account which shall be due and payable pursuant to this
Article VI, and the Participant or Former Participant has not elected otherwise
in accordance with the provisions of the Plan, any payment of benefits or
commencement thereof to the Participant or Former Participant shall begin not
later than sixty (60) days after the close of the Plan Year in which occurs the
latest of:

      (a)  the Participant's having attained his Normal Retirement Age; and

      (b)  termination of service of the Participant, or

      (c)  the 10th anniversary of the year in which the
      Participant commenced participation in the Plan.

      Required Beginning Date. On and after January 1, 1997, a Participant,
other than a 5% owner, who continues to be actively employed by the Company
after attaining age seventy and one-half (70-1/2) may elect to commence benefit
payments at that time or to delay benefit distributions until such time as he
incurs a Severance From Service Date. This provision shall be construed and
administered in a manner consistent with Code Sections 401(a)(9) and 411(d)(6).

      Limits on Distribution Periods. As of the first Distribution Calendar Year
(defined below), distributions, if not made in a single-sum, may only be made
over one of the following periods (or a combination thereof):

                                       33
<PAGE>

         (a)  the life of the Participant,
         (b)  the life of the Participant and a Designated Beneficiary,
         (c)  a period certain not extending beyond the life expectancy of the
         Participant, or
         (d)  a period certain not extending beyond the joint and last survivor
         expectancy of the Participant and a Designated Beneficiary.

      If the Participant's Interest is to be distributed in other than a single
lump-sum payment, the following minimum distribution rules shall apply on or
after the Required Beginning Date, defined below.

         (a)  Individual Account

         (b) Other Forms. If the Participant's benefit is distributed in the
         form of an annuity purchased from an insurance company, distributions
         thereunder shall be made in accordance with the requirements of Section
         401(a)(9) of the Code and the proposed Treasury regulations thereunder
         and the terms thereof shall comply with the requirements of this Plan.

      Death Distribution Provisions.

      (a)  Distribution Beginning Before Death. If the Participant dies after
distribution of his or her interest has begun, the remaining portion of such
interest will continue to be distributed at least as rapidly as under the method
of distribution being used prior to the Participant's death.

      (b)  Distribution Beginning After Death.

      (i)  If the Participant dies before distribution of his or her interest
begins, distribution of the Participant's entire interest shall be completed by
December 31 of the calendar year containing the fifth anniversary of the
Participant's death except to the extent that an election is made to receive
distributions in accordance with (A) or (B) below:

      (A) If any portion of the Participant's Interest is payable to a
Designated Beneficiary, distributions may be made over the life or over a period
certain not greater than the Life Expectancy of the Designated Beneficiary
commencing on or before December 31 of the calendar year in which the
Participant died;

      (B) If the Designated Beneficiary is the Participant's surviving spouse,
the date distributions are required to begin in accordance with Subparagraph (A)
above shall not be earlier than the later of

               (i) December 31 of the calendar year immediately following the
             calendar year in which the Participant died and (ii) December 31 of
             the calendar year immediately following the calendar year in which
             the Participant would have attained age 70-1/2.

             (ii) If the Participant has not made an election pursuant to this
             Subsection (b) by the time of his or her death, the Participant's
             Designated Beneficiary must

                                       34
<PAGE>

             elect the method of distribution no later than the earlier of
             (1) December 31 of the calendar year in which distributions
             would be required to begin under this Subsection (b), or (2)
             December 31 of the calendar year which contains the fifth
             anniversary of the date of death of the Participant. If the
             Participant has no Designated Beneficiary, or if the
             Designated Beneficiary does not elect a method of
             distribution, distribution of the Participant's entire
             interest must be completed by December 31 of the calendar year
             containing the Participant's death.

      (c)  For purposes of Subsection (b) above, if the surviving spouse dies
after the Participant, but before payments to such spouse begin, the provisions
of Subsection (b), with the exception of Paragraph (i)(B) therein, shall be
applied as if the surviving spouse were the Participant.

      (d)  For purposes of this Section, any amount paid to a child of the
Participant will be treated as if it had been paid to the surviving spouse if
the amount becomes payable to the surviving spouse when the child reaches the
age of majority.

      (e) For purposes of this Section, distribution of a Participant's Interest
is considered to begin on the Participant's Required Beginning Date or, if
Subsection (c) above is applicable, the date distribution is required to begin
to the surviving spouse pursuant to Subsection (b) above. If distribution in the
form of an annuity irrevocably commences to the Participant before the Required
Beginning Date, the date distribution is considered to begin is the date
distribution actually commences.

      Definitions.

      (a) Applicable Life Expectancy. The life expectancy (or joint and last
survivor expectancy) calculated using the attained age of the Participant (or
Designated Beneficiary's) birthday in the applicable calendar year reduced by
one for each calendar year which has elapsed since the date life expectancy was
first calculated. If life expectancy is being recalculated, the Applicable Life
Expectancy shall be the life expectancy as so recalculated. The applicable
calendar year shall be the first distribution calendar year, and if life
expectancy is being recalculated such succeeding calendar year.

      (b)  Designated Beneficiary. The individual who is designated as the
Beneficiary under Section 2.03 of the Plan in accordance with Section 401(a)(9)
of the Code and the proposed Treasury regulations thereunder.

                                       35
<PAGE>

      (c)  Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Participant's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Participant's Required Beginning
Date. For distributions beginning after the Participant's death, the first
Distribution Calendar Year is the calendar year in which distributions are
required to begin pursuant to the paragraphs under the Subsection entitled
"Death Distribution Provisions".

      (d)  Life Expectancy.

      (i)  Life expectancy and joint and last survivor expectancy are computed
by use of the expected return multiples in Tables V and VI of Section 1.72-9 of
the income tax Treasury regulations.

      (ii) Unless otherwise elected by the Participant (or spouse, in the case
of distributions described in Paragraph (b)(i)(B) of the Subsection entitled
"Death Distribution Provisions" above) by the time distributions are required to
begin, life expectancies shall be recalculated annually. Such election shall be
irrevocable as to the Participant (or spouse) and shall apply to all subsequent
years. The life expectancy of a nonspouse beneficiary may not be recalculated.

      (e)  Participant's Interest.

      (i)  The account balance as of the last valuation date in the calendar
year immediately preceding the Distribution Calendar Year (valuation calendar
year) increased by the amount of any contributions or forfeitures allocated to
the account balance as of dates in the valuation calendar year after the
valuation date and decreased by distributions made in the valuation calendar
year after the valuation date.

      (ii) Exception for second Distribution Calendar Year. For purposes of
Paragraph (i) above, if any portion of the minimum distribution for the first
Distribution Calendar Year is made in the second Distribution Calendar Year on
or before the Required Beginning Date the amount of the minimum distribution
made in the second Distribution Calendar Year shall be treated as if it had been
made in the immediately preceding Distribution Calendar Year.

      (f) Required Beginning Date.

      (i) General Rule. The Required Beginning Date of a Participant is the
first day of April of the calendar year following the calendar year in which the
participant attains age 70-1/2. On and after January 1, 1997, a Participant,
other than a 5% owner, who continues to be actively employed by the Company
after attaining age seventy and one-half (70-1/2) may elect to commence benefit
payments at that time or to delay benefit distributions until such time as he
incurs a Severance From Service Date. This provision shall be construed and
administered in a manner consistent with Code Sections 401(a)(9) and 411(d)(6).

      (ii) Transitional Rules. The Required Beginning Date of a Participant who
attains

                                       36
<PAGE>

age 70-1/2 before January 1, 1988, shall be determined in accordance with (A) or
(B) below:

                  (A) Non-5-percent Owners. The Required Beginning Date of a
                  Participant who is not a 5-percent owner is the first day of
                  April of the calendar year following the calendar year in
                  which the later of retirement or attainment of age 70-1/2
                  occurs.

                  (B) 5-percent Owners. The Required Beginning Date of a
                  Participant who is a 5-percent Owner during any year beginning
                  after December 31, 1979, is the first day of April following
                  the later of:
                  (1) the calendar year in which the Participant attains age
                  70-1/2, or
                  (2) the earlier of (i) the calendar year with or within which
                  ends the Plan Year in which the Participant becomes a
                  5-percent Owner, or (ii) the calendar year in which the
                  Participant retires.

                  (C) The Required Beginning Date of a Participant who is not a
                  5-percent Owner who attains age 70-1/2 during 1988 and who has
                  not retired as of January 1, 1989, is April 1, 1990.

      (iii) 5-percent Owner. A Participant is treated as a 5-percent Owner for
purposes of this Section if such Participant is a 5-percent Owner as defined in
Section 416(i) of the Code (determined in accordance with Section 416 but
without regard to whether the Plan is Top-Heavy) at any time during the Plan
Year ending with or within the calendar year in which such owner attains age
66-1/2 or any subsequent Plan Year.

      (iv) Once distributions have begun to a 5-percent Owner under this
Section, they must continue to be distributed, even if the Participant ceases to
be a 5-percent Owner in a subsequent year.

ARTICLE VII

WITHDRAWALS

      7.01 Withdrawals Generally. Subject to the terms and conditions set forth
below, a Participant may withdraw all or a part of the vested portion of his
Individual Account (except for amounts allocated to the Special Stock Funds) in
the order or priority described below as of the last day of any calendar month
by giving the Committee written notice by the last business day of the month.
Payment of withdrawals shall be made in a lump sum as soon as reasonably
possible after the last day of the calendar month in which the Committee
receives such request. Amounts withdrawn may not be repaid. A withdrawal will be
counted as a withdrawal in the year requested. The provisions of this Article
VII are applicable to withdrawals from a

                                       37
<PAGE>

Participant's Individual Account. If the Participant has investments in more
than one Investment Fund, any withdrawal shall be made from each such Investment
Fund on a prorated basis. The minimum withdrawal limitation shall be $500, or if
less, the Vested Individual Account balance.

