Document:

Exhibit 10.21

                              ARCH CHEMICALS, INC.
                              ANNUAL INCENTIVE PLAN
                     (As amended effective December 9, 1999)

            1.    ADOPTION AND PURPOSE. The Company hereby adopts this Plan
providing for the award of annual incentive compensation to selected employees
of the Company and its Subsidiaries if specified Performance Goals are achieved.
The general purpose of the Plan is to promote the interests of the Company and
its Subsidiaries by providing to their employees incentives to continue and
increase their efforts with respect to, and remain in the employ of, the Company
and its Subsidiaries.

            2.    ADMINISTRATION. The Plan will be administered by the
Administrator.

                  Subject to the express provisions of the Plan, the
Administrator shall have plenary authority, in its discretion, to administer the
Plan and to exercise all powers and authority either specifically granted to it
under the Plan or necessary and advisable in the administration of the Plan,
including without limitation the authority to interpret the Plan; to prescribe,
amend and rescind rules and regulations relating to the Plan; to grant Awards,
to determine the terms, provisions and conditions of all Awards granted under
the Plan (which need not be identical), the individuals to whom and the time or
times when Awards shall be granted, and to make all other necessary or advisable
determinations with respect to the Plan. The determination of the Administrator
on such matters shall be conclusive.

            3.    PARTICIPANTS. The Administrator shall from time to time select
the officers and key employees of the Company and its Subsidiaries to whom
Awards are to be granted, and who will, upon such grant, become participants in
the Plan.

            4.    PERFORMANCE AWARDS. (a) The Performance Goals and Performance
Period applicable to an Award shall be determined by the Administrator no later
than 90 days after the commencement of the Performance Period and shall be
communicated to the Participant; provided for the 1999 Performance Period, not
later than August 1, 1999. For those employees of the Company or any
Subsidiaries who become Participants after January 1 of a given year, such
determination shall be made for the Performance Period as soon as practicable by
the Administrator. The Administrator shall have the discretion to later revise
the Performance Goals.

                  (b)   In making an Award, the Administrator may take into
account an employee's responsibility level, performance, cash compensation
level,
<PAGE>

incentive compensation awards and such other considerations as it deems
appropriate. Each Award shall be established in dollars and shall be based on
the Company's Performance Goals for the Performance Period.

            5.    EMPLOYMENT. Except as provided in the next sentence, and
unless the Administrator otherwise decides following termination, an Award shall
terminate for all purposes if the Participant is not an employee in good
standing with the Company or any subsidiary on the last day of the Performance
Period. The Participant (or in the event of the Participant's death, his or her
beneficiaries or estate) whose employment was terminated prior to such last day
because of death, disability or Retirement will be considered as the
Administrator determines in its sole discretion for pro rata portion of the
payment of his or her Award based upon the portion of the Performance Period
during which he or she was so employed so long as the Performance Goals are
subsequently achieved.

            6.    VESTING AND PAYMENT OF AWARDS. Awards shall not vest in a
Participant until actually paid; provided however, that if all or a portion of
an Award for a Performance Period is based on a Performance Goal that is a
financial goal (including the payout of any bonus bank amount), such portion of
an Award shall vest on the last day of such Performance Period in those
Participants who are employees of the Company or its subsidiaries on such last
day to the extent earned as a result of the achievement of such financial
Performance Goal. The vested Award for the Participants who were employed on
such last day but were not so employed continuously throughout such Performance
Period shall be prorated to reflect the period during which they were employed
by the Company or its subsidiary during the Performance Period. Payment with
respect to an Award will be distributed in a lump sum wholly in cash as soon as
practicable following the determination of actual performance and approval by
the Administrator that the Performance Goals with respect to an Award has been
met. Required withholding taxes shall be withheld from the payment of any Award.

            7.    DEFERRAL. Participants may defer the payment of Awards subject
to and as provided in the Employee Deferral Plan (or its successor).

            8.    NONEXCLUSIVE PLAN. The adoption of the Plan by the Company
shall not be construed as creating any limitation on the power of the
Administrator to adopt such other incentive arrangements as it may deem
desirable and such arrangements may be either generally applicable or applicable
only in specific cases.

            9.    NONASSIGNABILITY. No Awards may be transferred, alienated,
pledged or assigned other than by will or by the laws of descent and
distribution.

