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[LOGO]Quaker Chemical Corporation

                                                                  EXHIBIT 10(ee)

                                                         JOSEPH W. BAUER
                                                         PRESIDENT AND
                                                         CHIEF OPERATING OFFICER

                                                              September 28, 1999

Mr. Marcus C. J. Meijer
Bruglaan 3
3743 JB Baarn
The Netherlands

Dear Marc,

Effective July 1, 1999, you have been appointed Senior Vice President - Global
Industry Leader Metalworking/Chemical Management Services of Quaker Chemical
Corporation.

Due to your position as per July 1, 1999, your employment contract with Quaker
Chemical Europe B.V. has been terminated as per June 30, 1999. Instead, your
employment agreement as of July 1, 1999 shall be with Quaker Chemical
Corporation ("Quaker").

Addendum 1 to this letter of appointment contains the General Terms of
Employment of Quaker's corporate officers. These General Terms form part of your
employment agreement with Quaker.

You will maintain offices in the corporate headquarters at Conshohocken and in
the offices of Quaker Chemical Europe B.V.

Further, it is understood that you will fully and promptly communicate to Quaker
all inventions, discoveries, developments, formulas, or processes made or
conceived by you at any time during the term of your employment by Quaker which
relate to any chemical work or any other lines of Quaker's activities.

In addition, you will assist Quaker, entirely at its own expense, to obtain, for
its sole benefit, any and all patents for these inventions, discoveries,
formulas, or processes in any and all countries. All such inventions,
discoveries, formulas, or processes are to be and remain the exclusive property
of Quaker or its nominees, whether patented or not.

Further, you will keep complete, accurate, and authentic notes, data, and
records of all such information and of all work done by you, alone or jointly
with others, in a

ELM AND LEE STREETS o CONSHOHOCKEN o PENNSYLVANIA 19428-0809 o USA o TELEPHONE:
610-832-8589 o FACSIMILE: 610-832-4494

<PAGE>

Mr. Marcus C. J. Meijer
September 28, 1999
Page Two

form directed by Quaker and at the request of Quaker. You will make application,
in due form, for United States Letters Patent and Foreign Letters Patent on any
invention subject to this Agreement and assign and transfer to it all your
right, title, and interest therein and thereto if any you may have; and you will
execute and deliver from time to time, during or after this term of your
employment by Quaker, all instruments and do all acts which may be necessary or
which, in the opinion of Quaker, may be desirable in connection with any such
patent application (or any continuation, renewal, or reissue proceedings
pertaining thereto) or to establish, confirm, and perfect in Quaker all your
right, title, and interest, if any, in any such invention or in connection with
the conduct of any proceeding or litigation in regard to such invention, patent
application, or patent.

The individual terms of your employment agreement with Quaker read as follows:

         1.    (a) The agreement is entered into for an indefinite period of
time and may be terminated at any time by either party upon the giving of notice
of three months prior to the effective date of such termination.

               (b) If Quaker acts to terminate the employment for reasons
 which are in Quaker's opinion beyond the Senior Vice President's fault, a
 settlement shall be paid at the expiration of the three-month notice period.
 The amount of the settlement shall be two month's income per full year of
 service at the termination date with a maximum of 24 months. For the purpose of
 this paragraph (b), "income" shall mean base salary at its then current annual
 rate plus a vacation allowance equal to 8 1/2% of the current base salary with
 bonus calculated based on the average annual bonus (per Article 7 herein
 including, if applicable, annual bonuses paid by Senior Vice President's prior
 employer, Quaker Chemical Europe B.V., but excluding all amounts paid under any
 of Quaker's long-term incentive plan(s)) paid over the three years prior to the
 year in which the termination occurs.

                   In the event Quaker is acquired or otherwise falls under the
majority control of a third party, a 24 month salary, bonus (calculated in the
same manner as set forth above), and vacation allowance will be paid if the
Senior Vice President elects to resign his position within 12 months of such
change in control.

                  (c) If the employment is terminated for reasons other than
described in Article 1(b) above, no settlement will be due.

<PAGE>

Mr. Marcus C. J. Meijer
September 28, 1999
Page Three

         2. The applicable position description is attached hereto as Addendum 2
and forms part of the terms of your employment agreement.

         3. Quaker shall pay to you an annual rate of salary as set forth in
Addendum 1 attached hereto, payable monthly, during the term of this employment
agreement or any extension or renewal thereof. The rate of salary will be
reviewed on an annual basis consistent with Quaker's then current practice for
reviewing officers' salaries and performance, but, at a minimum, there will be
an adjustment to be effective as of January 1 each year based on the inflation
rate in The Netherlands for the preceding year and merit increases, if any, to
be given as of March 1 of each year.

         4. The character of the position of Senior Vice President implies that
you will obtain detailed knowledge of Quaker technology and know-how. In view
hereof, the Declaration of Secrecy and Non-Competition, which is attached hereto
as Addendum 3, forms part of the terms of your employment agreement.

         5. You will be entitled to a vacation allowance of 8.5% of your annual
base salary (12 x monthly gross salary) which will be paid to you in April of
each year.

         6. In view of the representative character of your job, you will be
entitled to a representation allowance of Dfl. 600,-- per month net. This
allowance should not be seen as salary but is meant as compensation for expenses
resulting from entertainment of business relations at home, etc. In case there
will be a change in the Dutch (tax) law, the new (tax) legislation will be
applied.

         7. You shall participate in such Quaker incentive programs as described
and set forth in Addendum 1. As an Officer of Quaker, the particulars of
Addendum 1 as it relates to incentive programs may be amended by the Board of
Directors at any time as to any matter set forth therein, including eligibility
to participate in any given Quaker incentive plan, the level of participation in
any Quaker incentive plan, and the terms and conditions of any Quaker incentive
plan. For the purposes of this Agreement, the term "Quaker Incentive Program"
shall refer to each individual as well as the combined incentive programs
approved by the Board of Directors. Revisions to Addendum 1 shall become
effective upon notification in writing by Quaker.

<PAGE>

Mr. Marcus C. J. Meijer
September 28, 1999
Page Four

         8. You will be entitled to a company automobile for business and
personal use with full maintenance and cost of fuel for both business and
personal travel. In accordance with the subject Quaker Chemical Europe B.V.'s
Car Policy, the car may cost a maximum of Dfl. 93,000.--, including VAT, which
amount will be reviewed on a yearly basis.

         9. You will be entitled to 100% reimbursement of your telephone
expenses upon receipt of the PTT bill. If there should be a change in the Dutch
(tax) law, the new (tax) legislation will be applied.