      7.02 Order of Withdrawals. Withdrawals shall be made in the following
order of priority:

      (a) FIRST, a Participant may withdraw all or a portion of his
Non-Participating and Participating After-Tax Contributions made prior to
January 1, 1987.

      (b) SECOND, a Participant may withdraw amounts attributable to all or a
portion of his After-tax Contributions made on or after January 1, 1987, plus
earnings on all After-Tax Contributions made prior to and/or after January 1,
1987, plus amounts attributable to all or a portion of his Rollover
Contributions (including earnings thereon).

      (c) THIRD, a Participant may withdraw either (i) if the Participant has at
least five total Years of Employment from the date he became a Participant
(included for this purpose are years of participation in a Predecessor Plan),
amounts attributable to vested Employer Matching Contributions (including
earnings thereon) which were not used to meet the requirement of IRC Section
401(k)(3), or (ii) in any other case amounts attributable to vested Employer
Matching Contributions (including earnings thereon) which were not used to meet
the requirements of IRC Section 401(k)(3) provided, however, that amounts
withdrawn under this clause (ii) of this priority THIRD shall not result in
amounts remaining in the Participant's Employer Matching Contribution Account
which are less than an amount equal to the Employer Matching Contributions
allocated to such Account which have remained in the Plan for less than 24
months.

      (d) FOURTH, upon attainment of age fifty-nine and one-half (59 1/2),
Participating and Non-Participating Before-Tax Contributions (including earnings
thereon) and vested Employer Matching Contributions (including earnings thereon)
which were used to meet the requirement of IRC ss. 401(k)(3) may be withdrawn.

      7.03  Withdrawal Because of Hardship.

      (a) The Committee will make a determination that a withdrawal is necessary
to meet a Hardship of a Participant provided that the Participant satisfies one
of the following:

                  (1) The Participant certifies that the Hardship will place him
         and his immediate family in heavy financial need and that he has
         insufficient funds reasonably available to meet this financial need and
         that the need cannot be relieved:

                  (i) Through reimbursement or compensation by insurance or
                  otherwise,

                  (ii) By reasonable liquidation of his assets, to the extent
                  such liquidation would not itself cause an immediate and heavy
                  financial need,

                                       38
<PAGE>

                  (iii) By cessation of his contributions (including deferrals)
                  to the Plan, or

                  (iv) By other distributions or nontaxable (at the time of the
                  loan) loans from plans maintained by the Corporation or by any
                  other employer, or by borrowing from commercial sources on
                  reasonable commercial terms.

                  (2) The Participant satisfies the following:

                  (i) The Participant has obtained all other available
                  distributions and nontaxable loans available under this Plan
                  or any other Plan maintained by an Employer,

                  (ii) For the twelve-month period following the Hardship
                  withdrawal all Elective Deferrals and Participant After-Tax
                  Contributions under this Plan or any other Plan maintained by
                  an Employer shall be suspended, and

                  (iii) The maximum contribution under Section 3.04(a) for the
                  Plan Year following the Plan Year in which the Hardship
                  withdrawal occurs is reduced by the amount of a Participant's
                  Elective Contributions made in the Plan Year in which the
                  Hardship withdrawal occurred.

      (b) Procedures for satisfaction of Section 7.03(a) shall be established by
the Committee. Such procedures will be applicable to all persons similarly
situated. If such procedures are satisfied and the Committee determines that a
Hardship has occurred, a Participant may withdraw part or all of the amounts
held in his Individual Account attributable to (i) Participating and
Non-Participating Before-Tax Contributions and (ii) earning on such Before-Tax
Contributions attributable to the period ending on December 31, 1988. In no
event will a withdrawal exceed the amount actually necessary to meet the
Hardship.

      7.04 Projected Interest on Withdrawals. Interest will be accrued on the
amount to be withdrawn at the rate to be determined by the Committee from the
effective date of the withdrawal to the date the payment check is cut.

      7.05 IRC Section 72. For purposes of the Plan, all Participating and
Non-Participating After-Tax Contributions made on and after January 1, 1987 (and
earnings thereon) shall be treated as a separate contract for purposes of IRC
Section 72.

      7.06 Qualified Domestic Relations Orders. "The Committee shall establish
reasonable procedures to determine the qualified status of domestic relations
orders and to administer distributions under such qualified orders. A
determination by the Committee that a domestic relations order constitutes a
qualified domestic relations order shall be binding and conclusive on all
parties thereto.

      The alternate payee of a Participant under a qualified domestic relations
order may, after the order is determined by the Committee to be qualified and
before such alternate payee's benefits under the Plan commence, elect to receive
the benefit to which he is

                                       39
<PAGE>

entitled under such order in a lump sum, payable as soon as practicable
following such election, provided the qualified domestic relations order
provides for such a distribution.

      Where the value of the benefit payable to an alternate payee pursuant to a
qualified domestic relations order is not greater than $5,000, such benefit
shall be paid to such alternate payee in a lump sum as promptly as practicable
after the order is determined by the Committee to be a qualified domestic
relations order provided the qualified domestic relations order provides for
such a distribution."

ARTICLE VIII

FUNDING

      8.01 Contributions. All Contributions by the Employer shall be
irrevocable, except as herein provided, and may be used only for the benefit of
the Participants and their Beneficiaries and payment of administrative expenses.
On receipt of Contributions, the Trustee shall manage and administer the funds
so received for the exclusive benefit of Participants in accordance with the
provisions of the Plan. No part of the corpus or income thereof shall be used
for, or diverted to purposes other than for the exclusive benefit of the
Participants, Former Participants, and their Beneficiaries, or payment of
reasonable expenses of administering the Plan, nor shall any part thereof be
recoverable by the Employer, except as provided in Section 13.06.

     8.02  Trustee. The Corporation will enter into an agreement with the
Trustee whereunder the Trustee will receive, invest and administer as a trust
fund Contributions made under this Plan in accordance with the Trust Agreement.

ARTICLE IX

FIDUCIARIES

      9.01 General. Each fiduciary who is allocated specific duties or
responsibilities under the Plan or any Fiduciary who assumes such a position
with respect to the Plan shall discharge his duties solely in the interest of
the Participants and Beneficiaries and for the exclusive purpose of providing
such benefits under the Plan to such Participants and Beneficiaries, or
defraying reasonable expenses of administering the Plan. Each Fiduciary in
carrying out such duties and responsibilities shall act with the care, skill,
prudence, and diligence under the circumstances then prevailing that a prudent
man acting in a like capacity and familiar with such matters would use in
exercising such authority or duties.

                                       40
<PAGE>

      A Fiduciary may serve in more than one Fiduciary capacity and may employ
one or more persons to render advice with regard to his Fiduciary
responsibilities. All expenses reasonably incurred by a Fiduciary on behalf of
the Plan, shall be reimbursed by the Corporation or the Employees, as the case
may be, or, at the Corporation's direction, from the Trust.

      A Fiduciary may allocate any of his responsibilities for the operation and
administration of the Plan. In limitation of this right, a Fiduciary may not
allocate any responsibilities as contained herein relating to the management or
control of the Trust except through the employment of an Investment Manager as
provided in Section 9.03 following and in the Trust Agreement.

      9.02 Corporation. The Corporation establishes and maintains the Plan for
the benefit of its Employees and Employees of its Affiliates and of necessity
retains control of the operation and administration of the Plan.

      9.03 Trustee. The Trustee, in accordance with the Trust Agreement, shall
manage and control the assets of the Plan, except that the Corporation may in
its discretion employ at any time and from time to time an Investment Manager
with respect to all or a designated portion of the assets comprising the Trust,
in which case the Investment Manager shall have complete control and
responsibility over all matters pertaining to the investment of such assets.

      9.04 Committee. The Board of Directors or its designate shall appoint a
committee to hold office at the pleasure of the Corporation, such committee to
be known as the Committee. Any action of the Committee shall be determined by
the vote of a majority of its members. Any member of the Committee or his
designate may execute any certificate or other written direction on behalf of
the Committee.

      The Committee shall hold meetings upon such notice, at such place or
places and at such time or times as it may from time to time determine. A
majority of the members of the Committee in office at the time shall constitute
a quorum for the transaction of business.

      In accordance with the provisions hereof, the Committee has been delegated
certain administrative functions relating to the Plan with all powers necessary
to enable it to properly carry out such duties. The Committee shall have sole
discretion to make decisions and take any action with respect to questions
arising in connection with the construction of the Plan and Trust (including
questions that may arise thereunder relating to (a) the eligibility of
individuals to participate in the Plan and, (b) the amount of benefits to which
any Participant or Beneficiary may become entitled hereunder). All disbursements
by the Trustee, except for the ordinary expenses of administration of the Trust
or the reimbursements of reasonable expenses at the direction of the Corporation
as provided herein, shall be made upon, and in accordance with, the written
directions of the Committee. When the Committee is required in the performance
of its duties

                                       41
<PAGE>

hereunder to administer or construe, or to reach a determination, under any of
the provisions of the Plan, it shall do so in a uniform, equitable and
non-discriminatory basis.

      After the close of each calendar quarter or as determined by the
Committee, the Committee shall distribute to each Participant a statement
setting fourth a summary of his account balances.

      The Committee shall establish rules and procedures to be followed by the
Participants and Beneficiaries in filing applications for benefits and for
furnishing and verifying proofs necessary to establish age, Years of Employment,
and any other matters required in order to establish their rights to benefits in
accordance with the Plan.