                                       2
<PAGE>

            10.   AMENDMENT OR DISCONTINUANCE. The Plan may be amended,
terminated or discontinued by the Administrator at any time as the Administrator
determines. Upon termination of the Plan, unvested Awards shall terminate and
participants shall have no rights to unvested Awards.

            11.   EFFECT OF PLAN. Neither the adoption of the Plan nor any
action of the Administrator shall be deemed to give any officer or employee any
right to continued employment or any other rights.

            12.   PLAN REMAINS UNFUNDED. Nothing contained in this Plan shall be
deemed to create a trust or fund of any kind or create any fiduciary
relationship whether or not the Company elects to fund the Plan through a "rabbi
trust". Nothing contained herein shall be deemed to give any Participant any
ownership or other proprietary, security or other rights in any funds, stock or
assets owned or possessed by the Company, whether or not earmarked for the
Company's own purposes as a reserve or fund to be utilized by the Company for
the discharge of its obligations hereunder. To the extent that any person
acquires a right to receive payments or distributions from the Company under
this Plan, such right shall be no greater than the right of any unsecured
creditor of the Company.

            13.   EFFECTIVE DATE OF PLAN. The Plan shall take effect as of
January 1, 1999.

            14.   GOVERNING LAW. This Plan shall be governed by the laws of the
State of Connecticut without giving effect to its conflicts of law.

            15.   DEFINITIONS. For the purpose of this Plan, unless the context
requires otherwise, the following terms shall have the meanings indicated:

                  (a)   "Administrator" means (1) for Participants who report
      directly to the Chief Executive Officer or Chief Operating Officer and who
      are subject to Section 16 of the Securities Exchange Act of 1934, as
      amended, the Committee and (2) for all other Participants, the Chief
      Executive Officer of the Company (or his or her designees).

                  (b)   "Award" means an incentive award made pursuant to the
      Plan, the payment of which is contingent upon attainment of Performance
      Goals.

                  (c)   "Board" means the board of directors of the Company.

                  (d)   "Committee" means the Compensation Committee of the
      Board (or its successor committee).

                                       3
<PAGE>

                  (e)   "Company" means Arch Chemicals, Inc., a Virginia
      corporation.

                  (f)   "Participant" means an individual selected by the
      Administrator to participate in the plan for a fiscal year.

                  (g)   "Performance Goals" means performance goal (or goals)
      and formulae as may be established by the Administrator which shall be
      based on the one or more financial or nonfinancial performance factors as
      the Administrator selects with respect to the Performance Period.

                  (h)   "Performance Period" means the fiscal year of the
      Company or such other period of time as is designated by the Administrator
      during which the Performance Goals are measured.

                  (i)   "Plan" means this Arch Chemicals, Inc. Annual Incentive
      Plan as amended from time to time.

                  (j)   "Retirement" means, with respect to any participant, the
      participant's retirement as an employee of the Company on or after
      reaching age 55 with at least ten years of service.

                  (k)   "Subsidiary" means any corporation in an unbroken chain
      of corporations beginning with the Company if, at the time of the granting
      of the Award, each of the corporations other than the last corporation in
      the unbroken chain owns stock possessing 50% or more of the total combined
      voting power of all classes of stock in one of the other corporations in
      the chain. The "Subsidiaries" means more than one of any such
      corporations.ARCH CHEMICALS, INC.
                  SENIOR MANAGEMENT INCENTIVE COMPENSATION PLAN

                     (As amended effective January 27, 2000)

         Section 1. PURPOSE. The purposes of the Senior Management Incentive
Compensation Plan (the "Plan") are (i) to compensate certain members of senior
management of Arch Chemicals, Inc. (the "Company") on an individual basis for
significant contributions to the Company and its subsidiaries and (ii) to
stimulate the efforts of such members by giving them a direct financial interest
in the performance of the Company.

         Section 2.  DEFINITIONS.  The following terms utilized in this Plan
shall have the following meanings:

                  "Cash Flow" shall mean for a fiscal year consolidated net
         income (loss), before the after-tax effect of any special charge or
         gain or cumulative effect of any change in accounting principle, plus
         depreciation and amortization, less capital and investment spending and
         plus or minus changes in working capital at the end of such fiscal
         year.

                  "Committee" shall mean the Compensation Committee of the Board
         of Directors of the Company or such other committee of such Board as
         such Board may from time to time designate; provided only those members
         of the Compensation Committee (or other Committee designated by such
         Board) who qualify as "Outside Directors" as defined in Section 162(m)
         shall constitute members of the Committee for purposes of the Plan.