         10. All pension rights resulting from your employment contract with
Quaker Chemical Europe B.V. will be taken over by Quaker.

               You will not participate in the Collective Pension Plan; instead,
an individual Pension Plan prepared by W. Houg and approved by Quaker will be
applicable. For this Pension Arrangement, a premium of 16.75% of the pensionable
salary: 13 x monthly salary + vacation allowance (= 8.5% of 12 x monthly salary)
will be paid by Quaker.

               You will be eligible for early retirement consistent with Quaker
Chemical B.V.'s policy.

         11. You will participate in the (premium-free) Company Collective
Health Insurance Scheme, the Business Travel Accident Insurance, the Travel
Luggage Insurance, and the Supplementary Disability Insurance.

         12. You are entitled to the "spouse travel arrangement" which serves to
compensate the family inconvenience by frequent travel; you are allowed to be
accompanied by your wife once per year on one approved business trip with a
maximum of seven days paid by Quaker; the place is determined by the business
trip, and the days are not in addition to the trip.

         13. You will be entitled to a number of paid holidays in accordance
with the Company Holiday Arrangement set forth in Article 6 of Addendum 1.

<PAGE>

Mr. Marcus C. J. Meijer
September 28, 1999
Page Five

         14. With regard to Jubilee gifts, see Article 7 of Addendum 1 for
details.

         15. In case of relocation, you will be entitled to reimbursement in
accordance with Article 8 of Addendum 1.

         16. The above provisions reflect all employment conditions applicable
to you as of July 1, 1999. Any other employment conditions which might have been
agreed upon with you previously, either verbally or in writing, are no longer
applicable as of July 1, 1999 other than the application of the General Terms of
Employment (A.R.A.P. - Algemene Regeling Arbeidsvoorwaarden Personeel) and all
amendments thereto which shall continue to apply to this employment contract as
it did to the previous contract.

         17. This contract is subject to the laws of The Netherlands.

         If you agree with the contents of this letter of appointment, we
expect you to return a signed copy of this letter and of its Addenda, each
single page signed by you.

 QUAKER CHEMICAL CORPORATION                    Signed for agreement:

By:  /s/ Joseph W. Bauer                          /s/ Marcus C. J. Meijer
    ------------------------------              -----------------------------
    Joseph W. Bauer                             Marcus C. J. Meijer
    President and Chief Operating Officer

Date:        9/30/00                            Date: September 30, 1999
     -------------------------------                 ------------------------

<PAGE>

                                   ADDENDUM 1
                                   ----------

                to letter of appointment dated September 9, 1999
                             of Mr. M. C. J. Meijer

                     SUMMARY OF GENERAL TERMS OF EMPLOYMENT
                     --------------------------------------

1.       Salary

         Your annual base salary will amount to Dfl. 460,000 gross (subject to
applicable withholding) as per July 1, 1999 which will be paid in 12 monthly
installments of Dfl. 38,333.33 gross (subject to applicable withholding).

 2.      Incentive Program

         You will be entitled to an annual incentive bonus package to be
established at 0 up to a maximum of 55% of base annual salary (annual salary
defined as monthly gross salary x 12). For the year 1999, you will receive the
bonus that you would have been entitled to had you remained in the employ of
Quaker Chemical Europe B.V.

         The new bonus arrangement is effective beginning 1/2000. Bonus payment
will be determined based on achieving global metalworking/CMS operating income
and corporate profit before-tax targets to be set on an annual basis. The
weighting will be 40% global metalworking/CMS operating income and 60% corporate
profit before tax.

         For annual incentive bonus, we will implement the following transition
process:

               For the year 2,000, we will guarantee that you receive a minimum
               of 30% of your annual salary. (Annual salary defined as monthly
               salary x 12.)

               For the year 2001, we will guarantee that you receive a minimum
               of 25% of your annual salary. (Annual salary defined as
               monthly salary x 12.)

               For the year 2002, we will guarantee that you receive a minimum
               of 15% of your annual salary. (Annual salary defined as
               monthly salary x 12.)

         Except for payments made that are the responsibility of Quaker pursuant
to the express terms of the Employment Agreement (and this summary of the
general

<PAGE>

terms of employment), Senior Vice President shall be responsible for the payment
of all withholding taxes, social security payments, and other applicable
governmental taxes, charges, or payments.

 3.       Company Car

         The Senior Vice President is eligible for a company automobile for
business and personal use. The car for the Senior Vice President may cost Dfl.
93,000.--, including VAT to be reviewed on a yearly basis.

 4.      Old Age Pension

         An individual Pension Plan prepared by W. Houg and approved by Quaker
will be applicable for the Senior Vice President. For this pension arrangement a
premium of 16.75% of the Pensionable salary: 13 x monthly salary + vacation
allowance (= 8.5% of 12 x monthly gross salary) will be paid by Quaker.

         Early Retirement. The Senior Vice President will continue to
participate in Quaker Chemical B.V.'s early retirement arrangement (VUT) as the
same may be amended from time to time with the premium to be paid by Quaker.
Currently, it provides that the Senior Vice President may retire at the age of
62 1/2 years and will be paid 90% of his annual income (base salary + holiday
allowance) during the first year and 80% during the following one and a half
years.

         Extra Payment on the Occasion of Retirement/Early Retirement. On the
occasion of retirement at the age of 65 or entrance in the early retirement, the
Senior Vice President will receive an extra payment of one month gross salary;
possible taxes will be deducted.

 5.      Insurance and Additional Arrangements.

         Individual Health Insurance. Quaker has effected a Individual Health
Insurance with "Nationale Nederlanden." In principle, there is a 100% coverage.
The package also includes a basic dentist insurance; the premium is fully paid
by Quaker.

         Business Travel Accident Insurance. The Business Travel Accident
Insurance covers all employees in case of accident while traveling on company
business. The principal sum of Accidental Death and Dismemberment Insurance is
$100,000.

         Apart from this there is a "24 hour Collective Accident/Disability
Insurance" that provides coverage for all employees equal to a maximum of three
times the yearly income (basic salary plus holiday allowance and 10% bonus).

                                       2
<PAGE>

         Both policies contain certain exclusions.

         Travel (Luggage) Insurance. Luggage of employees traveling abroad
(world coverage) is insured to a maximum of Dfl. 5,000.-- per occasion split up
into:

         (a)   Luggage: Dfl. 4,000.-- with a maximum of 25% = Dfl. 1,000.-- for
high value items (camera, jewelry, etc.);

         (b)   Cash: Dfl. 1,000.--. Each individual has an own risk of Dfl.
100,-- per occasion. The premium is paid by Quaker.