      9.05 Missing Persons. The Committee shall direct the Trustee to make a
reasonable effort to locate all persons entitled to benefits under the Plan;
however, notwithstanding any provision in the Plan to the contrary, if, after a
period of five (5) years from the date such benefit shall be due, any such
persons entitled to benefits have not been located, their rights under the Plan
shall be construed as if the Participant had died. Before this provision becomes
operative, the Trustee shall send a certified letter to all such persons at
their last known address advising them that their interest or benefits under the
Plan shall be construed. Any such amounts shall be held by the Trustee for a
period of three (3) additional years (or a total of eight (8) years from the
time the benefits first become payable). If no distributee can be found, then
any unclaimed benefits shall be deemed forfeited and shall be used to reduce
future Employer Matching Contributions. If the Participant shall be located at a
later date, his rights to such amounts shall be reinstated.

      9.06 Indemnification of Fiduciaries. Each member of the Board of Directors
and each other employee of the Corporation who is determined to be a Fiduciary
under the terms of ERISA with respect to the Plan, shall be indemnified by the
Corporation against liability imposed on him and against all expenses and costs
which may be reasonably incurred by him in connection with or resulting from any
actions, suit or proceeding, or any claim against him, if he shall have been
made a party to such actions, suit or proceeding, or such claim shall have been
made by reason of his being or having been a Fiduciary with respect to the Plan
except to the extent such liability is attributable to the Fiduciary's gross
negligence or willful action. In the case of a settlement of any such action,
proceeding or claim before a final adjudication thereof, the right of
indemnification shall exist only to the extent the Corporation shall have
consented to the settlement.

                                       42
<PAGE>

ARTICLE X

AMENDMENT AND TERMINATION OF THE PLAN

      10.01 Amendment of the Plan. The Board of Directors shall have the right
to modify, alter or amend the Plan in whole or in part; provided, however, that
the duties, powers and liabilities of any Trustee hereunder shall not be
increased without its written consent; and provided, further, that any such
action shall not adversely affect benefits accrued prior to the effective date
of such action. No amendment, modification or alteration shall have the effect
of reverting to the Employer any part of the principal or income of the Trust.

      10.02 Termination of the Plan. The Board of Directors shall have the right
to modify, alter or amend the Plan in whole or in part; provided, however, that
the duties, powers and liabilities of any Trustee hereunder shall not be
increased without its written consent; and provided, further, that any such
action shall not reduce or restrict, either directly or indirectly, the benefit
provided any Plan Participant prior to the amendment. Each Employer reserves the
right to discontinue its Contributions and to terminate the Plan as it relates
to its Employees without terminating the Plan with respect to any other
Employer. Any Employer desiring to terminate the Plan as it relates to its
Employees shall give notice of such termination of the Corporation and the
Trustee at least thirty (30) days prior to the effective date thereof. On
termination of the Plan (or in the event of a partial termination), or
discontinuance of Contributions, the rights of present Participants (to the
extent affected by such action) in their account balances held pursuant to the
Plan as of the date of such event shall be nonforfeitable and the Trustee shall
continue to administer the Trust in accordance with the provisions of the Plan
and the Trust Agreement for the sole benefit of the then Participants, Former
Participants or Beneficiaries then receiving or entitled to receive future
benefits. In the event of a termination or partial termination no further
contributions will be made to the Plan on behalf of affected Participants.

      An Employer under the Plan shall not be permitted, through the exercise of
discretion, to deny a Participant a IRC Section 411(d)(6) protected benefit for
which the Participant is otherwise eligible.

      10.03 Allocation of Assets. In the event of termination of the Plan, the
Committee shall allocate to the terminating Employer's Employees as of the date
of termination any previously unallocated Contributions, realized and unrealized
appreciation or depreciation, income or loss of the Trust to the accounts of the
Participants of the Plan affected by the termination and any income, losses,
realized and unrealized appreciation or depreciation to Former Participants of
the Plan who have not received their benefits under the Plan.

                                       43
<PAGE>

      10.04 Application of Assets. After assets of the Trust pertaining to the
terminating Employer have been allocated as provided in Section 10.03, such
assets shall be applied to whichever of the following options is specified by
the terminating Employer:

      (a) Transfer to a separate trust and held therein to provide benefits to
the persons entitled to benefits under the Plan as it applies to the terminating
Employer.

      (b) Transfer to an insurance company to purchase nontransferable annuity
contracts for the persons entitled to benefits under the plan to the extent they
have received an allocation pursuant to Section 10.03.

      (c) Distribution in a single lump sum, in cash to each individual pursuant
to Section 10.03. Notwithstanding the foregoing, in the case of an Employee of
the terminating Employer who has not retired, died, incurred a disability, had a
separation from service or attained age 59 1/2, distribution of Elective
Deferrals shall be made only (i) upon termination of the Plan without
establishment or maintenance by the Employer of a successor plan as defined
under the Treasury Regulations under Section 401(k) or (ii) in the case of the
disposition by the Corporation of its interest in a subsidiary or of
substantially all of its assets (within the meaning of Code Section 409 (d)(2))
used by the Corporation in its trade or business, provided in either the sale of
the subsidiary or substantially all of the assets in the trade or business, the
Participant continues employment with the corporation acquiring the interest in
such subsidiary or such assets and the Corporation continues to maintain the
Plan after such sale. This (ii) shall be subject to Code Section 401(k)(10) and
Treasury Regulations thereunder.

      10.05 Merger, Consolidation and Transfers of Assets or Liabilities. No
merger or consolidation with, or transfer of assets or liabilities to this Plan
or from this Plan to any other plan shall be made, unless each Participant would
receive immediately after such event, a benefit (determined as if the Plan had
terminated at that time) which is equal to or greater than the benefit he would
have been entitled to receive under the Plan immediately before such event had
the Plan terminated at that time.

ARTICLE XI

PROVISIONS RELATING TO EMPLOYERS INCLUDED IN PLAN

     11.01 Method of Participation - Any corporation which is a member of the
same controlled group of corporations, as determined pursuant to IRC Sections
414 (b), (c), (m), and (o) as the Corporation, with the approval of the
Committee, by taking appropriate board action, may become a party to the Plan,
by adopting the Plan. Any corporation which becomes a party to the Plan shall
thereafter promptly deliver to the

                                       44
<PAGE>

Trustee provided for in Article VIII hereof a certified copy of the resolutions
or other documents evidencing its adoption of the Plan or a similar plan and
also a written instrument showing the Board of Directors' approval of such
corporation's becoming a party to the Plan. The Plan shall be maintained as a
single Plan for all participating Employers.

      11.02 Withdrawal. Any one or more of the Employers included in the Plan
may withdraw from the Plan at any time by giving six (6) months' advance notice
in writing of it or their intention to withdraw to the Board of Directors and
the Committee (unless a shorter notice shall be agreed to by the Committee).

      Upon receipt of notice of any such withdrawal, the Committee shall certify
to the Trustee the equitable share of such withdrawing Employer in the Trust, as
applicable (to be determined by the Committee).

The Trustee shall thereupon set aside from the Trust then held by it such
securities and other property as it shall, in its sole discretion, deem to be
equal in value to such equitable share. If the Plan is to be terminated with
respect to such Employer, the amount set aside shall be dealt with in accordance
with the provisions of Section 10.02 of Article X. If the Plan is not to be
terminated with respect to such Employer, the Trustee shall turn over such
amount to such trustee as may be designated by such withdrawing Employer, and
such securities and other property shall thereafter be held and invested as a
separate trust of the Employer which has so withdrawn, and shall be used and
applied according to the terms of a new agreement and declaration of trust
between the Employer so withdrawing and the trustee so designated. Neither the
segregation of the Trust assets upon the withdrawal of an Employer, nor the
execution of a new agreement and declaration of trust pursuant to any of the
provisions of this Section 11.02, shall operate to permit any part of the corpus
or income of the Trust to be used for or diverted to purposes other than for the
exclusive benefit of Participants, Former Participants and Beneficiaries.

ARTICLE XII

TOP HEAVY PROVISIONS

      12.01 Definitions. As used herein:

      (a) "Key Employee", as defined in IRC Section 416(i)(1) is any employee or
former employee who at any time during the Plan Year containing the
Determination Date or the four preceding Plan Years, is or was (1) an officer of
the employer having annual compensation for such Plan Year which is in excess of
50 percent of the dollar limit in effect under IRC Section 415(b)(1)(A) for the
calendar year in which such Plan Year ends; (2) an owner for (or considered as
owning within the meaning of IRC Section 318) both more than an 1/2 percent
interest as well as one of the ten largest interests in the employer and having
annual compensation greater than the dollar limit in effect

                                       45
<PAGE>

under IRC Section 415(c)(1)(A) for the year; (3) a five percent owner of the
employer; or (4) a one percent owner of the employer who has annual compensation
of more than $150,000. For purposes of determining five-percent and one-percent
owners, neither the aggregation rules nor the rules of subsections (b), (c) and
(m) of IRC Section 414 apply. Beneficiaries of an Employee acquire the character
of the Employee who performed service for the employer. Also, inherited benefits
will retain the character of the benefits of the Employee who performed services
for the employer;

      (b) "Non-Key Employee" means an employee other than a Key Employee;

      (c) "Top Heavy Plan" generally means, on or after January 1, 1984, any
plan under which, as of any determination date the present value of the
cumulative accrued benefits under all plans in an aggregation group for Key
Employees exceeds sixty percent (60%) of the cumulative accrued benefit under
such Plan for all Employees. This definition shall be interpreted consistent
with IRC Section 416 and rules and regulations issued thereunder. Further, such
law and regulations shall be controlling in all determinations under this
definition inclusive of any provisions and requirements stated thereunder but
hereinabove absent;

      (d)"Determination Date" means the last day of the preceding Plan Year, or
in the case of the first Plan Year, the last day of such Year. Key Employee and
Top Heavy tests are made as of the Determination Date;

      (e)"Required Aggregation Group" means each plan of an employer in which a
Key Employee participates (in the Plan Year containing the Determination Date or
any of the preceding four Plan Years) and each other plan which enables any plan
in which a Key Employee participates during the period tested to meet the
requirements of IRC Sections 401(a)(4) or 410(b) which are required to be
aggregated for Top-Heavy testing purposes. All employers aggregated under IRC
Sections 414(b), (c), (m) and (o) are considered a single employer; and

      (f) "Permissive Aggregation Group" is one or more plans that are not
required to be aggregated but which may be aggregated with a Required
Aggregation Group. A plan may be permissively aggregated only if the resulting
aggregation group satisfies the requirements of IRC Sections 401(a)(4) and 410.