                  "Consolidated Net Assets" shall mean for a fiscal year
         consolidated total assets less consolidated non-interest bearing
         liabilities at the end of such fiscal year.

                  "Earnings Per Share" shall mean for a fiscal year the actual
         diluted earnings per share at the end of such fiscal year (calculated
         as the net income available to common stockholders divided by the
         weighted average number of common stock plus any potential dilutive
         common stock (such as stock options) outstanding at the end of such
         fiscal year.

                  "EBIT" shall mean for a fiscal year consolidated net income
         (loss) plus income tax expense, interest expense, extraordinary
         expenses or losses and any special charges minus interest income and
         any extraordinary gains or sales not in the ordinary course of business
         at the end of such fiscal year.

                  "Participant" shall mean for a fiscal year, each salaried
         employee who is designated as a Participant by the Committee prior to

<PAGE>

         the commencement of such fiscal year (or such later date, if any, as
         permitted by Section 162(m)); provided for 1999, the Committee shall
         designate the Participants prior to April 1, 1999.

                  "Performance Measures" shall mean for a fiscal year any one or
         combination of the following: "Earnings Per Share," "Profit Margin,"
         "Return on Total Assets," "Cash Flow," "Return on Equity" and "Return
         on Capital" as the Committee determines from time to time with respect
         to such fiscal year; provided such determination would not subject any
         Incentive Award to Section 162(m).

                  "Profit Margin" shall mean for a fiscal year consolidated EBIT
         (at the end of such fiscal year) divided by consolidated net sales at
         the end of such fiscal year.

                  "Return on Capital" shall mean for a fiscal year consolidated
         net income plus after-tax interest expense and the after-tax effect of
         any special charge or gain and any cumulative effect of a change in
         accounting principle (at the end of such fiscal year), divided by
         average Consolidated Net Assets (the average calculated using
         Consolidated Net Assets at the beginning and end of such fiscal year).

                  "Return on Equity" shall mean for a fiscal year consolidated
         net income before the after tax effect of any special charge or gain
         and any cumulative effect of any change in accounting principle (at the
         end of such fiscal year), divided by average shareholders' equity (the
         average calculated using shareholders' equity at the beginning and end
         of such fiscal year).

                  "Return on Total Assets" shall mean for a fiscal year the
         consolidated EBIT (at the end of such fiscal year) divided by
         consolidated average total assets (the average calculated using the
         consolidated total assets at the beginning and end of such fiscal
         year).

                  "Section 162(m)" shall mean Section 162(m) of the Internal
         Revenue Code of 1986, and the regulations promulgated thereunder, all
         as amended from time to time.

         Section 3. TERM. The Plan shall be effective as of February 25, 1999
(the "Effective Date"), and shall be applicable for 1999 and all future fiscal
years of the Company unless amended or terminated by the Company pursuant to
Section 7 or as provided in Section 14.

         Section 4.  INCENTIVE AWARD.

         4.1 For each fiscal year of the Company, each Participant may be
entitled to receive an award payable in cash ("Incentive Award") in an amount
determined by the Committee as provided in this Plan. Prior to the commencement
of a fiscal year (or such later date, if any, as permitted by Section 162(m))
(but in the case of the 1999 fiscal year, prior to April 1, 1999), for the
Incentive Awards for such fiscal year, the Committee will designate or approve
(i) the individuals who will be Participants in the Plan, if any, (ii) the

<PAGE>

Performance Measures, (iii) if there is more than one Performance Measure, the
weighting of the Performance Measures in determining the Incentive Award, (iv)
the performance goals and payout matrix or formula for each Performance Measure
and (v) the target Incentive Award for each Participant. Following the end of a
fiscal year, the Committee shall determine the Incentive Award for each
Participant by:

           (i)    comparing actual performance for each measure against the
           payout matrix approved for such fiscal year,

          (ii)    multiplying the payout percentage from the payout matrix for
          each Performance Measure by the appropriate weighting factor, and

         (iii)    summing the weighted payout percentages and multiplying their
         overall payout percentage by the Participant's target Incentive Award.