         Supplementary Disability Insurance. An additional Disability Insurance
has been arranged since the Government Disability Insurance covers in case of a
100% disablement annual salaries up to a maximum of 70% of Dfl. 81,158.-- (for
1999) only. After 24 months of full disablement, the employee will receive a
benefit of 80% of 12 x the monthly salary + holiday allowance + a 13th month.
The premium is fully paid by Quaker. The policy may exclude certain "high risk"
factors depending on medical (non) acceptance.

         Income During Sickness and Permanent Disablement. Employees who comply
with the regulation of the Sickness Benefits Act/Disablement Insurance Act will,
in case of a total disablement to work because of sickness, receive an addition
to 100% net income (including bonus and holiday allowance) during and in total
for a maximum period of 24 months.

         AOW/AnW/AWBZ

         The premiums for the Dutch AOW, AnW, and AWBZ will be paid by Quaker
(through salary withholding) on behalf of the Senior Vice President in the
amount of 29.55% of a maximum of Dfl. 48,175 = Dfl. 14,235.72 (for 1999). Quaker
will pay the "overhevelingstoeslag" in the amount of Dfl. 1,830.

         Natural Death. In case of natural death of an employee, heirs are paid
an amount equal to three months' salary net.

         WAO/WW

         Quaker will pay the employer's part and employee's part of the WW and
WAO premium directly to the respective institute (GAK). The employee part will
be withheld from Senior Vice President's salary. Each year, at the Senior Vice
President's request, Quaker will provide confirmation that social security and
disability premiums and other government charges have been paid to the
appropriate governmental authorities.

                                       3
<PAGE>

         Medical Examination. The Senior Vice President is entitled to a yearly
medical examination.

         Home Help Arrangement. In case of illness of the wife/life partner of
an employee or in case of illness of a single employee with children, Quaker
will contribute 50% of the costs of a professional who will take over the normal
care of the family under certain conditions.

6.       Holidays.

         Holiday Allowance. The Senior Vice President will be paid a holiday
allowance of 8.5% of his gross annual base salary. The holiday allowance is paid
out in April.

         The basis number of holidays is 28. This number is increased, according
to the age to be reached in the year concerned according to the following table:

                         35 years of age:              + 1 day
                         40 years of age:              + 2 days
                         45 years of age:              + 3 days
                         50 years of age:              + 4 days
                         55 years of age:              + 5 days
                         60 years of age:              + 6 days
                         61 years of age:              + 8 days
                         62 years of age:              + 10 days
                         63 years of age:              + 12 days
                         64 years of age:              + 14 days

7.       Jubilee Gift.

         Employees will receive a jubilee gift:

        On the occasion of 10 years of service a net amount of Dfl. 1,000.--;
        On the occasion of 25 years of service a net amount of Dfl. 2,500.--;
        On the occasion of 30 years of service a net amount of Dfl. 1,000.--;
        On the occasion of 35 years of service a net amount of Dfl. 1,000.--;
        On the occasion of 40 years of service a net amount equal to one month's
        base salary net.

8.       Relocation.

         Relocation Expenses. If an employee moves to an area within 40 KM from
the place where Quaker Chemical Europe is based, he/she will be reimbursed for
the transportation of his/her household effects.

                                       4
<PAGE>

         Redecoration Allowance. If an employee moves to an area within 40KM
from the place where Quaker Chemical Europe is based, he/she will receive a
redecoration allowance to the amount of 1 1/2 times the gross monthly salary
net, up to a maximum amount of Dfl. 12,000.-- net (for 1999).

9.       Tax Declaration Fee.

         Quaker will reimburse Senior Vice President up to $3,500 annually for
any personal financial planning and tax preparation expenses incurred.

QUAKER CHEMICAL CORPORATION                  Signed for agreement:

         /s/ Joseph W. Bauer                      /s/ Marcus C. J. Meijer
---------------------------------            ---------------------------------
Joseph W. Bauer                              Marcus C. J. Meijer
President and Chief Operating Officer

Date:  9-30-99                               Date:  September 30, 1999
     ----------------------------                 ----------------------------

                                       5
<PAGE>

                                 ADDENDUM 2

JOB TITLE:         GLOBAL INDUSTRY LEADER

JOB PURPOSE:
                   Directs the global development and implementation of
                   strategies for all products and services within specific
                   industry segment in order to achieve ultimate customer
                   satisfaction and realize the financial (P & L) objectives in
                   support of the business strategy. The incumbent establishes
                   the financial objective for the industry brand, including
                   budgeting of sales, marketing and development expenditures.
                   Provides strategic direction for marketing, sales, licensing,
                   acquisition, alliances, research, development, training and
                   planning.

PRINCIPAL REPSONSIBILITIES/ACCOUNTABILITIES

                   1.  Ensures the development and execution of the value
                       proposition for all products within industry segment.
                       Responsible for the development and implementation of
                       the strategic plan and the execution of the
                       corresponding tactical plan.

                   2.  Coordinates pricing on a global basis for all products
                       and services within industry segment. Ensures
                       appropriate financial analysis has been completed in
                       order to achieve industry and corporate financial
                       objectives. Approves all exceptions to pre-determined
                       pricing guidelines.

                   3.  Ensures the development of global and regional advantaged
                       product marketing plans that include the conception,
                       planning, implementation and evaluation of tactical
                       programs and activities supporting the strategic
                       direction for a product.

                   4.  Provides strategic direction in conjunction with
                       appropriate corporate function for licensing, alliances,
                       acquisitions, research and development projects.

<PAGE>

                   5.  Develops the relationships with the appropriate levels
                       at strategic and key accounts whose support of the
                       industry products are integral to the attainment of sales
                       and profit objectives.

                   6.  Provides financial analysis related to products within
                       industry segment and develops appropriate benchmark that
                       measures the effectiveness of the industry.

                   7.  Responsible for the resource allocation (i.e. reviews
                       the selection, promotion, performance appraisals and
                       development plans of people) supporting the specific
                       industry.

                   8.  Steers/directs the selection of new product development
                       concepts that support the business strategy.