      Solely for the purpose of determining if the Plan, or any other plan
included in a required aggregation group of which this Plan is a part, is
top-heavy (within the meaning of Code Section 416(g)) the accrued benefit of an
Employee other than a Key Employee (within the meaning of Code Section
416(i)(1)) shall be determined under (a) the method, if any, that uniformly
applies for accrual purposes under all plans maintained by an Employer who is an
Affiliate, or (b) if there is no such method, as if such benefit accrued not
more rapidly than the slowest accrual rate permitted under the fractional
accrual rate of Code Section 411(b)(1)(C).

                                       46
<PAGE>

      12.02 Top Heavy Plan. Notwithstanding anything contained herein to the
contrary, in the event that this Plan when combined with all other plans
required to be aggregated pursuant to IRC Section 416(g) is deemed to be Top
Heavy for any Plan Year, the following conditions shall become operative with
respect to such Plan Year and all future Plan Years.

      (a) In the event the definition of Compensation as defined in Article I is
allowed to be greater than $200,000, such compensation shall be limited to
$200,000 or such greater amount as shall be determined by the Secretary of the
Treasury pursuant to IRC Section 416(d).

      (b) In the event that the aggregate Employer Contributions to all Non-Key
Employees allocated to their Individual Account (inclusive of Employer
Contributions to the Employee's Before-Tax Account) do not exceed three percent
(3%) of compensation, then the Employer shall contribute to the Plan out of
current or accumulated profits an amount necessary to provide a minimum
contribution of at least three percent (3%) of compensation of such Non-Key
Employees. In the event a contribution shall be required hereunder, it shall be
made to each Participant employed on the last day of the Plan Year regardless of
whether such Participant had completed 1,000 Hours of Service or had elected to
make Participating or Non-participating Contributions. In no event, however,
shall the allocation of the minimum Contribution to Non-Key Employees be greater
than the aggregate allocation of Employer Contributions to the Individual
Account for Key Employees.

      (c) Contributions made pursuant to this Section shall be deemed 100%
vested at the end of three (3) Years of Employment.

      (d) In the event the Employer shall also maintain a defined benefit plan
and such defined benefit plan provided the minimum accrued benefit determined
pursuant to IRC Section 416(C)(1), then the adjustment provided in Section
12.02(b) above shall not be required.

      (e) In the event Section 12.02(b) or 12.02(d) is applicable, then the
multiplier of 1.25 in IRC Section 415(e) shall be reduced to 1.0 unless

                  (i) all plans required to be aggregated and any other plans
         which may be permissively aggregated pursuant to IRC Section 416(g) are
         ninety percent (90%) or less Top Heavy, and

                  (ii) the minimum accrued benefit referenced in IRC Section
         416(C)(1) is modified by IRC Section 416(h)(2)(A)(ii)(I) or the minimum
         contribution in subparagraph (b) above is increased from three percent
         (3%) to four percent (4%).

                                       47
<PAGE>

      (f) With respect to the operation of these Top Heavy Provisions, there
shall be no requirement that the entire defined benefit minimum benefit and the
defined contribution minimum contribution be provided. To the extent that there
shall be a defined benefit accrued benefit, it shall be controlling. To the
extent that there shall be an Employer Contribution to a defined contribution
plan, then there shall be a determination as to whether the defined contribution
is comparable to the difference between the defined benefit minimum benefit and
the minimum defined benefit accrued benefit required under IRC Section 416. In
the event that the defined contribution amount shall not be comparable, then the
difference shall be provided in the defined benefit plan unless the next
sentence shall apply. Notwithstanding the above, if there shall be a
Contribution to the defined contribution plan of at least seven and one-half
percent (7 1/2%) of compensation to Non-Key Employees, it shall be conclusively
presumed that the minimum benefit requirements of Top Heavy Plans have been met.

      (g) For purposes of determining whether a defined benefit plan is Top
Heavy, calculations shall be based upon actuarial assumptions stipulated in such
Plan for this purpose. If no assumptions are provided, the calculation shall be
based upon the 1984 Unisex Pension Mortality Tables, but with no preretirement
mortality, at five percent (5%) interest with such determination being made on
the valuation date which occurs within the Plan Year.

      (h) For purposes of determining minimum contributions to a defined
contribution plan and minimum accrued benefits to a defined benefit plan,
compensation shall have the same meaning as it is used in IRC Section 415.

ARTICLE XIII

MISCELLANEOUS

      13.01 Governing Law. The Plan shall be construed, regulated and
administered according to the laws of the State of New Jersey except in those
areas preempted by the laws of the United States of America.

      13.02 Construction. The headings and subheadings in the Plan have been
inserted for convenience of reference only and shall not affect the construction
of the provision hereof. In any necessary construction the masculine shall
include the feminine and the singular the plural, and vice versa.

      13.03 Administration Expenses. The expenses of administering the Trust and
the Plan shall be payable by the Trust unless paid for by the Company.

                                       48
<PAGE>

      13.04 Participant's Rights; Acquittance. No Participant in the Plan shall
acquire any right to be retained in the Employer's employ by virtue of the Plan,
nor, upon his dismissal, or upon his voluntary termination of employment, shall
he have any right or interest in and to the Trust other than as specifically
provided herein.

      The Employer shall not be liable for the payment of any benefit provided
for herein; all benefits hereunder shall be payable only from the Trust.

      13.05 Spendthrift Clause. Except as permitted by federal law or
regulations or in the case of a qualified domestic relations order within the
meaning of IRC Section 414(p), none of the benefits, payments, proceeds, or
distributions under this Plan shall be subject to the claim of any creditor of
the Participant, Former Participant or to the claim of any creditor of any
Beneficiary hereunder or to any legal process by any creditor of such
Participant, Former Participant or of any such Beneficiary; and neither such
Participant, Former Participant or any such Beneficiary shall have any right to
alienate, commute, anticipate, or assign any of the benefits, payments, proceeds
or distributions under this Plan.

      13.06 Return of Contributions. Notwithstanding anything herein to the
contrary, upon the Employer's request, a Contribution which was made by a
mistake of fact, or conditioned upon initial qualification of the Plan may be
returned to the Employer by the Trustee within one (1) year after the payment of
the Contribution, or the denial of the qualification, whichever is applicable.

      Further, notwithstanding any provision to the contrary, each Contribution
by the Employer is conditioned on deductibility under Section 404 of the Code.
To the extent the deductibility is disallowed, the Contribution (to the extent
disallowed) shall be returned to the Employer, upon its request, within one year
after such disallowance.

      13.07 Counterparts. The Plan and the Trust Agreement may be executed in
any number of counterparts, each of which shall constitute but one and the same
instrument and may be sufficiently evidenced by any one counterpart.

ARTICLE XIV

LOANS

      14.01 Loans to Participants. Effective as of a date to be determined by
the Committee, the Committee, in its sole discretion, may direct the Trustee to
make loans to a Participant from the Participant Loan Fund at the request of the
Participant which request has been approved by the Committee, subject to the
following terms and conditions.

                                       49
<PAGE>

      (a) The Committee shall, in its sole discretion exercised in a uniform and
non-discriminatory manner among persons similarly situated, determine whether or
not the loan will be granted and the amount thereof. Loans shall be made
available to all participants and beneficiaries on a reasonably equivalent basis
and shall not be made available to Highly Compensated Employees in an amount
greater than made available to all other eligible Employees.

      Except as otherwise permitted by law, the aggregate amount of a loan to a
Participant, when added to the outstanding balance of all other loans from all
qualified plans of the Employer, shall not, at the time of any such loan is made
or renewed as hereinafter provided, exceed the lesser of:

                  (i) FIFTY THOUSAND ($50,000) DOLLARS reduced by the excess (if
         any) of the highest outstanding balance of loans from the Plan to the
         Participant during the one-year period ending on the day before the
         date on which such loan is made, over the outstanding balance of loans
         from the Plan to the Participant on the date on which such loan was
         made; or

                  (ii) Fifty percent (50%) of the Participant's vested interest
         under the Plan.

      (b) The interest rate charged on a loan made pursuant to this Article XIV
for any calendar month shall be a rate fixed by the Committee and, in
determining the interest rate, the Committee shall take into consideration
interest rates currently being charged. The Committee shall not discriminate
among Participants in the matter of interest rates; but loans granted at
different times may bear different interest rates if, in the opinion of the
Committee, the difference in rates is justified by a change in general economic
conditions. In no instance shall the rate of interest exceed that permitted by
law.

      (c) Each loan shall be evidenced by a note.

      (d) The principal amount of each loan must be repaid within a sixty (60)
month period through equal monthly payments of principal together with interest
on the unpaid principal amount at the rate determined in accordance with
paragraph (b) above.