         Notwithstanding anything contained in this Plan to the contrary, the
Committee in its sole discretion may reduce any Incentive Award to any
Participant to any amount, including zero, prior to the certification by
resolution of the Committee of the amount of such Incentive Award; however, the
Committee may not reduce an Incentive Award for a fiscal year after December 31
of such fiscal year for a Participant who is employed by the Company on such
date and such Incentive Award shall vest in such Participant on such date.

         The Committee shall, by resolution of the Committee, certify, prior to
payment of an Incentive Award, that the Incentive Award has been determined in
accordance with the provisions of this Plan.

         Incentive Awards for a fiscal year shall be determined as soon as
practicable after such fiscal year and shall be paid no later than 75 days
following such fiscal year unless deferred as provided in Section 4.4 hereof.
The maximum Incentive Award paid a Participant under this Plan with respect to a
fiscal year may not exceed 200% of such Participant's annual base salary in
effect on December 31 of the immediately preceding fiscal year.

         4.2 A Participant whose employment terminates with cause or without the
Committee's written consent during a fiscal year shall forfeit such
Participant's Incentive Award for such fiscal year.

         4.3 Incentive Awards shall be payable in a single, lump sum. However,
the Participant may defer payment if the participant so elects pursuant and
subject to the terms of Company's Employee Deferral Plan (or its successor).

         4.4 The Company shall withhold from any Incentive Award or payments
made or to be made under this Plan any amount of withholding taxes due in
respect of an Incentive Award, its deferral or payment.

         4.5 Participation in this Plan does not exclude Participants from
participation in any other benefit or compensation plans or arrangements of the
Company, including other bonus or incentive plans.

<PAGE>

         Section 5. ADMINISTRATION AND INTERPRETATION. The Plan shall be
administered by the Committee, which shall have the sole authority to make rules
and regulations for the administration of the Plan. The interpretations and
decisions of the Committee with regard to the Plan shall be final and
conclusive. The Committee may request advice or assistance or employ such
persons (including, without limitation, legal counsel and accountants) as it
deems necessary for the proper administration of the Plan.

         Section 6.  ADMINISTRATIVE EXPENSES.  Any expense incurred in the
administration of the Plan shall be borne by the Company out of its general
funds.

         Section 7. AMENDMENT OR TERMINATION. The Committee of the Company may
from time to time amend the Plan in any respect or terminate the Plan in whole
or in part, provided that no such action shall increase the amount of any
Incentive Award for which performance goals have been established but which has
not yet been earned or paid; provided further that such action will not cause an
Incentive Award to become subject to the deduction limitations contained in
Section 162(m).

         Section 8. NO ASSIGNMENT. The rights hereunder, including without
limitation rights to receive an Incentive Award, shall not be pledged, assigned,
transferred, encumbered or hypothecated by an employee of the Company, and
during the lifetime of any Participant any payment of an Incentive Award shall
be payable only to such Participant.

         Section 9. THE COMPANY. For purposes of this Plan, the "Company" shall
include the successors and assigns of the Company, and this Plan shall be
binding on any corporation or other person with which the Company is merged or
consolidated.

         Section 10. NO RIGHT TO EMPLOYMENT. The designation of an employee as a
Participant or grant of an Incentive Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any
affiliate or subsidiary.

         Section 11. GOVERNING LAW. The validity, construction and effect of the
Plan and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Connecticut and applicable federal law.

         Section 12. NO TRUST. Neither the Plan nor any Incentive Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any Participant. To the extent any
Participant acquires a right to receive payments from the Company in respect to
any Incentive Award, such right shall be no greater than the right of any
unsecured general creditor of the Company.

         Section 13. SECTION 162(m). It is the intention of the Company that all
payments made under the Plan be excluded from the deduction limitations
contained in Section 162(m). Therefore, if any Plan provision is found not to be
in compliance with the "performance-based" compensation exception contained in

<PAGE>

Section 162(m), that provision shall be deemed amended so that the Plan does so
comply to the extent permitted by law and deemed advisable by the Committee, and
in all events the Plan shall be construed in favor of its meeting the
"performance-based" compensation exception contained in Section 162(m).

         Section 14. SHAREHOLDER APPROVAL. This Plan shall be submitted for
approval to the shareholders of the Company at the Company's 2000 Annual Meeting
of Shareholders. If the Plan is not approved by such shareholders within the
meaning of Section 162(m), this Plan shall immediately terminate and all
Incentive Awards granted but unpaid at the time of such non-approval shall also
terminate.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]