                                                            Revised July 6, 1998

<PAGE>

                                   ADDENDUM 3
                To letter of appointment dated as of September 9, 1999
                             to Mr. M. C. J. Meijer
                   Declaration of Secrecy and Non-Competition

Secrecy

         The Senior Vice President acknowledges that information concerning the
method and conduct of Quaker's (and any affiliates') business, including,
without limitation, strategic and marketing plans, budgets, corporate practices
and procedures, financial statements, customer and supplier information,
formulae, formulation information, application technology, manufacturing
information, and laboratory test methods and all of Quaker's (and any
affiliates') manuals, documents, notes, letters, records, and computer programs
are Quaker's (and/or Quaker's affiliates, as the case may be) trade secrets
("Trade Secrets") and are the sole and exclusive property of Quaker (and/or
Quaker's affiliates, as the case may be). Senior Vice President agrees that at
no time during or following employment with Quaker will Senior Vice President
use, divulge, or pass on, directly or through any other individual or entity,
any Trade Secrets. Upon termination of Senior Vice President's employment with
Quaker, or at any other time upon Quaker's request, Senior Vice President agrees
to forthwith surrender to Quaker any and all materials in his possession. Trade
Secrets do not include information that is in the public domain at no fault of
the Senior Vice President.

Non-Competition

         For a period of twelve (12) months after the termination of Senior Vice
President's employment with Quaker, Senior Vice President agrees, regardless of
the reason for the termination of employment hereunder, that he will not:

                  (a) directly or indirectly, together or separately or with any
third party, whether as an individual proprietor, partner, stockholder, officer,
director, joint venturer, investor, or in any other capacity whatsoever actively
engage in business or assist anyone or any firm in business as a manufacturer,
seller, or distributor of chemical specialty products or chemical management
services which are the same, like, similar to, or which compete with the
products and services offered by employer (or any of its affiliates); and

                   (b) recruit or solicit any employee of Quaker or otherwise
 induce such employee to leave the employ of Quaker or to become an employee or
 otherwise associated with his or any firm, corporation, business, or other
 entity with which the Senior Vice President is or may become associated.

<PAGE>

         The undersigned Senior Vice President forfeits in favor of Quaker a
penalty payable forthwith of Dfl. 100,000.-- for each day of infringement of the
above-mentioned prohibition, without prejudice to the right of Quaker to claim
actual damages in addition to such penalty. Quaker may at any time at its own
initiative, or at the request of the undersigned Senior Vice President, wholly
or partly waive the stipulation referred to in this article. As long as the
undersigned Senior Vice President has not requested Quaker to waive the
stipulation as referred to in this article, this stipulation shall be deemed
between the parties not to harm the Senior Vice President unreasonably, nor to
impede him in a significant way to be employed otherwise than by Quaker.

QUAKER CHEMICAL CORPORATION                  Signed for agreement:

     /s/ Joseph W. Bauer                         /s/ Marcus C. J. Meijer
---------------------------------            ---------------------------------
Joseph W. Bauer                              Marcus C. J. Meijer

Date:  9-30-99                               Date:  September 30, 1999
     ----------------------------                 ----------------------------EXHIBIT 10 (ff)

                                QUAKER CHEMICAL CORPORATION
                                 DEFERRED COMPENSATION PLAN

         The purpose of the Quaker Chemical Corporation Deferred Compensation
Plan (the "Plan") is to provide certain key management employees of Quaker
Chemical Corporation, and its subsidiary companies (Quaker Chemical Corporation
and such subsidiaries are collectively hereinafter referred to as the "Company")
with the opportunity to defer a portion of the compensation otherwise payable to
them as employees of the Company in accordance with the provisions of the Plan,
as hereinafter set forth. The Plan is intended to be an unfunded plan maintained
primarily to provide deferred compensation for a select group of management or
highly compensated employees within the meaning of section 201(2) of the
Employee Retirement Income Security Act of 1974, as amended.

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

                                                                          Page
 ARTICLE 1 DEFINITIONS AND CONSTRUCTION ..................................  2
 ARTICLE 2 PARTICIPATION .................................................  5
 ARTICLE 3 BENEFITS ......................................................  6
 ARTICLE 4 DISTRIBUTIONS TO PARTICIPANTS .................................  7
 ARTICLE 5 FUNDING ....................................................... 10
 ARTICLE 6 AMENDMENTS AND TERMINATION .................................... 10
 ARTICLE 7 ADMINISTRATION ................................................ 11
 ARTICLE 8 MISCELLANEOUS ................................................. 12

<PAGE>

                                    ARTICLE 1
                          DEFINITIONS AND CONSTRUCTION

                   Section 1.1 Definitions. Whenever used in this Plan:

                   (a) "Beneficiary" means any individual or entity designated
 by a Participant pursuant to Section 4.3 to receive death benefits described in
 Section 4.3 subsequent to the Participant's death.

                   (b) "Board" or "Board of Directors" or "Directors" means the
 Board of Directors or other governing body of Quaker Chemical Corporation, a
 Pennsylvania corporation.

                  (c) "Change in Control" means and shall be deemed to have
occurred if: (i) any person (a "Person"), as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), (other than (1) the Company and/or its wholly subsidiaries; (2) any ESOP
or other employee benefit plan of the Company and any trustee or other fiduciary
in such capacity holding securities under such plan; (3) any corporation owned,
directly or indirectly, by the shareholders of the Company in substantially the
same proportions as their ownership of stock the Company; or (4) any other
Person who is as of the date of this Agreement presently an executive officer of
the Company or any group of Persons of which he/she voluntarily is a part) is or
becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing 30% or
more of the combined voting power of the Company's then outstanding securities
or such lesser percentage of voting power, but not less than 15%, as the Board
of Directors shall determine; provided, however, that a Change in Control shall
not be deemed to have occurred under the provisions of this subsection (i) by
reason of the beneficial ownership of voting securities by members of the
Benoliel family (as defined below) unless and until the beneficial ownership of
all members of the Benoliel family (including any other individuals or entities
who or which, together with any member or members of the Benoliel family, are
deemed under Sections 13(d) or 14(d) of the Exchange Act to constitute a single
Person) exceeds 50% of the combined voting power of the Company's then
outstanding securities; (ii) during any two-year period beginning on the date of
this Agreement, Directors of the Company in office at the beginning of such
period plus any new Director (other than a Director designated by a Person who
has entered into an agreement with the Company to effect a transaction within
the purview of subsections (i) or (iii) hereof) whose election by the Board of
Directors of the Company or whose nomination for election by the Company's
shareholders was approved by a vote of at least two-thirds of the Directors then
still in office who either were Directors at the beginning of the period or
whose election or nomination for election was previously so approved shall cease
for any reason to constitute at least a majority of the Board; or (iii) the
Company's shareholders or the Company's Board of Directors shall approve (1) any
consolidation or merger of the Company in which the Company is not the
continuing or surviving corporation or pursuant to which the Company's voting
common shares (the "Common Shares") would be converted into

                                     - 2 -
<PAGE>

 cash, securities, and/or other property, other than a merger of the Company in
 which holders of Common shares immediately prior to the merger have the same
 proportionate ownership of Common Shares of the surviving corporation
 immediately after the merger as they had in the Common Shares immediately
 before; (2) any sale, lease, exchange, or other transfer (in one transaction or
 a series of related transactions) of all or substantially all the assets or
 earning power of the Company; or (3) the liquidation or dissolution of the
 Company.