      (e) (i) Each loan to a Participant shall be adequately secured. A loan
shall be deemed to be adequately secured if the aggregate amount of all such
loans to a Participant does not exceed fifty percent (50%) of the Participant's
vested interest in the Plan immediately after the origination of each such loan.
The types of additional collateral which may secure a Participant loan include,
by way of example and not limitation, cash equivalents, stock, bonds and other
marketable securities, bank accounts, tangible personal property and real
estate. The Committee shall have the full discretion in determining the nature
and amount of security required.

      (ii) In the event that Section 6.07(d)(ii) of the Plan applies to a
Participant, such Participant must obtain the consent of his or her spouse, if
any, to use of the account balance as security for the loan. Spousal consent
shall be obtained no earlier than the beginning of the 90-day period that ends
on the date on which the loan is to be so secured. The consent must be in
writing, must acknowledge the effect of the loan, and must be witnessed by a
Plan

                                       50
<PAGE>

representative or notary public. Such consent shall thereafter be binding
with respect to the consenting spouse or any subsequent spouse with respect to
that loan. A new consent shall be required if the account balance is used for
renegotiation, extension, renewal, or other revision of the loan.

      (f) In the event a note is not paid on or before maturity and is not
renewed, the Committee shall give written notice to the Participant sent to his
last known address, and, if the note is not paid pursuant to such notice, the
amount allocated to the Participant's account shall be reduced by the amount of
the unpaid balance of the loan, together with unpaid interest accrued thereon,
and the Participant's indebtedness shall thereupon be discharged to the extent
such unpaid balance does not exceed the Participant's then vested interest in
the Plan. To the extent the unpaid balance, together with unpaid interest
accrued thereon, does exceed the Participant's vested interest, the Committee
shall take such legal action as it shall deem necessary and advisable to recover
the remaining unpaid balance and interest.

      (g) In the event of the termination of employment of the Participant for
any reason before the Plan loan is repaid in full and in the further event that
the loan meets the requirements of Treasury regulation Section
1.401(a)-13(d)(2)(iii), the unpaid balance thereof, together with unpaid
interest accrued thereon, shall become due and payable, and the Committee shall
first satisfy the indebtedness from the Participant's vested interest in the
Plan before making any payments to the Participant or his Beneficiary. To the
extent such vested interest is insufficient to repay in full the unpaid balance,
together with unpaid interest, the Committee shall make due demand on the
terminated Participant or his estate to meet such demand, and upon failure of
the terminated Participant to meet such demand, the Committee shall take such
legal action as it shall deem necessary and advisable to recover the remaining
unpaid principal and interest.

      (h) The Committee may prescribe such other terms and conditions for loans
not inconsistent with the foregoing requirements as the Committee deems
appropriate.

ARTICLE XV

ADOPTION OF THE PLAN

Anything herein to the contrary notwithstanding, the Plan is created and
maintained under the condition that the Corporation receives a determination
letter from the Internal Revenue Service stating that the Plan meets the
requirements for qualification under IRC Section 401(a), (k) and (m) and that
the Trust hereunder is exempt under IRC Section 501(a), or under any comparable
Sections of any future legislation which amends, supplements or supersedes such
Sections.

If any provision of this Plan shall be for any reason invalid or unenforceable,
the remaining provisions shall nevertheless be unaffected.

                                       51
<PAGE>

ARTICLE XVI

SPECIAL PROVISIONS WITH RESPECT TO EMPLOYEES OF DETROIT
MILFORD AVENUE LABORATORY

      16.01  Detroit Plan.

         (a)      Participation. Effective March 1, 1987, hourly employees
                  located at Detroit Milford Avenue Laboratory decertified Local
                  412 of the United Auto Workers of America as its
                  representative for collective bargaining purposes with BASF
                  Corporation Inmont Division ("Detroit Hourly Employees"). On
                  and after March 1, 1987 no further contributions were made to
                  the Detroit Milford Avenue Laboratory Savings Plan ("Detroit
                  Plan") on behalf of Detroit Hourly Employees and all amounts
                  credited to such Employees accounts were fully vested.
                  Effective as of March 1, 1987, the Committee designated the
                  Detroit Plan, a profit sharing plan described under IRC
                  Section 401(a), a Predecessor Plan and as of such date Detroit
                  Hourly Employees shall be eligible to participate in this Plan
                  provided they have met the eligibility requirements of Section
                  2.01 of the Plan.

         (b)      Transfer of Account Balances. Effective as of October 31,
                  1987, the Detroit Milford Avenue Laboratory Savings Plan shall
                  be merged into the Plan and the account balances held on
                  behalf of each Detroit Hourly Employee shall be transferred to
                  the Plan and allocated and credited in accordance with Section
                  3.06 of Article III. Any such accounts transferred which were
                  attributable to Employer Contributions under the Detroit Plan
                  shall be fully vested.

                                       52
<PAGE>

ARTICLE XVII

SPECIAL PROVISIONS WITH RESPECT TO EMPLOYEES OF CERTAIN
PREDECESSOR PLANS

17.01    BSM Plan

         (a)      Participation. On and after January 1, 1988 no further
                  contributions will be made to the BASF Structural Materials,
                  Inc. Thrift Savings Plan ("BSM Plan") on behalf of employees
                  covered by the BSM Plan ("BSM Plan Employees") and all amounts
                  credited to such BSM Plan Employees' account will be fully
                  vested. Effective as of January 1, 1988, the Committee
                  designated the BSM Plan, a profit sharing plan described under
                  IRC Section 401(a), a Predecessor Plan and as of such date BSM
                  Plan Employees shall be eligible to participate in this Plan
                  provided they have met the eligibility requirements of Section
                  2.01 of the Plan.

         (b)      Transfer of Account Balances. Effective as of January 1 1988,
                  the BSM Plan shall be merged into the Plan and the account
                  balances held on behalf of each BSM Plan Employee shall be
                  transferred to the Plan and allocated and credited in
                  accordance with Section 3.06 of Article III. Any such accounts
                  transferred which were attributable to Employer Contributions
                  under the BSM Plan shall be fully vested.

17.02    Knoll Plan.

(a) Participation. On and after January 1, 1988 no further contributions will be
made to the Knoll Pharmaceuticals Thrift Savings Plan ("Knoll Plan") on behalf
of employees covered by the Knoll Plan ("Knoll Plan Employees") and all amounts
credited to such Knoll Plan Employees' account will be fully vested. Effective
as of January 1, 1988, the Committee designated the Knoll Plan, a profit sharing
plan described under IRC Section 401(a), a Predecessor Plan and as of such date
Knoll Plan Employees shall be eligible to participate in this Plan provided they
have met the eligibility requirements of Section 2.01 of the Plan.

(b)  Transfer of Account Balances. Effective as of January 1, 1988, the Knoll
Plan shall be merged into the Plan and the account balances held on behalf of
each Knoll Plan Employee shall be transferred to the Plan and allocated and
credited in accordance with Section 3.06 of Article III. Any such amounts
transferred which were attributable to Employer Contributions under the Knoll
Plan shall be fully vested.

17.03    FDO Plan.

         (a)      Participation. On and after January 1, 1988 no further
                  contributions will be made to the Fritzsche Dodge & Olcott
                  Inc. Employee Savings and Profit Sharing Plan ("FDO Plan") on
                  behalf of employees covered by the FDO Plan ("FDO Plan

                                       53
<PAGE>

                  Employees") and all amounts credited to such FDO Plan
                  Employees' account will be fully vested. Effective as of
                  January 1, 1988, the Committee designated the FDO Plan, a
                  profit sharing plan described in IRC Section 401(a), a
                  Predecessor Plan and as of such date FDO Plan Employees shall
                  be eligible to participate in this Plan provided they have met
                  the eligibility requirements of Section 2.01 of the Plan.

         (b)      Transfer of Account Balances. Effective as of January 1, 1988,
                  the FDO Plan shall be merged into the Plan and the account
                  balances held on behalf of each FDO Plan Employee shall be
                  transferred to the Plan and allocated and credited in
                  accordance with Section 3.06 of Article III. Any such accounts
                  transferred which were attributable to Employer Contributions
                  under the FDO Plan shall be fully vested.

17.04    Polysar Plan.

(a) Participation. Effective as of June 30, 1988, the Committee designated the
Polysar Employees' Savings and Protection Plan (the "Polysar Plan"), a profit
sharing plan described in IRC Section 401(a), a Predecessor Plan and as of such
date those salaried employees employed by the Chemicals Division who were
formerly employed by Polysar Incorporated ("Polysar Employees") shall be
eligible to participate in this Plan.

(b) Transfer of Account Balances. Effective as of June 30, 1988, the Polysar
Plan shall be merged into the Plan and the account balances held on behalf of
each Polysar Plan Employee shall be transferred to the Plan and allocated and
credited in accordance with Section 3.06 of Article III. Any such accounts
transferred which were attributable to Employer Contributions under the Polysar
Plan shall be fully vested.

17.05    Wintershall Plan.

         (a)      Participation. On and after January 1, 1989, no further
                  contributions will be made to the Wintershall Oil and Gas
                  Corporation Employee Savings Plan and Trust ("Wintershall
                  Plan") on behalf of employees covered by the Wintershall Plan
                  ("Wintershall Plan Employees") and all amounts credited to
                  such Wintershall Plan Employees' account will be fully vested.
                  Effective as of January 1, 1989, the Committee designated the
                  Wintershall Plan, a profit sharing plan described under IRC
                  Section 401(a), a Predecessor Plan and as of such date
                  Wintershall Plan Employees shall be eligible to participate in
                  this Plan provided they have met the eligibility requirements
                  of Section 2.01 of the Plan.

         (b)      Transfer of Account Balances. Effective as of January 1, 1989,
                  the Wintershall Plan shall be merged into the Plan and the
                  account balances held on behalf of each Wintershall Plan
                  Employee shall be transferred to the Plan and allocated and
                  credited in accordance with Section 3.06 of Article III. Any
                  such accounts transferred which were attributable to Employer
                  Contributions under the Wintershall Plan shall be fully
                  vested.

                                       54
<PAGE>

17.06    Information Systems Plan.

(a) Participation. On and after January 1, 1992, no further contributions will
be made to the BASF Corporation Information Systems Employee Savings Plan
("Information Systems Plan") on behalf of employees covered by the Information
Systems Plan ("Information Systems Plan Employees") and all amounts credited to
such Information Systems Plan Employees' accounts will be fully vested.
Effective as of January 1, 1992, the Committee designated the Information
Systems Plan, a profit sharing plan described under IRC Section 401(a), a
Predecessor Plan and as of such date Information Systems Plan Employees shall be
eligible to participate in this Plan provided they have met the eligibility
requirements of Section 2.01 of the Plan.

(b) Transfer of Account Balances. Effective as of January 1, 1992, the
Information Systems Plan shall be merged into the Plan and the account balances
held on behalf of each Information Systems Plan Employee shall be transferred to
the Plan and allocated and credited in accordance with Section 3.06 of Article
III. Any such amounts transferred which were attributable to Employer
Contributions under the Information Systems Plan shall be fully vested.

17.07    Olin Plan.

         (a)      Participation. Effective as of July 14, 1992, the Committee
                  designated the Olin Corporation Contributing Employees
                  Ownership Plan (the "Olin Plan"), a profit sharing plan
                  described in IRC Section 401(a), a Predecessor Plan, and as of
                  such date those salaried employees employed by the Polymers
                  Division who were formerly employed by Olin Corporation (the
                  "Olin Employees") shall be eligible to participate in this
                  Plan provided they have met the eligibility requirements of
                  Section 2.01. For purposes of meeting such eligibility
                  requirements, service recognized under the Olin Plan shall be
                  recognized under this Plan.

         (b)      Transfer of Account Balances. Effective as of July 14, 1992,
                  the Olin Plan shall be merged into the Plan and the account
                  balances held on behalf of each Olin Employee, who elected to
                  have his account balance transferred, shall be transferred to
                  the Plan and allocated and credited in accordance with Section
                  3.06 of Article III. Any portion of such accounts transferred
                  which were attributable to employer contributions under the
                  Olin Plan shall be fully vested.

17.08   Mobil Plan.

         (a)      Participation. Effective as of July 24, 1992, the Committee
                  designated the Employees Savings Plan of Mobil Oil Corporation
                  (the "Mobil Plan"), a profit sharing plan described under IRC
                  Section 401(a), a Predecessor Plan, and as of such date those
                  salaried employees employed by the Polymers Division who were
                  formerly employed by the Mobil Oil Corporation (the "Mobil
                  Employees") shall be eligible to participate in this Plan
                  provided they have met the eligibility requirements of Section
                  2.01. For purposes of meeting such eligibility

                                       55
<PAGE>

                  requirements, service recognized under the Mobil Plan shall be
                  recognized under this Plan.

         (b)      Transfer of Account Balances. Effective as of July 24, 1992,
                  the Mobil Plan shall be merged into the Plan and the account
                  balances held on behalf of each Mobil Employee, who elected to
                  have his account balance transferred, shall be transferred to
                  the Plan and allocated and credited in accordance with Section
                  3.06 of Article III. Any portion of such accounts transferred
                  which were attributable to employer contributions under the
                  Mobil Plan shall be fully vested.

                                       56
<PAGE>

Attachment A

AMENDMENT A
RESOLVED, that effective January 1, 1994, Section 1.09 of the BASF Corporation
Employee Savings Plan is hereby amended by adding the following at the end of
the second paragraph:

         "In addition to other applicable limitations set forth in the Plan, and
         notwithstanding any other provision of the Plan to the contrary, for
         Plan Years beginning on or after January 1, 1994, the annual
         compensation of each Employee taken into account under the Plan shall
         not exceed the Omnibus Budget Reconciliation Act of 1993 ("OBRA '93)
         annual compensation limit. The OBRA '93 annual compensation limit is
         $150,000, as adjusted by the Commissioner for increases in the cost of
         living in accordance with Section 401(a)(17)(B) of the Internal Revenue
         Code. The cost of living adjustment in effect for a calendar year
         applies to any period, not exceeding 12 months, over which compensation
         is determined ("determination period") beginning in such calendar year.
         If a determination period consists of fewer than 12 months, the OBRA
         '93 annual compensation limit will be multiplied by a fraction, the
         numerator of which is the number of months in the determination period,
         and the denominator of which is 12.

         For Plan Years beginning on or after January 1, 1994, any reference in
         this Plan to the limitation under Section 401(a)(17) of the Code shall
         mean the OBRA '93 annual compensation limit set forth in this
         provision.

         If compensation for any prior determination period is taken into
         account in determining an Employee's benefits accruing in the current
         Plan Year, the compensation for that prior determination period is
         subject to the OBRA '93 annual compensation limit in effect for that
         prior determination period. For this purpose, for determination periods
         beginning before the first day of the first plan year beginning on or
         after January 1, 1994, the OBRA '93 annual compensation limit is
         $150,000.", and it is further

RESOLVED, that effective January 1, 1994, ARTICLE VI of the Savings Plan is
hereby amended by adding a new Section 6.10, as follows:

         "Section 6.10. Eligible Rollover Distributions. Effective January 1,
         1993, notwithstanding any provisions of the Plan to the contrary that
         would otherwise limit a Distributee's election under this Section 6.10,
         a Distributee may elect, at the time and in the manner prescribed by
         the Committee, to have any portion of an Eligible Rollover Distribution
         paid directly to an Eligible Retirement Plan specified by the
         Distributee in a Direct Rollover.

<PAGE>

         The following definitions apply to this Section 6.10, and unless
         otherwise specifically stated in another section thereof, do not apply
         to any other section of this Plan.

         (a)      An "Eligible Rollover Distribution" means any distribution of
                  all or any portion of the balance to the credit of the
                  Distributee, except that an Eligible Rollover Distribution
                  does not include: (I) any distribution that is one of a series
                  of substantially equal periodic payments (not less frequently
                  than annually) made for the life (or life expectancies) of the
                  Distributee and the Distributee's designated beneficiary, or
                  for a specified period of ten (10) years or more; (ii) any
                  distribution to the extent such distribution is required under
                  Code Section 401(a)(9); and (iii) the portion of any
                  distribution that is not includible in gross income
                  (determined without regard to the exclusion for net unrealized
                  appreciation with respect to employer securities).

         (b)      An "Eligible Retirement Plan" is 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 qualified
                  trust described in Code Section 401(a), that accepts the
                  Distributee's Eligible Rollover Distribution; provided,
                  however, that in the case of an Eligible Rollover Distribution
                  to the surviving Spouse, an Eligible Retirement Plan is an
                  individual retirement account or individual retirement annuity
                  only.

         (c)      A "Distributee" includes a Participant, an Employee or former
                  Employee. In addition, the Participant's or former
                  Participant's surviving Spouse and the Participant's or former
                  Participant's Spouse or former Spouse who is the alternate
                  payee under a Qualified Domestic Relations Order, are
                  Distributees with regard to the interest of the Spouse or
                  Former Spouse.

         (d)      A "Direct Rollover" is a payment by the Plan to the Eligible
                  Retirement Plan specified by the Distributee."

                                       2
<PAGE>

         Attachment 1

AMENDMENT 1
The BASF Corporation Employees' Savings Plan, as amended and restated effective
January 1, 1992 (the "Plan"), is hereby amended to:

      1. Effective January 1, 1987, delete Section 1.08 of Article I and
substitute, in lieu thereof, a new Section 1.08 as follows:

         Committee means the Pension and Benefits Committee of BASF Corporation
         as described in Section 9.04.

      2. Effective January 1, 1992, delete the first three paragraphs of Section
         1.09 of Article I and substitute, in lieu thereof, the following:

         Compensation means (a) the base pay as recorded in the payroll records
         or, as the case may be, salary administration prior to any salary
         reduction elections under this Plan or any other plan meeting the
         requirements of IRC Sections 125 and 401(k), and shall include (b)
         straight-time pay for overtime work and commissions, but shall not
         include (c) awards; half-time premiums for overtime; bonuses and
         incentive pay; moving expense reimbursements; payments from any
         Corporation sponsored long term incentive program; benefit credits for
         any Corporation sponsored health plan; payments or bonuses made to
         attract new employees or similar payments; and, effective January 1,
         1995, retention or retention type payments, plant shut-down premiums
         and similar payments made upon termination of employment.
         Notwithstanding the foregoing sentence, a bonus paid in 1987 to an
         Employee previously covered by the Badische Corporation Savings Plan
         and/or the Inmont Savings Plan attributable to services performed in
         1986 shall be included in compensation. With respect to Over-the-Road
         Drivers, Compensation shall mean gross pay.

         Notwithstanding any other contrary provision of the Plan, Compensation
         taken into account under the Plan shall not exceed $150,000 ($200,000
         for Plan Years ending on or before January 1, 1994), adjusted for
         changes in the cost of living as provided in IRC Section 415(d), or
         such other amount as required by IRC Section 414, for the purpose of
         calculating a Participant's Accrued Benefit (including the right to any
         optional benefit provided under the Plan) for any Plan Year beginning
         after December 31, 1988. However, the Accrued Benefit determined in
         accordance with this provision shall not be less than the Accrued
         Benefit determined on January 1, 1989 without regard to this provision.