          As used in this Agreement, "members of the Benoliel Family" shall mean
 Peter A. Benoliel, his wife and children and their respective spouses and
 children, and all trusts created by or for the benefit of any of them.

                   (d) "Change in Control Event" shall mean the earlier of (i) a
 Change in Control or (ii) the execution and delivery by the Company of an
 agreement providing for a Change in Control.

                   (e) "Code" means the Internal Revenue Code of 1986, as
 amended, and any successor statute of similar nature and purpose.

                  (f) "Company" means Quaker Chemical Corporation, a
Pennsylvania corporation and such of its subsidiaries as designated by the
Board, in its sole discretion, as participating employers of this Plan. For
purposes of any forms or documents, including Compensation Deferral Election
forms, that are prepared in connection with the implementation of this Plan, any
reference to the Company or Quaker Chemical Corporation shall be deemed to
include the reference to the subsidiaries that are designated by the Board as
participating employers of this Plan.

                  (g) "Compensation" means the total amount earned or to be
earned by the Participant during a Plan Year for services rendered to the
Company as an Employee, including any amount earned as an incentive bonus
through the annual bonus plan or the Long Term Incentive Plan, without reduction
for (a) any amount of compensation which the Participant elects to contribute to
any section 401(k) plan or section 125 Plan which the Company may sponsor, or
(b) any amount to be deferred under this Plan.

                   (h) "Compensation Committee" or "Committee" means the
 Compensation/Management Development Committee of the Board of Directors of the
 Company.

                  (i) "Compensation Deferral" means the amount or amounts of a
Participant's Compensation deferred under the provisions of Article 3.

                  (j) "Deferral Election" means the irrevocable written election
a Participant makes to defer receipt of a portion of Compensation otherwise
payable by the Company to the Participant for the Plan Year to which the
Deferral Election relates.

                                     - 3 -
<PAGE>

                  (k) "Deferral Period" means the time and manner in which a
Participant's Deferred Compensation Benefit will be distributed.

                   (1) "Deferred Compensation Account" means, with respect to a
 Participant, the account, including any subaccount, established on the books of
 account of the Company, pursuant to Section 3.2, to record the Participant's
 interest in the Plan.

                   (m) "Deferred Compensation Benefit" means with respect to
 each Deferral Period the deferrals and any earnings thereon credited to the
 Participant's Deferred Compensation Account.

                   (n) "Disabled or Disability" means (1) if the Company then
 has in effect a disability plan covering managers generally, including the
 Participant, the definition of "total disability" set forth in such plan, or
 (2) if no such plan or coverage is in effect, a physical or mental disability
 which, at least twenty-six (26) weeks after its commencement, is determined to
 be total and permanent by a physician selected by the Company or its insurers
 and reasonably acceptable to the Participant or the Participant's legal
 representative.

                   (o) "Effective Date" means the effective date of the Plan, as
 amended and restated herein, which is July 1, 1997.

                  (p) "Eligible Employee" means the Chief Executive Officer of
the Company, and any other key management employee as designated by the Chief
Executive Officer. A list of eligible employees as of the Effective Date is
listed in Appendix A. Once designated as an Eligible Employee, an individual
shall remain an Eligible Employee while an Employee, regardless of any changes
in the terms of his employment with the Company.

                  (q) "Employee" means any individual employed by the Company on
a regular full-time salaried basis (determined in accordance with the personnel
policies and practices of the Company) or who is an officer of the Company.

                  (r) "ERISA" means the Employee Retirement Income Security Act
of 1974, as amended.

                  (s) "Notice of Deferral Agreement" means the written
instrument submitted to the Plan Administrator by which an Eligible Employee
elects to participate in the Plan and to defer Compensation to his Deferred
Compensation Account.

                  (t) "Participant" means any Eligible Employee who makes a
Compensation Deferral Election pursuant to Section 3.1.

                  (u) "Plan" means the Quaker Chemical Corporation Deferred
Compensation Plan, as the same may be amended from time to time.

                                     - 4 -
<PAGE>

                   (v) "Plan Administrator" means the Chief Executive Officer of
  the Company, or such person or sub-committee as the Chief Executive Officer
  may appoint. Day-today administration shall be the responsibility of the
  Company's Vice President, Human Resources, except as the Chief Executive
  Officer may otherwise direct. Decisions under the Plan relating directly to
  the Chief Executive Officer shall be made by the Compensation Committee.

                  (w) "Plan Year" means the 12 month period beginning on each
January 1 and ending on the following December 31.

                   (x) "Separation from Service" means, for any Participant, his
 termination of employment, due to reasons other than death, including
 Disability or any absence that causes him to cease to be an Employee of the
 Company.

                  (y) "Service" means the service as an Employee of the Company
or as an Officer of the Company.

                  (z) "Vesting or Vested" means the Participant's ownership
rights to the amounts accrued, including earnings, in the Participant's Deferred
Compensation Account.

          Section 1.2 Gender and Number. The masculine pronoun shall include the
 feminine; the singular shall include the plural; and vice versa.

                                    ARTICLE 2
                                  PARTICIPATION

                  Section 2.1 Eligibility to Participate. All Eligible Employees
as of the Effective Date may participate in the Plan.

                  Section 2.2 Annual Election to Participate. Annually, all
Eligible Employees will be offered the opportunity to participate in the Plan by
making a Deferral Election. Any Eligible Employee shall become a Participant,
effective as of the first day of a Plan Year, by filing a completed and fully
executed written Deferral Election, in accordance with Section 3.1, with the
Plan Administrator.

                   Section 2.3 New Eligible Employees. Employees who first
 become Eligible Employees after the Effective Date or the beginning of a Plan
 Year may enroll in the Plan for that Plan Year by filing a completed and fully
 executed Deferral Election, in accordance with Section 3.1, with the Plan
 Administrator as of the first day of the month next following the date on which
 such individual becomes an Eligible Employee.

                  Section 2.4 Termination of Participation. Once an Eligible
Employee becomes a Participant, the Eligible Employee shall remain a Participant
until Separation from

                                     - 5 -
<PAGE>

 Service and thereafter until all benefits to which the Participant or the
 Participant's Beneficiary is entitled under the Plan have been paid.

                                    ARTICLE 3
                                    BENEFITS

                   Section 3.1 Participant Compensation Deferral.