         Notwithstanding the preceding sentence, the Accrued Benefit of any
         Participant who is a Highly Compensated Employee, within the meaning of
         IRC Section 414(q), is reduced to the extent a benefit has accrued with
         respect to Compensation in excess of $200,000 during the 1989 Plan Year
         before the later

                                       3
<PAGE>

         of the adoption or effective date of this provision. Additionally, in
         the case of determining the Compensation of a five-percent (5%) owner
         or of a Highly Compensated Employee in the group consisting of the 10
         Highly Compensated Employees paid the greatest compensation for the
         year, the family aggregation rules, as contained in 414(q) shall apply.
         If, as a result of the application of such rules the compensation limit
         is exceeded, then the compensation limit shall be prorated among the
         affected individuals in proportion to each such individual's
         compensation as determined prior to the application of the compensation
         limit.

      3. Effective January 1, 1992, add the following at the end of the first
         sentence of Section 1.17 of Article I:

         Notwithstanding the foregoing, part-time or full-time interns, contract
         workers or workers who are characterized by the Company as independent
         contractors are not covered by and shall not be eligible to participate
         in the Plan. No such individual shall be covered by, or eligible to
         participate in the Plan even if such individual has been or, in the
         future may be determined to be a common law employee of the Company.

      4. Effective January 1, 1992, add the following new paragraph at the end
         of Section 1.47 of Article I:

         Notwithstanding anything herein to the contrary, a Period of Employment
         shall include periods of employment with an employer prior to the date
         such employer becomes related to the Company by purchase, acquisition,
         merger consolidation or otherwise, to the extent such service has been
         approved as service by resolution of the Committee.

      5. Effective December 12, 1994, add the following new paragraph at the end
         of Section 1.47 of Article I:

         Notwithstanding anything herein to the contrary, a period of qualified
         military service as defined in IRC Section 414(u) shall be included in
         a Participant's Period of Employment under the Plan in accordance with
         the requirements of such Section 414(u).

      6. Effective April 1, 1997, delete Section 1.64 of Article I and
         substitute, in lieu thereof, a new Section 1.64 as follows:

         Valuation Date means each business day. The Trust shall be valued at
         fair market value at the close of business on each business day. The
         Committee may from time to time value the Trust as of any other date as
         it deems desirable.

                                       4
<PAGE>

      7. Effective April 1, 1997, add the following sentence at the end of
         Section 2.01(B) of Article II:

         An Employee shall be eligible to participate in the Plan on the date he
         first performs an Hour of Service for his Employer.

      8. Effective April 1, 1997, add the following two sentences at the end of
         Section 2.02 of Article II:

         An eligible Employee shall commence Plan participation as of the first
         pay cycle following completion of the enrollment process established by
         the Committee, or as soon thereafter as is administratively
         practicable. The Committee may permit enrollment through the completion
         and filing of forms provided for this purpose and/or through electronic
         or computer means, or as otherwise determined by the Committee in its
         sole discretion.

      9. Effective November 1, 1992, delete Sections 3.01, 3.02 and 3.03 of
         Article III and substitute, in lieu thereof, the following:

         3.01     Before-Tax Contributions. A Participant may elect to have
                  Before-Tax Contributions contributed to the Plan on his behalf
                  up to 16% of his Compensation, except to the extent such
                  Participant is a Highly Compensated Employee, whose maximum
                  Before-Tax Contribution shall be 8% or such other percentage
                  or amount as may be determined from time to time by the
                  Committee in order to comply with regulatory limits on
                  contributions by such Highly Compensated Employees. Such
                  Before-Tax Contributions shall be made in 1% increments
                  (subject to the limitations imposed by IRC Section 401(k)).

                  Before-Tax Contribution elections shall be made on appropriate
                  forms to be provided by the Committee or through other
                  procedures established by the Committee. Such forms or
                  procedures shall authorize the Employer to reduce the
                  Participant's pay by an amount produced by multiplying the
                  Before-Tax Contribution percentage elected by the Participant
                  by his Compensation. The Committee may establish procedures
                  which permit Before-Tax Contribution elections to be made
                  through the telephone, computer or similar devices.

                  Reductions to Participant's pay to reflect Before-Tax
                  Contribution elections shall commence on the date the
                  contribution election shall become effective as provided in
                  Section 3.05. A Participant's designation of a Before-Tax
                  Contribution percentage shall continue in effect until changed
                  by the Participant, as hereinafter provided, unless changed by
                  recharacterization.

                  A Participant may, on an appropriate form approved by the
                  Committee or through other procedures established by the
                  Committee, change his Before-Tax Contribution percentage to
                  any percentage prescribed in this Section 3.01, with such
                  change in election to become effective as provided in Section
                  3.05.

                                       5
<PAGE>

                  A Participant may elect, on an appropriate form approved by
                  the Committee or through other procedures established by the
                  Committee, to cease future Before-Tax Contributions to the
                  Plan. Such election shall become effective as provided in
                  Section 3.05. In the event any such Participant desires
                  thereafter to have Before-Tax Contributions made on his
                  behalf, he shall be allowed to do so as of the first pay
                  received in any subsequent pay period following the making of
                  a timely and proper application on a form approved by, or in
                  accordance with procedures established by, the Committee.

                  The Employer shall pay each Participant's Before-Tax
                  Contributions to the Trustee no later than one (1) month
                  following the month such Before-Tax Contribution was deducted
                  or reduced from the Participant's Compensation, or such
                  earlier time as may be prescribed by regulations issued by the
                  Secretary of the Treasury or the Department of Labor, and the
                  Participant's Before-Tax Contribution Account shall be
                  credited accordingly.

         3.02     Employee After-Tax Contributions. A Participant may elect to
                  have After-Tax Contributions contributed to the Plan on his
                  behalf, up to the maximum permitted to be contributed by such
                  Participant to the Plan under IRC Sections 401(k) and 402(g)
                  after taking into account the Participant's Before-Tax
                  Contributions and Employer Matching Contributions credited to
                  his Individual Account for such Plan Year. Such After-Tax
                  Contributions shall be made in 1% increments (subject to the
                  limitations imposed by IRC Sections 401(k) and 402(g)).

                  After-Tax Contribution elections shall be made on appropriate
                  forms approved by the Committee or through other procedures
                  established by the Committee. Such forms or procedures shall
                  authorize the Employer to reduce the Participant's pay by an
                  amount produced by multiplying the After-Tax Contribution
                  percentage elected by the Participant by his Compensation. The
                  Committee may establish procedures which permit After-Tax
                  Contribution elections to be made through the telephone,
                  computer or similar devices.

                  Reductions to Participant's pay to reflect After-Tax
                  Contribution elections shall commence on the date the
                  contribution election shall become effective as provided in
                  Section 3.05. A Participant's designation of an After-Tax
                  Contribution percentage shall continue in effect until changed
                  by the Participant, as hereinafter provided, unless changed by
                  recharacterization.

                  A Participant may, on an appropriate form approved by the
                  Committee or through other procedures established by the
                  Committee, change his After-Tax Contribution percentage to any
                  percentage prescribed in this Section 3.03 to become effective
                  as provided in Section 3.05.

                  A Participant may elect, on an appropriate form approved by
                  the Committee or through other procedures established by the
                  Committee, to cease future After-Tax Contributions to the
                  Plan, with any such election to become effective as provided
                  in Section 3.05. In the event any such Participant

                                       6
<PAGE>

                  desires thereafter to have After-Tax Contributions made on his
                  behalf, he shall be allowed to do so as of the first pay
                  received in any subsequent pay period following the making of
                  timely and proper application on a form approved by, or in
                  accordance with procedures established by the Committee.

                  The Employer shall pay each Participant's After-Tax
                  Contributions to the Trustee no later than one (1) month
                  following the month such After-Tax Contribution was deducted
                  or reduced from the Participant's Compensation or such earlier
                  time as prescribed by regulations issued by the Secretary of
                  the Treasury or the Department of Labor, and the Participant's
                  After-Tax Contribution Account shall be credited accordingly.

         3.03     Employer Matching Contributions. Concurrently with the
                  Participant's Before-Tax and/or After-Tax Contributions, the
                  Employer shall contribute to the Plan for the Account of each
                  Participant an amount equal to each such Participant's
                  Before-Tax and/or After-Tax Contributions made to the Plan, up
                  to a maximum of 4% of such Participant's Compensation.
                  Employer Matching Contributions shall be credited to each
                  Participant's Employer Matching Contribution Account. The
                  maximum amount of Employer Matching Contributions which shall
                  be credited to a Participant's Individual Account shall be
                  100% of the Participant's Before-Tax and After-Tax
                  Contributions, up to a maximum of 4% of such Participant's
                  Compensation.

     10. Effective January 1, 1992, delete Section 3.05 of Article III and
         substitute, in lieu thereof, the following:

         Election. All elections to start, modify or suspend a Contribution
         pursuant to this Article III must be submitted in a timely manner and
         in accordance with the procedures established by the Committee, with
         such election being implemented as soon as administratively practicable
         following its receipt.

     11. Effective July 1, 1994, delete the last sentence of Section 4.01 of
         Article IV and substitute, in lieu thereof the following:

         If investments are to be made to more than one Investment Fund,
         investments shall be made in increments of one percent (1%).

     12. Effective April 1, 1997, delete the last paragraph of Section 4.02 of
         Article IV and substitute, in lieu thereof the following:

         Each Participant shall have the right to change his election concerning
         the Investment Fund in which future Contributions allocated to him are
         to be invested. Any such change shall be applicable as soon as
         administratively practicable after the Participant makes a revised
         investment election in

                                       7
<PAGE>

         accordance with procedures established by the Committee for this
         purpose; provided, however, that no more than one such revised election
         shall be effective on any given Valuation Date. Any such revised
         election shall continue to apply until the Participant makes another
         change of investment election.

     13. Effective April 1, 1997, add the following sentence at the end of
         Section 4.02 of Article IV:

         The Committee may permit investment elections to be made through the
         completion and filing of forms provided for this purpose and/or through
         electronic, telephonic or computer means, or as otherwise determined by
         the Committee in its sole discretion.

     14. Effective April 1, 1997, delete the first two paragraphs of Section
         4.03 of Article IV, and substitute in lieu thereof, the following:

         Each Participant shall have the right to change his investment option
         election concerning the Investment Fund or Funds in which his prior
         Contributions are invested (other than the Special Stock Funds) in
         accordance with Section 4.02. Any such change shall be applicable as
         soon as administratively practicable after the Participant makes a
         revised investment election in accordance with procedures established
         by the Committee for this purpose; provided, however, that no more than
         one such revised election shall be effective on any given Valuation
         Date. Any such revised election shall continue to apply until the
         Participant makes another change of investment election.
         Notwithstanding the above, the Committee, in its sole discretion, may
         determine the frequency of such changes and the extent to which any
         Investment Fund transfer may occur with respect to the Special Stock
         Fund.

         Each such election shall be in increments of one percent (1%), or in
         such other percentage as determined by the Committee from time to time.

     15. Effective January 1, 1996, add the following new paragraph at the end
         of Section 6.07(a) of Article VI:

         Any Participant entitled to a distribution under Section 6.03, 6.04 or
         6.06 shall be permitted to elect to take an Annual Distribution from
         his Individual Account. Such Annual Distribution shall equal the amount
         designated by the Participant at the time of his election, or the
         remaining balance in such Participant's Individual Account, whichever
         is less. Annual Distributions shall be deducted from the Participant's
         Individual Account and shall be paid in accordance with procedures
         established by the Committee as soon as practicable after that date.
         Any such Annual Distribution election shall be made through the
         completion and filing of forms provided for this purpose and/or through
         electronic, telephonic or computer means, or as otherwise determined by
         the Committee in its sole discretion. The

                                       8
<PAGE>

         minimum amount of any such Annual Distribution shall be $500, or such
         other amount as may be established by resolution of the Committee from
         time to time.

     16. Effective April 1, 1997, add the following sentence at the end of
         Section 6.06(b) of Article VI:

         The Committee may permit applications for benefits to be made through
         the completion and filing of forms provided for this purpose and/or
         through electronic, telephonic or computer means, or as otherwise
         determined by the Committee in its sole discretion.

     17. Effective January 1, 1998, replace the amount "$3,500", wherever such
         amount shall appear throughout Sections 6.07 of Article VI and 7.06 of
         Article VII, with "$5,000".

     18. Effective January 1, 1997, delete the second paragraph of Section 6.09
         of Article VI, "Required Beginning Date" and substitute, in lieu
         thereof, the following:

         On and after January 1, 1997, a Participant, other than a 5% owner, who
         continues to be actively employed by the Company after attaining age
         seventy and one-half (70-1/2) may elect to commence benefit payments at
         that time or to delay benefit distributions until such time as he
         incurs a Severance From Service Date. This provision shall be construed
         and administered in a manner consistent with Code Sections 401(a)(9)
         and 411(d)(6).

     19. Effective January 1, 1997, delete Section 6.09(f)(i) of Article VI and
         substitute, in lieu thereof, the following:

         The Required Beginning Date of a Participant is the first day of April
         of the calendar year following the calendar year in which the
         participant attains age 70-1/2. On and after January 1, 1997, a
         Participant, other than a 5% owner, who continues to be actively
         employed by the Company after attaining age seventy and one-half
         (70-1/2) may elect to commence benefit payments at that time or to
         delay benefit distributions until such time as he incurs a Severance
         From Service Date. This provision shall be construed and administered
         in a manner consistent with Code Sections 401(a)(9) and 411(d)(6).

     20. Effective immediately, delete the first two paragraphs of Section 9.04
         of Article IX and substitute, in lieu thereof, the following:

         The Board of Directors or its designate shall appoint a committee to
         hold office at the pleasure of the Corporation, such committee to be
         known as the Committee.

                                       9
<PAGE>

         Any action of the Committee shall be determined by the vote of a
         majority of its members. Any member of the Committee or his designate
         may execute any certificate or other written direction on behalf of the
         Committee.

         The Committee shall hold meetings upon such notice, at such place or
         places and at such time or times as it may from time to time determine.
         A majority of the members of the Committee in office at the time shall
         constitute a quorum for the transaction of business.

     21. Effective immediately, delete Section 13.03 of Article XIII and
         substitute, in lieu thereof, the following:

         The expenses of administering the Trust and the Plan shall be payable
         by the Trust unless paid for by the Company.

     22. Effective July 31, 1996, add the following new Section 17.09 at the end
         of Article XVII:

         17.09 Boots Be$t Savings Plan

         (a)  Participation. Effective as of September 1, 1995, former employees
              of Boots Pharmaceuticals, Inc. who satisfy the requirements of
              Section 2.01, taking into account service with Boots
              Pharmaceuticals, Inc., shall be immediately eligible to
              participate in the Plan as of September 1, 1995 and shall become
              Plan Participants upon completion of the enrollment process, as
              established by the Committee.

         (b)  Transfer of Account Balances. Effective as of July 31, 1996,
              the Committee designated the Boots Be$t Savings Plan (the
              "Boots Plan"), a defined contribution plan described under IRC
              Section 401(a), a Predecessor Plan. As of July 31, 1996, the
              Boots Plan shall be merged into the Plan and account balances
              held on behalf of each participant covered by the Boots Plan
              shall be transferred to the Plan and allocated and credited in
              accordance with Section 3.06 of Article III. Any amounts so
              transferred which were attributable to Employer Contributions
              under the Boots Plan shall be fully vested.

      23. Effective January 7, 1997, add the following new Section 17.10 at the
end of Article XVII:

              17.10 Participation of Former Employees of Sandoz Agro, Inc.
              Effective as of January 7, 1997, (1) former employees of
              Sandoz Agro, Inc. who satisfy the requirements of Section 2.01
              shall be immediately eligible to participate in the Plan, and
              such employees' service with Sandoz Agro, Inc. prior to such
              date shall be taken into account as a Period of Employment for
              purposes of determining eligibility for membership and vesting
              under the Plan, and (2) the Plan Administrator and Plan
              Trustee are authorized to accept a direct rollover of an
              Eligible Rollover Distribution (as described under Section 402
              of the Code) from any such former

                                       10
<PAGE>

              employee's account balances under the Sandoz Agro, Inc.
              Savings Plan (the "Sandoz Savings Plan"), including (after any
              such former employee has executed all acknowledgments, payroll
              authorizations and other forms deemed necessary for this
              purpose by the Plan Administrator and Plan Trustee) any
              outstanding participant loan notes secured by such former
              employee's account balances under the Sandoz Savings Plan.

Adopted October 22, 1997
The BASF Corporation Pension and Benefits Committee

                                       11
<PAGE>

                                                                      Attachment
                                                                      ----------

                                   AMENDMENT 2
                                   -----------

The BASF Corporation Employee Savings Plan, as amended and restated effective
January 1, 1992 and as amended October 22, 1997 (the "Plan"), is hereby further
amended to:

      1. Effective January 1, 1999, delete the first two sentences of Section
3.03 of Article Ill and substitute, in lieu thereof, the following:

         A Participant who has elected to make Participating contributions of 4%
         of compensation may elect to have contributed to the Plan on his behalf
         an additional 1% to 16% of such participant's compensation as a
         Non-Participating Contribution.

      2. Effective January 1, 1999, delete Section 6.02 of Article VI in its
entirety and substitute, in lieu thereof, a new Section 6.02 as follows:

         6.02 Vesting of Employer Matching Contribution A Participant shall be
         fully vested at all times in all amounts credited to such Participant's
         Employer Matching Contribution Account.

      3. Effective January 1, 1996, delete the first sentence of the last
paragraph of Section 6.07(a) of Article VI and substitute, in lieu thereof, the
following:

         Effective as of April 1, 1997, any Participant entitled to a
         distribution under Section 6.03, 6.04 or 6.06 shall be permitted to
         elect to take an Annual Distribution from his Individual Account.

      4. Effective January 1, 1999, delete Section 7.02(c) of Article VII and
substitute, in lieu thereof, the following:

                  (c) THIRD, a Participant may withdraw either (i) if the
         Participant has at least five total Years of Employment from the date
         he became a Participant (included for this purpose are years of
         participation in a Predecessor Plan), amounts attributable to vested
         Employer Matching Contributions (including earnings thereon) which were
         made prior to January 1, 1999 and which were not used to meet the
         requirement of IRC Section 401 (k) (3), or (ii) in any other case,
         amounts attributable to vested Employer Matching Contributions
         (including earnings thereon) which were made prior to January 1, 1999
         and which were not

<PAGE>

         used to meet the requirements of IRC Section 401 (k) (3) provided,
         however, that amounts withdrawn under this clause (ii) of this priority
         THIRD shall not result in amounts remaining in the Participant's
         Employer Matching Contribution Account which are less than an amount
         equal to the Employer Matching Contributions allocated to such Account
         which have remained in the Plan for less than 24 months.

                                       2

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