                   (a) With respect to each Plan Year, each Eligible Employee
 may irrevocably elect in writing to defer receipt of a portion of his
 Compensation for the Plan Year, subject to such rules and procedures as the
 Plan Administrator deems appropriate. Each Participant desiring to defer
 Compensation under the Plan for any Plan Year shall file a written Deferral
 Election with the Plan Administrator on the form prescribed by the Plan
 Administrator for that purpose. For a deferral of base pay for a Plan Year, the
 Participant's Deferral Election must be received by the Company on or before
 December 31 of the year preceding the Plan Year to which the Deferral Election
 relates. For a deferral of annual bonus, the Participant's deferral election
 must be received by the Company by August 1 of the year preceding the year of
 payment. For a deferral of bonus under the Company's Long Term Incentive Plan,
 the Participant's deferral election must be received by the Company not less
 than 15 months prior to the anticipated payment date, provided, however, that a
 deferral election filed in 1998 shall be effective with respect to any such
 bonus otherwise payable in 1999. An individual who first becomes an Eligible
 Employee after the Effective Date may make a Deferral Election as of the first
 day of the month next following the date on which such individual becomes an
 Eligible Employee, subject to such rules as the Plan Administrator deems
 appropriate.

                  (b) The minimum and maximum amount of Compensation which can
be deferred by a Participant who makes a Deferral Election with respect to any
Plan Year shall be determined by the Plan Administrator. A Participant may make
a Deferral Election for an amount less than the maximum amount, including a
determination by the Participant not to make a Deferral Election with respect to
a Plan Year. There is no requirement that the amount which a Participant may
elect to defer for any Plan Year be the same as the amount which such
Participant elected to defer for any prior Plan Year, provided further, that a
Participant may commit to a minimum amount of deferrals for a multi-year period.

                  (c) For deferrals of base pay, the amount of Compensation
which a Participant elects to defer for any Plan Year shall be charged in equal
installments against the Participant's regularly scheduled salary payments for
the year (or, in the initial year of eligibility, the balance of the year) and
shall be credited to the Participant's Deferred Compensation Account in
accordance with such rules as may be prescribed by the Plan Administrator.

          Section 3.2 Deferred Compensation Accounts

                                     - 6 -
<PAGE>

                   (a) The Company shall establish and maintain on its books a
 separate Deferred Compensation Account for each Participant. A Participant's
 Deferred Compensation Account may include sub-accounts with respect to each
 Deferral Period. A Participant's Deferred Compensation Account shall be
 utilized solely for the measurement and determination of the benefit amounts to
 be paid to the Participant pursuant to the Plan. No funds shall be segregated
 in the Deferred Compensation Accounts, nor shall the Deferred Compensation
 Accounts constitute or be deemed to constitute an escrow or trust fund of any
 kind. The Deferred Compensation Accounts maintained pursuant to the Plan are
 for bookkeeping purposes only and the Company is under no obligation to invest
 such amounts.

                   (b) Each Participant's Deferred Compensation Account shall be
 credited with the sum of (i) the aggregate amount of Compensation which the
 Participant has deferred pursuant to the Participant's Deferral Election, plus
 (ii) an earnings factor with respect to the amounts described in clause (i) of
 this Section 3.2(b), computed as set forth in Sections 3.2(c). If the Company
 has elected, in its sole discretion, to purchase an insurance policy on the
 life of the Participant in connection with the Plan, the Participant's Account
 shall in any case be measured by the amount of Compensation deferred by the
 Participant.

                   (c) For purposes of measuring earnings of the Deferred
 Compensation Account, a Participant may select from various investment media
 selected by the Company. The Participant shall make the selection of such
 investment media in a manner approved by the Company which shall remain
 effective until a change in direction has been made by the Participant as
 herein provided.

                  (d) The Plan Administrator shall prescribe such rules or
procedures as may be necessary or appropriate in determining the earnings factor
to be credited.

                  (e) At least each calendar quarter, the Plan Administrator
shall provide each Participant with a statement setting forth the Participant's
Deferred Compensation Account balance.

                  Section 3.3 Vesting. A Participant shall at all times be 100%
vested in the Participant's Deferred Compensation Account.

                                    ARTICLE 4
                          DISTRIBUTIONS TO PARTICIPANTS

                  Section 4.1 Election of Distribution Option.

                  (a) In each Deferral Election filed with the Plan
Administrator for a Plan Year, an Eligible Employee shall elect the Deferral
Period, setting forth the time and manner in which the Deferred Compensation
Benefit credited to the Participant's Deferred Compensation Account for that
Plan Year will be distributed.

                                     - 7 -
<PAGE>

                   (b) A Participant's Deferred Compensation Benefit for any
 Deferral Period shall be distributed by the Company either in a (i) a lump sum;
 (ii) in equal consecutive annual installments of one to twenty years commencing
 on the date set forth in Section 4.2(b), as the Participant shall have elected
 on the Participant's Deferral Election for that Deferral Period; or (iii) in
 such other manner as is elected by the Participant and approved by the Plan
 Administrator. If paid in installments, each such installment (other than the
 initial payment) shall be adjusted by earnings (as determined under Section
 3.2(c)), from the date on which the prior installment was paid.

                   (c) In any Plan Year prior to the Plan year in which a
 Participant's Deferred Compensation Benefit is scheduled to be distributed
 pursuant to a Participant's Deferral Election, and at least twelve (12) months
 prior to the date such benefits are scheduled to begin distribution, a
 Participant may make a election to postpone (but not accelerate) the
 commencement of a previously elected distribution date, or change the manner of
 distribution, if the Participant notifies the Plan Administrator in writing and
 during the Participant's employment by the Company, provided, however, that the
 newly elected distribution date commence no earlier than two years from the
 date of the Participant's election under this section 4.1(c).

                   Section 4.2 Distribution.

                   (a) The Deferred Compensation Benefit of a Participant which
 is payable as of the end of any Deferral Period shall equal the amount credited
 to the Participant's Deferred Compensation Account with respect to that
 Deferral Period, adjusted as set forth in Section 4.1(b) hereof.

                  (b) Payment of a Participant's Deferred Compensation Benefit
shall commence on the first day of the calendar month next following thirty (30)
days after the end of the Deferral Period to which the benefit relates.

         Section 4.3 Distribution Upon Death of Participant. If a Participant
dies prior to the commencement of the payment of the Participant's Deferred
Compensation Benefit, or before the Participant has received his entire Deferred
Compensation Benefit, the unpaid Deferred Compensation Benefit shall be paid in
a lump sum as soon as practicable to the Beneficiary designated by the
Participant to the Company or, if the Participant failed to designate a
Beneficiary, then to the beneficiary designated by the Participant under the
Company's Group Life Insurance Plan or, if none, then to Participant's spouse
or, if the Participant had no surviving spouse, to the Participant's estate. If
the Company has elected, in its sole discretion, to purchase an insurance policy
on the life of the Participant in connection with the Plan, the death benefit
shall be increased in an amount communicated in writing to the Participant by
the Plan Administrator when the insurance policy is purchased, and such
incremental death benefit shall be payable in a lump sum.

                                     - 8 -
<PAGE>

          Section 4.4 Distributions on Account of Financial Hardship. The Plan
 Administrator may, in its discretion, direct that a Participant be paid an
 amount in cash (not in excess of the balance of his or her Account) sufficient
 to meet a financial hardship, without penalty or forfeiture. Financial hardship
 is a severe financial hardship to the Participant arising from:

                            (i) a sudden and unexpected illness or accident of
          the Participant, his spouse, or a dependent (within the meaning of
          Code section 152(a)); or

                            (ii) loss of a Participant's property due to
          casualty, or other similar extraordinary and unforeseeable
          circumstances arising as a result of events beyond the control of the
          Participant

                  (a) Notwithstanding subsection (b), a financial hardship shall
not be considered to exist if the financial hardship can be relieved:

                            (i) through reimbursement by insurance or otherwise,

                            (ii) by liquidating the Participant's assets, to the
          extent that the liquidation of such assets would not itself cause a
          severe financial hardship, or

                            (iii) by ceasing or reducing deferral amounts under
          this Plan.

                  (b) If the Plan Administrator determines that a financial
hardship exists, the maximum amount which may be distributed from such Account
shall be an amount which would alleviate the financial hardship caused by the
financial hardship (plus federal, state and local income taxes payable by reason
of such distribution).

          Section 4.5 Distribution Upon a Change in Control. Notwithstanding
anything to the contrary under the Plan, unless the Board directs otherwise in
writing prior to the occurrence of a Change in Control Event, or the Participant
makes a contrary election in accordance with guidelines adopted by the Board, on
the first business day in January following the calendar year of the occurrence
of a Change in Control, the amount credited to each Participant's Deferred
Compensation Account shall immediately become distributable in cash in a single
sum.

                   Section 4.6 Accelerated Distribution.

         (a) Upon the Participant's written election, the Participant may elect
to withdraw all or a portion of the Participant's Deferred Compensation Account
at any time prior to the time such Deferred Compensation Account otherwise
becomes payable under the Plan, provided the conditions specified in Section
4.6(c), (d), and (e) are satisfied.

                                     - 9 -
<PAGE>

          (b) Upon the Participant's written election, a Participant who is
  receiving installment payments under the Plan may elect to have all or a
  percentage of the remaining installments distributed in the form of an
  immediately payable lump sum, provided the condition specified in Section
  4.6(c) is satisfied.

          (c) In the event of a withdrawal pursuant to Section 4.6(a), or an
 accelerated distribution pursuant to Section 4.6(b), the Participant shall
 forfeit from his Deferred Compensation Account an amount equal to 10% of the
 amount of the withdrawal or accelerated distribution, as the case may be. The
 forfeited amount shall be deducted from the Deferred Compensation Account prior
 to giving effect to the requested withdrawal or acceleration. The Participant
 shall not have any right or claim to the forfeited amount, and the Company
 shall have no obligation whatsoever to the Participant, the Participant's
 Beneficiary or any other person with regard to the forfeited amount.

          (d) In no event shall the amount withdrawn in accordance with Section
 4.6(a) be less than 25% of the amount credited to the Participant's Deferred
 Compensation Account immediately prior to the withdrawal.

          (e) In the event of a withdrawal pursuant to Section 4.6(a), a
 Participant who is otherwise eligible to make deferrals under the Plan shall be
 prohibited from making any deferrals with respect to the Plan Year immediately
 following the Plan Year during which the withdrawal was made, and any election
 previously made by the Participant with respect to deferrals for the Plan Year
 of the withdrawal shall be void and of no effect with respect to subsequent
 deferrals for such Plan Year.

                                    ARTICLE 5
                                     FUNDING

                  The Plan is intended to constitute an "unfunded" plan of
deferred compensation for Participants. Benefits payable hereunder shall be
payable out of the general assets of the Company and no segregation of any
assets whatsoever for such benefits shall be made. The obligation of the Company
hereunder shall constitute a general, unsecured obligation, payable solely out
of general assets, and no Participant or Beneficiary shall have any right to any
specific assets of the Company.

                                    ARTICLE 6
                           AMENDMENTS AND TERMINATION

                  Section 6.1 Authority to Amend. The Committee may amend or
modify this Plan in any manner whatsoever at any time or from time-to-time.
Notwithstanding the foregoing, no amendment or modification of the Plan shall
operate to decrease the benefit amount accrued on behalf of a Participant on the
effective date of the amendment or modification without the written consent of
the Participant.

                                     - 10 -
<PAGE>

                   Section 6.2 Right to Terminate. The Company reserves the
 right to terminate this Plan at any time by action of its Board of Directors;
 provided, however, that termination of the Plan shall not operate to decrease
 the Account of a Participant under the Plan. Notwithstanding the foregoing, if
 the Plan is terminated, the Company shall commence the payment of all unpaid
 Deferred Compensation Accounts within ninety (90) days after the date on which
 the Plan is terminated and, in the sole discretion of the Board of Directors,
 said Deferred Compensation Accounts may be paid in a lump sum.

                                    ARTICLE 7
                                 ADMINISTRATION

                  Section 7.1 Administration. The Administrator of this Plan
shall be the Chief Executive Officer of the Company or such person or
sub-committee as the Chief Executive Officer may appoint. The Chief Executive
Officer or his designee shall have authority to adopt rules and regulations for
carrying out the Plan and to interpret, construe and implement the provisions
hereof. Any decision or interpretation of any provision of the Plan adopted by
the Chief Executive Officer or his designee shall be final and conclusive.
Neither the Chief Executive Officer, nor any Participant who is also a member of
any sub-committee appointed by the Chief Executive Officer to administer the
Plan, shall participate in any decision involving any request made by him or
relating in any way solely to his rights, duties and obligations as a
Participant under the Plan, which shall be resolved by the remaining members of
the sub-committee, or, in the case of the Chief Executive Officer, by the
Compensation Committee.

                  Section 7.2 Claims Procedure.

                  (a) The Company will advise each Participant and Beneficiary
of any benefits to which he is entitled under the Plan. If any person believes
that the Company failed to advise him of any benefit to which he is entitled, he
may file a written claim with the Plan Administrator. The claim shall be
reviewed, and a response provided, within a reasonable time after receiving the
claim. Any claimant who is denied a claim for benefits shall be provided with
written notice setting forth:

                           (i) the specific reasons or reasons for the denial;

                           (ii) specific reference to pertinent Plan provisions
          on which denial is based;

                           (iii) a description of any additional material or
          information necessary for the claimant to perfect the claim; and

                           (iv) an explanation of the claim review procedure set
          forth in paragraph (b), below.

                                     - 11 -
<PAGE>

                   (b) Within 60 days of receipt by a claimant of a notice
 denying a claim under the Plan under paragraph (a), the claimant or his duly
 authorized representative may request in writing a full and fair review of the
 claim by the Plan Administrator. The Plan Administrator may extend the 60-day
 period where the nature of the benefit involved or other attendant
 circumstances make such extension appropriate. In connection with such review,
 the claimant or his duly authorized representative may review pertinent
 documents and may submit issues and comments in writing. The Plan Administrator
 shall make a decision promptly, and not later than 60 days after the Plan
 Administrator's receipt of a request for review, unless special circumstances
 (such as the need to hold a hearing, if the Plan Administrator deems one
 necessary) require an extension of time for processing, in which case a
 decision shall be rendered as soon as possible, but not later than 120 days
 after receipt of a request for review. The decision on review shall be in
 writing and shall include specific reasons for the decision, written in a
 manner calculated to be understood by the claimant, and specific references to
 the pertinent Plan provisions on which the decision is based.

                                    ARTICLE 8
                                  MISCELLANEOUS

                  Section 8.1 No Compensation for Other Benefits. The amount of
Compensation which a Participant elects to defer under the Plan shall not be
deemed to be compensation for the purpose of calculating the amount of the
Participant's benefits or contributions under a pension plan or other retirement
plan qualified under Section 401 (a) of the Code, but unless otherwise
prohibited by law, such amount shall be taken into account for purposes of
determining the amount of life insurance or disability insurance benefits
payable under any life or disability insurance plan established or maintained by
the Company, or the amount of any other benefit payments payable under any other
plan established or maintained by the Company, except as otherwise specifically
provided in such plan.

                  Section 8.2 Limitation of Participant's Right. Nothing in this
Plan shall be construed as conferring upon any Participant the right to be
retained in the Company's service or employ or the right to receive any benefits
not specifically provided by the Plan. A Participant shall not have any interest
in the Compensation deferred or interest or earnings credited to his Deferred
Compensation Account until such account is distributed in accordance with the
Plan. All Compensation or other amounts held for the account of a Participant
under the Plan shall remain the sole property of the Company, subject to the
claims of its general creditors and available for its use for whatever purposes
are desired. With respect to amounts deferred or otherwise held for the account
of a Participant, the Participant is merely a general creditor of the Company,
the obligation of the Company hereunder is purely contractual and shall not be
funded or secured in any way, and the Company's obligation under the Plan shall
be merely that of an unfunded and unsecured promise of the Company to pay money
in the future.

                  Section 8.3 No Right to Employment. The terms and conditions
of this Plan shall not be deemed to constitute a contract of employment between
the Company and the

                                     - 12 -
<PAGE>

Participant, and the Participant (and his Beneficiary) shall have no rights
against the Company except as may otherwise be specifically provided herein.
Nothing in this Plan shall be deemed to give a Participant the right to be
retained in the service or employ of the Company or to interfere with the right
of the Company to discharge a Participant from employment at any time.

                  Section 8.4 Nonalienation. The rights of a Participant to the
payment of Deferred Compensation as provided in the Plan shall not be assigned,
transferred, pledged or encumbered or be subject in any manner to alienation or
anticipation. No Participant may borrow against his Deferred Compensation
Account. No Deferred Compensation Account shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
charge, garnishment, execution or levy of any kind, whether voluntary or
involuntary, including but not limited to any liability which is for alimony or
other payments for the support of a spouse or former spouse, or for any other
relative of any Participant, except as otherwise required by law.

                  Section 8.5 Governing Law. Except to the extent superseded by
federal law, the laws of the Commonwealth of Pennsylvania shall be controlling
in all matters relating to the Plan, including construction and performance
hereof.

                  Section 8.6 Withholding. To the extent required by law in
effect at the time Deferred Compensation Benefit payments are to be made, the
Company shall withhold from any benefits paid under this Plan all taxes or other
amounts required to be withheld from such payments by any government or taxing
authority. The Company shall also withhold all amounts required to be withheld
currently from the Compensation which a Participant elects to defer hereunder.

                  Section 8.7 Captions and Headings. The captions and headings
of this Plan are for convenience of reference only and shall not control or
affect the meaning or construction of any of its provisions.

                  Section 8.8 Payments to Representatives. Any amounts payable
hereunder to any Participant or Beneficiary who is under a legal disability or
who, in the judgment of the Board, is unable to properly manage his financial
affairs, may be paid to the legal representative of such person or may be
applied for the benefit of such person in any manner which the Board of
Directors may select, and any such payment shall be deemed to be payment for
such person's account and shall be deemed a complete discharge of all liability
of the Company with respect to the amount so paid.

                  Section 8.9 Administration Expenses. All expenses of
administering the Plan shall be borne by the Company, and no part thereof shall
be charged against any Participant's Deferred Compensation Account or any
amounts distributable hereunder.

                                     - 13 -
<PAGE>

                  Section 8.10 Severability. If any provision of this Plan is
held unenforceable, the remainder of the Plan shall continue in full force and
effect without regard to such unenforceable provision and shall be applied as
though the unenforceable provision were not contained in the Plan.

                  Section 8.11 Disclaimer of Liability. No member of the Board
of Directors of the Company and no officer, employee, or agent of the Company,
shall have any liability to any Participant, Beneficiary, or other person, firm,
or corporation based on or arising out of the Plan, except in the case of gross
negligence or fraud.

                  Section 8.12 Lost Payees. Any benefit payable under the Plan
shall be deemed forfeited if the Plan Administrator is unable to locate the
Participant or Beneficiary to whom payment is due; provided, however, that such
benefit shall be reinstated if a claim is made by the Participant or Beneficiary
for the forfeited benefit.

                  IN WITNESS WHEREOF, the Company has caused this Plan to be
executed in its name and behalf this 17th day of December   , 1999.

                                              QUAKER CHEMICAL CORPORATION

                                              By: /s/ Ronald J. Naples
                                                 ---------------------------
                                                     Ronald J. Naples

                                     - 14 -
<PAGE>

                                   APPENDIX A
                               Eligible Employees

                                     - 15 -

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